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Commercial bank

Organization chart

Commercial Banking

Skipurit

Kynning á uppgjöri

Standard Settlement Instructions

Sustainability

Starfsreglur og stjórnarhættir

Sjálfbærni

Vextir og verðskrá

Upplýsingagjöf tengd sjálfbærni á sviði fjármálaþjónustu (SFDR)

Viðskiptabanki

Fjárfestingarbanki

Tilnefningarnefnd

Ávöxtunarleiðir séreignarsparnaðar

Störf í boði hjá Kviku banka

Fjölmiðlar

General Terms and Policies

Fjárfestadagur Kviku

Aur - Netöryggi

Netgíró - Netöryggi

Kvika - Netöryggi

Stjórn og stjórnarhættir

Jólagjöf Kviku 2024

Séreignasparnaður

Undirnefndir stjórnar og endurskoðun

Reglur og skilmálar

Kvika verðbréf

Investment Banking & Capital Markets

Um Kviku

Ársreikningar dótturfélaga Kviku

About Kvika

Dótturfélög

Áreiðanleikakönnun lögaðila

Media

Skiptiþjónusta

FrumkvöðlaAuður

Test

Jafnréttisstefna

Kynning á uppgjöri 2023

Skilmálar og persónuverndarstefna

Áreiðanleikakönnun einstaklinga

Reports

Meðferð kvartana

Sjálfbærnióskir

Kreditkort Kviku

Remote work policy

Kynning á uppgjöri 2022

Skýrslur og úttektir

Apple Pay

Google Pay

Söguleg gögn TM og Lykils

Mannauður

Skilmálar Kvika Verðbréf

Kvika's Cookie Policy Terms and Conditions

Upplýsingar vegna FATCA

Upplýsingaöryggisstefna

Skilmálar Kviku um notkun á vefkökum

Mannauðsstefna

Slice Showcase

Fjarvinnustefna

Skilmálar: Kvika verðbréf

Áreiðanleikakönnun söluaðila Netgíró og Aur

Stefna Kviku

Könnun

Gjaldeyrir

Tilhlýðileikamat

Corporate Governance

PSD2 and test environment

PSD2 og prófunarumhverfi

Fyrirtækjaráðgjöf

Fyrirvari um tölvupost

Bankasvið

Markaðir

Sterk auðkenning

Tölvupóstur

Shareholder meetings

Community

Fjárfestingar og viðskiptahættir

Kvika's Strategy

Human Resources

Investments and business practices

Subsidiaries

Samfélagið

Kvika Bank’s Green Financing Framework

Environment

LEI auðkenni

Highlights of performance in the first quarter (Q1 2025)

Post-tax profit of the group amounted to ISK 2,086 million in Q1 2025, compared to ISK 1,083 million in Q1 2024, an increase of ISK 1,003 million or 92.6% from previous year.

Pre-tax profit from continuing operations, adjusted for non-recurring items, amounted to ISK 1,590 million in Q1 2025, compared to ISK 1,215 million in Q1 2024, and increases by ISK 375 million or 31% from previous year. Unadjusted pre-tax profit for the quarter was ISK 701 million.

Net interest income amounted to ISK 2,917 million in Q1 2025, compared to ISK 2,326 million in Q1 2024, an increase of ISK 590 million or 25.4% from previous year.

Net interest margin was 4.4% in Q1 2025, compared to 3.8% in Q1 2024. Year-on-year increase is largely due to strong liquidity, improved funding terms, and a growing loan book.

Net fee and commission income was ISK 1,520 million in Q1 2025, compared to ISK 1,633 million in Q1 2024, a decrease of ISK 113 million or 6.9% from previous year.

Other net operating income amounted to ISK 12 million in Q1 2025, compared to ISK 110 million in Q1 2024, a decrease of ISK 98 million or 89.1% from previous year.

Administrative expenses amounted to ISK 3,090 million in Q1 2025, compared to ISK 2,666 million in Q1 2024, an increase of ISK 424 million or 15.9% from previous year. Adjusted for one-off items, operating expenses were ISK 2,865 million in Q1 2025.

Pre-tax return on tangible equity (RoTE), adjusted for one-off items, was 17.7%. Unadjusted pre-tax RoTE per the income statement was 7.8%.

Earnings per share were ISK 0.45 in Q1 2025, compared to ISK 0.23 in Q1 2024.

Post-tax profit from assets held for sale consists of profit from the sale of TM tryggingar hf. and related income and expenses.

Key balance sheet figures as at 31.3.2025:

Deposits from customers amount to ISK 168 billion, compared to ISK 163 billion at year-end 2024, an increase of 2.8% during the quarter.

Loans to customers amount to ISK 161 billion, compared to ISK 150 billion at year-end 2024, an increase of 6.9% during the quarter.

Total assets amount to ISK 343 billion, compared to ISK 355 billion at year-end 2024, a decrease of 3.4% during the quarter.

Total equity of the group was ISK 68 billion, compared to ISK 90 billion at year-end 2024, materially reduced following the sale of TM. On the reporting date, shareholder approval for a special dividend, not yet paid out, had been granted. The dividend is recorded as unpaid dividend under other liabilities.

The capital adequacy ratio (CAR) was 23.9%, compared to 22.8% at year-end 2024, as determined on the basis of the unaudited net earnings in the quarter. Kvika's capital ratio as calculated under the Financial Undertakings Act No. 161/2002 was 23.0% at the end of March 2025.

Total liquidity coverage ratio (LCR) of the group was 279%, compared to 360% at year-end 2024.

Total assets under management were ISK 441 billion, compared to ISK 456 billion at year-end 2024.

“The bank delivered strong performance in the first quarter, when adjusted for non-recurring items. Net interest income increased by 25%, while overall cost growth was more moderate, with wage expenses increasing by just under 5%. However, other expenses rose year-on-year, partly driven by non-recurring costs related to the sale of TM.

The sale of the insurance company TM to Landsbankinn was successfully completed during the quarter. A large part of the sale proceeds, totaling over ISK 32 billion, was returned to shareholders through dividends and share buybacks. A considerable portion, however, remains as equity in the bank, providing a solid foundation for growth in the coming years.

The acquisition of the remaining management stake in Ortus Secured Finance was also finalized, making the bank the sole owner of the company. This acquisition allows for further integration of the UK operations, cost reductions, refinancing of inefficient debt, and lays the groundwork for continued growth in the UK.

Non-recurring items related to these transactions had a significant impact on the bank’s operating results in the quarter. Excluding these, the profit from the bank’s core operations before tax was very good.

Net interest income increased substantially year-on-year, rising by over 25%. This growth was driven by an expanding loan portfolio, reduced funding costs, and a temporarily elevated liquidity position following the sale of TM, which was reduced after the dividend payout in April. The portion of the sale proceeds retained by the bank will continue to generate returns, and interest income is expected to remain strong going forward.

Fee and investment income reflected challenging conditions in the securities markets, leading to a slight year-on-year contraction. Concurrently, efforts to contain cost increases, excluding non-recurring items, have been successful, and the number of employees remain unchanged from the previous quarter.

Kvika is now in an enviable position to advance and expand in line with its business plan. Following the sale of TM, the bank enjoys a very strong capital and liquidity position, and steady interest income has replaced the more volatile insurance-related income. The bank’s infrastructure, which has been adapted to TM’s departure from the group, is both robust and scalable, providing a solid foundation for continued growth in Iceland and the UK.”

At a board meeting on 7 May 2025, the Board of Directors and the CEO approved the condensed interim consolidated financial statements of Kvika bank for the first quarter of 2025.

Financial Results for Q1 2025

The Competition Authority has announced that a settlement has been reached with Landsbankinn regarding the acquisition of 100% of TM tryggingar’s share capital from Kvika bank.

As a result, the conditions in the purchase agreement related to the approval of the Financial Supervisory Authority of the Central Bank of Iceland and the Competition Authority have been lifted.

The transfer of the insurance company to Landsbankinn is scheduled for February 28, at which time Landsbankinn will pay Kvika bank the agreed purchase price. 

As stated in Kvika bank’s announcement on May 30, 2024, the agreed purchase price is ISK 28.6 billion, based on TM’s balance sheet at the beginning of 2024.

The final purchase price will be adjusted to reflect changes in TM’s tangible equity from the beginning of 2024 until the closing date. 

Following the receipt of the purchase price, Kvika bank’s board intends to propose a special dividend to its shareholders at the Annual General Meeting on March 26.

This proposal will be published alongside other board proposals for the AGM no later than March 5. 

Landsbankinn's acquisition of TM approved

Gudmundur Thordarson has been appointed to the new position Managing Director 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 Gudmundur 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 Gudmundur 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

Gudmundur Thordarson appointed Managing Director 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.

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.

08. May 2025

Financial Results for Q1 2025

21. February 2025

Landsbankinn's acquisition of TM approved