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Third party research

Føroya Banki: A strong Q2 result leaves us at top of guidance range - Nordea

Føroya Banki

This is a third party research report and does not necessarily reflect our views or values

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Føroya Banki reported Q2 2025 net profit of DKK 93m, DKK 15m (19%) above our estimate. The key positive in the report was impressive lending growth of ~5% q/q; we had expected 1%. Combined with a temporary tailwind on funding costs, net interest income came in 12%  ahead of our estimate. We also find it encouraging to see total costs 5% below our estimate, leaving cost inflation at ~0% y/y. Led by the very strong Q2 results, we raise our 2025 net profit estimate by 8% to DKK 265m, i.e. at the top of the DKK 235-265m guidance range  for 2025. We raise 2026E-27E net profit by 3%. Our new Gordon growth-based fair value range is DKK 185-226 (175-214).
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