Investor Presentaiton

Regulatory and Government response to Covid-19 The Government and the Central Bank of Iceland have introduced numerous measures to deal with the expected impact of the pandemic Eased requirements on the banking system Increased liquidity available for banks from the Central Bank ➤ Covered bonds now eligible as collateral in transactions with the Central Bank Reserve requirements lowered Reduced capital requirements The countercyclical buffer reduced from 2% to zero Bank capital preserved. No dividend payments or share buybacks for the time being The bank levy has been lowered from 0.318% to 0.145% in one step The Central Bank lowered its key interest rate to a historical low of 1.75% from 3.00% at the beginning of the year Government assistance to companies and households. Government to pay up to 75% of wages to employees of companies impacted by Covid-19 Also applicable during notice periods if companies need to lay off staff Government guarantees for up to 100% of new operating loans to companies fulfilling certain conditions Deferral of tax payments of companies affected by Covid-19 Early withdrawal of voluntary pension schemes Increased and expanded reimbursement of value-added tax on labor Special child benefits introduced *

View entire presentation