Q1 profit before loan losses came in at DKK 56m, DKK 3m (6%) above our estimate. This was mainly due to net insurance income being DKK 3m (22%) above our estimate, driven by higher premium income and lower claims in Q1. Net interest income and net commission income were in line with our estimates, while other operating income was DKK 2m (24%) above our estimate due to extraordinary value adjustments. Costs were DKK 3m (4%) higher than our estimate, owing to a general increase in IT prices and staff costs. Loan losses in Q1 amounted to DKK 5m (5m vs our estimate) and were attributed to a few corporate clients. We continue to believe that Føroya Banki’s asset quality remains solid. We estimate 2025 dividends of DKK ~155m reflecting Føroya Banki’s 2026 strategy target of lowering its CET1 ratio to ~23%. Finally, the CET1 ratio was 23.5%, 10bp below our estimate. The 2025 net profit guidance of DKK 210-240m was reiterated once more. We estimate DKK 221m.
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