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Third party research

Føroya Banki: A solid bank in uncertain times - 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 reports its Q1 2025 results on 30 April. We make only minor estimates revisions ahead of the report and raise our full-year net profit estimate by DKK ~1m, to DKK 221m, which is slightly below the midpoint of the bank's guidance range of DKK 210-240m. Despite macroeconomic uncertainty stemming from US-imposed tariffs (10% on Faroe Islands), we argue that Føroya Banki is relatively well positioned, as the US ranks low among Faroese export partners (~1%). Føroya Banki is trading at a 2025E adjusted P/E of ~5x, below that of Danish peers at ~9x. We lower our Gordon growth-based fair value range to DKK 161-197 (192-235), led by the share trading ex-dividend since our latest update. Marketing material commissioned by Føroya Banki.
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