Kvika banki hf.: Positive profit announcement

April 20, 2021 3:30 PM EDT

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While preparing the financial results for the first quarter it has become clear that Kvika banki hf. („Kvika“ or „the bank“) group results are significantly higher than expected. Estimated earnings for Kvika, TM hf. („TM“) and Lykill fjármögnun hf. („Lykill“) is between ISK 2,400 - 2,600 million before tax for the first quarter, but on 30 March 2021, in connection to the merger of the companies, it was announced that Kvika‘s earning forecast, published on 28 January 2021, was no longer valid. The operations of TM and Lykill will be a part of Kvika‘s group from and including 1 April 2021.

Positive growth in commission income in Asset Management and Corporate Finance

Kvika‘s estimated earnings before tax is around ISK 1,000 million, which is considerably higher than expected for the quarter. The reason for higher earnings can be mainly attributed to higher commission income in asset management and corporate finance, but at the same time investment income was above expectations and net loan impairments were lower than expected.

TM‘s Investment Income significantly above expectations      

TM‘s Investment Income is estimated to be around ISK 1,700 million and it‘s combined ratio around 103%. According to preliminary financial results for the first quarter TM and Lykill‘s earnings will therefore be between ISK 1,400-1,600 million before tax.

Kvika banki hf.‘s financial results for the first quarter will be published on 27 May 2021.

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