Føroya Banki P/F - Ársreikningur

Q3 Interim Report 2008

SUMMARY 

• Core earnings (pre tax profit before value adjustments and provisions)
increased by 78% to DKK 149m for the first nine months of 2008 
• The cost/income ratio exclusive of value adjustments and provisions amounted
to 50% in the first 3 quarters of 2008 - an improvement from 67% the same
period last year 
• Provisions for bad and doubtful debts were DKK 19m compared to a net positive
entry of DKK 29m for the first nine months of 2007 
• The Bank generated a loss of DKK 47m on the portfolio of securities in the
first nine months of 2008 compared to a gain of DKK 22m in the same period in
2007 
• Net profit was DKK 70m for the first nine months of 2008, compared to DKK
106m for the same period in 2007 
• Loans and advances increased 4% during the first nine months of 2008 to DKK
7.8bn 
• The Bank's solvency ratio is 18%
• The Bank has a strong liquidity of 72% above statutory requirements
• The sale of the Bank's shares in P/F Vestlax in October 2008 resulted in a
profit of DKK 98m, which will be recorded in Q4 
• The Bank maintains the profit guidance before value adjustments and tax for
2008 to be within the range of DKK 265-285m, which is DKK 100m higher than the
projection at the beginning of the year 

“The Bank is satisfied with the progress achieved during the first nine months
of this very turbulent year,” says Føroya Banki CEO, Janus Petersen. “Our core
earnings show positive developments and our strong solvency and firm credit
handling have been of key importance in our efforts to deal effectively with
the global financial crisis, thus maintaining our strong 2008 projection” he
says. 

Attached is the Q3 interim report. 
Further information:
Janus Petersen, CEO, tlf. +298 330340
Johnny í Grótinum, Head of IR, tlf. +298 223181

Attachments:

føroya banki interim report q3 2008.pdf