At the Annual General Meeting of Kvika banki hf. (“Kvika” or “the bank”) on 21 April2021, the shareholders approved to authorise the board of directors to buy up to 5.00% of issued shares in the bank, which is equivalent to up to 235,335,912 shares based on the total share capital of that day, to among other things enable the board of directors to carry out a formal buy-back programme.

On the basis of that approval, the board of directors of Kvika decided on 27 May 2021 to exercise a part of that authorisation and establish a buy-back programme to carry out the purchase of up to 117,256,300 own shares for the purpose of reducing Kvika's issued share capital. Kvika does not currently own any own shares but the bank's subsidiary, TM tryggingar hf., owns 6,400,000 shares which it owned when Kvika and TM hf. merged.

Arion banki hf. will be supervising the execution of the buy-back programme and making all decisions regarding the acquisition of shares and the timing of the acquisitions independently of Kvika. The execution of the buy-back programme shall be in accordance with Act no. 2/1995 on Public Limited Companies and the annex to regulation no. 630/2005 on insider information and market abuse.

The execution of the buy-back programme is conducted in such a way that purchases each day do not exceed a maximum of 25% of the daily average turnover of the previous 20 business days, however never more than 2,000,000 shares, and the maximum price of the purchases shall be the amount of the last independent transaction or highest independent existing purchase bid in the Nasdaq Iceland stock exchange. Arion banki hf. can, according to agreement between the parties, start the buy back on 19 July 2021 and the buy-back programme is in force until Kvika's annual general meeting 2022, or until the repurchase of 117,256,300 own shares is completed, whichever comes first.

The company’s trading in own shares pursuant to the buy-back programme shall be declared in accordance with law and regulations.