Føroya Banki: Progress in Q2 2026, but no upward revision of 2026 guidance

FOBANKAnalyst Comment05.08.2026, 08.26

Rasmus KøjborgHead of Research, Stables

Summary

Føroya Banki's Q2 2026 report shows a 24% q/q increase in net profit to DKK 69 million, driven by strong portfolio returns, despite a 25.8% decrease compared to Q2 2025.
The bank's total business volume grew by 2% q/q, with a notable 8% q/q rise in assets under management, while net interest income increased due to lower deposit and funding costs.
Despite the positive performance, Føroya Banki maintains its 2026 net profit guidance of DKK 195-235 million, as H1 net profit aligns with the upper end of this range but does not warrant an upward revision.
Føroya Banki's CEO will discuss the interim report and answer questions in a presentation on August 7, 2026.

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Automatic translation: Originally published in undefined 05/08/2026, 06:26 GMT. Give feedback here.

This morning, Føroya Banki published its Q2 2026 interim report, covering H1 2026, which shows an increased bottom line for the quarter due to strong portfolio returns, while operating profit is slightly lower than in Q1. The 2026 guidance remains unchanged.

Føroya Banki achieved a net profit of DKK 69 million in Q2 2026, compared to DKK 56 million in Q1 2026, representing a 24% q/q increase. This improvement is primarily due to portfolio returns, which rose from DKK 13 million to DKK 34 million, driven by higher returns on the bank's bond holdings. Compared to the same quarter last year, net profit decreased by 25.8% from DKK 93 million, mainly attributable to lower insurance income and other operating income, which were exceptionally strong in Q2 2025. For H1 overall, net profit reached DKK 125 million vs. DKK 154 million in the same period last year.

The report also indicates that the underlying business is developing soundly, with total business volume increasing by 2% q/q. This growth is driven by a 3% q/q increase in deposits and an 8% q/q rise in assets under management in the investment area, while lending remains stable and mortgage loan origination decreased by 3% q/q. Net interest income increased to DKK 81 million vs. DKK 78 million in Q1 due to lower deposit and funding costs, while expenses remain under pressure with a 2% q/q increase. Markdowns remain at a low level, with a net markdown of DKK 3 million in the quarter.

Føroya Banki maintains its previously announced 2026 guidance for net profit of DKK 195-235 million. The bank also states that the net profit at the end of H1 was at the upper end of the announced range, but not enough to raise expectations, as seen with several peers. In comparison, the bank achieved a net profit of DKK 288.3 million and DKK 310.4 million in 2025 and 2024, respectively.

You can find the full financial report from Føroya Banki here: https://www.banknordik.com/reports/financial-reports

Remember that on Friday, August 7, at 11:00 AM, you will have the opportunity to get a review of the interim report and the latest developments. We will be joined by Føroya Banki's CEO, Turið F. Arge, who will also answer questions from the audience. Register here: https://www.inderes.dk/videos/foroya-banki-praesentation-af-regnskabet-for-2-kvartal-2026

Disclaimer: HC Andersen Capital receives payment from Føroya Banki for a Digital IR/Corporate Visibility subscription agreement. /Rasmus Køjborg, CFA at 08.25 on 08/05-2026.

Føroya Banki (formerly BankNordik) is a Faroese bank listed on Nasdaq OMX Copenhagen, and based in Thorshavn. The bank offers financial services to private, public and corporate customers. In the Faroe Islands and Greenland, the offering consists of banking and pension services, while insurance services are also part of the offering in the Faroe Islands. Banking activities in the Faroe Islands are organised under the name Føroya Banki, while insurance and real estate activities are marketed under the Trygd and Skyn brands respectively. Føroya Banki dates back to 1906, when the bank was founded under the name Føroya Banki, which at the time was a subsidiary of Landmandsbanken (today Danske Bank). In 1994, Føroya Banki merged with Sjóvinnubankin, and in 2006 the Faroese parliament chose to privatise the bank with a subsequent listing on the Danish and Icelandic stock exchanges in 2007. After acquiring 12 branches from Sparbank in 2010, the bank changed its name to BankNordik and in 2011 acquired the healthy parts of Amagerbanken. In 2021, the Danish banking activities were divested and the focus is now exclusively on the Faroe Islands and Greenland. Therefore, in 2024, the bank chose to reintroduce the name Føroya Banki. Work continues on an independent name for the Greenlandic banking activities.