Investor Presentaiton

Net interest margin Stability through the cycle and near-term tailwind Evolution of NIM . Stability in net interest margin through the cycle around 3% area 9.0% 8.0% 7.0%- Near-term NIM outlook Repricing of the fixed rate mortgages will be a material tailwind (c. ISK 150bn of loans that currently have a negative NIM) High deposit beta in Iceland has been a headwind during the rate hiking cycle but can support the NIM as rates come down Examples of strategic initiatives impacting NIM Loyalty projects support customer retention and an enhanced resilience in the NIM and provide growth opportunities in higher margin lending Broadening wholesale funding options aims to lower volatility in the funding spreads 18 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 2013 2014 2015 2016 2017 NIM Source: Central Bank of Iceland ☐ 3.2% ◄ 2.7% 2018 2019 2020 2021 2022 2023 Average policy rates Strategy focused on ROE and not on absolute growth. Net loan book growth in general however expected to broadly follow economic growth Capital velocity provides more efficient balance sheet management In general, expected reduction in policy rates are an initial headwind Focusing on stable deposits that provide stable loan book funding will support the resilience of the margin through the cycle Capital optimization plans will increase percentage of funding with interest bearing liabilities while enhancing ROE Arctic opportunities create lending opportunities in FX and over time could broaden funding options in FX Positive impact Negative impact

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