Interim report
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Føroya Banki Interim Report H1 2026
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Interim Report H1 2026 2 Contents MANAGEMENT’S REPORT • Financial highlights and ratios.................................................................................................... 3 • Financial review..........................................................................................................................4 - H1 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
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Interim Report H1 2026 3 Financial highlights and ratios - Føroya Banki Group Highlights H1 H1 Q2 Q1 Q4 Q3 Q2 DKK 1,000 2026 2025 Index 2026 2026 2025 2025 2025 Net interest income 192,079 199,358 96 97,741 94,338 94,358 94,386 101,149 Dividends from shares and other investments 7,492 14,407 52 5,072 2,420 6,669 0 14,259 Net fee and commision income 46,507 41,801 111 23,683 22,824 23,958 22,125 20,639 Net interest and fee income 246,078 255,567 96 126,496 119,582 124,985 116,511 136,047 Net insurance result 25,960 34,017 76 13,218 12,742 18,591 13,447 23,297 Interest and fee income and income from insurance activities, net 272,038 289,584 94 139,714 132,324 143,576 129,958 159,344 Market value adjustments 11,589 23,154 50 9,721 1,868 3,492 8,139 10,090 Other operating income 7,657 9,586 80 4,102 3,555 2,259 2,990 6,682 Staff costs and administrative expenses 133,692 125,342 107 67,233 66,459 64,165 67,027 62,462 Impairment charges on loans and advances etc. 2,397 6,871 35 3,093 -696 -2,346 -8,507 1,761 Net profit 125,410 153,996 81 69,500 55,911 70,642 63,679 93,067 Loans and advances 9,788,056 9,694,764 101 9,788,056 9,773,649 9,669,773 9,598,042 9,694,764 Bonds at fair value 1,061,950 1,496,232 71 1,061,950 1,102,536 1,106,209 1,492,287 1,496,232 Intangible assets 3,800 4,834 79 3,800 4,011 4,415 4,591 4,834 Assets held for sale 2,207 2,207 100 2,207 2,207 2,207 2,207 2,207 Total assets 15,397,180 14,636,771 105 15,397,180 15,039,335 14,934,717 15,170,186 14,636,771 Amounts due to credit institutions and central banks 479,376 815,064 59 479,376 499,664 505,739 837,987 815,064 Issued bonds at amortised cost 932,689 898,966 104 932,689 935,362 903,790 901,052 898,966 Deposits and other debt 11,393,064 10,382,526 110 11,393,064 11,095,838 10,948,209 10,803,028 10,382,526 Total shareholders' equity 1,939,276 1,880,992 103 1,939,276 1,869,776 2,015,313 1,944,670 1,880,992 June 30 June 30 June 30 March 31 Dec. 31 Sept. 30 June 30 Ratios and key figures 2026 2025 2026 2026 2025 2025 2025 Solvency Total capital, incl. MREL capital, ratio, % 40.2 35.9 40.2 40.2 36.3 36.6 35.9 Total capital ratio, % 27.0 24.0 27.0 26.9 24.6 24.5 24.0 Tier 1 capital ratio, % 25.6 22.7 25.6 25.5 23.3 23.1 22.7 CET 1 capital 25.6 22.7 25.6 25.5 23.3 23.1 22.7 RWA , DKK mill 7,034 7,545 7,034 7,054 7,732 7,412 7,545 Profitability Return on shareholders' equity after tax, % 6.3 7.8 3.6 2.9 3.6 3.3 5.1 Cost / income, % 47.6 41.8 46.1 49.4 42.9 43.0 36.6 Cost / income, % (excl. value adjustm. and impairments) 48.7 42.7 47.0 50.6 45.5 52.1 37.7 Return on assets 0.8 1.1 0.5 0.4 0.5 0.4 0.6 Market risk Interest rate risk, % 0.6 0.9 0.6 0.7 0.6 0.8 0.9 Foreign exchange position, % 0.7 0.9 0.7 0.9 1.0 0.3 0.9 Foreign exchange risk, % 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Liquidity Liquidity Coverage Ratio (LCR), % 273.5 259.7 273.5 322.4 306.4 294.5 259.7 Net Stable Funding Ratio. (NSFR), % 167.5 158.3 167.5 163.2 160.6 163.4 158.3 Credit risk Change in loans and advances, % 1.2 6.7 0.1 1.1 0.7 -1.0 4.6 Gearing of loans and advances 5.0 5.2 5.0 5.2 4.8 4.9 5.2 Impairment and provisioning ratio, end of period, % 1.7 1.8 1.7 1.6 1.7 1.7 1.8 Write-off and provisioning ratio, % 0.0 0.1 0.0 0.0 0.0 -0.1 0.0 Shares Earnings per share after tax (nom. DKK 20), DKK 13.1 16.1 7.3 5.8 7.4 6.7 9.7 Market price per share (nom. DKK 20), DKK 253.0 188.0 253.0 245.0 286.0 195.0 188.0 Book value per share (nom. DKK 20), DKK 202.6 196.5 202.6 195.3 210.5 203.1 196.5 Other Number of full-time employees, end of period 201 199 201 207 201 202 199
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Interim Report H1 2026 4 Financial Review “The Group successfully carried the positive Q1 momentum into the second quarter, reporting a satisfactory net profit of DKK 125m for the six-month period. The total business volume grew by 2% in the quarter, driven by positive developments in both the Far oese and the Greenlandic markets. Growing customer demand for investment solutions was reflected, among other things, in an increase in our total assets under management. In the second quarter, t he financial results were also positively supported by a satisfactory return on the investment portfolio. Income exceeded expectations, while expenses remained under pressure. We note with satisfaction that our customers are financially robust with strong credit quality, as reflected in persistently low levels of impairment charges. We expect our business to continue its stable, positive development in the second half-year, and we reiterate our financial guidance for the full year,” says CEO Turið F. Arge. H1 2026 Highlights Income statement The following comments are generally stated relative to Q 1 2026. Due to seasonal variations, comments provided on the insurance segment also relate to Q2 2025. Operating income The Føroya Banki Group generated operating income of DKK 128 m in Q2 2026, unchanged compared to Q1 2026. Net interest income Net interest income was DKK 81m in Q2 2026, an increase of DKK 4m compared to Q 1 2026. The increase was mainly driven by lower costs on deposits and lower funding costs. Net fee and commission income Net fee and commission income amounted to DKK 23m in Q2 2026, unchanged compared to Q1 2026. Adjusted Income statement, Group DKKm H1 2026 H1 2025 Index Q2 2026 Q1 2026 Index Q4 2025 Q3 2025 Q2 2025 Net interest income 159 160 99 81 78 105 79 77 84 Net fee and commission income 45 39 116 23 23 100 24 21 19 Net insurance income 28 42 65 11 16 68 20 14 27 Other operating income (less reclassification) 24 37 65 13 11 115 10 11 24 Total operating income 256 279 92 128 128 100 132 123 154 Operating costs1 145 137 106 73 72 102 70 73 68 Profit before impairment charges 111 142 78 55 56 97 63 50 86 Impairment charges, net 2 7 35 3 -1 -444 -2 -9 2 Operating profit 109 135 80 52 57 91 65 58 84 Investment portfolio earnings2 46 55 84 34 13 264 20 22 30 Profit before tax 155 190 81 85 70 122 85 80 115 Operating costs/income, % 57 49 57 56 53 59 44 Number of FTE, end of period 201 199 101 201 207 97 201 202 199 1 Comprises staff costs, administrative expenses and amortisation, sector costs, depreciation and impairment charges (less reclassification to non-recurring items). 2 Incl. net income from investments accounted for under the equity method (excl. sector shares).
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Interim Report H1 2026 5 Net insurance income Net insurance income was DKK 11m in Q 2 2026, DKK 15m lower than in the same period in 2025 due to higher claims. Compared to Q1 2026, net insurance income was down DKK 5m, also due to higher claims in Q2 2026 than in Q1 2026. Other operating income Other operating income was DKK 13m in Q2 2026, up DKK 2m on the previous quarter. Operating costs Operating costs amounted to DKK 7 3m in Q2 2026, DKK 2m higher than in Q1 2026. The main driver of the increase was increased staff costs as well as other costs. Profit before impairment charges Profit before impairment charges was DKK 55m in Q2 2026 compared to DKK 56m in Q1 2026. Impairment charges Net impairment amounted to charges of DKK 3m in Q2 2026 compared to a reversal of DKK 1m in Q1 2026. The Bank remains of the opinion that the credit quality of its overall portfolio is strong. Operating profit The resulting operating profit was DKK 52m in Q 2 2026, DKK 5m lower than the DKK 57m reported in Q1 2026. Investment portfolio earnings Investment portfolio earnings amounted to DKK 34m in Q2 2026, which was DKK 21m higher than in Q1 2026. The figure was mainly impacted by higher returns on the Bank’s bond portfolio. Profit before tax Profit before tax in Q2 2026 was DKK 85m, DKK 16m higher than in the preceding quarter, which saw a pre- tax profit of DKK 70m. Profit before tax for H1 2026 totalled DKK 155m compared to DKK 190m for the same period in 2025. The Bank is pleased with the continued positive development in business volumes , driven by growth in deposits and assets under management, which supports stable earnings. Continued low impairment charges and strong earnings on the investment portfolio contributed to a strong financial performance for the Group in Q2 2026. Balance sheet Føroya Banki Group's total assets at 30 June 2026 amounted to DKK 15.4bn, up DKK 0.5bn compared to 31 December 2025. Loans and advances were DKK 9.8bn, DKK 118m (up 1%) higher than at 31 December 2025. Deposits were DKK 1 1.4bn, up DKK 445m (up 4%) compared to 31 December 2025. Liquidity invested in Danish mortgage bonds and Danish government bonds amounted to DKK 1.1bn, a decrease of DKK 44m compared to 31 December 2025. Shareholders’ equity at 30 June 2026 amounted to DKK 1,939m, down DKK 76m compared to 31 December 2025 due to dividend payments in the amount of DKK 202m.
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Interim Report H1 2026 6 Capital and liquidity At 30 June 2026, the Group’s CET 1 capital ratio was 25.6%, the Tier 1 capital ratio was 25.6% and the Total capital ratio was 27.0%. The Total capital ratio, incl. MREL capital, was 40.2%. The net profit for H1 2026, amounting to DKK 125.4m, is not included in the calculation of the capital ratios. In Q2 2026, the Bank refinanced subordinated Tier 2 capital in the Faroese and Danish markets. The Bank successfully issued new capital amounting to DKK 100m and redeemed DKK 100m. The Group’s liquidity indicator was 271.6% on 30 June 2026, well above the requirement of 100%. The Group’s LCR at 30 June 2026 was 273.5%, also well above the requirement of 100%. The Group’s Net Stable Funding Ratio (NSFR) was 167.5% at 30 June 2026, well above the requirement of 100%. Compliance with the Danish FSA Supervisory Diamond At 30 June 2026, the Group was compliant with all Supervisory Diamond requirements set by the FSA. Events after the balance sheet date No events have occurred since 30 June 2026 that are deemed to have a significant impact on the Group’s financial position. Guidance for 2026 The Group announced its guidance for 2026 on 28 January. At the end of H1 2026, the net profit for the Group was in the upper part of the guided range, but 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. The Supervisory Diamond H1 2026 H1 2025 FSA limit Sum of large exposures 140.2% 156.3% < 175% Liquidity indicator 271.6% 254.6% >100 % Loan growth 1.0% 7.4% < 20 % Property exposure 10.3% 12.0% < 25 %
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Interim Report H1 2026 7 Adjusted results Note Adjusted Income statement H1 2026, Group, (DKK 1,000) Income statement R estatement R estated income statement 1 Net interest income 192,079 -33,183 158,896 2 Net fee and commission income 53,999 -8,595 45,404 4, 5 Net insurance income 25,960 1,625 27,585 2, 3 Other operating income 7,657 16,568 24,225 Operating income 279,695 -23,585 256,110 4 Operating costs 138,484 6,641 145,125 Profit before impairment charges 141,210 -30,226 110,984 Impairment charges 2,397 0 2,397 Operating profit 138,813 -30,226 108,587 1, 3, 5 Investment portfolio earnings 16,116 30,226 46,342 Profit before tax 154,929 0 154,929 Note Adjusted Income statement H1 2025, Group, (DKK 1,000) 1 Net interest income 199,358 -38,906 160,452 2 Net fee and commission income 56,209 -17,118 39,091 4, 5 Net insurance income 34,017 8,247 42,264 2, 3 Other operating income 9,586 27,562 37,148 Operating income 299,171 -20,215 278,956 4 Operating costs 129,681 7,180 136,861 Profit before impairment charges 169,490 -27,395 142,095 Impairment charges 6,871 0 6,871 Operating profit 162,620 -27,395 135,225 1, 3, 5 Investment portfolio earnings 27,558 27,395 54,953 Profit before tax 190,178 0 190,178 Note H1 2026 H1 2025 1 33,183 38,906 2 8,595 17,118 3 7,973 10,444 4 6,641 7,180 5 5,016 -1,067 R estatements made to the income statement (D K K 1,000) Reclassification of value adjustments related to sector shares and of profit or loss from currency transactions to Other operating income. 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. 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
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Interim Report H1 2026 8 Segments We 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 H1 2026 H1 2025 I ndex Q2 2026 Q1 2026 Index Q4 2025 Q3 2025 Q2 2025 Net interest income 159 160 99 81 78 105 79 77 84 Net fee and commission income 51 48 108 26 26 100 27 25 24 Other operating income 19 32 60 10 9 114 8 8 22 Total operating income 230 240 96 117 112 104 114 110 129 Operating costs 134 125 107 67 66 102 64 67 62 Profit before impairment charges 96 115 84 50 46 108 50 43 67 Impairment charges, net 2 7 35 3 -1 -444 -2 -9 2 Operating profit 94 108 87 47 47 100 52 52 66 Investment portfolio earnings 40 53 75 27 13 200 18 18 28 Profit before tax 134 162 83 74 60 122 70 70 94 Loans and advances 9,788 9,697 101 9,788 9,774 100 9,670 9,600 9,697 Deposits and other debt 11,413 10,407 110 11,413 11,112 103 10,957 10,835 10,407 Mortgage credit 3,015 2,909 104 3,015 3,095 97 2,824 2,789 2,909 Operating costs/income, % 58 52 57 59 56 61 48 Number of FTE, end of period 172 171 101 172 178 97 173 173 171
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Interim Report H1 2026 9 Personal Banking The Personal Banking segment reported operating income of DKK 64m in Q2 2026, DKK 2m higher than in Q1 2026. Net interest income was DKK 3 9m in Q2 2026, up DKK 2m compared to the previous quarter. Net fee and commission income amounted to DKK 18m in Q2 2026, largely unchanged compared to Q1 2026. Other operating income amounted to DKK 7m in Q2 2026, compared to DKK 6m in Q1 2026. Operating costs were DKK 55 m in Q 2 2026, an increase of DKK 2m relative to Q 1 2026, mainly driven by higher staff costs and other costs. Net impairment amounted to DKK 0m in Q2 2026, compared to a reversal of DKK 5m in Q 1 2026. The Bank remains of the opinion that customers in the personal banking segment continue to be robust. The resulting operating profit for Q2 2026 was DKK 9m, down DKK 4m from DKK 13m in the previous quarter. Investment portfolio earnings posted to the Personal Banking segment amounted to DKK 14m in Q2 2026 compared to DKK 7 m in Q 1 2026. The figure was mainly impacted by higher returns on the Bank’s bond portfolio. Profit before tax thus amounted to DKK 23m in Q2 2026 compared to DKK 20m in Q1 2026. Loans and advances to personal customers increased by DKK 122m (up 3%) to DKK 4,876m at the end of Q2 2026, while mortgage broking services decreased by DKK 9m (0%) to DKK 2, 214m, both compared to 3 1 March 2026. Deposits held by personal customers increased by DKK 736m (up 12%) during the second quarter to DKK 6,984m at 30 June 2026. Adjusted Income statement, Personal banking DKKm H1 2026 H1 2025 Index Q2 2026 Q1 2026 Index Q4 2025 Q3 2025 Q2 2025 Net interest income 77 79 97 39 37 106 37 37 41 Net fee and commission income 37 36 103 18 18 99 20 19 18 Other operating income 13 19 67 7 6 106 4 5 13 Total operating income 126 134 94 64 62 104 61 62 72 Operating costs 109 103 107 55 54 103 52 57 51 Profit before impairment charges 17 31 55 9 8 109 9 5 22 Impairment charges, net -4 2 -251 0 -5 -9 4 0 -1 Operating profit 22 30 73 9 13 66 4 4 23 Investment portfolio earnings 21 28 75 14 7 208 9 9 15 Profit before tax 43 58 74 23 20 115 14 14 38 Loans and advances 4,876 4,487 109 4,876 4,754 103 4,647 4,532 4,487 Deposits and other debt 6,984 6,720 104 6,984 6,248 112 6,121 6,108 6,720 Mortgage credit 2,214 2,181 102 2,214 2,223 100 2,217 2,203 2,181 Number of FTE, end of period 76 76 101 76 80 95 77 77 76
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Interim Report H1 2026 10 Corporate Banking Corporate Banking activities generated operating income of DKK 53m in Q 2 2026, up 5% on the previous quarter. Compared to Q1 2026, net interest income increased DKK 2m to DKK 42m. Net fee and commission income was flat at DKK 7m compared to Q1 2026, while other operating income increased from DKK 3m in Q1 2026 to DKK 4m in Q2 2026. Operating costs were DKK 12m in Q 2 2026, flat compared to Q1 2026. Net impairment in Q 2 2026 was a charge of DKK 3m compared to a charge of DKK 4m in Q 1 2026. The Bank remains of the view that its corporate client base continues to show solid and improving creditworthiness. Operating profit for the second quarter of 2026 amounted to DKK 38m, an increase of DKK 4m relative to Q1 2026. Investment portfolio earnings posted to the Corporate Banking segment in Q2 2026 were DKK 12m, DKK 6m higher than in the preceding quarter. The figure was mainly impacted by higher returns on the Bank’s bond portfolio. The resulting profit before tax for Q2 2026 was DKK 51m, up DKK 10m compared to Q1 2026. Corporate loans and advances decreased by DKK 107m (down 2%) in Q2 2026 to DKK 4,912m at 30 June 2026. Customer deposits decreased by DKK 435m (down 9%) during Q2 2026 to DKK 4 ,429m. Mortgage broking services decreased by DKK 71m (down 8%) to DKK 800m at 30 June 2026 compared to 3 1 March 2026. Adjusted Income statement, Corporate Banking DKKm H1 2026 H1 2025 Index Q2 2026 Q1 2026 Index Q4 2025 Q3 2025 Q2 2025 Net interest income 82 82 101 42 40 104 42 39 43 Net fee and commission income 15 12 125 7 7 102 7 6 6 Other operating income 6 13 50 4 3 131 4 3 8 Total operating income 103 106 97 53 50 105 53 49 57 Operating costs 24 23 108 12 12 96 12 10 11 Profit before impairment charges 79 84 94 41 38 108 41 38 46 Impairment charges, net 7 5 132 3 4 65 -6 -9 3 Operating profit 72 79 92 38 34 113 47 47 43 Investment portfolio earnings 19 25 76 12 6 193 9 8 13 Profit before tax 91 104 88 51 40 126 56 56 56 Loans and advances 4,912 5,210 94 4,912 5,020 98 5,023 5,068 5,210 Deposits and other debt 4,429 3,687 120 4,429 4,864 91 4,835 4,726 3,687 Mortgage credit 800 728 110 800 871 92 606 585 728 Number of FTE, end of period 15 13 109 15 15 101 13 13 13
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Interim Report H1 2026 11 Insurance: Trygd Trygd reported premium income of DKK 43m in Q2 2026, DKK 1m higher than in Q2 2025. In Q2 2026, claims were DKK 31m, up DKK 11m compared to Q2 2025. Net income from investment activities amounted to DKK 7m in Q2 2026, up DKK 5m compared to Q2 2025. As a result, operating income was DKK 1 8m in Q2 2026 compared to DKK 23m in Q2 2025. Operating costs were DKK 8m in Q2 2026, up DKK 1m compared to Q 2 2025. As a result, Trygd reported a profit before tax for Q2 2026 of DKK 11m, down DKK 6m compared to Q2 2025. Profit before tax for H1 2026 totalled DKK 19m, compared to DKK 23m for the same period in 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, combined with a strengthened focus on pricing structure and overall market growth linked to developments in the Faroese economy have driven an increase in premiums. Trygd’s claims vary significantly from one period to the next due to the limited size of the Faroese insurance market as well as the timing and severity of weather events, which adds volatility to the financial results. Adjusted Income statement, Trygd DKKm H1 2026 H1 2025 Index Q2 2026 Q1 2026 Index Q4 2025 Q3 2025 Q2 2025 Premium income, net of reinsurance 86 82 104 43 43 99 42 42 42 Claims, net of reinsurance 58 47 124 31 27 117 22 25 20 Net insurance income 28 36 79 11 17 69 20 17 22 Net income from investment activities 6 2 360 7 -1 -852 2 4 2 Operating income 34 37 91 18 16 115 22 20 23 Operating costs 15 14 104 8 7 106 7 7 7 Profit before tax 19 23 84 11 9 122 15 14 17 Combined ratio 86 77 92 80 72 78 67 Claims ratio 67 57 73 61 52 59 48 Number of FTE, end of period 21 21 101 21 21 100 21 21 21
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Interim Report H1 2026 12 Income statement H1 H1 H1 H1 Note DKK 1,000 2026 2025 2026 2025 3 Interest income calculated using the effective interest method 244,489 258,991 261,396 281,219 3 Other interest income 16,906 22,227 4 Interest expenses 69,317 81,861 69,317 81,861 N et interest income 192,079 199,358 192,079 199,358 Dividends from shares and other investments 7,492 14,407 7,492 14,407 5 Fee and commission income 50,016 44,935 54,925 50,644 5 Fee and commissions paid 3,510 3,133 3,510 3,133 Net dividend, fee and commission income 53,999 56,209 58,908 61,919 N et interest and fee income 246,078 255,567 250,987 261,277 Insurance revenue 92,386 99,972 Insurance service expenses 69,497 64,700 Net return on investments backing insurance liabilities 6,121 1,296 Net finance income or expense from insurance 12 348 Other expenses 3,061 2,899 N et insurance result 25,960 34,017 0 0 Interest and fee income and income from insurance activities, net 272,038 289,584 250,987 261,277 6 Market value adjustments 11,589 23,154 11,589 23,154 7 Other operating income 7,657 9,586 2,845 4,706 8 Staff costs and administrative expenses 133,692 125,342 128,909 120,881 Amortisation, depreciation and impairment charges 4,617 4,296 4,500 4,156 Other operating expenses 175 42 175 42 9 Impairment charges on loans and advances etc. 2,397 6,871 2,397 6,871 Income from investments accounted for under the equity method 4,527 4,404 21,717 27,833 Profit before tax 154,929 190,178 151,156 185,020 Tax 29,519 36,182 25,745 31,024 Net profit 125,410 153,996 125,410 153,996 Portion attributable to Shareholders of Føroya Banki P/F 125,410 153,996 125,410 153,996 Net profit 125,410 153,996 125,410 153,996 EPS Basic for the perdiod, DKK* 13.10 16.09 13.10 16.09 EPS Diluted for the perdiod, DKK* 13.10 16.09 13.10 16.09 *Based on average number of shares outstanding. Group Føroya Banki
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Interim Report H1 2026 13 Statement of comprehensive income - Føroya Banki H1 H1 H1 H1 DKK 1,000 2026 2025 2026 2025 Net profit 125,410 153,996 125,410 153,996 Other comprehensive income Total other comprehensive income 0 0 0 0 Total comprehensive income 125,410 153,996 125,410 153,996 Føroya BankiGroup
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Interim Report H1 2026 14 Balance Sheet June 30 Dec. 31 June 30 Dec. 31 Note DKK 1,000 2026 2025 2026 2025 Assets 10 Cash in hand and demand deposits w ith central banks 3,591,777 3,249,492 3,582,619 3,236,393 9 Amounts due from credit institutions and central banks 283,130 239,179 283,130 239,179 9 Loans and advances at fair value 287,983 285,267 287,983 285,267 Loans and advances at amortised cost 9,500,073 9,384,505 9,500,073 9,384,505 Bonds at fair value 1,061,950 1,106,209 854,409 900,434 Shares, etc. 279,723 280,011 166,997 170,731 Assets under insurance contracts 4,580 3,320 0 0 Holdings in associates 23,924 21,216 23,924 21,216 Holdings in subsidiaries 0 0 165,710 180,020 Assets under pooled schemes and unit-linked investment contracts 101,986 85,154 101,986 85,154 Intangible assets 3,800 4,415 157 466 Total land and buildings 103,809 106,139 103,809 106,139 Domicile property 52,759 52,961 52,759 52,961 Domicile property (lease asset) 51,050 53,177 51,050 53,177 Other property, plant and equipment 15,893 13,172 14,694 11,737 Current tax assets 53,588 61,341 53,588 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 66,519 49,445 65,871 47,990 Prepayments 4,574 31,979 3,595 30,210 Total assets 15,397,180 14,934,717 15,222,308 14,774,546 Group Føroya Banki
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Interim Report H1 2026 15 Balance Sheet Føroya Banki June 30 Dec. 31 June 30 Dec. 31 Note DKK 1,000 2026 2025 2026 2025 Shareholders' equity and liabilities Liabilities other than provisions Amounts due to credit institutions and central banks 479,376 505,739 479,376 505,739 Deposits and other debt 11,393,064 10,948,209 11,412,957 10,956,570 Deposits under pooled schemes and unit-linked investments contracts 101,986 85,154 101,986 85,154 Issued bonds at amortised cost 932,689 903,790 932,689 903,790 Liabilities under insurance contracts 178,366 151,764 0 0 Current tax liabilities 97,533 67,942 84,430 58,140 Other liabilities 165,389 148,620 162,550 144,028 Deferred income 1,760 3,488 1,760 1,644 Total liabilities other than provisions 13,350,163 12,814,706 13,175,749 12,655,065 Provisions for liabilities Provisions for deferred tax 458 530 0 0 Provisions for losses on guarantees etc 2,743 1,614 2,743 1,614 Provisions for other liabilities 5,096 2,624 5,096 2,624 Total provisions for liabilities 8,297 4,769 7,839 4,238 Subordinated debt Subordinated debt 99,444 99,930 99,444 99,930 Total liabilities 13,457,904 12,919,405 13,283,032 12,759,234 E quity Share capital 192,000 192,000 192,000 192,000 Reserve, Equity Method 0 0 36,788 16,891 Revaluation reserve 6,718 6,718 6,718 6,718 Retained earnings 1,740,559 1,614,595 1,703,770 1,597,704 Proposed dividends 0 202,000 0 202,000 Total equity 1,939,276 2,015,313 1,939,276 2,015,313 Total liabilities and equity 15,397,180 14,934,717 15,222,308 14,774,546 Group
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Interim Report H1 2026 16 Statement of changes in equity - Føroya Banki Group Share Revaluation Proposed R etained DKK 1,000 capital R eserve dividends earnings Total Shareholders' equity at January 1, 2026 192,000 6,718 202,000 1,614,595 2,015,313 Net profit 0 125,410 125,410 Total comprehensive income 0 0 125,410 125,410 Dividends paid -202,000 553 -201,447 Shareholders' equity at June 30, 2026 192,000 6,718 0 1,740,559 1,939,276 Share Revaluation Proposed R etained DKK 1,000 capital R eserve dividends 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 Share Revaluation Proposed R etained DKK 1,000 capital R eserve dividends earnings Total Shareholders' equity at January 1, 2025 192,000 6,718 350,000 1,527,319 2,076,037 Net profit 0 153,996 153,996 Total comprehensive income 0 153,996 153,996 Dividends paid -350,000 958 -349,042 Shareholders' equity at June 30, 2025 192,000 6,718 0 1,682,274 1,880,992 Shareholders equity
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Interim Report H1 2026 17 Statement of changes in equity - Føroya Banki P/F E quity Share Revaluation method Proposed R etained DKK 1,000 capital R eserve reserve dividends earnings Total Shareholders' equity at January 1, 2026 192,000 6,718 16,891 202,000 1,597,704 2,015,313 Net profit 19,897 0 105,513 125,410 Total comprehensive income 0 19,897 0 105,513 125,410 Dividends paid -202,000 553 -201,447 Shareholders' equity at June 30, 2026 192,000 6,718 36,788 0 1,703,770 1,939,276 E quity Share Revaluation method Proposed R etained DKK 1,000 capital R eserve reserve dividends 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 E quity Share Revaluation method Proposed R etained DKK 1,000 capital R eserve reserve dividends earnings Total Shareholders' equity at January 1, 2025 192,000 6,718 0 350,000 1,527,319 2,076,037 Net profit 0 153,996 153,996 Total comprehensive income 0 0 0 153,996 153,996 Dividends paid -350,000 958 -349,042 Shareholders' equity at June 30, 2025 192,000 6,718 0 0 1,682,274 1,880,992 Shareholders equity
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Interim Report H1 2026 18 Capital and Solvency - P/F Føroya Banki Solvency June 30 Dec. 31 DKK 1,000 2026 2025 Tier 1 capital 1,798,684 1,799,971 Total capital 1,898,129 1,899,901 Risk-w eighted items not included in the trading portfolio 6,119,309 6,422,812 Risk-w eighted items w ith market risk etc. 203,715 237,353 Risk-w eighted items w ith operational risk 710,781 1,072,224 Total risk-weighted items 7,033,805 7,732,389 CET 1 capital ratio 25.6% 23.3% Tier 1 capital ratio 25.6% 23.3% Total capital ratio 27.0% 24.6% Total capital, incl. MREL capital, ratio 40.2% 36.3% Shareholders' equity Share capital 192,000 192,000 Reserves 43,506 23,609 Net profit 125,410 288,317 Retained earnings, previous years 1,585,011 1,518,905 Shareholders' equity, before deduction of holdings of own shares 1,945,927 2,022,831 Deduction of ordinary dividend 0 202,000 Deduction of net profit for H1 125,410 0 Deduction of holdings of ow n shares 6,651 7,519 Deduction of MLC regarding Non Performing Exposures 1,933 242 Deduction of intangible assets 157 466 Deduction of deferred tax assets 11,557 11,557 Deduction regarding prudent valuation of financial instruments 1,535 1,077 CET 1 capital 1,798,684 1,799,971 Tier 1 capital 1,798,684 1,799,971 Subordinated Tier 2 capital 99,444 99,930 Total capital 1,898,129 1,899,901 MREL capital 932,689 903,790 Total capital, incl. MREL capital 2,830,818 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.
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Interim Report H1 2026 19 Cash flow statement - Føroya Banki Group Group Group H1 Full year DKK 1,000 2026 2025 Cash flow from operations Profit before tax 154,929 355,875 Amortisation and impairment charges for intangible assets 309 618 Depreciation and impairment charges of tangible assets 4,927 9,304 Impairment of loans and advances/guarantees 6,080 -1,833 Paid tax -545 -85,771 Other non-cash operating items -10,999 -59,123 Total 154,701 219,071 Changes in operating capital Change in loans at fair value -2,045 30,289 Change in loans at amortised cost -121,648 -615,578 Change in holding of bonds 44,975 669,748 Change in holding of shares 3,665 15,407 Change in deposits 444,855 944,861 Due to credit institutions and central banks 2,207 -260,573 Change in other assets / liabilities 10,891 -70,282 Assets/liabilities under insurance contracts 25,343 -5,255 Prepayments 25,677 2,143 Cash flow from operations 588,622 929,832 Cash flow from investing activities Divestment of sector institution, net of cash 0 29,174 Dividends received 7,492 21,077 Acquisition of intangible assets -194 -950 Acquisition of tangible assets -4,819 -2,154 Sale of tangible assets 0 5,030 Cash flow from investing activities 2,480 52,177 Cash flow from financing activities Change in loans from central banks and credit institutions -28,571 -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 -2,771 -4,255 Cash flow from financing activities -204,865 -500,439 Cash flow 386,236 481,570 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 flow 386,236 481,570 Cash and due etc. 3,874,907 3,488,671 Cash and due etc. Cash in hand and demand deposits w ith central banks 3,591,777 3,249,492 Due from credit institutions, etc. 283,130 239,179 Total 3,874,907 3,488,671
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Interim Report H1 2026 20 Notes to the financial statements Note 1 Significant accounting policies The consolidated financial statements for the first six 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 202 5 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 im pairment 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.
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Interim Report H1 2026 21 Note 2 Operating segments H1 2026, (DKK 1,000) Non-life Insurance 1 Elimination Group Personal Corporate Other Total Faroe Islands Total External interest income, Net 86,814 101,112 4,153 192,079 0 192,079 Internal interest 6,433 -6,433 0 0 0 N et interest income 93,247 94,679 4,153 192,079 0 192,079 Net dividends and fee income 41,539 15,629 1,740 58,908 0 -4,909 53,999 N et insurance result 0 0 5 5 19,356 6,600 25,960 Other income 1,080 633 22,691 24,404 0 -632 23,773 Total income 135,866 110,941 28,590 275,396 19,356 1,059 295,811 Total operating expenses 42,016 10,358 85,050 137,425 0 1,059 138,484 of which depreciation and amortisation 491 0 4,127 4,617 0 4,617 Profit before impairment charges on loans 93,849 100,582 -56,461 137,971 19,356 0 157,327 Impairment charges -4,324 7,089 -368 2,397 0 2,397 Profit before tax 98,173 93,494 -56,093 135,574 19,356 0 154,929 Total assets 4,875,564 4,912,492 5,285,706 15,073,762 323,419 15,397,180 of which Loans and advances 4,875,564 4,912,492 9,788,056 9,788,056 Total liabilities 7,218,712 4,194,245 1,848,938 13,261,896 196,008 13,457,904 of which Deposits 7,218,712 4,194,245 11,412,957 -19,893 11,393,064 of which Insurance liabilities 5 178,362 178,366 1) Please refer to the income statement for a break down of the net insurance result including significant insurance expences. Operating segments H1 2025, (DKK 1,000) Non-life Insurance 1 Elimination Group Personal Corporate Other Total Faroe Islands Total External interest income, Net 84,028 105,908 9,422 199,358 0 199,358 Internal interest 14,378 -14,378 0 0 0 N et interest income 98,406 91,530 9,422 199,358 0 199,358 Net dividends and fee income 48,080 13,813 26 61,919 0 -5,710 56,209 N et insurance result 0 0 3,700 3,700 23,089 7,228 34,017 Other income 94 6,012 31,546 37,652 0 -507 37,145 Total income 146,580 111,354 44,694 302,628 23,089 1,011 326,729 Total operating expenses 37,813 10,497 80,359 128,669 0 1,011 129,681 of which depreciation and amortisation 431 0 3,865 4,296 0 4,296 Profit before impairment charges on loans 108,767 100,858 -35,665 173,959 23,089 0 197,048 Impairment charges 1,786 5,367 -283 6,871 0 6,871 Profit before tax 106,980 95,491 -35,383 167,088 23,089 0 190,178 Total assets 4,486,039 5,210,725 4,626,862 14,323,626 313,146 14,636,771 of which Loans and advances 4,486,039 5,210,725 9,696,764 9,696,764 Total liabilities 6,029,174 4,377,223 2,153,517 12,559,914 195,865 12,755,780 of which Deposits 6,029,174 4,377,223 10,406,397 -23,871 10,382,526 of which Insurance liabilities 2,390 180,750 183,140 1) Please refer to the income statement for a break down of the net insurance result including significant insurance expences. Notes - Føroya Banki Group Banking Banking
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Interim Report H1 2026 22 Føroya Banki Group - Geografical revenue information Note 2 Geografical segments, (DKK 1,000) (cont'd) H1 2026 H1 2025 H1 2026 H1 2025 H1 2026 H1 2025 H1 2026 H1 2025 Faroe Islands 267,107 294,595 112,754 113,972 4,892 -183 -615 3,750 Greenland 28,704 32,134 34,673 35,194 0 638 0 0 Total 295,811 326,729 147,427 149,166 4,892 456 -615 3,750 Geografical segments, (DKK 1,000) H1 2026 H1 2025 H1 2026 H1 2025 Faroe Islands 5,087 6,077 16,116 27,558 Greenland -2,690 793 0 0 Total 2,397 6,871 16,116 27,558 Operational segments, (DKK 1,000) H1 2026 H1 2025 H1 2026 H1 2025 H1 2026 H1 2025 H1 2026 H1 2025 Faroe Islands, Banking, Other 241,147 260,578 109,777 133,121 20,949 25,973 160 161 Faroe Islands, Insurance 25,960 34,017 25,960 34,017 3,484 4,168 21 21 Greenland, Banking 28,704 32,134 19,191 23,037 5,086 6,040 20 17 Total 295,811 326,729 154,929 190,175 29,519 36,182 201 199 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. Total income Non current assets 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 Additions to intangible assets Additions to tangible assets Impairments Investment portfolio earnings
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Interim Report H1 2026 23 Notes Note DKK 1,000 H1 H1 H1 H1 2026 2025 2026 2025 3 Interest income Credit institutions and central banks 28,764 22,227 28,764 22,227 Loans and advances 226,285 237,586 226,285 237,586 Bonds 5,248 8,445 5,248 8,445 Total derivatives of w hich: 969 6,748 969 6,748 Currency contracts -10 -24 -10 -24 Interest rate contracts 979 6,772 979 6,772 Other interest income 129 6,213 130 6,213 Total interest income 261,395 281,219 261,396 281,219 4 Interest expenses Credit institutions and central banks 7,285 12,982 7,285 12,982 Deposits 34,636 45,629 34,636 45,629 Issued bonds 23,230 19,905 23,230 19,905 Subordinated debt 3,238 2,449 3,238 2,449 Lease liabilities 931 986 931 986 Other interest expenses -3 -90 -3 -90 Total interest expenses 69,317 81,861 69,317 81,861 5 Net fee and commission income Fee and commission income Securities trading and custody accounts 9,184 8,239 9,184 8,239 Credit transfers 11,414 10,974 11,414 10,974 Loan commissions 2,107 2,063 2,107 2,063 Guarantee commissions 11,700 11,463 11,700 11,463 Other fees and commissions 15,611 12,194 20,520 17,904 Total fee and commission income 50,016 44,935 54,925 50,644 Fee and commissions paid Securities trading and custody accounts 3,510 3,133 3,510 3,133 Net fee and commission income 46,507 41,801 51,416 47,511 6 Market value adjustments Loans and advances 670 -925 670 -925 Bonds 1,382 12,810 1,382 12,810 Shares 3,609 7,324 3,609 7,324 Foreign exchange 5,256 4,928 5,256 4,928 Total derivatives of w hich: 672 -982 672 -982 Currency Swaps -9,686 6,341 -9,686 6,341 Interest Swaps 664 -1,971 664 -1,971 Other contracts 9,694 -5,352 9,694 -5,352 Assets under pooled schemes 8,798 -497 8,798 -497 Deposits in pooled schemes -8,798 497 -8,798 497 Total market value adjustments 11,589 23,154 11,589 23,154 Group Føroya Banki
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Interim Report H1 2026 24 Note DKK 1,000 H1 H1 H1 H1 2026 2025 2026 2025 7 Other operating income Profit on sale of properties 0 3,702 0 3,702 Other income 7,657 5,884 2,845 1,004 Total other operating income 7,657 9,586 2,845 4,706 8 Staff costs and administrative expenses Staff costs: Salaries 64,008 63,168 58,440 54,370 Pensions 9,528 9,186 8,310 8,010 Social security expenses 10,000 9,524 8,972 8,459 Total staff costs 83,536 81,878 75,722 70,839 Administrative expenses: IT 33,831 33,489 32,671 31,585 Marketing etc 5,761 4,813 4,949 4,208 Education etc 2,178 1,611 2,005 1,267 Other expenses 17,111 17,875 13,563 12,982 Total administrative expenses 58,880 57,788 53,187 50,042 Total staff costs 83,536 81,878 75,722 70,839 Total administrative expenses 58,880 57,788 53,187 50,042 Staff and administrative costs incl. under the item "Insurance service expenses" -8,725 -14,324 0 0 Total staff costs and administrative expenses 133,692 125,342 128,909 120,881 Number of employees Average number of full-time employees in the period 204 205 175 175 E xecutive remuneration: Board of Directors 1,268 1,170 1,268 1,170 Executive Board: Salaries 1,697 1,504 1,697 1,504 - less fees received from directorships 178 180 178 180 The Bank's expense, salaries 1,519 1,324 1,519 1,324 Pension 118 225 118 225 Total executive board 1,637 1,549 1,637 1,549 Total executive remuneration 2,905 2,719 2,905 2,719 Group Føroya Banki
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Interim Report H1 2026 25 Note DKK 1,000 H1 H1 H1 H1 2026 2025 2026 2025 9 Impairment charges on loans and advances and provisions for guarantees etc. Impairment charges and provisions at 31 December 2025 179,289 179,881 179,289 179,881 New and increased impairment charges and provisions 112,089 95,365 112,089 95,365 Reversals of impairment charges and provisions 105,754 85,822 105,754 85,822 Written-off, previously impaired 63 590 63 590 Interest income on impaired loans 708 1,875 708 1,875 Total impairment charges and provisions at 30 June 2026 185,562 188,835 185,562 188,835 Impairment charges and provisions recognised in the income statement Loans and advances at amortised cost 2,638 8,283 2,638 8,283 Loans and advances at fair value -431 -2,972 -431 -2,972 Guarantiees and loan commitments 191 1,560 191 1,560 Assets held for sale 0 0 0 0 Total individual impairment charges and provisions 2,397 6,871 2,397 6,871 Stage 1 impairment charges Stage 1 impairment charges etc. at 31 December 2025 102,561 78,972 102,561 78,972 New and increased Stage 1 impairment charges 51,410 46,478 51,410 46,478 Reversals, net of Stage 1 impairment charges 72,156 54,745 72,156 54,745 Stage 1 impairment charges at 30 June 2026 81,815 70,705 81,815 70,705 Total net impact recognised in the income statement -20,746 -8,267 -20,746 -8,267 Stage 2 impairment charges Stage 2 impairment charges etc. at 31 December 2025 25,851 32,571 25,851 32,571 New and increased impairment charges 45,013 30,439 45,013 30,439 Reversals, net of impairment charges 13,030 20,644 13,030 20,644 Stage 2 impairment charges at 30 June 2026 57,834 42,365 57,834 42,365 Total net impact recognised in the income statement 31,983 9,794 31,983 9,794 Weak Stage 2 Weak Stage 2 impairment charges etc. at 31 December 2025 19,288 6,331 19,288 6,331 New and increased impairment charges 10,531 2,547 10,531 2,547 Reversals, net of impairment charges 13,171 2,892 13,171 2,892 Weak Stage 2 impairment charges at 30 June 2026 16,648 5,986 16,648 5,986 Total net impact recognised in the income statement -2,640 -345 -2,640 -345 Group Føroya Banki
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Interim Report H1 2026 26 Note 9 (cont'd) H1 H1 H1 H1 DKK 1.000 2026 2025 2026 2025 Stage 3 impairment charges Stage 3 impairment charges etc. at 31 December 2025 29,037 60,452 29,037 60,452 New and increased impairment charges 2,836 11,585 2,836 11,585 Reversals of impairment charges 5,289 4,784 5,289 4,784 Written-off, previously impaired 63 590 63 590 Write-offs charged directly to the income statement 452 146 452 146 Received on claims previously written off 3,683 944 3,683 944 Interest income on impaired loans 708 1,875 708 1,875 Stage 3 impairment charges at 30 June 2026 26,521 66,664 26,521 66,664 Total net impact recognised in the income statement -6,391 4,129 -6,391 4,129 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 941 122 941 122 Purchased credit-impaired assets at 30 June 2026 0 974 0 974 Reclassified to Assets in disposal groups classified as held for sale Provisions for guarantees and undrawn credit lines Individual provisions at 31 December 2025 2,552 1,555 2,552 1,555 New and increased provisions 2,299 4,316 2,299 4,316 Reversals of provisions 2,108 2,756 2,108 2,756 Provisions for guarantees etc at 30 June 2026 2,743 3,115 2,743 3,115 Total net impact recognised in the income statement 191 1,560 191 1,560 Provisions for guarantees and undrawn credit lines Stage 1 provisions 874 586 874 586 Stage 2 provisions 1,795 2,218 1,795 2,218 Weak Stage 2 provisions 0 0 0 0 Stage 3 provisions 74 311 74 311 Provisions for guarantees etc at 30 June 2026 2,743 3,115 2,743 3,115 Group Føroya Banki Note DKK 1,000 June 30 Dec. 31 June 30 Dec. 31 2026 2025 2026 2025 10 Due from credit institutions etc. specified by maturity On demand 283,130 239,179 283,130 239,179 Total due from credit institutions etc. 283,130 239,179 283,130 239,179 11 Contingent liabilities Guarantees Financial guarantees 195,188 196,594 195,188 196,594 Mortgage finance guarantees 349,250 321,593 349,250 321,593 Registration and remortgaging guarantees 311,622 68,039 342,050 124,771 Other garantees 70,592 66,707 202,340 201,403 Total guarantees 926,652 652,932 1,088,828 844,360 12 Assets deposited as collateral Group Føroya Banki At June 30 2026 the Group had deposited cash amounting to DKK 16.2m (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 6.7m (Dec. 31 2025: DKK 12.0m) in connection w ith negative market value of derivatives.
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Interim Report H1 2026 27 Statement by the Executive Board and the Board of Directors We have today considered and approved P/F Føroya Banki’s interim report for the first six months to 30 June 2026. The consolidated financial statements for the first six months to 30 June 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 30 June 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 six months ended 30 June 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, 5 August 2026 Executive Board Turið F. Arge CEO Board of Directors Birgir Durhuus Annfinn Vitalis Hansen Kristian Reinert Davidsen Chair Vice chair Marjun Hanusardóttir Tom Ahrenst Árni Tór Rasmussen Oliver Granhøj Kenneth M. Samuelsen Svend Jacobsen
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Interim Report H1 2026 28 Contact details Head Office P/F Føroya Banki Oknarvegur 5 P.O. Box 3048 FO-110 Tórshavn Faroe Islands Phone: +298 330 330 E-mail: kundi@bankin.fo 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 Branches Faroe 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