The Board of Directors believes that a combination of the two companies could offer opportunities for increased operational efficiency and value creation, providing customers with a wider range of products, increased services and lower costs. A successful combination would increase Íslandsbanki‘s balance sheet by close to 20% and Kvika‘s insurance operations would diversify the Bank‘s income base. The Bank‘s Board of Directors believes that the combination could provide benefits to shareholders and customers of both companies.

The two banks are competitors in important markets, and Íslandsbanki emphasizes that the two banks will maintain competitive independence throughout the negotiation process. The Bank will also maintain open and transparent communication with the relevant supervisory bodies throughout the process.

A combination of the two companies is subject to the approval of the relevant supervisory authorities and shareholders of both companies.
 
For further information please contact:
Investor Relations – Bjarney Anna Bjarnadóttir, ir@islandsbanki.is
Public Relations – Edda Hermannsdóttir, pr@islandsbanki.is

This notification is made by Jón Guðni Ómarsson, Chief Financial Officer of Íslandsbanki hf., in accordance with the Bank’s disclosure obligations pursuant to Act no. 60/2021 on measures against market abuse, cf. the Market Abuse Regulation (EU) 596/2014 and Commission Implementing Regulation (EU) 2016/1055.

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About Íslandsbanki
With a history that dates from 1875, Íslandsbanki is an Icelandic universal bank with a strong customer focus. The Bank believes in moving Iceland forward by empowering its customers to succeed - reflecting a commitment to run a solid business that is a force for good in society. Driven by the ambition to be #1 for service, Íslandsbanki’s banking model is led by three business divisions that build and manage relationships with its customers. Íslandsbanki maintains a strong market share with the most efficient branch network in the country, supporting at the same time its customers’ move to more digital services. The Bank operates in a highly attractive market and, with its technically strong foundations and robust balance sheet, is well positioned for the opportunities that lie ahead. Íslandsbanki has a BBB/A-2 rating from S&P Global Ratings. The Bank’s shares are listed on Nasdaq Iceland Main Market.

Disclaimer
This press release may contain “forward-looking statements,” involving uncertainty and risks that could cause actual results to differ materially from results expressed or implied by the statements. Íslandsbanki hf. undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. It is the investor's responsibility to not place undue reliance on these forward-looking statements which only reflect the date of this press release. Forward-looking statements should not be considered as guarantees or predictions of future events and all forward-looking statements are qualified in their entirety by this cautionary statement.