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===== SIDA 1 =====

Consolidated Financial 
Statements 
31 December 2024

===== SIDA 2 =====

Consolidated Financial Statements 
31 December 2024
Kvika banki hf.  Katrínartún 2  105 Reykjavík  Iceland  Reg. no. 540502‐2930

===== SIDA 3 =====

Kvika banki hf.
Table of Contents
Page
1
2
7
10
11
12
13
15
16
17
19
21
26
37
55
59
63
Appendix ‐ unaudited
78
84
Independent Auditor's Report ..........................................................................................................................................
Notes to the Consolidated Financial Statements .............................................................................................................
Consolidated Income Statement ......................................................................................................................................
Endorsement and Statement by the Board of Directors and the CEO .............................................................................
Kvika highlights .................................................................................................................................................................
Consolidated Statement of Comprehensive Income  .......................................................................................................
Consolidated Statement of Financial Position ..................................................................................................................
Consolidated Statement of Changes in Equity .................................................................................................................
EU
 Taxonomy Regulation ..................................................................................................................................................
Statement on the Corporate Governance of Kvika banki hf. 2024 ...................................................................................
 ‐ General information ......................................................................................................................................................
Consolidated Statement of Cash Flows ............................................................................................................................
 ‐ Significant accounting policies .......................................................................................................................................
 ‐ Risk management ..........................................................................................................................................................
 ‐ Financial assets and financial liabilities .........................................................................................................................
 ‐ Income statement ..........................................................................................................................................................
 ‐ Statement of Financial Position .....................................................................................................................................
 ‐ Other information ..........................................................................................................................................................
 ‐ Segment information .....................................................................................................................................................
 Consolidated Financial Statements 31 December 2024

===== SIDA 4 =====

Kvika highlights
31.12.2024
Kvika
Kvika is a specialized financial institution strategically 
positioned to increase competition and transform 
financial services in Iceland. Kvika provides businesses, 
investors, and individuals with investment banking, 
asset management, payment, and banking services. The 
Bank is listed on Nasdaq Iceland. 
Kvika operates in four business segments, Commercial 
banking and Investment Banking as well as Asset 
Management and UK operations through subsidiaries 
Kvika Asset Management and Kvika Securities Ltd. 
Kvika’s insurance segment, operated through the 
subsidiary TM tryggingar hf., is currently in a 
divestment process. 
Kvika operates several brands that are highly focused 
and excel in their field. The main brands are Kvika, Kvika 
Asset Management, Auður, Aur, Lykill, Netgíró, and 
Straumur, as well as Ortus Secured Finance in the UK.
Diversified operations
Revenues by segment / 12M 2024
Key figures
ISK m. 12M 2024 12M 2023
Net operating income 17,184 14,852
Profit before taxes,continuing
operations
5,817 3,009
RoTE, continuing operations 18.8% 10.2%
31.12.2024 31.12.2023
Total Assets 354,594 335,397
Loans to customers 150,203 136,323
Deposits* 163,377 142,516
LCR 360% 247%
NSFR 144% 141%
Group Solvency 1.33 1.25
Corporate Governance 
 Reitun ESG score
 Stable
Q4 23 Q1 24 Q2 24 Q3 24 Q4 24
4.0 4.1 4.0
4.5 4.7
Net operating income
ISK bn.
Loans to customers
ISK bn.
Total capital ratio
(%)
LCR ratio
(%)
0
20
40
60
80
100
120
140
160
180
200
220
240
0
20
40
60
80
100
120
140
160
96.0%
Q4 23
92.0%
Q1 24
91.0%
Q2 24
89.0%
Q3 24
92.0%
Q4 24
136 146 147 146 150
Loans to deposits*
0
5
10
15
20
25
30
35
40
45
50
0
5
10
15
20
25
19.6%
Q4 23
19.0%
Q1 24
19.4%
Q2 24
20.6%
Q3 24
19.9%
Q4 24
22.6% 21.7% 22.1% 23.5% 22.8%
CET1
-100
0
100
200
300
400
500
600
700
800
900
0
100
200
300
400
500
600
700
800
141%
Q4 23
137%
Q1 24
142%
Q2 24
148%
Q3 24
144%
Q4 24
247% 286%
475%
780%
360%
NSFR
15.1%
34.3%33.6%
17.0%
Commercial Banking
Investment Banking
Asset Management
UK
*Money market deposits were previously presented as part of borrowings but are now presented as part of deposits. Comparative figures have been restated.
Reference is made to note 2 in Kvika’s Consolidated Financial Statements dated 31.12.2024 for further information

===== SIDA 5 =====

Kvika banki hf.
Endorsement and Statement
by the Board of Directors and the CEO
About the Bank
Operations during the year 2024
Financial position
 Status of the TM sales process
Operational outlook
These are the Consolidated Financial Statements of Kvika banki hf. ("Kvika" or the "Bank") and its subsidiaries (together the "Group") for the year 2024. 
Kvika operates as well as a house of brands that are highly focused and excel in their field. The main brands are Kvika, Kvika Asset Management, Auður,
Aur, Lykill, Netgíró, and Straumur, as well as Ortus Secured Finance in the UK. 
Kvika is a specialized financial institution strategically positioned to increase competition and transform financial services in Iceland. Opera ting without
a branch network, Kvika provides businesses, investors, and individuals with investment banking, insurance, asset management, payment, and banki ng
services. The Bank is listed on the main list of Nasdaq OMX Iceland. 
Kvika operates in four business segments, two which are operated under the Kvika Bank brand, Commercial Banking and Investment Banking, and two
in own‐brand subsidiaries, Kvika Asset Management and Kvika Securities Ltd., the Group's operations in the UK. The insurance segment, operated
through the subsidiary TM tryggingar hf. ("TM") has been sold to Landsbankinn hf. This transaction is currently pending approval from the Icelandic
Competition Authority.   
Profit before taxes from continuing operations for the fourth quarter amounted to ISK 1,601 million (Q4 2023: ISK 363 m illion) and for the year it
amounted to ISK 5,817 million ( 2023: ISK 3,009 m illion). Pre‐tax annualised return on weighted tangible equity (RoTE) from continuing operations was
18.5% for the quarter and 18.8% for the full year compared to 10.2% in 2023, based on the tangible equity position of Kvika, net of TM, at the beginning
of the year adjusted for changes in share capital and transactions with treasury shares during the year. Profit after taxes, including discontinued
operations, for the fourth quarter amounted to ISK 3,447 million (Q4 2023: ISK 1,578 million) and for the year it amounted to ISK 8,150 million ( 2023: ISK
4,034 million).
According to the Consolidated Statement of Financial Position, equity at the end of the year amounted to ISK 89,517 million (31.12. 2023: ISK 81,958
million), and total assets amounted to ISK 354,594 million (31.12.2023: ISK 335,397 million).
The Group's statement of financial position grew by ISK 19 billion or 5.7% during the year 2024. Loans to customers grew by ISK 14.0 b illion or 10.3%
during the year. Liquid assets amounted to ISK 105.7 b illion at end of December 2024, which is equal to 28.9% of total assets and 70.3% of loans to
customers.
On 30 May 2024 the Bank announced that it had signed a purchase agreement with Landsbankinn hf., in which Landsbankinn hf. purchased 100% of the
share capital in TM. On 17 March 2024, the Bank announced that it had received binding offers for the purchase of the share capital of TM. Due
diligence review has been completed, and the purchase agreement has been signed with standard conditions of approval from The Financial
Supervisory Authority of the Central Bank of Iceland and the Icelandic Competition Authority ("ICA"). On 26 September 2024, the Financial Superviso ry
Authority of the Central Bank of Iceland has published the results of its assessment, finding that Landsbankinn is eligible to control a qualifying ho lding
in TM. The ICA has yet to conclude its review of the transaction. The purchase price according to the purchase agreement is ISK 28.6 billion and
Landsbankinn hf. will pay for the share capital in cash. The purchase price is based on TM's balance sheet at the end of 2023. The final purchase price
will be adjusted for changes in TM's tangible equity from the beginning of the year 2024 to the completion date, and the amount of the change will be
added to or subtracted from the price according to the
 purchase agreement.
The outlook for Kvika in 2025 is positive, underpinned by Kvika's multiple operating segments across its key markets in Iceland and the UK, which
provide a diversified source of income. Kvika aims to build on its success in 2024, having already achieved revenue growth driven by loan book
expansion, improved interest margins and a recovery in fees and commissions, while managing costs.
The Group's net operating income during the year was ISK 17,184 million ( 2023: ISK 14,852 million). Net interest income amounted to ISK 9,681 million
(2023: ISK 8,021 million). Net fee income amounted to ISK 6,137 million ( 2023: ISK 5,916 million). Other operating income amounted to ISK 1,367 million
(2023: ISK 915 m illion). Administrative expenses during the period amounted to ISK 10,608 million ( 2023: ISK 10,785 m illion). During the period, the
Group had a net impairment charge of ISK 605 million (2023: ISK 1,027 million).
Previously, in May 2024, Kvika tapped an additional SEK 500 m illion in floating‐rate bonds, priced at a 240‐basis‐point spread over the 3‐month STIBOR.
Compared to the 410 ‐basis‐point spread on issuances in 2023, both the May 2024 and the January 2025 transactions represent a significant
improvement in Kvika's bond pricing.
In mid‐January 2025, Kvika completed the sale of 3.25 ‐year floating‐
rate bonds totalling SEK 600 million and NOK 400 million. These bonds were priced
at a spread of 200 basis points over 3 ‐month STIBOR (for the SEK tranche) and 3 ‐month NIBOR (for the NOK tranche). With over 20 investors
participating, it marked Kvika's largest international bond issuance to date.
Kvika's financial position remains strong, with robust liquidity and capital buffers well above regulatory requirements. It is expected to strengt hen
further following the sale of its insurance business, TM. The divestment will transform Kvika's capital position, allowing it to retain significant capital to
take advantage of growth opportunities by expanding its loan book across all business units, while utilising internal infrastructure more efficien tly.
Growth in mortgage lending is expected to reduce the average risk weight of the loan book and positively impact NPL ratios in the coming year.
The Group's external environment is expected to turn increasingly supportive. Growth is likely to recover in key markets, while market pricing sugge sts
that nascent rate cutting cycles will continue throughout 2025 both in Iceland and the UK, which we expect to provide a further tailwind to the Group's
operations via continued loan book growth, improved net interest margins
 and increased market activity.
Additionally, in July 2024, Kvika issued ISK 500 m illion in Tier‐2 subordinated bonds to further strengthen the Bank's capital base. This issuance was a
 tap on subordinated bonds originally issued in December 2023.  
 Consolidated Financial Statements 31 December 2024  2

===== SIDA 6 =====

Kvika banki hf.
Endorsement and Statement
by the Board of Directors and the CEO
Economic outlook
Capital adequacy and dividends
Despite the benign outlook, several risks warrant vigilance. Externally, geopolitical tensions, increased trade fragmentation, weak growth in ke y trading
partners and the potential for renewed global inflationary pressures could pose challenges. Domestically, the labour market's response to evolvin g
economic conditions, coupled with the pace of disinflation, will be critical. Additionally, fluctuations in tourism activity and global commodity prices
remain pivotal factors influencing Iceland's economic trajectory. The Bank remains committed to monitoring these dynamics and ensuring
preparedness to navigate any headwinds effectively.
As Iceland hopefully enters a new period of growth, its disinflationary progress, the onset of monetary easing, and the anticipated economic recover y
present opportunities for the Bank to continue driving value for stakeholders.
The Group's solvency ratio at 31.12.2024 was 1.33 (31.12.2023: 1.25) with a regulatory minimum requirement of 1.0.
The Bank's 2024 A nnual General Meeting ("AGM") approved a motion from the Board of Directors ("BOD") permitting the Bank to purchase up to 10%
of own shares subject to regulatory approvals. This authorisation applies until the next annual general meeting in 2025. In July 2024, the BOD decided
to exercise a part of that authorisation and established a buy ‐back programme to carry out the purchase of shares for a total consideration amount of
ISK 1 billion but for no higher nominal amount than 100,000,000 shares. The buy‐back programme was completed in September 2024 when the Bank
had purchased shares for
 ISK 1 billion.
The Central Bank's Resolution Authority presented the Group with their first minimum requirement for own funds and eligible liabilities (MREL) in
January 2025. The MREL requirements, including the combined buffer requirement, are 28.4% of RWEA and 6.0% of total exposure amount ("TEM"). At
the end of 2024 these ratios were 41.1% and 31.1% respectively.
The Financial Supervisory Authority of the Central Bank published the results of the Supervisory Review and Evaluation Process ("SREP") for Kvika ba sed
on financial information at year ‐end 2023 on 10 July 2024. The capital requirement under Pillar II changed to 3.6% of total risk ‐weighted exposures
amount ("RWEA"), a decrease of 0.4pp from the year before. On 4 December 2024 the systemic risk buffer decreased by 0.8pp due to a decrease by the
Central Bank of Iceland. As of 31 December 2024, the systemic risk buffer decreased by a further 0.1pp due to changes in composition of risk weighted
exposure amount between Iceland and UK. Hence Kvika's total capital requirement at 31.12.2024, taking into account all capital buffers, amounted to
18.0%. Kvika's capital adequacy ratio was 22.8% at the end of December 2024 (31.12.2023: 22.6%). Kvika's CET1 requirement was 12.9% compared to a
CET1 ratio of 19.9% at the end of December 2024. 
The Icelandic economy enters the coming year at an inflection point in the business cycle. The economy has remained resilient throughout a
 challenging 
period of disinflation and is on track to achieve a soft landing. Although growth has slowed markedly in the last year as restrictive monetary policy ha s
weighed on domestic demand, Ic eland is widely expected to avoid a recession and enter reco very from this year onward. Recent developments point to
an encouraging trajectory for disinflation, setting the stage for greater economic stability, lower interest rates, and a more supportive backdrop for the
financial sector.
Additionally, the Icelandic labour market has shown remarkable resilience amid the economic slowdown. While growth in employment has moderated
compared to recent years, job creation remains positive, and unemployment seems to be stabilising at relatively low levels. This reflects the flexib ility of
the Icelandic labour market, which has benefitted from migration flows and close integration with the European labour market. 
Iceland's inflationary pressures have eased significantly over the past year. Headline inflation measured 4.8% in December, reflecting a three ‐
percentage‐point decline compared to the previous year. This progress has been broad ‐based, supported by slowing pressures on housing and goods
prices. Encouragingly, inflation expectations have also moderated across various horizons. The outlook suggests a continued deceleration, with i nflation
expected to approach the Central Bank's 2.5% target by mid ‐2026. This environment is expected to s upport growth in purchasing power and provide a
stronger foundation for economic growth and financial stability.
A milestone was reached as the Central Bank initiated its first rate cut in over four years in October. With the key interest rate now at 8.0%, monetary
policy has entered a phase of gradual easing. This shift marks a response to declining inflation and an evolving economic landscape. A downward
sloping yield curve anticipates further rate reductions over the coming year, signalling optimism about a more accommodative monetary environment .
These changes bode well for the Bank's lending and 
investment activities, as headwinds from restrictive policy subside.
Growth in the Icelandic economy slowed markedly in 2024, with the economy unlikely to expand meaningfully for the year as a whole. Tight monetary
policy has curbed domestic demand while exporting sectors have faced challenges due to slowing growth in tourism, weak capelin stocks and electricit y
rationing to heavy industry. However, the slowdown is expected to give way to a robust recovery, with growth projected to reach nearly 2% in 2025 and
average 2.5% annually in subsequent years. Key drivers include a rebound in private consumption supported by stronger real wage growth and interest
rate cuts, continued growth in tourism and green shoots in nascent exporting sectors.
While global economic conditions remain uncertain, Iceland's economic outlook stands out favourably. Among advanced economies, growth prospects
for Iceland compare positively, particularly against the backdrop of muted performance in the euro area. Iceland's energy independence, underpinn ed
by its reliable renewable base load power, provides a significant competitive advantage. This stability has facilitated large investments in expor t‐
oriented sectors, particularly pharmaceuticals and land ‐based fish farming, which are expected to yield meaningful growth over a medium ‐term
horizon. These developments underscore Iceland's strong positioning for sustainable growth and resilience in the face of global challenges.
Asset markets have already seen a degree of recovery, with equities delivering strong returns towards the end of 2024, expected to drive increased
trading volumes and rebounding performance ‐related fees in asset management. Furthermore, spreads on peers' Eurobonds have tightened markedly
in the last year, potentially offering opportunities to lower funding costs by refinancing non ‐ISK debt in international markets in the coming year.
Declining inflation
 is expected to allow the Group to maintain a lean cost base even as its operations grows, and balance sheet expands.
 Consolidated Financial Statements 31 December 2024  3

===== SIDA 7 =====

Kvika banki hf.
Endorsement and Statement
by the Board of Directors and the CEO
Share capital and shareholders
Shareholder 31.12.2024  31.12.2023 
9.17%  9.56% 
7.93%  7.89% 
7.09%  7.01% 
5.64%  5.43% 
5.58%  6.00% 
2.59%  2.55% 
2.55%  3.54% 
2.39%  1.28% 
2.33%  2.30% 
2.32%  2.31% 
47.60%  47.86% 
Risk management
Corporate governance
The Bank's issued share capital amounted to ISK 4,722 million as at 31 December 2024 (31.12.2023: ISK 4,781 m illion). At the end of the year the Bank
held ISK 62 million treasury shares (31.12. 2023: ISK 59 m illion). The shares were acquired through a share buy ‐back programme. The net change in the
Bank's issued share capital amounted to a reduction in nominal value of ISK 59 million during the year (ISK 148 million reduction during the year 2023).
The Bank had 2,741 shareholder at year ‐end 2024 (2023: 2,876), none of which held more than 10% of shares in the Bank (2023: 0). The ten largest
shareholders are as follows: 
The 2024 AGM also approved a motion from the BOD to, subject to approval from the Financial Supervisory Authority of the Central Bank of Iceland,
decrease the share capital of the Bank by 58,952,375 shares by cance lling treasury shares held by the Bank. In March 2024, the share capital reduction
was carried out. Furthermore, the 2024 AGM approved a motion from the BOD that no dividend will be paid in the year 2024 on 2023 operations.
Through the purchase of own shares in 2024, the Bank's dividend policy was met. The dividend policy states that the aim is for shareholders to be
returned an annual dividend of at least 25% of last year's profit after taxes, whether in the form of dividends or through the purchase of own shares. 
In 2024, changes were made to the risk management framework regarding sustainab ility risk. Previously, sustainability risk was categorized under
operational risk, but it has 
now been elevated within the risk management framework and is considered an independent risk factor.  
Birta lífeyrissjóður ..........................................................................................................................................
Stapi lífeyrissjóður .........................................................................................................................................
Landsbankinn hf. ............................................................................................................................................
Almenni lífeyrissjóðurinn ...............................................................................................................................
Frjálsi lífeyrissjóðurinn ...................................................................................................................................
Further information about the shareholders of the Bank is provided in note 67. 
The objective of risk management is to promote a good and efficient culture of risk awareness within the Group and to increase the understanding of
employees and management on the Group's risk taking, in addition to an assessment process related to risk and capital position. An emphasis is placed
on being up to speed on the latest developments and adoption of rules related to risk management, such as regarding capital ‐ and liquidity
management. The Group faces various risks associated with its operations as a financial conglomerate that arise from its day ‐to‐day operations. Active
risk management entails analysing risk, measuring it and taking actions to limit it, as well as monitoring risk factors across the Group. The Group's r isk
management and main operations are described in the notes accompanying the Consolidated Financial Statements. Refer to notes 42 ‐58 on the
analysis 
of exposure to various types of risk.
Kvika is obliged to observe recognised corporate governance guidelines, pursuant to Par. 7 of Article 54 of Act No. 161/2002, on Financial Undertakin gs.
The Bank complies with chapter VII of Act No. 161/2002 and in most respects with the Guidelines on Corporate Governance issued jointly in February
2021 by the Chamber of Commerce, Confederation of Icelandic Enterprise (SA) and Nasdaq Iceland. The Bank's a nnual general meeting in March 2024
approved a proposal to establish a Nomination Committee. The committee serves as an advisory role to facilitate informed decision ‐making be
shareholders when selecting board members. Kvika has three times b een recognized as a company which has achieved excellence in corporate
governance following a formal assessment based on the Icelandic Guidelines on Corporate Governance issued by the Icelandic Chamber of Commerce,
Confederation of Icelandic Enterprise (SA) and Nasdaq Iceland, first in 2018, in 2021 and in 2024. The recognition applies for three years at a time unl ess
there have been significant changes to the BOD or the ownership of the Bank. The BOD intends to have such an assessment carried out on a regular
basis and maintain the aforementioned recognition. Additionally, Kvika complies with Guidelines of the European Banking Authority (EBA) on Intern al
Governance (EBA/GL/2021/05), cf. Art. 15 of Regulation of the European Parliament and of the Council no. 1093/2010, which was incorporated into
Icelandic law with Act no. 24/2017 on European Supervisory System on the Financial Market. 
In accordance with the Bank´s articles of association, five members and two alternate members are elected to the BOD each year at the annual general
meeting. The eligibility of members of the BOD is subject to statutory law. It is the Bank´s policy concerning election of the BOD that the BOD
collectively has sufficient knowledge, competency and experience to understand the Bank´s operations, including the main risk factors. The ratio o f
each gender of members of the BOD and alternate members shall be at least 40%. The election of BOD members and their eligibility is furthermore
governed by the provisions of the Act on Public Limited Liability Companies No. 2/1995 and the Act on Financial Undertakings No. 
161/2002.
Lífsverk lífeyrissjóður .....................................................................................................................................
Lífeyrissjóður starfsmanna ríkisins A‐deild ....................................................................................................
Stoðir hf. .........................................................................................................................................................
Gildi ‐ lífeyrissjóður ........................................................................................................................................
Lífeyrissjóður verzlunarmanna ......................................................................................................................
The BOD proposes that a dividend of 0.44 ISK per share for a total amount of ISK 2,050 million, taking into account treasury shares held by the Group,
will be paid in the year 2025 on 2024 operations. The dividend payment amounts to 25% of Profit after tax for the year, which is in line with the Bank's
dividend policy. Additionally, the BOD will decide on a extraordinary dividend upon receipt of the purchase price for TM as well as initiating a share b uy
back programme, for which the Bank has received an approval from the Central Bank of Iceland that is contingent on the finalisation of the TM sale. 
 Consolidated Financial Statements 31 December 2024  4

===== SIDA 8 =====

Kvika banki hf.
Endorsement and Statement
by the Board of Directors and the CEO
A new sustainability risk policy for Kvika was approved by the Bank's BOD in the year that aligns with the guidelines from the Financial Supervisory
Authority of the Central Bank of Iceland and the draft regulatory framework of the European Banking Authority (EBA) on sustainability risk
(EBA/CP/2024/02). Sustainability risk according to the policy includes both Kvika's external risk exposure to various stakeholders and sustainability risk
factors (inside‐out risk) as well as the risk posed to Kvika by sustainability factors (outside ‐in risk). Sustainability risk may impact other risk categories
within the Bank. No changes have been made to the sustainability risk policies of Kvika Asset Management and TM since 2023.
The first step in the risk management process for monitoring sustainability risk is identifying key sustainability topics within Kvika's operation s. This was
achieved through a double materiality assessment (DMA) conducted in 2024, marking the first time Kvika has undergone such a process. The DMA is
currently voluntary in Iceland as the analysis follows the requirements of the Corporate Sustainability Reporting Directive (CSRD), which is expec ted to
be transposed into Icelandic law in the near future. The findings highlight the most significant sustainability topics for Kvika's operations and sh ape
Kvika's approach to sustainability reporting.
In line with these findings, Kvika is now publishing its first sustainability report considering the European Financial Reporting Advisory Group´s (EFRAG)
standards known as the European Sustainability Reporting Standards (ESRS). These standards align with the CSRD and define rules for sustainability
disclosures. Kvika aims to fully comply with all relevant data points in the ESRS when the CSRD becomes legally binding in Iceland. Kvika's sustainabi lity
disclosures under these requirements supplements the current legal requirements for non ‐financial reporting as outlined in Article 66 d of the Act on
Annual Accounts no. 3/2006.
The CEO reports to the Board and verifies the effectiveness of internal controls and risk management in the Consolidated Financial Statements. Inter nal
controls and risk management applied in the preparation of the Consolidated Financial Statements are organised with a view to preventing any
significant deficiencies in the accounting process. Kvika's BOD and control units regularly verify the effectiveness of internal controls and risk
management.
The Risk Committee has an advisory and supervisory role for the Bank's BOD, among other things, in determining its risk policy and risk appetite. The
Audit Committee is intended to play an advisory and supervisory role for the Bank's BOD by, among other things, ensuring the quality of financial
statements and other financial information from the Bank and the independence of its auditors. The Audit Committee supervises accounting
procedures and the effectiveness of internal controls as well as internal and external auditing. The Remuneration Committee has an advisory and
monitoring role for the BOD in relation to 
remuneration at the company and its Group and that they support its goals and interests. 
The main aspects of internal and external control and the Bank's management in connection with the accounting process are described in detail in the
Statement on the Corporate Governance of Kvika.
The BOD is responsible for the Group's risk management framework. It approves the Kvika Banki Group risk policy, which provides an efficient and
transparent framework for managing risk and risk appetite in relation to identified risk factors.
The Bank´s articles of association may be amended at lawfully convened shareholders´ meetings, provided that the notice of the meeting specifies tha t
proposals for such amendments are scheduled and outlines the main substance of the amendments. An amendment takes effect only if approved by at
least 2/3 of the votes cast and by shareholders controlling at least 2/3 of the shares represented at the meeting. However, the provisions of the articl es
of association regarding the voting rights of shareholders and equality among them cannot be amended except with the consent of all the shareholders
who are subject to the curtailment of rights, cf. paragraph 3 of Article
 94 of the Act on Public Limited Liability Companies No. 2/1995.
The Board determines compensation for the CEO. The BOD emphasizes good corporate governance and adherence to accepted guidelines on corporate
governance. The Board has laid down comprehensive rules in which the authority of the Board is defined and its scope of work in conjunction with the
CEO. They address e.g. the competence of Board members to participate in individual decisions, confidentiality and information disclosure between the
CEO and the Board. All Board members are independent of the Bank and its major shareholders, and no executive directors are on the Board. The Bank
aims to promote gender equality, and two out of five board members are women. 
The BOD has delegated certain tasks to three separate subcommittees , the Risk Committee, Audit Committee and Remuneration Committee. The
appointment of committee members shall always comply with currently applicable law. It is not permitted to appoint employees of the Bank to any
subcommittee. Members shall have the necessary ex perience and knowledge for each committee's tasks according to applicable laws and rules. Each
committee has incorporated procedural rules which have been confirmed by the BOD.
Kvika's strategy is to increase competition in financial services and simplify customers' financial affairs. Its core values are long ‐term thinking, simplicity,
and courage. One of the guiding principles of the Group is to be a responsible participant in society and in 2022 a sustainab ility policy was issued, which
remains in effect for Kvika Bank and the Group based on Kvika's ownership policy for key subsidiaries. Relevant supporting policies were subsequentl y
developed or updated, such as policies on education and career developm ent, equality, health, and human resources, as well as a response plan
against bullying, harassment, and violence. There has been no need for a separate human rights policy at Kvika, given that the Group primarily operate s
in Iceland, where there is 
a clear legal framework for human rights issues.
Kvika supports the UN Sustainable Development Goals (SDGs) and has selected six as priority areas: goal no. 3 – good health and well ‐being; goal no. 4 –
quality education; goal no. 5 – gender equality; goal no. 9 – industry, innovation, and infrastructure; goal no. 13 – climate action; and goal 17 –
partnerships for the goals. The Bank monitors progress on initiatives within the Group that align with these goals.
Kvika is committed to reducing its carbon footprint and progress was made in the year 2024 in reducing greenhouse gas (GHG) emissions. Scope 1
emissions decreased by 38% year ‐over‐year and Scope 3 by 51%. These reductions are attributed to initiatives such as transitioning from fossil ‐fuel‐
powered to electric vehicles, reducing employee flights and other measures. Overall, Kvika's total GHG emissions for 2024 were 282 tCO
₂e.
Further information about the Bank's corporate governance can be found in an appendix to these financial statements which contains a corporate
governance statement. A copy of the statement is available on the Bank's website, www.kvika.is. 
Sustainability and non‐financial reporting
 Consolidated Financial Statements 31 December 2024  5

===== SIDA 9 =====

Kvika banki hf.
Endorsement and Statement
by the Board of Directors and the CEO
Kvika's Green Funding Framework was updated in 2024 to better align with the European Union's Taxonomy Regulation. By year‐end 2024 Kvika's total 
green commitments amounted to ISK 8,526 million, covering issued green bonds and green deposits offered by the Bank. The Green Funding 
Framework enables Kvika to direct capital towards sustainable development and support the green transition in the economy. So far, all green 
commitments have been allocated within the asset category of clean transportation, specifically to Lykill's green car loans. Kvika's green assets at the 
end of 2024 amounted to ISK 10,530 million.
At Kvika, work has been carried out to implement the requirements of the Taxonomy Regulation and the Group publishes now for the second time 
information in accordance with Article 8 of the Taxonomy Regulation. To comply with the regulation's provisions, an analysis of the Group's assets 
was conducted with regards to the Taxonomy Regulation's technical criteria, and the proportion of green assets (Green Asset Ratio or GAR) was 
calculated. This ratio represents the Group's assets that involve financing and investment in environmentally sustainable economic activities 
according to the criteria of the Taxonomy Regulation. Information on Kvika´s GAR can be found in an unedited appendix to this annual report. 
The Bank has established a policy on measures against financial crime, rules on managing conflicts of interest, regulations on gifts, rewards, and 
incentive payments, as well as policies concerning reputational and conduct risk. They state that no employee or third party acting on behalf of the 
Group shall give, promise, request, accept, or receive bribes or other undue benefits intended to influence decision‐making in their professional 
capacity. Kvika has also implemented internal rules and procedures to strengthen its defences against bribery and corruption. Additionally, rules have 
been set regarding the segregation of duties, personal trading by employees, and whistleblower protection. These rules and policies, largely established 
at the Group level, form the foundation—along  with the Bank's code of ethics—of  Kvika's anti‐corruption and anti‐bribery measures.
Through these measures Kvika seeks to prevent its operations and those of its subsidiaries from being used for financial or economic crimes. The Bank 
regularly conducts and reviews risk assessments related to money laundering across its operations and business relationships, utilizing the information 
technology system Lucinity, which employs modern technology and artificial intelligence to detect suspicious behaviour.
Further information on sustainability and non‐financial disclosures can be found in Kvika's 2024 Sustainability Report, which accompanies this annual 
account and is available on the Bank's website, www.kvika.is. Deloitte provides a limited assurance on selected data points in Kvika´s Sustainability 
Report for 2024 and on the disclosure in Kvika´s impact and allocation report that is a part of the Sustainability Report. 
Statement by the Board of Directors and the CEO
The Consolidated Financial Statements of Kvika banki hf. for the year 2024 have been prepared in accordance with International Financial Reporting 
Standards as adopted by the EU, and additional requirements, as applicable, in the Act on Annual Accounts no. 3/2006, the Act on Financial 
Undertakings no. 161/2002 and rules on accounting for credit institutions no. 834/2003.
To the best of our knowledge these Consolidated Financial Statements give a true and fair view of the Group's assets, liabilities and financial position as 
at 31 December 2024 and the financial performance of the Group and changes of cash flows for the year 2024. Furthermore, in our opinion the 
Consolidated Financial Statements and the Endorsement of the Board of Directors and the CEO give a fair view of the development and performance of 
the Group's operations and its position and describe the principal risks and uncertainties faced by the Group.
In our opinion, the Consolidated Financial Statements of Kvika banki hf. for the year 2024 identified as "254900WR3I1Z9NPC7D84‐2024‐12‐31‐en" are 
prepared in all material respects, in compliance with the European Single Electronic Format Regulation (ESEF).
The Board of Directors and the CEO of the Bank have today discussed the Consolidated Financial Statements for the year 2024 and confirmed them by 
the means of their signatures.
Reykjavík, 12 February 2025.
Board of Directors
Sigurður Hannesson, Chairman
Helga Kristín Auðunsdóttir, Deputy Chairman
Ingunn Svala Leifsdóttir
Guðjón Reynisson
Sigurgeir Guðlaugsson
Chief Executive Officer
Ármann Þorvaldsson
The Consolidated Financial Statements of Kvika banki hf. for the year ended 31 December 2024 are electronically certificated by the Board of Directors 
and the CEO.
 Consolidated Financial Statements 31 December 2024  6

===== SIDA 10 =====

Kvika banki hf.
Independent Auditor's Report
To the Board of Directors and Shareholders of Kvika banki hf.
Opinion
Basis for Opinion 
Key Audit Matters 
Key Audit Matters How  the matter was addressed in our audit
Impairment charges for loans
• 
•  • 
•  • 
•  • 
• 
Management has provided further information about expected credit
losses and provisions for guarantees in notes 22, 46 and 82 to the
Consolidated Financial Statements.
Assumptions used in the expected credit loss models to incorporate
macroeconomic uncertainties.
Post‐model adjustments for particular high‐risk exposures, which are
not appropriately captured in the 
expected credit loss model.
The most significant judgements are: 
Timely identification of exposures with significant increase in credit
risk and credit impaired exposures. 
Valuation of collateral and assumptions of future cash flows on
manually assessed credit‐impaired exposures.
We have reviewed the disclosures to the Consolidated Financial statements to
confirm compliance with IFRS.
Testing the appropriateness of forwa rd looking information and how they
have been applied in the expected credit loss models.
We have audited the Consolidated Financial Statements of Kvika banki hf. for the year ended December 31, 2024 which comprise, the consolidated income
statement, the consolidated statement of compreh ensive income, the consolidated statement of financial position, the consolidated statement of c hanges
in equity, the consolidated statement of cash flows for the year then ended and the notes to the consolidated financial statements, including a summar yo f
significant accounting policies.
In our opinion, the accompanying Consolidated Financial Statements give a true and fair view of the consolidated financial position of Kvika banki hf .a sa t
December 31, 2024, and its consolidated financial per formance and its consolidated cash flows for th e year then ended in accordance with Internation al
Financial Reporting Standards (IFRSs) as adopted by the EU and additional requirements, as applicable, in the Act on Annual Accounts, the Act on Finan cial
Undertakings and rules on accounting for credit institutions.
We conducted our audit in accordance with Internat ional Standards on Auditing (ISAs). Our responsi bilities under those standards are further descr ibed in
the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. 
Key audit matters are those matters that, in our professional judgement, we re of most significance in our audit of the Consolidated Financial Stateme nts of
the current period. These matters were addressed in the context of our audit of the Consolidated Financial Statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters.
Book value of loans to customer s amounted to ISK 150,203 m illion at
year end (2023: ISK 136,323 million) and the total expected credit loss
for the group amounted to ISK 2, 345 million ( 2023: ISK 2, 234 million)
against loans at amortized cost, unused credit facilities and guarantees
at 31 December 2024.
Based on our risk assessment and industry knowledge, we have examined the
impairment charges for loans and provisions for undrawn loan commitments and
evaluated the methodology applied as well as the assumptions made according
to the description of the key audit matter.
Our opinion in this report on the Consolidated Financial Statements is consi stent with the content of the additional report that has been submitted to the
company´s audit 
committee in accordance with the EU Audit Regulation 537/2014 Article 11.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
We are independent of Kvika banki hf. in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional
Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements in Iceland, and we have ful filled
our other ethical responsibilities in accordance with these requirements and the IESBA. 
Based on the best of our knowledge and belief, no prohibited services referred to in the EU Audit Regulation 537/2014 Article 5.1 has been provided. 
Our examination included the following elements:
Testing of key controls over assumptions used in the expected credit loss
models. 
Obtaining and substantively testing the evidence behind valuation of collateral
with particular focus on post‐model adjustments applied to collateral value.
Measurement of loan impairment charges for loans and provisions for
guarantees is deemed a key audit matter as the determination of
assumptions for expected credit losses is highly subjective due to the
level of judgement applied by Management.
Substantively testing the PD models, related methodology and how they have
been applied in the expected credit loss 
models.
During our audit we have evaluated whether the Groups expected credit loss
models are compliant to IFRS 9. 
 Consolidated Financial Statements 31 December 2024  7

===== SIDA 11 =====

Kvika banki hf.
Independent Auditor's Report
Other information
Responsibilities of the Board of Directors and the CEO for the Consolidated Financial Statements
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements 
• 
• 
• 
• 
• 
• 
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon, except the
confirmation regarding report of the board of directors as stated below.
In accordance with Paragraph 2 article 104 of th e Icelandic Financial Statement Act no. 3/2006, we confirm to the best of our knowledge that the
accompanying report of the board of directors includes all information re quired by the Icelandic Financial Statement Act that is not disclosed elsew here in
the financial statements.
The Board of Directors and the CEO are responsible for the preparation and fa ir presentation of the Consolidated Financial Statements in accordance w ith
International Financial Reporting Standards (IFRSs) as adopted by the EU and additional requirements in the Icelandic Financial Statement Act, and for such
internal control as the Board of Directors and the CEO determines is necessa ry to enable the preparation of Consolidated Financial Statements that ar ef r e e
from material misstatement, whether due to fraud or error.
The board of directors and the audit committee are responsible for overseeing the Kvika banki hf. financial reporting process.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. I f
we conclude that a material uncertainty exists, we are required to draw atte ntion in our auditor’s report to the related disclosures in the consolidat ed
financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the ot her
information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially mi sstated.
I f ,b a s e do nt h ew o r kw eh a v ep e r f o r m e d ,w ec o n c l u d et h a tt h e r ei sam a t e r i a lm isstatement of this other information, we are required to report that fact .
We have nothing to report in this regard.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by
management.
Our objectives are to obtain reasonable assurance about whether the Conso lidated Financial Statements as a whole are free from material misstatemen t,
whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fra ud
or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of us ers
taken on the basis of these Consolidated Financial Statements.
The Board of Directors and the CEO are responsible for the other information . Other information comprises the rep ort of board of directors, Statement of
the Corporate Governance and Non‐Financial information
Evaluate the overall presentation, structure and content of the Consolidated Financial Statements, including the disclosures, and whether the
Consolidated Financial Statements represent the underlying transactions and events in a manner that achieves
 fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to expres sa n
opinion on the Consolidated and Separate Financial Statements. We are responsible for the direction, supervision and performance of the group audit .
We remain solely responsible for our audit opinion.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: 
Identify and assess the risks of material misstatement of the Consolidated Financial Statements, whether due to fraud or error, design and perform
audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk o f
not detecting a material misstatement resulting from fraud is higher tha n for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but n ot
for the purpose of expressing an opinion on the effectiveness of Kvika banki hf.'s internal control.
In preparing the Consolidated Financial Statements, the Board of Directors and the CEO are responsible for assessing Kvika banki hf.’s ability to con tinue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board of Direc tors
and the CEO either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.
 Consolidated Financial Statements 31 December 2024  8

===== SIDA 12 =====

Kvika banki hf.
Independent Auditor's Report
Report on other legal and regulatory requirements
Report on European single electronic format (ESEF Regulation)
Deloitte ehf.
The Consolidated Financial Statements of Kvika banki hf. for the year ended 31 December 2024 are electronically certificated by the auditor.
Kópavogur, 12 February 2025.
In addition to our work as the auditors of Kvika banki hf., Deloitte has provi ded the firm with permitted additional services such as review of interim
financial statements, other assurance engagements and consultation on t ax matters. Deloitte has in place internal procedures in order to ensure its
independence before acceptance of additional services. Deloitte has provi ded to the audit commitee written confirmation that Deloitte is independ ent of
Kvika banki hf.
Deloitte was appointed auditor of Kvika banki hf. by the general meeting of s hareholders on March 21st 2024. Deloitte have been elected since the gener al
meeting 2016. 
Guðmundur Ingólfsson
As part of our audit of the Consolidated Financial Statements of Kvika bank i hf. we performed procedures to be able to issue an opinion on whether the
Consolidated Financial Statements of Kvika banki hf. for the year 2024 with the file name „254900WR3I1Z9NPC7D84 ‐2024‐12‐31‐en.zip“is prepared, in all
material respects, in compliance with laws no. 20/2021 disclosure obligation of issuers of securities and the obligation to flag relating to require ments
regarding European single electronic format regulation EU 2019/815 which i nclude requirements related to the preparation of the Consolidated Fina ncial
Statements in XHTML format and iXBRL markup.
Management is responsible for preparing the Consolidated Financial Sta tements in compliance with laws no. 20/2021 disclosure obligation of issuer so f
securities and the obligation to flag. This responsibility includes preparing the Consolidated Financial Statements in a XHTML format in accordanc et oE U
regulation 2019/815 on the European single electronic format (ESEF regulation).
Our responsibility is to obtain reasonable assurance, based on evidence that we have obtained, on whether the Consolidated Financial Statements is
prepared in all material respects, in compliance with the ESEF Regulation, and to issue a report that includes our opinion. The nature, timing and exte nt of
procedures selected depend on the auditor's judgement, including the assessm ent of the risks of material departures from the requirement set out in t he
ESEF regulation, whether due to fraud or error.
In our opinion, the Consolidated Financial Statements of Kvi ka banki hf. for the 2024 with the file name „254900WR3I1Z9NPC7D84 ‐2024‐12‐31‐en.zip“ is
prepared, in all material respects, in compliance with the ESEF Regulation.
We communicate with the Board of Directors and the Audit Committee regardi ng, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
State Authorized Public Accountant
We also provide the Board of Directors and the Audit Committee with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and
where applicable, related safeguards.
From the matters communicated with the Board of Directors and the Audit Co mmittee, we determine those matters that were of most significance in the
audit of the Consolidated Financial Statements of the current period and a re therefore the key audit matters. We describe these matters in our auditor ’s
report unless law or regulation precludes public disclosure about the matte r or when, in extremely rare circumstances, we determine that a matter sho uld
not be communicated in our report because the adverse consequences of doin g so would reasonably be expected to outweigh the public interest benefits
of such communication.
 Consolidated Financial Statements 31 December 2024  9

===== SIDA 13 =====

Kvika banki hf.  Amounts are in ISK thousands
Consolidated Income Statement
 For the year 2024
Notes Q4  2024 Q4  2023 2024   2023
6,804,898  6,086,605  28,864,791  22,425,240 
(4,307,148) (3,755,508) (19,183,996) (14,404,510)
Net interest income 5 2,497,750  2,331,096  9,680,795  8,020,729 
1,765,252  1,692,180  6,787,614  6,455,647 
(164,320) (114,583) (651,104) (539,199)
Net fee and commission income 6 1,600,932  1,577,597  6,136,510  5,916,447 
7 507,425   (10,613) 1,054,384   442,389 
25 15,770   18,234  41,350  35,756 
43,914  86,427  271,401  436,900 
Other net operating income 567,109  94,048  1,367,135  915,045 
Net operating income 4,665,791  4,002,741  17,184,440  14,852,222 
9‐12 (2,864,054) (2,778,784) (10,607,762) (10,784,684)
13 (91,084) (826,818) (604,972) (1,027,489)
(109,927) (33,713) (154,247) (31,048)
Profit before taxes from continuing operations 1,600,727  363,427  5,817,459  3,009,001 
14 (45,016) 264,324   (766,485) (389,673)
15 18,919   32,918  (109,019) (82,026)
16 (46,816) (71,988) (252,056) (233,414)
Profit for the year from continuing operations 1,527,814  588,681  4,689,899  2,303,887 
Discontinued operations
3 1,918,966   989,816  3,460,071  1,730,389 
Profit for the year 3,446,780  1,578,498  8,149,970  4,034,276 
Notes Q4  2024  Q4 2023  2024  2023
3,446,783  1,581,676  8,143,442  4,018,503 
24 (3) (3,178) 6,527   15,772 
Profit for the year 3,446,780  1,578,498  8,149,970  4,034,276 
Earnings per share 17
0.74 0.33 1.73 0.84
0.74 0.33 1.73 0.84
Quarterly information is unreviewed.
The notes on pages 17 to 76 are an integral part of these Consolidated Financial Statements.
 Other operating income .................................................................................................
 Administrative expenses ................................................................................................
 Net impairment ..............................................................................................................
 Revaluation of contingent consideration .......................................................................
 Share in profit of associates, net of income tax .............................................................
 Interest income ..............................................................................................................
 Interest expense 
.............................................................................................................
 Fee and commission income ..........................................................................................
 Fee and commission expense ........................................................................................
 Net financial income (expense) ......................................................................................
 Diluted earnings per share (ISK per share) .....................................................................
 Income tax ......................................................................................................................
 Attributable to the shareholders of Kvika banki hf. .......................................................
 Attributable to non‐controlling interest ........................................................................
 Special tax on financial institutions ................................................................................
 Special tax on financial activity ......................................................................................
 Basic earnings per share (ISK per share) ........................................................................
 Profit after tax from discontinued operations ...............................................................
 Consolidated Financial Statements 31 December 2024  10

===== SIDA 14 =====

Kvika banki hf.  Amounts are in ISK thousands
 For the year 2024
Notes Q4  2024 Q4  2023 2024   2023 
Profit for the year 3,446,780  1,578,498  8,149,970  4,034,276 
241,297  503,664  346,520  (433,002)
(13,951) 28,621   893  77,089 
Changes to reserve for financial assets at fair value through OCI 227,346  532,285  347,413  (355,912)
(59,381) 48,359   (7,055) 28,808  
167,965  580,644  340,358  (327,105)
Total comprehensive income for the year 3,614,745  2,159,142  8,490,328  3,707,171 
Notes Q4  2024  Q4 2023  2024  2023 
3,614,748  2,162,320  8,483,800  3,691,399 
(3) (3,178) 6,527   15,772 
Total comprehensive income for the year 3,614,745  2,159,142  8,490,328  3,707,171 
Quarterly information is unreviewed.
The notes on pages 17 to 76 are an integral part of these Consolidated Financial Statements.
Consolidated Statement of Comprehensive Income 
Attributable to the shareholders of Kvika banki hf. ..................................................
Attributable to non‐controlling interest ....................................................................
Exchange difference on translation of foreign operations .....................................
Changes in fair value of financial assets through OCI, net of tax ............................
Realized net (gain) loss transferred to the Income Statement, net of tax ..............
Other comprehensive income that is or may be reclassified subsequently to 
profit and loss
 Consolidated Financial Statements 31 December 2024  11

===== SIDA 15 =====

Kvika banki hf.  Amounts are in ISK thousands
Consolidated Statement of Financial Position
 As at 31 December 2024
Assets Notes 31.12.2024   31.12.2023 
18 28,319,192   23,681,453 
19 64,794,561   64,977,406 
20 5,432,254   3,857,480 
21 12,601,026   16,852,313 
22 150,202,696   136,323,481 
23 1,196,744   2,497,877 
25 112,855   96,194 
26 21,693,399   21,906,363 
27 215,168   530,144 
543,413  618,361 
14, 28 2,273,265   2,902,580 
29 9,507,492   10,401,128 
3 57,702,377   50,752,652 
Total assets 354,594,442  335,397,432 
Liabilities
50 163,377,879   142,565,905 
30 14,389,515   15,024,098 
31 37,123,285   45,715,427 
32 5,628,982   5,993,084 
33 153,001   131,745 
34 42,035   4,230 
23 2,932,429   2,196,904 
28 466,096   272,615 
35 13,634,905   16,594,010 
3 27,329,028   24,941,611 
Total liabilities 265,077,155  253,439,628 
Equity
36 4,660,180   4,722,073 
46,750,093  47,661,777 
9,356,543  4,330,081 
28,671,825  25,171,754 
Total equity attributable to the shareholders of Kvika banki hf. 89,438,641  81,885,685 
24 78,646   72,119 
Total equity 89,517,287  81,957,804 
Total liabilities and equity 354,594,442  335,397,432 
The notes on pages 17 to 76 are an integral part of these Consolidated Financial Statements.
 Other reserves ....................................................................................................................................
 Retained earnings ...............................................................................................................................
 Issued bonds .......................................................................................................................................
 Operating lease assets ........................................................................................................................
 Cash and balances with Central Bank ................................................................................................
 Other assets ........................................................................................................................................
 Deferred tax assets .............................................................................................................................
 Subordinated liabilities ......................................................................................................................
 Derivatives ..........................................................................................................................................
 Fixed income securities ......................................................................................................................
 Shares and other variable income securities .....................................................................................
 Securities used for hedging ................................................................................................................
 Loans to customers ............................................................................................................................
 Investment in associates ....................................................................................................................
 Intangible assets .................................................................................................................................
 Property and equipment ....................................................................................................................
 Assets classified as held for sale ........................................................................................................
 Deposits  .............................................................................................................................................
 Borrowings .........................................................................................................................................
 Non‐controlling interest .....................................................................................................................
 Short positions held for trading .........................................................................................................
 Short positions used for hedging .......................................................................................................
 Share capital .......................................................................................................................................
 Share premium ...................................................................................................................................
 Other liabilities ...................................................................................................................................
 Liabilities associated with assets classified as held for sale ..............................................................
 Deferred tax liabilities ........................................................................................................................
 Derivatives ..........................................................................................................................................
 Consolidated Financial Statements 31 December 2024  12

===== SIDA 16 =====

Kvika banki hf.  Amounts are in ISK thousands
Consolidated Statement of Changes in Equity
 For the year 2024
Deficit  Trans‐  Restricted  Total share‐  Non‐ 
Share  Share  Option  reduction  Fair value  lation  retained   Retained  holders'  controlling  Total 
1 January 2024 to 31 December 2024 Notes capital   premium  reserve  reserve  reserve  reserve  earnings  earnings  equity  interest  equity 
4,722,073  47,661,777  173,605  1,203,697  (930,231) 86,145   3,796,865  25,171,754  81,885,685  72,119  81,957,804 
8,143,442  8,143,442  6,527  8,149,970 
346,520  346,520  346,520 
893  893  893 
(7,055) (7,055) 0   (7,055)
0  0  0  0  347,413  (7,055) 0   8,143,442  8,483,800  6,527  8,490,328 
4,744,782  (4,744,782) 0   0 
5,795  (5,795) 0   0 
(63,624) (936,376) (1,000,000) (1,000,000)
66 (59,921) 102,654   42,733  42,733 
1,730  24,692  (4,553) 4,553   26,422  26,422 
Equity as at 31 December 2024 4,660,180  46,750,093  109,131  1,203,697  (582,818) 79,090   8,547,443  28,671,825  89,438,641  78,646  89,517,287 
The notes on pages 17 to 76 are an integral part of these Consolidated Financial Statements.
(8,974,725) 19,421,065   109,131  1,124,606  (5,242,998) 79,090   8,438,311  27,468,129  78,646 
 Share options exercised ............................................................................
Transactions with owners of the Bank
 Share options ............................................................................................
Other reserves
 Profit for the year ........................................................................................
 Restricted due to subsidiaries and associates .............................................
Translation of foreign operations
 Exchange difference on translation of foreign operations .......................
 Equity as at 1 January 2024 .........................................................................
 Total comprehensive income for the year ..................................................
 Realized net loss transferred to the Income Statement ..............................
 Changes in fair value of financial assets through OCI .................................
 Restricted due to development costs ..........................................................
 Treasury shares acquired as part of a buy‐back programme ...................
 Consolidated Financial Statements 31 December 2024  13

===== SIDA 17 =====

Kvika banki hf.  Amounts are in ISK thousands
Consolidated Statement of Changes in Equity
 For the year 2023
Deficit  Trans‐  Restricted  Total share‐  Non‐ 
Share  Share  Option  reduction  Fair value  lation  retained   Retained  holders'  controlling  Total 
1 January 2023 to 31 December 2023 Notes capital   premium  reserve  reserve  reserve  reserve  earnings  earnings  equity  interest  equity 
4,781,026  48,602,825  155,951  1,203,697  (574,319) 57,338   2,225,492  24,559,886  81,011,895  77,285  81,089,180 
4,018,503  4,018,503  15,772  4,034,276 
(433,002) (433,002) (433,002)
77,089  77,089  77,089 
Translation of foreign operations
28,808  28,808  0  28,808 
0  0  0  0  (355,912) 28,808   0  4,018,503  3,691,399  15,772  3,707,171 
1,443,488  (1,443,488) 0   0 
127,884  (127,884) 0   0 
(58,952) (941,048) (1,000,000) (1,000,000)
(1,912,410) (1,912,410) (1,912,410)
66 17,654   73,997  91,651  91,651 
3,150  3,150  (20,938) (17,788)
Equity as at 31 December 2023 4,722,073  47,661,777  173,605  1,203,697  (930,231) 86,145   3,796,865  25,171,754  81,885,685  72,119  81,957,804 
The notes on pages 17 to 76 are an integral part of these Consolidated Financial Statements.
 Equity as at 1 January 2023 .........................................................................
 Total comprehensive income for the year ..................................................
 Treasury shares acquired as part of a buy‐back programme ...................
 Acquisition of non‐controlling interest via merger ...................................
 Share options ............................................................................................
 Restricted due to subsidiaries and associates .............................................
Transactions with owners of the Bank
Other transactions
 Restricted due to development costs ..........................................................
Other reserves
 Dividend paid to shareholders ..................................................................
 Changes in fair value of financial assets through OCI .................................
 Realized net loss transferred to the Income Statement ..............................
 Profit for the year ........................................................................................
 Exchange difference on translation of foreign operations .......................
 Consolidated Financial Statements 31 December 2024  14

===== SIDA 18 =====

Kvika banki hf.  Amounts are in ISK thousands
Consolidated Statement of Cash Flows
 For the year 2024
Cash flows from operating activities Notes 2024   2023 
8,149,970  4,034,276 
6,446  (188,114)
(41,350) (35,756)
1,106,068  1,109,490 
(9,680,795) (8,020,729)
604,972  1,027,489 
1,127,560  705,114 
(3,488,141) 445,029  
42,733  94,801 
(2,172,537) (828,401)
Changes in:
750,211  (21,211,295)
(5,246,477) 227,425  
4,251,287  (3,010,460)
(11,224,223) (29,420,426)
1,301,132  2,442,861 
225,235  194,187 
772,611  484,156 
20,413,165  19,684,527 
2,360,802  2,166,335 
59,062  (2,693,319)
713,124  529,292 
(2,689,526) 8,286,647  
11,686,403  (22,320,069)
27,993,291  21,389,947 
(18,851,441) (13,561,855)
(614,333) (494,455)
Net cash from (to) operating activities 18,041,384  (15,814,832)
Cash flows from investing activities
26 (608,412) (1,539,716)
(90,974) (342,664)
19,806  27,493 
1,237,755  (20,938)
Net cash from (to) investing activities 558,174  (1,875,826)
Cash flows from financing activities
(2,072,443) (4,191,498)
(8,592,142) 10,821,525  
(300,000) 2,000,000  
(1,000,000) (1,000,000)
26,422  0 
0  (1,912,410)
(407,716) (424,085)
Net cash (to) from financing activities (12,345,879) 5,293,532  
6,253,679  (12,397,126)
24,677,014  36,670,586 
(539,354) 403,554  
Cash and balances with Central Bank at the end of the year, including asset held for sale 30,391,339  24,677,014 
(2,072,147) (995,561)
Cash and balances with Central Bank at the end of the year 18 28,319,192   23,681,453 
The notes on pages 17 to 76 are an integral part of these Consolidated Financial Statements.
 Interest received ..........................................................................................................................................
 Sale of own shares due to share options .....................................................................................................
 Acquired own shares ....................................................................................................................................
 Additions of intangible assets ......................................................................................................................
 Net acquisition of property and equipment ................................................................................................
 Interest paid .................................................................................................................................................
 Income tax paid ............................................................................................................................................
 Dividend from associates .............................................................................................................................
 Disposal (Acquisition) of subsidiary and associates, net of cash .................................................................
 Net change in cash and balances with Central Bank ...................................................................................
 Repayment of lease liabilities ......................................................................................................................
 Issued bonds ................................................................................................................................................
 Dividend paid to shareholders .....................................................................................................................
 Subordinated loans ......................................................................................................................................
 Borrowings ...................................................................................................................................................
 Effects of exchange rate fluctuations on cash and balances with Central Bank .........................................
 Cash and balances with Central Bank at the beginning of the year, including assets held for sale ...........
 Cash and cash equivalents due to assets held for sale ................................................................................
 Other adjustments .....................................................................................................................................
 Adjustment relating to assets held for sale ...............................................................................................
 Derivatives ‐ assets ....................................................................................................................................
 Fixed income securities .............................................................................................................................
 Shares and other variable income securities ............................................................................................
 Securities used for hedging .......................................................................................................................
 Loans to customers ....................................................................................................................................
 Other assets ...............................................................................................................................................
 Operating lease assets ...............................................................................................................................
 Derivatives ‐ liabilities ...............................................................................................................................
 Deposits  ....................................................................................................................................................
 Insurance contract liabilities .....................................................................................................................
 Short positions ...........................................................................................................................................
 Other liabilities ..........................................................................................................................................
 Net interest income ...................................................................................................................................
 Income tax and special tax on financial activity and institutions .............................................................
 Profit for the year .........................................................................................................................................
Adjustments for:
 Indexation and exchange rate difference .................................................................................................
 Share in profit of associates, net of income tax ........................................................................................
 Depreciation and amortisation .................................................................................................................
 Net impairment .........................................................................................................................................
 Consolidated Financial Statements 31 December 2024  15

===== SIDA 19 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
0
General information Page Risk  management Page
1  Reporting entity ............................................................................ 17 42  Risk management framework ........................................................ 37
2  Basis of preparation ..................................................................... 17 43  Hedging ........................................................................................... 38
3  Discontinued operations .............................................................. 18 44  Credit risk ‐ overview ...................................................................... 39
45  Maximum exposure to credit risk .................................................. 40
Segment information 46  Credit quality of financial assets .................................................... 40
4  Business segments ....................................................................... 19 47  Loan‐to‐value ................................................................................. 45
48  Collateral against exposures to derivatives ................................... 45
Income statement 49  Large exposures .............................................................................. 45
5  Net interest income ...................................................................... 21 50  Liquidity risk ................................................................................... 46
6  Net fee and commission income .................................................. 21 51  Market risk ...................................................................................... 50
7  Net financial income (expense) .................................................... 22 52  Interest rate risk ............................................................................. 50
8  Foreign currency exchange difference ......................................... 22 53  Interest rate risk associated with trading portfolios ...................... 50
9  Administrative expenses .............................................................. 22 54  Interest rate risk associated with non‐trading portfolios .............. 51
10  Salaries and related expenses ...................................................... 22 55  Exposure towards changes in the CPI ............................................ 52
11  Employment terms of the Board of Directors and management  23 56  Currency risk ................................................................................... 52
12  Auditor's fees ................................................................................ 23 57  Equity risk ....................................................................................... 54
13  Net impairment ............................................................................ 24 58  Operational risk .............................................................................. 54
14  Income tax .................................................................................... 24
15  Special tax on financial activity .................................................... 24 Financial assets and liabilities
16  Special tax on financial institutions .............................................. 24 59  Accounting classif. of financial assets and financial liabilities ....... 55
17  Earnings per share ........................................................................ 25 60  Financial assets and financial liabilities measured at fair value .... 56
61 Financial assets and financial liabilities
Statement of Financial Position  not measured at fair value ............................................................. 58
18  Cash and balances with Central Bank .......................................... 26
19  Fixed income securities ................................................................ 26 Other information
20  Shares and other variable income securities ............................... 26 62  Pledged assets ................................................................................ 59
21  Securities used for hedging .......................................................... 26 63  Related parties ............................................................................... 59
22  Loans to customers ...................................................................... 27 64  Remuneration policy ...................................................................... 60
23  Derivatives .................................................................................... 27 65  Incentive scheme ............................................................................ 60
24  Group entities ............................................................................... 28 66  Share‐based payments ................................................................... 60
25  Investment in associates .............................................................. 28 67  Shareholders of the Bank ............................................................... 62
26  Intangible assets ........................................................................... 28 68  Others matters ............................................................................... 62
27  Operating lease assets .................................................................. 29 69  Events after the reporting date ...................................................... 62
28  Deferred tax assets and liabilities ................................................ 29
29  Other assets .................................................................................. 30 Significant accounting policies 63
30  Borrowings ................................................................................... 30
31  Issued bonds ................................................................................. 30
32  Subordinated liabilities ................................................................ 31
33  Short positions held for trading ................................................... 31
34  Short positions used for hedging ................................................. 31
35  Other liabilities ............................................................................. 31
36  Share capital ................................................................................. 32
37  Solvency of financial conglomerate ............................................. 33
38  Capital adequacy ratio (CAR) ........................................................ 34
39  Solvency of insurance activities ................................................... 35
40  Leverage ratio ............................................................................... 35
41 Minimum requirements for own funds
 and eligible liabilities (MREL) ....................................................... 36
 Consolidated Financial Statements 31 December 2024  16

===== SIDA 20 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
0
General information
1. Reporting  entity
2. Basis  of preparation
a. Statement  of compliance
b. Basis  of measurement
‐
‐
‐
‐
‐
‐
‐ shared based payment is accounted for in accordance with IFRS 2;
‐
‐
c. Functional  and presentation currency
d. Going  concern
e. Estimates  and judgements
f. Relevance  and importance of notes to the reader
derivatives are measured at fair value;
short positions are measured at fair value.
investment properties are
 measured at fair value;
certain loans to customers which are measured at fair value;
contingent consideration is measured at fair value; and
Kvika banki hf. ("Kvika" or the "Bank") is a limited liability company incorporated and domiciled in Iceland, with its registered office at Katrínart ún 2,
Reykjavík. The Bank operates as a bank based on Act No. 161/2002, on Financial Undertakings, and is supervised by the Financial Supervisory
Authority of the Central Bank ("FME"). The Group, comprised of Kvika and its subsidiaries, has been designated by the FME as a financial
conglomerate as defined in Article no. 3 of Act no. 61/2017 on Additional Supervision of Financial Conglomerates.
The Consolidated Financial Statements were approved and authorised for issue by the 
Board of Directors and the CEO on 12 February 2025.
The Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the
European Union and additional requirements, as applicable, in the Act on Annual Accounts no. 3/ 2006, the Act on Financial Undertakings no.
161/2002 and rules on accounting for credit institutions no. 834/2003.
The Consolidated Financial Statements have been prepared using the historical cost basis except for the following:
The Consolidated Financial Statements for the year ended 31 December 2024 comprise Kvika banki hf. and its subsidiaries (together referred to as the
Group). The subsidiary TM tryggingar hf. has been classified as a disposal group held for sale, insurance operations are therefore a discontinued
operation and are no longer reported as an operating segment. The Gro up operates four business segment s, Asset Management, Commercial
Banking, Investment Banking and UK operations. Operating without a branch network, Kvika provides businesses, investors, and individuals with
investment banking, insurance, asset management, payment, and banking services.
fixed income securities are 
measured at fair value;
shares and other variable income securities are measured at fair value;
The Bank's management has assessed the Group's ability to continue as a going concern and is satisfied that the Group has the resources to continue
its operations.
The preparation of financial statements in accordance with IFRSs requires management to make judgements, estimates and assumptions that affect
the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates.
The Consolidated Financial Statements are prepared in Icelandic krona (ISK), which is the Group's functional currency. All financial information h as
been rounded to the nearest thousand, unless otherwise stated.
securities used for hedging are measured at fair value;
The Group's assets and liabilities which are denominated in other currency than ISK are translated to ISK using the exchange rate as at the end of day
31 December 2024.
The estimates and underlying assumptions are based on historical results and various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the judgements about carrying amounts of assets and liabilities that are not readily
apparent from other sources.
The estimates and underlying assumptions are reviewed on an on ‐going basis. Revisions to accounting estimates are recognised in the period in
which the estimate is revised if the revision affects only that period or in the period and future periods if the revision affects both current and futur e
periods. 
Information about areas of estimation uncertainty and critical judgements made by management in applying accounting policies that can have a
significant effect on the amounts
 recognised in the Consolidated Financial Statements is provided in note 108.
In order to enhance the informational value of the Consolidated Financial Statements, the notes are evaluated based on relevance and importance
for the reader. This can result in information, that has been evaluated as neither important nor relevant for the reader, not being presented in the
notes.
 Consolidated Financial Statements 31 December 2024  17

===== SIDA 21 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
0
g. Change  in presentation
Restated
31.12.2023  Reclassified   31.12.2023 
Assets:
335,397,432  0  335,397,432 
335,397,432  0  335,397,432 
Liabilities and Equity:
133,772,941  8,792,963  142,565,905 
23,817,062  (8,792,963) 15,024,098  
177,807,429  0  177,807,429 
335,397,432  0  335,397,432 
Lines in the Consolidated Statement of Cash Flows
20,669,844  (985,317) 19,684,527  
(5,176,815) 985,317   (4,191,498)
3. Discontinued  operations
2024  2023 
705,744  896,360 
(9,082) 24,243  
20,860,983  19,582,351 
(15,549,061) (14,859,842)
2,401,751  799,836 
117,128  133,484 
(4,799,240) (4,523,638)
(2,976) 20,893  
0  59,602 
(403,858) (483,429)
3,321,389  1,649,861 
94,854  0 
54,785  102,402 
(10,957) (21,874)
3,460,071  1,730,389 
Assets 31.12.2024  31.12.2023 
2,072,147  995,561 
21,065,333  19,824,505 
20,607,557  14,543,128 
0  1,240,135 
12,349,767  12,615,362 
1,607,573  1,533,960 
57,702,377  50,752,652 
Liabilities
25,301,763  23,267,425 
605,187  629,063 
1,422,078  1,045,123 
27,329,028  24,941,611 
(55,207) 1,018,962  
30,318,142  26,830,002 
The table below shows the effect of the reclassification on the Consolidated Statement of Financial Position at 31 December 2023: 
At year‐end 2023, TM was classified as a disposal group held for sale and as a discontinued operation. TM is measured at the lower of carrying
amount upon the date of reclassification and fair value less costs to sell.
 Deposits .....................................................................................................................................................
 Borrowings .................................................................................................................................................
 Other liabilities ......................................................................................................................................................................
The major classes of assets and liabilities of the discontinued operations are as follows:
The results of the discontinued operations for the year are presented below:
 Investment properties ..........................................................................................................................................................
 Intangible assets ...................................................................................................................................................................
As at 31 December 2024 the Group has changed where in the statement of financial position it presents money market deposits. It now presents
them as a part of deposits, whereas they were previously presented as part of borrowings. The change has been made as the nature and type of the
liabilities that money market deposits represent are more in line with deposits then borrowings. The comparative figures for 31 December 2023 in
the statement of financial position and in the notes have been restated.
 Other assets 
..........................................................................................................................................................................
Assets classified as held for sale
 Insurance contract liabilities .................................................................................................................................................
 Deferred tax liabilities ...........................................................................................................................................................
Liabilities associated with assets classified as held for sale
Net assets directly associated with disposal group
 Eliminations with the Group .................................................................................................................................................
Total assets
 Net financial income .............................................................................................................................................................
 Other operating income ........................................................................................................................................................
 Administrative expenses .......................................................................................................................................................
 Net impairment .....................................................................................................................................................................
 Revaluation of investment properties ..................................................................................................................................
 Income tax .............................................................................................................................................................................
 Gain on the sale of a subsidiary ............................................................................................................................................
 Administrative expenses, stranded costs .............................................................................................................................
 Income tax .............................................................................................................................................................................
Profit for the year from discontinued operations
 Cash and balances with Central Bank ...................................................................................................................................
 Fixed income securities .........................................................................................................................................................
 Shares and other variable income securities ........................................................................................................................
 All assets ....................................................................................................................................................
 Deposits .....................................................................................................................................................
 Borrowings .................................................................................................................................................
 All other liabilities and equity ...................................................................................................................
Total liabilities and equity
 Net interest income ..............................................................................................................................................................
 Net fee and commission income ..........................................................................................................................................
 Insurance revenue ................................................................................................................................................................
 Incurred claims and net expense from reinsurance contract held ......................................................................................
 Consolidated Financial Statements 31 December 2024  18

===== SIDA 22 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
0
3. Discontinued  operations (cont.)
Amounts included in accumulated OCI: 31.12.2024  31.12.2023 
(274,943) (387,416)
54,989  77,483 
(219,955) (309,933)
2024  2023 
5,160,908  4,779,187 
(4,077,085) (6,207,467)
(605) (6,980)
1,083,218  (1,435,260)
Segment information
4. Business  segments
‐
‐
‐
‐
The subsidiary TM tryggingar hf. has been classified as a disposal group held for sale. Insurance operation are therefore a discontinued operations
and are no longer reported as an operating segment. During the year 2024, the Group defined four reportable operating segments; Asset
Management, Commercial Banking, Investment Banking, previously called Corporate Banking and Capital Markets, and UK operations.
Net cash inflow/(outflow)
Segment reporting is based on the same principles and structure as internal reporting to the CEO and the Board of Directors. Segment performance is
evaluated on profit before tax and excludes income from discontinued operations. 
Reportable segments
 Fair value of financial assets through OCI ............................................................................................................................
 Deferred tax on fair value reserve ........................................................................................................................................
 Operating ..............................................................................................................................................................................
 Investing ................................................................................................................................................................................
 Financing ...............................................................................................................................................................................
Reserve of disposal group classified as held for sale
The net cash flows incurred by the discontinued operations are as follows:
Asset Management
Products and services offered include asset management involving both domestic and foreign assets, private banking and private pension plans.
The management of a broad range of mutual funds, investment funds and institutional investor funds is included in this segment through the
operations of Kvika eignastýring hf.
Commercial Banking
Commercial Banking offers various forms of banking services and related advisory services. Included in this operating segment is Lykill, the leasin g
operations of the Group, and the Group's fintech operations, such as Auður, Netgíró and Aur, as well as the payment facilitation operations of
Straumur greiðslumiðlun hf.
Investment Banking
Investment Banking provide a range of professional services in the fields of specialised financing, securities and foreign exchange transactions a nd
corporate finance services. The functions of Market Making and Treasury are also included in the segment although they are a part of Kvika's
Finance division.
UK operations
The UK operations consist of asset management and corporate finance services through Kvika Securities Ltd. and specialised lending services
through Ortus Secured Finance Ltd.
UK operations is the only geographic area outside of Iceland and for the year 2024 it accounts for 
17.0% (2023: 9.5%) of net operating income. 
Supporting units consist of the functions carried out by the Bank's support divisions, such as Risk Management, Finance, IT and Operations, etc. The
information presented relating to the supporting units does not represent an operating segment.
 Consolidated Financial Statements 31 December 2024  19

===== SIDA 23 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
0
4. Business  segments (cont.)
Asset  Commercial  Investment  UK  Supporting 
2024 Management   Banking  Banking  operations  units  Total 
11,406  4,102,924  3,867,666  1,736,526  (37,727) 9,680,795  
2,457,473  1,536,044  1,519,716  623,096  181  6,136,510 
95,578  (5,737) 414,078   554,025  (3,560) 1,054,384  
‐ 41,350 ‐‐ ‐ 41,350 
33,036  217,339 ‐ 13,956  7,070  271,401 
Net operating income 2,597,493   5,891,920  5,801,460  2,927,603  (34,037) 17,184,440  
(1,029,910) (978,785) (1,100,349) (748,253) (2,588,172) (6,445,469)
(77,761) (1,694,520) (287,696) (414,476) (1,687,841) (4,162,293)
Administrative expenses (1,107,670) (2,673,305) (1,388,046) (1,162,729) (4,276,013) (10,607,762)
(2,597) (342,568) (90,606) (169,200) ‐ (604,972)
(5,288) ‐‐ (148,959) ‐ (154,247)
(730,042) (1,548,425) (1,129,795) (161,766) 3,570,029  ‐
Profit (loss) before tax from continuing operations 751,895   1,327,622  3,193,013  1,284,950  (740,021) 5,817,459  
Net segment revenue from external 
2,609,653  158,213  9,897,054  4,535,057  (15,537) 17,184,440  
Net segment revenue from other 
(12,159) 5,733,708   (4,095,595) (1,607,454) (18,500) ‐
Asset  Commercial  Investment  UK  Supporting 
2023 Management   Banking  Banking  operations  units  Total 
10,189  3,376,880  3,883,048  802,850  (52,238) 8,020,729  
2,475,130  1,373,071  1,577,910  474,892  15,445  5,916,447 
70,982  1,666  242,588  127,153  0  442,389 
(215) 35,732   239  0 ‐ 35,756 
52,127  281,480  13,757 ‐ 89,536  436,900 
Net operating income 2,608,213   5,068,829  5,717,542  1,404,895  52,743  14,852,222 
(1,099,077) (863,879) (1,078,325) (612,421) (2,799,897) (6,453,599)
(101,411) (1,628,797) (302,209) (521,573) (1,777,095) (4,331,085)
Administrative expenses (1,200,488) (2,492,676) (1,380,534) (1,133,994) (4,576,991) (10,784,684)
‐ (312,534) (510,900) (204,496) 440   (1,027,489)
(31,048) ‐‐‐ ‐ (31,048)
(944,653) (1,649,936) (1,405,737) (328,058) 4,328,384  ‐
Profit (loss) before tax from continuing operations 432,024   613,684  2,420,371  (261,654) (195,424) 3,009,001  
Net segment revenue from external 
2,618,572  1,311,187  8,389,039  2,465,677  67,748  14,852,222 
Net segment revenue from other 
(10,359) 3,757,642   (2,671,496) (1,060,782) (15,005) ‐
 Net interest income .................................................
 Net fee and commission income .............................
 Net financial income (expense) ..............................
 Net interest income .................................................
 Net fee and commission income .............................
 Net financial income ...............................................
 Share in profit of associates ....................................
 Other operating income ..........................................
 Salaries and related expenses .................................
 Other operating expenses .......................................
 Share in profit of associates ....................................
 Other operating income ..........................................
 Salaries and related expenses .................................
 Other operating expenses .......................................
 Net impairment .......................................................
 Revaluation of contingent consideration ...............
 Cost allocation .........................................................
    customers .............................................................
 Net impairment .......................................................
 Revaluation of contingent consideration ...............
 Cost allocation .........................................................
    customers .............................................................
    segments ...............................................................
    segments ...............................................................
 Consolidated Financial Statements 31 December 2024  20

===== SIDA 24 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
4
Income statement
5. Net  interest income
Interest income is specified as follows:
Q4 2024  Q4 2023  2024  2023 
424,721  509,132  2,351,977  1,697,958 
391,509  398,514  2,779,205  1,571,640 
4,691,963  4,250,260  19,537,955  15,315,986 
1,288,349  927,919  4,186,459  3,837,064 
8,356  780  9,194  2,593 
Total 6,804,898  6,086,605  28,864,791  22,425,240 
Interest expense is specified as follows:
Q4 2024  Q4 2023  2024  2023 
2,689,830  2,553,795  11,058,951  8,442,963 
678,260  271,473  2,743,783  1,885,625 
696,100  789,220  3,331,894  3,329,984 
87,999  121,037  597,162  529,637 
141,922  13,150  1,395,636  144,031 
13,038  6,833  56,570  72,271 
Total 4,307,148  3,755,508  19,183,996  14,404,510 
Net interest income 2,497,750  2,331,096  9,680,795  8,020,729 
6. Net  fee and commission income
Q4 2024  Q4 2023  2024  2023 
659,447  661,215  2,401,033  2,464,992 
393,813  348,670  1,419,231  1,610,664 
159,038  68,483  602,445  200,907 
463,713  453,296  2,084,088  1,777,128 
89,241  160,515  280,817  401,957 
Total fee income 1,765,252  1,692,180  6,787,614  6,455,647 
(164,320) (114,583) (651,104) (539,199)
Net fee and commission income 1,600,932  1,577,597  6,136,510  5,916,447 
Fee income is disclosed based on the nature and type of fee income generated across business segments. Information on net fee and commission
income by segment is disclosed in note 4.
 Borrowings ...........................................................................................................................................
 Subordinated liabilities ........................................................................................................................
Total interest income recognised in respect of financial assets not carried at fair value through profit or loss amounts to ISK 21,772 million ( 2023: ISK
16,840 million). Total interest expense recognised in respect of financial liabilities not carried at fair value through profit or loss amounts to IS K 17,788
million (2023: ISK 14,260 million).
 Cash and balances with Central Bank ..................................................................................................
 Derivatives ............................................................................................................................................
 Loans to customers ..............................................................................................................................
 Other interest income ..........................................................................................................................
 Fixed income securities (FVOCI) ...........................................................................................................
Asset management fees are earned by the Group for trust and fiduciary activities where the Group holds or invests assets on behalf of the customers.
Fee and commission income from capital markets and corporate finance include fees and commissions generated by miscellaneous corporate finance
service, securities, derivatives and FX brokerage as well as market making.
Fee and commission income from cards and payment solutions relate to the Group's payment facilitations services as well as the issuance of debit and
credit cards.
Fee and commission income from loans and guarantees include the Group's lending operations, notification and collection fees, as well as fees from
issuing guarantees.
 Asset Management ..............................................................................................................................
 Capital markets and corporate finance ................................................................................................
 Cards and payment solutions ...............................................................................................................
 Loans and guarantees ..........................................................................................................................
 Other interest expense* .......................................................................................................................
 Issued bonds .........................................................................................................................................
 Derivatives ............................................................................................................................................
* Thereof are lease liabilities' interest expense amounting to ISK 54 million (2023: ISK 65 million).
 Deposits  ...............................................................................................................................................
 Other fee and commission income ......................................................................................................
 Fee and commission expense ..............................................................................................................
 Consolidated Financial Statements 31 December 2024  21

===== SIDA 25 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
4
7. Net  financial income (expense)
Net financial income (expense) is specified as follows:
Q4 2024  Q4 2023  2024  2023 
Net gain (loss) on financial assets and financial liabilities mandatorily measured at fair value through profit or loss
86,802  124,431  309,546  (5,613)
17,439  (35,735) (1,116) (96,479)
356,449  (26,331) 354,232   397,168 
7,477  6,069  460,248  431,731 
4,986  (12,002) (62,080) (170,882)
34,273  (67,045) (6,446) (113,536)
Total 507,425  (10,613) 1,054,384   442,389 
8. Foreign  currency exchange difference
Foreign currency exchange difference is specified as follows:
2024  2023 
(1,325,739) 49,333  
1,319,292  (162,869)
Total (6,446) (113,536)
9. Administrative  expenses
Administrative expenses are specified as follows:
Q4 2024  Q4 2023  2024  2023 
1,705,064  1,635,531  6,445,469  6,453,599 
871,414  825,580  3,056,225  3,221,595 
230,642  261,601  871,976  900,191 
56,933  56,072  234,091  209,299 
Total 2,864,054  2,778,784  10,607,762  10,784,684 
10. Salaries  and related expenses
Salaries and related expenses are specified as follows:
Q4 2024  Q4 2023  2024  2023 
1,170,242  1,267,446  4,573,599  4,862,337 
170,485  32,360  477,506  175,326 
7,015  15,032  32,510  59,004 
185,534  172,297  641,964  655,913 
78,900  71,482  272,526  277,969 
92,887  76,915  447,364  423,050 
Total 1,705,064  1,635,531  6,445,469  6,453,599 
251  267  247  280 
9  14  9  16 
253  270  253  270 
 Fixed income securities .....................................................................................................................
 Financial assets at fair value through OCI .........................................................................................
 Foreign currency exchange difference .................................................................................................
 Shares and other variable income securities ....................................................................................
 Derivatives .........................................................................................................................................
 Loans to customers ............................................................................................................................
 (Loss) gain on financial instruments at fair value through profit and loss ...................................................................................
The figures for number of employees exclude employees of TM as a result of the reclassification of TM as a discontinued operation and an asset held for
sale. 
 Other salary related expenses ..............................................................................................................
 Tax on financial activity ........................................................................................................................
 Salaries .................................................................................................................................................
 Performance based payments excluding share‐based payments .......................................................
 Gain (loss) on other financial instruments ...................................................................................................................................
 Share‐based payment expenses ..........................................................................................................
 Pension fund contributions ..................................................................................................................
 Average number of full time employees during the year ....................................................................
 Total number of full time employees at year‐end ...............................................................................
  ‐ Thereof full time equivalents outsourced to discontinued operations during the year ..................
 Salaries and related expenses ..............................................................................................................
 Other operating expenses ....................................................................................................................
 Depreciation and amortisation ............................................................................................................
 Depreciation of right of use asset ........................................................................................................
According to Act No. 165/2011, passed in 2011, banks and other financial institutions providing VAT exempt services, must pay a tax based on salary
payments, called tax on financial activity. The current tax rate is 5.50% (2023: 5.50%).
 Consolidated Financial Statements 31 December 2024  22

===== SIDA 26 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
4
11. Employment  terms of the Board of Directors and management
Board and  Pension  Board and  Pension 
committee  contribut‐  committee  contribut‐ 
remunerat. ion  Total  remunerat.  ion  Total 
21,075  3,161  24,237  18,709  2,806  21,516 
21,165  3,094  24,259  16,124  2,366  18,489 
12,659  1,899  14,558  10,684  1,603  12,287 
15,528  2,329  17,857  13,437  1,814  15,251 
4,026  403  4,429  485  49  534 
518  52  570  485  49  534 
13,431  1,995  15,426  14,382  2,140  16,521 
Total 88,403  12,933  101,336  74,306  10,826  85,132 
Performance  Pension  Performance  Pension 
Salaries and  based  contribut‐  Salaries and  based  contribut‐ 
benefits  payments  ion  Total  benefits  payments  ion  Total 
60,000  9,450  10,469  79,919  20,685  2,000  3,051  25,735 
0  0  0  0  32,653  0  4,870  37,524 
258,509  33,022  39,874  331,404  273,049  10,000  39,241  322,290 
24,956  0  3,805  28,761  28,325  0  3,810  32,135 
49,074  0  7,350  56,423  48,893  0  10,300  59,193 
59,935  0  8,990  68,925  86,700  0  12,420  99,120 
Total 452,473  42,472  70,488  565,433  490,305  12,000  73,692  575,997 
12. Auditor's  fees
Remuneration to the Group's auditors is specified as follows:
2024  2023
188,678  184,627 
30,626  27,130 
25,101  18,734 
Total 244,406  230,491 
179,838  174,166 
The members of the BOD owned, or controlled, 18,961 thousand shares at year ‐end 2024. The CEO owned, or controlled, 4,842 thousand shares and
options for 1,517 thousand shares in the Bank at year ‐end 2024. The members of the executive committee owned, or controlled, 67,467 thousand
shares and options for 6,251 thousand shares at year‐end 2024. 
  the Risk and Remuneration committees ......................................................
 (on average 0.5), 2023: 1 (on average: 0.8)) ...........
Salaries and benefits paid to the Board of Directors, the CEO, Managing Directors, including the Deputy CEO, and other key employees of the Bank for
their work for companies within the Group are specified as follows:
The Bank has adopted a remuneration policy which covers three remuneration components, base pay, performance based incentive scheme and other
benefits, including pension fund contributions. Further information about the remuneration policy is provided in notes 64‐66.
Besides the CEO, the following were a part of the Bank's executive committee during 2024: i) Sigurður Viðarson, Deputy CEO, (until June), ii) Eiríkur
Magnús Jensson, CFO, iii) Halldór Snæland, MD of Commercial Banking (from February), iv) Bjarni Eyvinds, MD Investment Banking, v) Lilja Jensen,
General Counsel, vi) Anna Rut Ágústsdóttir, MD Operations and Development, vii) Elísabet G. Björnsdóttir, MD Risk Management and viii) Guðmundur
Þórðarson, MD Business Development (from September).
Expensed notice payments include payments during notice period for the CEO, members of executive committee and other key employees, as
applicable, which left the Group during the respective year.
Guðmundur Þórðarson, former Board member and former
Guðjón Karl Reynisson,
 Board member and chairperson
Helga Kristín Auðunsdóttir, Deputy Chairman of the Board, chairperson 
Ingunn Svala Leifsdóttir,  Board member, chairperson
  of the Audit committee and member of the Remuneration committee .....
  of the Risk committee and member of the Audit committee ......................
 Helga Jóhanna Oddsdóttir, alternate Board member ..................................
 Ármann Þorvaldsson, CEO  .....................................
 Marinó Örn Tryggvason, former CEO  .....................
2023: 6 (on average: 7.0)) ....................................... 
 Other audit related services .........................................................................................................................................................
 Thereof to the auditors of the Bank .............................................................................................................................................
Sigurður Hannesson, Chairman of the Board and member of 
2023 2024 Remuneration to the Board of Directors
  of the Remuneration committee .................................................................
Sigurgeir Guðlaugsson, Board member and member
 Other key employees (2024:2, 2023:2) ...................
Remuneration to the CEO, executive committee 
and other key employees
 Expensed notice payments .....................................
  of the Risk committee ..................................................................................
 Review of interim accounts ..........................................................................................................................................................
 Audit of annual accounts ..............................................................................................................................................................
The table above shows fees paid to Deloitte and other component auditors. Total fee paid to other component auditors for the year 2024 amounts to
ISK 65 million (2023: ISK 56 million).
2024  2023 
Managing Directors (2024: 8 (on average 7.6),
Former Managing Directors (2024: 1
  chairperson of the Risk committee ..............................................................
 Consolidated Financial Statements 31 December 2024  23

===== SIDA 27 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
4
13.
Q4 2024  Q4 2023  2024  2023 
(91,060) (826,687) (598,938) (1,025,266)
(795) 440   (3,960) 506  
772  (571) (2,073) (2,729)
Total (91,084) (826,818) (604,972) (1,027,489)
14. Income  tax
Income tax recognized in the income statement is specified as follows:
Reconciliation of effective tax rate:
2024  2023 
5,817,459  3,009,001 
21.0%  (1,221,666) 20.0%   (601,800)
(0.9%) 53,085   0.0%  0 
0.4%  (21,148) 1.0%   (29,372)
(4.5%) 260,266   (7.5%) 225,272  
(2.8%) 162,979   (0.5%) 16,226  
Effective income tax 13.2%  (766,485) 13.0%   (389,673)
15. Special  tax on financial activity
16. Special  tax on financial institutions
 Other changes ......................................................................................................................................
Net impairment
According to Act No. 155/2010 on Special Tax on Financial Institutions, certain types of financial institutions, including banks, must pay a nnually a tax
based on the carrying amount of their liabilities as determined for tax purposes in excess of ISK 50 billion at year ‐end. The tax rate is set at 0.145%
(2023: 0.145%) and the tax is not a deductible expense for income tax purposes. The tax is presented separately in the consolidated income statement. 
The special tax on financial activity is an additional income tax which becomes effective when the income tax base exceeds ISK 1,000 million. It is levi ed
on the same entities as the tax on financial activity according to Act No. 90/2003. The tax rate is set at 6.0% (2023: 6.0%) and the tax is not a deductible
expense for income tax purposes. The tax is presented separately 
in the consolidated income statement. 
Profit before tax amounts to ISK 5,817 million. Income tax amounts to ISK ‐766 million, resulting in an effective tax rate of 13.2%. This is substantially
different from the Icelandic corporate tax rate of 21%, mainly due to non‐taxable income from shares.
 Tax exempt revenues / loss ..................................................................................................................
 Non‐deductible expenses .....................................................................................................................
Income tax is recognised based on the tax rates and tax laws enacted during the current year, according to which the domestic corporate income tax
rate was 21.0% (2023: 20.0%). The temporary provision of the tax law to increase income tax to 21.0% on the tax base for the year 2024 had an
insignificant impact on the Group due to loss carry forwards. Companies within the Group, which operate outside of Iceland, recognise income tax in
accordance with the applicable tax laws in the country where they reside.
 Net change in impairment of 
other assets ...........................................................................................
 Net change in impairment of loan commitments, guarantees and unused credit facilities ...............
The Bank and some of its subsidiaries will not pay income tax on its profit for 2024 due to the fact that Group has a tax loss carry forward that offsets
the calculated income tax. At year ‐end 2024, the tax loss carry forward of the Group amounted to ISK 9.7 b illion. A substantial part of the tax loss carry
forward is utilisable until end of year 2028. Management is of the opinion that the Group's operations in the years to come will result in taxable results
which will be offset with the tax loss carry forward. The Group has therefore recognised the tax loss carry forward as a deferred tax asset in the
consolidated statement of financial position.
 Effect of tax rates change reversed due to loss carry forwards ...........................................................
 Net change in impairment of loans ......................................................................................................
 Income tax using the domestic corporation tax rate
 ...........................................................................
 Profit before tax ...................................................................................................................................
 Consolidated Financial Statements 31 December 2024  24

===== SIDA 28 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
4
17. Earnings  per share
2024  2023 2024   2023 2024   2023 
Net earnings attributable to equity holders of the Bank 4,683,371   2,288,115  3,460,071  1,730,389  8,143,442  4,018,503 
4,698,307  4,757,742  4,698,307  4,757,742  4,698,307  4,757,742 
0  279  0  279  0  279 
Total 4,698,307  4,758,021  4,698,307  4,758,021  4,698,307  4,758,021 
1.00 0.48 0.74 0.36 1.73 0.84
1.00 0.48 0.74 0.36 1.73 0.84
Q4 2024  Q4 2023  Q4 2024  Q4 2023  Q4 2024  Q4 2023 
Net earnings attributable to equity holders of the Bank 1,527,817   591,859  1,918,966  989,816  3,446,783  1,581,676 
4,658,450  4,722,073  4,658,450  4,722,073  4,658,450  4,722,073 
0  0  0  0  0  0 
Total 4,658,450  4,722,073  4,658,450  4,722,073  4,658,450  4,722,073 
0.33 0.13 0.41 0.21 0.74 0.33
0.33 0.13 0.41 0.21 0.74 0.33
The calculation of basic earnings per share is based on earnings attributable to shareholders and a weighted average number of shares outstanding
during the year. The diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume
conversion of all dilutive potential ordinary shares. The Bank has issued stock options that have 
a dilutive effect. 
 Weighted average number of outstanding shares .......................................
 Weighted average number of outstanding shares .......................................
 Adjustments for stock options ......................................................................
 Basic earnings per share (ISK) .......................................................................
 Diluted earnings per share (ISK) ....................................................................
Continuing operations Discontinued  
operations
Continuing and 
discontinued operations
 Adjustments for stock options ......................................................................
 Basic earnings per share (ISK) .......................................................................
 Diluted earnings per share (ISK) ....................................................................
 Consolidated Financial Statements 31 December 2024  25

===== SIDA 29 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
17
Statement of Financial Position
18. Cash  and balances with Central Bank
Cash and balances with Central Bank are specified as follows:
31.12.2024  31.12.2023 
12,758,682  13,479,131 
15,737  20,055 
9,725,772  6,356,998 
Included in cash and cash equivalents 22,500,191  19,856,184 
5,819,001  3,825,269 
Total 28,319,192  23,681,453 
19. Fixed  income securities
Fixed income securities are specified as follows:
Mandatorily measured at fair value through profit or loss 31.12.2024  31.12.2023 
2,713,853  2,515,820 
2,189,075  1,053,955 
722,405  114,075 
Measured at fair value through other comprehensive income
54,256,365  45,067,483 
3,453,441  14,675,118 
1,459,422  1,550,955 
Total 64,794,561  64,977,406 
20. Shares  and other variable income securities
Shares and other variable income securities are specified as follows:
Mandatorily measured at fair value through profit or loss 31.12.2024  31.12.2023 
1,100,609  512,703 
3,069,376  2,027,673 
1,262,269  1,317,103 
Total 5,432,254  3,857,480 
21. Securities  used for hedging
Securities used for hedging are specified as follows:
31.12.2024  31.12.2023 
1,904,937  1,201,377 
584,432  955,948 
9,669,279  14,258,492 
0  7,501 
442,377  428,995 
Total 12,601,026  16,852,313 
 Deposits with Central Bank ..........................................................................................................................................
Listed government bonds and bonds with government guarantees .......................................................................... 
 Cash on hand ................................................................................................................................................................
 Listed unit shares .........................................................................................................................................................
 Balances with banks .....................................................................................................................................................
 Restricted balances with Central Bank ‐ fixed reserve requirement ...........................................................................
The Bank holds mandatory reserve deposit accounts with the Central Bank of Iceland in compliance with the Central Bank’s Rules on Minimum
Reserve Requirements No. 585/2018. Under these rules the reserve requirement is divided into two parts: a fixed reserve requirement bearing no
interest and an average maintenance level requirement bearing the same interest as that on deposit ‐taking institutions’ current accounts with the
Central Bank. The mandatory reserve deposit with the Central Bank and the receivables from the Central Bank are not available for the Group to
use in its daily operations.
Listed government bonds and bonds with government guarantees ........................................................................ 
Listed bonds ............................................................................................................................................................... 
Unlisted bonds ........................................................................................................................................................... 
 Listed bonds .................................................................................................................................................................
Unlisted shares ..........................................................................................................................................................
 
Unlisted unit shares ................................................................................................................................................... 
Listed government bonds and bonds with government guarantees ........................................................................ 
 Listed shares .................................................................................................................................................................
Listed treasury bills .................................................................................................................................................... 
Listed bonds ............................................................................................................................................................... 
Listed shares .............................................................................................................................................................. 
 Unlisted unit shares ......................................................................................................................................................
 Consolidated Financial Statements 31 December 2024  26

===== SIDA 30 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
17
22. Loans  to customers
Gross Gross Gross
carrying Book   carrying Book   carrying Book  
31.12.2024  amount value amount value amount value
40,608,567  39,736,334  111,047,378  109,592,569  151,655,945  149,328,903 
0  0  873,794  873,794  873,794  873,794 
Total 40,608,567  39,736,334  111,921,172  110,466,363  152,529,739  150,202,696 
Gross Gross Gross
carrying Book   carrying Book   carrying Book  
31.12.2023  amount value amount value amount value
39,375,650  38,386,498  98,484,058  97,254,551  137,859,708  135,641,049 
58,634  58,634  623,799  623,799  682,433  682,433 
Total 39,434,283  38,445,131  99,107,858  97,878,350  138,542,141  136,323,481 
23. Derivatives
31.12.2024  Assets  Liabilities  Assets  Liabilities 
159,361  107,143  55,954  0 
34,754,643  35,671,836  455,496  1,321,348 
13,022,277  13,000,436  40,291  18,480 
0  7,386,404  0  282,967 
13,586,028  14,533,627  645,003  1,309,635 
Total 61,522,310  70,699,445  1,196,744  2,932,429 
31.12.2023  Assets  Liabilities  Assets  Liabilities 
22,573,886  21,401,149  940,860  0 
38,881,527  34,034,527  461,388  121,213 
0  4,855,756  0  152,182 
17,837,698  18,895,783  880,434  1,923,509 
0  0  215,196  0 
Total 79,293,112  79,187,216  2,497,877  2,196,904 
31.12.2024  31.12.2023 
(52,556) 0  
39,057  (65,695)
(7,811) 13,139  
Total (21,310) (52,556)
Loans to customers at amortised cost ...............
 Equity options ...................................................................................................
 Bond and equity total return swaps .................................................................
Derivatives are specified as follows:
 Currency forwards .............................................................................................
 Interest rate derivatives ....................................................................................
The breakdown of the loan portfolio by individuals and corporates is specified as follows:
TotalIndividuals
Total
 Currency forwards used for hedge accounting .................................................
Carrying amount 
 Bond and equity total return swaps .................................................................
Notional 
 Currency forwards used for hedge accounting .................................................
The hedging gain recognised in OCI before tax is equal to the change in fair value used for measuring effectiveness. There is no ineffectiveness
recognised in profit or loss.
Set out below is the reconciliation of foreign currency translation reserve component of equity due to hedge accounting and the analysis of other
comprehensive income:
 Balance at the beginning of the year ............................................................................................................................
 Foreign currency revaluation of the net foreign operations ........................................................................................
 Tax effect .......................................................................................................................................................................
 Cross ‐ currency interest rate swaps .................................................................
Loans to customers at FV through profit or loss 
CorporatesIndividuals
Corporates
 Currency forwards .............................................................................................
 Interest rate derivatives ....................................................................................
Notional 
The Group presents finance lease receivables as part of loans to customers at amortised cost. As at 31 December 2024, the book value of finance
lease receivables amounted to ISK 22,866 million (31.12.2023: ISK 21,504 million).
Loans to customers at FV through profit or loss 
Carrying amount 
Loans to customers at amortised cost ...............
 Consolidated Financial Statements 31 December 2024  27

===== SIDA 31 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
17
24. Group  entities
Share  Share 
Entity  Nature of operations  Domicile  31.12.2024  31.12.2023 
Real estate fund management Iceland   100%  100% 
Fund management Iceland   100%  100% 
Asset management Iceland   100%  100% 
Holding company Iceland ‐ 100% 
De
bt Collection Iceland  100%  100% 
Iceland  100%  100% 
Insurance company Iceland  100%  100% 
Insurance company Iceland  100%  100% 
Iceland  85%  85% 
UK  100%  100% 
UK  80%  78% 
25.
Investment in associates
a. Investment  in associates is accounted for using the equity method and is specified as follows:
Share  Share 
Entity  Nature of operations  Domicile  31.12.2024  31.12.2023 
Iceland  24%  24% 
Croatia  40%  40% 
b. Changes  in investments in associates are specified as follows: 31.12.2024  31.12.2023 
96,194  88,988 
(19,806) (27,493)
41,350  35,756 
(4,884) (1,057)
Total 112,855  96,194 
2
6. Intangible  assets
a. Intangible assets are specified as follows: Customer  Software 
31.12.2024  Goodwill  relationships  Brands  and other  Total 
17,782,646  1,731,905  264,327  2,127,485  21,906,363 
0  0  0  476,137  476,137 
0  0  0  (3,973) (3,973)
0  (166,603) (45,805) (476,254) (688,662)
1,256  1,829  430  19  3,534 
Balance as at 31 December 2024 17,783,902  1,567,131  218,952  2,123,415  21,693,400 
17,783,902  2,097,644  369,526  4, 021,898   24,272,969 
0  (530,512) (150,573) (1,898,484) (2,579,569)
Balance as at 31 December 2024 17,783,902  1,567,131  218,952  2,123,415  21,693,400 
Customer  Software 
31.12.2023  Goodwill  relationships  Brands  and other  Total 
26,041,926  2,838,993  2,276,484  2,922,498  34,079,900 
0  315,558  0  1,224,158  1,539,716 
0  0  0  (20,338) (20,338)
0  (262,726) (152,986) (700,617) (1,116,329)
(8,300,327) (1,160,429) (1,859,875) (1,294,732) (12,615,363)
41,046  509  705  (3,484) 38,776  
Balance as at 31 December 2023 17,782,646  1,731,905  264,327  2, 127,485  21,906,363 
17,782,646  2,095,815  369,096  3,617,923  23,865,479 
0  (363,910) (104,769) (1,490,438) (1,959,116)
Balance as at 31 December 2023 17,782,646  1,731,905  264,327  2,127,485  21,906,363 
Holding company
 Balance at the beginning of the year ...........................................................................................................................
 Dividend received .........................................................................................................................................................
 Share in profit of associates, net of income tax ...........................................................................................................
 Currency adjustments ..............................................................
 Accumulated amortisation and impairment losses .................
Di
gital solutions provider
 Amortisation ............................................................................
 Balance as at 1 January 2024 ...................................................
 Exchange rate difference .............................................................................................................................................
 Additions during the year ........................................................
 Skilum ehf. ........................................................
The Group does not consider its associates material, neither individually nor as a group.
 Gláma fjárfestingar slhf. ...................................
 Kvika eignastýring hf. .......................................
 * Rafklettur ehf. ................................................
 G
AMMA Capital Management hf. ....................
 Moberg d. o. o. .................................................
Business consultancy services
 Amortisation ............................................................................
 Currency adjustments ..............................................................
 Gross carrying amount .............................................................
 Reclassified as assets held for sale ..........................................
 Discontinued ............................................................................
 Balance as at 1 January 2023 ...................................................
 Discontinued ............................................................................
 Gross carrying amount .............................................................
 Accumulated amortisation and impairment losses .................
 Additions dur ing the year ........................................................
 Ortus Secured Finance ltd. ...............................
Fund management
 * TM líftryggingar hf. ........................................
Payment facilitator
* At 31 December 2023 TM tryggingar hf., Rafklettur ehf. and TM líftryggingar were classified as a disposal group held for sale in accordance with
IFRS 5. Rafklettur ehf. was sold during the year 2024.
 FÍ Fasteignafélag GP ehf. ..................................
 Straumur greiðslumiðlun hf. ............................
 Kvika Securities ltd. ...........................................
Lending operations
 AC GP 3 ehf. ......................................................
 * TM tryggingar hf. ...........................................
Th
e main subsidiaries held directly or indirectly by the Group are listed in the table below. 
 Consolidated Financial Statements 31 December 2024  28

===== SIDA 32 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
17
26. Intangible  assets (cont.)
b. Impairment  testing
Future Discount
31.12.2024  growth rate rate Book value 
3.5% 11.2% 2,943,881 
3.9% 11.3% 11,826,735 
3.5% 11.2% 1,199,761 
3.5% 9.2% 1,813,524 
Total goodwill 17,783,902 
Future Discount
31.12.2023  growth rate rate Book value 
3.5% 12.1% 2,943,881 
3.5% 11.3% 11,826,735 
3.5% 12.1% 1,199,761 
3.5% 9.4% 1,812,268 
Total goodwill 17,782,646 
27. Operating  lease assets
Operating lease assets are specified as follows:
31.12.2024  31.12.2023 
530,144  884,222 
35,693  63,792 
(260,928) (257,979)
(89,741) (159,891)
Total 215,168  530,144 
465,429  1,116,581 
(250,261) (586,437)
Total 215,168  530,144 
28. Deferred  tax assets and liabilities
31.12.2024  31.12.2023 
2,273,265  2,902,580 
(466,096) (272,615)
Net 1,807,169  2,629,966 
31.12.2024  31.12.2023 
41,393  71,166 
(78,674) (2,302)
(87,014) (30,814)
1,931,464  2,591,916 
Total 1,807,169  2,629,966 
8,748,112 
909,209 
Total 9,657,320 
Assets with indefinite useful life, such as goodwill, are not amortised but are subject to annual impairment testing as described in note 90. Goodwill
is allocated to cash generating units ("CGUs") for the purpose of impairment testing. The allocation is made to those CGUs or groups of CGUs that
are expected to benefit from the business combinations in which th e goodwill arose. Goodwill has been allocated to four CGUs, Asset
Management, Commercial Banking, Investment Banking and UK operations.
 Investment Banking ........................................................................................................................
The goodwill impairment tests were performed at the end of 2024. Their results show that the recoverable values exceed the carrying values of
goodwill. In addition to the base case testing, additional scenarios were tested where some key inputs had been stressed. In all scenarios tested the
results show that there is sufficient headroom and that there
 are no triggers indicating that impairment is necessary.
 Commercial Banking .......................................................................................................................
 Asset Management .........................................................................................................................
 Commercial Banking .......................................................................................................................
 Balance as at 1 January ................................................................................................................................................
The cash flow projections for 2024 are derived from the Group's three year business plan which has been approved by the Board of Directors. In
some instances, the Group's subsidiaries have prepared a three year business plan which has been approved by the Board of Directors of those
companies. Management prepares a five year cash flow projection for each CGU, which is derived from the three year business plan and is also
based on management assumptions. The following table shows the key assumptions used in the estimation of the recoverable amount. The
recoverable amounts are calculated by discounting the estimated future cash flow of the CGUs. The time value of money and price of uncertainty
are based on external market information about market risk, interest rates and CGU specific elements like country risk. 
 UK operations .................................................................................................................................
 Asset Management .........................................................................................................................
 Investment Banking
 ........................................................................................................................
 UK operations .................................................................................................................................
 Gross carrying amount .................................................................................................................................................
 Additions ......................................................................................................................................................................
 Disposals .......................................................................................................................................................................
 Depreciation .................................................................................................................................................................
 Accumulated depreciation ...........................................................................................................................................
 Deferred tax liabilities ..................................................................................................................................................
At year end 2024, tax losses carried forward amount to ISK 9.7 billion, and are set to expire as follows: Tax losses 
Tax losses 2018, expiring in 2028 ..............................................................................................................................................................
 Other items ...................................................................................................................................................................
Tax losses 2020, expiring in 2030 ..............................................................................................................................................................
The Group's deferred tax assets (liabilities) are attributable to the following items:
 Property and equipment ..............................................................................................................................................
 Intangible assets ...........................................................................................................................................................
 Tax losses carried forward ...........................................................................................................................................
 Deferred tax assets .......................................................................................................................................................
 Consolidated Financial Statements 31 December 2024  29

===== SIDA 33 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
17
29. Other  assets
Other assets are specified as follows:
31.12.2024  31.12.2023 
5,010,497  6,342,227 
2,860,925  2,262,226 
1,023,804  1,320,983 
612,265  475,693 
Total 9,507,492  10,401,128 
Right of use asset and lease receivables are specified as follows:
31.12.2024  31.12.2023 
1,320,983  1,576,582 
13,249  0 
(14,968) 0  
56,010  77,713 
755  2,655 
(352,225) (335,967)
Total 1,023,804  1,320,983 
30. Borrowings
Borrowings are specified as follows:
31.12.2024  31.12.2023 
13,809,473  13,691,834 
580,042  1,332,264 
Total 14,389,515  15,024,098 
31. Issued  bonds
Issued bonds are specified as follows:
First Maturity
Currency, nominal value issued Maturity type Terms  of interest 31.12.2024   31.12.2023 
Unsecured bonds:
2022 2024 At  maturity Floating, 3 month STIBOR + 2.80% 0   4,610,572 
2022 2024 At  maturity Floating, 3 month EURIBOR + 2.80% 0   1,292,489 
2021 2024 At  maturity Float., 3 mon. ICE term SONIA+1.90% 0  1,990,376 
2021 2024 At  maturity Floating, 3 month REIBOR + 0.90% 0   4,517,330 
2019 2024 Amortizing Floating,  1 month REIBOR + 1.50% 0   1,003,675 
2022 2025 At  maturity Floating, 3 month REIBOR + 1.25% 1,673,799   1,675,442 
2023 2026 At  maturity Floating, 3 month STIBOR + 4.10% 9,832,220   3,770,724 
2023 2026 At  maturity Floating, 3 month NIBOR + 4.10% 9,890,897   10,837,164 
2023 2026 At  maturity Floating, 3 month STIBOR + 4.0% 6,325,047   6,839,052 
2021 2027 At  maturity CPI‐indexed, fixed 1.0% 6,914,842   6,599,359 
2022 2032 At  maturity CPI‐indexed, fixed 1.40% 2,486,481   2,373,037 
Asset backed bonds:
2020 2024 Amortizing Fixed,  2.80% 0   206,206 
Total 37,123,285  45,715,427 
 EMTN 24 0131,  SEK 500 million ......
 KVIKA 25 1201 GB ISK 1,660 million .
 Lykill 24 06, ISK 1,570 million ...........
 EMTN 26 0511, SEK 775 million * ....
 EMTN 26 0511, NOK 800 million ......
 EMTN 26 1123 GB, SEK 500 m. .........
The Group has not had any defaults of principal, interest or other breaches with respect to its debt issued and other borrowed funds. Money market
deposits were previously presented as part of borrowings but are now presented as part of deposits. Comparative figures have been restated.
Reference is made to note 2 for further information.
 Secured borrowings .......................................................................................................................................................
 Other borrowings ..........................................................................................................................................................
* Bond issued in two tranches, first tranche SEK 275 million was issued in May 2023 at a spread of STIBOR +
 410 bps, the second tranche amounting 
to SEK 500 million was issued in May 2024 at a price corresponding to a spread of STIBOR + 240 bps.
 Indexation ......................................................................................................................................................................
 Depreciation and lease receivable instalment ..............................................................................................................
Right of use asset and lease receivables mostly consist of real estates for the Group's own use. The Group has entered into sublease contracts for
parts of the real estates which it does not use for its operations. The lease receivables are immaterial at year end. Lease liability is specified in not e
35.
 Termination of lease agreements .................................................................................................................................
 Currency adjustments ...................................................................................................................................................
 Unsettled transactions ..................................................................................................................................................
 Accounts receivable ......................................................................................................................................................
 Right of use asset and lease receivables as at 1 January ..............................................................................................
 Additions during the period ..........................................................................................................................................
 Sundry assets .................................................................................................................................................................
 Right of use asset and lease receivables .......................................................................................................................
 KVIKA 24 1119,  GBP 11.4 million .....
 KVIKA 32 0112, ISK 2,000 million .....
 KVB 19 01, ISK 5,000 million ............
 KVIKA 24 1216 GB, ISK 4,500 million 
 EMTN 24 0204,  EUR 8.5 million ......
 KVB 21 02, ISK 5,400 million ............
 Consolidated Financial Statements 31 December 2024  30

===== SIDA 34 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
17
32. Subordinated  liabilities
a. Subordinated  liabilities:
First Maturity
Currency, nominal value issued Maturity type Terms  of interest 31.12.2024   31.12.2023 
2018 2028 At  maturity CPI ‐Indexed, fixed 7.50% 0   1,123,778 
2023 2034 At  maturity CPI ‐Indexed, fixed 6.25% 2,634,489   2,011,434 
2015 2045 At  maturity CPI ‐Indexed, fixed 5.25% 2,994,493   2,857,872 
Total 5,628,982  5,993,084 
b. Subordinated  liabilities are specified as follows:
31.12.2024  31.12.2023 
5,993,084  3,686,451 
(800,000) 0  
500,000  2,000,000 
(112,500) (164,833)
(345,623) (58,171)
394,021  529,637 
Total 5,628,982  5,993,084 
33. Short  positions held
 for trading
Short positions held for trading are specified as follows:
31.12.2024  31.12.2023 
127,976  60,081 
25,025  71,664 
Total 153,001  131,745 
34. Short  positions used for hedging
Short positions used for hedging are specified as follows:
31.12.2024  31.12.2023 
0  4,230 
42,035  0 
Total 42,035  4,230 
35. Other  liabilities
Other liabilities are specified as follows:
31.12.2024  31.12.2023 
7,531,359  9,326,840 
1,565,311  2,396,243 
1,259,035  1,136,312 
1,158,332  1,510,333 
1,110,946  1,130,048 
376,753  304,045 
319,660  404,762 
17,681  15,673 
295,828  369,753 
Total 13,634,905  16,594,010 
 Accounts payable and accrued expenses ....................................................................................................................
 Lease liability ................................................................................................................................................................
 Salaries and salary related expenses ...........................................................................................................................
 Expected credit loss allowance for loan commitments, guarantees and unused credit facilities ..............................
 Other liabilities .............................................................................................................................................................
 Listed bonds .................................................................................................................................................................
 TM 15 1, ISK 2,000 million ..............
 Unsettled transactions .................................................................................................................................................
 Listed bonds .................................................................................................................................................................
 Listed government bonds and bonds with government guarantees ..........................................................................
 Withholding taxes ........................................................................................................................................................
 Balance at the beginning of the year ...........................................................................................................................
Subordinated liabilities are financial liabilities in the form of subordinated capital which, in case of the Group's voluntary or compulsory windin g‐
up, will not be repaid until after the claims of ordinary creditors have been met. In the calculation of the capital ratio, they are included within Tier
2 and are a part of the equity base. The amount eligible for Tier 2 capital treatment is amortised on a straight ‐line basis over the final 5 years to
maturity or up to 20% a year. The Group
 may only retire subordinated liabilities with the permission of the FME.
 KVIKA 34 1211 T2i, ISK 2,500 m. .....
 Paid interest .................................................................................................................................................................
 Redemption of KVB 18 02 ............................................................................................................................................
 Additions ......................................................................................................................................................................
 KVB 18 02, ISK 800 million ..............
At the interest payment date in May 2025 for TM 15 01, the a nnual interest rate increases from 5.25% p.a. to 6.25% p.a. At the interest payment
date in May 2025 for TM 15 01, the Group has the right to repay the subordinated bond and on any subsequent interest payment dates until
maturity.
At the interest payment date in the year 2029 for KVIKA 34 1211 T2i, the Group has the right to repay the subordinated bond and on any
 Paid interests due to indexation ..................................................................................................................................
 Accrued interests and indexation
 ................................................................................................................................
Listed government bonds and bonds with government guarantees .......................................................................... 
 Special taxes on financial institutions and financial activities .....................................................................................
 Contingent consideration .............................................................................................................................................
 Consolidated Financial Statements 31 December 2024  31

===== SIDA 35 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
17
35. Other  liabilities (cont.)
Lease liability is specified as follows:
31.12.2024  31.12.2023 
1,510,333  1,827,582 
13,249  0 
(14,629) 0  
1,861  4,639 
(408,492) (424,085)
56,010  102,198 
Total 1,158,332  1,510,333 
36. Share  capital
a. Share  capital
31.12.2024  31.12.2023 
4,722,073  4,781,026 
61,893  58,952 
310,000  310,000 
b. Changes  made to the nominal amount of share capital
c. Share  capital increase authorisations
During the year in 2024 the Bank's share capital was decreased by ISK 59 m illion in nominal value following a resolution by the AGM to cancel
treasury shares. Furthermore, during the year, the Bank acquired treasury shares amounting to ISK 64 million in nominal value as a result of a share
buy‐back plan. Finally, the Bank sold treasury shares amounting to ISK 2 million in nominal value to fulfill its obligations related to the excercise of
options.
 Share capital
 according to the Bank's Articles of Association .....................................................................................
 Indexation ....................................................................................................................................................................
 Authorised but not issued shares ................................................................................................................................
 Lease liability as at 1 January .......................................................................................................................................
 Termination of lease agreements ................................................................................................................................
Temporary provision II to the Articles of Association authorises the Board of Directors to increase the share capital of the Bank in stages by up to ISK
70 million in nominal value, for the purposes of fulfilling stock option agreements in accordance with the Bank's stock option plan which has been
approved by Iceland Revenue and Customs as provided for in Art. 10 of the Income Tax Act, No. 90/2003. This authorisation was valid until 31
December 2024.
A copy of the Bank's Articles of Association, including the temporary prov isions, is available on the Bank's website, www.kvika.is, reference is mad e
to them for more information.
 Instalment ....................................................................................................................................................................
Temporary provision I to the Articles of Association authorises the Board of Directors to issue options or warrants for up to ISK 240 million in
nominal value. To serve such instruments the Board of Directors is authorised to either increase the share capital accordingly or purchase own
shares, as permitted by law. This authorisation is valid until
 31 March 2027.
 Nominal amount of treasury shares ............................................................................................................................
The nominal value of shares issued by the Bank is ISK 1 per share. All currently issued shares are fully paid. The holders of shares are entitled to
receive dividends as approved by the general meeting and are entitled to o ne vote per nominal value of ISK 1 at s hareholders' meetings. Reference
is made to the Bank's Articles of Association for more information about the share capital.
 Currency adjustments ..................................................................................................................................................
 Additions during the period .........................................................................................................................................
The lease liability in mostly consist of real estates for the Group's own use. The end date of the lease agreement of the headquarter is November
2031 but with an exit clause in September 2027. The lease is linked to the Icelandic consumer price index. Right of use asset and lease receivables
are specified in note 29.
According to the Bank's Articles of Association dated 21 March 2024, 
the Board of Directors is authorised to increase the share capital as follows:
 Consolidated Financial Statements 31 December 2024  32

===== SIDA 36 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
17
37. Solvency  of financial conglomerate
Solvency ratio of the Group as a financial conglomerate is specified as follows:
Own funds  31.12.2024  31.12.2023
44,268,087  39,117,918 
18,531,702  14,754,678 
(4,551,933) (3,687,860)
Total own funds 58,247,856  50,184,737 
Capital requirements for insurance activities
10,930,329  9,622,063 
Capital requirements for non insurance activities
15,507,507  13,826,577 
6,978,378  6,913,288 
Minimum capital requirement for non insurance activities 22,485,885   20,739,865 
12,386,621  11,579,758 
(2,047,232) (1,724,074)
Total capital requirements for non insurance activities 32,825,273  30,595,549 
43,755,602  40,217,612 
1.33 1.25
 Deduction from own funds not eligible .......................................................................................................................
The FME has designated the Group as a financial conglomerate as defined in Article no. 3 of Act no. 61/2017 on Additional Supervision of Financial
Conglomerates. As a result of this designation, the Group's capital adequacy is calculated as the solvency ratio of a financial conglomerate. The
Group furthermore calculates the consolidated capital adequacy ratio for entities not belonging to the insurance sector by excluding the insurance
activities from calculation of risk ‐weighted exposures amount and capital base. The Group similarly calculates the solvency ratio of entities solely
belonging to the insurance sector. In 2023, the Group introduced a change in treatment of deductions from capital base due to significant holdings
in financial institutions and deferred tax assets. The calculations now take into account article 48 of the Capital Requirements Regulation no.
575/2013 of the EU.
Solvency measures the Group's ability to take on setbacks, thus indicating its financial strength. The available capital and capital requirements o f
the Group is calculated as a financial conglomerate according to Articles 16, 17 and 18 of Act on Additional Supervision of Financial Conglomerates
No. 61/2017. The Group's solvency ratio is 1.33, with a regulatory minimum requirement of 1.0.
 Adjustments to capital requirements in conglomerate 
...............................................................................................
 Statutory minimum capital requirement (Pillar I) ........................................................................................................
 Additional capital requirements (Pillar II) ....................................................................................................................
 Additional capital protection buffers ...........................................................................................................................
 Solvency capital requirements (SCR) ...........................................................................................................................
 Own Funds eligible for insurance activities .................................................................................................................
 Own Funds eligible for non insurance activities ..........................................................................................................
 Solvency ratio ...............................................................................................................................................................
 Total solvency capital requirements ....................................................................................................................
 Consolidated Financial Statements 31 December 2024  33

===== SIDA 37 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
17
38. Capital  adequacy ratio (CAR)
Own funds eligible for non insurance activities  31.12.2024  31.12.2023
89,517,287  81,957,804 
(2,050,479) (1,004,626)
(28,827,742) (29,040,706)
(18,895,332) (16,420,475)
(1,076,620) (1,559,045)
Common equity Tier 1 capital (CET 1) 38,667,113  33,932,952 
5,600,973  5,915,278 
0  (730,312)
Total own funds 44,268,087  39,117,918 
Risk‐weighted exposure amount (RWEA) 
158,177,636  142,648,209 
7,586,080  3,082,235 
28,080,116  27,101,765 
Total risk‐weighted exposure amount 193,843,832  172,832,209 
Capital 
ratios
22.8%  22.6% 
19.9%  19.6% 
11.6%  12.0% 
18.0%  18.7% 
12.9%  13.5% 
 Tier 2 capital .................................................................................................................................................................
The Icelandic Financial Supervisory Authority (FME) supervises the Bank on a consolidated basis and, as such, receives information on the capital
adequacy of, and sets capital requirements for, the Bank as a whole. The Bank's regulatory capital calculations for credit risk and market risk are
based on the standardised approach and the capital calculations for operational risk are based on the basic indicator approach.
Minimum capital requirement is based on the Bank's Internal Capital Adequacy Assessment Process (ICAAP) and is reviewed by the FME through
the Supervisory Review and Evaluation Process (SREP). The Bank's minimum regulatory capital requirement, based on SREP from 2024 is 11.6%.
The minimum regulatory capital requirement including the additional capital buffers is 18.0% as at 31 December 
2024.
 Capital adequacy ratio (CAR) ........................................................................................................................................
TM tryggingar hf. has been classified as a disposal group held for sale and as a discontinued operation. This does not affect the Group‘s capital
adequacy calculation. Nonetheless, assuming a cash sale of the subsidiary, the Bank’s capital would increase. To what extent the capital adequacy
ratio would increase depends on the final sale price as well as other factors, such as a potential special dividend payment or share buy ‐back
following the sale.
 Minimum Capital adequacy ratio requirement including supervisory buffers ...........................................................
 Deferred tax asset ........................................................................................................................................................
 Market risk ...................................................................................................................................................................
 Credit risk .....................................................................................................................................................................
 Deductions from Tier 2 capital .....................................................................................................................................
 Goodwill and intangibles ..............................................................................................................................................
The capital adequacy ratio of the Group, excluding entities which belong to the insurance sector, calculated in accordance with Article 84 of Act No.
161/2002 on Financial Undertakings, was 22.8%. The minimum 
requirement from the FME is 11.6%. The ratio is calculated as follows:
 Proposed dividend .......................................................................................................................................................
 Shares in other financial institutions ...........................................................................................................................
 CET1 ratio .....................................................................................................................................................................
 Minimum CET 1 ratio requirement including supervisory buffers ..............................................................................
 Total equity ..................................................................................................................................................................
 Minimum Capital adequacy ratio requirement ...........................................................................................................
 Operational risk ............................................................................................................................................................
 Consolidated Financial Statements 31 December 2024  34

===== SIDA 38 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Consolidated Financial Statements
17
39. Solvency  of insurance activities
Own funds eligible for insurance activities   31.12.2024  31.12.2023
23,232,582  19,811,796 
(5,131,678) (5,527,999)
430,798  470,881 
Total own funds 18,531,702  14,754,678 
Solvency capital requirements (SCR)
459,024  536,675 
1,723,332  1,656,139 
6,527,974  6,108,228 
7,088,319  5,770,238 
998,278  1,169,357 
(4,988,191) (4,695,651)
Basic Solvency capital requirements 11,808,737  10,544,986 
819,301  754,058 
(1,697,709) (1,676,980)
Total solvency capital requirements 10,930,329  9,622,063 
1.70 1.53
18,531,702  14,754,678 
4,778,469  4,520,510 
3.88 3.26
At 31 December 2023, the insurance operation was classified as a disposal group held for sale and as a discontinued operation.
40. Leverage  ratio
31.12.2024  31.12.2023
253,116,968  243,721,442 
2,533,012  1,187,911 
800,313  210,534 
Total exposure measure 256,450,293  245,119,887 
38,667,113  33,932,952 
15.1% 13.8%
*The Group has revised the methodology it uses to calculate derivative exposures to better align with regulation no. 575/2013. The figure for
31.12.2023 has not been restated. The impact of the revised methodology on the leverage ratio for 31.12.24 is immaterial.
 Leverage ratio ...............................................................................................................................................................
 Tier 1 capital .................................................................................................................................................................
 Market risk ...................................................................................................................................................................
 Counterparty default risk .............................................................................................................................................
 Minimum required capital ratio after dividend ...........................................................................................................
 Operational risk ............................................................................................................................................................
 Adjustment for the loss‐absorbing capacity of deferred taxes ...................................................................................
 Solvency ratio after dividend .......................................................................................................................................
 Eligible items to meet the minimum capital ................................................................................................................
 Minimum required capital (MRC) ................................................................................................................................
 Multifaceted effects .....................................................................................................................................................
 Health insurance risk ....................................................................................................................................................
 Goodwill and intangibles ..............................................................................................................................................
 Difference between net technical provision in the financial statements and solvency rules .....................................
 Life insurance risk .........................................................................................................................................................
 Non‐life insurance risk .................................................................................................................................................
 Equity eligible for insurance activities .........................................................................................................................
 On‐balance sheet exposures ........................................................................................................................................
 Derivative exposures* ..................................................................................................................................................
 Off ‐ balance sheet exposures ......................................................................................................................................
The leverage ratio is calculated on the basis of the Group's consolidated numbers as per regulation no. 575/2013 of the EU, which excludes the
Group's insurance subsidiary. According to Act no. 161/2002 on Financial Undertakings the minimum leverage ratio requirement is 3%. 
The Group calculates solvency capital and capital requirements for entities which belong to the insurance sector. The available capital and require d
capital is calculated in accordance with Articles 88 and 96 of the Act on Insurance Activity No. 100/2016. This brings the solvency ratio for entities
which belong to the insurance sector to 1.70. Solvency capital requirements according to 
law is the minimum insurance companies have to meet.
 Consolidated Financial Statements 31 December 2024  35

===== SIDA 39 =====