Slides
Page 1
2Q26 Financial Results Jón Guðni Ómarsson Chief Executive Officer Ellert Hlöðversson Chief Financial Officer 30 July 2026
Page 2
Financial metrics tracking in excess of target 30 July Íslandsbanki 2Q26 Financial Results High inflation continues to positively impact net interest income 1. ROE target was >10% until year-end 2025. 2. C/I ratio target was <45% until year -end 2025. 3. C/I ratio for 4Q25 excludes salary expenses of ISK 804m due to early retirement of employees and an income of ISK 237m within net interest income (ISK 550m reversed from charge in 3Q25 due to provision for legal proceedings a nd a charge of ISK 313m due to correction from previous years). C/I ratio for 3Q25 excludes a charge of ISK 550m within net interest income due to a provision for legal proceedings. 4. Includin g 1Q26 profit for 31.3.26 and 3Q25 profit for 30.9.25. ROE in excess of updated financial target ROE1 Considerable excess capital remains Total capital ratio4 C/I in line with target despite one-offs C/I ratio2,3 ROE target > 13% C/I ratio target < 43% 2 13.0% 12.2% 10.5% 13.6% 13.3% 2Q25 3Q25 4Q25 1Q26 2Q26 41.0% 38.2% 43.5% 38.5% 43.1% 2Q25 3Q25 4Q25 1Q26 2Q26 21.5% 21.9% 24.0% 22.5% 23.0% 18.5% 18.9% 20.1% 18.6% 19.1% 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 CET1 ratio
Page 3
YTD returns in excess of guidance and medium-term target 30 July Íslandsbanki 2Q26 Financial Results ROE guidance for 2026 revised upwards to being in excess of 12.5% Medium- term target 2Q26 1H26 2026 Guidance* Return on equity >13% 13.3% 13.4% >12.5% Cost-to-income ratio <43% 43.1% 40.7% 41-43% CET1 excess 100-300bps 385bps 385bps 200bps Dividend-payout-ratio 50% - 50% 50% 3 Cost of Risk is expected to average 20-25 bps over the cycle Loans to customers and revenue, in general to grow in line with nominal GDP through the business cycle while international lending provides additional growth International loan growth continues to provide additional balance sheet growth *Guidance assumes a normalised cost of risk for the year as a whole
Page 4
0 1 2 3 4 5 6 7 8 9 10 11 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Inflation Inflation forecast Optimistic scenario Pessimistic scenario Inflation target GDP growth regains steam after a subdued 2026 Persistent inflation forces the Central Bank to hold rates high for longer 30 July Íslandsbanki 2Q26 Financial Results 4 Inflation has proven persistent and will stay high in the near term… CBI policy rate and real policy rate, % …leading to continued tight monetary policy in coming quarters CBI policy rate and real policy rate, % 0 2 4 6 8 10 12 2020 2021 2022 2023 2024 2025 2026 2027 2028 Inflation Effective CBI policy rate Inflation forcast Policy rate forecast ...as exports return to more robust growth from 2026 after a soft patch Exports and contribution from subcomponents, % change 1.0 1.4 3.3 3.0 -35 -30 -25 -20 -15 -10 -5 0 5 10 15 20 25 2010 2013 2015 2017 2019 2021 2023 2025 2027 Goods exports Service exports Total exports 8.9 5.0 -1.3 1.3 1.3 2.1 2.5 -18 -14 -10 -6 -2 2 6 10 14 18 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 Imports Exports Inventory chg. Investment Public consumption Priv.consumption GDP Slow GDP growth in the near term, gaining pace later on… Real GDP and main subitems, YoY change, %
Page 5
17.60% 18.60% 20.10% 11.90% 10.90% 10.00% 12.60% Íslandsbanki Domestic competitor 1 Domestic competitor 2 Scandinavian bank 1 Scandinavian bank 2 Scandinavian bank 3 Scandinavian bank 4 Structural headwinds to profitability Íslandsbanki 2Q26 Financial Results Higher bank taxes weigh on returns Tax charges relative to operating income1 Selected Nordic banks, 2025 • Proposed tax changes could further weaken Icelandic banks’ competitive position relative to pension funds and international financial institutions • Elevated capital requirements – Icelandic D-SIBs operate with materially higher equity position than their European peers due to standardised approach • Higher equity base structurally supports NII and NIM – a larger equity base translates into higher net interest income and a wider reported net interest margin due to less leverage on the balance sheet • Yet returns remain low by European standards – despite a high NIM, sector profitability is constrained by elevated taxation and narrow customer spreads Tax breakdown for banks in the Nordics in 2025 5 Iceland Sweden Norway Denmark Finland Corporate Tax Rate 20% 20.6% 22% (25% on financial institutions) 22% (26% for financial institutions) 20% FAT on Profits 6% - 3% 4% - FAT on Remunerations 5.5% - 5% 15.3% - Bank Levy/ Financial Stability Contribution 0.145% - - - - Minimum reserve requirement 3.0% - - - 1.0%* 1. Annual statements from 2025 of Íslandsbanki, domestic competitors and Scandinavian banks 30 July *On specific customer deposits and short-term liabilities
Page 6
Deepening retail customer relationships Íslandsbanki 2Q26 Financial Results 6 Loyalty Services gaining traction Supporting digital adoption Record momentum in pension savings inflows • Adoption has climed steadily since launch on 19 March, reaching 50 thousand customers in June • 10,000 customers have opened a Loyalty savings account • Framtíðarauður hits ISK 120bn in AuM • Updated contracts have increased by 74% in 1H26 YoY • New contracts have increased by 37% in 1H26 YoY • “Tech café” helping customers confidently adopt new digital solutions • Fully booked in minutes • Rolling out nationwide 30 July
Page 7
Stable leadership in Business Banking Íslandsbanki 2Q26 Financial Results Strong team securing highest NPS score amongst domestic peers Stable market share, highest among peers1 37% market share 40% in the capital area 7 1. Average market share from Gallup's last four corporate surveys, the most recent one conducted in 2Q26 Challenging business environment for SMEs • Íslandsbanki and Reykjavík Economics published their fifth report on the state of SMEs in Iceland, Uncertainty on the Horizon • The report highlights a challenging business environment marked by slow growth and pressure on profitability • The findings underline the importance of a stable and competitive environment to support investment, innovation, and long-term economic growth New financing: • Ergo will provide inventory financing for new and used vehicles as well as day-to-day banking. • Una the authorised distributor of XPENG in Iceland. Una is owned by Askja, which is part of the international automotive group Inchcape. • Askja the authorised distributor of Mercedes-Benz, smart, Kia, and Honda. Continued commitment to businesses across the country New lending: Föt og skór Íslandsbanki has initiated a new banking relationship with Föt og skór, a well-known retailer operating multiple established brands and sales channels in the Icelandic fashion market 30 July New lending and growth of loan portfolio • Ergo Loan portfolio increased by 10% year-on-year • New lending amounts to ISK 68.7bn in 2026
Page 8
Strong start to the first half of the year Íslandsbanki 2Q26 Financial Results Corporate and Investment Banking has seen success in the first six months of the year 8 #1 in turnover on Nasdaq Iceland in equities and bonds combined year-to-date • Highest market share in turnover on Nasdaq Iceland in equities and bonds combined year-to-date with the following share: • 19.6% in equities • 18.6% in bonds JAN FEB MAR APR MAY JUN 1 2 2 2 1 1 Financing of a new pelagic vessel • The vessel of Skinney-Þinganes arrived in port in Hornafjörður in May Corporate Finance advised on FÍ's property sale • 11 properties, 25,200 m² total, for a total consideration of ISK 13.1bn 30 July 1 1 Securities brokerage success • During the first half of 2026, Íslandsbanki's securities brokerage handled ISK 52bn of bond issuance (nominal value) • Comprising ISK 24bn for the Bank and ISK 28bn on behalf of customers Year-to-date market share at month-end
Page 9
A balance between digital solutions and personalised services 30 July Íslandsbanki 2Q26 Financial Results 9 Significant milestones with improved in-app access of fund overview and fund subscriptions 2Q26 AI highlights >30 87% of employees are active users of approved, governed AI tools AI Champions in • In-app access to fund overview and fund subscriptions • International payments now live in the app App improvements our specially trained citizen developer community • Continued rollout of new functionality and customer-facing enhancements New online bank
Page 10
30 July Íslandsbanki 2Q26 Financial Results 10 Largest charitable event in Iceland annually ISK 327 million raised in 2025 Over ISK 2 billion since 2006 22 August 2026 Íslandsbanki Reykjavík Marathon
Page 11
Financial Overview 30 July Íslandsbanki 2Q26 Financial Results 11
Page 12
Strong NII growth on back of inflationary effects 30 July Íslandsbanki 2Q26 Financial Results 12 Core operating income grew by 5.9% between years Profit for the period – 2Q25 vs 2Q26 ISKm 7,192 1,400 (362) (41) (834) (856) 570 7,069 2Q25 Net interest income Net fee & commission income Other operating income Operating expenses Impairments Income tax 2Q26
Page 13
NIMs improving YoY despite slightly lower inflationary ticks in the quarter 30 July Íslandsbanki 2Q26 Financial Results 13 Growth in international lending and strong margin control providing NIM uplift • Net interest margin was 3.4% in 2Q26 (3.3% in 2Q25) • The CPI imbalance grew in the quarter and amounted to ISK 231 billion at end of 2Q26 (201 billion at end of 1Q26) • Aggregated inflationary ticks for 2Q26 were 1.43% compared to 1.51% in 2Q25 • Expectations are that aggregated inflationary ticks for 3Q26 will be 1.35% (1.01% in 3Q25) • Policy rates were raised by 25 basis points in May 2026 HighlightsNet interest income Business segments, ISKm Net interest income – YoY comparison ISKm Net interest margin On total assets 4,514 4,426 4,501 5,497 4,997 4,853 4,998 4,888 5,192 5,149 3,333 3,310 3,501 3,834 3,8721,181 1,076 -1,049 2,577 1,263 -550 550 13,881 13,260 12,391 17,100 15,281 2Q25 3Q25 4Q25 1Q26 2Q26 Personal Banking Business Banking Corporate & Investment Banking Other Provision for legal proceedings 13,881 430 200 383 (377) 339 425 15,281 2Q25 Lending volume Lending margin Deposit volume Deposit margin Inflationary effects Other interests 2Q26 3.3% 3.1% 2.9% 3.9% 3.4% 1.51% 1.01% 0.09% 2.49% 1.43% 2Q25 3Q25 4Q25 1Q26 2Q26 Aggregated inflationary ticks
Page 14
Net fee and commission income continues to be pressured 30 July Íslandsbanki 2Q26 Financial Results Income from capital markets and payment processing reducing year-on-year while loans and guaranties grow • Net fee and commission income is down 2.4% in the first half of the year and 10% during the quarter • Lending-related fees are growing between years, partly due to related to international lending activities • However, income from investment banking is adversely affected by economic conditions, which are resulting in considerably less volume on the capital markets • Reduction in cards and payments is mainly owed to higher fee expenses related to loyalty benefits and insurance • Allianz with lower income YoY due to a shift in revenue mix in Q2 HighlightsNet fee and commission income Business segments, ISKm Net fee and commission income – YoY comparison ISKm Net fee and commission income By type, ISKm 14 1,117 946 1,437 877 960 509 515 544 519 533 1,345 1,114 1,563 1,163 1,148 352 340 369 351 322 299 303 319 341 265 3,620 3,229 4,183 3,268 3,258 2Q25 3Q25 4Q25 1Q26 2Q26 Personal Banking Business Banking Corporate & Investment Banking Íslandssjóðir Allianz Ísland hf. Other 711 695 881 759 714 914 679 1,021 684 700 1,049 854 1,391 784 898 534 607 619 647 633 299 303 319 341 265 3,620 3,229 4,183 3,268 3,258 2Q25 3Q25 4Q25 1Q26 2Q26 Asset management Investment banking and brokerage Cards and payment processing Loans and guarantees Allianz Ísland hf. Other fee 3,620 3 (214) (151) 99 (34) (65) 3,258 2Q25 Asset management Investment banking and brokerage Cards and payment processing Loans and guarantees Allianz Ísland hf. Other fee and commission income 2Q26
Page 15
Market risk exposure continues to be a limited part of the Bank's operations 30 July Íslandsbanki 2Q26 Financial Results Loss on NFI mostly related to equities due to adverse market conditions • Net financial expense of ISK 94m was recorded in the quarter • Loss mainly related to equities used for economic hedging which are offset by underlying derivatives accounted for through NII HighlightsNet financial income (expense) ISKm Shares and equity instruments1 ISKbn Other operating income and net FX gain ISKm Bonds and debt instruments2 ISKbn 1. Excluding listed shares and equity instruments used for economic hedging. 2. Excluding listed bonds and debt instruments used for economic hedging. 15 13 -353 404 -213 -94 2Q25 3Q25 4Q25 1Q26 2Q26 52.6 51.6 58.0 54.5 47.5 76.0 82.6 87.9 101.8 107.2 128.6 134.2 145.9 156.3 154.7 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 FX ISK 4.5 3.5 3.2 3.0 3.1 2.6 2.5 2.8 2.8 3.1 7.1 6.0 6.0 5.8 6.2 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 Listed shares Unlisted shares 131 124 447 14 131 71 152 157 157 267 2Q25 3Q25 4Q25 1Q26 2Q26 Other operating income Net foreign exchange gain
Page 16
Cost-to-income ratio remains within target for 1H26 30 July Íslandsbanki 2Q26 Financial Results One-off expenses amounting to ISK 370 million recognised during the second quarter • Salaries and related expenses rose by ISK 807m year-on-year or 9.1% • In the second quarter, the Bank expensed ISK 436m related to the employee variable compensation plan and ISK 63m related to employee share-based incentive scheme. • In addition, around 370m was expensed related to organisational changes in the quarter – both within the Bank and Íslandssjóðir • Software & IT expenses increase from previous year due to increase in usage and increased outsourced service • Overall, operating expenses grew year-on-year 1.2% less than inflation, thus contracting in real terms HighlightsAdministrative expenses ISKm Cost-to-income ratio1,2 Administrative expenses – by type ISKm 1. C/I ratio target was <45% until year-end 2025. 2.C/I ratio for 4Q25 excludes salary expenses of ISK 804m due to early retirem ent of employees and an income of ISK 237m within net interest income (ISK 550m reversed from charge in 3Q25 due to provision for legal proceedings and a charge of ISK 313m du e to correction from previous years). C/I ratio for 3Q25 excludes a charge of ISK 550m within net interest income due to a provision for legal proceedings. Administrative expenses – YoY comparison ISKm 16 2,781 2,531 3,201 2,952 3,046 2,126 1,891 2,490 2,314 2,358 1,926 1,759 2,220 2,026 2,163428 298 433 538 4937,261 6,479 8,344 7,830 8,060 2Q25 3Q25 4Q25 1Q26 2Q26 Personal Banking Business Banking Corporate and Investment Banking Other 7,261 684 (51) 144 15 45 (38) 8,060 Administrative expenses 2Q25 Salaries and related expenses Professional services Software and IT expenses Real estate and office equipment Depreciation Other administrative expenses Administrative expenses 2Q26 41.0% 38.2% 43.5% 38.5% 43.1% 2Q25 3Q25 4Q25 1Q26 2Q26 C/I ratio C/I target 4,412 3,793 4,306 4,612 5,096 804498 365 524 486 4471,197 1,282 1,353 1,363 1,341422 436 485 572 467555 458 693 619 5177,261 6,479 8,344 7,830 8,060 2Q25 3Q25 4Q25 1Q26 2Q26 Other administrative expenses Depreciation Real estate and office equipment Software and IT expenses Professional services Early retirement scheme (one-off cost) Salaries and related expenses
Page 17
Simple balance sheet with good loan and funding profiles 30 July Íslandsbanki 2Q26 Financial Results All liquid assets marked to market Assets • Vast majority of assets consist of lending to both retail and corporates • Strong liquidity portfolio is a consistent factor in balance sheet management • Very limited exposure to non-liquid or non-lending assets Liabilities • Deposits from retail and corporates are the single largest funding source • Bonds and debt instruments have become a more prominent part of the funding mix thanks to continuous focus on attracting new pockets of demand, including foreign currency and ESG issuance Simplified balance sheet structure 30.6.2026, ISK 1,788bn Liquid assets 18% Loan book 79% Deposits 59% Stable funding 38% 17 Other Corporate & public sector lending Lending to individuals Loans to credit institutions Liquidity portfolio Cash in Central Bank ISKm. Other Equity Subordinated loans Senior unsecured bonds Covered bonds Deposits from retail and corporations Deposits from credit institutions and pension funds
Page 18
Loan book composition remains healthy 30 July YTD growth amounts to 3.7% or 7.5% on an annual basis • Around 94% of the loan book are covered by collateral – comparable to previous quarters • Currently, around 5% of loans to customers are to international parties • Composition of the loan portfolio comparable to previous quarters • The credit quality of assets continues to be robust due to strong risk management practices and disciplined lending policies HighlightsLoans to customers By business division, ISKbn Loans to customers By sector, with tourism as a separate sector Íslandsbanki 2Q26 Financial Results 18 624 633 631 648 665 348 346 347 363 359 359 354 387 393 395 1,331 1,333 1,365 1,401 1,416 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 Personal Banking Business Banking Corporate & Investment Banking 43% 44% 43% 43% 44% 11% 11% 10% 10% 9% 8% 8% 8% 8% 9% 7% 7% 8% 9% 9% 7% 7% 7% 7% 7%5% 5% 7% 6% 7%7% 6% 6% 6% 5%6% 6% 6% 6% 6%5% 5% 5% 5% 5% 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 Individuals other Companies other Industrial and transportation Seafood Construction Commerce and services Tourism Real estate Mortgages to individuals Mortgage portfolio By interest rate type, gross carrying amount, ISKbn 131 135 134 130 126 238 242 245 262 277 105 100 104 102 96 103 109 102 108 118 578 587 585 602 618 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 CPI linked floating CPI linked 5Y fixed NIL floating NIL 3-5Y fixed 36% 64% 38% 62% 35% 65% 35% 65% 35% 65% LTV distribution by underlying asset class Loan splitting approach, ISKbn 0 50 100 150 200 250 300 350 Other collateral Cash & securites Vehicles & equipment Vessels Commercial real estate Residential real estate Average LTV 52% (YE25: 52%)
Page 19
Despite economic slowdown, asset quality remains high 30 July Increase in Stage 3 among other related to exposures in the construction sector • Annualised cost of risk was 13 bps in 2Q26 (-12bps for 2Q25) – normalised cost of risk assumed 20- 25 bps through the cycle • Unchanged weights of economic scenarios: 20% good, 50% baseline and 30% bad • Increase in Stage 3 loans mainly related to borrower specific circumstances, mainly in the construction sector • As sale time of new residential real estate remains prolonged, a few construction projects have been classified as Stage 2 or 3, due to heightened uncertainty in the underlying projects • Clear indication that prolonged high interest rates and the inflationary environment has started to have an impact HighlightsNet impairment on financial assets By period, ISKbn Íslandsbanki 2Q26 Financial Results 19 Real estate portfolio: Stage 2 and 3 (NPL) Gross carrying amount as ratio of the real estate portfolio 1.9% 1.9% 3.4% 3.3% 2.5% 2.9% 2.9% 2.8% 3.3% 3.6% 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 Stage 3 Stage 2 Mortgages portfolio: Stage 2 and 3 (NPL) Gross carrying amount as ratio of total mortgages 1.1% 1.1% 1.3% 1.4% 1.4% 1.0% 1.0% 1.0% 1.1% 1.1% 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 Stage 2 Stage 3 Net impairment on financial assets By period, ISKbn Loans to customers: Stage 2 and 3 (NPL) Development of gross carrying amount as ratio of total loans 3.5% 3.6% 4.6% 3.9% 2.6% 1.6% 1.6% 1.5% 2.0% 2.6% 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 Stage 2 Stage 3 -0.2 0.0 1.1 1.2 0.5 -0.1 -0.1 -0.2 0.2 0.2 0.0 0.0 -0.1 -0.1 -0.1 -0.1 0.3 -0.1 -0.1 -0.4 0.0 1.1 1.2 0.5 2Q25 3Q25 4Q25 1Q26 2Q26 Borrower specific circumstances General economic environment Changes in models Other changes in loan portfolio
Page 20
Diversified funding mix, deposit growth moderates 30 July Strong deposit position allows for a more flexible wholesale funding approach • Overall deposits levels grew by 3% in 2Q26, mainly due to increase in deposits from individuals and small and medium enterprises • Continued growth in deposits by individuals, which grew by 3% in 2Q26 and close to 5.5% in the first half of the year • Term deposits were 17% of total deposits at the end of 2Q26 • 68% of deposits held by individuals (and 44% of all deposits) are covered by the deposit guarantee scheme HighlightsFunding sources By type, % of total liabilities and equity Customer loans to customer deposits ratio Development, % Deposits from customers and credit institutions Development, by LCR category, ISKbn Short-term funding Long-term funding Íslandsbanki 2Q26 Financial Results 20 7% 50% 13% 13% 2% 12% 7% 52% 13% 11% 2% 12% Deposits from financial inst. and pension funds Deposit from retail and corp, sovereigns, CB and PSE Senior unsecured bonds Covered Bonds Subordinated debt Equity 31/3/26 30/6/26 138% 132% 141% 138% 136% 116% 112% 119% 116% 117% 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 Customer loans to customer desposit ratio Customer loans (excl. Mortgages funded with CB) to customer deposits ratio 563545534519508 190175179182170 180176165186175 6671576765 5758487263 0 200 400 600 800 1,000 30.6.2631.3.2631.12.2530.9.2530.6.25 Financial institutions Pension Funds Corporations, sovereigns, central banks and PSE Small and medium enterprises Individuals 1,025 1,056 9821,025981 30.06.2631.03.26
Page 21
Strong liquidity position, ratios well above requirements 30 July Íslandsbanki 2Q26 Financial Results 21 Liquid assets 18% of the total balance sheet and fully marked-to-market • All liquidity measures well above regulatory requirements • Total LCR at 188% and NSFR at 126% at end of 2Q26 • The Bank's EUR LCR at the end of 2Q26 was 532% • The Bank's securities portfolios are all MtM (FVTPL and FVOCI). There is no unrealised loss due to HtM (amortised cost) HighlightsTotal liquidity coverage ratio (LCR) Liquidity coverage ratio for ISK Liquid assets % of total assets, ISKbn Net stable funding ratio (NSFR) 188% 0% 100% 200% 300% LCR Regulatory minimum 151% 0% 50% 100% 150% 200% LCR ISK Regulatory minimum 126% 0% 50% 100% 150% NSFR Regulatory minimum 5268708977 4343414036 8889726865 4145474440 918979 114 86 30.6.2631.3.2631.12.2530.9.2530.6.25 Cash and balances with Central Bank Foreign currency bonds Domestic currency bonds Level 2 liquid assets Balances with financial institutions 334 (19%) 305 (18%) 354 (20%) 309 (18%) 315 (18%) Level 1 liquid assets
Page 22
The Bank is fully MREL funded throughout the year 30 July Íslandsbanki 2Q26 Financial Results Good diversification of funding sources across products and maturities, as well as across investor types and locations • Strong credit spread development through 2Q26 in good market conditions • The Bank's wholesale borrowing split remains evenly divided between ISK and foreign currencies • Limited maturities for the remainder of 2026 allow the Bank to remain an adaptive issuer • Domestically in 2Q26 the Bank sold ISK 7bn of ISK denominated covered bonds • The Bank issued 3-year NOK 600m and SEK 1,400m senior preferred green notes in June • In March S&P affirmed the Bank's covered bond programme rating of A+ and revised the outlook from stable to positive • In November 2025, Moody's Ratings affirmed Íslandsbanki's A2 long-term deposit and A3 long-term issuer ratings, with a stable outlook HighlightsSources of borrowings, ISKbn Contractual maturity profile of borrowings 30.06.26, ISKbn Borrowings per year, ISKbn Development of EUR funding spread, bps 22 206 170 165 169 164 11 16 32 39 40 11 21 22 23 24 44 45 44 45 37 159 158 116 181 188 24 17 9 17 1749 28 12 11 11 503 456 400 485 481 31.12.22 31.12.23 31.12.24 31.12.25 30.06.26 Other borrowings Hybrid/sub. capital - FX Senior Preferred - FX Covered Bonds - FX Hybrid/sub. capital - ISK Senior Preferred - ISK Covered Bonds - ISK 6 22 13 41 82 1 9 23 8 24 37 4 17 51 26 89 17 11 12 96 87 66 220 2026 2027 2028 2029 ≥2030 Other borrowings Hybrid/sub. capital - FX Senior Preferred - FX Covered Bonds - FX Hybrid/sub. capital - ISK Senior Preferred - ISK Covered Bonds - ISK 0 50 100 150 30.06.25 30.09.25 31.12.25 31.03.26 30.06.26 Íslandsbanki Senior Preferred 2032 Íslandsbanki Senior Preferred 2030 Íslandsbanki Senior Preferred 2028 Senior IBOXX index 18 31 22 23 25 9 7 16 911 10 44 75 58 64 101 26 12 11 168 105 102 145 51 2022 2023 2024 2025 1H26 Other borrowings Hybrid/sub. capital - FX Senior unsecured - FX Covered Bonds - FX Hybrid/sub. capital - ISK Senior unsecured - ISK Covered Bonds - ISK
Page 23
Capitalisation remains strong end of the quarter 30 July Íslandsbanki 2Q26 Financial Results 23 Total distribution capacity amounts to ISK 23.1bn as of now • Following a favourable CRR 3 implementation year-end 2025, a further reduction of 2% of the Groups REA were realised following the Central Bank adoption of a loan splitting approach for IPRE mortgage exposures • SREP: As of 30 June 2026, the Bank must maintain an additional capital requirement of 1.8% of the REA, resulting in an overall capital requirement of 19.5% and capital target of 21.5%, assuming the midpoint of the management buffer • Total distributions during the first half of the year amounted to ISK 27.8bn, thereof ISK 15.2bn through buybacks • As of 30 June 2026, ISK 3.9bn have been allocated to share buybacks which are deducted from the CET1 capital but yet to be completed • Total distribution capacity (including uncompleted buybacks) amounts to ISK 23.1bn, assuming a fully optimised capital structure • The Bank remains committed in its efforts to optimise its capital structure through growth and distributions to shareholders HighlightsCurrent regulatory requirements and minimum capital target 30.6.2026, by capital composition Capital and leverage ratios % of REA (% of total exposure for leverage ratio) 1CET1 capital target set at mid-point of management buffer REA and REA ratio ISKbn and % of total assets 15.2% 17.2% 19.1% 1.8% 1.8% 1.6% 2.5% 2.5% 2.3% 0.0% 5.0% 10.0% 15.0% 20.0% Overall capital requirement Management buffer Capital target Capital ratio CET1 AT1 T2 Overall capital requirement 19.5% Capital target 20.5-22.5% Management buffer 1.0-3.0% Capital ratio 23.0% 1 1,084 1,085 1,034 1,049 1,044 63.9% 62.5% 59.8% 58.7% 58.4% 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 REA REA ratio (REA/Total assets) 21.5% 21.9% 24.0% 22.5% 23.0% 18.5% 18.9% 20.1% 18.6% 19.1% 12.0% 11.9% 12.5% 11.5% 11.7% 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 Total capital ratio CET1 ratio Leverage ratio 1
Page 24
30 July Íslandsbanki 2Q26 Financial Results Strong performance Strong excess capital position Updated guidance for 2026 11.1% 13.4% Return on Equity1H25 1H26 Excess CET1 ISK 23.1bn 24 ROE ROE >12.5%
Page 25
Q&A 30 July Íslandsbanki 2Q26 Financial Results 25
Page 26
Appendix I About Íslandsbanki and additional financial information 30 July Íslandsbanki 2Q26 Financial Results 26
Page 27
Key figures 2Q26 ROE 13.3% Cost-to-income ratio 43.1% CET1 ratio 19.1% Total capital ratio 23.0% LCR 188% Group, all currencies NSFR 126% Group, all currencies Leverage ratio 11.7% Total assets ISK 1,788bn Ratings and certifications BBB+/A-2 Positive outlook Stable outlook A3 A3 Exceptional ESG risk rating This is Íslandsbanki 30 July Íslandsbanki 2Q26 Financial Results 27 We empower our customers to be a force for good Progressive thinking Collaboration Professionalism Values The Bank 691 FTEs: Number of FTEs at Íslandsbanki at period-end 12 branches Listed on Nasdaq Iceland as of June 2021 32% Retail customers 37% SMEs Market share1 Sustainability risk integrated into Íslandsbanki's risk model for corporate lending Sustainability in 2Q26 Digital milestones in 2Q26 1. For retail customers, based on the number of customers with active deposits as percentage of people with domicile in Icela nd, for SMEs on average market share from Gallup's last four corporate surveys the most recent one carried out during 2Q26 Íslandsbanki maintained its Exceptional ESG rating, of A3, from Reitun, an Icelandic rating agency Íslandsbanki's sustainable assets amounted to ISK 182bn at end of 2Q26 Continued enhancements to customer experience through new features and improvements to core functionality In-app access to fund overview and fund subscriptions and International payments were launched in the app Numerous new features were added to the new online bank, including invoice financing capabilities. In June the Bank concluded a 3- year green senior preferred bond offering of NOK 600m and SEK 1.4bn
Page 28
Financial overview 30 July Íslandsbanki 2Q26 Financial Results Key figures & ratios 1. C/I ratio for 4Q25 excludes salary expenses of ISK 804m due to early retirement of employees and an income of ISK 237m wit hin net interest income (ISK 550m reversed from charge in 3Q25 due to provision for legal proceedings and a charge of ISK 313m due to correction from previous year). C/I ratio for 3Q25 excludes a charge of 550m within net interest income due to a provision for legal proceedings. 2 Negative cost of risk means that there is a net release of impairments. 3. Stage 3 loans to customers, gross carrying amoun t. 4. Including 1Q26 profit for 31.3.26 and 3Q25 profit for 30.9.25. 5. MREL ratio includes the CET1 capital held to meet the combined buffer requirement. 28 2Q26 1Q26 4Q25 3Q25 2Q25 PROFITABILITY Profit for the period, ISKm 7,069 7,456 5,947 6,901 7,192 Return on equity 13.3% 13.6% 10.5% 12.2% 13.0% Net interest margin (on total assets) 3.4% 3.9% 2.9% 3.1% 3.3% Cost-to-income ratio1 43.1% 38.5% 43.5% 38.2% 41.0% Cost of risk2 0.13% 0.35% 0.32% (0.00%) (0.12%) 30.6.26 31.3.26 31.12.25 30.9.25 30.6.25 BALANCE SHEET Loans to customers, ISKm 1,416,048 1,401,212 1,367,106 1,333,234 1,331,288 Total assets, ISKm 1,788,385 1,786,697 1,728,147 1,734,056 1,696,034 Risk exposure amount, ISKm 1,043,713 1,049,435 1,033,788 1,084,527 1,084,492 Deposits from customers, ISKm 1,038,206 1,013,431 968,695 1,008,919 966,075 Customer loans to customer deposits ratio 136% 138% 141% 132% 138% Non-performing loans (NPL) ratio3 2.6% 2.0% 1.5% 1.6% 1.6% LIQUIDITY Net stable funding ratio (NSFR), for all currencies 126% 123% 127% 129% 125% Liquidity coverage ratio (LCR), for all currencies 188% 177% 203% 207% 185% CAPITAL Total equity, ISKm 211,095 212,718 225,359 226,974 224,725 CET 1 ratio4 19.1% 18.6% 20.1% 18.9% 18.5% Tier 1 ratio4 20.7% 20.2% 21.7% 19.8% 19.4% Total capital ratio4 23.0% 22.5% 24.0% 21.9% 21.5% Leverage ratio4 11.7% 11.5% 12.5% 11.9% 12.0% MREL ratio5 43.9% 40.3% 44.0% 36.8% 36.7%
Page 29
Income statement 30 July Íslandsbanki 2Q26 Financial Results 29 Income statement, ISKm 2Q26 2Q25 ∆% 1H26 1H25 ∆% Net interest income 15,281 13,881 10% 32,381 26,820 21% Net fee and commission income 3,258 3,620 (10%) 6,526 6,687 (2%) Net financial income (expense) (94) 13 - (307) (973) (68%) Net foreign exchange gain 267 71 276% 424 118 259% Other operating income 1 131 (99%) 15 594 (97%) Total operating income 18,713 17,716 6% 39,039 33,246 17% Salaries and related expenses (5,096) (4,412) 16% (9,708) (8,901) 9% Other operating expenses (2,964) (2,849) 4% (6,182) (5,756) 7% Administrative expenses (8,060) (7,261) 11% (15,890) (14,657) 8% Bank tax (548) (513) 7% (1,094) (1,013) 8% Total operating expenses (8,608) (7,774) 11% (16,984) (15,670) 8% Profit before net impairment on financial assets 10,105 9,942 2% 22,055 17,576 25% Net impairment on financial assets (454) 402 - (1,673) 399 - Profit before tax 9,651 10,344 (7%) 20,382 17,975 13% Income tax expense (2,582) (3,152) (18%) (5,857) (5,574) 5% Profit for the period 7,069 7,192 (2%) 14,525 12,401 17% Key ratios Net Interest Margin (NIM) 3.4% 3.3% 3.7% 3.2% Cost-to-income ratio (C/I) 43.1% 41.0% 40.7% 44.1% Return on Equity (ROE) 13.3% 13.0% 13.4% 11.1% Cost of risk (COR) 0.13% (0.12%) 0.24% (0.06%)
Page 30
Íslandsbanki's MREL requirement 30 July Íslandsbanki 2Q26 Financial Results 30 A resolution plan approved for the Bank on 17 October 2025 Minimum Requirement for Own Funds and Eligible Liabilities (MREL), 30.6.2026 MREL = RCA+LCC =2x(P1+P2) • The Icelandic Resolution Authority approves annually a resolution plan for the Bank. The Resolution plan stipulates that the MREL requirement for Íslandsbanki is the sum of the Loss absorption amount (LAA) and Recapitalisation amount (RCA), both equal to the total SREP capital requirement in force at the date of approval (9.4%), resulting in an MREL requirement of 18.8% of REA. • CET1 capital that is maintained to meet the combined buffer requirement can not be used to fulfil MREL, therefore the effective requirement can be monitored as 28.5% MREL Development, % 36.7% 36.8% 44.0% 41.3% 43.9% 28.5% 0 .050 .10 .150 .20 .250 .30 .350 .40 .450 .50 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 MREL MREL requirement 9.7% 9.4% 9.4% 9.7% 13.3% 20.9%28.5% 43.9% MREL including CBR Own funds and eligible liabilities Eligible liabilities Own funds RCA LCC Combined buffer requirement
Page 31
Assets 30 July Íslandsbanki 2Q26 Financial Results Asset base mainly consists of loans and liquid assets 1. Stage 3, loans to customers, gross carrying amount. 31 Assets, ISKm 30.6.26 31.3.26 Δ Δ% 31.12.25 Δ Δ% Cash and balances with Central Bank 91,559 88,909 2,650 3% 80,394 11,165 14% Loans to credit institutions 65,288 79,739 (14,451) (18%) 80,009 (14,721) (18%) Bonds and debt instruments 166,740 164,093 2,647 2% 151,959 14,781 10% Derivatives 4,047 4,052 (5) (0%) 5,304 (1,257) (24%) Loans to customers 1,416,048 1,401,212 14,836 1% 1,367,106 48,942 4% Shares and equity instruments 12,770 15,497 (2,727) (18%) 20,517 (7,747) (38%) Other assets 31,933 33,195 (1,262) (4%) 22,858 9,075 40% Total Assets 1,788,385 1,786,697 1,688 0% 1,728,147 60,238 3% Key ratios Risk Exposure Amount (REA) 1,043,713 1,049,435 (5,722) (1%) 1,033,788 9,925 1% REA / total assets 58.4% 58.7% 59.8% Non-performing loans (NPL) ratio¹ 2.6% 2.0% 1.5%
Page 32
Liabilities and equity 30 July Íslandsbanki 2Q26 Financial Results Deposits continue to be the largest source of funding 32 Liabilities & Equity, ISKm 30.6.26 31.3.26 Δ Δ% 31.12.25 Δ Δ% Deposits from Central Bank and credit institutions 17,664 11,419 6,245 55% 13,250 4,414 33% Deposits from customers 1,038,206 1,013,431 24,775 2% 968,695 69,511 7% Derivative instruments and short positions 2,691 5,950 (3,259) (55%) 6,183 (3,492) (56%) Debt issued and other borrowed funds 440,206 452,085 (11,879) (3%) 444,593 (4,387) (1%) Subordinated loans 40,874 40,530 344 1% 40,315 559 1% Tax liabilities 13,440 13,386 54 0% 12,757 683 5% Other liabilities 24,209 37,178 (12,969) (35%) 16,995 7,214 42% Total Liabilities 1,577,290 1,573,979 3,311 0% 1,502,788 74,502 5% Total Equity 211,095 212,718 (1,623) (1%) 225,359 (14,264) (6%) Total Liabilities and Equity 1,788,385 1,786,697 1,688 0% 1,728,147 60,238 3% Key ratios Customer loans to customer deposits ratio 136% 138% 141% Net stable funding ratio (NSFR) 126% 123% 127% Liquidity coverage ratio (LCR) 188% 177% 203% CET 1 ratio 19.1% 18.6% 20.1% Tier 1 capital ratio 20.7% 20.2% 21.7% Total capital ratio 23.0% 22.5% 24.0% Leverage ratio 11.7% 11.5% 12.5% MREL ratio 43.9% 40.3% 44.0%
Page 33
Loan book composition remains healthy 30 July Portfolio based on robust credit culture and very high collateralisation 1. Risk class distribution at YE25 shown as comparison • Around 94% of the loan book are covered by collateral – comparable to previous quarters • Around 5% of loans to customers are to international parties • Composition of the loan portfolio comparable to previous quarters • The credit quality of assets continues to be robust due to strong risk management practices and disciplined lending policies HighlightsLoans to customers By business division, ISKbn Loans to customers By sector, with tourism as a separate sector LTV distribution by underlying asset class Loan splitting approach, ISKbn Loans to customers: gross carrying amount1 Risk class and impairment stage, 30.06.2026, ISKbn Íslandsbanki 2Q26 Financial Results 33 0 50 100 150 200 250 300 350 Other collateral Cash & securites Vehicles & equipment Vessels Commercial real estate Residential real estate Average LTV 52% (YE25: 52%) 540 632 189 25 37 1-4 5-6 7-8 9 10 Unrated YE2025 Stage 3 Stage 2 Stage 1 43% 44% 43% 43% 44% 11% 11% 10% 10% 9% 8% 8% 8% 8% 9% 7% 7% 8% 9% 9% 7% 7% 7% 7% 7%5% 5% 7% 6% 7%7% 6% 6% 6% 5%6% 6% 6% 6% 6%5% 5% 5% 5% 5% 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 Individuals other Companies other Industrial and transportation Seafood Construction Commerce and services Tourism Real estate Mortgages to individuals 624 633 631 648 665 348 346 347 363 359 359 354 387 393 395 1,331 1,333 1,365 1,401 1,416 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 Personal Banking Business Banking Corporate & Investment Banking
Page 34
Despite economic slowdown, asset quality remains high 30 July Increase in stage 3 among other related to exposures in the construction sector • Increase in Stage 3 loans mainly related to borrower specific circumstances • As sale time of new residential real estate is still high, a few construction projects have been classified on stage 2 • Clear indication that prolonged high interest rate and inflationary environment has started to have an impact • The definition of forbearance includes a 24-month probation period. Therefore, loans are classified as forborne even after normal payments have resumed HighlightsNet impairment on financial assets By period, ISKbn Current and expected cost-of-risk Performing loans with forbearance Development of gross carrying amount as ratio of total loans Loans to customers: Stage 2 and 3 (NPL) Development of gross carrying amount as ratio of total loans Íslandsbanki 2Q26 Financial Results 34 • Annualised cost of risk was 13bps in 2Q26 (-12bps for 2Q25) • The probability weights of economic scenarios were kept unchanged at 20% (good), 50% (baseline), and 30% (bad) at the end of 2Q26. The weights were last changed at end of 1Q22. • A shift of 5% from baseline to the bad scenario would increase the impairment allowance by ISK 270 million while 5% shift from the baseline to the good would decrease the allowance by ISK 110 million 3.5% 3.6% 4.6% 3.9% 2.6% 1.6% 1.6% 1.5% 2.0% 2.6% 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 Stage 2 Stage 3 0.6% 0.6% 0.7% 0.7% 0.8% 1.4% 1.5% 1.4% 1.3% 0.9% 2.0% 2.0% 2.0% 2.0% 1.6% 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 Companies Individuals -0.2 0.0 1.1 1.2 0.5 -0.1 -0.1 -0.2 0.2 0.2 0.0 0.0 -0.1 -0.1 -0.1 -0.1 0.3 -0.1 -0.1 -0.4 0.0 1.1 1.2 0.5 2Q25 3Q25 4Q25 1Q26 2Q26 Borrower specific circumstances General economic environment Changes in models Other changes in loan portfolio
Page 35
Nominal rate mortgages gaining momentum 30 July Nominal fixed rate imbalance effectively run of by now – CPI related fixed rate imbalance still remains • Composition of mortgage products beginning to normalise, with nominal rate mortgages starting to grow • At origination, LTV is capped at 80% (85% for first time buyers) and debt service-to-income at 30% (35% for first-time buyers) • Healthy LTVs in the mortgage book where average LTVs amount to 56% (54% year-end 2025) Highlights Íslandsbanki 2Q26 Financial Results 35 LTV distribution of mortgages Gross carrying amount, loan splitting approach, ISKbn Mortgage portfolio By interest rate type, gross carrying amount, ISKbn Interest rate reset profile for NIL 3-5y fixed rate mortgages Gross carrying amount, ISKbn Mortgages portfolio: Stage 2 and 3 (NPL) Gross carrying amount as ratio of total mortgages 1.1% 1.1% 1.3% 1.4% 1.4% 1.0% 1.0% 1.0% 1.1% 1.1% 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 Stage 2 Stage 3 131 135 134 130 126 238 242 245 262 277 105 100 104 102 96 103 109 102 108 118 578 587 585 602 618 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 CPI linked floating CPI linked 5Y fixed NIL floating NIL 3-5Y fixed 36% 64% 38% 62% 35% 65% 35% 65% 35% 65% 2 1 13 8 8 85 3Q26 4Q26 2027 2028 2029 2030+ // 0 20 40 60 80 100 120 140 31.12.25 30.6.26Average LTV 56% (YE25: 54%)
Page 36
Increase in Stage 3 relates to slower new construction market 30 July Íslandsbanki 2Q26 Financial Results 36 • Loans to real estate companies and construction amount to 9% and 7% of loans to customers, respectively • Disciplined origination with conservative LTV requirements and debt service criteria • Real estate companies naturally hedged in cash flow as both rental agreements and financing are both long-term and primarily CPI linked. • High occupancy ratio of the listed commercial real estate companies of around 95% • Over half of exposure in the construction sector is for residential real estate with low LTV compared to expected sales values HighlightsDevelopment of exposure to real estate companies Gross carrying amount by period, ISKbn Development of construction exposure Gross carrying amount by period, ISKbn Real estate portfolio: Stage 2 and 3 (NPL) Gross carrying amount as ratio of the real estate portfolio Real estate collateral by type Occupancy ratios high for domestic commercial real estate companies Residential 21% Hotels and restaurants 19% Office space 11% Industrial or storage 21% Retail 21% Public buildings 1% Other 6% ISK 151bn 1.9% 1.9% 3.4% 3.3% 2.5% 2.9% 2.9% 2.8% 3.3% 3.6% 30.6.25 30.9.25 31.12.25 31.3.26 03.6.26 Stage 3 Stage 2 148 147 142 141 135 22 22 18 20 16 170 169 161 162 151 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 Off-balance On-balance 99 99 101 105 106 42 42 52 47 53 141 141 153 153 159 30.6.25 30.9.25 31.12.25 31.3.26 30.6.26 Off-balance On-balance
Page 37
Appendix II Icelandic economy update 30 July Íslandsbanki 2Q26 Financial Results 37
Page 38
30 July 38 Slow GDP growth in the near term, gaining pace later on… Real GDP and main subitems, YoY change, % GDP growth regains steam after a subdued 2026 Persistent inflation forces the Central Bank to hold rates high for longer …leading to continued tight monetary policy in coming quarters CBI policy rate and real policy rate, % 8.9 5.0 -1.3 1.3 1.3 2.1 2.5 -18 -14 -10 -6 -2 2 6 10 14 18 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 Imports Exports Inventory chg. Investment Public consumption Priv.consumption GDP 0 2 4 6 8 10 12 2020 2021 2022 2023 2024 2025 2026 2027 2028 Inflation Effective CBI policy rate Inflation forcast Policy rate forecast ...as exports return to more robust growth from 2026 after a soft patch Exports and contribution from subcomponents, % change 1.0 1.4 3.3 3.0 -35 -30 -25 -20 -15 -10 -5 0 5 10 15 20 25 2010 2013 2015 2017 2019 2021 2023 2025 2027 Goods exports Service exports Total exports Inflation has proven persistent and will stay high in the near term… CBI policy rate and real policy rate, % 0 1 2 3 4 5 6 7 8 9 10 11 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Inflation Inflation forecast Optimistic scenario Pessimistic scenario Inflation target Íslandsbanki 2Q26 Financial Results
Page 39
The Icelandic economy and society draw on many strengths 39 Íslandsbanki 2Q26 Financial Results 30 July The Icelandic economy and society draw on many strengths Icelanders enjoy high standards of living in a modern, open and egalitarian society Iceland ranks highly on a variety of global development benchmarks Income inequality is low compared to OECD peers Gini coefficient, OECD, most recent data available Export base has grown more diverse over time Export contribution by industry Sustainable energy usage is prevalent Energy consumption by source, 2022 Net international investment position has changed % of GDP 0.0 0.1 0.2 0.3 0.4 0.5 SVK ISL SVN CZE NOR BEL FIN DNK AUT SWE CAN POL HUN FRA IRL DEU EST LUX GRC PRT NLD CHE RUS AUS ESP NZL ITA KOR JPN ROU ISR LVA GBR LTU USA Shaded area denotes OECD forecast Source: Statistics Iceland, Central Bank of Iceland, OECD, IMF, WEF, IEP, The Economist, UN, Transparency Int., HF, Yale, IMD , INSEAD Public debt remains sustainable after pandemic General govt. gross financial liabilities, % of GDP 0 20 40 60 80 100 120 140 2010 2012 2014 2016 2018 2020 2022 2024 2026 Iceland UK USA Euro area OECD avg 20.2% 65.2% 14.1% 0.4% Hydropower Geothermal Fossil fuels Biofuels 44% -200% -150% -100% -50% 0% 50% 100% 2001 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 10% 10% 15% 31% 16% 18% 10% 0 500 1000 1500 2000 2013 2015 2017 2019 2021 2023 2025 Seafood Aluminium Tourism IP industries Other goods Other services 10% 19% 31% 16% 18% 6% 18% 1 2 1 10 16 10 20 15 0 50 100 150 200 Gender equality (WEF) Democracy index (The… Human development (UN) Corruption (Transparency Int.) Economic freedom (HF) Environmental perf. index (Yale) Global innovation index… Competitiveness (IMD) rank no. of countries ranked
Page 40
Upward-sloping GDP growth path after a subdued 2026 Íslandsbanki 2Q26 Financial Results Temporary lull caused mainly by a brief setback in exports and a high real interest rate GDP and contribution of its subcomponents Volume change from prior year (%), annual data GDP and contribution of its subcomponents Volume change from prior year (%), quarterly data • Economic growth returned in 2025, with 1.3% growth following a 1.3% GDP contraction in 2024. Growth was supported by strong private consumption, continued investment, and moderate export gains. • Growth is expected to remain at 1.3% in 2026, although the drivers of growth will shift, with weaker domestic demand and declining investment offset by export growth and a slight contraction in imports. • The medium-term outlook is more favourable, with growth expected to accelerate to 2.1% in 2027 and 2.5% in 2028. Stronger private consumption, recovering investment, and faster export growth are expected to underpin this improvement. • Economic uncertainty remains elevated, due to both domestic and international risks. • Key external risks include geopolitical tensions in the Persian Gulf and the ongoing US-led tariff dispute, where renewed escalation could dampen global growth, raise inflationary pressures, and weaken demand for Icelandic exports. • Domestic risks stem primarily from possible seismic activity, housing market developments, and labour market uncertainty. • Upside potential comes for example from productivity gains driven by AI and the expanding intellectual property sector. Highlights Shaded areas and dotted lines denote ÍSB Research forecasts Sources: Statistics Iceland, ÍSB Research -0.8 -3.0 -0.2 -1.5-0.5 3.1 -0.4 3.2 -0.6 2.7 -27 -24 -21 -18 -15 -12 -9 -6 -3 0 3 6 9 12 15 18 21 24 2018 Q1 2020 Q1 2022 Q1 2024 Q1 2026 Q1 Imports Exports Investment Public consumption Priv. consumption GDP 8.9 5.0 -1.3 1.3 1.3 2.1 2.5 -18 -16 -14 -12 -10 -8 -6 -4 -2 0 2 4 6 8 10 12 14 16 18 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 Imports Exports Inventory chg. Investment Public consumption Priv.consumption GDP 30 July 40
Page 41
Tourism to languish while other export sectors blossom 30 July Íslandsbanki 2Q26 Financial Results 41 1.0 1.4 3.3 3.0 -35 -30 -25 -20 -15 -10 -5 0 5 10 15 20 25 2010 2013 2015 2017 2019 2021 2023 2025 2027 Goods exports Service exports Total exports 0 200 400 600 800 1000 1200 1400 1600 1800 2000 2013 2015 2017 2019 2021 2023 2025 est Seafood Aluminium Tourism IP industries Other goods Other services Tepid growth in established export pillars; growth in intellectual property and aquaculture takes the lead Shaded areas and dotted lines denote ÍSB Research forecasts Sources: Statistics Iceland, Federation of Icelandic Industries, ÍSB Research • Tourism outperformed expectations in 2025, as a brisk high season offset the off-season slump; foreign departures via Keflavík Airport were about unchanged from 2024. • Early 2026 has also beaten expectations, with 1H26 foreign departures just shy of 1H25 levels, though transit passenger numbers fell markedly. • A small contraction is expected in 2026, as a strong peak season aided by August's solar eclipse is offset by a weaker autumn—visitor numbers down just over 1% YoY. • Modest growth is forecast for 2027– 2028, returning 2028 tourist numbers roughly to the 2018 record. • Metals and groundfish exports are set to contract near-term, though groundfish could be more than offset by a strong capelin season and healthy aquaculture growth. • IP exports are surging—ISK 369bn in 2025, double the level early in the decade; ICT services revenues jumped 61% to ISK 124bn in the year to end- March 2026. • IP export growth should stay robust on data centres, pharmaceuticals, and medical equipment; total exports (up 1.0% in 2025) should accelerate, led by services, higher fishing quotas, and resolved aluminium output. Highlights Export revenues, by key sector ISKbn at current prices and share of total in 2025 Exports and contribution from subcomponents % change 10% 6% 19% 31% 16% 18%
Page 42
30 July Íslandsbanki 2Q26 Financial Results 42 -3.2 -3.7 -1.9 -1.4-1.6 -15 -10 -5 0 5 10 15 20 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 Goods trade Services trade Primary income Net transfers Current account 7.1 -0.6 2.4 3.5 -30 -25 -20 -15 -10 -5 0 5 10 15 20 25 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 Goods imports Service imports Total imports External trade on the mend Modest current account deficit over the horizon, but high real exchange rate is a barrier to equilibrium Shaded areas and dotted lines denote ÍSB Research forecasts Sources: Statistics Iceland, Central Bank of Iceland, ÍSB Research • Imports are forecast to contract by 0.6% in 2026, mainly due to reduced imports of data-centre equipment, alongside softer imports of rental cars and other capital goods. • As domestic activity strengthens thereafter, imports are likely to regain momentum. Net trade is expected to support GDP growth in 2026–2027 before turning slightly negative at the end of the forecast horizon. • Following substantial current account deficits in 2024–2025, external balances are set to improve, helped by stronger terms of trade due to e.g. elevated marine product and aluminium prices. • The current account deficit is projected at just under 2% of GDP in 2026 and around 1.5% of GDP in 2027–2028, a level considered sustainable given expected economic growth. • A balanced current account would still be preferable over the longer term, but the high real exchange rate suggests some depreciation of the ISK may eventually be needed. • Iceland’s external position remains exceptionally strong, with net external assets equivalent to 43% of GDP at end- 2Q26, supporting both exchange rate stability and investor confidence. Highlights Imports and contribution from subcomponents % change Current account balance % of GDP
Page 43
30 July Íslandsbanki 2Q26 Financial Results 43 186.8 195.9 144.7 152.0 126.0 126.7 70 80 90 100 110 120 130 14050 70 90 110 130 150 170 190 210 230 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 ISK trade-weighted index EUR/ISK REER, relative prices (r.axis) ISK stable but will probably soften over time High real exchange rate challenges the export sector, putting downward pressure on the nominal ISK rate Sources: Statistics Iceland, Central Bank of Iceland, ÍSB Research • The ISK has been remarkably stable despite domestic and external shocks, with the trade-weighted index virtually unchanged in 2023 and 2024. • It strengthened marginally in 2025 and gained further in 2026; by June it was nearly 2% stronger in trade-weighted terms than in December 2025. • Exchange rate stability despite a sizeable current account deficit reflected favourable FX flows, with much of it financed by non-residents, limited forward sales of peak-season tourism revenues, modest pension-fund FX purchases, and sizeable corporate FX borrowing. • Near-term support should persist through a narrowing current account deficit, a strong NIIP, ample reserves, solid fundamentals, and a wide interest- rate differential. • The ISK could weaken, however, if next winter's tourist season disappoints, investment-related inflows contract sharply, or terms of trade worsen materially. • The real exchange rate should stay near historical highs if export sectors avoid a larger setback, but faster domestic wage and price growth in Iceland than main trading partners means the nominal rate must eventually fall. • The baseline assumes gradual depreciation, ending about 5% weaker than end-2025 – near EURISK 153 and USDISK 132 – though the forecast is highly uncertain. Highlights ISK exchange rate Major currency exchange rates against the ISK and index values ISK exchange rate and real exchange rate EURISK levels and indices Historical maximum REER 160 165 170 175 180 185 190 195 200 205 210 120 125 130 135 140 145 150 155 160 2023 2023 2024 2024 2025 2025 2026 EURISK USDISK GBPISK (r.axis) TW index (r.axis)
Page 44
30 July Íslandsbanki 2Q26 Financial Results 44 0 20 40 60 80 100 120 140 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Iceland UK USA Euro area OECD avg Domestic balance sheets remain broadly robust Private sector debt ratios are stable, and public debt is on a more favourable trajectory than many major economies Private sector debt % of GDP Corporate debt % of GDP Household debt % of disposable income General government gross financial liabilities % of GDP Shaded areas indicate OECD forecasts. Source: Central Bank of Iceland, Eurostat, Statistics Iceland, OECD 70 75 0 50 100 150 200 250 300 350 400 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 Households Businesses (excl. financial) 0 50 100 150 200 250 300 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 Iceland Denmark Sweden Finland Ireland Norway 0 50 100 150 200 250 300 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 Iceland Denmark Sweden Netherlands Ireland Norway
Page 45
30 July Íslandsbanki 2Q26 Financial Results 45 6.5 4.0 -3.8 0.5 3.0 -15 -10 -5 0 5 10 15 20 25 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 Public sector Residential Business Total investment Investment to dip temporarily in 2026 A turning point in data-centre development and a challenging rate environment weigh on the near-term outlook Sources: Central Bank of Iceland, Statistics Iceland, Gallup • Investment has risen over the past five years, driven by strong investment growth in tourism, fishing, and IT. Higher interest rates and export headwinds have since slowed growth, offset lately by data centres and aquaculture. • Gross capital formation grew 4% YoY in 2025 — the weakest pace since the pandemic and below the ten-year average of over 8%. Growth came almost entirely from business investment. • Investment looks set to contract by nearly 4% in 2026, as private-sector investment falls broadly, and only modest public investment pulls the other way. • The business-investment downturn reflects cooling data centre development and lower spending on transport equipment and machinery, alongside slower hotel and commercial property construction. • Infrastructure-related investment provides a partial offset, classified variously as business and public investment in SI's figures. • Investment should recover later in the horizon, supported by falling rates, brighter export prospects, ongoing investment in energy infrastructure and land-based aquaculture, and renewed housing construction. • We forecast investment growth of 0.5% in 2027 and 3% in 2028 — a softer upswing than projected earlier this year, given higher real interest rates and energy- procurement risks. Highlights Investment, real change, and contribution of subcomponents % Business investment and related indicators YoY change (%) and index 0 20 40 60 80 100 120 140 160 180 200 -80 -60 -40 -20 0 20 40 60 80 2018 2019 2020 2021 2022 2023 2024 2025 2026 General business investment Investment goods imports VAT turnover, construction 6M corporate expectations (r.axis)
Page 46
30 July Íslandsbanki 2Q26 Financial Results 46 Unemployment to peak in 2026 Wage developments will be shaped by long-term contracts, and wage drift will be limited 1. Excluding recipients of part-time unemployment benefits. Sources: Statistics Iceland, Central Bank of Iceland, ÍSB Research • Unemployment has risen steadily since the end of 2025 and currently stands at 4.6%, its highest level since 2021. It is expected to ease over the summer but average unemployment is projected to peak in 2026 before declining over the forecast horizon. • Some slack has opened up in the labour market as persistent inflation and high interest rates weigh on economic activity. Elevated uncertainty due to economic headwinds abroad is also likely to make firms more cautious. • Firms’ hiring intentions are at a low ebb, and only 16% of executives at Iceland’s largest companies consider their firms understaffed. The share has reached its lowest level since 2021 in 4Q25. Immigration has also slowed markedly as employment opportunities have become scarcer. • Although unemployment is expected to peak this year, Iceland's flexible labour market should allow it to decline fairly quickly as economic activity recovers. • Considerable uncertainty surrounds a large share of wage agreements, which may be reviewed or terminated in November if inflation exceeds 4.7% in August. We expect inflation to exceed the threshold but assume that the contracting parties will reach an agreement and avoid termination. • Wage increases in 2027 are projected to be slightly larger than stipulated in current agreements but modest by historical standards, as wage drift remains limited. Real wages are therefore expected to continue rising, albeit at a moderate pace. Highlights Wages, YoY change % Unemployment1 % of workforce, annual average 1.0 1.3 1.1 -10.0 -5.0 0.0 5.0 10.0 15.0 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 Wages Real wages 4.5 4.0 3.6 0 1 2 3 4 5 6 7 8 9 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028
Page 47
30 July Íslandsbanki 2Q26 Financial Results 47 4.3 1.92.53.3 0 20 40 60 80 100 120 140 160 -20 -15 -10 -5 0 5 10 15 2007 2009 2011 2013 2015 2017 2019 2021 2023 2025 2027 Private consumtion Household card turnover Real wages Gallup CC index (r.axis) Private consumption growth to continue in 2026, but at a slower pace Real wage growth and sizeable accumulated savings will support household consumption in the coming term Sources: Central Bank of Iceland, Statistics Iceland, ÍSB Research • Private consumption grew by 4.3% in 2025, its fastest pace since 2022. Growth was unusually strong in 4Q25, as households brought forward car purchases and overseas spending remained buoyant. • Private consumption is expected to continue growing in 2026, but more slowly. Preliminary figures show that growth eased to 2.2% YoY in Q1. • After contracting in April and May for the first time since late 2023, payment card turnover rebounded in June, rising by 3.4% YoY in real terms. • Consumer sentiment remains exceptionally weak. However, the big- ticket index has risen for two consecutive quarters, suggesting that bleak sentiment reflects households’ assessment of the economy as a whole rather than their own financial position, which remains relatively strong. • Household finances remain relatively strong, supported by historically high savings. Real wages rose by 3.7% in 2025 and should continue rising in 2026, albeit at a less brisk pace. • Private consumption growth of 1.9% is expected in 2026, the weakest rate over the forecast horizon, mainly because of the cooling economy and car purchases brought forward to 2025. Growth should gradually pick up thereafter as economic activity regains momentum. Highlights Consumer confidence index and card turnover Real card turnover (left) and Gallup CC index (right) Private consumption and related indicators % change YoY (left) and index value (right) 40 60 80 100 120 140 160 180 -16 -11 -6 -1 4 9 14 19 24 2021 2022 2023 2024 2025 2026 Real card turnover Consumer confidence
Page 48
30 July Íslandsbanki 2Q26 Financial Results 48 The real estate market has been impacted by high interest rates Tighter monetary policy has cooled the market with real residential house prices declining in recent quarters Capital area house prices relative to macroeconomic fundamentals Index, January 2024=100 Residential house prices and turnover % change (r. axis) and number (l. axis) Commercial property real prices in greater Reykjavík Index, 1995=100 (l.axis) and % change (r. axis) Commercial real estate market activity No. of registered purchase agreements Source: Central Bank of Iceland 90 95 100 105 110 2023 2024 2025 2026 Relative to the consumer price index Relative to the wage index Relative to the building cost index Relative to the rent index -15 0 15 30 0 500 1,000 1,500 2,000 2021 2022 2023 2024 2025 2026 No. of contracts (l.axis) YoY price change (r.axis) Real house prices (r.axis) -40 -30 -20 -10 0 10 20 30 40 50 0 50 100 150 200 250 300 350 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 YoY % change (r.axis) Real prices (l.axis) 0 50 100 150 200 250 300 2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 Retail and offices Industrial, warehouse, other
Page 49
30 July Íslandsbanki 2Q26 Financial Results 49 The Icelandic housing market is quite flexible as conditions change Supply, demand, mortgage market factors combine to make a large price correction less likely Households are not highly indebted compared to peers Household debt, % of GDP Mortgage market is flexible w.r.t. loan types with different payment burdens Outstanding mortgage loans, share of total Underlying upward demand trend steady as population growth remains robust Population forecast by Statistics Iceland Turnover in the residential housing market remains steady despite rate hikes No. of purchase agreements, capital region (left axis) and average time to sale (right axis) Source: Central Bank of Iceland, Statistics Iceland 0 20 40 60 80 100 120 140 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 CPI-indexed loans FX-linked loanc Nominal loans Overdrafts Leasing 0 20 40 60 80 100 Jan-20 Jul-20 Jan-21 Jul-21 Jan-22 Jul-22 Jan-23 Jul-23 Jan-24 Jul-24 Jan-25 Jul-25 Jan-26 Floating rate 3-5yr fixed rate CPI-indexed, floatng rate CPI indexed, 3-5yr fixed rate Other 0 2 4 6 8 10 0 1000 2000 3000 4000 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Jan-25 Jan-26 Detached/semidetached apts (l.axis) Multi-family dwellings (l.axis) Other real estate (l.axis) Avg time to sale (months), (r.axis) 300 400 500 600 700 2025 2030 2035 2040 2045 2050 2055 2060 2065 2070 Downside fcast Mild downside fcast Median fcast Mild upside fcast Upside fcast
Page 50
30 July Íslandsbanki 2Q26 Financial Results 50 -1.0 -0.5 0.0 0.5 1.0 1.5 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 2024 2025 2026 MoM CPI change (r.axis) CPI changes YoY (l.axis) Inflation remains stubbornly above target Rising uncertainty as the Persian Gulf conflict drags on Sources: Central Bank of Iceland, Statistics Iceland, ÍSB Research • Inflation remained persistent in 2025, hovering close to the 4% upper deviation threshold of the Central Bank's target, before gaining momentum in early 2026. Inflation peaked at 5.4% in March, its highest level since September 2024, driven mainly by higher fuel prices and changes in public levies. In June, inflation measured 5.2%. • Government measures announced in April, including a temporary fuel VAT cut from May to August, are expected to partially dampen near-term inflation pressures. • Inflation is expected to measure 5.2% in July, before edging higher in August, which would imply inflation exceeding the 4.7% threshold and triggering the wage agreement review clause. • Based on three simplified scenarios assuming differing Persian Gulf conflict impact, twelve-month inflation is expected to be around 4.7% in December in the baseline scenario, fall to 3.8% in a positive scenario, or rise to as high as 5.5% in a negative scenario. • Developments in the Persian Gulf will therefore be a key determinant of inflation in the months ahead. • In early 2027, inflation is predicted to fall somewhat, reaching 4.3% by May. For the remainder of next year, the outlook is for inflation to remain near the 4.2% level. Highlights Inflation and the CBI inflation target % MoM CPI change and 12m trailing inflation % 0 1 2 3 4 5 6 7 8 9 10 11 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Inflation Inflation forecast Optimistic scenario Pessimistic scenario Inflation target
Page 51
30 July Íslandsbanki 2Q26 Financial Results 51 0 2 4 6 8 10 12 2020 2021 2022 2023 2024 2025 2026 2027 2028 Inflation Effective CBI policy rate Inflation forcast Policy rate forecast Central Bank in a tight spot, likely to keep policy rates high One further policy rate hike expected in 2H26, with rate cuts to resume in 2027 Sources: Central Bank of Iceland, Statistics Iceland, ÍSB Research • After easing from autumn 2024 through end-2025, the CBI resumed tightening in March 2026, lifting the policy rate 0.5 pp YTD to 7.75%. • In May, the MPC hiked on a worsening inflation outlook and high expectations, and signalled readiness to tighten further. • We expect another rate hike in 3Q26, then an unchanged policy rate until 1Q27, followed by an easing phase into 2028 that could bring the rate to around 6.0%. • Long-term rates remain high and have edged up in 2026, with nominal 10-year base rates near 6.9% and real rates at 2.9%. • Over the forecast horizon, we see nominal rates falling to 6.0% and real rates to 2.5%, implying a breakeven inflation rate of 3.5% versus just over 4.0% today. • Actual long-term inflation expectations are likely lower than the breakeven rate, which embeds an uncertainty premium. • The equilibrium real rate now looks higher than previously assumed, in line with international trends and signalling more persistent inflation and greater economic resilience. The 2028 projections are seen as close to equilibrium. Highlights Policy rate and inflation %, Real policy rate based on 12m forward forecast Key interest rates %, average per year 0 1 2 3 4 5 6 7 8 9 10 2011 2013 2015 2017 2019 2021 2023 2025 2027 Main CBI policy rate Long term yield Long term real yield 4.1% breakeven inflation rate 3.5% breakeven inflation rate
Page 52
30 July 52 Íslandsbanki 2Q26 Financial Results 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Moody´s S&P Global Fitch AAA/Aaa AA+/Aa1 AA/Aa2 AA-/Aa3 A+/A1 A/A2 A-/A3 BBB+/Baa1 BBB/Baa2 BBB-/Baa3 BB+/Ba1 Iceland's credit rating on a secular upward path Rating companies acknowledge the flexibility of the economy and improving public debt metrics Development of sovereign credit rating Sources: S&P, Fitch, Moody‘s MOODY'S IN MARCH 2026 ‒ “The credit profile of Iceland is underpinned by its wealthy and flexible economy with favourable demographics that support its long-term growth prospects.” ‒ “The country has built significant buffers in the form of large pension assets and external reserves, which help mitigate its vulnerability to shocks due to its small size and concentration in a limited number of sectors.” ‒ “The general government debt burden, which stood at around 56% of GDP in 2025, is relatively high but the government is pursuing fiscal consolidation that is bringing debt metrics closer to peers.” FITCH IN FEBRUARY 2026 – “The upgrade reflects Iceland's strengthened public finances and projected path of declining general government debt, underpinned by a strong political commitment to fiscal prudence and a return towards balanced budgets.” – “Iceland's ratings and Stable Outlook are supported by its wealthy economy, high governance standards, strong institutions, and strong private-sector balance sheets.” – “Set against these strengths are the economy's small size and resulting vulnerability to sector-specific shocks. However, Iceland's strong financial buffers and policy prudence have enhanced its economic resilience” S&P IN MARCH 2026 – “S&P Global Ratings revised the outlook on its long-term rating on Iceland to positive from stable.” – “The positive outlook primarily reflects the potential for Iceland's budgetary performance to strengthen over the next two years, leading to a further sustained decline in net general government debt.” – “We could raise the ratings if Iceland's fiscal performance proves stronger than we currently forecast.” – “We could revise the outlook back to stable if Iceland's growth performance was weaker than we expect [or] under a scenario of weaker budgetary outturns.” S&P in Mar-17: Rating upgrade to A on lifting of capital controls; outlook stable Fitch in Dec-17: Rating upgrade to A on economic stability, reduced external vulnerability and improvement in government debt ratios, supported by robust growth Moody's in Nov-19: Upgrade to A2 on sustained sizeable debt reduction gains and improvements in economic resilience S&P in Nov-23: Rating upgrade from A to A+ on strong growth and fiscal consolidation, outlook stable Moody's in Sep-24: Rating upgrade to A1 on improving fiscal metrics and the moderating impact of tight economic policy on inflation. Fitch in Feb-26: Rating upgrade to A+ on strengthened public finances and projected path of declining general government debt.
Page 53
Disclaimer 30 July Íslandsbanki 2Q26 Financial Results This presentation is for information purposes only and shall not be construed as an offer or solicitation for the subscription or purchase or sale of any financial instrument. All information contained in this presentation should be regarded as preliminary and based on company data available. The information set out in this presentation has not been independently verified. Due to rounding, numbers presented throughout this document may not add up precisely to the totals provided and percentages may not precisely reflect the absolute figures. Due care and attention has been used in the preparation of forecast information. However, actual results may vary from their forecasts, and any variation may be materially positive or negative. Forecasts, by their very nature, are subject to uncertainty and contingencies, many of which are outside the control of Íslandsbanki. No representation or warranty is made by Íslandsbanki as to the accuracy, completeness or fairness of the information or opinions contained in this presentation. The information in this material is based on sources that Íslandsbanki believes to be reliable. Íslandsbanki can however not guarantee that all information is correct. Furthermore, information and opinions may change without notice. Íslandsbanki is under no obligation to make amendments or changes to this publication if errors are found or opinions or information change. Íslandsbanki and its management may make certain statements that constitute "forward-looking statements". These statements can be identified by the fact that they do not relate strictly to historical or current facts. Forward-looking statements often use words such as "anticipates, " "targets," "expects,” “estimates," "intends," " plans," "goals," "believes" and other similar expressions or future or conditional verbs such as "will," "should," "would" and "could". The forward-looking statements represent Íslandsbanki's current expectations, plans or forecasts of its future results and revenues and beliefs held by the company at the time of publication. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are difficult to predict and are often beyond Íslandsbanki's control. Actual outcomes and results may differ materially from those expressed in, or implied by, any of these forward-looking statements. Forward-looking statements speak only as of the date they are made and Íslandsbanki undertakes no obligation to update any forward-looking statement to reflect the impact of circumstances or events that arise after the date the forward- looking statement was made. Íslandsbanki does not assume any responsibility or liability for any reliance on any of the information contained herein and accepts no liability whatsoever for any direct or indirect loss, howsoever arising, from use of this presentation. Íslandsbanki is the owner of all works of authorship including, but not limited to, all design, text, sound recordings, images and trademarks in this material unless otherwise explicitly stated. The use of Íslandsbanki's material, works or trademarks is forbidden without written consent except were otherwise expressly stated. Furthermore, it is prohibited to publish material made or gathered by Íslandsbanki without written consent. 53
Page 54
30 July Íslandsbanki 2Q26 Financial Results 54