Føroya Banki (FOBANK) investor relations material

Executive summary

• Achieved solid growth in business volumes, up 6.9% year-over-year, with increased activity across core banking and insurance segments.

• Operating income rose, driven by higher activity, strong insurance results, and one-off factors.

• Operating costs remained in line with expectations, with a cost/income ratio of 52.3%.

• Reversal of impairment charges for the ninth consecutive year, reflecting robust credit quality.

• Proposed dividend of DKK 21.04 per share, with a total dividend of DKK 202m.

Financial highlights

• Net interest income was DKK 316m, down 9% year-over-year due to lower interest rates.

• Net fee and commission income increased 14% year-over-year to DKK 84m.

• Net insurance income surged 35% year-over-year to DKK 76m, with a combined ratio of 71.7% in Q4.

• Operating income reached DKK 534m, up 3% year-over-year.

• Net profit after tax was DKK 288m, with RoE after tax at 14.1%.

Outlook and guidance

• 2026 net profit guidance is DKK 190–235m, corresponding to RoE of 10–12%.

• Expecting stable central bank rates, normalized insurance claims, and rising administrative expenses.

• Impairment charges expected at 0.3% of loans in 2026.