Kvika banki (KVIKA) investor relations material

Executive summary

• Q3 2026 pre-tax profit was ISK 1,754m, down 10.9% YoY but up 13.5% QoQ; annualised pre-tax ROTE was 18.9%, versus 17.8% a year earlier.

• 9M continuing-operations pre-tax profit rose 8.8% YoY to ISK 5,108m; continuing-operations profit after tax was ISK 3,619m.

• Total 9M profit was ISK 4,998m, including ISK 1,901m from discontinued operations; basic EPS was ISK 0.84 versus ISK 1.11.

Financial highlights

• Q3 net operating income was ISK 4,798m, down 1.3% YoY; net interest income rose 3.4% to ISK 3,052m, while net fees and commissions fell 12.2% to ISK 1,380m.

• Q3 after-tax profit was ISK 1,342m versus ISK 1,472m a year earlier; net impairment was ISK 238m versus ISK 153m.

• 9M net operating income was ISK 14,441m, essentially flat YoY; net interest income rose to ISK 9,331m from ISK 8,831m, while net fee income fell to ISK 4,282m from ISK 5,026m.

• 9M administrative expenses were ISK 8,767m versus ISK 8,811m; net impairment charges rose to ISK 601m from ISK 340m.

• Total assets reached ISK 370.0bn at September-end, up 7.8% from year-end 2025.

Outlook and guidance

• Medium-term pre-tax ROTE target is 20%; Q3 pre-tax ROTE was 18.9%.

• Commercial Banking lending categories are on track toward 2027 targets; the overall loan book target is ISK 280–300bn.

• Fixed-rate Auður heima mortgages were planned for launch in Q4 2026, with lending growth expected to pick up as the product begins offering them.

• Q4 UK redemptions, including accelerated repayments, are expected to reduce the loan book despite a healthy lending pipeline; repayment of expensive maturities and legacy funding is expected to lower funding costs.

• New funding transactions diversified the funding base and extended maturities; the ISK 2.0bn buyback programme was expected to conclude in Q4 2026.