Fsroya Banki
Q12026
MANAGEMENT'S REPORT
Financial highlights and ratios 3
Financial review 4
Q1 2026 Highlights 4
Income statement 4
Balance sheet 5
Capital and Liquidity 6
Compliance with the Danish FSA Supervisory Diamond 6
Events after the balance sheet date 6
Guidance for 2026 6
Adjusted results… 7
Segments 8
Personal Banking 9
Corporate Banking 10
Insurance: Trygd 11
FINANCIAL STATEMENTS
Income statement 12
Balance sheet 14
Statement of capital 16
Capital and solvency 18
Cash flow statement 19
Notes to the financial statements 20
Statement by the Executive Board and the Board of Directors 27
CONTACT DETAILS 28
Financial highlights and ratios - Føroya Banki Group
Highlights DKK 1,000 | Q1 2026 | Q1 2025 | Index | Q1 2026 | Q4 2025 | Q3 2025 | Q2 2025 | Q1 2025 |
Net interest income Dividends from shares and other investments Net fee and commision income | 94,338 2,420 22,824 | 98,209 148 21,162 | 96 1,631 108 | 94,338 2,420 22,824 | 94,358 6,669 23,958 | 94,386 0 22,125 | 101,149 14,259 20,639 | 98,209 148 21,162 |
Net interest and fee income | 119,582 | 119,520 | 100 | 119,582 | 124,985 | 116,511 | 136,047 | 119,520 |
Net insurance result | 12,742 | 10,720 | 119 | 12,742 | 18,591 | 13,447 | 23,297 | 10,720 |
Interest and fee income and income from insurance activities, net | 132,324 | 130,240 | 102 | 132,324 | 143,576 | 129,958 | 159,344 | 130,240 |
Market value adjustments Other operating income Staff costs and administrative expenses Impairment charges on loans and advances etc. | 1,868 3,555 66,459 -696 | 13,064 2,905 62,880 5,110 | 14 122 106 | 1,868 3,555 66,459 -696 | 3,492 2,259 64,165 -2,346 | 8,139 2,990 67,027 -8,507 | 10,090 6,682 62,462 1,761 | 13,064 2,905 62,880 5,110 |
Net profit | 55,911 | 60,930 | 92 | 55,911 | 70,642 | 63,679 | 93,067 | 60,930 |
Loans and advances Bonds at fair value Intangible assets Assets held for sale Total assets Amounts due to credit institutions and central banks Issued bonds at amortised cost Deposits and other debt Total shareholders' equity | 9,773,649 1,102,536 4,011 2,207 15,039,335 499,664 935,362 11,095,838 1,869,776 | 9,270,369 1,741,261 4,679 2,207 14,800,460 801,355 803,231 10,298,759 1,787,925 | 105 63 86 100 102 62 116 108 105 | 9,773,649 1,102,536 4,011 2,207 15,039,335 499,664 935,362 11,095,838 1,869,776 | 9,669,773 1,106,209 4,415 2,207 14,934,717 505,739 903,790 10,948,209 2,015,313 | 9,598,042 1,492,287 4,591 2,207 15,170,186 837,987 901,052 10,803,028 1,944,670 | 9,694,764 1,496,232 4,834 2,207 14,636,771 815,064 898,966 10,382,526 1,880,992 | 9,270,369 1,741,261 4,679 2,207 14,800,460 801,355 803,231 10,298,759 1,787,925 |
Ratios and key figures | March 31 2026 | March 31 2025 | March 31 2026 | Dec. 31 2025 | Sept. 30 2025 | June 30 2025 | March 31 2025 | |
Solvency Total capital, incl. MREL capital, ratio, % Total capital ratio, % Tier 1 capital ratio, % CET 1 capital RWA, DKK mill | 40.2 26.9 25.5 25.5 7,054 | 36.0 24.9 23.5 23.5 7,271 | 40.2 26.9 25.5 25.5 7,054 | 36.3 24.6 23.3 23.3 7,732 | 36.6 24.5 23.1 23.1 7,412 | 35.9 24.0 22.7 22.7 7,545 | 36.0 24.9 23.5 23.5 7,271 | |
Profitability Return on shareholders' equity after tax, % Cost / income, % Cost / income, % (excl. value adjustm. and impairments) Return on assets | 2.9 49.4 50.6 0.4 | 3.2 48.3 49.2 0.4 | 2.9 49.4 50.6 0.4 | 3.6 42.9 45.5 0.5 | 3.3 43.0 52.1 0.4 | 5.1 36.6 37.7 0.6 | 3.2 48.3 49.2 0.4 | |
Market risk Interest rate risk, % Foreign exchange position, % Foreign exchange risk, % | 0.7 0.9 0.0 | 1.2 0.6 0.0 | 0.7 0.9 0.0 | 0.6 1.0 0.0 | 0.8 0.3 0.0 | 0.9 0.9 0.0 | 1.2 0.6 0.0 | |
Liquidity Liquidity Coverage Ratio (LCR), % Net Stable Funding Ratio. (NSFR), % | 322.4 163.2 | 261.1 151.0 | 322.4 163.2 | 306.4 160.6 | 294.5 163.4 | 259.7 158.3 | 261.1 151.0 | |
Credit risk Change in loans and advances, % Gearing of loans and advances Impairment and provisioning ratio, end of period, % Write-off and provisioning ratio, % | 1.1 5.2 1.6 0.0 | 2.0 5.2 1.8 0.0 | 1.1 5.2 1.6 0.0 | 0.7 4.8 1.7 0.0 | -1.0 4.9 1.7 -0.1 | 4.6 5.2 1.8 0.0 | 2.0 5.2 1.8 0.0 | |
Shares Earnings per share after tax (nom. DKK 20), DKK Market price per share (nom. DKK 20), DKK Book value per share (nom. DKK 20), DKK | 5.8 245.0 195.3 | 6.4 171.0 186.8 | 5.8 245.0 195.3 | 7.4 286.0 210.5 | 6.7 195.0 203.1 | 9.7 188.0 196.5 | 6.4 171.0 186.8 | |
Other Number of full-time employees, end of period | 207 | 204 | 207 | 201 | 202 | 199 | 204 | |
"Our performance for the first quarter was satisfactory with good momentum in the underlying business and a net profit of DKK 56m. The period was characterised by strong customer activity and deposit, lending and mortgage growth, resulting in an overall 3% increase in business volume. The core business generated income in line with expectations and on a par with the preceding quarter. However, returns on the investment portfolio were lower than expected due to financial market volatility. Costs were in line with the guided level, reflecting continued disciplined cost management. We note with satisfaction that our customers are financially robust with strong credit quality, and that we were consequently able to reverse impairment charges during the quarter. The outlook for the rest of the year is marked by persistent geopolitical tensions and expected rate hikes driven by growing inflation. At the same time, we expect the underlying business to continue its stable, positive development," says CEO Turið F. Arge.
Q1 2026 Highlights
Adjusted Income statement, Group
DKKm | Q1 2026 | Q1 2025 | Index | Q1 2026 | Q4 2025 | Index | Q3 2025 | Q2 2025 | Q1 2025 | |
Net interest income | 78 | 76 | 102 | 78 | 79 | 99 | 77 | 84 | 76 | |
Net fee and commission income | 23 | 20 | 115 | 23 | 24 | 95 | 21 | 19 | 20 | |
Net insurance income | 16 | 16 | 105 | 16 | 20 | 82 | 14 | 27 | 16 | |
Other operating income (less reclassification) | 11 | 13 | 86 | 11 | 10 | 112 | 11 | 24 | 13 | |
Total operating income | 128 | 125 | 103 | 128 | 132 | 97 | 123 | 154 | 125 | |
Operating costs1 | 72 | 69 | 104 | 72 | 70 | 103 | 73 | 68 | 69 | |
Profit before impairment charges | 56 | 56 | 101 | 56 | 63 | 90 | 50 | 86 | 56 | |
Impairment charges, net | -1 | 5 | - | 14 | -1 | -2 | 29 | -9 | 2 | 5 |
Operating profit | 57 | 51 | 112 | 57 | 65 | 87 | 58 | 84 | 51 | |
Investment portfolio earnings2 | 13 | 25 | 51 | 13 | 20 | 63 | 22 | 30 | 25 | |
Profit before tax | 70 | 76 | 92 | 70 | 85 | 82 | 80 | 115 | 76 | |
Operating costs/income, % | 56 | 55 | 56 | 53 | 59 | 44 | 55 | |||
Number of FTE, end of period | 207 | 204 | 101 | 207 | 201 | 103 | 202 | 199 | 204 |
Comprises staff costs, administrative expenses and amortisation, sector costs, depreciation and impairment charges (less reclassification to non-recurring items).
Incl. net income from investments accounted for under the equity method (excl. sector shares).
Income statement
The following comments are generally stated relative to Q4 2025. Due to seasonal variations, comments provided on the insurance segment relate to Q1 2025.
Operating income
The Føroya Banki Group generated operating income of DKK 128m in Q1 2026, DKK 5m lower than in Q4 2025. The decrease was mainly due to lower net insurance income while net interest income, net fee and commission income and other operating income were similar to the levels seen in Q4 2025.
Net interest income
Net interest income was DKK 78m in Q1 2026, a slight fall of DKK 1m compared to Q4 2025. An increase in both deposits and loans supported a stable level of interest income.
Net fee and commission income
Net fee and commission income amounted to DKK 23m in Q1 2026, DKK 1m lower than in Q4 2025.
Net insurance income
Net insurance income was DKK 16m in Q1 2026, DKK 1m higher than in the same period in 2025. Compared to Q4 2025 net insurance income was down DKK 4m due to higher claims in Q1 2026 relative to Q4 2025. The first quarter was marked by an absence of weather-related losses, which are normally more prevalent in the first quarter.
Other operating income
Other operating income was DKK 11m in Q1 2026, up DKK 1m on the previous quarter.
Operating costs
Operating costs amounted to DKK 72m in Q1 2026, DKK 2m higher than in Q4 2025. The main driver of the increase was an increase in IT-costs.
Profit before impairment charges
Profit before impairment charges was DKK 56m in Q1 2026 compared to DKK 63m in Q4 2025.
Impairment charges
Net impairment amounted to a reversal of DKK 1m in Q1 2026 compared to a reversal of DKK 2m in Q4 2025. The Bank remains of the opinion that the credit quality of its overall portfolio is strong. The management provision taken in relation to the ongoing economic uncertainty as well as uncertainty in relation to the Bank's impairment calculation and modelling was increased by DKK 5m in Q1 2026 to DKK 121.5m. The increase in management provision is driven by renewed uncertainty related to rising oil prices, which are expected to be reflected in higher inflation.
Operating profit
The resulting operating profit was DKK 57m in Q1 2026, DKK 8m lower than the DKK 65m seen in Q4 2025.
Investment portfolio earnings
Investment portfolio earnings amounted to DKK 13m in Q1 2026, which was DKK 7m lower than in Q4 2025. The figure was mainly impacted by lower returns on the Bank's bond holdings, as increased financial market volatility in March led to price declines on the bond portfolio.
Profit before tax
Profit before tax in Q1 2026 was DKK 70m, DKK 16m lower than in the preceding quarter, which saw a pretax profit of DKK 85m.
The Bank is pleased with the continued positive development in lending, deposits and mortgage activities, which supports stable earnings. Continued low impairment charges and a strong insurance result have contributed to a very strong financial performance for the Group in Q1 2026.
Balance sheetFøroya Banki Group's total assets at 31 March 2026 amounted to DKK 15.0bn, up DKK 0.1bn compared to 31 December 2025. Loans and advances were DKK 9.8bn, DKK 104m (up 1%) higher than at 31 December 2025. Deposits were DKK 11.1bn, up DKK 148m (up 1%) compared to 31 December 2025. Liquidity invested in Danish mortgage bonds and Danish government bonds amounted to DKK 1.1bn, a decrease of DKK 4m compared to 31 December 2025. Shareholders' equity at 31 March 2026 amounted to DKK 1,870m, down
DKK 146m compared to 31 December 2025 due to dividend payments in the amount of DKK 202m.
Capital and liquidityAt 31 March 2026, the Group's CET 1 capital ratio was 25.5%, the Tier 1 capital ratio was 25.5% and the Total capital ratio was 26.9%. The Total capital ratio, incl. MREL capital, was 40.2%. The net profit for Q1 2026, amounting to DKK 55.9m, is not included in the calculation of the capital ratios.
As of 1 January 2026, CRR3 has taken effect for the Bank. Its overall effect on REA resulted in lower credit risk and lower operational risk. Lower credit risk stems mainly from the Bank's relatively large portfolio of low-LTV home loans to personal customers. Compared to 31 December 2025 credit risk decreased by DKK 302m while operational risk decreased by DKK 356m following the introduction of a new calculation methodology in CRR3.
In the first quarter, the Bank refinanced issued bonds in the Swedish market. The Bank successfully issued new bonds amounting to SEK 350m in January 2026 and redeemed SEK 300m in March 2026. This resulted in a net increase in MREL capital of DKK 32m during the quarter.
The Group's liquidity indicator was 273.9% on 31 March 2026, well above the requirement of 100%. The Group's LCR at 31 March 2026 was 322.4%, also well above the requirement of 100%. The Group's Net Stable Funding Ratio (NSFR) was 163.2% at 31 March 2026, well above the requirement of 100%.
Compliance with the Danish FSA Supervisory DiamondThe Supervisory Diamond | |||
Q1 2026 | Q1 2025 | FSA limit | |
Sum of large exposures | 127.1% | 144.6% | < 175% |
Liquidity indicator | 273.9% | 244.6% | >100 % |
Loan growth | 5.4% | 4.0% | < 20 % |
Property exposure | 11.5% | 11.6% | < 25 % |
At 31 March 2026, the Group was compliant with all Supervisory Diamond requirements set by the FSA.
Events after the balance sheet dateNo events have occurred since 31 March 2026 that are deemed to have a significant impact on the Group's
financial position.
Guidance for 2026The Bank announced its guidance for 2026 on 28 January. The guidance for the year is maintained at a net profit in the DKK 195-235m range and a return on equity between 10% and 12%.
The guidance for 2026 is subject to uncertainty related to developments in interest rates, returns on the investment portfolio, impairment charges, insurance performance and geopolitical factors.
Adjusted resultsNote | Adjusted Income statement Q1 2026, Group, (DKK 1,000) | Income statement | Restatement | Restated income statement |
1, 4 | Net interest income | 94,338 | -16,752 | 77,586 |
2 | Net fee and commission income | 25,244 | -2,496 | 22,748 |
4, 5, 6 | Net insurance income | 12,742 | 3,631 | 16,373 |
2, 3 | Other operating income | 3,555 | 7,703 | 11,258 |
Operating income | 135,878 | -7,914 | 127,964 | |
5 | Operating costs | 68,754 | 2,938 | 71,692 |
Profit before impairment charges | 67,124 | -10,852 | 56,272 | |
Impairment charges | -696 | 0 | -696 | |
Operating profit | 67,820 | -10,852 | 56,968 | |
1, 3, 6 | Investment portfolio earnings | 1,868 | 10,852 | 12,720 |
Profit before tax | 69,688 | 0 | 69,688 | |
Note Adjusted Income statement Q1 2025, Group, (DKK 1,000) | ||||
1, 4 | Net interest income | 98,209 | -21,877 | 76,332 |
2 | Net fee and commission income | 21,311 | -1,483 | 19,828 |
4, 5, 6 | Net insurance income | 10,720 | 4,831 | 15,551 |
2, 3 | Other operating income | 2,905 | 10,113 | 13,018 |
Operating income | 133,145 | -8,416 | 124,729 | |
5 | Operating costs | 65,459 | 3,326 | 68,785 |
Profit before impairment charges | 67,685 | -11,742 | 55,943 | |
Impairment charges | 5,110 | 0 | 5,110 | |
Operating profit | 62,576 | -11,742 | 50,834 | |
1, 3, 6 | Investment portfolio earnings | 13,064 | 11,742 | 24,806 |
Profit before tax | 75,640 | 0 | 75,640 | |
Note Restatements made to the income statement (DKK 1,000)
Reclassification of interest income related to bonds from the item Interest income to Investment portfolio earnings.
Dividends and fees reclassified from Net fee and commission income to Other operating income.
Q1 2026 Q1 2025
13,121 17,046
2,496 1,483
Reclassification of value adjustments related to sector shares and of profit or loss from currency transactions to Other operating income.
Reclassification of interest income to Net insurance income due to IFRS 17
Reclassification of operating costs from Net insurance income to Operating costs due to IFRS 17
Reclassification of market value adjustments from net insurance income to Investment portfolio earnings due to FRS 17
5,207 8,630
3,631 4,831
2,938 3,326
2,938 3,326
SegmentsWe refer to the preceding Financial Review, which provides an overview of the Group, including the Bank at an overall level.
The Bank's activities are divided into two main segments, Personal Banking and Corporate Banking. Details regarding these two segments are provided on the following pages. The last page of the segments section sets out the performance of the Bank's insurance subsidiary, Trygd.
Adjusted Income statement, Banking
DKKm | Q1 2026 | Q1 2025 | Index | Q1 2026 | Q4 2025 | Index | Q3 2025 | Q2 2025 | Q1 2025 | |
Net interest income | 78 | 76 | 102 | 78 | 79 | 99 | 77 | 84 | 76 | |
Net fee and commission income | 26 | 24 | 107 | 26 | 27 | 96 | 25 | 24 | 24 | |
Other operating income | 9 | 11 | 86 | 9 | 8 | 112 | 8 | 22 | 11 | |
Total operating income | 112 | 111 | 101 | 112 | 114 | 99 | 110 | 129 | 111 | |
Operating costs | 66 | 63 | 105 | 66 | 64 | 103 | 67 | 62 | 63 | |
Profit before impairment charges | 46 | 48 | 97 | 46 | 50 | 93 | 43 | 67 | 48 | |
Impairment charges, net | -1 | 5 | - | 14 | -1 | -2 | 30 | -9 | 2 | 5 |
Operating profit | 47 | 43 | 110 | 47 | 52 | 90 | 52 | 66 | 43 | |
Investment portfolio earnings | 13 | 25 | 54 | 13 | 18 | 73 | 18 | 28 | 25 | |
Profit before tax | 60 | 68 | 89 | 60 | 70 | 86 | 70 | 94 | 68 | |
Loans and advances | 9,774 | 9,272 | 105 | 9,774 | 9,670 | 101 | 9,600 | 9,697 | 9,272 | |
Deposits and other debt | 11,112 | 10,306 | 108 | 11,112 | 10,957 | 101 | 10,835 | 10,407 | 10,306 | |
Mortgage credit | 3,095 | 2,906 | 106 | 3,095 | 2,824 | 110 | 2,789 | 2,909 | 2,906 | |
Operating costs/income, % | 59 | 57 | 59 | 56 | 61 | 48 | 57 | |||
Number of FTE, end of period | 178 | 174 | 102 | 178 | 173 | 103 | 173 | 171 | 174 |
The Personal Banking segment reported operating income of DKK 62m in Q1 2026, DKK 1m higher than in Q4 2025. Net interest income was DKK 37m in Q1 2026, flat compared to the previous quarter. Compared to Q4 2025, net fee and commission income was down DKK 2m to DKK 18m in Q1 2026. Other operating income amounted to DKK 6m in Q1 2026, up DKK 2m from DKK 4m in Q4 2025.
Operating costs were DKK 54m in Q1 2026, an increase of DKK 1m relative to Q4 2025, mainly driven by increased IT costs. Net impairment amounted to a reversal of DKK 5m in Q1 2026, compared to a charge of DKK 4m in Q4 2025. The Bank remains of the opinion that customers in the personal banking segment continue to be robust. The resulting operating profit for Q1 2026 was DKK 13m, up DKK 9m from DKK 4m in the previous quarter.
Investment portfolio earnings posted to the Personal Banking segment amounted to DKK 7m in Q1 2026 compared to DKK 9m in Q4 2025.
Profit before tax thus amounted to DKK 20m in Q1 2026 compared to DKK 14m in Q4 2025.
Loans and advances to personal customers increased by DKK 108m (up 2%) to DKK 4,754m at the end of Q1 2026, while brokered mortgage credit increased by DKK 7m (up 0%) to DKK 2,225m, both compared to 31 December 2025. Deposits held by personal customers increased by DKK 121m (up 2%) during the first quarter to DKK 6,243m at 31 March 2026.
Adjusted Income statement, Personal banking
DKKm | Q1 2026 | Q1 2025 | Index | Q1 2026 | Q4 2025 | Index | Q3 2025 | Q2 2025 | Q1 2025 | |
Net interest income | 37 | 37 | 100 | 37 | 37 | 101 | 37 | 41 | 37 | |
Net fee and commission income | 18 | 18 | 103 | 18 | 20 | 92 | 19 | 18 | 18 | |
Other operating income | 6 | 6 | 103 | 6 | 4 | 159 | 5 | 13 | 6 | |
Total operating income | 62 | 61 | 101 | 62 | 61 | 102 | 62 | 72 | 61 | |
Operating costs | 54 | 52 | 104 | 54 | 52 | 103 | 57 | 51 | 52 | |
Profit before impairment charges | 8 | 10 | 84 | 8 | 9 | 95 | 5 | 22 | 10 | |
Impairment charges, net | -5 | 3 | - | 172 | -5 | 4 | -116 | 0 | -1 | 3 |
Operating profit | 13 | 7 | 186 | 13 | 4 | 293 | 4 | 23 | 7 | |
Investment portfolio earnings | 7 | 13 | 52 | 7 | 9 | 74 | 9 | 15 | 13 | |
Profit before tax | 20 | 20 | 98 | 20 | 14 | 144 | 14 | 38 | 20 | |
Loans and advances | 4,754 | 4,418 | 108 | 4,754 | 4,647 | 102 | 4,532 | 4,487 | 4,418 | |
Deposits and other debt | 6,243 | 6,505 | 96 | 6,243 | 6,121 | 102 | 6,108 | 6,720 | 6,505 | |
Mortgage credit | 2,225 | 2,169 | 103 | 2,225 | 2,217 | 100 | 2,203 | 2,181 | 2,169 | |
Number of FTE, end of period | 80 | 76 | 105 | 80 | 77 | 104 | 77 | 76 | 76 |
Corporate Banking activities generated operating income of DKK 50m in Q1 2026, down 4% on the previous quarter. Compared to Q4 2025, net interest income fell by DKK 1m to DKK 40m. Net fee and commission income was flat at DKK 7m compared to Q4 2025, while other operating income fell from DKK 4m in Q4 2025 to DKK 3m in Q1 2026.
Operating costs were DKK 12m in Q1 2026, an increase of DKK 1m relative to Q4 2025. Net impairment in Q1 2026 was a charge of DKK 4m compared to a reversal of DKK 6m in Q4 2025. The Bank remains of the view that its corporate client base continues to show solid and improving creditworthiness.
Operating profit for the first quarter of 2026 amounted to DKK 34m, a decrease of DKK 14m relative to Q4 2025. Investment portfolio earnings posted to the Corporate Banking segment in Q1 2026 were DKK 6m, DKK 2m lower than in the preceding quarter. The resulting profit before tax for Q1 2026 was DKK 40m, down DKK 16m compared to Q4 2025.
Corporate loans and advances decreased by DKK 4m (0%) in Q1 2026 to DKK 5,019m at 31 March 2026. Customer deposits increased by DKK 34m (up 1%) during Q1 2026 to DKK 4,869m. Brokered mortgage credit increased by DKK 264m (up 43%) to DKK 870m at 31 March 2026 compared to 31 December 2025.
Adjusted Income statement, Corporate Banking
DKKm | Q1 2026 | Q1 2025 | Index | Q1 2026 | Q4 2025 | Index | Q3 2025 | Q2 2025 | Q1 2025 |
Net interest income | 40 | 39 | 103 | 40 | 42 | 97 | 39 | 43 | 39 |
Net fee and commission income | 7 | 6 | 120 | 7 | 7 | 106 | 6 | 6 | 6 |
Other operating income | 3 | 4 | 62 | 3 | 4 | 66 | 3 | 8 | 4 |
Total operating income | 50 | 49 | 102 | 50 | 53 | 96 | 49 | 57 | 49 |
Operating costs | 12 | 11 | 108 | 12 | 12 | 106 | 10 | 11 | 11 |
Profit before impairment charges | 38 | 38 | 100 | 38 | 41 | 93 | 38 | 46 | 38 |
Impairment charges, net | 4 | 2 | 177 | 4 | -6 | -63 | -9 | 3 | 2 |
Operating profit | 34 | 36 | 95 | 34 | 47 | 71 | 47 | 43 | 36 |
Investment portfolio earnings | 6 | 12 | 56 | 6 | 9 | 73 | 8 | 13 | 12 |
Profit before tax | 40 | 47 | 85 | 40 | 56 | 72 | 56 | 56 | 47 |
Loans and advances | 5,019 | 4,855 | 103 | 5,019 | 5,023 | 100 | 5,068 | 5,210 | 4,855 |
Deposits and other debt | 4,869 | 3,802 | 128 | 4,869 | 4,835 | 101 | 4,726 | 3,687 | 3,802 |
Mortgage credit | 870 | 736 | 118 | 870 | 606 | 143 | 585 | 728 | 736 |
Number of FTE, end of period | 15 | 15 | 99 | 15 | 13 | 108 | 13 | 13 | 15 |
Trygd reported premium income of DKK 43m in Q1 2026, DKK 3m higher than in Q1 2025. In Q1 2026, claims were DKK 27m, flat compared to Q1 2025. Net income from investment activities were negative at DKK 1m in Q1 2026, down DKK 1m compared to Q1 2025. As a result, operating income was DKK 16m in Q1 2026 compared to DKK 14m in Q1 2025.
Operating costs were DKK 7m in Q1 2026, the same level seen in Q1 2025. As a result, Trygd reported a profit before tax for Q1 2026 of DKK 9m, up DKK 2m compared to Q1 2025.
Trygd continues to consolidate its market position as a provider of non-life insurance in the Faroe Islands. Trygd's ambition to increase its market share in its core business areas, together with a strengthened focus on pricing structure and overall market growth linked to developments in the Faroese economy, has driven an increase in premiums. As operating costs remain low, these developments contribute to an improvement in cost ratio.
Trygd's claims vary significantly from one period to the next due to the limited size of the Faroese insurance market as well the timing and severity of weather events, which adds volatility to the financial results.
Adjusted Income statement, Trygd
DKKm | Q1 2026 | Q1 2025 | Index | Q1 2026 | Q4 2025 | Index | Q3 2025 | Q2 2025 | Q1 2025 |
Premium income, net of reinsurance | 43 | 40 | 107 | 43 | 42 | 104 | 42 | 42 | 40 |
Claims, net of reinsurance | 27 | 27 | 100 | 27 | 22 | 123 | 25 | 20 | 27 |
Net insurance income | 17 | 14 | 121 | 17 | 20 | 83 | 17 | 22 | 14 |
Net income from investment activities | -1 | 0 | -1474 | -1 | 2 | -46 | 4 | 2 | 0 |
Operating income | 16 | 14 | 115 | 16 | 22 | 72 | 20 | 23 | 14 |
Operating costs | 7 | 7 | 99 | 7 | 7 | 101 | 7 | 7 | 7 |
Profit before tax | 9 | 7 | 132 | 9 | 15 | 59 | 14 | 17 | 7 |
Combined ratio | 80 | 87 | 80 | 72 | 78 | 67 | 87 | ||
Claims ratio | 61 | 66 | 61 | 52 | 59 | 48 | 66 | ||
Number of FTE, end of period | 21 | 23 | 94 | 21 | 21 | 102 | 21 | 21 | 23 |
Income statement
Note | DKK 1,000 | Group | Føroya Banki | ||
Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 | ||
3 | Interest income calculated using the effective interest method | 106,262 | 123,499 | 130,712 | 142,841 |
3 | Other interest income | 24,451 | 19,342 | ||
4 | Interest expenses | 36,375 | 44,632 | 36,375 | 44,632 |
Net interest income | 94,338 | 98,209 | 94,338 | 98,209 | |
5 | Dividends from shares and other investments Fee and commission income | 2,420 24,636 | 148 22,542 | 2,420 27,539 | 148 25,385 |
5 | Fee and commissions paid | 1,812 | 1,380 | 1,812 | 1,380 |
Net dividend, fee and commission income | 25,244 | 21,311 | 28,147 | 24,154 | |
Net interest and fee income | 119,582 | 119,520 | 122,485 | 122,363 | |
Insurance revenue Insurance service expenses Net return on investments backing insurance liabilities Net finance income or expense from insurance Other expenses | 46,120 29,484 -870 209 3,232 | 49,017 36,660 -747 576 1,465 | |||
Net insurance result | 12,742 | 10,720 | 0 | 0 | |
Interest and fee income and income from insurance activities, net | 132,324 | 130,240 | 122,485 | 122,363 | |
6 | Market value adjustments | 1,868 | 13,064 | 1,868 | 13,064 |
7 | Other operating income | 3,555 | 2,905 | 1,440 | 494 |
8 | Staff costs and administrative expenses | 66,459 | 62,880 | 63,993 | 60,667 |
Amortisation, depreciation and impairment charges | 2,208 | 2,139 | 2,149 | 2,067 | |
Other operating expenses | 88 | 440 | 88 | 440 | |
9 | Impairment charges on loans and advances etc. | -696 | 5,110 | -696 | 5,110 |
Income from investments accounted for under the equity method | 0 | 0 | 7,732 | 6,562 | |
Profit before tax | 69,688 | 75,640 | 67,991 | 74,200 | |
Tax | 13,778 | 14,711 | 12,080 | 13,271 | |
Net profit | 55,911 | 60,930 | 55,911 | 60,930 | |
Portion attributable to Shareholders of Føroya Banki P/F Net profit | 55,911 | 60,930 | 55,911 | 60,930 | |
55,911 | 60,930 | 55,911 | 60,930 | ||
EPS Basic for the perdiod, DKK* | 5.84 | 6.36 | 5.84 | 6.36 | |
EPS Diluted for the perdiod, DKK* | 5.84 | 6.36 | 5.84 | 6.36 | |
*Based on average number of shares outstanding.
Statement of comprehensive income - Føroya Banki
DKK 1,000 | Group | Føroya Banki | ||
Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 | |
Net profit | 55,911 | 310,427 | 55,911 | 310,427 |
Other comprehensive income | ||||
Total other comprehensive income | 0 | 0 | 0 | 0 |
Total comprehensive income | 55,911 | 310,427 | 55,911 | 310,427 |
Balance Sheet
Note | DKK 1,000 | Group | Føroya Banki | ||
March 31 2026 | Dec. 31 2025 | March 31 2026 | Dec. 31 2025 | ||
Assets | |||||
10 | Cash in hand and demand deposits w ith central banks | 3,265,753 | 3,249,492 | 3,237,615 | 3,236,393 |
9 | Amounts due from credit institutions and central banks | 220,032 | 239,179 | 220,032 | 239,179 |
9 | Loans and advances at fair value | 283,217 | 285,267 | 283,217 | 285,267 |
Loans and advances at amortised cost | 9,490,433 | 9,384,505 | 9,490,433 | 9,384,505 | |
Bonds at fair value | 1,102,536 | 1,106,209 | 897,048 | 900,434 | |
Shares, etc. | 274,908 | 280,011 | 166,815 | 170,731 | |
Assets under insurance contracts | 14,749 | 3,320 | 0 | 0 | |
Holdings in associates | 21,216 | 21,216 | 21,216 | 21,216 | |
Holdings in subsidiaries | 0 | 0 | 187,752 | 180,020 | |
Assets under pooled schemes and unit-linked investment contracts | 85,599 | 85,154 | 85,599 | 85,154 | |
Intangible assets | 4,011 | 4,415 | 311 | 466 | |
Total land and buildings | 104,974 | 106,139 | 104,974 | 106,139 | |
Domicile property | 52,860 | 52,961 | 52,860 | 52,961 | |
Domicile property (lease asset) | 52,114 | 53,177 | 52,114 | 53,177 | |
Other property, plant and equipment | 13,424 | 13,172 | 12,106 | 11,737 | |
Current tax assets | 52,223 | 61,341 | 52,223 | 61,341 | |
Deferred tax assets | 11,665 | 11,665 | 11,557 | 11,557 | |
Assets held for sale | 2,207 | 2,207 | 2,207 | 2,207 | |
Other assets | 88,344 | 49,445 | 88,280 | 47,990 | |
Prepayments | 4,047 | 31,979 | 3,066 | 30,210 | |
Total assets | 15,039,335 | 14,934,717 | 14,864,451 | 14,774,546 | |
Balance Sheet
Note | DKK 1,000 | Group | Føroya Banki | ||
March 31 2026 | Dec. 31 2025 | March 31 2026 | Dec. 31 2025 | ||
Shareholders' equity and liabilities | |||||
Liabilities other than provisions | |||||
Amounts due to credit institutions and central banks | 499,664 | 505,739 | 499,664 | 505,739 | |
Deposits and other debt | 11,095,838 | 10,948,209 | 11,111,808 | 10,956,570 | |
Deposits under pooled schemes and unit-linked investments contracts | 85,599 | 85,154 | 85,599 | 85,154 | |
Issued bonds at amortised cost | 935,362 | 903,790 | 935,362 | 903,790 | |
Liabilities under insurance contracts | 176,218 | 151,764 | 0 | 0 | |
Current tax liabilities | 81,719 | 67,942 | 70,220 | 58,140 | |
Other liabilities | 188,817 | 148,620 | 186,210 | 144,028 | |
Deferred income | 1,608 | 3,488 | 1,608 | 1,644 | |
Total liabilities other than provisions | 13,064,826 | 12,814,706 | 12,890,472 | 12,655,065 | |
Provisions for liabilities | |||||
Provisions for deferred tax | 530 | 530 | 0 | 0 | |
Provisions for losses on guarantees etc | 1,461 | 1,614 | 1,461 | 1,614 | |
Provisions for other liabilities | 2,776 | 2,624 | 2,776 | 2,624 | |
Total provisions for liabilities | 4,768 | 4,769 | 4,237 | 4,238 | |
Subordinated debt | |||||
Subordinated debt | 99,965 | 99,930 | 99,965 | 99,930 | |
Total liabilities | 13,169,559 | 12,919,405 | 12,994,675 | 12,759,234 | |
Equity | |||||
Share capital | 192,000 | 192,000 | 192,000 | 192,000 | |
Reserve, Equity Method | 0 | 0 | 24,623 | 16,891 | |
Revaluation reserve | 6,718 | 6,718 | 6,718 | 6,718 | |
Retained earnings | 1,671,059 | 1,614,595 | 1,646,435 | 1,597,704 | |
Proposed dividends | 0 | 202,000 | 0 | 202,000 | |
Total equity | 1,869,776 | 2,015,313 | 1,869,776 | 2,015,313 | |
Total liabilities and equity | 15,039,335 | 14,934,717 | 14,864,451 | 14,774,546 | |
Statement of changes in equity - Føroya Banki Group
Shareholders equity
DKK 1,000 | Share capital | Revaluation Reserve | Proposed dividends | Retained earnings | Total |
Shareholders' equity at January 1, 2026 | 192,000 | 6,718 | 202,000 | 1,614,595 | 2,015,313 |
Net profit | 0 | 55,911 | 55,911 | ||
Total comprehensive income | 0 | 0 | 55,911 | 55,911 | |
Dividends paid | -202,000 | 553 | -201,447 | ||
Shareholders' equity at March 31, 2026 | 192,000 | 6,718 | 0 | 1,671,059 | 1,869,776 |
DKK 1,000 | Share capital | Revaluation Reserve | Proposed dividends | Retained earnings | Total |
Shareholders' equity at January 1, 2025 | 192,000 | 6,718 | 350,000 | 1,527,319 | 2,076,037 |
Net profit | 202,000 | 86,317 | 288,317 | ||
Total comprehensive income | 0 | 202,000 | 86,317 | 288,317 | |
Dividends paid | -350,000 | 958 | -349,042 | ||
Shareholders' equity at December 31, 2025 | 192,000 | 6,718 | 202,000 | 1,614,595 | 2,015,313 |
DKK 1,000 | Share capital | Revaluation Reserve | Proposed dividends | Retained earnings | Total |
Shareholders' equity at January 1, 2025 | 192,000 | 6,718 | 350,000 | 1,527,319 | 2,076,037 |
Net profit | 0 | 60,930 | 60,930 | ||
Total comprehensive income | 0 | 60,930 | 60,930 | ||
Dividends paid | -350,000 | 958 | -349,042 | ||
Shareholders' equity at March 31, 2025 | 192,000 | 6,718 | 0 | 1,589,207 | 1,787,925 |
Statement of changes in equity - Føroya Banki P/F
Shareholders equity
DKK 1,000 | Share capital | Revaluation Reserve | Equity method reserve | Proposed dividends | Retained earnings | Total |
Shareholders' equity at January 1, 2026 | 192,000 | 6,718 | 16,891 | 202,000 | 1,597,704 | 2,015,313 |
Net profit | 7,732 | 0 | 48,179 | 55,911 | ||
Total comprehensive income | 0 | 7,732 | 0 | 48,179 | 55,911 | |
Dividends paid | -202,000 | 553 | -201,447 | |||
Shareholders' equity at March 31, 2026 | 192,000 | 6,718 | 24,623 | 0 | 1,646,435 | 1,869,776 |
DKK 1,000 | Share capital | Revaluation Reserve | Equity method reserve | Proposed dividends | Retained earnings | Total |
Shareholders' equity at January 1, 2025 | 192,000 | 6,718 | 0 | 350,000 | 1,527,319 | 2,076,037 |
Net profit | 16,891 | 202,000 | 69,426 | 288,317 | ||
Total comprehensive income | 0 | 16,891 | 202,000 | 69,426 | 288,317 | |
Dividends paid | -350,000 | 958 | -349,042 | |||
Shareholders' equity at December 31, 2025 | 192,000 | 6,718 | 16,891 | 202,000 | 1,597,704 | 2,015,313 |
DKK 1,000 | Share capital | Revaluation Reserve | Equity method reserve | Proposed dividends | Retained earnings | Total |
Shareholders' equity at January 1, 2025 | 192,000 | 6,718 | 0 | 350,000 | 1,527,319 | 2,076,037 |
Net profit | 0 | 60,930 | 60,930 | |||
Total comprehensive income | 0 | 0 | 0 | 60,930 | 60,930 | |
Dividends paid | -350,000 | 958 | -349,042 | |||
Shareholders' equity at March 31, 2025 | 192,000 | 6,718 | 0 | 0 | 1,589,207 | 1,787,925 |
Capital and Solvency - P/F Føroya Banki
Solvency DKK 1,000 | March 31 2026 | Dec. 31 2025 |
Tier 1 capital | 1,797,885 | 1,799,971 |
Total capital | 1,897,850 | 1,899,901 |
Risk-w eighted items not included in the trading portfolio | 6,120,827 | 6,422,812 |
Risk-w eighted items w ith market risk etc. | 217,334 | 237,353 |
Risk-w eighted items w ith operational risk | 716,010 | 1,072,224 |
Total risk-w eighted items | 7,054,171 | 7,732,389 |
CET 1 capital ratio | 25.5% | 23.3% |
Tier 1 capital ratio | 25.5% | 23.3% |
Total capital ratio | 26.9% | 24.6% |
Total capital, incl. MREL capital, ratio | 40.2% | 36.3% |
Shareholders' equity | ||
Share capital | 192,000 | 192,000 |
Reserves | 31,341 | 23,609 |
Net profit | 55,911 | 288,317 |
Retained earnings, previous years | 1,596,966 | 1,518,905 |
Shareholders' equity, before deduction of holdings of ow n shares | 1,876,217 | 2,022,831 |
Deduction of ordinary dividend | 0 | 202,000 |
Deduction of net profit for Q1-Q3 | 55,911 | 0 |
Deduction due to excess holdings of shares in the financial sector | 1,866 | 0 |
Deduction of holdings of ow n shares | 6,441 | 7,519 |
Deduction of MLC regarding Non Performing Exposures | 755 | 242 |
Deduction of intangible assets | 311 | 466 |
Deduction of deferred tax assets | 11,557 | 11,557 |
Deduction regarding prudent valuation of financial instruments | 1,492 | 1,077 |
CET 1 capital | 1,797,885 | 1,799,971 |
Tier 1 capital | 1,797,885 | 1,799,971 |
Subordinated loan capital | 99,965 | 99,930 |
Total capital | 1,897,850 | 1,899,901 |
MREL capital | 935,362 | 903,790 |
Total capital, incl. MREL capital | 2,833,213 | 2,803,691 |
The Føroya Banki Group holds a license to operate as a bank and is therefore subject to a capital requirement under the Faroese Financial Business Act and to CRR. The Faroese provisions on capital requirements apply to both the Parent Company and the Group. The capital requirement provisions stipulate a minimum capital of 8% of the identified risks. A detailed body of rules determines the calculation of capital as w ell as risks (risk-w eighted items). The capital comprises CET 1 capital and subordinated loan capital. The CET 1 capital corresponds to the carrying amount of equity, after deductions of holdings of ow n shares, tax assets and other minor deductions.
Cash flow statement - Føroya Banki Group
DKK 1,000 | Group Q1 2026 | Group Full year 2025 |
Cash flow from operations | ||
Profit before tax | 69,688 | 355,875 |
Amortisation and impairment charges for intangible assets | 154 | 618 |
Interest expense on leasing liabilities | 465 | -1,971 |
Depreciation and impairment charges of tangible assets | 2,363 | 9,304 |
Impairment of loans and advances/guarantees | 1,453 | -1,833 |
Paid tax | 0 | -85,771 |
Other non-cash operating items | 3,073 | -59,123 |
Total | 76,732 | 219,071 |
Changes in operating capital | ||
Change in loans at fair value | 0 | 30,289 |
Change in loans at amortised cost | -107,381 | -615,578 |
Change in holding of bonds | -2,577 | 669,748 |
Change in holding of shares | 10,044 | 15,407 |
Change in deposits | 147,630 | 944,861 |
Due to credit institutions and central banks | 8,210 | -260,573 |
Change in other assets / liabilities | 13,353 | -70,282 |
Assets/liabilities under insurance contracts | 13,025 | -5,255 |
Prepayments | 26,052 | 2,143 |
Cash flow from operations | 185,087 | 929,832 |
Cash flow from investing activities | ||
Divestment of sector institution, net of cash | 0 | 29,174 |
Dividends received | 2,420 | 21,077 |
Acquisition of intangible assets | 0 | -950 |
Acquisition of tangible assets | -1,200 | -2,154 |
Sale of tangible assets | 0 | 5,030 |
Cash flow from investing activities | 1,220 | 52,177 |
Cash flow from financing activities | ||
Change in loans from central banks and credit institutions | -14,286 | -57,143 |
Issued bonds at amortised cost | 244,062 | 250,000 |
Redemption of issued bonds at amortised cost | -216,138 | -340,000 |
Payment of dividends | -202,000 | -350,000 |
Payment of dividends, ow n shares | 553 | 958 |
Principal portion of lessee lease payments | -1,386 | -4,255 |
Cash flow from financing activities | -189,194 | -500,439 |
Cash flow | -2,887 | 481,570 |
Cash in hand and demand deposits w ith central banks, and due from | ||
Credit institutions, etc. at the beginning of the year | 3,488,671 | 3,007,102 |
Cash f low | -2,887 | 481,570 |
Cash and due etc. | 3,485,785 | 3,488,671 |
Cash and due etc. | ||
Cash in hand and demand deposits w ith central banks | 3,265,753 | 3,249,492 |
Due from credit institutions, etc. | 220,032 | 239,179 |
Total | 3,485,785 | 3,488,671 |
Note 1 Significant accounting policies
The consolidated financial statements for the first three months of 2026 have been prepared in accordance with IAS 34 "Interim Financial Reporting" supplemented by additional Faroese disclosure requirements for quarterly reports of listed financial companies and in accordance with the financial reporting requirements of the Nasdaq exchange in Copenhagen. The financial statements of the Parent Company, P/F Føroya Banki, have been prepared in accordance with the Faroese Financial Business Act and with the executive order on financial reports of credit institutions etc. of the Danish FSA as applied in the Faroe Islands and in Denmark.
The application of IAS 34 means that the disclosure of figures is less detailed than the disclosure in a full annual report and that the valuation principles laid down by the international financial reporting standards (IFRS) are applied.
The Group's significant accounting policies are consistent with those applied in the Annual Report 2025. The Annual Report 2025 provides a full description of the Group's significant accounting policies.
Future financial reporting standards and interpretations
The International Accounting Standards Board (IASB) has issued a number of new accounting standards (IAS and IFRS) and interpretations (IFRIC) that have not yet entered into force. Please refer to the Annual Report 2025 for further information.
Accounting estimates
The measurement of certain assets and liabilities requires management to estimate how future events will impact on the value of such assets and liabilities. Estimates of significance to the financial reporting are made in connection with determining the impairment of loans and advances, the fair value of unlisted financial instruments, provisions, business acquisitions etc. Estimates are based on assumptions that management considers appropriate, but which are inherently uncertain.
The most significant estimates that management makes in applying the Group's accounting policies and the most important uncertainty affecting estimates made when preparing the condensed interim report are unchanged from the estimates made in connection with the preparation of the Annual Report 2025 and the uncertainties prevailing at that time.
Determination of fair value
The fair value of financial assets is measured based on quoted market prices of financial instruments traded in active markets. If an active market exists, fair value is based on the most recently observed market price at the balance sheet date.
If a financial instrument is quoted in a market that is not active, the Group bases its measurement on the most recent transaction price. Adjustment is made for subsequent changes in market conditions, for instance by including transactions in similar financial instruments that are assumed to be motivated by normal business considerations.
If no active market for standard and simple financial instruments, such as interest rate and currency swaps and unlisted bonds, exists, generally accepted valuation techniques rely on market-based parameters for measuring fair value. The results of calculations made based on valuation techniques are often estimates because exact values cannot be determined from market observations. Consequently, additional parameters, such as liquidity risk and counterparty risk, are sometimes used for measuring fair value.
Note
Notes - Føroya Banki Group
Non-life
2 | Operating segments Q1 2026, (DKK 1,000) | Banking | Insurance 1 | Elimination | Group | |||
Personal | Corporate | Other | Total | Faroe Islands | Total | |||
External interest income, Net | 42,833 | 49,477 | 2,028 | 94,338 | 0 | 94,338 | ||
Internal interest | 2,816 | -2,816 | 0 | 0 | 0 | |||
Net interest income | 45,648 | 46,661 | 2,028 | 94,338 | 0 | 94,338 | ||
Net dividends and fee income | 19,526 | 7,607 | 1,015 | 28,147 | 0 | -2,903 | 25,244 | |
Net insurance result | 0 | 0 | 107 | 107 | 8,717 | 3,918 | 12,742 | |
Other income | 689 | -2,311 | 7,424 | 5,802 | 0 | -379 | 5,423 | |
Total income | 65,863 | 51,957 | 10,573 | 128,394 | 8,717 | 636 | 137,747 | |
Total operating expenses | 20,831 | 5,597 | 41,691 | 68,119 | 0 | 636 | 68,754 | |
of which depreciation and amortisation | 245 | 0 | 1,963 | 2,208 | 0 | 2,208 | ||
Profit before impairment charges on loans | 45,033 | 46,360 | -31,118 | 60,275 | 8,717 | 0 | 68,992 | |
Impairment charges | -4,577 | 4,679 | -798 | -696 | 0 | -696 | ||
Profit before tax | 49,610 | 41,681 | -30,320 | 60,971 | 8,717 | 0 | 69,688 | |
Total assets | 5,019,154 | 4,754,495 | 4,926,388 | 14,700,037 | 339,298 | 15,039,335 | ||
of which Loans and advances | 4,754,495 | 5,019,154 | 9,773,649 | 9,773,649 | ||||
Total liabilities | 6,242,816 | 4,868,992 | 1,866,139 | 12,977,948 | 191,611 | 13,169,559 | ||
of which Deposits | 6,242,816 | 4,868,992 | 11,111,808 | -15,970 | 11,095,838 | |||
of which Insurance liabilities | 7 | 176,210 | 176,218 |
1) Please refer to the income statement for a break down of the net insurance result including significant insurance expences.
Operating segments Q1 2025, (DKK 1,000)
Banking
Non-life
Insurance 1 Elimination Group
Personal | Corporate | Other | Total | Faroe Islands | Total | ||
External interest income, Net | 40,770 | 51,155 | 6,284 | 98,209 | 0 | 98,209 | |
Internal interest | 7,518 | -7,518 | 0 | 0 | 0 | ||
Net interest income | 48,288 | 43,638 | 6,284 | 98,209 | 0 | 98,209 | |
Net dividends and fee income | 17,880 | 6,010 | 263 | 24,154 | 0 | -2,843 | 21,311 |
Net insurance result | 0 | 0 | 529 | 529 | 6,589 | 3,602 | 10,720 |
Other income | 1,139 | 2,486 | 19,159 | 22,784 | 0 | -6,815 | 15,969 |
Total income | 67,308 | 52,134 | 26,235 | 145,676 | 6,589 | -6,056 | 146,209 |
Total operating expenses | 19,216 | 5,417 | 40,320 | 64,954 | 0 | 506 | 65,459 |
of which depreciation and amortisation | 210 | 0 | 1,929 | 2,139 | 0 | 2,139 | |
Profit before impairment charges on loans | 48,091 | 46,717 | -14,085 | 80,723 | 6,589 | -6,562 | 80,750 |
Impairment charges | 2,828 | 2,385 | -103 | 5,110 | 0 | 5,110 | |
Profit before tax | 45,263 | 44,332 | -13,982 | 75,613 | 6,589 | -6,562 | 75,640 |
Total assets | 4,860,256 | 4,412,113 | 5,227,772 | 14,500,141 | 300,318 | 14,800,460 | |
of which Loans and advances | 4,412,113 | 4,860,256 | 9,272,369 | 9,272,369 | |||
Total liabilities | 6,511,007 | 3,794,937 | 2,496,765 | 12,802,708 | 196,556 | 12,999,264 | |
of which Deposits | 6,511,007 | 3,794,937 | 10,305,944 | -7,185 | 10,298,759 | ||
of which Insurance liabilities | 3,015 | 179,264 | 182,278 |
1) Please refer to the income statement for a break down of the net insurance result including significant insurance expences.
Note
Føroya Banki Group - Geografical revenue information
Additions to tangible
Additions to
2 Geografical segments, (DKK 1,000)
Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 | |
Faroe Islands Greenland | 122,982 14,765 | 131,125 15,084 | 108,820 34,803 | 113,718 34,661 | 1,236 0 | 387 0 | -404 0 | 3,596 0 |
Total | 137,747 | 146,209 | 143,623 | 148,380 | 1,236 | 387 | -404 | 3,596 |
(cont'd)
Total income Non current assets
assets
intangible assets
Impairments
Investment portfolio earnings
Geografical segments, (DKK 1,000) | Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 |
Faroe Islands Greenland | 5,168 -5,864 | 8,420 -3,310 | 1,868 0 | 13,064 0 |
Total | -696 | 5,110 | 1,868 | 13,064 |
Income from external customers are divided into activities related to the customers's domiciles. Assets include all non-current assets, i.e. intangible assets, material assets, investment properties and holdings in associates.
Total income Profit before tax Tax FTE
Operational segments, (DKK 1,000) | Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 |
Faroe Islands, Banking, Other | 110,240 | 120,405 | 43,604 | 52,030 | 8,362 | 10,109 | 166 | 163 |
Faroe Islands, Insurance | 12,742 | 10,720 | 12,742 | 10,720 | 1,569 | 1,186 | 21 | 23 |
Greenland, Banking | 14,765 | 15,084 | 13,342 | 12,890 | 3,846 | 3,416 | 20 | 18 |
Total | 137,747 | 146,209 | 69,688 | 75,640 | 13,778 | 14,711 | 207 | 204 |
The geographical distribution of the Group's income and assets must be disclosed in accordance with IFRS and does not reflect the management operating segments of the Group though the financial development in Greenland and Faroe Islands are measured separately. Management assesses that the operating segments provide a more meaningful description of the Group's activities.
Note | DKK 1,000 | Group | Føroya Banki | ||
Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 | ||
3 | Interest income Credit institutions and central banks Loans and advances Bonds Total derivatives of w hich: Currency contracts Interest rate contracts Other interest income | 14,493 112,991 2,675 423 -6 429 130 | 17,593 118,191 4,052 2,544 -10 2,554 462 | 14,493 112,991 2,675 423 -6 429 130 | 17,593 118,191 4,052 2,544 -10 2,554 462 |
Total interest income | 130,712 | 142,841 | 130,712 | 142,841 | |
4 | Interest expenses Credit institutions and central banks Deposits Issued bonds Subordinated debt Lease liabilities Other interest expenses | 3,617 18,505 12,091 1,694 465 2 | 6,890 25,469 10,699 1,224 493 -143 | 3,617 18,505 12,091 1,694 465 2 | 6,890 25,469 10,699 1,224 493 -143 |
Total interest expenses | 36,375 | 44,632 | 36,375 | 44,632 | |
5 | Net fee and commission income Fee and commission income Securities trading and custody accounts Credit transfers Loan commissions Guarantee commissions Other fees and commissions | 4,551 5,495 979 5,628 7,982 | 4,367 5,137 982 5,737 6,319 | 4,551 5,495 979 5,628 10,885 | 4,367 5,137 982 5,737 9,162 |
Total fee and commission income | 24,636 | 22,542 | 27,539 | 25,385 | |
Fee and commissions paid Securities trading and custody accounts | 1,812 | 1,380 | 1,812 | 1,380 | |
Net fee and commission income | 22,824 | 21,162 | 25,727 | 24,006 | |
6 | Market value adjustments | ||||
Loans and advances | -2,051 | -2,240 | -2,051 | -2,240 | |
Bonds | -3,387 | 4,762 | -3,387 | 4,762 | |
Shares | 2,915 | 6,658 | 2,915 | 6,658 | |
Foreign exchange | 2,841 | 2,239 | 2,841 | 2,239 | |
Total derivatives of w hich: | 1,550 | 1,645 | 1,550 | 1,645 | |
Currency Swaps | -840 | 840 | -840 | 840 | |
Interest Swaps | 2,040 | 529 | 2,040 | 529 | |
Other contracts | 350 | 276 | 350 | 276 | |
Assets under pooled schemes | -1,870 | -2,703 | -1,870 | -2,703 | |
Deposits in pooled schemes | 1,870 | 2,703 | 1,870 | 2,703 | |
Total market value adjustments | 1,868 | 13,064 | 1,868 | 13,064 | |
Note | DKK 1,000 | Group | Føroya Banki | ||
Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 | ||
7 | Other operating income Profit on sale of properties Other income | 0 3,555 | 0 2,905 | 0 1,440 | 0 494 |
Total other operating income | 3,555 | 2,905 | 1,440 | 494 | |
8 | Staff costs and administrative expenses Staff costs: Salaries Pensions Social security expenses | ||||
31,635 | 29,463 | 28,891 | 26,654 | ||
4,687 | 4,530 | 4,083 | 3,953 | ||
5,262 | 4,692 | 4,767 | 4,169 | ||
Total staff costs | 41,584 | 38,684 | 37,741 | 34,776 | |
Administrative expenses: IT Marketing etc Education etc Other expenses | 17,252 | 16,818 | 16,185 | 15,680 | |
3,085 | 2,298 | 2,842 | 2,073 | ||
827 | 1,016 | 719 | 800 | ||
9,342 | 8,736 | 6,507 | 7,338 | ||
Total administrative expenses | 30,507 | 28,869 | 26,252 | 25,891 | |
Total staff costs | 41,584 | 38,684 | 37,741 | 34,776 | |
Total administrative expenses | 30,507 | 28,869 | 26,252 | 25,891 | |
Staff and administrative costs incl. under the item "Insurance service expenses" | -5,631 | -4,673 | 0 | 0 | |
Total staff costs and administrative expenses | 66,459 | 62,880 | 63,993 | 60,667 | |
Number of employees | |||||
Average number of full-time employees in the period | 203 | 206 | 174 | 176 | |
Executive remuneration: | |||||
Board of Directors | 585 | 585 | 585 | 585 | |
Executive Board: | |||||
Salaries | 829 | 752 | 829 | 752 | |
- less fees received from directorships | 45 | 90 | 45 | 90 | |
The Bank's expense, salaries | 784 | 662 | 784 | 662 | |
Pension | 79 | 113 | 79 | 113 | |
Total executive board | 863 | 774 | 863 | 774 | |
Total executive remuneration | 1,448 | 1,359 | 1,448 | 1,359 | |
Note | DKK 1,000 | Group | Føroya Banki | ||
Q1 2026 | Q1 2025 | Q1 2026 | Q1 2025 | ||
9 | Impairment charges on loans and advances and provisions for guarantees etc. Impairment charges and provisions at 31 December 2025 New and increased impairment charges and provisions Reversals of impairment charges and provisions Written-off, previously impaired Interest income on impaired loans | 179,289 59,048 56,170 0 369 | 179,881 75,771 69,469 147 909 | 179,289 59,048 56,170 0 369 | 179,881 75,771 69,469 147 909 |
Total impairment charges and provisions at 31 March 2026 | 182,168 | 186,037 | 182,168 | 186,037 | |
Impairment charges and provisions recognised in the income statement Loans and advances at amortised cost Loans and advances at fair value Guarantiees and loan commitments Assets held for sale | 165 230 -1,091 0 | 7,273 -2,900 737 0 | 165 230 -1,091 0 | 7,273 -2,900 737 0 | |
Total individual impairment charges and provisions | -696 | 5,110 | -696 | 5,110 | |
Stage 1 impairment charges Stage 1 impairment charges etc. at 31 December 2025 New and increased Stage 1 impairment charges | 102,561 42,899 35,739 | 78,972 34,284 45,160 | 102,561 42,899 35,739 | 78,972 34,284 45,160 | |
Reversals, net of Stage 1 impairment charges | 109,721 | 68,096 | 109,721 | 68,096 | |
Stage 1 impairment charges at 31 March 2026 Total net impact recognised in the income statement | 7,160 | -10,877 | 7,160 | -10,877 | |
Stage 2 impairment charges Stage 2 impairment charges etc. at 31 December 2025 New and increased impairment charges | 25,851 9,787 10,714 | 32,571 27,995 16,530 | 25,851 9,787 10,714 | 32,571 27,995 16,530 | |
Reversals, net of impairment charges | 24,923 | 44,035 | 24,923 | 44,035 | |
Stage 2 impairment charges at 31 March 2026 Total net impact recognised in the income statement | -928 | 11,465 | -928 | 11,465 | |
Weak Stage 2 Weak Stage 2 impairment charges etc. at 31 December 2025 New and increased impairment charges | 19,288 3,892 3,308 | 6,331 4,252 3,659 | 19,288 3,892 3,308 | 6,331 4,252 3,659 | |
Reversals, net of impairment charges | 19,871 | 6,923 | 19,871 | 6,923 | |
Weak Stage 2 impairment charges at 31 March 2026 | 584 | 592 | 584 | 592 | |
DKK 1.000 | Group Q1 2026 | Q1 2025 | Føroya Banki Q1 2026 | Q1 2025 |
Stage 3 impairment charges | ||||
Stage 3 impairment charges etc. at 31 December 2025 | 56,450 | 60,452 | 56,450 | 60,452 |
New and increased impairment charges | 35,909 | 7,831 | 35,909 | 7,831 |
Reversals of impairment charges | 9,153 | 3,446 | 9,153 | 3,446 |
Written-off, previously impaired | 1,827 | 147 | 1,827 | 147 |
Write-offs charged directly to the income statement | 337 | 0 | 337 | 0 |
Received on claims previously written off | 2,149 | 284 | 2,149 | 284 |
Interest income on impaired loans | 3,105 | 909 | 3,105 | 909 |
Stage 3 impairment charges at 31 March 2026 | 81,379 | 64,690 | 81,379 | 64,690 |
Total net impact recognised in the income statement | 21,840 | 3,192 | 21,840 | 3,192 |
Purchased credit-impaired assets included in stage 3 above | ||||
Purchased credit-impaired assets at 31 December 2025 | 941 | 1,096 | 941 | 1,096 |
Reversals of impairment charges | 941 | 29 | 941 | 29 |
Purchased credit-impaired assets at 31 March 2026 | 0 | 1,067 | 0 | 1,067 |
Reclassified to Assets in disposal groups classified as held for sale | ||||
Provisions for guarantees and undraw n credit lines | ||||
Individual provisions at 31 December 2025 | 2,552 | 1,555 | 2,552 | 1,555 |
New and increased provisions | 554 | 1,410 | 554 | 1,410 |
Reversals of provisions | 1,645 | 672 | 1,645 | 672 |
Provisions for guarantees etc at 31 March 2026 | 1,461 | 2,292 | 1,461 | 2,292 |
Total net impact recognised in the income statement | -1,091 | 737 | -1,091 | 737 |
Provisions for guarantees and undraw n credit lines | ||||
Stage 1 provisions | 985 | 1,859 | 985 | 1,859 |
Stage 2 provisions | 394 | 143 | 394 | 143 |
Weak Stage 2 provisions | 0 | 0 | 0 | 0 |
Stage 3 provisions | 82 | 290 | 82 | 290 |
Provisions for guarantees etc at 31 March 2026 | 1,461 | 2,292 | 1,461 | 2,292 |
Note 9
(cont'd)
Note | DKK 1,000 | Group | Føroya Banki | ||
March 31 2026 | Dec. 31 2025 | March 31 2026 | Dec. 31 2025 | ||
10 | Due from credit institutions etc. specified by maturity | ||||
On demand | 220,032 | 239,179 | 220,032 | 239,179 | |
Total due from credit institutions etc. | 220,032 | 239,179 | 220,032 | 239,179 | |
11 | Contingent liabilities | ||||
Guarantees | |||||
Financial guarantees | 188,889 | 196,594 | 188,889 | 196,594 | |
Mortgage finance guarantees | 321,824 | 321,593 | 321,824 | 321,593 | |
Registration and remortgaging guarantees | 328,745 | 68,039 | 380,058 | 124,771 | |
Other garantees | 67,815 | 66,707 | 195,493 | 201,403 | |
Total guarantees | 907,273 | 652,932 | 1,086,264 | 844,360 | |
12 Assets deposited as collateral
At March 31 2026 the Group had deposited cash amounting to DKK 24.8m (Dec. 31 2025 30.9m) w ith Danmarks Nationalbank (the Danish Central Bank) primarily in connection w ith cash deposits. The Group had deposited cash at a total market value of DKK 11.8m (Dec. 31 2025: DKK 12.0m) in connection w ith negative market value of derivatives.
Statement by the Executive Board and the Board of DirectorsWe have today considered and approved P/F Føroya Banki's interim report for the first three months to 31 March 2026.
The consolidated financial statements for the first three months to 31 March 2026 have been prepared in accordance with IAS 34, Interim Financial Reporting as adopted by the EU, while the interim financial statements of the Parent Company have been prepared in accordance with the Faroese Financial Business Act. Furthermore, the Interim Report has been prepared in accordance with additional Faroese disclosure requirements for interim reports of listed financial companies and in accordance with the financial reporting requirements of Nasdaq Copenhagen.
The interim financial statements have not been audited or reviewed.
We consider the accounting policies applied to be appropriate, such that the Interim Financial Report gives a true and fair view of the Group's and the Parent Company's assets, shareholders' equity and liabilities and financial position at 31 March 2026, and of the results of the Group's and the Parent Company's operations and the Group's and Parent Company's cash flows for the first three months ended 31 March 2026.
In addition, we consider the Management's report to give a fair presentation of the development in the Group's activities and financial affairs, the profit for the period and the Group's financial position, as well as a description of the significant risks and elements of uncertainty that may affect the Group.
Tórshavn, 30 April 2026
Executive Board
Turið F. Arge
CEO
Board of Directors | ||
Birgir Durhuus Chair | Annfinn Vitalis Hansen Vice chair | Kristian Reinert Davidsen |
Marjun Hanusardóttir Tom Ahrenst Árni Tór Rasmussen
Oliver Granhøj Kenneth M. Samuelsen Svend Jacobsen
Contact details
Head OfficeP/F Føroya Banki Oknarvegur 5
P.O. Box 3048
FO-110 Tórshavn Faroe Islands
Phone: +298 330 330
E-mail: kundi@bankin.fo https://www.foroyabanki.fo
P/F skr. nr. 10, Tórshavn SWIFT: FIFB FOTX
Føroya Banki is a limited liability company incorporated and domiciled in the Faroe Islands.
The company is listed on Nasdaq Copenhagen.
IR contact
Arnhold Olsen
E-mail: ao@bankin.fo Tel. +298 330 330
BranchesFaroe Islands - Føroya Banki Tórshavn
Oknarvegur 5
100 Tórshavn
Phone: +298 330 330
Miðvágur
Jatnavegur 26
370 Miðvágur
Phone: +298 330 330
Klaksvík
Við Sandin 12
700 Klaksvík
Phone: +298 330 330
Saltangará
Heiðavegur 13
600 Saltangará
Phone: +298 330 330
Tvøroyri
Sjógøta 2
800 Tvøroyri
Phone: +298 330 330
Customer Service
Oknarvegur 5
100 Tórshavn
Phone: +298 330 330
Corporate Banking
Oknarvegur 5
100 Tórshavn
Phone: +298 330 330
Markets
Oknarvegur 5
100 Tórshavn
Phone: +298 330 330
Ungdómsbankin
Oknarvegur 5
100 Tórshavn
Phone: +298 330 330
Greenland - Bankivik Personal Banking
Qullilerfik 2
3900 Nuuk
Phone: +299 34 79 00
Corporate Banking
Qullilerfik 2
3900 Nuuk
Phone: +299 34 79 00
Interim Report Q1 2026
28