Kvika banki (KVIKA) investor relations material

Executive summary

• Pre-tax profit for Q2 2026 was ISK 1,545m, down 23.7% YoY, mainly due to subdued fee income and higher special bank taxes.

• Net operating income for 6M 2026 was ISK 9,643m, nearly flat YoY, with profit before tax from continuing operations rising to ISK 3,354m.

• ROTE for continuing operations improved to 15.6% (6M 2025: 13.3%).

• Total assets increased 9.5% to ISK 375,726m since year-end 2025.

• CEO Ármann Þorvaldsson will step down by year-end 2026 after nearly a decade in the role.

Financial highlights

• Net interest income increased 1.7% YoY to ISK 3,013m in Q2 and grew to ISK 6,279m for 6M 2026.

• Net fee and commission income fell 26.8% YoY to ISK 1,416m in Q2 and declined to ISK 2,902m for 6M 2026.

• Administrative expenses decreased 1.1% YoY in Q2 and to ISK 5,961m for 6M 2026, despite a one-off restructuring charge.

• After-tax profit for Q2 2026 was ISK 903m, and for 6M 2026 was ISK 2,277m.

• Net impairment charge increased to ISK 363m for 6M 2026.

Outlook and guidance

• Loan book growth is expected to continue, supported by a stable income base.

• Efficiency measures are projected to yield annual cost savings of ISK 300–400m.

• Covered bond programme authorized in July 2026, with inaugural issuance expected in H2 2026.

• Funding costs are set to decrease as older FX funding is refinanced at better rates.

• New fund launches in Iceland and the UK are expected to support fee and financial income.