Störf í boði hjá Kviku banka

Ávöxtunarleiðir séreignarsparnaðar

Jólagjöf Kviku 2024

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Áreiðanleikakönnun söluaðila Netgíró og Aur

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Græn fjármálaumgjörð Kviku banka hf.

Gudmundur Thordarson has been appointed to the new position of manager of business development at Kvika. Gudmundur will lead the Kvika group's customer relations as well as coordinate the marketing efforts of the bank's revenue divisions. He will also develop new products and services in collaboration with other areas of the bank. Gudmundur will leave the bank's board and take a seat on the executive board.

Gudmundur graduated with a Cand. Oecon degree in business administration from the University of Iceland in 1997. He has also completed a degree in stockbroking and asset management in the UK.  Gudmundur has been a member of Kvika's board since 2017 and has been vice-chairman of the board since 2018. From 2000 to 2003, Gudmundur worked as an expert in the development and corporate consulting department of Íslandsbanki hf. From 2003 to 2007, Gudmundur worked as a manager of the corporate division at Straumur investment bank hf. In recent years, Gudmundur has worked on his own investments as well as performing various board positions.

"It is a great honor for us to have Gudmund join Kvika's management team. He has decades of experience in corporate consulting and investments, is very well connected in the Icelandic business world and has extensive knowledge of all Kvika's activities after many years of working on the board of the bank and its subsidiaries in the UK. In recent seasons, the bank has achieved great success in strengthening its core operations and achieving optimization in operations, but going forward there is an even greater emphasis on income generation in all areas. The bank's strength to move forward increases significantly when the sale of TM insurance goes through, and Gudmundar's appointment is an important part of strengthening Kvika's customer relations and expanding the bank's activities in the financial market."

Gudmundur will lead the Kvika group's customer relations as well as coordinate the marketing efforts of the bank's revenue divisions. He will also develop new products and services in collaboration with other areas of the bank.

Gudmundur Thordarson appointed manager of business development

Hugrún Sif Harðardóttir has been appointed internal auditor of Kvika banki hf. by the bank's Board of Directors and has commenced her duties.

 Hugrún has been a valued member of Kvika's internal audit team since last autumn, previously serving as the deputy director of the internal audit department. With approximately 15 years of experience in the financial sector, she brings extensive expertise in internal auditing, operational risk management, and process optimization.

 Hugrún has been an expert in Kvika's internal audit since last fall and was the deputy director of the internal audit department. Hugrún has worked in the financial market for about 15 years and has extensive and long experience in internal auditing, operational risk and streamlining management. 

 Prior to joining Kvika, Hugrún held positions in internal audit at Landsbankinn from 2021 to 2023 and at Arion banki from 2009 to 2021, where she specialized in internal audit, process optimization, and operational risk management. Additionally, she has a background in quality and safety management, having worked at ANZA and Teris.

 Hugrún holds a Master of Science degree in Analysis, Design, and Management of Information Systems from the London School of Economics and Political Science (LSE), awarded in 2005. She earned her Bachelor of Science degree in Business Administration from the University of Reykjavík in 2002. Furthermore, she is certified as a Certified Information Systems Auditor (CISA) in auditing information systems.

With approximately 15 years of experience in the financial sector, she brings extensive expertise in internal auditing, operational risk management, and process optimization.

Hugrún Sif Harðardóttir has been appointed internal auditor of Kvika banki

Kvika has published an updated its Green Funding Framework, initially published in 2021. The Green Funding Framework enables the bank to clearly define what loans of the bank’s loan portfolio can be considered green, enabling the bank to issue green bonds as well as use green deposits in the bank’s funding. 

The Framework is, as before, in alignment with the ICMA Green Bond Principals and the EU Taxonomy considered as applicable. To date, the Bank has issued green bonds for the equivalent of over ISK 13 billion under its Green Funding Framework. 

Sustainalytics, a leading international Second Party Opinion provider, has reviewed the Framework and provided the bank with a confirmation that the framework is according to market practice. Swedbank AB acted as a Structuring Adviser on the Framework.

Kvika updates its Green Funding Framework

Kvika's sustainability report for 2023 has been published. This is the third time that Kvika publishes a sustainability report, which is published alongside the annual accounts of Kvika and its subsidiaries. The report presents the company's performance in matters relating to sustainability. The Bank's allocation and impact report is published as a part of Kvika's sustainability report, which reports on the progress of green commitments under the Bank's green financial framework.

The report follows Nasdaq‘s ESG Reporting Guide 2.0 and the latest version of the reporting standards of the Global Reporting Initiative (GRI 2021) were also used as a reference to a limited extent for certain disclosures 

Deloitte has provided limited assurance on non-financial information disclosed in Kvika's Sustainability Report.

„The year 2023 was an eventful one at Kvika and we are proud of the success we have achieved in the company's operations under conditions which were challenging in many areas. During the year major efforts were directed at continuing the implementation of the Sustainability Strategy adopted in 2022, with the involvement of Kvika employees, spanning all divisions and subsidiaries. As before, our goal is to make sustainability a part of our core business and decision-making.“

Kvika's sustainability report for 2023 has been published. This is the third time that Kvika publishes a sustainability report, which is published alongside the annual accounts of Kvika and its subsidiaries. The report presents the company's performance in matters relating to sustainability.

Kvika’s Sustainability Report

Halldór Þór Snæland has been appointed Managing Director of the Commercial Banking division of Kvika banki hf. (“Kvika” or “the bank”) and will join the bank’s Executive Committee. The Commercial Banking division provides customers with general banking services and diverse financial technology solutions, through specialized brands and subsidiaries. Among brands operated through the Commercial Banking division are Auður, Aur, Lykill, Netgíró and Straumur.

Halldór has over two decades of experience in the financial market and has been with Kvika since 2015. He has been Director of Operations for the last four years and was previously a specialist in Kvika's Treasury. Between 2014 and 2015, Halldór was Director of Finance and Operations at the health tech startup Sidekick Health. He was Director of Treasury at MP Bank for seven years between 2006 and 2012, and before that he worked in Risk Management at Kaupþing and Búnaðarbanki Íslands.

Halldór completed his M.Sc. degree in engineering management from KTH Royal Institute of Technology in Stockholm in 2014 and graduated from the University of Iceland with a B.Sc. degree in industrial engineering in 2003 as well as having completed a degree in securities trading.

Halldór Þór Snæland has been appointed Managing Director of the Commercial Banking division of Kvika banki hf. and will join the bank’s Executive Committee. The Commercial Banking division provides customers with general banking services and diverse financial technology solutions, through specialized brands and subsidiaries.

Halldór Þór Snæland Managing Director of Kvika’s Commercial Banking division

In Kvika’s consolidated financial statements for the year 2023 the insurance subsidiary TM tryggingar hf. (“TM”) is classified as held for sale. As a result, and in accordance with international financial reporting standards, the Group reports income from its insurance operations in a single line in the consolidated income statement as profit after tax from discontinued operations. The comparative figures of operations from 2022 have been restated accordingly.

Highlights of the Consolidated Financial Statements and performance of 2023:

• Pre-tax profit, including TM insurance, amounted to ISK 5,245 million, compared to ISK 5,621 million in 2022 and decreases by 7% year-on-year.

• Post-tax profit of the group amounted to ISK 4,034 million, compared to ISK 4,913 million in 2022 and decreases by 18% year-on-year.

• Pre-tax return on tangible equity (RoTE) was 12.1%, compared to 13.1% in 2022.

• Earnings per share for the period was ISK 0.84, compared to ISK 1.02 in 2022.

Income from banking and asset management:

• Net interest income amounted to ISK 8,021 million, compared to ISK 7,085 million in 2022 and increased by 13% from previous year.

• Net interest margin was 3.6% in 2023.

• Net fee and commission income amounted to ISK 5,916 million, compared to ISK 6,414 million in 2022 and decreased by 8% from previous year.

• Net financial income was ISK 442 million, compared to ISK 278 million in 2022 and increased by 59% year-on-year.

Post-tax profit of TM insurance is summarized in the income statement as asset held for sale and amounted to ISK 1,730 million over the period, compared to ISK 560 million in 2022 and increased by 209% from previous year.

• Deposits from customers were ISK 134 billion, compared to ISK 112 billion in 2022 and increased by 20% year-on-year.

• Loans to customers were ISK 136 billion, compared to ISK 107 billion in 2022 and increased by 27% year-on-year.

• Total assets were ISK 335 billion, compared to ISK 300 billion in 2022.

• Total equity of the group was ISK 82 billion at year end, compared to ISK 81 billion in 2022.

• Solvency ratio of the financial conglomerate was 1.25 at year end, compared to 1.36 in 2022 and the capital adequacy ratio (CAR) was 22.6%, compared to 23.5% in 2022.•

 Total liquidity coverage ratio (LCR) of the group was 247%, compared to 320% in 2022.

• Total assets under management at year-end were ISK 470 billion, compared to ISK 462 billion at year-end 2022.

Highlights of performance in fourth quarter (Q4 2023)

• Pre-tax profit, including TM insurance, amounted to ISK 1,427 million in Q4 2023, compared to ISK 1,613 million in Q4 2022 and decreases by 13% from previous year.

• Post-tax profit of the group amounted to ISK 1,502 million in Q4 2023, compared to ISK 1,711 million in Q4 2022 and decreases by 12% year-on-year.

• Pre-tax return on tangible equity (RoTE) was 13.9%, compared to 15.3% in the fourth quarter 2022.

• Earnings per share was ISK 0.33 in Q4 2023, compared to ISK 0.36 in Q4 2022.

• Net interest income amounted to ISK 2,331 million in Q4 2023, compared to ISK 1,639 million in Q4 2022 and increased by 39% from previous year.

• Net interest margin was 3.9% in Q4 2023, compared to 3.4% in Q4 2022.

• Net fee and commission income was ISK 1,758 million in Q4 2023, compared to ISK 1,541 million in Q4 2022 and increased by 2% from previous year.

• Net financial income was negative by ISK 11 million in Q4 2023, compared to profit of ISK 33 million in Q4 2022.

• Post-tax profit of TM insurance is summarized in the income statement as asset held for sale and amounted to ISK 914 million in Q4 2023, compared to ISK 1,005 million in Q4 2022 and decreased by 9% from previous year.

• Combined ratio of insurance operations was 92.5%, compared to 89.4% in the fourth quarter of 2022.

“Kvika’s performance in last year was solid and the operating results acceptable in challenging conditions in the financial markets. Profit before taxes, including TM insurance, was 5.3 billion ISK in the year 2023 and return on tangible equity before taxes was 12.1% during the year.

Net interest income increased by 13% year-on-year, but conditions in the first half of the year were unfavourable for Kvika due to rapid rise in interest rates resulting in interest expense increasing faster than interest earned on assets. In the second half of the year the negative effects subsided when rise in policy rates was halted and positive reversal is observable in the fourth quarter were net interest income increased by 39% during the quarter compared to the period in the previous year.

Market conditions affected net fee and commission income that contracted year on year, foremost due to lower fees in the asset management segment as with the corporate banking and capital markets segment. But positive reversal in the fourth quarter in fee and commission income was attributable to increased operations by Straumur.

Kvika is today strongly capitalized, is well funded and with diverse and granular loanbook, that is an enviable position to be in and results in positive outlook for the operations in 2024.

All our brands in retail operations are growing rapidly where efforts have been made in introducing new products and services to the market. Deposits with Auður increased by almost 50%, Lykill had a record year and Netgiro continued to grow. Aur, that has been in progressive development, nowoffers diverse banking services and has issued over 27,000 new cards. Straumur, that launched last year, is spearheading aggressively with 25% market share in the domestic market in payment facilitation. Market share in the capital markets division has been increasing where we have the highest marketshare in fixed-income trading on the Nasdaq Iceland exchange. Assets under management are increasing and Kvika’s fund management operations have been delivering the highest returns of funds in the domestic market. Additionally, Kvika is the only Icelandic bank that offers services in the UK and has the performance of the operations there been steadily improving with increased interest margin and loanbook growth.

Insurance operations of TM insurance delivered exemplary results in the past year and as well in the fourth quarter. The divestment process of TM insurance, headed by Kvika’s corporate finance division, is progressing well as was announced at year end that four parties were offered to continue in the sale process. We expect that a sale or listing of TM insurance will be finalised in the second or third quarter of 2024.

Kvika has updated and now publishes financial targets for the bank which is to deliver return on tangible equity before taxes of 20% or more, the bank’s capital adequacy ratio will be 2-4% above regulatory requirements and that dividends and buyback of shares combined will be at minimum 25% of profit after taxes.

We will work hard on delivering Kvika’s profitability target by emphasising on strengthening our operations in retail- and investment banking and asset management post divestment of TM insurance, continuing simplification of our operations and emphasis on rationalisation. More stable interest rate environment and market conditions will contribute to greater profitability of the bank.

Presentation for shareholders and market participants

A presentation for shareholders and market participants will be held Thursday, 15 February, at 16:15 in Kvika’s headquarters on the 9th floor at Katrínartún 2, 105 Reykjavík. The presentation will be conducted in Icelandic and a live stream can be accessed on the following website:

https://kvika.is/kynning-a-uppgjori-2023/

Meeting participants will be able to send questions before or during the meeting via ir@kvika.is.

Additionally, a recording with English subtitles will be made available on Kvika’s website.

Kvika’s Sustainability Report for the year 2023 is published alongside to the publishing of the Consolidated Financial Statements.

At a board meeting on 15 February 2024, the Board of Directors and the CEO approved the
consolidated financial statements of Kvika banki hf. (“Kvika”) group for the year 2023.

Kvika banki’s Consolidated Financial Statements 2023 and Q4 results

Hafsteinn Hauksson has been appointed Chief Economist of Kvika. Hafsteinn has significant experience in global financial markets, having been a member of the Kvika investment team in London since 2019, where he is frequently sought as commentator on global macroeconomic developments. Hafsteinn will continue to be based in Kvika’s London office.

Hafsteinn earned an MSc degree in Finance and Economics from the London School of Economics in 2015 and holds a BSc degree in Economics from the University of Iceland.

Since completing his postgraduate studies, Hafsteinn has been based in London where he was an Associate with market leading sovereign advisory Newstate Partners before joining GAMMA Capital Management Ltd as an Economist.

Prior to relocating to London, Hafsteinn held a role as Senior Economist with Arion Bank Research in Reykjavik, as well as having spent a number of years as a journalist covering economics and financial markets, including close to two years as a broadcast journalist for Channel 2 evening news in Reykjavik.

Hafsteinn has significant experience in global financial markets, having been a member of the Kvika investment team in London since 2019, where he is frequently sought as commentator on global macroeconomic developments. Hafsteinn will continue to be based in Kvika’s London office.

Hafsteinn Hauksson Chief Economist of Kvika.

Gunnar Sigurðsson has requested to resign as Managing Director of Kvika Securities Ltd. in London (KSL), a subsidiary of Kvika banki hf. Alongside his resignation Gunnar will leave the Executive Committee of Kvika group and the number of positions in the Executive Committee will also be reduced by one. 

The Board of KSL has appointed Richard Beenstock as the new Managing Director of Kvika Securities Ltd.

Gunnar has led the development of Kvika's UK operations since its establishment in 2017. He will continue to carry out certain tasks for KSL and support the Company during the management change.

Richard Beenstock, who graduated from the University of Birmingham and is a Chartered Accountant, has over 20 years of experience in the UK financial markets in lending and investment activities. In 2013, Richard co-founded among others Ortus Secured Finance, an alternative credit provider specialising in property backed lending, that was later acquired by KSL and was its CEO until September 2023. 

Ármann Þorvaldsson, CEO of Kvika banki:

"I would like to take this opportunity to thank Gunnar Sigurðsson for great cooperation over the years. Gunnar joined Kvika in 2015 and has been KSL's Managing Director since the start of its operations in 2017. At that time, he was the Company's only employee but under his leadership, a major development has taken place in the UK, in lending, asset management and corporate advisory. KSL and its subsidiaries now have over 30 employees.

It is a pleasure to be able to announce that Richard Beenstock will take over as KSL's Managing Director and lead the Company's continuing development. Richard knows Kvika well. He is a great manager and has extensive experience and knowledge to take advantage of our opportunities in the UK."

The Board of KSL has appointed Richard Beenstock as the new Managing Director of Kvika Securities Ltd. Gunnar Sigurðsson has requested to resign as Managing Director.

Change of Managing Director at Kvika Securities Ltd.

Following the decision of the board of directors of Kvika bank hf. ("Kvika" or "the bank") regarding the sale or listing of its insurance subsidiary TM tryggingar hf. ("TM" or "the company"), which was announced on the 3rd of October, it is hereby informed that the bank will start the sales process today.

It is Kvika's intention to sell all outstanding shares in TM or sell shares in the company to cornerstone investors, which may result in a listing.

Kvika's Corporate Finance division has been engaged to oversee the sales process and BBA//Fjeldco has been hired as a legal advisor in the process.

Further updates on the sales process will be provided in due course.

For further information regarding the process please contact Kvika's Corporate Finance through the email address tm@kvika.is

Kvika banki hf. initiates the sales process of TM tryggingar hf.

Elísabet G. Björnsdóttir has been appointed chief risk officer and will join the bank‘s executive committee.  

Elisabet has been with Kvika bank since 2021, where she led the bank‘s market funding. Elisabet‘s prior work experience includes working at J.P. Morgan where she worked for ten years in risk management, first in New York managing the bank's market- and counterparty risk, and later in London where she managed a trading book with credit default swaps and syndicated loans. Upon returning home in 2017, Elísabet joined Landsbankinn's treasury department before moving to  Kvika. 

Elísabet is a financial engineer and completed her master's degree at Cornell University in 2008 and her B.Sc. degree in civil engineering from the University of Iceland in addition to having completed a degree in securities trading and diploma studies as an authorized board member.

Elísabet G. Björnsdóttir has been appointed chief risk officer and will join the bank‘s executive committee.

Elísabet G. Björnsdóttir appointed CRO

Following a strategic review at Kvika banki hf. ("Kvika" or "the bank"), the board of directors of Kvika has decided to initiate a process for the sale or listing of its insurance subsidiary TM tryggingar hf. ("TM").


The decision is in line with the bank's vision, where emphasis is placed on simplifying the group's operations and strengthening Kvika's traditional banking activities, in accordance with the bank's goal to increase competition and simplify its customers' finances.

Following the divestment of TM, Kvika's main operations will be focused on commercial- and investment banking, along with asset management.

It is expected that Kvika's capital base will grow significantly following the divestment of TM, enabling the bank to pursue internal growth opportunities across Kvika's business segments. Increased capital will, among other things, enable the bank to strengthen its market position, in both retail and corporate lending, and increase the risk diversification of its loan book.

Furthermore, it is expected that a considerable part of the sales proceeds will be paid to shareholders in the form of dividends and/or buyback of own shares.

In the coming weeks, the bank will appoint advisors and decide on the next steps. It is expected that the proposed sale or listing will be completed in the second half of next year.

A more detailed presentation of the bank's plans following the proposed divestment is expected to follow the bank's third quarter results, which are scheduled to be published on 2 November.

"The sale or listing of TM will be an important stepping stone for Kvika and will create an opportunity for the bank to increase its market share in all business segments. The bank's operations and structure will be simplified, income generation more stable, profitability improved and growth opportunities greater.

Since the merger of Kvika, TM hf. and Lykill Fjármögnun hf. in 2021, the merged company has been successful in reducing operating- and funding costs, which has created significant shareholder value. A large part of the synergies achieved centered around the merger of the lending operations of Lykill with Kvika, while there have been limited revenue synergies between the group's insurance and banking operations. Therefore, it is the opinion of Kvika's management that it is in the interest of both Kvika and TM to separate TM from the group and significantly strengthen our banking operations.

At the same time, we are convinced that TM, an exceptionally well-run and valuable insurance company with fantastic people, will be able to grow and prosper even further under new ownership. It has been great to work with the strong team at TM who will surely be missed by their colleagues. However, we will continue to work together in the coming months."

Following a strategic review at Kvika banki the board of directors of Kvika has decided to initiate a process for the sale or listing of its insurance subsidiary TM tryggingar.

News

27. August 2024

Gudmundur Thordarson appointed manager of business development

19. March 2024

Hugrún Sif Harðardóttir has been appointed internal auditor of Kvika banki

06. March 2024

Kvika updates its Green Funding Framework

01. March 2024

Kvika’s Sustainability Report

26. February 2024

Halldór Þór Snæland Managing Director of Kvika’s Commercial Banking division

15. February 2024

Kvika banki’s Consolidated Financial Statements 2023 and Q4 results

18. January 2024

Hafsteinn Hauksson Chief Economist of Kvika.