REG-Kvika banki hf.: Financial Results for Q3 2026
Key Highlights
- ➤9M post-tax profit ISK 3,619 million, up 16.9% year-on-year
- ➤Q3 post-tax profit ISK 1,342 million, down 8.8% year-on-year
- ➤Q3 RoTE reached 18.9%, highest since Q3 2024
- ➤Customer deposits grew 16.0% to ISK 200 billion
- ➤Customer loans grew 13.2% to ISK 235 billion
Expert Statements
Ármann Þorvaldsson, CEO of Kvika banki hf.
“I am happy to see that the bank has reached the point where its operations are delivering returns in line with our targets.”
Ármann Þorvaldsson, CEO of Kvika banki hf.
“Return on tangible equity in the third quarter, 18.9%, was the highest since the third quarter of 2024 and follows substantial distributions to shareholders in the form of dividends and share buybacks.”
Ármann Þorvaldsson, CEO of Kvika banki hf.
“At the same time, we have seen strong growth in both lending and deposits, while costs have remained virtually unchanged year-on-year.”
Ármann Þorvaldsson, CEO of Kvika banki hf.
“These results have been achieved despite a challenging external environment, persistent inflation, high interest rates and a significant decline in stock market turnover, which has had a considerable negative impact on the Bank’s fee income.”
Ármann Þorvaldsson, CEO of Kvika banki hf.
“Substantial steps have recently been taken in the bank’s funding.”
Ármann Þorvaldsson, CEO of Kvika banki hf.
“Following a successful EUR issuance in the summer, unfavourable borrowings in the UK have been repaid, and this month an expensive bond series issued in the Nordics will be redeemed.”
Ármann Þorvaldsson, CEO of Kvika banki hf.
“Kvika also completed its inaugural covered bond issuance, which was very well received and now enables Auður to offer non-indexed fixed-rate mortgages for the first time.”
Ármann Þorvaldsson, CEO of Kvika banki hf.
“We expect net interest income to continue to grow steadily, supported by improved funding terms and the continued expansion of our loan books in Iceland and the UK.”
Ármann Þorvaldsson, CEO of Kvika banki hf.
“We do not anticipate a corresponding increase in costs, which should support continued improvement in the bank’s profitability in the coming quarters.”
Ármann Þorvaldsson, CEO of Kvika banki hf.
“However, a bill to increase the bank tax is currently before parliament, which would further add to the special levies already imposed on financial undertakings.”
Ármann Þorvaldsson, CEO of Kvika banki hf.
“We find it hard to believe that an increase in the tax, which when introduced was never intended to apply to any institutions other than systemically important banks and has been justified on the basis of the large banks’ temporary profits from high inflation, would be applied in the same way to a small bank that has not benefited at all from high inflation.”
Ármann Þorvaldsson, CEO of Kvika banki hf.
“Kvika offers consumers savings deposits and mortgages through the Auður brand at minimal interest margins and therefore has limited room to absorb higher taxation without it affecting the terms offered to customers.”
Ármann Þorvaldsson, CEO of Kvika banki hf.
“Such taxation would also weaken the competitive pressure that Kvika exerts on the large banks and could therefore have a far broader negative impact on consumers than on Kvika’s customers alone.”
Ármann Þorvaldsson, CEO of Kvika banki hf.
“During the quarter, the appointment of Jón Birgir Jónsson as the Bank’s new CEO was announced and he will take up the role in early December.”
Ármann Þorvaldsson, CEO of Kvika banki hf.
“I wish Jón every success in his new role, as I say goodbye with great fondness to a workplace that I will miss greatly.”
Return on tangible equity of 18.9% in the quarter, the Bank’s highest return in two years
At a board meeting on 4 November 2026, the Board of Directors and the CEO approved the condensed interim consolidated financial statements of Kvika banki hf. (“Kvika” or “the bank”) for the third quarter and first nine months of 2026.
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