GlobeNewswire by notified

Kvika banki hf.: Financial Results for the First Nine Months of 2023


At a board meeting on 2 November 2023, the Board of Directors and the CEO approved the interim financial statements of Kvika banki hf. (“Kvika”) group for the period 1 January to 30 September 2023.

Highlights of the 9M 2023 Interim Financial Statements

  • Pre-tax profit amounted to ISK 3,742 million
  • Pre-tax return on tangible equity was 11.5%
  • Earnings per share for the period amounted to ISK 0.5
  • Total assets amounted to ISK 328 billion
  • The group’s equity amounted to ISK 80 billion
  • The solvency ratio of the financial conglomerate was 1.24 and its capital adequacy ratio (CAR) for operations excluding insurance was 22.7%
  • Total liquidity coverage ratio (LCR) was 301%
  • Assets under management were ISK 449 billion
  • Combined ratio of 94.0%

A presentation for shareholders and market participants will be held at 16:15 on Thursday, 2 November 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:

Attached is the investor presentation. Additionally, a recording with English subtitles will be made available on Kvika’s website.

Results Continue to Reflect Challenging Financial Markets

Kvika’s pre-tax profit for the first nine months of 2023 amounted to ISK 3,742 million and return on tangible equity before taxes (RoTE) was 11.5% in the period. In Q3 profit before tax amounted to ISK 1,058 million which is in line with the bank´s outlook for pre-tax profit excluding net financial income published in August.

Net interest income amounted to ISK 6,469 million, increasing by 12% compared to the same period the year before. Interest income from lending has increased significantly from the same period in 2022, mainly due to a healthy loan book growth, countered by lower interest margins on treasury assets due to rapid interest rate hikes.

Net financial income and net fee and commission income were significantly affected by market conditions, with net financial income amounting to ISK 170 million, and net fee and commission income amounting to ISK 4,423 million.

Operating expenses, adjusted for administrative expenses related to insurance, amount to ISK 11,271 million in the first nine months of 2023.

Robust insurance operation, solid combined ratio in Q3

TM insurance continues its strong performance, with a combined ratio of 87.5% in Q3 and 94.0% for the first nine months of 2023, compared to 95.8% in the same period in 2022. Additionally, premiums are up 12.9% YoY while claims grew at a slower pace or by 10.2%.

Strong Balance Sheet and Liquidity Position

Total assets remain stable and amounted to ISK 328 billion at the end of September. Loans to customers grew by nearly ISK 17 billion in the period and amounted to ISK 124 billion at the end of September. Balances with banks and the Central Bank of Iceland, together with government-guaranteed securities, amounted to ISK 104 billion and total liquid assets were ISK 141 billion. The group’s total liquidity coverage ratio (LCR), excluding insurance operations, amounted to 301% at the end of September, well above the 100% minimum requirement.

The group’s total equity amounted to ISK 80 billion at the end of the period. The solvency ratio of the financial conglomerate was 1.24 at the end of the first half and the group's risk-weighted capital adequacy ratio (CAR), excluding the effect of TM, amounted to 22.7%. Kvika’s capital requirement, including capital buffers, is 18.7%.

Share Buy-back Programme Completed

During the period 26 June to 27 September Kvika bought 58,952,375 own shares, which corresponds to 1.233% of issued shares in the company, for ISK 999,999,999. The purchase of own shares according to the buy-back programme, which was approved by Kvika’s board on 23 June 2023, amounted to a maximum purchase price of 1,000,000,000 ISK and is therefore completed.

Kvika will consider further share buy backs in line with the bank’s dividend policy which states that Kvika will return a minimum of 25% of after-tax profit to shareholders, either as a dividend or by repurchasing own shares  

Outlook unchanged

The financial result excluding net financial income for Q3 2023 is in line with the outlook published in August 2023 upon publication Kvika’s H1 2023 financial results.

The outlook for Kvika’s profit before tax excluding net financial income remains unchanged and is expected to be ISK 6.6 billion for the 12 months period ending 30 June 2024. Kvika will publish financial targets in conjunction with the publication of Kvika’s fourth quarter results in February 2024.

Ármann Þorvaldsson, CEO of Kvika:

“The underlying performance of the group has been solid this year, but we have faced headwinds due to rising interest rates and challenging conditions in the financial markets. This is reflected in lower fee income in Asset Management and Capital Markets, and the marginal net financial income of the group. It is very positive, however, to see the strong performance in our insurance and lending operations. Insurance services achieved an outstanding combined ratio in Q3, and loan book growth is healthy across all segments.

We are also seeing positive trends in most business units. In Commercial Banking all our retail brands, Lykill, Auður, Netgíró and Aur continue to demonstrate robust growth. Straumur has completed onboarding of nearly all merchants received from Rapyd and is fully operational with about 25% of the domestic payments market share. Kvika had the largest market share in bond trading on Nasdaq Iceland this year to date and saw a significant increase in market share in equity trading. In the UK there is a gradual improvement in performance with healthy loan book growth and improvements in net interest margin.

We have begun to take measures to increase efficiency and improve operations at the bank. Key efforts include an annualised cost reduction of ISK 900 million and the strategic decision to initiate a divestment of subsidiary TM Insurance. The divestment will enable Kvika to sharpen management focus on core banking operations, grow and diversify the bank´s loan book, enhance profitability, and return substantial capital to shareholders.”


To view this piece of content from, please give your consent at the top of this page.
To view this piece of content from, please give your consent at the top of this page.

About GlobeNewswire by notified

GlobeNewswire by notified
GlobeNewswire by notified
One Liberty Plaza - 165 Broadway
NY 10006 New York

GlobeNewswire by notified is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire by notified

Subscribe to all the latest releases from GlobeNewswire by notified by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire by notified

Buy-backs of shares in CoinShares International Limited29.11.2023 09:00:00 CET | Press release

29 November 2023 | SAINT HELIER, Jersey - As announced on 07 November 2023, the Board of Directors of CoinShares International Limited ("CoinShares" or the "Company") (Nasdaq Stockholm Market: CS; US OTCQX: CNSRF), Europe's leading alternative asset manager specialising in digital assets, resolved to extend a share buy-back program and repurchase shares on Nasdaq Stockholm Market during the period 07 November 2023, up to and including 30 May 2024 for total maximum amount of SEK 30 million in accordance with the authorisation from the Annual General Meeting on 31 May 2023. The Board of Directors’ resolution to implement the share buy-back program was made after the Board's review of the Company's capital structure and was implemented for the purposes of reducing the capital of the Company. The share buy-back program is carried out in accordance with the Market Abuse Regulation (EU) No 596/2014 ("MAR") and the Commission Delegated Regulation (EU) No 2016/1052 (the "Safe Harbour Regulatio

Deutsche Digital Assets Wins Pension Fund as Anchor Investor for DDA Crypto Select 10 ETP (SLCT)29.11.2023 09:00:00 CET | Press release

Institutional anchor investor for DDA Crypto Select 10 ETP (ISIN: DE000A3G3ZD0; WKN: A3G3ZD, Ticker: SLCT) The DDA Crypto Select 10 ETP reflects the MarketVector™ Digital Assets Max 10 VWAP Close Index (“MVDAMV”)With the ETP, investors are in a position to affordably gain exposure to a basket collection of (up to) the 10 most important crypto assetsThe ETP is 100% collateralized by coins held in an institutional custody solution FRANKFURT, Germany, Nov. 29, 2023 (GLOBE NEWSWIRE) -- Deutsche Digital Assets GmbH has gained a renowned institutional anchor investor for the DDA Crypto Select 10 ETP (ISIN: DE000A3G3ZD0 | WKN: A3G3ZD), which was launched in June 2023. DDA prevailed against the competition in a selection process and was commissioned to design a crypto ETP that meets high quality standards and strict requirements of an institutional investor. After several months of preparation, this investment product can now be administered by a leading capital management company acting on be

Yara helps farmers combat the effects of climate change and improve nutrient use efficiency29.11.2023 08:40:00 CET | Press release

Global rise in temperatures has introduced a challenging reality for farmers worldwide. To meet the increasing demand for solutions to protect crops against climate change and optimize nutrient use efficiency, Yara is launching YaraAmplix™. A new brand that will expand the range of biostimulants. November 29th 2023 Milan: Climate change is putting many of the world’s most popular foods such as maize, tomato and wheat at risk of reduced crops. With the average global temperature on earth having already increased by over 1 degree Celsius in the last 100 years*1, agriculture is now experiencing more extreme weather than ever before with temperature increases being most severe on land. In response to farmers asking for solutions to increase crop resilience and nutrient use efficiency, Yara today announces the launch of YaraAmplix, a new brand of biostimulants, at the Biostimulant World Congress in Milan, Italy. “Extreme weather is destroying crops all over the world with drought, flooding

Sanoma Corporation - Managers' Transactions29.11.2023 08:30:00 CET | Press release

Sanoma Corporation, Managers’ Transactions, 29 November 2023 at 9:30 EET Sanoma Corporation - Managers' Transactions ___________________________________________ Person subject to the notification requirement Name: Holding Manutas Oy Position: Closely associated person (X) Legal person (1):Person Discharging Managerial Responsibilities In Issuer Name: Herlin Anna Position: Member of the Board Issuer: Sanoma Oyj LEI: 743700XJC24THUPK0S03 Notification type: INITIAL NOTIFICATION Reference number: 44711/8/10 ____________________________________________ Transaction date: 2023-11-28 Venue: AQEU Instrument type: SHARE ISIN: FI0009007694 Nature of transaction: ACQUISITION Transaction details (1): Volume: 250 Unit price: 6.87 EUR (2): Volume: 32 Unit price: 6.9 EUR Aggregated transactions (2): Volume: 282 Volume weighted average price: 6.8734 EUR ____________________________________________ Transaction date: 2023-11-28 Venue: BEUP Instrument type: SHARE ISIN: FI0009007694 Nature of transaction:

Delårsrapport for 1. januar - 30. september 2023 for FirstFarms A/S29.11.2023 08:05:40 CET | pressemeddelelse

FirstFarms leverer tilfredstillende i udfordrende marked FirstFarms skaber fornuftige resultater på trods af høj inflation på omkostninger og stort pres på salgspriser. Omsætningsfremgang på 19% og fastholdelse af udmeldte forventninger til året. Bestyrelsen og direktionen i FirstFarms A/S har d.d. behandlet og godkendt det ureviderede delårsregnskab for perioden 1. januar - 30. september 2023. FirstFarms har i regnskabsperioden realiseret: Omsætning: 345 mDKK (2022: 291 mDKK)EBITDA: 79 mDKK (2022: 121 mDKK)EBIT: 42 mDKK (2022: 89 mDKK)Resultat før skat: 28 mDKK (2022: 77 mDKK) Produktion og resultatskabelse er tilfredsstillende med baggrund i de udfordrende forudsætninger FirstFarms har opereret under i årets første tre kvartaler. Resultatet er skabt som følge af en stabil, effektiv, cirkulær drift samt den risikospredning, der er et positivt og væsentligt særkende for koncernen. FirstFarms A/S fastholder derfor de udmeldte forventninger for 2023. Dog med et EBITDA i den nedre del af