30. September 2019

Announcement regarding GAMMA Capital Management

Kvika banki hf. (“Kvika” or “the Bank”) acquired GAMMA Capital Management hf. (“GAMMA“ or “the Company”) in March of this year and the Company has been a subsidiary of the Bank since that time. Over the past months, work has been conducted on restructuring the asset management activities of Kvika and, on 2 September, the Bank announced that the asset and fund management activities of the Group were to be merged into a single subsidiary. The next step in the restructuring process is to transfer Kvika’s asset management activities to Jupiter Capital Management hf. (“Jupiter“), a subsidiary of the bank. Following this, the aim is to merge the activities of GAMMA and Jupiter.

It has transpired that the position of two alternative investment funds managed by GAMMA, GAMMA: Novus and GAMMA: Anglia, is considerably worse than had previously been estimated. The rate of the funds has been lowered to reflect this.

The lowering of the rate does not affect Kvika’s earnings forecast for 2019. The forecast was upwardly revised for the second time this year with the publication of the interim results on 29 August. Earnings for 2019 are estimated at ISK 2,900 m. before tax.

Valdimar Ármann has stepped down as CEO of GAMMA and the Company’s board of directors has appointed Máni Atlason as managing director. Máni holds a BA and MA in Law from the University of Reykjavík and has worked in Kvika’s legal division since 2015, in addition to being the lawyer and secretary of the board of directors of Jupiter. Before 2015 Máni worked for LOGOS Legal Services in Reykjavík and London. Máni has been admitted to the Icelandic Bar Association and is a certified securities broker.