Årsredovisning 2024

Kvika banki hf.
Notes to the Consolidated Financial Statements
69
82. Impairment  (cont.)
Forward looking probability weighted scenarios
83. Cash  and balances with Central Bank
84. Fixed  income securities
85. Shares  and other variable income securities
86. Securities  used for hedging
The Group considers the lifetime of each exposure to be the contractual maturity of each loan. The Group considers this to be the case as any
lending subsequent to that period would be based on an independent le nding decision at that time based on the prevailing market terms. The
Group only considers contractual cash flows when estimating exposure at default. The average lifetime of the Group's exposures is relatively
short and it does therefore not consider the likelihood of prepayment when concluding on the lifetime of the assets.
Exposure at default
Expected credit loss measurement
The Group considers the off‐
balance portion of exposure at default to be 50% (credit conversion factor) of any facilities not drawn upon that are
considered committed. Such facilities include overdrafts, credit cards and guarantees. The credit conversion factor is subject to expert review on
a case by case basis. The Bank does not consider credit line facilities to be committed facilities as disbursements are subject to predetermined
conditions and constitute a separate credit review. These predetermined conditions will in most cases lead directly to an increase in posted
collateral and disbursements therefore stay within acceptable collateral coverage. 
Committed facilities
Loss Given Default (LGD). This is an estimate of the loss arising on default. It is based on the difference between the contractual cash flows due
and those that the lender would expect to receive, including from any collateral. It is expressed as a percentage of EAD and derived from value
of underlying collaterals.
Lifetime definition
IFRS 9 requires the Group to determine an expected credit loss (ECL) amount on a probability ‐weighted basis as the difference between the cash
flows that are due to the Group in accordance with the contractual terms of a financial instrument and the cash flows that the Group expects to
receive. The Group has implemented an ECL model which is consistent with regulatory and best practices. The model is based on four
components.
Probability of Default (PD) . This is an estimate of the likelihood of default over a given time horizon. The Bank uses an external PD model
developed by CreditInfo for the domestic portfolio and individual assessment done by credit specialists in special cases and for the UK portfolio.
Fixed income securities are initially measured at fair value and subsequently accounted for depending on their classification as discussed in note
79.
Exposure at Default (EAD) . This is an estimate of the exposure at a future date, taking into account expected changes in the exposure after the
reporting date, including repayments of principal and interest, 
and expected drawdowns on committed facilities.
Shares and other variable income securities consist of equity investments and unit shares in mutual funds. Shares and other variable income
securities are initially measured at fair value and subsequently accounted for depending on their classification as discussed in note 79.
Securities used for hedging consist of non ‐derivative financial assets that are used to hedge the Group's exposure arising from derivative
contracts with customers. Securities used for hedging are measured at fair value as discussed in note 79.
Cash and balances with Central Bank are carried at amortised cost in the statement of financial position.
Cash and balances with Central Bank include notes and coins on hand, balances held with the Central Bank and other financial institutions, and
highly liquid financial assets with original maturities of three months or less from the acquisition date that are subject to an insignificant risk of
changes in their fair value, and are used by the Group in the management of its short‐term commitments.
Discount rate. This is used to discount an expected loss to present value at the reporting date using the effective interest rate (EIR) at initial
recognition.
The Group's management has identified and probability weighted three macro ‐economic scenarios for the purpose of calculating expected
credit loss. The medium term domestic forecasts of macro ‐economic variables and scenario weights are based on the Group‘s management
judgement and are applied for the loan portfolios that are affected by the macro ‐economic variables. The Group incorporates the following
forward‐looking macro ‐ economic variables into its probability weighted expected credit loss calculations: (i) unemployment rate and (ii)
inflation rate. The Group has not developed macro ‐economic forecasts for the UK portfolio, but macro ‐economic forecasts effect the LGD
assessment.
 Consolidated Financial Statements 31 December 2024  71

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Kvika banki hf.
Notes to the Consolidated Financial Statements
69
87. Loans  to customers
88. Derivatives
‐
‐
‐
89. Investments  in associates
90. Intangible  assets
a.
‐
‐
‐
‐
‐
Asset categories
Customer relationships
Development cost that has been capitalised is amortized on the day that the product is launched using the straight line method over their
useful life, but not exceeding 14 years.  
Brands
Brands have been acquired as part of recent acquisitions and are capitalised and amortised using the straight line method over their useful
life, but not exceeding 20 years.
Customer relationships have been acquired as part of recent acquisitions and are capitalised and amortised using the straight line method
over their useful life of maximum 16 years.
The contract requires no initial investment or an initial investment that is smaller than would be required for other types of contracts that
would be expected to have a similar response to changes in market factors
Goodwill arises in business combinations. It is recognised as of the acquisition date and measured as the aggregate of (a) the fair value of the
consideration transferred, (b) the recognised amount of any non
‐controlling interest in the acquiree, and (c) the fair value of any previously
held equity interest in the acquiree, less the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities
assumed, all measured as at the acquisition date. The consideration transferred includes the fair value of assets transferred, liabilities
incurred and equity interests issued by the Group. In addition, consideration transferred includes the fair value of any contingent
consideration. 
Software comprise acquired software licences and external costs associated with the development of bespoke applications.
Goodwill
Derivative assets and liabilities are initially recognised and subsequently measured at fair value in the statement of financial position.
Derivatives with positive fair values are classified as financial assets and derivatives with negative fair values as financial liabilities. Reven ue
from derivatives is split into interest income and net income from financial instruments at fair value and presented in the corresponding line
items in the income statement.
Loans are non ‐derivative financial assets with fixed or determinable payments that are not quoted in an active market and include loans
provided by the Group to its customers, participation in loans from other lenders and purchased loans that are not quoted in an active market
and which the Group has no intention of selling immediately or in the near future. Finance lease receivables are a part of the line item Loans to
Customers.
Loans are initially recognised at fair value, which is the cash advanced, plus any transaction costs. Subsequently, they are measured at amortised
cost using the effective interest method. Accrued interest is included in the carrying amount of the loans and advances. The carrying amount of
impaired loans is reduced through the use of an allowance account.
When the Group purchases a financial asset and simultaneously enters in to an agreement to resell the asset, or a substantially similar asset, at a
fixed price at a future date ("reverse repo" or "stock borrowing"), the arrangement is accounted for as a loan and the underlying asset is not
recognised in the Group's statement of financial position.
A derivative is a financial instrument or another contract that falls under the scope of IFRS 9 and generally has the following three
characteristics:
Its value changes due to changes in an underlying variable, such as bond price, share price, security or price index (including CPI), foreign
currency exchange rate  or 
interest rate
Settlement takes place at a future date
The Group uses derivatives for trading purposes and to hedge its exposure to market price risk, foreign exchange risk and inflation and interest
risk arising from operating, financing and investing activities.
The Group groups intangible assets into four categories:
Software and other
Associates are those entities in which the Group has significant influence, but not control, over the financial and operating policies. Significant
influence generally exists when the Group holds between 20% and 50% of the voting power, including potential voting rights, if any. Investments
in associates are initially recognised at cost.
If the Group's share of loss exceeds its interest in an associate, the Group's carrying amount is reduced to zero and recognition of further losses
is discontinued except to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.
If the associate subsequently reports profits, the Group resumes recognising its share of those profits only after 
its share of the profits equals the 
share of losses not recognised.
The Group's share of the total recognised gains and losses of associates is included in the financial statements of the Group on an equity
accounted basis, from the date the significant influence commences until the date it ceases.
 Consolidated Financial Statements 31 December 2024  72

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Kvika banki hf.
Notes to the Consolidated Financial Statements
69
90. Intangible  assets (cont.)
b.
c.
d.
7‐16 years 
4‐20 years 
3‐14 years 
91. Operating  lease assets
92. Property  and equipment
a.
‐
‐
b.
c.
d.
An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its recoverable amount.
Impairment losses are recognised in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU,
and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. For other asse ts, an impairment loss is reversed only to the extent that the asset's
carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment
loss had been recognised.
Initial recognition
The Group uses the cost model for measurement after recognition and intangible assets are carried at cost less any accumulated amortisation
and any accumulated impairment losses. Intangible assets are reviewed for indications of impairment or changes in estimated future economic
benefits at each reporting date. If such indications exist, then the asset's recoverable amount is estimated. Goodwill is tested annually for
impairment.
Intangible assets are initially recognised at cost.
Subsequent measurement
For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that is
largely independent of the cash inflows of other assets or cash generating units (CGUs). Goodwill arising from a business combination is
allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.
Asset categories
 Customer relationships ...............................................................................................................................................................................
 Brands .........................................................................................................................................................................................................
Operating lease assets are rental agreements on vehicles and heavy equipments where the bank is the lessor. Operating lease assets are
recognised at cost less depreciation and impairment. Depreciation is calculated and recognised in t he income statement on a straight
‐line basis
based on estimated useful life, taking into account the residual value.
Intangible assets with finite useful life are amortised using the straight ‐line method over their estimated useful economic life, with the
amortisation recognised in the income statement. The estimated useful life of intangible assets is as follows:
Initial recognition
Property and equipment is initially recognised at cost, which includes direct expenses related to the purchase.
The Group recognises in the carrying amount of an item of property and equipment the cost of replacing part of such an item when that cost is
incurred if it is probable that the future economic benefits embodied with the item will flow to the Group and the cost of the item can be
measured reliably. The decision whether subsequent costs are added to the acquisition cost of property and equipment is based on whether an
identified component, or part of such component, has been replaced or not, or if the nature of the subsequent cost means a contribution of a
new component. All other costs
 are expensed in the income statement when incurred.
The Group groups tangible assets into two categories:
Real estate, which includes office and residential buildings, land and building rights
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the
estimated future cash flows, discounted to their present value using a pre ‐tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset or CGU.
Subsequent cost
 Software and other .....................................................................................................................................................................................
Depreciation of property and equipment and amortisation of intangible assets are presented together as a separate line item in administrative
expenses as disclosed in note 9. Further breakdown on depreciation of intangible assets is provided in note 26.
Amortisation
Subsequent measurement
The Group uses the cost model for the measurement after recognition and property and equipment is carried at cost less any accumulated
depreciation and any accumulated impairment losses. Property and equipment is reviewed for indications of impairment or changes in
estimated future economic benefits at each reporting date. If such indications exist, the assets are analysed to assess whether their carrying
amount is fully recoverable.
Other property and equipment, which includes automobiles for own use, furniture and fixtures, computers and other office equipment
 Consolidated Financial Statements 31 December 2024  73

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Kvika banki hf.
Notes to the Consolidated Financial Statements
69
92. Property  and equipment (cont.)
e.
15‐50 years 
3‐5 years 
93. Other  assets
94. Deposits  
95. Borrowings
96. Issued  bonds
97. Subordinated  liabilities
98. Short  positions held for trading
99. Short  positions used for hedging
100. Other  liabilities
101. Assets  and disposal groups held for sale
Short positions are obligations of the Group to deliver financial assets borrowed by the Group and sold to third parties. Short positions are
carried at fair value through profit or loss with all fair value changes recognised in the income statement under net financial income.
Short positions used for hedging are obligations of the Group to deliver financial assets borrowed by the Group and sold to third parties. Short
positions used for hedging consist of non ‐derivative financial liabilities that are used to hedge the Group's risk exposure arising from derivative
contracts with customers. Short positions used for hedging are carried at fair value through profit or loss with all fair value changes recognised in
the income statement under net financial income.
Subordinated liabilities are initially recognised at fair value less attributable transaction costs. Subsequently, they are measured at amortise d
cost using the effective interest method. Accrued interest is included in their carrying amount. 
The Group classifies an asset or disposal group as held for sale if its carrying amount will be recovered principally through a sale transaction
rather than through continuing use. For this to be the case the asset or disposal group must be available for immediate sale in its present
condition subject only to terms that are usual and customary for sales of such asset or disposal group and the sale must
 be highly probable.
Immediately before classification as held for sale, the measurement of the qualifying assets and all assets and liabilities in a disposal group is
brought up‐to‐date in accordance with applicable IFRS. Then, on initial classification as held for sale, assets and disposal groups are recognized
at the lower of carrying amount and fair value less costs to sell. Impairment losses on initial classification as held for sale are included in the
Income Statement, even when there is a revaluation. The same applies to gains and losses on subsequent remeasurement. Revaluation through
the reversal of impairment in subsequent periods is limited so that the carrying amount of the held for sale, assets or disposal groups does not
exceed the carrying amount that would have been determined had no impairment loss been recognized in prior years.
Other liabilities are measured at amortised cost, except for the contingent consideration which is measured at fair value.
When the Group sells a financial asset and simultaneously enters into an agreement to repurchase the asset, or a substantially similar asset, at a
fixed price at a future date ("repo" or "stock lending"), the arrangement is accounted for as a borrowing and the underlying asset continues to
be recognised in the Group’s statement of financial position.
Where
 parts of an item of property and equipment have different useful lives, those components are accounted for separately.
Depreciation is recognised in the income statement on a straight ‐line basis over the estimated useful lives of each component of an item of
property and equipment. The estimated useful lives are as follows:
 Real estate ..................................................................................................................................................................................................
 Other property and equipment ..................................................................................................................................................................
Deposits consist of time deposits and demand deposits, as well as money market deposits. They are recognised at amortised cost, including
accrued interest. 
Borrowings are initially recognised at fair value less attributable transaction costs. Subsequently, they are measured at amortised cost using the
effective interest method. Accrued interest is included in their carrying amount. 
Other assets are measured at amortised cost.
Depreciation
Issued bonds are initially recognised at fair value less attributable transaction costs. Subsequently, they are measured at amortised cost using
the effective interest method. Accrued interest is included in their carrying amount. 
 Consolidated Financial Statements 31 December 2024  74

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Kvika banki hf.
Notes to the Consolidated Financial Statements
69
102. Right  of use asset and lease liability
103. Financial  guarantees
104. Share  capital
a. Treasury  shares
b. Share  premium
c. Dividends  on share capital
105. Nature  and purpose of equity reserves
a. Option  reserve
b. Deficit  reduction reserve
c. Fair  value reserve
d. Translation  reserve
e. Restricted  retained earnings
f. Retained  earnings ‐ accumulated deficit
106. Earnings  per share
Acquired own shares and other equity instruments (treasury shares) are deducted from equity. No gain or loss is recognised in income
statement on the purchase, sale, issue or cancellation of treasury shares. Consideration paid or received is recognised directly in equity.
Incremental transaction costs of treasury share transactions are accounted for as a
 deduction from equity, net of any related income tax benefit.
Share premium represents excess of payment above nominal value (ISK 1 per share) that shareholders have paid for shares sold by the Group.
Dividends on share capital are deducted from equity in the period in which they are approved by the Group's shareholders meetings.
The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations ,
until the operations are sold, dissolved or abandoned.
The Group assesses whether a contract is or contains a lease, at inception of the contract. The Group recognises a right ‐of‐use asset and a
corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short ‐term leases and leases of low value
assets. For these leases, the Group recognises the l ease payments as an operating expense on a straight ‐line basis over the term of the lease.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by
using the Group's incremental borrowing rate. The right ‐of‐use assets comprise the initial measurement of the corresponding lease liability.
They are subsequently measured at cost less accumulated depreciation.
The fair value reserve represents fair value changes, net of tax, for assets held at fair value through other comprehensive income. The reserve is
released in correlation with realization of gains or losses of financial assets upon sale or derecognition. 
The deficit reduction reserve was created as a part of a share capital reduction approved by the Bank's Annual General Meeting in April 2014.
The reserve has no specified 
purpose and can only be used with the approval of a shareholders' meeting.
Retained earnings (accumulated deficit if negative) consists of undistributed profits and losses accumulated, less transfers to other reserves.
Financial guarantees are contracts that require the Group to make specified payments to reimburse the holder for a loss it incurs because a
specified debtor fails to make payment when due in accordance with the terms of a debt instrument.
Financial guarantee liabilities are initially recognised at their fair value. The guarantee liability is subsequently measured at the higher of the loss
allowance determined in accordance with IFRS 9 and the amount initially recognised less, when appropriate, the cumulative amount of income
recognised in accordance
 with the principles of IFRS 15. Liabilities arising from financial guarantees are included with provisions. 
According to the Financial Statements Act No. 3/2006 the difference between share of profit of subsidiary or associate in excess of dividend
payment or dividend payment pending, shall be transferred to a restricted retained earnings reserve, net of tax, which is not subject to dividend
payments. When shareholding in subsidiary or associate is sold or written off the restricted retained earnings reserve shall be released and the
amount transferred to retained earnings.
The Group presents basic and diluted earnings per share (EPS) data for its ordinary shares. Basic EPS is calculated by dividing the profit or loss
that is attributable to ordinary shareholders of the Bank by the weighted average number of ordinary shares outstanding during the period.
Diluted EPS is calculated by adjusting the weighted average number of ordinary shares outstanding to assume conversion of all dilutive potential
ordinary shares, which comprise share options granted to employees and issued warrants.
When development cost is capitalized a corresponding amount is transferred from retained earnings to restricted retained earnings according to
the Financial Statements Act No. 3/2006. The reserve is then transferred back to retained earnings in line with amortization of the asset through
income statement. 
The option reserve represents the cumulative charge to the income statement for options to purchase shares in the Bank granted under the
Bank's Remuneration policy, which is discussed in notes 64‐66.
 Consolidated Financial Statements 31 December 2024  75

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Kvika banki hf.
Notes to the Consolidated Financial Statements
69
107. New  standards and interpretations
108. Use  of estimates and judgements
a.
b.
c.
d.
f.
Assets and disposal groups held for sale
Assets and discontinued operations held for sale are measured at the lower of carrying amount and fair value, less cost to sell. As outlined in
note 3, this applies to a subsidiary of the Group. The fair value at the date of classification of the subsidiary was calculated using valuation
models based on discounted future cash flows that incorporated significant non ‐market observable inputs and assumptions. The use of
reasonably possible alternative inputs and assumptions to these models, in particular changes to the discount rate employed (representing the
required rate of return on equity), could have an impact on the value of these disposal groups.
Judgement is required to determine the extent to which deferred tax asse ts are recognised in the statement of financial position, based on the
likely timing and level of future taxable profits.
Fair value of financial instruments
The fair value of financial instruments that are not quoted in active markets is determined using valuation techniques which are reviewed
regularly as
 discussed in note 60. 
A number of new standards, amendments to standards and interpretations were not yet effective for the year ended 31 December 2024 and
have not been applied in the preparation of these financial statements. Early adoption of new standards and amendments is not planned.
The areas where the use of judgements and estimates has the most significant effect on the amounts recognised in the statement of financial
position or the income statement are disclosed in this note.
Impairment of financial assets
As outlined in note 82, the use of estimates and judgement is an important component of the calculation of impairment losses. The
methodology and assumptions used for estimating both the amount and timing of future cash flows are reviewed regularly to reduce any
differences between loss estimates and actual loss experience. Unfores een events could, however, result in further impairment losses which
would have a material effect on the income statement and statement
 of financial position.
Deferred tax assets
In the process of applying the Group's accounting policies, management makes use of judgements and estimates which are based on various
assumptions. These judgements and estimates can affect the reported amounts of assets and liabilities, income and expense.
Assumptions and estimates are based on historical experience and other factors, including expectations of future events that are believed to be
reasonable under the circumstances, and are reviewed on an on ‐going basis. The estimates form the basis for judgements about the carrying
value of assets and liabilities that are not readily available from other sources and actual results may differ. Judgement may also be required in
circumstances not involving estimates, e.g. when determining the substance of a particular transaction, contract or relationship.
Impairment of intangible assets
The carrying amount of intangible assets are reviewed annually to determine whether there is indication of impairment as disclosed in note 90.
If any such indication exists the asset's recoverable amount is estimated. An impairment loss is recognised if the carrying amount of an asset
exceeds its recoverable amount.
 Consolidated Financial Statements 31 December 2024  76

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77
Appendix 1:
Statement on the Corporate 
Governance of Kvika banki hf. 2024
Unaudited

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Kvika banki hf.
Statement on the Corporate Governance of Kvika banki hf. 2024
0
Investment Banking provides a range of professional services in the fields of specialised financing, securities and foreign exchange transactions and
corporate finance services. Capital Markets provide customers with com prehensive services in securities an d foreign exchange brokerage. The
Corporate Finance segment provides advice on the acquisition, sale and merger of companies and business entities, financing businesses via stock or
bond auctions, listing and delisting stocks and bonds. The Corporate Lending segment provides businesses, institutions, and investors with specia lised
lending to finance such things as real estate, real estate development, securities transactions and other investments. The division also uses the Ba nk’s
infrastructure to distribute loans to other institutional investors.
Kvika’s UK operations are operated through the subsidiary Kvika Securities Ltd. (hereinafter referred to as “KSL”). KSL, established in 2017, is a
subsidiary regulated in the United Kingdom by the Financial Supervisory Authority. KSL’s focus is on corporate finance, as well as fund and asset
management services. Further, the property lender Ortus Secured Finance Lmited, is a subsidiary of KSL and specializes in property backed lending in
the UK.
A special sustainability committee is in place at Kvika and is now composed of the CEO, CFO and managing directors of most divisions of the bank and
KES, as well as the Director of Sustainability. The subject area falls under the Operation and Development Division.
In 2024, a sustainab ility risk policy for the Kvika group was approved by the BOD, replacing the sustainability risk framework for the Kvika group from
2023. The policy forms part of the Bank’s overall risk management framework, with the Risk Management Division overseeing sustainab ility risk. As
part of the updates to the risk management framework in 2024, a position of a specialist in sustainab ility risk was added to the Risk Management
Division. Additionally, sustainability risk was elevated within the framework, becoming an independent risk factor and one of the Bank’s key risk
factors.
Commercial Banking provides businesses, institutions, and investors with general banking services. Customer’s daily banking transactions are handled
mostly via Kvika’s online banking system. Kvika’s specialized brands provide diverse financial services to customers. Aur provides individuals wi th
access to a variety of banking services and Auður offers the same group with a selection of savings accounts. In 2024, A uður also began offering
corporate accounts for legal entities and announced plans to start mortgage lending under the Auður brand in 2025. Lykill makes financing in the form
of loan and lease agreements for cars, machinery, and equipment available for individuals and companies. Kvika also operates the brand Framtíðin
exclusively online and provides mortgages to individuals in the form of secondary mortgages. Lastly, Kvika provides payment services to customers
through its brands Netgíró and Straumur. 
The Sustainability policy adopts six of the United Nations Sustainable Development Goals (SDGs) to focus on in Kvika’s operations: SDG 3 on good
health and safety; SDG 4 on quality education; SDG 5 on gender equality; SDG 9 on industry, innovations, and infrastructure; SDG 13 on climate action
and SDG 
17 on partnership for the goals.
Business strategy and values 
Kvika banki hf. (hereinafter referred to as “Kvika” or the “Bank”) is categorized as a financial conglomerate by the Financial Supervision of the Cent ral
Bank of Iceland (hereinafter referred to as “FME”). Kvika’s purpose is to increase competition and simplify customers’ finances by utilizing
infrastructure and financial strength. Kvika’s vision is to transform financial services in Iceland with mutual benefits in mind. On that journey, K vika is
guided by three values that contribute to the development of robust business relationships, long ‐term results, and active innovation. Kvika’s values are
long‐term thinking, simplicity, and courage. In accordance with those values the Bank places emphasis on thinking of the future and contributing to a
sustainable community through active participation. Emphasis is placed on putting ourselves in the customer’s shoes, rethinking things and select ing
projects that provide the most long‐term value for customers and the Bank.
Kvika offers its customers diversified financial services through four business segments: Commercial Banking, Investment Banking, Asset Managem ent
and UK operations. The business segments Asset Management and the UK operations are operated in the subsidiaries Kvika eignastýring hf. and Kvika
Securities Ltd. Kvika is also the owner of the insurance company TM tryggingar hf. In May 2024 the company was sold to Landsbankinn hf. and the
company is treated as an asset held for sale until the sales process is concluded.
Sustainability
Kvika’s purpose, as previously stated, is to increase competition in financial services and simplify customers’ finances. The Bank emphasizes long ‐term
thinking and promoting a sustainable society through active participation. In 2022, a specific sustainab ility policy was established, and relevant
supporting policies formulated or updated, such as education and profe ssional development policy, gender equality, health, and human resources
policy. 
Kvika takes the independence of its licenced subsidiaries, both with regards to management and day ‐to‐
day operations, seriously. However, Kvika, as a
parent company, is responsible for internal governance on a consolidated basis. In that context Kvika has laid down ground rules for its subsidiaries ,
both in terms of administrative structure and internal governance, through ownership policies for its significant subsidiaries and requires regul ar and
ad hoc information from the subsidiaries to the parent company. Kvika requires harmonized and professional work ethics within the Kvika group,
harmonized corporate culture, coordinated human resources working under the same conditions and that Kvika’s values are maintained within the
group to the extent allowed by law. Further reference is made to annual reports of the Bank’s subsidiaries, available at www.skatturinn.is.
Asset Management emphasises on offering clients a broad range of services for investing in Iceland as well as in foreign markets. Its aim is to provide
the best asset and fund management services, guided by clients’ long ‐term interests. Asset and fund management operations are mostly handled by
Kvika’s subsidiary, Kvika eignastýring hf. (hereinafter referred to as “KES”).
Return on equity is determined by decisions made in accordance with the Bank’s risk appetite, which reflects its profitability targets. Consequentl y,
decisions regarding the optimal composition of the balance sheet to generate income are restricted by risk appetite. Kvika’s target is a return on
tangible equity of at least 20% and keeping the capital adequacy ratio (CAR) 2‐4%
 above legal and regulatory requirements set by FME. 
Kvika’s objective is to deliver to shareholders an annual compensation equivalent to a minimum of 25% of profit, whether in the form of dividend
payments or share repurchases, under a formal buy ‐back programme, as authorised by applicable laws and decisions made at shareholders’ meetings.
When deciding on the amount of dividends or, as the case may be, the funds allocated for share buy ‐backs, care is taken to maintain Kvika’s strong
financial position, bearing in mind risks in the internal and external environment and growth prospects, to ensure that the Bank maintains a solid
capital ratio and liquidity for the future. Dividend payments are always subject to assessments of the opportunities offered by reinvesting profits in
Kvika’s operations and growth. 
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Statement on the Corporate Governance of Kvika banki hf. 2024
0
Kvika is a member of the United Nations Principles for Responsible Investment (UN PRI) and is working on integrating the principles of the UN PRI into
it’s operations, particularly within KES. Kvika is one of the founding members of IcelandSIF, an organisation for responsible investments, is a memb er of
Festa Centre for Sustainability and supports Grænvangur, which is a co‐operation forum between industry and government on climate issues and green 
solutions. Kvika is a member of the Partnership for Carbon Accounting Financials (PCAF), an industry ‐led initiative to enable financial institutions to
consistently measure and disclose GHG emissions financed by their loans and investments. In 2024, Kvika co nducted its second assessment of
estimated financed emission using the PCAF methodology and, for the first time, released a report detailing greenhouse emissions financed through i ts
loans and investments for the years 2021 and 2022.
Regulatory framework
Kvika is a financial undertaking subject to provisions of Act No. 161/2002, on Financial Undertakings, Act No 61/2017, on Additional Supervision of
Financial Conglomerates, Act No. 115/2021, on The Market for Financial Instruments, Act No. 60/2021, on Measures against Market Abuse, Act No.
108/2007, on takeovers, Act No. 45/2020, on Alternative Investment F unds, Act No. 116/2021 on undertakings for collective investment in transferable
securities, Act No. 14/2020, on Prospectus for Public Offering or Admission to Trading on a Regulated Market, Act No. 33/2013, on Consumer Lending,
Act No. 118/2016, on mortgage lending to consumers, Act No. 100/2016 on Insurance Activity, Act No. 2/1995 on Limited Liab ility Companies, the
Competition Act, No. 44/2005, Act No. 114/2021, on Payment Services, Act No. 3/2006, on A nnual Financial Statements, Act No. 140/2018, on
Measures against Money Laundering and Terrorist Financing and others. Moreover, Kvika is obliged to guarantee the safety of the personal data it
processes in its activities, in accordance with Act No. 90/2018, on the Protection of Privacy as regards the Processing of Personal Data and follows Ac t
No. 25/2023 on Sustainable Finance Disclosure. Kvika has an operating licence from FME, which supervises the activities of the Bank. Kvika’s activit ies
are therefore governed by the rules and instructions of the FME and Central Bank of Iceland. Kvika is also subjective to further extensive legislation and
secondary acts that apply to the financial market, mostly originated from Europe, and incorporated in Icelandic law through various means. More
details about FME and an overview of the principal legislation and rules that apply to the Bank at any given time can be found on the website of FME
www.fme.is.
A proposal to create a Nomination Committee was accepted at the Bank’s annual general meeting in March 2024. The committee’s rules of procedure
were also adopted, and the Bank’s Articles of Association were amended to reflect the decision. The Nomination Committee serves as an advisory body
to help shareholders make well‐informed decisions when choosing board members. The goal is to guarantee that board members have a wide range of
experience and knowledge that can help the business in its strategic planning and management, taking into account the operating environment. The
majority of the three members of the Nomination Committee must be independent of the business and its top executives. They are selected to one ‐
year terms. Helga Melkorka Óttarsdóttir and Jóhann Ásgeir Baldurs were elected to the Nomination Committee at the Annual General Meeting.
According to the rules of procedure, the newly elected board also appointed Jakobína Hólmfríður Árnadóttir.
Furthermore, Kvika’s activities comply with the recognised standards and rules of the European Banking Authority (EBA), including guidelines on
internal governance (EBA/GL/2021/05), cf. Article 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 a European Financial Supervisory System (hereinafter “EBA Guidelines”). The EBA Guidelines
can be found on FME’s website www.fme.is and on EBA’s website https://www.eba.europa.eu/homepage.   
Kvika awards a variety of grants that have a positive social impact, and the selection of projects reflects the six UN SDGs that have been adopted. In
recent years, support has been provided to UNICEF in Iceland; women and innovation with FrumkvöðlaAuður, and industrial studies and teacher
training with allocations from Kvika’s Incentive Fund. Educational support is considered to be one of the best long ‐term investments for both societies
and individuals. The year 2024 marked the final round of grants awarded by Kvika’s Incentive F und, as applications for industrial studies and teacher
training programs have increased significantly since the fund’s establishment, achieving the objective for its founding.
A more detailed discussion of the scope, position, and impact of the group regarding environmental, social and governance matters (also known as
“ESG factors”) can be found in Kvika’s sustainability report, which is published together with Kvika’s annual financial statement. The report is lar gely
based on the European Sustainability Reporting Standards of the CSRD legislation (Corporate Sustainability Reporting Directive), which has not ye t
been implemented in Iceland.
Compliance with corporate governance guidelines 
In 2024, work began with external consultants on a double materiality assessment, which is the first step in the Risk Management Division’s risk
management process for monitoring sustainability risk. The result of the double materiality assessment will form the foundation for further work in the
sustainability area in the coming year and will also serve as the basis for Kvika’s sustainability reporting for 2024.
In 2024, as part of the Model Company in Corporate Governance (“Fyrirmyndarfyrirtæki í stjórnarháttum”), the bank hired consultants to co nduct a
corporate governance review. Based on the review’s findings, Kvika was recognized in August for good corporate governance.
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, on Financial Undertakings, and with the Guidelines on Corporate Governance issued jointly in
February 2021 by the Chamber of Commerce, NASDAQ Iceland, and SA – Business Iceland. The Guidelines are available on the website of the Chamber
of Commerce www.vi.is. 
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Kvika banki hf.
Statement on the Corporate Governance of Kvika banki hf. 2024
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The main elements of internal control, risk management and accounting
The BOD is responsible for ensuring that an active system of internal control is in place within the Bank, which is based on three lines of defence. The
first line of defence consists of the management and the employees of business and supporting units in charge of the Bank’s daily management and
organization. The main responsibility of the first line of defence is to ensure the functionality and implementation of internal control measures in daily
operations. The second line of defence is comprised of the internal control units of the Bank, principally the Compliance Officer and Risk Management .
The Compliance Officer is responsible for the training of employees and the BOD, monitors and regularly assesses compliance with relevant legislati on,
monitors compliance risk, as well as consulting on implementation of laws and regulations in Kvika’s operations. Risk Management, among other
things, measures and assesses risk according to the Bank’s risk appetite and carries out regular reporting to supervisory entities. Other units may a lso
be assigned a supervisory role in the second line of defence, in line with Kvika’s policy on internal control. The third line of defence is the internal
auditor, operating independently from other units within Kvika’s organization and directly under the control of the BOD, according to a formal
statement of duties and job description of the internal audit function. The internal audit function assesses the effectiveness of risk management,
control methods and internal governance in an independent and objective manner and in accordance with internal auditing standards. Among other
things, the function prepares independent audits, verifications, and advice to the BOD and the Audit Committee.
The implementation and functioning of internal control are the responsibility of the management of the Bank. Internal control is based on risk
assessments and control measures intended to reduce risk factors in the operations of the Bank. Internal control includes documented and formal
procedures which Kvika’s employees follow in their daily work, and which are reviewed by the control units. 
The BOD determines the risk policy and risk appetite of the group within Kvika Group’s Risk Policy, which also defines main risk factors in Kvika’s
operations, including their nature and acceptable volume. The purpose of the policy is to establish an effective and transparent framework for
managing the group’s risk and risk appetite, ensuring that risk management is aligned across the group on a consolidated basis. The Kvika Group Risk
Policy stipulates that the Bank and its subsidiaries must ensure that the policy is implemented in their daily operations where applicable. It furthe r
states that Kvika and its subsidiaries shall establish risk policies addressing the main risk factors relevant to their activities. These policies m ust define a
risk
 appetite within the framework of the risk appetite outlined in the Kvika Group Risk Policy.
The CEO reports to the BOD and verifies the effectiveness of internal controls and risk management in the Consolidated Financial Statements. Interna l
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 Finance division prepares annual financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted b yt h e
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. The annual financial statements are audited by Kvika’s external auditors, Deloitte. 
The BOD hires an Internal Auditor, signs his/her formal statement of duties, and annually approves the internal audit plan. The CEO appoints the
Compliance Officer, and the BOD confirms the appointment. The CEO appoints the Managing Director of the Risk Management function. The reports
and findings of the internal control function are presented 
directly to the BOD.
Kvika’s BOD has three sub‐committees, the Audit Committee, Risk Committee and Remuneration Committee.  
The members of the Audit Committee are Helga Kristín Auðunsdóttir, as chairperson, Ingunn Svala Leifsdóttir and Margrét G. Flóvenz. The committee is
intended to play an advisory and supervisory role for Kvika’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 committee supervises accounting procedures and the effectiveness of
internal controls as well as internal and external auditing. The committee met nine times in 2024 and all members attended all meetings .  
The members of the Risk Committee are Ingunn Svala Leifsdóttir, as chairperson, Sigurgeir Guðlaugsson, which assumed a seat in the committee after
he became board member in August 2024, and Sigurður Hannesson. The committee has an advisory and supervisory role for the Bank’s BOD, among
other things, in determining its risk policy and risk appetite. The committee also monitors the organisation and effectiveness of risk management,
management of credit risk, market risk, liquidity risk, operating risk, reputational risk, and other risks, as the case may be. The committee met 11 ti mes
in 2024 and all members attended all meetings. Guðm undur Þórðarson, previous committee member and chairman, attended seven meetings and
Sigurgeir Guðlaugsson attended four meetings.
The BOD is the supreme authority in the affairs of the Bank between shareholders’ meetings. Its main duties are to supervise all of Kvika’s operations
and ensure that they are in good order at all times. The BOD is responsible for Kvika’s policy making and shall ensure that the accounting and handling
of the Bank’s assets is properly supervised. The BOD prepares plans for Kvika in line with the Bank’s objectives and in accordance with its Articles of
Association and determines the strategies to be followed to achieve the objectives set. The BOD appoints the CEO and supervises his work, e.g., by
receiving regular reports from the CEO at board meetings. The BOD annually evaluates the CEO’s work in a documented manner. The BOD also
represents the 
Bank before courts and government authorities and allocates authority to sign and to commit the Bank. 
Kvika’s BOD and control units regularly verify the effectiveness of internal controls and risk management.
Composition and activities of the BOD, Executive Committee, and sub‐committees
Each year Kvika’s annual general meeting elects the BOD consisting of five board members and two alternates. 
Board members come from varied backgrounds, and all possess extensive experience and expertise. In accordance with the Act on Limited Liability
Companies No. 2/1995, the Bank’s Articles of Association and Kvika’s policy for assessing the eligib ility of its board members and CEO care is taken to
ensure at least 40% representation of each gender on the BOD and mong the alternates. The BOD is currently comprised of three men and two women.
In 2024, Guðm undur Örn Þórðarson, deputy chairman of the BOD, was appointed to the new position of Managing Director of Business Development
and stepped down as board member simultaneously. Sigurgeir Guðlaugsson, alternate board member, assumed his position as board member and
Helga Kristín Auðunsdóttir was elected deputy chairperson of the BOD.
Regular board meetings are generally held once a month and, as the case may be, additional meetings in between to discuss specific matters. In 2024,
21 board meetings were held and all current board members attended all board meetings, except for two meetings where one board member was
absent in each instance. The Chairman attended all meetings of the BOD. 
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Kvika banki hf.
Statement on the Corporate Governance of Kvika banki hf. 2024
0
Kvika has adopted a policy for assessing the eligibility of its board members and CEO as provided for in EBA guidelines and pursuant to Art. 52 of Act
No. 161/2002 on Financial Undertakings, provisions of Rules No. 150/2017 on assessment of eligib ility of managing directors and directors of financial
undertakings and the guidelines. It addresses, inter alia, Kvika’s policy on the diversity of its BOD, Executive Committee, and senior management wi th
regard to age, gender and educational and professional background. The composition of the BOD is also dealt with in Kvika’s Articles of Association,
which state, among other things, that its BOD shall be so comprised that its members jointly possess adequate expertise, skills, and experience to
understand the activities of the Bank, including key risk factors. Kvika has also adopted a Human Resources Policy and Equality Policy. According to t he
Bank’s Equality Policy, non‐discrimination and diversity shall characterise all its operations. All employees should have the opportunity to make good
use of their abilities at work and be valued on their own merit, have equal opportunities, and enjoy the same rights in their work and for career
advancement, regardless of gender, age and origin. The status and opportunities of individuals shall be equal regardless of gender, race, nationali ty,
religion, age, or other irrelevant factors when it comes to employment in management positions and participation in working groups, boards and
committees.
Guðjón Reynisson was appointed to Kvika’s BOD in March 2018. He was born in 1963 and works as an independent investor and board member.
Between 2008 and 2017 he served as CEO of Hamleys of London. From 2003 to 2008, he served as managing director of the 10 ‐11 stores. From 1998 to
2003 he was the managing director of the sales division of Tal, an Icelandic phone company. He graduated with an MBA degree from the University of
Iceland in 2002. He graduated with an Operations and Business degree from the Continuing Education Study of the University of Iceland in 1999 and
graduated with a degree as a licensed physical education teacher from the University of Iceland in 1986. Guðjón has been on the board of directors of
Festi hf. since 2014, of Securitas hf. since 2018 and of Dropp ehf. since 2020. In 2024 Guðjón also took seat on the board of the private equity fund
Harpa Capital Partners II. Guðjón controls 10,410,789 shares in Kvika through his private limited company, Hakk ehf., but does not have interest link s
with major clients, competitors, or big shareholders in the sense of the corporate governance guidelines and is also independent from the bank in
sense of the guidelines.
Helga Kristín Auðunsdóttir is the deputy chairperson of the BOD. She was appointed to Kvika’s BOD in April 2021. She was born in 1980. Helga Kristín
is a doctor in Law from Fordham University in New York. In her doctoral studies at Fordham University she researched corporate governance and hedge
fund investments. Helga Kristín graduated with BS in Business Law from Bifröst University in 2004 and with a master’s degree in law from the same
university in 2006. She graduated with an LL.M degree in law from the University of Miami, with a focus on international business law and contracts in
2010. Helga Kristín is an assistant professor at the Department of Law at Reykjavík University. Before that, she worked as a director and assistant
professor at Bifröst University, as a lawyer for Stoðir hf., as a lawyer for FGM/Auðkenni, now part of the Central Bank of Iceland and as a lecturer at the
faculty of law at University of Miami. Helga Kristín has been a member of the board of directors of TM tryggingar hf. from 2023 and in the years 2020 ‐
2021. She was also an appointed alternate on the board of directors of Tryggingamiðstöðin hf. in 2012 ‐2015. Helga Kristín does not own shares in the
Bank and does not have interest links with major clients, competitors, or big shareholders in the sense of the corporate governance guidelines and is
also independent from the bank in sense of the guidelines.  
The members of the Remuneration Committee are Guðjón Reynisson, as chairperson, Sigurður Hannesson, and Helga Kristín Auðunsdóttir. The
committee has an advisory and supervisory role for the Bank’s BOD regarding salaries and other remuneration, ensuring that this supports the Bank’s
objectives and interests. The committee met eight times in 2024 and all members attended all meetings.
All the BOD’s sub‐committees have established rules of procedure prescribing the implementation of their tasks in detail and endorsed by the BOD.
The BOD appoints sub ‐committee members by majority vote from its own ranks and nominates the chairpersons. Because of the nature of the
committees, neither the CEO nor other employees can serve on them. The ru les of procedure of the committees and the BOD are accessible on Kvika’s
website www.kvika.is.
The members of Kvika’s Executive Committee, in addition to the CEO are the following employees: Anna Rut Ágústsdóttir, Managing Director of
Operations and Development, Bjarni Eyvinds Þrastarson, Managing Director of Investment Banking, Elísabet Guðrún Björnsdóttir, Managing Directo ro f
Risk Management, Eiríkur Magnús Jensson, CFO, Guðmundur Þórðarson, Managing Director of Business Development, Halldór Snæland, Managing
Director of Commercial Banking, and Lilja Jensen, General Counsel. Additionally in the group’s Executive Committee is Hannes Frímann Hrólfsson, CE O
of KES. More details about the Executive Committee are accessible on Kvika’s website www.kvika.is. 
The CEO can provide more detailed information on the rules of procedure and the operations of the BOD and sub‐committees. 
Information on Board members
Sigurður Hannesson is the chairman of the BOD. He was appointed to Kvika’s BOD in March 2020. He was born in 1980 and is currently the Director
General of the Federation of Icelandic Industries. From 2013‐2017, Sigurdur worked as a managing director of Kvika’s (previously MP Bank’s) asset
management division. In 2015, Sigurdur was the Vice ‐Chairman of the Government Task Force on lifting of capital controls and in 2013 the Chairman of
the Expert Group on household debt relief. From 2010 ‐2013, Sigurdur worked as CEO of Jupiter fund management company, now Kvika eignastýring,
and in Capital Markets at Straumur Investment Bank from 2007 ‐2010. Sigurdur holds a DPhil degree in mathematics from the University of Oxford, a BS
degree in mathematics from the University of Iceland and is a certified securities broker. Sigurður also sits on the boards of Iceland Symphony
Orchestra, Grænvangur (Green by Iceland), Reykjavík University, Skólastræti and the Icelandic Cancer Society. Sigurður owns 8,550,107 shares in t he
Bank through shareholding in the private limited company BBL 39 ehf., but does not have interest links with major clients, competitors, or big
shareholders in 
the sense of the corporate governance guidelines and is also independent from the bank in sense of the guidelines. 
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Kvika banki hf.
Statement on the Corporate Governance of Kvika banki hf. 2024
0
Communications between shareholders and the BOD
Ingunn Svala Leifsdóttir was appointed to Kvika’s BOD in September 2021. Ingunn was born in 1976. She graduated with a BS degree in Business from
the University of Iceland in 1999, with a focus on accounting and finance, and with a Cand. Oecon business degree from the same University in 2001,
with a focus on accounting and management. Ingunn Svala completed the Advanced Management program (AMP) from the IESE Business School in
New York in 2018. Ingunn Svala currently works as a chief executive officer at Olís. Prior to that she worked as a COO for Dohop and as an executive
director of operations at Reykjavík University. Ingunn Svala also has extensive experience from the financial sector. She worked for the Kaupthing’ s
Resolution Committee as Chief Financial Officer from 2009 to 2011 as well as working as a Global Business Controller in Investment Banking at
Kaupþing bank in 2007 to 2009. Ingunn Svala also worked within the Actavis Group PTC consolidation in 2006 to 2007 as a CFO for four subsidiaries,
namely Actavis hf., Medís ehf., Actavis Group hf. and Actavis Group PTC eh f. Ingunn Svala has extensive experience of serving as a board member and
has previously served on the boards of Ósar – lifeline of health hf. and of its subsidiary, Parlogis ehf., as well as Slippurinn Akureyri and Lífís, a
subsidiary of VÍS. Ingunn Svala does not own shares in the Bank and does not have interest links with major clients, competitors, or big shareholders in
the sense of the corporate governance guidelines and is also independent from the bank in sense of the guidelines.
Main factors in the BOD’s performance evaluation
Helga Jóhanna Oddsdóttir is an alternate member of the BOD. In the opinion of the BOD, she is also an independent member of the BOD within the
meaning of the corporate governance guidelines. 
The BOD considers all board members to be independent 
as defined by the corporate governance guidelines.
Sigurgeir Guðlaugsson, who was elected as an alternate board member at Kvika’s AGM in 2024, joined Kvika’s BOD in August 2024. Sigurgeir was born
in 1976. He graduated with a B.Sc. degree in international business from the Copenhagen Business School in 1999 and was CEO of biotechnology
company Genís hf. until at year ‐end 2024. Sigurgeir worked for the corporate banking division of Fjárfestingabanki atvi nnulífsins, later Íslandsbanki,
between 1999‐2003. He also worked for Actavis Group between 2003 ‐2006 where he was head of global mergers and acquisitions. Sigurgeir was
managing director of investments in the healthcare industry for Novator between 2006‐2009. He founded the consulting company Citalfort Consulting
slf. at year‐end 2009 and worked for the company until year ‐end 2021, when he assumed the position of CEO of Genís, excluding the years between
2013‐2016, when he was partner and employee of H.F. Verðbréf hf. in the year 2013, and CEO of biotechnology company Zymetech ehf. between 2014
‐
2016. Sigurgeir has, among others, been a member of the board of directors of Straumur fjárfestingarbanki hf., Coripharma Holding hf., Actavis Group
hf., Actavis Inc., Enzymatica AB, 3Z ehf., FlyOver Iceland ehf. and Scandinavian Biogas AB. Today Sigurgeir is the chairman of the board of directors o f
Citalfort Consulting slf., Altius ehf., Citius ehf. and Ögurás ehf. Sigurgeir does not own any shares in the Bank and does not have interest links with
major clients, competitors, or big shareholders in the sense of the corporate governance guidelines and is also independent from the bank in sense of
the guidelines.  
Information is provided to shareholders on a non ‐discriminatory basis and is mainly limited to shareholders’ meetings or the communication of
harmonised information to all shareholders simultaneously. News of the Bank’s operations are posted on Kvika’s website and press releases are issue d
in accordance with disclosure obligations of issuers of shares when newsworthy events in the Bank’s operations take place. A detailed presentation o f
the Bank’s operations over the past year is also provided at its AGM and information on the Bank’s operations is published in Kvika’s annual report and
financial statements. 
This statement on the corporate governance practices of Kvika banki hf. was reviewed and approved by the BOD on 12 February 2025.
The BOD annually evaluates its performance. It evaluates the performance of tasks and work of the BOD for the previous year. The focus of the
assessment is on strategic planning, disclosure and future vision, the size and composition of the BOD, performance of board members, the work of
sub‐committees and performance of the CEO, the internal auditor, and the secretary of the BOD. The development of the Bank is reviewed to assess
whether it is line with objectives. Following the annual performance assessment, the BOD defines tasks in areas where improvements are needed. The
last performance assessment was conducted in December 2024. The BOD also regularly co nducts special self ‐assessments on its composition in
accordance with the guidelines of the European Banking Authority (EBA), and last did so in December
 2024.  
Information on the CEO of Kvika and his main duties
Ármann Þorvaldsson became CEO of Kvika in August 2023. Ármann was born in 1968 and previously worked as CEO in the years 2017 ‐2019 and Deputy
CEO in the years 2019‐2022. Ármann has worked in the financial market for nearly thirty years. From 1997 until 2005 he was Head of Corporate Finance
at Kaupthing and in 2005 until 2008 he was CEO of Kaupthing Singer & Friedlander in London. Later he worked at Ortus Secured Finance in London until
2015 when he joined Virðing. Ármann headed up Virðing’s Corporate Finance division before joining Kvika. Ármann has an MBA degree from Boston
University and a BA degree in history from the University of Iceland. Ármann controls 759.892 shares in Kvika and has also entered into call option
agreements with Kvika in accordance with Kvika’s remuneration policy and incentive scheme. Further, Ármann and his family own the company BMA
ehf. which controls 4,082,158 shares in the Bank. He does not have interest links with major clients, competitors or major shareholders as defined by
the corporate governance guidelines. 
The CEO oversees the daily operations of Kvika and in so doing follows the policies and instructions which have been laid down by the Bank’s BOD.
Daily operations do not include unusual or major arrangements. The CEO shall ensure that Kvika’s accounts are kept in accordance with laws and
customs and that the Bank’s assets are handled in a secure manner. The CEO appoints and dismisses employees of the Bank. Furthermore, he is
required to follow all of the BOD’s instructions. The CEO shall provide Kvika’s external auditors with all requested information. 
Information on violations of laws and regulations, determined by the relevant supervisory body 
or adjudicating entity
Kvika has not been subject to withdrawal, revocation or dismissal of registration, authorization, membership, or permissions to perform certain tr ades,
operations or work. Kvika was not fined by any supervisory body in the year 2023. As per usual the FME performed onsite inspections in 2024. Results
are still pending in individual cases. No court cases or arbitration proceedings which may have significant effects on the Bank, or the Group, were
ongoing or pending at the end of the year.
 Consolidated Financial Statements 31 December 2024  82

===== SIDA 86 =====

83
Appendix 2:
EU Taxonomy Regulation
Unaudited

===== SIDA 87 =====

Kvika banki hf.  Amounts are in ISK thousands
EU Taxonomy Regulation
Loans to companies
Loans to individuals
Limitations of the 2024 Reporting
2 The delegated regulation on the technical criteria that economic activities must meet to be considered as significantly contributing to climate change mitigation and adaptation, and determining when an economic activity causes significant harm to one or more of the regulation's 
objectives.
During the year work continued on implementing Regulation (EU) No. 2020/852 (hereinafter referred
to as the "EU Taxonomy") and delegated regulations that have entered into force in Iceland into the
Bank's operations. The EU Taxonomy was incorporated into Icelandic law with Act No. 25/2023 on
Sustainability Disclosure in Financial Services and the Classification System for Sustainable
Investments. According to Article 8 of the EU Taxonomy companies subject to its provisions, including
Kvika, are required to disclose how and to what extent their activities are linked to economic activities
considered environmentally sustainable.
Kvika is now reporting its Green Asset Ratio (GAR) for the second time in accordance with the
requirements of the EU Taxonomy. The information i s presented in templates specified in the annexes
to the EU’s delegated regulations,
1 as provided later in this document for the Bank and Kvika Asset
Management. The templates were recently updated and now reflect all six environmental objectives
of the EU Taxonomy. However, Kvika is only disclosing information for the first two environmental
objectives—climate change mitigation and climate change adaptation—as the remaining four
objectives did not take effect in Iceland until January 1, 2025. Information covering all six
environmental objectives will be included in the sustainability disclosures for the financial year 2025.
Eligible assets under the EU Taxonomy are assets linked to activities specified in the delegated
regulations of the EU Taxonomy, for which technical criteria exist to assess whether the activity is
environmentally sustainable and therefor taxonomy aligned. Kvika’s eligible assets, as defined by
Delegated Regulation (EU) No. 2021/2139,
2 include loans to companies subject to the non ‐financial
reporting obligation under Article 66(d) of the Annual Accounts Act No. 3/ 2006, as well as loans to
households (primarily loans for motor vehicles and residential real estate). For eligible assets to be
considered environmentally sustainable and included in Kvika’s GAR calculation, they must meet four
key criteria. 
Companies subject to the non ‐financial reporting obligation under Article 66(d) of the Annual Accounts Act are those
considered large and of public interest. They are also required by law to disclose information and key performance
indicators in accordance with the requirements of the EU Taxonomy. Companies that fall under this definition published
such information for the first time in 2024 for the financial year 2023. Financial institutions are required to use
counterparty data to calculate their GAR and must therefore rely on the information from such companies that are
included in their investment and loan portfolios. Kvika’s loan portfolio is structured in such a way that a large portion of its
corporate loans are granted to small and medium ‐sized companies that do not meet the aforementioned criteria. As a
result, a very small portion of Kvika´s corporate loans are eligible to be put under the alignment test and Kvika´s GAR
calculation. 
Loans related to motor vehicles (6.5: transport with motorcycles, passenger cars, and light commercial vehicles) are
considered eligible activities, as previously mentioned. A significant portion of Kvika’s loans to individuals fall under this
category. However, not all loans are included, as only those issued after June 1, 2023, qualify, which is when the EU
Taxonomy came into effect in Iceland. For a loan for motor vehicles to be classified as environmentally sustainable and as
significantly contributing to climate change mitigation, the emissions of the vehicles in question must be below 50g
CO₂/km. Additionally, the activity must not cause harm to other environmental objectives. To assess this, information on
various aspects of the underlying vehicles, such as their equipment and specifications, must be collected. However, such
information is not always readily available. For this reason, Kvika has not classified this type of loan as environmentally
sustainable and they are excluded from the Bank´s GAR.
Kvika maintains a relatively modest portfolio of real estate ‐backed loans. While these loans fall within the scope of the EU
Taxonomy as loans related to eligible activities, they are currently not considered environmentally sustainable and
taxonomy aligned. For a mortgage to be classified as environmentally sustainable, information on the energy efficiency of
the buildings associated with the loan is required. Energy efficiency is based on energy performance certificates as defined
in EU Directive No. 2010/31 on the energy performance of buildings. However, Iceland is exempt from implementing this
directive. No formal energy performance certificates have therefore been issued for Icelandic buildings. Due to this lack of
data, mortgages do not meet the technical screening criteria to be classified as environmentally sustainable and are
therefore excluded from Kvika’s GAR calculations.
‐ The activity related to the loan must significantly contribute to one or more of the environmental
objectives of the EU Taxonomy (so far only two of th e six objectives have been considered at Kvika, as
required by law).
‐ The activity must comply with the technical screening criteria set out in the delegated regulations.
‐ The activity must be conducted
 in accordance with minimum safeguards.
‐ The activity must not significantly harm other environmental objectives established in the EU
Taxonomy.
The implementation and follow ‐up of the EU Taxonomy is still evolving, and it is anticipated it will take time to enhance
data flow and develop data collection, analysis, and reporting. As companies gain experience with the disclosure
requirements associated with the EU Taxonomy it will become cl earer how effective key indicators, such as the GAR, will
be. The technical criteria tailored to different industries will also prove useful in considering green financing in the future.
Kvika will continue to monitor the development of the EU Taxonomy both in Iceland and in Europe as part of the
company’s sustainability journey.
1 The information has been prepared in accordance with the templates in the annexes to Delegated Regulation (EU) No. 2021/2178, which specifies the content and presentation of disclosures that companies must provide regarding environmentally sustainable economic activities 
and the methodology for complying with this disclosure obligation. Regulation 2021/2178 was implemented in Iceland through Regulation 10/2024 on the classification system for sustainable investments. On January 1, 2024, Regulation 10/2024 was amended by Regulation 
1207/2024, which, among other things, incorporated Delegated Regulation (EU) No. 2023/2486 on additions to the EU Taxonomy and Regulation (EU) 2021/2178. Regulation 2023/2486 introduces additions to the EU Taxonomy by establishing technical screening criteria to 
determine the conditions under which economic activities are considered to contribute significantly to the sustainable use and protection of water and marine resources, the transition to a circular economy, pollution prevention and control, or the protection and restoration of 
biodiversity and ecosystems. It also defines whether such activities cause significant harm to any other overarching environmental objectives. Additionally, it includes amendments to Regulation (EU) 2021/2178 regarding specific public disclosure requirements for these economic 
activities. The delegated regulation sets out the technical criteria that economic activities must meet to be considered as significantly contributing to climate change mitigation and adaptation, as well as when an economic activity causes significant harm to one or more of the 
regulation’s objectives.
 Consolidated Financial Statements 31 December 2024  84

===== SIDA 88 =====

Kvika banki hf.  Amounts are in ISK thousands
Annex VI ‐ Template for the KPIs of credit institutions
Name 
* For credit institutions that do not meet the conditions of Article 94(1) of the CRR or the conditions set out in Article 325a(1) of the CRR
** Fees and Commissions and Trading Book KPIs shall only apply starting 2026. SMEs´inclusion in these KPI will only apply subject to a positive result of an impact assessment.
0. Summary  of KPIs to be disclosed by credit institutions under Article 8 Taxonomy Regulation
Total environmentally sustainable assets KPI**** KPI*****
% of assets excluded 
from the numerator of 
the GAR (Article 7(2) 
and (3) and Section 
1.1.2. of Annex V)
% of assets excluded 
from the denominator 
of the GAR (Article 7(1) 
and Section 1.2.4 of 
Annex V)
31.12.2024 Main KPI Green  asset ratio (GAR) stock 0.0% 0.0% 65.2% 24.6%
31.12.2023 Main  KPI Green  asset ratio (GAR) stock 0.0% 0.0% ‐‐
Total environmentally sustainable activities KPI KPI
% of assets excluded 
from the numerator of 
the GAR (Article 7(2) 
and (3) and Section 
1.1.2. of Annex V)
% of assets excluded 
from the denominator 
of the GAR (Article 7(1) 
and Section 1.2.4 of 
Annex V)
Additional KPIs GAR  (flow) 0.0% 0.0%
Trading book*
Financial guarantees 0.0% 0.0%
Assets under management 0,8% 1.0%
Fees and commissions income**
* For credit institutions that do not meet the conditions of Article 94(1) of the CRR or the conditions set out in Article 325a(1) of the CRR
**Fees and commissions income from services other than lending and AuM 
*** % of assets covered by the KPI over banks´ total assets
****based on the Turnover KPI of the counterparty
*****based on the CapEx KPI of the counterparty, except for lending activities where for general lending Turnover KPI is used
Note 1: Across the reporting templates: cells shaded in black should not be reported.
% coverage (over total 
assets)
75.4%
74.8%
0
38,4%
0
6** KPI  on fees and commissions income from services other than lending and asset management*
7** KPI  Trading book portfolio*
% coverage (over total 
assets)***
3 GAR  KPI stock
4 GAR  KPI flow
5 KPI  off‐balance sheet exposures
2 GAR  sector information
Template number
0 Summary  of KPIs
1 Assets  for the calculation of GAR
548,621
0
0
 Consolidated Financial Statements 31 December 2024  85

===== SIDA 89 =====

Kvika banki hf.  Amounts are in ISK thousands
1. Assets  for the calculation of GAR ‐ Turnover‐based
ab c d e f g h i j k l m n o p
Of which Use 
of Proceeds
Of which 
transitional
Of which 
enabling
Of which 
Use of 
Proceeds
Of which 
adaptation
Of which 
enabling
Of which Use 
of Proceeds
Of which 
transitional/
adaptation
Of which 
enabling
GAR ‐ Covered assets in both numerator and 
denominator****
1
Loans and advances, debt securities and equity 
instruments not HfT eligible for GAR 
calculation 36,033,801  12,464,828  12,464,828 
2 Financial undertakings 1,256,872 
3 Credit  institutions 1,665 
4 Loans  and advances 1,665 
5 Debt  securities, including UoP 0 
6 Equity  instruments 0 
7 Other  financial corporations 1,255,207 
8o f  which investment firms 0 
9 Loans  and advances 0 
10 Debt  securities, including UoP 0 
11 Equity  instruments 0 
12 of  which  management companies 1,255,207 
13 Loans  and advances 1,255,207 
14 Debt  securities, including UoP 0 
15 Equity  instruments 0 
16 of  which insurance undertakings 0 
17 Loans  and advances 0 
18 Debt  securities, including UoP 0 
19 Equity  instruments 0 
20 Non‐financial undertakings 66,811 
21 Loans  and advances 66,811 
22 Debt  securities, including UoP 0 
23 Equity  instruments 0 
24 Households* 33,209,208  12,464,828  12,464,828 
25 of which loans collateralised by residential 
immovable property 1,674,898  1,674,898  1,674,898 
26 of  which building renovation loans 0 
27 of  which motor vehicle loans** 20,089,250  10,789,929  10,789,929 
28 Local governments financing 1,465,916 
29 Housing  financing
30 Other  local government financing 1,465,916 
31
Collateral obtained by taking possession: 
residential and commercial immovable 
properties  0 
32
Assets excluded from the numerator for GAR 
calculation (covered in the 
denominator)***** 231,175,055 
ISK Thousand
Disclosure 31.12.2024
Total gross 
carrying amount 
Climate Change Mitigation (CCM) Climate  Change Adaptation (CCA) TOTAL  (CCM + CCA)
Of which towards taxonomy relevant sectors (Taxonomy‐eligible) Of  which towards taxonomy relevant sectors (Taxonomy‐eligible) Of  which towards taxonomy relevant sectors (Taxonomy‐eligible)
Of which environmentally sustainable (Taxonomy‐
aligned)
Of which environmentally sustainable (Taxonomy‐
aligned)
Of which environmentally sustainable (Taxonomy‐
aligned)
 Consolidated Financial Statements 31 December 2024  86

===== SIDA 90 =====

Kvika banki hf.  Amounts are in ISK thousands
1. Assets  for the calculation of GAR ‐ Turnover‐based (cont.)
ab c d e f g h i j k l m n o p
Of which Use 
of Proceeds
Of which 
transitional
Of which 
enabling
Of which 
Use of 
Proceeds
Of which 
adaptation
Of which 
enabling
Of which Use 
of Proceeds
Of which 
transitional/
adaptation
Of which 
enabling
33 Financial and Non‐financial undertakings 115,644,045 
34 SMEs and NFCs (other than SMEs) not 
subject to NFRD disclosure obligations 78,017,062 
35 Loans  and advances
78,017,062 
36 of which loans collateralised by 
commercial immovable property 30,408,596 
37 of  which building renovation loans 0 
38 Debt  securities 0 
39 Equity  instruments 0 
40 Non‐EU country counterparties not 
subject to NFRD disclosure obligations 37,626,982 
41 Loans  and advances 37,626,982 
42 Debt  securities 0 
43 Equity  instruments 0 
44 Derivatives 13,797,770 
45 On demand interbank loans 9,725,772 
46 Cash and cash‐related assets 15,737 
47 Other categories of assets (e.g. Goodwill, 
commodities etc.) 91,991,731 
48 Total GAR assets 267,284,618  12,464,828  12,464,828 
49 Assets not covered for GAR calculation****** 87,339,675 
50 Central governments and Supranational 
issuers 63,335,139 
51 Central banks exposure 18,577,682 
52 Trading book 5,426,854 
53 Total assets 354,594,543  12,464,828  12,464,828 
54 Financial  guarantees 33,177  0 
55 Assets  under management *** 73,033,583  10,563,881  548,621  468,457  10,563,881  548,621  468,457 
56 Of  which debt securities  26,444,660  1,619,340  542,001  461,837  1,619,340  542,001  461,837 
57 Of  which equity instruments  46,588,924  8,944,541  6,620  6,620  8,944,541  6,620  6,620 
*Households  include all retail loans issued to individuals
**Motor vehicle loans for households include cars in vehicle groups (M1) and (N1)
**For motor vehicle loans, only exposures generated after 1 June 2023 (the date of application of the disclosure) are included
*** Assets held within portfolios managed by Kvika Asset Management that are subject to Non‐Financial Reporting Directive (NFRD) disclosure obligations
1) GAR  ‐ Covered assets in both numerator and denominator: Accounting categories of financial assets used for the calculation of the green asset ratio.
32)
49) Other  assets not covered for GAR calculation: The exposures to central governments, central banks and supranational issuers shall be excluded from the calculation of the numerator and denominator of key performance indicators of financial undertakings.
Other assets excluded from the numerator for GAR calculation (covered in the denominator): Certain assets are excluded from the numerator e.g. financial assets held for trading, on‐demand interbank loans, derivates and exposures to undertakings that are not obliged to 
publish non‐financial information pursuant to Article 19a or 29a of Directive 2013/34/EU.
Off‐balance sheet exposures ‐ Corporates subject to NFRD disclosure obligations
Climate Change Mitigation (CCM) Climate  Change Adaptation (CCA) TOTAL  (CCM + CCA)
ISK Thousand
Disclosure 31.12.2024
Total gross 
carrying amount 
Of which towards taxonomy relevant sectors (Taxonomy‐eligible) Of  which towards taxonomy relevant sectors (Taxonomy‐eligible) Of  which towards taxonomy relevant sectors (Taxonomy‐eligible)
Of which environmentally sustainable (Taxonomy‐
aligned)
Of which environmentally sustainable (Taxonomy‐
aligned)
Of which environmentally sustainable (Taxonomy‐
aligned)
 Consolidated Financial Statements 31 December 2024  87

===== SIDA 91 =====

Kvika banki hf.  Amounts are in ISK thousands
1. Assets  for the calculation of GAR ‐ Turnover‐based
ab c d e f g h i j k l m n o p
Of which Use 
of Proceeds
Of which 
transitional
Of which 
enabling
Of which 
Use of 
Proceeds
Of which 
adaptation
Of which 
enabling
Of which Use 
of Proceeds
Of which 
transitional/
adaptation
Of which 
enabling
GAR ‐ Covered assets in both numerator and 
denominator****
1
Loans and advances, debt securities and equity 
instruments not HfT eligible for GAR 
calculation 36,234,799  8,921,941 
2 Financial undertakings 1,938,213 
3 Credit  institutions 1,819 
4 Loans  and advances 1,819 
5 Debt  securities, including UoP 0 
6 Equity  instruments 0 
7 Other  financial corporations 1,936,393 
8o f  which investment firms 0 
9 Loans  and advances 0 
10 Debt  securities, including UoP 0 
11 Equity  instruments 0 
12 of  which  management companies 1,936,393 
13 Loans  and advances 1,936,393 
14 Debt  securities, including UoP 0 
15 Equity  instruments 0 
16 of  which insurance undertakings 0 
17 Loans  and advances 0 
18 Debt  securities, including UoP 0 
19 Equity  instruments 0 
20 Non‐financial undertakings 61,267 
21 Loans  and advances 61,267 
22 Debt  securities, including UoP 0 
23 Equity  instruments 0 
24 Households* 32,676,440  8,921,941  8,921,941 
25 of which loans collateralised by residential 
immovable property 1,930,717  1,930,717  1,930,717 
26 of  which building renovation loans 0 
27 of  which motor vehicle loans** 6,991,224  6,991,224  6,991,224 
28 Local governments financing 1,558,880 
29 Housing  financing
30 Other  local government financing 1,558,880 
31
Collateral obtained by taking possession: 
residential and commercial immovable 
properties  0 
32
Assets excluded from the numerator for GAR 
calculation (covered in the 
denominator)***** 214,574,302 
TOTAL (CCM + CCA)
Of which towards taxonomy relevant sectors (Taxonomy‐eligible) Of  which towards taxonomy relevant sectors (Taxonomy‐eligible) Of  which towards taxonomy relevant sectors (Taxonomy‐eligible)
Of which environmentally sustainable (Taxonomy‐
aligned)
Of which environmentally sustainable (Taxonomy‐
aligned)
Of which environmentally sustainable (Taxonomy‐
aligned)
ISK Thousand
Disclosure 31.12.2023
Total gross 
carrying amount 
Climate Change Mitigation (CCM) Climate  Change Adaptation (CCA)
 Consolidated Financial Statements 31 December 2024  88

===== SIDA 92 =====

Kvika banki hf.  Amounts are in ISK thousands
1. Assets  for the calculation of GAR ‐ Turnover‐based (cont.)
ab c d e f g h i j k l m n o p
Of which Use 
of Proceeds
Of which 
transitional
Of which 
enabling
Of which 
Use of 
Proceeds
Of which 
adaptation
Of which 
enabling
Of which Use 
of Proceeds
Of which 
transitional/
adaptation
Of which 
enabling
33 Financial and Non‐financial undertakings
34 SMEs and NFCs (other than SMEs) not 
subject to NFRD disclosure obligations 72,202,993 
35 Loans  and advances 72,202,993 
36 of which loans collateralised by 
commercial immovable property 0 
37 of  which building renovation loans 0 
38 Debt  securities 0 
39 Equity  instruments 0 
40 Non‐EU country counterparties not 
subject to NFRD disclosure obligations 29,436,644 
41 Loans  and advances 29,436,644 
42 Debt  securities 0 
43 Equity  instruments 0 
44 Derivatives 19,350,190 
45 On demand interbank loans 6,356,998 
46 Cash and cash‐related assets 20,055 
47 Other categories of assets (e.g. Goodwill, 
commodities etc.) 87,207,422 
48 Total GAR assets 250,809,101  8,921,941  8,921,941 
49 Assets not covered for GAR calculation****** 84,588,331 
50 Central governments and Supranational 
issuers 63,426,450 
51 Central banks exposure 17,304,400 
52 Trading book 3,857,480 
53 Total assets 335,397,432  8,921,941  8,921,941 
54 Financial  guarantees 2,500 
55 Assets  under management *** 105,753,957 
56 Of  which debt securities  66,417,080 
57 Of  which equity instruments  39,336,876 
*Households  include all retail loans issued to individuals
**Motor vehicle loans for households include cars in vehicle groups (M1) and (N1)
**For motor vehicle loans, only exposures generated after 1 June 2023 (the date of application of the disclosure) are included
*** Assets held within portfolios managed by Kvika Asset Management that are subject to Non‐Financial Reporting Directive (NFRD) disclosure obligations
1) GAR  ‐ Covered assets in both numerator and denominator: Accounting categories of financial assets used for the calculation of the green asset ratio.
32)
49) Other  assets not covered for GAR calculation: The exposures to central governments, central banks and supranational issuers shall be excluded from the calculation of the numerator and denominator of key performance indicators of financial undertakings.
Other assets excluded from the numerator for GAR calculation (covered in the denominator): Certain assets are excluded from the numerator e.g. financial assets held for trading, on‐demand interbank loans, derivates and exposures to undertakings that are not obliged to 
publish non‐financial information pursuant to Article 19a or 29a of Directive 2013/34/EU.
ISK Thousand
Disclosure 31.12.2023
Total gross 
carrying amount 
Climate Change Mitigation (CCM) Climate  Change Adaptation (CCA) TOTAL  (CCM + CCA)
Of which towards taxonomy relevant sectors (Taxonomy‐eligible) Of  which towards taxonomy relevant sectors (Taxonomy‐eligible) Of  which towards taxonomy relevant sectors (Taxonomy‐eligible)
Of which environmentally sustainable (Taxonomy‐
aligned)
Of which environmentally sustainable (Taxonomy‐
aligned)
Of which environmentally sustainable (Taxonomy‐
aligned)
Off‐balance sheet exposures ‐ Corporates subject to NFRD disclosure obligations
 Consolidated Financial Statements 31 December 2024  89

===== SIDA 93 =====

Kvika banki hf.  Amounts are in ISK thousands
1. Assets  for the calculation of GAR ‐ Cap‐Ex based
ab c d e f g h i j k l m n o p
Of which Use 
of Proceeds
Of which 
transitional
Of which 
enabling
Of which 
Use of 
Proceeds
Of which 
adaptation
Of which 
enabling
Of which Use 
of Proceeds
Of which 
transitional/
adaptation
Of which 
enabling
GAR ‐ Covered assets in both numerator and 
denominator****
1
Loans and advances, debt securities and equity 
instruments not HfT eligible for GAR 
calculation 36,033,801  12,464,828  12,464,828 
2 Financial undertakings 1,256,872 
3 Credit  institutions 1,665 
4 Loans  and advances 1,665 
5 Debt  securities, including UoP 0 
6 Equity  instruments 0 
7 Other  financial corporations 1,255,207 
8o f  which investment firms 0 
9 Loans  and advances 0 
10 Debt  securities, including UoP 0 
11 Equity  instruments 0 
12 of  which  management companies 1,255,207 
13 Loans  and advances 1,255,207 
14 Debt  securities, including UoP 0 
15 Equity  instruments 0 
16 of  which insurance undertakings 0 
17 Loans  and advances 0 
18 Debt  securities, including UoP 0 
19 Equity  instruments 0 
20 Non‐financial undertakings 66,811  0  0 0 
21 Loans  and advances 66,811 
22 Debt  securities, including UoP 0 
23 Equity  instruments 0 
24 Households* 33,209,208  12,464,828  12,464,828 
25 of which loans collateralised by residential 
immovable property 1,674,898  1,674,898  1,674,898 
26 of  which building renovation loans 0 
27 of  which motor vehicle loans** 20,089,250  10,789,929  10,789,929 
28 Local governments financing 1,465,916 
29 Housing  financing
30 Other  local government financing 1,465,916 
31
Collateral obtained by taking possession: 
residential and commercial immovable 
properties  0 
32
Assets excluded from the numerator for GAR 
calculation (covered in the 
denominator)***** 231,175,055 
TOTAL (CCM + CCA)
Of which towards taxonomy relevant sectors (Taxonomy‐eligible) Of  which towards taxonomy relevant sectors (Taxonomy‐eligible) Of  which towards taxonomy relevant sectors (Taxonomy‐eligible)
Of which environmentally sustainable (Taxonomy‐
aligned)
Of which environmentally sustainable (Taxonomy‐
aligned)
Of which environmentally sustainable (Taxonomy‐
aligned)
ISK Thousand
Disclosure 31.12.2024
Total gross 
carrying amount 
Climate Change Mitigation (CCM) Climate  Change Adaptation (CCA)
 Consolidated Financial Statements 31 December 2024  90

===== SIDA 94 =====

Kvika banki hf.  Amounts are in ISK thousands
1. Assets  for the calculation of GAR ‐ Cap‐Ex based (cont.)
ab c d e f g h i j k l m n o p
Of which Use 
of Proceeds
Of which 
transitional
Of which 
enabling
Of which 
Use of 
Proceeds
Of which 
adaptation
Of which 
enabling
Of which Use 
of Proceeds
Of which 
transitional/
adaptation
Of which 
enabling
33 Financial and Non‐financial undertakings 115,644,045 
34 SMEs and NFCs (other than SMEs) not 
subject to NFRD disclosure obligations 78,017,062 
35 Loans  and advances
78,017,062 
36 of which loans collateralised by 
commercial immovable property 30,408,596 
37 of  which building renovation loans 0 
38 Debt  securities 0 
39 Equity  instruments 0 
40 Non‐EU country counterparties not 
subject to NFRD disclosure obligations 37,626,982 
41 Loans  and advances 37,626,982 
42 Debt  securities 0 
43 Equity  instruments 0 
44 Derivatives 13,797,770 
45 On demand interbank loans 9,725,772 
46 Cash and cash‐related assets 15,737 
47 Other categories of assets (e.g. Goodwill, 
commodities etc.) 91,991,731 
48 Total GAR assets 267,284,618  10,607,330  10,607,330 
49 Assets not covered for GAR calculation****** 87,339,675 
50 Central governments and Supranational 
issuers 63,335,139 
51 Central banks exposure 18,577,682 
52 Trading book 5,426,854 
53 Total assets 354,594,543  12,464,828  12,464,828 
54 Financial  guarantees 33,177  0 
55 Assets  under management *** 73,033,583  15,440,240  745,523  745,523  15,440,240  745,523  745,523 
56 Of  which debt securities  26,444,660  1,966,481  461,837  461,837  1,966,481  461,837  461,837 
57 Of  which equity instruments  46,588,924  13,473,759  283,686  283,686  13,473,759  283,686  283,686 
*Households  include all retail loans issued to individuals
**Motor vehicle loans for households include cars in vehicle groups (M1) and (N1)
**For motor vehicle loans, only exposures generated after 1 June 2023 (the date of application of the disclosure) are included
*** Assets held within portfolios managed by Kvika Asset Management that are subject to Non‐Financial Reporting Directive (NFRD) disclosure obligations
1) GAR  ‐ Covered assets in both numerator and denominator: Accounting categories of financial assets used for the calculation of the green asset ratio.
32)
49) Other  assets not covered for GAR calculation: The exposures to central governments, central banks and supranational issuers shall be excluded from the calculation of the numerator and denominator of key performance indicators of financial undertakings.
Other assets excluded from the numerator for GAR calculation (covered in the denominator): Certain assets are excluded from the numerator e.g. financial assets held for trading, on‐demand interbank loans, derivates and exposures to undertakings that are not obliged to 
publish non‐financial information pursuant to Article 19a or 29a of Directive 2013/34/EU.
ISK Thousand
Disclosure 31.12.2024
Total gross 
carrying amount 
Climate Change Mitigation (CCM) Climate  Change Adaptation (CCA) TOTAL  (CCM + CCA)
Of which towards taxonomy relevant sectors (Taxonomy‐eligible) Of  which towards taxonomy relevant sectors (Taxonomy‐eligible) Of  which towards taxonomy relevant sectors (Taxonomy‐eligible)
Of which environmentally sustainable (Taxonomy‐
aligned)
Of which environmentally sustainable (Taxonomy‐
aligned)
Of which environmentally sustainable (Taxonomy‐
aligned)
Off‐balance sheet exposures ‐ Corporates subject to NFRD disclosure obligations
 Consolidated Financial Statements 31 December 2024  91

===== SIDA 95 =====

Kvika banki hf.  Amounts are in ISK thousands
2. GAR  sector information
ab c d e f gh i j klm
ISK 
Thousand
Of which 
environmentally 
sustainable (CCM)
ISK Thousand
Of which 
environmentally 
sustainable (CCM)
ISK 
Thousand
Of which 
environmentally 
sustainable (CCA)
ISK 
Thousand
Of which 
environmentally 
sustainable (CCA)
ISK Thousand
Of which 
environmentall
y sustainable 
(CCM + CCA)
ISK 
Thousand
Of which 
environmentally 
sustainable 
(CCM + CCA)
31.12.2024
1 C2442 ‐ Aluminium production 7,517   7,517 
31.12.2023
1 C2442 ‐ Aluminium production 8,902   8,902 
TOTAL (CCM + CCA)
Non‐Financial corporates 
(Subject to NFRD)
SMEs and other NFC not subject 
to NFRD
Non‐Financial corporates (Subject 
to NFRD)
Climate Change Adaptation (CCA)
SMEs and other NFC not 
subject to NFRD
Non‐Financial corporates 
(Subject to NFRD)
SMEs and other NFC not 
subject to NFRD
4.  This table only covers exposures to non‐financial corporates subject to disclosure obligations according to article 8 of the EU Taxonomy. For the first reporting year the Group cannot disclose which corporates classify as an activity under the objectives of "climate change 
mitigation" (CCA) og "climate change adaptation" (CCA), as that is dependent on the public disclosures by said corporates, and therefore the results are published as a total for both objectives.
1. Credit institutions shall disclose in this template information on exposures in the banking book towards those sectors covered by the Taxonomy (NACE sectors 4 levels of detail), using the relevant NACE Codes on the basis of the principal activity of the counterparty.
2. The sector breakdown by activity is only  applicable to activities covered by the delegated acts that have been adopted in Iceland.
3. The breakdown by sector is based on ISAT 2008 mapping onto NACE codes, by the principal activity of the counterparty available in public records, the Group expects this to possibly change next year as more companies publish their Taxonomy disclosures in 2024.
Gross carrying amount Gross  carrying amount Gross  carrying amount Gross  carrying amount Gross  carrying amount Gross  carrying amountBreakdown by sector ‐ NACE 4 digits level (code and label)
Climate Change Mitigation (CCM)
 Consolidated Financial Statements 31 December 2024  92

===== SIDA 96 =====

Kvika banki hf. Amounts are in ISK thousands
3. GAR  KPI stock ‐ Turnover‐based
ab c d e f g h i j k l m n o p
Of which Use of 
Proceeds
Of which 
transitional
Of which 
enabling
Of which 
Use of 
Proceeds
Of which 
transitional
Of which 
enabling
Of which 
Use of 
Proceeds
Of which 
transitional
Of which 
enabling
GAR ‐ Covered assets in both numerator and 
denominator
1
Loans and advances, debt securities and equity 
instruments not HfT eligible for GAR 
calculation
34.6% 34.6% 10.2%
2 Financial undertakings  0.0% 0.0% 0.4%
3 Credit  institutions 0.0% 0.0% 0.0%
4 Loans  and advances 0.0% 0.0% 0.0%
5 Debt  securities, including UoP 0.0% 0.0% 0.0%
6 Equity  instruments 0.0% 0.0% 0.0%
7 Other  financial corporations 0.0% 0.0% 0.4%
8o f  which investment firms 0.0% 0.0% 0.0%
9 Loans  and advances 0.0% 0.0% 0.0%
10 Debt  securities, including UoP 0.0% 0.0% 0.0%
11 Equity  instruments 0.0% 0.0% 0.0%
12 of  which  management companies 0.0% 0.0% 0.4%
13 Loans  and advances 0.0% 0.0% 0.4%
14 Debt  securities, including UoP 0.0% 0.0% 0.0%
15 Equity  instruments 0.0% 0.0% 0.0%
16 of  which insurance undertakings 0.0% 0.0% 0.0%
17 Loans  and advances 0.0% 0.0% 0.0%
18 Debt  securities, including UoP 0.0% 0.0% 0.0%
19 Equity  instruments 0.0% 0.0% 0.0%
20 Non‐financial undertakings 0.0% 0.0% 0.0%
21 Loans  and advances 0.0% 0.0% 0.0%
22 Debt  securities, including UoP 0.0% 0.0% 0.0%
23 Equity  instruments 0.0% 0.0% 0.0%
24 Households 37.5% 37.5% 9.4%
25 of which loans collateralised by residential 
immovable property 100.0% 100.0% 0.5%
26 of  which building renovation loans 0.0% 0.0% 0.0%
27 of  which motor vehicle loans 53.7% 53.7% 5.7%
28 Local governments financing 0.0% 0.0% 0.4%
29 Housing  financing 0.0% 0.0% 0.0%
30 Other  local government financing 0.0% 0.0% 0.4%
31
Collateral obtained by taking possession: 
residential and commercial immovable 
properties 
0.0% 0.0% 0.0%
32 Total GAR assets 4.7% 4.7% 75.4%
% (compared to total covered assets in the 
denominator)
Disclosure 31.12.2024
Climate Change Mitigation (CCM) Climate  Change Adaptation (CCA) TOTAL  (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors 
(Taxonomy‐eligible)
Proportion of total covered assets funding taxonomy relevant 
sectors (Taxonomy‐eligible)
Proportion of total covered assets funding taxonomy relevant 
sectors (Taxonomy‐eligible)
Proportion 
of total 
assets 
covered
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
Proportion of total covered assets funding 
taxonomy relevant sectors (Taxonomy‐aligned)
Consolidated Financial Statements 31 December 2024 93

===== SIDA 97 =====

Kvika banki hf. Amounts are in ISK thousands
3. GAR  KPI stock ‐ Turnover‐based
ab c de f g hi j k lm n o p
Of which Use of 
Proceeds
Of which 
transitional
Of which 
enabling
Of which 
Use of 
Proceeds
Of which 
transitional
Of which 
enabling
Of which 
Use of 
Proceeds
Of which 
transitional
Of which 
enabling
GAR ‐ Covered assets in both numerator and 
denominator
1
Loans and advances, debt securities and equity 
instruments not HfT eligible for GAR 
calculation
24.6% 24.6% 10.8%
2 Financial undertakings  0.0% 0.0% 0.6%
3 Credit  institutions 0.0% 0.0% 0.0%
4 Loans  and advances 0.0% 0.0% 0.0%
5 Debt  securities, including UoP 0.0% 0.0% 0.0%
6 Equity  instruments 0.0% 0.0% 0.0%
7 Other  financial corporations 0.0% 0.0% 0.6%
8o f  which investment firms 0.0% 0.0% 0.0%
9 Loans  and advances 0.0% 0.0% 0.0%
10 Debt  securities, including UoP 0.0% 0.0% 0.0%
11 Equity  instruments 0.0% 0.0% 0.0%
12 of  which  management companies 0.0% 0.0% 0.6%
13 Loans  and advances 0.0% 0.0% 0.6%
14 Debt  securities, including UoP 0.0% 0.0% 0.0%
15 Equity  instruments 0.0% 0.0% 0.0%
16 of  which insurance undertakings 0.0% 0.0% 0.0%
17 Loans  and advances 0.0% 0.0% 0.0%
18 Debt  securities, including UoP 0.0% 0.0% 0.0%
19 Equity  instruments 0.0% 0.0% 0.0%
20 Non‐financial undertakings 0.0% 0.0% 0.0%
21 Loans  and advances 0.0% 0.0% 0.0%
22 Debt  securities, including UoP 0.0% 0.0% 0.0%
23 Equity  instruments 0.0% 0.0% 0.0%
24 Households 27.3% 27.3% 9.7%
25 of which loans collateralised by residential 
immovable property 100.0% 100.0% 0.6%
26 of  which building renovation loans 0.0% 0.0% 0.0%
27 of  which motor vehicle loans 100.0% 100.0% 2.1%
28 Local governments financing 0.0% 0.0% 0.5%
29 Housing  financing 0.0% 0.0%
30 Other  local government financing 0.0% 0.0% 0.5%
31
Collateral obtained by taking possession: 
residential and commercial immovable 
properties 
0.0% 0.0% 0.0%
32 Total GAR assets 3.6% 3.6% 74.8%
Proportion of total covered assets funding 
taxonomy relevant sectors (Taxonomy‐aligned)
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
% (compared to total covered assets in the 
denominator)
Disclosure 31.12.2023
Climate Change Mitigation (CCM) Climate  Change Adaptation (CCA) TOTAL  (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors 
(Taxonomy‐eligible)
Proportion of total covered assets funding taxonomy relevant 
sectors (Taxonomy‐eligible)
Proportion of total covered assets funding taxonomy relevant 
sectors (Taxonomy‐eligible)
Proportion 
of total 
assets 
covered
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
Consolidated Financial Statements 31 December 2024 94

===== SIDA 98 =====

Kvika banki hf. Amounts are in ISK thousands
3. GAR  KPI stock ‐ Cap‐Ex based
ab c d e f g h ij k l m n o p
Of which Use of 
Proceeds
Of which 
transitional
Of which 
enabling
Of which 
Use of 
Proceeds
Of which 
transitional
Of which 
enabling
Of which 
Use of 
Proceeds
Of which 
transitional
Of which 
enabling
GAR ‐ Covered assets in both numerator and 
denominator
1
Loans and advances, debt securities and equity 
instruments not HfT eligible for GAR 
calculation
34.6% 34.6% 10.2%
2 Financial undertakings  0.0% 0.0% 0.4%
3 Credit  institutions 0.0% 0.0% 0.0%
4 Loans  and advances 0.0% 0.0% 0.0%
5 Debt  securities, including UoP 0.0% 0.0% 0.0%
6 Equity  instruments 0.0% 0.0% 0.0%
7 Other  financial corporations 0.0% 0.0% 0.4%
8o f  which investment firms 0.0% 0.0% 0.0%
9 Loans  and advances 0.0% 0.0% 0.0%
10 Debt  securities, including UoP 0.0% 0.0% 0.0%
11 Equity  instruments 0.0% 0.0% 0.0%
12 of  which  management companies 0.0% 0.0% 0.4%
13 Loans  and advances 0.0% 0.0% 0.4%
14 Debt  securities, including UoP 0.0% 0.0% 0.0%
15 Equity  instruments 0.0% 0.0% 0.0%
16 of  which insurance undertakings 0.0% 0.0% 0.0%
17 Loans  and advances 0.0% 0.0% 0.0%
18 Debt  securities, including UoP 0.0% 0.0% 0.0%
19 Equity  instruments 0.0% 0.0% 0.0%
20 Non‐financial undertakings 0.0% 0.0% 0.0%
21 Loans  and advances 0.0% 0.0% 0.0%
22 Debt  securities, including UoP 0.0% 0.0% 0.0%
23 Equity  instruments 0.0% 0.0% 0.0%
24 Households 37.5% 37.5% 9.4%
25 of which loans collateralised by residential 
immovable property 100.0% 100.0% 0.5%
26 of  which building renovation loans 0.0% 0.0% 0.0%
27 of  which motor vehicle loans 53.7% 53.7% 5.7%
28 Local governments financing 0.0% 0.0% 0.4%
29 Housing  financing 0.0% 0.0%
30 Other  local government financing 0.0% 0.0% 0.4%
31
Collateral obtained by taking possession: 
residential and commercial immovable 
properties 
0.0% 0.0% 0.0%
32 Total GAR assets 4.7% 4.7% 75.4%
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
% (compared to total covered assets in the 
denominator)
Disclosure 31.12.2024
Climate Change Mitigation (CCM) Climate  Change Adaptation (CCA) TOTAL  (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors 
(Taxonomy‐eligible)
Proportion of total covered assets funding taxonomy relevant 
sectors (Taxonomy‐eligible)
Proportion of total covered assets funding taxonomy relevant 
sectors (Taxonomy‐eligible)
Proportion 
of total 
assets 
covered
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
Consolidated Financial Statements 31 December 2024 95

===== SIDA 99 =====

Kvika banki hf. Amounts are in ISK thousands
4. GAR  KPI flow ‐ Turnover‐based
ab c d efg h i j k l m n o p
Of which Use of 
Proceeds
Of which 
transitional
Of which 
enabling
Of which 
Use of 
Proceeds
Of which 
transitional
Of which 
enabling
Of which Use 
of Proceeds
Of which 
transitional
Of which 
enabling
GAR ‐ Covered assets in both numerator and 
denominator
1
Loans and advances, debt securities and equity 
instruments not HfT eligible for GAR 
calculation
100.0% 100.0% 38.4%
2 Financial undertakings  0.0% 0.0% 0.0%
3 Credit  institutions 0.0% 0.0% 0.0%
4 Loans  and advances 0.0% 0.0% 0.0%
5 Debt  securities, including UoP 0.0% 0.0% 0.0%
6 Equity  instruments 0.0% 0.0% 0.0%
7 Other  financial corporations 0.0% 0.0% 0.0%
8o f  which investment firms 0.0% 0.0% 0.0%
9 Loans  and advances 0.0% 0.0% 0.0%
10 Debt  securities, including UoP 0.0% 0.0% 0.0%
11 Equity  instruments 0.0% 0.0% 0.0%
12 of  which  management companies 0.0% 0.0% 0.0%
13 Loans  and advances 0.0% 0.0% 0.0%
14 Debt  securities, including UoP 0.0% 0.0% 0.0%
15 Equity  instruments 0.0% 0.0% 0.0%
16 of  which insurance undertakings 0.0% 0.0% 0.0%
17 Loans  and advances 0.0% 0.0% 0.0%
18 Debt  securities, including UoP 0.0% 0.0% 0.0%
19 Equity  instruments 0.0% 0.0% 0.0%
20 Non‐financial undertakings 100.0% 100.0% 0.2%
21 Loans  and advances 100.0% 100.0% 0.2%
22 Debt  securities, including UoP 0.0% 0.0% 0.0%
23 Equity  instruments 0.0% 0.0% 0.0%
24 Households 39.1% 39.1% 38.1%
25 of which loans collateralised by residential 
immovable property 100.0% 100.0% 0.7%
26 of  which building renovation loans 0.0% 0.0% 0.0%
27 of  which motor vehicle loans 100.0% 100.0% 37.4%
28 Local governments financing 0.0% 0.0% 0.0%
29 Housing  financing 0.0% 0.0% 0.0%
30 Other  local government financing 0.0% 0.0% 0.0%
31
Collateral obtained by taking possession: 
residential and commercial immovable 
properties 
0.0% 0.0% 0.0%
32 Total GAR assets 15.5% 15.5% 38.4%
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
% (compared to flow of total eligible assets)
Disclosure 31.12.2024
Climate Change Mitigation (CCM) Climate  Change Adaptation (CCA) TOTAL  (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors 
(Taxonomy‐eligible)
Proportion of total covered assets funding taxonomy relevant 
sectors (Taxonomy‐eligible)
Proportion of total covered assets funding taxonomy relevant sectors 
(Taxonomy‐eligible)
Proportion 
of total new 
assets 
covered
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
Consolidated Financial Statements 31 December 2024 96

===== SIDA 100 =====

Kvika banki hf. Amounts are in ISK thousands
4. GAR  KPI flow ‐Turnover‐based
ab c d e f g h i j k l m n o p
Of which Use of 
Proceeds
Of which 
transitional
Of which 
enabling
Of which 
Use of 
Proceeds
Of which 
transitional
Of which 
enabling
Of which Use 
of Proceeds
Of which 
transitional
Of which 
enabling
GAR ‐ Covered assets in both numerator and 
denominator
1
Loans and advances, debt securities and equity 
instruments not HfT eligible for GAR 
calculation
2 Financial undertakings 
3 Credit  institutions
4 Loans  and advances
5 Debt  securities, including UoP
6 Equity  instruments
7 Other  financial corporations
8o f  which investment firms
9 Loans  and advances
10 Debt  securities, including UoP
11 Equity  instruments
12 of  which  management companies
13 Loans  and advances
14 Debt  securities, including UoP
15 Equity  instruments
16 of  which insurance undertakings
17 Loans  and advances
18 Debt  securities, including UoP
19 Equity  instruments
20 Non‐financial undertakings
21 Loans  and advances
22 Debt  securities, including UoP
23 Equity  instruments
24 Households
25 of which loans collateralised by residential 
immovable property
26 of  which building renovation loans
27 of  which motor vehicle loans
28 Local governments financing
29 Housing  financing
30 Other  local government financing
31
Collateral obtained by taking possession: 
residential and commercial immovable 
properties 
32 Total GAR assets
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
% (compared to flow of total eligible assets)
Disclosure 31.12.2023
Climate Change Mitigation (CCM) Climate  Change Adaptation (CCA) TOTAL  (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant 
sectors (Taxonomy‐eligible)
Proportion of total covered assets funding taxonomy relevant 
sectors (Taxonomy‐eligible)
Proportion of total covered assets funding taxonomy relevant sectors 
(Taxonomy‐eligible)
Proportion 
of total new 
assets 
covered
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
Consolidated Financial Statements 31 December 2024 97

===== SIDA 101 =====

Kvika banki hf. Amounts are in ISK thousands
4. GAR  KPI flow ‐ Cap‐Ex based
ab c d efg h i j k l m n o p
Of which Use of 
Proceeds
Of which 
transitional
Of which 
enabling
Of which 
Use of 
Proceeds
Of which 
transitional
Of which 
enabling
Of which Use 
of Proceeds
Of which 
transitional
Of which 
enabling
GAR ‐ Covered assets in both numerator and 
denominator
1
Loans and advances, debt securities and equity 
instruments not HfT eligible for GAR 
calculation
66.9% 66.9% 38.4%
2 Financial undertakings  0.0% 0.0% 0.0%
3 Credit  institutions 0.0% 0.0% 0.0%
4 Loans  and advances 0.0% 0.0% 0.0%
5 Debt  securities, including UoP 0.0% 0.0% 0.0%
6 Equity  instruments 0.0% 0.0% 0.0%
7 Other  financial corporations 0.0% 0.0% 0.0%
8o f  which investment firms 0.0% 0.0% 0.0%
9 Loans  and advances 0.0% 0.0% 0.0%
10 Debt  securities, including UoP 0.0% 0.0% 0.0%
11 Equity  instruments 0.0% 0.0% 0.0%
12 of  which  management companies 0.0% 0.0% 0.0%
13 Loans  and advances 0.0% 0.0% 0.0%
14 Debt  securities, including UoP 0.0% 0.0% 0.0%
15 Equity  instruments 0.0% 0.0% 0.0%
16 of  which insurance undertakings 0.0% 0.0% 0.0%
17 Loans  and advances 0.0% 0.0% 0.0%
18 Debt  securities, including UoP 0.0% 0.0% 0.0%
19 Equity  instruments 0.0% 0.0% 0.0%
20 Non‐financial undertakings 100.0% 100.0% 0.2%
21 Loans  and advances 100.0% 100.0% 0.2%
22 Debt  securities, including UoP 0.0% 0.0% 0.0%
23 Equity  instruments 0.0% 0.0% 0.0%
24 Households 39.1% 39.1% 38.1%
25 of which loans collateralised by residential 
immovable property 100.0% 100.0% 0.7%
26 of  which building renovation loans 0.0% 0.0% 0.0%
27 of  which motor vehicle loans 100.0% 100.0% 37.4%
28 Local governments financing 0.0% 0.0% 0.0%
29 Housing  financing 0.0% 0.0% 0.0%
30 Other  local government financing 0.0% 0.0% 0.0%
31
Collateral obtained by taking possession: 
residential and commercial immovable 
properties 
0.0% 0.0% 0.0%
32 Total GAR assets 15.5% 0.0% 38.4%
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
% (compared to flow of total eligible assets)
Disclosure 31.12.2024
Climate Change Mitigation (CCM) Climate  Change Adaptation (CCA) TOTAL  (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors 
(Taxonomy‐eligible)
Proportion of total covered assets funding taxonomy relevant 
sectors (Taxonomy‐eligible)
Proportion of total covered assets funding taxonomy relevant sectors 
(Taxonomy‐eligible)
Proportion 
of total new 
assets 
covered
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
Consolidated Financial Statements 31 December 2024 98

===== SIDA 102 =====

Kvika banki hf. Amounts are in ISK thousands
5. KPI  off‐balance sheet exposures
ab c d e f g h i j k l m n o
Of which Use of 
Proceeds
Of which 
transitional
Of which 
enabling
Of which Use of 
Proceeds
Of which 
transitional
Of which 
enabling
Of which 
Use of 
Proceeds
Of which 
transitional
Of which 
enabling
1 Financial  guarantees (FinGuar KPI) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2 Assets  under management (AuM KPI) 0.14 0.01 0.00 0.00 0.01 0.00 0.00 0.00 0.00 0.00 0.14 0.01 0.00 0.00 0.01
1 Financial  guarantees (FinGuar KPI) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
2 Assets  under management (AuM KPI) 0.21 0.01 0.00 0.00 0.01 0.00 0.00 0.00 0.00 0.00 0.21 0.01 0.00 0.00 0.01
1. Institution shall dislcose in this template the KPIs for off‐balance sheet exposures (financial guarantees and AuM) calculated based on the data disclosed in template 1, on covered assets, and by applying the formulas 
proposed in this template.
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
% (compared to flow of total eligible assets)
Disclosure 31.12.2024
Climate Change Mitigation (CCM) Climate  Change Adaptation (CCA) TOTAL  (CCM + CCA)
Proportion of total covered assets funding taxonomy relevant sectors 
(Taxonomy‐eligible)
Proportion of total covered assets funding taxonomy relevant sectors 
(Taxonomy‐eligible)
Proportion of total covered assets funding taxonomy relevant 
sectors (Taxonomy‐eligible)
Proportion of total covered assets funding taxonomy 
relevant sectors (Taxonomy‐aligned)
31.12.2024 ‐ Turnover‐based
31.12.2024 ‐ Cap‐Ex based
Consolidated Financial Statements 31 December 2024 99

===== SIDA 103 =====

Kvika banki hf. Amounts are in ISK thousands
Disclosure by credit institutions under EU Taxonomy Regulation Article 8 and underlying Delegated Act (EU) 2021/2178, Article 10.
Annex XI
QUALITATIVE DISCLOSURES FOR ASSET MANAGERS, CREDIT INSTITUTIONS, INVESTMENT FIRMS AND 
INSURANCE AND REINSURANCE UNDERTAKINGS
Additional or complementary information in support of the financial undertaking’s
strategies and the weight of the financing of Taxonomy ‐aligned economic
activities in their overall activity.
For credit institutions that are not required to disclose quantitative information
for trading exposures, qualitative information on the alignment of trading
portfolios with Regulation (EU) 2020/852, including overall composition, trends
observed, objectives and policy.
The disclosure of quantitative KPIs shall be accompanied by the following qualitative information to support the financial 
undertakings’ explanations and markets’ understanding of these KPIs:
Contextual information in support of the quantitative indicators including the
scope of assets and activities covered by the KPIs, information on data sources
and limitation.
The Group has derived that the following assets can be considered as
taxonomy‐eligible; loans and advances to financial and non ‐financial corporates
that are subject to non ‐financial disclosures according to Article 66 d of the
Annual Accounts Act and loans to households, in particular motor vehicle loans
(activity 6.5: Purchase, financing, renting, leasing) and residential real estate
(mortgages, activity 7.7: Acquisition and ownership of buildings). Kvika has
employed external data sourced from a third party, adhering to the criteria
outlined in Article 66 d of the Annual Accounts Act. This information has been
complemented, where needed, with data directly collected from the annual
reports of corporate customers and counterparties. Kvika’s estimation of how
and to what extent its activities are associated with taxonomy ‐aligned economic
activities is dependent upon and limited to its
 counterparties’ reporting.
Explanations of the nature and objectives of Taxonomy ‐aligned economic
activities and the evolution of the Taxonomy aligned economic activities over
time, starting from the second year of implementation, distinguishing between
business‐related and methodological and data‐related elements.
Not applicable for financial year 2024
Description of the compliance with Regulation (EU) 2020/852 in the financial
undertaking’s business strategy, product design processes and engagement with
clients and counterparties.
In 2024, Kvika updated it Green Funding Framework to better adhere to recent
developments in sustainability related regulations, including the EU Taxonomy.
The updated Framework, which follows the most recent market practice,
supports Kvika's strategic goal to have a real and measurable impact on Iceland's
carbon footprint and climate issues. Kvika has mapped applicable categories to
EU environmental objectives and example of economic activities under the EU
Taxonomy. Where possible, applicable eligibility criteria have been designed to
comply with the technical screening criteria set out in the EU Taxonomy
Delegated Act as at the time of this Framework publication.
Consolidated Financial Statements 31 December 2024 100

===== SIDA 104 =====

Kvika banki hf. Amounts are in ISK thousands
Kvika Asset Management
Turnover‐based: % 0.1% Turnover ‐based: [monetary amount] 617,517
CapEx—based:  %0 . 2 % C a p E x ‐based: [monetary amount] 952,792
Coverage: % 88.8% The  value in monetary amounts of derivatives.             399,311,281 
Percentage (%) 0.1% [monetary  amount] 397,438                   
For non‐financial undertakings: 40.4% For  non‐financial undertakings: [monetary amount] 161,191,879           
For financial undertakings: 22.9% For  financial undertakings: [monetary amount] 91,503,580             
For non‐financial undertakings: 4.3% For  non‐financial undertakings: [monetary amount] 17,303,212             
For financial undertakings: 4.4% For  financial undertakings: [monetary amount] 17,400,149             
For non‐financial undertakings: 8.5% For  non‐financial undertakings: [monetary amount] 33,853,335             
For financial undertakings: 10.6% For  financial undertakings: [monetary amount] 42,151,736             
Percentage (%) 8.9% [monetary  amount] 35,509,952             
Percentage (%) 56.0% [monetary  amount] 223,743,143           
Percentage (%) [monetary  amount]
The proportion of exposures to financial and non‐financial undertakings subject to 
Articles 19a and 29a of Directive 2013/34/EU over total assets covered by the KPI:
Value of exposures to financial and non‐financial undertakings subject to 
Articles 19a and 29a of Directive 2013/34/EU:
The proportion of exposures to other counterparties over total assets covered by 
the KPI: Value of exposures to other counterparties:
The percentage of assets covered by the KPI relative to total investments (total 
AuM). Excluding investments in sovereign entities.
The monetary value of assets covered by the KPI.
Excluding investments in sovereign entities.
The proportion of exposures to financial and non‐financial undertakings from non‐
EU countries not subject to Articles 19a and 29a of Directive 2013/34/EU over total 
assets covered by the KPI:
Value of exposures to financial and non‐financial undertakings from non‐EU 
countries not subject to Articles 19a and 29a of Directive 2013/34/EU:
The proportion of exposures to EU financial and non‐financial undertakings not 
subject to Articles 19a and 29a of Directive 2013/34/EU over total assets covered 
by the KPI:
Value of exposures to EU financial and non‐financial undertakings not subject to 
Articles 19a and 29a of Directive 2013/34/EU:
The value of all the investments that are funding economic activities that are not 
taxonomy‐eligible relative to the value of total assets covered by the KPI:
Value of all the investments that are funding economic activities that are not 
taxonomy‐eligible:
The value of all the investments that are funding taxonomy‐eligible economic 
activities, but not taxonomy‐aligned relative to the value of total assets covered by 
the KPI:
Value of all the investments that are funding Taxonomy eligible economic 
activities, but not taxonomy aligned:
Kvika Asset Management publishes the following information pursuant to Article 8 of the EU Taxonomy. The information is set forward in a template from
Annex IV and Annex XI of the Delegated Regulation No. 2021/2178, as subsequently changed with Delegated Regulation (EU) No. 2023/2486, covering
asset managers, alongside Kvika Asset Management annual accounts for 2024. The calculation of key figures is based on the data used in Kvika Asset
Management’s financial statement for 2024.
Key performance indicators published for the first time in 2024 
According to the Delegated Regulation no. 2021/2178 asset manag ers are to disclose the proportion of investment in taxonomy ‐aligned economic
activities out of the total value of all investments managed by them. This ratio is based on key performance indicators of investees (turnover and cape x),
which they published according to the EU Taxonomy for the first time in Ice land in 2024 for the financial year 2023. Kvika Asset Management is dependent
upon and limited to the investees’ taxonomy disclosures, and therefore publishes now for the first time the ratio of investments in environmentally
sustainable economic activities.  
ANNEX IV
TEMPLATE FOR THE KPI OF ASSET MANAGERS
Standard template for the disclosure required under Article 8 of Regulation (EU) 2020/852 (asset managers)
The weighted average value of all the investments that are directed at funding, or 
are associated with taxonomy‐aligned economic activities relative to the value of 
total assets covered by the KPI, with following weights for investments in 
undertakings per below:
The weighted average value of all the investments that are directed at funding, or 
are associated with taxonomy‐aligned economic activities, with following weights 
for investments in undertakings per below:
Additional, complementary disclosures: breakdown of denominator of the KPI
The percentage of derivatives relative to total assets covered by the KPI. The  value in monetary amounts of derivatives.
Consolidated Financial Statements 31 December 2024 101

===== SIDA 105 =====

Kvika banki hf. Amounts are in ISK thousands
Kvika Asset Management
Turnover‐based: % 0.1% Turnover ‐based: [monetary amount] 617,517
CapEx—based:  %0 . 2 % C a p E x ‐based: [monetary amount] 952,792
For financial undertakings: For  financial undertakings:
Turnover‐based: % 0.0% Turnover ‐based: [monetary amount] 0
CapEx—based:  %0 . 0 % C a p E x ‐based: [monetary amount] 0
Turnover‐based: % 0.0% Turnover ‐based: [monetary amount] 0
CapEx—based:  %0 . 0 % C a p E x ‐based: [monetary amount] 0
Turnover: 0.1% Transitional  activities: A% (Turnover; CapEx) 0.0%
Capex: 0.2% Enabling  activities: B% (Turnover; CapEx) 100.0%
Turnover: 0.0% Transitional  activities: A% (Turnover; CapEx) 0.0%
Capex: 0.0% Enabling  activities: B% (Turnover; CapEx) 0.0%
Turnover: 0.0% Transitional  activities: A% (Turnover; CapEx) 0.0%
Capex: 0.0% Enabling  activities: B% (Turnover; CapEx) 0.0%
Turnover: 0.0% Transitional  activities: A% (Turnover; CapEx) 0.0%
Capex: 0.0% Enabling  activities: B% (Turnover; CapEx) 0.0%
Turnover: 0.0% Transitional  activities: A% (Turnover; CapEx) 0.0%
Capex: 0.0% Enabling  activities: B% (Turnover; CapEx) 0.0%
Turnover: 0.0% Transitional  activities: A% (Turnover; CapEx) 0.0%
Capex: 0.0% Enabling  activities: B% (Turnover; CapEx) 0.0%
Explanatory notes
 'taxonomy‐aligned activities'
 'not taxonomy‐aligned'
 'taxonomy‐eligible activities'
The proportion of taxonomy‐aligned exposures to other counterparties in over 
total assets covered by the KPI: Value of taxonomy‐aligned exposures to other counterparties:
Breakdown of the numerator of the KPI per environmental objective
Taxonomy‐aligned activities –:
ANNEX IV (cont.)
Additional, complementary disclosures: breakdown of numerator of the KPI
The proportion of Taxonomy‐aligned exposures to financial and non‐financial 
undertakings subject to Articles 19a and 29a of Directive 2013/34/EU over total 
assets covered by the KPI:
Value of Taxonomy‐aligned exposures to financial and non‐financial 
undertakings subject to Articles 19a and 29a of Directive 2013/34/EU:
For non‐financial undertakings: For  non‐financial undertakings:
5) Pollution prevention and control
6) The protection and restoration of biodiversity and 
ecosystems
economic activities that qualify as environmentally sustainable under EU 
Taxonomy
1) Climate change mitigation
2) Climate change adaptation
3) The sustainable use and protection of water and marine 
resources
4) The transition to a circular economy
For credit institutions that are not required to disclose quantitative information for
trading exposures, qualitative information on the alignment of trading portfolios
with Regulation (EU) 2020/852, including overall composition, trends observed,
objectives and policy.
Does not apply to asset managers.
economic activities that do not qualify as environmentally sustainable under EU 
Taxonomy i.e. do not fulfil the criteria set out in the delegated acts
activity that has a corresponding criteria in the EU Taxonomy delegated acts 
to be 
assessed against
ANNEX XI
QUALITATIVE DISCLOSURES FOR ASSET MANAGERS, CREDIT INSTITUTIONS, INVESTMENT FIRMS AND INSURANCE AND REINSURANCE UNDERTAKINGS
The disclosure of quantitative KPIs shall be accompanied by the following qualitative information to support the financial undertakings’ explanations and markets’ 
understanding of these KPIs:
Contextual information in support of the quantitative indicators including the scope
and activities covered by the KPIs, information on data sources and limitation.
The calculation of key indicators uses total assets under management (AuM),
excluding exposures to central governments, central banks and supranational
issuers. Investments in companies which are not obliged to disclose non ‐financial
information under the Act on Annual Accounts should also be excluded.
Furthermore, the calculations of Kvika Asset Management’s Taxonomy KPIs
depend upon and are limited to investee companies’ 2024 Taxonomy disclosures
for the financial year 2023.
Explanations of the nature and objectives of Taxonomy ‐aligned economic activities
and the evolution of the Taxonomy ‐aligned economic activities over time, starting
from the second year of implementation, distinguishing between business ‐related
and methodological and 
data‐related elements.
As according to investee companies’ 2024 Taxonomy disclosures, all Taxonomy ‐
aligned economic activities are enabling activities, i.e. they all enable other
activities to make a substantial contribution to climate change mitigation. 
Description of the compliance with Regulation (EU) 2020/852 in the financial
undertaking’s business strategy, product design processes and engagement with
clients and counterparties.
Kvika Asset Management expects to increasingly consider the EU Taxonomy e.g.
in product development as well as in communication with customers, additionally
there has been increased education to employees on the topic.  
Consolidated Financial Statements 31 December 2024 102

===== SIDA 106 =====

Kvika banki hf. Amounts are in ISK thousands
Group alignment
Computation of weighted averages of KPIs on Taxonomy‐aligned activities of Groups
ISK Thousand Revenue*
Proportion of total 
group revenue KPI  (Turnover) KPI  (CapEx)
KPI (Turnover) 
weighted
KPI (CapEx) 
weighted
Asset management 2,597,493                    15.12% 0.14% 0.21% 0.021% 0.032%
Banking activities 14,586,947                  84.88% 0% 0% 0% 0%
Insurance undertakings ‐                                ‐                                0% 0% 0% 0%
Total 17,184,440                 
Average KPI 0.021% 0.032%
KPI per business segment
Consolidated Financial Statements 31 December 2024 103