20. October 2016

Kvika records 9m profit of ISK 1,032m

According to the unaudited interim financial statements of the parent company, presented at a Board meeting today, Kvika banki hf. recorded an after-tax profit of ISK 1,032 million for the first nine months of 2016.

The six-month results were in line with projections, at ISK 373 million. Third-quarter profits were well in excess of projections, however, totalling ISK 659 million. The outlook for the year as a whole is therefore considerably more positive than previous estimates had assumed.

The favourable deviation in the Bank's 9m earnings is due principally to a strong performance by the Corporate Finance department, as well as to increased foreign exchange brokerage activity and a rise in investment income. 

At the end of September, Kvika's capital totalled just under ISK 6.2 billion. The consolidated capital ratio was 20.5% in Q3, up from 18.0% at the end of June. 

Kvika has a subordinated bond, KVB 15 01, listed on the Nasdaq Iceland exchange. The bond bears a ten-year maturity and is classified as Tier 2 capital. Kvika also has bills listed on the exchange in two series: KVB 16 1221 and KVB 17 0323. 

It should be noted that assumptions and conditions may change and that the Bank's operating performance could therefore deviate from the current outlook.