Interim report
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1 Interim Report H1 2023 3 August 2023
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Interim Report Q3 2026 2 Contents MANAGEMENT’S REPORT • Financial highlights and ratios.................................................................................................... 3 • Financial review..........................................................................................................................4 - Q3 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 - Updated strategy and financial targets for 2027 – 2030 …..…...…………………..…………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
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Interim Report Q3 2026 3 Financial highlights and ratios - Føroya Banki Group Highlights Q1-Q3 Q1-Q3 Q3 Q2 Q1 Q4 Q3 DKK 1,000 2026 2025 Index 2026 2026 2026 2025 2025 Net interest income 297,565 293,745 101 105,487 97,741 94,338 94,358 94,386 Dividends from shares and other investments 7,492 14,407 52 0 5,072 2,420 6,669 0 Net fee and commision income 69,154 63,926 108 22,648 23,683 22,824 23,958 22,125 Net interest and fee income 374,212 372,078 101 128,135 126,496 119,582 124,985 116,511 Net insurance result 30,865 47,464 65 4,904 13,218 12,742 18,591 13,447 Interest and fee income and income from insurance activities, net 405,077 419,543 97 133,039 139,714 132,324 143,576 129,958 Market value adjustments 15,679 31,293 50 4,090 9,721 1,868 3,492 8,139 Other operating income 11,572 12,577 92 3,915 4,102 3,555 2,259 2,990 Staff costs and administrative expenses 200,691 192,369 104 66,999 67,233 66,459 64,165 67,027 Impairment charges on loans and advances etc. -2,509 -1,636 153 -4,907 3,093 -696 -2,346 -8,507 Net profit 187,190 217,675 86 61,779 69,500 55,911 70,642 63,679 Loans and advances 9,930,888 9,598,042 103 9,930,888 9,788,056 9,773,649 9,669,773 9,598,042 Bonds at fair value 2,764,665 1,492,287 185 2,764,665 1,061,950 1,102,536 1,106,209 1,492,287 Intangible assets 0 4,591 0 0 3,800 4,011 4,415 4,591 Assets held for sale 2,207 2,207 100 2,207 2,207 2,207 2,207 2,207 Total assets 15,704,070 15,170,186 104 15,704,070 15,397,180 15,039,335 14,934,717 15,170,186 Amounts due to credit institutions and central banks 443,009 837,987 53 443,009 479,376 499,664 505,739 837,987 Issued bonds at amortised cost 928,039 901,052 103 928,039 932,689 935,362 903,790 901,052 Deposits and other debt 11,627,822 10,803,028 108 11,627,822 11,393,064 11,095,838 10,948,209 10,803,028 Total shareholders' equity 2,001,056 1,944,670 103 2,001,056 1,939,276 1,869,776 2,015,313 1,944,670 Sept. 30 Sept. 30 Sept. 30 June 30 March 31 Dec. 31 Sept. 30 Ratios and key figures 2026 2025 2026 2026 2026 2025 2025 Solvency Total capital, incl. MREL capital, ratio, % 39.5 36.6 39.5 40.2 40.2 36.3 36.6 Total capital ratio, % 26.5 24.5 26.5 27.0 26.9 24.6 24.5 Tier 1 capital ratio, % 25.1 23.1 25.1 25.6 25.5 23.3 23.1 CET 1 capital 25.1 23.1 25.1 25.6 25.5 23.3 23.1 RWA , DKK mill 7,148 7,412 7,148 7,034 7,054 7,732 7,412 Profitability Return on shareholders' equity after tax, % 9.3 10.8 3.1 3.6 2.9 3.6 3.3 Cost / income, % 47.1 42.2 45.8 46.1 49.4 42.9 43.0 Cost / income, % (excl. value adjustm. and impairments) 49.4 45.6 50.8 47.0 50.6 45.5 52.1 Return on assets 1.2 1.4 0.4 0.5 0.4 0.5 0.4 Market risk Interest rate risk, % 0.6 0.8 0.6 0.6 0.7 0.6 0.8 Foreign exchange position, % 0.7 0.3 0.7 0.7 0.9 1.0 0.3 Foreign exchange risk, % 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Liquidity Liquidity Coverage Ratio (LCR), % 259.0 294.5 259.0 273.5 322.4 306.4 294.5 Net Stable Funding Ratio. (NSFR), % 165.8 163.4 165.8 167.5 163.2 160.6 163.4 Credit risk Change in loans and advances, % 2.7 5.6 1.5 0.1 1.1 0.7 -1.0 Gearing of loans and advances 5.0 4.9 5.0 5.0 5.2 4.8 4.9 Impairment and provisioning ratio, end of period, % 1.7 1.7 1.7 1.7 1.6 1.7 1.7 Write-off and provisioning ratio, % 0.0 0.0 0.0 0.0 0.0 0.0 -0.1 Shares Earnings per share after tax (nom. DKK 20), DKK 19.6 22.7 6.5 7.3 5.8 7.4 6.7 Market price per share (nom. DKK 20), DKK 281.0 195.0 281.0 253.0 245.0 286.0 195.0 Book value per share (nom. DKK 20), DKK 209.0 203.1 209.0 202.6 195.3 210.5 203.1 Other Number of full-time employees, end of period 209 202 209 201 207 201 202
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Interim Report Q3 2026 4 Financial Review “The Group’s stable and positive performance continued in Q3 2026. We saw healthy growth in lending, deposits and assets under management, which, together with interest rate developments, contributed to higher net interest income as well as higher fee and commission income. Moreover, the cost level was more or less flat. We noted with satisfaction that our customers remain financially robust with strong credit quality, which was, among other things, reflected in another net reversal of impairment for the quarter. The insurance service result was affected by higher claims, and the return on the investment portfolio was lower than in the preceding quarter. Overall, we reported a satisfactory net profit of DKK 62m for Q3 with continued growth in our core business,” says CEO Turið F. Arge. Q3 2026 Highlights Income statement The following comments are generally stated relative to Q 2 2026. Due to seasonal variations, comments provided on the insurance segment also relate to Q3 2025. Operating income The Føroya Banki Group generated operating income of DKK 1 26m in Q3 2026, down DKK 2m compared to Q2 2026. Net interest income Net interest income was DKK 82m in Q3 2026, an increase of DKK 1m compared to Q 2 2026. The increase was mainly driven by marginally higher interest margins and a slightly larger portfolio of loans and deposits. Net fee and commission income Net fee and commission income amounted to DKK 2 4m in Q3 2026, up DKK 1m compared to Q2 2026. Net fee and commission income stems mainly from securities trading, custody accounts, credit transfers and guarantee commissions and other fees. Adjusted Income statement, Group DKKm Q1-Q3 2026 Q1-Q3 2025 Index Q3 2026 Q2 2026 Index Q1 2026 Q4 2025 Q3 2025 Net interest income 241 237 102 82 81 101 78 79 77 Net fee and commission income 69 60 115 24 23 104 23 24 21 Net insurance income 34 56 61 7 11 60 16 20 14 Other operating income (less reclassification) 38 48 79 13 13 104 11 10 11 Total operating income 382 402 95 126 128 98 128 132 123 Operating costs1 218 210 104 73 73 99 72 70 73 Profit before impairment charges 164 192 85 53 55 97 56 63 50 Impairment charges, net -3 -2 153 -5 3 -1 -2 -9 Operating profit 167 194 86 58 52 112 57 65 58 Investment portfolio earnings2 65 77 84 18 34 55 13 20 22 Profit before tax 231 271 85 76 85 90 70 85 80 Operating costs/income, % 57 52 58 57 56 53 59 Number of FTE, end of period 209 202 104 209 201 104 207 201 202 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 Q3 2026 5 Net insurance income Net insurance income was DKK 7m in Q3 2026, DKK 7m lower than in the same period in 2025 due to higher claims. Compared to Q2 2026, net insurance income was down DKK 5m, also due to higher claims in Q3 2026 than in Q2 2026. Other operating income Other operating income was DKK 13m in Q 3 2026, flat compared to the previous quarter. Compared to Q3 2025 other operating income was up DKK 3m due to higher income from the banks sector shares and to higher income from foreign exchange adjustments. Operating costs Operating costs amounted to DKK 73m in Q3 2026, unchanged compared to Q2 2026. Profit before impairment charges Profit before impairment charges was DKK 53m in Q3 2026 compared to DKK 55m in Q2 2026. Impairment charges Net impairment amounted to a reversal of DKK 5m in Q3 2026 compared to charges of DKK 3m in Q2 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 58m in Q 3 2026, DKK 6m higher than the DKK 52m reported in Q2 2026. Investment portfolio earnings Investment portfolio earnings amounted to DKK 18m in Q3 2026, which was DKK 15m lower than in Q2 2026. The figure was mainly impacted by lower returns on the Bank’s bond portfolio in Q3 2026 compared to Q2 2026. Profit before tax Profit before tax in Q3 2026 was DKK 76m, DKK 9m lower than in the preceding quarter, which saw a pre-tax profit of DKK 85m. Profit before tax for Q1-Q3 2026 totalled DKK 231m compared to DKK 271m for the same period in 2025. Compared to the same period in 2025, net insurance income was down DKK 22m due to higher claims and other operating income was down DKK 10m due to extraordinary income in 2025. Income from the investment portfolio in Q1-Q3 2026 was down DKK 12m compared to the same period in 2025. The Bank is pleased with the continued positive development in business volumes, driven by growth in loans, deposits and assets under management, which supports stable earnings. Continued low impairment charges and satisfactory earnings on the investment portfolio contributed to a strong financial performance for the Group in Q3 2026. Balance sheet Føroya Banki Group's total assets at 30 September 2026 amounted to DKK 15.7bn, up DKK 0.8bn compared to 31 December 2025. Loans and advances were DKK 9.9bn, DKK 261m (up 3%) higher than at 31 December
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Interim Report Q3 2026 6 2025. Deposits were DKK 11.6bn, up DKK 680m (up 6%) compared to 31 December 2025. Liquidity invested in Danish mortgage bonds and Danish government bonds amounted to DKK 2.8bn, an increase of DKK 1.7bn compared to 31 December 2025. Shareholders’ equity at 30 September 2026 amounted to DKK 2,0bn, down DKK 14m compared to 31 December 2025 due to dividend payments amounting to DKK 202m. Capital and liquidity At 30 September 2026, the Group’s CET 1 capital ratio was 25.1%, the Tier 1 capital ratio was 25.1% and the Total capital ratio was 26.5%. The Total capital ratio, incl. MREL capital, was 39.5%. The net profit for Q1-Q3 2026, amounting to DKK 187.2m, is not included in the calculation of the capital ratios. On 20 October, the Group announced the issuance of Senior Non- preferred bonds amounting to DKK 250m. The bonds have a maturity of 6 years with the option to call after 4 years. The Group’s liquidity indicator was 225.6% on 30 September 2026, well above the requirement of 100%. The Group’s LCR at 30 September 2026 was 259.0%, also well above the requirement of 100%. The Group’s Net Stable Funding Ratio (NSFR) was 165.8% at 30 September 2026, well above the requirement of 100%. Compliance with the Danish FSA Supervisory Diamond At 30 September 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 September 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. On 15 October, the Group raised its outlook for the net profit guidance for 2026 from DKK 190- 235m to DKK 225-255m. The upgrade was primarily driven by low impairment, reflecting the robust credit quality of the loan portfolio. Furthermore, net interest income and fee and commission income developed more favourably than expected, while the insurance result fell short of expectations. 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 Q3 2026 Q3 2025 FSA limit Sum of large exposures 141.7% 140.7% < 175% Liquidity indicator 225.6% 234.3% >100 % Loan growth 3.5% 5.8% < 20 % Property exposure 9.4% 11.0% < 25 %
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Interim Report Q3 2026 7 Updated strategy and financial targets for 2027-2030 The Board of Directors has adopted an updated strategy for the period 2027- 2030 building on the Group’s strong foundation and financial performance. The financial targets of a return on shareholders’ equity in excess of 12%, a CET 1 capital ratio of around 23% and a pay-out ratio of 70% are maintained and continue to guide the Group’s business development. This reflects both confidence in the Group’s future performance and a recognition that achieving the targets will require a sustained effort. In future, Cost/Income will be an internal target rather than an external one. The purpose is to support more long- term management of cost - effectiveness and does not reflect a lower level of ambition. The strategy focuses on unlocking the Group’s growth potential in the Faroe Islands and in Greenland through a more targeted customer approach, segmented customer service and with technology as a key enabler. The aim is to build strong customer relationships at an early stage and to make customer onboarding quicker and easier. For example, during the strategy period, we intend to make it possible for personal customers to join the Bank in ten minutes and for a loan enquiry to be processed in under an hour. Finally, the strategy comprises specific plans to integrate artificial intelligence where appropriate in order to streamline workflows, free up resources and enhance the customer experience and the Bank’s competitiveness. “The strategy is ambitious and sets out a number of specific growth targets, and it is crucial that we maintain our focus on costs and work purposefully to implement the strategy within the existing cost limits. We need to be able to scale our processes and systems to match our growth without a proportionate rise in costs,” says Turið F. Arge, Chief Executive Officer.
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Interim Report Q3 2026 8 Adjusted results Note Adjusted Income statement Q1-Q3 2026, Group, (DKK 1,000) Income statement R estatement R estated income statement 1 Net interest income 297,565 -56,561 241,004 2 Net fee and commission income 76,647 -7,595 69,052 4, 5 Net insurance income 30,865 3,412 34,277 2, 3 Other operating income 11,572 26,123 37,695 Operating income 416,648 -34,621 382,027 4 Operating costs 208,054 9,939 217,993 Profit before impairment charges 208,595 -44,560 164,035 Impairment charges -2,509 0 -2,509 Operating profit 211,104 -44,560 166,544 1, 3, 5 Investment portfolio earnings 20,206 44,560 64,766 Profit before tax 231,310 0 231,310 Note Adjusted Income statement Q1-Q3 2025, Group, (DKK 1,000) 1 Net interest income 293,745 -56,345 237,400 2 Net fee and commission income 78,334 -18,047 60,287 4, 5 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 4 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, 5 Investment portfolio earnings 35,697 41,198 76,895 Profit before tax 270,560 0 270,560 Note Q1-Q3 2026 Q1-Q3 2025 1 56,561 56,345 2 7,595 18,047 3 18,528 17,243 4 9,939 11,000 5 6,527 2,096 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 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. R estatements made to the income statement (D K K 1,000)
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Interim Report Q3 2026 9 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 Q1-Q3 2026 Q1-Q3 2025 Index Q3 2026 Q2 2026 Index Q1 2026 Q4 2025 Q3 2025 Net interest income 241 237 102 82 81 101 78 79 77 Net fee and commission income 78 73 108 27 26 104 26 27 25 Other operating income 30 40 75 11 10 104 9 8 8 Total operating income 349 350 100 120 117 102 112 114 110 Operating costs 200 192 104 66 67 99 66 64 67 Profit before impairment charges 149 159 94 53 50 106 46 50 43 Impairment charges, net -3 -2 153 -5 3 -1 -2 -9 Operating profit 152 160 95 58 47 124 47 52 52 Investment portfolio earnings 58 71 82 18 27 68 13 18 18 Profit before tax 210 231 91 76 74 103 60 70 70 Loans and advances 9,931 9,600 103 9,931 9,788 101 9,774 9,670 9,600 Deposits and other debt 11,653 10,835 108 11,653 11,413 102 11,112 10,957 10,835 Mortgage credit 2,958 2,789 106 2,958 3,015 98 3,095 2,824 2,789 Operating costs/income, % 57 55 56 57 59 56 61 Number of FTE, end of period 182 173 105 182 172 106 178 173 173
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Interim Report Q3 2026 10 Personal Banking The Personal Banking segment reported operating income of DKK 66m in Q3 2026, DKK 1m higher than in Q2 2026. Net interest income was DKK 40 m in Q3 2026, up DKK 1m compared to the previous quarter. Net fee and commission income amounted to DKK 19 m in Q 3 2026, DKK 1m higher than in Q 2 2026. Other operating income amounted to DKK 7m in Q3 2026, flat compared to Q2 2026. Operating costs were DKK 54 m in Q 3 2026, a decrease of DKK 1 m relative to Q 2 2026. Net impairment amounted to a reversal of DKK 3m in Q3 2026 compared to DKK 0m in Q2 2026. The Bank remains of the opinion that customers in the personal banking segment continue to be robust. The resulting operating profit for Q3 2026 was DKK 15m, up DKK 6m from DKK 9m in the previous quarter. Investment portfolio earnings posted to the Personal Banking segment amounted to DKK 10m in Q3 2026 compared to DKK 14 m in Q 2 2026. The figure was mainly impacted by lower returns on the Bank’s bond portfolio in Q3 2026 compared to Q2 2026. Profit before tax thus amounted to DKK 24m in Q3 2026 compared to DKK 23m in Q2 2026. Loans and advances to personal customers increased by DKK 198m (up 4%) to DKK 5,060m at the end of Q3 2026, while mortgage broking services decreased by DKK 46m (down 2%) to DKK 2,168m, both compared to 30 June 2026. Deposits held by personal customers increased by DKK 145m (up 2%) during the third quarter to DKK 6,730m at 30 September 2026. Adjusted Income statement, Personal banking DKKm Q1-Q3 2026 Q1-Q3 2025 Index Q3 2026 Q2 2026 Index Q1 2026 Q4 2025 Q3 2025 Net interest income 117 116 101 40 39 102 37 37 37 Net fee and commission income 56 55 102 19 18 104 18 20 19 Other operating income 20 25 80 7 7 98 6 4 5 Total operating income 192 195 98 66 64 102 62 61 62 Operating costs 163 159 103 54 55 98 54 52 57 Profit before impairment charges 29 36 79 12 9 130 8 9 5 Impairment charges, net -7 2 -339 -3 0 -5 4 0 Operating profit 36 34 106 15 9 171 13 4 4 Investment portfolio earnings 31 38 82 10 14 69 7 9 9 Profit before tax 67 72 93 24 23 107 20 14 14 Loans and advances 5,060 4,532 112 5,060 4,863 104 4,754 4,647 4,532 Deposits and other debt 6,730 6,108 110 6,730 6,585 102 6,248 6,121 6,108 Mortgage credit 2,168 2,203 98 2,168 2,214 98 2,223 2,217 2,203 Number of FTE, end of period 81 77 105 81 76 106 80 77 77
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Interim Report Q3 2026 11 Corporate Banking Corporate Banking activities generated operating income of DKK 54m in Q 3 2026, up 1% on the previous quarter. Compared to Q2 2026, net interest income in Q3 2026 was flat at DKK 42m. Net fee and commission income increased by DKK 1m to DKK 8m compared to Q2 2026, while other operating income increased DKK 1m in Q3 2026 to DKK 4m. Operating costs were DKK 12m in Q 3 2026, flat compared to Q2 2026. Net impairment in Q 3 2026 was a reversal of DKK 2m compared to a charge of DKK 3m in Q 2 2026. The Bank remains of the view that its corporate client base continues to show solid and improving creditworthiness. Operating profit for Q3 2026 amounted to DKK 44m, an increase of DKK 5m relative to Q2 2026. Investment portfolio earnings posted to the Corporate Banking segment in Q 3 2026 were DKK 8m, DKK 4m lower than in the preceding quarter. The figure was mainly impacted by lower returns on the Bank’s bond portfolio in Q3 2026 compared to Q2 2026. The resulting profit before tax for Q3 2026 was DKK 52m, up DKK 1m compared to Q2 2026. Corporate loans and advances decreased by DKK 55m (down 1%) in Q3 2026 to DKK 4,870m at 30 September 2026. Customer deposits increased by DKK 95m (up 2%) during Q3 2026 to DKK 4,923m. Mortgage broking services decreased by DKK 10m (down 1%) to DKK 790m at 30 September 2026 compared to 30 June 2026. Adjusted Income statement, Corporate Banking DKKm Q1-Q3 2026 Q1-Q3 2025 Index Q3 2026 Q2 2026 Index Q1 2026 Q4 2025 Q3 2025 Net interest income 124 121 102 42 42 100 40 42 39 Net fee and commission income 22 18 124 8 7 104 7 7 6 Other operating income 11 16 67 4 4 117 3 4 3 Total operating income 157 155 101 54 53 101 50 53 49 Operating costs 37 33 112 12 12 102 12 12 10 Profit before impairment charges 121 122 99 42 41 101 38 41 38 Impairment charges, net 5 -4 127- -2 3 -74 4 -6 -9 Operating profit 116 126 92 44 38 114 34 47 47 Investment portfolio earnings 27 33 82 8 12 66 6 9 8 Profit before tax 143 159 90 52 51 102 40 56 56 Loans and advances 4,870 5,068 96 4,870 4,925 99 5,020 5,023 5,068 Deposits and other debt 4,923 4,726 104 4,923 4,828 102 4,864 4,835 4,726 Mortgage credit 790 585 135 790 800 99 871 606 585 Number of FTE, end of period 16 13 116 16 15 106 15 13 13
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Interim Report Q3 2026 12 Insurance: Trygd Trygd reported premium income of DKK 44m in Q3 2026, DKK 2m higher than in Q3 2025. In Q3 2026, claims were DKK 37m, up DKK 12m compared to Q3 2025. Net income from investment activities amounted to DKK 0m in Q3 2026, down DKK 3m compared to Q3 2025. As a result, operating income was DKK 7m in Q3 2026 compared to DKK 20m in Q3 2025. Operating costs were DKK 8m in Q3 2026, up DKK 1m compared to Q 3 2025. As a result, Trygd reported a loss before tax for Q3 2026 of DKK -1m, a decline of DKK 14m compared to Q3 2025. Profit before tax for Q1-Q3 2026 totalled DKK 19m compared to DKK 37m 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 Q1-Q3 2026 Q1-Q3 2025 Index Q3 2026 Q2 2026 Index Q1 2026 Q4 2025 Q3 2025 Premium income, net of reinsurance 129 124 105 44 43 102 43 42 42 Claims, net of reinsurance 94 71 132 37 31 118 27 22 25 Net insurance income 35 53 67 7 11 61 17 20 17 Net income from investment activities 6 5 118 0 7 2 -1 2 4 Operating income 41 58 71 7 18 39 16 22 20 Operating costs 23 21 108 8 8 105 7 7 7 Profit before tax 19 37 50 -1 11 -8 9 15 14 Combined ratio 91 77 102 92 80 72 78 Claims ratio 73 58 84 73 61 52 59 Number of FTE, end of period 20 21 95 20 21 94 21 21 21
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Interim Report Q3 2026 13 Income statement Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 Note DKK 1,000 2026 2025 2026 2025 3 Interest income calculated using the effective interest method 379,079 392,361 404,942 413,521 3 Other interest income 25,863 21,160 4 Interest expenses 107,376 119,776 107,376 119,776 N et interest income 297,565 293,745 297,566 293,745 Dividends from shares and other investments 7,492 14,407 7,492 14,407 5 Fee and commission income 74,772 68,528 83,700 77,123 5 Fee and commissions paid 5,617 4,602 5,617 4,602 Net dividend, fee and commission income 76,647 78,334 85,575 86,929 N et interest and fee income 374,212 372,078 383,141 380,674 Insurance revenue 139,403 149,588 Insurance service expenses 110,220 102,841 Net return on investments backing insurance liabilities 5,626 4,682 Net finance income or expense from insurance 818 348 Other expenses 4,763 4,313 N et insurance result 30,865 47,464 0 0 Interest and fee income and income from insurance activities, net 405,077 419,543 383,141 380,674 6 Market value adjustments 15,679 31,293 15,679 31,293 7 Other operating income 11,572 12,577 4,275 5,198 8 Staff costs and administrative expenses 200,691 192,369 192,785 185,558 Amortisation, depreciation and impairment charges 7,100 6,481 6,924 6,283 Other operating expenses 263 42 263 42 9 Impairment charges on loans and advances etc. -2,509 -1,636 -2,509 -1,636 Income from investments accounted for under the equity method 4,527 4,404 21,871 36,579 Profit before tax 231,310 270,560 227,502 263,497 Tax 44,120 52,885 40,312 45,822 Net profit 187,190 217,675 187,190 217,675 Portion attributable to Shareholders of Føroya Banki P/F 187,190 217,675 187,190 217,675 Net profit 187,190 217,675 187,190 217,675 EPS Basic for the perdiod, DKK* 19.55 22.74 19.55 22.74 EPS Diluted for the perdiod, DKK* 19.55 22.74 19.55 22.74 *Based on average number of shares outstanding. Group Føroya Banki
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Interim Report Q3 2026 14 Statement of comprehensive income - Føroya Banki Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 DKK 1,000 2026 2025 2026 2025 Net profit 187,190 217,675 187,190 217,675 Other comprehensive income Total other comprehensive income 0 0 0 0 Total comprehensive income 187,190 217,675 187,190 217,675 Føroya BankiGroup
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Interim Report Q3 2026 15 Balance Sheet Sept. 30 Dec. 31 Sept. 30 Dec. 31 Note DKK 1,000 2026 2025 2026 2025 Assets 10 Cash in hand and demand deposits w ith central banks 2,132,876 3,249,492 2,126,794 3,236,393 9 Amounts due from credit institutions and central banks 170,138 239,179 170,138 239,179 9 Loans and advances at fair value 290,424 285,267 290,424 285,267 Loans and advances at amortised cost 9,640,464 9,384,505 9,640,464 9,384,505 Bonds at fair value 2,764,665 1,106,209 2,557,670 900,434 Shares, etc. 284,341 280,011 172,207 170,731 Assets under insurance contracts 7,724 3,320 0 0 Holdings in associates 23,924 21,216 23,924 21,216 Holdings in subsidiaries 1 0 165,864 180,020 Assets under pooled schemes and unit-linked investment contracts 107,383 85,154 107,383 85,154 Intangible assets 3,456 4,415 0 466 Total land and buildings 102,644 106,139 102,644 106,139 Domicile property 52,658 52,961 52,658 52,961 Domicile property (lease asset) 49,986 53,177 49,986 53,177 Other property, plant and equipment 15,232 13,172 14,151 11,737 Current tax assets 53,209 61,341 53,209 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 90,589 49,445 88,975 47,990 Prepayments 3,129 31,979 2,468 30,210 Total assets 15,704,070 14,934,717 15,530,080 14,774,546 Group Føroya Banki
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Interim Report Q3 2026 16 Balance Sheet Føroya Banki Sept. 30 Dec. 31 Sept. 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 443,009 505,739 443,009 505,739 Deposits and other debt 11,627,822 10,948,209 11,653,219 10,956,570 Deposits under pooled schemes and unit-linked investments contracts 107,383 85,154 107,383 85,154 Issued bonds at amortised cost 928,039 903,790 928,039 903,790 Liabilities under insurance contracts 181,451 151,764 0 0 Current tax liabilities 93,929 67,942 80,865 58,140 Other liabilities 210,454 148,620 206,040 144,028 Deferred income 1,535 3,488 1,535 1,644 Total liabilities other than provisions 13,593,622 12,814,706 13,420,090 12,655,065 Provisions for liabilities Provisions for deferred tax 458 530 0 0 Provisions for losses on guarantees etc 7,045 1,614 7,045 1,614 Provisions for other liabilities 2,863 2,624 2,863 2,624 Total provisions for liabilities 10,367 4,769 9,908 4,238 Subordinated debt Subordinated debt 99,026 99,930 99,026 99,930 Total liabilities 13,703,014 12,919,405 13,529,025 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 1,802,338 1,614,595 1,765,550 1,597,704 Proposed dividends 0 202,000 0 202,000 Total equity 2,001,056 2,015,313 2,001,056 2,015,313 Total liabilities and equity 15,704,070 14,934,717 15,530,080 14,774,546 Group
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Interim Report Q3 2026 17 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 0 187,190 187,190 Total comprehensive income 0 0 187,190 187,190 Dividends paid -202,000 553 -201,447 Shareholders' equity at September 30, 2026 192,000 6,718 0 1,802,338 2,001,056 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 0 217,675 217,675 Total comprehensive income 0 217,675 217,675 Dividends paid -350,000 958 -349,042 Shareholders' equity at September 30, 2025 192,000 6,718 0 1,745,953 1,944,670 Shareholders equity
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Interim Report Q3 2026 18 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 0 167,293 187,190 Total comprehensive income 0 19,897 0 167,293 187,190 Dividends paid -202,000 553 -201,447 Shareholders' equity at September 30, 2026 192,000 6,718 36,788 0 1,765,550 2,001,056 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 Dividends received 0 0 0 Dissolution of revaluation reserves in group enterprises 0 0 0 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 0 217,675 217,675 Total comprehensive income 0 0 0 217,675 217,675 Dividends paid -350,000 958 -349,042 Shareholders' equity at September 30, 2025 192,000 6,718 0 0 1,745,953 1,944,670 Shareholders equity
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Interim Report Q3 2026 19 Capital and Solvency - P/F Føroya Banki Solvency Sept. 30 Dec. 31 DKK 1,000 2026 2025 Tier 1 capital 1,794,003 1,799,971 Total capital 1,893,029 1,899,901 Risk-w eighted items not included in the trading portfolio 6,118,459 6,422,812 Risk-w eighted items w ith market risk etc. 318,369 237,353 Risk-w eighted items w ith operational risk 710,781 1,072,224 Total risk-weighted items 7,147,609 7,732,389 CET 1 capital ratio 25.1% 23.3% Tier 1 capital ratio 25.1% 23.3% Total capital ratio 26.5% 24.6% Total capital, incl. MREL capital, ratio 39.5% 36.3% Shareholders' equity Share capital 192,000 192,000 Reserves 43,506 23,609 Net profit 187,190 288,317 Retained earnings, previous years 1,585,747 1,518,905 Shareholders' equity, before deduction of holdings of own shares 2,008,443 2,022,831 Deduction of ordinary dividend 0 202,000 Deduction of net profit 187,190 0 Deduction of holdings of ow n shares 7,387 7,519 Deduction of MLC regarding Non Performing Exposures 4,987 242 Deduction of intangible assets 0 466 Deduction of deferred tax assets 11,557 11,557 Deduction regarding prudent valuation of financial instruments 3,319 1,077 CET 1 capital 1,794,003 1,799,971 Tier 1 capital 1,794,003 1,799,971 Subordinated Tier 2 capital 99,026 99,930 Total capital 1,893,029 1,899,901 MREL capital 928,070 903,790 Total capital, incl. MREL capital 2,821,099 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 Q3 2026 20 Cash flow statement - Føroya Banki Group Group Group Q1-Q3 Full year DKK 1,000 2026 2025 Cash flow from operations Profit before tax 231,310 355,875 Amortisation and impairment charges for intangible assets 466 618 Depreciation and impairment charges of tangible assets 7,562 9,304 Impairment of loans and advances/guarantees 1,524 -1,833 Paid tax -18,678 -85,771 Other non-cash operating items -14,514 -59,123 Total 207,669 219,071 Changes in operating capital Change in loans at fair value -12,298 30,289 Change in loans at amortised cost -257,482 -615,578 Change in holding of bonds -1,663,012 669,748 Change in holding of shares 4,369 15,407 Change in deposits 679,613 944,861 Due to credit institutions and central banks -19,874 -260,573 Change in other assets / liabilities 42,122 -70,282 Assets/liabilities under insurance contracts 25,283 -5,255 Prepayments 26,896 2,143 Cash flow from operations -966,713 929,832 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 -257 -950 Acquisition of tangible assets -5,378 -2,154 Sale of tangible assets 0 5,030 Cash flow from investing activities 1,857 52,177 Cash flow from financing activities Change in loans from central banks and credit institutions -42,857 -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 -4,421 -4,255 Cash flow from financing activities -220,801 -500,439 Cash flow -1,185,657 481,570 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 -1,185,657 481,570 Cash and due etc. 2,303,014 3,488,671 Cash and due etc. Cash in hand and demand deposits w ith central banks 2,132,876 3,249,492 Due from credit institutions, etc. 170,138 239,179 Total 2,303,014 3,488,671
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Interim Report Q3 2026 21 Notes to the financial statements Note 1 Significant accounting policies The consolidated financial statements for the first nine 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 Q3 2026 22 Note 2 Operating segments Q1-Q3 2026, (DKK 1,000) Non-life Insurance 1 Elimination Group Personal Corporate Other Total Faroe Islands Total External interest income, Net 132,359 152,044 13,163 297,566 0 297,566 Internal interest 9,626 -9,626 0 0 0 N et interest income 141,985 142,418 13,163 297,566 0 297,566 Net dividends and fee income 59,716 23,264 2,594 85,575 0 -8,928 76,647 N et insurance result 0 0 143 143 18,503 12,219 30,865 Other income 4,407 -6,403 34,910 32,914 0 -1,137 31,777 Total income 206,109 159,279 50,810 416,198 18,503 2,154 436,854 Total operating expenses 64,200 15,835 125,865 205,900 0 2,154 208,054 of which depreciation and amortisation 738 7 6,355 7,100 0 7,100 Profit before impairment charges on loans 141,909 143,444 -75,055 210,298 18,503 0 228,801 Impairment charges -6,863 5,732 -1,378 -2,509 0 -2,509 Profit before tax 148,772 137,712 -73,677 212,807 18,503 0 231,310 Total assets 5,060,465 4,880,219 5,527,289 15,467,973 326,622 15,794,594 of which Loans and advances 5,060,465 4,870,423 9,930,888 9,930,888 Total liabilities 6,730,078 4,923,141 1,940,409 13,593,628 199,911 13,793,539 of which Deposits 6,730,078 4,923,141 11,653,219 -25,397 11,627,822 of which Insurance liabilities 5 181,446 181,451 1) Please refer to the income statement for a break down of the net insurance result including significant insurance expences. Operating segments Q1-Q3 2025, (DKK 1,000) Non-life Insurance 1 Elimination Group 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 N et 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 N et 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 4,523,436 5,076,606 5,247,992 14,848,035 322,151 15,170,186 of which Loans and advances 4,523,436 5,076,606 9,600,042 9,600,042 Total liabilities 6,176,937 4,657,539 2,197,297 13,031,773 193,743 13,225,516 of which Deposits 6,176,937 4,657,539 10,834,476 -31,448 10,803,028 of which Insurance liabilities 2,171 178,010 180,182 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 Q3 2026 23 Føroya Banki Group - Geografical revenue information Note 2 Geografical segments, (DKK 1,000) (cont'd) Q1-Q3 2026 Q1-Q3 2025 Q1-Q3 2026 Q1-Q3 2025 Q1-Q3 2026 Q1-Q3 2025 Q1-Q3 2026 Q1-Q3 2025 Faroe Islands 394,627 421,736 110,372 111,985 5,140 68 -959 3,508 Greenland 42,227 46,080 34,886 35,063 350 638 0 0 Total 436,854 467,816 145,257 147,048 5,490 706 -959 3,508 Geografical segments, (DKK 1,000) Q1-Q3 2026 Q1-Q3 2025 Q1-Q3 2026 Q1-Q3 2025 Faroe Islands 601 12,667 20,206 35,697 Greenland -3,110 -14,303 0 0 Total -2,509 -1,636 20,206 35,697 Operational segments, (DKK 1,000) Q1-Q3 2026 Q1-Q3 2025 Q1-Q3 2026 Q1-Q3 2025 Q1-Q3 2026 Q1-Q3 2025 Q1-Q3 2026 Q1-Q3 2025 Faroe Islands, Banking, Other 363,763 374,272 173,205 176,451 33,402 33,929 169 164 Faroe Islands, Insurance 30,865 47,464 30,865 47,464 3,331 6,596 20 21 Greenland, Banking 42,227 46,080 27,239 46,643 7,387 12,360 21 17 Total 436,854 467,816 231,310 270,558 44,120 52,885 209 202 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 Q3 2026 24 Notes Note DKK 1,000 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 2026 2025 2026 2025 3 Interest income Credit institutions and central banks 45,194 33,164 45,194 33,164 Loans and advances 345,122 354,369 345,122 354,369 Bonds 12,948 12,506 12,948 12,506 Total derivatives of w hich: 1,502 7,269 1,502 7,269 Currency contracts 36 -28 36 -28 Interest rate contracts 1,466 7,297 1,466 7,297 Other interest income 176 6,213 176 6,213 Total interest income 404,941 413,521 404,942 413,521 4 Interest expenses Credit institutions and central banks 10,922 18,382 10,922 18,382 Deposits 55,221 65,662 55,222 65,662 Issued bonds 34,685 30,677 34,685 30,677 Subordinated debt 5,055 3,668 5,055 3,668 Lease liabilities 1,396 1,478 1,396 1,478 Other interest expenses 97 -91 96 -91 Total interest expenses 107,376 119,776 107,376 119,776 5 Net fee and commission income Fee and commission income Securities trading and custody accounts 14,223 12,807 14,223 12,807 Credit transfers 16,968 16,793 16,968 16,793 Loan commissions 3,307 3,561 3,307 3,561 Guarantee commissions 18,122 17,219 18,122 17,219 Other fees and commissions 22,152 18,148 31,080 26,743 Total fee and commission income 74,772 68,528 83,700 77,123 Fee and commissions paid Securities trading and custody accounts 5,617 4,602 5,617 4,602 Net fee and commission income 69,154 63,926 78,082 72,522 6 Market value adjustments Loans and advances -7,142 -1,085 -7,142 -1,085 Bonds -3,890 13,200 -3,890 13,200 Shares 8,931 12,102 8,931 12,102 Foreign exchange 8,902 6,700 8,902 6,700 Total derivatives of w hich: 8,877 377 8,877 377 Currency Swaps -803 901 -803 901 Interest Swaps 8,356 -1,822 8,356 -1,822 Other contracts 1,324 1,297 1,324 1,297 Assets under pooled schemes 9,591 3,138 9,591 3,138 Deposits in pooled schemes -9,591 -3,138 -9,591 -3,138 Total market value adjustments 15,679 31,293 15,679 31,293 Group Føroya Banki
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Interim Report Q3 2026 25 Note DKK 1,000 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 2026 2025 2026 2025 7 Other operating income Profit on sale of properties 0 3,702 0 3,702 Other income 11,572 8,874 4,275 1,496 Total other operating income 11,572 12,577 4,275 5,198 8 Staff costs and administrative expenses Staff costs: Salaries 96,935 95,206 88,424 82,219 Pensions 14,482 13,915 12,621 12,151 Social security expenses 15,125 14,447 13,565 12,876 Total staff costs 126,542 123,569 114,611 107,246 Administrative expenses: IT 52,943 53,139 49,391 50,171 Marketing etc 8,327 6,675 6,707 5,808 Education etc 3,270 2,703 2,922 2,306 Other expenses 22,445 27,322 19,155 20,028 Total administrative expenses 86,985 89,840 78,174 78,312 Total staff costs 126,542 123,569 114,611 107,246 Total administrative expenses 86,985 89,840 78,174 78,312 Staff and administrative costs incl. under the item "Insurance service expenses" -12,836 -21,040 0 0 Total staff costs and administrative expenses 200,691 192,369 192,785 185,558 Number of employees Average number of full-time employees in the period 205 203 176 174 E xecutive remuneration: Board of Directors 1,950 1,755 1,950 1,755 Executive Board: Salaries 2,907 2,406 2,907 2,406 - less fees received from directorships 332 222 332 222 The Bank's expense, salaries 2,576 2,184 2,576 2,184 Pension 118 188 118 188 Total executive board 2,694 2,371 2,694 2,371 Total executive remuneration 4,644 4,126 4,644 4,126 Group Føroya Banki
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Interim Report Q3 2026 26 Note DKK 1,000 Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 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 137,816 134,288 137,816 134,288 Reversals of impairment charges and provisions 135,721 132,480 135,721 132,480 Written-off, previously impaired 63 689 63 689 Interest income on impaired loans 1,031 2,813 1,031 2,813 Total impairment charges and provisions at 30 September 2026 181,321 181,000 181,321 181,000 Impairment charges and provisions recognised in the income statement Loans and advances at amortised cost -6,508 1,286 -6,508 1,286 Loans and advances at fair value -494 -3,377 -494 -3,377 Guarantiees and loan commitments 4,493 456 4,493 456 Total individual impairment charges and provisions -2,509 -1,636 -2,509 -1,636 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 44,648 75,451 44,648 75,451 Reversals, net of Stage 1 impairment charges 81,008 64,435 81,008 64,435 Stage 1 impairment charges at 30 September 2026 66,201 89,989 66,201 89,989 Total net impact recognised in the income statement -36,360 11,016 -36,360 11,016 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 77,547 35,904 77,547 35,904 Reversals, net of impairment charges 31,989 32,158 31,989 32,158 Stage 2 impairment charges at 30 September 2026 71,409 36,316 71,409 36,316 Total net impact recognised in the income statement 45,558 3,745 45,558 3,745 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 5,498 9,785 5,498 9,785 Reversals, net of impairment charges 14,602 4,873 14,602 4,873 Weak Stage 2 impairment charges at 30 September 2026 10,184 11,243 10,184 11,243 Total net impact recognised in the income statement -9,104 4,913 -9,104 4,913 Group Føroya Banki
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Interim Report Q3 2026 27 Note 9 (cont'd) Q1-Q3 Q1-Q3 Q1-Q3 Q1-Q3 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 3,389 11,656 3,389 11,656 Reversals of impairment charges 5,882 29,978 5,882 29,978 Written-off, previously impaired 63 689 63 689 Write-offs charged directly to the income statement 459 756 459 756 Received on claims previously written off 4,033 1,387 4,033 1,387 Interest income on impaired loans 1,031 2,813 1,031 2,813 Stage 3 impairment charges at 30 September 2026 26,481 41,442 26,481 41,442 Total net impact recognised in the income statement -7,097 -21,766 -7,097 -21,766 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 941 144 941 144 Purchased credit-impaired assets at 30 September 2026 0 952 0 952 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 6,733 1,492 6,733 1,492 Reversals of provisions 2,240 1,036 2,240 1,036 Provisions for guarantees etc. at 30 September 2026 7,045 2,011 7,045 2,011 Total net impact recognised in the income statement 4,493 456 4,493 456 Provisions for guarantees and undrawn credit lines Stage 1 provisions 1,012 1,034 1,012 1,034 Stage 2 provisions 5,140 585 5,140 585 Weak Stage 2 provisions 0 0 0 0 Stage 3 provisions 893 392 893 392 Provisions for guarantees etc. at 30 September 2026 7,045 2,011 7,045 2,011 Group Føroya Banki Note DKK 1,000 Sept. 30 Dec. 31 Sept. 30 Dec. 31 2026 2025 2026 2025 10 Due from credit institutions etc. specified by maturity On demand 170,138 239,179 170,138 239,179 Total due from credit institutions etc. 170,138 239,179 170,138 239,179 11 Contingent liabilities Guarantees Financial guarantees 221,285 200,333 221,285 200,333 Mortgage finance guarantees 332,519 321,353 332,519 321,353 Registration and remortgaging guarantees 12,356 93,517 38,691 113,072 Other garantees 70,591 63,907 239,704 196,347 Total guarantees 636,751 679,111 832,198 831,105 12 Assets deposited as collateral At September 30 2026 the Group had deposited cash amounting to DKK 38.9m (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 14.3m (Dec. 31 2025: DKK 12.0m) in connection w ith negative market value of derivatives. The bank has entered in an ongoing tax dispute w ith the Danish tax authorities regarding the sale of the bank's Danish activities in 2021. At present the contingent liability could have a negative effect on the Group's equity of up to approx. DKK 30m. Group Føroya Banki
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Interim Report Q3 2026 28 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 nine months to 30 September 2026. The consolidated financial statements for the first nine months to 30 September 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 3 0 September 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 nine months ended 30 September 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, 4 November 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 Q3 2026 29 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