MP Bank
MP Bank was an Icelandic investment and commercial bank that operated from 2003 until its merger into Kvika Bank in 2015.
Last updated August 24, 2026
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Overview
MP Bank was an Icelandic banking institution whose roots lay in MP Securities, a securities firm established in 1999 by Margeir Pétursson, Sverrir Kristinsson, and Ágústi Sindri Karlsson. Pétursson held the largest founding stake, while Kristinsson and Karlsson were also significant initial shareholders. The business initially operated as a securities and investment-services company rather than as a deposit-taking commercial bank. In 2003, the company obtained an investment-banking licence and adopted the name MP Investment Bank, or MP Fjárfestingarbanki in Icelandic. The licence enabled it to present a broader investment-banking offering. Its activities were therefore associated with Icelandic capital markets and investment-banking services, although the available reference material does not provide a detailed breakdown of its individual products, assets, branches, or customer segments. In 2008, MP Bank obtained a commercial-banking licence and changed its name to MP banki. This expansion occurred during the Icelandic financial crisis, when the country's major banks failed or were placed into resolution. According to the referenced account, MP Bank was the only Icelandic commercial bank that did not collapse during the 2008 crisis. That survival distinguished it within the domestic banking sector, but the available material does not establish the precise balance-sheet, ownership, liquidity, or regulatory factors behind the outcome. MP Bank remained an Icelandic financial institution until July 2015, when it merged with Straumur Investment Bank. Following the merger, the combined institution adopted the name Kvika banki, bringing the MP Bank brand to an end. MP Bank is therefore best understood as a discontinued Icelandic banking brand rather than as a current independent bank. Its historical trajectory illustrates the transformation of a securities firm into an investment bank, the later addition of commercial-banking activities, and eventual consolidation within Iceland's post-crisis financial sector.
History
MP Bank originated in 1999 as MP Securities, known in Icelandic as MP Verðbréf hf. The business was founded by Margeir Pétursson, Sverrir Kristinsson, and Ágústi Sindri Karlsson. The founding ownership was concentrated among the three founders: Pétursson held 80 percent, while Kristinsson and Karlsson each held 10 percent according to the referenced account. The company changed character in 2003 when it received an investment-banking licence. It then adopted the name MP Investment Bank, or MP Fjárfestingarbanki hf. This transition marked the move from a securities-company foundation toward a broader investment-banking model. The available source describes the bank as offering comprehensive investment-banking services, but it does not enumerate the complete service portfolio or provide detailed financial information. A second major transition took place in 2008. MP Bank obtained a commercial-banking licence and changed its name to MP banki. The development occurred amid Iceland's severe financial crisis, during which the country's dominant commercial banks collapsed. The reference identifies MP Bank as the only Icelandic commercial bank that did not collapse during the crisis. No detailed explanation of its crisis-era capital position, funding model, ownership structure, or supervisory arrangements is supplied in the source material, so those factors should not be inferred. The bank continued operating under the MP Bank name until July 2015. It then merged with Straumur Investment Bank. The merged institution took the name Kvika banki, ending MP Bank's independent corporate and brand history. MP Bank's historical significance consequently rests on three stages: its beginning as a securities firm, its licensing and development as an investment bank, and its later expansion into commercial banking before consolidation with another Icelandic financial institution.
- 2015
Merger into Kvika banki
[1]MP Bank merges with Straumur Investment Bank in July; the combined institution is renamed Kvika banki.
- 2008
Commercial-banking licence granted
[1]The bank receives a commercial-banking licence and adopts the MP banki name.
- 2003
Investment-banking licence granted
[1]The company receives an investment-banking licence and becomes MP Investment Bank.
- 1999
MP Securities is founded
[1]Margeir Pétursson, Sverrir Kristinsson, and Ágústi Sindri Karlsson establish MP Securities, the predecessor of MP Bank.
Products and positioning
An Icelandic investment-led bank that expanded from securities services into commercial banking and later became part of Kvika Bank.
Investment banking · 2003
Investment banking services
After receiving its investment-banking licence in 2003, MP Bank positioned itself as a provider of comprehensive investment-banking services in Iceland. The available reference does not specify the precise mix of advisory, underwriting, securities-trading, or capital-markets activities, so the offering is described only at the level supported by the source.
Securities · 1999
Securities services
Securities activity was the original business of MP Securities, the company founded in 1999 that later became MP Bank. These services formed the institutional base from which the organization developed into an investment bank. Specific instruments, customer groups, and product names are not identified in the available material.
Commercial banking · 2008
Commercial banking services
MP Bank entered commercial banking after obtaining a commercial-banking licence in 2008. The source confirms the change in regulatory status and name but does not provide a detailed catalogue of deposit, lending, payment, or other retail and corporate banking products.
Brand decisions
2015
Merger with Straumur Investment BankM&ABackground
MP Bank and Straumur Investment Bank combined in July 2015.
Action taken
The two institutions merged and the resulting bank adopted the name Kvika banki.
Aftermath
The MP Bank brand ceased to operate as an independent banking brand.
2008
Expansion into commercial bankingStrategyBackground
The institution obtained a commercial-banking licence during Iceland's financial crisis.
Action taken
It began operating as a commercial bank and changed its name to MP banki.
Aftermath
The reference identifies MP Bank as the only Icelandic commercial bank that did not collapse during the crisis.
2003
Transition from securities firm to investment bankStrategyBackground
MP Securities had operated as a securities business since 1999 and then obtained an investment-banking licence.
Action taken
The company broadened its institutional identity and changed its name to MP Investment Bank.
Aftermath
The organization continued under an investment-bank model until its later expansion into commercial banking.
Recent events
- 2015
MP Bank merges with Straumur Investment Bank[1]
M&A · Other
MP Bank and Straumur Investment Bank merged in July, and the resulting institution was renamed Kvika banki.
- 2008
MP Bank expands into commercial banking[1]
Regulation
After receiving a commercial-banking licence, the institution adopted the name MP banki.
- 2008
MP Bank survives Iceland's 2008 banking crisis[1]
Other
MP Bank was described in the reference material as the only Icelandic commercial bank that did not collapse during the country's financial crisis.
- 2003
MP receives an investment-banking licence[1]
Regulation
The company obtained an investment-banking licence and changed its name from MP Securities to MP Investment Bank.
- 1999
MP Securities established[1]
Other
Margeir Pétursson, Sverrir Kristinsson, and Ágústi Sindri Karlsson founded the securities business that later developed into MP Bank.
Sources1 sources
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