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Investor Presentaiton

15 Net financial income Loss on equity holdings as markets are hit hard by Covid-19 Net financial income in Q1 was negatively affected by: Bond holdings Net financial income 1.0 0.9 131.0 0.8 0.5 Equity holdings measured at fair 115.4 value as markets were negative from the start of Covid 19 pandemic 94.6 31.1 63.6 81.0 FX loss of ISK 156 million at the 30.7 65.88 22.9 Arion Bank level. The Bank manages 29.7 FX risk for the Group and ISK 413 84.3 million of FX gains are booked at HFS assets 58.2 63.9 67.3 36.2 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 ■FX ■ISK Net loss of fair value hedge of interest swaps It was positively affected by: FV development in bond holdings which increased significantly due to postponement of dividend payment, issuance of AT1 and increase in deposits Equity holdings 23.6 21.6 20.9 Favorable developments in market derivatives 3.4 19.6 19.2 4.6 2.2 4.4 2.5 10.1 Total portfolio of Vördur is ISK 20.0 7.5 7.5 7.4 6.2 billion; ISK 12.6 billion of bonds and ISK 7.4 billion in equity instruments 10.1 9.9 9.2 9.6 10.2 All amounts in ISK billion FX gain at HFS assets 0.4 (2.0) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Net financial income by type in Q1 2020 0.5 0.1 (0.2) 0.4 (2.4) Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 ■Listed Unlisted ■Unlisted bond funds Equity holdings Bond holdings Derivatives FX difference FX difference at HFS assets (1.6)
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