The Board of Directors (the “Board”) of Kvika banki hf. (“Kvika” or “the Company”) convenes a shareholders’ meeting of the Company to be held on Thursday, 4 June 2026 at 16:30 at the Company’s premises at Katrínartún 2, 9th floor, 105 Reykjavík. The purpose of the meeting is a proposal from the Board for a special dividend payment of ISK 2.35 per share, corresponding to just over ISK 10 billion.

At the Company’s Annual General Meeting on 18 March 2026, it was stated that the Company’s capital position would remain very strong following a proposed dividend payment and that the Board would consider proposing additional distributions to shareholders later in the year, should circumstances permit. As it is now clear that the proposed merger of Kvika and Arion Banki will not take place and the Company’s capital position remains very strong, there is now considerable capacity for further distribution to shareholders.

In preparing the Board’s proposal to the shareholders’ meeting, account has also been taken of the existing authorisation approved at the Company’s Annual General Meeting to repurchase own shares of up to 10% of the Company’s share capital. Accordingly, in addition to the proposed special dividend payment, the Board aims, if conditions permit, to repurchase own shares for up to ISK 4 billion later in the year.

Attached is a meeting announcement to the shareholders’ meeting.