Føroya Banki (FOBANK) investor relations material

Executive summary

• Achieved steady growth in business volumes in Q2 2026, up 2% sequentially and 7% year-over-year, with net profit for H1 2026 at DKK 125m and guidance for full-year net profit maintained at DKK 195-235m.

• Total operating income remained flat quarter-over-quarter, with increased investment sector activity and 8% growth in assets under management; operating income in Q2 2026 was DKK 128m.

• Cost/income ratio rose to 57.3%, above the 2026 target, but return on equity after tax was strong at 14.6%.

• Liquidity and capital positions remain robust, with LCR at 274% and CET1 ratio at 25.6%.

• Credit quality remains strong, reflected in low impairment charges.

Financial highlights

• Net interest income increased 5% quarter-over-quarter but declined 1% year-over-year; for H1 2026, net interest income was DKK 192.1m, down 4% year-over-year.

• Fee and commission income was flat sequentially but up 16% year-over-year, with net fee and commission income for H1 2026 at DKK 46.5m, up 11%.

• Operating costs rose 2% quarter-over-quarter and 6% year-over-year, mainly due to salary adjustments.

• Insurance premiums grew 4.4% year-over-year, with a combined ratio of 85.6% and profit before tax of DKK 19.4m; net insurance result was DKK 26.0m, down 24% year-over-year due to higher claims.

• Total assets at 30 June 2026 were DKK 15.4bn, up DKK 0.5bn from year-end 2025.

Outlook and guidance

• Full-year 2026 net profit guidance maintained at DKK 195-235m, with return on equity expected between 10% and 12%.

• Guidance is subject to uncertainties in interest rates, investment returns, impairments, insurance performance, and geopolitical factors.

• Focus remains on operational efficiency and cost control.