Reference is amade to the disclosure by Íslandsbanki published on 28 May 2025, where Íslandsbanki proposed entering into merger discussions with Kvika bank hf. (Kvika). The board of Kvika has now rejected the merger discussions with Íslandsbanki on the grounds that the proposal does not reflect the intrinsic value of Kvika.
 
Íslandsbanki has openly communicated its strategy for external growth and that various options are being explored, including withose aimed at optimizing the Bank's capital structure. Furthermore, the Bank firmly believes that further consolidation within the financial sector could unlock value for the benefit of its shareholders, customers and the broader economy. 
 
The Bank will take the decision by the board of Kvika under further discusission, as well as other opportunities the Bank has for growth with focus on continuing value creationfor the shareholders of Íslandsbanki.