Kvika banki hf.: Negative earnings announcement

Preliminary results for the Kvika banki hf. group for the second quarter of 2022 are now available and indicate that net profit before tax for the quarter will amount to ISK 450-500 million.

The earnings forecast was last updated on 12 May 2022 and amounted to ISK 2.15 – 2.4 billion in profit before tax for the quarter. Profit before taxes was therefore about ISK 1.7 – 1.9 billion lower than expected.

The reason for the deviation is caused by lower net financial income than expected due to very difficult market conditions in the quarter. Net financial income was negative of ISK 0.9 billion but was expected positive ISK 1 billion for the period. Net financial income was therefore ISK 1.9 billion lower than expected.

The group’s core operations were strong in the period. Net interest income was ISK 1.9 billion, net fee and commission income ISK 1.6 billion, net premiums and claims ISK 1 billion and operating expenses amounted to ISK 3.2 billion, which was in line with expectations.

The financial statements are still being finalized and are subject to change until they are published. Kvika will publish the results on 18 August 2022, after markets have closed. At the same time Kvika will publish updated earnings forecast for the next four quarters.

For further information please contact Ragnar Páll Dyer, CFO, tel. 540 3200 or via e-mail: . 

Please note that this notice is a disclosure per article 17 of MAR.