05. December 2022
This morning the board of directors of Kvika banki approved the CEO’s proposal to change the bank’s organizational chart. The objective of the changes is to better prepare the company for continued operational success and to adjust its structure to a growing company which continues to lead increased competition and innovation in the financial market. The changes are also in line with the goals and emphasis set forth in strategic planning introduced in November 2021.
Kvika banki is growing rapidly and now operates under several brands. The main brands, apart from Kvika, are TM, Kvika asset management, Lykill, Auður, Netgíró, Aur and Ortus Secured Finance. Additionally, preparations for the operations of a new subsidiary in the field of payment facilitation are under way.
Since the merger of Kvika banki, TM and Lykill the group’s management team and employees have worked hard on achieving the financial goals set out during the merger. In the opinion of the management team the financial goals of the merger have been reached in a shorter period of time than anticipated.
Sigurður Viðarsson, CEO of TM, will take on the role of deputy CEO of Kvika banki from Ármann Þorvaldsson, which will focus on further development of Kvika’s operations in the UK. Ármann will continue his role as a board member in the bank’s subsidiaries in the UK and also take on specific assignments for Kvika. Gunnar Sigurðsson, CEO of Kvika Securities, will take a seat as a new member in the Kvika group management board.
Eiríkur Magnús Jensson has been appointed as CFO of Kvika banki. Eiríkur has worked for Arion banki and its predecessors since 1998, mainly in connection with the bank’s funding. In recent years Eiríkur has been head of treasury of Arion banki.
Part of the Commercial Banking division, along with the Investment Banking division, will form a new revenue division, Corporate Banking and Capital Markets. The new revenue division will emphasize Kvika’s unique position when it comes to servicing corporations and investors, and make it easier for the company to use its increased financial strength to better serve its customers. It is estimated that the new division will operate from 1 January 2023.
Following this change Kvika banki will operate two revenue divisions, on one hand Commercial Banking and on the other Corporate Banking and Capital Markets. Additionally, three revenue divisions are operated through Kvika’s subsidiaries: TM, Kvika asset management and Kvika Securities in the UK.
The managing director of Corporate Banking and Capital Markets will be Bjarni Eyvinds Þrastarson, the current managing director of Investment Banking. The division will operate four departments: securities- and FX brokerage, corporate finance, and corporate loans. Magnús Guðmundsson, current deputy managing director of Commercial Banking, will be deputy managing director of the new division and head of corporate loans. Vilhjálmur Vilhjálmsson will continue as head of FX brokerage. Erlendur Davíðsson has been appointed as new head of corporate finance. Erlendur has substantial experience in financial markets reaching back to 2005. In the past years he has worked independently as a corporate finance advisor and before that among other things as fund manager and head of equity funds with Kvika asset management as well as a corporate finance advisor at Arion banki.
Ragnar Páll Dyer has requested to resign as Kvika banki’s CFO. Ragnar will continue to hold his position as board member of the boards of both TM and Kvika Securities in London.
Baldur Stefánsson, managing director of corporate finance at Kvika banki, will resign his position in the coming weeks and intends to start his own business. A letter of intent has been signed to the effect that Kvika will be involved in the operation.
Marinó Örn Tryggvason:
“Kvika has changed significantly in recent years. When I started working for the company employees were fewer than 90. They are now 350. Additionally, dozens of contractors work for the bank on developing innovations that will be introduced in the coming months. One of Kvika’s goals is to increase competition in financial markets and therefore we are constantly developing new products to increase variety and customer choices in the market.
The merger of Kvika and TM has exceeded expectations and financial goals were reached earlier than expected. It is natural that the groups growth and the experience from the merger calls for changes of the organizational structure that was decided leading up to the merger. I am very happy with the changes in place and believe that they will prepare us even better for continuing success.
I believe that by changing and sharpening the distribution of operations across revenue divisions we will achieve better results. A new Corporate Banking and Capital Markets division will be able to use the bank’s financial strength to better serve corporations and market participants than before. The Commercial Banking division will continue to focus on fintech solutions and continue development of various innovations that will increase competition in banking and payment services considerably.
Kvika is very fortunate to be joined by Eiríkur Magnús, one of the country’s strongest and most experienced specialist when it comes funding of banks. There are significant opportunities to improve the company’s terms of funding which further strengthens Kvika’s position in competition with other financial institutions. I also expect much of Erlendur, he is an experienced specialist and takes over a well established corporate finance department.
I would like to thank Ármann for his work for the company. Ármann and I both started working for Kvika in 2017, Ármann as CEO and I as deputy CEO. Two years later we changed chairs. It has been a great privilege to work with Ármann and I believe that the company would not be where it is today without him. Ármann’s experience is valuable and he has taught me a great deal. I am very happy that Ármann will still play an important role for the group and look forward to continue working with him in a new capacity.
Ragnar has worked for Kvika for a long time and taken an active role in the development of the company, first as CEO of Júpíter (now Kvika asset management) and following that as CFO. He has been CFO since I took on the role of CEO and has from that time been my closest colleague. Ragnar is a strong employee, manager and a friend. I am thankful for Ragnar’s great work and happy that he will continue to hold position as board member within the group.
Baldur is one of the first employees that I took part in hiring to the company. Baldur has been successful in building up the bank’s corporate finance department and during his time it has been a part of and closed multiple projects. For me one project during our time together stands out, when Baldur and I worked together advising the management of Icelandair on the refinancing of the company after the Covid-19 pandemic hit.
Sigurður and I have enjoyed a particularly good partnership since the merger of Kvika and TM and I look forward to working with him even more closely. He is an experienced manager and has reached great success in his work. I know that his experience and skills will be important for further development of the company.”
Sigurður Viðarsson:
“After 15 successful and happy years with TM I look forward to new challenges at Kvika banki. Following the merger of TM and Kvika an increasing part of my work has been committed to matters of the group and therefore this is a logical step for both me and the company. I say goodbye to my great colleagues of many years at TM, but luckily, I won’t be going far.”