Kvartalsrapport Q1 2025

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
46
50. Interest  rate risk associated with non‐trading portfolios
a. Breakdown
31.3.2025 
Financial assets Up  to 1  1‐3  3‐12  1‐5  Over 5 
month  months  months  years  years  Total 
43,909,157  43,909,157 
24,081,301  24,081,301 
146,978,024  2,924,536  5,101,352  5,229,738  349,182  160,582,831 
10,736,205  5,590,009  9,390,748  29,914,362  3,391,741  59,023,065 
Financial assets excluding derivatives 225,704,688   8,514,545  14,492,100  35,144,101  3,740,922  287,596,355 
18,455,146  30,577,827  17,270,629  913,743  896,402  68,113,747 
Total 244,159,834  39,092,372  31,762,729  36,057,843  4,637,324  355,710,102 
Financial liabilities Up  to 1  1‐3  3‐12  1‐5  Over 5 
month  months  months  years  years  Total 
136,155,121  13,749,847  16,584,518  1,294,656  236,616  168,020,757 
13,915,528  13,915,528 
12,068,147  26,899,378  34,075  6,621,340  2,144,473  47,767,413 
2,972,402  160,435  2,634,028  5,766,866 
Financial liabilities excluding derivatives 162,138,795   43,621,627  16,779,028  10,550,024  2,381,090  235,470,564 
18,288,381  24,311,789  17,278,279  59,878,448 
Total 180,427,176  67,933,416  34,057,306  10,550,024  2,381,090  295,349,012 
Total interest repricing gap 63,732,658  (28,841,044) (2,294,577) 25,507,819   2,256,234  60,361,090 
31.12.2024
Financial assets Up  to 1  1‐3  3‐12  1‐5  Over 5 
month  months  months  years  years  Total 
18,593,420  18,593,420 
11,529,571  11,529,571 
136,380,297  3,761,468  3,954,878  5,748,139  357,915  150,202,696 
11,157,729  10,433,596  9,183,578  25,307,850  3,368,394  59,451,148 
Financial assets excluding derivatives 177,661,016   14,195,065  13,138,456  31,055,989  3,726,308  239,776,835 
23,021,460  23,306,321  8,407,845  927,578  889,917  56,553,122 
Total 200,682,477  37,501,386  21,546,301  31,983,567  4,616,225  296,329,956 
Financial liabilities Up  to 1  1‐3  3‐12  1‐5  Over 5 
month  months  months  years  years  Total 
135,369,956  14,930,417  9,593,996  3,258,929  224,580  163,377,879 
14,389,515  14,389,515 
17,361  28,435,412  84,486  6,500,774  2,085,253  37,123,285 
2,963,334  2,665,648  5,628,982 
Financial liabilities excluding derivatives 149,776,832   43,365,829  12,641,816  12,425,350  2,309,833  220,519,661 
20,828,415  17,231,242  10,150,728  48,210,385 
Total 170,605,247  60,597,072  22,792,544  12,425,350  2,309,833  268,730,046 
Total interest repricing gap 30,077,230  (23,095,685) (1,246,243) 19,558,217   2,306,392  27,599,910 
b. Sensitivity  analysis
Shift in  31.3.2025  31.12.2024 
Currency basis  points  Downward  Upward  Downward  Upward 
50  (63,721) 63,700   (24,819) 25,519  
100  482,425  (470,213) 450,303   (438,734)
20  (4,958) 4,961   (3,692) 3,693  
Total 413,746  (401,552) 421,792   (409,522)
The Group performs monthly sensitivity analysis on financial assets and liabilities in non ‐trading portfolios subject to interest rate risk. The
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:
ISK, indexed ..............................................................................................
The breakdown of financial assets and liabilities in non ‐trading portfolios by the earlier of interest repricing time or maturity is specified as
follows:
 Cash and balances with Central Bank ..............................
 Deposits  ...........................................................................
 Effect of derivatives ..........................................................
 Subordinated 
liabilities ....................................................
 Effect of derivatives ..........................................................
 Effect of derivatives ..........................................................
 Deposits  ...........................................................................
 Borrowings .......................................................................
ISK, non‐indexed ......................................................................................
Other currencies .......................................................................................
 Cash and balances with Central Bank ..............................
 Fixed income securities ....................................................
 Loans to customers ..........................................................
 Loans to credit institutions ...............................................
 Effect of derivatives ..........................................................
 Borrowings .......................................................................
 Loans to credit institutions ...............................................
 Subordinated liabilities ....................................................
 Loans to customers ..........................................................
 Fixed income securities ....................................................
 Issued bonds .....................................................................
 Issued bonds .....................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  38

===== SIDA 42 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
46
51. Exposure  towards changes in the CPI
a. Definition
b. Management
c. Balance  of CPI linked assets and liabilities
31.3.2025  31.12.2024 
35,684,006  38,425,712 
(24,484,624) (23,652,914)
Total 11,199,381  14,772,798 
d. Sensitivity  to changes in CPI
31.3.2025  31.12.2024 
‐1% 1% ‐1% 1%
(24,867) 24,867   (55,330) 55,330  
(34,647) 34,647   (30,608) 30,608  
(276,894) 276,894   (277,692) 277,692  
(20,431) 20,431   (20,627) 20,627  
4,656  (4,656) 206   (206)
87,470  (87,470) 86,020   (86,020)
95,051  (95,051) 94,013   (94,013)
57,669  (57,669) 56,290   (56,290)
(111,994) 111,994   (147,728) 147,728  
The effect on equity would be the same.
52. Currency  risk
a. Definition
b. Management
c. Hedge  accounting
d. Exchange  rates
The following exchange rates have been used by the Group in the preparation of these financial statements:
Closing  Average  Closing  Average 
31.3.2025  3m 2025  31.12.2024  3m 2024
142.7  145.6  143.9  149.0 
132.0  138.5  138.2  137.3 
170.8  174.3  173.3  174.1 
Exposure towards changes in CPI is the risk that fluctuations in the Icelandic Consumer Price Index (CPI) will affect the balance and cash flow of
indexed financial instruments.
The Group is exposed to inflation indexation of assets and liabilities den ominated in ISK. All indexed assets and liabilities are valued according to
the CPI measure at any given time and changes in CPI are recognised in the income statement.
The Group controls its indexation risk through derivatives contracts and sales and purchases of indexed bonds, mostly government bonds, and
thus keeps its exposure to the CPI within the limits set by the ALCO committee.
 Short positions ...............................................................................................................
 Deposits ..........................................................................................................................
 Subordinated liabilities ..................................................................................................
Given the net balance of CPI linked assets and liabilities, a 1% change in the CPI would, with other things constant, result in the following changes
to the Group's pre‐tax profit.
 Government bonds ........................................................................................................
 Other fixed income securities ........................................................................................
 Loans to customers ........................................................................................................
 Derivatives ......................................................................................................................
Currency risk arises when financial instruments are not denominated in the functional currency of the respective Group entity and can affect both
the Group's income statement and statement of financial position. A part of the Group's financial assets and liabilities is denominated in foreign
currencies. 
Currency positions are monitored by risk management and reported to the ALCO committee. Any mismatch between assets and liabilities in each
currency is monitored closely and managed within limits.  
The Group is subject to limits set by the Central Bank of Iceland regarding the maximum open currency position. At 31 March 2025 and 31
December 2024 the Group's position in foreign currencies was within those limits.
 EUR/ISK ...........................................................................................................................
 USD/ISK ..........................................................................................................................
 GBP/ISK ...........................................................................................................................
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. 
 Issued bonds
 ..................................................................................................................
 Liabilities .......................................................................................................................................................................
 Assets ............................................................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  39

===== SIDA 43 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
52
52. Currency  risk (cont.)
e. Breakdown  of financial assets and financial liabilities denominated in foreign currencies
31.3.2025 
Financial assets Other 
EUR  USD  GBP  NOK  currencies  Total 
3,336  2,205  1,660  7,202 
4,264,699  2,488,068  4,421,329  284,150  3,201,819  14,660,064 
4,867,289  36,176,278  17,771  41,061,338 
1,425,081  2,791,136  4,216,218 
160,253  69,533  2,396,572  10,371  1,624  2,638,352 
52,352  1,813,456  1,209  2,335  115,587  1,984,939 
2,391,388  2,391,388 
3,263,793  2,003,953  640,702  42,192  210,716  6,161,357 
Financial assets excluding derivatives 14,036,804   9,168,350  46,029,137  339,049  3,547,517  73,120,857 
2,854,441  6,637,405  1,026,601  14,452,429  18,943,252  43,914,128 
Total 16,891,245  15,805,755  47,055,738  14,791,478  22,490,769  117,034,985 
Financial liabilities Other 
EUR  USD  GBP  NOK  currencies  Total 
4,994,131  2,574,131  904,627  56,000  186,875  8,715,764 
13,604,494  13,604,494 
14,532,554  22,056,729  36,589,282 
2,379,988  1,361,363  1,970,724  36,003  5,748,079 
Financial liabilities excluding derivatives 7,374,119   3,935,495  16,479,845  14,588,553  22,279,607  64,657,620 
8,184,642  11,541,885  30,275,509  33,657  46,170  50,081,863 
Total 15,558,762  15,477,380  46,755,354  14,622,210  22,325,777  114,739,483 
Other 
Net currency position  EUR  USD  GBP  NOK  currencies  Total 
16,891,245  15,805,755  47,055,738  14,791,478  22,490,769  117,034,985 
(15,558,762) (15,477,380) (46,755,354) (14,622,210) (22,325,777) (114,739,483)
286,420  286,420 
Total 1,618,903  328,375  300,384  169,267  164,992  2,581,922 
31.12.2024 
Financial assets Other 
EUR  USD  GBP  NOK currencies   Total 
2,278  1,494  1,730  5,501 
6,668,747  1,380,394  1,215,637  110,103  340,147  9,715,028 
4,057,957  37,222,091  19,852  41,299,900 
3,592,590  3,592,590 
112,855  936,331  2,752,783  13,954  1,551  3,817,474 
35,917  2,186,597  1,553  2,994  79,410  2,306,470 
2,450,910  2,450,910 
712,599  1,601,697  588,647  2,902,943 
Financial assets excluding derivatives 11,590,352   9,699,102  44,233,350  127,051  440,960  66,090,816 
4,967,412  908,301  1,635,532  9,959,027  16,156,032  33,626,303 
Total 16,557,764  10,607,403  45,868,882  10,086,079  16,596,992  99,717,119 
Financial liabilities Other 
EUR  USD  GBP  NOK currencies   Total 
5,162,192  3,580,603  598,790  64,822  200,210  9,606,616 
13,700,192  13,700,192 
9,890,897  16,157,267  26,048,164 
200,836  634,341  467,041  4,766  110,017  1,417,002 
Financial liabilities excluding derivatives 5,363,028   4,214,944  14,766,024  9,960,485  16,467,493  50,771,974 
10,333,424  6,484,604  30,321,700  58,302  17,032  47,215,062 
Total 15,696,452  10,699,548  45,087,724  10,018,787  16,484,525  97,987,037 
Other 
Net currency position  EUR  USD  GBP  NOK currencies   Total 
16,557,764  10,607,403  45,868,882  10,086,079  16,596,992  99,717,119 
(15,696,452) (10,699,548) (45,087,724) (10,018,787) (16,484,525) (97,987,037)
703,501  703,501 
Total 1,564,813  (92,145) 781,158   67,292  112,467  2,433,583 
 Loans to credit institutions ....................................................
 Loans to credit institutions ....................................................
 Issued bonds ..........................................................................
 Financial liabilities ..................................................................
 Other liabilities .......................................................................
 Derivatives .............................................................................
 Cash and balances with Central Bank ....................................
 Shares and other variable income securities ........................
 Securities used for hedging ...................................................
 Loans to customers ................................................................
 Cash and balances with Central Bank ....................................
 Other assets ...........................................................................
 Derivatives .............................................................................
 Deposits  ................................................................................
 Deposits  ................................................................................
 Fixed income securities .........................................................
 Other assets ...........................................................................
 Derivatives .............................................................................
 Intangible assets ....................................................................
 Intangible assets ....................................................................
 Borrowings .............................................................................
 Financial assets ......................................................................
 Financial guarantee contracts ...............................................
 Fixed income securities .........................................................
 Shares and other variable income securities ........................
 Loans to customers ................................................................
 Financial liabilities ..................................................................
 Financial guarantee contracts ...............................................
 Financial assets ......................................................................
 Derivatives .............................................................................
 Other liabilities .......................................................................
 Securities used for hedging ...................................................
 Borrowings .............................................................................
 Issued bonds ..........................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  40

===== SIDA 44 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
52
52. Currency  risk (cont.)
f. Sensitivity  to currency risk
31.3.2025  31.12.2024 
Assets and liabilities denominated in foreign currencies ‐ 10%  +10% ‐ 10%  +10% 
161,890  (161,890) 156,481   (156,481)
32,838  (32,838) (9,215) 9,215  
30,038  (30,038) 78,116   (78,116)
16,927  (16,927) 6,729   (6,729)
16,499  (16,499) 11,247   (11,247)
Total 258,192  (258,192) 243,358   (243,358)
53. Equity  risk
a. Definition
b. Sensitivity  analysis of equity risk
31.12.2024 
‐10%  +10% ‐ 10%  +10% 
(128,515) 128,515   (110,061) 110,061  
(270,452) 270,452   (306,938) 306,938  
(161,313) 161,313   (126,227) 126,227  
Total (560,279) 560,279   (543,225) 543,225  
54. Operational  risk
a. Definition
b. Management
The individual business units within the Group are primarily responsible for managing their respective operational risk. The risk management unit
is furthermore responsible for identifying, monitoring and reporting the Group's operational risk. Operational risk can be reduced through staff
training, process re‐design and enhancement of the control environment. The risk management unit monitors operational risk by tracking loss
events, quality deficiencies, potential risk indicators and other early ‐warning signals. The unit takes an active role in internal control and quality
management.
Operational risk is the risk of direct or indirect loss from inadequate or failed internal processes or systems, from human error or external events
that affect the Group's reputation and operational earnings.
 EUR ......................................................................................................................................
 USD ......................................................................................................................................
 Other currencies ..................................................................................................................
Equity risk is the risk that the fair value of equites decreases as the result of changes in the value of shares and other variable income securities in
the Group’s portfolio. 
 GBP ......................................................................................................................................
The analysis below calculates the effect of possible movements in equity prices that affect the Consolidated Financial Statements. A negative
amount in the table reflects a potential net reduction in the Consolidated Income Statement or equity, while a positive amount reflects a
potential net increase. Investments in associates are excluded.
31.3.2025 
 Listed shares ........................................................................................................................
 Unlisted shares ....................................................................................................................
 Unlisted unit 
shares in funds ...............................................................................................
 NOK ......................................................................................................................................
Given the net currency position, a 10% change in the value of the ISK would, with other things constant, result in the following changes to the
Group's Consolidated Income Statement or equity.
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  41

===== SIDA 45 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
54
Financial assets and financial liabilities
55. Accounting  classification of financial assets and financial liabilities
Manda‐ 
31.3.2025         Fair value  torily at  Total 
Financial assets Amortised   through  fair value  carrying 
cost  OCI  through P/L  amount 
43,909,157  43,909,157 
24,081,301  24,081,301 
57,912,071  4,253,078  62,165,150 
5,602,795  5,602,795 
8,835,823  8,835,823 
159,701,271  881,561  160,582,831 
2,491,720  2,491,720 
80,880  80,880 
10,703,784  10,703,784 
Total 238,395,513  57,992,952  22,064,977  318,453,442 
Manda‐ 
      Fair value  torily at  Total 
Financial liabilities Amortised   through  fair value  carrying 
cost  OCI  through P/L  amount 
168,020,757  168,020,757 
13,915,528  13,915,528 
47,767,413  47,767,413 
5,766,866  5,766,866 
521,286  521,286 
4,789  4,789 
646,696  646,696 
37,551,244  667,859  38,219,103 
Total 273,021,808  0  1,840,630  274,862,438 
Manda‐ 
31.12.2024           Fair value  torily at  Total 
Financial assets Amortised   through  fair value  carrying 
cost  OCI  through P/L  amount 
18,593,420  18,593,420 
11,529,571  11,529,571 
59,169,229  5,625,332  64,794,561 
5,432,254  5,432,254 
12,601,026  12,601,026 
149,328,903  873,794  150,202,696 
1,196,744  1,196,744 
7,703,693  7,703,693 
Total 187,155,586  59,169,229  25,729,150  272,053,965 
Manda‐ 
      Fair value  torily at  Total 
Financial liabilities Amortised   through  fair value  carrying 
cost  OCI  through P/L  amount 
163,377,879  163,377,879 
14,389,515  14,389,515 
37,123,285  37,123,285 
5,628,982  5,628,982 
153,001  153,001 
42,035  42,035 
2,649,463  2,649,463 
282,967  282,967 
13,315,245  319,660  13,634,905 
Total 233,834,906  282,967  3,164,159  237,282,032 
 Issued bonds .................................................................................................................
 Subordinated liabilities .................................................................................................
 Short positions used for hedging ..................................................................................
 Short positions used for hedging ..................................................................................
 Short positions held for trading ....................................................................................
 Loans to credit institutions ...........................................................................................
 Derivatives ....................................................................................................................
 Other liabilities ..............................................................................................................
 Cash and balances with Central Bank ...........................................................................
 Deposits  ........................................................................................................................
 Borrowings ....................................................................................................................
 Issued bonds .................................................................................................................
 Subordinated liabilities .................................................................................................
 Short positions held for trading ....................................................................................
 Cash and balances with Central Bank ...........................................................................
 Fixed income securities .................................................................................................
 Shares and other variable income securities ................................................................
 Securities used for hedging ...........................................................................................
 Loans to customers .......................................................................................................
 Derivatives ....................................................................................................................
 Other assets ..................................................................................................................
 Deposits  ........................................................................................................................
 Borrowings ....................................................................................................................
 Derivatives used for hedge accounting ........................................................................
The accounting classification of financial assets and financial liabilities is specified as follows:
 Fixed income securities .................................................................................................
 Shares and other variable income securities ................................................................
 Securities used for hedging ...........................................................................................
 Loans to customers .......................................................................................................
 Derivatives ....................................................................................................................
 Other assets ..................................................................................................................
 Loans to credit institutions ...........................................................................................
 Derivatives ....................................................................................................................
 Other liabilities ..............................................................................................................
 Derivatives used for hedge accounting ........................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  42

===== SIDA 46 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
54
56. Financial  assets and financial liabilities measured at fair value
a.
‐
‐
‐
b.
c.
d.
31.3.2025 
Financial assets          Carrying 
Level 1  Level 2  Level 3  amount 
Mandatorily measured at fair value through profit and loss 
3,436,904  104,760  711,414  4,253,078 
2,327,065  39,381  3,236,349  5,602,795 
8,835,823  8,835,823 
881,561  881,561 
2,491,720  2,491,720 
Measured at fair value through
 other comprehensive income 
57,912,071  57,912,071 
80,880  80,880 
Total 72,511,864  2,716,741  4,829,323  80,057,929 
Valuation techniques
For more complex instruments, the Group uses proprietary models, whic h usually are developed from recogn ised valuation models. Some or all
of the inputs into these models may not be market observable and are derived from market prices or rates or are estimated based on
assumptions. When entering into a transaction, the financial instrument is recognised initially at the transaction price, which is the best indicat or
of fair value, although the value obtained from the valuation model may differ from the transaction price. This initial difference, usually an
increase in fair value, indicated by valuation techniques is recognised in income depending upon the individual facts and circumstances of each
transaction and no later than when the market data becomes observable.
The value produced by a model or other valuation technique is adjusted to allow for a number of factors as appropriate, because valuation
techniques cannot appropriately reflect all factors market participants take into account when entering into a transaction. Valuation
adjustments are recorded to allow for model risks, bid ‐ask spreads, liquidity risks, as well as other factors. Management believes that these
valuation adjustments are necessary and appropriate to fairly state financial instruments carried at fair value in the statement of financial
position.
Valuation techniques include recent arm's length transactions between knowledgeable, willing parties, if available, reference to the current fai r
value of other instruments that are substantially the same, the discounted cash flow analysis and option pricing models. Valuation techniques
incorporate all factors that market participants would consider in setting a price and are consistent with accepted methodologies for pricing
financial instruments. Periodically, the Group calibrates the valuation technique and tests it for validity using prices from any observable curre nt
market transactions in the same instrument, without modification or repackaging, or based on any available observable market data.
 Derivatives ..................................................................................................................
 Loans to customers ....................................................................................................
 Securities used for hedging ........................................................................................
 Derivatives used for hedge accounting ......................................................................
The fair value of financial assets and liabilities that are traded in active markets are based on quoted market prices. For other financial
instruments the Group determines fair value using various valuation techniques. IFRS 13 specifies a fair value hierarchy based on whether the
inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources
whereas unobservable inputs reflect the Group's market assumptions. These two types of inputs result in the following fair value hierarchy:
The Group uses widely recognised valuation techniques, including net present value and discounted cash flow models, comparison with similar
instruments for which market observable prices exist, Black‐Scholes and other valuation models. 
 Fixed income
 securities ..............................................................................................
 Shares and other variable income securities .............................................................
Fair value hierarchy
Fair value hierarchy classification
The fair value of financial assets and financial liabilities measured at fair value in the statement of financial position is classified into the fair
value hierarchy as follows:
Valuation process
The Bank's Credit committee is responsible for fair value measurements of financial assets and financial liabilities classified as level 2 or level 3
instruments. The valuation is carried out by personnel from respective departments under supervision from Risk. The valuations are revised at
least quarterly, or when there are indications of significant changes in the underlying inputs.
Inputs are quoted market prices (unadjusted) in active markets for identical instruments.
Level 1
Level 2
 Fixed 
income securities ..............................................................................................
Inputs are not observable or unobservable inputs have a significant effect on the valuation. This category includes instruments that are
valued based on quoted prices for similar instruments for which significant unobservable adjustments are required to reflect the differences
between the instruments.
Inputs are not quoted market prices but are observable either directly, i.e. as prices, or indirectly, i.e. derived from prices. This category
includes financial instruments valued using quoted prices in active markets for similar instruments, quoted prices for similar or identical
instruments in markets that are considered less than active and other instruments which are valued using techniques which rely primarily
on inputs that are directly or indirectly observable from market data.
Level 3
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  43

===== SIDA 47 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
54
56. Financial  assets and financial liabilities measured at fair value (cont.)
31.3.2025 
Financial liabilities Carrying 
Level 1  Level 2  Level 3  amount 
Mandatorily measured at fair value through profit and loss 
521,286  521,286 
4,789  4,789 
646,696  0  646,696 
667,859  667,859 
Measured at fair value through other comprehensive income 
0 
Total 526,075  646,696  667,859  1,840,630 
31.12.2024
Financial assets Carrying 
Level 1  Level 2  Level 3  amount 
Mandatorily measured at fair value through profit and loss 
4,907,870  106,337  611,126  5,625,332 
1,922,016  54,674  3,455,564  5,432,254 
12,601,026  12,601,026 
873,794  873,794 
1,196,744  1,196,744 
Measured at fair value through other comprehensive income 
59,169,229  59,169,229 
Total 78,600,141  1,357,755  4,940,483  84,898,379 
Financial liabilities Carrying 
Level 1  Level 2  Level 3  amount 
Mandatorily measured at fair value through profit and loss 
153,001  153,001 
42,035  42,035 
1,710,389  939,074  2,649,463 
319,660  319,660 
Measured at fair value through other comprehensive income 
282,967  282,967 
Total 195,036  1,993,356  1,258,734  3,447,126 
e.
Shares and 
Fixed  other var. 
income  income  Loans to  Other  
31.3.2025  securities  securities  customers  Derivatives  liabilities  Total 
Balance as at 1 January 2025 611,126  3,455,564  873,794  (939,074) (319,660) 3,681,749  
5,693  74,839  7,767  (563,540) (12,334) (487,574)
94,595  259,522  354,117 
0  989,678  177,071  1,166,749 
(553,576) (553,576)
512,936  (512,936) 0 
Balance as at 31 March 2025 711,414  3,236,349  881,561    0  (667,859)  4,161,464 
Shares and 
Fixed  other var. 
income  income  Loans to  Other  
31.12.2024  securities  securities  customers  Derivatives  liabilities  Total 
Balance as at 1 January 2024 114,075  2,517,343  682,433  (859,631) (404,762) 2,049,457  
6,829  362,034  69,096  (168,150) (5,288) 264,521  
604,297  612,349  0  0  1,216,646 
0  (620,667) 88,707   90,391  (441,569)
(36,162) (36,162)
(114,075) 0   742,932  628,857 
Balance as at 31 December 2024 611,126  3,455,564  873,794  (939,074) (319,660) 3,681,749  
Reclassified as assets held for sale ..................................... 
Total gains and losses in profit or loss ............................... 
Additions ............................................................................ 
Repayments ........................................................................ 
Disposals ............................................................................. 
Reclassification ................................................................... 
Total gains and losses in profit or loss ............................... 
 Short positions held for trading .................................................................................
 Short positions used for hedging ...............................................................................
 Fixed income securities ..............................................................................................
 Shares and other variable income securities .............................................................
 Loans to customers ....................................................................................................
 Securities used for hedging ........................................................................................
 Derivatives used for hedge accounting ......................................................................
 Other liabilities ...........................................................................................................
 Short positions held for trading .................................................................................
Reconciliation of changes in Level 3 fair value measurements
 Short positions used for hedging ...............................................................................
 Derivatives ..................................................................................................................
 Derivatives ..................................................................................................................
 Derivatives ..................................................................................................................
 Other liabilities ...........................................................................................................
 Fixed income securities ..............................................................................................
 Derivatives used for hedge accounting ......................................................................
Additions ............................................................................ 
Repayments ........................................................................ 
Disposals ............................................................................. 
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  44

===== SIDA 48 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
54
56. Financial  assets and financial liabilities measured at fair value (cont.)
f.
Book value 
Range 31.3.2025 
0‐95% 711,414 
‐ 3,236,349 
‐ 881,561 
Total 4,829,323 
Book value 
Range 31.12.2024 
0‐95% 611,126 
‐ 3,455,564 
‐ 873,794 
Total 4,940,483 
g.
+10% ‐ 10% 
71,141  (71,141)
323,635  (323,635)
88,156  (88,156)
Total 482,932  (482,932)
Market price Recent  trades
Value of assets and collateral
Asset class Method
Expected recovery
Unlisted variable income securities
Asset class Method Significant  unobservable input
Unlisted bonds  Expected recovery Value  of assets
Unlisted variable income securities Market  price Recent  trades
The Group believes its estimates represent appropriate approximations of fair value and that the use of different valuation methodologies and
reasonable changes in assumptions or unobservable inputs would not significantly change the estimates.
A 10% change in the estimates would have the following effect on profit before taxes:
 Shares and other variable income securities ..................................................................................................................
 Loans to customers ..........................................................................................................................................................
Given the methods used, the possible range of the significant unobservable inputs is wide. When determining the values used the Group
considers the financial strength of the entity in question, recent trades if any and multipliers for comparable instruments.
The effect of unobservable inputs in Level 3 fair value measurements
Loan to customers Expert  model Value  of assets and collateral
 Fixed income securities ...................................................................................................................................................
Value of assets
Significant unobservable input
Unlisted bonds
Fair value measurements for Level 3 financial assets
Level 3 assets consist primarily of unlisted bonds, shares and share certificates and loans measured at fair value. Each asset is evaluated
separately but assets within an asset group share a valuation method. The following valuation methods are in use:
Expert modelLoans to customers
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  45

===== SIDA 49 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
56
Other information
57. Pledged  assets
Settlement and  Securities  Asset backed 
31.3.2025 committed  facilities  borrowing  securities  Total 
0  1,308,293  0  1,308,293 
17,955,086  0  0  17,955,086 
13,741,021  176,636  0  13,917,657 
Total 31,696,107  1,484,929  0  33,181,036 
Settlement and  Securities  Asset backed 
31.12.2024 committed  facilities  borrowing  securities  Total 
0  1,773,821  0  1,773,821 
21,053,056  0  0  21,053,056 
10,263,379  93,500  0  10,356,879 
0  29,978  0  29,978 
Total 31,316,435  1,897,299  0  33,213,734 
58. Related  parties
a. Definition  of related parties
b. Arm's  length
c. Balances  with related parties
31.3.2025 Assets  Liabilities 
2,756  157,106 
0  31,283 
Total 2,756  188,389 
31.12.2024 Assets  Liabilities 
2,231  124,252 
0  40,605 
Total 2,231  164,857 
d. Transactions  with related parties
Interest  Interest  Other  Other 
3m 2025 income  expense  income  expense 
0  1,296  550  200 
0  0  0  76,284 
Total 0  1,296  550  76,483 
Interest  Interest  Other  Other 
3m 2024 income  expense  income  expense 
0  939  8  534 
0  0  0  100,054 
Total 0  939  8  100,588 
 Associates ..........................................................................................................................................................................
Associates .........................................................................................................................
Management ....................................................................................................................
Transactions with related parties are carried out at arm's length and subject to an annual review by the Bank's internal auditor.
Loans to credit institutions ...............................................................................................
Fixed income securities ....................................................................................................
The Group has pledged assets, in the ordinary course of banking business, to the Central Bank of Iceland to secure general settlement in the
Icelandic clearing system. Cash pledged to secure the borrowing of securities from other counterparties than the Central Bank of Iceland is
classified as other assets. 
 Management ......................................................................................................................................................................
The Group has a related party relationship with the board members of the Bank, the CEO of the Bank and key employees (together referred to as
management), associates as disclosed in note 25, shareholders with significant influence over the Bank, close family members of individuals
identified as related parties and entities under the control or joint control of related parties.
Loans to customers ..........................................................................................................
Loans to customers ..........................................................................................................
Fixed income securities ....................................................................................................
Other assets
 ......................................................................................................................
 Management ......................................................................................................................................................................
 Associates ..........................................................................................................................................................................
Cash and balances with Central Bank ..............................................................................
Management ....................................................................................................................
Associates .........................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  46

===== SIDA 50 =====

Kvika banki hf.  Amounts are in ISK thousands
Notes to the Condensed Interim Consolidated Financial Statements
56
59. Other  matters
Sale of TM finalised
Tax treatment of warrants sold by the Bank
60. Events  after the reporting date
There are no material events after the reporting date.
As the Iceland revenue and customs has not yet concluded its review, the Bank has not charged any amount to its income statement nor made
any changes to the tax returns for the respective years.
The Bank is aware of that the Iceland revenue and customs ("Skatturinn") is currently reviewing the tax treatment of warrants that the Bank sold
during the years 2017 to 2019. The Iceland revenue and customs is looking into whether the warrants should be taxed as perquisites instead of as
a financial instruments. Should that be the case, then the Bank would be required to pay the respective social security tax and tax on financial
activity. The Bank would however be able to deduct the amount of salary related expenses, as well as the amount of the perquisites, from its tax
base for the respective years in question, and thereby increase its deferred tax losses. 
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.
 Condensed Interim Consolidated Financial Statements 31 March 2025 ‐ Unaudited  47