Føroya Banki (FOBANK) investor relations material

Executive summary

• Q3 net profit was DKK 62m; Q1–Q3 net profit was DKK 187.2m versus DKK 217.7m a year earlier.

• Lending, deposits and assets under management grew; low impairment and higher net interest and fee income supported Q3, partly offset by higher insurance claims and lower bond portfolio returns QoQ.

• Business volumes reached DKK 27.9bn at Q3, up 6% YoY; assets under management rose 3% during the quarter.

Financial highlights

• Adjusted Q1–Q3 operating income was DKK 382m versus DKK 402m YoY; adjusted operating costs were DKK 218m versus DKK 210m.

• Q1–Q3 net interest income was DKK 297.6m versus DKK 293.7m; net fee and commission income was DKK 69.2m versus DKK 63.9m.

• Q3 adjusted operating income was DKK 126m, down DKK 2m QoQ; net interest income was DKK 82m, fees DKK 24m and operating costs DKK 73m.

• Total assets reached DKK 15.7bn at 30 September; loans were DKK 9.9bn, up 3% from year-end 2025, and deposits were DKK 11.6bn, up 6%.

Outlook and guidance

• FY 2026 net profit guidance was raised on 15 October to DKK 225–255m from DKK 190–235m, primarily on low impairment and stronger-than-expected net interest and fee income; insurance underperformed expectations.

• Guidance is subject to interest rates, investment portfolio returns, impairment, insurance performance and geopolitical factors.

• 2027–2030 targets remain return on equity above 12%, CET1 around 23% and a 70% payout ratio; cost/income becomes an internal rather than external target.