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

Condensed Interim      
Consolidated Financial Statements 
31 March 2024

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

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

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

Kvika banki hf.
Table of Contents
Page
1
2
4
5
6
7
9
10
11
13
15
18
27
42
46
Notes to the Condensed Interim Consolidated Financial Statements .............................................................................
Condensed Interim Consolidated Income Statement ......................................................................................................
Endorsement and Statement by the Board of Directors and the CEO .............................................................................
Kvika highlights .................................................................................................................................................................
Condensed Interim Consolidated Statement of  Comprehensive Income  ......................................................................
Condensed Interim Consolidated Statement of Financial Position ..................................................................................
Condensed Interim Consolidated Statement of Changes
 in Equity .................................................................................
 ‐ General information ......................................................................................................................................................
Condensed Interim Consolidated Statement of Cash Flows ............................................................................................
 ‐ Risk management ..........................................................................................................................................................
 ‐ Financial assets and financial liabilities .........................................................................................................................
 ‐ Segment information .....................................................................................................................................................
 ‐ Income statement ..........................................................................................................................................................
 ‐ Statement of Financial Position .....................................................................................................................................
 ‐ Other information ..........................................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited

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

Kvika highlights
31.03.2024
Kvika
Kvika is a specialized financial institution strategically 
positioned to increase competition and transform 
financial services in Iceland. Kvika provides businesses, 
investors, and individuals with investment banking, 
insurance, asset management, payment, and banking
services. The Bank is listed on Nasdaq Iceland. 
Kvika operates in four business segments, Commercial 
banking and Corporate Banking & Capital Markets as 
well as Asset Management and UK operations through 
subsidiaries Kvika Asset Management and Kvika 
Securities Ltd. Kvika’s insurance segment, operated 
through the subsidiary TM tryggingar hf., is currently in 
a divestment process. 
Kvika operates several brands that are highly focused 
and excel in their field. The main brands are Kvika, Kvika 
Asset Management, Auður, Aur, Lykill, Netgíró, and 
Straumur, as well as Ortus Secured Finance in the UK.
Diversified operations
Revenues by segment / 3M 2024
Key figures
ISK m. 3M 2024 3M 2023
Net operating income 4,069 3,489
Profit before taxes 1,215 895
Profit before taxes incl.TM 1,345 1,412
RoTE 12.1% 13.1%
31.03.2024 31.12.2023
Total Assets 350,887 335,397
Loans to customers 145,898 136,323
Deposits 137,143 133,773
LCR 286% 247%
NSFR 137% 141%
Group Solvency 1.16 1.25
Corporate Governance 
 Reitun ESG score
 Stable
Q1 23 Q2 23 Q3 23 Q4 23
3.5
4.3
3.0
4.0
Q1 24
4.1
Net operating income
ISK bn.
Loans to customers
ISK bn.
Total capital ratio
(%)
LCR ratio
(%)
0
20
40
60
80
100
120
140
160
180
200
220
240
0
100
50
150
92.3%
Q1 23
91.5%
Q2 23
96.0%
Q3 23
101.9%
Q4 23
110 119 124
136
Q1 24
146
106.4%
Loans to deposits
0
5
10
15
20
25
30
35
40
45
50
0
5
10
15
20
25
20.8%
Q1 23
20.9%
Q2 23
20.4%
Q3 23
19.6%
Q4 23
23.6% 23.1% 22.7% 22.6%
Q1 24
19.0%
21.7%
CET1
0
50
100
150
200
250
300
350
0
50
100
150
200
250
300
350
400
144%
Q1 23
150%
Q2 23
145%
Q3 23
141%
Q4 23
327%
390%
301%
247%
Q1 24
137%
286%
NSFR
35.4%
33.3%
16.3%
15.0%
Commercial Banking
Corporate Banking & Capital Markets
Asset Management
UK
Following the classification of TM as a disposal group held for sale, the Group reports income from its insurance operations in a single line in the
consolidated income statement as profit after tax from discontinued operations. The comparative figures from 2023 have been restated

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

Kvika banki hf.
Endorsement and Statement
by the Board of Directors and the CEO
About the Bank
Operations during the period in 2024
Financial position
Offer for TM tryggingar hf. accepted
Capital adequacy and dividends
The Group's solvency ratio at 31.03.2024 was 1.16 (31.12.2023: 1.25) with a regulatory minimum requirement of 1.0.
The Bank's 2024 A nnual General Meeting ("AGM") approved a motion from the Board of Directors ("BOD") permitting the Bank to purchase up to 10%
of own shares subject to regulatory approvals. This authorisation applies until the next annual general meeting in 2025.
These are the Condensed Interim Consolidated Financial Statements of Kvika banki hf. ("Kvika" or the "Bank") and its subsidiaries (together the
"Group") for the period 1 January to 31 March 2024. The Condensed Interim Consolidated Financial Statements have not been audited or reviewed by
the Bank's independent auditors.
Kvika operates as well as a house of brands that are highly focused and excel in their field. The main brands are Kvika, Kvika Asset Management, Auður,
Aur, Lykill, Netgíró, and Straumur, as well as Ortus Secured Finance in the UK. 
Kvika is a specialized financial institution strategically positioned to increase competition and transform financial services in Iceland. Opera ting without
a branch network, Kvika provides businesses, investors, and individuals with investment banking, insurance, asset management, payment, and banki ng
services. The Bank is listed on the main list of Nasdaq OMX Iceland. 
Kvika operates in four business segments, two which are operated under the Kvika Bank 
brand, Commercial banking, and Corporate Banking and Capital 
Markets, and two in own ‐brand subsidiaries, Kvika Asset Management and Kvika Securities Ltd., the Group's operations in the UK. The insurance
segment, operated through the subsidiary TM tryggingar hf. ("TM") has been discontinued as TM is currently in a sales process.  
Profit before taxes for the period amounted to ISK 1,345 million (3m 2023: ISK 1,412 million), corresponding to an annualised 12.1% return on weighted
tangible equity, based on the tangible equity position of Kvika and TM at the beginning of the year adjusted for changes in share capital and
transactions with treasury shares during the pe riod. Profit before taxes is composed of the pre ‐tax profit from both the Group's continuing and
discontinued operations.
According to the Consolidated Statement of Financial Position, equity at year ‐end 2024 amounted to ISK 83,261 m illion (31.12.2023: ISK 81,958 million),
and total assets amounted to ISK 350,887 million (31.12.2023: ISK 335,397 million).
The Group's statement of financial position grew by ISK 14.4 billion or 4.3% during the period in 2024. Loans to customers grew by ISK 9.6 b illion or 7.0%
during the period. Liquid assets amounted to ISK 103.5 billion at end of March 2024, or 29.5% of total assets.
On 17 March 2024 the Bank announced that it had received binding offers for the purchase of the share capital of TM. The Bank furthermore
announced that it had decided to accept an offer from Landsbankinn hf. with the aim to complete a confirmatory due diligence review, and sign a
purchase agreement between the two banks for the purchase and sale of 100% of TM's shares as soon as possible, with standard conditions of approval
from The Financial Supervisory Authority of the Central Bank of Iceland and the Competition Authority. The purchase price according to the offer is IS K
28.6 billion and Landsbankinn will pay for the share capital in cash. The purchase price is based on TM's balance sheet at the end of 2023. The final
purchase price will be adjusted for changes in TM's tangible equity from the beginning of the year 2024 to the completion date, and the amount of the
change will be added to or subtracted from the purchase price in the offer.
The Group's net operating income during the period was ISK 4,069 million (3m 2023: ISK 3,489 m illion). Net interest income amounted to ISK 2,326
million (3m 2023: ISK 1,985 m illion). Net fee income amounted to ISK 1,633 million (3m 2023: ISK 1,488 m illion). Other operating income amounted to
ISK 110 million (3m 2023: ISK 16 million). Administrative expenses during the period amounted to ISK 2,666 million (3m 2023: ISK 2,635 million). During
the period, the Group had a net impairment charge
 of ISK 188 million (3m 2023: positive net impairment charge of ISK 41 million).
Furthermore, the 2024 AGM approved a motion from the BOD that no dividend will be paid in the year 2024 on 2023 operations. The BOD intends,
through the purchase of own shares, to meet the Bank's dividend policy, which states that the aim is for shareholders to be returned an annual
dividend of at least 25% of last year's profit after taxes, whether in the form of dividends or through the purchase of own shares. The BOD has not ruled
out that it might call to a meeting of shareholders later in the year 2024 to discuss potential dividend payments if the conditions arise, e.g. followin gt h e
sale of TM. 
Kvika‘s total capital requirement at 31.03.2024, taking into account all capital buffers, amounted to 19.1%. Kvika's capital adequacy ratio was 21. 7% at
the end of March 2024 (31.12.2023: 22.6%). Kvika’s CET1 requirement was 13.9% compared to a CET1 ratio of 19.0% at the end of March 2024. 
The 2024 AGM also approved a motion from the BOD to, subject to approval from the Financial Supervisory Authority of the Central Bank of Iceland,
decrease the share capital of the Bank by 58,952,375 shares by cance lling treasury shares held by the Bank. In March 2024, the share capital reduction
was carried out.
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  2

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

Kvika banki hf.
Endorsement and Statement
by the Board of Directors and the CEO
Risk management
Statement by the Board of Directors and the CEO
Sigurður Hannesson, Chairman
Guðmundur Þórðarson, Deputy Chairman
Helga Kristín Auðunsdóttir
Ingunn Svala Leifsdóttir
Guðjón Reynisson
Chief Executive Officer
Ármann Þorvaldsson
The objective of risk management is to promote a good and efficient culture of risk awareness within the Group and to increase the understanding of
employees and management on the Group's risk taking, in addition to an assessment process related to risk and capital position. An emphasis is placed
on being up to speed on the latest developments and adoption of rules related to risk management, such as regarding capital ‐ and liquidity
management. The Group faces various risks associated with its operations as a financial conglomerate that arise from its day ‐to‐day operations. Active
risk management entails analysing risk, measuring it and taking actions to limit it, as well as monitoring risk factors across the Group. The Group's r isk
management and main operations are described in the notes accompanying the Condensed Interim Consolidated Financial Statements. Refer to notes
39‐54 on the analysis of exposure to various types of risk.
The Condensed Interim Consolidated Financial Statements of Kvika banki hf. for the period ended 31 March 2024 are electronically certificated by the
Board of Directors and the CEO.
The Condensed Interim Consolidated Financial Statements of Kvika banki hf. for the period 1 January to 31 March 2024 have been prepared in
accordance with IAS 34 Interim Financial Reporting as adopted by the EU, and additional requirements, as applicable, in the Act on Annual Accounts no.
3/2006, the Act on Financial Undertakings no. 161/2002 and rules on accounting for credit institutions no. 834/2003.
To the best of our knowledge these Condensed Interim Consolidated Financial Statements give a true and fair view of the Group's assets, liabilities an d
financial position as at 31 March 2024 and the financial performance of the Group and changes of cash flows for the period 1 January to 31 March 2024.
Furthermore, in our opinion the Condensed Interim Consolidated Financial Statements and the Endorsement of the Board of Directors and the CEO give
a fair view of the development and performance of the Group's operations and its position and describe the principal risks and uncertainties faced by
the Group.
The Board of Directors and the CEO of the Bank have today discussed the Condensed Interim Consolidated Financial Statements for the period 1
January to 31 March 2024 and confirmed them by the means of their signatures.
Reykjavík, 2 May 2024.
Board of Directors
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  3

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

Kvika banki hf.  Amounts are in ISK thousands
Condensed Interim Consolidated Income Statement
 For the period 1 January 2024 to 31 March 2024
Notes 3m  2024  3m 2023 *
7,105,791  5,043,148 
(4,779,672) (3,058,280)
Net interest income 5 2,326,118  1,984,867 
1,795,429  1,605,305 
(162,530) (117,072)
Net fee and commission income 6 1,632,900  1,488,234 
7 23,822   (98,896)
85,711  114,562 
Other net operating income 109,532  15,666 
Net operating income 4,068,550  3,488,767 
9 (2,665,797) (2,634,637)
11 (187,950) 40,839  
Profit before taxes from continuing operations 1,214,804  894,969 
12 (151,869) (104,234)
13 (13,138) 0  
14 (62,600) (52,039)
Profit for the period 987,197  738,696 
Discontinued operations
3 96,183   428,485 
Profit for the period 1,083,379  1,167,180 
Notes 3m  2024  3m 2023
1,079,337  1,148,230 
22 4,042   18,950 
Profit for the period 1,083,379  1,167,180 
Earnings per share 15
0.23 0.24
0.23 0.24
* Comparative information has been restated, reference is made to note 3 for further information.
The notes on pages 11 to 47 are an integral part of these Condensed Interim Consolidated Financial Statements.
 Other operating income ...............................................................................................................................................
 Administrative expenses ..............................................................................................................................................
 Net impairment ............................................................................................................................................................
 Interest income ............................................................................................................................................................
 Interest expense 
...........................................................................................................................................................
 Fee and commission income ........................................................................................................................................
 Fee and commission expense ......................................................................................................................................
 Net financial income (expense) ...................................................................................................................................
 Diluted earnings per share (ISK per share) ..................................................................................................................
 Income tax ....................................................................................................................................................................
 Attributable to the shareholders of Kvika banki hf. ....................................................................................................
 Attributable to non‐controlling interest ......................................................................................................................
 Special tax on financial institutions .............................................................................................................................
 Special tax on financial activity ....................................................................................................................................
 Basic earnings per share (ISK per share) ......................................................................................................................
 Profit after tax for the period from discontinued operations .....................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  4

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

Kvika banki hf.  Amounts are in ISK thousands
Comprehensive Income 
 For the period 1 January 2024 to 31 March 2024
Notes 3m  2024  3m 2023 
Profit for the period 1,083,379  1,167,180 
190,233  (223,771)
10,079  7,230 
Changes to reserve for financial assets at fair value through OCI 200,312  (216,541)
9,465  (14,903)
Other comprehensive income that is or may be reclassified subsequently to profit and loss 209,777  (231,444)
Total comprehensive income for the period 1,293,156  935,736 
Notes 3m  2024  3m 2023 
1,289,114  900,234 
4,042  35,502 
Total comprehensive income for the period 1,293,156  935,736 
The notes on pages 11 to 47 are an integral part of these Condensed Interim Consolidated Financial Statements.
Condensed Interim Consolidated Statement of 
Attributable to the shareholders of Kvika banki hf. ................................................................................................
Attributable to non‐controlling interest ..................................................................................................................
Exchange difference on translation of foreign operations ...................................................................................
Changes in fair value of financial assets through OCI, net of tax .........................................................................
Realized net loss transferred to the Income Statement, net of tax ......................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  5

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

Kvika banki hf.  Amounts are in ISK thousands
Condensed Interim Consolidated Statement of Financial Position
 As at 31 March 2024
Assets Notes 31.3.2024   31.12.2023 
16 34,256,255   23,681,453 
17 56,956,255   64,977,406 
18 4,314,083   3,857,480 
19 12,706,506   16,852,313 
20 145,898,190   136,323,481 
21 3,065,234   2,497,877 
23 95,841   96,194 
24 21,908,315   21,906,363 
25 455,445   530,144 
591,080  618,361 
12 2,780,478   2,902,580 
26 15,309,237   10,401,128 
3 52,550,213   50,752,652 
Total assets 350,887,131  335,397,432 
Liabilities
27 137,143,138   133,772,941 
28 37,558,062   23,817,062 
29 38,752,257   45,715,427 
30 6,176,221   5,993,084 
31 653,560   131,745 
32 113,800   4,230 
21 2,339,572   2,196,904 
17  17 
308,797  272,615 
33 17,911,669   16,593,993 
3 26,669,339   24,941,611 
Total liabilities 267,626,432  253,439,628 
Equity
34 4,722,073   4,722,073 
47,661,777  47,661,777 
5,090,040  4,330,081 
25,710,648  25,171,754 
Total equity attributable to the shareholders of Kvika banki hf. 83,184,538  81,885,685 
22 76,161   72,119 
Total equity 83,260,699  81,957,804 
Total liabilities and equity 350,887,131  335,397,432 
The notes on pages 11 to 47 are an integral part of these Condensed Interim Consolidated Financial Statements.
 Other reserves ....................................................................................................................................
 Retained earnings ...............................................................................................................................
 Issued bonds .......................................................................................................................................
 Operating lease assets ........................................................................................................................
 Cash and balances with Central Bank ................................................................................................
 Other assets ........................................................................................................................................
 Deferred tax assets .............................................................................................................................
 Subordinated liabilities ......................................................................................................................
 Derivatives ..........................................................................................................................................
 Fixed income securities ......................................................................................................................
 Shares and other variable income securities .....................................................................................
 Securities used for hedging ................................................................................................................
 Loans to customers ............................................................................................................................
 Investment in associates ....................................................................................................................
 Intangible assets .................................................................................................................................
 Property and equipment ....................................................................................................................
 Assets classified as held for sale ........................................................................................................
 Deposits  .............................................................................................................................................
 Borrowings .........................................................................................................................................
 Non‐controlling interest .....................................................................................................................
 Short positions held for trading .........................................................................................................
 Short positions used for hedging .......................................................................................................
 Current tax liabilities ..........................................................................................................................
 Share capital .......................................................................................................................................
 Share premium ...................................................................................................................................
 Other liabilities ...................................................................................................................................
 Liabilities associated with assets classified as held for sale ..............................................................
 Deferred tax liabilities ........................................................................................................................
 Derivatives ..........................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  6

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

Kvika banki hf.  Amounts are in ISK thousands
Condensed Interim Consolidated Statement of Changes in Equity
 For the period 1 January 2024 to 31 March 2024
Deficit  Trans‐  Restricted  Total share‐  Non‐ 
Share  Share  Option  reduction  Fair value  lation  retained   Retained  holders'  controlling  Total 
1 January 2024 to 31 March 2024 Notes capital   premium  reserve  reserve  reserve  reserve  earnings  earnings  equity  interest  equity 
4,722,073  47,661,777  173,605  1,203,697  (930,231) 86,145   3,796,865  25,171,754  81,885,685  72,119  81,957,804 
1,079,337  1,079,337  4,042  1,083,379 
190,233  190,233  190,233 
10,079  10,079  10,079 
9,465  9,465  0  9,465 
0  0  0  0  200,312  9,465  0  1,079,337  1,289,114  4,042  1,293,156 
534,880  (534,880) 0   0 
5,563  (5,563) 0   0 
9,740  0  9,740  9,740 
Equity as at 31 March 2024 4,722,073  47,661,777  183,344  1,203,697  (729,919) 95,610   4,337,308  25,710,648  83,184,538  76,161  83,260,699 
The notes on pages 11 to 47 are an integral part of these Condensed Interim Consolidated Financial Statements.
(13,189,595) 20,992,438  183,344  1,108,086  (5,451,993) 95,610   4,153,963  24,506,951  76,161 
 Stock options .............................................................................................
Other reserves
 Profit for the period .....................................................................................
 Restricted due to subsidiaries and associates .............................................
Translation of foreign operations
 Exchange difference on translation of foreign operations .......................
 Equity as at 1 January 2024 .........................................................................
 Total comprehensive income for the period ...............................................
 Realized net loss transferred to the Income Statement ..............................
 Changes in fair value of financial assets through OCI .................................
 Restricted due to development costs ..........................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  7

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

Kvika banki hf.  Amounts are in ISK thousands
Condensed Interim Consolidated Statement of Changes in Equity
 For the period 1 January 2023 to 31 March 2023
Deficit  Trans‐  Restricted  Total share‐  Non‐ 
Share  Share  Option  reduction  Fair value  lation  retained   Retained  holders'  controlling  Total 
1 January 2023 to 31 March 2023 Notes capital   premium  reserve  reserve  reserve  reserve  earnings  earnings  equity  interest  equity 
4,781,026  48,602,825  155,951  1,203,697  (574,319) 57,338   2,225,492  24,559,886  81,011,895  77,285  81,089,180 
1,148,230  1,148,230  18,950  1,167,180 
(223,771) (223,771) (223,771)
7,230  7,230  7,230 
Translation of foreign operations
(14,903) (14,903) 0   (14,903)
0  0  0  0  (216,541) (14,903) 0   1,148,230  916,786  18,950  935,736 
434,967  (434,967) 0   0 
46,049  (46,049) 0   0 
(1,912,410) (1,912,410) (1,912,410)
20,222  20,222  20,222 
Equity as at 31 March 2023 4,781,026  48,602,825  176,172  1,203,697  (790,859) 42,434   2,706,509  23,314,689  80,036,493  96,235  80,132,727 
The notes on pages 11 to 47 are an integral part of these Condensed Interim Consolidated Financial Statements.
 Equity as at 1 January 2023 .........................................................................
 Total comprehensive income for the period ...............................................
 Stock options .............................................................................................
 Restricted due to subsidiaries and associates .............................................
Transactions with owners of the Bank
 Restricted due to development costs ..........................................................
Other reserves
 Dividend paid to shareholders ..................................................................
 Changes in fair value of financial assets through OCI .................................
 Realized net loss transferred to the Income Statement ..............................
 Profit for the period .....................................................................................
 Exchange difference on translation of foreign operations .......................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  8

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

Kvika banki hf.  Amounts are in ISK thousands
Condensed Interim Consolidated Statement of Cash Flows
 For the period 1 January 2024 to 31 March 2024
Cash flows from operating activities Notes 3m  2024  3m 2023 
1,083,379  1,167,180 
(116,490) (469,490)
269,978  411,883 
(2,326,118) (2,254,695)
187,950  (40,933)
227,607  192,718 
(69,833) 0  
9,740  19,450 
(733,788) (973,886)
Changes in:
8,271,541  (7,991,376)
(456,603) (795,483)
4,145,807  5,208,228 
(8,162,422) (2,205,929)
(567,357) 1,273,650  
46,017  47,888 
(4,942,559) (8,721,558)
2,717,880  6,667,482 
0  1,533,982 
631,386  748,578 
134,775  (125,228)
1,449,778  10,457,783 
3,268,242  6,098,017 
6,675,176  4,980,979 
(4,025,428) (2,354,438)
(181,928) 0  
Net cash from operating activities 5,002,275  7,750,672 
Cash flows from investing activities
24 (144,800) (302,092)
5,924  (46,161)
Net cash to investing activities (138,876) (348,253)
Cash flows from financing activities
5,769,735  (5,410,473)
0  (1,912,410)
(91,888) (123,358)
Net cash from (to) financing activities 5,677,847  (7,446,241)
10,541,245  (43,823)
23,681,453  36,670,586 
33,557  (185,215)
Cash and balances with Central Bank at the end of the period 16 34,256,255   36,441,548 
The notes on pages 11 to 47 are an integral part of these Condensed Interim Consolidated Financial Statements.
 Net change in cash and balances with Central Bank ...................................................................................
 Repayment of lease liabilities ......................................................................................................................
 Acquisition of intangible assets ...................................................................................................................
 Dividend paid to shareholders .....................................................................................................................
 Effects of exchange rate fluctuations on cash and balances with Central Bank .........................................
 Cash and balances with Central Bank at the beginning of the year ............................................................
 Other liabilities ..........................................................................................................................................
 Interest paid .................................................................................................................................................
 Income tax paid ............................................................................................................................................
 Fixed income securities .............................................................................................................................
 Shares and other variable income securities ............................................................................................
 Other assets ...............................................................................................................................................
 Operating lease assets ...............................................................................................................................
 Derivatives ‐ liabilities ...............................................................................................................................
 Securities used for hedging .......................................................................................................................
 Derivatives ‐ assets ....................................................................................................................................
 Insurance contract liabilities .....................................................................................................................
 Short positions ...........................................................................................................................................
 Loans to customers ....................................................................................................................................
 Deposits  ....................................................................................................................................................
 Net interest income ...................................................................................................................................
 Income tax .................................................................................................................................................
 Interest received ..........................................................................................................................................
 Net acquisition of property and equipment ................................................................................................
 Borrowings ...................................................................................................................................................
 Profit for the period .....................................................................................................................................
Adjustments for:
 Indexation and exchange rate difference .................................................................................................
 Depreciation and amortisation .................................................................................................................
 Net impairment .........................................................................................................................................
 Other adjustments .....................................................................................................................................
 Adjustment relating to assets held for sale ...............................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  9

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
0
General information Page Risk  management Page
1  Reporting entity ........................................................................ 11 39  Hedging ............................................................................................... 27
2  Basis of preparation .................................................................. 11 40  Credit risk ‐ overview .......................................................................... 27
3  Discontinued operations ........................................................... 12 41  Maximum exposure to credit risk ...................................................... 28
42  Credit quality of financial assets ........................................................ 28
Segment information 43  Loan‐to‐value ..................................................................................... 33
4  Business segments .................................................................... 13 44  Collateral against exposures to derivatives ....................................... 33
45  Large exposures .................................................................................. 33
Income statement 46  Liquidity risk ....................................................................................... 34
5  Net interest income ................................................................... 15 47  Market risk .......................................................................................... 37
6  Net fee and commission income ............................................... 15 48  Interest rate risk ................................................................................. 37
7  Net financial income (expense) ................................................ 16 49  Interest rate risk associated with trading portfolios .......................... 37
8  Foreign currency exchange difference ...................................... 16 50  Interest rate risk associated with non‐trading portfolios .................. 38
9  Administrative expenses ........................................................... 16 51  Exposure towards changes in the CPI ................................................ 39
10  Salaries and related expenses ................................................... 16 52  Currency risk ....................................................................................... 39
11  Net impairment ......................................................................... 17 53  Equity risk ........................................................................................... 41
12  Income tax ................................................................................. 17 54  Operational risk .................................................................................. 41
13  Special tax on financial activity ................................................. 17
14  Special tax on financial institutions .......................................... 17 Financial assets and liabilities
15  Earnings per share ..................................................................... 17 55  Accounting classification of financial assets and financial liabilities .4 2
56  Financial assets and financial liabilities measured at fair value ........ 43
Statement of Financial Position
16  Cash and balances with Central Bank ....................................... 18
17  Fixed income securities ............................................................. 18 Other information
18  Shares and other variable income securities ............................ 18 57  Pledged assets .................................................................................... 46
19  Securities used for hedging ....................................................... 18 58  Related parties ................................................................................... 46
20  Loans to customers ................................................................... 19 59  Other matters ..................................................................................... 47
21  Derivatives ................................................................................. 19 60  Events after the reporting date .......................................................... 47
22  Group entities ............................................................................ 20
23  Investment in associates ........................................................... 20
24  Intangible assets ........................................................................ 20
25  Operating lease assets .............................................................. 21
26  Other assets ............................................................................... 21
27  Deposits  .................................................................................... 21
28  Borrowings ................................................................................ 21
29  Issued bonds .............................................................................. 22
30  Subordinated liabilities ............................................................. 22
31  Short positions held for trading ................................................ 22
32  Short positions used for hedging .............................................. 23
33  Other liabilities .......................................................................... 23
34  Share capital .............................................................................. 23
35  Solvency of a financial conglomerate ....................................... 24
36  Capital adequacy ratio (CAR) .................................................... 25
37  Solvency of insurance activities ................................................ 26
38  Leverage ratio ............................................................................ 26
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  10

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
0
General information
1. Reporting  entity
2. Basis  of preparation
a. Statement  of compliance
b. Basis  of measurement
‐
‐
‐
‐
‐
‐
‐ shared based payment is accounted for in accordance with IFRS 2;
‐
‐
c. Functional  and presentation currency
d. Going  concern
e. Estimates  and judgements
f. Relevance  and importance of notes to the reader
The Group's assets and liabilities which are denominated in other currency than ISK are translated to ISK using the exchange rate as at the end of
day 31 March 2024.
The estimates and underlying assumptions are based on historical results and various other factors that are believed to be reasonable under the
circumstances, the results of which form the basis of making the judgements about carrying amounts of assets and liabilities that are not readily
apparent from other sources.
The estimates and underlying assumptions are reviewed on an on ‐going basis. Revisions to accounting estimates are recognised in the period in
which the estimate is revised if the revision affects only that period or in the period and future periods if the revision affects both current and
future periods. 
Information about areas of estimation uncertainty and critical judgements made by management in applying accounting policies that can have a
significant effect on the amounts recognised in the Condensed Interim Consolidated Financial Statements, is provided in the Consolidated Financia l
Statements as
 at and for the year ended 31 December 2023.
In order to enhance the informational value of the Condensed Interim Consolidated Financial Statements, the notes are evaluated based on
relevance and importance for the reader. This can result in information, that has been evaluated as neither important nor relevant for the reader,
not being presented in the notes.
derivatives are measured at fair value;
short positions are measured at fair value.
investment properties are measured at fair value;
certain loans to customers which are measured at fair value;
contingent consideration is measured at fair value; and
Kvika banki hf. ("Kvika" or the "Bank") is a limited liability company incorporated and domiciled in Iceland, with its registered office at Katrínart ún 2,
Reykjavík. The Bank operates as a bank based on Act No. 161/2002, on Financial Undertakings, and is supervised by the Financial Supervisory
Authority of the Central Bank ("FME"). The Group, comprised of Kvika and its subsidiaries, has been designated by the FME as a financial
conglomerate as defined in Article no. 3 of Act no. 61/2017 on Additional Supervision of Financial Conglomerates.
The Condensed Interim Consolidated Financial Statements were approved and authorised for issue by the Board of Directors and the CEO on 2 May
2024.
The Condensed Interim Consolidated Financial Statements have been prepared in accordance with International Accounting Standard IAS 34
Interim Financial Reporting, as adopted by the European Union and additional requirements, as applicable, in the Act on Annual Accounts no.
3/2006, the Act on Financial Undertakings no. 161/2002 and rules on accounting for credit institutions no. 834/2003.
The Condensed Interim Consolidated Financial Statements have been prepared using the historical cost basis except 
for the following:
The Condensed Interim Consolidated Financial Statements for the period ended 31 March 2024 comprise Kvika banki hf. and its subsidiaries
(together referred to as the Group). In note 4, the subsidiary TM tryggingar hf. has been classified as a disposal group held for sale. Insurance
operations are therefore a discontinued operation and are no longer reported as an operating segment. The Group operates four business
segments, Asset Management, Corporate Banking, Corporate Banking and Capital Markets and UK operations. Operating without a branch
network, Kvika provides businesses, investors, and individuals with investment banking, insurance, asset management, payment, and banking
services.
Due to the reclassification of the subsidiary TM tryggingar hf. as disposal group held for sale, in accordance with IFRS 5, comparative figures in the
Income Statement have been restated, reference is made to note 3.
fixed income securities are measured at fair value;
shares and other variable income securities are measured at fair value;
The Bank's management has assessed the Group's ability to continue as a going concern and is satisfied that the Group has the resources to
continue its operations.
The preparation of interim financial statements in accordance with IFRSs requires management to make judgements, estimates and assumptions
that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ
from these estimates.
The Condensed Interim Consolidated Financial Statements are prepared in Icelandic Krona (ISK), which is the Group's functional currency. All
financial information has been rounded to the nearest thousand, unless otherwise stated.
securities used for hedging are measured at fair value;
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  11

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
2
3. Discontinued  operations
Published 
accounts
Operation of 
TM tryggingar 3m  2023
2,254,695  (269,828) 1,984,867  
1,588,016  (99,783) 1,488,234  
4,578,482  (4,578,482) 0  
(3,576,652) 3,576,652   0 
218,381  (317,277) (98,896)
148,998  (34,437) 114,562  
(3,840,916) 1,206,279   (2,634,637)
40,933  (94) 40,839  
(244,757) 88,484   (156,273)
0  428,485  428,485 
Profit for the period 1,167,180  0  1,167,180 
3m 2024  3m 2023
202,733  269,828 
250  99,783 
5,015,694  4,578,482 
(4,042,635) (3,576,652)
55,790  317,277 
32,490  34,437 
(1,179,132) (1,236,461)
6,591  94 
(26,236) (82,099)
65,545  404,688 
38,298  30,181 
(7,660) (6,385)
Profit for the period from discontinued operations 96,183  428,485 
Assets 31.3.2024  31.12.2023 
867,238  995,561 
21,317,081  19,824,505 
14,856,884  14,543,128 
1,240,135  1,240,135 
12,596,914  12,615,362 
1,671,961  1,533,960 
Assets classified as held for sale 52,550,212  50,752,652 
Liabilities
24,832,425  23,267,425 
632,046  629,063 
1,204,867  1,045,123 
Liabilities associated with assets classified as held for sale 26,669,339  24,941,611 
1,067,335  1,018,962 
Net assets directly associated with disposal group 26,948,208  26,830,002 
 Insurance contract liabilities ....................................................................................................................................
 Deferred tax liabilities ..............................................................................................................................................
 Other liabilities .........................................................................................................................................................
 Other assets ..............................................................................................................................................................
 Cash and balances with Central Bank .......................................................................................................................
 Fixed income securities ............................................................................................................................................
 Shares and other variable income securities ...........................................................................................................
 Investment properties ..............................................................................................................................................
 Intangible assets .......................................................................................................................................................
 Net impairment ............................................................................................................................
 Discontinued operations .............................................................................................................
 Insurance revenue .......................................................................................................................
 Incurred claims and net expense from reinsurance contract held .............................................
 Net financial income ....................................................................................................................
 Other operating income ..............................................................................................................
At year‐end 2023, TM was classified as a disposal group held for sale and as a discontinued operation. TM is measured at the lower of carrying
amount upon the date of reclassification and fair value less costs to sell.
 Net interest income ..................................................................................................................................................
Restated Consolidated Income Statement for 3m 2023:
 Net interest income .....................................................................................................................
 Net fee and commission income .................................................................................................
 Net financial income .................................................................................................................................................
 Other operating income ...........................................................................................................................................
 Administrative expenses, stranded costs .................................................................................................................
 Income tax ................................................................................................................................................................
 Administrative expenses ..............................................................................................................
The results of the discontinued operations for the period are presented below:
 Net fee and commission income ..............................................................................................................................
 Income tax and other taxes .........................................................................................................
 Insurance revenue ....................................................................................................................................................
 Incurred claims and net expense from reinsurance contract held ..........................................................................
 Administrative expenses ..........................................................................................................................................
 Income tax ................................................................................................................................................................
 Net impairment ........................................................................................................................................................
The major classes of assets and liabilities of the discontinued operations are as follows:
 Eliminations with the Group .....................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  12

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
3
Segment information
4. Business  segments
‐
‐
‐
‐
Corporate 
Banking 
Asset  Commercial  & Capital  UK  Supporting 
3m 2024 Management   Banking  Markets  operations  units  Total 
2,471  1,011,316  911,167  411,265  (10,100) 2,326,118  
633,387  344,797  452,630  196,981  5,105  1,632,900 
27,615  2,352  (4,967) (1,179) 0   23,822 
(285) 80,596  ‐ 3,760  1,640  85,711 
Net operating income 663,187   1,439,061  1,358,830  610,827  (3,356) 4,068,550  
(247,327) (224,260) (248,774) (173,340) (730,480) (1,624,180)
(36,982) (400,791) (73,115) (102,705) (428,023) (1,041,616)
Administrative expenses (284,309) (625,051) (321,889) (276,045) (1,158,503) (2,665,797)
‐ (80,245) (69,785) (37,920) ‐ (187,950)
(210,615) (441,481) (342,579) (52,089) 1,046,765  ‐
Profit 
(loss) before tax from continuing operations 168,263   292,284  624,577  244,773  (115,094) 1,214,804  
Net segment revenue from external 
666,272  166,157  2,228,430  1,011,047  (3,356) 4,068,550  
Net segment revenue from other 
(3,085) 1,272,905   (869,600) (400,219) ‐ (0)
 Cost allocation ........................................................
 Salaries and related expenses ................................
 Other operating expenses ......................................
 Net impairment ......................................................
    customers .............................................................
    segments ..............................................................
 Net fee and commission income ............................
 Net financial income (expense) ..............................
 Other operating income .........................................
The UK operations consist of asset management and corporate finance services through Kvika Securities Ltd. and specialised lending services
through Ortus Secured Finance Ltd.
As disclosed in the Group's Consolidated Financial Statements for 2023, the subsidiary TM tryggingar hf. has been classified as a disposal group held for
sale. Insurance operation are therefore a discontinued operations and are no longer reported as an operating segment. During the period in 2024, the
Group defined four reportable operating segments; Asset Management, Commercial Banking, Corporate Banking and Capital Markets and UK
operations. The figures for the period in 2024 reflect the operating segment structure that was in place during that period, taking into account the
discontinuation of the insurance operations, and comparison amounts for the previous period have been restated accordingly. 
Segment reporting is based on the same principles and structure as internal reporting to the CEO and the Board of Directors. Segment performance is
evaluated on profit before tax and excludes income from discontinud operations. 
Reportable segments
UK operations is the only geographic area outside of Iceland and for the period in 2024 it accounts for 15.0% (3m 2023: 7.6%) of net operating
income. 
 Net interest
 income ................................................
Asset Management
Commercial Banking
Supporting units consist of the functions carried out by the Bank's support divisions, such as Risk Management, Finance, IT and Operations, etc. The
information presented relating to the supporting units does not represent an operating segment.
Products and services offered include asset management involving both domestic and foreign assets, private banking and private pension plans.
The management of a broad range of mutual funds, investment funds and institutional investor funds is included in this segment through the
operations of Kvika eignastýring hf.
Commercial Banking offers various forms of banking services and related advisory services. Included in this operating segment is Lykill, the leasin g
operations of the Group, and the Group's fintech operations, such as Auður, Netgíró and Aur, as well as the payment facilitation operations of
Straumur greiðslumiðlun hf.
Corporate Banking and Capital Markets
Corporate Banking & Capital Markets provide a range of professional services in the fields of specialised financing, securities and foreign exchang e
transactions and corporate finance services. The functions of Market Making and Treasury are also included in the segment although they are a
part of Kvika's Finance division.
UK operations
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  13

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
3
4. Business  segments (cont.)
Corporate 
Banking 
Asset  Commercial  & Capital  UK  Supporting 
3m 2023 * Management   Banking  Markets  operations  units  Total 
499  826,339  1,020,674  154,684  (17,328) 1,984,868  
677,175  266,570  491,800  108,344  (55,655) 1,488,234  
19,973  (2,211) (118,485) 1,826   0  (98,897)
(319) (1) 1,097   (777) ‐ 0 
2,463  92,555  (7,383) (91) 27,019   114,562 
Net operating income 699,790   1,183,252  1,387,703  263,986  (45,964) 3,488,767  
(279,459) (174,717) (291,179) (120,535) (710,546) (1,576,435)
(27,027) (371,111) (78,403) (155,634) (426,027) (1,058,202)
Administrative expenses (306,486) (545,828) (369,581) (276,169) (1,136,573) (2,634,637)
‐ (55,541) 3,497   92,883 ‐ 40,839 
(245,513) (382,733) (323,728) (86,125) 1,038,098  ‐
Profit (loss) before tax from continuing operations 147,792   199,150  697,891  (5,425) (144,439) 894,969  
Net segment revenue from external 
704,420  557,069  1,999,448  273,793  (45,963) 3,488,767  
Net segment revenue from other 
(4,629) 626,182   (611,745) (9,807) (1) (0)    segments ..............................................................
 Other operating expenses ......................................
 Net impairment ......................................................
 Cost allocation ........................................................
    customers .............................................................
 Net financial income ...............................................
 Share in profit of associates ...................................
 Other operating income .........................................
 Salaries and related expenses ................................
 Net interest income ................................................
 Net fee and commission income ............................
* Comparative information has been restated, reference is made to note 3 for further information.
The figures for the period in 2023 have been restated to reflect and the discontinuation of insurance operations.
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  14

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
4
Income statement
5. Net  interest income
Interest income is specified as follows:
3m 2024  3m 2023
239,310  343,882 
1,005,486  546,822 
4,909,331  3,265,345 
951,333  886,285 
330  813 
Total 7,105,791  5,043,148 
Interest expense is specified as follows:
3m 2024  3m 2023
2,634,755  1,564,431 
539,834  464,358 
865,307  774,549 
183,137  161,065 
538,165  64,740 
18,474  29,138 
Total 4,779,672  3,058,280 
Net interest income 2,326,118  1,984,867 
6. Net  fee and commission income
3m 2024  3m 2023
609,600  667,132 
448,207  504,966 
137,061  13,712 
539,453  374,890 
61,109  44,607 
Total fee income 1,795,429  1,605,305 
(162,530) (117,072)
Net fee and commission income 1,632,900  1,488,234 
 Derivatives ..................................................................................................................................................................................
 Capital markets and corporate finance ......................................................................................................................................
 Cash and balances with Central Bank ........................................................................................................................................
 Derivatives ..................................................................................................................................................................................
 Loans to customers ....................................................................................................................................................................
 Other interest income ................................................................................................................................................................
 Deposits  .....................................................................................................................................................................................
 Borrowings .................................................................................................................................................................................
 Subordinated liabilities ..............................................................................................................................................................
 Issued bonds ...............................................................................................................................................................................
 Fixed income securities (FVOCI) .................................................................................................................................................
 Other fee and commission income ............................................................................................................................................
* Thereof are lease liabilities' interest expense amounting to ISK 13 million  (3m 2023: ISK 20 million).
 Other interest expense* .............................................................................................................................................................
Total interest income recognised in respect of financial assets not carried at fair value through profit or loss amounts to ISK 5,106 million (3m 2023:
ISK 3,562 million). Total interest expense recognised in respect of financial liabilities not carried at fair value through profit or loss amounts to ISK
4,242 million (3m 2023: ISK 2,994 million).
Fee income is disclosed based on the nature and type of fee income generated across business segments. Information on net fee and commission
income by segment is disclosed in note 4.
 Loans and guarantees ................................................................................................................................................................
 Asset Management ....................................................................................................................................................................
 Cards and payment solutions .....................................................................................................................................................
 Fee and commission expense ....................................................................................................................................................
Asset management fees are earned by the Group for trust and fiduciary activities where the Group holds or invests assets on behalf of the
customers.
Fee and commission income from capital markets and corporate finance include fees and commissions generated by miscellaneous corporate
finance service, securities, derivatives and FX brokerage as well as market making.
Fee and commission income from cards and payment solutions relate to the Group's payment facilitations services as well as the issuance of debit
and credit cards.
Fee and commission income from loans and guarantees include the Group's lending operations, notification and collection fees, as well as fees from
issuing guarantees.
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  15

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
4
7. Net  financial income (expense)
Net financial income (expense) is specified as follows:
3m 2024  3m 2023
Net gain (loss) on financial assets and financial liabilities mandatorily measured at fair value through profit or loss
84,126  (33,092)
(61) (9,038)
(74,989) 5,655  
(22,728) 8,909  
21,407  (52,095)
16,066  (19,235)
Total 23,822  (98,896)
8. Foreign  currency exchange difference
Foreign currency exchange difference is specified as follows:
3m 2024  3m 2023
(664,278) (190,521)
680,344  171,285 
Total 16,066  (19,235)
9. Administrative  expenses
Administrative expenses are specified as follows: 3m 2024  3m 2023
1,624,180  1,576,435 
771,638  796,369 
216,153  183,786 
53,826  78,047 
Total 2,665,797  2,634,637 
10. Salaries  and related expenses
Salaries and related expenses are specified as follows: 3m 2024  3m 2023
1,200,913  1,177,002 
84,041  78,820 
7,103  15,616 
149,437  145,915 
63,781  62,348 
118,905  96,735 
Total 1,624,180  1,576,435 
249  282 
249  284 
The 2023 figures for average number of employees and employees at year ‐end have been restated to exclude employees of TM, as a result of the
reclassification of TM as a discontinued operation and an asset held for sale.
 Salaries .......................................................................................................................................................................................
Fixed income securities ............................................................................................................................................................
Shares and other variable income securities ...........................................................................................................................
Financial assets at fair value through OCI ................................................................................................................................
 Gain on other financial instruments ..........................................................................................................................................
Derivatives ................................................................................................................................................................................
Loans to customers ...................................................................................................................................................................
Foreign currency exchange difference ........................................................................................................................................
 Other operating expenses ..........................................................................................................................................................
 Loss on financial instruments at fair value through profit and loss ..........................................................................................
 Depreciation and amortisation ..................................................................................................................................................
The amount of performance based payments that has been expensed is based on the results for the period in 2024 and the guidelines on
performance based payments set forth in the Group’s remuneration policy. The performance based payments have not been allocated to any
employees or business segments and are subject to approval by the Board of Directors.
 Salaries and related expenses ....................................................................................................................................................
 Pension fund contributions ........................................................................................................................................................
According to Act No. 165/2011, passed in 2011, banks and other financial institutions providing VAT exempt services, must pay a tax based on salary
payments, called tax on financial activity. The current tax rate is 5,50% (2023: 5,50%).
 Tax on financial activity ..............................................................................................................................................................
 Other salary related expenses ....................................................................................................................................................
 Depreciation of right of use asset ..............................................................................................................................................
 Performance based payments excluding share‐based payments .............................................................................................
 Share‐based payment expenses ................................................................................................................................................
 Average number of full time employees during the period ......................................................................................................
 Total number of full time employees at the end of the period .................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  16

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
4
11.
3m 2024  3m 2023
(186,448) 45,917  
0  66 
(1,502) (5,144)
Total (187,950) 40,839  
12. Income  tax
13. Special  tax on financial activity
14. Special  tax on financial institutions
15. Earnings  per share
3m 2024  3m 2023 3m  2024  3m 2023 3m  2024  3m 2023
Net earnings attributable to equity holders of the Bank 983,154   719,746  96,183  428,485  1,079,337  1,148,230 
4,722,073  4,781,026  4,722,073  4,781,026  4,722,073  4,781,026 
279  0  279  0  279  0 
Total 4,722,353  4,781,026  4,722,353  4,781,026  4,722,353  4,781,026 
0.21 0.15 0.02 0.09 0.23 0.24
0.21 0.15 0.02 0.09 0.23 0.24
 Net change in impairment of loan commitments, guarantees and unused credit facilities .....................................................
The calculation of basic earnings per share is based on earnings attributable to shareholders and a weighted average number of shares outstanding
during the period. The diluted earnings per share is calculated by adjusting the weighted average number of ordinary shares outstanding to assume
conversion of all dilutive potential ordinary shares. The Bank has issued stock options that have a dilutive effect. 
Net impairment
According to Act No. 155/2010 on Special Tax on Financial Institutions, certain types of financial institutions, including banks, must pay a nnually a
tax based on the carrying amount of their liabilities as determined for tax purposes in excess of ISK 50 billion at year ‐end. The tax rate is set at
0,145% (2023: 0,145%) and the tax is not a deductible expense for income tax purposes. The tax is presented separately in the consolidated income
statement. 
The special tax on financial activity is an additional income tax which becomes effective when the income tax base exceeds ISK 1,000 million. It is
levied on the same entities as the tax on financial activity according to Act No. 90/2003. The tax rate is set at 6,0% (2023: 6,0%) and the tax is not a
deductible expense for income tax purposes. The tax is presented separately in the consolidated income statement. 
 Weighted average number of outstanding shares ..........................................
 Adjustments for stock options .........................................................................
 Basic earnings per share (ISK) ..........................................................................
 Diluted earnings per share (ISK) .......................................................................
The Bank and some of its subsidiaries will not
 pay income tax on its profit for 2024 due to the fact that Group has a tax loss carry forward that offsets 
the calculated income tax. At year ‐end 2023, the tax loss carry forward of the Group amounted to ISK 13.0 b illion. A substantial part of the tax loss
carry forward is utilisable until end of year 2028. Management is of the opinion that the Group's operations in the years to come will result in
taxable results which will be offset with the tax loss carry forward. The Group has therefore recognised the tax loss carry forward as a deferred tax
asset in the consolidated statement of financial position.
Income tax is recognised based on the tax rates and tax laws enacted during the current year, according to which the domestic corporate income tax
rate was 21.0% (2023: 20.0%). Companies within the Group, which operate outside of Iceland, recognise income tax in accordance with the
applicable tax laws in the country where they are resident.
 Net change in impairment of loans ............................................................................................................................................
 Net change in impairment of other assets .................................................................................................................................
Continuing 
operations
Discontinued 
operations
Continuing and 
discontinued operations
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  17

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
15
Statement of Financial Position
16. Cash  and balances with Central Bank
Cash and balances with Central Bank are specified as follows:
31.3.2024  31.12.2023 
21,876,905  13,479,131 
13,804  20,055 
8,486,255  6,356,998 
Included in cash and cash equivalents 30,376,963  19,856,184 
3,879,292  3,825,269 
Total 34,256,255  23,681,453 
17. Fixed  income securities
Fixed income securities are specified as follows:
Mandatorily measured at fair value through profit or loss 31.3.2024  31.12.2023 
2,590,308  2,515,820 
1,228,121  1,053,955 
255,337  114,075 
Measured at fair value through other comprehensive income
47,862,379  45,067,483 
3,461,580  14,675,118 
1,558,529  1,550,955 
Total 56,956,255  64,977,406 
18. Shares  and other variable income securities
Shares and other variable income securities are specified as follows:
Mandatorily measured at fair value through profit or loss 31.3.2024  31.12.2023 
753,307  512,703 
2,025,677  2,027,673 
1,535,099  1,317,103 
Total 4,314,083  3,857,480 
19. Securities  used for hedging
Securities used for hedging are specified as follows:
31.3.2024  31.12.2023 
1,200,879  1,201,377 
724,833  955,948 
9,810,580  14,258,492 
2,973  7,501 
967,241  428,995 
Total 12,706,506  16,852,313 
 Deposits with Central Bank ............................................................................................................................................
Listed government bonds and bonds with government guarantees ............................................................................ 
 Cash on hand .................................................................................................................................................................
 Listed unit shares ...........................................................................................................................................................
 Balances with banks .......................................................................................................................................................
 Restricted balances with Central Bank ‐ fixed reserve requirement .............................................................................
The Bank holds mandatory reserve deposit accounts with the Central Bank of Iceland in compliance with the Central Bank’s Rules on Minimum
Reserve Requirements No. 585/2018. Under these rules the reserve requirement is divided into two parts: a fixed reserve requirement bearing no
interest and an average maintenance level requirement bearing the same interest as that on deposit ‐taking institutions’ current accounts with the
Central Bank. The mandatory reserve deposit with the Central Bank and the receivables from the Central Bank are not available for the Group to
use in its daily operations.
Listed government bonds and bonds with government guarantees ......................................................................... 
Listed bonds ................................................................................................................................................................ 
Unlisted bonds ............................................................................................................................................................ 
 Listed bonds ...................................................................................................................................................................
Unlisted shares ............................................................................................................................................................
 
Unlisted unit shares in other funds ............................................................................................................................. 
Listed government bonds and bonds with government guarantees ......................................................................... 
 Listed shares ..................................................................................................................................................................
Listed treasury bills ..................................................................................................................................................... 
Listed bonds ................................................................................................................................................................ 
Listed shares ................................................................................................................................................................ 
 Unlisted unit shares .......................................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  18

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
15
20. Loans  to customers
Gross Gross Gross
carrying Book   carrying Book   carrying Book  
31.3.2024  amount value amount value amount value
38,384,949  37,537,859  109,037,209  107,632,261  147,422,158  145,170,120 
59,632  59,632  668,439  668,439  728,070  728,070 
Total 38,444,581  37,597,490  109,705,647  108,300,700  148,150,228  145,898,190 
Gross Gross Gross
carrying Book   carrying Book   carrying Book  
31.12.2023  amount value amount value amount value
39,375,650  38,386,498  98,484,058  97,254,551  137,859,708  135,641,049 
58,634  58,634  623,799  623,799  682,433  682,433 
Total 39,434,283  38,445,131  99,107,858  97,878,350  138,542,141  136,323,481 
21. Derivatives
31.3.2024  Assets  Liabilities  Assets  Liabilities 
34,926,446  34,270,799  988,433  0 
29,041,051  23,238,151  528,726  629,687 
0  5,633,744  0  56,746 
15,932,869  16,253,481  1,332,879  1,653,139 
682  0  215,196  0 
Total 79,901,049  79,396,174  3,065,234  2,339,572 
31.12.2023  Assets  Liabilities  Assets  Liabilities 
22,573,886  21,401,149  940,860  0 
38,881,527  34,034,527  461,388  121,213 
0  4,855,756  0  152,182 
17,837,698  18,895,783  880,434  1,923,509 
0  0  215,196  0 
Total 79,293,112  79,187,216  2,497,877  2,196,904 
31.3.2024  31.12.2023 
(52,556) 0  
(50,932) (65,695)
10,186  13,139 
Total (93,301) (52,556)
 Currency forwards ..................................................................................................
 Interest rate derivatives .........................................................................................
Notional 
 Equity options ........................................................................................................
The Group presents finance lease receivables as part of loans to customers at amortised cost. As at 31 March 2024, the book value of finance lease
receivables amounted to ISK 21,746 million (31.12.2023: ISK 21,504 million).
Loans to customers at FV through profit or loss .......
Carrying amount 
Loans to customers at amortised cost .......................
Loans to customers at FV through profit or loss .......
CorporatesIndividuals
Corporates
Carrying amount 
 Bond and equity total return swaps ......................................................................
Notional 
 Currency forwards used for hedge accounting .....................................................
The hedging gain recognised in OCI before tax is equal to the change in fair value used for measuring effectiveness. There is no ineffectiveness
recognised in profit or loss.
Set out below is the reconciliation of Foreign currency translation reserve component of equity due to hedge accounting and the analysis of other
comprehensive income:
 Balance at the beginning of the year .............................................................................................................................
 Foreign currency revaluation of the net foreign operations .........................................................................................
 Tax effect .......................................................................................................................................................................
Loans to customers at amortised cost .......................
 Equity options ........................................................................................................
 Bond and equity total return swaps ......................................................................
Derivatives are specified as follows:
 Currency forwards ..................................................................................................
 Interest rate derivatives .........................................................................................
The breakdown of the loan portfolio by individuals and corporates is specified as follows:
TotalIndividuals
Total
 Currency forwards used for hedge accounting .....................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  19

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
15
22. Group  entities
Share  Share 
Entity  Nature of operations  Domicile  31.3.2024  31.12.2023 
Real estate fund management Iceland   100%  100% 
Fund management Iceland   100%  100% 
Asset management Iceland   100%  100% 
Holding company Iceland   100%  100% 
Debt Collection Iceland   100%  100% 
Iceland  100%  100% 
Insurance company Iceland   100%  100% 
Insurance company Iceland   100%  100% 
Iceland  85%  85% 
UK  100%  100% 
UK  78%  78% 
23. Investment  in associates
a. Investment  in associates is accounted for using the equity method and is specified as follows:
Share  Share 
Entity  Nature of operations  Domicile  31.3.2024  31.12.2023 
Iceland  24%  24% 
Croatia  40%  40% 
b. Changes  in investments in associates are specified as follows: 31.3.2024  31.12.2023 
96,194  88,988 
0  (27,493)
0  35,756 
(352) (1,057)
Total 95,841  96,194 
24. Intangible  assets
a. Intangible assets are specified as follows: Customer  Software 
31.3.2024  Goodwill  relationships  Brands  and other  Total 
17,782,646  1,731,918  264,327  2,127,472  21,906,363 
0  0  0  144,800  144,800 
0  (51,260) (11,377) (103,476) (166,113)
16,639  6,266  392  (32) 23,265  
Balance as at 31 March 2024 17,799,285  1,686,924  253,342  2,168,764  21,908,315 
17,799,285  2,102,081  369,488  3,762,723  24,033,576 
0  (415,156) (116,146) (1,593,959) (2,125,261)
Balance as at 31 March 2024 17,799,285  1,686,924  253,342  2,168,764  21,908,315 
Customer  Software 
31.12.2023  Goodwill  relationships  Brands  and other  Total 
26,041,926  2,838,993  2,276,484  2,922,498  34,079,900 
0  315,558  0  1,224,158  1,539,716 
0  0  0  (20,338) (20,338)
0  (262,726) (152,986) (700,617) (853,603)
(8,300,327) (1,160,429) (1,859,875) (1,294,732) (12,615,363)
41,046  509  705  (3,484) 38,776  
Balance as at 31 December 2023 17,782,646  1,731,905  264,327  2,127,485  21,906,363 
17,782,646  2,095,815  369,096  3,617,923  23,865,479 
0  (363,896) (104,769) (1,490,451) (1,959,116)
Balance as at 31 December 2023 17,782,646  1,731,918  264,327  2,127,472  21,906,363 
Holding company
 Balance at the beginning of the year .............................................................................................................................
 Dividend received ..........................................................................................................................................................
 Share in profit of associates, net of income tax ............................................................................................................
 Currency adjustments ...................................................................
 Accumulated amortisation and impairment losses ......................
Digital solutions provider
 Amortisation ..................................................................................
 Balance as at 1 January 2024 ........................................................
 Exchange rate difference ...............................................................................................................................................
 Additions during the period ..........................................................
 Skilum ehf. ................................................................
The Group does not consider its associates material, neither individually nor as a group.
 Gláma fjárfestingar slhf. ............................................
 Kvika eignastýring hf. ................................................
 * Rafklettur ehf. ........................................................
 GAMMA Capital Management hf. ............................
 Moberg d. o. o. ..........................................................
Business consultancy services
 Amortisation ..................................................................................
 Currency adjustments ...................................................................
 Gross carrying amount ..................................................................
 Reclassified as assets held for sale ................................................
 Discontinued .................................................................................
 Balance as at 1 January 2023 ........................................................
 Gross carrying amount ..................................................................
 Accumulated amortisation and impairment losses ......................
 Additions during the period ..........................................................
 Ortus Secured Finance ltd. ........................................
Fund management
 * TM líftryggingar hf. .................................................
Payment facilitator
* At 31 December 2023 TM tryggingar hf., Rafklettur ehf. and TM líftryggingar were classified as a disposal group held for sale in accordance with
IFRS 5.
 FÍ Fasteignafélag GP ehf. ...........................................
 Straumur greiðslumiðlun hf. .....................................
 Kvika Securities ltd. ...................................................
Lending operations
 AC GP 3 ehf. ...............................................................
 * TM tryggingar hf. ....................................................
The main subsidiaries held directly or indirectly by the Group are listed in the table below. 
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  20

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
15
25. Operating  lease assets
Operating lease assets are specified as follows:
31.3.2024  31.12.2023 
530,144  884,222 
29,339  63,792 
(75,356) (257,979)
(28,682) (159,891)
Total 455,445  530,144 
951,747  1,116,581 
(496,302) (586,437)
Total 455,445  530,144 
26. Other  assets
Other assets are specified as follows:
31.3.2024  31.12.2023 
6,487,322  2,262,226 
6,972,389  6,342,227 
1,259,179  1,320,983 
590,348  475,693 
Total 15,309,237  10,401,128 
Right of use asset and lease receivables are
 specified as follows:
31.3.2024  31.12.2023 
1,320,983  1,576,582 
19,136  77,713 
1,741  2,655 
(82,681) (335,967)
Total 1,259,179  1,320,983 
27. Deposits  
Deposits  are specified as follows:
31.3.2024  31.12.2023 
113,561,646  113,625,055 
23,581,493  20,147,887 
Total 137,143,138  133,772,941 
28. Borrowings
Borrowings are specified as follows:
31.3.2024  31.12.2023 
22,157,792  8,792,963 
13,817,542  13,691,834 
1,582,728  1,332,264 
Total 37,558,062  23,817,062 
 Gross carrying amount ...................................................................................................................................................
 Balance as at 1 January ..................................................................................................................................................
 Additions ........................................................................................................................................................................
 Disposals ........................................................................................................................................................................
 Depreciation ..................................................................................................................................................................
 Accumulated depreciation ............................................................................................................................................
 Right of use asset and lease receivables .......................................................................................................................
 Unsettled transactions ...................................................................................................................................................
 Accounts receivable .......................................................................................................................................................
 Right of use asset and lease receivables as at 1 January ...............................................................................................
 Sundry assets .................................................................................................................................................................
 Time deposits .................................................................................................................................................................
 Indexation ......................................................................................................................................................................
 Depreciation and lease receivable instalment ..............................................................................................................
Right of use asset and lease receivables mostly consist of real estates for the Group's own use. The Group has entered into sublease contracts for
parts of the real estates which it does not use for its operations.
 Demand deposits ...........................................................................................................................................................
 Currency adjustments ....................................................................................................................................................
Money market deposits typically have a principal of ISK 5 ‐500 million and maturity between 1 day and 6 months and pay fixed interest rates.
Secured borrowings are in GBP and are to be paid at maturity. The borrowings mature in 2028.
The Group has not had any defaults of principal, interest or other breaches with respect to its debt issued and other borrowed funds.
 Secured borrowings .......................................................................................................................................................
 Other borrowings ...........................................................................................................................................................
 Money market deposits .................................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  21

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
15
29. Issued  bonds
Issued bonds are specified as follows:
First Maturity
Currency, nominal value issued Maturity type Terms  of interest 31.3.2024   31.12.2023 
Unsecured bonds:
2022 2024 At  maturity Floating,  3 month STIBOR + 2.80% 0   4,610,572 
2022 2024 At  maturity Floating,  3 month EURIBOR + 2.80 0   1,292,489 
2021 2024 At  maturity Floating,  3 month LIBOR + 1.75% 2,008,219   1,990,376 
2021 2024 At  maturity Floating,  3 month REIBOR + 0.90% 4,517,149  4,517,330 
2019 2024 Amortizing Floating,  1 month REIBOR + 1.50% 752,756  1,003,675 
2022 2025 At  maturity Floating,  3 month REIBOR + 1.25% 1,675,286  1,675,442 
2023 2026 At  maturity Floating,  3 month STIBOR + 4.10% 3,621,794   3,770,724 
2023 2026 At  maturity Floating,  3 month NIBOR + 4.10% 10,385,377   10,837,164 
2023 2026 At  maturity Floating,  3 month STIBOR + 4% 6,568,202   6,839,052 
2021 2027 At  maturity CPI ‐indexed, fixed 1.0% 6,718,500   6,599,359 
2022 2032 At  maturity CPI ‐indexed, fixed 1.40% 2,401,510   2,373,037 
Asset backed bonds:
2020 2024 Amortizing Fixed,  2.80% 103,462   206,206 
Total 38,752,257  45,715,427 
30. Subordinated  liabilities
a. Subordinated  liabilities:
First Maturity
Currency, nominal value issued Maturity type Terms  of interest 31.3.2024   31.12.2023 
2018 2028 At  maturity CPI ‐Indexed, fixed 7.50% 1,161,641   1,123,778 
2023 2034 At  maturity CPI ‐Indexed, fixed 6.25% 2,074,483   2,011,434 
2015 2045 At  maturity CPI ‐Indexed, fixed 5.25% 2,940,097   2,857,872 
Total 6,176,221  5,993,084 
b. Subordinated  liabilities are specified as follows:
31.3.2024  31.12.2023 
5,993,084  3,686,451 
0  2,000,000 
0  (164,833)
0  (58,171)
183,137  529,637 
Total 6,176,221  5,993,084 
31. Short  positions held for trading
Short positions held for trading are specified as follows:
31.3.2024  31.12.2023 
333,576  60,081 
274,950  71,664 
45,035  0 
Total 653,560  131,745 
 TM 15 1, ISK 2,000 million .................
 KVIKA 24 1119,  GBP 11.4 million ......
 KVIKA 32 0112, ISK 2,000 million .......
 KVB 19 01, ISK 5,000 million ..............
 KVIKA 24 1216 GB, ISK 4,500 million .
 EMTN 24 0204,  EUR 8.5 million ........
 KVB 21 02, ISK 5,400 million ..............
Listed government bonds and bonds with government guarantees ............................................................................ 
 Balance at the beginning of the year .............................................................................................................................
Subordinated liabilities are financial liabilities in the form of subordinated capital which, in case of the Group's voluntary or compulsory windin g‐
up, will not be repaid until after the claims of ordinary creditors have been met. In the calculation of the capital ratio, they are included within Tier
2 and are a part of the equity base. The amount eligible for Tier 2 capital treatment is amortised on a straight ‐line basis over the final 5 years to
maturity or up to 20% a year. The Group may only retire subordinated liabilities
 with the permission of the FME.
 Additions ........................................................................................................................................................................
 EMTN 24 0131,  SEK 500 million ........
 Listed shares ..................................................................................................................................................................
 KVIKA 25 1201 GB ISK 1,660 million ..
 KVB 18 02, ISK 800 million .................
 Lykill 24 06, ISK 1,570 million .............
For KVB 18 02, the Group has the right to repay the subordinated bond on any interest payment dates until maturity. In January 2024, the Group
gave notice to holders of the bond that they will be redeemed in full on the next interest payment date, 8 May 2024.
At the interest payment date in May 2025 for TM 15 01, the a nnual interest rate increases from 5.25% p.a. to 6.25% p.a. At the interest payment
date in May 2025 for TM 15 01, the Group has the right to repay the subordinated bond and on any subsequent interest payment dates until
maturity.
At the interest payment date in the year 2029 for KVIKA 34 1211 T2i, the Group has the right to repay the subordinated bond and on any
subsequent interest payment dates until maturity.
 EMTN 26 0511, SEK 275 million .........
 EMTN 26 0511, NOK 800 million .......
 EMTN 26 1123 GB, SEK 500 m. ..........
 KVIKA 34 1211 T2i, ISK 2,000 m. ........
 
Paid interest ...................................................................................................................................................................
 Listed bonds ...................................................................................................................................................................
 Paid interests due to indexation ....................................................................................................................................
 Accrued interests and indexation ..................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  22

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
15
32. Short  positions used for hedging
Short positions used for hedging are specified as follows:
31.3.2024  31.12.2023 
113,800  4,230 
Total 113,800  4,230 
33. Other  liabilities
Other liabilities are specified as follows:
31.3.2024  31.12.2023 
9,775,292  9,326,840 
3,997,607  2,396,243 
1,440,758  1,510,333 
1,041,046  1,136,312 
836,813  1,130,048 
197,855  304,045 
328,804  404,762 
17,119  15,673 
276,374  369,737 
Total 17,911,669  16,593,993 
Lease liability is specified as follows:
31.3.2024  31.12.2023 
1,510,333  1,827,582 
(113) 0  
3,060  4,639 
(91,775) (424,085)
19,253  102,198 
Total 1,440,758  1,510,333 
34. Share  capital
a. Share  capital
31.3.2024  31.12.2023 
4,722,073  4,781,026 
0  58,952 
310,000  310,000 
b. Changes  made to the nominal amount of share capital
c. Share  capital increase authorisations
 Unsettled transactions ...................................................................................................................................................
 Listed government bonds and bonds with government guarantees ............................................................................
Temporary provision II to the Articles of Association authorises the Board of Directors to increase the share capital of the Bank in stages by up to
ISK 70 million in nominal value, for the purposes of fulfilling stock option agreements in accordance with the Bank's stock option plan which has
been approved by Iceland Revenue and Customs as provided for in Art. 10 of the Income Tax Act, No. 90/2003. This authorisation is valid until 31
December 2024.
A copy of the Bank's Articles of Association, including the temporary pr ovisions, is available on the Bank's website, www.kvika.is, reference is
made to them for more information.
 Authorised but not issued shares ..................................................................................................................................
 Lease liability as at 1 January .........................................................................................................................................
 Other liabilities ...............................................................................................................................................................
Temporary provision I to the Articles of Association authorises the Board of Directors to issue options or warrants for up to ISK 240 million in
nominal value. To serve such instruments the Board of Directors is authorised to either increase the share capital accordingly or purchase own
shares, as permitted by law. This authorisation is valid until 31 March 2027.
 Nominal amount of treasury shares ..............................................................................................................................
The nominal value of shares issued by the Bank is ISK 1 per share. All currently issued shares are fully paid. The holders of shares are entitled to
receive dividends as approved by the general meeting and are entitled to one vote per nominal value of ISK 1 at shareholders' meetings.
Reference is made 
to the Bank's Articles of Association for more information about the share capital.
 Currency adjustments ....................................................................................................................................................
 Instalment ......................................................................................................................................................................
During the period in 2024 the Bank's share capital was decreased by ISK 59 m illion in nominal value following a resolution by the AGM to cancel
treasury shares.
 Accounts payable and accrued expenses ......................................................................................................................
 Additions during the period ...........................................................................................................................................
 Contingent consideration ..............................................................................................................................................
According to the Bank's Articles of Association dated 21 March 2024, the Board of Directors is authorised to increase the share capital as follows:
 Special taxes on financial institutions and financial activities ......................................................................................
 Withholding taxes ..........................................................................................................................................................
 Lease liability ..................................................................................................................................................................
 Salaries and salary related expenses .............................................................................................................................
 Share capital according to the Bank's Articles of Association .......................................................................................
 Indexation ......................................................................................................................................................................
 Expected credit loss allowance for loan commitments, guarantees and unused credit facilities ................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  23

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
15
35. Solvency  of a financial conglomerate
Solvency ratio of the Group as a financial conglomerate is specified as follows:
31.3.2024  31.12.2023
Available capital 
39,378,704  39,117,918 
14,596,662  14,754,678 
(3,889,554) (3,687,860)
Total 50,085,812  50,184,737 
Solvency requirement for insurance activities
10,462,027  9,622,063 
Own funds requirement for non insurance activities
14,530,701  13,826,577 
7,265,351  6,913,288 
Minimum capital requirement for non insurance activities 21,796,052   20,739,865 
12,895,997  11,579,758 
(1,857,262) (1,724,074)
Total 32,834,787  30,595,549 
50,085,812  50,184,737 
10,462,027  9,622,063 
32,834,787  30,595,549 
43,296,814  40,217,612 
1.16 1.25
 Deduction from own funds not eligible .........................................................................................................................
Solvency measures the Group's ability to take on setbacks, thus indicating its financial strength. The available capital and capital requirements o f
the Group is calculated as a financial conglomerate according to Articles 16, 17 and 18 of Act on Additional Supervision of Financial Conglomerates
No. 61/2017. The Group's solvency ratio is 1.16, with a regulatory minimum requirement of 1.0.
The FME has designated the Group as a financial conglomerate as defined in Article no. 3 of Act no. 61/2017 on Additional Supervision of Financial
Conglomerates. As a result of this designation, the Group's capital adequacy is calculated as the solvency ratio of a financial conglomerate. The
Group furthermore calculates the consolidated capital adequacy ratio for entities not belonging to the insurance sector by excluding the insurance
activities from calculation of risk weighted exposures and capital base. The Group similarly calculates the solvency ratio of entities solely belon ging
to the insurance sector. In 2023, the Group introduced a change in treatment of deductions from capital base due to significant holdings in
financial institutions and deferred tax assets. The calculations now take into account article 48 of the Capital Requirements Regulation no.
575/2013 of the EU.
 Own Funds eligible for non insurance activities
 ............................................................................................................
 Own Funds eligible for insurance activities ...................................................................................................................
 Solvency .........................................................................................................................................................................
 Own funds requirement for non insurance activities ...................................................................................................
 Minimum solvency of financial conglomerate ..............................................................................................................
 Solvency requirement (SCR) ..........................................................................................................................................
 Statutory minimum capital requirement (Pillar I) .........................................................................................................
 Additional capital requirements (Pillar II) ......................................................................................................................
 Additional capital protection buffers ............................................................................................................................
 Solvency Capital Requirements (SCR) ............................................................................................................................
 Adjustments to capital requirements in conglomerate ................................................................................................
 Solvency ratio .................................................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  24

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
15
36. Capital  adequacy ratio (CAR)
Own funds eligible for non insurance activities  31.3.2024  31.12.2023
83,260,699  81,957,804 
(1,079,337) 0  
(9,740) 0  
(1,000,000) (1,004,626)
Capital eligible as CET1 Capital 81,171,623  80,953,178 
(29,042,658) (29,040,706)
(16,231,439) (16,420,475)
(1,440,269) (1,559,045)
Common equity Tier 1 capital (CET 1) 34,457,258  33,932,952 
6,010,537  5,915,278 
(1,089,091) (730,312)
Total own funds 39,378,704  39,117,918 
Risk weighted exposures 
152,763,863  142,648,209 
3,240,471  3,082,235 
25,629,431  27,101,765 
Total risk weighted exposures 181,633,764  172,832,209 
Capital ratios
21.7%  22.6% 
19.0%  19.6% 
40,197,946 
22.1% 
19.4% 
12.0%  12.0% 
19.1%  18.7% 
13.9%  13.5% 
 Operational risk .............................................................................................................................................................
 Deferred tax asset ..........................................................................................................................................................
 Market risk .....................................................................................................................................................................
 Credit risk .......................................................................................................................................................................
 Deductions from Tier 2 capital ......................................................................................................................................
 Tier 2 capital ...................................................................................................................................................................
 Capital adequacy ratio, adjusted  ..................................................................................................................................
 Minimum CET 1 ratio requirement including supervisory buffers ................................................................................
 Total equity ....................................................................................................................................................................
 Minimum Capital adequacy ratio requirement .............................................................................................................
 Minimum Capital adequacy ratio requirement including supervisory buffers .............................................................
 Total own funds including unaudited (positive) retained earnings and expected dividends .......................................
 CET1 ratio, adjusted .......................................................................................................................................................
The Icelandic Financial Supervisory Authority (FME) supervises the Bank on a consolidated basis and, as such, receives information on the capital
adequacy of, and sets capital requirements for, the Bank as a whole. The Bank's regulatory capital calculations for credit risk and market risk are
based on the standardised approach and the
 capital calculations for operational risk are based on the basic indicator approach.
Minimum capital requirement is based on the Bank's Internal Capital Adequacy Assessment Process (ICAAP) and is reviewed by the FME through
the Supervisory Review and Evaluation Process (SREP). The Bank's minimum regulatory capital requirement, based on SREP from 2023 is 12.0%.
The minimum regulatory capital requirement including the additional capital buffers is 19.1% as at 31 March 2024.
 Capital adequacy ratio (CAR) .........................................................................................................................................
TM tryggingar hf. has been classified as a disposal group held for sale and as a discontinued operation. This does not affect the Group‘s capital
adequacy calculation. Nonetheless, assuming a cash sale of the subsidiary, the Bank’s capital would increase. To what extent the capital adequacy
ratio would increase depends on the sale price and whether the company will be sold in
 part or in full. 
 Goodwill and intangibles ...............................................................................................................................................
 Other unaudited (positive) changes to total equity in current period ..........................................................................
 Unaudited retained (positive) earnings from current period .......................................................................................
The capital adequacy ratio of the Group, excluding entities which belong to the insurance sector, calculated in accordance with Article 84 of Act
No. 161/2002 on Financial Undertakings, was 21.7%. The minimum requirement from the FME is 12.0%. The ratio is calculated as follows:
 Expected dividends and buy‐back according to dividend policy ..................................................................................
 Shares in other financial institutions .............................................................................................................................
 CET1 ratio .......................................................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  25

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
15
37. Solvency  of insurance activities
31.3.2024  31.12.2023
Own funds eligible for insurance activities solvency 
19,930,002  19,811,796 
(5,462,571) (5,527,999)
129,232  470,881 
Total 14,596,662  14,754,678 
Solvency requirement
554,145  536,675 
1,722,781  1,656,139 
6,245,384  6,108,228 
6,422,716  5,770,238 
1,350,348  1,169,357 
(5,003,459) (4,695,651)
Base Solvency Capital Requirements (Basic SCR) 11,291,914   10,544,986 
937,129  754,058 
(1,767,017) (1,676,980)
Solvency Capital Requirements (SCR) 10,462,027  9,622,063 
14,596,662  13,326,994 
10,462,027  9,209,719 
1.40 1.53
14,596,662  14,754,678 
5,075,455  4,520,510 
2.88 3.26
At 31 December 2023, the insurance operation was classified as a disposal group held for sale and as a discontinued operation.
38. Leverage  ratio
31.3.2024  31.12.2023
256,933,715  243,721,442 
1,314,701  1,187,911 
210,215  210,534 
Total exposure 258,458,631  245,119,887 
34,466,997  33,932,952 
13.3% 13.8% Leverage Ratio ...............................................................................................................................................................
 Tier 1 capital ...................................................................................................................................................................
 Equity eligible for insurance activities ...........................................................................................................................
 Market risk .....................................................................................................................................................................
 Counterparty default risk ...............................................................................................................................................
 Minimum required capital ratio after dividend ............................................................................................................
 Operational risk .............................................................................................................................................................
 Adjustment for the loss‐absorbing capacity of deferred taxes .....................................................................................
 Solvency .........................................................................................................................................................................
 Solvency requirement (SCR) ..........................................................................................................................................
 Solvency ratio after dividend .........................................................................................................................................
 Eligible items to meet the minimum capital ..................................................................................................................
 Minimum required capital (MRC) ..................................................................................................................................
 Multifaceted effects ......................................................................................................................................................
 Health insurance risk .....................................................................................................................................................
 Goodwill and intangibles ...............................................................................................................................................
 Difference between net technical provision in the financial statements and solvency rules ......................................
 Life insurance risk ..........................................................................................................................................................
 Non‐life insurance risk ...................................................................................................................................................
The Group calculates solvency capital and capital requirements for entities which belong to the insurance sector. The available capital and
required capital is calculated in accordance with Articles 88 and 96 of the Act on Insurance Activity No. 100/2016. This brings the solvency ratio for
entities which belong to the insurance sector to 1.40. Solvency capital requirements according to law is the minimum insurance companies have to
meet.
 On‐balance sheet exposures .........................................................................................................................................
 
Derivative exposures .....................................................................................................................................................
 Off ‐ balance sheet exposures .......................................................................................................................................
The leverage ratio is calculated on the basis of the Group's consolidated numbers as per regulation no. 575/2013 of the EU, which excludes the
Group's insurance subsidiary. According to Act no. 161/2002 on Financial Undertakings the minimum leverage ratio requirement is 3%.
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  26

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
38
Risk management
39. Hedging
40. Credit  risk ‐ overview
a. Definition
b. Management
c. Credit  approval process
d. Collateral
e. Credit  rating, control and provisioning
f. Loan  portfolio management
g. Impairment
h. Derivatives
i. Securities  used for hedging
Securities held as a hedge against derivatives positions of customers make up a part of the Group's portfolio of assets. The Group hedges
currency exposure between the Group's asset portfolio and its liabilities to the extent possible as part of managing its balance and keeping it
within approved limits. The Group applies hedge accounting according to IAS 39 against translation of foreign operations. Currency swap
agreements are used as a hedge instrument against translation difference arising from foreign operations. 
The Group offers derivative contracts in the form of swap contracts on highly liquid securities or currencies. On the day when the contract is
entered into, the Group purchases the underlying asset and hedges its exposure to price changes. Collateral is in the form of cash or listed, highly
liquid securities. The risk management sets rules about the level of collateralisation and monitors the compliance to these rules. Contracts are
closed if required levels of collateralisation are not met.
The Group hedges itself for market risk of derivative contracts by purchasing the underlying securities at the commencement of the contract.
Since the contracts require delivery of the underlying securities to the customer on the settlement day, the credit risk towards the issuer is
immaterial.
To ensure an effective diversification of the loan portfolio the board has set a limit framework defining maximum exposure as a ratio of the
Group’s equity and/or the total size of the loan portfolio. These limits include limitation on joint exposure to associated clients, exposure to
individual and associated industries, single regions and countries etc. It is the responsibility of risk management to monitor that these limits are
not being violated and to report discrepancies to
 the credit committee.
One of the Group's primary sources of risk is counterparty credit risk. Credit risk is defined as the risk that one party to a financial instrument will
cause a financial loss for the other party by failing to discharge an obligation.
The risk management unit is responsible for managing and reporting on credit risk. The Group uses a variety of tools and processes to manage
credit risk, including collaterals, hedges and loan portfolio management.
To a very large extent the Group's loan portfolio consists of senior loans, most of which are highly collateralised.
Securing loans with collateral is a traditional method to reduce credit risk. The Group uses different methods to reduce credit risk by obtaining
collateral from customers where appropriate. Such collateral gives the Group right to the collateralised assets for current and future obligations
incurred by the customer.
The Group places emphasis on pricing loans according to the value and quality of pledged collateral. The Group applies appropriate haircuts on
all collateral in order to ensure proper risk mitigation. For all collateral in listed securities, the Group maintains the right to liquidate collate ral in
case
 its market value falls below a predefined limit.
The risk management unit is responsible for credit rating and reviewing the loan portfolio. 
The Group monitors the value of collateral by listed securities on a real time basis and takes prompt action when necessary.
The originating department prepares a proposal for each larger loan or credit line which is presented to the credit committee for approval. The
proposal consists of a basic description of the client, the purpose of the loan, a simple credit assessment and arguments for or against granting
the loan. The committee decides whether there is need for further cred it assessment and on what terms the loan may be granted. For smaller
loans the originating department obtains a general credit approval from the credit committee with respect to the process, terms, credit limits and
total amount of the specific lending type.
 
A more thorough credit assessment may be conducted if considered appropriate and can include an assessment of a borrower's fundamental
credit strength as well as the value of any collateral. To assess the borrower's capacity to meet his or her obligations the committee can request
stress test analysis of the borrower's cash flow or call for third party assessments.
Provisioning for loan impairments is estimated on the basis of expected loss models assessing the portfolio as a whole as well as individual
lending. Risk management suggest a level of provisioning for the portfolio, based on the expected loss assessment. Risk management reassess
impairments in the event of collateral decay, delayed payments, indication of increased risk, or other early warning signs. Provisions require
approval from the credit committee. Refer to note 84 in the 2023 Consolidated Financial Statements for more information on the Group's
impairment policy.
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  27

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
40
41. Maximum  exposure to credit risk
31.3.2024  Public  Financial  Corporate 
On‐balance sheet exposure entities   institutions  customers  Individuals  31.3.2024 
25,770,001  8,486,255  34,256,255 
55,704,053  1,148,455  103,747  56,956,255 
10,110  108,290,589  37,597,490  145,898,190 
2,506,014  508,566  50,655  3,065,234 
394,133  999,055  9,276,808  3,380,064  14,050,059 
81,878,297  13,139,778  118,179,709  41,028,208  254,225,993 
Off‐balance sheet exposure
4,938,667  1,037,333  5,976,000 
211,640  211,640 
Maximum exposure to credit risk 81,878,297  13,139,778  123,330,017  42,065,541  260,413,633 
31.12.2023  Public  Financial  Corporate 
On‐balance sheet exposure entities   institutions  customers  Individuals  31.12.2023 
17,324,455  6,356,998  23,681,453 
63,928,567  944,255  104,584  64,977,406 
11,127  97,867,223  38,445,131  136,323,481 
1,981,114  466,082  50,680  2,497,877 
394,137  1,184,368  5,179,519  2,322,122  9,080,146 
81,658,286  10,466,735  103,617,408  40,817,934  236,560,362 
Off‐balance sheet exposure
4,175,306  1,029,698  5,205,004 
211,940  211,940 
Maximum exposure to credit risk 81,658,286  10,466,735  108,004,653  41,847,632  241,977,306 
42. Credit  quality of financial assets
Model parameters 31.03.2024 Base   Upside Downside
Unemployment rate 4.8% 4.4% 5.0%
Inflation CPI index 5.7% 6.0% 6.7%
Assigned weight 60.0% 10.0% 30.0%
Model parameters 31.12.2023 Base   Upside Downside
Unemployment rate 4.8% 4.4% 5.0%
Inflation CPI index 5.7% 6.0% 6.7%
Assigned weight 60.0% 10.0% 30.0%
The book value of financial assets which fall under the impairment require ments of IFRS 9 are presented net of expected credit losses ("ECL") in
the statement of financial position. The ECL are recalculated for each asset on at least a quarterly basis. The assessment of ECL is based upon
calculations being derived from models on PD, LGD and EAD. Furthermo re, the assessment is based upon management's assumptions regarding
the development of macroeconomic factors over the coming twelve mon ths. The assumptions for macroeconomic development are decided for
three scenarios: a base case, an upside scenario and a downside scenari o, including a probability weight for each scenario. The assumptions are
used for calculations of the probability weighted ECLs. The amount of ECL t o be recognized is dependent on the Group's definition of significant
increase in credit risk, which controls the impairment stage each asset i s allocated to. The factors that are used to measure significant increase
in credit risk include comparison of changes in PD values, annualized lifetime PD values, days past due and watch list.
Scenarios
Scenarios
The following table shows the first 12 month mac ro economic values for the variables used in the expected credit loss model. The Group utilises
an economic forecast which is aligned with requirements for the calcula tion of expected credit loss. Following the Group's acquisition of Ortus
Secured Finance ltd., the Group owns loan portfolios in two geographical segments, i.e. Iceland and the United Kingdom ("UK"). In general, the
Group utilises the same ECL methodology for the p ortfolios in both segments, although in the U K it is to a larger extent based on an individual
assessment by credit specialists. Reference is made to note 84 in the 2023 Consolidated Financial Statements for further information about the
Group‘s impairment methodology.
 Loans to customers ............................................................................
 Derivatives ..........................................................................................
 Other assets ........................................................................................
 Cash and balances with Central Bank ................................................
 Loan commitments .............................................................................
 Financial guarantee contracts ............................................................
The maximum exposure to credit risk for on ‐balance sheet and off ‐balance sheet items, before taking into account any collateral held or other
credit enhancements, is specified as
 follows:
 Cash and balances with Central Bank ................................................
 Fixed income securities ......................................................................
 Fixed income securities ......................................................................
 Loans to customers ............................................................................
 Derivatives ..........................................................................................
 Other assets ........................................................................................
 Loan commitments .............................................................................
 Financial guarantee contracts ............................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  28

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
42
42. Credit  quality of financial assets (cont.)
a.
Impairment Listed Unlisted
Claim due to expected Carrying Total   securities and securities and Residential Commercial Industrial Unsecured  
31.3.2024  value credit  loss amount %   collateral  Deposits liquid  funds other  funds real  estate real  estate Automobiles equipment Guarantees Other claim  value 
10,139  (29) 10,110   0.0% 11,104   0  0  0  0  0  10,777  0  0  327  2,246 
0  0  0  0.0% 0   0  0  0  0  0  0  0  0  0  0 
Corporate
 Real estate activities .................................. 40,745,616   (315,021) 40,430,595   27.7% 72,656,957   390,342  2,983  46,200  36,255,432  34,895,672  797,159  180,771  0  88,396  582,282 
 Construction .............................................. 21,503,165   (104,649) 21,398,515   14.7% 51,313,935   12,493  0  0  23,519,360  18,367,041  4,734,190  4,069,138  0  611,714  340,438 
 Service Activities ........................................ 14,534,229   (155,306) 14,378,923   9.9% 27,502,839   15,650  171,988  3,430,334  143,921  1,399,994  17,088,660  3,601,354  0  1,650,938  249,233 
 Accommodat. and Food Service Activit. ..... 9,355,282   (21,420) 9,333,862   6.4% 15,126,810   53,190  0  0  2,807,091  11,719,586  480,327  22,486  0  44,130  10,681 
 Activities of Holding Companies ................. 7,954,228   (687,810) 7,266,418   5.0% 18,944,886   50,596  406,301  6,587,719  6,725,208  3,526,128  203,209  193,735  804,699  447,292  179,727 
 Wholesale and Retail Trade ....................... 4,617,185   (56,944) 4,560,241   3.1% 7,359,547   23,463  0  0  173,000  1,340,490  3,431,246  1,502,153  100,000  789,195  94,406 
 Other ......................................................... 10,985,804   (63,768) 10,922,035   7.5% 35,124,598   365,474  6,637,420  5,475,309  6,412,442  8,673,096  2,177,958  1,985,089  771,049  2,626,760  484,059 
38,444,581  (847,091) 37,597,490   25.8% 52,855,400   8,262  310,856  601,250  8,613,169  2,242,731  39,020,384  781,982  0  1,276,766  8,303,567 
Total 148,150,228  (2,252,038) 145,898,190   100.0% 280,896,075   919,469  7,529,547  16,140,812  84,649,624  82,164,738  67,943,909  12,336,709  1,675,748  7,535,519  10,246,640 
Impairment Listed Unlisted
Claim due to expected Carrying Total   securities and securities and Residential Commercial Industrial Unsecured  
31.12.2023  value credit  loss amount %   collateral  Deposits liquid  funds other funds real  estate real  estate Automobiles equipment Guarantees Other claim  value 
11,188  (61) 11,127   0.0% 11,553   0  0  0  0  0  11,226  0  0  327  2,917 
0  0  0  0.0% 0   0  0  0  0  0  0  0  0  0  0 
Corporate
 Real estate activities .................................. 31,508,020   (234,278) 31,273,742   22.9% 59,514,931   25,414  0  54,180  28,804,369  29,574,694  797,093  205,458  0  53,722  457,258 
 Construction .............................................. 20,585,501   (82,066) 20,503,434   15.0% 45,467,134   158,988  0  0  17,773,191  18,323,454  4,611,641  3,990,110  0  609,751  243,654 
 Service Activities ........................................ 14,131,242   (148,035) 13,983,207   10.3% 25,910,745   45,492  79,577  2,228,442  270,692  1,306,517  16,455,917  2,742,679  0  2,781,430  380,611 
 Activities of Holding Companies ................. 7,975,924   (576,301) 7,399,624   5.4% 23,080,630   48,409  347,097  10,610,025  7,001,067  3,572,982  219,871  200,625  805,971  274,582  123,335 
 Wholesale and Retail Trade ....................... 7,974,891   (55,417) 7,919,474   5.8% 12,230,309   23,658  312,321  0  4,660,937  1,330,258  3,447,895  1,502,756  100,000  852,484  53,298 
 Accommodat. and Food Service Activit. ..... 6,180,590   (11,206) 6,169,384   4.5% 12,829,867   73,657  0  0  2,887,040  9,307,016  504,811  0  0  57,343  24,105 
 Other ......................................................... 10,740,500   (122,143) 10,618,358   7.8% 23,724,577   267,508  6,391,784  939,372  4,084,596  4,721,067  2,312,012  3,488,403  693,755  826,082  524,143 
39,434,283  (989,152) 38,445,131   28.2% 55,469,271   13,328  1,023,000  601,250  9,311,354  2,961,368  39,589,466  1,760,237  0  209,268  8,918,673 
Total 138,542,141  (2,218,660) 136,323,481   100.0% 258,239,017   656,453  8,153,779  14,433,268  74,793,246  71,097,357  67,949,932  13,890,267  1,599,726  5,664,989  10,727,994 
 Public entities .................................................
 Financial institutions .......................................
 Individual ........................................................
Collateral value is shown as the market ‐ or accounting value of collateral allocated to exposures. Other collateral includes financial claims, inventories and receivables. For larger uns ecured claim values, the Group is in general covered by covenants in
the loan agreement, e.g. with a negative pledge or other ring fencing.
Allocated collateral
Breakdown of loans to customers by industry and information on collateral and other credit enhancements
The Group applies the same valuation methods to collateral held as other comparable assets held by the Group. For other types of assets the Group uses third party valuation where possible. 
 Public entities .................................................
 Individual ........................................................
 Financial institutions .......................................
Allocated collateral
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  29

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
42
42. Credit  quality of financial assets (cont.)
b.
31.3.2024 
Loans to customers: Stage 1S t a g e  2S t a g e  3F V T P L T o t a l
87,702,521  580,353  488,625  88,771,499 
40,852,091  1,692,442  42,544,533 
5,572,348  1,691,257  7,263,605 
1,118,595  1,427,818  2,546,413 
5,743  24,365  6,081,496  239,445  6,351,050 
673,128  0  673,128 
Gross carrying amount 135,924,426  5,416,236  6,081,496  728,070  148,150,228 
(402,796) (164,762) (1,684,480) (2,252,039)
Book value 135,521,630  5,251,474  4,397,016  728,070  145,898,190 
Loan commitments, guarantees and unused credit facilities: Stage 1S t a g e  2S t a g e  3F V T P L T o t a l
4,249,913  1,974  4,251,887 
1,181,744  859  1,182,603 
534,284  47,042  581,326 
3,792  6,576  10,368 
0  1  161,455  161,457 
0 
Total off‐balance sheet amount 5,969,733  56,452  161,455  0  6,187,640 
(14,186) (1,021) (893) (16,100)
Net off‐balance sheet amount 5,955,547  55,431  160,562  0  6,171,540 
31.12.2023
Loans to customers: Stage 1S t a g e  2S t a g e  3F V T P L T o t a l
84,252,096  744,843  427,849  85,424,788 
33,627,994  2,687,909  39,319  36,355,221 
6,503,029  1,977,002  8,480,030 
769,496  485,101  1,254,597 
70,248  118,140  5,999,315  215,265  6,402,968 
624,537  0  624,537 
Gross carrying amount 125,847,398  6,012,995  5,999,315  682,433  138,542,141 
(367,895) (127,520) (1,723,244) (2,218,660)
Book value 125,479,503  5,885,474  4,276,072  682,433  136,323,481 
Loan commitments, guarantees and unused credit facilities: Stage 1S t a g e  2S t a g e  3F V T P L T o t a l
3,773,821  0  3,773,821 
920,679  920,679 
586,052  41,972  628,024 
3,407  1,594  5,002 
351  1  87,855  88,207 
0  0 
Total off‐balance sheet amount 5,284,311  43,567  87,855  0  5,415,733 
(13,897) (538) (1,253) (15,688)
Net off‐balance sheet amount 5,270,413  43,029  86,602  0  5,400,044 
 Non‐rated .............................................................................................
 Expected credit loss .............................................................................
 Expected credit loss .............................................................................
 Credit quality band I .............................................................................
 Credit quality band II ............................................................................
 Credit quality band III ...........................................................................
 Credit quality band IV ..........................................................................
 In default ..............................................................................................
 Credit quality band II ............................................................................
 Credit quality band III ...........................................................................
 Credit quality band IV ..........................................................................
 In default ..............................................................................................
 Non‐rated .............................................................................................
The following tables show financial assets subject to the impairment requirements of IFRS 9 broken down by credit quality bands where band i
denotes the lowest and band iv the highest credit risk. Assets measured at fair value through profit or loss are not subject to the stage
classification requirements of IFRS 9 but are nevertheless included in the tables in order to give a more complete picture of the credit quality of
loans to customers and reconcile the tables to the carrying amount on the balance sheet. The Bank has primarily used adjusted external credit
ratings to assess the default probability of its customers and some larger borrowers are furthermore individually assessed by credit specialists. I n
year‐end 2023 the Bank implemented it's own credit rating models for part of the loan portfolio and the Bank has intention to maintain this
development in 2024. 
 Credit quality band I .............................................................................
 Credit 
quality band II ............................................................................
 Credit quality band III ...........................................................................
 Credit quality band IV ..........................................................................
Credit quality of financial assets by credit quality band
 Credit quality band III ...........................................................................
 Credit quality band IV ..........................................................................
 In default ..............................................................................................
 Non‐rated .............................................................................................
 Expected credit loss .............................................................................
 Credit quality band I .............................................................................
 In default ..............................................................................................
 Non‐rated .............................................................................................
 Expected credit loss .............................................................................
 Credit quality band I .............................................................................
 Credit quality band II ............................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  30

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
42
42. Credit  quality of financial assets (cont.)
c. Breakdown  of loans to customers into not past due and past due
31.3.2024  Claim Expected Carrying
value credit  loss amount
137,484,396  (1,296,077) 136,188,319  
4,009,450  (72,445) 3,937,004  
2,168,105  (76,117) 2,091,988  
873,509  (48,477) 825,031  
1,406,211  (141,896) 1,264,314  
1,043,950  (217,178) 826,773  
1,164,607  (399,848) 764,760  
Total 148,150,228  (2,252,039) 145,898,190  
31.12.2023 Claim Expected Carrying
value credit  loss amount
127,943,377  (571,621) 127,371,756  
2,443,573  (50,506) 2,393,067  
1,933,845  (195,102) 1,738,744  
1,757,416  (74,920) 1,682,496  
1,494,409  (601,446) 892,963  
1,912,571  (197,428) 1,715,143  
1,056,951  (527,638) 529,313  
Total 138,542,141  (2,218,660) 136,323,481  
d. Allowance  for expected credit loss on loans to customers and loan commitments, guarantees and unused credit facilities
31.3.2024 
Expected credit loss allowance total
Stage 1S t a ge 2S t a ge 3T o t a l
Transfers of financial assets:
Balance as at 1 January 2024 381,793  128,058  1,724,497  2,234,348 
35,896  (27,745) (8,151) 0  
(24,681) 43,570   (18,889) 0  
(8,069) (33,821) 41,889   0 
(42,141) 51,084   92,761  101,704 
112,518  20,163  120,829  253,510 
(38,328) (15,429) (249,436) (303,193)
(6) (98) (18,126) (18,230)
Balance as at 31 March 2024 416,981  165,784  1,685,374  2,268,139 
Expected credit loss allowance for loans to customers
Stage 1S t a g e  2S t a g e  3T o t a l
Transfers of financial assets:
Balance as at 1 January 2024 367,895  127,520  1,723,244  2,218,660 
35,676  (27,669) (8,007)
(24,275) 43,159   (18,883)
(8,064) (33,790) 41,854  
(42,004) 50,944   93,007  101,948 
110,917  20,116  120,811  251,844 
(37,343) (15,420) (249,419) (302,183)
(6) (98) (18,126) (18,230)
Balance as at 31 March 2024 402,796  164,762  1,684,480  2,252,039 
 New financial assets, originated or purchased ..............................................................
 Derecognitions and maturities ......................................................................................
 Write‐offs .......................................................................................................................
 Derecognitions and maturities ......................................................................................
 Write‐offs .......................................................................................................................
 Transfer to Stage 1 ‐ (Initial recognition) ..................................................................
 Transfer to Stage 2 ‐ (significantly increased credit risk) .........................................
 Transfer to Stage 3 ‐ (credit impaired) .....................................................................
 Net remeasurement of loss allowance ..........................................................................
The following tables show changes in the expected credit loss allowance of loans to customers and for loan commitments, guarantees and unused
credit facilities during the period.
 Transfer to Stage 1 ‐ (Initial recognition) ..................................................................
 Transfer to Stage 2 ‐ (significantly increased credit risk) .........................................
 Transfer to Stage 3 ‐ (credit impaired) .....................................................................
 Net remeasurement of loss allowance ..........................................................................
 New financial assets, originated or purchased ..............................................................
 Past due 61‐90 days ..................................................................................................................................
 Past due 91‐180 days ................................................................................................................................
 Past due 181‐360 days ..............................................................................................................................
 Past due more than 360 days ...................................................................................................................
 Past due 91‐180 days ................................................................................................................................
 Past due 181‐360 days ..............................................................................................................................
 Past due more than 360 days ...................................................................................................................
 Not past due .............................................................................................................................................
 Past due 1‐30 days ....................................................................................................................................
 Past due 31‐60 days ..................................................................................................................................
 Not past due .............................................................................................................................................
 Past due 1‐30 days ....................................................................................................................................
 Past due 31‐60 days ..................................................................................................................................
 Past due 61‐90 days ..................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  31

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
42
42. Credit  quality of financial assets (cont.)
Expected credit loss allowance for loan commitments, guarantees and unused credit facilities
Stage 1S t a g e  2S t a g e  3T o t a l
Transfers of financial assets:
Balance as at 1 January 2024 13,897  538  1,253  15,688 
220  (76) (144) 0  
(405) 411   (6) 0  
(5) (30) 35   0 
(137) 140   (246) (243)
1,601  47  18  1,665 
(985) (8) (17) (1,010)
Balance as at 31 March 2024 14,186  1,021  893  16,100 
31.12.2023
Expected credit loss allowance total
Stage 1S t a g e  2S t a g e  3T o t a l
Transfers of financial assets:
Balance as at 1 January 2023 269,605  256,810  2,139,852  2,666,267 
67,581  (51,505) (16,076) 0  
(10,766) 17,183   (6,416) 0  
(32,752) (70,485) 103,237   0 
(93,507) 3,002   840,190  749,685 
284,314  84,645  655,505  1,024,464 
(102,625) (111,119) (881,568) (1,095,312)
(57) (471) (1,110,229) (1,110,757)
Balance as at 31 December 2023 381,793  128,058  1,724,497  2,234,348 
Expected credit loss allowance for loans to customers
Stage 1S t a g e  2S t a g e  3T o t a l
Transfers of financial assets:
Balance as at 1 January 2023 258,197  255,541  2,139,595  2,653,333 
67,521  (51,445) (16,076) 0  
(10,685) 17,102   (6,416) 0  
(32,750) (69,985) 102,736   0 
(91,795) 2,716   840,191  751,112 
278,426  84,474  654,771  1,017,672 
(100,961) (110,411) (881,328) (1,092,700)
(57) (471) (1,110,229) (1,110,757)
Balance as at 31 December 2023 367,895  127,520  1,723,244  2,218,660 
Expected credit loss allowance for loan commitments, guarantees and unused credit facilities
Stage 1S t a g e  2S t a g e  3T o t a l
Transfers of financial assets:
Balance as at 1 January 2023 11,408  1,269  258  12,935 
61  (61) 0  
(81) 81   0 
(2) (500) 502   0 
(1,712) 286   (1) (1,427)
5,888  171  734  6,792 
(1,664) (708) (239) (2,611)
Balance as at 31 December 2023 13,897  538  1,253  15,688 
 Transfer to Stage 2 ‐ (significantly increased credit risk) .........................................
 Transfer to Stage 3 ‐ (credit impaired) .....................................................................
 Net remeasurement of loss allowance ..........................................................................
 New financial assets, originated or purchased ..............................................................
 Derecognitions and maturities ......................................................................................
 Write‐offs .......................................................................................................................
 Transfer to Stage 1 ‐ (Initial recognition) ..................................................................
 Transfer to Stage 2 ‐ (significantly increased credit risk) .........................................
 Transfer to Stage 3 ‐ (credit impaired) .....................................................................
 Net remeasurement of loss allowance ..........................................................................
 New financial assets, originated or purchased ..............................................................
 Derecognitions and maturities ......................................................................................
 Transfer to Stage 3 ‐ (credit impaired) .....................................................................
 Net remeasurement of loss allowance ..........................................................................
 New financial assets, originated or purchased ..............................................................
 Derecognitions and maturities ......................................................................................
 Write‐offs .......................................................................................................................
 Transfer to Stage 1 ‐ (Initial recognition) ..................................................................
 Net remeasurement of loss allowance ..........................................................................
 New financial assets, originated or purchased ..............................................................
 Derecognitions and maturities ......................................................................................
 Transfer to Stage 1 ‐ (Initial recognition) ..................................................................
 Transfer to Stage 2 ‐ (significantly increased credit risk) .........................................
 Transfer to Stage 1 ‐ (Initial recognition) ..................................................................
 Transfer to Stage 2 ‐ (significantly increased credit risk) .........................................
 Transfer to Stage 3 ‐ (credit impaired) .....................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  32

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
42
43. Loan ‐to‐value
a. General
b. Breakdown
31.3.2024  %  31.12.2023  % 
43,927,074  30.1%  40,343,153  29.6% 
51,263,666  35.1%  43,106,020  31.6% 
34,641,582  23.7%  37,703,829  27.7% 
3,287,204  2.3%  2,996,007  2.2% 
2,320,829  1.6%  2,390,159  1.8% 
1,717,724  1.2%  726,535  0.5% 
858,382  0.6%  493,460  0.4% 
No or negligible collateral:
7,881,730  5.4%  8,564,319  6.3% 
Total 145,898,190  100.0%  136,323,481  100.0% 
44. Collateral  against exposures to derivatives
Fixed  Variable  Other 
income  income  Real  fixed 
Deposits  securities  securities  estate  assets  Other  31.3.2024 
1,829,783  125,357  114,840  2,069,981 
978,331  83,307  1,908,202  2,969,840 
34,710  3,597  122,643  160,950 
Total 2,842,824  212,261  2,145,686  0  0  0  5,200,771 
Fixed  Variable  Other 
income  income  Real  fixed 
Deposits  securities  securities  estate  assets  Other  31.12.2023 
1,077,011  137,593  710,208  1,924,812 
789,728  70,988  1,812,452  2,673,168 
66,501  43,028  109,529 
Total 1,933,241  208,581  2,565,687  0  0  0  4,707,509 
45. Large  exposures
31.3.2024  31.12.2023 
Large exposures before risk adjusted mitigation Number   Amount  Number  Amount 
3  12,713,252  3  12,343,465 
0  0  0  0 
0  0  0  0 
Total 3  12,713,252  3  12,343,465 
1  3,975,764  1  4,002,353 
 10‐20% of capital base ...................................................................................................
 20‐25% of capital base ...................................................................................................
 Exceeding 25% of capital base .......................................................................................
 Large exposures net of risk adjusted mitigation ............................................................
 Financial institutions ..............................
 Corporate customers ..............................
 Financial institutions ..............................
 Corporate customers ..............................
 Individuals ..............................................
 Greater than 200% .........................................................................................................
In accordance with regulation no. 575/2013 of the European Union on prudential requirements for credit institutions, which was incorporated
into Icelandic law with Act No. 38/2022, total exposure towards a customer is classified as a large exposure if it exceeds 10% of the financial
institution's Tier 1 capital (see note 
36).
According to the regulation a single exposure, net of risk adjusted mitigation, cannot exceed 25% of the eligible Tier 1 capital. Based on Icelandic
rules no. 789/2022 on the Application of Optional Provisions and Authorisations Pursuant to the Act on Financial Undertakings, the value of
exposures towards financial institutions shall not exceed 25% of the eligible Tier 1 capital or 10 bn. ISK, whichever is higher. Single large exposure s
net of risk adjusted mitigation take into account the effects of collateral and other credit enhancements held by the financial institution, and
other credit enhancements, in accordance with regulation no. 575/2013.
The loan ‐to‐value ratio (LTV) is the ratio of the gross amount of the loan to the value of the collateral, if any. The general creditworthiness of a
customer is viewed as the most reliable indicator of credit quality of a loan. Besides collateral included in the LTV ratios the Group uses other risk
mitigation measures, such as guarantees, negative pledge, cross‐collateral and collateralization of non‐quantifiable assets.
The breakdown of loans to customers by LTV is specified as follows:
 Less than 50% .................................................................................................................
 51‐70% ............................................................................................................................
 71‐90% ............................................................................................................................
 91‐
100% ..........................................................................................................................
 Individuals ..............................................
Amounts have been adjusted to exclude collateral in excess of claim value, i.e. overcollateralisation. 
 100‐125% ........................................................................................................................
 125‐200% ........................................................................................................................
 Other loans with no collateral ..................................................................................
The Group applies the same valuation methods to collateral held as other comparable assets held by the Group. Haircuts are applied to account
for liquidity and other factors which may affect the collateral value of the asset. 
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  33

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
45
46. Liquidity  risk
a. Definition
b. Management
31.3.2024  Unweighted Weighted Unweighted Weighted Unweighted Weighted
72,137,642  72,137,642  3,465,802  3,465,802  75,603,443  75,603,443 
588,399  500,139  588,399  500,139 
72,726,041  72,637,781  3,465,802  3,465,802  76,191,843  76,103,583 
118,304,616  29,611,987  5,632,111  2,854,768  123,936,727  32,466,754 
90,454  90,454  25,465  25,465  115,919  115,919 
17,490,059  13,246,603  3,353,242  352,304  20,843,301  13,598,907 
135,885,128  42,949,044  9,010,819  3,232,536  144,895,947  46,181,580 
1,410,377  1,410,377  8,671,974  8,671,974  10,082,351  10,082,351 
17,067,323  8,804,050  1,302,044  726,545  18,369,367  9,530,595 
(6,974,116)
18,477,701  10,214,427  9,974,018  2,424,402  28,451,718  19,612,946 
222% 429% 286%
31.12.2023  Unweighted Weighted Unweighted Weighted Unweighted Weighted
61,248,977  61,248,977  14,679,969  14,679,969  75,928,946  75,928,946 
353,146  300,174  353,146  300,174 
61,602,122  61,549,150  14,679,969  14,679,969  76,282,091  76,229,119 
111,263,406  27,328,035  6,915,793  3,406,552  118,179,199  30,734,587 
109,333  109,333  1,109  1,109  110,442  110,442 
14,896,187  11,083,491  8,222,931  887,195  23,119,118  11,970,686 
126,268,925  38,520,859  15,139,834  4,294,857  141,408,759  42,815,715 
196,556  196,556  6,312,949  6,312,949  6,509,505  6,509,505 
13,029,061  4,955,339  818,468  473,124  13,847,529  5,428,462 
(3,564,930)
13,225,617  5,151,895  7,131,417  3,221,142  20,357,034  11,937,968 
184% 1367% 247%
* Deposits include Money market deposits which are classified as Borrowings in the Consolidated Statement of Financial Position.
31.3.2024  31.12.2023 
137% 141%
Liquidity risk is the risk that the Group will encounter difficulty in meeting contractual payment obligations associated with its financial liabil ities
that are settled by delivering cash or another financial asset. This risk mainly arises from mismatches in the timing of cash flows. The Group has
internal rules that require certain matching of the maturities of assets and liabilities. Furthermore, to ensure the ability to meet liquidity needs ,
the Group maintains a stock of 
highly liquid unencumbered assets, e.g. cash, treasury bills and treasury bonds.
Liquidity is managed by treasury and monitored by risk management. Liquidity position is reported to the ALCO committee. The Central Bank of
Iceland sets minimum requirements for the liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR). The minimum 30 day LCR
regulatory requirement is 100% for LCR total, 50% minimum requirement for LCR in ISK and 80% minimum requirement for LCR in EUR. The
minimum requirement for LCR EUR only applies when the Group‘s commitments in EUR represent 10% or more of the Group´s total commitments.
The minimum regulatory requirement for NSFR total is 100%.
 NSFR total .........................................................................................................................................................................
 Other inflows ..........................................................................
 Restrictions on inflows ...........................................................
 Total inflows (0‐30 days) ....................................................
 Liquidity coverage ratio .....................................................
 Deposits* ................................................................................
 Other borrowings ...................................................................
 Other outflows .......................................................................
 Total outflows 
(0‐30 days) .................................................
 Short‐term deposits with other banks ...................................
 Restrictions on inflows ...........................................................
 Total inflows (0‐30 days) ....................................................
 Liquidity coverage ratio .....................................................
 Total liquid assets ..............................................................
 Deposits* ................................................................................
 Other borrowings ...................................................................
 Other outflows .......................................................................
 Total outflows (0‐30 days) .................................................
 Short‐term deposits with other banks ...................................
 Other inflows ..........................................................................
ISK Foreign  currency Total
 Liquid assets level 1 ...............................................................
 Liquid assets level 2 ...............................................................
ISK Foreign  currency Total
 Liquid assets level 1 ...............................................................
 Liquid assets level 2 ...............................................................
 Total liquid assets ..............................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  34

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
45
46. Liquidity  risk (cont.)
c. Maturity  analysis of financial assets and financial liabilities
31.3.2024  Up to 1  1‐3  3‐12  1‐5  Over 5  Gross inflow/  Carrying 
Financial assets by type month   months  months  years  years  (outflow)  amount 
Non‐derivative assets
34,263,964  34,263,964  34,256,255 
26,666,195  4,423,468  1,062,127  20,773,574  4,030,891  56,956,255  56,956,255 
1,453,521  2,860,562  4,314,083  4,314,083 
12,706,506  12,706,506  12,706,506 
7,904,060  13,447,752  43,014,022  101,751,022  6,555,409  172,672,265  145,898,190 
8,131,309  4,809,764  914,317  194,670  14,050,059  15,309,237 
91,125,554  22,680,983  47,851,028  122,719,265  10,586,300  294,963,130  269,440,526 
Derivative assets
 Inflow ....................................................... 14, 070,295  14,520,505  5,381,772  971,345  999,332  35,943,248 
 Outflow .................................................... (12, 925,635) (12,742,598) (5 ,265,725) (921,005) ( 991,807) (32,846,770)
1,144,660  1,777,907  116,047  50,339  7,525  3,096,478  3,065,234 
Up to 1  1‐3  3‐12  1‐5  Over 5  Gross inflow/  Carrying 
Financial liabilities by type month   months  months  years  years  (outflow)  amount 
Non‐derivative liabilities
(116,284,381) (7,914,081) (9,195,325) (4,401,578) (423,565) (138,218,930) 137,143,138  
(17,130,717) (2,169,193) (6,437,145) (18,978,543) (44,715,598) 37,558,062  
(90,454) (984,344) (8,807,359) (31,595,350) (2,495,901) (43,973,407) 38,752,257  
(157,403) (203,024) (2,631,757) (8,660,006) (11,652,189) 6,176,221  
(653,560) (653,560) 653,560  
(113,800) (113,800) 113,800  
(4,855,996) (11,144,131) (1,584,591) (377,622) (17,962,340) 17,911,669  
(139,128,908) (22,369,151) (26,227,443) (57,984,850) (11,579,471) (257,289,824) 238,308,707  
Derivative liabilities
 Inflow ....................................................... 8, 097,965  7,492,873  5,087,597  18,891,003  39,569,438 
 Outflow .................................................... (8, 875,276) (7,794,729) (5,113,513) (20, 177,115) (41,960,633)
(777,311) (301,856) (25,916) (1,286,112) 0   (2,391,195) 2,339,572  
Unrecognised financial items
 Inflow ....................................................... 168, 818  768,676  1,642,916  4,444,714  7,025,124 
 Outflow .................................................... (5, 976,000) (5,976,000)
 Inflow ....................................................... 164, 596  39,976  7,068  211,640 
 Outflow .................................................... ( 211,640) (211,640)
(6,018,822) 768,676   1,807,512  4,484,690  7,068  1,049,124 
Summary
91,125,554  22,680,983  47,851,028  122,719,265  10,586,300  294,963,130 
1,144,660  1,777,907  116,047  50,339  7,525  3,096,478 
(139,128,908) (22,369,151) (26,227,443) (57,984,850) (11,579,471) (257,289,824)
(777,311) (301,856) (25,916) (1,286,112) (2,391,195)
(47,636,006) 1,787,883   21,713,715  63,498,642  (985,647) 38,378,589  
(6,018,822) 768,676   1,807,512  4,484,690  7,068  1,049,124 
(53,654,828) 2,556,559   23,521,228  67,983,332  (978,578) 39,427,713  
 Derivative assets ...........................................
 Derivative liabilities .......................................
 Non‐derivative assets ...................................
 Non‐derivative liabilities ...............................
 Subordinated liabilities .................................
 Short positions used for hedging ..................
 Short positions held for trading ....................
 Cash and balances with Central Bank ...........
 Shares and other variable income securities 
 Fixed income securities .................................
 Securities used for hedging ...........................
 Loans to customers .......................................
 Other assets ..................................................
 Other liabilities ..............................................
Loan commitments
Financial guarantee contracts
 Net unrecognised items ................................
    unrecognised items .................................
Net assets (liabilities) excluding 
 Net assets (liabilities) .................................
 Issued bonds .................................................
 Deposits  ........................................................
 Borrowings ....................................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  35

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
45
46. Liquidity  risk (cont.)
31.12.2023 Up  to 1  1‐3  3‐12  1‐5  Over 5  Gross inflow/  Carrying 
Financial assets by type month   months  months  years  years  (outflow)  amount 
Non‐derivative assets
23,681,967  23,681,967  23,681,453 
20,151,355  1,974,339  21,340,000  18,908,801  2,602,910  64,977,406  64,977,406 
1,222,894  411,609  2,222,977  3,857,480  3,857,480 
16,852,313  16,852,313  16,852,313 
7,839,447  10,674,108  47,315,427  90,723,103  6,895,531  163,447,617  136,323,481 
0 
3,794,043  4,265,609  820,319  200,175  9,080,146  10,401,128 
73,542,019  17,325,666  71,698,723  109,832,080  9,498,441  281,896,929  256,093,262 
Derivative assets
 Inflow ....................................................... 8, 779,563  12,775,096  6,974,032  58,519  28,587,210 
 Outflow .................................................... (7, 921,683) (12,310,694) (5, 856,054) (902) (26,089,333)
857,879  464,402  1,117,978  57,617  0  2,497,877  2,497,877 
Up to 1  1‐3  3‐12  1‐5  Over 5  Gross inflow/  Carrying 
Financial liabilities by type month   months  months  years  years  (outflow)  amount 
Non‐derivative liabilities
(115,974,426) (8,335,449) (5,646,547) (4,284,193) (384,513) (134,625,128) 133,772,941  
(8,681,044) (430,722) (2,684,014) (19,142,369) (30,938,148) 23,817,062  
(109,333) (6,881,308) (9,407,820) (32,874,868) (2,457,149) (51,730,478) 45,715,427  
(354,804) (2,465,385) (8,399,596) (11,219,785) 5,993,084  
(71,664) (60,081) (131,745) 131,745  
(4,230) (4,230) 4,230  
(3,308,385) (11,197,785) (1,652,495) (492,619) (16,651,283) 16,593,993  
(128,144,851) (26,845,264) (19,745,680) (59,259,434) (11,305,569) (245,300,798) 226,028,482  
Derivative liabilities
 Inflow ....................................................... 15, 157,017  1,721,575  4,653,591  21,532,182 
 Outflow .................................................... (16, 222,964) (1,759,667) (4,886,823) (859, 631) (23,729,086)
(1,065,948) (38,092) (233,233) (859,631) 0   (2,196,904) 2,196,904  
Unrecognised financial items by type
Loan commitments
 Inflow ....................................................... 211, 062  61,502  1,464,611  4,579,989  140,836  6,458,000 
 Outflow .................................................... (5, 205,004) (5,205,004)
 Inflow ....................................................... 163, 896  40,976  7,068  211,940 
 Outflow .................................................... ( 211,940) (211,940)
(5,205,882) 61,502   1,628,507  4,620,965  147,905  1,252,996 
Summary
73,542,019  17,325,666  71,698,723  109,832,080  9,498,441  281,896,929 
857,879  464,402  1,117,978  57,617  2,497,877 
(128,144,851) (26,845,264) (19,745,680) (59,259,434) (11,305,569) (245,300,798)
(1,065,948) (38,092) (233,233) (859,631) (2,196,904)
(54,810,901) (9,093,288) 52,837,788   49,770,632  (1,807,128) 36,897,103  
(5,205,882) 61,502   1,628,507  4,620,965  147,905  1,252,996 
(60,016,783) (9,031,786) 54,466,295   54,391,597  (1,659,223) 38,150,099  
 Non‐derivative liabilities ...............................
 Deposits  ........................................................
 Borrowings ....................................................
 Subordinated liabilities .................................
 Short positions held for trading ....................
 Short positions used for hedging ..................
 Other liabilities ..............................................
 Derivative assets ...........................................
 Issued bonds .................................................
Financial guarantee contracts
 Non‐derivative assets ...................................
 Other assets ..................................................
It should be noted that the Group's expected cash flows sometimes vary considerably from the contractual cash flows, most significantly in that
demand deposits from customers are expected to remain stable or increase in the long term. In this case the presentation used reflects the worst
case scenario from the Group's perspective. Furthermore, the analysis does not consider any measures that could be taken to convert long ‐term
assets to cash through sale.
Cash flows relating to unrecognised balance sheet items (unused loan commitments and financial guarantee contracts) are presented separately
from financial assets and financial liabilities. Both contractual outflows and inflows are shown, to fully reflect the
 nature of these items.
 Net assets (liabilities) .................................
 Derivative liabilities .......................................
 Net unrecognised items ................................
Net assets (liabilities) excluding 
    unrecognised items .................................
Maturity analysis of financial assets and financial liabilities is based on contractual cash flows or, in the case of held for trading securities,
expected cash flows. If an amount receivable or payable is not fixed, e.g. for inflation indexed assets and liabilities, the maturity analysis uses
estimates based on current conditions.
 Loans to customers .......................................
 Reinsurance contract assets .........................
 Cash and balances with Central Bank ...........
 Shares and other variable income securities 
 Securities 
used for hedging ...........................
 Fixed income securities .................................
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  36

===== SIDA 40 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
46
47. Market  risk
a. Definition
b. Management
48. Interest  rate risk
a. Definition
b. Management
49. Interest  rate risk associated with trading portfolios
a. Breakdown
Up to 1  1‐3  3‐12  1‐5  Over 5   
month  months  months  years  years  31.3.2024 
29,922  92,177  2,361,837  508,641  2,992,577 
(18,686) (300) (384,174) (205,366) (608,526)
Net imbalance (18,686) 29,922   91,876  1,977,663  303,275  2,384,051 
Up to 1  1‐3  3‐12  1‐5  Over 5   
month  months  months  years  years  31.12.2023
14,750  36,695  280,459  3,063,674  1,033,718  4,429,295 
(3,730) (5,396) (32,720) (89,899) (131,745)
Net imbalance 14,750  32,964  275,063  3,030,954  943,820  4,297,551 
b. Sensitivity  analysis
Shift in  31.3.2024  31.12.2023 
basis points  Downward  Upward  Downward  Upward 
50  18,907  (18,777) 25,032   (24,632)
100  11,224  (12,651) 41,408   (39,687)
Total 30,132  (31,428) 66,440   (64,319)
The Group performs monthly sensitivity analysis on financial assets and liabilities in trading portfolios that are subject to interest rate risk. Th e
sensitivity analysis assumes a shift in the yield curves for all currencies. A parallel shift in yield curves would have the following impact on the
Group's pre‐tax profit and
 equity, assuming all other risk factors remain constant:
Indexed .....................................................................................................
Non‐indexed .............................................................................................
Market risk constitutes risk due to changes in the market prices of financial instruments and comprises interest rate risk, currency risk and other
price risk. Notes 48‐53 relate to market risk exposure.
The Group has a strict policy on controlling market risk and to keep the exposure within set limits. The risk management unit monitors market risk
limits on a daily basis and reports regularly to the ALCO committee and to the CEO.
The Group's exposure to interest rate risk is twofold. On the one hand, the Group has a proprietary portfolio of bonds, where market rates affect
prices and any fluctuations are recognised in the income statement. On the other hand, the Group has mismatch in assets and liabilities with
fixed interest terms. These include loans and swap contracts for securities on the asset side and borrowings and deposits on the liability side. This
mismatch does not create an immediate effect on the income statement but 
nevertheless affects the Group's economic value. 
The Group takes measures to minimise interest rate risk by matching the interest rate profile and duration of assets with the Group's liabilities as
well as using derivative and non‐derivative financial instruments to manage effectively the risk of an adverse impact on the Group's earnings. 
Proprietary positions which are subject to interest rate risk fall under the scope of the Group's market risk management.
 Fixed income securities ....................................................
 Short positions ‐ fixed income securities .........................
 Fixed income securities ....................................................
 Short positions ‐ fixed income securities .........................
The breakdown of financial assets and liabilities in trading portfolios by the earlier of interest repricing time or maturity is specified as follows:
 Condensed Interim Consolidated Financial Statements 31 March 2024 ‐ Unaudited  37

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