Core Insights - Kvika banki hf. reported strong financial performance for Q3 2025, with profit before tax increasing by 8.6% year-over-year to ISK 1,969 million [5] - The bank's net interest income rose significantly by 21.6% to ISK 2,953 million, reflecting a robust net interest margin of 4.0% [5] - Despite challenges in Iceland's securities markets affecting fee income, the bank's overall operations remain strong, particularly in the UK market [9][10] Financial Performance - Profit before tax for Q3 2025 was ISK 1,969 million, up from ISK 1,813 million in Q3 2024, marking an increase of ISK 156 million [5] - Post-tax profit from continuing operations was ISK 1,472 million, a 5.3% increase from ISK 1,398 million in Q3 2024 [5] - Total assets at the end of Q3 2025 were ISK 353 billion, slightly down from ISK 355 billion at year-end 2024 [5] Key Balance Sheet Figures - Customer deposits increased by 9.2% to ISK 178 billion compared to ISK 163 billion at year-end 2024 [5] - Loans to customers surged by 30.7% to ISK 196 billion from ISK 150 billion at year-end 2024 [5] - The capital adequacy ratio (CAR) improved to 23.0% at the end of Q3 2025, up from 22.8% at year-end 2024 [5] Operational Highlights - The bank's liquidity coverage ratio (LCR) was exceptionally high at 659% at the end of Q3 2025, compared to 360% at year-end 2024 [5] - Earnings per share for Q3 2025 were ISK 0.33, an increase from ISK 0.30 in Q3 2024 [5] - The bank's operations in the UK achieved a record profit of ISK 563 million in Q3 2025 [9] Strategic Outlook - The merger process with Arion Bank is progressing, with due diligence nearing completion and discussions with the Icelandic Competition Authority underway [12] - The bank remains focused on its core operations and aims to create long-term value for shareholders and customers [12]