Fin­an­cial res­ults for second quarter 2026

Net profit amounted to ISK 7.1 billion in the second quarter of 2026, generating an annualised return on equity (ROE) of 13.3% for the quarter.

Second quarter 2026 (2Q26) financial highlights

• Net profit amounted to ISK 7.1 billion in the second quarter of 2026 (2Q25: ISK 7.2 billion), generating an annualised return on equity (ROE) of 13.3% (2Q25: 13.0%) for the quarter.
• Net interest income (NII) amounted to ISK 15.3 billion and increased by ISK 1.4 billion in 2Q26 compared to 2Q25.
• The net interest margin (NIM) was 3.4% in 2Q26 compared to 3.3% in 2Q25.
• Net fee and commission income (NFCI) was ISK 3.3 billion in 2Q26 compared to ISK 3.6 billion in 2Q25.
• Net financial expense was ISK 94 million in 2Q26, compared to an income of ISK 13 million in 2Q25.
• Administrative expenses in 2Q26 amounted to ISK 8.1 billion, having been ISK 7.3 billion in 2Q25.
• The cost-to-income ratio was 43.1% in 2Q26 compared to 41.0% in 2Q25.
• The net impairment on financial assets was ISK 454 million in 2Q26, compared to a reversal of ISK 402 million in 2Q25. The net impairment charge as a share of loans to customers, the annualised cost of risk, was 13bps in 2Q26, compared to -12bps in 2Q25.
• Loans to customers grew by ISK 14.8 billion during the second quarter of 2026, reaching a total of ISK 1,416 billion at the end of 2Q26.
• Deposits from customers grew by 2.4% in the second quarter and amounted to ISK 1,038 billion at the end of 2Q26.
• Total equity at the end of 2Q26 amounted to ISK 211.1 billion compared to ISK 225.4 billion at year-end 2025.
• The total capital ratio was 23.0% at the end of 2Q26 compared to 24.0% at year-end 2025. The corresponding CET1 ratio was 19.1% at the end of 2Q26 compared to 20.1% at year-end 2025. The CET1 ratio at the end of 2Q26 was 385bps above regulatory requirements, and above the Bank's financial target of having a 100-300bps buffer on top of CET1 regulatory requirements.
• Total payout capacity amounts to ISK 23.1 billion including uncompleted buybacks at the reporting date.
• The minimum requirement for own funds and eligible liabilities (MREL) for the Bank is 18.8% of the total risk exposure amount, in addition to the combined buffer requirement. Taking into account the Group's combined buffer requirement at 30 June 2026, the resulting MREL as a % of REA requirement was 28.5%. At the end of 2Q26, the Bank's MREL ratio was 43.9%. A new resolution plan is expected to be approved for the Bank in October, with an increase of MREL to 19.6% in line with the latest SREP results.
• Íslandsbanki bought 57.2 million own shares for ISK 8.2 billion during the second quarter.