Fsroya Banki
Interim Report
Q3 2025
ContentsMANAGEMENT'S REPORT
Financial highlights and ratios 3
Financial review 4
Q3 2025 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 2025 7
Adjusted results… 8
Segments 9
Personal Banking 10
Corporate Banking 11
Insurance: Trygd 12
FINANCIAL STATEMENTS
Income statement 13
Balance sheet 15
Statement of capital 17
Capital and solvency 19
Cash flow statement 20
Notes to the financial statements 21
Statement by the Executive Board and the Board of Directors 28
CONTACT DETAILS 29
Financial highlights and ratios - Føroya Banki Group
Highlights DKK 1,000 | Q1-Q3 2025 | Q1-Q3 2024 | Index 25 / 24 | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
Net interest income Dividends from shares and other investments Net fee and commision income | 293,745 14,407 63,926 | 339,232 11,997 58,237 | 87 110 | 94,386 0 22,125 | 101,149 14,259 20,639 | 98,209 148 21,162 | 103,019 0 20,515 | 111,609 0 19,354 |
Net interest and fee income | 372,078 | 409,466 | 91 | 116,511 | 136,047 | 119,520 | 123,534 | 130,963 |
Net insurance result | 47,464 | 40,284 | 118 | 13,447 | 23,297 | 10,720 | 7,463 | 18,450 |
Interest and fee income and income from insurance activities, net | 419,543 | 449,750 | 93 | 129,958 | 159,344 | 130,240 | 130,997 | 149,414 |
Market value adjustments | 31,293 | 33,287 | 94 | 8,139 | 10,090 | 13,064 | 12,056 | 26,442 |
Other operating income | 12,577 | 7,806 | 161 | 2,990 | 6,682 | 2,905 | 1,889 | 3,092 |
Staff costs and administrative expenses | 192,369 | 182,440 | 105 | 67,027 | 62,462 | 62,880 | 65,929 | 62,476 |
Impairment charges on loans and advances etc. | -1,636 | 10,328 | -8,507 | 1,761 | 5,110 | -11,400 | -5,619 | |
Net profit | 217,675 | 238,084 | 91 | 63,679 | 93,067 | 60,930 | 72,342 | 96,047 |
Loans and advances | 9,598,042 | 9,072,315 | 106 | 9,598,042 | 9,694,764 | 9,270,369 | 9,086,392 | 9,072,315 |
Bonds at fair value | 1,492,287 | 1,348,484 | 111 | 1,492,287 | 1,496,232 | 1,741,261 | 1,757,200 | 1,348,484 |
Intangible assets | 4,591 | 5,558 | 83 | 4,591 | 4,834 | 4,679 | 5,084 | 5,558 |
Assets held for sale | 2,207 | 0 | 2,207 | 2,207 | 2,207 | 2,207 | 0 | |
Total assets | 15,170,186 | 14,055,478 | 108 | 15,170,186 | 14,636,771 | 14,800,460 | 14,511,644 | 14,055,478 |
Amounts due to credit institutions and central banks | 837,987 | 962,792 | 87 | 837,987 | 815,064 | 801,355 | 823,455 | 962,792 |
Issued bonds at amortised cost | 901,052 | 984,002 | 92 | 901,052 | 898,966 | 803,231 | 981,190 | 984,002 |
Deposits and other debt | 10,803,028 | 9,353,549 | 115 | 10,803,028 | 10,382,526 | 10,298,759 | 10,003,348 | 9,353,549 |
Total shareholders' equity | 1,944,670 | 2,003,695 | 97 | 1,944,670 | 1,880,992 | 1,787,925 | 2,076,037 | 2,003,695 |
Ratios and key figures | Sept. 30 2025 | Sept. 30 2024 | Sept. 30 2025 | June 30 2025 | March 31 2025 | Dec. 31 2024 | Sept. 30 2024 | |
Solvency | ||||||||
Total capital, incl. MREL capital, ratio, % | 36.6 | 37.9 | 36.6 | 35.9 | 36.0 | 36.3 | 37.9 | |
Total capital ratio, % | 24.5 | 26.5 | 24.5 | 24.0 | 24.9 | 25.2 | 26.5 | |
Tier 1 capital ratio, % | 23.1 | 25.1 | 23.1 | 22.7 | 23.5 | 23.8 | 25.1 | |
CET 1 capital | 23.1 | 25.1 | 23.1 | 22.7 | 23.5 | 23.8 | 25.1 | |
RWA, DKK mill | 7,412 | 6,993 | 7,412 | 7,545 | 7,271 | 7,180 | 6,993 | |
Profitability Return on shareholders' equity after tax, % | 10.8 | 12.4 | 3.3 | 5.1 | 3.2 | 3.5 | 4.9 | |
Cost / income, % Cost / income, % (excl. value adjustm. and impairments) Return on assets | 42.2 45.6 1.4 | 40.5 41.1 1.7 | 43.0 52.1 0.4 | 36.6 37.7 0.6 | 48.3 49.2 0.4 | 39.6 51.8 0.5 | 33.2 42.7 0.7 | |
Market risk | ||||||||
Interest rate risk, % | 0.8 | 1.0 | 0.8 | 0.9 | 1.2 | 1.2 | 1.0 | |
Foreign exchange position, % Foreign exchange risk, % | 0.3 0.0 | 0.8 0.0 | 0.3 0.0 | 0.9 0.0 | 0.6 0.0 | 0.8 0.0 | 0.8 0.0 | |
Liquidity | ||||||||
Liquidity Coverage Ratio (LCR), % | 294.5 | 302.2 | 294.5 | 259.7 | 261.1 | 337.4 | 302.2 | |
Net Stable Funding Ratio. (NSFR), % | 163.4 | 156.6 | 163.4 | 158.3 | 151.0 | 154.5 | 156.6 | |
Credit risk | 5.6 4.9 1.7 0.0 | 2.1 4.5 1.9 0.1 | -1.0 4.9 1.7 -0.1 | 4.6 5.2 1.8 0.0 | 2.0 5.2 1.8 0.0 | 0.2 4.4 1.8 -0.1 | 0.5 4.5 1.9 -0.1 | |
Change in loans and advances, % Gearing of loans and advances Impairment and provisioning ratio, end of period, % Write-off and provisioning ratio, % | ||||||||
Shares Earnings per share after tax (nom. DKK 20), DKK | 22.7 | 24.9 | 6.7 | 9.7 | 6.4 | 7.6 | 10.0 | |
Market price per share (nom. DKK 20), DKK | 195.0 | 152.0 | 195.0 | 188.0 | 171.0 | 162.0 | 152.0 | |
Book value per share (nom. DKK 20), DKK | 203.1 | 209.3 | 203.1 | 196.5 | 186.8 | 216.8 | 209.3 | |
Other Number of full-time employees, end of period | 202 | 206 | 202 | 199 | 204 | 207 | 206 | |
"We're pleased to present a third quarter profit of DKK 80m before tax, a slight improvement on our original profit guidance. The positive performance was driven by strong customer activity and positive momentum across several business areas. Costs were in line with our full-year guidance, and we noted with satisfaction that our customers are generally financially robust, as is reflected in a reversal of impairment charges for the quarter. We maintain our guidance for the rest of the year," said Føroya Banki CEO Turið F. Arge.
Q3 2025 Highlights
Adjusted Income statement, Group
DKKm | Q1-Q3 2025 | Q1-Q3 2024 | Index | Q3 2025 | Q2 2025 | Index | Q1 2025 | Q4 2024 | Q3 2024 | |
Net interest income | 237 | 269 | 88 | 77 | 84 | 91 | 76 | 78 | 87 | |
Net fee and commission income | 60 | 54 | 111 | 21 | 19 | 110 | 20 | 19 | 18 | |
Net insurance income | 56 | 46 | 122 | 14 | 27 | 53 | 16 | 10 | 20 | |
Other operating income (less reclassification) | 48 | 32 | 151 | 11 | 24 | 44 | 13 | 9 | 10 | |
Total operating income | 402 | 401 | 100 | 123 | 154 | 80 | 125 | 117 | 135 | |
Operating costs1 | 210 | 202 | 104 | 73 | 68 | 107 | 69 | 72 | 69 | |
Profit before impairment charges | 192 | 200 | 96 | 50 | 86 | 58 | 56 | 46 | 66 | |
Impairment charges, net | -2 | 10 | - | 16 | -9 | 2 | -483 | 5 | -11 | -6 |
Operating profit | 194 | 189 | 102 | 58 | 84 | 69 | 51 | 57 | 72 | |
Investment portfolio earnings2 | 77 | 106 | 73 | 22 | 30 | 73 | 25 | 31 | 48 | |
Profit before tax | 271 | 295 | 92 | 80 | 115 | 70 | 76 | 88 | 119 | |
Operating costs/income, % | 52 | 50 | 59 | 44 | 55 | 61 | 51 | |||
Number of FTE, end of period | 202 | 206 | 98 | 202 | 199 | 101 | 204 | 207 | 206 |
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 Q2 2025. Due to seasonal variations, comments provided on the insurance segment relate to Q3 2024.
Operating income
The Føroya Banki Group generated operating income of DKK 123m in Q3 2025, DKK 31m lower than in Q2. The decrease was due to falls in net interest income, net insurance income and other operating income and was similar to the levels seen in Q1.
Net interest income
Net interest income was DKK 77m in Q3 2025, a fall of DKK 7m compared to Q2 2025, driven by an increase in interest expenses related to new MREL, higher expenses related to increased deposits, as well as pressure on interest margins.
Net fee and commission income
Net fee and commission income amounted to DKK 21m in Q3 2025, DKK 2m higher than in Q2.
Net insurance income
Net insurance income was DKK 14m in Q3 2025, DKK 6m lower than in Q3 2024. The fall was due to higher claims in Q3 2025 compared to the same period in 2024. Compared to Q2 2025 net insurance income was down DKK 13m due to lower claims in Q2 relative to other periods.
Other operating income
Other operating income was DKK 11m in Q3 2025, down DKK 13m on the previous quarter. The Q2 figure was extraordinarily high due to one-off factors, including the sale of the Bank's IT-platform provider SDC, changes in the valuation of the Bank's sector shares and the sale of one of the Bank's domicile properties.
Operating costs
Operating costs amounted to DKK 73m in Q3 2025, DKK 5m higher than in Q2 2025. The main driver of the increase was an increase in IT-costs. For the period Q1-Q3 2025, total costs were marginally lower than originally projected.
Profit before impairment charges
Profit before impairment charges was DKK 50m in Q3 2025 compared to DKK 86m in Q2 2025.
Impairment charges
Net impairment amounted to a reversal of DKK 9m in Q3 2025 compared to impairment charges of DKK 2m in Q2 2025. The Bank remains of the opinion that the credit quality of its overall portfolio is strong and strengthening. 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 15m in Q3 to DKK 116.5m.
Operating profit
The resulting operating profit was DKK 58m in Q3 2025, DKK 26m lower than the DKK 84m seen in Q2 2025.
Investment portfolio earnings
Investment portfolio earnings amounted to DKK 22m in Q3 2025, which was DKK 8m lower than in Q2 2025. The figure was mainly impacted by lower returns on the Bank's bond holdings.
Profit before tax
Profit before tax in Q3 2025 was DKK 80m, DKK 34m lower than in the preceding quarter, which saw a pretax profit of DKK 115m.
Profit before tax for the first nine months of the year totalled DKK 271m, slightly lower than the pre-tax profit of DKK 295m seen same period in 2024.
The Bank is pleased with both the increased operating income as well as the relatively low increase in operating costs in the first nine months of 2025 compared to the same period in 2024. The fall in net interest income in Q1-Q3 2025 was more than outweighed by rising net fee and commission income, net insurance income and other operating income.
Balance sheetFøroya Banki Group's total assets at 30 September 2025 amounted to DKK 15.2bn, up DKK 0.7bn compared to 31 December 2024. Loans and advances were DKK 9.6bn, DKK 512m (up 6%) higher than at 31 December 2024. Deposits were DKK 10.8bn, up DKK 800m (up 8%) compared to 31 December 2024. Liquidity invested in Danish mortgage bonds and Danish government bonds amounted to DKK 1.5bn, a decrease of DKK 265m compared to 31 December 2024. Shareholders' equity at 30 September 2025 amounted to DKK 1,945m, down
DKK 131m, net compared to 31 December 2024 due to dividend payments in the amount of DKK 350m.
Capital and liquidityAt 30 September 2025, the Group's CET 1 capital ratio was 23.1%, the Tier 1 capital ratio was 23.1% and the Total capital ratio was 24.5%. The Total capital ratio, incl. MREL capital, was 36.6%. The net profit for the period Q1-Q3 2025, amounting to DKK 217.7m, is not included in the calculation of the capital ratios.
Regarding the capital and solvency calculation, the Bank notes the contingent liability of up to approximately DKK 30m, as detailed in note 13. The contingent liability concerns a dispute with the Danish tax authorities regarding the determination of the taxable gain on the sale of the Bank's Danish operations in 2021.
The Bank notes that CRR3 will take effect for the Bank on 1 January 2026. The overall effect on REA is not expected to be negative, with a slight fall in REA estimated based on the Bank's current asset composition and on operational risk. Risk-weighted items related to credit risk are expected to fall slightly due to the Bank's large portfolio of low-LTV home loans. Risk-weighted items related to operational risk are expected to be lower, and risk-weighted items related to market risk are expected to be unchanged due to the postponed implementation of the Fundamental Review of the Trading Book (FRTB).
The Group's liquidity indicator was 234.3% on 30 September 2025, well above the requirement of 100%. The Group's LCR at 30 September 2025 was 294.5%, also well above the requirement of 100%. The Group's Net Stable Funding Ratio (NSFR) was 163.4% at 30 September 2025, well above the requirement of 100%.
Compliance with the Danish FSA Supervisory DiamondThe Supervisory Diamond | |||
Q3 2025 | Q3 2024 | FSA limit | |
Sum of large exposures | 140.7% | 146.7% | < 175% |
Liquidity indicator | 234.3% | 266.4% | >100 % |
Loan growth | 5.8% | 3.2% | < 20 % |
Property exposure | 10.9% | 12.1% | < 25 % |
At 30 September 2025, the Group was compliant with all Supervisory Diamond requirements set by the FSA.
Events after the balance sheet dateNo events have occurred since 30 September 2025 that are deemed to have a significant impact on the Group's financial position.
Guidance for 2025The Group announced its guidance for 2025 on 28 January when guidance for the year was for a net profit in the DKK 210-240m range, return on equity between 10.4% and 11.9% and impairment charges at 0.30 pp of loans.
On 15 July 2025, the Group raised its net profit guidance to be in the DKK 235-265m range. The upwards revision reflects the strong insurance results, growth in business activity, robust credit quality of the loan portfolio as well as the above-mentioned one-off income.
The guidance is subject to uncertainty, including uncertainty related to changes in interest rates, impairment charges on loans and advances, market value adjustments and macroeconomic developments in the markets in which the Group operates.
Adjusted resultsNote | Adjusted Incom e statem ent Q1-Q3 2025, Group, DKK 1,000 | Income statement | Restatement | Restated income statement |
1, 4 | Net interest income | 293,745 | -56,345 | 237,400 |
2, 5 | Net f ee and commission income | 78,334 | -18,047 | 60,287 |
4, 6, 7 | Net insurance income | 47,464 | 8,904 | 56,368 |
2, 3 | Other operating income | 12,577 | 35,290 | 47,867 |
Operating income | 432,119 | -30,198 | 401,921 | |
5, 6 | Operating costs | 198,892 | 11,000 | 209,892 |
Profit before impairment charges | 233,227 | -41,198 | 192,029 | |
Impairment charges | -1,636 | 0 | -1,636 | |
Operating profit | 234,863 | -41,198 | 193,665 | |
1, 3, 7 | Investment portf olio earnings | 35,697 | 41,198 | 76,895 |
Note | Profit before tax | 270,560 | 0 | 270,560 |
Adjusted Incom e statem ent Q1-Q3 2024, Group, DKK 1,000 | ||||
1, 4 | Net interest income | 339,232 | -70,551 | 268,681 |
2, 5 | Net f ee and commission income | 70,234 | -15,735 | 54,499 |
4, 6, 7 | Net insurance income | 40,284 | 6,051 | 46,335 |
2, 3 | Other operating income | 7,806 | 23,990 | 31,796 |
Operating income | 457,556 | -56,245 | 401,311 | |
5, 6 | Operating costs | 190,171 | 11,504 | 201,675 |
Profit before impairment charges | 267,385 | -67,749 | 199,636 | |
Impairment charges | 10,328 | 0 | 10,328 | |
Operating profit | 257,057 | -67,749 | 189,308 | |
1, 3, 7 | Investment portf olio earnings | 37,896 | 67,749 | 105,645 |
Profit before tax | 294,953 | 0 | 294,953 | |
Note Restatements made to the income statement, DKK 1,000
1 Reclassif ication of interest income related to bonds from the item Interest income to Investment portf olio earnings.
Q1-Q3 2025 Q1-Q3 2024
46,736 72,615
2 Dividends and f ees reclassif ied from Net f ee and commission income to Other operating income. | 18,047 | 12,292 |
3 Reclassif ication of value adjustments related to sector shares and of prof it or loss from currency | 17,243 | 11,698 |
transactions to Other operating income. | ||
4 Reclassif ication of interest income to Net insurance income due to IFRS 17 | 9,609 | 2,064 |
5 Reclassif ication from Net f ee and commision income to Operation costs due to IFRS 17 | 0 | 3,443 |
6 Reclassif ication of operating costs from Net insurance income to Operating costs due to IFRS 17 | 11,000 | 17,104 |
7 Reclassif ication of market value adjustments from net insurance income to Investment portf olio | 11,705 | 8,989 |
earnings due to FRS 17
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-Q3 2025 | Q1-Q3 2024 | Index | Q3 2025 | Q2 2025 | Index | Q1 2025 | Q4 2024 | Q3 2024 | |
Net interest income | 237 | 269 | 88 | 77 | 84 | 91 | 76 | 78 | 87 | |
Net fee and commission income | 73 | 66 | 109 | 25 | 24 | 106 | 24 | 23 | 22 | |
Other operating income | 40 | 28 | 145 | 8 | 22 | 38 | 11 | 9 | 9 | |
Total operating income | 350 | 363 | 97 | 110 | 129 | 85 | 111 | 110 | 118 | |
Operating costs | 192 | 183 | 105 | 67 | 62 | 108 | 63 | 67 | 63 | |
Profit before impairment charges | 159 | 180 | 88 | 43 | 67 | 64 | 48 | 44 | 55 | |
Impairment charges, net | -2 | 10 | - | 16 | -9 | 2 | -483 | 5 | -11 | -6 |
Operating profit | 160 | 169 | 95 | 52 | 66 | 79 | 43 | 55 | 61 | |
Investment portfolio earnings | 71 | 95 | 75 | 18 | 28 | 63 | 25 | 29 | 43 | |
Profit before tax | 231 | 264 | 88 | 70 | 94 | 74 | 68 | 84 | 104 | |
Loans and advances | 9,600 | 9,072 | 106 | 9,600 | 9,697 | 99 | 9,272 | 9,086 | 9,072 | |
Deposits and other debt | 10,835 | 9,359 | 116 | 10,835 | 10,407 | 104 | 10,306 | 10,007 | 9,359 | |
Mortgage credit | 2,789 | 2,579 | 108 | 2,789 | 2,909 | 96 | 2,906 | 2,741 | 2,579 | |
Operating costs/income, % | 55 | 50 | 61 | 48 | 57 | 60 | 53 | |||
Number of FTE, end of period | 173 | 175 | 99 | 173 | 171 | 101 | 174 | 177 | 175 |
The Personal Banking segment reported operating income of DKK 62m in Q3 2025, DKK 11m lower than in Q2 2025. Net interest income was DKK 37m in Q3 2025, down DKK 4m compared to the previous quarter, primarily due to margin pressures and higher funding costs. Compared to Q2 2025, net fee and commission income was up DKK 1m to DKK 19m in Q3 2025. Other operating income amounted to DKK 5m in Q3 2025, down from DKK 13m in Q2 2025, which was higher than usual due to one-off income.
Operating costs were DKK 57m in Q3 2025, an increase of DKK 6m relative to Q2 2025, mainly driven by increased IT costs. Net impairment amounted to no charge in Q3 2025, compared to a reversal of DKK 1m in Q2 2025. The Bank remains of the opinion that customers in the personal banking segment continue to be robust. Declining market rates and rising real income levels are expected to continue to strengthen customers' resilience. The resulting operating profit for Q3 2025 was DKK 4m, down from DKK 23m in the previous quarter.
Investment portfolio earnings posted to the Personal Banking segment amounted to DKK 9m in the third quarter of 2025 compared to DKK 15m in Q2 2025.
Profit before tax thus amounted to DKK 14m in Q3 2025 compared to DKK 38m in Q2 2025.
Profit before tax for the first nine months of 2025 was DKK 72m, which was DKK 52m lower than the same period in 2024. The difference is mainly due to lower net interest income, slightly higher impairment charges and lower earnings from the investment portfolio. However, the Bank is satisfied with the overall performance in the Personal Banking segment in the first three quarters of 2025.
Loans and advances to personal customers increased by DKK 46m (up 1%) to DKK 4,532m at the end of Q3 2025, while brokered mortgage credit increased by DKK 22m (up 1%) to DKK 2,203, both compared to 30 June 2025. Deposits held by personal customers fell by DKK 612m (down 9%) during the third quarter to DKK 6,108m on 30 September 2025. The decline originates from the Groups transfer of customers in September from the Private to the Corporate segment, in total DKK 708m.
Adjusted Income statement, Personal banking
DKKm | Q1-Q3 2025 | Q1-Q3 2024 | Index | Q3 2025 | Q2 2025 | Index | Q1 2025 | Q4 2024 | Q3 2024 | |
Net interest income | 116 | 142 | 82 | 37 | 41 | 91 | 37 | 40 | 46 | |
Net fee and commission income | 55 | 51 | 107 | 19 | 18 | 106 | 18 | 18 | 17 | |
Other operating income | 25 | 22 | 111 | 5 | 13 | 39 | 6 | 6 | 11 | |
Total operating income | 195 | 216 | 91 | 62 | 72 | 85 | 61 | 64 | 75 | |
Operating costs | 159 | 151 | 106 | 57 | 51 | 111 | 52 | 55 | 52 | |
Profit before impairment charges | 36 | 65 | 56 | 5 | 22 | 23 | 10 | 9 | 23 | |
Impairment charges, net | 2 | -9 | - | 23 | 0 | -1 | -39 | 3 | -2 | -8 |
Operating profit | 34 | 74 | 46 | 4 | 23 | 20 | 7 | 10 | 31 | |
Investment portfolio earnings | 38 | 50 | 75 | 9 | 15 | 63 | 13 | 15 | 23 | |
Profit before tax | 72 | 124 | 58 | 14 | 38 | 37 | 20 | 26 | 54 | |
Loans and advances | 4,532 | 4,298 | 105 | 4,532 | 4,487 | 101 | 4,418 | 4,373 | 4,298 | |
Deposits and other debt | 6,108 | 6,161 | 99 | 6,108 | 6,720 | 91 | 6,505 | 6,228 | 6,161 | |
Mortgage credit | 2,203 | 2,160 | 102 | 2,203 | 2,181 | 101 | 2,169 | 2,175 | 2,160 | |
Number of FTE, end of period | 77 | 77 | 101 | 77 | 76 | 102 | 76 | 79 | 77 |
Corporate Banking activities generated operating income of DKK 49m in Q3 2025, down 14% on the previous quarter. Net interest income fell by DKK 3m to DKK 39m, due to margin pressures and higher funding costs as well as a fall in overall lending volumes. Net fee and commission income was flat at DKK 6m, while other operating income fell from DKK 8m in Q2 2025, which was higher than usual due to one-off factors, to DKK 3m in Q3 2025.
Operating costs were down slightly to DKK 10m in Q3 2025. Net impairment in Q3 2025 was a reversal of DKK 9m compared to a charge of DKK 3m in Q2 2025. The Bank remains of the view that its corporate client base continues to show solid and improving creditworthiness. Lower market rates are set to strengthen customers' creditworthiness further.
Operating profit for the third quarter of 2025 amounted to DKK 47m, an increase of DKK 4m relative to Q2 2025. Investment portfolio earnings posted to the Corporate Banking segment in Q3 2025 were DKK 8m, DKK 5m lower than in the preceding quarter. The resulting profit before tax for Q3 2025 was DKK 56m, flat compared to Q2 2025.
Profit before tax for the first nine months of 2025 totalled DKK 159m compared to DKK 140m in the first nine months of 2024. The main reason for the difference is that impairment charges have been lower so far in 2025 than in the same period of 2024 and that other operating income was unusually high in Q2 2025. The Bank is also satisfied that core operations continue to be robust despite falling interest margins.
Corporate loans and advances fell by DKK 142m (down 3%) in Q3 2025 to DKK 5,068m at 30 September 2025. Customer deposits increased by DKK 1.040m (up 28%) during Q3 2025 to DKK 4.726m. The increase originates mainly from the Group's transfer of customers in September from the Private to the Corporate segment, in total DKK 708m. Brokered mortgage credit fell by DKK 143m (down 20%) to DKK 585m at 30 September 2025 compared to 30 June 2025.
Adjusted Income statement, Corporate Banking
DKKm | Q1-Q3 2025 | Q1-Q3 2024 | Index | Q3 2025 | Q2 2025 | Index | Q1 2025 | Q4 2024 | Q3 2024 | |
Net interest income | 121 | 126 | 96 | 39 | 43 | 92 | 39 | 38 | 40 | |
Net fee and commission income | 18 | 16 | 115 | 6 | 6 | 109 | 6 | 6 | 5 | |
Other operating income | 16 | 6 | 277 | 3 | 8 | 36 | 4 | 2 | -2 | |
Total operating income | 155 | 148 | 105 | 49 | 57 | 86 | 49 | 46 | 44 | |
Operating costs | 33 | 32 | 101 | 10 | 11 | 92 | 11 | 11 | 11 | |
Profit before impairment charges | 122 | 115 | 106 | 38 | 46 | 84 | 38 | 35 | 33 | |
Impairment charges, net | -4 | 19 | - | 20 | -9 | 3 | -318 | 2 | -10 | 2 |
Operating profit | 126 | 22 | 565 | 47 | 43 | 110 | 36 | 45 | -2 | |
Investment portfolio earnings | 33 | 45 | 75 | 8 | 13 | 62 | 12 | 14 | 20 | |
Profit before tax | 159 | 140 | 114 | 56 | 56 | 99 | 47 | 58 | 50 | |
Loans and advances | 5,068 | 4,774 | 106 | 5,068 | 5,210 | 97 | 4,855 | 4,713 | 4,774 | |
Deposits and other debt | 4,726 | 3,198 | 148 | 4,726 | 3,687 | 128 | 3,802 | 3,779 | 3,198 | |
Mortgage credit | 585 | 419 | 140 | 585 | 728 | 80 | 736 | 565 | 419 | |
Number of FTE, end of period | 13 | 15 | 91 | 13 | 13 | 100 | 15 | 15 | 15 |
Trygd reported premium income of DKK 42m in Q3 2025, DKK 2m higher than in Q3 2024. In Q3 2025, claims were DKK 25m, DKK 3m higher than in Q3 2024. Net income from investment activities amounted to DKK 4m in Q3 2025, flat compared to Q3 2024. As a result, operating income was DKK 20m in Q3 2025 compared to DKK 21m in Q3 2024.
Operating costs were DKK 7m in Q3 2025, the same level seen in Q3 2024. As a result, Trygd reported a profit before tax for Q3 2025 of DKK 14m, the same level as in Q3 2024.
Profit before tax for the first three quarters in 2025 was DKK 37m, 63% higher than the profit before tax of DKK 22m reported in the first nine months of 2024.
Trygd continues to consolidate its market position as a provider of non-life insurance in the Faroe Islands. An increased market share in Trygd's main business areas, focus on pricing structure as well as general market growth related to developments in the Faroese economy have driven an increase in premiums. As operating costs remain low, these developments contribute to margin improvements.
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-Q3 2025 | Q1-Q3 2024 | Index | Q3 2025 | Q2 2025 | Index | Q1 2025 | Q4 2024 | Q3 2024 |
Premium income, net of reinsurance | 124 | 118 | 105 | 42 | 42 | 99 | 40 | 38 | 40 |
Claims, net of reinsurance | 71 | 82 | 87 | 25 | 20 | 123 | 27 | 32 | 22 |
Net insurance income | 53 | 36 | 146 | 17 | 22 | 77 | 14 | 6 | 18 |
Net income from investment activities | 5 | 9 | 57 | 4 | 2 | 221 | 0 | 2 | 4 |
Operating income | 58 | 45 | 128 | 20 | 23 | 87 | 14 | 7 | 21 |
Operating costs | 21 | 23 | 93 | 7 | 7 | 99 | 7 | 6 | 7 |
Profit before tax | 37 | 22 | 163 | 14 | 17 | 82 | 7 | 1 | 14 |
Combined ratio | 77 | 89 | 78 | 67 | 87 | 102 | 74 | ||
Claims ratio | 58 | 70 | 59 | 48 | 66 | 85 | 55 | ||
Number of FTE, end of period | 21 | 23 | 94 | 21 | 21 | 101 | 23 | 23 | 23 |
Income statement
Note | DKK 1,000 | Group | Føroya Banki | ||
Q1-Q3 2025 | Q1-Q3 2024 | Q1-Q3 2025 | Q1-Q3 2024 | ||
3 | Interest income calculated using the ef f ective interest method | 392,361 | 461,245 | 413,521 | 476,387 |
3 | Other interest income | 21,160 | 15,143 | ||
4 | Interest expenses | 119,776 | 137,155 | 119,776 | 137,155 |
Net interest income | 293,745 | 339,232 | 293,745 | 339,232 | |
5 | Dividends from shares and other investments Fee and commission income | 14,407 68,528 | 11,997 63,780 | 14,407 77,123 | 11,997 72,001 |
5 | Fee and commissions paid | 4,602 | 5,542 | 4,602 | 5,542 |
Net dividend, fee and commission income | 78,334 | 70,234 | 86,929 | 78,455 | |
Net interest and fee income | 372,078 | 409,466 | 380,674 | 417,687 | |
Insurance revenue Insurance service expenses Net return on investments backing insurance liabilities Net f inance income or expense from insurance Other expenses | 149,588 102,841 4,682 348 4,313 | 146,385 112,748 10,749 382 4,484 | |||
Net insurance result | 47,464 | 40,284 | 0 | 0 | |
Interest and fee income and income from insurance activities, net | 419,543 | 449,750 | 380,674 | 283,959 | |
6 | Market value adjustments | 31,293 | 33,287 | 31,293 | 33,287 |
7 | Other operating income | 12,577 | 7,806 | 5,198 | 2,117 |
8 | Staff costs and administrative expenses | 192,369 | 182,440 | 185,558 | 175,760 |
Amortisation, depreciation and impairment charges | 6,481 | 6,545 | 6,283 | 6,289 | |
Other operating expenses | 42 | 1,186 | 42 | 1,186 | |
9 | Impairment charges on loans and advances etc. | -1,636 | 10,328 | -1,636 | 10,328 |
Income from investments accounted f or under the equity method | 4,404 | 4,609 | 36,579 | 29,240 | |
Profit before tax | 270,560 | 294,953 | 263,497 | 288,768 | |
Tax | 52,885 | 56,869 | 45,822 | 50,684 | |
Net profit | 217,675 | 238,084 | 217,675 | 238,084 | |
Portion attributable to Shareholders of Føroya Banki P/F Ow ners of additional Tier 1 capital Net profit | 217,675 | 232,866 | 217,675 | 232,866 | |
0 | 5,218 | 0 | 5,218 | ||
217,675 | 238,084 | 217,675 | 238,084 | ||
EPS Basic f or the perdiod, DKK* | 22.74 | 24.87 | 22.74 | 24.87 | |
EPS Diluted f or the perdiod, DKK* | 22.74 | 24.87 | 22.74 | 24.87 | |
*Based on average number of shares outstanding.
Statement of comprehensive income - Føroya Banki
DKK 1,000 | Group | Føroya Banki | ||
Q1-Q3 2025 | Q1-Q3 2024 | Q1-Q3 2025 | Q1-Q3 2024 | |
Net profit | 217,675 | 238,084 | 217,675 | 238,084 |
Other comprehensive income | ||||
Total other comprehensive income | 0 | 0 | 0 | 0 |
Total comprehensive income | 217,675 | 238,084 | 217,675 | 238,084 |
Balance Sheet
Note | DKK 1,000 | Group | Føroya Banki | ||
Sept. 30 2025 | Dec. 31 2024 | Sept. 30 2025 | Dec. 31 2024 | ||
Assets | |||||
Cash in hand and demand deposits w ith central banks | 3,139,205 | 2,696,305 | 3,128,395 | 2,695,918 | |
10 | Amounts due from credit institutions and central banks | 300,473 | 310,797 | 300,473 | 310,797 |
9 | Loans and advances at fair value | 311,212 | 319,297 | 313,212 | 319,297 |
9 | Loans and advances at amortised cost | 9,286,830 | 8,767,094 | 9,286,830 | 8,767,094 |
Bonds at fair value | 1,492,287 | 1,757,200 | 1,317,908 | 1,559,697 | |
Shares, etc. | 304,176 | 285,845 | 173,861 | 188,358 | |
Assets under insurance contracts | 12,488 | 4,786 | 0 | 0 | |
Holdings in associates | 21,216 | 18,563 | 21,216 | 18,563 | |
Holdings in subsidiaries | 0 | 0 | 167,609 | 145,434 | |
Assets under pooled schemes and unit-linked investment contracts | 77,022 | 61,610 | 77,022 | 58,055 | |
Intangible assets | 4,591 | 5,084 | 620 | 1,084 | |
Total land and buildings | 107,303 | 111,810 | 107,303 | 111,810 | |
Domicile property | 53,062 | 54,377 | 53,062 | 54,377 | |
Domicile property (lease asset) | 54,241 | 57,432 | 54,241 | 57,432 | |
Other property, plant and equipment | 13,937 | 15,008 | 12,385 | 13,067 | |
Current tax assets | 14,688 | 21,818 | 14,688 | 21,818 | |
Def erred tax assets | 11,253 | 11,253 | 11,172 | 11,172 | |
Assets held for sale | 2,207 | 2,207 | 2,207 | 2,207 | |
Other assets | 67,261 | 88,408 | 64,335 | 89,312 | |
Prepayments | 4,036 | 34,561 | 3,430 | 32,781 | |
Total assets | 15,170,186 | 14,511,644 | 15,002,666 | 14,346,463 | |
Balance Sheet
Note | DKK 1,000 | Group | Føroya Banki | ||
Sept. 30 2025 | Dec. 31 2024 | Sept. 30 2025 | Dec. 31 2024 | ||
Shareholders' equity and liabilities | |||||
Liabilities other than provisions | |||||
Amounts due to credit institutions and central banks | 837,987 | 823,455 | 837,987 | 823,455 | |
Deposits and other debt | 10,803,028 | 10,003,348 | 10,834,476 | 10,014,704 | |
Deposits under pooled schemes and unit-linked investments contracts | 77,022 | 61,610 | 77,022 | 58,055 | |
Issued bonds at amortised cost | 901,052 | 981,190 | 901,052 | 981,190 | |
Liabilities under insurance contracts | 180,182 | 158,485 | 0 | 0 | |
Current tax liabilities | 126,593 | 73,613 | 113,593 | 67,770 | |
Other liabilities | 192,809 | 226,573 | 187,436 | 220,192 | |
Def erred income | 1,918 | 3,927 | 1,918 | 2,162 | |
Total liabilities other than provisions | 13,120,591 | 12,332,200 | 12,953,484 | 12,167,528 | |
Provisions for liabilities | |||||
Provisions for def erred tax | 413 | 508 | 0 | 0 | |
Provisions for losses on guarantees etc | 2,011 | 1,263 | 2,011 | 1,263 | |
Provisions for other liabilities | 2,606 | 1,846 | 2,606 | 1,846 | |
Total provisions for liabilities | 5,029 | 3,617 | 4,616 | 3,109 | |
Subordinated debt | |||||
Subordinated debt | 99,895 | 99,790 | 99,895 | 99,790 | |
Total liabilities | 13,225,516 | 12,435,607 | 13,057,995 | 12,270,426 | |
Equity | |||||
Share capital | 192,000 | 192,000 | 192,000 | 192,000 | |
Revaluation reserve | 6,718 | 6,718 | 6,718 | 6,718 | |
Retained earnings | 1,745,953 | 1,527,319 | 1,745,953 | 1,527,319 | |
Proposed dividends | 0 | 350,000 | 0 | 350,000 | |
Total equity | 1,944,670 | 2,076,037 | 1,944,670 | 2,076,037 | |
Total liabilities and equity | 15,170,186 | 14,511,644 | 15,002,666 | 14,346,463 | |
Statement of changes in equity - Føroya Banki Group
Shareholders equity
DKK 1,000 | Share capital | Revaluation Reserve | Proposed dividends | Retained earnings | Total | Additional tier 1 capital | Total |
Shareholders' equity at January 1, 2025 | 192,000 | 6,718 | 350,000 | 1,527,319 | 2,076,037 | 0 | 2,076,037 |
Net prof it | 0 | 217,675 | 217,675 | 0 | 217,675 | ||
Total comprehensive income | 0 | 0 | 217,675 | 217,675 | 0 | 217,675 | |
Dividends paid | -350,000 | 958 | -349,042 | -349,042 | |||
Shareholders' equity at September 30, 2025 | 192,000 | 6,718 | 0 | 1,745,953 | 1,944,670 | 0 | 1,944,670 |
Share | Revaluation | Proposed | Retained | Additional tier 1 | |||
DKK 1,000 | capital | Reserve | dividends | earnings | Total | capital | Total |
Shareholders' equity at January 1, 2024 | 192,000 | 7,948 | 80,000 | 1,570,662 | 1,850,609 | 151,532 | 2,002,141 |
Revaluation of assets, subsidiaries | -1,230 | 1,230 | 0 | 0 | |||
Net prof it | 350,000 | -44,792 | 305,208 | 5,218 | 310,427 | ||
Total comprehensive income | -1,230 | 350,000 | -43,562 | 305,208 | 5,218 | 310,427 | |
Paid interest on additional tier 1 capital | 0 | 0 | -6,750 | -6,750 | |||
Redemption of additional tier 1 capital | 0 | 0 | -150,000 | -150,000 | |||
Dividends paid | -80,000 | 219 | -79,781 | -79,781 | |||
Shareholders' equity at Decem ber 31, 2024 | 192,000 | 6,718 | 350,000 | 1,527,319 | 2,076,037 | 0 | 2,076,037 |
DKK 1,000 | Share capital | Revaluation Reserve | Proposed dividends | Retained earnings | Total | Additional tier 1 capital | Total |
Shareholders' equity at January 1, 2024 | 192,000 | 7,948 | 80,000 | 1,570,662 | 1,850,609 | 151,532 | 2,002,141 |
Net prof it | 232,866 | 232,866 | 5,218 | 238,084 | |||
Total comprehensive income | 232,866 | 232,866 | 5,218 | 238,084 | |||
Paid interest on additional tier 1 capital | -6,750 | -6,750 | |||||
Redemption of additional tier 1 capital | -150,000 | -150,000 | |||||
Dividends paid | -80,000 | 219 | -79,781 | -79,781 | |||
Shareholders' equity at September 30, 2024 | 192,000 | 7,948 | 0 | 1,803,747 | 2,003,695 | 0 | 2,003,695 |
Statement of changes in equity - Føroya Banki P/F
Shareholders equity
DKK 1,000 | Share capital | Revaluation Reserve | Proposed dividends | Retained earnings | Total | Additional tier 1 capital | Total |
Shareholders' equity at January 1, 2025 | 192,000 | 6,718 | 350,000 | 1,527,319 | 2,076,037 | 0 | 2,076,037 |
Net profit | 217,675 | 217,675 | 0 | 217,675 | |||
Total comprehensive income | 0 | 0 | 217,675 | 217,675 | 0 | 217,675 | |
Dividends paid | -350,000 | 958 | -349,042 | -349,042 | |||
Shareholders' equity at September 30, 2025 | 192,000 | 6,718 | 0 | 1,745,953 | 1,944,670 | 0 | 1,944,670 |
DKK 1,000 | Share capital | Revaluation Reserve | Proposed dividends | Retained earnings | Total | Additional tier 1 capital | Total |
Shareholders' equity at January 1, 2024 | 192,000 | 7,948 | 80,000 | 1,570,662 | 1,850,609 | 151,532 | 2,002,141 |
Revaluation of assets, subsidiaries | -1,230 | 1,230 | 0 | 0 | |||
Net profit | 350,000 | -44,792 | 305,208 | 5,218 | 310,427 | ||
Total comprehensive income | -1,230 | 350,000 | -43,562 | 305,208 | 5,218 | 310,427 | |
Paid interest on additional tier 1 capital | -6,750 | -6,750 | |||||
Redemption of additional tier 1 capital | 0 | -150,000 | -150,000 | ||||
Dividends paid | -80,000 | 219 | -79,781 | -79,781 | |||
Shareholders' equity at Decem ber 31, 2024 | 192,000 | 7,948 | 80,000 | 1,527,319 | 2,076,037 | 0 | 2,076,037 |
Share | Revaluation | Proposed | Retained | Additional tier 1 | |||
DKK 1,000 | capital | Reserve | dividends | earnings | Total | capital | Total |
Shareholders' equity at January 1, 2024 | 192,000 | 7,948 | 80,000 | 1,570,662 | 1,850,609 | 151,532 | 2,002,141 |
Net profit | 232,866 | 232,866 | 5,218 | 238,084 | |||
Total comprehensive income | 232,866 | 232,866 | 5,218 | 238,084 | |||
Paid interest on additional tier 1 capital | -6,750 | -6,750 | |||||
Redemption of additional tier 1 capital | -150,000 | -150,000 | |||||
Dividends paid | -80,000 | 219 | -79,781 | -79,781 | |||
Shareholders' equity at September 30, 2024 | 192,000 | 7,948 | 0 | 1,803,747 | 2,003,695 | 0 | 2,003,695 |
Capital and Solvency - P/F Føroya Banki
Solvency DKK 1,000 | Sept. 30 2025 | Dec. 31 2024 |
Tier 1 capital | 1,713,193 | 1,712,027 |
Total capital | 1,813,088 | 1,811,817 |
Risk-w eighted items not included in the trading portfolio | 6,214,170 | 5,835,110 |
Risk-w eighted items w ith market risk etc. | 243,703 | 391,442 |
Risk-w eighted items w ith operational risk | 953,926 | 953,926 |
Total risk-w eighted items | 7,411,799 | 7,180,478 |
CET 1 capital ratio | 23.1% | 23.8% |
Tier 1 capital ratio | 23.1% | 23.8% |
Total capital ratio | 24.5% | 25.2% |
Total capital, incl. MREL capital, ratio | 36.6% | 36.3% |
Shareholders' equity | ||
Share capital | 192,000 | 192,000 |
Reserves | 6,718 | 6,718 |
Net profit | 217,675 | 310,427 |
Retained earnings, previous years | 1,533,404 | 1,571,152 |
Shareholders' equity, before deduction of holdings of ow n shares | 1,949,797 | 2,080,296 |
Deduction of ordinary dividend | 0 | 217,000 |
Deduction of extraordinary dividend | 0 | 133,000 |
Deduction of net profit | 217,675 | 0 |
Deduction due to excess holdings of shares in the financial sector | 269 | 0 |
Deduction of holdings of ow n shares | 5,126 | 4,259 |
Deduction of MLC regarding Non Performing Exposures | 245 | 0 |
Deduction of intangible assets | 620 | 1,084 |
Deduction of def erred tax assets | 11,172 | 11,172 |
Deduction regarding prudent valuation of financial instruments | 1,496 | 1,754 |
CET 1 capital | 1,713,193 | 1,712,027 |
Tier 1 capital | 1,713,193 | 1,712,027 |
Subordinated loan capital | 99,895 | 99,790 |
Total capital | 1,813,088 | 1,811,817 |
MREL capital | 901,052 | 791,227 |
Total capital, incl. MREL capital | 2,714,139 | 2,603,044 |
The Føroya Banki Group holds a license to operate as a bank and is theref ore 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-Q3 2025 | Group Full year 2024 |
Cash flow from operations | ||
Prof it bef ore tax | 270,560 | 382,475 |
Amortisation and impairment charges f or intangible assets | 463 | 618 |
Depreciation and impairment charges of tangible assets | 6,946 | 9,741 |
Impairment of loans and advances/guarantees | -947 | 1,077 |
Paid tax | 0 | -78,956 |
Other non-cash operating items | -55,915 | -62,528 |
Total | 221,107 | 252,427 |
Changes in operating capital | ||
Change in loans at f air value | 5,000 | 36,665 |
Change in loans at amortised cost | -518,789 | -233,816 |
Change in holding of bonds | 286,507 | -320,115 |
Change in holding of shares | -4,203 | 7,076 |
Change in deposits | 801,809 | 1,301,156 |
Due to credit institutions and central banks | 57,390 | -138,507 |
Change in other assets / liabilities | 7,813 | 41,599 |
Assets/liabilities under insurance contracts | 13,995 | 15,678 |
Prepayments | 28,517 | -18,178 |
Cash flow from operations | 899,146 | 943,985 |
Cash flow from investing activities | ||
Dividends received | 16,158 | 11,997 |
Acquisition of intangible assets | -721 | -5,000 |
Acquisition of tangible assets | -1,958 | -7,211 |
Sale of tangible assets | 5,041 | 6,654 |
Cash flow from investing activities | 18,520 | 6,439 |
Cash flow from financing activities | ||
Change in loans from central banks and credit institutions | -42,857 | 242,857 |
Issued bonds at amortised cost | 250,000 | 0 |
Redemption of issued bonds at amortised cost | -340,000 | -150,000 |
Interest paid on additional tier 1 capital | 0 | -6,750 |
Payment of dividends | -350,000 | -80,000 |
Payment of dividends, ow n shares | 958 | 219 |
Principal portion of lessee lease payments | -3,191 | -5,417 |
Cash flow from financing activities | -485,090 | 909 |
Cash flow | 432,577 | 951,333 |
Cash in hand and demand deposits w ith central banks, and due from | ||
Credit institutions, etc. at the beginning of the year | 3,007,102 | 2,055,769 |
Cash f low | 432,577 | 951,333 |
Cash and due etc. | 3,439,678 | 3,007,102 |
Cash and due etc. | ||
Cash in hand and demand deposits w ith central banks | 3,139,205 | 2,696,305 |
Due from credit institutions, etc. | 300,473 | 310,797 |
Total | 3,439,678 | 3,007,102 |
Note 1 Significant accounting policies
The consolidated financial statements for the first nine months of 2025 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.
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 2024. The Annual Report 2024 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 2024 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 2024 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.
Non-life
Note | Operating segments Q1-Q3 2025, (DKK 1,000) | Banking | Insurance | Elim ination | Group | |||
2 | Personal | Corporate | Other | Total | Faroe Islands | Total | ||
External interest income, Net | 125,718 | 155,813 | 12,214 | 293,745 | 0 | 293,745 | ||
Internal interest | 19,127 | -19,127 | 0 | 0 | 0 | |||
Net interest income | 144,845 | 136,686 | 12,214 | 293,745 | 0 | 293,745 | ||
Net dividends and fee income | 66,793 | 20,002 | 135 | 86,929 | 0 | -8,595 | 78,334 | |
Net insurance result | 0 | 0 | -54 | -54 | 36,645 | 10,873 | 47,464 | |
Other income | 4,060 | 7,555 | 37,419 | 49,034 | 0 | -761 | 48,274 | |
Total income | 215,698 | 164,243 | 49,713 | 429,654 | 36,645 | 1,517 | 467,816 | |
Total operating expenses | 58,328 | 14,030 | 125,017 | 197,375 | 0 | 1,517 | 198,892 | |
of which depreciation and amortisation | 677 | 0 | 5,804 | 6,481 | 0 | 6,481 | ||
Profit before impairment charges on loans | 157,369 | 150,213 | -75,304 | 232,279 | 36,645 | 0 | 268,924 | |
Impairment charges | 1,999 | -3,868 | 232 | -1,636 | 0 | -1,636 | ||
Profit before tax | 155,370 | 154,081 | -75,536 | 233,915 | 36,645 | 0 | 270,560 | |
Total assets | 5,067,582 | 4,532,461 | 5,247,992 | 14,848,035 | 322,151 | 15,170,186 | ||
of which Loans and advances | 4,532,461 | 5,067,582 | 9,600,042 | 9,600,042 | ||||
Total liabilities | 6,108,152 | 4,726,323 | 2,197,297 | 13,031,773 | 193,743 | 13,225,516 | ||
of which Deposits 1) | 6,108,152 | 4,726,323 | 10,834,476 | -31,448 | 10,803,028 | |||
of which Insurance liabilities | 2,171 | 178,010 | 180,182 |
Operating segments Q1-Q3 2024, (DKK 1,000)
Banking
Non-life
Insurance Elim ination Group
Personal | Corporate | Other | Total | Faroe Islands | Total | ||
External interest income, Net | 113,791 | 157,904 | 67,537 | 339,232 | 0 | 339,232 | |
Internal interest | 48,215 | -47,214 | -1,001 | 0 | 0 | ||
Net interest income | 162,006 | 110,689 | 66,537 | 339,232 | 0 | 339,232 | |
Net dividends and fee income | 61,552 | 16,720 | 183 | 78,455 | 0 | -8,221 | 70,234 |
Net insurance result | 0 | 0 | 7,494 | 7,494 | 22,433 | 10,357 | 40,284 |
Other income | 3,359 | 5,841 | 37,262 | 46,462 | 0 | -761 | 45,701 |
Total income | 226,916 | 133,251 | 111,476 | 471,643 | 22,433 | 1,375 | 495,451 |
Total operating expenses | 60,739 | 15,275 | 112,217 | 188,231 | 0 | 1,940 | 190,171 |
of which depreciation and amortisation | 6,003 | 917 | -375 | 6,545 | 0 | 6,545 | |
Profit before impairment charges on loans | 166,177 | 117,976 | -741 | 283,413 | 22,433 | -565 | 305,281 |
Impairment charges | -7,291 | 19,619 | -2,001 | 10,328 | 0 | 10,328 | |
Profit before tax | 173,468 | 98,356 | 1,261 | 273,085 | 22,433 | -565 | 294,953 |
Total assets | 4,191,405 | 4,921,018 | 4,661,981 | 13,774,404 | 281,073 | 14,055,478 | |
of which Loans and advances | 4,298,367 | 4,773,948 | 9,072,315 | 9,072,315 | |||
Total liabilities | 6,160,816 | 3,198,001 | 2,508,589 | 11,867,653 | 184,130 | 12,051,783 | |
of which Deposits | 6,160,816 | 3,198,001 | 9,359,064 | -5,515 | 9,353,549 | ||
of which Insurance liabilities | 4,388 | 160,399 | 164,787 |
1) Regarding deposits in Q3 2025. The Bank has transferred deposits totalling DKK 708m from the Private segment to the Corporate segment. Due to tecnical problems the corresponding period in Q3 2024 has not been corrected accordingly.
Føroya Banki Group - Geografical revenue information
Additions to tangible
Additions to
Q1-Q3 2025 | Q1-Q3 2024 | Q1-Q3 2025 | Q1-Q3 2024 | Q1-Q3 2025 | Q1-Q3 2024 | Q1-Q3 2025 | Q1-Q3 2024 | |
Faroe Islands Greenland | 421,736 46,080 | 431,709 63,743 | 111,985 35,063 | 120,611 37,064 | 68 638 | 3,686 33 | 3,508 0 | 3,857 0 |
Total | 467,816 | 495,452 | 147,048 | 157,675 | 706 | 3,719 | 3,508 | 3,857 |
Note 2 Geografical segments, (DKK 1,000)
(cont'd)
Total income Non current assets
assets
intangible assets
Im pairm ents
Investment portfolio earnings
Geografical segments, (DKK 1,000) | Q1-Q3 2025 | Q1-Q3 2024 | Q1-Q3 2025 | Q1-Q3 2024 |
Faroe Islands Greenland | 12,667 -14,303 | -15,023 25,351 | 35,697 0 | 37,896 0 |
Total | -1,636 | 10,328 | 35,697 | 37,896 |
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-Q3 2025 | Q1-Q3 2024 | Q1-Q3 2025 | Q1-Q3 2024 | Q1-Q3 2025 | Q1-Q3 2024 | Q1-Q3 2025 | Q1-Q3 2024 |
Faroe Islands, Banking, Other | 374,272 | 391,424 | 176,454 | 217,840 | 33,929 | 42,438 | 164 | 166 |
Faroe Islands, Insurance | 47,464 | 40,284 | 47,464 | 40,284 | 6,596 | 4,671 | 21 | 23 |
Greenland, Banking | 46,080 | 63,743 | 46,643 | 36,829 | 12,360 | 9,760 | 17 | 17 |
Total | 467,816 | 495,452 | 270,560 | 294,953 | 52,885 | 56,868 | 202 | 206 |
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-Q3 2025 | Q1-Q3 2024 | Q1-Q3 2025 | Q1-Q3 2024 | ||
3 | Interest income Credit institutions and central banks Loans and advances (incl. other interest income) Bonds Total derivatives of w hich: Currency contracts Interest rate contracts Other interest income | 33,164 354,369 12,506 7,269 -28 7,297 6,213 | 54,124 396,865 8,623 12,399 -11 12,411 4,376 | 33,164 354,369 12,506 7,269 -28 7,297 6,213 | 54,124 396,865 8,623 12,399 -11 12,411 4,376 |
Total interest income | 413,521 | 476,387 | 413,521 | 476,387 | |
4 | Interest expenses Credit institutions and central banks Deposits Issued bonds Subordinated debt Lease liabilities Other interest expenses | 18,382 65,662 30,677 3,668 1,478 -91 | 22,340 69,428 41,731 4,119 1,549 -2,013 | 18,382 65,662 30,677 3,668 1,478 -91 | 22,340 69,428 41,731 4,119 1,549 -2,013 |
Total interest expenses | 119,776 | 137,155 | 119,776 | 137,155 | |
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 | 12,807 16,793 3,561 17,219 18,148 | 10,492 15,974 3,398 16,296 17,619 | 12,807 16,793 3,561 17,219 26,743 | 10,492 15,974 3,398 16,296 25,841 |
Total fee and commission income | 68,528 | 63,780 | 77,123 | 72,001 | |
Fee and commissions paid Securities trading and custody accounts | 4,602 | 5,542 | 4,602 | 5,542 | |
Net fee and commission income | 63,926 | 58,237 | 72,522 | 66,458 | |
6 | Market value adjustments Loans and advances Bonds Shares Foreign exchange Total derivatives of w hich: Currency Swaps Interest Swaps Other contracts Assets under pooled schemes Deposits in pooled schemes | ||||
-1,085 | 6,592 | -1,085 | 6,592 | ||
13,200 | 25,861 | 13,200 | 25,861 | ||
12,102 | 5,390 | 12,102 | 5,390 | ||
6,700 | 8,066 | 6,700 | 8,066 | ||
377 | -12,623 | 377 | -12,623 | ||
901 | 74 | 901 | 74 | ||
-1,822 | -13,214 | -1,822 | -13,214 | ||
1,297 | 518 | 1,297 | 518 | ||
1,256 | 5,996 | 1,256 | 5,996 | ||
-1,256 | -5,996 | -1,256 | -5,996 | ||
Total market value adjustments | 31,293 | 33,287 | 31,293 | 33,287 | |
Note | DKK 1,000 | Group | Føroya Banki | ||
Q1-Q3 2025 | Q1-Q3 2024 | Q1-Q3 2025 | Q1-Q3 2024 | ||
7 | Other operating income Profit on sale of properties Other income | 3,702 8,874 | 636 7,170 | 3,702 1,496 | 636 1,481 |
Total other operating income | 12,577 | 7,806 | 5,198 | 2,117 | |
8 | Staff costs and administrative expenses Staff costs: Salaries Pensions Social security expenses | ||||
95,206 | 93,848 | 82,219 | 80,373 | ||
13,915 | 13,664 | 12,151 | 11,760 | ||
14,447 | 14,056 | 12,876 | 12,445 | ||
Total staff costs | 123,569 | 121,568 | 107,246 | 104,578 | |
Administrative expenses: IT Marketing etc Education etc Other expenses | 53,139 | 46,637 | 50,171 | 41,484 | |
6,675 | 9,327 | 5,808 | 8,036 | ||
2,703 | 3,037 | 2,306 | 2,325 | ||
27,322 | 27,295 | 20,028 | 19,338 | ||
Total administrative expenses | 89,840 | 86,296 | 78,312 | 71,182 | |
Total staff costs | 123,569 | 121,568 | 107,246 | 104,578 | |
Total administrative expenses | 89,840 | 86,296 | 78,312 | 71,182 | |
Staff and administrative costs incl. under the item "Insurance service expenses" | -21,040 | -25,424 | 0 | 0 | |
Total staff costs and administrative expenses | 192,369 | 182,440 | 185,558 | 175,760 | |
Number of employees | |||||
Average number of full-time employees in the period | 203 | 208 | 174 | 178 | |
Executive remuneration: | |||||
Board of Directors | 1,755 | 1,620 | 1,755 | 1,620 | |
Executive Board: | |||||
Salaries | 2,406 | 2,097 | 2,406 | 2,097 | |
- less fees received from directorships | 222 | 278 | 222 | 278 | |
The Bank's expense, salaries | 2,184 | 1,819 | 2,184 | 1,819 | |
Pension | 188 | 314 | 188 | 314 | |
Total executive board | 2,371 | 2,133 | 2,371 | 2,133 | |
Total executive remuneration | 4,126 | 3,753 | 4,126 | 3,753 | |
Note | DKK 1.000 | Group | Føroya Banki | ||
Q1-Q3 2025 | Q1-Q3 2024 | Q1-Q3 2025 | Q1-Q3 2024 | ||
9 | Impairment charges on loans and advances and provisions for guarantees etc. | ||||
Impairment charges and provisions at 31 December 2024 | 179,881 | 182,347 | 179,881 | 182,347 | |
New and increased impairment charges and provisions | 134,288 | 103,829 | 134,288 | 103,829 | |
Reversals of impairment charges and provisions | 132,480 | 88,585 | 132,480 | 88,585 | |
Written-off, previously impaired | 689 | 1,827 | 689 | 1,827 | |
Interest income on impaired loans | 2,813 | 3,105 | 2,813 | 3,105 | |
Total impairment charges and provisions at 30 September 2025 | 181,000 | 195,764 | 181,000 | 195,764 | |
Impairment charges and provisions recognised in the income statement | |||||
Loans and advances at amortised cost | 1,286 | 9,647 | 1,286 | 9,647 | |
Loans and advances at fair value | -3,377 | 2,815 | -3,377 | 2,815 | |
Guarantiees and loan commitments | 456 | -2,135 | 456 | -2,135 | |
Assets held for sale | 0 | 0 | 0 | 0 | |
Total individual impairment charges and provisions | -1,636 | 10,328 | -1,636 | 10,328 | |
Stage 1 impairm ent charges | |||||
Stage 1 impairment charges etc. at 31 December 2024 | 78,972 | 76,219 | 78,972 | 76,219 | |
New and increased Stage 1 impairment charges | 75,451 | 42,728 | 75,451 | 42,728 | |
Reversals, net of Stage 1 impairment charges | 64,435 | 46,612 | 64,435 | 46,612 | |
Stage 1 impairm ent charges at 30 September 2025 | 89,989 | 72,335 | 89,989 | 72,335 | |
Total net impact recognised in the income statement | 11,016 | -3,884 | 11,016 | -3,884 | |
Stage 2 impairm ent charges | |||||
Stage 2 impairment charges etc. at 31 December 2024 | 32,571 | 38,196 | 32,571 | 38,196 | |
New and increased impairment charges | 35,904 | 18,614 | 35,904 | 18,614 | |
Reversals, net of impairment charges | 32,158 | 23,698 | 32,158 | 23,698 | |
Stage 2 impairm ent charges at 30 September 2025 | 36,316 | 33,113 | 36,316 | 33,113 | |
Total net impact recognised in the income statement | 3,745 | -5,084 | 3,745 | -5,084 | |
Weak Stage 2 | |||||
Weak Stage 2 impairment charges etc. at 31 December 2024 | 6,331 | 7,278 | 6,331 | 7,278 | |
New and increased impairment charges | 9,785 | 4,845 | 9,785 | 4,845 | |
Reversals, net of impairment charges | 4,873 | 5,255 | 4,873 | 5,255 | |
Weak Stage 2 impairm ent charges at 30 September 2025 | 11,243 | 6,868 | 11,243 | 6,868 | |
Total net impact recognised in the income statement | 4,913 | -410 | 4,913 | -410 | |
Note 9 (cont'd) | DKK 1.000 | Group Q1-Q3 2025 | Q1-Q3 2024 | Føroya Banki Q1-Q3 2025 | Q1-Q3 2024 |
Stage 3 impairm ent charges | |||||
Stage 3 impairment charges etc. at 31 December 2024 | 60,452 | 56,450 | 60,452 | 56,450 | |
New and increased impairment charges | 11,656 | 35,909 | 11,656 | 35,909 | |
Reversals of impairment charges | 29,978 | 9,153 | 29,978 | 9,153 | |
Written-off, previously impaired | 689 | 1,827 | 689 | 1,827 | |
Write-offs charged directly to the income statement | 756 | 337 | 756 | 337 | |
Received on claims previously written off | 1,387 | 2,149 | 1,387 | 2,149 | |
Interest income on impaired loans | 2,813 | 3,105 | 2,813 | 3,105 | |
Stage 3 impairm ent charges at 30 September 2025 | 41,442 | 81,379 | 41,442 | 81,379 | |
Total net impact recognised in the income statement | -21,766 | 21,840 | -21,766 | 21,840 | |
Purchased credit-impaired assets included in stage 3 above | |||||
Purchased credit-impaired assets at 31 December 2024 | 1,096 | 1,341 | 1,096 | 1,341 | |
Reversals of impairment charges | 144 | 222 | 144 | 222 | |
Purchased credit-im paired assets at 30 September 2025 | 952 | 1,119 | 952 | 1,119 | |
Reclassified to Assets in disposal groups classified as held for sale | |||||
Provisions for guarantees and undraw n credit lines | |||||
Individual provisions at 31 December 2024 | 1,555 | 4,204 | 1,555 | 4,204 | |
New and increased provisions | 1,492 | 1,732 | 1,492 | 1,732 | |
Reversals of provisions | 1,036 | 3,867 | 1,036 | 3,867 | |
Provisions for guarantees etc at 30 September 2025 | 2,011 | 2,069 | 2,011 | 2,069 | |
Total net impact recognised in the income statement | 456 | -2,135 | 456 | -2,135 | |
Provisions for guarantees and undraw n credit lines | |||||
Stage 1 provisions | 1,034 | 1,135 | 1,034 | 1,135 | |
Stage 2 provisions | 585 | 578 | 585 | 578 | |
Stage 3 provisions | 392 | 355 | 392 | 355 | |
Provisions for guarantees etc at 30 September 2025 | 2,011 | 2,069 | 2,011 | 2,069 |
DKK 1,000 | Group | Føroya Banki | ||
Sept. 30 2025 | Dec. 31 2024 | Sept. 30 2025 | Dec. 31 2024 | |
Due from credit institutions etc. specified by maturity On demand | 300,473 | 310,797 | 300,473 | 310,797 |
Total due from credit institutions etc. | 300,473 | 310,797 | 300,473 | 310,797 |
Contingent liabilities | ||||
Guarantees | ||||
Financial guarantees | 200,333 | 170,910 | 200,333 | 170,910 |
Mortgage finance guarantees | 321,353 | 305,032 | 321,353 | 305,032 |
Registration and remortgaging guarantees | 93,517 | 23,306 | 113,072 | 106,784 |
Other garantees | 63,907 | 64,571 | 196,347 | 204,757 |
Total guarantees | 679,111 | 563,819 | 831,105 | 787,484 |
10
11
Assets deposited as collateral
At Sept. 30 2025 the Group had deposited cash amounting to DKK 36.7m (Dec. 31 2024: 27.0m) 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 15.9m (Dec. 31 2025: DKK 20.7m) in connection w ith negative market value of derivatives.
Contingent liability
The bank has entered in a tax dispute w ith the Danish tax-autorities regarding the sale of the banks danish activities in 2021. At present the contingent liablity could have a negative effect on the Groups equity of up to approx. DKK 30m.
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 nine months to 30 September 2025.
The consolidated financial statements for the first nine months to 30 September 2025 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 30 September 2025, 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 nine months ended 30 September 2025.
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, 4 November 2025
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
Rúna Hentze Kenneth M. Samuelsen Alexandur Johansen
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 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 Personal Banking
Qullilerfik 2
3900 Nuuk
Phone: +299 34 79 00
Corporate Banking
Qullilerfik 2
3900 Nuuk
Phone: +299 34 79 00
Interim Report Q3 2025
29