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

Condensed Interim 
Consolidated Financial Statements 
 31 March 2025

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

Condensed Interim 
Consolidated Financial Statements 
31 March 2025
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
26
42
46
Condensed Interim Consolidated Statement of Financial Position ..................................................................................
Condensed Interim Consolidated Statement of Changes in Equity .................................................................................
Notes to the Condensed Interim Consolidated Financial Statements .............................................................................
 ‐ General information ......................................................................................................................................................
Condensed Interim Consolidated Statement of Cash Flows ............................................................................................
 ‐ Risk management ..........................................................................................................................................................
 ‐ Financial assets and financial liabilities .........................................................................................................................
 ‐ Income statement ..........................................................................................................................................................
 ‐ 
Statement of Financial Position .....................................................................................................................................
 ‐ Other information ..........................................................................................................................................................
 ‐ Segment information .....................................................................................................................................................
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 Financial Statements 31 March 2025 ‐ Unaudited

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

Highlights
31.03.2025
Kvika in brief
Kvika is a challenger bank listed on the Nasdaq Iceland, 
offering a broad range of solutions for individuals, 
businesses, and investors.
Kvika operates in four business segments: Commercial 
banking, Investment Banking, Asset Management and UK 
operations, the latter through subsidiaries Kvika Asset 
Management and Kvika Limited. 
Kvika’s operations are underpinned by a distinctive brand 
strategy. Retail financial services are delivered through 
specialized consumer brands such as Auður, Aur, 
Netgíró, and Lykill, each focused on a specific customer 
nee, while corporate and institutional services are 
provided under the Kvika and Kvika Asset Management 
brands
Diversified operations
Revenues by segment / Q1 2025
Key figures
ISK m. 3M 2025 3M 2024
Net operating income 4,449 4,069
Profit before tax, continuing 
operations
701 1,215
RoTE, continuing operations 7.8% 15.5%
31.03.2025 31.12.2024
Total Assets 342,816 354,594
Loans to customers 160,583 150,203
Deposits 168,021 163,377
LCR 279% 360%
NSFR 159% 144%
87/100
Reitun ESG score
Baa2/Prime-2
Stable
Q1 24 Q2 24 Q3 24 Q4 24
4.1 4.0
4.5 4.7
Q1 25
4.4
Net operating income
ISK bn.
Loans to customers
ISK bn.
Total capital ratio
(%)
LCR ratio
(%)
0
20
40
60
80
100
120
140
160
180
200
220
240
0
20
40
60
80
100
120
140
160
180
92.0%
Q1 24
91.0%
Q2 24
89.0%
Q3 24
92.0%
Q4 24
146 147 146 150
Q1 25
161
95.5%
Loans to deposits*
0
5
10
15
20
25
30
35
40
45
50
0
5
10
15
20
25
19.0%
Q1 24
19.4%
Q2 24
20.6%
Q3 24
19.9%
Q4 24
21.7% 22.1% 23.5% 22.8%
Q1 25
20.2%
23.0%
CET1
-100
0
100
200
300
400
500
600
700
800
900
0
100
200
300
400
500
600
700
800
137%
Q1 24
142%
Q2 24
148%
Q3 24
144%
Q4 24
286%
475%
780%
360%
Q1 25
279%
159%
NSFR
24.4%
14.3%
18.0%
7.6%
35.7%
Commercial Banking
Investment Banking
Asset Management
UK
Treasury and supporting units
*Money market deposits were previously presented as part of borrowings but are now presented as part of deposits. Comparative figures have been restated.
Reference is made to note 2 in Kvika’s Consolidated Financial Statements dated 31.12.2024 for further information

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

Kvika banki hf.
Endorsement and Statement
by the Board of Directors and the CEO
About the Bank
Operations during the period in 2025
Financial position
TM sale finalised
Capital adequacy and dividends
Following the completion of the sale of TM in February 2025, the Group is no longer designated by the Financial Supervisory Authority of the Central
Bank of Iceland as a financial conglomerate as defined in Article no. 3 of Act no. 61/2017 on Additional Supervision of Financial Conglomerates.
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 2025. 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, asset management, payment, and banking services .
The Bank is listed on the main list of Nasdaq OMX Iceland. 
Kvika operates in four business segments, two which are operated under the Kvika Bank brand, Commercial Banking and Investment Banking, and two
in own‐brand subsidiaries, Kvika Asset Management and Kvika Limited, the Group's operations in the UK. 
Profit before taxes from continuing operations for the first quarter amounted to ISK 701 million (3m 2024: ISK 1,215 m illion). Pre‐tax annualised return
on weighted tangible equity (RoTE) from continuing operations was 7.8% for the quarter compared to 15.5% during the period in 2024, based on the
tangible equity position of Kvika, net of TM, at the beginning of the year adjusted for changes in share capital and transactions with treasury shares
during the year. Profit after taxes, including discontinued operations, for the 
first quarter amounted to ISK 2,086 million (3m 2024: ISK 1,083 million).
According to the Consolidated Statement of Financial Position, equity at the end of the period amounted to ISK 67,599 million (31.12. 2024: ISK 89,517
million), and total assets amounted to ISK 342,816 million (31.12.2024: ISK 354,594 million).
The Group's statement of financial position grew by ISK 11.8 billion or 3.3% during the period in 2025. Loans to customers grew by ISK 10.4 b illion or
6.9% during the period. Liquid assets amounted to ISK 130 billion at end of March 2025, which is equal to 37.9% of total assets and 81% of loans to
customers.
On 28 February 2025 Kvika and Landsbankinn hf. ("Landsbankinn") finalised the sale of 100% of TM tryggingar hf. ("TM") share capital to Landsbankinn.
The handover of the insurance company took place simultaneously, with Landsbankinn paying Kvika the agreed purchase price upon completion. As
previously communicated by Kvika on 30 May 2024, the final purchase price has been adjusted based on changes in TM’s tangible equity from the
beginning of 2024 until the closing date, 28 February 2025. The initially agreed purchase price was ISK 28.6 b illion, but the adjusted purchase price
amounts to approximately ISK 32.3 billion, reflecting the 2024 purchase price adjustment. According to a preliminary adjustment for the period from 31
December 2024 to 28 February 2025, the final purchase price is expected to be ISK 32.2 billion.
The Group's net operating income during the period was ISK 4,449 million (3m 2024: ISK 4,069 m illion). Net interest income amounted to ISK 2,917
million (3m 2024: ISK 2,326 million). Net fee income amounted to ISK 1,520 million (3m 2024: ISK 1,633 m
illion). Other net operating income amounted
to ISK 12 million (3m 2024: ISK 110 m illion). Administrative expenses during the period amounted to ISK 3,090 million (3m 2024: ISK 2,666 m illion).
During the period, the Group had a net impairment charge of ISK 65 million (3m 2024: ISK 188 million).
In mid‐January 2025, Kvika completed the sale of 3.25 ‐year floating‐rate bonds totalling SEK 600 million and NOK 400 million. These bonds were priced
at a spread of 200 basis points over 3 ‐month STIBOR (for the SEK tranche) and 3 ‐month NIBOR (for the NOK tranche). With over 20 investors
participating, it marked Kvika's largest international bond issuance to date.
In March 2025, Kvika completed the acquisition of the remaining management shares in Ortus Secured Finance ltd. ("OSF"). The transaction s upports
refinancing and streamlining of Kvika’s UK operations. An expense of ISK 580 million was recognized in the income statement, reflecting the revaluat ion
of the contingent consideration for the remaining purchase price of OSF.
The Bank's 2025 A nnual General Meeting ("AGM") approved a motion from the Board of Directors ("BOD") to renew the BOD's authorisation from the
Bank's 2024 AGM to purchase up to 10% of own shares subject to regulatory approvals. This authorisation applies until the next AGM in 2026. In
February 2025, based on authorisation from the AGM and approval from the Financial Supervisory Authority of the Central Bank of Iceland, the BOD
decided to establish a buy ‐back programme to carry out the purchase of shares for a total consideration amount of ISK 5 billion but for no higher
nominal amount than 400,000,000 shares.
The Central Bank's Resolution Authority presented the Group with their first minimum requirement for own funds and eligible liabilities (MREL) in
January 2025. The MREL requirements, including the combined buffer requirement, are 28.4% of RWEA and 6.0% of total exposure measure ("TEM"). At
the end of March 2025 these ratios were 46.3% and 31.1% respectively.
Kvika's continues to maintain a strong capital position, significantly above regulatory requirements. At the end of March 2025, the Group’s capital
adequacy ratio was 23.0% and CET1 ratio was 20.2%, excluding unaudited interim earnings for the first quarter of 2025. This compares to regulatory
requirements of 18.0% and 12.9%, including capital buffers.
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ 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
Helga Kristín Auðunsdóttir, Deputy Chairman
Ingunn Svala Leifsdóttir
Guðjón Reynisson
Páll Harðarson
Chief Executive Officer
Ármann Þorvaldsson
The Condensed Interim Consolidated Financial Statements of Kvika banki hf. for the period ended 31 March 2025 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 2025 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 2025 and the financial performance of the Group and changes of cash flows for the period 1 January to 31 March 2025.
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 2025 and confirmed them by the means of their signatures.
Reykjavík, 7 May 2025.
Board of Directors
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 institution 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 risk
management and main operations are described in the notes accompanying the Consolidated Financial Statements. Refer to notes 39 ‐54 on the
analysis of exposure to various types of risk.
The 2025 AGM approved a motion from the BOD that a dividend of ISK 5 per share be paid in the year 2025 on 2024 operations and following the
receipt of the purchase price for TM. Furthermore, the 2025 AGM also approved a motion from the BOD, based on an approval from the Financial
Supervisory Authority of the Central Bank of Iceland, to decrease the share capital of the Bank by 91,073,340 shares by cance lling treasury shares held
by the Bank. In April 2025, both the dividend payment and the share capital
 reduction were carried out.
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  3

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

Kvika banki hf.  Amounts are in ISK thousands
Condensed Interim Consolidated Income Statement
 For the period 1 January 2025 to 31 March 2025
Notes 3m  2025  3m 2024
7,300,364  7,105,791 
(4,383,859) (4,779,672)
Net interest income 5 2,916,505  2,326,118 
1,669,424  1,795,429 
(149,261) (162,530)
Net fee and commission income 6 1,520,163  1,632,900 
7 (47,751) 23,822  
59,705  85,711 
Other net operating income 11,953  109,532 
Net operating income 4,448,622  4,068,550 
9 (3,089,740) (2,665,797)
11 (65,461) (187,950)
12 (592,673) 0  
Profit before taxes from continuing operations 700,748  1,214,804 
13 (437,836) (151,869)
14 0   (13,138)
15 (77,180) (62,600)
Profit for the period from continuing operations 185,732  987,197 
Discontinued operations
3 1,900,729   96,183 
Profit for the period 2,086,461  1,083,379 
Notes 3m  2025  3m 2024
2,086,461  1,079,337 
24 0   4,042 
Profit for the period 2,086,461  1,083,379 
Earnings per share 16
0.45 0.23
0.45 0.23
The notes on pages 11 to 47 are an integral part of these Condensed Interim Consolidated Financial Statements.
 Diluted earnings per share (ISK per share) ..............................................................................................................
 Income tax ................................................................................................................................................................
 Attributable to the shareholders of Kvika banki hf. ................................................................................................
 Attributable to non‐controlling interest ..................................................................................................................
 Special tax on financial institutions 
.........................................................................................................................
 Special tax on financial activity ................................................................................................................................
 Basic earnings per share (ISK per share) ..................................................................................................................
 Profit after tax from discontinued operations .........................................................................................................
 Other operating income ...........................................................................................................................................
 Administrative expenses ..........................................................................................................................................
 Net impairment ........................................................................................................................................................
 Revaluation of contingent consideration ................................................................................................................
 Interest income ........................................................................................................................................................
 Interest expense .......................................................................................................................................................
 Fee and commission income ....................................................................................................................................
 Fee and commission expense ..................................................................................................................................
 Net financial (expense) income ...............................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  4

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

Kvika banki hf.  Amounts are in ISK thousands
Comprehensive Income 
 For the period 1 January 2025 to 31 March 2025
Notes 3m  2025  3m 2024 
Profit for the period 2,086,461  1,083,379 
45,872  190,233 
24,929  10,079 
Changes to reserve for financial assets at fair value through OCI 70,801  200,312 
(29,895) 9,465  
40,906  209,777 
Total comprehensive income for the period 2,127,368  1,293,156 
Notes 3m  2025  3m 2024 
2,127,368  1,289,114 
0  4,042 
Total comprehensive income for the period 2,127,368  1,293,156 
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 ......................................................................
Other comprehensive income that is or may be reclassified subsequently to 
profit and loss
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  5

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

Kvika banki hf.  Amounts are in ISK thousands
Condensed Interim Consolidated Statement of Financial Position
 As at 31 March 2025
Assets Notes 31.3.2025   31.12.2024* 
17 43,909,157   18,593,420 
18 24,081,301   11,529,571 
19 160,582,831   150,202,696 
20 62,165,150   64,794,561 
21 5,602,795   5,432,254 
22 8,835,823   12,601,026 
23 2,572,600   1,196,744 
25 111,914   112,855 
340,421  0 
26 21,440,029   21,693,399 
27 222,008   215,168 
428,528  543,413 
13 1,819,615   2,273,265 
28 10,703,784   7,703,693 
30   57,702,377 
Total assets 342,815,958  354,594,442 
Liabilities
46 168,020,757   163,377,879 
29 13,915,528   14,389,515 
30 47,767,413   37,123,285 
31 5,766,866   5,628,982 
32 521,286   153,001 
33 4,789   42,035 
23 646,696   2,932,429 
354,631  466,096 
34 38,219,103   13,634,905 
30   27,329,028 
Total liabilities 275,217,069  265,077,155 
Equity
35 4,611,532   4,660,180 
45,888,135  46,750,093 
3,230,715  9,356,543 
13,789,861  28,671,825 
Total equity attributable to the shareholders of Kvika banki hf. 67,520,242  89,438,641 
24 78,646   78,646 
Total equity 67,598,888  89,517,287 
Total liabilities and equity 342,815,958  354,594,442 
* Comparative information has been restated, reference is made to note 2 for further information.
The notes on pages 11 to 47 are an integral part of these Condensed Interim Consolidated Financial Statements.
 Non‐controlling interest .....................................................................................................................
 Short positions held for trading .........................................................................................................
 Short positions used for hedging .......................................................................................................
 Share capital .......................................................................................................................................
 Share premium ...................................................................................................................................
 Other liabilities ...................................................................................................................................
 Liabilities associated with assets classified as held for sale ..............................................................
 Deferred tax liabilities ........................................................................................................................
 Derivatives ..........................................................................................................................................
 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 .........................................................................................................................................
 Investment properties ........................................................................................................................
 Other reserves ....................................................................................................................................
 Retained earnings ...............................................................................................................................
 Loans to credit institutions .................................................................................................................
 Issued bonds .......................................................................................................................................
 Operating lease assets ........................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ 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 2025 to 31 March 2025
Deficit  Trans‐  Restricted  Total share‐  Non‐ 
Share  Share  Option  reduction  Fair value  lation  retained   Retained  holders'  controlling  Total 
1 January 2025 to 31 March 2025 Notes capital   premium  reserve  reserve  reserve  reserve  earnings  earnings  equity  interest  equity 
4,660,180  46,750,093  109,131  1,203,697  (582,818) 79,090   8,547,443  28,671,825  89,438,641  78,646  89,517,287 
2,086,461  2,086,461  0  2,086,461 
45,872  45,872  45,872 
24,929  24,929  24,929 
(29,895) (29,895) 0   (29,895)
0  0  0  0  70,801  (29,895) 0   2,086,461  2,127,368  0  2,127,368 
(6,165,779) 6,165,779   0  0 
21,215  (21,215) 0   0 
(48,648) (861,958) (910,606) (910,606)
(23,135,160) (23,135,160) (23,135,160)
(22,170) 22,170   0  0 
Equity as at 31 March 2025 4,611,532  45,888,135  86,961  1,203,697  (512,017) 49,195   2,402,878  13,789,861  67,520,242  78,646  67,598,888 
The notes on pages 11 to 47 are an integral part of these Condensed Interim Consolidated Financial Statements.
(33,607,571) 45,888,135  86,961  1,154,501  (5,123,549) 49,195   2,315,917  12,586,164  78,646 
 Restricted due to development costs ..........................................................
 Treasury shares acquired as part of a buy‐back programme ...................
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 2025 .........................................................................
 Total comprehensive income for the period ...............................................
 Realized net loss transferred to the Income Statement ..............................
 Changes in fair value of financial assets through OCI .................................
 Dividend paid to shareholders ..................................................................
Transactions with owners of the Bank
 Share options ............................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ 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 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 
Translation of foreign operations
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  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.
 Restricted due to development costs ..........................................................
Other reserves
 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 .......................
 Total comprehensive income for the period ...............................................
 Share options ............................................................................................
 Restricted due to subsidiaries and associates .............................................
Transactions with owners of the Bank
 Equity as at 1 January 2024 .........................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  8

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

Kvika banki hf.  Amounts are in ISK thousands
Condensed Interim Consolidated Statement of Cash Flows
 For the period 1 January 2025 to 31 March 2025
Cash flows from operating activities Notes 3m  2025  3m 2024*
2,086,461  1,083,379 
55,660  (116,490)
480,013  269,978 
(2,916,505) (2,326,118)
65,461  187,950 
515,016  227,607 
(1,900,729) (69,833)
0  9,740 
(1,614,624) (733,788)
Changes in:
(7,557,338) 0  
(10,478,467) 8,271,541  
2,543,076  (456,603)
(170,541) 4,145,807  
2,489,407  (8,162,422)
(1,375,856) (567,357)
(20,987) 46,017  
(3,200,092) (4,996,583)
4,239,967  2,717,880 
331,039  631,386 
(2,425,250) 134,775  
1,330,003  1,449,778 
(14,295,040) 3,214,219  
6,990,904  6,675,176 
(3,704,009) (4,025,428)
(73,534) (181,928)
Net cash (to) from operating activities (12,696,302) 4,948,251  
Cash flows from investing activities
26 (69,878) (144,800)
(38,885) 5,924  
32,284,578  0 
Net cash from (to) investing activities 32,175,815  (138,876)
Cash flows from financing activities
931,958  5,769,735 
10,644,128  0 
(910,606) 0  
(100,415) (91,888)
Net cash from financing activities 10,565,064  5,677,847 
30,044,577  10,487,222 
22,500,191  19,856,184 
339,328  33,557 
Cash and cash equivalents at the end of the period 17 52,884,096   30,376,963 
Cash and cash equivalents
17 43,909,157   25,770,001 
17 (5,745,226) (3,879,292)
18 14,720,164   8,486,254 
Cash and cash equivalents at the end of the period 52,884,096  30,376,963 
* Comparative information has been restated, reference is made to note 2 for further information.
The notes on pages 11 to 47 are an integral part of these Condensed Interim Consolidated Financial Statements.
 Cash and balances with Central Bank ..........................................................................................................
 Loans to credit institutions ‐ Bank accounts ................................................................................................
 Restricted balances with Central Bank ‐ fixed reserve requirement ...........................................................
 Net interest income ...................................................................................................................................
 Income tax and special tax on financial activity and institutions .............................................................
 Net impairment .........................................................................................................................................
 Other assets ...............................................................................................................................................
 Operating lease assets ...............................................................................................................................
 Derivatives ‐ liabilities ...............................................................................................................................
 Deposits  ....................................................................................................................................................
 Short positions ...........................................................................................................................................
 Other liabilities ..........................................................................................................................................
 Other adjustments .....................................................................................................................................
 Profit for the period .....................................................................................................................................
Adjustments for:
 Indexation and exchange rate difference .................................................................................................
 Depreciation and amortisation .................................................................................................................
 Adjustment relating to assets held for sale ...............................................................................................
 Derivatives ‐ assets ....................................................................................................................................
 Fixed income securities .............................................................................................................................
 Shares and other variable income securities ............................................................................................
 Securities used for hedging .......................................................................................................................
 Loans to customers ....................................................................................................................................
 Loans to credit institutions ........................................................................................................................
 Effects of exchange rate fluctuations on cash and cash equivalents ..........................................................
 Cash and cash equivalents at the beginning of the year .............................................................................
 Net change in cash and cash equivalents ....................................................................................................
 Repayment of lease liabilities ......................................................................................................................
 Issued bonds ................................................................................................................................................
 Borrowings ...................................................................................................................................................
 Disposal of subsidiary and associates, net of cash ......................................................................................
 Interest received ..........................................................................................................................................
 Acquired own shares ....................................................................................................................................
 Additions of intangible assets ......................................................................................................................
 Net acquisition of property and equipment ................................................................................................
 Interest paid .................................................................................................................................................
 Income tax paid ............................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  9

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

Kvika banki hf.
Notes to the Condensed Interim Consolidated Financial Statements
0
General information Page Risk  management Page
1  Reporting entity ............................................................................ 11 39  Hedging ........................................................................................... 26
2  Basis of preparation ..................................................................... 11 40  Credit risk ‐ overview ...................................................................... 26
3  Discontinued operations .............................................................. 12 41  Maximum exposure to credit risk .................................................. 27
42  Credit quality of financial assets .................................................... 27
Segment information 43  Loan‐to‐value ................................................................................. 32
4  Business segments ....................................................................... 13 44  Collateral against exposures to derivatives ................................... 32
45  Large exposures .............................................................................. 32
Income statement 46  Liquidity risk ................................................................................... 33
5  Net interest income ...................................................................... 15 47  Market risk ...................................................................................... 37
6  Net fee and commission income .................................................. 15 48  Interest rate risk ............................................................................. 37
7  Net financial (expense) income .................................................... 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 ............................................................................ 16 53  Equity risk ....................................................................................... 41
12  Revaluation of contingent consideration ..................................... 16 54  Operational risk .............................................................................. 41
13  Income tax .................................................................................... 17
14  Special tax on financial activity .................................................... 17 Financial assets and liabilities
15  Special tax on financial institutions .............................................. 17 55  Accounting classif. of financial assets and financial liabilities ....... 42
16  Earnings per share ........................................................................ 17 56  Financial assets and financial liabilities measured at fair value .... 43
Statement of Financial Position
17  Cash and balances with Central Bank .......................................... 18 Other information
18  Loans to credit institutions ........................................................... 18 57  Pledged assets ................................................................................ 46
19  Loans to customers ...................................................................... 18 58  Related parties ............................................................................... 46
20  Fixed income securities ................................................................ 18 59  Others matters ............................................................................... 47
21  Shares and other variable income securities ............................... 19 60  Events after the reporting date ...................................................... 47
22  Securities used for hedging .......................................................... 19
23  Derivatives .................................................................................... 19
24  Group entities ............................................................................... 20
25  Investment in associates .............................................................. 20
26  Intangible assets ........................................................................... 20
27  Operating lease assets .................................................................. 21
28  Other assets .................................................................................. 21
29  Borrowings ................................................................................... 21
30  Issued bonds ................................................................................. 22
31  Subordinated liabilities ................................................................ 22
32  Short positions held for trading ................................................... 22
33  Short positions used for hedging ................................................. 22
34  Other liabilities ............................................................................. 23
35  Share capital ................................................................................. 23
36  Capital adequacy ratio (CAR) ........................................................ 24
37  Leverage ratio ............................................................................... 25
38 Minimum requirements for own funds
 and eligible liabilities (MREL) ....................................................... 25
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ 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
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 2024.
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.
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 of Iceland ("FME"). Following the completion of the sale of TM in February 2025, the Group is no longer 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 7 May
2025.
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 2025 comprise Kvika banki hf. and its subsidiaries
(together referred to as the Group). The Group operates four business segments, Asset Management, Commercial Banking, Investment Banking
and UK operations. Operating without a branch network, Kvika provides businesses, investors, and individuals with investment banking, asset
management, payment, and banking services.
fixed income securities are measured at fair value;
shares and other variable income securities are measured at fair value;
The Bank's management has assessed the Group's ability to continue as a going concern and is satisfied that the Group has the resources to
continue its operations.
The preparation of 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;
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 2025.
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. 
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
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  11

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
0
g. Change  in presentation
Restated
31.12.2024  Reclassified   31.12.2024 
Assets:
28,319,192  (9,725,772) 18,593,420  
0  11,529,571  11,529,571 
9,507,492  (1,803,799) 7,703,693  
316,767,759  316,767,759 
354,594,442  0  354,594,442 
Liabilities and Equity:
265,077,155  265,077,155 
89,517,287  89,517,287 
354,594,442  0  354,594,442 
Restated
Lines in the Consolidated Statement of Cash Flows 3m 2024  Restated 3m 2024 
(4,942,559) (54,023) (4,996,583)
23,681,453  (3,825,269) 19,856,184  
34,256,255  (3,879,293) 30,376,963  
3. Discontinued  operations
31.3.2025  31.12.2024 
0  57,702,377 
0  (27,329,028)
0  (55,207)
Net assets directly associated with disposal group 0  30,318,143 
31.3.2025  31.12.2024 
30,318,143  26,830,002 
1,900,729  3,460,071 
(32,284,578) 0  
67,920  0 
(2,214) 28,070  
0  30,318,143 
 Cash and balance with Central bank .................................................................................................................
 Liabilities ...........................................................................................................................................................
 Equity .................................................................................................................................................................
Total liabilities and equity
 All other assets ..................................................................................................................................................
 Loans to credit institutions ...............................................................................................................................
 Other assets .......................................................................................................................................................
 Cash and cash equivalents at the end of the period ........................................................................................
Total assets
Set out below is the reconciliation of Net assets directly associated with disposal group:
 Assets classified as held for sale ..............................................................................................................................................
 Liabilities associated with assets classified as held for sale ....................................................................................................
 Eliminations with the Group ....................................................................................................................................................
 Other adjustments ...................................................................................................................................................................
 Balance at the beginning of the year .......................................................................................................................................
 Payment ...................................................................................................................................................................................
Net assets directly associated with disposal group
 Profit after tax from discontinued operations ........................................................................................................................
 Adjustment to the estimated final purchase price ..................................................................................................................
As at 31 March 2025 the Group has changed the way it presents cash and balances with central bank. The Group now presents loans to credit
institutions as a separate line item in the statement of financial position. That line item includes balances with other credit institutions, which w ere
previously included as part of cash and balances with central bank and other assets. The comparative figures for 31 December 2024 in the
statement of financial position, 3m 2024 in the Consolidated Statement of Cash Flows and in the notes have been restated.
The table below shows the effect of the reclassification on the Consolidated Statement of Financial
 Position at 31 December 2024: 
On 28 February 2025 Kvika and Landsbankinn hf. finalised the sale of 100% of TM tryggingar hf. share capital to Landsbankinn hf. as specified in
note 59.
 Other assets .......................................................................................................................................................
 Cash and balances with Central Bank at the beginning of the year .................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  12

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
0
Segment information
4. Business  segments
‐
‐
‐
‐
‐
Asset  Commercial  Investment  UK  Supporting 
3m 2025 Management   Banking  Banking  operations  Treasury  units  Total 
(419) 1,176,890   570,032  534,753  642,972  (7,723) 2,916,505  
613,870  360,855  542,850  133,231  47,399  (178,041) 1,520,163  
18,942  749  (25,253) 123,821   (166,010) ‐ (47,751)
2,562  51,476 ‐ 7,055 ‐ (1,388) 59,705  
Net operating income 634,955   1,589,969  1,087,629  798,860  524,362  (187,153) 4,448,622  
(276,954) (240,902) (217,314) (196,486) (64,137) (707,702) (1,703,496)
(32,313) (525,046) (54,541) (103,745) (19,128) (651,472) (1,386,244)
Administrative expenses (309,267) (765,948) (271,855) (300,231) (83,265) (1,359,174) (3,089,740)
‐ (42,401) (12,873) (10,173) (14) ‐ (65,461)
(12,334) ‐‐ (580,339) ‐‐
(592,673)
(172,015) (370,104) (220,244) (51,540) (87,782) 901,684  ‐
Profit (loss) before tax from continuing operations 141,340   411,516  582,657  (143,423) 353,300   (644,643) 700,748  
Net segment revenue from external 
641,232  38,162  1,873,058  1,163,214  675,809  57,147  4,448,622 
Net segment revenue from other 
(6,276) 1,551,808   (785,430) (364,354) (151,448) (244,300) ‐
    customers .............................................................
    segments ..............................................................
 Cost allocation ........................................................
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.
 Net interest income ................................................
 Net fee and commission income ............................
 Net financial (expense) income ..............................
 Other operating income .........................................
 Salaries and related expenses ................................
 Other operating expenses ......................................
 Net impairment .......................................................
 Revaluation of contingent consideration ...............
Commercial Banking offers various forms of banking services and related advisory services. Included in this operating segment is Lykill, the
leasing operations of the Group, and the Group's fintech operations, such as Auður, Netgíró and Aur, as well as the payment facilitation
operations of Straumur greiðslumiðlun hf.
Investment Banking
Investment Banking provide a range of professional services in the fields of specialised financing, securities and foreign exchange transactions
and corporate finance services.
UK operations
The UK operations consist of asset management and corporate finance services through Kvika Securities Ltd. and specialised lending services
through Ortus Secured Finance Ltd. UK operations is the only geographic area outside of Iceland where the Group operates and for the period in
2025 
it accounted for 18.0% (Q1 2024: 15.3%) of net operating income. 
Segment reporting is based on the same principles and structure as internal reporting to the CEO and the Board of Directors. Segment performance
is evaluated on profit before tax and excludes income from discontinued operations. 
Reportable segments
Asset Management
Products and services offered include asset management involving both domestic and foreign assets, private banking and private pension plans.
The management of a broad range of mutual funds, investment funds and institutional investor funds is included in this segment through the
operations of Kvika eignastýring hf.
Commercial Banking
During the period in 2025, the Group defined the following reportable operating segments; Asset Management, Commercial Banking, Investment
Banking, UK operations and Treasury. Treasury, which was previously r eported as part of Investment Banking, is now presented separately.
Operating segments pay and receive interest to and from Treasury on an arm's length basis to reflect the allocation of capital and funding cost.
During the period in 2025, the Group implemented the change that operating segments would receive interest from Treasury to reflect the
allocation of capital. Comparative figures have been restated, as applicable.
Treasury
Treasury is responsible for the Bank's funding, liquidity and asset ‐and‐liability management. Treasury oversees the internal fund‘s transfer
pricing and manages the relationship with investors, credit rating agencies and financial institutions. Market making activities in domestic
securities sit within Treasury.
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  13

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
0
4. Business  segments (cont.)
Asset  Commercial  Investment  UK  Supporting 
3m 2024 Management   Banking  Banking  operations  Treasury  units  Total 
(6,523) 1,228,754   484,949  423,911  205,126  (10,100) 2,326,118  
633,387  344,797  438,725  196,981  13,905  5,105  1,632,900 
27,615  2,352  (11,325) (1,179) 6,359  ‐ 23,822 
(285) 80,596  ‐ 3,760 ‐ 1,640  85,711 
Net operating income 654,577   1,656,308  912,347  623,474  225,391  (3,547) 4,068,550  
(247,327) (224,260) (188,277) (173,340) (60,497) (730,480) (1,624,180)
(37,021) (400,791) (45,817) (102,666) (27,299) (428,023) (1,041,616)
Administrative expenses (284,348) (625,051) (234,093) (276,006) (87,796) (1,158,503) (2,665,797)
‐ (80,245) (69,053) (37,920) (731) ‐ (187,950)
‐‐‐‐‐‐‐
(210,615) (441,481) (242,794) (52,089) (99,786) 1,046,765  ‐
Profit (loss) before tax from continuing operations 159,614   509,531  366,406  257,459  37,079  (115,285) 1,214,804  
Net segment revenue from external 
666,653  165,965  1,989,071  1,011,049  239,359  (3,547) 4,068,550  
Net segment revenue from other 
(12,076) 1,490,343   (1,076,725) (387,575) (13,967) ‐‐
 Net interest income ................................................
 Net fee and commission income ............................
 Net financial income ...............................................
    customers .............................................................
    segments ..............................................................
 Other operating income .........................................
 Salaries and related expenses ................................
 Other operating expenses ......................................
 Net impairment .......................................................
 Revaluation of contingent consideration ...............
 Cost allocation ........................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ 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 2025  3m 2024 
591,003  203,642 
110,524  35,669 
4,993,796  4,909,331 
563,135  1,005,486 
1,041,724  951,333 
182  330 
Total 7,300,364  7,105,791 
Interest expense is specified as follows:
3m 2025  3m 2024 
2,651,080  2,634,755 
607,430  539,834 
683,748  865,307 
137,884  183,137 
291,097  538,165 
12,621  18,474 
Total 4,383,859  4,779,672 
Net interest income 2,916,505  2,326,118 
6. Net  fee and commission income
3m 2025  3m 2024 
621,785  609,600 
333,912  448,207 
116,704  137,061 
459,331  539,453 
137,693  61,109 
Total fee and commission income 1,669,424  1,795,429 
(149,261) (162,530)
Net fee and commission income 1,520,163  1,632,900 
Asset management fees are earned by the Group for trust and fiduciary activities where the Group holds or invests assets on behalf of the
customers.
Fee and commission income from capital markets and corporate finance include fees and commissions generated by miscellaneous corporate
finance service, securities, derivatives and FX brokerage as well as market making.
Fee and commission income from cards and payment solutions relate to the Group's payment facilitations services as well as the issuance of debit
and credit cards.
Fee and commission income from loans and guarantees include the Group's lending operations, notification and collection fees, as well as fees
from issuing guarantees.
 Asset Management ..............................................................................................................................................................
 Capital markets and corporate finance ...............................................................................................................................
 Cards and payment solutions ..............................................................................................................................................
 Loans and guarantees ..........................................................................................................................................................
 Other interest expense* ......................................................................................................................................................
 Issued bonds ........................................................................................................................................................................
 Derivatives ............................................................................................................................................................................
* Thereof are lease liabilities' interest expense amounting to ISK 10 million (3m 2024: ISK 13 million).
 Deposits  ...............................................................................................................................................................................
 Other fee and commission income ......................................................................................................................................
 Fee and commission expense ..............................................................................................................................................
 Cash and balances with Central Bank ..................................................................................................................................
 Derivatives ............................................................................................................................................................................
 Loans to customers ..............................................................................................................................................................
 Other interest income ..........................................................................................................................................................
 Fixed income securities (FVOCI) ...........................................................................................................................................
 Loans to credit institutions ..................................................................................................................................................
Fee and commission income is disclosed based on the nature and type of income generated across business segments. Information on net fee and
commission income by segment is disclosed in note 4.
 Borrowings ...........................................................................................................................................................................
 Subordinated liabilities ........................................................................................................................................................
Total interest income recognised in respect of financial assets not carried at fair value through profit or loss amounts to ISK 5,655 million (3m 2024:
ISK 5,106 million). Total interest expense recognised in respect of financial liabilities not carried at fair value through profit or loss amounts to ISK
4,093 million (3m 2024: ISK 4,242 million).
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  15

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
4
7. Net  financial (expense) income
Net financial (expense) income is specified as follows:
3m 2025  3m 2024 
Net (loss) gain on financial assets and financial liabilities mandatorily measured at fair value through profit or loss
80,913  84,126 
(31,162) (61)
67,936  (74,989)
(4,921) (22,728)
(21,435) 21,407  
(83,423) 0  
(55,660) 16,066  
Total (47,751) 23,822  
8. Foreign  currency exchange difference
Foreign currency exchange difference is specified as follows:
3m 2025  3m 2024 
1,117,769  (664,278)
(1,173,428) 680,344  
Total (55,660) 16,066  
9. Administrative  expenses
Administrative expenses are specified as follows:
3m 2025  3m 2024 
1,703,496  1,624,180 
906,231  771,638 
392,899  216,153 
87,114  53,826 
Total 3,089,740  2,665,797 
10. Salaries  and related expenses
Salaries and related expenses are specified as follows:
3m 2025  3m 2024 
1,230,238  1,200,913 
125,057  84,041 
0  7,103 
161,615  149,437 
65,105  63,781 
121,481  118,905 
Total 1,703,496  1,624,180 
252  249 
253  249 
11.
3m 2025  3m 2024 
(69,658) (186,448)
(3) 0  
4,200  (1,502)
Total (65,461) (187,950)
12. Revaluation  of contingent consideration
 Net change in impairment of loans .....................................................................................................................................
In March 2025, the Group completed the expedited acquisition of the remaining management shares in Ortus Secured Finance ltd. (OSF), originally
scheduled to be acquired over a five ‐year period (2024–2028) with pricing linked to OSF’s a nnual performance . An expense of ISK 580 million was
incurred during the period in 2025 related to the expedited acquisition of the OSF shares.
 Average number of full time employees during the period ................................................................................................
 Total number of full time employees at the end of the period ...........................................................................................
 Salaries and related expenses ..............................................................................................................................................
 Other operating expenses ....................................................................................................................................................
 Depreciation and amortisation ............................................................................................................................................
 Depreciation of right of use asset ........................................................................................................................................
According to Act No. 165/2011, passed in 2011, banks and other financial institutions providing VAT exempt services, must pay a tax based on
salary payments, called tax on financial activity. The current tax rate is 5,50% (2024: 5,50%).
During the period in 2025, ISK 225 m illion in irregular and one ‐off costs were incurred by the Group, among other due to the finalisation of the
sale of TM. The espenses are included in all the line items in the table above except salaries and related expenses. 
Net impairment
 Net change in impairment of other assets ..........................................................................................................................
 Net change in impairment of loan commitments, guarantees and unused credit facilities ...............................................
 Other salary related expenses .............................................................................................................................................
 Tax on financial activity ........................................................................................................................................................
 Salaries .................................................................................................................................................................................
 Performance based payments excluding share‐based payments .......................................................................................
 (Loss) gain on other financial instruments ..........................................................................................................................
 Share‐based payment expenses ..........................................................................................................................................
 Pension fund contributions ..................................................................................................................................................
 Loss on prepayments of borrowings ....................................................................................................................................
 Foreign currency exchange difference ................................................................................................................................
 Shares and other variable income securities ....................................................................................................................
 Derivatives .........................................................................................................................................................................
 Loans to customers ............................................................................................................................................................
 Gain (loss) on financial instruments at fair value through profit and loss ..........................................................................
 Fixed income securities .....................................................................................................................................................
 Financial assets at fair value through OCI .........................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  16

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
4
13. Income  tax
14. Special  tax on financial activity
15. Special  tax on financial institutions
16. Earnings  per share
3m 2025  3m 2024 3m  2025  3m 2024 3m  2025  3m 2024 
Net earnings attributable to equity holders of the Bank 185,732   983,154  1,900,729  96,183  2,086,461  1,079,337 
4,650,998  4,722,073  4,650,998  4,722,073  4,650,998  4,722,073 
0  279  0  279  0  279 
Total 4,650,998  4,722,353  4,650,998  4,722,353  4,650,998  4,722,353 
0.04 0.21 0.41 0.02 0.45 0.23
0.04 0.21 0.41 0.02 0.45 0.23
Continuing and 
discontinued operations
The Bank and some of its subsidiaries will not pay income tax on its profit for 2025 due to the fact that Group has a tax loss carry forward that
offsets the calculated income tax. At year ‐end 2024, the tax loss carry forward of the Group amounted to ISK 9.7 b illion. A substantial part of the
tax loss carry forward is utilisable until end of year 2028. Management is of the opinion that the Group's operations in the years to come will result
in taxable results which will be offset with the tax loss carry forward. The Group has therefore recognised the tax loss carry forward as a deferred
tax asset in the consolidated statement of financial position.
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. 
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% (2024: 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% (2024: 6,0%) and the tax is not a
deductible expense 
for income tax purposes. The tax is presented separately in the consolidated income statement. 
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 20.0% (2024: 21.0%). Companies within the Group, which operate outside of Iceland, recognise income tax in accordance with the
applicable tax laws in the country they reside.
Discontinued 
operations
 Weighted average number of outstanding shares .................................
 Adjustments for stock options ................................................................
 Basic earnings per share (ISK) .................................................................
 Diluted earnings per share (ISK) .............................................................
Continuing operations
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  17

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
16
Statement of Financial Position
17. Cash  and balances with Central Bank
Cash and balances with Central Bank are specified as follows:
31.3.2025  31.12.2024 
38,144,567  12,758,682 
19,365  15,737 
Included in cash and cash equivalents 38,163,932  12,774,419 
5,745,226  5,819,001 
Total 43,909,157  18,593,420 
18. Loans  to credit institutions
Loans to credit institutions are specified as follows:
31.3.2025  31.12.2024 
14,720,164  9,725,772 
8,052,844  0 
1,308,293  1,803,799 
Total 24,081,301  11,529,571 
19. Loans  to customers
Gross Gross Gross
carrying Book   carrying Book   carrying Book  
31.3.2025  amount value amount value amount value
40,451,707  39,580,912  121,516,685  120,120,359  161,968,392  159,701,271 
0  0  881,561  881,561  881,561  881,561 
Total 40,451,707  39,580,912  122,398,245  121,001,919  162,849,952  160,582,831 
Gross Gross Gross
carrying Book   carrying Book   carrying Book  
31.12.2024  amount value amount value amount value
40,608,567  39,736,334  111,047,378  109,592,569  151,655,945  149,328,903 
0  0  873,794  873,794  873,794  873,794 
Total 40,608,567  39,736,334  111,921,172  110,466,363  152,529,739  150,202,696 
20. Fixed  income securities
Fixed income securities are specified as follows:
Mandatorily measured at fair value through profit or loss 31.3.2025  31.12.2024 
1,085,653  2,713,853 
2,343,177  2,189,075 
824,248  722,405 
Measured at fair value through other comprehensive income
52,372,355  54,256,365 
4,059,755  3,453,441 
1,479,961  1,459,422 
Total 62,165,150  64,794,561 
TotalIndividuals
Total
Corporates
Loans to customers at amortised cost ..................
The breakdown of the loan portfolio by individuals and corporates is specified as follows:
Listed government bonds and bonds with government guarantees ........................................................................ 
Listed treasury bills .................................................................................................................................................... 
Listed bonds .............................................................................................................................................................. 
 Deposits with Central Bank ..........................................................................................................................................
 Cash on hand ................................................................................................................................................................
Loans to customers at FV through profit or loss ...
 Restricted balances with Central Bank ‐ fixed reserve requirement ...........................................................................
Listed government bonds and bonds with government guarantees ........................................................................ 
Listed bonds .............................................................................................................................................................. 
Unlisted bonds .......................................................................................................................................................... 
CorporatesIndividuals
The Group presents finance lease receivables as part of loans to customers at amortised cost. As at 31 March 2025, the book value of finance lease
receivables amounted to ISK 22,891 million (31.12.2024: ISK 22,866 million).
Loans to customers at FV through profit or loss ...
Loans to customers at amortised cost ..................
 Bank accounts ..............................................................................................................................................................
 Money market loans ....................................................................................................................................................
 Other loans ...................................................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  18

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
16
21. 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 31.3.2025  31.12.2024 
1,285,145  1,100,609 
2,704,521  3,069,376 
1,613,129  1,262,269 
Total 5,602,795  5,432,254 
22. Securities  used for hedging
Securities used for hedging are specified as follows:
31.3.2025  31.12.2024 
2,193,777  1,904,937 
377,797  584,432 
6,135,116  9,669,279 
13,259  0 
115,875  442,377 
Total 8,835,823  12,601,026 
23. Derivatives
31.3.2025  Assets  Liabilities  Assets  Liabilities 
135,225  89,630  44,213  0 
31,139,911  23,398,318  443,671  110,000 
29,310,333  28,998,759  617,538  306,022 
0  7,405,760  80,880  0 
12,804,615  11,648,418  1,386,298  230,674 
Total 73,390,083  71,540,885  2,572,600  646,696 
31.12.2024  Assets  Liabilities  Assets  Liabilities 
159,361  107,143  55,954  0 
34,754,643  35,671,836  455,496  1,321,348 
13,022,277  13,000,436  40,291  18,480 
0  7,386,404  0  282,967 
13,586,028  14,533,627  645,003  1,309,635 
Total 61,522,310  70,699,445  1,196,744  2,932,429 
31.3.2025  31.12.2024 
(21,310) (52,556)
107,518  39,057 
(21,504) (7,811)
Total 64,704  (21,310)
 Currency forwards used for hedge accounting ...................................................
 Cross ‐ currency interest rate swaps ...................................................................
 Currency forwards used for hedge accounting ...................................................
Unlisted unit shares ................................................................................................................................................... 
 Foreign currency revaluation of the net foreign operations .......................................................................................
 Tax effect ......................................................................................................................................................................
 Cross ‐ currency interest rate swaps ...................................................................
 Listed shares .................................................................................................................................................................
 Bond and equity total return swaps ...................................................................
Derivatives are specified as follows:
 Currency forwards ...............................................................................................
 Interest rate derivatives ......................................................................................
Listed shares .............................................................................................................................................................. 
 Unlisted unit shares .....................................................................................................................................................
Listed government bonds and bonds with government guarantees .......................................................................... 
 Listed unit shares .........................................................................................................................................................
 Listed bonds .................................................................................................................................................................
Unlisted shares .......................................................................................................................................................... 
Carrying amount 
 Bond and equity total return swaps ...................................................................
Notional 
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:
 Currency forwards ...............................................................................................
 Interest rate derivatives ......................................................................................
Notional  Carrying amount 
 Balance at the beginning of the year ...........................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  19

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
16
24. Group  entities
Share  Share 
Entity  Nature of operations  Domicile  31.3.2025  31.12.2024 
Holding company Iceland   100%  100% 
Asset management Iceland   100%  100% 
Debt Collection Iceland   100%  100% 
Iceland  100%  100% 
Insurance company Iceland  ‐   100% 
Insurance company Iceland  ‐   100% 
Iceland  85%  85% 
UK  100%  100% 
UK  100%  80% 
25. Investment  in associates
a. Investment  in associates is accounted for using the equity method and is specified as follows:
Share  Share 
Entity  Nature of operations  Domicile  31.3.2025  31.12.2024 
Iceland  24%  24% 
Croatia  40%  40% 
b. Changes  in investments in associates are specified as follows: 31.3.2025  31.12.2024 
112,855  96,194 
0  (19,806)
0  41,350 
(941) (4,884)
Total 111,914  112,855 
26. Intangible  assets
a. Intangible assets are specified as follows: Customer  Software 
31.3.2025  Goodwill  relationships  Brands  and other  Total 
17,783,902  1,567,131  218,952  2,123,415  21,693,400 
0  0  0  69,878  69,878 
0  (51,286) (11,384) (226,003) (288,673)
(25,953) (8,412) (210) 0   (34,575)
Balance as at 31 March 2025 17,757,949  1,507,434  207,358  1,967,289  21,440,029 
17,757,949  2,089,232  369,316  4,043,969  24,260,465 
0  (581,798) (161,958) (2,076,680) (2,820,435)
Balance as at 31 March 2025 17,757,949  1,507,434  207,358  1,967,289  21,440,029 
Customer  Software 
31.12.2024  Goodwill  relationships  Brands  and other  Total 
17,782,646  1,731,905  264,327  2,127,485  21,906,363 
0  0  0  476,137  476,137 
0  0  0  (3,973) (3,973)
0  (166,603) (45,805) (476,254) (688,662)
1,256  1,829  430  19  3,534 
Balance as at 31 December 2024 17,783,902  1,567,131  218,952  2,123,415  21,693,400 
17,783,902  2,097,644  369,526  4,021,898  24,272,969 
0  (530,512) (150,573) (1,898,484) (2,579,569)
Balance as at 31 December 2024 17,783,902  1,567,131  218,952  2,123,415  21,693,400 
 TM tryggingar hf. ..................................................
The main subsidiaries held directly or indirectly by the Group are listed in the table below. 
 Gross carrying amount ................................................................
 Accumulated amortisation and impairment losses ....................
 Additions during the year ............................................................
 Ortus Secured Finance ltd. ...................................
Fund management
 TM líftryggingar hf. ...............................................
Payment facilitator
The sale of TM tryggingar hf. and TM líftryggingar hf. was concluded during the first quarter of 2025. Furthermore, during the same period the
Group acquired the remaining shares in Ortus Secured Finance ltd. Additionally, during the same period, one of the Group's subsidiary was
renamed from Kvika Securities ltd., to Kvika Limited.
 Straumur greiðslumiðlun hf. ................................
 Kvika Limited ........................................................
Lending operations
 AC GP 3 ehf. ..........................................................
 Skilum ehf. ............................................................
The Group does not consider its associates material, neither individually nor as a group.
 Gláma fjárfestingar slhf. .......................................
 Kvika eignastýring hf. ...........................................
 GAMMA Capital Management hf. 
........................
 Moberg d. o. o. .....................................................
Business consultancy services
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 2025 .......................................................
 Exchange rate difference .............................................................................................................................................
 Additions during the year ............................................................
 Currency adjustments .................................................................
 Gross carrying amount ................................................................
 Amortisation ................................................................................
 Discontinued ................................................................................
 Balance as at 1 January 2024 .......................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  20

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
16
27. Operating  lease assets
Operating lease assets are specified as follows:
31.3.2025  31.12.2024 
215,168  530,144 
57,682  35,693 
(36,695) (260,928)
(14,147) (89,741)
Total 222,008  215,168 
378,281  465,429 
(156,273) (250,261)
Total 222,008  215,168 
28. Other  assets
Other assets are specified as follows:
31.3.2025  31.12.2024 
2,608,343  3,206,699 
6,646,413  2,860,925 
735,626  1,023,804 
713,401  612,265 
Total 10,703,784  7,703,693 
Right of use asset and lease receivables are
 specified as follows:
31.3.2025  31.12.2024 
1,023,804  1,320,983 
0  13,249 
0  (14,968)
4,893  56,010 
(1,146) 755  
(200,688) 0  
(91,237) (352,225)
Total 735,626  1,023,804 
29. Borrowings
Borrowings are specified as follows:
31.3.2025  31.12.2024 
13,604,494  13,809,473 
311,034  580,042 
Total 13,915,528  14,389,515 
 Impairment ..................................................................................................................................................................
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 .........................................................................................................................................................
 Accounts receivable .....................................................................................................................................................
 Right of use asset and lease receivables as at 1 January .............................................................................................
 Additions during the period .........................................................................................................................................
 Sundry assets ...............................................................................................................................................................
 Termination of lease agreements ................................................................................................................................
 Currency adjustments ..................................................................................................................................................
 Unsettled transactions .................................................................................................................................................
 Right of use asset and lease receivables .....................................................................................................................
 Indexation ....................................................................................................................................................................
 Depreciation and lease receivable instalment ............................................................................................................
Right of use asset and lease receivables mostly consist of real estates for the Group's own use. The Group has entered into sublease contracts for
parts of the real estates which it does not use for its operations. The lease receivables are immaterial at period end. Lease liability is specified in
note 34.
 Balance as at 1 January ................................................................................................................................................
 Gross carrying amount .................................................................................................................................................
 Additions ......................................................................................................................................................................
 Disposals ......................................................................................................................................................................
 Depreciation .................................................................................................................................................................
 Accumulated depreciation ...........................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  21

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
16
30. Issued  bonds
Issued bonds are specified as follows:
First Maturity
Currency, nominal value issued Maturity type Terms  of interest 31.3.2025   31.12.2024 
Unsecured bonds:
2022 2025 At  maturity Floating, 3 month REIBOR + 1.25% 1,672,987   1,673,799 
2023 2026 At  maturity Floating, 3 month STIBOR + 4.10% 7,508,522   9,832,220 
2023 2026 At  maturity Floating, 3 month NIBOR + 4.10% 9,485,151   9,890,897 
2023 2026 At  maturity Floating, 3 month STIBOR + 4.0% 6,616,807   6,325,047 
2021 2027 At  maturity CPI‐indexed, fixed 1.0% 7,002,219   6,914,842 
2025 2028 At  maturity Floating, 3 month NIBOR + 0.2% 5,047,403   0 
2025 2028 At  maturity Floating, 3 month STIBOR + 0.2% 7,931,400   0 
2022 2032 At  maturity CPI‐indexed, fixed 1.40% 2,502,924   2,486,481 
Total 47,767,413  37,123,285 
31. Subordinated  liabilities
a. Subordinated  liabilities:
First Maturity
Currency, nominal value issued Maturity type Terms  of interest 31.3.2025   31.12.2024 
2023 2034 At  maturity CPI ‐Indexed, fixed 6.25% 2,702,609   2,634,489 
2015 2045 At  maturity CPI ‐Indexed, fixed 5.25% 3,064,256   2,994,493 
Total 5,766,866  5,628,982 
b. Subordinated  liabilities are specified as follows:
31.3.2025  31.12.2024 
5,628,982  5,993,084 
0  (800,000)
0  500,000 
0  (112,500)
0  (345,623)
137,884  394,021 
Total 5,766,866  5,628,982 
32. Short  positions held for trading
Short positions held for trading are specified as follows:
31.3.2025  31.12.2024 
415,354  127,976 
105,932  25,025 
Total 521,286  153,001 
33. Short  positions used for hedging
Short positions used for hedging are specified as follows:
31.3.2025  31.12.2024 
4,789  0 
0  42,035 
Total 4,789  42,035 
 Paid interest .................................................................................................................................................................
 Paid interests due to indexation ..................................................................................................................................
 Accrued interests and indexation ................................................................................................................................
 Redemption of KVB 18 02 ............................................................................................................................................
 Additions ......................................................................................................................................................................
 KVIKA 25 1201 GB ISK 1,660 million .
 EMTN 28 0421, SEK 600 million .......
At the interest payment date in May 2025 for TM 15 01, the a nnual interest rate increases from 5.25% p.a. to 6.25% p.a. At the interest payment
date in May 2025 for TM 15 01, the Group has the right to repay the subordinated bond and on any subsequent interest payment dates until
maturity.
At the interest payment date in the year 2029 for KVIKA 34 1211 T2i, the Group has the right to repay the subordinated bond and on any
 EMTN 26 0511, SEK 566 million * ....
 EMTN 26 0511, NOK 750 million * ...
 EMTN 26 1123 GB, SEK 500 m. .........
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.
 KVIKA 34 1211 T2i, ISK 2,500 m. .......
* Bond issued in two tranches, first tranche SEK 275 million was issued in May 2023 at a spread of STIBOR + 410 bps, the second tranche amounting
to SEK 500 million was issued in May 2024 at a price corresponding to a spread of STIBOR + 240 bps. In January 2025, concurrent with an offering of
new bonds in SEK/NOK, Kvika offered to buy back bonds issued by the bank in SEK with a maturity date 11 May 2026  a n di nN O Kw i t ham a t u r i t y
date of 11 May 2026. The bank received valid tenders of SEK 209 million and NOK 50 million which were all accepted.
 EMTN 28 0421, NOK 400 million ......
 Listed government bonds and bonds with government guarantees ..........................................................................
 Listed bonds .................................................................................................................................................................
 TM 15 1, ISK 2,000 million ................
 KVIKA 32 0112, ISK 2,000 million .....
 KVB 21 02, ISK 5,400 million ............
 Listed bonds .................................................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  22

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
16
34. Other  liabilities
Other liabilities are specified as follows:
31.3.2025  31.12.2024 
23,135,160  0 
5,385,186  7,531,359 
4,969,648  1,565,311 
1,166,584  1,259,035 
1,060,703  1,158,332 
1,169,826  1,110,946 
380,399  376,753 
667,859  319,660 
13,481  17,681 
270,255  295,828 
Total 38,219,103  13,634,905 
Lease liability is specified as follows:
31.3.2025  31.12.2024 
1,158,332  1,510,333 
0  13,249 
0  (14,629)
(2,107) 1,861  
(100,415) (408,492)
4,893  56,010 
Total 1,060,703  1,158,332 
35. Share  capital
a. Share  capital
31.3.2025  31.12.2024 
4,722,073  4,722,073 
110,541  61,893 
240,000  310,000 
b. Changes  made to the nominal amount of share capital
c. Share  capital increase authorisations
 Nominal amount of treasury shares ............................................................................................................................
The nominal value of shares issued by the Bank is ISK 1 per share. All currently issued shares are fully paid. The holders of shares are entitled to
receive dividends as approved by the general meeting and are entitled to o ne vote per nominal value of ISK 1 at s hareholders' meetings. Reference
is made to the Bank's Articles of Association for more information about the share capital.
 Currency adjustments ..................................................................................................................................................
 Special taxes on financial institutions and financial activities ....................................................................................
 Termination of lease agreements ................................................................................................................................
A copy of the Bank's Articles of Association, including the temporary prov isions, is available on the Bank's website, www.kvika.is, reference is mad e
to them for more information.
 Additions during the period .........................................................................................................................................
 Instalment ....................................................................................................................................................................
 Contingent consideration ............................................................................................................................................
The lease liability mostly consists of real estate for the Group's own use. The end date of the lease agreement of the Group's head office is in
November 2031 but with an exit clause in September 2027. The lease is linked to the Icelandic consumer price index. Right of use asset and lease
receivables are specified in note 28.
 Unsettled transactions .................................................................................................................................................
 Withholding taxes ........................................................................................................................................................
According to the Bank's Articles of Association dated 26 March 2025, cf. temporary provision I, the Board of Directors is authorised 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.
 Unpaid dividend ...........................................................................................................................................................
During the period in 2025, the Bank acquired treasury shares amounting to ISK 49 million in nominal value as a result of a share buy‐back plan.
 Accounts payable and accrued expenses ....................................................................................................................
 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 ..............................
 Authorised but not issued shares ................................................................................................................................
 Lease liability as at 1 January .......................................................................................................................................
 Other liabilities .............................................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  23

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
16
36. Capital  adequacy ratio (CAR)
Own funds  31.3.2025  31.12.2024
67,598,888  89,517,287 
(2,086,461) 0  
(70,801) 0  
(4,089,394) (2,050,479)
(21,440,029) (28,827,742)
(266,994) (23,499,576)
(1,819,615) (2,273,265)
2,086,609  5,800,889 
Common equity Tier 1 capital (CET 1) 39,912,203  38,667,113 
5,659,216  5,600,973 
Total own funds 45,571,418  44,268,087 
Risk‐weighted exposure amount (RWEA) 
161,693,061  158,177,636 
8,035,663  7,586,080 
28,080,116  28,080,116 
Total risk‐weighted exposure amount 197,808,840  193,843,832 
Capital ratios
20.2%  19.9% 
20.2%  19.9% 
23.0%  22.8% 
47,207,066 
21.0% 
21.0% 
23.9% 
Capital buffer requirement, % of RWEA
1.5%  1.5% 
2.4%  2.4% 
2.5%  2.5% 
Combined buffer requirement 6.4%  6.4% 
Capital requirement, % of RWEA 31.3.2025 
CET1 Tier  1T o t a l
4.5%  6.0%  8.0% 
2.0%  2.7%  3.6% 
Minimum requirement under Pilar I and Pillar II‐R 6.5%  8.7%  11.6% 
6.4%  6.4%  6.4% 
Total capital reqiurement 12.9% 15.1% 18.0%
The Group has updated its disclosure of the capital adequacy ratio and the key components in order to provide more information. As a part of this
some comparative figures for 31 December 2024 have been restated, although the total figure for common equity Tier 1 capital (CET 1) remains the
same. Those line items are marked with an asterisk (*). 
 Pillar I capital requirement .............................................................................................................
 Pillar II‐R capital requirement ........................................................................................................
 Combined buffer requirement .......................................................................................................
 T1 ratio .........................................................................................................................................................................
 T1 ratio including unaudited (positive) retained earnings and expected dividends ...................................................
 System risk buffer (SRB) ...............................................................................................................................................
 
Countercyclical capital buffer (CCyB) ...........................................................................................................................
 Capital conservation buffer (CCB) ................................................................................................................................
 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 is calculated in accordance with capital requirements regulation no. 575/2013 as implemented through
the Act on Financial Undertakings No. 161/2002. 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. 
 
Proposed dividends and buybacks ..............................................................................................................................
 Shares in other financial institutions * ........................................................................................................................
 CET1 ratio .....................................................................................................................................................................
 Capital adequacy ratio (CAR) including unaudited (positive) retained earnings and expected dividends .................
 Credit risk .....................................................................................................................................................................
 Total own funds including unaudited (positive) retained earnings and expected dividends .....................................
 Operational risk ............................................................................................................................................................
 Total equity ..................................................................................................................................................................
 Market risk ...................................................................................................................................................................
 Tier 2 capital .................................................................................................................................................................
 Amounts below the threshold for deduction * ...........................................................................................................
 Capital adequacy ratio (CAR) .......................................................................................................................................
 CET1 ratio including unaudited (positive) retained earnings and expected dividends ..............................................
 Deferred tax asset * .....................................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  24

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
16
37. Leverage  ratio
31.3.2025  31.12.2024
290,627,473  253,116,968 
3,811,336  2,533,012 
527,294  800,313 
Total exposure measure 294,966,103  256,450,293 
39,912,203  38,667,113 
13.5% 15.1%
38. Minimum  requirements for own funds and eligible liabilities (MREL)
Own funds and eligible liabilities  31.3.2025 31.12.2024
39,912,203  38,667,113 
5,659,216  5,600,973 
46,094,426  35,449,487 
Total own funds and eligible liabilities 91,665,845  79,717,574 
MREL‐RWEA and CBR 
197,808,840  193,843,833 
46.3% 41.1%
22.0% 22.0%
6.4% 6.4%
MREL‐RWEA requirement including CBR* 28.4% 28.4%
MREL‐TEM
294,966,103  256,450,293 
31.1% 31.1%
6.0% 6.0%
*Requirements were first set in January 2025 
 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%. 
 MREL‐TEM requirement* ............................................................................................................................................
The Central Bank of Iceland's Resolution Authority presented the Group their first minimum requirement for own funds and eligible liabilities
(MREL) in January 2025. According to Act No. 70/2020 on Resolution of Credit Institutions and Investment Firms, the Bank shall at all times meet
the MREL funds as a percentage to the Group's total risk ‐weighted exposure amount (MREL ‐RWEA). The MREL
‐RWEA requirement must be met
parallel to the combined buffer requirement (CBR). The Group must also meet a requirement of MREL funds as a percentage of the Group's total
exposure measure (MREL ‐TEM). The decision of the Resolution Authority entails that the Bank must at all times maintain a minimum of 22% of
MREL‐RWEA and 6% of MREL‐TEM.
 Leverage ratio ..............................................................................................................................................................
 Tier 1 capital .................................................................................................................................................................
 Total exposure measure ..............................................................................................................................................
 Own funds and eligible liabilities as % of TEM ............................................................................................................
 Common equity Tier 1 capital (CET 1) ..........................................................................................................................
 Tier 2 capital .................................................................................................................................................................
 Minimum requirements for own funds (MREL)* 
........................................................................................................
 Combined buffer requirement (CBR) ...........................................................................................................................
 Own funds and eligible liabilities as % of RWEA ..........................................................................................................
 Eligible liabilities ..........................................................................................................................................................
 Risk‐weighted exposure amount (RWEA) ....................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  25

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

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
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 primarily in the form of cash or
listed, highly liquid securities. The risk management unit and ALCO set rules about the level of collateralisation and the risk management unit
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 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 monitors credit risk and is responsible for developing methodologies to systematically identify, assess, monitor, and
manage it. 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 applies appropriate haircuts on all collateral in order to ensure proper risk mitigation. For all collateral in listed securities, the Grou p
maintains the right to liquidate collateral in case its market value falls below a predefined limit.
The risk management unit ensures that loans have a credit rating and is responsible for 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 unit suggest a level of provisioning for the portfolio, based on the expected loss assessment. Risk management unit
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 11 in the financial statements for more information on the Group's impairment policy.
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. 
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  26

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
40
41. Maximum  exposure to credit risk
31.3.2025  Public  Financial  Corporate 
On‐balance sheet exposure entities   institutions  customers  Individuals  31.3.2025 
43,909,157  43,909,157 
24,081,301  24,081,301 
6,015  554  120,995,351  39,580,912  160,582,831 
58,447,008  2,031,837  1,686,304  62,165,150 
2,138,607  327,174  106,820  2,572,600 
788  689,243  9,849,745  164,007  10,703,784 
102,362,968  28,941,543  132,858,574  39,851,739  304,014,824 
Off‐balance sheet exposure
7,183  5,328  6,719,760  827,010  7,559,281 
529,662  529,662 
Maximum exposure to credit risk 102,370,151  28,946,871  140,107,996  40,678,748  312,103,767 
31.12.2024  Public  Financial  Corporate 
On‐balance sheet exposure entities   institutions  customers  Individuals  31.12.2024 
18,593,420  18,593,420 
11,529,571  11,529,571 
6,972  1,665  110,457,726  39,736,334  150,202,696 
62,660,260  1,888,815  245,486  64,794,561 
1,000,775  144,011  51,958  1,196,744 
549  1,114,688  5,423,117  141,535  6,679,889 
81,261,202  15,535,514  116,270,340  39,929,827  252,996,882 
Off‐balance sheet exposure
7,000  2,331  5,037,623  1,013,114  6,060,067 
801,065  801,065 
Maximum exposure to credit risk 81,268,202  15,537,845  122,109,027  40,942,941  259,858,014 
42. Credit  quality of financial assets
Model parameters for 
Icelandic portfolio
Scenarios Base  case Upside Downside Base  case Upside Downside
Unemployment rate 4.2% 3.7% 4.9% 4.2% 3.7% 4.9%
Inflation CPI index 3.7% 3.4% 5.5% 3.7% 3.4% 5.5%
Assigned weight 50.0% 15.0% 35.0% 50.0% 15.0% 35.0%
Model parameters for UK 
portfolio
Scenarios Base  case Upside Downside Severe Base  case Upside Downside Severe
Unemployment rate (2 years) 4.1% 3.9% 5.8% 7. 5% 4.1% 3.9% 5.8% 7.5%
Inflation CPI index (2 years) 5.0% 4.7% 8.3% 16. 4% 5.0% 4.7% 8.3% 16.4%
Assigned weight 50.0% 20.0% 25.0% 5. 0% 50.0% 20.0% 25.0% 5.0%
31.12.2024
 Loan commitments ........................................................................................
 Financial guarantee contracts .......................................................................
The book value of financial assets which fall under the impairment requirements of IFRS 9 are presented as 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 on
calculations from PD, LGD and EAD models. Furthermore, the assessment is based upon management's assumptions regarding the development
of macroeconomic factors over the coming twelve months. The assumption s for macroeconomic development are decided for three scenarios: a
base case, an upside scenario, a downside scenario and for the UK portfolio there is a fourth scenario, severe downturn. Each scenario includes a
probability weight, and the ECL is derived as a weighted average. The amount of ECL to be recognized is dependent on the Group's definition of
significant increase in credit risk, which controls the impairment stage each asset is 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.
31.3.2025
31.3.2025 31.12.2024
 Cash and balances with Central Bank ...........................................................
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 ...........................................................
 Loans to credit institutions ............................................................................
 Fixed income securities .................................................................................
 Loans to credit institutions ............................................................................
 Fixed income securities .................................................................................
 Loans to customers ........................................................................................
 Derivatives .....................................................................................................
 Other assets ...................................................................................................
 Loan commitments ........................................................................................
 Financial guarantee contracts .......................................................................
The Group utilises an economic forecast which is aligned with requirements for the calculation of expected credit loss. 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 portfolios in both segments, although in the UK it is to a larger extent based on an individual assessment by credit specialists and a separate
macroeconomic forecast is used to reflect the UK economy. The following tables shows the first 12 month macro economic values for the
variables used in the expected credit loss model. For the UK portfolio 24 month values are used. Reference is made to note 82 in the 2024
Consolidated Financial Statements for further information about the 
Group‘s impairment methodology.
 Loans to customers ........................................................................................
 Derivatives .....................................................................................................
 Other assets ...................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  27

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

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  
31.3.2025  value credit  loss amount %   collateral  Deposits liquid  funds other  funds real  estate real  estate Automobiles equipment Guarantees Other claim  value 
6,022  (7) 6,015   0.0% 9,596   0  0  0  0  0  9,596  0  0  0  9 
555  (1) 554   0.0% 0   0  0  0  0  0  0  0  0  0  554 
Corporate
 Real estate activities .................................. 49,170,162   (326,466) 48,843,697   30.4% 87,481,925   59,375  80,353  42,945  41,146,037  44,678,910  955,321  209,975  100,000  209,010  618,834 
 Construction .............................................. 18,001,872   (105,051) 17,896,822   11.1% 34,376,995   4,334  0  0  14,765,806  9,344,147  5,280,525  4,383,702  0  598,481  351,847 
 Service Activities ........................................ 16,601,713   (144,187) 16,457,526   10.2% 29,557,028   20,855  82,123  569,280  1,711,995  3,932,906  18,305,021  3,481,295  55,000  1,398,553  385,139 
 Activities of Holding Companies ................. 12,859,939   (674,808) 12,185,132   7.6% 31,459,319   5,561  35,116  14,394,241  6,164,914  7,301,060  1,496,909  177,470  1,455,340  428,708  3,169,657 
 Accommodat. and Food Service Activit. ..... 10,737,686   (62,498) 10,675,188   6.6% 19,892,407   52,295  0  0  1,497,803  17,722,370  540,626  44,461  0  34,853  660,548 
 Wholesale and Retail Trade ....................... 4,471,674   (42,412) 4,429,263   2.8% 8,129,269   24,075  0  1,610,000  246,700  287,589  3,425,104  1,903,163  100,000  532,638  392,827 
 Other ......................................................... 10,548,620   (40,897) 10,507,724   6.5% 23,831,556   527,167  4,631,150  343,076  3,206,307  7,861,385  2,221,514  2,082,072  21,500  2,937,386  441,015 
40,451,707  (870,796) 39,580,912   24.6% 56,968,806   36,288  623,191  635,266  11,185,429  1,829,013  40,370,551  977,683  0  1,311,386  8,132,234 
Total 162,849,952  (2,267,121) 160,582,831  100.0% 291,706,900   729,949  5,451,933  17,594,808  79,924,989  92,957,379  72,605,166  13,259,822  1,731,840  7,451,014  14,152,665 
Impairment Listed Unlisted
Claim due to expected Carrying Total   securities and securities and Residential Commercial Industrial Unsecured  
31.12.2024  value credit  loss amount %   collateral  Deposits liquid  funds other funds real  estate real  estate Automobiles equipment Guarantees Other claim  value 
6,982  (10) 6,972   0.0% 10,303   0  0  0  0  0  9,994  0  0  308  201 
1,669  (4) 1,665   0.0% 0   0  0  0  0  0  0  0  0  0  1,665 
Corporate
 Real estate activities .................................. 45,564,368   (339,001) 45,225,367   30.1% 84,189,303   31,404  49,689  30,889  41,523,277  41,133,852  973,934  239,779  0  206,478  490,706 
 Construction .............................................. 16,412,343   (92,416) 16,319,928   10.9% 32,487,287   387  36  0  12,425,532  9,668,472  5,260,413  4,425,735  0  706,712  255,535 
 Service Activities ........................................ 16,067,877   (162,054) 15,905,824   10.6% 29,301,983   25,792  122,473  577,035  1,020,336  2,522,528  19,253,086  3,815,059  0  1,965,674  317,031 
 Accommodat. and Food Service Activit. ..... 11,491,746   (85,812) 11,405,934   7.6% 22,151,366   104,664  0  0  1,367,345  20,068,668  528,029  46,852  0  35,810  8,285 
 Activities of Holding Companies ................. 7,142,676   (653,572) 6,489,105   4.3% 20,066,039   13,417  201,232  9,761,948  4,863,693  3,343,574  216,524  183,137  1,467,788  14,726  1,434,099 
 Wholesale and Retail Trade ....................... 4,930,289   (55,744) 4,874,545   3.2% 7,473,811   24,075  0  0  246,700  913,378  3,601,133  1,952,169  100,000  636,356  383,870 
 Other ......................................................... 10,303,221   (66,197) 10,237,024   6.8% 29,558,579   342,028  7,208,007  162,634  3,389,662  11,277,426  2,176,217  2,189,640  21,500  2,791,466  415,340 
40,608,567  (872,233) 39,736,334   26.5% 57,599,454   32,933  793,062  654,647  11,886,283  1,815,160  40,060,219  1,031,750  0  1,325,401  8,312,050 
Total 152,529,739  (2,327,042) 150,202,696  100.0% 282,838,124   574,701  8,374,499  11,187,152  76,722,826  90,743,056  72,079,550  13,884,121  1,589,288  7,682,932  11,618,783 
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
 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.
Allocated collateral
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ 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.)
b.
31.3.2025 
Loans to customers: Stage 1S t a g e  2S t a g e  3F V T P L T o t a l
99,470,393  2,093,869  17,616  101,581,879 
40,247,447  3,696,799  43,944,246 
6,098,616  2,689,377  8,787,993 
778,201  537,345  1,315,546 
7,013  623  5,771,054  114,000  5,892,689 
397,906  178,460  1,289  749,945  1,327,600 
Gross carrying amount 146,999,575  9,196,473  5,772,343  881,561  162,849,952 
(340,111) (185,835) (1,741,175) (2,267,121)
Book value 146,659,464  9,010,638  4,031,168  881,561  160,582,831 
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
4,670,623  27,619  4,698,243 
2,688,852  23  2,688,875 
669,163  9,495  678,658 
953  458  1,411 
0  21,718  21,718 
38  38 
Total off‐balance sheet amount 8,029,630  37,594  21,718  0  8,088,943 
(11,058) (336) (1,773) (13,166)
Net off‐balance sheet amount 8,018,572  37,259  19,945  0  8,075,776 
31.12.2024
Loans to customers: Stage 1S t a g e  2S t a g e  3F V T P L T o t a l
89,427,181  1,265,779  16,862  90,709,821 
40,153,181  3,159,469  43,312,650 
6,609,379  2,003,621  8,613,000 
226,827  380,710  607,537 
572  0  7,940,092  114,000  8,054,664 
286,623  202,511  742,932  1,232,066 
Gross carrying amount 136,703,762  7,012,091  7,940,092  873,794  152,529,739 
(366,642) (189,275) (1,771,126) (2,327,042)
Book value 136,337,121  6,822,816  6,168,967  873,794  150,202,696 
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
4,675,341  2,690  4,678,031 
1,567,638  464  1,568,102 
562,954  5,839  568,793 
1,821  542  2,363 
33,741  10,048  43,790 
53  53 
Total off‐balance sheet amount 6,807,754  9,589  33,741  10,048  6,861,132 
(10,716) (149) (6,837) (17,701)
Net off‐balance sheet amount 6,797,038  9,440  26,905  10,048  6,843,431 
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 credit risk 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 calibrated external credit
ratings to assess the default probability of its customers. Some of the larger borrowers are furthermore individually assessed by credit specialist s.
The Bank has implemented internal credit rating models for part of the loan portfolio
 and intends to continue this development in 2025.
 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 ............................................................................
 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 .............................................................................................
 Non‐rated .............................................................................................
 Expected credit loss .............................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ 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.)
c. Breakdown  of loans to customers into not past due and past due
31.3.2025  Claim Expected Carrying
value credit  loss amount
149,591,763  (560,487) 149,031,276  
6,889,940  (79,132) 6,810,808  
2,105,854  (65,318) 2,040,536  
678,687  (39,291) 639,396  
533,054  (89,978) 443,076  
1,703,299  (877,640) 825,659  
1,347,355  (555,275) 792,080  
Total 162,849,952  (2,267,121) 160,582,831  
31.12.2024 Claim Expected Carrying
value credit  loss amount
137,349,325  (624,970) 136,724,356  
7,723,558  (104,273) 7,619,285  
2,321,498  (72,912) 2,248,585  
697,974  (16,044) 681,930  
2,179,700  (820,218) 1,359,481  
809,344  (248,026) 561,318  
1,448,340  (440,599) 1,007,741  
Total 152,529,739  (2,327,042) 150,202,696  
d. Allowance  for expected credit loss on loans to customers and loan commitments, guarantees and unused credit facilities
31.3.2025 
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 2025 377,357  189,424  1,777,962  2,344,743 
116,039  (69,813) (46,226) 0  
(23,191) 46,002   (22,811) 0  
(6,007) (24,881) 30,888   0 
(133,940) 42,570   147,661  56,292 
106,542  30,016  11,868  148,425 
(85,631) (27,139) (97,206) (209,976)
(8) (59,189) (59,197)
Balance as at 31 March 2025 351,169  186,171  1,742,948  2,280,288 
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 2025 366,642  189,275  1,771,126  2,327,042 
110,735  (69,769) (40,965) 0  
(22,705) 44,870   (22,165) 0  
(6,002) (24,861) 30,863   0 
(127,709) 43,421   146,868  62,581 
104,056  30,016  11,843  145,915 
(84,905) (27,109) (97,206) (209,219)
(8) (59,189) (59,197)
Balance as at 31 March 2025 340,111  185,835  1,741,175  2,267,121 
 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 ..................................................................................................................................
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 year.
 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 ...................................................................................................................
 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 ..........................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ 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.)
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 2025 10,716  149  6,837  17,701 
5,304  (44) (5,260) 0  
(486) 1,132   (647) 0  
(5) (21) 26   0 
(6,231) (851) 793   (6,289)
2,486  25  2,511 
(726) (30) (757)
Balance as at 31 March 2025 11,058  336  1,773  13,166 
31.12.2024
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 2024 381,793  128,058  1,724,497  2,234,348 
103,709  (21,728) (81,980) 0  
(16,599) 30,091   (13,492) 0  
(32,445) (35,343) 67,787   0 
(174,510) 15,696   844,723  685,909 
270,830  120,489  223,571  614,890 
(155,102) (46,969) (581,259) (783,330)
(319) (871) (405,885) (407,074)
Balance as at 31 December 2024 377,357  189,424  1,777,962  2,344,743 
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 
103,031  (21,403) (81,628) 0  
(16,554) 30,023   (13,469) 0  
(32,223) (35,288) 67,512   0 
(173,549) 15,760   843,243  685,453 
267,848  120,449  219,213  607,510 
(149,489) (46,916) (581,102) (777,507)
(319) (871) (405,885) (407,074)
Balance as at 31 December 2024 366,642  189,275  1,771,126  2,327,042 
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 
677  (325) (352) 0  
(45) 68   (23) 0  
(221) (54) 276   0 
(961) (63) 1,480   456 
2,982  39  4,359  7,380 
(5,613) (53) (156) (5,823)
Balance as at 31 December 2024 10,716  149  6,837  17,701 
 Transfer to Stage 1 ‐ (Initial recognition) ..................................................................
 Transfer to Stage 2 ‐ (significantly increased credit risk) .........................................
 Transfer to Stage 3 ‐ (credit impaired) .....................................................................
 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 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 ......................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  31

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

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
31.3.2025  %  31.12.2024  % 
41,302,685  25.7%  41,225,065  27.4% 
61,379,963  38.2%  57,209,422  38.1% 
34,883,268  21.7%  33,497,440  22.3% 
4,467,587  2.8%  2,958,378  2.0% 
4,091,309  2.5%  3,461,194  2.3% 
2,326,403  1.4%  1,505,210  1.0% 
889,814  0.6%  1,378,437  0.9% 
No or negligible collateral:
11,241,803  7.0%  8,967,551  6.0% 
Total 160,582,831  100.0%  150,202,696  100.0% 
44. Collateral  against exposures to derivatives
Fixed  Variable  Other 
income  income  Real  fixed 
Deposits  securities  securities  estate  assets  Other  31.3.2025 
130,349  173,719  473,911  777,979 
863,089  137,585  1,792,010  2,792,684 
125,471  8,185  112,152  245,808 
Total 1,118,909  319,490  2,378,073  0  0  0  3,816,472 
Fixed  Variable  Other 
income  income  Real  fixed 
Deposits  securities  securities  estate  assets  Other  31.12.2024 
548,356  113,888  161,262  823,506 
709,058  27,860  1,401,213  2,138,131 
61,660  16,377  80,400  158,436 
Total 1,319,073  158,125  1,642,874  0  0  0  3,120,073 
45. Large  exposures
31.3.2025  31.12.2024 
Large exposures before risk adjusted mitigation Number   Amount  Number  Amount 
2  11,764,578  2  11,132,873 
1  8,773,551  0  0 
0  0  0  0 
Total 3  20,538,129  2  11,132,873 
2  14,442,123  1  6,521,624 
2  16,484,456  1  6,702,213 
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% .................................................................................................................
 50‐70% ............................................................................................................................
 70‐90% ............................................................................................................................
 90‐100% ..........................................................................................................................
 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. 
 10‐20% of capital base ...................................................................................................
 20‐25% of capital base ...................................................................................................
 Exceeding 25% of capital base .......................................................................................
Thereof loans to credit institutions which are part of
 Large exposures net of risk adjusted mitigation ............................................................
    Kvika's liquidity management .....................................................................................
 Financial institutions ..............................
 Corporate customers ..............................
 Financial institutions ..............................
 Corporate customers ..............................
 Individuals ..............................................
 Greater than 200% .........................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  32

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
45
46. Liquidity  risk
a. Definition
b. Management
31.3.2025  Unweighted Weighted Unweighted Weighted Unweighted Weighted
87,544,549  87,544,549  4,066,957  4,066,957  91,611,506  91,611,506 
671,354  570,650  671,354  570,650 
Total liquid assets 88,215,903  88,115,200  4,066,957  4,066,957  92,282,859  92,182,156 
124,760,857  21,194,216  7,275,077  3,329,201  132,035,934  24,523,417 
114,633  114,633  114,633  114,633 
32,969,161  28,242,174  2,246,023  287,907  35,215,184  28,530,081 
Total outflows (0‐30 days) 157,730,018  49,436,390  9,635,734  3,731,741  167,365,752  53,168,131 
553,231  553,231  14,702,785  14,702,785  15,256,016  15,256,016 
20,122,873  4,094,573  1,123,083  731,370  21,245,956  4,825,943 
(12,635,349)
Total inflows (0‐30 days) 20,676,104  4,647,804  15,825,868  2,798,806  36,501,972  20,081,959 
197% 436% 279%
31.12.2024 Unweighted Weighted Unweighted Weighted Unweighted Weighted
68,949,963  68,949,963  3,458,943  3,458,943  72,408,906  72,408,906 
823,384  699,877  823,384  699,877 
Total liquid assets 69,773,348  69,649,840  3,458,943  3,458,943  73,232,290  73,108,783 
122,659,515  23,181,070  8,568,256  4,253,944  131,227,770  27,435,014 
17,389  17,389  17,389  17,389 
13,201,433  8,729,875  2,471,047  411,573  15,672,480  9,141,447 
Total outflows (0‐30 days) 135,878,337  31,928,334  11,039,303  4,665,517  146,917,639  36,593,850 
691,525  691,525  9,867,085  9,867,085  10,558,610  10,558,610 
16,441,026  4,838,298  1,321,647  879,390  17,762,673  5,717,688 
(7,247,337)
Total inflows (0‐30 days) 17,132,551  5,529,823  11,188,731  3,499,138  28,321,283  16,276,298 
264% 297% 360%
31.3.2025  31.12.2024 
159% 144%
 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 ................................................................
 Short‐term deposits with other banks ...................................
 Restrictions on inflows ...........................................................
 Liquidity coverage ratio ..........................................................
 Deposits ..................................................................................
 Other borrowings ...................................................................
 Other outflows .......................................................................
 NSFR total ...........................................................................................................................................................................
 Other inflows ..........................................................................
 Restrictions on inflows ...........................................................
 Liquidity coverage ratio ..........................................................
 Deposits ..................................................................................
 Other borrowings ...................................................................
 Other outflows .......................................................................
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 ,t h e
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%.
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  33

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

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
45
46. Liquidity  risk (cont.)
c. LCR  deposit categories
31.3.2025 Run off date  0‐30 days  Over 30 days  Total 
5%‐100% 106,998,878   17,731,416  124,730,294 
5%‐100% 6,237,187   275,703  6,512,890 
20%‐40% 11,814,050   135,117  11,949,167 
40% 53,279   80,519  133,798 
100% 6,932,540   14,305,523  21,238,063 
3,385,441  71,104  3,456,545 
Total 135,421,376  32,599,382  168,020,757 
31.12.2024 Run  off date  0‐30 days  Over 30 days  Total 
5%‐100% 103,372,251   15,898,871  119,271,122 
5%‐100% 5,807,269   199,576  6,006,845 
20%‐40% 11,124,000   48,335  11,172,335 
40% 81,008   82,903  163,911 
100% 10,843,243   12,439,204  23,282,447 
3,440,134  41,085  3,481,219 
Total 134,667,905  28,709,974  163,377,879 
The Group's deposit base is divided into different categories depending on customer type according to the LCR methodology. Different run off
rates are applied on each category representing their level of stickiness, which measures the stability of the deposit. Deposits with maturity over 30 
days are defined as term deposits within the LCR calculations, other as demand deposits. Run off rates are applied on each category of demand
deposits and the expected cash outflow over the next 30 days under stressed conditions calculated. The higher the run off rate, the more high
quality liquid assets 
the Group must hold to ensure it can meet its obligations and maintain stability during a crisis.
The table below shows the Group's deposit base divided into different categories depending on customer type and run off rates according to the
LCR methodology.
 Individuals ...........................................................................................................................
 Small and medium sized corporates ...................................................................................
*Pledged deposits do not have any run off rate according to liquidity rules.
 Financial entities .................................................................................................................
 Other * .................................................................................................................................
 Large corporates .................................................................................................................
 Financial entities .................................................................................................................
 Other * .................................................................................................................................
 Individuals ...........................................................................................................................
 Small and medium sized corporates ...................................................................................
 Large corporates .................................................................................................................
 Public entities ......................................................................................................................
 Public entities ......................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ 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.)
d. Maturity  analysis of financial assets and financial liabilities
31.3.2025  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
43,947,907  43,947,907  43,909,157 
14,720,164  169,744  8,172,567  1,308,293  24,370,768  24,081,301 
13,968,354  16,855,884  50,723,160  102,910,228  5,091,600  189,549,227  160,582,831 
18,481,027  627,547  8,481,734  30,995,460  3,579,382  62,165,150  62,165,150 
1,997,498  3,605,297  5,602,795  5,602,795 
8,835,823  8,835,823  8,835,823 
7,447,979  475,700  1,304,623  4,230  9,232,532  10,703,784 
109,398,753  18,128,876  72,287,380  135,218,211  8,670,982  343,704,202  315,880,842 
Derivative assets
 Inflow ....................................................... 10, 012,953  6,598,634  9,173,270  20,394,794  1,046,399  47,226,050 
 Outflow .................................................... (8, 763,503) (5,986,091) (8 ,639,982) (19, 773,211) (940,621) (44,103,408)
1,249,450  612,543  533,288  621,583  105,778  3,122,642  2,572,600 
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
(135,395,695) (12,861,226) (18,966,883) (1,545,974) (581,088) (169,350,866) 168,020,757  
(278,638) (1,096,976) (16,508,771) (71,287) (17,955,672) 13,915,528  
(114,633) (538,171) (3,435,247) (45,618,287) (2,565,999) (52,272,338) 47,767,413  
(78,907) (260,807) (1,413,760) (9,400,408) (11,153,883) 5,766,866  
(521,286) (521,286) 521,286  
(4,789) (4,789) 4,789  
(27,942,763) (6,855,617) (1,096,536) (2,367,830) (38,262,747) 38,219,103  
(163,979,166) (20,612,560) (24,856,449) (67,454,623) (12,618,782) (289,521,581) 274,215,742  
Derivative liabilities
 Inflow ....................................................... 5, 157,974  168,890  8,586,120  10,117,494  24,030,478 
 Outflow .................................................... (5, 406,357) (187,733) (9 ,172,580) (10,420, 441) (25,187,111)
(248,383) (18,843) (586,460) (302,947) 0   (1,156,633) 646,696  
Unrecognised financial items
 Inflow ....................................................... 90,082   399,838  5,133,203  2,670,243  8,293,366 
 Outflow .................................................... (7, 559,281) (7,559,281)
 Inflow ....................................................... 254, 589  75,350  192,654  7,068  529,662 
 Outflow .................................................... ( 529,662) (529,662)
(7,998,861) 654,428   5,208,553  2,862,898  7,068  734,086 
Summary
109,398,753  18,128,876  72,287,380  135,218,211  8,670,982  343,704,202 
1,249,450  612,543  533,288  621,583  105,778  3,122,642 
(163,979,166) (20,612,560) (24,856,449) (67,454,623) (12,618,782) (289,521,581)
(248,383) (18,843) (586,460) (302,947) (1,156,633)
   unrecognised items (53,579,346) (1,889,985) 47,377,759   68,082,224  (3,842,022) 56,148,630  
(7,998,861) 654,428   5,208,553  2,862,898  7,068  734,086 
Net assets (liabilities) (61,578,207) (1,235,558) 52,586,312   70,945,122  (3,834,954) 56,882,715  
 Loans to credit institutions ............................
 Deposits  ........................................................
 Borrowings .....................................................
 Securities used for hedging ...........................
 Loans to customers ........................................
 Other assets ...................................................
 Cash and balances with Central Bank ...........
 Shares and other variable income securities 
 Fixed income securities .................................
 Other liabilities ..............................................
Loan commitments
Financial guarantee contracts
 Net unrecognised items ................................
Net assets (liabilities) excluding 
 Issued bonds ..................................................
 Subordinated liabilities ..................................
 Short positions used for hedging ..................
 Short positions held for trading ....................
 Derivative assets ............................................
 Derivative liabilities .......................................
 Non‐derivative assets ....................................
 Non‐derivative liabilities ...............................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ 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.)
31.12.2024 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
18,594,600  18,594,600  18,593,420 
9,725,772  1,803,799  11,529,571  11,529,571 
10,753,174  13,421,261  52,863,444  98,218,396  4,717,898  179,974,173  150,202,696 
17,597,452  10,341,336  7,441,664  25,482,060  3,932,049  64,794,561  64,794,561 
1,680,808  3,751,446  5,432,254  5,432,254 
12,601,026  12,601,026  12,601,026 
2,736,416  2,397,217  1,543,015  3,241  6,679,889  7,703,693 
73,689,249  26,159,814  65,599,568  125,507,496  8,649,948  299,606,074  270,857,221 
Derivative assets
 Inflow ....................................................... 13, 278,709  143,152  2,346,210  919,853  1,035,591  17,723,515 
 Outflow .................................................... (12, 289,408) (97,836) (2, 328,850) (796,329) ( 940,293) (16,452,715)
989,301  45,317  17,360  123,524  95,298  1,270,801  1,196,744 
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
(134,688,378) (15,129,906) (10,446,751) (3,739,302) (546,778) (164,551,115) 163,377,879  
(1,116) (300,900) (1,131,757) (17,271,191) (18,704,964) 14,389,515  
(17,389) (535,356) (3,318,805) (34,010,395) (2,556,883) (40,438,829) 37,123,285  
(336,219) (1,399,210) (9,303,663) (11,039,092) 5,628,982  
(153,001) (153,001) 153,001  
(42,035) (42,035) 42,035  
(1,418,300) (9,218,530) (1,121,501) (1,927,215) (13,685,545) 13,634,905  
(136,320,219) (25,184,692) (16,355,033) (58,347,313) (12,407,324) (248,614,581) 234,349,602  
Derivative liabilities
 Inflow ....................................................... 12, 103,681  142,466  6,321,400  24,413,219  42,980,766 
 Outflow .................................................... (12, 967,739) (144,687) (6 ,240,000) (26,505, 659) (45,858,085)
(864,059) (2,221) 81,400   (2,092,440) 0   (2,877,319) 2,932,429  
Unrecognised financial items by type
Loan commitments
 Inflow ....................................................... 147, 100  48,777  2,796,249  3,721,970  6,714,096 
 Outflow .................................................... (6, 060,067) (6,060,067)
 Inflow ....................................................... 1,000   756,021  36,976  7,068  801,065 
 Outflow .................................................... ( 801,065) (801,065)
(6,714,033) 49,777   3,552,270  3,758,946  7,068  654,029 
Summary
73,689,249  26,159,814  65,599,568  125,507,496  8,649,948  299,606,074 
989,301  45,317  17,360  123,524  95,298  1,270,801 
(136,320,219) (25,184,692) (16,355,033) (58,347,313) (12,407,324) (248,614,581)
(864,059) (2,221) 81,400   (2,092,440) (2,877,319)
   unrecognised items (62,505,729) 1,018,218   49,343,296  65,191,267  (3,662,078) 49,384,974  
(6,714,033) 49,777   3,552,270  3,758,946  7,068  654,029 
Net assets (liabilities) (69,219,761) 1,067,995   52,895,566  68,950,213  (3,655,010) 50,039,003  
 Loans to credit institutions ............................
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.
 Derivative liabilities .......................................
 Net unrecognised items ................................
Net assets (liabilities) excluding 
Maturity analysis of financial assets and financial liabilities is based on contractual cash flows or, in the case of held for trading securities, exp ected
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 
........................................
 Fixed income securities .................................
 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 ...................................................
 Cash and balances with Central Bank ...........
 Shares and other variable income securities 
 Securities used for hedging ...........................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ 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  31.3.2025 
93,209  16,847  413,603  1,758,782  859,643  3,142,084 
(23,402) (157,640) (340,244) (521,286)
Net imbalance 93,209  16,847  390,201  1,601,141  519,399  2,620,798 
Up to 1  1‐3  3‐12  1‐5  Over 5   
month  months  months  years  years  31.12.2024
21,513  54,416  548,207  3,180,837  1,538,440  5,343,413 
(676) (6,875) (803) (28,575) (116,073) (153,001)
Net imbalance 20,837  47,541  547,404  3,152,263  1,422,367  5,190,412 
b. Sensitivity  analysis
Shift in  31.3.2025  31.12.2024 
basis points  Downward  Upward  Downward  Upward 
50  27,373  (25,977) 53,265   (51,070)
100  26,808  (25,405) 67,180   (64,264)
Total 54,181  (51,381) 120,445   (115,334)
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 2025 ‐ Unaudited  37

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