Solid Q3 2026 with growth in core business, and targets maintained in new strategy towards 2030

FOBANKAnalyst Comment04.11.2026, 08.26

Rasmus KøjborgHead of Research, Stables

Summary

Føroya Banki's Q3 2026 report shows growth in lending, deposits, and net interest income, with strong credit quality, maintaining its upgraded guidance from mid-October and financial targets in its strategy towards 2030.
Net interest income for the first three quarters reached DKK 241 million, a 2% increase year-on-year, while Q3 alone saw a 6% rise compared to Q3 2025, driven by lending and deposit growth.
Despite a 15% increase in net fee and commission income, the insurance business underperformed, leading to a 5% decrease in year-to-date net operating income to DKK 382 million.
Net profit for the year-to-date is DKK 187 million, a 14% decrease from the previous year, with a Q3 net profit of DKK 62 million, reflecting a 10% decline from Q2 2026.

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Automatic translation: Originally published in Danish 04/11/2026, 07:26 GMT. Give feedback here.

Føroya Banki published its Q3 2026 report this morning, showing continued solid operations with growth in lending, deposits, and net interest income, alongside strong credit quality. The bank maintains its upgraded guidance from mid-October while presenting an updated strategy toward 2030, keeping its financial targets unchanged.

For the first three quarters of the year, Føroya Banki realized net interest income of DKK 241 million, up 2% compared to the same period last year. Looking at Q3 2026 in isolation, net interest income landed at DKK 82 million, an increase of 1% vs. the previous quarter and 6% compared to Q3 2025. This was driven by 1% lending growth and 2% deposit growth during the quarter.

Net fee and commission income also contributed positively with a 15% year-to-date increase to DKK 69 million. Conversely, the insurance business dragged down results, with net insurance income falling to DKK 34 million after the first three quarters compared to DKK 56 million last year. In Q3 in isolation, they dropped to DKK 7 million from DKK 11 million in Q2 due to higher claims expenses. Overall, net operating income, NOI year-to-date landed at DKK 382 million, a decrease of 5% compared to the same period last year.

Operating expenses are up by 4% year-to-date and land at DKK 218 million, while Q3 expenses are virtually unchanged at DKK 73 million compared to both the previous quarter and the same quarter last year. On the impairment side, there is once again a net reversal, this time of DKK 5 million for the quarter, while the return on the investment portfolio fell to DKK 18 million from DKK 34 million in Q2.

For Føroya Banki, this means that net profit landed at DKK 187 million year-to-date, which is a 14% decrease compared to the same three quarters in 2025. Measured for Q3 2026 in isolation, net profit landed at DKK 62 million, which is a 10% decrease vs. the previous Q2 2026, while the decline is 3% vs. Q3 2025. The return on equity landed at 12.4% year-to-date, and the CET1 capital ratio is a solid 25.1%.

As announced on October 15, Føroya Banki upgraded its guidance for 2026 and now expects net profit of DKK 225–255 million vs. previously DKK 190–235 million. This guidance is maintained today, and following Q3 2026, the bank has thus realized around 73–83% of the guided range. By comparison, net profit landed at DKK 288 million for the full year 2025.

Alongside the report, the Board of Directors has adopted an updated strategy for the 2027–2030 period. This maintains the financial targets of a return on equity of over 12%, a CET1 capital ratio of around 23%, and a payout ratio of 70%, while the cost-to-income ratio will henceforth be an internal rather than an external target. The strategy focuses on realizing growth potential in the Faroe Islands and Greenland through a more targeted customer approach and with technology, including artificial intelligence, as a key driver.

You can read the full report here: https://www.foroyabanki.com/share-data/announcements

Remember that later today at 1:00 PM, you have the opportunity to get a walkthrough of how the third quarter of 2026 has progressed for the Tórshavn-based bank, and there will likely also be time for a look at the new strategy. Joining us from Føroya Banki is CEO Turið F. Arge, who will naturally also answer questions from the audience. Sign up here: https://www.inderes.dk/videos/foroya-banki-praesentation-af-regnskabet-for-3-kvartal-2026

Disclaimer: HC Andersen Capital receives payment from Føroya Banki for a Digital IR subscription agreement. /Rasmus Køjborg, CFA at 8:25 AM on Nov 4, 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.