Servizi
Kvika banki hf.: Financial Results for Q3 2025
At a board meeting on 5 November 2025, the Board of Directors and the CEO approved the interim consolidated financial statements of the Kvika banki hf. (“Kvika” or “the bank”) for the third quarter and first nine months of 2025.
“Kvika’s performance in the third quarter reflects the continued strength of the bank’s core operations. Operating profit remained stable between quarters, supported by loan book growth, a strong interest margin, and diversified income streams. The bank’s liquidity position also remains very strong and the capital ratio high, establishing further room for growth.
Loan book growth, underpinned by a strong net interest margin, has been a key driver of results this year. We are now well on track to meet our full-year lending targets and have successfully developed the bank’s loan portfolio in line with our strategy, focusing on a well-diversified and secured lending base.
Challenging conditions in Iceland’s securities markets have negatively affected the bank’s fee income generation, particularly in Asset Management and Capital Markets, while Corporate Finance has performed well. Kvika’s operations in the UK continue to deliver strong results in both lending and investment activities and had a record profit in the third quarter of ISK 563 million.
Inflation and a high-interest rate environment have proven more persistent than anticipated, though there are clear signs that domestic economic activity is slowing. Despite this, households and businesses generally remain in a strong position to withstand temporary headwinds, with moderate debt levels, some savings, and continued low default rates.
Although recent events, such as the suspension of operations at the aluminium smelter in Grundartangi and uncertainty following the Supreme Court’s ruling on variable-rate loans, are expected to affect short-term economic activity, we do not believe this will have a material impact on Kvika’s operations. Our liquidity and capital positions remain exceptionally strong, lending growth is on target, and our net interest margin has remained stable. Furthermore, we benefit from a degree of built-in risk diversification, as part of our loan portfolio is not directly linked to Icelandic market conditions.
The merger process with Arion Bank is progressing well, with due diligence work nearing completion and preliminary discussions with the Icelandic Competition Authority now formally underway. We expect the process to take some time, but while it continues, we remain focused on our day-to-day operations and on creating long-term value for our shareholders and customers.”
A presentation for shareholders and market participants will be held on Thursday, 6 November, at 08:30 at 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 at:
https://kvika.is/kynning-a-uppgjori-9m-2025/
Questions can be sent before or during the meeting via ir@kvika.is or through the Slido app .
Additionally, a recording with English subtitles will be made available on Kvika’s website.
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