After the close of markets on Friday 4 July 2025, the Board of Directors of Íslandsbanki reiterated its proposal for merger discussions with an updated proposal to the board of Kvika bank hf. ("Kvika"). The board of Kvika has now rejected the proposed merger discussions. 
 
Íslandsbanki has openly communicated its strategy for both internal and external growth and that various options are being explored, aimed at optimizing the Bank's capital structure. Íslandsbanki firmly believes that further consolidation within the financial sector domestically is beneficial, but also that there are oportunties for growth internationally. The Bank will continue to focus on value creation for the benefit of its customer and shareholders.

This announcement is released by Íslandsbanki hf. and contains information that qualified or may have qualified as inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR), encompassing information relating to the propsed merger dicsussions described above. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is made by Ellert Hlöðversson, CFO of Íslandsbanki hf.