Slides
Page 1
Kvika banki hf. Q3 2026 Financial Results 4 November 2026
Page 2
Q3 2026 Net fee and commission income ISK 1,380 m. compared to ISK 1,571 m. in Q3 2025 Decreasing by ISK 191 m. from previous year or 12.2% Administrative expenses ISK 2,807 m. compared to ISK 2,740 m. in Q3 2025 Increasing by ISK 67 m. from previous year or 2.4% Jón Birgir Jónsson appointed CEO Jón Birgir will assume his role on 1 December 2026, succeeding Ármann Þorvaldsson, who announced earlier this year his intention to step down as CEO Profit before tax ISK 1,754 m. compared to ISK 1,969 m. in Q3 2025 Decreasing by ISK 215 m. from previous year, or 10.9% Milestone reached when Kvika began issuing covered bonds in October Will support further mortgage lending and generally strengthen the funding base Key results Medium term target Q3 2026 Return on tangible equity pre-tax 20% - 18.9% Capital Adequacy Ratio (CAR) above regulatory capital requirements 200-400 bps. management buffer ✓ 460 bps. Dividends 25% ✓ 25% of net profit deducted from CET1, additional special dividend of ISK 2.35 per share paid in Q2 Net interest income ISK 3,052 m. compared to ISK 2,953 m. in Q3 2025 Increasing by ISK 99 m. from previous year or 3.4% 2 Return on tangible equity higher than any quarter for last 2 years Pre-tax RoTE close to target following large dividend payments and capital efficiency measures
Page 3
Commercial Banking Continued loan book growth and strong deposit inflows • Continued momentum in deposits, led by strong growth in Auður, while Auður heima mortgages and Lykill equipment and vehicle financing anchor lending growth • Auður heima mortgages grew modestly in a market where nearly all new mortgage lending has been at fixed rates. Growth is expected to pick up as Auður heima begins offering fixed-rate mortgages in the coming weeks • The proposed sale of Straumur to Arion Bank was not completed, as the parties did not reach final agreement on the transaction terms • Straumur launched Kortalán, a card-based instalment financing solution offered in partnership with Kvika, during the quarter. The product has received positive initial feedback from merchants and integrates directly into the checkout process at POS, in web shops and via payment links Segment highlights
Page 4
Investment Banking Resilient lending performance despite high interest rates and challenging market conditions • The loan book remained broadly unchanged quarter-on-quarter, despite continued challenging economic conditions, particularly in the real estate sector, and higher interest rates. Growth in real estate lending was offset by a reduction in exposures to real estate development • Market conditions remained challenging in Q3 amid higher interest rates and persistent inflation. The Kvika Equity Index declined by 3%, while the Kvika Government Bond Index was broadly stable (+0.8%), with trading activity down by over a third across both markets • Corporate Finance had a softer quarter, as subdued market conditions weighed on fee generation. During the quarter, Kvika acted as financial adviser to Aptoz in its cross-border acquisition of Inter-Tec Aero Segment highlights
Page 5
Asset Management Stable performance in a challenging market • Assets under management remained broadly stable at ISK 442 bn. at the end of Q3 2026, compared with ISK 449 bn. at the end of Q2 • Efforts to broaden Kvika Asset Management’s institutional client base, particularly among smaller institutional investors, continued to gain traction during the quarter • Fundraising activities advanced across three funds during the quarter, comprising one credit fund and two private equity funds Segment highlights
Page 6
UK Sustained momentum in the UK across both lending and investment activities • Following approximately £90m of new lending during the quarter, the loan book reached an all-time high. While elevated redemptions, including some accelerated repayments, are expected to reduce the loan book during Q4, the lending pipeline remains healthy, supported by strong enquiry levels and the breadth of the business's lending offering • The sale of Kvika's largest UK principal investment completed shortly after the quarter end, delivering the significant exit anticipated in the Q2 report • Harpa has already achieved its investment target for the year, completing six private equity investments. Fundraising for the next Harpa fund is progressing well, with strong investor interest and a targeted first close in Q4 Segment highlights
Page 7
Financials
Page 8
Profitability Pre-tax return on tangible equity at a two-year high Net operating income ISK m. • Q3 2026 pre-tax profit of ISK 1,754 m., decreasing by 10.9% YoY and increasing by 13.5% from Q2 2026 • Net interest income amounted to ISK 3,052 m., up 3.4% YoY and ISK 39 m. higher than in Q2 2026 • Net fee and commission income decreased by 12.2% YoY to ISK 1,380 m. • Other net operating income increased by ISK 28 m. YoY • Net operating income amounted to ISK 4,798 m., decreasing 1.3% YoY • Administrative expenses amounted to ISK 2,807 m., a 2.4% increase YoY and 4.8% lower than in Q2 2026 Profit before tax from continuing operations RoTE Q3 2025 to Q3 2026 / ISK m. (%) Note that single-digit figures may be omitted from certain graphs to improve readability. 17.8% Q3 2025 13.2% Q4 2025 15.7% Q1 2026 15.1% Q2 2026 18.9% Q3 2026 642 366338 Q3 2025 Q4 2025 135 Q1 2026 327 Q2 2026 Q3 2026 4,862 4,972 4,887 4,756 4,798 2,953 1,571 3,065 1,265 3,266 1,486 3,013 1,416 3,052 1,380 8 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 1,969 1,522 1,809 1,545 1,754 Net interest income Net fee and commission income Other net operating income
Page 9
Net Interest Income Lending momentum countered by strong deposit growth Net interest income development (NII) ISK m. • Net interest income increased by 3.4% from Q3 2025 to Q3 2026, as higher interest income from customer lending more than offset higher costs of customer deposits and a lower contribution from the treasury and liquidity portfolio • YoY decrease in the treasury and liquidity portfolio partly reflects the normalisation of a high liquidity position following significant dividend payments to shareholders, reducing net interest income by approximately ISK 200 m. • Net interest margin was 4.0% in the quarter, unchanged between quarters • Funding structure optimisation has continued in Q4 with repayment of expensive maturities and other legacy funding which is expected to support both net interest income and net interest margin going forward Net interest income Net interest margin development Q3 2025 to Q3 2026 / ISK m. (%) / net interest income divided by total average interest-bearing assets Treasury and liquidity portfolio includes interest income and expense from cash and balances with central bank, loans to credit institutions and fixed income securities. Funding includes interest income and expense from borrowings, issued bonds and subordinated liabilities. Other includes other interest income and expense as well as derivatives. Q3 2025 Loans to customers Deposits Treasury and liquidity portfolio Funding Other Q3 2026 (528) (353) (28) (148) 2,953 1,156 3,052 4.0% Q3 2025 4.3% Q4 2025 4.5% Q1 2026 4.0% Q2 2026 4.0% Q3 2026 1,294 756 630 281 Q3 2025 1,341 822 635 273 Q4 2025 1,322 808 602 541 Q1 2026 1,290 778 552 402 Q2 2026 1,294 725 654 383 Q3 2026 2,953 3,065 3,266 3,013 3,052 Commercial Banking Investment Banking Asset Management UK Treasury Supporting units 9
Page 10
Net Fee and Commission Income Fee income remains subdued but resilient through summer months Net fee and commission income development Net fee and commission income Net fee and commission income Q3 2025 to Q3 2026 / ISK m. ISK m. 11 4 Q3 2025 Asset man. Capital markets and corp. finance Cards and payments Loans and guarantees Other Expense Q3 2026 (88) (49) (53) (14) 1,571 1,380 541 434 591 567 551 323 267 300 260 234 570 510 555 544 521 196 (141) Q3 2025 194 (177) Q4 2025 160 (159) Q1 2026 177 (162) Q2 2026 200 (155) Q3 2026 1,571 1,265 1,486 1,416 1,380 Asset Management Capital markets and corporate finance Cards and payments Loans and guarantees Other Expense 424 416 594 97 Q3 2025 378 248 434 174 Q4 2025 348 342 581 165 Q1 2026 384 371 560 141 Q2 2026 414 221 551 160 Q3 2026 1,571 1,265 1,486 1,416 1,380 Commercial Banking Investment Banking Asset Management UK Treasury Supporting units • Net fee and commission income remains subdued and amounted to ISK 1,380 m. in Q3 2026, decreasing by 12.2% YoY • Decrease in fee income from Q2 is mainly driven by investment banking as activity in capital markets remained challenging • Fee income remains resilient in a challenging domestic market, although performance in Q3 was below expectations 10 ISK m.
Page 11
Other Net Operating Income Driven by net financial income in the UK Other net operating income development ISK m. Other net operating income Other net operating income Q3 2025 to Q3 2026 / ISK m. Composition / ISK m. 305 481 84 235 257 109 146 8233 Q3 2025 Q4 2025 51 Q1 2026 Q2 2026 Q3 2026 338 642 135 327 366 Net financial income Profit from associates Other operating income 338 36676 Q3 2025 Net financial income Profit from associates Other operating income Q3 2026 (48) 0 86 253 355 112 165 109 180 237 (84) 27 Q3 2025 41 68 Q4 2025 29(62) Q1 2026 60 63 (24) Q2 2026 57 (36) Q3 2026 338 642 135 327 366 Commercial Banking Investment Banking Asset Management UK Treasury Supporting units • Other net operating income increased to ISK 366 m. in Q3 2026 from ISK 338 m. in Q3 2025 • Financial income in the UK segment was driven by a revaluation of Kvika's largest UK principal investment, due to certainty of a successful exit in Q4 11
Page 12
Operating Expenses Underlying costs continue trending lower Administrative expenses ISK m. Employee development Cost to core income Full time employees at the end of each period (%) Core income is defined as net operating income excluding net financial income 239 890 1,573 Q3 2025 241 1,019 1,960 Q4 2025 246 913 1,817 Q1 2026 242 782 1,877 Q2 2026 2,740 3,263 3,014 2,947 Q3 2026 2,807 239 1,688 825 60.1% Q3 2025 72.6% Q4 2025 62.8% Q1 2026 65.2% Q2 2026 Q3 2026 61.8% 246 250 248 232 234 Q3 2025 Q4 2025 Q1 2026 Q2 2026 Q3 2026 Depr. of right of use asset Depreciation and amortisation Other operating expenses Salaries and related exp. • Administrative expenses amounted to ISK 2,807 m. in Q3 2026, increasing by 2.4% YoY and decreasing by 4.8% from Q2 2026 • The underlying cost base continues to trend downwards, reflecting ongoing efficiency initiatives and disciplined cost management • Employee count was 234 at the end of Q3 2026, compared with 232 at the end of Q2 2026 and 246 a year earlier 12
Page 13
Balance Sheet Loan book growth drives larger balance sheet, while liquidity remains strong Assets ISK bn. Liabilities and equity (%) 9.0 9.7 30.9.2025 21.111.0 8.220.1 31.12.2025 21.015.8 5.3 31.3.2026 20.315.1 7.4 30.6.2026 20.111.2 7.0 21.2 352.7 343.1 359.8 375.7 370.0 195.7 84.7 32.5 207.6 75.1 216.9 72.3 28.5 223.3 73.7 35.9 235.0 66.6 30.2 30.9.2026 • Total assets amounted to ISK 370 bn. at the end of Q3 2026, increasing by 7.8% from year-end 2025 • The balance sheet mix continues to shift towards customer lending, with loans to customers representing 63.5% of total assets at quarter-end • Liquidity position remains strong despite ongoing deployment into the loan book • Deposits amounted to ISK 200.4 bn., up 16.0% from year-end 2025, continuing to represent the Group's primary funding source • The bank maintains a modest positive CPI imbalance of ISK 4.5 bn., partly related to market-making activities 13 Intangible assets Other assets Loans to customers Financial Instruments Loans to credit institutions Cash and balances with Central Bank 6.2 6.0 30.9.2025 15.56.8 5.8 31.12.2025 17.27.4 6.1 31.3.2026 15.35.5 10.1 30.6.2026 13.25.0 10.0 30.9.2026 12.7 343.1 359.8 375.7 370.0 81.9 178.4 67.5 73.2 172.8 68.9 72.7 189.7 66.7 86.1 201.2 57.5 83.3 200.4 58.1 352.7 Other Borrowings Debt issuance Deposits Subordinated liabilities Equity
Page 14
Loans to Customers Solid growth across all lending categories CB: Commercial Banking segment, IB: Investment Banking segment, UK: UK segment Loans to customers by type ISK bn. Loans to customers ISK bn. Loan to value distribution ISK bn. 7.3 56.3 40.4 70.8 30.9.2025 23.2 8.0 56.7 42.6 76.9 31.12.2025 26.2 7.8 57.3 44.8 80.8 31.3.2026 20.8 7.6 60.1 45.9 82.8 30.6.2026 195.7 207.6 216.9 223.3 30.9.2026 235.0 85.5 27.7 8.2 61.2 52.3 27.0 CB: Mortgages CB: Unsecured loans CB: Vehicles and equipment UK: UK lending IB: Corporate banking • Loans to customers amounted to ISK 235.0 bn., increasing by 13.2% from year-end 2025, reflecting continued growth across the lending portfolio • Growth was broad-based across all lending categories, led by UK lending and domestic corporate banking • The LTV profile remains strong, with 64.4% of the portfolio below 70% LTV, supporting a resilient risk profile and strong collateral coverage • The loan portfolio continues to demonstrate resilience despite persistent macroeconomic challenges. Credit quality remains broadly unchanged, with construction and real estate exposures performing in line with expectations and collateral coverage remaining strong 60.3 135.4 30.9.2025 64.1 143.5 31.12.2025 64.6 152.3 31.3.2026 66.1 157.2 30.6.2026 195.7 207.6 216.9 223.3 30.9.2026 235.0 167.0 67.9 Individual Corporate Less than 50% 50-70% 70-90% 90-100% >100% No collateral 31.9% 29.6% 33.9% 34.8% 21.5% 25.4% 3.2% 1.7% 4.1% 2.9% 5.4% 5.5% 31.12.2025 30.9.2026 14
Page 15
Credit Quality Underlying credit quality remains strong Loans to customers risk stage allocation Net loan book / (%) ISK bn. 2.6% 30.9.2025 2.9% 31.12.2025 2.0% 4.0% 31.3.2026 1.9% 3.5% 30.6.2026 1.3% 3.4% 4.3% 30.9.2026 7.2% 88.6% 5.9% 89.3% 4.9% 89.1% 5.6% 88.9% 91.0% Stage 1 Stage 2 Stage 3 FVTPL 1.1% 1.7 0.2 0.3 30.9.2025 1.1% 1.7 0.2 0.4 31.12.2025 1.1% 1.8 0.2 0.3 31.3.2026 1.2% 1.9 0.3 0.4 30.6.2026 1.1% 1.9 0.3 0.5 30.9.2026 2.2 2.3 2.4 2.6 2.7 Stage 1 Stage 2 Stage 3 % of gross loan book Impairment loss allowance • Credit quality remains strong, with no signs of broader deterioration despite a prolonged period of elevated interest rates and inflation • Stage 3 exposures remain slightly elevated, primarily driven by a single well collateralised UK exposure, which does not reflect a broader deterioration in portfolio quality • Overall impairment levels remain low and stable at 1.1% of the gross loan book • Stage 3 loans remain well-collateralised, with an average loan-to-value of 59.6%, supporting the overall low credit risk profile 15
Page 16
Deposits Deposits remain a key funding base Maturity of deposits (%) Loans to deposits ISK bn. Deposits by type 7.9 9.3 29.4 3.0 30.9.2025 122.7 9.0 9.0 29.7 2.3 31.12.2025 125.0 8.8 10.8 40.3 2.0 31.3.2026 133.2125.7 12.5 10.4 33.8 1.8 30.6.2026 136.7 9.7 10.4 1.1 41.0 1.5 30.9.2026 178.4 172.8 189.7 201.2 200.4 9.5 Individuals SMEs Large corporates Public entities Financial entities Other (%) 79% 80% 80% 83% 83% 21% 20% 20% 17% 17% 30.9.2025 31.12.2025 31.3.2026 30.6.2026 30.9.2026 0-30 days Over 30 days 109.7% 30.9.2025 120.1% 31.12.2025 114.4% 31.3.2026 111.0% 30.6.2026 117.2% 30.9.2026 • Deposits amounted to ISK 200.4 bn. at the end of Q3 2026, increasing by 16.0% from year-end 2025 and 12.3% YoY • Deposit growth from year-end 2025 was driven primarily by retail deposits and financial entities • Loan-to-deposit ratio increased to 117.2% from 111.0% at the end of Q2 2026, as loan growth outpaced deposits during the quarter • Retail deposits continue to provide a stable core funding base, while the overall deposit mix remains diversified 16
Page 17
Debt Issuance Steady funding profile supported by international market access Development of market funding MREL requirements ISK bn. Maturity of issuance Rating 30.9.2026 / ISK bn. Rating 81.9 73.2 72.7 86.1 83.3 10.1 10.01.2 5.06.0 30.9.2025 1.5 5.35.8 31.12.2025 2.3 5.16.1 31.3.2026 0.3 5.2 30.6.2026 0.1 5.0 30.9.2026 94.1 85.8 86.2 101.7 98.4 Bank deposit rating Issuer rating Long term Baa1 Baa2 Short term P-2 P-2 Outlook Stable Stable Last update 27 April 2026 27 April 2026 2026 12.4 5.1 2028 27.8 24.5 9.1 +2030 6.1 7.5 17.5 27.8 33.6 30.9.2026 6.4% 21.9% Requirement Available 28.3% 56.0% MREL-RWEA: Percentage of risk- weighted exposure amount Requirement Available 6.0% 31.9% MREL-TEM: Percentage of total exposure measure Total own funds and eligible liabilities MREL requirement Combined buffer requirement 2027 2029 Other borrowings Secured borrowings Subordinated bonds Senior unsec. bonds FX ISK • Market funding decreased minimally in Q3 due to bond maturities. • In October, Kvika issued its inaugural covered bonds under the programme and became the fourth covered bond issuer in the Icelandic market. The issuance was well received, with the offering approximately 1.7 times oversubscribed, and the ISK 6.4 bn. series carries a fixed annual coupon of 7.74% • The covered bonds are secured against the Bank's mortgage portfolio and the programme supports the continued growth of mortgage lending under the Auður brand while adding a durable new source of long-term funding in Icelandic króna. • In October, the bank repaid its remaining secured borrowings, a lending facility held with a UK bank. The refinancing will support lower lending cost going forward 17
Page 18
Liquidity and Funding Ratios Strong liquidity position returning to normal levels High-quality liquid assets (HQLA) 30.9.2026 / (%) Total liquidity coverage ratio (LCR) Net stable funding ratio (NSFR) 30.9.2026 / (%) 30.9.2026 / (%) Available stable funding 30.9.2026 / (%) 30.6% 8.4% 56.4% 0.3% Central bank reserves Central bank assets Government assets Public sector assets Regional government assets Covered bonds 23% 46% 25% 2% 2% 2% Capital Retail deposits Corporate deposits Financial deposits Debt Issuance Other facilities -50 0 50 100 150 200 0 50 100 150 100% 30.9.2025 100% 31.12.2025 100% 31.3.2026 100% 30.6.2026 100% 30.9.2026 148% 137% 133% 137% 134% Regulatory minimum -1.000 0 1.000 2.000 3.000 4.000 5.000 6.000 7.000 100% 30.9.2025 100% 31.12.2025 100% 31.3.2026 100% 30.6.2026 100% 30.9.2026 659% 404% 291% 276% 174% Regulatory minimum • The liquidity coverage ratio (LCR) remains strong at 174%, well above the 100% regulatory requirement • The decrease in the liquidity coverage ratio was primarily attributable to changes in the composition of the depositor base and the composition of liquid assets • NSFR stood at 134%, reflecting a stable and well-diversified funding base. • High-quality liquid assets (HQLA) amounted to ISK 59.9 bn., of which 95% were classified as Level 1 assets • Strong liquidity and funding metrics continue to support balance sheet resilience and future growth 18
Page 19
Capital Position Strong capital position well above regulatory requirements Risk-weighted exposure amount (RWEA) CET1 ISK bn. (%) 22.1% 22.1% 23.5% 22.8% 23.9% 19.4% 19.4% 20.6% 19.9% 21.0% 180.1 9.6 28.1 30.9.2025 158.0 8.3 20.5 31.12.2025 163.7 8.5 20.5 31.3.2026 173.8 7.4 20.5 30.6.2026 175.2 7.1 20.5 30.9.2026 217.7 186.8 192.7 201.7 202.8 RWEA / Total assets Credit risk Market risk Operational risk 30.9.2025 31.12.2025 31.3.2026 30.6.2026 30.9.2026 23.0% 26.8% 26.7% 23.0% 22.3% CAR CAR requirement 17.9% 17.9% 17.9% 17.9% 17.7% 61.8% 54.5% 53.6% 53.7% 54.8% CAR 22.8% 23.9% (%) 30.9.2025 31.12.2025 31.3.2026 30.6.2026 30.9.2026 20.4% 23.9% 23.8% 18.3% 17.7% CET1 CET1 requirement 12.9% 12.9% 12.9% 12.9% 12.8% • CAR of 22.3%, including unaudited earnings, comfortably above Kvika’s management target • In July, a share buyback programme of ISK 2 bn. was approved. At the end of the third quarter, total share repurchases under the programme amounted to ISK 693 m. The full amount of the authorised buyback programme has been deducted from the Bank’s regulatory capital. • The bank continues to target a management buffer of 2% to 4% over current and anticipated CAR requirements 19
Page 20
Commercial Banking Update Halldór Snæland Managing Director of Commercial Banking
Page 21
Commercial Banking at a glance Our brands and subsidiaries, serving c. 102,000 customers B R A N D S O F K V I K A Banking services Digital savings and mortgages Payments app, cards and loans Vehicle and equipment financing Buy now, pay later S U B S I D I A R I E S Card acquiring and payments Collection services Kvika banki hf. · Commercial Banking Over 102 thousand Revenue-generating customers, last twelve months Last twelve months. Customer count is unique across brands. 21
Page 22
Continuous product development Built on shared infrastructures, enabling fast launches at low cost Launched Upcoming Timing of upcoming launches is indicative and subject to change. TODAY Corporate accounts Company deposits on Auður’s platform Q4 2024 Auður heima Mortgages on Auður’s digital platform Q2 2025 Goal-based savings Saving with a clear goal in the app Q3 2026 Straumur card instalments Spread purchases over time on the credit card Q4 2026 Fixed rate mortgages Non-indexed mortgages with a three- year fixed rate Q4 2026 Investment funds Buy and sell funds through Auður Q1 2027 22
Page 23
Strong and consistent balance sheet growth Delivering on 2024 Capital Markets Day targets Broad-based growth across Commercial Banking leaves all lending categories on track towards their 2027 targets, supporting the Group loan book target of ISK 280-300bn. 23 Loan book on track for 2027 targets ISK bn (% of total loan book) 54 62,6 60-75 9M 2024 (CMD) Q3 2026 2027 target range Vehicle & equipment Consumer lending Mortgages 7 8,7 9-15 2 26,3 30-45 37,0% 26,6% 5,0% 3,7% 1,0% 11,2% 20–25% 3–5% 10–15% Target: 20–25% of loan book Target: 3-5% of loan book Target: 10-15% of loan book Deposits ISK bn. Loans ISK bn. Consistent deposit growth, with Auður representing about 80% of the deposit base, providing stable, cost-efficient funding for the Group Lykill continues to deliver stable growth, complemented by Auður heima mortgages, which have emerged as a new pillar of the Commercial Banking loan book 65.6 47.2 YE22 97.2 43.1 YE23 117.1 45.2 YE24 122.7 41.1 YE25 125.8 39.5 1Q26 135.8 41.0 2Q26 141.2 37.0 3Q26 112.8 140.3 162.3 163.9 165.2 176.8 178.1 +13.0% p.a. YE22 YE23 YE24 68.8 21.5 YE25 69.1 24.9 1Q26 70.8 25.5 2Q26 72.8 26.3 3Q26 54.7 62.5 65.5 90.3 94.0 96.3 99.1 +17.2% p.a. Auður heima Other lendingAuður Other deposits
Page 24
Stable and growing earnings Recurring interest income and lending fees provide a predictable revenue base Profit before tax ISK m., quarterly 9M 2023 9M 2024 9M 2025 9M 2026 4,432 4,979 5,012 5,227 Net operating income ISK m, quarterly 9M 2023 9M 2024 9M 2025 9M 2026 1,307 1,677 1,598 1,738 Predictable revenue base More than 85% of net operating income comes from net interest income and lending fees, so revenue is driven primarily by the size of the loan book. Growing earnings Net operating income of ISK 5.2 bn. in the first nine months, up 4% year-on-year. Profit before tax of ISK 688 m. in Q3 2026, the strongest quarter in the period. Strong returns Profit before tax of ISK 1.7 bn. in the first 9 months up 8.7% year-on-year. And a return on tangible equity of 20.4%. 24
Page 25
A scalable platform with a flat cost base V olumes and income have grown while operating expenses have been held broadly flat since 2022 Operating expenses ISK m., quarterly Average of about ISK 1.070 m. per quarter Operating expenses include direct costs and allocated shared costs. Q3 24 Q4 24 Q1 25 Q2 25 Q3 25 Q4 25 Q1 26 Q2 26 Q3 26 921 Q1 23 1,021 1,153 1,067 1,034 920 1,202 1,136 1,076 1,011 1,211 1,129 1,127 1,001 Q2 23 Q3 23 Q4 23 Q1 24 Q2 24 1,037 -1.9% 9M 2023 9M 2024 9M 2025 9M 2026 67% 61% 64% 62% Cost-to-core income ratio %, operating expenses / core income Built on existing infrastructure New products such as Auður deposits and Auður heima mortgages run on existing core banking and lending systems, operations, risk management and compliance. Operating leverage Fixed costs are spread over growing volumes, allowing the division to serve more customers and generate higher income without a corresponding increase in cost. Lower real cost base With nominal costs flat through a period of high inflation, the cost base has declined materially in real terms. LOAN BOOK +81% YE22 to Q3 2026 OPERATING EXPENSES +9.3% 9m 2023 to 9m 2026, in nominal terms 25
Page 26
Auður heima offers fixed-rate mortgages Non-indexed mortgages with a three-year fixed rate, supported by covered bond funding N E W Auður heima Fixed-rate mortgage 1 Meets customer demand Fixed rates now account for around nine in ten new mortgages. 2 3-year fixed rate Predictable payments for households 3 Existing platform Same lending engine, credit assessment and digital channels Non-indexed lending in Iceland is moving to fixed rates Fixed-rate share of new non-indexed lending, %, quarterly Source: Central Bank of Iceland (Hagvísar), share of new household mortgage lending. 47% of all new mortgage lending in Q3 2026 was non-indexed at a fixed rate, the segment Auður heima now serves 90% of new non-indexed mortgages in Q3 2026 were at fixed rate 10% 20% 30% 40% 50% 60% 70% 80% 100% 90% 0% 2023 Q2 Q3 Q4 2024 Q2 Q3 Q4 2025 Q2 Q3 Q4 2026 Q2 Q3 % Non-indexed, fixed % Non-indexed, variable COVE RE D BONDS KVIKA CB 32 First auction in the series, 13 October 2026 ISK 10.1bn. Total bids 1.7x Bid-to-cover ISK 5.9bn. Bids accepted 7.74% Yield and annual coupon 26
Page 27
Appendix
Page 28
Income Statement Q3 2026 Revenue Composition ISK m. • Q3 2026 pre-tax profit of ISK 1,754 m., decreasing by 10.9% YoY and increasing by 13.5% from Q2 2026 • Net interest income amounted to ISK 3,052 m., up 3.4% YoY and ISK 39 m. higher than in Q2 2026 • Net fee and commission income decreased by 12.2% YoY to ISK 1,380 m. • Other net operating income increased by ISK 28 m. YoY • Net operating income amounted to ISK 4,798 m., decreasing 1.3% YoY • Administrative expenses amounted to ISK 2,807 m., a 2.4% increase YoY and 4.8% lower than in Q2 2026 • Net impairment of ISK 238 m., compared to ISK 153 m. in Q3 2025 Income Statement ISK m. Q3 2026 Q3 2025 Diff. Q2 2026 Diff. Net interest income 3,052 2,953 99 3,013 39 Net fees and commissions 1,380 1,571 (191) 1,416 (36) Other net operating income 366 338 28 327 39 Net operating income 4,798 4,862 (64) 4,756 42 Administrative expenses (2,807) (2,740) (67) (2,947) 140 Net impairment (238) (153) (85) (269) 31 Revaluation of contingent consideration - - - 1 (1) Revaluation of investment properties - - - 4 (4) Pre-tax profit 1,754 1,969 (215) 1,545 209 Income tax (268) (351) 83 (340) 72 Special bank taxes (144) (145) 1 (302) 158 After-tax profit 1,342 1,472 (130) 903 439 Profit after tax from discontinued operations - - - - - Profit for the period 1,342 1,472 (130) 903 439 366 338 4,798 4,862 1,3803,052 1,5712,953 Q3 2026 Q3 2025 28
Page 29
Income Statement 9M 2026 Revenue Composition ISK m. • 9M pre-tax profit from continuing operations of ISK 5,108 m., increasing by 8.8% YoY • Net interest income increased by 5.7% YoY to ISK 9,331 m. • Net fee and commission income decreased by 14.8% YoY to ISK 4,282 m. • Other net operating income increased by ISK 247 m. YoY • Net operating income amounted to ISK 14,441 m., in line with 9M 2025 • Administrative expenses amounted to ISK 8,767 m., a 0.5% decrease YoY • Profit for the period of ISK 3,619 m., compared to ISK 4,998 m. in 9M 2025, which included ISK 1,901 m. from discontinued operations Income Statement ISK m. 9M 2026 9M 2025 Diff. Net interest income 9,331 8,831 500 Net fees and commissions 4,282 5,026 (744) Other net operating income 828 581 247 Net operating income 14,441 14,439 2 Administrative expenses (8,767) (8,811) 44 Net impairment (601) (340) (261) Revaluation of contingent consideration 1 (593) 594 Revaluation of investment properties 34 - 34 Pre-tax profit 5,108 4,695 413 Income tax (955) (1,213) 258 Special bank taxes (533) (385) (148) After-tax profit 3,619 3,097 522 Profit after tax from discontinued operations - 1,901 (1,901) Profit for the period 3,619 4,998 (1,379) 828 581 14,441 14,439 4,2829,331 5,0268,831 9M 2026 9M 2025 29
Page 30
Disclaimer This presentation and the information contained therein has been prepared by Kvika banki hf. on a best knowledge basis. Any statements or assumptions are set forth by Kvika alone and not by any third party. Forward looking statements may deviate from what is presented in this presentation, e.g. due to market conditions or other factors. Kvika does not guarantee the accuracy or completeness of the information set forth in this presentation, whether it comes from Kvika or a third party. This presentation shall not in any way be viewed as a recommendation or solicitation to buy, hold or sell any security or to take any investment decision. The recipient is solely responsible for any investment decision taken based on the information in this presentation. Kvika does not assume any liability whatsoever for any direct or consequential loss or damage arising from any use of this presentation or its contents. Kvika is not obliged to make amendments or changes to this publication or to submit further information, should errors be discovered or opinions or information change. Copyright of this presentation and its contents is the property of Kvika. 30