The Bank has, on the basis of the aforementioned authorisation, decided to launch a share buy-back programme with the purpose of reducing the Bank's share capital. As announced in parallel to Íslandsbanki's 4Q23/2023 Full Year results on 8 February 2024 the Bank has planned for additional distribution of excess capital in the amount of ISK 10 billion. The Bank has already purchased its own shares amounting to ISK 3,173,369,193 through reverse auction processes announced on 6 May 2024 and 5 June 2024, respectively.

Authorised and issued share capital of the Bank is 2,000 million ordinary shares of ISK 5 each. At the date of this announcement the Bank holds 77,290,137 own shares.

In this instance, the Bank aims to repurchase a maximum of 11.0 million own shares equivalent to 0.55% of issued shares, the total purchase price for repurchased shares in this instance shall however not exceed ISK 1,000,000,000 in total. The repurchases will launch on 18 June 2024 and remain in force until 30 September 2024, unless the conditions on the maximum amount of shares or purchase price will be met before that time.

The repurchase price for each share shall not exceed the highest price in the last independent trade or highest current independent purchase bid on the Main Market of Nasdaq Iceland. Repurchase of own shares in accordance with the aforesaid shall, on any trading day, not exceed 25% of the average daily volume of the Bank's shares on the Main Market of Nasdaq Iceland in the month of May 2024.

Arion Bank hf. manages the repurchase of the Bank's own shares and independently adopts all decisions on the timing of the purchase of shares.

The share repurchase programme will be carried out in accordance with the applicable law, including the Act on limited liability companies No. 2/1995, Regulation No. 596/2014 of the European Parliament and of the Council on market abuse, Commission delegated regulation (EU) 2016/1052, the Act on Measures Against Market Abuse No. 60/2021 and regulation 320/2022 on the same subject. The approval of the Financial Supervisory Authority of the Central Bank of Iceland for the Bank's repurchase of own shares has been obtained.

Notices on trading in own shares will be announced no later than at the end of the seventh trading day following the purchase of shares.

This announcement is released by Íslandsbanki hf. and contains information that qualified or may have qualified as inside information for the purposes of Article 7 of the Market Abuse Regulation (EU) 596/2014 (MAR), encompassing information relating to the share repurchase programme described above. For the purposes of MAR and Article 2 of Commission Implementing Regulation (EU) 2016/1055, this announcement is made by Ellert Hlöðversson, CFO of Íslandsbanki hf.