15. March 2017

Kvika 2017 Annual General Meeting

Kvika banki hf. 2017 Annual General Meeting (AGM) was held on Wednesday 15 March at Kvika's headquarters in Reykjavík.

New Board of Directors was elected, five directors: Þorsteinn Pálsson, Jónas Hagan Guðmundsson, Inga Björg Hjaltadóttir, Hrönn Sveinsdóttir and Guðmundur Þórðarson, and two alternates: Kristín Guðmundsdóttir and Pétur Guðmundarson.

Kvika 2016 Annual Report was presented and approved. Kvika's profit in 2016 amounted to ISK 1,928 million and return on equity was 34.7%. Net operating income was ISK 5,318 million during the period, of which income in the second half was ISK 3,154 million. 

At the end of 2016, Kvika's total assets amounted to ISK 59,563 million compared to ISK 61,614 million at the end of 2015, a decrease of 3% during the period. Loans to customers increased during the year and amounted to ISK 26 billion at the end of 2016. Deposits from customers amounted to ISK 32,479 million at the end of 2016 compared to ISK 30,544 million in 2015.

The bank's liquidity is strong and its liquidity coverage ratio (LCR) was 152% at the end of the year, well above requirements of a 90% minimum. Cash at year-end amounted to ISK 12,033 million and other liquid assets amounted to ISK 17,245 million. The ratio between liquid assets and cash of the bank's total debt at the end of year was 56%.

The bank was active in the capital market during the year, substantially improving its terms in regular bills auctions, through which the bank issued bills in the nominal amount of ISK 8,000 million. At the end of 2016, the bank's issued bills and subordinated bonds amounted to ISK 4,494 million.

The bank's equity at year-end was ISK 7,348 million, up from ISK 6,293 million at the end of 2015, despite a reduction in share capital amounting to ISK 1,000 million in the first half of 2016. The equity ratio at the end of December was 20.6% versus 23.5% at the end of 2015. The bank's capital position is strong and the equity ratio is well above regulatory requirements.