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

Condensed Interim 
Consolidated Financial Statements 
31 March 2026

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

Consolidated Financial Statements 
31 March 2026
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
12
14
17
25
41
45
Condensed Interim Consolidated Statement of Financial Position ..................................................................................
Condensed Interim Consolidated Statement of  Comprehensive Income  ......................................................................
Condensed Interim Consolidated Statement of Changes in Equity .................................................................................
Notes to the Condensed Interim Consolidated Financial Statements .............................................................................
Condensed Interim Consolidated Income Statement ......................................................................................................
Endorsement and Statement by the Board of Directors and the CEO .............................................................................
Kvika highlights .................................................................................................................................................................
 - 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 Financial Statements 31 March 2026 - Unaudited

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

Highlights
31.03.2026
Kvika in brief
Kvika is a financial services company working to make
banking more competitive and accessible in Iceland.
Instead of operating traditional branches, Kvika delivers its
services online, offering a wide range of solutions in asset
management, payments, and banking for individuals,
businesses, and investors.
shares are publicly traded
on the Nasdaq Iceland.
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.
operations are underpinned by a distinctive brand
strategy. Retail financial services are delivered through
specialized consumer brands such as Auður, Aur, Netgíró,
Straumur and Lykill, each focused on a specific customer
need, while corporate and institutional services are
provided under the Kvika and Kvika Asset Management
brands. In the UK, the bank operates under the Kvika and
Ortus Secured Finance brands.
Key figures
ISK m. 3M 2026 3M 2025
Net operating income 4,886 4,449
Profit before tax, continuing 
operations
1,809 701
RoTE, continuing operations 15.7% 7.8%
31.03.2026 31.12.2025
Total assets 359,817 343,112
Loans to customers 216,933 207,560
Deposits 189,678 172,787
LCR 291% 404%
NSFR 133% 137%
Q1 25 Q2 25 Q3 25 Q4 25 Q1 26
4.4
5.1 4.9 5.0 4.9
Net operating income
ISK bn.
Loans to customers
ISK bn.
Total capital ratio
(%)
LCR ratio
(%)
0
50
100
150
200
250
20
40
60
80
100
120
140
160
180
200
220
0
95.5%
Q1 25
95.5%
Q2 25
109.7%
Q3 25
120.1%
Q4 25
114.4%
Q1 26
161 172
196 208 217
Loans to deposits
0
5
10
15
20
25
30
35
40
45
50
0
5
10
15
20
25
30
21.0%
Q1 25
20.5%
Q2 25
20.4%
Q3 25
23.9%
Q4 25
23.8%
Q1 26
23.9% 23.3% 23.0%
26.8% 26.7%
CET1
0
5
0
5
0
5
0
5
0
0
100
200
300
400
500
600
700
800
900
1.000
159%
Q1 25
160%
Q2 25
148%
Q3 25
137%
Q4 25
133%
Q1 26
279%
910%
659%
404%
291%
NSFR
34.8%
24.3%
12.3%
17.9%
10.7%
Commercial Banking
Investment Banking
Asset Management
UK
Treasury and supporting units
Diversified operations
Revenues by segment
3M 2026

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

Kvika banki hf.
Endorsement and Statement
by the Board of Directors and the CEO
About the Bank
Operations during the period in 2026
Financial position
Merger with Arion banki hf. will not take place
Capital adequacy and dividends
In 2026, Kvika has continued to build on the previous year’s success in capital markets and successfully completed the issuance of Additional Tier 1
(AT1) notes in April. The issuance, which amounted to SEK 300 million, is a key component of the Bank’s capital optimisation, as outlined in connection
with the publication of the Bank’s year end results in February. This was Kvika’s first issuance of AT1 notes and supports the Bank’s continued growth
and profitability. The issuance was oversubscribed and placed with investors across Scandinavia.
The Bank's 2026 A nnual General Meeting ("AGM") approved a motion from the Board of Directors ("BOD") to renew the BOD's authorisation from the
Bank's 2025 AGM to purchase up to 10% of own shares subject to regulatory approvals. This authorisation applies until the next AGM in 2027. 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. Following the announcement of merger discussions with Arion banki hf. in July 2025, the BOD suspended
further share buybacks, until announcing in December 2025 that the Bank intended to complete share buybacks under the existing authorisation in the
amount of ISK 1,125,207,500, as well as requesting an additional authorisation from the Financial Supervisory Authority of the Central Bank of Icela nd
for further buybacks in the amount of up to ISK 631,548,500. The buyback programme was formally resumed in January 2026 and completed on 18
March 2026.
At the end of March 2026, the MREL requirements, including the combined buffer requirement, are set at 28.3% of RWEA and 6.0% of the total
exposure measure ("TEM"). The Group comfortably exceeded both at the end of Q1 with ratios of 56,7% and 32,1% respectively.
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 2026. The Condensed Interim Consolidated Financial Statements have not been audited or reviewed by
the Bank's independent auditors.
Kvika’s operations are underpinned by a distinctive brand strategy. Retail financial services are delivered through specialized consumer brands s uch as
Auður, Aur, Netgíró, Straumur and Lykill, each focused on a specific customer need, while corporate and institutional services in Iceland are provid ed
under the Kvika and Kvika Asset Management brands. In the UK, the Group operates under the Kvika and Ortus Secured Finance brands.
Kvika is a financial services company with operations in Iceland and the United Kingdom. Kvika does not operate traditional branches but delivers its
services primarily online, offering a wide range of solutions in asset management, payments, and banking for individuals, businesses and investors .
Kvika’s shares are publicly traded on the Nasdaq Iceland.
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.
Profit before taxes from continuing operations for the first quarter amounted to ISK 1,809 million (Q1 2025: ISK 701 million). Pre-tax annualised return
on average tangible equity (RoTE) from continuing operations was 15.7% for the quarter (Q1 2025: 7.8%) based on the average tangible equity position
of Kvika during the year. Tangible equity is the equity of shareholders of Kvika net of deferred tax assets and intangible assets. Profit after taxes fo rt h e
first quarter amounted to ISK 1,374 million (Q1 2025: ISK 2,086 million, including discontinued operations).
According to the Consolidated Statement of Financial Position, equity at the end of the period amounted to ISK 66,795 million (31.12. 2025: ISK 68,935
million), and total assets amounted to ISK 359,817 million (31.12.2025: ISK 343,112 million).
The Group's total assets grew by ISK 16.7 billion or 4.9% from year-end 2025. Loans to customers grew by ISK 9.3 b illion or 4.5% during the first quarter
of 2026.
The Group's net operating income during the period was ISK 4,886 million (3m 2025: ISK 4,449 m illion). Net interest income amounted to ISK 3,266
million (3m 2025: ISK 2,917 million). Net fee income amounted to ISK 1,486 million (3m 2025: ISK 1,520 million). Other net operating income amounted
to ISK 135 million (3m 2025: ISK 12 m illion). Administrative expenses during the period amounted to ISK 3,014 million (3m 2025: ISK 3,090 m illion).
During the period, the Group had a net impairment charge of ISK 94 million (3m 2025: ISK 65 million).
On 15 April the preliminary discussions between Kvika banki hf. and Arion banki hf. with the Competition Authority regarding the proposed merger
concluded. On that day representatives of Kvika banki and Arion banki met with representatives of the Competition Authority, during which the
authority presented its position following the completion of the preliminary discussions process. In light of the position expressed by the Competi tion
Authority at the meeting, the Boards of Directors of Kvika banki and Arion banki concluded that the proposed merger cannot proceed. The Boards of
Directors therefore decided to discontinue the merger plans that were announced in a Stock Exchange notice dated 6 July 2025.
Kvika continues to maintain a strong capital position, significantly above regulatory requirements. At the end of March 2026, the Group’s capital
adequacy ratio was 26.2% and CET1 ratio was 23.3%, or 26.7% and 23.8%, respectively, including unaudited earnings. This compares to regulatory
requirements of 17.9% and 12.9%, including capital buffers.
The 2026 AGM approved a motion from the BOD that a dividend of ISK 0.36 per share be paid in 2026 based on the results for the year 2025.
Furthermore, the 2026 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 301,000,000 shares by cance lling treasury shares held by the Bank. In March 2026, both the
dividend payment and the share capital reduction were carried out.
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  2

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

Kvika banki hf.
Endorsement and Statement
by the Board of Directors and the CEO
Proposal for a special dividend payment
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
On 8 May the BOD convened a shareholders’ meeting to be held on 4 June 2026. The purpose of the meeting is a proposal from the BOD for a special
dividend payment of ISK 2.35 per share, corresponding to just over ISK 10 billion. At Kvika’s Annual General Meeting on 18 March 2026, it was stated
that the Bank’s capital position would remain very strong following a proposed dividend payment and that the BOD would consider proposing
additional distributions to shareholders later in the year, should circumstances permit. As it is now clear that the proposed merger of Kvika and Ario n
banki hf. will not take place and the Bank’s capital position remains very strong, there is now considerable capacity for further distribution to
shareholders. In preparing the BOD’s proposal to the shareholders’ meeting, account has also been taken of the existing authorisation approved at
Kvika’s Annual General Meeting to repurchase own shares of up to 10% of the Bank’s share capital. Accordingly, in addition to the proposed special
dividend payment, the BOD aims, if conditions permit, to repurchase own shares for up to ISK 4 billion later in the year.
The Condensed Interim Consolidated Financial Statements of Kvika banki hf. for the period ended 31 March 2026 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 2026 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 2026 and the financial performance of the Group and changes of cash flows for the period 1 January to 31 March 2026.
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 2026 and confirmed them by the means of their signatures.
Reykjavík, 12 May 2026.
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. Acti ve 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 Condensed Interim Consolidated Financial Statements. Refer to notes
37-52 on the analysis of exposure to various types of risk.
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  3

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

Kvika banki hf.  Amounts are in ISK millions
Condensed Interim Consolidated Income Statement
 For the period 1 January 2026 to 31 March 2026
Notes 3m 2026 3m 2025
7,982 7,300 
(4,716) (4,384)
Net interest income 4 3,266 2,917 
1,644 1,669 
(159) (149)
Net fee and commission income 5 1,486 1,520 
6 84 (48)
51 60 
Other net operating income 135 12 
Net operating income 4,886 4,449 
8 (3,014) (3,090)
10 (94) (65)
- (593)
30 - 
Profit before taxes from continuing operations 1,809 701 
11 (348) (438)
13 (87) (77)
Profit for the period from continuing operations 1,374 186 
Discontinued operations
- 1,901 
Profit for the period 1,374 2,086 
Notes 3m 2026 3m 2025
1,371 2,086 
22 3 - 
Profit for the period 1,374 2,086 
Earnings per share 14
0.31 0.45
0.31 0.45
The notes on pages 11 to 46 are an integral part of these Condensed Interim Consolidated Financial Statements.
 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 income (expense) ...............................................................................................................................
 Diluted earnings per share (ISK per share) ..............................................................................................................
 Income tax ................................................................................................................................................................
 Attributable to the shareholders of Kvika banki hf. ................................................................................................
 Attributable to non-controlling interest ..................................................................................................................
 Special tax on financial institutions .........................................................................................................................
 Revaluation of investment properties .....................................................................................................................
 Basic earnings per share (ISK per share) ..................................................................................................................
 Profit after tax from discontinued operations .........................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  4

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

Kvika banki hf.  Amounts are in ISK millions
Comprehensive Income 
 For the period 1 January 2026 to 31 March 2026
Notes 3m 2026 3m 2025 
Profit for the period 1,374 2,086 
(155) 46 
(1) 25 
Changes to reserve for financial assets at fair value through OCI (156) 71 
(45) (30)
(201) 41 
Total comprehensive income for the period 1,173 2,127 
Notes 3m 2026 3m 2025 
1,171 2,127 
3 - 
Total comprehensive income for the period 1,173 2,127 
The notes on pages 11 to 46 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 2026 - Unaudited  5

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

Kvika banki hf.  Amounts are in ISK millions
Condensed Interim Consolidated Statement of Financial Position
 As at 31 March 2026
Assets Notes 31.3.2026 31.12.2025 
15 28,540 20,145 
16 5,336 8,154 
17 216,933 207,560 
18 39,947 44,522 
19 22,739 20,663 
20 5,329 6,695 
21 4,237 3,250 
23 114 117 
24 20,951 21,130 
25 553 361 
380 402 
11 617 939 
26 14,141 9,174 
Total assets 359,817 343,112 
Liabilities
44 189,678 172,787 
27 7,378 6,806 
28 72,714 73,249 
29 6,080 5,841 
30 616 433 
31 493 432 
21 548 773 
228 257 
32 15,285 13,599 
Total liabilities 293,022 274,177 
Equity
33 4,323 4,417 
41,456 43,119 
4,258 4,376 
16,681 16,948 
Total equity attributable to the shareholders of Kvika banki hf. 66,717 68,859 
22 78 76 
Total equity 66,795 68,935 
Total liabilities and equity 359,817 343,112 
The notes on pages 11 to 46 are an integral part of these Condensed Interim Consolidated Financial Statements.
 Other reserves ....................................................................................................................................
 Retained earnings ...............................................................................................................................
 Loans to credit institutions .................................................................................................................
 Issued bonds .......................................................................................................................................
 Operating lease assets ........................................................................................................................
 Cash and balances with Central Bank ................................................................................................
 Other assets ........................................................................................................................................
 Deferred tax assets .............................................................................................................................
 Subordinated liabilities ......................................................................................................................
 Derivatives ..........................................................................................................................................
 Fixed income securities ......................................................................................................................
 Shares and other variable income securities .....................................................................................
 Securities used for hedging ................................................................................................................
 Loans to customers ............................................................................................................................
 Investment in associates ....................................................................................................................
 Intangible assets .................................................................................................................................
 Property and equipment ....................................................................................................................
 Deposits  .............................................................................................................................................
 Borrowings .........................................................................................................................................
 Non-controlling interest .....................................................................................................................
 Short positions held for trading .........................................................................................................
 Short positions used for hedging .......................................................................................................
 Share capital .......................................................................................................................................
 Share premium ...................................................................................................................................
 Other liabilities ...................................................................................................................................
 Deferred tax liabilities ........................................................................................................................
 Derivatives ..........................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  6

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

Kvika banki hf.  Amounts are in ISK millions
Condensed Interim Consolidated Statement of Changes in Equity
 For the period 1 January 2026 to 31 March 2026
Deficit Trans- Restricted Total share- Non- 
Share Share Option reduction Fair value lation retained  Retained holders' controlling Total 
1 January 2026 to 31 March 2026 Notes capital premium reserve reserve reserve reserve earnings earnings equity interest equity 
4,417 43,119 7 1,204 (160) 40 3,285 16,948 68,859 76 68,935 
1,371 1,371 3 1,374 
(155) (155) (155)
(1) (1) (1)
(45) (45) - (45)
- - - - (156) (45) - 1,371 1,171 3 1,173 
178 (178) - - 
(96) 96 - - 
(94) (1,663) (1,757) (1,757)
(1,556) (1,556) (1,556)
Equity as at 31 March 2026 4,323 41,456 7 1,204 (315) (5) 3,367 16,681 66,717 78 66,795 
The notes on pages 11 to 46 are an integral part of these Condensed Interim Consolidated Financial Statements.
(10,962,275) 41,455,811 7,080 1,208,453 (4,638,114) (4,757) 3,360,033 15,477,149 78,147 
 Dividend paid to shareholders ..................................................................
Transactions with owners of the Bank
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 2026 .........................................................................
 Total comprehensive income for the period ...............................................
 Realized net loss transferred to the Income Statement ..............................
 Changes in fair value of financial assets through OCI .................................
 Restricted due to development costs ..........................................................
 Treasury shares acquired as part of a buy-back programme ...................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  7

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

Kvika banki hf.  Amounts are in ISK millions
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 46,750 109 1,204 (583) 79 8,547 28,672 89,439 79 89,517 
2,086 2,086 - 2,086 
46 46 46 
25 25 25 
Translation of foreign operations
(30) (30) - (30)
- - - - 71 (30) - 2,086 2,127 - 2,127 
(6,166) 6,166 - - 
21 (21) - - 
(49) (862) (911) (911)
(23,135) (23,135) (23,135)
(22) 22 - - 
Equity as at 31 March 2025 4,612 45,888 87 1,204 (512) 49 2,403 13,790 67,520 79 67,599 
The notes on pages 11 to 46 are an integral part of these Condensed Interim Consolidated Financial Statements.
 Equity as at 1 January 2025 .........................................................................
 Share options ............................................................................................
 Total comprehensive income for the period ...............................................
 Treasury shares acquired as part of a buy-back programme ...................
 Restricted due to subsidiaries and associates .............................................
Transactions with owners of the Bank
 Restricted due to development costs ..........................................................
Other reserves
 Dividend paid to shareholders ..................................................................
 Changes in fair value of financial assets through OCI .................................
 Realized net loss transferred to the Income Statement ..............................
 Profit for the period .....................................................................................
 Exchange difference on translation of foreign operations .......................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  8

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

Kvika banki hf.  Amounts are in ISK millions
Condensed Interim Consolidated Statement of Cash Flows
 For the period 1 January 2026 to 31 March 2026
Cash flows from operating activities Notes 3m 2026 3m 2025
1,374 2,086 
67 56 
284 480 
(3,266) (2,917)
94 65 
435 515 
- (1,901)
(1,012) (1,615)
Changes in:
52 (7,557)
(8,570) 2,489 
4,384 (10,478)
(647) 2,543 
1,366 (171)
(988) (1,376)
(213) (21)
(5,251) (3,200)
16,436 4,240 
245 331 
(360) (2,425)
1,779 1,330 
8,233 (14,295)
7,411 6,991 
(3,806) (3,704)
(67) (74)
Net cash from (to) operating activities 10,758 (12,696)
Cash flows from investing activities
24 (59) (70)
(8) (39)
- 32,285 
Net cash (to) from investing activities (67) 32,176 
Cash flows from financing activities
1,076 932 
(534) 10,644 
(1,757) (911)
(1,556) - 
(108) (100)
Net cash (to) from financing activities (2,879) 10,565 
7,811 30,045 
37,056 22,500 
(550) 339 
Cash and cash equivalents at the end of the period 15 44,317 52,884 
Cash and cash equivalents
15 28,540 43,909 
15 (6,404) (5,745)
16 5,336 14,720 
19 16,845 - 
Cash and cash equivalents at the end of the period 44,317 52,884 
The notes on pages 11 to 46 are an integral part of these Condensed Interim Consolidated Financial Statements.
 Interest received ..........................................................................................................................................
 Acquired own shares ....................................................................................................................................
 Additions of intangible assets ......................................................................................................................
 Net acquisition and sale of property and equipment ..................................................................................
 Interest paid .................................................................................................................................................
 Income tax paid ............................................................................................................................................
 Disposal of subsidiary and associates, net of cash ......................................................................................
 Net change in cash and cash equivalents ....................................................................................................
 Repayment of lease liabilities ......................................................................................................................
 Issued bonds ................................................................................................................................................
 Dividend paid to shareholders .....................................................................................................................
 Borrowings ...................................................................................................................................................
 Effects of exchange rate fluctuations on cash and cash equivalents ..........................................................
 Cash and cash equivalents at the beginning of the year .............................................................................
 Derivatives - assets ....................................................................................................................................
 Fixed income securities .............................................................................................................................
 Shares and other variable income securities ............................................................................................
 Securities used for hedging .......................................................................................................................
 Loans to customers ....................................................................................................................................
 Loans to credit institutions ........................................................................................................................
 Profit for the period .....................................................................................................................................
Adjustments for:
 Indexation and exchange rate difference .................................................................................................
 Depreciation and amortisation .................................................................................................................
 Adjustment relating to assets held for sale ...............................................................................................
 Unit shares in cash equivalent liquidity funds .............................................................................................
 Cash and balances with Central Bank ..........................................................................................................
 Loans to credit institutions - Bank accounts ................................................................................................
 Restricted balances with Central Ba nk - 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 ..........................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  9

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
0
General information Page Risk management Page
1 Reporting entity ............................................................................ 11 37  Hedging ........................................................................................... 25
2 Basis of preparation ..................................................................... 11 38  Credit risk - overview ...................................................................... 25
39  Maximum exposure to credit risk .................................................. 26
Segment information 40  Credit quality of financial assets .................................................... 26
3 Business segments ....................................................................... 12 41  Loan-to-value ................................................................................. 31
42  Collateral against exposures to derivatives ................................... 31
Income statement 43  Large exposures .............................................................................. 31
4 Net interest income ...................................................................... 14 44  Liquidity risk ................................................................................... 32
5 Net fee and commission income .................................................. 14 45  Market risk ...................................................................................... 36
6 Net financial income (expense) .................................................... 15 46  Interest rate risk ............................................................................. 36
7 Foreign currency exchange difference ......................................... 15 47  Interest rate risk associated with trading portfolios ...................... 36
8 Administrative expenses .............................................................. 15 48  Interest rate risk associated with non-trading portfolios .............. 37
9 Salaries and related expenses ...................................................... 15 49  Exposure towards changes in the CPI ............................................ 38
10  Net impairment ............................................................................ 15 50  Currency risk ................................................................................... 38
11  Income tax .................................................................................... 16 51  Equity risk ....................................................................................... 40
12  Special tax on financial activity .................................................... 16 52  Operational risk .............................................................................. 40
13  Special tax on financial institutions .............................................. 16
14  Earnings per share ........................................................................ 16 Financial assets and liabilities
53  Accounting classif. of financial assets and financial liabilities ....... 41
54  Financial assets and financial liabilities measured at fair value .... 42
Statement of Financial Position
15  Cash and balances with Central Bank .......................................... 17
16  Loans to credit institutions ........................................................... 17 Other information
17  Loans to customers ...................................................................... 17 55  Pledged assets ................................................................................ 45
18  Fixed income securities ................................................................ 17 56  Related parties ............................................................................... 45
19  Shares and other variable income securities ............................... 18 57  Others matters ............................................................................... 46
20  Securities used for hedging .......................................................... 18 58  Events after the reporting date ...................................................... 46
21  Derivatives .................................................................................... 18
22  Group entities ............................................................................... 19
23  Investment in associates .............................................................. 19
24  Intangible assets ........................................................................... 19
25  Operating lease assets .................................................................. 20
26  Other assets .................................................................................. 20
27  Borrowings ................................................................................... 20
28  Issued bonds ................................................................................. 21
29  Subordinated liabilities ................................................................ 21
30  Short positions held for trading ................................................... 21
31  Short positions used for hedging ................................................. 22
32  Other liabilities ............................................................................. 22
33  Share capital ................................................................................. 22
34  Capital adequacy ratio (CAR) ........................................................ 23
35  Leverage ratio ............................................................................... 23
36 Minimum requirements for own funds
 and eligible liabilities (MREL) ....................................................... 24
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  10

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

Kvika banki hf.  Amounts are in ISK millions
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
-
-
-
-
-
-
-s h a r e-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 2025.
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.
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 ongoing 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. 
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").
The Condensed Interim Consolidated Financial Statements were approved and authorised for issue by the Board of Directors and the CEO on 12
May 2026.
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 follo wing:
The Condensed Interim Consolidated Financial Statements for the period ended 31 March 2026 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. Kvika is a financial services company with operations in Iceland and the United Kingdom. Kvika does not operate traditional
branches but delivers its services primarily online, offering a wide range of solutions in asset management, payments, and banking for individuals,
businesses and investors.
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 million, 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 2026.
The Condensed Interim Consolidated Financial Statements do not include all of the information required for full Consolidated Financial Statements
and should be read in conjunction with the Group's Consolidated Financial Statements for the financial year ending 31 December 2025.
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 2026 - Unaudited  11

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
0
Segment information
3. Business segments
-
-
-
-
-T r e a s u r y
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 provides 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 Limited and specialised lending services through
Ortus Secured Finance Ltd, as well as the Bank's lending to customers in the UK. UK operations is the only geographic area outside of Iceland
where the Group operates and for the period in 2026 it accounted for 17.9% (3m 2025: 18.0%) 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
The Group defines the following reportable operating segments; Asset Management, Commercial Banking, Investment Banking, UK operations and
Treasury. 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.
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.
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 2026 - Unaudited  12

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
0
3. Business segments (cont.)
Asset Commercial Investment UK Supporting 
3m 2026 Management Banking Banking operations Treasury units Total 
(2) 1,322 808 602 541 (6) 3,266 
581 348 342 165 47 3 1,486 
12 (3) 36 102 (62) (0) 84 
11 33 - 7 - 0 51 
Net operating income 602 1,699 1,186 876 526 (3) 4,886 
(272) (253) (209) (247) (67) (768) (1,817)
(17) (445) (48) (93) (32) (562) (1,197)
Administrative expenses (289) (698) (258) (340) (100) (1,330) (3,014)
- (43) (15) (36) (0) - (94)
- - - - - - - 
- 2 - - - 28 30 
(193) (430) (243) (76) (95) 1,037 - 
Profit (loss) before tax from continuing operations 120 529 671 424 332 (267) 1,809 
Net segment revenue from external 
623 693 2,531 1,362 (331) 9 4,886 
Net segment revenue from other 
(21) 1,006 (1,345) (486) 857 (11) - 
Asset Commercial Investment UK Supporting 
3m 2025 Management Banking Banking operations Treasury units Total 
(0) 1,177 570 535 643 (8) 2,917 
614 361 543 133 47 (178) 1,520 
19 1 (25) 124 (166) - (48)
3 51 - 7 - (1) 60 
Net operating income 635 1,590 1,088 799 524 (187) 4,449 
(277) (241) (217) (196) (64) (708) (1,703)
(32) (525) (55) (104) (19) (651) (1,386)
Administrative expenses (309) (766) (272) (300) (83) (1,359) (3,090)
- (42) (13) (10) (0) - (65)
(12) - - (580) - - (593)
(172) (370) (220) (52) (88) 902 - 
Profit (loss) before tax from continuing operations 141 412 583 (143) 353 (645) 701 
Net segment revenue from external 
641 38 1,873 1,163 676 57 4,449 
Net segment revenue from other 
(6) 1,552 (785) (364) (151) (244) - 
 Revaluation of investment properties ....................
 Other operating income .........................................
 Salaries and related expenses ................................
 Other operating expenses ......................................
 Net impairment .......................................................
    customers .............................................................
    segments ..............................................................
 Other operating income .........................................
 Salaries and related expenses ................................
 Other operating expenses ......................................
 Net impairment .......................................................
 Revaluation of contingent consideration ...............
 Cost allocation ........................................................
    customers .............................................................
    segments ..............................................................
 Cost allocation ........................................................
 Net interest income ................................................
 Net fee and commission income ............................
 Net financial income ...............................................
 Net interest income ................................................
 Net fee and commission income ............................
 Net financial income (expense) ..............................
 Revaluation of contingent consideration ...............
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  13

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
3
Income statement
4. Net interest income
Interest income is specified as follows:
3m 2026 3m 2025
406 591 
6 111 
6,461 4,994 
235 563 
747 1,042 
128 0 
Total 7,982 7,300 
Interest expense is specified as follows:
3m 2026 3m 2025
2,598 2,651 
592 607 
1,105 684 
239 138 
173 291 
11 13 
Total 4,716 4,384 
Net interest income 3,266 2,917 
5. Net fee and commission income
3m 2026 3m 2025*
591 613 
300 334 
160 170 
555 458 
38 95 
Total 1,644 1,669 
(159) (149)
Net fee and commission income 1,486 1,520 
 Derivatives ...........................................................................................................................................................................
 Fee and commission expense .............................................................................................................................................
Asset management fees are earned by the Group for trust and fiduciary activities where the Group holds or invests assets on behalf of the
customers.
Fee and commission income from capital markets and corporate finance include fees and commissions generated by miscellaneous corporate
finance services, securities, derivatives and FX brokerage as well as market making.
 Other interest expense* .....................................................................................................................................................
 Cash and balances with Central Bank .................................................................................................................................
 Derivatives ...........................................................................................................................................................................
 Loans to customers .............................................................................................................................................................
 Other interest income .........................................................................................................................................................
 Deposits  ..............................................................................................................................................................................
 Borrowings ..........................................................................................................................................................................
 Subordinated liabilities .......................................................................................................................................................
 Issued bonds ........................................................................................................................................................................
 Fixed income securities (FVOCI) ..........................................................................................................................................
 Loans to credit institutions ..................................................................................................................................................
 Loans and guarantees .........................................................................................................................................................
 Asset Management .............................................................................................................................................................
 Cards and payment solutions ..............................................................................................................................................
* Thereof are lease liabilities' interest expense amounting to ISK 7 million (3M 2025: ISK 10 million).
Total interest income recognised in respect of financial assets not carried at fair value through profit or loss amounts to ISK 6,875 million (3M
2025: ISK 5,655 million). Total interest expense recognised in respect of financial liabilities not carried at fair value through profit or loss amounts
to ISK 4,543 million (3M 2025: ISK 4,093 million).
 Capital markets and corporate finance ...............................................................................................................................
 Othe
r fee and commission income .....................................................................................................................................
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.
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 3.
* A portion of the fees that were recorded as other fee and commission income during the period in 2025 has been reclassified, as stated in the
2025 Consolidated Financial Statements. The reclassification primarily resulted in a decrease in other fee and commission income and an increase
in fee income related to loans and guarantees.
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  14

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
3
6. Net financial income (expense)
Net financial income (expense) is specified as follows:
3m 2026 3m 2025
Net gain (loss) on financial assets and financial liabilities mandatorily measured at fair value through profit or loss
75 81 
1 (31)
93 68 
(0) (5)
(17) (21)
- (83)
(67) (56)
Total 84 (48)
7. Foreign currency exchange difference
Shares and other variable income securities is specified as follows:
3m 2026 3m 2025 
96 1,118 
(163) (1,173)
Total (67) (56)
8. Administrative expenses
Administrative expenses are specified as follows:
3m 2026 3m 2025
1,817 1,703 
913 906 
246 393 
39 87 
Total 3,014 3,090 
9. Salaries and related expenses
Salaries and related expenses are specified as follows:
3m 2026 3m 2025
1,326 1,230 
123 125 
166 162 
69 65 
133 121 
Total 1,817 1,703 
248 252 
248 253 
10.
3m 2026 3m 2025
(101) (70)
(1) (0)
8 4 
Total (94) (65)
 Salaries ................................................................................................................................................................................
 Other salary related expenses ............................................................................................................................................
 Tax on financial activity .......................................................................................................................................................
 Gain on financial instruments at fair value through profit and loss ...................................................................................
 Loss on other financial instruments ....................................................................................................................................
 Depreciation of right of use asset .......................................................................................................................................
Loss on prepayments of borrowings ....................................................................................................................................
Derivatives .........................................................................................................................................................................
 Salaries and related expenses .............................................................................................................................................
Fixed income securities .....................................................................................................................................................
Shares and other variable income securities ....................................................................................................................
 Pension fund contributions .................................................................................................................................................
 Depreciation and amortisation ...........................................................................................................................................
 Total number of full time employees at the end of the period ..........................................................................................
 Performance based payments excluding share-based payments ......................................................................................
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% (2025: 5.50%).
Loans to customers ............................................................................................................................................................
 Net ch
ange in impairment of other assets ..........................................................................................................................
Foreign currency exchange difference ................................................................................................................................
 Other operating expenses ...................................................................................................................................................
Financial assets at fair value through OCI .........................................................................................................................
 Net change in impairment of loan commitments, guarantees and unused credit facilities ..............................................
Net impairment
 Net change in impairment of loans .....................................................................................................................................
 Average number of full time employees during the period ...............................................................................................
The amount of performance based payments that has been expensed is based on the results for the year to date 2026 and the guidelines on
performance based payments set forth in the Group’s remuneration policy. The performance based payments have not been allocated to any
employees or business segments and are subject to approval by the Board of Directors.
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  15

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
3
11. Income tax
12. Special tax on financial activity
13. Special tax on financial institutions
14. Earnings per share
3m 2026 3m 2025 3m 2026 3m 2025 3m 2026 3m 2025 
Net earnings attributable to equity holders of the Bank 1,371 186 - 1,901 1,371 2,086 
4,369 4,651 4,369 4,651 4,369 4,651 
1 - 1 - 1 - 
Total 4,370 4,651 4,370 4,651 4,370 4,651 
0.31 0.04 0.00 0.41 0.31 0.45
0.31 0.04 0.00 0.41 0.31 0.45
Continuing operations Continuing and 
discontinued operations
 Weighted average number of outstanding shares .............................
 Adjustments for stock options ............................................................
 Basic earnings per share (ISK) ..............................................................
 Diluted earnings per share (ISK) ..........................................................
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% (2025: 20.0%). Companies within the Group, which operate outside of Iceland, recognise income tax in accordance with the
applicable tax laws in the country they reside.
The Bank and some of its subsidiaries will not pay income tax on its profit for 2026 due to the fact that Group has a tax loss carry forward that
offsets the calculated income tax. At year-end 2025, the tax loss carry forward of the Group amounted to ISK 6.6 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 Condensed Interim Consolidated Statement of Financial Position.
Discontinued 
operations
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 dilut ive 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% (2025: 0.145%) and the tax is not a deductible expense for income tax purposes. The tax is presented separately in the Condensed Interim
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% (2025: 6.0%) and the tax is not a
deductible expense for income tax purposes. The tax is presented separately in the Condensed Interim Consolidated Income Statem ent.  Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  16

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
14
Statement of Financial Position
15. Cash and balances with Central Bank
Cash and balances with Central Bank are specified as follows:
31.3.2026 31.12.2025 
22,129 13,929 
8 12 
Included in cash and cash equivalents 22,136 13,941 
6,404 6,203 
Total 28,540 20,145 
16. Loans to credit institutions
Loans to credit institutions are specified as follows:
31.3.2026 31.12.2025 
5,336 8,102 
0 52 
Total 5,336 8,154 
17. Loans to customers
Gross Gross Gross
carrying Book carrying Book carrying Book 
31.3.2026 amount value amount value amount value
65,538 64,625 149,449 147,990 214,988 212,615 
- - 4,318 4,318 4,318 4,318 
Total 65,538 64,625 153,767 152,308 219,306 216,933 
Gross Gross Gross
carrying Book carrying Book carrying Book 
31.12.2025 amount value amount value amount value
64,981 64,090 141,030 139,593 206,012 203,683 
- - 3,877 3,877 3,877 3,877 
Total 64,981 64,090 144,907 143,470 209,889 207,560 
18. Fixed income securities
Fixed income securities are specified as follows:
Mandatorily measured at fair value through profit or loss 31.3.2026 31.12.2025 
1,952 1,793 
2,148 2,425 
1,706 1,436 
Measured at fair value through other comprehensive income
32,697 37,473 
1,443 1,394 
Total 39,947 44,522 
Listed government bonds and bonds with government guarantees ........................................................................ 
Listed bonds ............................................................................................................................................................... 
Loans to customers at amortised cost ..................
 Bank accounts ..............................................................................................................................................................
 Other loans ...................................................................................................................................................................
The breakdown of the loan portfolio by individuals and corporates is specified as follows:
The Group presents finance lease receivables as part of loans to customers at amortised cost. As at 31 March 2026, the book value of finance lease
receivables amounted to ISK 23,387 million (31.12.2025: ISK 23,175 million).
Loans to customers at FV through profit or loss ...
TotalIndividuals
Loans to customers at amortised cost ..................
 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 ........................................................................................................................................................... 
Corporates Total
Corporates
Individuals
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  17

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
14
19. 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 31.3.2026 31.12.2025 
1,031 996 
3,152 3,097 
16,845 15,013 
1,711 1,558 
Total 22,739 20,663 
20. Securities used for hedging
Securities used for hedging are specified as follows:
31.3.2026 31.12.2025 
447 938 
429 320 
4,422 5,353 
31 84 
Total 5,329 6,695 
21. Derivatives
31.3.2026 Assets Liabilities Assets Liabilities 
28,749 28,738 978 - 
55,336 44,314 1,504 - 
18,288 18,285 61 48 
- 9,380 353 - 
8,764 7,908 1,024 183 
1,994 1,994 317 317 
Total 113,131 110,618 4,237 548 
31.12.2025 Assets Liab ilities Assets Liabilities 
29,496 29,476 685 - 
65,265 55,477 1,037 6 
4,890 4,868 29 15 
- 8,745 156 - 
8,100 7,510 1,020 429 
2,034 2,034 323 323 
Total 109,785 108,109 3,250 773 
31.3.2026 31.12.2025 
124 (21)
197 182 
(39) (36)
Total 282 124 
 Foreign currency revaluation of the net foreign operations .......................................................................................
 Tax effect ......................................................................................................................................................................
 Bond and equity total return swaps .....................................................................
 Currency forwards used for hedge accounting ....................................................
 Cross - currency interest rate swaps ....................................................................
 Currency forwards used for hedge accounting ....................................................
 Cross - currency interest rate swaps ....................................................................
 Equity options .......................................................................................................
 Bond and equity total return swaps .....................................................................
Derivatives are specified as follows:
 Currency forwards ................................................................................................
 Interest rate derivatives .......................................................................................
Unlisted shares .......................................................................................................................................................... 
 Currency forwards ................................................................................................
 Interest rate derivatives .......................................................................................
Notional 
 Equity options .......................................................................................................
Carrying amount 
Listed shares .............................................................................................................................................................. 
Unit shares in cash equivalent liquidity funds .......................................................................................................... 
 Unlisted unit shares .....................................................................................................................................................
Carrying amount Notional 
Listed government bonds and bonds with government guarantees .......................................................................... 
 Listed bonds .................................................................................................................................................................
Unlisted unit shares ................................................................................................................................................... 
 Listed shares .................................................................................................................................................................
Th
e hedging gain recognised in OCI before tax is equal to the change in fair value used for measuring effectiveness. There is no ineffectiveness
recognised in profit or loss.
Set out below is the reconciliation of foreign currency translation reserve component of equity due to hedge accounting and the analysis of other
comprehensive income:
 Balance at the beginning of the year ...........................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  18

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
14
22. Group entities
Share Share 
Entity Nature of operations Domicile 31.3.2026 31.12.2025 
Holding company Iceland 100% 100% 
Asset management Iceland 100% 100% 
Debt Collection Iceland 100% 100% 
Iceland 100% 100% 
Iceland 85% 85% 
UK 100% 100% 
UK 100% 100% 
23. Investment in associates
a. Investment in associates is accounted for using the equity method and is specified as follows:
Share Share 
Entity Nature of operations Domicile 31.3.2026 31.12.2025 
Iceland 24% 24% 
Croatia 40% 40% 
b. Changes in investments in associates are specified as follows: 31.3.2026 31.12.2025 
117 113 
- (36)
- 37 
(3) 3 
Total 114 117 
24. Intangible assets
Intangible assets are specified as follows:
a. Customer Software 
31.3.2026 Goodw ill relationships Brands and other Total 
17,738 1,388 174 1,829 21,130 
- - - 59 59 
- - - (22) (22)
- (51) (6) (111) (167)
(38) (11) - - (48)
Balance as at 31 March 2026 17,701 1,327 168 1,756 20,951 
17,701 2,071 369 4,318 24,459 
- (745) (201) (2,562) (3,508)
Balance as at 31 March 2026 17,701 1,327 168 1,756 20,951 
Customer Software 
31.12.2025 Goodw ill relationships Brands and other Total 
17,784 1,567 219 2,123 21,693 
- - - 306 306 
- - - (27) (27)
- (163) (45) (573) (781)
(45) (15) (1) - (61)
Balance as at 31 December 2025 17,738 1,388 174 1,829 21,130 
17,738 2,082 369 4,281 24,471 
- (694) (195) (2,452) (3,341)
Balance as at 31 December 2025 17,738 1,388 174 1,829 21,130 
 Currency adjustments .................................................................
 Accumulated amortisation and impairment losses ....................
Digital solutions provider
 Amortisation ................................................................................
 Balance as at 1 January 2026 .......................................................
 Discontinued ................................................................................
 Amortisation ................................................................................
 Discontinued ................................................................................
 Balance as at 1 January 2025 .......................................................
 Currency adjustments .................................................................
 Gross carrying amount ................................................................
 Gross carrying amount ................................................................
 Accumulated amortisation and impairment losses ....................
 Additions during the year ............................................................
 Dividend received .........................................................................................................................................................
 Share in profit of associates, net of income tax ...........................................................................................................
 GAMMA Capital Management ehf. ......................
 Moberg d. o. o. .....................................................
 Exchange rate difference .............................................................................................................................................
 AC GP 3 ehf. ..........................................................
 Additions during the year ............................................................
Payment facilitator
Business consultancy services
Th
e main subsidiaries held directly or indirectly by the Group are listed in the table below. 
Holding company
 Balance at the beginning of the year ...........................................................................................................................
 Ortus Secured Finance ltd. ...................................
Fund management
 Straumur greiðslumiðlun hf. ................................
 Kvika Limited ........................................................
Lending operations
 Skilum ehf. ............................................................
The Group does not consider its associates material, neither individually nor as a group.
 Gláma fjárfestingar slhf. .......................................
 Kvika eignastýring hf. ...........................................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  19

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
14
25. Operating lease assets
Operating lease assets are specified as follows:
31.3.2026 31.12.2025 
361 215 
238 285 
(24) (86)
(22) (53)
Total 553 361 
699 494 
(147) (132)
Total 553 361 
26. Other assets
Other assets are specified as follows:
31.3.2026 31.12.2025 
9,474 4,096 
2,620 3,686 
507 569 
25 93 
1,514 731 
Total 14,141 9,174 
Right of use asset and lease receivables are specified as follows:
31.3.2026 31.12.2025 
569 1,024 
5 30 
(2) (3)
- (201)
(65) (282)
Total 507 569 
27. Borrowings
Borrowings are specified as follows:
31.3.2026 31.12.2025 
5,117 5,228 
2,260 1,579 
Total 7,378 6,806 
 Additions ......................................................................................................................................................................
 Disposals .......................................................................................................................................................................
 Depreciation .................................................................................................................................................................
 Accumulated depreciation ...........................................................................................................................................
 Gross carrying amount .................................................................................................................................................
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 .........................................................................................................................................................
 Unsettled transactions .................................................................................................................................................
 Accounts receivable .....................................................................................................................................................
 Balance as at 1 January ................................................................................................................................................
 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 year end. Lease liability is specified in not e
32.
 Impairment ...................................................................................................................................................................
 Currency adjustments ..................................................................................................................................................
 Right of use asset and lease receivables as at 1 January .............................................................................................
 Sundry assets ................................................................................................................................................................
 Inve
stment properties ..................................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  20

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
14
28. Issued bonds
Issued bonds are specified as follows:
First Maturity
Currency, nominal value issued Maturity type Terms of interest 31.3.2026 31.12.2025 
Unsecured bonds:
2023 2026 At maturity Floating, 3 month STIBOR + 4.10% 3,004 3,115 
2023 2026 At maturity Floating, 3 month NIBOR + 4.10% 4,313 4,193 
2023 2026 At maturity Floating, 3 month STIBOR + 4.0% 6,602 6,845 
2021 2027 At maturity CPI-indexed, fixed 1.0% 7,368 7,172 
2025 2028 At maturity Floating, 3 month NIBOR + 2.0% 5,184 5,039 
2025 2028 At maturity Floating, 3 month STIBOR + 2.0% 7,934 8,228 
2025 2028 At maturity Floating, 3 month REIBOR + 1.14
% 5,106 5,109 
2025 2029 At maturity Fixed 4.50% 29,793 30,209 
2022 2032 At maturity CPI-indexed, fixed 1.40% 2,634 2,579 
Total 71,937 72,490 
777 759 
Total 72,714 73,249 
29. Subordinated liabilities
a. Subordinated liabilities:
First Maturity
Currency, nominal value issued Maturity type Terms of interest 31.3.2026 31.12.2025 
2023 2034 At maturity CPI-Indexed, fixed 6.25% 2,844 2,733 
2015 2045 At maturity CPI-Indexed, fixed 6.25% 3,236 3,109 
Total 6,080 5,841 
b. Subordinated liabilities are specified as follows:
31.3.2026 31.12.2025 
5,841 5,629 
- (272)
- (76)
239 560 
Total 6,080 5,841 
30. Short positions held for trading
Short positions held for trading are specified as follows:
31.3.2026 31.12.2025 
616 108 
- 253 
- 72 
Total 616 433 
 EMTN 26 1123 GB, SEK 500 million ..
 EMTN 26 0511, SEK 566 million * ....
 EMTN 26 0511, NOK 750 million * ...
 EMTN 28 0421, SEK 600 million .......
 Unlisted senior unsecured bonds, total .......................................................................................................................
 EMTN 28 0421, NOK 400 million ......
 TM 15 1, ISK 2,000 million ................
 KVIKA 32 0112, ISK 2,000 million .....
 KVIKA 28 0703, ISK 5,000 million .....
 Listed bonds .................................................................................................................................................................
 Paid interests due to indexation ..................................................................................................................................
 Accrued interests and indexation ................................................................................................................................
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.
The Group has the right to repay the TM 15 01 subordinated bond on any interest payment dates until maturity. Additionally, at the interest
payment date in the year 2029 for KVIKA 34 1211 T2i, the Group has the right to repay the subordinated bond and on any subsequent interest
payment dates until maturity.
 Listed shares .................................................................................................................................................................
 Paid interest .................................................................................................................................................................
 KVB 21 02, ISK 5,400 million ............
 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  and in NOK with a maturity
date of 11 May 2026. The Bank received valid tenders of SEK 209 m illion and NOK 50 million which were all accepted. The Bank further tendered
the Bonds in October 2025, accepting offers for a total aggregate nominal amount of SEK 339 m illion and
 NOK 417 million. Following both tenders,
the remaining outstanding nominal amount of SEK Notes and NOK Notes are SEK 227 million and NOK 333 million respectively.
 EMTN 29 0602, EUR 200 million ......
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  21

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
14
31. Short positions used for hedging
Short positions used for hedging are specified as follows:
31.3.2026 31.12.2025 
493 432 
Total 493 432 
32. Other liabilities
Other liabilities are specified as follows:
31.3.2026 31.12.2025 
7,252 3,252 
3,914 5,268 
1,408 1,688 
1,011 1,055 
696 802 
293 641 
422 433 
8 16 
281 444 
Total 15,285 13,599 
Lease liability is specified as follows:
31.3.2026 31.12.2025 
802 1,158 
(4) (5)
(108) (382)
5 30 
Total 696 802 
33. Share capital
a. Share capital
31.3.2026 31.12.2025 
4,330 4,631 
7 214 
240 240 
b. Changes made to the nominal amount of share capital
c. Share capital increase authorisations
 Special taxes on financial institutions and financial activities .....................................................................................
A copy of the Bank's Articles of Association, including the temporary provisions, is available on the Bank's website, www.kvika.is, reference is mad e
to them for more information.
 Instalment ....................................................................................................................................................................
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 26.
 Listed government bonds and bonds with government guarantees ..........................................................................
 Contingent consideration .............................................................................................................................................
During the period in 2026 the Bank's share capital was decreased by ISK 301 m illion in nominal value following a resolution by the AGM to cancel
treasury shares. Furthermore, during the period in 2026 the Bank acquired treasury shares amounting to ISK 94 m illion in nominal value as a result
of a share buy-back plan.
 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 ..............................
 Unsettled transactions .................................................................................................................................................
 Withholding taxes ........................................................................................................................................................
 Lease liability as at 1 January .......................................................................................................................................
 Other liabilities .............................................................................................................................................................
According to the Bank's Articles of Association dated 18 March 2026, 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.
 Authorised but not issued shares ................................................................................................................................
 Nomi
nal amount of treasury shares ............................................................................................................................
The nominal value of shares issued by the Bank is ISK 1 per share. All currently issued shares are fully paid. The holders of shares are entitled to
receive dividends as approved by the general meeting and are entitled to one vote per nominal value of ISK 1 at s hareholders' meetings. Reference
is made to the Bank's Articles of Association for more information about the share capital.
 Currency adjustments ..................................................................................................................................................
 Accounts payable and accrued expenses ....................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  22

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
14
34. Capital adequacy ratio (CAR)
Own funds 31.3.2026 31.12.2025
66,795 68,935 
(1,374) - 
- (3,323)
(20,563) (20,925)
(217) (217)
(617) (939)
834 1,156 
Common equity Tier 1 capital (CET 1) 44,858 44,687 
5,953 5,416 
(364) - 
Total own funds 50,448 50,103 
Risk-weighted exposure amount (RWEA) 
163,726 157,968 
8,506 8,296 
20,503 20,503 
Total risk-weighted exposure amount 192,734 186,767 
Capital ratios
23.3% 23.9% 
23.3% 23.9% 
26.2% 26.8% 
51,480 
23.8% 
23.8% 
26.7% 
Capital buffer requirement, % of RWEA
1.6% 1.6% 
2.4% 2.4% 
2.5% 2.5% 
Combined buffer requirement 6.4% 6.4%
Capital requirement, % of RWEA 31.3.2026 
CET1 Tier 1 Total
4.5% 6.0% 8.0% 
2.0% 2.6% 3.5% 
Minimum requirement under Pillar I and Pillar II-R 6.5% 8.6% 11.5%
6.4% 6.4% 6.4% 
Total capital requirement 12.9% 15.0% 17.9%
 Capital conservation buffer (CCB) ................................................................................................................................
 Countercyclical capital buffer (CCyB) ...........................................................................................................................
 Pillar I capital requirement ................................................................................................................
 Operational risk ............................................................................................................................................................
 Total equity ..................................................................................................................................................................
 Market risk ...................................................................................................................................................................
 Tier 2 capital .................................................................................................................................................................
 Amounts below the threshold for deduction  .............................................................................................................
 Deferred tax asset  .......................................................................................................................................................
 Capital adequacy ratio (CAR) .......................................................................................................................................
 CET1 ratio including unaudited (positive) retained earnings and expected dividends ...............................................
 Pillar II-R capital requirement ............................................................................................................
 Combined buffer requirement ..........................................................................................................
 T1 ratio .........................................................................................................................................................................
 T1 ratio including unaudited (positive) retained earnings and expected dividends ...................................................
 Systemic risk buffer (SRB) .............................................................................................................................................
 Goodwill and intangibles .............................................................................................................................................
 Othe
r unaudited (positive) changes to total equity in 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 di vidends .....................................
 Deductions from Tier 2 capital .....................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  23

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
14
35. Leverage ratio
31.3.2026 31.12.2025
335,017 315,613 
4,153 3,331 
1,052 1,093 
Total exposure measure 340,221 320,037 
44,858 44,687 
13.2% 14.0%
36. Minimum requirements for own funds  and eligible liabilities (MREL)
Own funds and eligible liabilities 31.3.2026 31.12.2025
44,858 44,687 
5,953 5,416 
58,786 59,096 
Total own funds and eligible liabilities 109,598 109,199 
MREL-RWEA and CBR 
192,734 186,767 
56.7% 58.5%
21.9% 21.9%
6.4% 6.4%
MREL-RWEA requirement including CBR 28.3% 28.3%
MREL-TEM
340,221 320,037 
32.1% 34.1%
6.0% 6.0%
 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) ....................................................................................................................
 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. According to Act no.
161/2002 on Financial Undertakings the minimum leverage ratio requirement is 3%. 
 MREL-TEM requirement ...............................................................................................................................................
According to Act No. 70/2020 on Resolution of Credit Institutions and Investment Firms, the Bank shall at all times meet the minimum requirement
for own funds and eligible liabilities (MREL) 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 MREL requirements as of 31 March are 21.9% of MREL-RWEA and 6% of MREL-
TEM. 
 Leverage ratio ...............................................................................................................................................................
 Tier 1 capital .................................................................................................................................................................
 Total exposure measure ...............................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  24

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
36
Risk management
37. Hedging
38. Credit risk - overview
a. Definition
b. Management
c. Credit approval process
d. Collateral
e. Credit rating
f. Loan portfolio management
g. Impairment
h. Derivatives
i. Securities used for hedging
Securities held as a hedge against derivative positions of customers make up a part of the Group's portfolio of assets. The Group hedges currency
exposure between the Group's asset portfolio and its liabilities to the extent possible as part of managing its balance and keeping it within
approved limits. The Group applies hedge accounting according to IAS 39 against translation of foreign operations. Currency swap agreements
are used as a hedge instrument against translation difference arising from foreign operations. 
The Group offers derivative contracts in the form of swap contracts on highly liquid securities or currencies. On the day when the contract is
entered into, the Group purchases the underlying asset and hedges its exposure to price changes. Collateral is 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 effective diversification of the loan portfolio, the board has established a limit framework defining maximum exposure as a proportion
of the Group’s capital or the total size of the loan portfolio. This framework includes limits on exposures to connected clients, industries, regions
and countries etc. Risk management is responsible for monitoring compliance with these limits and reporting any breaches to the credit
committee.
One of the Group's primary sources of risk is credit risk. Credit risk is the risk of financial loss arising from a customer’s failure to meet its
contractual obligations. Credit risk primarily relates to default risk but also includes other risk components where applicable. Credit risk
comprises, among other things, default risk, which is the risk that a borrower fails to meet its loan obligations and is mitigated through collateral
where available; concentration risk, arising from insufficient diversification of the loan portfolio across borrowers, industries, or geographi cal
areas; settlement risk, which may arise in transactions involving securities, foreign exchange, or derivatives if a counterparty fails to fulfil it s
obligations on the settlement date; counterparty risk related to deriva tives, resulting from a counterparty’s failure to meet its contractual
obligations; and equity risk in the investment portfolio, which reflects the risk of a decline in the value of unlisted equity investments.
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 portfo lio management.
A substantial proportion of the Group's loan portfolio consists of senior loans, most of which are secured with collateral. The Group monitors the
value of collateral by listed securities on a real time basis and takes prompt action when necessary.
Securing loans with collateral is a traditional and effective method of mitigating credit risk. The Group employs various risk-mitigation techniqu es,
including obtaining collateral from customers where appropriate. Such collateral grants the Group the right to enforce against the collateralised
assets for both current and future obligations of the customer.
The Group applies appropriate haircuts to all collateral to ensure that the mitigating effect is prudent and robust. For collateral consisting of
listed securities, the Group retains the right to liquidate the assets if their market value falls below a predefined threshold .
Risk management ensures that loans have a credit rating and is responsible for reviewing the loan portfolio. 
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 ability to meet its obligations, the committee may request stress
testing of the borrower's cash flows or obtain assessments from third parties.
Provisioning for loan impairments is estimated based on expected credit loss models assessing the portfolio as well as individual lending. Risk
management suggests a level of provisioning for the portfolio, based on the expected credit loss assessment. Provisions require approval from
the credit committee. Refer to note 82 in the 2025 Consolidated Financial Statements for more information on the Group's impairment policy.
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  25

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
38
39. Maximum exposure to credit risk
Public Financial Corporate 
On-balance sheet exposure entities institutions customers Individuals 31.3.2026 
28,540 - - - 28,540 
- 5,336 - - 5,336 
6 3 152,300 64,625 216,933 
36,592 3,165 189 - 39,947 
- 3,594 553 90 4,237 
2 682 12,886 39 13,609 
65,140 12,781 165,928 64,754 308,602 
Off-balance sheet exposure
16 6 8,976 932 9,930 
- - 1,054 - 1,054 
Maximum exposure to credit risk 65,156 12,786 175,958 65,686 319,586 
Public Financial Corporate 
On-balance sheet exposure entities institutions customers Individuals 31.12.2025 
20,145 - - - 20,145 
- 8,154 - - 8,154 
6 2 143,462 64,090 207,560 
41,326 3,008 188 - 44,522 
- 2,493 650 107 3,250 
1 1,417 5,944 1,151 8,513 
61,477 15,074 150,244 65,348 292,143 
Off-balance sheet exposure
10 6 8,647 1,050 9,713 
- - 1,097 - 1,097 
Maximum exposure to credit risk 61,487 15,080 159,988 66,398 302,953 
40. Credit quality of financial assets
Model parameters for 
Icelandic portfolio
Scenarios Base case Upside Downside Base case Upside Downside
Unemployment rate 5.0% 4.0% 6.4% 5.0% 4.0% 6.4%
Inflation CPI index 3.4% 3.0% 5.8% 3.4% 3.0% 5.8%
Assigned weight 55.0% 10.0% 35.0% 55.0% 10.0% 35.0%
Model parameters for UK 
portfolio
Scenarios Base case Upside Downside Severe Base case Upside Downside Severe
Unemployment rate 4.9% 2.3% 3.6% 5.9% 4.9% 2.3% 3.6% 5.9%
Inflation CPI index 2.5% 4.4 % 5.9% 7.5% 2.5% 4.4% 5.9% 7.5%
Assigned weight 50.0% 15.0% 25.0% 10.0% 50.0% 15.0% 25.0% 10.0%
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. Reference is made to note 82 in the 2025 Consolidated Financial Statements for further
information about the Group‘s impairment methodology.
 Loans to customers ........................................................................................
 Derivatives .....................................................................................................
 Other assets ...................................................................................................
 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 .......................................................................
31.12.2025
 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 credit rating, lifetime PD values, days past due and registration on Creditinfo’s
delinquency register.
31.3.2026
31.3.2026 31.12.2025
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  26

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
40
40. Credit quality of financial assets (cont. )
a.
Impairment Listed Unlisted
Claim due to expected Carrying Total securities and securities and Residential Commercial Industrial Unsecured 
31.3.2026 value credit loss amount % collateral Deposits liquid funds other funds real estate real estate Automobiles equipment Guarantees Other claim value 
6 (0) 6 0.0% 8 - - - - - 8 - - - 1 
3 (0) 3 0.0% - - - - - - - - - - 3 
Corporate
 Real estate activities .................................. 55,101 (303) 54,798 25.3% 91,918 56 371 669 35,792 52,840 1,042 375 100 673 842 
 Construction .............................................. 25,469 (156) 25,313 11.7% 48,613 5 - - 25,001 10,320 6,540 5,201 - 1,5 45 206 
 Service Activities ........................................ 16,172 (70) 16,102 7.4% 30,904 45 51 304 1,073 8,101 17,317 3,218 0 79 6 237 
 Accommodat. and Food Service Activit. ..... 14,327 (76) 14,252 6.6% 26,296 60 - - 3,872 21,698 543 78 0 45 273 
 Activities of Holding Companies ................. 14,276 (484) 13,791 6.4% 60,439 205 902 15,727 9,904 13,551 175 143 688 19,144 887 
 Act. of Hold. Comp. - Securities Financing .. 9,233 (282) 8,951 4.1% 16,020 517 14,326 252 925 - - - 0 - 682 
 Other ......................................................... 19,181 (88) 19,093 8.8% 38,633 187 4,155 3,703 3,138 10,763 7,866 5,033 115 3,673 2,086 
65,538 (914) 64,625 29.8% 126,719 32 993 759 76,920 2,167 43,228 1,297 - 1,324 8,945 
Total 219,306 (2,373) 216,933 100.0% 439,551 1,106 20,798 21,413 156,624 119,440 76,720 15,345 903 27,201 14,162 
Impairment Listed Unlisted
Claim due to expected Carrying Total securities and securities and Residential Commercial Industrial Unsecured 
31.12.2025 value credit loss amount % collateral Deposits liquid fund s other funds real estate real estate Automobile s equipment Guarantees Other claim value 
6 (0) 6 0.0% 9 - - - - - 9 - - - 1 
2 (0) 2 0.0% - - - - - - - - - - 2 
Corporate
 Real estate activities .................................. 51,219 (308) 50,911 24.5% 89,260 63 400 2,983 36,289 47,916 956 322 100 231 1,249 
 Construction .............................................. 22,161 (104) 22,057 10.6% 42,192 9 - - 21,576 7,534 6,344 5,140 - 1,58 9 411 
 Activities of Holding Companies ................. 16,541 (48) 16,493 7.9% 60,434 4 40 10,588 10,152 17,785 1,513 147 706 19,500 1,322 
 Service Activities ........................................ 15,859 (527) 15,333 7.4% 29,280 38 67 711 1,596 6,655 16,724 3,004 0 4 85 522 
 Accommodat. and Food Service Activit. ..... 11,299 (75) 11,224 5.4% 22,120 144 - - 3,905 17,419 542 60 0 50 271 
 Act. of Hold. Comp. - Securities Financing .. 7,698 (282) 7,417 3.6% 14,583 364 13,891 276 52 - - - 0 - 664 
 Other ......................................................... 20,122 (94) 20,028 9.6% 40,580 378 4,968 3,645 3,674 10,998 7,795 4,887 115 4,120 2,029 
64,981 (891) 64,090 30.9% 121,954 35 446 665 73,022 2,314 42,932 1,178 0 1,362 8,982 
Total 209,889 (2,329) 207,560 100.0% 420,411 1,034 19,812 18,868 150,266 110,621 76,814 14,737 921 27,338 15,452 
 Public entities .................................................
 Financial institutions .......................................
 Individuals .......................................................
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
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 .................................................
 Individuals .......................................................
 Financial institutions .......................................
Allocated collateral
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  27

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
40
40. Credit quality of financial assets (cont.)
b.
31.3.2026 
Loans to customers: Stage 1 Stage 2 Stage 3 FVTPL Total
143,406 1,544 - 4,002 148,951 
38,834 4,482 - - 43,316 
10,518 4,235 - 182 14,935 
486 387 - 135 1,008 
4 0 10,408 - 10,413 
477 207 - - 684 
Gross carrying amount 193,724 10,856 10,408 4,318 219,306 
(348) (234) (1,791) 0 (2,373)
Book value 193,376 10,622 8,617 4,318 216,933 
Loan commitments, guarantees and unused credit facilities: Stage 1 Stage 2 Stage 3 FVTPL Total
7,918 3 - 112 8,033 
2,499 20 - - 2,520 
250 74 - 1 325 
2 0 - - 2 
2 - 4 - 6 
98 - - - 98 
Total off-balance sheet amount 10,769 97 4 113 10,984 
(7) (0) (1) - (8)
Net off-balance sheet amount 10,762 97 3 113 10,976 
31.12.2025
Loans to customers: Stage 1 Stage 2 Stage 3 FVTPL Total
139,620 5,455 - 3,658 148,733 
33,264 2,123 - 94 35,480 
11,787 4,113 - - 15,901 
374 518 - - 892 
4 1 7,706 - 7,710 
730 318 - 125 1,173 
Gross carrying amount 185,778 12,527 7,706 3,877 209,889 
(379) (203) (1,747) - (2,329)
Book value 185,400 12,324 5,959 3,877 207,560 
Loan commitments, guarantees and unused credit facilities: Stage 1 Stage 2 Stage 3 FVTPL Total
6,722 0 - 61 6,783 
2,945 0 - - 2,945 
236 14 - - 249 
2 77 - - 80 
- - 12 - 12 
741 - - - 741 
Total off-balance sheet amount 10,646 91 12 61 10,810 
(13) (0) (3) - (16)
Net off-balance sheet amount 10,633 91 9 61 10,794 
 Non-rated .............................................................................................
 Expected credit loss .............................................................................
 Expected credit loss .............................................................................
 Credit quality band I .............................................................................
 Credit quality band II ............................................................................
 Credit quality band III ...........................................................................
 Credit quality band IV ..........................................................................
 In default ..............................................................................................
 Credit quality band II ............................................................................
 Credit quality band III ...........................................................................
 Credit quality band IV ..........................................................................
 In default ..............................................................................................
 Non-rated .............................................................................................
The following tables show financial assets subject to the impairment requirements of IFRS 9 broken down by credit quality bands where band i
denotes the lowest 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.
 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 .............................................................................................
 Exp
ected credit loss .............................................................................
 Credit quality band I .............................................................................
 In default ..............................................................................................
 Non-rated .............................................................................................
 Expected credit loss .............................................................................
 Credit quality band I .............................................................................
 Credit quality band II ............................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  28

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
40
40. Credit quality of financial assets (cont.)
c. Breakdown of loans to customers into not past due and past due
Claim Expected Carrying
31.3.2026 value credit loss amount
203,119 (567) 202,552 
5,190 (91) 5,099 
4,485 (129) 4,356 
1,896 (38) 1,858 
1,311 (511) 800 
1,374 (193) 1,181 
1,931 (844) 1,087 
Total 219,306 (2,373) 216,933 
Claim Expected Carrying
31.12.2025 value credit loss amount
193,748 (620) 193,129 
5,802 (510) 5,292 
2,633 (62) 2,572 
3,145 (10) 3,135 
1,963 (144) 1,819 
1,049 (192) 857 
1,549 (792) 757 
Total 209,889 (2,329) 207,560 
d. Allowance for expected credit loss on loans to customers and loan commitments, guarantees and unused credit facilities
31.3.2026 
Expected credit loss allowance total
Sta
ge 1 Sta ge 2 Sta ge 3 Total
Transfers of financial assets:
Balance as at 1 January 2026 392 204 1,749 2,345 
48 (30) (18) - 
(18) 68 (50) - 
(8) (31) 39 - 
(94) 20 133 59 
107 27 71 206 
(72) (24) (83) (179)
- - (50) (50)
Balance as at 31 March 2026 355 234 1,792 2,381 
Expected credit loss allowance for loans to customers
S t a g e  1S t a g e  2S t a g e  3 T o t a l
Transfers of financial assets:
Balance as at 1 January 2026 379 203 1,747 2,329 
47 (30) (17) - 
(18) 68 (50) - 
(8) (31) 39 - 
(87) 20 133 66 
107 27 71 205 
(72) (24) (82) (177)
- - (50) (50)
Balance as at 31 March 2026 348 234 1,791 2,373 
 New financial assets, originated or purchased ..............................................................
 Derecognitions and maturities ......................................................................................
 Write-offs .......................................................................................................................
 Derecognitions and maturities ......................................................................................
 Write-offs .......................................................................................................................
 Transfer to Stage 1 - (Initial recognition) ..................................................................
 Transfer to Stage 2 - (significantly increased credit risk) .........................................
 Transfer to Stage 3 - (credit impaired) .....................................................................
 Net remeasurement of loss allowance ..........................................................................
The following tables show changes in the expected credit loss allowance of loans to customers and for loan commitments, guarantees and unused
credit facilities during the 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 ...................................................................................................................
 Past due 91-180 days ................................................................................................................................
 Past due 181-360 days ..............................................................................................................................
 Past d
ue more than 360 days ...................................................................................................................
 Not past due .............................................................................................................................................
 Past due 1-30 days ....................................................................................................................................
 Past due 31-60 days ..................................................................................................................................
 Not past due .............................................................................................................................................
 Past due 1-30 days ....................................................................................................................................
 Past due 31-60 days ..................................................................................................................................
 Past due 61-90 days ..................................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  29

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
40
40. Credit quality of financial assets (cont.)
Expected credit loss allowance for loan commitments, guarantees and unused credit facilities
S t a g e  1S t a g e  2S t a g e  3 T o t a l
Transfers of financial assets:
Balance as at 1 January 2026 13 0 3 16 
1 (0) (1) - 
(0) 0 (0) - 
(0) (0) 0 - 
(7) (0) (0) (7)
0 - - 0 
(0) (0) (0) (1)
Balance as at 31 March 2026 7 0 1 8 
31.12.2025
Expected credit loss allowance total
S t a g e  1S t a g e  2S t a g e  3 T o t a l
Transfers of financial assets:
Balance as at 1 January 2025 377 189 1,778 2,345 
80 (33) (47) - 
(18) 42 (24) - 
(17) (28) 45 - 
(139) 5 99 (35)
303 107 633 1,043 
(194) (79) (405) (679)
(0) (0) (329) (330)
Balance as at 31 December 2025 392 204 1,749 2,345 
Expected credit loss allowance for loans to customers
S t a g e  1S t a g e  2S t a g e  3 T o t a l
Transfers of financial assets:
Balance as at 1 January 2025 367 189 1,771 2,327 
74 (33) (41) - 
(18) 42 (24) - 
(17) (28) 45 - 
(134) 5 98 (31)
297 107 633 1,038 
(191) (79) (405) (675)
(0) (0) (329) (330)
Balance as at 31 December 2025 379 203 1,747 2,329 
Expected credit loss allowance for loan commitments, guarantees and unused credit facilities
S t a g e  1S t a g e  2S t a g e  3 T o t a l
Transfers of financial assets:
Balance as at 1 January 2025 11 0 7 18 
6 (0) (6) - 
(0) 0 (0) - 
(0) (0) 0 - 
(5) 0 2 (4)
5 - - 5 
(3) (0) (0) (4)
Balance as at 31 December 2025 13 0 3 16 
 Transfer to Stage 2 - (significantly increased credit risk) .........................................
 Transfer to Stage 3 - (credit impaired) .....................................................................
 Net remeasurement of loss allowance ..........................................................................
 New financial assets, originated or purchased ..............................................................
 Derecognitions and maturities ......................................................................................
 Write-offs .......................................................................................................................
 Transfer to Stage 1 - (Initial recognition) ..................................................................
 Transfer to Stage 2 - (significantly increased credit risk) .........................................
 Transfer to Stage 3 - (credit impaired) .....................................................................
 Net remeasurement of loss allowance ..........................................................................
 New financial assets, originated or purchased ..............................................................
 Derecognitions and maturities ......................................................................................
 Transfer to Stage 3 - (credit impaired) .....................................................................
 Net remeasurement of loss allowance ..........................................................................
 New financial assets, originated or purchased ..............................................................
 Derecognitions and
  maturities ......................................................................................
 Write-offs .......................................................................................................................
 Transfer to Stage 1 - (Initial recognition) ..................................................................
 Net remeasurement of loss allowance ..........................................................................
 New financial assets, originated or purchased ..............................................................
 Derecognitions and maturities ......................................................................................
 Transfer to Stage 1 - (Initial recognition) ..................................................................
 Transfer to Stage 2 - (significantly increased credit risk) .........................................
 Transfer to Stage 1 - (Initial recognition) ..................................................................
 Transfer to Stage 2 - (significantly increased credit risk) .........................................
 Transfer to Stage 3 - (credit impaired) .....................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  30

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
40
41. Loan-to-value
a. General
b. Breakdown
31.3.2026 % 31.12.2025 % 
62,667 28.9% 66,278 31.9% 
83,020 38.3% 70,430 33.9% 
51,821 23.9% 44,615 21.5% 
3,852 1.8% 6,707 3.2% 
1,849 0.9% 3,814 1.8% 
849 0.4% 2,371 1.1% 
1,292 0.6% 2,231 1.1% 
No or negligible collateral:
11,584 5.3% 11,112 5.4% 
Total 216,933 100.0% 207,560 100.0% 
42. Collateral against exposures to derivatives
Fixed Variable Other 
income income Real fixed 
Deposits securities securities estate assets Other 31.3.2026 
1,721 96 249 - - - 2,066 
429 41 1,250 - - - 1,721 
62 18 113 - - - 192 
Total 2,212 155 1,612 - - - 3,979 
Fixed Variable Other 
income income Real fixed 
Deposits securities securities estate assets Other 31.12.2025 
1,533 86 298 - - - 1,916 
618 13 1,151 - - - 1,783 
44 9 104 - - - 156 
Total 2,195 107 1,553 - - - 3,855 
43. Large exposures
31.3.2026 31.12.2025 
Large exposures before risk adjusted mitigation Number Amount Number Amount 
3 14,803 2 9,610 
0 - 0 - 
0 - 0 - 
Total 3 14,803 2 9,610 
0 - 0 - 
1 4,781 1 4,662 
 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% .........................................................................................................
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 34).
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 15 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 posted in excess of the contractual collateral limit (overcollateralisation).
 100-125% ........................................................................................................................
 125-200% ........................................................................................................................
 Othe
r loans with no collateral ..................................................................................
The Group applies the same valuation methods to collateral held as other comparable assets held by the Group. Haircuts are applied to account
for liquidity and other factors which may affect the collateral value of the asset. 
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  31

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
44. Liquidity risk
a. Definition
b. Management
31.3.2026 Unweighted Weighted Unweighted Weighted Unweighted Weighted
57,090 57,090 1,410 1,340 59,074 58,975 
2,735 2,325 1,436 1,149 4,689 3,888 
- - 5,182 2,332 5,758 2,591 
- - - (2,587) - - 
Total high quality liquid assets (HQLA) 59,825 59,415 8,028 2,233 69,521 65,454 
142,789 35,223 4,238 1,573 150,182 38,094 
109 109 - - 265 265 
7,781 2,937 1,613 139 15,269 3,516 
Total outflows (0-30 days) 150,678 38,268 5,851 1,711 165,717 41,875 
284 284 980 980 7,956 7,956 
10,853 7,430 374 373 15,579 11,417 
- - - (70) - - 
Total inflows (0-30 days) 11,137 7,714 1,354 1,283 23,535 19,373 
194% 522% 291%
31.12.2025 Unweighted Weighted Unweighted Weighted Unweighted Weighted
53,860 53,860 957 909 55,809 55,712 
2,559 2,175 758 606 4,970 4,104 
- - 3,442 1,549 6,109 2,749 
- - - (1,549) - - 
Total high quality liquid assets (HQLA) 56,419 56,035 5,157 1,516 66,888 62,565 
129,272 24,320 3,703 1,647 136,160 27,418 
131 131 - - 292 292 
8,515 4,238 1,651 222 15,898 4,887 
Total outflows (0-30 days) 137,918 28,688 5,354 1,869 152,350 32,597 
284 284 2,870 2,870 8,075 8,075 
7,335 5,778 490 489 11,194 9,030 
- - - (1,957) - - 
Total inflows (0-30 days) 7,620 6,062 3,359 1,402 19,268 17,104 
248% 324% 404%
31.3.2026 31.12.2025 
133% 137%
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%.
 NSFR total ...........................................................................................................................................................................
 Other inflows ..........................................................................
 Restrictions on inflows ...........................................................
 Liquidity coverage ratio ..........................................................
 Deposits ..................................................................................
 Other borrowings ...................................................................
 Other outflows .......................................................................
 Restrictions on inflows ...........................................................
 Liquidity coverage ratio ..........................................................
 Deposits ..................................................................................
 Other borrowings ...................................................................
 Other outflows .......................................................................
 Excess liquid asset amount ....................................................
 Excess liquid asset amount ....................................................
 Liquid assets level 2B ..............................................................
 Liquid assets level 2B ..............................................................
 Short-term deposits with other banks ...................................
 Other inflows ..........................................................................
ISK EUR Total all currencies
 Liquid assets level 1 ................................................................
 Liquid assets level 2A .............................................................
ISK EUR Total all currencies
 Liquid assets level 1 ................................................................
 Liquid assets level 2A .............................................................
 Short-term deposits with other banks ...................................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  32

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
44. Liquidity risk (cont.)
c. LCR deposit categories
31.3.2026 Run off date 0-30 days Over 30 days Total 
5%-100% 107,610 17,368 124,978 
5%-100% 8,607 223 8,830 
20%-40% 10,701 70 10,771 
40% 2,767 5 2,772 
100% 20,668 19,625 40,292 
2,007 29 2,035 
Total 152,359 37,320 189,678 
31.12.2025 Run off date 0-30 days Over 30 days Total 
5%-100% 106,607 16,120 122,727 
5%-100% 8,905 118 9,023 
20%-40% 9,005 6 9,011 
40% 98 1 98 
100% 11,545 18,130 29,676 
2,247 5 2,252 
Total 138,407 34,380 172,787 
 Financial entities .................................................................................................................
 Other * .................................................................................................................................
 Individuals ...........................................................................................................................
 Small and medium sized corporates ...................................................................................
 Large corporates .................................................................................................................
 Public entities ......................................................................................................................
 Public entities ......................................................................................................................
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 .................................................................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  33

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
44. Liquidity risk (cont.)
d. Maturity analysis of financial assets and financial liabilities
31.3.2026 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
28,555 - - - - 28,555 28,540 
5,336 0 - 0 - 5,336 5,336 
27,359 18,355 68,358 116,813 77,558 308,442 216,933 
9,435 - 12,997 14,380 3,135 39,947 39,947 
18,833 - 3,906 - - 22,739 22,739 
5,329 - - - - 5,329 5,329 
11,636 196 1,562 213 2 13,609 13,609 
106,483 18,550 86,823 131,406 80,695 423,957 332,433 
Derivative assets
 Inflow ....................................................... 5, 012 16,611 14,432 20,910 - 56,965 
 Outflow .................................................... (4, 003) (16,197) (13,762) (18,736) - (52,698)
1,009 414 670 2,175 - 4,267 4,237 
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
(152,534) (21,834) (12,187) (3,879) (739) (191,173) 189,678 
- (82) (1,120) (6,867) - (8,069) 7,378 
(265) (8,841) (7,644) (60,599) (2,662) (80,012) 72,714 
- (98) (274) (1,488) (9,516) (11,376) 6,080 
(616) - - - - (616) 616 
(493) - - - - (493) 493 
(7,093) (5,304) (1,165) (1,745) - (15,307) 15,285 
(161,002) (36,158) (22,391) (74,578) (12,918) (307,047) 292,245 
Derivative liabilities
 Inflow ....................................................... 2, 831 8,326 1,227 10,808 - 23,193 
 Outflow .................................................... (3, 023) (8,387) (1,230) (11,131) - (23,771)
(192) (60) (3) (323) - (578) 548 
Unrecognised financial items
 Inflow ....................................................... 185 728 1,934 8,485 90 11,423 
 Outflow .................................................... (9,930) - - - - (9,930)
 Inflow ....................................................... - 144 852 51 7 1,054 
 Outflow .................................................... (1,054) - - - - (1,054)
(10,799) 872 2,787 8,536 97 1,493 
Summary
106,483 18,550 86,823 131,406 80,695 423,957 
1,009 414 670 2,175 - 4,267 
(161,002) (36,158) (22,391) (74,578) (12,918) (307,047)
(192) (60) (3) (323) - (578)
   unrecognised items (53,702) (17,255) 65,099 58,679 67,777 120,599 
(10,799) 872 2,787 8,536 97 1,493 
Net assets (liabilities) (64,501) (16,382) 67,885 67,215 67,874 122,092 
 Derivative assets ............................................
 Derivative liabilities .......................................
 Non-derivative assets ....................................
 Non-derivative liabilities ...............................
 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 ....................
 Cash and balances with Central Bank ...........
 Shares and other variable income securities 
 Fix ed income securities .................................
 Securities used for hedging ...........................
 Loans to customers ........................................
 Other assets ...................................................
 Loans to credit institutions ............................
 Deposits  ........................................................
 Borrowings .....................................................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  34

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
44. Liquidity risk (cont.)
31.12.2025 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
20,146 - - - - 20,146 20,145 
8,149 - 5 0 - 8,154 8,154 
21,090 15,270 71,415 112,754 63,673 284,203 207,560 
10,847 985 18,015 12,450 2,224 44,522 44,522 
16,966 - 3,697 - - 20,663 20,663 
6,695 - - - - 6,695 6,695 
5,321 2,103 856 232 - 8,513 8,513 
89,214 18,358 93,989 125,437 65,898 392,895 316,251 
Derivative assets
 Inflow ....................................................... 5,634 569 17,818 28,615 - 52,636 
 Outflow .................................................... (4, 599) (550) (16,866) (27,004) - (49,019)
1,035 18 952 1,611 - 3,617 3,250 
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
(138,421) (18,034) (15,538) (1,386) (685) (174,063) 172,787 
- (87) (528) (6,989) - (7,604) 6,806 
(292) (238) (16,687) (61,576) (2,616) (81,409) 73,249 
- - (362) (1,452) (9,285) (11,099) 5,841 
(433) - - - - (433) 433 
(432) - - - - (432) 432 
(3,003) (7,188) (1,286) (2,156) - (13,633) 13,599 
(142,580) (25,547) (34,401) (73,558) (12,585) (288,672) 273,147 
Derivative liabilities
 Inflow ....................................................... 12,126 - 10,687 3,149 - 25,963 
 Outflow .................................................... (12,653) - (10,926) (3,523) - (27,103)
(527) - (239) (374) - (1,140) 773 
Unrecognised financial items by type
Loan commitments
 Inflow ....................................................... 489 673 3,371 6,302 94 10,930 
 Outflow .................................................... (9,713) - - - - (9,713)
 Inflow ....................................................... - 1 298 792 7 1,097 
 Outflow .................................................... (1,097) - - - - (1,097)
(10,321) 674 3,669 7,094 101 1,217 
Summary
89,214 18,358 93,989 125,437 65,898 392,895 
1,035 18 952 1,611 - 3,617 
(142,580) (25,547) (34,401) (73,558) (12,585) (288,672)
(527) - (239) (374) - (1,140)
   unrecognised items (52,858) (7,171) 60,301 53,115 53,312 106,700 
(10,321) 674 3,669 7,094 101 1,217 
Net assets (liabilities) (63,179) (6,497) 63,970 60,209 53,414 107,917 
 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 ...........................
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 o f these items.
 Der
ivative 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 .................................
 Loans to credit institutions ............................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  35

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
44
45. Market risk
a. Definition
b. Management
46. Interest rate risk
a. Definition
b. Management
47. 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 31.3.2026 
40 32 324 4,259 880 5,535 
- - (44) (157) (415) (616)
Net imbalance 40 32 280 4,102 465 4,918 
Up to 1 1-3 3-12 1-5 Over 5  
month months months years years 31.12.2025
33 58 364 2,438 1,320 4,213 
(1) (8) (7) (135) (210) (361)
Net imbalance 32 50 357 2,303 1,110 3,853 
b. Sensitivity analysis
Shift in 31.3.2026 31.12.2025 
basis points Downward Upward Downward Upward 
50 14 (15) 43 (40)
100 51 (53) 59 (58)
Total 64 (68) 102 (97)
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 46-51 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 Gr oup'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 i s specified as follows:
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  36

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
44
48. Interest rate risk associated with non-trading portfolios
a. Breakdown
31.3.2026 
Financial assets Up to 1 1-3 3-12 1-5 Over 5 
month months months years years Total 
28,540 - - - - 28,540 
5,336 - - - - 5,336 
202,215 3,023 7,664 4,025 5 216,933 
3,861 44 13,019 13,889 3,599 34,412 
8,418 8,427 - - - 16,845 
Financial assets excluding derivatives 248,370 11,494 20,683 17,915 3,604 302,066 
14,215 62,977 2,529 30,483 - 110,204 
Total 262,585 74,471 23,212 48,398 3,604 412,270 
Financial liabilities Up to 1 1-3 3-12 1-5 Over 5 
month months months years years Total 
159,635 18,096 9,781 2,167 0 189,678 
5,250 730 - 1,399 - 7,378 
18,183 15,154 36 36,884 2,457 72,714 
- 3,237 167 2,676 - 6,080 
82 - - 163 - 245 
Financial liabilities excluding derivatives 183,149 37,217 9,984 43,289 2,457 276,096 
16,290 83,771 2,462 - - 102,523 
Total 199,439 120,988 12,446 43,289 2,457 378,618 
Total interest repricing gap 63,146 (46,516) 10,765 5,110 1,147 33,652 
31.12.2025
Financial assets Up to 1 1-3 3-12 1-5 Over 5 
month months months years years Total 
20,145 - - - - 20,145 
8,154 - - - - 8,154 
192,654 3,693 5,590 5,353 270 207,560 
3,984 1,049 18,974 12,893 3,408 40,309 
15,013 - - - - 15,013 
Financial assets excluding derivatives 239,950 4,741 24,565 18,247 3,677 291,180 
22,616 48,125 6,256 30,818 - 107,815 
Total 262,566 52,867 30,820 49,065 3,677 398,995 
Financial liabilities Up to 1 1-3 3-12 1-5 Over 5 
mont
h mont hs mont hs years years Tota l 
144,844 13,644 14,259 40 0 172,787 
6,806 - - - - 6,806 
18,358 14,035 1,389 37,061 2,406 73,249 
- - 3,272 2,570 - 5,841 
- - 84 166 - 250 
Financial liabilities excluding derivatives 170,008 27,679 19,004 39,836 2,406 258,933 
22,744 69,396 6,674 - - 98,814 
Total 192,752 97,075 25,678 39,836 2,406 357,746 
Total interest repricing gap 69,814 (44,208) 5,142 9,229 1,272 41,248 
b. Sensitivity analysis
Shift in 31.3.2026 31.12.2025 
Currency basis points Downward Upward Downward Upward 
50 42 (38) 53 (49)
100 153 (151) 201 (197)
20 (2) 2 (6) 6 
Total 193 (187) 248 (240)
 Issued bonds .....................................................................
 Other liabilities .................................................................
 Subordinated liabilities ....................................................
 Loans to customers ..........................................................
 Fixed income securities ....................................................
 Unit shares in cash equivalent liquidity funds .................
 Borrowings .......................................................................
 Effect of derivatives ..........................................................
 Issued bonds .....................................................................
 Loans to credit institutions ...............................................
 Cash and balances with Central Bank ..............................
 Fixed income securities ....................................................
 Loans to customers ..........................................................
 Loans to credit institutions ...............................................
ISK, non-indexed ......................................................................................
Other currencies .......................................................................................
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'sp r e-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 ....................................................
 Other liabilities .................................................................
 Effect of derivatives ..........................................................
 Unit shares in cash equivalent liquidity funds .................
 Effect of derivatives ..........................................................
 Deposits  ...........................................................................
 Borrowings .......................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  37

===== SIDA 41 =====

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
44
49. Exposure towards changes in the CPI
a. Definition
b. Management
c. Balance of CPI linked assets and liabilities
31.3.2026 31.12.2025 
29,826 31,407 
(25,707) (24,971)
Total 4,119 6,436 
d. Sensitivity to changes in CPI
31.3.2026 31.12.2025 
-1% 1% -1% 1%
(31) 31 (25) 25 
(34) 34 (35) 35 
(213) 213 (233) 233 
(20) 20 (20) 20 
2 (2) 2 (2)
95 (95) 91 (91)
100 (100) 98 (98)
61 (61) 58 (58)
(41) 41 (64) 64 
The effect on equity would be the same.
50. 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 
31.3.2026 3m 2026 31.12.2025 3m 2025
143.6 146.3 143.9 145.6 
124.9 124.7 138.2 138.5 
165.4 168.5 173.3 174.3 
 Issued bonds ..................................................................................................................
 Liabilities .......................................................................................................................................................................
 Assets ............................................................................................................................................................................
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 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 2026 and 31
December 2025 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. 
 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 ......................................................................................................................
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.
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  38

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
50
50. Currency risk (cont.)
e. Breakdown of assets and liabilities denominated in foreign currencies
31.3.2026 
Assets Other 
EUR USD GBP SEK currencies Total 
1 1 1 - - 4 
982 318 3,188 138 567 5,194 
2,956 931 42,431 208 - 46,526 
- 82 - - - 82 
8,490 230 10,752 0 16 19,488 
38 641 62 191 67 999 
- - 2,226 - - 2,226 
1,091 704 831 18 12 2,655 
Assets excluding derivatives 13,559 2,906 59,490 555 663 77,173 
60,709 4,296 - 17,021 14,825 96,850 
Total 74,267 7,202 59,490 17,576 15,487 174,023 
Liabilities Other 
EUR USD GBP SEK currencies Total 
4,640 2,950 672 47 169 8,479 
- - 5,117 - - 5,117 
29,793 - - 17,540 9,496 56,829 
2,149 1,260 1,092 - 8 4,509 
Liabilities excluding derivatives 36,583 4,210 6,882 17,586 9,674 74,934 
37,533 2,934 51,978 14 5,326 97,785 
Total 74,115 7,144 58,860 17,601 14,999 172,719 
Other 
Net currency position EUR USD GBP SEK currencies Total 
74,267 7,202 59,490 17,576 15,487 174,023 
(74,115) (7,144) (58,860) (17,601) (14,999) (172,719)
841 - - - - 841 
Total 993 57 631 (24) 488 2,144 
31.12.2025 
Assets Other 
EUR USD GBP SEK currencies Total 
1 1 2 - - 4 
2,872 813 3,657 143 307 7,793 
3,121 578 41,146 251 - 45,096 
- 81 - - - 81 
5,727 390 11,629 0 16 17,762 
59 705 10 626 116 1,517 
- - 2,293 - - 2,293 
777 16 804 16 13 1,626 
Assets excluding derivatives 12,558 2,585 59,540 1,037 452 76,171 
62,372 1,679 - 17,261 14,434 95,746 
Total 74,930 4,264 59,540 18,297 14,886 171,917 
Liabilities Other 
EUR USD GBP SEK currencies Total 
4,104 2,918 666 51 182 7,920 
- - 5,228 - - 5,228 
30,209 - - 18,188 9,232 57,629 
2,225 146 1,661 19 - 4,051 
Liabilities excluding derivatives 36,538 3,064 7,554 18,257 9,415 74,828 
38,448 1,124 51,389 19 5,226 96,207 
Total 74,987 4,188 58,944 18,276 14,641 171,035 
Other 
Net currency position EUR USD GBP SEK currencies Total 
74,930 4,264 59,540 18,297 14,886 171,917 
(74,987) (4,188) (58,944) (18,276) (14,641) (171,035)
862 - - - - 862 
Total 805 76 596 21 245 1,744 
 Total assets ............................................................................
 Financial guarantee contracts ...............................................
 Fixed income securities .........................................................
 Shares and other variable income securities ........................
 Loans to customers ................................................................
 Total liabilities ........................................................................
 Financial guarantee contracts ...............................................
 Total assets ............................................................................
 Derivatives .............................................................................
 Other liabilities .......................................................................
 Securities used for hedging ...................................................
 Borrowings .............................................................................
 Issue
d bonds ..........................................................................
 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 .............................................................................
 Loans to credit institutions ....................................................
 Loans to credit institutions ....................................................
 Issued bonds ..........................................................................
 Total liabilities ........................................................................
 Other liabilities .......................................................................
 Derivatives .............................................................................
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  39

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

Kvika banki hf.  Amounts are in ISK millions
Notes to the Condensed Interim Consolidated Financial Statements
50
50. Currency risk (cont.)
f. Sensitivity to currency risk
31.3.2026 31.12.2025 
Assets and liabilities denominated in foreign currencies -10% +10% -10% +10% 
99 (99) 81 (81)
6 (6) 8 (8)
63 (63) 60 (60)
(2) 2 2 (2)
49 (49) 25 (25)
Total 214 (214) 174 (174)
51. Equity risk
a. Definition
b. Sensitivity analysis of equity risk
31.12.2025 
-10% +10% -10% +10% 
(103) 103 (100) 100 
(315) 315 (310) 310 
(171) 171 (156) 156 
Total (589) 589 (565) 565 
52. Operational risk
a. Definition
b. Management
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.
 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 unit shares in cash equivalent liquidity funds are excluded.
31.3.2026 
 Listed shares ........................................................................................................................
 Unlisted shares ....................................................................................................................
 Unlisted unit shares in funds ...............................................................................................
 SEK .......................................................................................................................................
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. 
 Condensed Interim Consolidated Financial Statements 31 March 2026 - Unaudited  40

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