Kaupthing BankHreidar Már Sigurdsson, CEO

March 2008

March 2008 2

SMEs/smaller corporations not covered by larger financial institutions

Entrepreneurs and affluent private clients

Highly growth oriented client base

Proven ability to form close relationships and support clients through all stages of their development

Institutional investors

Full suite of products offered by large integrated investment banks

― Investment banking and corporate banking at the core of Kaupthing’s strategy

― Complemented by capital markets and asset management/private banking

Ability to cross-sell, that is to provide full and integrated product offering including equity co-investment, financing, advisory and capital markets solutions as well as wealth management

Our Strategy is Focused

Focused geographic platform

Comprehensive and tailored product offering

Clearly defined customer group

USA

Middle East

March 2008 3

Our Business Model is Diversified

By geography By business unit By income type

Note: Operating income specified by location of markets and customers

Iceland33%

Scandinavia26%

UK31%

Luxembourg8%

Other2%

Banking49%

InvestmentBanking17%

CapitalMarkets

21%

Treasury3%

Asset Management &Private Banking10%

Netinterest income48%

Net fee and commission income33%

Netfinancialincome

9%

Other Income10%

Operating income is well diversified both by geography, business units and income type

Operating income for 2007 was EUR 1891m

March 2008 4

Operating Income and Operating Expenses

¹ Operating income excludes the gain from Exista in Q3 2006. Operating expenses do not include ImpairmentsAll amounts in EURm

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

6M 2005 6M 2006¹ 6M¹ 2007

Operating expenses Operating income

Development of operating income and expenses –Trailing 12 months

Net interest income covers all cost

136 244438

595

913

(248) (316) (476)(683)

(897)

2003 2004 2005 2006 2007

Net interest income Operating expenses

March 2008 5

Maintaining Efficiency

60%

60%

59%

59%

59%

59%

58%

56%

56%

56%

56%

54%

54%

53%

53%

52%

52%

52%

51%

46%

45%

45%

44%

42%

39%

38%

Barclays

Jyske Bank

San Paolo

Sabadell

Unicredit

KBC Bank

Santander

UBI Banca

Raiffeisenb.

Nordea

OP Bank

DnB Nor

Danske Bank

Sampo Group

Dexia

Caja Madrid

Swedbank

Lloyds TSB

HSBC

BBVA

RBS

HBOS

Glitnir

SHB

Kaupthing

Banco Popular

¹ Arthur D. Little and company data

Second most efficient bank in Europe in 20061

79%

78%

70%

69%

67%

63%

63%

59%

58%

58%

57%

57%

51%

51%

51%

50%

47%

46%

Citigroup

Carnegie

Deutsche

Lehman

SEB

Credit Suisse

Goldman Sachs

Barclays

JP Morgan

RBS

Danske Bank

SEB

Nordea

DNB Nor

Swedbank

HSBC

Kaupthing

Santander

Continuing trend in 2007

March 2008 6

Individuals17%

Service18%

Real Estate21% Industry

17%

Holding Companies15%

Transport2%Trade

10%

Well Diversified Asset Base

Loans and receivables74%

Other financial assets

8%

Derivatives3%

Shares and instruments

3%

Bonds and debt instruments

7%

Other assets5%

Total assets by geography Total assets by type

Loans to Customers by Location Loans to Customers by Sectors

Iceland27%

Other6%

Luxembourg12%

UK20%

Scandinavia35%

Iceland32%

Other6%

Luxembourg 10%

UK17%

Scandinavia35%

Assets amounted to EUR 55.6bn and Loans to customers EUR 36,051m at 31 December 2007

March 2008 7

12,2% 11,5%

9,4%10,5%

9,6%

2,0%2,7%

2,8%

4,5%

2,2%

14,2% 14,1%

12,2%

15,0%

11,8%

2003 2004 2005 2006 2007

Tier 1 Tier 2

Conservative Capital Structure

CAD Ratio

All amounts in EURm

6,4%

7,0%

7,1%

7,3%

7,7%

7,8%

8,2%

8,4%

8,5%

8,6%

8,6%

8,8%

9,3%

9,6%

11,4%

Danske Bank

Nordea

Citigroup

RBS

Santander

Barclays

SEB

JP Morgan

Merrill Lynch

Anglo Irish Bank

Deutsche

UBS

HSBC

Kaupthing

Credit Suisse

Tier 1 ratio 2007

March 2008 8

23,5%

31,3%

34,0%

25,5%

23,0%

2003 2004 2005 2006¹ 2007

18,5

35,6

75,2

94,9 95,2

2003 2004 2005 2006¹ 2007

Conservative but Profitable

EPS Return on equity %

¹ Excluding the Exista gainAll amounts in ISK

March 2008 9

FME Stress Test – Strong Evidence

At year-end 2007, the effects of the aforementioned simultaneous shocks on capital ratio was as follows

0,6%

11,2%

9,6%

11,8%

Stress test effects

Capital ratio (CR) after stress test

Thereof Tier 1 ratio

Capital ratio (CR)

End of year 2007

Criteria for stress test

20% fall in value of non-performing / impaired loans and appropriated assets

25% fall in value of foreign shares at own risk of bank

35% fall in value of domestic shares at own risk of bank

7% fall in value of bonds owned by the bank ( less than one year maturity)

20% weakening of the ISK

Source: FME

March 2008 10

What Moody's says about our portfolio and liquidity

"Moody's conducted several stress tests on Kaupthing's loan portfolio subjecting it to different default, asset growth and revenue assumptions as well as scenarios in which problem loans increased sharply. These tests showed that Kaupthing can withstand substantial downward pressure and Moody's also notes the higher geographical diversification of Kaupthing's loan book, a supporting factor for the stress tests "

"After carrying out comprehensive stress tests, Moody's has concluded that Kaupthing'sliquidity profile is strong due to its debt maturity profile combined with a high level of available liquidity on balance sheet including a good cash position as a result of the cancelled acquisition of NIBC. The announced asset sale by Kaupthing Singer & Friedlander is also viewed positively in terms of liquidity"

March 2008 11

Transforming the Funding Profile

Funding Mix 31 December 2007 Funding Mix 31 December 2005

EMTN27%

Commercial Papers

3%

FI Deposits19%

International Loan Market6%

Structured Covered Bonds1%

Samurai & Kangaroo

1%

Subordinated Loans

6%

US Bond market

7%

Customer Deposits

30%

International loan market1%

Customer Deposits

22%

Commerc ial Papers

8%

FI Deposits12%

EMTN Market49%

Subordinated Loans

5%

US Bond market 3%

March 2008 12

30%

35%

46%43% 42%

50%

Q4 Q1 Q2 Q3 Q4 Q4 2008Target

Deposit Scheme – Making Deposits a Priority

Deposits as % Of Loans to customers Deposits

1,835 2,5684,075 4,509 4,888

1,2122,172 2,022

1,9202,680

4,1873,237 2,818

3,061

3,706

4,893 4,895 5,344

7,934

10,143

14,367 14,814 15,072

1,1881,118

Q4 Q1 Q2 Q3 Q4

Iceland Luxembourg Scandinavia UK

All amounts in EURm

90%

2006 2007 2006 2007

The target for deposits ratio of loans to customers raised to 50%

March 2008 13

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10%

15%

20%

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30%

35%

40%

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Long term redemptions 2008 as percentage of total long term debt

Source: Bloomberg, FPK

Redemptions are Low

March 2008 14

KaupthingEDGE

Finland – October 2007

Sweden – October 2007

Norway –January 2008

Belgium – January 2008

UK – February 2008

Coverage

Population covered 170 million people

Population covered 380 millionpeople

Entering more new markets in 2008 -Total savings on deposit in target countries: €4.464 bn

Germany – March 2008

March 2008 15

Outlook for the Year Ahead

Expect a moderate growth of the bank

― We continue to emphasise organic growth

― Net interest income (now 48% of operating income) will continue to cover operating expenses

We will continue to emphasise on deposit gathering

Focus will be on operating efficiency

― We will continue to streamline the banks operations and consolidate

― We aim to decrease cost by around 15%

Outlook for corporate activity in the Bank's market niche to remain positive overall, despite some uncertainty in the short term