Iceland Observer: Fenris Creations, Strong Banks, and Greenland Investment

MarketVector™ Iceland Global Index (MVISLG) Returns:

1W: 0.40% 1M: 2.59% 1Y: 12.33% Inception 12/31/20: 42.64%

M&A / PE / VC

CCP changes to Fenris Creations

The Reykjavík game studio formerly known as CCP Games is back under independent ownership after a buyout from Pearl Abyss. The company is now operating as Fenris Creations, with ownership moving back to senior management and long term investors. The company will remain headquartered in Reykjavík following years under foreign ownership. CCP is best known for developing EVE Online.

Corporate & Market News

Alvotech Q1 Results

Alvotech reported first quarter 2026 revenue and operating profit below analyst expectations as production improvements at its manufacturing facility slowed output. The company also said a recent FDA inspection resulted in observations it believes are manageable. Investors responded positively following the update on the FDA process. Alvotech said it still expects to move forward with regulatory submissions tied to the facility.

Banks Report Strong First Quarter Earnings

Landsbankinn, Arion Bank and Íslandsbanki all reported profitable first quarter results. Landsbankinn posted ISK 11.2 billion in after tax profit, while Arion Bank and Íslandsbanki also reported improving returns on equity. Higher interest rates continued to support net interest income across the banking sector. The results come as lending conditions remain tight for households and businesses.

Kvika Plans Special Dividend

Kvika Bank plans to ask shareholders to approve a special dividend payment worth more than ISK 10 billion after merger talks with Arion Bank ended. The proposed payment equals ISK 2.35 per share. The shareholder meeting is scheduled for June 4. The bank has shifted focus back toward capital returns following the cancelled merger process.

Greenland

U.S. Military Talks

Greenland’s prime minister said talks with U.S. officials now include the possibility of expanding the American military presence on the island. The discussions are tied to Arctic security, surveillance and the existing U.S. presence at Pituffik Space Base. Greenland has rejected any change to its sovereignty, but remains open to defense and economic cooperation. The story keeps Greenland at the center of the wider Arctic security debate.

Tourism Draws New Investment Interest

Greenland is seeing more interest in tourism and infrastructure investment as global attention on the island grows. Danish export credit officials said tourism projects may generate returns faster than large mining developments, which still face major financing and infrastructure hurdles. Current interest is focused on airports, hotels and visitor infrastructure near places like Ilulissat and Disko Bay. For Greenland, tourism remains one of the clearer near term paths for economic growth.