Føroya Banki P/F

Annual Report • May 26, 2025

List of Signatures Page 1/1

Annual Report 2024.pdf

Name	Method	Signed at
Marjun Hanusardóttir	MITID	2025-02-27 22:02 GMT+01
Birgir Durhuus	MitID	2025-02-27 14:48 GMT+01
Rüna Hentze	MitID	2025-02-27 08:22 GMT+01
ARNI TOR RASMUSSEN	MitID	2025-02-26 19:48 GMT+01
Turið Finnbogadóttir Arge	MitID	2025-02-26 15:57 GMT+01
Kenneth Mikael Samuelsen	MITID	2025-03-03 09:37 GMT+01
Jørgin Fróði Sivertsen	MID	2025-02-26 14:52 GMT+01
Annfinn Vitalis Hansen	MitID	2025-02-28 13:13 GMT+01
Alexandur Johansen	One-Time-Password	2025-03-06 13:18 GMT+01
Tom Ahrenst	MitID	2025-02-26 13:11 GMT+01
ARNDIS POULSEN	MitID	2025-03-04 11:43 GMT+01
Benny Erik Voss	MitID	2025-02-26 12:45 GMT+01
Kristian Reinert Davidsen	MitID	2025-03-06 20:51 GMT+01

This file is sealed with a digital signature. The seal is a guarantee for the authenticity of the document.

External reference: D91C7BB1A06245CEA4F12CA4607C4FF0 Confidential, Mikkelsen, Arne, 01-04-2025 14:15:23

Føroya Banki

Annual Report 2024

Confidential, Mikkelsen, Arne, 01-04-2025-14:15:22goument.

This file is sealed with a digital signature. The seal is a guarantee for the authenticity

Contents

Overview of the Group
Financial highlights and ratios
Letter to our stakeholders
Strategy 2026

Management's Report

Financial Review
Our external environment
Applied calculation methods and alternative
performance measures
Adjusted results
Management and directorship

Segments

Banking	19
Personal Banking. ------------------------------------------------------------------------------------------------------------------------------------------------------------
Corporate Banking ________________________	.71
Insurance	22

Other activities
Investor Relations
Organisation and management

Statement and reports

Statement by the Management
Internal auditor's report
Independent auditors' reports

Financial statement

Contents
Income statement
Balance sheet
Statement of changes in Equity
Capital and Solvency
Cash flow statement
Notes
Definitions of key financial ratios

Overview of the Group

Banking is the primary business activity under the Føroya Banki brand in the Faroe Islands and in Greenland. The Group has non -life and life insurance operations in the Farce Islands under the Trygd and NordikLiv brands. Other activities include Skyn, a Faroese estate agency.

Confidential, Mikkelsen, Arne, 01-04-2025 14:15:220oument.

Financial highlights and ratios - Føroya Banki Group

Highlights	Full year	Pull pow	04/04/2017	ದಿಂ	B	G	0	ੈ
DPOG 1,000	3854	3003	34/22	2034	3224	2004	2854	3333
Mot interest income	443-351	419,461	102	103,019	111,606	154,103	113,520	112,279
Dividends from shares and other investments	11,997	0,115	196	0	0	11,996	1	1
Not five and commission income	11.255	61,655	14	20.535	11.354	11:28:5	21,485	22,168
Net Intenost and flow Income	153.000	No. 200	109	123,834	130,953	143,486	138,016	134,447
Net insurance result	47,747	45,926	104	7,443	11,050	12,414	0,418	4,127
Interest and lies income and income from insurance activities, not	550,747	2027 1122	104	130,00T	140.414	155,902	144.434	140,768
Interied value adjustments	45.343	54,614	03	12,056	26,442	-127	6.972	34,721
Other operating income	8.894	9,294	104	17893	3,000	2,305	2.356	4,407
Staff costs and administrative axperises	248.3697	243,678	102	60.020	62.416	41,065	06.342	60,044
Impannent sharges an loans and advances at	-1,012	=10.043	11	=11,400	-5,619	6,183	22,730	5,068
Net promit	310,427	307,533	101	12,142	16,047	ST,000	55,839	88,560
Loads and advances	9,066,390	8,682,062	100	0,000,282	9,002,312	0,002,144	8,915,364	0,082,065
Bonds at fair value	4,759,000	1,266,516	125	1,751,790	1,048,404	1,323,609	1,406,005	1,266,516
htargible annuts	5.004	1,702	220	5,064	5,558	4,963	5,347	1,700
Assets held for sale	2.201	1		2.201	0	0	0	-
Total costes	14.611.844	12,044,838	112	14.811.644	14,056,478	13,481,880	11.317.435	12,044,838
Antiquitation one to credit institutions and central bounds.	823,456	T19,106	115	823,456	060,790	683,841	668,191	719,106
susued bonds at amonised cont	801,180	100,124	િત	891,180	સાને ઉત્પત્	605,414	800,400	609,124
Deposits and other debt	10,000 346	0,7102,1192	115	10 003,340	9,353,549	9,173,369	4,959,102	0,105,1192
Total shareholders' equity	2.018.000	1,880,600	112	2.006.001	2,000,000	1,902,365	1,824,1747	1,880,600
	Dec. 31	Dic. 34		Doc. 31	Sapt. 30	June 30	March 31	Dec. 34
Ration and key figures	2824	3073		2034	2224	2004	2824	3073
Selvania
Total capital, irici. RIFIEL cupital, ratio, %-	2017	41.1		30.2	20.70	40.9	30.0	41.1
Total capital ratio. %	227	29.4		25.2	28: 2	29.2	2016	29.4
Ter 1 саралы гаса, 16	23.6	28.4		23.9	25.1	27.5	27.0	21.0
CET 1 casino	23.6	28.8		23.8	28.1	28.6	20.0	28.8
MILA, DKK Hill	7,153	5,819		7,1420	4,279	6,889	7,849	6.219
Profitsbury
Return on sharehaldens, equilty after tax. It	15.8	16.9		312	4.8	11	30	4.8
Cent I incorner. In	40.2	38.0		39.6	22.2	35.2	54.4	38.7
COULT LINDOWN' JF FORTE WARRE WORLD 10, WANTED STORE IN THUSULUMANT	48.6	44.6		81.8	43.7	39.4	41.6	44.7
Resument of assisted	2.1	2.4		0.5	0.7	0.6	0.4	07
Market rink
BRIN'OST FIRM ISSUES, TO:	13	0.0		13	1.0	0.9	0.8	0.0
Foreign exchange position, 78	0.6	0.0		0.8	0 6	0.0	0.6	0-6
Foreign exchange risk, 76	0.0	0-2		(1)1)	00	0.0	00	a
Гратиях
Liquidity Consinage Ratio (LCR). 7).	337.4	234.2		231/4	305 5	200000	2.8316	224.2
Net Stable Funding Ratis. [NSFig. III.	154.5	151.8		154.5	154.6	154.4	150.3	151.8
Crodit risk
Change in loans and advances. %	23	8 9		0.2	0.6	1.2	04	1.1
Gearing of loans and advances	4.4	4.0		નીની	4.5	4.7	4.0	4.8
Impairnent and provisioning ratio, and of period, %	1.0	1.0		1.0	1.9	20	20	1.8
illrite-off and provisioning rationing ration. 11-	0.0	-0.1		-0.1	-0.1	-0.11	0.2	0.1
Share of answrits due on in high interest nation
have been reduced, and of period, 76	05	03		0.2	0.2	02	0.2	03
Shares
FORMACOS DOC SUPPORT OF DON FOR FRONT DRAY SOL. CREA.	10.4	22.1		1.6	100	9,1	8,7	93
Market price par share (nom. OKK 20), DKK	19570	164.5		162.0	122.0	150.0	153.0	164.5
Dook value per share (rem. DIOC 20), DPOS	246.6	193.3		2.16.0	209.3	199.4	120.5	193.3
Other

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D91C7BB1A06245CEA4F12CA4607C4FF0

Letter to our stakeholders

2024 was generally a year of positive business trends for the Faroya Banki Group. If we take a slightly broader perspective. we also saw inflation being brought under control and interest rates coming down following several years of rising interest rates and high inflation.

Solid financial performance

Our financial performance for the year showed sound core operations, an improved profit before tax compared to 2023, and a return on equity of close to 16%. The positive performance was backed by growth in deposits and lending and increased investment activity. Costs were kept in line with the original quidance for the year, resulting in a costlincome ratio of 53%. We reversed impairment charges for the eighth year running, reflecting the sound credit quality of our customers.

We delivered a profit after tax of DKK 310m and at the general meeting on 27 March we expect to recommend a dividend distribution of DKK 350m (DKK 36.46 per share), of which DKK 133m is originating from a capital optimisation and DKK 217m represents 70% of the net profit for 2024.

New name and new strategy

Since the Danish business was sold in 2021, our focus has been on providing outstanding senvices and advice to customers in the Faroese and Greenlandic markets. As a step on our transformation journey, we changed the Group's name from BankNordik to the original Foroya Banki in March, and in November we adopted the locally rooted name of Bankivik for the Greenlandic business.

In August, we announced a new strategy for the period leading up to 2026, which is to maintain the Bank's strong market position in the Faroe Islands, to consolidate our position in the Faroese insurance market and to become an even more significant financial partner for customers in Greenland. Our goal of sustainable growth during the strategy period will be achieved through a targeted strategic focus on good, preferably digital, customer experiences and profitability.

Risk outlook marked by geopolitical uncertainty

The geopolitical situation in 2024 was strained as war, growing tension and uncertainties led to increased focus on cybersecurity and digital resilience, not least in the financial sector. Global economic policy shifts may have a destabilising effect on the markets we operate in. We must therefore be prepared to navigate change and make sure that we have sufficient insight and knowledge to be able to make considered decisions.

In times of uncertainty, a sound capital structure is key, and our robust capital position enables us to comply with the everstricter capital requirements.

Sustainability - adapting to new requirements

Operating an efficient, responsible and sustainable business enables us to promote stability and make a positive impact on the communities we are part of. In 2024, we continued our longstanding efforts to become a more sustainable business and help our customers make sustainable choices. During the year, all our personal customer advisers received training in engaging with customers on sustainability issues - a similar course to the one our corporate customer advisers completed in 2023.

In response to the upcoming stricter sustainability data management and reporting requirements, we made the necessary preparations in 2024 for reporting under the CSRD effective from the 2025 financial year.

A digital millestone

Continually improving customer experiences was a key focus of our strategy work in 2024, so it was a milestone when, towards the end of the year, we launched a feature making it possible for customers to set up accounts directly in our online banking solution in seconds. The event marked an important step on our digital journey, as this technical solution has laid the groundwork. for the digitalisation of even more services that will enhance the user experience on our digital platforms in the future.

High level of employee and customer satisfaction

In our annual customer satisfaction survey, we were pleased to see positive development, particularly in the assessment of our digital solutions. This is a clear indication that the work we are doing to enhance our digital platforms fulfils a real need among our customers.

A high customer satisfaction score is not achieved through digitalisation alone, however, and we are very aware of the important role our employees play in gaining customer loyalty. We are continually striving to ensure employee wellbeing and devalopment in our organisation, and we were therefore very heartened by the sky-high wellbeing and loyalty scores in the annual employee satisfaction survey.

Advising customers during times of uncertainty and change requires skills and experience, and I have immense respect for our incredibly talented employees. On that note, I would like to thank each and every one of our employees for their exceptional efforts in 2024. I would also like to thank all of our customers for their great support, which we experience on a daily basis.

Turio F. Arge Chief Executive Officer

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Strategy 2026

New name, values and strategy

Since the Danish business was sold in 2021, Faroya Bank's focus has been on providing outstanding services and advice to customers in the Farcese and Greenlandic markets. As a step on the transformation journey, the Group's name was changed from BankNordik to the original Faroya Banki in March, and in November the bank adopted the locally rooted name of Bankivik for the Greenlandic business

In August, a new strategy for the period leading up to 2026 mas announced, which is to maintain Føroya Banki's strong market position in the Farge Islands, to consolidate the position in the Farcesse insurance market and to become an even more significant financial partner for customers in Greenland. The goal of sustainable growth during the strategy period will be achieved through a targeted strategic focus on good, preferably digital, customer experiences and profitability,

Financial targets for 2026

In August, Faroya Banki updated the financial targets for 2026, where growth in business volumes will contribute to realising higher income. The cost/income ratio is to be maintained at a stable level, and capital optimisation is intended to support the services provided to large business customers.

Furthermore, the focus will be on continued endeavours to generate a stable return for the bank's shareholders. The ambition to pay dividends of 70% of the profit for the year bank is maintained. The bank's financial targets are based on a series of macroeconomic forecasts and on sustainable growth in the bank's lending and deposits during the budget period, coupled with rising market shares in both the Farge Islands and Greenland.

Targets

• Return on equity: >12% based on a common equity tier 1 capital ratio of 23%
• Costlincome ratio (%): «53%
• CET1: Around 23%

Value foundation

In 2024. The Group revised its value foundation with incut from the entire organisation. These values serve as a guiding principle for behaviour and reflect how the Group wishes to be perceived. The work on the values resulted in the following. value foundation, which applies to the entire group:

Misson: A future where everyone has the financial resources to focus on what is important.

Vision: We strive to provide financial security in Greenland and the Farce Islands.

At Føroya Banki, the mission and values are closely connected. Based on the mission, a set of fundamental values are developed that govern the Group's relationships = with customers, partners and communities, as well as interactions within the Group Itself.

Core values

• Tagmerek
• Customer commitment
• Enthusiasm

Strategic focus areas

• Customer experience
• Profitability

Financial Review

The following figures and comments are generally stated relative to the adjusted figures, see the section "Applied calculation methods and allemative performance measures" on p. 13 for more information on the adjustments made.

Adlusted Income statement. Group

DKKm	2024	2023	NYSER	04 2024	Q3 2024	Antier		C22 2024 Q1 2024 04 2023
Nat Harrass Income	347	360	56	78	87	રુવ	00	92	100
Nat fee and convelasion income	74	IJ	DE	92	15	400	17	19	17
Met insurance income	53	60	રેન્દ્ર	10	20	R	16	12	12
Other operating incorne (leas reclassification)	41	32	129	3	10	H	10	11
Operating income	546	538	ଜନ୍ମ	497	135	10	132	135	123
Operating costs	-273	-250	106	-72	197	104	-68	-85	-05
Profit before impairment charges	245	269	હત	46	65	69	63	70	61
Impairnent charges, not		10	11	11	0	203		-23	14
Operating profit	246	279	=	57	72	79	70	47	62
Non-recurring Barns	D	-A		0	0		0	0
Profit before investment portfolio earnings and tas.	248	200	59	57	72	79	70	47	62
Investment portfolio earnings'	136	100	+25	31	40	િન	35	23	40
Profit Exchang lax	382	379	101	88	119	73	105	TO	109
Operating costlincome, %	53	40		41	51		52	48	49
Number of PTE, end of period	207	200	100	207	200	101	200	207	207

1 Corporises staff costs, administration, sector costs, bipresiation and impairners thanges Doss solusion to resuming laris). 2 Reclassified from Staff costs and administrative experses.

3 Incl. net income from investments accounted for under the equily method (excl. sector shores).

Income statement

Operating income

Net interest income amounted to DKK 347m in 2024 compared to DKK 360m in 2023, reflecting the fact that the bank's funding costs were higher during 2024 than in 2023.

Net fee and commission income fell by DKK 3m year on year to DKK 74m in 2024, due to lower guarantee commissions during the year. Also, the Bank decided to make online banking free to all personal customers during the year.

Net insurance income was DKK 57m in 2024 compared to DKK 60m in 2023 due to increased claims.

Other operating income came in at DKK 41m in 2024 compared to DKK 32m in 2023. The increase was mainly due to value adjustments and dividends from the Bank's sector shares.

The Group therefore recognised total operating income of DKK 519m in 2024, a 2% decrease from 2023.

7

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Operating costs

Overall operating costs increased by DKK 15m in 2024, to DKK 272m. The increase was driven by increased staff costs as well as IT-related costs. Cost discipline remains a focus area for the Group, and the drive to improve operational efficiency and automation will continue in the years ahead.

Net impainment charges

The Føroya Banki Group's low-risk credit approach meant that in 2024, for the eighth year in a row, net impairment charges were a reversal of DKK 1m. The figure in 2023 was a reversal of DKK 10m. The management provision was at DKK 101.5m at year-end 2024, up slightly from DKK 100m at the end of 2023. The Group's management has taken the provision due to continuing geopolitical and macroeconomic risk factors as well as uncertainties related to the modelling of future losses and possible errors in calculating the Bank's impairment charges.

The Group remains confident about its through-the-cycle credit policy and its sound lending portfolio. Strong loanto-value private sector exposure makes up about half of the Group's loans and advances, and on the corporate side, the Group is not overexposed to historically risky industries. As a result, Føroya Banki still expects to be able to keep impairment charges on a relatively low level.

Operating profit

The Group's operating profit in 2024 came in at DKK 246m. DKK 33m lower than in 2023.

Non-recurring items

No non-recurring items were recognised during 2024. In 2023, DKK 9m in non-recuming costs were recognised.

Investment portfolio earnings

The Bank's investment portfollo earnings in 2024 amounted to DKK 136m, reflecting higher interest income on the Bank's liquidity holdings. The figure in 2023 was DKK 109m.

Profit before tax

The Føroya Banki Group achieved a profit before tax for 2024 of DKK 382m, a DKK 3m increase on the DKK 379m reported in 2023.

Financial results for Q4 2024

Net interest income in Q4 2024 was DKK 78m, down from DKK 87m in Q3 2024. Net fee and commission income was DKK 19m in Q4, an increase of DKK 1m relative to Q3, while net insurance income was DKK 10m in Q4 compared to DKK 20m in the previous quarter.

Operating costs amounted to DKK 71m in Q4, a DKK 3m increase compared to Q3. Impairment charges amounted to a reversal of DKK 11m in Q4 2024 compared to a reversal of DKK 6m in Q3. Profit before tax amounted to DKK 89m in Q4 2024 compared to DKK 119m in Q3 2024.

Balance sheet

Lendina

Loans and advances amounted to DKK 9,086m in 2024, an increase of DKK 204m, or 2%, compared to DKK 8.883m in 2023. The increase was driven by a DKK 307m increase in the Personal Banking segment, with overall lending in the Corporate Banking segment down

Confidential, Mikkelsen, Arne, 01-04-2025 14:15:22-3-cument.

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by DKK 103m. The bank's brokered mortgage credit saw growth of 5%, or DKK 142m, during 2024, to DKK 2,741m.

Føroya Banki expects the long-term trend of Faroese household preferences shifting towards the traditional Danish financing model of 80% mortgage funding and the residual in 2nd lien bank lending to continue. In 2024, the bank saw modest growth in morigage credit to personal customers and strong growth in demand from corporate customers.

Føroya Banki places great emphasis on maintaining sound credit policy guidelines to ensure that lending growth does not come at the expense of the Group's financial sustainability. About half of the loan portfolio is allocated to personal lending and half to a well-diversified corporate sector, as shown in the figure below.

Deposits

Total deposits amounted to DKK 10,003m at 31 December 2024, an increase of DKK 1,301m, or 15%, from a year earlier. This reflects the Banks focus on deposits during the year, including on fixed term deposits from both personal and corporate customers. Deposits grew by 5%, or DKK 467m in the personal banking segment, while corporate deposits grew by 25%, or DKK 831m during the year.

Solvency and liquidity

Faroya Banki held total capital of DKK 2,603m, incl. Minimum Requirement for own funds and Eligible Liabilities (MREL capital), at 31 December 2024 compared to DKK 2,806m at 31 December 2023. The decrease was a result of the planned payment of dividends totalling DKK 350m mentioned below and the repayment of hybrid capital amounting to DKK 150m in September 2024. The Bank maintains its target of reducing its CET1 capital to 23% relative to REA and further increasing its MREL-eligible capital. MREL capital and Senior Preferred capital amounted to DKK 791m at 31 December 2024 compared to DKK 798m a year earlier. The slight decrease was due to value adjustments of the MREL-eligible capital issued in SEK. Subordinated capital amounted to DKK 100m at 31 December 2024, flat compared to 31 December 2023, and hybrid core capital was DKK Om at 31 December 2024 compared to DKK 150m 31 December 2023. Core capital amounted to DKK 1,712m at 31 December 2024, which was a decrease of DKK 196m from DKK 1,908m at 31 December 2023. CET1 capital amounted to DKK 1.712m at 31 December 2024, DKK 46m lower than the CET1 capital of DKK 1,758m at 31 December 2023.

The Group's MREL capital ratio decreased to 36.3% at 31 December 2024 compared to 41.1% a year earlier. The total capital ratio decreased to 25.2% at the end of 2024 from 29.4% at the end of 2023. The core capital ratio decreased to 23.8% at the end of 2024 from 28.0% at the end of 2023, while the Group's CET 1 ratio decreased to 23.8% at the end of 2024 from 25.8% the previous year. The Group's solvency requirement at the end of 2024 decreased to 10.0% from 10.3% at year-end 2023. Consequently, the solvency surplus at 31 December 2024 was 15.2% compared to 19.0% in 2023. Compared to the external capital requirements, incl. MREL requirements, totalling 28.7% at the end of 2024, Føroya Banki had a solvency surplus of 7.5 percentage points.

The Group's liquidity coverage ratio (LCR) was 337.4% at year-end 2024, well above the requirement of 100%

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and increased compared to 31 December 2023, when the ratio was 228.2%.

Other

Supervisory Diamond

The Supervisory Diamond is used to measure a bank's risk profile. The model identifies four areas that if not within certain limits are considered to indicate increased risk. As shown in the figure, the Bank met all criteria by a comfortable margin.

The Supervisory Diamond
	2024	2023	F8A limit
Sum of large exposures	144.3%	132.7%	= 175%
Liquidity indicator	200.9%	228 7 %	>100 %
Loan growth	2.3%	9.9%	< 20 %
Property exposure	12.0%	13.1%	< 25 %

Dividends proposed

At the upcoming Annual General Meeting, to be held on 27 March 2025, the Board intends to propose total dividend payments of DKK 350m for 2024, consisting of an ordinary dividend of DKK 217m (70% of the net profit) and a dividend of DKK 133m originating from a capital optimisation. The dividend is thus DKK 36.46 per share.

More information on the dividend policy is available on our website at www.forovabanki.com/dp

Faroese and Greenlandic real estate markets

During 2024, Føroya Banki and other Faroese and Greenlandic financial institutions provided the FSA with material based on their deep local knowledge to support the FSA in making its assessment regarding the real estate markets in the two geographies being welldeveloped and long-established.

The matter was resolved on 2 September 2024, with the FSA concluding that the market for residential property was well-developed and long-established in both countries.

The Bank has taken note of the decision and has taken it into account when calculating its risk-weighted exposure.

Debt issuance

Due to the continuous focus on optimising its CET1 capital. Føroya Banki plans to continue issuing senior non-secured loans in 2025.

Rating

Faroya Banki obtained its initial rating from Moody's on 21 March 2022, when both the long-term deposit and issuer rating were set at A2, outlook positive. The Group was very pleased that Moody's, in continued recognition of the Bank's "very strong capitalisation and sound recurring profitability" on 20 November 2023 upgraded the Bank's long-term deposit and issuer rating to A1.

The rating was reaffirmed on 25 October 2024, albeit with a negative outlook.

Category	Moody's rating
Counterparty risk rating	A1/P-1
Bank deposits	A1P-1
Baseline credit assessment	baa 1
Counterparty risk assessment	A1(cr)/P=1(cr)
Issuer rating	A1
Outlook	Negative

Events after the balance sheet date

Other than what is mentioned in the Annual Report, no events of significance for the reporting period have occurred after 31 December 2024

Follow up on Outlook 2024

Throughout the year 2024, the bank has revised the guidance upward for its annual result expectations twice, once in August and again in October. The third and latest revision was in January 2025. These revisions were based on favourable developments in the investment portfolio earnings and lower impairments than initially anticipated.

		Return on
Outlook 2024	Net result	Equity
Initial outlook 2024	225-255m DKK 12% = 14%
Revised outlook 2024	250-280m DKK
Revised outlook 2024	275-300m DKK
Latest outlook 2024	302-312m DKK
Final results 2024	310m DKK	15.8%

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Outlook 2025

Føroya Banki expects to continue growing its overall lending and mortgage volumes in 2025 to both personal and corporate customers.

In the personal banking segment, the Group will continue to build on the progress of previous years by establishing stronger relationships and continuing to enhance the user experience to attract new customers. In Greenland, Føroya Banki expects to grow lending to existing customers as well as attracting new customers, thereby growing its market share.

On the corporate side, the Group sees an opportunity to increase volumes in 2025 due to continued investment activity in both the Farce Islands and Greenland, despite the uncertain global economic outlook. To help manage its capital position as MREL requirements continue to be phased in. Føroya Banki will continue to utilise Danish government guarantee programmes to reduce the riskweighted portion of corporate exposure in 2025.

The Bank's net interest income is expected to decrease slightly in the coming year, as the Bank expects the Danish Central Bank to lower its deposit rate by a cumulative 0.75 percentage points. However, future interest rate movements are of course subject to central bank policy.

Insurance premiums are expected to continue to grow due to both customer acquisition and general price increases. Even though it is difficult to predict the level of net insurance income due to significant variations in claims levels from one year to the next, Føroya Banki expects net insurance income to be stable in 2025 compared to 2024.

The Group's operating costs rose slightly in 2024, as staff and IT costs continued to increase for the financial

sector in general. As expected, the Group's costlincome ratio rose slightly to 53% (2023: 49%). The Group expects operating costs in 2025 to be marginally higher than 2024, driven by staffing and IT cost increases.

The Faroya Banki Group is fully focused on serving the Farcess and Greenlandic markets. It remains as one of the larger players in the Farge Islands and a strong challenger in Greenland. Focus will remain on increasing efficiency and reducing operating costs while consistently offering market-leading services and strong asset quality.

The guidance is based on impairments amounting to 0.30 percentage points of the bank's lending portfolio in 2025.

Earnings on the Group's investment portfolio were strongly positive in 2024 and are expected to remain strong in 2025, albeit not quite at the level seen in 2024 due to market rates trending slightly downward.

In 2025, Faroya Banki expects to achieve a net profit in the range of DKK 210-240m (2024: DKK 310m).

	Outlook 2025
Netresults	210-240m DKK
Return on Equity	10.4% - 11.9%
Impairments	0.30 pp of loans

This outlook is subject to uncertainty relating to the interest rate developments, market value adjustments, impairments and geopolitical affairs.

Confidential, Mikkelsen, Arne, 01-04-2025-14:15:223-cument.

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Confidential, Mikkelsen, Arne, 01-04-2025 14:15:230×ument.

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Our external environment

The macroeconomic environment has a significant impact on any financial institution. Føroya Banki, therefore, naturally follows the economic developments in the Faroe Islands and Greenland closely.

The two North Atlantic economies are affected by global economic developments. The IMF estimates that the global economy (as measured by global real GDP) grew by 3.2% in 2024, with the Farcese GDP expected to increase by 3.9% and the Greenland GDP by 0.9%.

Up to and into 2023, the historically high inflation rates post Covid, which in the Faroe Islands peaked at 10.1% (Nov. 22), was the main concern of economists and central bankers. To combat the high inflation rate, central banks started increasing interest rates in 2022, and by 2023 inflation rates started decreasing.

Danmark Nationalbank's policy rate is at present 2.35%, which is a reduction of 1.25%-pt from the last peak at 3.60% (June 2024).

The reduced policy rate is causing both deposit and loan rates to decrease and is expected to reduce not interest margins which will result in downward pressure on Føroya Banki's net interest income.

The past and forecasted future reductions in global interest rates are expected to stimulate global economic activity resulting in a projected global GDP growth (real) of 3.3% in 2025 (OECD estimate). The Euro area is projected to achieve a relatively modest GDP growth of 1.3%, reflecting the structural and economic challenges Europe is facing, such as high energy prices, increased competition from Chinese manufacturers and high public sector debt.

The geopolitical situation continues to be relatively strained. In Europe, Russia is continuing its war of aggression against Ukraine. In the Baltic See, several instances of apparent sabotage on subsea power- and communication cables have occurred. In the Middle East, the war in Gaza is continuing and Syria is yet to stabilize after the fall of the Assad regime. In the Far East. China is maintaining its assertive posture, especially towards Taiwan and its claim on the South China Sea. In the USA, newly elected president Trump stated his wish for Canada and Greenland to be incorporated into the USA, if necessary, by force.

Developments in the Farcese and Greenlandic economies have again been directionally similar in 2024. The bank continues to track key indicators for both economies, and developments have generally followed the expected trend in 2024, with a few blips along the way such as the 28-day strike in the Faroe Islands during the summer of 2024.

The Faroese Economic Council estimated in September that the Farnese economy will grow by 4.7% in nominal berms in 2024 following growth of 5.6% in 2023. The GDP expansion in 2024 is driven by consumption and investment made by the public and private sectors and an increase in net exports (the value of both exports and imports decreased in 2024, with the import value decreasing by more). The outlook for 2025 is stable, but nominal GDP growth is expected to decline to 3.3%, which would be the lowest level seen since 2020, and before that since 2009.

The Greenland Economic Council estimated in September that the Greenland's economy will grow by 3.1% in nominal terms in 2024 following growth of 4.0% in 2023. The reduced growth reflects a reduction in the value of Greenland's export, led by marginally lower prices for fish products. The outlook for 2025 is stable with the GDP expected to grow by 4.0% in nominal terms. A significant portion of Greenland's GDP stems from investment infrastructure (airports in Nuuk, Ilulissat and Qaqortog) and investment in housing, and although infrastructure investment is a prerequisite for lifting future growth, a decline in investment activity will present certain challenges once ongoing projects are completed.

Both the Faroe Islands and Greenland have extraordinarily tight labour markets. The Faroese unemployment rate and labour participation rate are world-leading, whereas Greenland is experiencing demand for skilled labour that far outstrips supply.

The Greenlandic labour market is also challenged by the fact that education levels in the local population are lower than in other Western countries. Both countries import a significant number of workers and have in recent years made it easier for employers to obtain permits to do so.

Faroya Banki remains optimistic about its prospects given the health of the two markets in which it operates. Customers are financially sound, and lending demand is satisfactory due to healthy levels of economic activity.

Confidential, Mikkelsen, Arne, 01-04-2025 14:15:22-3-cument.

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D91C7BB1A06245CEA4F12CA4607C4FF0

Applied calculation methods and alternative performance measures

Alternative performance measures

The Bank applies a number of alternative performance measures are applied where they provider greater informational value about, e.g. the Bank's earnings, or as a common denominator for multiple items. The Bank is aware of the need for applying calculations consistently and with comparative figures. The alternative performance measures applied are defined below:

Operating income

Sum of Net interest income (lass interest income from the Groups bond portfolio). Not fos income. Not insurance income and Other operating income.

Profit before impairment charges

Profit before Investment partfolio earnings, Impairment charges and Non-recurring costs.

Operating profit

Profit before non-recurring costs and before Investment portfolio earnings.

Other operating income

Other operating income, Dividends related to sector shares, Value adjustments related to sector shares, and Profit or loss from currency transactions.

Operating costs

Sum of Staff costs and administrative expenses, Sector costs, Other operating expenses and Amortisation, deprecision and impairment charges on intangible assets and property, plant and equipment.

Impairments

Sum of Impairment charges on loans and reversed impairment charges on loans taken over.

Non-recurring items

Non-recurring staff costs, administrative expenses and extraordinary impairment charges on tangible assets.

Investment portfolio earnings

Interest income from the bond portfolio, value adjustments less value adjustments of sector shares and less of profit or loss from currency transactions. Dividends less dividends related to sector shares, Income from holdings in associates.

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Dacument ID:

Adjusted results

			Restated inconte
Note Adjusted Income atatement 2024, Group, DNK 1,000	Income statement	Reacherners	в 1300 го от 1
1, 5 Not interest income	442,251	-66.367	3-95,084
2 Not fee and commission income	90,746	-16.980	72,763
5, 6, 7 Net insurance income	47,747	1.675	50,602
2, 4 Other operating income	ી જેવા	31.543	41,237
Operating Income	580,441	-71,935	518,506
3, 8 Operating costs	268,990	14,322	273,312
Profit before impairment charges	331,451	-06.257	245,194
Importers charges	+1,917	0	-1.0M
Operating profit	332,524	-66.357	346,267
3 Non-Nicoming Nifra	0	0
Profit before investment portfollo earnings and 100	332,524	-88.35T	200,261
1, 4, 7 Irwastroni portfolio earnings	42.852	66.25T	136,209
Profit bustern box	382,413	0	157,511
Note Acquated Income statement 2023, Group, DNK 1,000
1, 5 Nat Interest income	419,451	-58 870	359,588
2 Nat fea and commission income	87,796	-10.881	76.965
5. E. T Not Insurance Income	45,975	13,759	59,714
2, 4 Other operating income	9,204	22,713	32,000
Operating Income	562,476	-34.185	220,201
7.6 Operating coses	262,905	6,114	259,019
Profit before impairment charges	369,571	-48.299	369,272
Imagers charges	-10.043	0	-10.043
Operating profit	319,614	-40.299	279,315
3 Nan-Nicutring Berra	0	-8.920	-8.909
Profit before investment partfolio earnings and tax	319,614	-48 227	270,387
1, 4, T Irwastrrent pordolo earnings.	59.716	40.22T	105,943
Profit Barbiters Gas	379,330	0	370,330
Note Nostatements made to the income statement, DRX 1,000		2024	2007
1 Reclassillication of interest income related to bunds from the linerest income to Investment particle		66,492	97,116
OM WORLD		16.995	10.0111
2 Dividence and fees reclaimed from Net field and commission income to Other operating income. 3 Reclass fication of severance costs to Non-recurring farm.		0	15.92 8
4 Reclaim Rication of value adjustments related to sector shares and of profit or loas from currency	14.55T	11,902
	transactions to Other coursing income.
I releasurement record in proven in Milling incurrent internet internet income due to impressionalism of IFRA 17		8.879	7,249
Reclais Fication from Nat fee and commision income to Operation casts due to implementation of IFRS 17
6 Parclassification of operating costs from Net insurance income to Operating conts due lo implementation of		14,322	15,042
FRS 17
7 Reclassification of morted value aquance income income income to investment particle earnings. chun in leasinessed story of CDC 47		14,322	6,967

Confidential, Mikkelsen, Arne, 01-04-2025 14:15:230cument.

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Management and directorships

Beard of Directors

(1978) President (Child)
Station by Sm Ownersd Minesting
T BOY (4 Bir B): Concluder	1862 Pull-(site)
Nationalize	Posters a
Pirst time alected to the Boand:	2019
Most recently re-alected:	2024
Tenn expires:	20.20
independent	Independent
Educational background	Master of Finance, Capentuages Business School
Carlpedencies:	Several years of working experiences from the Danish Sectar. Princelly Canalis Bark, Northylind above he
	was and researced (iftered departments within investments and Real Maragencere. Forner (2) of Associated
	Nonogor en
Pretpal rentpation:	Pariner at Absolute Return Postmans, London
Directorships and other pfloos:	Porner chairman of Atlantic Petrolears
Annfirm Witzils Honsen (vice chair)
Diected by the General Meeting
Tealer of Dirati	1993
Clairia line	NAME
Nationality	Poscess
First time alected to the Board:	2024
Most recently re-alectiad:
1970 955-809.	2020
Independent	Nan-indegendent
Educational background	Moster of low, Urisersity of Coperthagen. Lawyer and Postition at LEKS lawfors,
Competencies:	the production and several years of practical warking experiences within velous legal issues. Braid and 40 km/line
	Knokledge of the Farcese business community and its structures.
Plintipal Incomponin	Parave at LEKS livelius
Discussionships and other situes:	Boardmentler of Ruth Holding Ag8, OTM Fanillia Halding Ap3 and Sp/19MN Holding.
Arni Tor Rasmasse n
Blected by the General Meeting
Tear of birth	1575
Gender	Mate
Nation and	FACES &
First time elected to the Board.	3654
Most recerdly re-alcelad:
Term expires:	2000
independent	Non-Independent
Educational background	G-ducation within Shance, accounting and investigated investigations.
Сапредильны	Indepth Knowletter of the facilities committly and prestimately and processions within projects and
	Intellation in only files
Prespal renupolion:	Sell-amployed - CEO at different companies with Investment activities
Disuctorships and other pfloys:	CEO at BpT RMV Holding. Chairman at Spil Nissigare shipping and P.P. Reyni Berlice
Marjun Hanasandotsi-
Diected by the General Meeting
T was of birth	1954
Chicago	For and
Mal in all p	Posteria
Pirst time alected to the Board:	2024
Most recently re-elected:
Frin espires	2022
Independent	Intependent
E Productional Dackground	MON, NY Frida Delivery, Marketin's and Ribertunity. Coloration, Coloratorials, Coloradors, Coloradores, Cherrity
	Plan School of Public Administration. MIS: Distretion in Management, Robert Conton Unionsity, Rotention.
Correlarcios:	a work for a fraction workers and encryption in the program and program and programment program come been of the
	national Parkers research regarding regarding program and public allum.
PRODUCT INCOLUMICAL	246-816959993
DirectorsFries and other entitled	MILLER STATUS SHOWN NI DA FEAR PROVER PARKAL COMPANIE PROFICE FOR AND FRANCE PROFICE PROVER FROM PROVER FROM PROFICE POLICE PROVER FROM PROFICE
	Stanssloven - The Farreso Food and Environmentol Agency (1987-1996).
Kristian Reineri Davideen
Bectsd by the General Meeting
Tear of birth	1968
Gender	Male
NAME OF METAL	FACES #
First Line elected to the Board.	2007
Most recerdly re-alocked:	2854
Term expires:	2020
Independent	Infoparcem
E-B-GIBORN Dackground	PO (Graduate Deplointe in Organisation and Strangers Business School; MSc Electrical Engineering &
	Trencannunications, DTLI Develop.
Carmelerslates	Worlding experiences and independent if naragener, crange processes and project manage of
	(figures system and some for a provid to person last and and and submission intell-
Paretpal sceupation	CEO at Piancese Telecom, Farmar CEO at Tusass (TELE Drecelond)
Disclarships and other pfloys:	Chair of LBP (Engineering Consultancy)

16

Confidential, Mikkelsen, Arne, 01-04-2025 14:15:2236cument.

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Tom Alsourse
Elected by the General Meeting
Ther of bittle	1990
Gerder	Patalog
Holorality	Dania
First time elected to the Boned:	2023
Most recently re-elected.	2024
Torn expires:	2026
Independent	Independent
Educational background:	Ecocable Management, Columbia Business School: Eastudie Marageneri program, Whiterior Business School, MD-
Competencies:	accounting. Capentiagen Business School. Now from 30 years of pacitical credit-related experiences from Daniko Bark and Nyl. Include in the Chick and Corporate and in persons, industing of nerges and acquisitions, captal nameditions, shutting of congany financing and transgement of credit-related tisks as a whole.
Principal occupation:	Independent Adasor and Board Manber
Directorships and other offices :	Brand member of Con Property Management P.S. Fanner chair of Nextredit Leasing A.S. and Nylined Fillance J.C. Forner board member of Prankfurter Badenkradit Genbh.
Alexandur Johansen
Elected by the ampleyees
Year of bitt	1679
Garder	Putniko
Hoborality	Porcept
First time elected to the Boast	2018
Most recently re-elected:	2022
Torn expires:	2006
Educational background.	Financial education and subsequent collining education within financial and Insurance aspects.
Compatiencies:	In-depth understanding of insurance aspects. All-round advisory senaces.
Principal occupation:	P.P Trygd - Commercial Insurance - Head of corporate department.
Directorships and other officies !	Paga untr
Kenneth Samuelsan
Elected by the employees
Year of bitt	1996
Gerder NASCO'MIN'	Duk (abo) Faranta
First time elected to the Bound:	2010
WIDST LECENTLY LE-6462092	2002
Ten expires:	2026
Educational background.	Finalicial education
Competencies:	Broad inceledge of sector and labor manusi relationships. Cusioner and employer sells transis within and Icrowledge of III.
Principal occupation:	Fistoya Blanki - IT-department - unit Faroe Islands .
Directorships and ether offices !	Paterials
Runa Herriza
Elected by the ampleyees Year of bitt	4666
Gerder	Porsion
NASOLEIN	F-MONMA
First time elected to the Bound:	2021
Minst recently re-electied.	2023
Torn expires:	2026
Educational background.	Financial education supplemented with different banking related counses.
Сотревления:	Broad knowledge and expensive while different aspects of Banking sumices. Indepth knowledge and experiences within Ratail
Principal occupation:	Banking and funds Fistoya Barki - Backoffice
Directorships and ether offices	Paton'ndo
Excourse board
Turio F. Ange (CEO)
Your of back	1982
Garder Nationality	Ferule Parsona
Year of joining the Executive Management:	2022
Educational background.	Candiners Front, Aud, Australia School: Executive MBA, Nerily Business Bchool,
Principal occupation:	CEO IN F/F Firola Bauki
Board positions held that are relevant to	Boardnember of P.P Trygd, P.F. Nordh Liv. P.F. Skyr. Boardmember of BI Holding Art, SDC A/S and the Farsese Banking
banking and insurance:	caganisation.

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Segments

Reference is made to the preceding Financial Review, which provides an overview of the Group, including the Bank at an overall level.

The Bank's activities are divided into two main segments, Personal Banking and Corporate Banking. Details about these two segments are provided on the following pages. The last page of the segment section sets out performance of the Bank's subsidiary Trygd.

Banking

Adjusted Income statement, Banking

DKKm	2024	20783	MALE	Q4 2024	Q3 2024	MONT		Q2 2024 Q1 2024	Q4 2074
Net interest income-	347	360	Pe	78	47	િય	00	20	100
Nat fee and convelsion income	8	8	07	23	22	105	24	23	25
Other operating income	37	27	134	1	8	62	D	10
Operating income	473	479	66	190	118	63	120	125	124
Operating cost	-250	-255	300	47	-53	100	-62	50	-57
Profit before impairment charges	223	244	82	44	55	79	56	66	65
Impairnent charges, not		10	11	19	0	203	y	-23	ત્ત્વ
Operating profit	225	254	00	55	64	90	65	44	57
Non-recuring neirs	b	-4		C	0		0	0
Profit before irressment portfolio carnings and tax.	225	245	92	95	51	90	65	4	57
Investment portfolio earnings	123	101	+23	23	41	0	30	49	42
Profit batona lax	348	346	107	84	104	80	97	63	107
Loans and advarious	9.000	8,003	400	9,086	9,072	400	9,023	8,915	0.047
Deposits and other debt	10.000	8,710	116	10,007	0.359	100	9.180	R. H. 40)	8,710
Moriguiga credit	2741	2,500	305	2,741	2,579	400	2,585	2,621	2,527
Operating cosaincome, %	53	હતિ		63	53		12	47	48
Number of PTE, end of period	177	176	101	177	175	101	178	178	174

The Bank's net interest income was DKK 347m in 2024 compared to DKK 360m 2023 reflecting the fact that the Bank's funding costs were higher during 2024 than in 2023. Net fee and commission income fell by DKK 2m to DKK 90m in 2024 compared to DKK 92m in 2023, due to lower quarantee commissions as well as the Bank's decision to make online banking free for all personal customers. Other operating income increased 34% or DKK 10m relative to 2023 to DKK 37m due mainly to higher income from the Bank's sector shares. As a result. the Bank's operating income as a whole fell slightly by DKK 6m year on year in 2024 to DKK 473m. Operating costs increased by DKK 15m in 2024 compared to 2023. which was as expected and mainly due to staff and IT costs. The costlincome ratio was thus 53% for the year compared to 49% for the previous year. The resulting profit before impairment charges was DKK 223m in 2024 compared to DKK 244m in 2023.

Føroya Banki maintains its through-the-cycle credit policy. Due to the continued sound financial health of its customers despite uncertain global economic conditions, the Bank saw a net reversal of impairments of DKK 1m in 2024 for the eighth year in a row. In 2023, the Bank

reversed DKK 10m of previously impaired loans. The management provision was at DKK 101.5m at year-end 2024, up slightly from DKK 100m at the end of 2023. The resulting operating profit for the banking segment in 2024 was DKK 225m. DKK 30m lower than in 2023.

No non-recurring illems were recognised in 2024 compared to costs of DKK 9m being recognised in 2023. due to changes in the Bank's management. Investment portfolio earnings were DKK 123m in 2024, up from DKK 101m in 2023 due mainly to higher interest income on the Bank's liquidity with the Danish National Bank. As a result, the Bank's profit before tax was DKK 348m in 2024, up DKK 2m compared to 2023.

Loans and advances to customers grew by DKK 204m in 2024 or 2% to DKK 9,086m. and the portfolio of the Bank's brokered mortgage credit grew by DKK 142m or 5% to DKK 2,741m. In total loans and mortgage credit grew 3% in 2024. Customer deposits were up by 15% or DKK 1.298m to DKK 10,007m. The funds that the bank manages on behalf of customers grew by 17% during 2024, reflecting both positive returns on managed assets as well as the acquisition of new customers.

Confidential, Mikkelsen, Arne, 01-04-2025-14:15:223-cument.

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Personal Banking

Adjusted Income statement. Personal banking

DKKm	2024	2023	Indica	Q4 2024	Q3 2024	MONY		Q2 2024 Q1 2024	CA 2020
Natinianast income	206	223	્રિન	49	54	76	55	60	72
Nat fee and commission income	80	50	ને ઉત્ત	48	17	ને Dri	46	10	14
Other operating income	21	20	106		8	82	6	6
Openating Income	299	311	56	62	75	0	77	84	20
Operating costs	-2-13	-1 (48)	100	-57	-52	100	-14	-09	-14
Profit before impairment charges	88	114	78		23	24	22	34	40
Impairment charges, net	40	2	570		7	24	T	5	00
Operating profit	96	116	83		30	23	19	24	35
Non-recurring Barra	D	-8		0	0		D	0
Profit before investment portfolio camings and tax	06	108	88		30	22	16	30	35
Investmant portfolio earnings	80	60	723	21	31	ਨਾ	23	14	30
Profit before tax	115	177	405	21	61	45	43	53	65
Loans and advances	4.373	4 168	108	4,373	4,299	102	4.202	4,124	4,099
Deposits and other debt	6228	5,761	300	6,225	6, 961	404	6.161	5,700	5.761
Mortgage aredit	2.176	2,179	100	2.175	2,160	101	2.174	2.191	2,179
Number of PTE, end of period	79	51	97	77	77	100	BD	19	81

Føroya Banki's operating income from personal banking customers fell by 4% in 2024. Net interest income was down by DKK 14m to DKK 208m. Net fee and commission income was flat at DKK 69m and other operating income increased by DKK 1m to DKK 21m. The resulting operating income totalled DKK 299m compared to DKK 311m in 2023.

Operating costs rose to DKK 212m in 2024 from DKK 196m in 2023. As a result, profit before impairment charges came in at DKK 86m compared to DKK 114m in 2023. Impairment charges were a net reversal of DKK 10m in 2024 compared to a reversal of DKK 2m in 2023. No non-recurring items were recognised in 2024, whereas non-recurring costs of DKK 8m were recognised in 2023. Investment portfolio earnings

amounted to DKK 89m compared to DKK 69m in 2023. Profit before tax was thus DKK 185m in 2024 compared to DKK 177m in 2023.

Direct lending to personal customers rose by DKK 307m, i.e. 8%, to DKK 4,373m at year-end 2024. Brokered morigage credit was largely flat at DKK 2,175m at yearend 2024 compared to DKK 2,179m at year-end 2023. Deposits from personal customers were up by DKK 467m, i.e. 8%, over year-end 2023 to DKK 6,228m at year-end 2024.

Confidential, Mikkelsen, Arne, 01-04-2025-14:15:223cument.

Corporate Banking

Adjusted Income statement. Corporate Banking

DKKre	3004	2023	NYSEX	Q4 2024	Q3 2024	1000		Q3 2024 Q1 2024	Q4 2023
Not interest income	138	137	ને ઉત્ત	35	33	444	35	33	24
Net lee and commission income	2-1	24	68	5	5	109	6	6	5
Other operating incorne	15	T	209		T	109	3	3
Operating income	174	168	104	41	42	112	43	42	34
Operating costs	-37	-32	115	-17	-10	5€	-P	-10	-10
Profit before impairment charges	137	435	ને ઉત્ત	31	32	110	35	22	24
Impairment charges, not	-8	8	102	10	2	662	11	-28	0
Operating profit	129	144	50	48	31	450	45	5	25
Non-recurring items	0	-1		0	0		0	0	0
Profit before investment portfolio carrings and tas.	129	142	50	48	31	456	45	5	25
Investment portfolio earnings	35	27	123		12	67	P	5	42
Profit Examona faxe	163	169	97	58	43	131	58	10	36
Loans and adjarious	4.713	4.016	PO	4,713	4,774	00	4,821	4,791	4,016
Deposits and other debt	3.779	2,948	128	3.779	3,1989	118	3.019	3,143	2,945
morigage credit	585	420	135	565	412	135	411	430	420
Number of FTE, end of period	46	12	406	45	45	100	45	15	14

The Group's Corporate Banking segment saw net interest income increase to DKK 138m in 2024 from DKK 137m in 2023 despite a fail in overall lending and interest rates, as funding costs decreases due to corporate deposits being higher in 2024 than in 2023. Net fee and commission income fell by DKK 3m to DKK 21m. Other operating income more than doubled from DKK 7m in 2023 to DKK 15m in 2024 due mainly to increased income from the Bank's sector shares. Total operating income was thus up 4% or DKK 7m to DKK 174m in 2024 relative to 2023.

Operating costs increased by DKK 5m in 2024 to DKK 37m, resulting in profit before impairment charges of DKK 137m, up DKK 2m compared to 2023.

Impairment charges were DKK 8m in 2024, compared to a reversal of DKK 8m in 2023. It is worth noting that this is due sizable impairments on a small number of customer relationships and not a sign of an overall

increase in credit risk. No non-recurring itoms were recognised in 2024 compared to non-recurring costs of DKK 1m being recognised in 2023.

Investment portfolio earnings amounted to DKK 35m in 2024 compared to DKK 27m in 2023. The resulting profit before tax was thus DKK 163m in 2024. DKK 6m lower than in 2023.

The corporate lending portfolio fell by 2% during the year and amounted to DKK 4,713m at 31 December 2024. The portfolio remains well diversified and is not overly exposed to historically risky sectors. Corporate deposits were up by DKK 831m, i.e. 28%, over year-end 2023 to DKK 3,779m at year-end 2024. Brokered mortgage credit rose by more than a third, i.e. 35%, albeit from a low base to DKK 565m at year-end 2024.

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Insurance

Adjusted Income statement. Trygd

DOGm	2024	2023	14 0 000		04 2024 Q3 2024	00-04-007		02 2024 Q1 2024 Q4 2023
Premium income, net of reineurance	156	1-90	100	34	40	િય	40	39	42
Claims, net at reinsurance	-114	-0-0-4	116	-32	-22	148	-29	-31	-11
Not Insurance Income	47	49	84		18	31	11	8	12
Not income from investiment actively	11	T	465		4	46	ra	n
Operating income	52	55	84	7	21	24	13	44	45
Operating cost	-29	-29	100	- 12	-7	00	-15	-8	7
Profit before tax	23	27	07		44	1	80	3
Corporal ratio	600	નિને		100	74		ದಿಯ	100	90
Claims natio	78	67		દિવે	હિંદ		78	81	72
Number of FIFE end af period	23	23	67	23	23	00	23	23	27

The Group's insurance company, Trygd, reported another year of growth in insurance premiums. Net premiums grew by 6% in 2024 to DKK 156m due to price increases and a continued inflow of new customers.

Claims can vary significantly from year to year, e.g. due to Farcese weather conditions or an unusual number of large claims. In 2024, claims amounted to DKK 114m, an increase of DKK 16m compared to 2023.

Income from investment activities amounted to DKK 11m in 2024 compared to DKK 7m in 2023. Operating costs totaled DKK 29m in 2024, flat compared to 2023. As a result, Trygd posted a profit before tax of DKK 23m in 2024 compared to a profit before tax of DKK 27m in 2023.

Trygds combined ratio increased from 88 in 2023 to 93 in 2024.

Trygd continues to grow its market share by offering competitive prices and delivering superior customer experience. Trygd expects to continue to attract new customers and to grow premium income in 2025, as it has done for the past several years whilst remaining profitable.

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Other activities

Skyn

Following several years of strong activity and continuous price increases in recent years, the housing market activity was relatively subdued in the past two years. House prices in the Faroe Islands increased approx. 5% in 2024, and the number of properties sold was more or less flat compared to 2023.

The Group's estate agency, Skyn, performed well and was involved in a total of 161 transactions in 2024 compared to 168 in 2023. Skyn recorded a net profit of DKK 0.6m in 2024, a slight fall from DKK 0.8m in 2023.

Skyn is expected to pay a dividend of DKK 1.0m to Føroya Banki for the 2024 financial year.

NordikLiv

NordikLiv is a life insurance company established in 2015 and wholly owned by Føroya Banki. The company began operations in 2016 by providing regular life,

disability and critical illness insurance cover in the Farcese market.

In 2024, premium income was DKK 21.8m compared to DKK 21.6m in 2023, while net profit amounted to DKK 8.7m in 2024 compared to DKK 4.9m in 2023.

NordikLiv is expected to pay a dividend of DKK 9m to Føroya Banki for the 2024 financial year.

In the bank's continuous focus on operating as efficiently as possible, the bank reached an agreement in 2024 with the life insurance company LIV in the Faroe Islands, where the bank will broker life insurance products for LÍV. We are pleased with the agreement, and it will result in NordikLiv being dissolved as a separate company in 2026. The Group's customers, however, will continue to receive excellent advice and life insurance products at competitive prices.

Investor relations

Føroya Banki share performance

The closing price of Føroya Banki's shares on Nasdaq Copenhagen at 31 December 2024 was DKK 162.0 compared to a closing price of DKK 164.5 at 31 December 2023. This was a decrease of 1.5% compared to an increase of 15.7% for the Copenhagen Bank Index. Note that Føroya Banki's total return in 2024 was 3.5%, as a total dividend of DKK 8.33 per share was paid out during the year. The turnover in Føroya Bankl's shares on Nasdag Copenhagen was DKK 234m in 2024 compared to DKK 615m in 2023. Feroya Banki's stock chart can be found on the Bank's website www.foroyabanki.com/sc

Performance of Føroya Banki shares vs the Nasdaq Copenhagen Bank Index in 2024:

Shareholder structure

At the time of publication of the Annual Report 2024, the following shareholders had notified the relevant authorities that they held 5% or more of the Bank's shares:

• · Føroya Landsstýri (Faroese Government), Tórshavn, Faroe Islands, holds 34.8% of the shares.
• · Ruth Holding ApS, Hirtshals, Denmark, holds 14.6% of the shares.
• · GMT Familie Holding ApS, Hirtshals, Denmark, holds 10.4% of the shares.
• · Sp/F RMV Holding, Hoyvik, Faroe Islands, holds 5.1% of the shares.

At 31 December 2024. Føroya Banki had approximately 8,400 shareholders. The Faroese government held 34.8% of the share capital, institutional and other corporate investors held 49%, private investors held 16%, while the Bank held 0.22% as treasury shares. The majority of shareholders are based in the Faroe Islands.

Country	Pct. of nominal shareholdings
Farce Islands	ટેટે
Decemark	રેક
Normay	2
Other nationalities
Total	100

The Board of Directors has been authorised to allow the Bank to acquire up to 10% of the Bank's nominal share capital in the period until 1 March 2029. Føroya Banki's investor relations policy can be found on the Bank's website www.forovabanki.com/Ir

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Organisation and management

Corporate governance at Føroya Banki

The overall purpose of Føroya Bankl's corporate governance policy is to ensure responsible corporate management and to safeguard the interests of the Bank's shareholders, customers, and employees. Strong corporate governance is about having clear and systematic decision-making processes. thus providing clarity about responsibilities, avoiding conflicts of interest, and ensuring satisfactory internal control, risk management and transparency. Commitment to Føroya Banki's mission and vision requires the integration of sound corporate governance with the framework under which the Bank is governed and managed.

Føroya Banki is a Farcese public limited company listed on NASDAQ Copenhagen A/S. Corporate governance at Føroya Banki follows generally adopted principles of corporate governance. The external framework that governs the Bank's corporate governance approach includes the rules of NASDAQ Copenhagen A/S, relevant legislation and instructions and guidance issued by the Danish Financial Supervisory Authority or other legislative authorities, and the rules and principles of the recommendations on Corporate Governance. For further information about the Bank's compliance with the recommendations on Corporate Governance, see the Bank's Corporate Governance Report, which is available at www.forovabanki.com/cg.

General meetings

The general meeting is the Bank's ultimate decisionmaking authority. An annual general meeting must be held within three months of the end of a financial year. In 2025, the meeting will be held on 27 March in Torshavn, Faroe Islands. The minutes of the meeting will be available at www.forovabanki.com.

Voting rights

All shareholders have equal voting rights, and each share carries one vote. However, no shareholder may. neither in respect of his own shares nor when acting as proxy for other shareholders, cast votes representing more than 10% (ten per cent) of the total share capital, regardless of the shareholding. Proxy votes given to the Board of Directors are not subject to these restrictions.

Any resolution to amend the Articles of Association or to wind up the Bank by voluntary liquidation or to adopt a merger is subject to no less than two-thirds of the share capital being represented at the general meeting and the proposed resolution being adopted by two-thirds of the votes cast and of the voting share capital represented at the general meeting.

Any proposal to amend or revoke the quorum requirement may be adopted by two-thirds of both the votes cast and of the share capital represented at the general meeting. For the purpose of voting on such proposals, restrictions on voting rights and voting by proxy do not apply.

The Bank's Articles of Association are available at www.fprovabanki.com/as

Board of Directors

The Board currently comprises nine members, six at whom were elected at the general meeting and three by and among the employees. Board members elected at the general meeting hold office for a period of two years. Thus, half of the directors elected by the general meeting are up for election every year. Directors are eligible for re-election. As prescribed by statutory provisions on employee representation in Farcese legislation, members elected by and among the employees serve on the Board of Directors for four-year terms, with the next election to be held in 2026.

The Nomination Committee operates as a preparatory committee for the Board of Directors with respect to the nomination and appointment of candidates for the Board of Directors and the Executive Board. Candidates for the Board of Directors are nominated by the Board of Directors or the shareholders and are elected by the shareholders.

The primary duty of the Bank's Board of Directors is to determine the strategic framework for the Bank and its activities. The Bank places emphasis on ensuring that the Board of Directors possesses the necessary and relevant experience and qualifications to adequately perform its duties as a board of directors. Members of the Board are subject to a performance evaluation, which includes questionnaire, a personal dialogue with the Chair and a plenary debate on the Board. The aim of the evaluation is to ensure, among other things, that the composition of the Board of Directors as well as the special competencies of each Board member enable the Board of Directors to perform its duties. As the Board of Directors operates as a collegial body, its overall competencies and experience are the sum of the individual board members' competencies and experience. The composition of the Board of Directors is intended to ensure a stable and satisfactory

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development of Føroya Banki for the benefit of its shareholders, customers, employees, and other stakeholders. The competencies of the Board of Directors are described collectively in the competency profile.

Diversity on the Board of Directors

The Bank has a policy for diversity on the Board of Directors. The Board of Directors and its Nomination Committee assessed the policy in May 2024 and found no need for changes.

The intention of this policy is that the Board's composition should embrace diverse competences and backgrounds, including diversity in professional identity. work experience, gender, age etc.

The policy further lays down that recruitment of candidates to serve as board members must focus on ensuring that the candidates possess competences, background, knowledge, and resources that are different from those of the existing board members and collectively match the competences required by the Bank's business model etc.

Compliance with the adopted policy on diversity on the Board of Directors is a significant element of the annual evaluation process.

The under-represented gender

The following sections are the complete statutory statement on the under-represented gender in accordance with Section 152 of the Executive Order on Financial Reports for Credit Institutions and Investment Firms atc.

The Bank has a target figure, and a policy aimed at increasing the percentage of the under-represented gender on the Board of Directors and the Bank's other management levels.

Board of Directors

In 2024, the Board of Directors and its Nomination Committee set a target figure of at least 40% for the under-represented gender on the Board of Directors to be met by 2027.

At the end of 2024 the under-represented gender on the Board of Directors presented 16.67% (2023: 33.33%).

The Board of Directors will focus on various initiatives aimed at meeting the target figure by 2027. These comprise recruitment initiatives and initiatives aimed at motivating candidates of the under-represented gender to stand as candidates for the Board of Directors.

Other management levels

Under the statutory definition of "other management levels", the Bank's other management levels are members of the general management (reported to the Danish Business Authority), employees placed at the same management level, in organisational terms, as the general management, and employees with staff responsibilities reporting directly to the general management or to employees placed at the same level, in organisational terms, as the general management.

It is a goal of the policy that the Bank's employees should feel that equal career and management opportunities are open to them, irrespective of gender. The policy adopted to increase the percentage of the under-represented gender at the Bank's other management levels also aims at creating a basis for a more equal gender distribution at these management levels. It is the Bank's overall and long-term aim to create a more equal gender distribution at the bank's other management levels. The bank's management wants to follow up on developments with respect to gender distribution at other management levels and to adjust its efforts continually in relation to the target.

In 2022, the Board of Directors and its Nomination Committee set a target figure of at least 40% for the under-represented gender at the Bank's other management levels to be met by 2025.

At the end of 2024. the gender distribution at the Bank's other management levels was 50.0% women and 50.0% men (2023: 50.0% women and 50.0% men). Hence, equal gender distribution has been achieved at other management levels.

Sound corporate culture

The Bank's Board of Directors has adopted a policy for a sound corporate culture containing a set of principles for the Bank's and the employees' actions, which supplements the framework of the Bank's code of conduct.

The policy was most recently updated in December 2024 કાપન : 전 available on the Bank's website www.foroyabanki.com/sco

The Bank's general management reports to the Board of Directors on the Bank's compliance with the policy and the code of conduct. Through this reporting and

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otherwise, the Board of Directors' gains insight into matters relating to the policy and the code of conduct.

The report of the chair of the Bank's Board of Directors to the annual general meeting on behalf of the Board must cover the implementation of the corporate culture policy and compliance with the policy.

Anti-money laundering, anti-terrorist financing, and sanctions

Combating money laundering and terrorist financing is basically a task for all employees in Føroya Banki, one reason being that the Bank has a statutory obligation to know all its customers, including to collect proper documentation of identity and details of ownership structures of legal persons.

The Bank must also have details of the individual customer's purpose of being a customer in the Bank, the scope of the customer relationship and the origin of the customer's funds. This task is carried out by collecting data, including by the individual customer advisers and/or via customers' self service solutions.

However, the Bank's central anti-money laundering department carries out the general work of combating money-laundering and financing of terrorism and continuously checks that the necessary information on the individual customers' identity and ownership is registered. It also checks that the purpose and intended scope of the customers" relations with the Bank are registered and updated.

In addition, the Bank must monitor customer transactions on an ongoing basis. All of the Bank's employees are both entitled and required to report unusual/suspicious transactions or activities to the anti-money laundering department. The anti-money laundering department thus supports the efforts of customer advisers and other employees and is also responsible for digital/automated monitoring of unusual/suspicious transactions or activities and for manual follow-up on them.

The department works continuously to set up and adjust the criberia for identifying transactions that are picked out for further investigation by the department.

The anti-money laundering department also reports to the Money Laundering Secretariat at the National Special Crime Unit.

The Bank's monitoring of customers includes a risk assessment in which the Bank has divided the customers into different risk categories. The risk assessment is based, among other things, on the EU's supranational risk assessment.

In addition, the Bank's employees regularly receive training and are tested in combating money laundering and financing of terrorism. Training is provided in the following ways:

• · Basic modules must be completed by all employees every two years. Training based on case studies and bank-specific learning targeted at the employee's job functions - is also provided on a regular basis.
• · New employees must complete training in basic modules within one month of their appointment.

Data ethics

The Bank's Board of Directors has adopted a data ethics policy which provides the framework for the Bank's ethical principles and conduct in relation to data. The Board of Directors adopted the policy in December 2024.

Section 154 of the Executive Order on Financial Reports for Credit Institutions and Investment Firms etc. requires undertakings which have a data ethics policy to supplement the management's review with a statement on data ethics. The statement must contain information on the undertaking's work and policy on matters of data ethios.

The Bank's Board of Directors has prepared a statement, which is available on the Bank's website at www.forovabanki.com/de

Tax policy

The Bank's Board of Directors has adopted a tax policy for the Group which provides the framework for the group's behaviour in relation to taxation matters. The policy states the Group's obligation to promote transparency and compliance with tax legislation. Furthermore, the policy states that the Group only engages in responsible and legitimate tax assessments. based on an open and honest dialogue with customers and the authorities. In collaboration with the relevant authorities the Group also participates in activities related to prevention of tax evasion. The Board of Directors adopted the policy in September 2024. The tax policy is available on the Bank's website at www.forovabanki.com/tp

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Product approval and product management

The Bank has a policy for product approval and product management to ensure that customers are offered suitable products, including investment products and investment services etc. If new products and services are introduced which may result in significant risks, the Bank's Board of Directors has overall responsibility for approving them.

The product approval and management of products and services are structured so that the Bank's other management levels handles these matters on an ongoing basis.

The other management levels recommend products and services for review by the Bank's compliance function. New products and services are subject to approval by the bank's compliance function, risk management function, and general management. The compliance and risk management functions can always request that risks be submitted to the board of directors for consideration.

At least annually, the compliance function reports to the Board of Directors on the Bank's investment products and services based on reporting from the other management level and the compliance function's own examinations during the year.

Complaints handling

In the event of disagreements between a customer and the Bank, the Bank's fundamental view is that they are always best resolved through dialogue between the customer and the adviser, possibly with the involvement of the adviser's line manager.

If agreement is not reached, the customer always has the possibility of complaining to the Bank's complaints function. The complaints' function is independent of the departments serving customers and handles complaints received and sends answers to the customer.

Remuneration

The Remuneration Committee operates as a preparatory committee for the Board of Directors with respect to remuneration issues. This duty includes proposals regarding the Bank's Remuneration Policy and underlying instructions to be approved and adopted at the general meeting.

The Bank's remuneration policy reflects the Bank's objectives of good governance and supports the Bank's ability to recruit, develop and retain competent, highperforming, and highly motivated employees in a competitive market.

Remuneration for the Board of Directors is approved and adopted at each year's annual general meeting. Members of the Board of Directors receive a fixed salary only. They are not covered by incentive programmes and do not receive variable or performance-based remuneration or pension contributions.

The remuneration of the Executive Management is determined by the Board of Directors. Remuneration in line with market levels constitutes the overriding principle for the remuneration of the Executive Management. Remuneration for the Executive Management must be consistent with and promote sound and effective risk management and not encourage excessive risk-taking or counteract the Bank's long-term interests. Remuneration of the Executive Management consists of a fixed salary only and does not comprise any incentlive programmes or variable or performance-based remuneration.

Additional information on the remuneration of the Board of Directors, the Executive Management and the executive officers can be found in note 10. For further information regarding the Bank's remuneration policy, see www.forovabanki.com/rp

Risk management

The Board of Directors always gives full attention to the Bank's various risks as well as the aggregated risk profile and follows up on risks on a regular basis. Risk appetite within the Bank is defined as the lovel and nature of risk that the Bank is willing to take in order to pursue the approved strategy on behalf of the shareholders and is defined by constraints reflecting the views of shareholders, debt holders, regulators and other stakeholders. The Board of Directors is ultimately responsible for the Group's overall risk appetite and for setting principles for how risk appetite is managed.

The Group's Risk Manager is responsible for the risk management framework and processes, including identifying, controlling and monitoring the Bank's various risks for the purpose of making risk assessments at both individual and aggregated levels. For further information on the Bank's risk management, see the Group's Risk Management Report 2024 at www.foroyabanki.com/rmr

Corporate responsibility

Complying with the law and adhering to international principles for responsible business conduct is a fundamental and integral part of Føroya Bankl's strategy.

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We are driven by an ambition to create value for all our stakeholders, to use our expertise to drive sustainable progress and to have a positive impact on the societies we are a part of. At Føroya Banki, we strive to build a relationship-centric bank that places the customer at the centre of the business, provides tailored financial advice and makes the banking experience less complex. Our commitment to canducting responsible business revolves around a set of values consisting of "Teamwork, Customer commitment and Enthusiasm", which form the backbone of our efforts to create sustainable and shared value for the Group's stakeholders. In addition to creating economic value through responsible business conduct; through the benefits that our products bring to our customers; and through banking expertise, the Group aims to create social value through community involvement. As such, Faroya Banki's approach is centred on its customers, employees, and the local community. It is our assertion that CSR initiatives will yield the best results if there is a natural connection between such activities and our business strategy and

core competences. Therefore, our initiatives are strategically rooted in the Group's vision, strategy, and values.

Føroya Banki reports on corporate social responsibility in the 2024 CSR Report, which has been prepared in compliance with the Group's CSR policy and the Danish FSA's requirements on corporate responsibility reporting. As mentioned, the bank in response to the upcoming stricter sustainability data management and reporting requirements, has made the necessary preparations in 2024 for reporting under the CSRD effective from the 2025 financial year.

The report is available at www.foroyabanki.com/orr

Statement by the Management

The Board of Directors and the Executive Board (the management) have today considered and approved the annual report of P.F. Føroya Banki for the financial year 2024.

The consolidated financial statements have been prepared in accordance with the IFRS Accounting Standards as adopted by the EU, and the Parent Company's financial statements have been prepared in accordance with the Earcese Financial Business Act.

In our opinion, the consolidated financial statements and the Parent Company's financial statements give a true and fair view of the Group's and the Parent Company's assets, liabilities, equity and financial position at 31 December 2024 and of the results of the Group's and the Parent Company's operations and the consolidated cash

flows for the financial year starting on 1 January and ending on 31 December 2024. Moreover, in our opinion, the management's report includes a fair review of developments in the Group's and the Parent Company's operations and financial position and describes the significant risks and uncertainty factors that may affect the Group and the Parent Company.

In our opinion, the annual report of P/F Føroya Banki for the financial year 1 January to 31 December 2024 identified as with the file name FB-2024-12-31en.zip has been prepared, in all material respects, in compliance with the ESEF Regulation.

The management will submit the annual report to the general meeting for approval.

Torshavn, 26 February 2025

Executive Board

Turio F. Arge CEO

Board of Directors

Birgir Durhuus Chair	Annfinn Vitalis Hansen Vice Chair	Kristian Reinert Davidsen
Marjun Hanusardóttir	Tom Ahrenst	Arni Tór Rasmussen
Rüna Hentze	Kenneth M. Samuelsen	Alexandur Johansen

Adopted at the General Meeting held on 27 March 2025

Óla Jákup Kristoffersen Chair of the meeting

30

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Internal Auditors' Report

Audit opinion

In our opinion, the Consolidated Financial Statements and the Financial Statements of P/F Føroya Banki give a true and fair view of the Group's and the Parent Company's assets, liabilities, shareholders' equity and financial position at 31 December 2024 and of the results of the Group's and the Parent Company's operations and cash flows for the financial year 1 January - 31 December 2024 in accordance with the IFRS Accounting Standards as adopted by the EU in respect of the Consolidated Financial Statements and in accordance with the Faroese Financial Business Act in respect of the Parent Company's financial statements.

Our opinion is consistent with our long-form audit report to the Audit Committee and the Board of Directors.

Basis for opinion

We have audited the Consolidated Financial Statements and the Financial Statements of P/F Føroya Banki for the financial year 1 January - 31 December 2024. The Consolidated Financial Statements have been prepared in accordance with the IFRS Accounting Standards as adopted by the EU. The Parent Company's Financial Statements have been prepared in accordance with the Fargese Financial Business Act.

We conducted our audit in accordance with the Danish Financial Supervisory Authority's executive order on auditing financial enterprises etc. as well as financial groups as applied in the Farce Islands and in accordance with international auditing standards on planning and performing the audit work.

We planned and performed our audit to obtain reasonable assurance as to whether the Consolidated Financial Statements and the Parent Company's Financial Statements are free from material misstatement. We participated in the audit of all material and critical audit areas.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Statement on Management's Review

Management is responsible for the Management's Review.

Our opinion on the Consolidated Financial Statements and the Parent Company's Financial Statements does not cover the Management's Review, and we do not express any form of assurance conclusion thereon.

In connection with our audit of the Consolidated Financial Statements and the Parent Company's Financial Statements, our responsibility is to read the Management's Review and, in doing so, consider whether the Management's Review is materially inconsistent with the Consolidated Financial Statements or the Parent Company's Financial Statements or our knowledge obtained in the audit or otherwise appears to be materially misstated.

Furthermore, it is our responsibility to consider whether the Management's Review provides the information required under the Farcese Financial Business Act.

Based on the work we have performed, in our view the Management's Review is in accordance with the Consolidated Financial Statements and the Parent Company's Financial Statements and has been prepared in accordance with the requirements of the Farcese Financial Business Act. We did not identify any material misstatements of the Management's Review.

Torshavn, 26 February 2025

Amdis Poulsen Chief Audit Executive, Førova Banki

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Independent auditors' reports

To the shareholders of P/F Føroya Banki

Report on the audit of the Financial Statements

Our opinion

In our opinion, the Consolidated Financial Statements give a true and fair view of the Group's financial position at 31 December 2024 and of the results of the Group's operations and cash flows for the financial vear 1 January to 31 December 2024 in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Farcese Financial Business Act.

Moreover, in our opinion, the Parent Company Financial Statements give a true and fair view of the Parent Company's financial position at 31 December 2024 and of the Parent Company's operations for the financial year 1 January to 31 December 2024 in accordance with the Faroese Financial Business Act.

Our opinion is consistent with our Auditor's Long-form Report to the Audit Committee and the Board of Directors.

What we have audited

The Consolidated Financial Statements and the Parent Company Financial Statements of PIF Faroya Banki for the financial vear 1 January to 31 December 2024 comprise income statement of comprehensive income. balance sheet, statement of changes in equity and notes, including material accounting policy information for the Group as well as for the Parent Company and cash flow statement for the Group. Collectively referred to as the "Financial Statements".

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (15As) and the additional requirements. applicable in Faroe Islands. Our responsibilities under those standards and requirements are further described in the Auditor's responsibilities for the audit of the Financial Statements section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group in accordance with the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark and Farce Islands. We have also fuffiliad our other ethical responsibilities in accordance with these requirements and the IESBA Code.

To the best of our knowledge and belief, prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No 537/2014 were not provided.

Appointment

PriorwaterhouseCoopers Statsautorseartnerselskab were first appointed auditors of P/F Ferova Banki on 29 March 2010 for the financial year 2010. We have been reappointed annually by shareholder resolution for a total period of uninterupted engagement of fifteen years induding the financial year 2024. We ware reappointed, following a tending procedure, at the General Meeting on 17 August 2022.

Januar PF Loggitt grannskobanavirki were first appointed auditors of PF Figroya Barki on 26 March 2013 for the financial year 2013. We have been respointed annually by shareholder resolution and have acted as auditors for the period except for the year 2022, for a total period of engagement of eleven vears including the financial year 2024.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Financial Statements for 2024. These matters were addressed in the context of our audit of the Financial Statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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Key audit matter	How our audit addressed the key audit matter
Loan Impairment charges
Loans are measured at amortised cost, according to the effective interest method, less impairment charges.	We performed risk assessment procedures with the purpose of achieving an understanding of it-systems, business procedures and relevant controls regarding the
Loan impairment charges represent Management's best estimate of expected losses on loans at the balance sheet date. Reference is made to the detailed description of accounting policies in note 1. The Group makes provisions for expected credit losses both on an individual basis in terms of individual provisions and on a model-based basis. As a result of the geopolitical and macroeconomic situation with the risk of economic slowdown, the Management has recognised a substantial provision for expected credit losses in the form of an accounting estimate ("management overlays"). The consequences of the geopolitical and macroeconomic situation for the bank's customers are to a material extent largely unresolved and as a result hereof there is an increased estimation uncertainly related to the size of the provisions for expected losses on loan. We focused on loan impairment charges, as the accounting estimate is by nature complex and influenced by subjectivity and thus to a large extent associated with estimation uncertainty. The following areas are central to the calculation of loan impaiment charges:	calculation of provisions for expected credit losses on Coal Da. In respect of controls, we assessed whether they were designed and implemented effectively to address the risk. of material misstatement. We reviewed and assessed the impairment charges recognised in the income statement in 2024 and the accumulated impairment charges recognised in the balance sheet at 31 December 2024. We assessed the applied impairment model prepared by the data centre SDC, including division of responsibilities between the data centre and the Group. We assessed and tested the Group's calculation of impairment charges in stages 1 and 2, including assessment of Management's determination and adaptation of model variables to the Group's own circumstances. Our procedures included an assessment of the Group's methods applied for the calculation of expected credit. losses as well as the procedures designed, including the involvement of the credit department and Management, and internal controls established to ensure that credit- impaired loans in stage 3 and in stage 2,
Determination of credit classification. Model-based impairment charges in stages 1 and	underperforming, are identified and recorded on a timely 08818.
2, including Management's determination of model vanables adapted to the Group's loan portfolio. The Group's procedures to ensure completeness of the registration of credit-impaired loans (stage 3) or loans with significant increase in credit risk (stage 2,	We assessed and tested the principles applied by the Group for the determination of impairment spenarios and for the measurement of collateral values of e.g. ships and real estate included in the calculations of impairment. of credit-impaired loans in stage 3 and in stage 2, underperforming. We tested a sample of credit-impaired loans in stage 3 and in stage 2, underperforming, by testing the calculations of impairment charges and applied data to underlying documentation. We tested a sample of other loans by making our own assessment of stage and credit classification. This included an increased sample of major loans, loans, within industries with generally increased risks within
underperforming). Most significant assumptions and estimates applied by Management in the calculations of impairment. charges, including principles for the assessment of various outcomes of the customer's financial position (scenarios) and for the assessment of collateral values of e.g. ships and real estate included in the calculations of impairment.
Management's assessment of expected credit losses at the balance sheet date as a result of possible changes in market conditions and which are not included in the model-based calculations or individually assessed impairment charges ("management overlays") including in particular the consequences for the Groups customers of the current geopolitical and macroeconomic situation.	certain industries particularly affected by the actual macroeconomic situation. We reviewed and challenged Management's estimates of expected credit losses not included in the modelbased. calculations or individually assessed impairment charges based on our knowledge of the portfolio, industry knowledge and knowledge of current market conditions. Among other things, we had a special focus on the Group's calculation of the management overlays

33

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Reference is made to note 1 of the Parent Company Financial statements and the Consolidated Financial Statements. "Estimates and assumptions . and	to cover expected credit losses as a result of the current geopolitical and macroeconomic situation.
13. risk "Impairment charges", Credit nolo management". "Changes to credit 1585 and "Calculation of the expected credit loss" and "Management applied judgements" as well as note 49. "Risk Management", addressing matters that may affect loan impairment charges.	We also assessed whether the factors that may have an influence on provisions for expected losses on loans have been appropriate disclosed.

Statement on Management's Review

Management is responsible for Management's Review.

Our opinion on the Financial Statements does not cover Management's Review, and we do not express any form of assurance conclusion thereon.

In connection with our audi of the Financial Statements. cur responsibility is to read Management's Review and, in doing so, consider whether Management's Review is materially inconsistent with the Financial Statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.

Moreover, we considered whether Management's Review includes the disclosures required by the Faroese Financial Business Act.

Based on the work we have performed, in our view, Management's Review is in accordance with the Consolidated Financial Statements and the Parent Company Financial Statements and has been prepared in accordance with the requirements of the Faroese Financial Business Act. We did not identify any material misstatement in Management's Review.

Management's responsibilities for the Financial Statements

Management is responsible for the preparation of conscilated financial statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU and further requirements in the Faroese Financial Business Act and for the preparation of parent company financial statements that give a true and falr view in accordanos with the Faroese Financial Business Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or enor.

In preparing the Financial Statements, Management is responsible for assessing the Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless Management either intends to liguidate the Group or the Panet Company or to coase operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in the Faroe Islands will always detect a material misstaliement when it exists. Misstatements can anse from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements.

As part of an audit in accordance with ISAs and the additional requirements applicable in the Faroe Islands, we exercase professional judgement and maintain professional skepticism throughout the audit. We also:

• · Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, dealign and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
• · Obtain an understanding of internal colerant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's and the Parent Company's internal control.
• · Evaluate the acpropriateness of accuriting policies used and the reasonableness of accounting estimates and related disclosures made by Management.

Confidential, Mikkelsen, Arne, 01-04-2025-14:15:223-cument.

• · Conclude on the accrocriateness of Management's use of the going concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's and the Parent Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our audition's report. However, future events or conditions may cause the Group or the Parent Company to cease to continue as a going concern.
• · Evaluate the overall presentation, structure and content of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view.
• · Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the Consolidated Financial Statements and the Parent Company Financial Statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the remain solely responsible for our audit opinion.

We communicate with those charged with governance regarding, among other matters, the planned soope and timing of the audit and significant audit finding any significant deficiencies in internal control that we identify during our audit

We also provide those charged with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence and, where applicable, actions taken to eliminate threats or safeguards applied.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or reculation preciudes public disclosure about the matter.

Report on compliance with the ESEF Regulation

As part of our audit of the Financial Statements we performed procedures to express an opinion on whether the annual report of PF Feroya Banki for the financial year 1 January to 31 December 2024 with the filename FB-2024-12-31-en.zip is prepared, in all material respects, in commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes requirements related to the annual report in XHTML format and IXBRL tagging of the Consolidated Financial Statements including notes.

Management is responsible for preparing an annual report that comples with the ESEF Regulation. This responsibility Includes:

• · The preparing of the annual report in XHTML format:
• · The selection and application of approgriate IXBRL tags, induding extensions to the ESEF taxonomy and the anchoring thereof to elements in the taxonomy, for all financial information required to be tagged using judgement where necessary:
• · Ensuring consistency between iXBRL tagged data and the Consolidated Financial Statements presented in humanreadable format; and
• · For such internal control as Management delemines necessary to enable the preceration of an annual report that is compliant with the ESEF Regulation.

Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all material respects, in complance with the ESEF Requiration based on the evidence we have obtained, and to issue a report that includes cur opinion. The nature, timing and extent of procedures selected tiepend on the auditor's judgement, including the assessment of the risks of material departures from the requirements set out in the ESEF Regulation, whether due or error. The procedures include:

• · Testing whether the annual report is prepared in XHTML formal;
• · Obtaining an understanding of the company's IXBRL fagging process and of internal control over the tagging process;
• · Evaluating the completeness of the IXBRL tagging of the Consolidated Financial Statements including notes;

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• · Evaluating the appropriateness of the company's use of iXBRL elements selected firom the ESEF taxonomy and the creation of extension elements where no suitable element in the ESEF taxonomy has been identified;
• · Evaluating the use of anchoring of extension elements to elements in the ESEF taxonomy; and

Reconciling the IXBRL tagged data with the audited Consolidated Financial Statements.

In our opinion, the annual report of P/F Feroya Banki for the financial year 1 January to 31 December 2024 with the file name FB-2024-12-31-en.zip is prepared, in all material respects, in compliance with the ESEF Regulation.

Hellerup, 26 February 2025

Tórshavn, 26 February 2025

PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab Business registration no 33 77 12 31

Januar P/F Løggilt grannskoðanarvirki Business registration no. 5821

Benny Voss

Fröði Sivertsen

State Authorised Public Accountant mne15009

State Authorised Public Accountant mne32257

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Confidential, Mikkelsen, Arne, 01-04-2025 14:15:44 is audi is audio nita fortha sigital signature.
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Financial statement Føroya Banki

Contents

Income statement
Statement of comprehensive income
Balance sheet
Statement of capital
Cash flow statement
Note 1
Note 2
Note 3
Notes 4, 5, 6, 7
Notes 8, 9.
Note 10
Notes 11, 12
Note 13
Note 14

Notes 15, 16, 17, 18, 19, 20, 21, 22.
Notes 23. 24. 25
Notes 26, 27
Notes 28, 29
Note 30
Notes 31, 32, 33, 34, 35, 36,37
Notes 38, 39, 40.
Nobe 41
Notes 42. 43. 44
Note 45. 46. _______________________
Note 47
Note 48
Note 49
Note 50

Income statement

		Croup		Feroya Banki
Note	DKK 1,000	2024	2023	2024	2023
3.4	Interest income calculated using the effective interest method	568,141	482,451	628,659	620,824
3.4	Other interest income	40.417	38,373
3.6	Marest expension	166,307	101,362	186,307	101,362
	Net Interest income	442,251	419,461	442,251	419,462
3	Dividends from shares and other investments	11,997	6,115	11,997	6.116
6	Fee and commission income	66,627	87.000	26,649	તેત્વે
6	Fee and commissions paid	6.876	5,899	6,876	G. BAN
	Net dividend, fee and commission income	60,748	87,796	101,770	98,297
	Net interest and fee income	833,000	607,257	644,022	617,769
7	Insurance revenue	160,000	184,807
7. 90	Insurance service expenses	156.017	141,038
7	Net return on investments backing insurance liabilities	12,701	8.043
7	Net finance income or expense from insurance	322	-883
7	Other expensas	રું સ્વિત્ત	5,952
7	Net insurance result	47,747	45,925	0	0
	Interest and fee income and income from insurance activities, net	580,747	553,182	544,022	847,789
3, 0	Market value adjustments	45,343	54,614	45,343	54,614
9	Other operating income	વે જિલ્લ	9,294	2,614	2.201
10. 11	Staff costs and administrative expenses	240, 369	243,670	230,470	234,856
26. 27. 20	Amorileation, depreciation and impairment charges	a 000	7,428	0.740	1,236
12	Other operating expenses	1,534	1,007	1,534	1,007
13	impainment charges on loans and advances etc.	-1,002	-10,043	-1/072	-10.043
23, 24	Income from investments accounted for under the equity method	4.600	5,102	32/016	32.614
	Profit before tax	302,475	379,330	376,317	373,232
14	Trox	72,049	71,797	65,891	25, 1526
	Net profit	310,427	307,533	310,427	207,533
	Portion afiributable to	305,208	300,576	306,206	300,576
	Sharefoolders of Forcya Bank PSF Owners of additional Tier 1 capital	5.218	6,958	5,218	ત શકાર
	Net profit	310,427	307,533	310,427	307,533
	EPS Basic for the perdiod, DKK*	32.42	32.12	82.42	32.12
	FPS Dated for the perdical. DOG.	32 42	32.12	32 42	32.12

"Based on average number of shares outstanding, see the specification in note 41.

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Statement of comprehensive income - Føroya Banki

	Group		Foroya Banki
DRK 1.000	2024	2021	2024	2023
Nat profit	310.427	307,533	310,427	307.533
Other comprehensive income
liems which will not subsequently be recycled to the income statement.
Rewaluation of domicile property	D	=158	0	=15B
Revalution of assets, subsidiaries	D	615	0	615
Total other comprehensive income	D	457	0	-158
Total comprehensive Income	310,427	307,991	310,427	307,221

Balance Sheet

		Group		Føroya Bankl
		Doc. 31	Dec. 31	Dec. 31	Doc. 31
Note	DKK 1,000	2024	2014	2004	2076
	AA 6600
15	Cash in hand and demand deposita with cantral banks.	2,606, 305	1,795,718	2 695 918	1,793,739
16. 17	Arrounts due from credit institutions and central banks	310,797	260,050	310,797	260,060
13. 16. 19	Louns and advances at fair value	319,297	348,500	319,297	348,500
13. 18. 19	Loans and advances at antortised cost	8,767,094	8.634.366	8 787 094	8,534,366
20	Bords at fair value	1,757,200	1,396,516	1,559 897	1,217,642
21	Shares, etc.	266,846	279,957	188 359	190, 388
22,46	Assess under insurance contracts	4,706	1,656	0	D
23	Holdings in associates	18.563	14.881	18.583	14,881
24	Holdings in subsidiaries	n	0	145,434	132.553
રેન્ડ	Assets under pooled schemes and uni-linked investment contracts.	61,610	33,003	59 059	30.008
26	Intangie assets	5.004	1,702	1,034	1,702
	Total land and buildings	111,810	123,742	111,810	120,431
27	Domicile property	54, 377	62,149	54,377	58,838
27	Domicile property (lease asset)	57,432	61/993	67,432	61,543
28	Other property, plant and equipment	16.008	12,381	13.007	9,662
	CLIFFERT THE DECREEDER	21,818	27,413	21,818	27,413
29	Deferred tax assets	11.263	9,412	11.172	9.362
30	Assess hald for susin	2,207	D	2,207	0
31	City novels	NO.4 Only	89,044	09.312	PO. DEAL
	Presida merris	34,561	16,503	32,701	15,290
	Total assets	14,511,644	12,944,835	14.346.463	12,796,250

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Balance Sheet

		Greup		Feroya Banki
		Doc. 31	Dec. 31	Dec. 31	Doc. 31
Note	DKK 1,000	2024	2023	2024	2023
	Shareholders' equity and liabilities
	Liabilities other than provisions
32.33	Amounts due to credit institutions and central banks	823,456	719,105	823,469	719,106
34,35	Daposits and other debt	10,003,348	8,702,192	10,014,704	8,709,588
	Deposits under pooled schemes and unit-linked investments contracts.	61,610	33,003	58,055	30,000
ਡਿਜ਼ੋ	Issued bonds at amortised cost	991,190	666,134	981,190	996,134
36,48	Liabilities under insurance contracts	158,486	139,679	0	0
	Current tax location.	73,613	11,036	67,770	65,796
37	Other liabilities	226,273	180 855	220,162	176,670
	Daterred income	3,927	4,047	2,162	2,169
	Total liabilities other than provisions	12,332,200	10,836,949	12,167,528	10,688,385
	Provisions for liabilities
27	Provisions for defensed tax	506	21	0	0
13	Provisions for losses on guarantees etc.	1,263	4,204	1,263	4,204
	Provisions for other liabilities	1,848	1 893	1,846	1,869
	Total provisions for liabilities	3,617	6,034	3,102	6,073
	Subordinated debt
40	Subardinated debt	99,750	040 1230	20,750	30,650
	Total liabilities	12,435,607	10,942,694	12,270,426	10,794,100
	Equity
	Share capital	192,000	192,000	192,000	192,000
	Revaluation reserve	6,718	7 948	6.718	7.948
	Retained earnings	1,527,319	1,570,692	1,527,319	1,570,662
	Propiosed dividends.	350/000	000 1000	350,000	80,000
	Shareholders of the Parent Company	2,076,037	1.850,009	2,076,037	1,850,600
39	Additional fier 1 capital holders	0	121,232	0	151,532
	Total equity	2,076,037	2,002,141	2,076,037	2,002,141
	Total liabilities and equity	14,511,644	12.944.835	14,348,463	12,796,250

42

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Statement of changes in equity - Føroya Banki Group

		BEGERENCESSEDS COURTy
	Share	Revaluation	Proposed	Regined		Additional the 1
DIOK 1.000	capital	REFERENT	dividence	earnings	Total	capital	T-2 tal
Shareholders' equity at January 1, 2024	192,000	7,548	80.000	4,570,662	1,850,600	151,532	2,002,144
Revaluation of assets, autoidiaries		-1.230		1.230	D		0
Not profit			350,000	-44.792	305,206	5,216	310,427
Total comprehensive Income		-1.224	350,000	-43.562	305,206	5,218	310,427
Paid interest on additional Ber 1 capital				0	0	6,750	-8.750
Redemption of additional tier 1 capital			0	0	0	(150,000)	-160-000
Dimicleridis (x360)			(8)(1)(1)	219	=19,181		-28.781
Shareholders' equily at December 31, 2024	192,033	6,718	350,000	1,537,319	2,076,037	0	2.036.037

						Additional
	STEANS	Ranadallands	Production	Really are and		1604 1
DICK 1,000	capital	RAMOVE	OF CHOOLE	earnings	Total	capeal	Total
Shareholders' equilty at January 1, 2023	192,000	14,362	250,000	1,342,466	1,796,657	151,324	1.958.184
Reveloption of assets		-7.058		6.901	-158		-158
Revaluation of assets, subsidianes		616			616		615
Net profit			80.000	220,576	300,576	6.950	307,533
Total comprehensive Income		18.444	80.000	227,477	301,033	8,958	307,941
Paid interest on additional fier 1 capital				0	0	-6.750	-6.758
Districts pard			-250,000	719	-249,261		-249.281
Shareholders' equily at December 31, 2023	192,000	7,048	80.000	1,870,862	1,850,600	151,632	2,002,141

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Statement of changes in equity - Føroya Banki P/F

	Sharenceders equility
						Additional
	Share	REVIEWSON	Progesed	Retsined		Sar 1
DKK 1.000	cap tal	CORREVE	dividende	carrings	Total	cap tal	Total
Shareholders' equity at January 1, 2024	192,000	7,948	0.000	1.570.662	1.858.600	154,532	2.002.541
Revalundian of assets, subsidianes		-1,230		1,230	D		0
Net profit			360,000	-44,792	306,204	6.218	310,427
Total comprohansive income		=1,230	350,000	=13,563	386,308	6.218	333,477
Paid interest on additional ber 1 capital				B	B	-8.780	8.750
Redemption of additional fier 1 capital			0	D	D	-150,000	-150.000
Distancis paid			-80,000	219	-79,781		-79.781
Shareholders' equity at December 31, 2024	192,000	6,718	350,000	1,527,319	2.076.037		2.076.05

						Additional
	5hare	REVERIMES OF	Proposed	Retained		Sar 9
DKK 1,000	CODES	NUMBERSE	divisement	FOrTSIngs	Teap	CODES BE	Total
Shareholders' equity at Jaruary 1, 2023	192,000	14.382	250,000	1,342,466	1,796,857	191,324	1,950,181
Revaluation of associa		-7 068		6,001	-168		:159
Revelundon of assets, subsidiations		615			615		615
Net pagela			ROLLINO	220,578	300,576	6.664	307,513
Total comprohassive income		- 444	BD.000	227,477	301,033	4.958	307,801
Paid interest on additional has 1 copital						4,760	4.750
DINASTON PARS			-250,000	719	-249.281		-249.281
Shareholders' equity at December 31, 2025	192,000	7,948	80,000	1,530,662	1,850,600	151,532	2,002,141

Confidential, Mikkelsen, Arne, 01-04-2025 14:15:230cument.

Capital and Solvency - P/F Føroya Banki

Salvincy	Dec. 31	Dec. 31
DIKK 1,000	2024	2023
Tier 1 capital Total capital	1,712,027 1,811,817	1,907,887 2,007,537
Rask-weighted items not included in the trading partifolio	5,835,110	5,808,267
Risk-weighted items with market risk etc.	391.442	347,722
Risk-weighted items with operational risk	953.926	662,873
Total risk-weighted items	7,180,478	6,818,861
CET 1 capital ratio	23.8%	25.8%
	23.8%	28.0%
Tier 1 capital ratio	25.2%	29.4%
Total capital rabo
Total capital, Incl. MREL. capital, ratio	36.3%	41.1%
Shareholders equity
Share capital	192,000	192.000
Reserver	6,718	7.940
Nel profit	310,427	307,533
Retained earnings, previous years	1,571,152	1,347,453
Shareholders' equity, before deduction of holdings of own shares	2,000,296	1,854,934
Deduction of ordinary dividiend	217,000	80.000
Deduction of extraordinary drividend	133,000	0
Deduction of holdings of our shares	4,259	4,325
Deduction of intangible assets	1,084	1,702
Deduction of defered tax assets.	11,172	9,362
Deduction regarding prudent valuation of financial instruments	1,754	1,503
CET 1 capital	1,712,027	1,758,043
Additional Tier 1 capital	0	149,844
Tier 1 capital	1,712,027	1,907,887
Total capital
Tier 1 capital	1,712,027	1807,007
Subordinated loan capital	99,790	06 050
Total capital	1,811,017	2,007,537
MREL capital	791 227	798.224
Total capital, incl. MREL capital	2,603,044	2,805,762

The Faroya Barki Group holds a licerse to operate as a bank and is therefore subject to a capital requirement under the Farrese Financial Business Act and to CRR. The Faroese provisions on capital requirements apply to both the Parent Company and the Group. The capital requirement provisions stipulate a minimum capital of 8% of the identified risks. A detailed body of rules determines the calculation of capital as risks (risk-weighted lierns). The capital comprises CET 1 capital, hybrid core capital and subordinated loan capital. The CET 1 capital corresponds to the carrying amount of equity, after deductions of hridings of own shares, tax assets and other minor deductions.

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Cash flow statement - Føroya Banki Group

DKK 1,000	2124	2023
Cash flow from operations
Profil batons tax	382,475	379,330
Amortisation and impairment charges for intengible assets.	615	701
Depreciation and impairment charges of langible assets.	9,741	7,101
Impairment of loans and advances/guarantoes	1,077	4,696
Paid 1000	-78.956	-49.016
Other non-cash operating items	-62.528	-2-1 16805
Total	252,427	201,610
Changes in operating capital
Change in loans at fair value	36,665	25,460
Change in knas at amorined cost	-232/816	-903 821
Change in holding of bonds	-320, 115	232,310
Change in holding of shares	7,076	28,313
Change in deposits	1,301,156	369 530
Due to credit institutions and central banks	-138,607	-124,781
Change in other assets / Eabilities	41,569	0.310
Assets list see under insurance contracts.	15,678	24,057
Рераутигия	-16,176	-1,605
Cash flow from operations	843,965	36,051
Cash flow from investing activities
Dividends received	11,997	6,115
Apquisition of intengible assets	-6,000	0
Apquisition of langible assets	-7,211	-7.007
Sale of tangible assets	6.654	34 1669
Cash flow from investing activities	6,436	21,977
Cash flow from financing activities
Change in loans from central banks and credit institutions	242,857	-14,200
business bands at amortined cost	D	639 550
Rademption of bound bonds at ansortised cost	-150,000	-200 000
Interest pard on additional ber 7 capital	-6,750	4,750
Payment of dividends	-80.000	-250,000
Payment of dividends, own shares	219	719
Principal portion of lessee lease payments	-5,417	-5.156
Cash flow from financing activities	900	163,070
Cash Bow	461,333	223,106
Cash in hand and demand deposits with central banks, and due from
Credit institutions, etc. at the beginning of the year Cash flow	2.066.769	1,832,663
	861,333	223,106
Cash and due etc.	3,007,102	2,055,769
Cash and due etc.
Cash in hand and demand deposits with central banks	2.666.302	1,795,710
Due from credit irastistions, etc.	310,797	260 050
Total	3.007.102	2.055.769

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Notes

Note 1

Accounting policies

Contents

1. Basis of preparation
1) Estimates and assumptions
2) Adoption of new standards in 2024
3) Changes in IFRISs not yet applied by Feroya Banki
4) Consolidation
5) Segment information -------------------------------------------------------------------------------------------------------------------------------------------------------
6 Offseting
2. Critical accounting policies
1. Income stationers
1) Incoma critoria
2) Interest income and expenses
36 Dividends on shares
4) Fees and commission income
5) Fees and commission expenses incurred 51
6 Not iraurance neaut
7) Pair value acquitments
B) Other openating income
Staff costs
106 Pension obligations
11) Depreciation and impairment of property, plant and
eculoment
12) Other operating experating expertess
13) Impairment charges on loans and advances atc. 52
145 Tan.
2. Balance sheet - Assets
1) Due from credit institutions and central banks 69

2) Financial instruments - General
3) Financial instruments - Classification
4) Assets under insurance contracts ________________________
6) Holdings in associates
6) Holdings in subsidiaties
7) Intangible assets
(I) Land and buildings -------------------------------------------------------------------------------------------------------------------------------------------------------
9) Other property, plant and equipment
10) Asseta hald for sale
11) Other assocs
3. Balance sheet - Liabilities, provisions and equity ------------------------------------------------------------------------------------------------------------------------
1) Financial instruments - general
2) Classaicalion -------------------------------------------------------------------------------------------------------------------------------------------------------------
3) Due to credit institutions and central banks and deposits.
measured at amortised cost.
4) Trading portfolio measured at fair value
5) Determination of fair value
6) Liabilities under insurance contracts
7 Other hab@loos
8] Provisions ----------------------------------------------------------------------------------------------------------------------------------------------------------------
9) Subordinated debt ---------------------------------------------------------------------------------------------------------------------------------------------------------
10) Hybrid Capital (AT1 capital)
11) Own shanss
12) Dividenda ----------------------------------------------------------------------------------------------------------------------------------------------------------------
4. Gash for statement
3. Accounting Policies - PF Faroya Banki ___________________

47

1. Basis of preparation

The Feroya Banki Group presents its conscilidated financial statements in accordance with IFRS as adopted by EU and issued by the International Accounting Standards Board (ASS). Furthermore, the consolidated financial statements comply with the requirements for annual reports in the Faroese Financial Business Act and the executive order regarding the application of IFRS standards in financial institutions which applies for the Faroes issued by the Danish FSA.

The preparation of the consolidated financial statements requires, in some cases, the use of estimates and assumptions by management. The estimates are based on past experience and assumptions that management believes are fair and reasonable but that are inherently uncertain and uncredictable. These estimates and the judgement behind them affect the reported amounts of assets, liabilities and off bailed income and expenses in the financial statements presented. Changes and effects from implementation of new standards and amendments are explained in the following under the heading Adoption of new standards in 2023.

1) Estimates and assumptions

Estimates and assumptions of significance to the financial statements include the determination of:

• A. Impairment charges of loans and advances
• B. Fair value of domicile properties
• C. Fair value of financial instruments

The assumptions may be incomplete or inaccurate, and unexpected future events or situations may occur. Such estimates and assessments are therefore difficult to make and will always entail uncertainly, even under stable macroeconomic conditions, when they involve transactions with customers and other counterparties.

A) Impairment charges of loans and advances

The Group makes impairment charges to account for impairment of loans and advances that occur after initial recognition. Impairment charges are based on the expected credit loss model as further described under the section "Loans and advances at amortised cost".

In order to determine impairnents on financial instruments as stipulated by IFRS 9, the Bank is required to make use of estimations and assumptions. In particular, Foroya Barki is mandated to estimate future when assessing significantly increased credit risks and loan-to-value when assessing impairments.

Foroya Bank's expected credit loss model based on a series of variable incuts - requires a loss allowance to be recognised on all credit exposures. Impairnents within stage 2 which are not dassified as weak engagements are based purely on the output of the model, whereas impairments within the weaker part of stage 3 are recognised based on a combination of individual assessment and model output.

The following components of the model are considered accounting estimations and assessments:

• · Farcya Bank's internal credit score system. which assigns PD values on a loan-by-loan basis and classifies exposures into stages.
• · Faroya Banki's criteria to determine significant increases in credit risk, which would demand a transfer from one stage of impairment to another.
• · Model development, including input parameters and formulas.
• · Dotermining macroeconomic sonnation and economic data input, as well as the effect of these on PD values. EAD values and LGD values.
• · Determining forward-looking microeconomic scenarios.

Note 13 provides details on the amounts recognized and note 49 also provides further details on impairment charges on loans and advances

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In addition to model based impairment charges management applies judgement when determining the need for postmodel adjustments in order to reflect uncertainty of the future cash flows not covered by the model.

B) Fair value of domicile properties

The income based approach is used to measure fair value of properties the fair value is estimated on the basis of various assumptions and a major parameter is the potential rental income. The potential rental income is based on the Group's best estimate of the future profit on ordinary operations and the required rate of return for each individual property when taking into account such factors as location and maintenance. A number of these assumptions and estimates have a major impact on the calculations and include such parameters as developments in rent, costs and required rate of return. Any changes to these parameters as a result of changed market conditions will affect the expected return, and thus the fair value of the domicile properties.

C) Fair value of financial instruments

The Group measures a number of financial instruments at fair value, including at derivative instruments as well as shares, bonds and certain loans.

Assessments are made in connection with determining the fair value of financial instruments in the following areas:

• · Choosing valuation method
• · Determining when available listed prices do not reflect the fair value
• · Calculating fair-value adjustments to provide for relevant risk factors, such as credit.
• · Model and liquidity risks
• · Assessing which market parameters are to be taken into account
• · Making estimates of future cash flows and return requirements for unlisted shares

The Group's loans and advances are not traded in an active market. Therefore there is no market price to determine fair value of loans. The fair value has to be datermined using a valuation technique, which estimates the market price between qualified, willing and independent parties. The valuation technique has to include all the relevant elements such as creafl risk, market rates etc. Note 3 and note 13 provide details on the amounts recognised for loans measured at fair value.

As part of its day operations, the Group has acquired strategic equity investments. These shares are measured at fair value based on the information available about trading in the relevant company's equity investments. Delais on the amounts recognised are provided in note 21.

2) Adoption of new standards in 2024

On 1 January 2024, Foroya Banki implemented the following new and amended standards which are mandatory for accounting periods beginning on or after 1 January 2024:

• · IAS 1, Presentation of Financial Statements: Clarity that the distinction between current labilities must be based on the rights existing on the balance sheet date.
• · IFRS 16, Leasing: The amendment to IFRS 16 clarifies that the amount of a deferred gain in a sale and leaseback transaction shall reflect the economic interest retained through the lease. For instance, variable lease payment not based on an index shall be included in determining the economic interest retained. Furthermore, it is clarified that the lease lability should be measured consistently with determination of the retained economic interest.

The amendments had no impact on the Group's accounting policies.

3) Changes in IFRSs not yet applied by Føroya Banki

The following new standards, amendments and interpretations issued and endorsed by EU are relevant for the Faroya Banki Group:

· IAS 21, Foreign exchange rates: The amendment clarifes the procedures relating to the assessment of whether a currency is exchangeable into another currency, and when it is not, how to determine the exchange rate to use and which disclosures to provide.

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The amendment is mandatory for financial years beginning on or after 1 January 2025.

The following new standards, amendments, and interpretations issued and not yot endorsed by EU are relevant for Ferrya Bank Group:

Amendments to the Classification and Measurement of Financial Instruments comprising:

• · Clarification of the requirements for the timing of recognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system:
• · Clarification to and addition of further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion which could among others be relevant for instruments with features linked to the achievement of environment, social and governance (ESG) targets)

The amendment is mandatory for financial years beginning on or after 1 January 2026.

Management has not yet assessed the potential impact of this amendment.

4) Consolidation

The conscildated financial statements comprise the parent company, PFF Foroya Banki and Its subsidiaries. are entilies over which Føroya Banki has power, is exposed to variability in relums, and has the ability to use its power to affect the return. Control is said to exist If PF Feroya Banki directly holds more than half of the voting rights in an undertaking or otherwise has power to control management and operating policy decisions. Operating policy control may be exercised through agreements about the undertaking's activities.

The consolidated financial statements combine the financial statements of the individual subsidiarles in accordance with the Group's accounting policies, in which intragroup income and costs, shareholdings, balances and dividends as well as realised and urrealised gains and losses on intragroup transactions have been eliminated.

Acquired subsidiaries are included from the date of acquisition.

The assets of acquired subsidiaries, including identifiable intangible assets, as well as liablities and contingent liabilities, are recognised at the date of acquisition at fair value in accordance with the acquisition method.

5) Segment information

The Group consists of a number of business units and resource and support functions. The business units are segmented according to legislation, product and services characteristics. The information provided on operating segments is regularly reviewed by the management making decisions about resources to the segments and assessing their performance, and for which discrete financial information is available. Amounts presented in the segment reporting are recognised and measured in accordance with the Group's significant accounting policies.

Segment revenue and expenses as well as segment assets and liabilities comprise the items that are directly attributable to or reasonably allocable to a segment. Non-allocated items primarily comprise assets and liabilities, revenue and expenses relating to the Group's administrative functions as well as income taxes etc.

6) Offsetting

Amounts due to and from the Group are offset when the Group has a legally enforceable right to set off a recognised amount and intends either to settle on a net basis or forealise the asset and settle the lability simulaneously.

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2. Critical accounting policies

1. Income statement

1) Income criteria

Income and expenses are accrued over the periods to which they relate and are recognised in the Income Statement at the amounts relevant to the accounting period.

2) Interest income and expenses

Interest income and expenses arising financial instruments measured at amortised cost are recognised in the income statement according to the effective interest method on the basis of the individual financial instrument. Interest includes amounts of fees that are an integral part of the effective yeal on a financial instrument, such as origination fees, and the amortisation of any other offerences between cost price and redemplion price. For financial assets in stage 1 and 2 of the impairment model, interest income is determined on the basis of the gross carrying amount. For financial assets in stage 3, interest income is determined based on the carrying amount after impairment.

Interest income and expenses also includes instruments measured at fair value with the exception of interest relating to assets and deposits under pocied schemes which are recognized under market-value adjustments. The interests are recognised in the income statement according to the effective interest method on the cost of the individual financial instrument.

Interest on loans and advances subject to imparment is recognised on the basis of the impared value.

Interest expenses comprise interests on the groups leasing labilities recognized as a consequence of the implementation of IFRS 16 'Leases'.

Furthermore interest income comprises income originated from liabilities and interest expenses comprise expenses originated from assets.

3) Dividends on shares

Dividends on shares are recognised in the income statement on the Group is entitled to reosive the dividend. This will normally be when the dividend has been approved at the annual general meeting.

4) Fees and commission income

Fees and commission income comprises fees and commission income that is not included as part of the amortised cost. of a financial instrument. The income is accued during the service period. The income includes fors from securities dealing, money transmission services as well as guarantee commission. Income arising from the execution of a significant act is recognized when the act is executed.

5) Fees and commission expenses incurred

Fees and commission expenses comprises flees and commission expenses paid that are not included as part of the amortised cost of a financial instrument. The oosts include guarantee commissions and trading commissions.

6) Net insurance result

Insurance activities from the subsidianes PF Trygd (non-Ille insurance) and PF NordikLiv (Ifre-insurance), are presented in the income statement under the item Net insurance result and includes the following items:

• · Insurance revenue comprises gross premiums and change in gross provisions for uneamed premiums.
• Insurance service expenses comprises claims paid, change in gross provisions for claims, change in nisk margin and acquisition costs.
• · Net return on investments backing insurance liabilities comprises return on investments.
• · Nat finance income or expenses from insurance comprises technical interest of reinsurance and internet and value adjustments of provisions.
• Other expenses comprises administrative expenses.

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7) Fair value adjustments

Fair value adjustments comprise all value adjustments of financial assets and liabilities that are measured at fair value through profit or loss. Excluded are adjustments on loans and advances at fair value, recorded as fair value adjustments under Impairment charges on loans and advances and provisions for quarantees etc. note 13.

8) Other operating income

Other operating income includes other income that is not ascribable to other income statement line items.

9) Staff costs

Salaries and other remuneration the Group expects to pay. Remuneration is recognized along with delivery of service and is classified as staff costs. This item includes salaries, bonuses, anniversary bonuses, persion costs and other remuneration.

10) Pension obligations

The Group's contributions to defined contribution plans are recognised in the income statement as they are earned by the employees.

11) Depreciation and impairment of intangible assets, property, plant and equipment

Depreciation and write-downs comprise the depreciation and write-downs on intangible and tangible assets for the period. Furthermore depreciation of property comprises depreciations on the Groups holdings of leased assets.

12) Other operating expenses

Other operating expenses include other expenses that are not ascribable to other income statement line items.

13) Impairment charges on loans and advances etc.

Impairment charges on loans etc. Includes impairment losses on and charges for loans and amounts due from credit institutions and other receivables involving a credit risk as well as provisions for guarantees and unused credit facilies.

14) Tax

Faroese consolidated entiles are not subject to computsory joint laxation, but can opt for joint taxation provided that cortain conditions are complied with. P.F. Foroya Banki has opted for joint taxation with the subsidiary PF Skyn. Corporation tax on income subject to joint taxation is fully distributed on payment of joint taxation contributions between the consolidated entities.

Tax for the year includes tax on taxable profit for the year, adjustment of deferred tax as well as adjustment of tax for previous years. Tax for the year is recognised in the income statements that can be attituted to profit for the year and in other comprehensive income and directly in equity as regards to the elements that can be attributed to hems recognised in other comprehensive income and directly in equily respectively. Tax for the year is calculated separately based on continuing and discontinued operations.

Current tax liabilities and current tax assets are recognised in the balance sheet as calculated tax on taxable profit for the year, adjusted for tax on taxable profit of previous years.

Provisions for deferred tax or deferred tax assets are based on the balance sheet liability method and include temporary differences between the carrying amounts and tax bases of the balance sheets of each consolidated entity as well as tax loss carry forwards that are expected to be realised. Calculation of deferred tax is based on current tax law and tax rates at the balance sheet date.

Deferred taxes are recognised in the balance sheet under the litered tax assets" and "Provisions for deferred tax".

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2. Balance sheet - Assets

1) Due from credit institutions and central banks

Amounts due from credit institutions and central banks comprise amounts due from other credit institutions and time deposits with central banks and are measured at amortised cost, as described under Financial instruments / loans and advances at amortised cost.

2) Financial instruments - General

Purchases and sales of financial instruments are recognised and measured at the settlement date. The fair value is usually the same as the transaction price. Changes in the value of financial instruments are recognised up to the settlement date.

3) Financial instruments - Classification

The Group's financial assets are at initial recognition divided into the following three categories:

• · Loans and advances measured at amortised cost
• · Trading portfolio measured at fair value
• Financial assets designated at fair value with value adjustments through profit and loss

3.1) Loans and advances measured at amortised cost

Loans and advances consist of conventional loans and advances directly to bornowers. Intilal recognition of amounts due from credit institutions and central banks as well as loans and advances are at fair value plus fransaction costs and less origination fees and other charges received.

Subsequently they are measured at amortised cost, according to the effective interest method, less any impalment. charges according to the requirements from IFRS 9.

The difference between the value at initial recognition and the nominal value is amorised over the term to maturity and recognised under "Interest income".

Payment on loans and advances from customers comprises the principal amount plus interests.

Impairment charges

Impairment charges on loans, financial guarantee contracts and loan commitments is based on a staged model under which the impairment charge on instruments which have not been subject to a significant increase in credit risk is determined at the credit loss from loss events expected to take place within the next 12 months. For Instruments with a significant increase in credit risk since intial recognition and instruments which are credit impaired, the impairment charge is the lifetime expected credit loss.

The method of determining whether the creased significantly is mainly based on the probability of delault reflecting past events as well as current conditions and forecasts at the reporting date.

The method of forecasting at the reporting date is based on a distribution of the bank's personal customers by geography and of its corporate customers by industry. For each category, the bank considers the future forecast relative to the past events on which the probability of default is based.

The method of calculating the expected credit loss in stage 2 is primarily a model-based individual assessment based on a probability of default, a loss in case of default and exposure at the default date. For large, weak stage 2 customers/facilities and stage 3 customers/facilities, the calculation of impairment allowance is made using a manual, individual assessment of the financial assets rather than a model-based calculation.

For exposures categorised as stage 1 or stage 2, the expected credit loss (ECL) is calculated as a function of the probability of default (PD) " the expected exposure at default (EAD) " the expected loss given default (LGD). Where the PD for exposures in stage 1 reflects the probability of default in the next 12-month period (PD12), the probability of default over the entire life of the exposure is applied to exposures placed in stage 2 (PD Life).

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As regards the portion of stage 2 exposures consisting of the weakest exposures, the largest of these are reviewed individually, and the average impairment ratio calculated for them is used to calculate the expected credit loss for the weakest of the stage 2 exposures not individually reviewed.

As regards exposures in stage 3, the expected creat loss is calculated individually.

PD12 is calculated based on the Bank's behavioural credit score methodology for exposures to retail customers and small corporate customers, whereas the Bank's accounting-based credit score model is applied to the Bank's exposures to large corporate customers.

PD Life is calculated based on PD12 but is adjusted for any identified annual migrations between various fixed PD12 stages. Furthermore, the calculated PD Life is adjusted for changes in a number of forward-looking factors, which as regards the Bank's Danish and Greentandic exposures are based on information from, e.g., the Danish central Bank and the Danish Economic Council, whereas factors of relevance to Farpese exposures are based on the current impairment ratio relative to a historical average impairment ratic.

EAD is calculated as the actual amount of exposure with due consideration for non-executed loan commitments and unutlised, executed loan commitments as well as any guarantees provided, which factors are calculated as a function of predetermined coefficients.

LGD is calculated as the ratio between the historically identified loss rate for the exposures that are not tauned

The expected life of an exposure is calculated, unless the circumstances surrounding the exposure in question dictate otherwise, as the contractual maturity of the exposure in question.

All significant variables and calculations made are validated at least annually, primarly based on sample testing and, for model-based variables, supplemented by back-lesting and the use of statistical fargets for explanatory values.

Since calculations are made in all stages of an expected credit loss, i.e. expectations as to the future, all statements and calculations reflect the Bank's best estimates and assessments. These estimates and assessments may therefore result in the calculation of a higher or lower credit losses actually incurred. Please refer to note 13 for further information.

Write-off policy

Pursuant to the credit policy, the Bank will secure as much collateral as possible when entering into exposures. It is Group policy to write off, possibly on account, claims deemed to be lost, even if no collateral has been secured. The following principles apply for writing off bad debts:

• · For personal customers, write-off is made prior to or immediately in connection with the exposure baing transferred to the central debt collection department.
• · For corporate customers, write-off will typically await the commencement or completion of active realisation.
• · Non-performing loans where the interest rate has been reduced to zero are normally written off immediately.

The Bank will seek to collect all written-off exposures either through its debt collection department or through external assistance. In certain customer relationships, an agreement will be made on partial repayment of the exposures, and remaining exposures will be forfeited in connection with bankruptcy proceedings and agreements on debt rescheduling.

3.2) Trading portfolio measured at fair value

The trading portiolo includes financial assets acquired which the Group intends to sell or repurchase in the near term. The trading portfolio also contains financial assets managed collectively for which a pattern of short-term profit taking. exists.

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Assets in the trading portfolio comprise the shares, bonds and derivatives with positive fair value held by the Group's trading departments.

At intial recognition, the trading portiolio is measured at fair value, excluding transaction casts. Subsequently, the portiblio is measured at fair value and the value adjustments are recognised in the Income Statement within mariet value adjustments.

Determination of fair value

The fair value of financial assets is measured on the basis of quated market prices of financial in active markets. If an active market exists, for value is based on the most recently observed market price at the balance sheet date. If a financial instrument is quoted in a market that is not adlive, the Group bases its measurement on the most recent. transaction price. Adjustment is made for subsequent changes in market conditions, for instance by including transactions in similar financial instruments that are assumed to be motivated by normal business considerations.

If no active market for standard and simple financial instruments exists, generally accepted valuation techniques rely on market-based parameters for measuring fair value. The results of calculations made on the basis of valuation techniques are often estimates because exact values cannot be determined from market observations. Consequently, additional parameters, such as liquidity risk and counterparty risk, are sometimes used for measuring fair value.

Determination of fair value hierarchy

Fair value is determined according to the following order of priorities:

• · Financial instruments valued based on quoted prices in an active market are recognised in the Quoted prioss category.
• Financial instruments valued substantially based on other observable input and illiquid morigage bonds valued by reference to the value of similar liquid bonds are recognised in the Observable input category.
• · Other financial instruments are recognised in the Non-observable input category. This category covers unlested shares and valuation relies on extrapolation of yeld curves, correlations, or other model incut of material importance to valuation.

3.3) Financial assets designated at fair value adjustments through profit and loss

Financial assets designated at fair value through profit and loss comprise fixed-rate loans, loans capped and shares, including sector shares, which are not a part of the trading portfolio.

The interest rate risk on these loans is eliminated or significantly reduced by entering into interest rate swape. The market value adjustment of these interest rate swaps generates immediate asymmetry in the financial statements if the fixed-rate loans and loans capped were measured at amortised cost. To eliminate the inconsistency recognising the gains and losses on the loans and related swaps the fixed rate loans capped are measured at fair value with value adjustments through profit and loss.

4) Assets under insurance contracts

Assets under insurance contracts comprise reinsurance assets with reduction of debt related to reinsurance. Reinsurance assets are measured by initial recognition at fair value.

5) Holdings in associates

Associated underlakings are businesses, other than group undertakings, in which the Group has holdings and significant influence but not control. The Group generally classifies undertakings as associated undertakings if PF Føroya Banki directly ar indirectly halds 20 - 50% of the vating rights.

Holdings in associated undertakings are recognised at cost at the date of acquisition and are subsequently measured according to the equity method. The proportionals share of the individual associate undertaking is included under "Income from associated undertakings" and based on data from financial statements with balance sheet dates that differ no more than three months from the balance sheet date of the Group,

The proportionate share of the profit and loss on transactions between associated and group undertakings is eliminated.

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Associates with negative net asset values are measured at DKK 0. Any legal or constructive obligation to over the negative balance of the undertakings is receivables from these under-takings are writtendown according to the impairment loss risk.

Profits on divisited associates are calculated as the difference between the selling price and the book value inclusive of any goodwill on the divested holdings. Reserves recognised within equity are reversed and recognised in the income statement.

6) Holdings in subsidiaries

Subsidiaries are recognised according to the equity method in the Financial Statement of the Parent Company. Consequently, the net profit of the Group and the Parent Company are identical. The accounting policy described to the consolidated financial statements is therefore also valid for the parent company.

7) Intangible assets

Intangible assets consist of internally developed software is amortised over its expected useful life, usually four years, according to the straight-line method.

8) Land and buildings

On acquisition land and buildings are recognised at cost. The cost price includes the purchase price and costs directly attributable to the purchase until the date when the asset is ready for use.

8.1) Domicile property

Domicile property is real property occupis administrative degartments, branches and other service units. Real property with both domicile and investments is allocated proportionally to the two calegation if the elements are separately sellable. If that is not the case, such real property is classified as domicle property, unless the Group occupies less than 10% of the total floorage.

Subsequently, domicle property is measured at a revalued amount corresponding to the fair value at the date of the revaluation less depreciation and imparment. The fair value is calculated on the basis of current market data according to an income-based model that includes the property's estimated rental income if rented to a third perty, operating expenses, as well as management and maintenance. Maintenance costs are calculated on the basis of the condition of the individual property, construction year, materials used, etc. Operating expenses are calculated on the basis of a standard budget. The fair value of the property is determined based on the expected cash flow from operations and a rate of return assessed for the individual property. The rate of return is determined on the location of the individual property, potential use, the state of maintenance, quality, etc. Revaluations are made with sufficient regularity to ensure that the carrying amount does not differ materially from the amount which would be determined using fair value at the balance sheet date.

Depreciation is made on a straight-line basis over the expected useful life of 50 years, taking into account the expected residual value at the expiry of the useful life.

At least once a year value adjustments according to revaluations are recognised in other comprehensive income. Depreciation and impairments are recognised in the income statement under the item "Amortisation on fixed assets and impairment charges". Impairments are only recognised in the income statement to the extent that it cannot be offset in former period's revaluations.

8.2) Leased domicile property

A right of use asset and a lease llability is recognised in the balance sheet upon commencement of a lease.

On initial recognition, the right-of-use asset is measured at cost, corresponding to the lease lability, adjusted for prepaid lease payments, plus any initial direct costs and estimated costs for dismantling, removing and restoring, or similər.

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On subsequent recognition, the asset is measured at cost less any accumulated depreciation and impairment. The rightof-use asset is depreciated over the shorter of the lease term and the of the asset. Depreciation charges are recognised in the income statement on a straight-line basis. The lease asset is presented in the balance sheet under the item Domicile property.

9) Other property, plant and equipment

Other property, plant and equipment, vehicles, furniture and leasehold improvements and is measured at cost less depreciation and impairment. Assets are depreciated according to the straight-line method over their expected useful lives, which usually is three to ten years.

Other tangible assets are tested for impairment if inpairment exist. An impaired asset is written down to its recoverable amount, which is the higher of its fair value less costs to sell and its value in use.

10) Assets held for sale

Assets held for sale include property and equipment. Assets held for sale also include assets taken over under non-performing loan agreements. Assets are classified as held for sale when the carrying amount is expected to be recovered principally through a sale transaction within 12 months in accordance with a formal plan rather through confinuing use. Assets or disposal groups heid for sale are measured at the lower of carrying amount and fair value less costs to sell. An asset is not depreciated or amortised from the time when it is classified as held for to sale not expected to be sold within 12 months on an active marked are reclassified to other items.

Assets held for sale are measured at the lower of carrying amount and fair value less costs to sell.

Impairment losses arising immediately before the intisi classification of the asset as held for sale are recognised as impairment losses. Impairment losses arbing at initial classification of the asset as haid for sale and gains or losses at subsequent measurement at the lower of carrying amount and fair value less costs to sell are recognised in the income statement under the items they concern.

11) Other assets

Other assets include interest and commissions due, derivatives with positive value and other amounts due.

3. Balance sheet - Liabilities, provisions and equity

1) Financial instruments - General

Purchases and sales of financial instruments are recognised and measured at their fair value at the settlement date. The fair value is usually the same as the transaction price. Changes in the value of financial instruments are recognised up to the settlement date.

2) Classification

The Group's financial liabilities are at initial recognition divided into the following three categories:

• Due to credit institutions and central banks, issued bonds and deposits measured at amortised cost
• · Trading portfolio measured at fair value
• · Other financial liabilities measured at cost

3) Due to credit institutions and central banks, issued bonds and deposits measured at amortised cost

Infial recognition of amounts due to crecit institutions and central banks, issued bonds and deposits is at fair value not of transaction costs. On the step-up clause date due to credit institutions and due regarding Issued bonds it is the banks policy to repay the debt, thus the step-up will not be effective.

Subsequently they are measured at amortised cost, according to the effective interest method, by which the difference between net proceeds and nominal value is recognised in the income statement under the item "interest expenses" over the loan period.

Confidential, Mikkelsen, Arne, 01-04-2025-14:15:223-cument.

The effective interest rate is calculated on the expected cash flows estimated at inception of the loan. Non closely related embedded derivatives such as certain prepayment and extension options are separated from the loan treated as freestanding derivatives.

4) Trading portfolio measured at fair value

Labilities in the trading portfolio comprise denvalue fair value held by the Group's trading departments. At intial recognition, the trading portfolio is measured at fair value, excluding transaction costs. Subsequently, the portfolio is measured at tair value and the value adjustments are recognised under market value adjustments in the Income Statement within market value adjustments.

5) Determination of fair value

The determination of the fair value is identical with the determination of the fair value of sesses. Please refer to this section under financial assets

6) Liabilities under insurance contracts

Liabilities under insurance consist of provisions for uneamed premiums and claims provisions reduced with receivables from insurance contracts from premiums and claims provisions.

The Group measures liabilities under insurance contracts using the Premium Allocation Approach (PAA).

Premium provisions are calculated according to a best estimate of the sum of expected payments, as a result of insurance events arising after the balance sheet date, that are covered by agreed insurance contracts. Premium provisions include future direct and intirect expenses for administration and caims processing of agreed insurance contracts. A premium provision represents at least the part of the gross premium that corresponds to the part of the coverage period that cornes after the balance sheet date.

Claims provisions are calculated according to a best estimate of the sum of expected payments, as a result of insurance events until the balance sheet date, in addition to the amounts already paid as a result of such events. Claims provisions also include amounts the Group, according to a best estimate, expects to pay as direct and indirect costs in connection with the settlement of the claims liabilities. Furthernore, the item includes provisions on outstanding claims i. e. Risk margin on outstanding claims.

Claims provisions are discounted according to the expected settlement of the provisions on the basis of the discount rate issued by EIOPA (European Insurance and Occupational Pensions Authority).

7) Other liabilities

This Item includes sundry creditors, derivatives with negative market values and other liabilities. Wages and salaries, payroll tax, social security contributions and compensated absences are recognised in the financial year in which the associated service has been rendered by the Group's employees. Costs relating to the Group's long-lem employee benefits are accrued and follow the service rendered by the employees in question.

Pension contributions are paid into the employees' pension plans on a continuing basis and are charged to the income statement.

On initial recognition, lease liabilities are measured at the present value of future lease payments discounted using an incremental borrowing rate. On subsequent recognition, a lease liability is measured at amortised cost. Lease payments include payments during the minimum lease period plus lease payments during extension periods when it is reasonably certain that the option will be exercised. The lease liability is recognised under the item Other liabilities.

8) Provisions

Provisions include provisions for deferred tax. financial guarantees and other provisions for liabilities. Initial recognition of financial guarantees is at fair value which is often equal to the guarantee premium received. Subsequent measurement of financial guarantees is at the higher of the guarantee premium received amortised over the guarantee period and any provisions made for credit losses. Such provisions are determined applying the same approach as for loans issued.

Confidential, Mikkelsen, Arne, 01-04-2025-14:15:02gocument.

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D91C7BB1A06245CEA4F12CA4607C4FFD

A provision for a guarantee or an onerous contract is recognised if claims for payment under the guarantee or contract are probable and the lisbility can be measured reliably. Provisions are based on the management's best estimates of the size of the liabilities. Measurement of provisions includes discounting when significant.

Provisions for financial guarantees are made according to the requirements from IFRS 9.

9) Subordinated debt

Subordinated debt consists of liabilities in the form of subordinated loan capital which in case of the Group's voluntary or compulsory winding-up, will not be repaid until after the claims of its ordinary creditors have been met.

On the date of bornwing Subordinated debt is recognised at the proceeds received less drectly aftributable transaction cost. Subsequently the subordinated debt is measured at amortised cost.

10) Hybrid Capital (AT1 capital)

Additional Tier 1 (AT1) capital issued with a perpetual term and without a contractual obligation to make repayments of principal and pay interest (additional tier 1 capital under CRR) does not fulfill the conditions for being classified as a financial lisbility according to IAS 32. Therefore, any such issue of Additional Tier 1 (AT1) capital is classified as equity.

The net amount at the time of issue is recognised as an increase in equilty. The payment of interest is treated as drivitend and recognised directly in equity at the when the lability anses. Such interest payments are tax deductble and are claimed in the Group's tax statement.

Upon voluntary redemption or buyback of the instruments, shareholders' equily will be reduced by the redemption amount. at the time of redemption. Cost and selling prices on the purchase and sale of Additional Tier 1 (AT1) capital under CRR are recognised directly in equity in the same way as the buying or selling of treasury shares.

11) Own shares

Purchase and sales amounts and dividend regarding holdings of own shares are recognised directly in the equity under the liem "Retained earnings". Profits and losses from sale are not included in the income statement.

12) Dividends

The Board of Directors' proposal for dividends for the year submitted to the general meeting is included as a separate reserve in shareholders' equity. The dividends are recognised as a liability when the general meeting has adopted the proposal.

4. Cash flow statement

The Group prepares its cash flow statement according to the indired method. The statement is based on the pro-tax profit for the year and shows the cash flows from operating, investing and financing activities and the increase in cash and cash equivalents during the year.

Cash and cash equivalents consist of cash in hand and demand deposits with oentral banks and amounts due from creati institutions and central banks with original maturities shorter than three months.

3. Accounting Policies - P/F Føroya Banki

Due to the listing on Copenhagen Stock exchange the bank is required to comply with accounting regulation equivalent. to the executive order on financial reports of credits institutions etc. of the Danish FSA. In 2024 the Danish FSA has considered the Faroese order on financial reparts of credit institutions elc. not to be sufficient equivalent. Therefore the bank compliss both the Danish and the Faroses order on financial reports of credit institutions etc. for 2024. This change has mainly had effect on the Management review with new information related to section 152 (the under-represented gender) and section 154 (data ethics). The valuation principles are identical to the Group's valuation principles under the IFRS Accounting Standards. Investments in subsidianes are recognised using the equity method.

Confidential, Mikkelsen, Arne, 01-04-2025-14:15:02gocument.

D91C7BB1A06245CEA4F12CA4607C4FFD

Note 2

Operating segments

The Group consists of two business units and support functions. The Group's activities are segmented into business units according to legislative requirements and product and service characteristics. The Group's business units are Banking and Non-life insurance.

Banking comprises Porsonal Banking, Personal Banking, Personal Banking comprises private customers in the Faroe Islands and Greenland. Corporate Banking comprises corporate customers mainly in the Farce islands and in Greenland. The corporate segment also comprises a few remaining corporate customers from Denmark.

Non-Iffe insurance comprises the insurance company PJF TRYGD based The Faroe Islands. TRYGD is responsible for the Group's non-life insurance products. TRYGD target personal and corporate customers with a full range of property and casualty products. TRYGO's operations are handled by its own sales team and distributed through Group's banking units.

Other covers expenses for the Group's support functions and the real estate agency P/F Skyn and the life insurance company NordlkLiv. These companies are very small and immaterial in an overall Group context. Overhead Costs are allocated according to resource requirements. Liquidity balances are posted between the segments using an internal required rate of return. Other costs are allocated according to deposit balances in each segment. Other comprises assets not allocated to the business segments i. e. the Groups portfolio of bonds, shares and other assets. Income and expenses related to the mentioned bonds, shares and other assets are included in Other.

All transactions between segments are settled on an arm's-length basis.

Notes - Føroya Banki Group

						Nonde
	Note Operating segments 2024	Insurance Elimination Banking						Group
2	DKK 1,000	Personal	Corporate	Other	Total	Farce Blands		Total
	External interest income, Not	152,561	207,100	82,589	442,250	0		442,250
	Property of Animan of	41,623	-55.173	-6,520
	Nat Interest income	214,254	151,927	76,070	442,251	0		442,251
	Nat dividends and fee income	79,349	22.168	257	101,770	0	-11.022	90,745
	Not insurance result	0		10,576	10,576	23,303	13,866	47,747
	Other income	4 215	7.400	48,652	60.690	0	-1.014	50,646
	Total income	297,876	181,594	138,787	616,257	23,302	1,833	640,393
	Total operating expenses	84,110	20.121	151,965	256,403	0	2.546	258,990
	of relieft decrees and and annon annontrassion	8,320	1.276	-5.14	9,099	p		9,090
	Profit before impairment charges on loans	213,766	161,266	-16,178	358,854	23,302	-783	381,403
	Impairment charges	-8,702	9.975	-2,345	-1,072	0		-1,072
	Profil before lan	222,468	151,291	=13,833	388,926	23,302		382,475
	Total nances	4,255,292	4,049,966		5,138,098 14,243,956	269,524		14,513,400
	of notion Loass and asyances	4,373,075	4,713,317		8,006,392			0.086.392
	Total Rabfiltion	6,211,919	1.782.785		2,251,574 12,266,278	171,965		12,437,443
	of noich Disposits	6,231,919	3,782,786		N. 014 704		=11.356	TO.003.348
	or antich kususton kabilitas			2.640		155,795		150,445

Operating segments 2023		Barking				Insurance Elimination	Carolup
DKK 1,000	Personal	Corporate	Other	Total	2004 Nanda		Total
External interest income, Not	155,163	200,784	63,604	419,481	0		419,481
INVENTION ANDRANSE	62,681	66.860	3,279	0			0
Nat Interest income	207,744	164.934	66,783	419,461	D		419,661
Nat dividenda and fee income	73,176	24,382	737	96,297	1	-10,504	87,795
Nat Insurance result	0		5,964	5,964	26,699	13.303	45,925
Other rearly	48.644	3.200	48,100	70.024	0	-1.014	00010
Total income	299,563	172,517	121,099	583,746	26,659	1.788	622,192
Total operating expenses	77,474	19,482	153,398	250,364	0	2,541	252,905
restant depreciation and anortrastrumblantian	6.627	1,055	-255	7,428	p		7,428
Profit before impairment charges on loans	222,090	153,025	-31,733	343,302	26,659	-253	369,207
Imparmant charges	2,015	-248	-11,809	-10,043	0		-10,043
Profit before tax	220,075	153.273	-19,924	353,424	26.650		379,330
Total sames	3,979,746	4,961,560	3,745,506	12,706,813	236,022		12,944,835
of noion Loass and askances	4.067.629	4.815.326		8.882.855			9.885.959
Total Rablikes	5,761,137	2,940,449	2,044,267	10.793,053	140,840		10,942,693
of notich Dapouris	5,761,137	2.949.440		& 709,586		-7.394	8,702,192
of phich humance liablikes			4.215		135,480		139,679

Confidential, Mikkelsen, Arne, 01-04-2025 14:15:230sument.

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Nete 2 DRK 1,000	Total income		Non current assets		Additions to tangible 365 6000		Additions to intangible assets
[confd] Geografical segments	2024	2023	2024	2023	2024	2023	2024	2023
Faree Ribress	517 116	492.739	115.700	115,360	1.614	9,445	3,382	-701
Denmark	0	4.190	0	0	0	0	0	0
Greenland	122,578	125,264	34.756	37,346	-2.173	113	0	0
Total	640,193	622.192	150,464	152,706	-558	9.558	3.332	-701

Føroya Banki Group - Geografical revenue information

		imparments	Investment portfolio earning a
Geografical segments	2024	2013	2024	20123
Farce Blarges	11,636	20278	49.952	59,716
Denmark	0	10,339	0	0
Greenand	=10.563	-20 634	0	0
Total	1,072	10.043	49.952	59.716

Income from external customers are divited into activities related to the customers's domiclies. Assets include all non-current assets, i.a. intangible assets, material assets, investment properties and holdings in associates.

	Total income	Profit before tax		Tall		FTE
Operational segments	2024	2023	2024	2023	2024	2023	2024	2023
Farce Islands, Banking, Other	470,069	4-96 013	2007 129	200.054	50 191	57,361	166	166
Farce Islands, Insurance	47,747	45,925	47,747	45,926	4,125	4,847	23	23
Danmark, Banking	0	4.190	0	15.004	0	315	0	0
Greenland, Banking	122,578	125,264	66. 800	37,547	17.255	9,273	18	18
Total	G40.193	622.192	102.677	379,330	72 049	71,796	207	207

The geographical distribution of the Group's income and assess must be disclosed in accordance with FRS and does not reflect the managements of the Group though the financial development in Greenland and Farce Islands are measured separately. Management assesses that the operating segments provide a more meaningful description of the Group's activities.

The seal is a guarantee for the authenticity Confidential, Mikkelsen, Arne, 01-04-2025 14:15:22goument.

Faroya Banki Group
Note DRX 1.000	Interest 1164016	morest 0 20000000	More 100000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000	Market value adjustment	Di-44466	Total
Not income, financial instruments 2024
Pleancial instruments at amortised cont	588,141	186.307	401,834			401,834
Financial instruments at fuir value:
Held for trading	12.415	0	12.415	53.516	11,997	77,920
Loans and Advances Designated*1	11,812	ੀ	11,613	7,463	0	19.375
Derivalives.	10,090		16,090	=15,636		464
Pinancial instruments of for value total	40,417	100	40.417	48.343	11,067	97,756
Total net income from financial instruments	628,559	486,307	442,251	45,343	11,997	409,500
Nat income, financial instruments 2023
Reancial instruments at amortised cost	482,451	101.362	381,089			381,009
Financial instruments at fiarr value:
Hald for trading	12.853	0	12.663	61.616	6.115	81.795
Loans and Advances Designated14	90.229	0	10.209	16.326	0	26.626
Corivadores	15.210		15.210	-23.538		-4.315
Rhancial instruments at fair value Total	38.373	0	38.373	54.614	6,115	92.101
Total net income from financial instruments	620,824	101,362	419,461	64.614	8,115	480.191

Interest income recognised on impaired financial assets arrounts to DKX 4.2m (202): DVK 2.9m)

2 hit plintes recognized on loans and advances designited anount to DRC 19.4m (302) DKK 26.9m). Of intel (202) DVG

8 = Total value adjustments according to FPGS 7 on derivalives, amount to DRK-0.9m(2023 DKK-0.3m)
4 = Value adjustinents due to change in credit risk answitte DKK-0.8m (2023

Poste	DASK 1,000	Group		P.F Faraya Bankil
		2024	2023	2024	2023
4	Interest income and promisims on forwards
	Credit institutions and central banks	80,591	44,791	80,591	44,791
	Loans and advances	514,493	443,0996	514,494	443,097
	BONDE	12,415	12/923	12,415	12/823
	Total derivatives of which:	16,020	15,210	16,020	15,210
	interest rate contracts	16,114	14,520	16,114	14,520
	Other interest inconta	4,999	4,064	4,997	4,054
	Total Interest Income	628,599	620,824	628,599	620,824
5	Interest expenses
	Credit institutions and central banks	31,054	30,303	31,054	30,303
	Deposite	66,523	30,335	66,523	30,135
	BERGEN BERLIERS	56,370	26,230	56,370	26,230
	Subardinated debt	3,131	3,167	3,131	3,167
	Louis a hacellities	2,019	2,050	2,000	2,050
	Other interest expension	-1,846	-122	-1,849	-122
	Total Interest expensios	186,307	101,362	188,397	101,362
6	Nat fee and commission income
	Fee and connission income
	Securities trading and custody accounts	13,659	11,169	13,659	11,102
	Payment services fees	21,761	21,785	21,761	21,786
	Louin connissions	4,816	4,785	4,876	4,785
	Quartines commissions	21,802	26,447	21,802	26,447
	Other Tees and commosions	23,629	23,379	34,551	33,890
	Total fee and commission income	85,627	87,597	66,649	66,083
	Fee and commissions paid
	Securities trading and custody accounts	6.075	5.836	6.475	5.446
	Not fee and commission income	78,752	81,650	89,774	92,181
T	Not in't lies un ance result
	Nat insurance result, non-life insurance
	Insurance revenue	174,910	163,168
	Insurance service expenses	143,161	123,995
	Net return on investments backing insurance liabilities	10,532	7,817
	Net finanse income or expense from insurance	322	-003
	Other expenses	5,940	5,952
	Not insurance result, non-life insurance	36,665	30,455

Note	DKK 1,000	Group			P.F Faroya Banki
J		2024	2023	2024	2023
(canfd)	Net insurance result, line insurance	21,780	21,640
	Insurance Revorius	12,099	17,104
	Insurance service expenses	2,169	1,926
	Not insurance result, life insurance	11,053	6,471
	Not insurance result	47,747	45,925
B	Market value adjustments
	Loans and advances	7,463	16,320	7,463	16,320
	Bords	32,174	42,920	32,174	42,990
	8 Parios	10,938	9,792	10,938	9,792
	Foreign-eachange	10,404	8,033	10,404	0,033
	Total chirivatives of which	-15,636	-23,528	-15,636	-23,528
	Currency contracts	(334	3.147	(334	8.147
	Interest System	-16,570	-26,675	-16,570	-36,675
	Other Obligations	0	0	0	0
	Assets linked to pooled schemes	8.664	3,273	8,064	3,273
	Deposita in pocied scharres	-8,664	-3,273	-8,664	-3,273
	Total morket walle adjustments	48,343	64,614	48,343	64,614
0	Other operating Income
	Profit on sale of operating equipment	636	117	1201	117
	Other incorne	8,027	8,172	2	65
	Operation of properties:
	Rental inconta	961	1,005	1,975	2,019
	Operating experises	0	0	0	0
	Total other operating income	9,694	9,294	2,614	2,201

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Poste	DRX 1.000	Group		P.F Faraya Bankil
		2024	2023	2024	2023
10	Staff costs and administrative expenses
	SUAT COSTS:
	SANNAS	127,194	127,091	109,131	111,005
	Persiona	16,250	17,000	15,717	15,426
	Social security experies:	16,715	16,934	16,627	16,764
	Total staff costs	164,219	164,433	141,476	143,276
	Administrative expensios:
	ா	63,621	60,049	66,299	64.479
	Marketing ets	12,623	8,8339	11,176	7,231
	Foucation etc.	3,550	2,032	2,599	2,213
	Other expenses	37,279	30,179	27,924	27,750
	Total administrative expenses	117,082	110,027	97,224	21,691
	Total staff costs	164,219	164,433	141,476	143,276
	Total commistrative expenses	117,082	110,897	97,994	91,631
	Staff and administrative costs incl. under The forl."Thurance service expenses"	12.833	+31,0990	0	0
	Total employee costs and administrative expenses	248,369	243,670	238,470	234,959
	Staff costs and administrative expenses for Trygd and NordRLV, are included in the accounting the "itsurance service espenses". Severence pay in 2004 w ene DRC 2.6m (2023). DKK 9mg
	Number of employees
	Average number of full-firne employees in the period	200	205	1777	174
	Excutive remuneration "):
	Board of Directors	2,400	2,7280	2,400	2,220
	Booutive beard		9,092		9,092
	Cahar 000 cultures	9,013	7,849	9,013	7,849

The number of shares in P.F Feeya Banki held by the Board of Directors and the Executive Board at the end of 2024 totalled 127,048 and 6,135 respectively (end of 2023; 6,918 and 6,135).

Remuneration of the Board of Directors and the Execulive board consists of a fixed. monthly salary. Remuneration to the Executive board includes severance pay in 2023. to hero members of the executive board totalling DNK 5m.

The Board of Directors totals 12 persons during 2024 (2023: 10 persons). The Executive board totals 1 person during 2024 (2023: 3 persons)

Other esse utives totals 6 persons during 2024 (2023: 11 persons)

Remuneration of Other executives consists of a fixed monthly salary.

") Detailed information of the remuneration of The Board of Directors, The Executive board and Other executives can be found on the Bank's website www.foroyabanki.com.ler as no individual remaneration is allowed to be presented in the annual report.

Confidential, Mikkelsen, Arne, 01-04-2025 14:15:22gocument.

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		Group		P.F Faroya Banki
Norto
	Audit fees
11	Fees to audit firms elected at the general meeting	1,500	1,600	1,234	1,169
	Total audit feas	1,555	1,599	1,234	1,159
	Total feas to the audit firms elected at the general meeting
	break clown as follows:
	Statutory and It	1,345	1,320	1,054	916
	· of Mhich Pricewated: puse Coopers	878	1930	741	653
	- Of INTECH JANNAR	457	420	313	242
	Other assurance engagements	75	114	44	85
	shopportunition in the propers. contain to -	44	89	44	35
	I ST WICA JEOLOW	39	28	0	0
	Tax and VAT ackica	43	158	43	154
	- of which Phosperson touring on Annual	43	779	43	77.9
	· af which Japuar	0	39	0	.19
	Offer services	24	4	24	0
	· STWVCR PY/C6WBforTicussic Coopers	0	0	0	0
	· of which Japure	24	-4	24	್ತಾ
	Total fees to the audit firms elected at the general meeting	1,555	1,595	1,234	1,159
	Other assurance engagements are parformed by PricewaterhouseCoopers and Januar. These engagements comprise other statements required by law such as Mild and MitiO.
	Tax and VAT advice are parformed by PricewaterhouseCoopers. The advice refers lo payroll tio and income lax report.
	Other seneces are performed by Januar. These services refer to advisory servests and riskassesment of the Banks internal produktion at IT-sclubors.
	Other operating expenses
12	The Guarantee Fund for Depositors and Investors	1.531	1,007	1.531	1,807
	Total operating expenses	1,531	1,807	1,531	1,807

	Group		P.F Foroya Banki
DKK 1,000	2024	2023	2024	2023
Impairment charges on loans and advances and provisions for guarantoos etc.
Impairment charges and provisions at 1 January	182,751	185.981	162,751	185,981
New and increased impairment charges and provisions.	110,690	107,069	110,680	107,069
Reversals of impairment charges and provisions	105,504	108.941	105,504	108,941
William-off, presiously impaired	8,049	1.866	8,046	1,3549
Interest income on impelied loans	4,202	2.061	4.200	2.061
Total impairment charges and provisions at 31 December	179,001	102.751	179,081	102,751
Impairment charges and provisions recognised in the income statement
Loans and advances at ansortised cost	-1,420	-10.262	-1,420	-10,202
Loans and advances at tair natue	2,939	380	2,996	389
Guarantices and loan commitments	2,0449	-149	-2,949	-149
Assets held for sale	0	0	0	0
Total individual impairment charges and provisions	-1,072	-10.043	-1,072	-10,043
Stage 1 impairment charges
Stage 1 impairment charges etc. at 1 January	76,219	43,128	76,219	43,128
New and increased Stage 1 impairment charges	58,444	23,062	58,444	53,062
Reversals, net of Stage 1 impairment chargest	55,699	19.991	55,690	19,991
Stage 1 impairment charges at 31 December	78,972	76.219	78,972	74,219
Total net impact recognised in the income statement	2,754	33,091	2.754	32,091
Stage 2 impairment charges
Stage 2 impairment charges etc. at 1 January	38,199	32,636	38,196	32,635
New and increased impairment charges	19,522	32,629	19,522	32,629
Reversals, ret of impairment charges	25,148	26,068	25,148	26,968
Stage 2 imparment charges at 31 December	32,571	38.196	32,571	38,196
Total not inspect recognised in the insome statement	-6,628	5,667	-6.620	5.667
Weak Stage 2
Weak Stage 2 impairmont charges etc. at 1 January	7,278	25,792	7.278	25,792
New and increased impairment charges	4,664	4,364	4,664	4.384
Reversals, net of impairment charges	5,511	22,090	5,511	22,090
Weak Stage 2 impairment charges at 31 December	6,331	7,276	1231	7,278
Total net respect recognised in the income statement	-247	-18.519	-047	-18.519

Confidential, Mikkelsen, Arne, 01-04-2025 14:15:230×ument.

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			Group	P.F Foroya Banki
	DKK 1,000	2024	2023	2024	2075
Note	Stage 3 impairment charges
	Stage 3 impairment charges etc. at 1 January	56,854	00.172	56,854	00.172
	[cont'd] New and increased impairment charges	26,003	13.400	26,003	13,400
	Maversals of impairment charges	15,159	39,368	15,159	35,368
	William-off, presiously impaired	8,049	1.366	8,046	1,368
	With of s charged stirectly to the income statement	339	36	336	ੰਸੇ
	Received on claims previously within of	2,300	5.347	2,386	5,347
	stand breating to the permanel from storesto	4,200	2 661	4,200	2,661
	Stage 3 impairment charges at 31 December	60,452	56.854	60,452	56,854
	Total not inspect recognised in the insome statesvere	6.396	-30.131	6,390	-32.131
	Purchased credit-impaired assets included in stage 3 above
	Purchased credit-impaired assets at 1 January	1,341	10.722	1,341	10,722
	Reversals of impairment charges	245	9,381	246	9,381
	Purchased credit-impaired assets at 31 December	1,096	1.341	1,096	1,341
	Provisions for guarantees and undrawn credit lines
	Individual provisions at 1 January	4,204	4,353	4,204	4,353
	New and increased provisions	1,347	3 EEB	1,347	3. Externa
	Reversals of provisions	3,935	3,715	3,996	3,715
	Provisions for guarantees etc at 31 December	1,555	4,204	1,555	4,204
	Total net impact recognised in the increase atusiness to	-2,649	-149	-2,649	-149
	Provisions for guarantees and undrawn credit lines
	Stage 1 provisions	721	602	721	602
	Stage 2 provisions	270	2.632	270	2,632
	Weak Stage 2 provisions	0	0	0	0
	Stage 3 provisions	505	UO	545	000
	Provisions for researcessor at 34 Паслеевъ	이 리세티	4 704	4 440	4.704

Credit risk management

The Bank manages credit risk in connection with the establishment of new exposures by making certain requirements in respect of the customer's ability to service loans, its general credit quality and by securing collateral in the assets) for which a customer seeks financing. In addition, the Bank has defined specific geographical areas in which it wishes to provide financing and a maximum of its aggregate exposures to be allocated to corporate customers. As for exposures to corporate customers, the Bank has established maximum imits for the size of the aggregate exposure to each individual industry.

Credit risk movements are measured based on the Bank's behavioural credit score model for personal and and and and and corporate customers and, as regards larger corporate customers, its accounting-based credit score model, both of which gauge and indicate the probability of default of each individual exposure in the next 12-month period.

The behavioural creat score model for personal and small corporate customers primarily use the following parameters, which are updated monthly:

• · Gearing (total debt over total assets)
• · Developments in the size and duration of overdrafts and arrears
• · Average balances and credit transaction accounts, typically payroll and operating accounts
• . Developments in debt
• . Average liquid assets
• . Changes in publicly available cyclical indicators

The accounting-based credit score model for larger corporate customers primarily use the following parameters, which are updated on a annual or monthly basis:

• · Development in certain predefined key ratios and metrics calculated based on the customer's most recent. publicly available annual accounts
• Developments in the size and duration of overdrafts and arrears
• · Changes in publicly available cyclical indicators

New customers, both personal and corporate, are categorised in accordance with the risk classification system provided by the Danish FSA. The system is beed on traditional credit assessment indicators such as wealth, income, disposable income, etc. for personal customers and leverage, liquidity, solvency, etc. for curporate customers' rak classilication is then converted into a probability of default. After a period of 6-12 months, the creat scoring model described above will start assessing the customer's credit worthiness. As per the Group's risk classification system, customers are assigned a credit score on a scale from 1-11. A score of 1 is given to customers with the lowest PD values and a score of 11 is given to customers in default.

As regards retail customers and small business customers, developments in credit risks for existing exposures are montored based on a behavioural credit scoring model that, on a monthly basis, calculates and assigns to each exposure a behavioural score expressing the probability of default of each relevant customer within the next 12-month period. See the section "Changes to credit risks" below. Based on developments in the behavioural credit score, a number of signals are generated to the relationship manager, the credit department and the credit controllers. In case an adverse development is identified, the relationship manager must take action vis-a-vis the customer concerned. For large corporate customers, an accounting-based credit score is calculated monthly, however primarily based on developments in the corporate customer's financial situation, as reported in the customer's annual financial statements, adjusted for monthly developments in the customer's overdrafts and arrears, if any, as well as publicly available cyclical indicators. Based on the calculated accounting-based credit score and information otherwise available regarding large corporate customers, the Bank reviews the exposure at least once a year to establish whother or not to continue the exposure, including the terms for continuing or discontinuing the exposure.

Confidential, Mikkelsen, Arne, 01-04-2025 14:15:02gocument.

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D91C7BB1A06245CEA4F12CA4607C4FF0

In order to support the credit management effort, default signals are generated on a daily basis to the customer actriser and, based on cetain thresholds, also to the credit controllers. Furthermore, various reports on credit risks, at both customer and portfolio lievel, are prepared and distributed on a monthly and quarterly basis.

Further, and as part of the quarterly impairment test all large exposures increased more than certain thresholds amounts and other exposures chosen against other are reviewed not only to delemine the need for impairment, but also to determine whether the assioned risk classification is correct and whether risk miligating actions must be laken. The bank also aims to obtain and review periodic accounts from its corporate customers as part of its ongoing credit risk management.

To ensure compliance with the Bank's defined requirements in respect of a customer's ability to service a loan and its general credit quality as well as the requirement for security, the Bank uses a crecit granting hierarchy according to which only customers deemed highly able to service their loans and demonstrating a high credit guality may be granted loans in the Bank's retail and commercial barking departments, whereas all other exposures, including expoures to all new corporate customers, must be recommended and granted either by the Bank's credit department, the credit committee or, as regards the largest exposures, by the Bank's Board of Directors.

To balance future earnings with the credit risks and ensure that the Bank's profitability targets are met, an expected riskadjusted return is calculated for each customer relationship at the time of establishing an exposure. Any deviation from the Bank's predefined profitability targets must be approved by a member of the Bank's Executive Management.

Changes to credit risks

To ensure that sufficient and timely impairment charges and provisions are recognised to over expected credit losses on the Bank's exposures which, on intilial recognition, are measured at amorfised cost or fair value and on financial guarantees and loan commitments in the credit risk relating to all these exposures are monitored on a monthly and quarterly basis.

Credit risk morements are measured on the Bank's behavioural credit score model and, as regards to large corporate customers, its accounting-based credit score model.

Based on the estimated probability of default in the next 12-month period, each exposure is placed in one of three stages: Stage 1 reflects that no significant incredit risk has been identified, stage 2 reflects a significant increase in credit risk and stage 3 reflects credit-impairment of the exposures are placed in either stage 1 or stage 2 on the basis of their estimated probability of default, meaning that all exposures are initially placed in stage 1, while the following scenarios require a stage 2 classification as a minimum:

• · A 100% increase in the probability of delault for the expected remaining term to maturity and a 0.5 percentage point increase when the probability of default was below 1% on initial recognition.
• · A 100% increase in the probability of default for the expected term to maturity or a 2.0 percentage point increase when the probability of default was 1% or higher on initial recognition.

Stage 3 classifications are for pre-selected exposures for which an individual review has revealed indications of an increased risk of impairnent. In such reviews, the following events are generally deemed to reflect impairment of an exposure:

• · Significant financial difficulty of the borrower
• · Breach of contract by the borrower, such as a default or past due event
• · The Bank or other lenders granting concessions to the borrower for reasons relating to the borrower's financial difficulty that the Bank or lenders would not otherwise consider
• · The borrower is likely to enter bankruptcy or become subject to other financial recomstruction
• · Disappearance of an active market for that financial asset because of financial difficulties
• · Purchase or origination of a financial asset at a deep discount that reflects the incurred credit losses.

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71

D91C7BB1A06245CEA4F12CA4607C4FF0

Calculation of the expected credit loss (need for impairment write-down or provisioning)

For exposures categorised as stage 1 or stage 2, the expected credit loss (ECL) is calculated as a function of the probability of default (PD) * the expected exposure at default (EAD) * the expected loss given default (LGD). Where the PD for exposures in stage 1 reflects the probability of default in the next 12-month period (PD12), the probability of delault over the entire life of the exposure is applied to exposures placed in stage 2 (PDLife).

As regards the portion of stage 2 exposures consisting of the workest exposures, the largest of these are reviewed individually, and the average impairment ratio calculated for these exposures is used to inform the expected credit loss for the weakest of the stage 2 exposures not individually reviewed.

As regards exposures in stage 3, the expected credit loss is calculated individually.

PD12 is calculated based on the Bank is behavioural credit soore methodology for exposures to retail customers and small business customers, whereas the Bank's accounting-based credit score model is applied to the Bank's exposures to large corporate customers.

PDLife is calculated based on PD12, but is adjusted for any identified annual migrations between various flowed PD12 stages. Furthermore, the calculated PDLife is adjusted for changes in a number of forward-looking factors, which as regards the Bank's Danish and Greenlandic exposures are based on information from, e.g., the Darish central Bank and the Danish Economic Council, whereas factors of relevance to Farnese exposures are based on the current impairment ratio relative to a historical average impairment ratio.

EAD is calculated as the actual amount of exposure with due consideration for non-executed loan commitments and unutlised, executed loan commitments as well as any guarantees provided, which factors are calculated as a function of predetermined coefficients.

LGD is calculated as the ratio between the historically identified loss rate for the exposures that are not secured.

The expected useful Ifte of an exposure is calculated as the expected maturity of the exposure in question.

All significant variables and calculations made are validated at least annually, primarly based on sample testing and, for model-based variables, supplemented by back-testing and the use of statistical targets for explanatory values.

As the expected credit loss, especially for exposures categorised as stage 1 or 2, primarily are based on historical information, the Executive Management and the Board of Directors may add a discretionary increase in impairments to cover credit losses expected not to be covered by the calculations described above, e.g. due to an expected or emerging economic crises in one or more sectors and/or in one or more geographic locations.

Since calculations and discretionary management estimates are made in all stages of an expected credit loss, i.e. expectations as to the future, all statements and calculations reflect the Bank's best estimates and assessments as to future events. These estimates and assessments may therefore result in the calculation of a higher or lower credit loss than the credit losses actually incurred.

Management applied judgements

Management applies judgement when determining the need for post-model adjustments. At the end of 2024, the postmodel adjustments amounted to DKK 101.5m (2023: DKK 100m). The post-model adjustments fall into two categories.

Category 1 relates to expected losses, which are difficult to a changing world. The reasoning behind the posi-model adjustments in this category in 2024 were based on a variety of factors such as cyber threats to Faroese and Greenlandic customers and infrastructure, geopolitical unostainty more broady, higher interest rate invels than in previous years, uncertaintles regarding the real estate market in Greenland and unoertainly in certain Faroese business sectors. For each of the factors, the bank's assessment is that the forward-looking risks associated with each are not covered by the model output. The management provision for category 1 is DKK 86.5m.

Confidential, Mikkelsen, Arne, 01-04-2025-14:15:02gocument.

D91C7BB1A06245CEA4F12CA4607C4FF0

Category 2 includes management provision due to errors and omissions in the calculation of expected losses. The bank acknowledges that factors such as insufficient registration of defaults, lack of follow-up on customers in financial difficulty, errors in impairment methodology or calculations as well as errors in the registration of collateral values can result in the bank's calculated impairments being underestimated. The management provision for category 2 is DKK 15m.

In determining the need and extent of a management judgement related to the factors laid out above, the Bank has, as both the Faroese and Greenlandic economies are small and open, based its judgement on a general detoriation of the credit quality throughout all sectors and segments with additional add-ons on property and tourism related segments.

In note 49 (Risk Management) information on the spill of the management of DKK 101.5m between the stages and between Corporate and Personal is included.

D91C7BB1A06245CEA4F12CA4607C4FF0

Note DKKin

13	31 Dec. 2024		Gross Exposure			Expected Credit Loss			Net Exposure		Net Exposure Deducted	Collateral
(control)	Stage	1	2	3	1	2	3	11	2	3	1	2	1
	Public authorities	1,221	1	0	1	0	0	1,220	0	0	1,052	0	0
	Corporate sector Fisheries, agriculture, hunling and
	forestry	454	232	24	11	0	11	443	232	15	7	1	2
	Industry and raw material extraction	479	તેની	37	5	0	2	414	નેન	રેક્કે	166	2	27
	Ernergy supply	431	0	0	6	0	0	425	0	0	288	0	0
	Building and construction	-233	70	17	5	7	0	483	62	17	246	19	1
	Track	419	60	28	6	3	0	413	-48	28	148	6	1
	Transport, hotels and restaurants.	718	24	165	8	1	1	715	23	164	285	2	28
	information and communications	7	0	2	D	0	1		0	1	3	D	0
	Financing and insurance	97	4	1	1	0	1	97	14	0	51	D	0
	Real property	1,399	49	219	30	5	27	1,339	44	192	271	4	0
	Other including	147	179	4	0	5	2	1-20	174	2	44	104	1
	Total corporate sector	4,607	663	499	66	22	45	4,642	641	453	1,643	136	48
	Retail customers	4,213	537	228	11	18	16	4,207	620	212	491	56	21
	Total	10,046	1,200	727	78	39	61	9,968	1,961	(16)	3,046	162	63
	Credit instrutions and central banks	3,107		0	2	0	a	3,167	0	0	3,967	D	0
	Total	13,215	1,200	727	80	31	61	13,136	1,964	665	6,213	192	67
	Farne Mands	11,289	884	457	49	23	22	11.237	871	435	5,403	64	29
	Grandend	1,930	306	270	31	16	39	1,899	289	231	810	138	40
	Total	13.216	1,200	727	80	39	61	13,136	1,061	First	6,213	192	69

1) Gross exposure comprises of loans and advances, quarantees and drawing rights.

Net exposure 2026 vs. balance sheet
Credit institutions and central banks	3,007
Loans and advances	9,084
Guarantees	775
Unused credit facilities	2,093
Net exposure, total	14,962

Note DKKm

											Net Exposure Deducted
13	31 Dec. 2023		Gross Exposure			Expected Credit Loss			Not Exposure			Collateral
(D)JUDGE	81200	1	2	3	1	2	3	1	2	3	T	2
	Public authorities	1,128			1			1,127			1,136
	Corporate sector.
	Fisheries, agriculture, hunling and
	forestry.	945	154	25	12	1	11	200	153	14	164	4	1
	Industry and raw material extraction.	203	35	24	N	T	0	201	37	25	47	2	12
	Energy supply	474	0		11	0		463	0		403	D
	Building and construction	451	84	25	13	11	0	449	73	19	216	28	7
	Track	447	ની વ	2	8	1	0	441	63	2	100	8	1
	Transport, hotels and restaurants	352	405	37	2	1,19	0	350	400	77	50	02	14
	Information and communications	5	2	1	D	0	11	5	2	1	1	D	1
	Financing and insurance	83	29	1	1	0	1	82	21	0	41	1	0
	Real property	1,537	71	100	28	3	9	1,510	00	21	176	D	10
	Other including	201	123	12	D	C	2	205	187	प	119	114
	Total corporate sector	4,705	1,034	235	65	27	35	4,640	1,007	199	1,326	243	47
	Retail customers	4,034	440	238	0	21	21	3,995	639	216	477	80	15
	Total	9,837	1,694	473	78	48	િત્તે	9.762	1,646	415	2,939	323	43
	Credit instrutions and central burnis-	2,092	0		1	0		2,090	4		2,150	D
	Teent	11,929	1,684	473	77	41	58	11,952	1,646	415	5,009	323	43
	OWITOR	-4	0	1	D	Co	2	-1	0	-1	-	0	0
	Farce Islands	9,785	1,248	242	57	24	23	9,729	1,223	260	4,198	55	15
	Greanlarid	2.140	446	190	20	24	33	2.120	423	156	887	258	47
	Total	11,929	1,094	473	77	48	55	11,852	1,646	415	5,089	323	63

1) Cross exposure comprises of loans and sidvances, quarantees and drawing rights.

Net exposure 2023 vs. balance sheet
Credit institutions and central banks	2.056
Loans and advances	6,883.
Guarantees	1,020
Unused credit facilities	1,954
Net exposure, total	13,913

						Expected Credit					Net Exposure Deducted
13	31 Dec. 2024	Gross Exposure			LOSS				Nat Exposure			Collateral
(court d)	Stage	1	2	3	1	2	3	1	2	3	1	2	3
	Rating category
	1	4,813	0		B	0		4,004	0		4.185	0
	2	2.196	0		9			600CZ	0		819
	3	1,830	52		13	1		1,817	51		328	5
	4	1,443	11		3	0		1,441	11		335	1
	5	1,278	100		18	1		1,261	ପ୍ରସ		134	10
	6	864	239		22	5		842	233		192	104
	7	253	297		2	12		251	285		33	47
	1	271	171		1	A		270	163		183	ਉ
	0	51	్రదే		1	6		49	88		3	11
	10	14	238		2	B		12	230		1	5
	11			727	0		61			BBB			80
	1000	13.916	1 200	797	RO	14	में भी में भी में भी में भी में भी में भी में भी में भी में भी में भी में भी होगी। प्र	13.136	1 161	GAR	6 212	499	64

1) Gross exposure comprises of loans and advances, guarantees and drawing rights.

Nato

DKKm

					Expected Credit					Net Exposure Deducted
31 Dec. 2023		Gross Exposure			LOSS			Net Exposure			Collateral
Stage	1	2	3	1	2	3	1	2	3	1	2	3
Rating category
1	3.741			3			3.738			3,294
2	1,800	0		6			1,003	0		455
3	1,576	83		11	1		1,566	82		339	d
4	1,558	3		8	0		1,550	3		176	2
5	1,355	163		18	0		1.336	183		185	8
6	1,389	266		23	5		1,366	261		603	119
7	292	333		1	7		291	326		24	41
0	182	563		6	22		176	్ చేశాన్ని		12	135
9	15	108		0	5		15	104		1	B
10	13	174		1	8		12	168		0	6
11			473			ક્ષ			415			63
Total	11,929	1,694	473	77	48	ਦੇ 8	11,852	1,646	415	5,089	323	63

1) Gross exposure comprises of loans and advances, guarantees and drawing rights.

76

Note	DKKm	Stage 1	Stage 2	Stage 3	Total
	Impairment charges at 1. January 2024	77	48	28	183
(cont'd)	Transferred to stage 1 during the period	20	-14	-6	0
	Transferred to stage 2 during the period	-2	2	0	0
	Transferred to stage 3 during the period	-8	-5	11	0
	ECL on new assets	19	7	0	26
	ECL on assets derecognised	-19	-1	- a	-33
	Impact of net remeasurement of ECL	-10	6	16	12
	Write offs	0	0	- A	-8
	Impairment charges at 31. December 2024	80	39	61	180
	DKKm	Stage 1	Stage 2	Stage 3	Total
	Gross carrying amount at 1. January 2024	11,929	1,694	473	14,096
	Transferred to stage 1 during the period	715	-663	-51	0
	Transferred to stage 2 during the period	-468	489	-21	0
	Transferred to stage 3 during the period	-258	-164	423	0
	New assets	2,134	81	11	2.227
	Assets derecognised	-1,300	-146	-27	-1,472
	Other changes	463	-90	-82	291
	Gross carrying amount at 31. December 2024	13,215	1,200	727	15,142
	DKKm	Stage 1	Stage 2	Stage J	Total
	Impairment charges at 1. January 2023	45	60	81	186
	Transferred to stage 1 during the period	20	-19	-1	0
	Transferred to stage 2 during the period	-3	3	0	0
	Transferred to stage 3 during the period	-1	-6	7	0
	ECL on new assets	12	11	0	23
	ECL on assets derecognised	-5	-3	-25	-33
	Impact of net remeasurement of ECL	9	3	-4	8
	Write offs	0	0	-1	-1
	Impairment charges at 31. December 2023	77	48	58	183
	DKKrtt	Stage 1	Stage 2	Stage 3	Total
	Gross carrying amount at 1. January 2023	11,663	1,733	416	13.812
	Transferred to stage 1 during the period	626	-612	-14	0
	Transferred to stage 2 during the period	-544	548	-4	0
	Transferred to stage 3 during the period	-14	-60	144	0
	New assets	2,098	275	11	2.384
	Assets derecognised	-1,826	-150	-42	-2.017
	Other changes	-4	-39	-39	-83
	Gross carrying amount at 31. December 2023	11,929	1,694	473	14,096

Confidential, Mikkelsen, Arne, 01-04-2025 14:15:236cument.

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	DRX 1,000	Group			P.F Faroya Banki
Pate		2024	2023	2024	2023
	TIE
44	Tax on profit for the year	72,049	71,797	65.031	15.031
	Total tax	72,049	71,797	65,891	65,633
	Tax on profit for the year
	Profit before lan	382,475	279,330	376,317	373,232
	Canners tax of corpor	73,403	71,785	67,701	66,746
	Change in deferred tax	=1,354	-823	=1,810	-331
	Adjustment of prior-year tax changes	0	834	0	િતેના
	Total	72,049	71,797	65,091	65,690
	Offective tax rate
	Processo fall case. Pate	18.0%	18.0%	18.0%	18.0%
	Dirviation in Toneign entitles fan companed to Paroese tax nate	1.5%	0.8%	1.5%	0.8%
	Non-taxable income and non-deductible expenses	-0.7%	=0.1%	-2.0%	=1.6%
	Tax on profit for the year	18.8%	18.7%	17.6%	17,4%
	Adjustment on prior-year 1sx changes	0.0%	0.2%	0.0%	0.2%
	affective tax rate	10.0%	10.9%	17.5%	17.6%

		Group		P.F Foroya Banki
	Note DKK 1,000	2024	2023	2024	2023
15	Cash in hand and demand deposits with central banks
	Capin in Prand	55,161	70,013	54.774	68,034
	Demand deposits with central banks.	2,641,144	1,725,705	2,641,144	1,725,705
	Total	2.696.305	1,796,718	2,665,618	1,793,739
16	Due from credit institutions and central banks specified by institution
	Credit institutions	310,797	260,050	340.797	260,050
	Central banks
	Total	310,797	260,050	310,797	260,050
17	Due from credit institutions and central banks specified by maturity
	On demand	310,797	260,050	310,797	260,060
	Total	310,797	260,050	310,797	260,050
18
	Loans and advances specified by sectors Public authorities	11%	976	11%	876
	Corporate sector:
	Fisheries, agriculture, hunting and forestry	6%	74	0%	7%
	Industry and taw material extraction	5%	5%	5%	5%
	Energy supply	3%	4%	3%	4%
	Building and construction	2%	2%	2%	2%
	Tracki	3%	4%	3%	4%
	Transport, hotels and restaurants	6%	0%	6%	0%
	Information and communications	0%	074	0%	0.36
	Financing and insurance	1%	1%	1%	1%
	Real property Other industries	12% 3%	15% 376	12% 3%	15% 3%
	Total corporate sector	41%	49.4	41%	49%
	Retail customers.	48%	45%	42 46	45%
	Total	100%	100%	100%	100%
19	Loans and advances specified by maturity
	On demand	235,706	317,260	235,700	317,200
	3 months and balow	258,428	445,683	258,428	445,683
	3 months to 1 year	802,752	1,114,856	802,762	1,114,856
	Over 1 year to 5 years.	2,200,595	2,157,033	2,280,595	2,157,033
	Over 5 years	5,208,911	4,847,906	5,208,911	4,847,995
	Total loans and advances	9.036,392	8,882,855	8,066,397	8,882,852
20	Bonds at fair value
	storigage credit bonds	1,259,075	163,428	1,064,380	206,306
	Government bonds	6071542	633,069	475.817	619,244
	Bonds at fair value	1,757,200	1,396,516	1,559,697	1,217,642
	All bonds form part of the Group's trading portiolio
21	Shares etc.
					715
		97,906	90,283	418
	Shares link trust certificates listed on the Copenhagen Slock Exchange Shares lunit trust cartification listed on pther slock exchanges.	0	78	0	28
	Other shares at fair value	187,940	189,666	187,940	189 666
	Total shares atc.	285,845	279,957	168,358	190,388
22	Assets under insurance contracts
	Non-life Insurance
	Mairtiumirs' situan of claims provisions	6,822	3,275
	Receivables from insurance contracts and reinsurers	31003	3,849
	Debt related to reineurance and receivables from policyholders move to labilities Total non-life insurance	-4,039 4,786	-5,467 1,658

						Group		P.F Feroya Banki
Note	DKK 1,000				2024	2023	2014	2023
23
	Holdings in associates Costat 1 January				6.845	8,645	8.845	5.845
	Cost of 31 December				8,849	8,845	8,845	8,849
	Revaluations at 1 January				0.039	2 લિત્તર	0.036	2,994
	Shore of people				4,609	5,102	4.600	5,102
	Dividends Revaluations at 31 December				2017 1200	2.000 4.025	927 9,719	2.093 6,0,300
	Carrying amount at 31 December				10-23	14,881	18,563	14,891
								The Groups
			Not	Total	Total			share of
	Holdings in associates 2024	mooma	profit	18800	linollison		Total equity Ournership %	equity
	P.F. Elektron	62,307	13.426	76,162	22,020	54,072	34%	16,523
	Holdings in associates 2023
	P/F Elektron	62,451	14,861	0.0.008	24,907	43,847	34%	14,881
	The information clacioned is extracted from the companies: most recent annual report (2023).
						Group		Pit Forcys Banki
	DOK 1,000				2024	2023	2024	2023
24	Holdings in subsidiaries
	Cost at 1 January						144,000	144.000
	Cost at 31 December						144,000	144,000
	Revoluations at 1 January						=11,449 -21	-34.674 0
	Cornection to previous years Navaluation of domicile property						0	615
	Share of profit						28,407	27,542
	Dividends						15,500	5.000
	Revaluations at 31 December						1,434	=11,446
	Carrying anrount at 31 December						145,434	132,554
							Shareholders
						Share capital	equity for the	Profitions for
	Holdings in subsidiaries 2004 PfF Trygd				Ownership % 1000%	end of year 40,000	MA 88,369	the year 19, 177
	PIF 88/m				1000%	1,000	6.054	દર્શને
	PIF Nordinalis				1007%	30,000	41,021	8.672
	The information classis axtracted from the companies' annual reports 2024.
						Shore capital	Stareholders'	Profitious for
	Holdings in subsidiaries 2023				Ownership %	end of year	equity for the	the post
	Pir Trygd				1000%	40,000	ભિતે મહત્વ	21,812
	PIF Blon				100%	1,000	5,996	811
	Pit Nordiki In				100%	30,000	37,375	4.890
	The information disclosed is extracted from the companies' annual reports 2023.
						Group		PFF Feroya Banki
					2024	3023	3024	3123
રક	Assets under pooled schemes and unit-linked investment contracts
	ASSES:

Cash deposits	205	274	265	274
Bornou	21,230	11.45T	20.089	90.521
BONDAL	30.904	20.642	37,616	10.542
Offer Market	130	10/91	નિયા	622
Total assees	61,610	33,000	58.055	31.000
Total Inbities	040000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000	33,003	50,055	30.006

Group; Anaels under posted acherss and untilities treasiter or sistem of Associate schemas DPS 58,111,(202) DKK 30,0rh) and Uni-Linked investment contracts DKK 3,5m (2023 DKK 3.0m)

			Group		P/F Føreya Banki
	Note DKK 1,000	2024	2023	2024	2023
20	Intangible assets
	Cost at 1 January	3.319	3.319	3.319	3.319
	Additions	5,000	0		0
	Cost at 31 December	8.319	3.319	3,319	3,319
	Depreciation and impairment charges at 1 January	1,618	917	1,616	217
	Depreciation charges during the year	1.618	701	615	701
	Fair value at 31 December	3,236	1.618	2,236	1,616
	Carrying amount at 31 December	5.064	1.702	1,084	1,702

Deprecision period is 4-5 years. Additions to the interior related related to sequired 17 systems during the year.

	Group		P/F Farcys Bankl
000 1.000	2024	2021	2024	2023
Domicile property
Cost at 1 January	63,259	122 906	61,214	60,860
Additions	363	353	393	353
Reclassification to held for sale	2,352	0	2,352	0
	4,376	0	2,330	0
Oleood als Cost at 31 December	66,924	63.259	66,924	61,214
Adjustments at 1 January	=1.110	=1.384	-2.375	=1,928
Depreciation charges during the year	482	476	450	448
Roversal of depreciation charges on disposals classified as held for sale	145	0	145	0
Revaluations recognised in other comprehensive income	-1,500	750	0	0
Reversal of revaluations on draposials during the year	400	0	134	0
Adjustments at 31 December	-2,547	-1.110	-2,547	-2,375
Carrying amount at 31 December	54,377	62.149	54,377	58,838
Londe masets
Cost at 1 Jurausry	81,542	79.403	81,542	79,403
Additions Cost at 31 December	201	2,137	201	2,139
	81,743	81.542	81,743	81,542
Adjustments at 1 January	-19,949	-15.950	-19,949	-15,950
Depreciation charges during the year	4,361	4,000	4,361	4,000
Adjustments at 31 December	-24,311	-19.949	-24,311	-19,949
Carrying amount at 31 December	57,432	61,593	57,432	61,593
Total land and buildings	111,810	123,742	111,810	120,434

Domicile property

27

Targible as sets include demicile property of DRK 54.4m (2023). DNK 62.1m). Carrying ancurri at 31 Dacarter if the propin'y had not been reviated in DKK 52.2m (2023: DKK 60.0m).

The fair value in possessed by the group's internal valuationed a view on the basis of in income boose aconsel. Valuations new substantially on non-chaires. In level 3 measures. Valuations are based on cash flow estimation and on the required rate of nitum calculated for sach property that relacis the price at which the property can be exchanged between incontries willing partes under current market conditions. The cash flow estimates and the bossis of the market rent for each property. On the Farce lolands the rent ranges from DKK 002-150 pr. m2 and ind Greentand the rent ranges from DKK 1,600-2,400 pr. m2. The required rate of nelum on a property is delernined on the basis of its location, ligne, possible uses, layout and condition. At the end of 2024, for far value of domicle property was DKK 61.4m (202): DAX 62.1m). The required rate of relum is ranged between 7.0%-10.9%). The depreciation period is 50 years. A decrease in rentairses of DKK 100 pr m2 w ould reduce fair value at end of 2024 by DVC J.B0. An increase in the required rate of relum of 1.0 percentage point, would reduce fair value at the end of 2024 by DOOK 6.1 m.

Loases

Leasing agreements comprise the Bankis don'ts the Bank's headquarter in Torolasin and branches in the Firon islands. The notice period for terminating the lease agreements ranges from three months to 15 years. The leasing agreement regarding the Banks. headquarter includes an option for the lesses to estend by five years. Progety where the Bank holds short term lesses but intends and has the option to extend the contract is included in the calculation of Bank's leasing assets and obligations.

Leasing latellies ansurting DKC 64 Am are recognised within the ballance sheet Bern Other labilities, in the 2003 annual report the leasing last large reported to be OKK 67 for. The Group included the eption in the eption in the eption in the extension were work we are a would the waren were would the waren we wa added DNK 17.0mlo the leasing sounds and leasing labilities. Interests answring DKK 2.1m dass leasing obligsticus are charged to fine income statement as Interest expense. Deprecision of leasing assess ameanting CNK 4.2m are resocration and impairment charges in the income statement. The annual payment in respect of the leasingliabilities is DPA 5-4m. The banks estarated berrow ing rate used in the caluculation of the leasing assets and leasing lisbilities is 3%.

Confidential, Mikkelsen, Arne, 01-04-2025-14:15:223ocument.

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Document ID: D91C7BB1A06245CEA4F12CA4607C4FF0

			Group		P/F Foreya Banki
	Note DIOC1.000	2024	2021	2024	2023
28	Other property, plant and equipment
	Cost at 1 January	42.375	38.168	34,416	31,167
	Assifiord	6.819	6.234	6.819	4.171
	Discosalis	2012	2.027	154	843
	Cost at 31 December	48,777	42 375	40,560	34,496
	Depreciation and impairment charges at 1 January	29,004	29 342	24,634	23,346
	Depreciation charges during the year	3.888	2 489	3,319	2.068
	Reversals of deprecision and impairment charges	577	1.817	450	801
	Depreciation and impairment charges at 31 December	33,214	29 994	27,493	24,634
	Carrying amount at 31 December	15,000	12.301	11.067	9.162

The depreciation period is 3-10 years .

29

29

DRX 1,000			Group
			2004	2023
Deferred tax
Deferred tax axsets			11,253	9,412
Deferred tax habilities			2000	21
Deferred tax not			10,745	9.391
Change in deferred tax	5.9072.563	Included in	Included in
	6.992.040	profit for	shorholders.
2024	AL 1 Jan.	the year	equity	AL 31 Dec.
htangible assets	-306	-800	0	-015
Tangible assets incl. lease assets	-1,297	1,588	0	291
Provisions for obligations	10.169	389		10.668
્લામ	626	- 14	0	811
Total	8,191	1,354	0	10,745

Intangible assets	-426	119	0	306
Tangbie assets incl. lease assets	-3.144	34	1.045	-1.297
Provisions for abligations	10.1629	D	0	10.169
Other	268	538		874
Total	A FEBR	હકેટ	1.815	9.391

Adjustment of prior-year tax charges included in preceding item.

DKK 1,000			PF Foroya Banki
			2024	2023
Deferred tax
Deferred tax assets			11,172	9.362
Deferred tax, net			11,172	9.362
		Racognised in	Recognitued in
Change in deferred tax		profit for the	shareholders
2024	At 1 Jan.	your	equity	A1 31 Dec.
nangbie assets	-306	111	D	-195
Tangible nassets incl lease associats	-1,103	1,296	D	193
Loans and advances etc.	10,160	387		10 568
Office	602	15	0	617
Total	9.362	1,810	0	11.172
Adjustment of prior-year lax charges included in preceding liem.
2023
Hangble assets	-425	119	D	-304

Tatal	1777	5 000		0.505
Other	43	669		602
Loans and advances etc.	10 169			10.169
Tangible assets incl lease assets	-3.122	2.019	0	-1.103
manghie annets	-425	119		-308
2019

Confidential, Mikkelsen, Arne, 01-04-2025 14:15:230sument.

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Note	DKK 1,000		Group	PiF Faroya Banki
		2024	2023	2074	2074
35	Assets held for sale
	Total purchase price at 1 January	0	24,200	0	24,200
	Reclassification from domicile properties.	2,207	D	2,207
	Disponials	1	24,200		24,200
	Total purchase price at 31 December	2,207	0	2.207
	Impoirment at 1 Jaruary	0	D	0
	Impairment charges for the year		0
	Reversal of impairment on disposals and write offs during the year	0	0
	Impairment at 31 December	0	0
	Total assets held for sale at 31 December	2,207	0	2.207
	Specification of assets held for sale
	Real property taken over in connection with non-performing icans	D	D	0	0
	Domicile property for sale	2.207	0	2.207
	1 0681	2,207	0	2.207

The lisen "Assets held for sale" comprises assets taken over in connection with nor-perforning loans and reclassified domicle property.

The Group's policy is to dispose off the assets as quickly as possible.

Profit on the sale of mail property and taken over in connection with nen-serforming isansis recognised under the liker." Them "Other operating income". The Group's real estate agency is responsible for selling the real property.

Note	DKK 1,000	Group		PiF Førøya Banki
		2024	2023	2024	2023
31	Other assess
	Interest and commission due	45.600	40,000	44,196	39,312
	Derivatives with positive fair value	23,248	36.988	33.348	36 669 669
	Other arrounts due	18,551	9,495	21,007	11,066
	Total	80,400	89,044	09,312	90.0GB
32	Due to credit institutions and central banks
	specified by institution
	Due to carrinal banks	26,975	41,975	26,975	41.975
	Due to credit institutions Total	796,480	877,130	796,480	677,130
		823,456	719,106	823,455	719,105
33	Due to credit institutions and central banks
	specified by maturity
	On demand 3 morths to 1 year	45,634 250,000	58,391 125,000	45,634 250,000	50,391 125,000
	Over 1 year to 5 years.	226,250	535,714	228,250	535 T14
	Over 5 years	200,571	D	222,571	a
	Total	823,455	719,105	823,495	719,105
34	Deposits specified by type On demand	6,669,887	6,790,359	6,711,253	6,797,764
	At nodde	1,064,000	747,662	1,064,009	747,662
	Time deposits	1.606.318	092,326	1,608,318	592,325
	Special deposits	431,124	571,845	011,124	571,045
	Total deposits	10,003,340	8,702,192	10,014,704	0.709.500
35	Deposits specified by maturity
	On demand	6,747,297	6,820,051	6,758,653	6,827,448
	3 months and balow	1,049,660	659,007	1,049,090	660.007
	3 months to 1 year Over 1 year to 5 years	1,676,047 68,131	838,107 64,977	1,876,047 09.131	838.107 64.977
	Over & years	461,213	430,049	461,213	430,049
	Total deposits	10,003,148	8,702,192	10,014,704	8,709,586
36	Liabilities under insurance contracts
	Non-IHe Insurance	56,239	54,169
	Liability for nemaining coverage Lisbility for incurred claims	00,556	81,292
	Total	155,795	135,460
	The confidence level used to determine the risk adjustment is 99.5%.
	Life insurance
	Sucess would documents and appli	2,660	4.210
	Total provisions for insurance contracts.	2,690	4,216
	Total	158,485	139,679
	Guarantees
	Registration and remorigaging guarantees	30,715	37,516
	Other guarantees	138,865	131,646
	Total	169,581	169,164
	Insurance fabilities comprise fabilities as defined by IFRS 17.
37	Other liabilities
	Sundry creditors	36,776	30,048	33,394	25,264
	Accrued interest and commission	33,260	23.434	33,230	23,434
	Derivatives with negative value	30,272	22,178	30.272	22.178
	Accrued staff expenses	23,115	22,467	23,115	22,467
	Losse labilities	64,424	67,565	64,424	67,565
	Other obligations	35,306	14,061	35,396	14.661
	Total	226,573	180,955	220,192	175.570

Confidential, Mikkelsen, Arne, 01-04-2025 14:15:236cument.

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Moto Did 1.000

54 Is sued bonds

				900-48
	Callergy	Print cleval	Internet rate consult			Formarks Photoned Maberity			2024 2024 2022
Business Transle CROEXORICA	8		100.000 CBC CBCPCI + 1.0%				10-03-2021 10:03-2028 108 0003		188.343
BALAND DECEMBER DE COLLEGION OF	XX		200.000 CIBILIPO + 3.35%			22-11-2003	37-11-3020 1100.014		THE BOB
Baued Daily Delay December 151	DEN		250.000 CMC611 + 1.08%				03-12-2023 00-15-3008 [348.673		244.1994
Business bailed December 11	000	158,000	2.24016	Yea			The 3-captal 10-06-2021 18-06-2021 148.059		149,578
fraued band DROE30506530	Calle		308.000 5 TERRED + 1.08%		Tiar 3 capital Hadcaed 31-03-2822 2532 2533-3037 190.081				199 129
4.4 14 10 magazing a								220110	10.0 12.0 1

Total report of principal and informat amounts to approximately DNK 1.155m (2020. DNK 1.227m)

วม Additional Tier 1 saptal

				The ar call		Megrap Redemplan
			Californy Barrowel Prespective Hand Hand Market - Data - Jerie - 2004 - 200
Addional Tor 1 capital			DN FF Forcy Dank
At 31 December		950 000					40.00

and and comments of consider i	Principal (nat Frank Francisco (1)	134-81 30 8.3024
Additional Tim 1 capital		4.1000 Th

forcelailed for Coloined in contribution in control control control o colim a l'arcolin o i Trecelebility of Prodeins of Prodeins of Prodeins on Marcel of Mariel Production P

I a Nat a v perpetial near sugures on any will and and supportunities of the Est Stephens of SE Pint of LEATE. THE LED IS TO TELE LEAST STORES IN FOR SEE LEAST OF LETER TO PE todeomed an 20 September 2024.

40 Suberdinated sapilal

	Cattersey Berron at		Primeigan Internstrain Insus	Your of	Alab.rity	580-85 15.000 5.00	The class may in a price 2024		20023
Subordinated crigital	DRA FF Fally Barks TO.D.O. 1979 - 201 - 2171 - 24-201 - No - 30 - 313 - 313
Al 21 December		100,000						20.170 99.650
landscares art r'arge !	Principal (not hadged)		Uniti 26 € 1006		From 17 A-20129

Bubondinated napital 100ms 2.000% OBOR 344 · 2.07%

Bukerdfraded sigilal is ralaried in the Banks Total sagilal according II w Parcess Piramical Business Asi and in CPRC.

The subordinated caplai can rather into spilal. Einly soderplan of sider freat to approved by in Carin FSA, h the even if Fincy Banks volumer or complany w inding-up. It is lability will not be requiries of ordinary creditors have been met. Subscrimined cable in valued at annothed coat.

	Note DIKK 1.000	2024	2023
41	PIF Føroya Banki Shares
	Net profit	310,427	307,533
	Average number of shares outstanding	9.574	9,574
	Number of dilutive shares issued	0	0
	Average number of shares outstanding, including shares diluted	9.574	9,574
	Eamings per share, DKK	324	32.1
	Diluted net profit for the period per share. DKK	324	32.1

The stare capital is made up of shares of a norninal value of DKK 20 each. All stares carry the same rights. Thus there is only one class of shares.

Average number of shares outstanding:
Issued shares at 1 January, numbers in 1,000			9,600	9.600
Reduction of share capital			0	0
Issued shares at end of period			9.600	0.600
Shares cutstanding at end of paniod			9.574	9574
Group's average holding of own shares during the period			26	26
Average shares outstanding			9.574	9,574
	Number	Number	Value	Value
Holding of own shares	2024	2072	2024	2023
Investment portfollo	26289	26,289	4.259	4,325
Trading portfolio	0	0	0	0
Total	26,289	26,289	4,259	4,325

	Investment	Trading	Total	Total
	portfollo	portfollo	2024	2023
Holding at 1 January	4.325	0	4.325	3,575
Acquisition of own shares	0	0	D	0
Reduction of own shares	0	0	0	0
Sale of own shares	0	0	0	0
Valua adjustment	-06	0	-68	749
Holding at 31 December	4,259	0	4,259	4,325

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		Group		P.F Føreya Banki
	Note DKK 1.000	2024	2023	2024	2023
42	Contingent liabilities The Group uses a variety of loan-relation financial instruments to meat the financial requirements of its customers. These include icon commitments and other credit facilities, guarantees and instruments frat are not recognissed on the balance sheet. Guarantees and loan commitments are subject to the expected credit loss impairment model in FRS 9. Guarantees related to insurance contracts in FRS 17 are presented in note 36.
	Guarantees
	Financial guarantees	177,076	177,202	177,076	177,202
	Morigage finance guarantees	317,108	550.151	317,108	656.151
	Registration and remoriganing guariantees	44.175	32 835	74.890	70.363
	Other guarantees	67,381	64.817	206.247	218.483
	Total guarantees	605,741	851,004	775,321	1,020,169

In addition, the Group has granted credit to credit cards and overchaft facilities that can be terminated at short notice. At the end of 2004, such unused creatiles arrounted to DKK 2. fon (202): DVK 1.9themore the Group has granied invencedes been commitments amounting to DRK 80m (2023: DKK 80m).

If the group desides to termina the agreement with the banks main IT provider BDC, the group is colleged to pay DVC 100.2m, in. In estimated max! 2.5 years payment to SOC for IT-services plus the banks chara of SOC's intengible assets.

43 Assets deposited as collateral

At the end of 2004 the Group had disposited bonds at a total market value of DKK 27m(2022). DKK-42n) with Darmarks NationalBark (the Danish Cantral Bank) primarily in connection with cash deposits.

At the and of 2004 the Group had deposited cash at a total make of DKC 20.7m (2023: DKK 5.3m) in connection with negative market value of chrivatives.

Caracter 4

44

Philated parties	Parties with			An e-sectabled		Board of
	algalificant influence			undertskings		Oknochors	Broculive Board
DIX 1.000	24024	2023	2014	29 23	2024	2929	2024	2025
Actually
L-348000	4.500	4.8"10	2.038	3,413	11.684	46.023	0.147	4. TW1
Investment Properties
Association hold for sale
Total	4,567	4,646	2.035	2,412	13,664	65.029	6.552	6.781
List Miles
December	1/23 284	179,504	13.250	11,000	82,903	03.000	2.341	2.737
Other lubilities
Total	137 988	107,524	100%	11,090	02:00	62,000	12,441	201
Off linese shool liners.
Guarantees Barald					8.000	3.841	314	THE
Guarantonia and calleral received	3,890	2.066			22.510	101.524	T.100	4.089
Income Statument
blarge Income	2,788	170	212	1/4	000	1.638	324	143
allermil responsive	3,878	3,040	7	1	20	14.0	R	37
Fired- Fin2-2017 (r.	117	134	28	20	1407	172		19
Other operating income
Administrative expensive
Total	453	-8,040	230	224	1,266	4,667	301	432

Pacted Julies a the systems of the near considers a ill helding receeding 27% of FP Parys Basis shop copial. The stamilates is the Partier is the Sense of Ten Parts of Ten Pa and is the arily party with significant influence.

In 2024 interest rates on credit tackles granted in associated undertakings wore between 5-40%-12.63% (201-15.2%).

The Board of Decors and Coucaine Board collers, be parsonal scilles, doces in at the Board of Decorp and the Board and the Books, and the Books, ale, feal is normations of the Essent of Checuline Doord on that depositions and feellines will contresses in n'ice heap portunities in a fet broop portunities in a fet broop port

In 2004 tournal take or creat to merchers of the Board of Describe Rand not the Geouler Band were belowers 2005-22 TPS (2021), Roy 10 specifies fra remuneration and note-45 specifies shareholdings of the management.

FF Persya Bank and to best of its related police. Plymont services, bolling in proculties and other rolements, leventeen and placement of public lines in excluding. endow ment, polices and provision of shart-feers and long-term Fissnorig are the prisons pennities promoted by the Bank.

(Suens in PP Proya Barkinner) by nure. The nanagemen's regent for in reduction of França Bath ishares (This are reasily on five Losis of the most recent reporting of hostings to the Bosh.

There actions with relatist polision and recognised in the financial stationsmis according to the uses socording to the same socording to the similar banks on with urrelation portion

Quarantees and collaimal received! New exposure in 2024, related in enessuitee board.

Confidential, Mikkelsen, Arne, 01-04-2025 14:15:22goument.

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Document ID: D91C7BB1A06245CEA4F12CA4607C4FF0

Note P.F Peroya Banki shares held by the Board of Directors and the Executive Board

Holdings of the Board of Directors and the Executive Board	Beginning of 2024	Additions	Disposals	End of 2004
Board of directors.
Birger Durhuus	2,900			2,936
Annfinn Vitalis Hansen	0	6,119		6,119
Ami Tor Rasmussen	0	116,216		115,218
Kristian Reinert Davidsen	100			107
Marjun Hianusardofor	D	181		151
Tom Ahrenst	D			D
Birita Sandberg Samuelsen	53		53	D
Rini Vang Rauleen	260		200	D
Marjun liestberg	15		75	D
Kenneth M. Samuelsen	2,494			2,464
Alexandur Johansen	200			200
Rana Horize	not			THE
Teeni	6,918	120,518	288	127,048
Conceive Bourd
Turib F. Anga	6.135			6,135
Takal	40.400	Ca	-	1112

45

45

Financial instruments at fair value

DIOX 1.000

The fall the intention in thich a linnel on be escharged believen inorvedgation willing and independent parke. If an active market estiles. If an active market estimal series quand price. If a fiesecial instrument is quated in a not active, the Grup bases in valuation on the nost near troans story of contraction price. Adjustrial is main for selessed changes in mailed continues, by including bornsections in pinker francial instruments from any assumed in to redivated by romail bothers a consistentions. For a number of links and stablisher, no radial statis. In ach cases, the Group useen instruments and discussions in sinhar instruments and decounts cash Tour sur other generally accepted ersimalism techniques based on market carditions at the balance sheet dates to calculate an estimated inter.

Unlikist there woopniest it her natus corprises unless who are not included in the Group's trading portiols. Unlined interes, are moogland it fair sales and any masune in accorders with sharehaders ageements and using generally accepted outmailions and valuation stranspes. The relation of andbed shares is boned subscription on receptions were see receptied all ar ville when wing price fulling-sgreeners according to the afsiles of association

2034		Quarters (20464-1824)	Non-aber rade
rinancial assocs and Babilities at fair value	English Blues Justice Station Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company Company	Property	100 -0.00	Transplay
Financial asisteria lived for Bradling
Sorvers at Fair value	1,423,534	2.03.656		1.131.200
Sharea, #8c.	\$7,986			11,906
Der louderes in III positive lan nature		23,348		23,248
Total	1,521,440	356,943		1,678,353
Financial associa designated at fair value
Loans and advances all an value			3.19,297	379,297
Charon . ofc		156.913	1,347	487,660
Total		106,513	220,644	507,157
Finannial assets at Fair varue	1,621,440	843,426	330,644	2,385,650
Financial Backliftins held for trading
Derinatives in the negative for value		30.212		30,272
T-DEM		2017		30,372
20023	Qualid	Dicervable	Non-aber rable
Financial associa and babilities at fair value				104/4
	[19] 01	8 mg val	may naf
Financial asystems Peed for Bradling
Borets at Fair value	1,153,335	243,181		1,286,516
Shames . #80.	90,562			10.362
Derinodines in ill'i positive fair natue		38.839		IN REVI
Total	1,245,687	257,079		1,525,357
Risancial associa designated at fair value
Loans and advances at fair value			549.500	549.530
Shamou . #1c.		100,340	1.340	189,595
Total		188.348	3.05 847	1.38 KBS
financial onsets at fair value	1788000	CHOOLETE	730,000	200200000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000
Financial Robfities hald for trading
Derinations in if's negative fair value		22,1178		22,178
Total		22.178		22,176

Confidential, Mikkelsen, Arne, 01-04-2025-14:15:22goument.

The seal is a guarantee for the authenticity

Document ID: D91C7BB1A06245CEA4F12CA4607C4FF0

.....

Nield

46 your Francial intelled on the belief prices in an ediver in an ediver in in active and only in in active on the Gotice prospecial in relax is internal in the basis is beli of others to anyon com while in the religing commission in the worlder who in the world be least on worker were research and the research and the research and consisted and t

M: Develle 2016 Portul Area online in the color and anternation in the same and the man art are mark oper and the start de real in the structures incl. (1012 DKK 1201 decessare in the relax of antisted shares and loans and advances would smount to DNK. Ellers and sphered by any and advances massured at the solas

	AND REAL	ANT OF THE OWNER OF THE OWNER OF THE FORCE OF CHIP OF CONSULTION OF CONSULTION OF CONSULTION OF CONSULTION OF CONSULTION OF CONSULTION OF CONSULTION OF CONSULTION OF CONSULTI
Financial instransents at fair value valued on the basis of non-alaxervable input
Filil value at 1 January	349.600 ?	359,988
Value adjustments through profit or loss	7,463	46,506
HCBJMBBB	0	15,000
Discessful	30 F.B.5	47 488
Fair value of 31 Decomber	320,644	340,847

Value adjustmants of unlivied shares and barns and the value any succeptived urbe the Nation was acjustments" in the income statured.

Pleaselal lestramores at amortised cost

The national relations be the Oring Loss, advances, and leged moyel in national re consect incomers and a notent in continues and a notenter of the intellection of the intell and that allecting the pical that scalif tone been fred toen nagned at the batance sheet data. Other people may make of to Goog clacines. information also at the fair value of financial instruments at amortiesed cost on the basis of the folowing assundions:

" for mury of the Group's decoels and loses, the interest rails in linked to clevelopments in the market interest rails

* I'm fair value assessment of interest country informed starrate that the Bark in peneral regalates the issues in accorderce with the persider granded conditions

* It is neagrised impairned charges and the day was and the specific on and in apacific on and resident of the Bank is the Bank is the Bank is the Bank is the Bank is the Ban collective impaintent charges

" It is natur assessment of fined interest deposits in booked on the basis of the market interest rate on the batence shoot day

" It is subordinated dept and issued is assist sales is a stimated at fair railar also as a nativated on the markets to the balance shareneres.

Firstein instrumeres at amortised coat	Garryling MICH MICH ME	For value	Carrylng BROUND	Fair value
	2004	2004	2003	2003
Firm can association
Cash in hand and demand deparits withcentral banks	2.686.305	2.096.305	1,785,710	1,795,118
Que from credit institutions and central banks.	340.797	340,797	200.050	200.050
Lasma and achances at amonised cost		8.TE7.064 8.75T.004	6.534.385	8.534.365
Assets Under insurance contracts	4.786	4.786	1.688	1 688
Treform	11,778,082 11,778,062		10,681,782	90,684,782
Francial labilitas
Que to erroll institutions and neelral banks.	821488	823,485	779,105	T19,109
Deposible and (diver del).		"10000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000	8,702,182	8,702,182
Departments under posited surverses	61,013	41.6 10	12001	31000
bround homels and convertised now	681,160	809,824	669,134	072,012
Liabilities archive inquilibre confiliatio	168,485	158,485	139,639	139,679
SUBCRIVERSION S	99. 199	92472	CONTRY	84.264
	12,137,077 12,121,182		10.679.782	90,041.154

Gash and demand deposits with rentral com and adverse. Depositively, si any measured at mackeeredel rep.d.i. iles is massures in reactions of reactions of the studies. clabl and lossed bonds are measured at ebservable inpal, Le. level 2 measures.

DHK 1,000

47	Group holdings and undertakings	Share capital currency	Functional	Nat profit	Shareholders' aquity	Share capital %
	P.F. Feroya Bankii	160,000	DOK	310.427	2.076.087	100%
	Insurance compariles P.F. Tryad P.P Nordkliv	40.000 30,000	DIGIT DKK	19.177 8.672	64.366 41.02-1	100% 100%
	Real estate agency P.F Skyn	1,000	DKK	558	6,064	100%

DRX 1.000			2004			2023
		Nors-line	Libb	Total	MAR H . 11 .	LFe	Teepl
	Reconcillations of changes in insurance liabilities
	Unwarned premium provisions	57,500	0	57,500	55,210	0	55,113
	Quartanding claims provisions	101,762	2,690	104.452	83,417	4.218	03.636
	Receivables from policy piders and debt related to direct insurance	-3,473	O	-3.473	-3.175	1	-2.00 D
	Liabilities under insurance contracts, year-end	155,795	2,690	158,485	135,460	4.218	138,679
	Printisions for claims, not of reinaunted and discussion with the rail-hoe internat rate from EXPPA.
	The cantidence level used to determine the risk adjustreent is 99.5%.
	CHOREMOUD CENTRANT ENR/ANDRE/PENTERNATI
	Beginning of year	66,216	0	65.218	60.703	0	60,703
	Premiums received	178,293	22,694	201897	168,699	20,621	168,217
	Premiums tecagnised as income	=176,004	22,694	-198,599	=164,181	-20,631	-184,800
	Uneamed premium provisions, year-end	57,500	0	57,539	55,218	=	55,113
	Datalanding claires provisions
	Beginning of year	00,417	4,210	07,636	64.361	3,112	67,473
	Claims paid regarding current posit	64,841	6,871	490,612	-43,600	-6,643	-60,244
	Claims paid regarding previous years	-34,020	-1,444	-35.454	-29.842	-2.272	-32,214
	Change in claims regarding current year	00 500	5,506	22.174	83.744	10.122	93,665
	Change in-claims regarding pervices years.	13,619	0	12619	8,735	1	8,735
Outstanding claims provisions, year-and

Reinsurers' share of claims provisions, year-and	6.622	0	4.622	3.275		9,275
Payments received from teinsurers.	-2.971	0	-2.971	-1 057	0	-1.06J
Chines ceded	6.318	0	0.118	1,744	=	1,701
Beginning of year	3,276	0	3.275	2.631	0	2,631
Reviews shore of claims provisions
Rainsurers' share of promium provisions, year-and	0	0	0	0	0
Payments to nutrauvur	19,956	821	20.777	16.299	700	17,006
Premiums ceced	-19,956	-521	-20.777	-16.299	-700	-17,006
Beginning of year	0	0	0	0	0	0
Resistent anane of presentary provisions
Reinsurers' share of insurance contracts, year-sind	4.706	0	4.706	1.650	0	1.650
Debt related to reinsurance and receivables from policyholders move to follolities	-4.930	0	-1.8.24	-5.467	1	-5.463
Receively Black Tions insurance contracts and reinsurers.	3,000	0	3,017	3.849	=	3.646
PACK BURTI'S: SENSION US LABOR US BIO CHARGER IS	11.0 11 11 11 11	10	19. 10.4	0.000 0 00		ಿಂದ ಸಿ ಪ

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Note 49 - Risk Management

The Faroya Banki Group is exposed to several risks, which it manages at different organizational levels. The categories of risks are as follows:

• · Crediit risk: Risk of loss because of counterparties failing to meet their payment obligations to the Group
• · Market risk: Risk of loss because of changes in the fair value of the Group's assets or liabilities due to changes in market conditions
• · Liquidity risk: Risk of loss because of a disproportionate increase in financing costs, the Group possibly being prevented from entering into new activities due to a lack of financing or in extreme cases being unable to pay its dues as a result of a lack of financing
• · Operational risk: Risk of loss because of inadequate or faulty internal procedures, human errors or system errors, or because of external events, including legal risks
• · Insurance risk: All types of risk in the non-life insurance company Trygd and the life insurance company NordikLiv, including market risk, life insurance risk, business risk and operational risk

The Risk Management Report 2024 contains further information about the Group's approach to risk management.

Capital Management

P/F Føroya Banki is a licensed financial services provider and must therefore comply with the capital requirements of the Faroese Financial Business Act. Faroese as well as Danish capital adequacy rules are based on the CRD IV requirements stipulated in the regulation (EU) No 575/2013 of the European parliament and of the Council of 26 June 2013.

The capital adequacy rules call for a minimum capital level of 8% of risk-weighted assets plus any additional capital needed. Detailed rules regulate the calculation of capital and risk-weighted assets. Capital comprises core capital, hybrid core capital and subordinated debt. Core capital largely corresponds to the carrying amount of shareholders' equity less proposed dividends, deferred tax assets etc. The solvency presentation in the section Statement of Capital in PiF Farova Banki shows the difference between the carrying amount of shareholders' equity and the core capital. Note 39 and note 40 to the financial statements show PJF Faroya Banki's hybrid core capital and subordinated debt. At year-end 2024, the Bank's CET 1 capital, Core capital and Total capital ratios were 23.8%, 23.8% and 25.2%, respectively. At the end of 2023, the Bank's CET 1 capital, Core capital and Total capital ratio were 25.8%. 28.0% and 29.4%. respectively.

Credit risk

The Group's credit exposure consists of selected on and off-balance sheet items, including loans and advances, credit facilities, unused credit facilities and guarantees. The figures below are before deduction of impairments. Specification of impairments is shown in table 8 and 9.

Credit exposure in relation to lending activities includes items with credit risk that form part of the core banking operations.

Exposure in relation to trading and investment activities includes items with credit risk that form part of the Bank's trading-related activities, including derivatives. For details see the section "Market risk".

The Group extends credit based on each individual customer's financial position, which is reviewed regularly to assess whether the basis for granting credit facilities have changed. Each facility must reasonably match the customer's credit quality and financial position. Furthermore, the customer must be able to demonstrate, with all probability, his/her ability to repay the debt. The Group exercises caution when granting credit facilities to businesses and individuals when there is an indication that it will be practically difficult for the Group to maintain contact with the customer. The Group is particularly careful when granting credit facilities to businesses in troubled or cyclical industries.

Confidential, Mikkelsen, Arne, 01-04-2025-14:15:223-cument.

Risk exposure concentrations				Table 1
	2024		2023
	DKKm	In %	DKKm	In %
Public authorities	1.221	10.2%	1.128	9.4%
Corporate sector:
Agriculture and farming, others	22	0.2%	66	0.6%
Aquaculture	163	1.4%	179	15%
Fisheries	527	4.4%	878	7.3%
Manufacturing industries, etc.	569	4.8%	270	2.3%
Energy and utilities	431	3.6%	474	4.0%
Building and construction, etc.	575	4.8%	559	4.7%
Trade	498	4.2%	513	4.3%
Transport, mail and telecommunications	794	6.6%	678	5.6%
Hotels and restaurants	112	0.9%	118	1.0%
Information and communication	10	0.1%	10	0.1%
Property administration, etc.	1,635	13.7%	1.708	14.2%
Financing and insurance	104	0.93%	105	0.9%
Other industries	330	2.8%	339	28%
Total corporate sector	5,769	48.2%	5,899	49.1%
Personal customers	4,983	41.6%	4,977	41.5%
Total	11,973	100.0%	12,004	100.0%
Credit institutions and central banks	3.169		2,092
Total incl. credit institutions and central banks	15.142		14,096

Table 2 Credit exposure by geographical area
(DNK/T1)			2024					20123
	Exposures		Loans J In% Credits	Сергательных	Unused	credits Exposures	11%	Loans J Credits	GUITATONER	Unused credits
Farge Islands	9.469	78%	7,749	383	1,326	9.220	77%	7.544	578	1.033
Denmark							0%		0
Greenland		2.504 21%	1.514	349	641	2,776	23%	1.515	410	850
Total	11.973 100%		9,263	743	1,967	12,004	100%	9.060	988	1.883

Credit exposure

The credit exposure generated by lending activities comprises items subject to credit risk that form part of the Group's core banking business. Credit exposures include loans and advances, unused credits and guarantees. The credit exposure generated by trading and investment activities comprises items subject to credit risk that form part of the Group's trading activities, including derivatives. The following tables list separate information for each of the two portfolios.

Credit exposure relating to lending activities

Table 1 breaks down the Group's credit exposure in its core banking activities by segment and business sector.

Exposures include loans and advances, credits, unused credits and guarantees.

Exposures to the fisheries sector were DKK 527m at the end of 2024. This represents 4.4% of total exposures. Property administration DKK 1,635m representing 13.7% of total exposures, and DKK 163m was related to the aquaculture industry. This represents 1.4% of total exposures. No single industry except property administration exceeded 10% of total exposures.

Credit exposure broken down by geographical area The Bank's loans are mainly granted to domestic customers in the Farce Islands and Greenland and to a

Confidential, Mikkelsen, Arne, 01-04-2025-14:15:223ocument.

small extent legacy customers in Denmark. Table 2 provides a geographical breakdown of total exposures.

Classification of customers

The Group monitors exposures regularly to identify signs of weakness in customer eamings and liquidity as early as possible. The processes of assigning and updating classifications based on new information about customers form part of the Group's credit procedures.

The classification of oustomers is performed in connection to the quarterly impairment testing of the loan portfolio. All customers that meet a small number of abjective

criteria are classified in this exercise. The classification is also used as a means of determining the Bank's solvency requirement. The classification categories are as follows:

• 3 and 2a Portfolio without weakness
• 2b15 and 2b30 Portfolio with some weakness
• 2c Portfolio with significant weakness
• · 1 Portfolio with impairment/provision (OEI)

As shown in table 3, more than 98% of total exposures are individually classified.

For further information on impaired portfolios, see table 8.

Concentration risk

In its credit risk management, the Group identifies concentration ratios that may pose a risk to its credit portfolio.

Under CRR (EU) nr. 575/2013 § 395, exposure to a single customer or a group of related customers, after deduction of particularly secure claims, may not exceed 25% of the Total capital. The Group submits quarterly reports to the Danish FSA on its compliance with these rules. In 2024, none of the Group's exposures exceeded these limits.

The Group's overall target is for no industry to make up more than 10% of the Group's total exposure, see table 1, except for the industry group "Trade" and "Property administration, etc." which may be up to 15%. In addition, the Group's long-term target is for no single exposure (on a Group basis) to make up more than 10% of the Group's Total capital. In exceptional cases, exposures may be above 10%, but only for customers of a very high credit quality, and where the Group has acceptable collateral. The Group has one customer with exposure exceeding 10% and this customer is 2a5.

Quality of loan portfolio excl. financial institutions 2024				Table 3
		> 7.5m	< 7 5m	Total
Portfolio without weakness (J. 2a)	Exposure in DKKm	4,533	3.055	7,586
Portfolio with some weakness (20)	Exposure in DKKm	વેરેન	2.482	3,436
Portfolio with significant weakness (2c)	Exposure in DKKm	244	79	323
	Unsecured	0	10	10
	Esposure in DKKm	253	168	419
Portfolio with OEI	Unsecured	57	33	80
	Impairments lprovisions	36	23	ટેને
Portfolio without individual classification	Exposure in DKKm	175	32	207
Total	Exposure in DROGm	6.159	5.813	11,973
Quality of loan portfolio excl. financial institutions 2023
		> 7.5m	< 7 5m	Total
Portfolio without weakness (J. 2a)	Exposure in DKKm	4,387	2,779	7,157
Portfolio with some weakness (20)	Exposure in DKKm	1.586	2.731	4.317
Portfollo with significant weakness (2c)	Exposure in DKKm	92	89	181
	Unsecured	4	8	11
	Esposure in DKKm	91	168	260
Portfolio with OEI	Unsecured	43	37	80
	Impairmentalprovsions	23	32	ਦੇ ਦੇ
Portfolio without individual classification	Exposure in DKKm	62	19	01
Total	Exposure in DROGm	6,218	5,786	12,004

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Collateral

The Group applies various instruments available to reducing the risk on individual transactions, including collateral in the form of tangible assets, netting agreements and quarantees. The most important instruments that can be used to reduce risk are charges on tangible and intangible assets, guarantees and netling agreements under derivative master acreements. as further described in the section Liquidity risk.

Collateral provided to the Group.

Table 4 shows collateral for exposures excluding exposures with impairment or past due exposures. Collateral amounts to DKK 8,536m. The types of collateral most frequently provided are real estate (87%). ships/ aircraft (10%) and motor vehicles (2%) {see table 5) in addition to guarantees provided by owners or, in the Faroese market, by floating charge.

The Group regularly assesses the value of collateral provided in terms of risk management. It calculates the value as the price that would be obtained in a forced sale less deductions reflecting selling costs and the period during which the asset will be up for sale. To allow for the uncertainty associated with calculating the value of collateral received, the Group reduces such value by way of hairouts. For real estate for residential purposes, haircuts reflect the expected costs of a forced sale and a margin of safety. This hairout is 20% of the estimated market value. In general, collateral for loans to public authorities is not taken if there is no mortgage in real estate. For unlisted securities, third-party guarantees (excluding guarantees from public authorities and banks) and collateral in movables, the haircut is 100%.

Table 4 shows the Bank's total credit exposure and the collateral for the loans granted divided into personal, corporate and the public sector. Unsecured exposures accounted for 12% of personal exposures and 31% of corporate exposures at the end of 2024. Most of the the Bank's exposure is granted against collateral in real estate.

					Table 4
(DKKm)	Рескопа customers	Corporate sector	Personal & corporate	Public	Total
Exposure	4,983	5,769	10,752	1,221	11,973
Loans, advances & guarantees	4.767	4,223	0,990	1,016	10,005
Collateral	4,408	3,959	8,367	169	8,536
"Hereof collateral for stage 3 exposures	સ્ત	236	330	0	330
Impairments	44	133	177		178
Unsecured (of exposures)	612	1,817	2,429	1,053	3,482
Unsecured (loans, achances and guarantees)	517	768	1,285	864	2.149
Unsecured ratio	12%	31%	23%	88%	29%
Unsecured ratic, loans and achances	11%	18%	14%	કર્યા હતું. તે તે તે તે તે પ્રતિ	21%

(DKKm)	Personal customers	Corporate Second	Personal & corporate	Public	Total
Exposure	4,977	2.899	10,876	1.128	12.004
Loans, advances & guarantees	4,676	4,602	9.277	771	10.048
Collateral	4.315	4.247	8.562	7	8,569
service of collation for stage 3 exposures.	ਹੈ।	83	181	0	181
Impairments	52	128	181		181
Unsecured [of exposures]	697	1,668	2,365	1.121	3,486
Unsecured (loans. achances and guarantees)	522	600	1,461	765	2.226
Unsecured ratio	14%	28%	22%	89%	29%
Unsecured ratio, loans and advances	11%	20%	16%	ਰੇਰੇ ਹੋਵਿ	22%

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Collateral		Table 5
	2024	2023
Cars	2%	2%
Real Estate	87%	83%
Aircrafts & Ships	10%	11%
Other	2%	5%
Total	100%	100%

Distribution of past due amount								Table 6
	2024					2023
(DIOKm)	Exposure	Past due 10001	Past due > 90 clays	Total balance with pass cur	Exposure	Past due 1000	Past due > 90 days	Total balance with pass clud
Portfolio without waakness [3, 23]	7.588	179	0	1,319	7.167	17	0	1,011
Porfolio with some weakness (2b, 2b)	3,436	12	0	1,011	4.317	19	1	1,325
Porfolio with significant weakness (2c)	323	1	0	79	181		0	107
Portfolio with impairmentiprovision (1)	419	5	2	230	260	11	7	188
Portfolio without individual clias sincation	207		0	B	81	0	0
Total	11,973	198	2	2,646	12,004	47	1	2.610
Past due in %of exposure		1.7%	0.0%			0.4%	0.1%

Loans and advances specified by maturity		Table 7
(DKKm)	2024	2023
On demand	536	317
3 months and below	258	446
3 months to 1 year	003	1.115
Over 1 year to 5 years	2.281	2.157
Over 5 years	5,209	4,848
Total	9.086	8,883

As shown in table 6, DKK 2m is more than 90 days past due. The Group tests the entire loan portfolio for impairment four times per year. The Group's impairments reflect the expected credit loss impairment model in IFRS 9 and Executive Order on Financial Reports for Credit Institutions and Investment Firms, etc. as valid in the Faroe Islands. The expected credit loss is calculated for all individual facilities as a function of the probability of default (PD), the exposure at default (EAD) and the loss given default (LGD). All expected credit loss impairments are allocated to individual exposures. For all exposures with objective indication of being subject to an impairment in creditworthiness, stage 3 exposures, the Graup determines the expected aredit losses individually.

If a loan, advance or amount due is classified to stage 3, the Group determines the individual impairment charge. The charge equals the difference between the carrying amount and the present value of the estimated future cash flow from the asset, including the realisation value of collateral, in three weighted scenarios - the base case, positive and negative scenario. Loans and advances not classified as stage 3 are classified in stage 1 or stage 2 and the expected credit loss is calculated in accordance with the function described above and then impaired.

As the expected credit loss, especially for exposures categorised as stage 1 or 2, primarily are based on historical information, the Executive Management and the Board of Directors may add a discretionary increase in impairments to cover credit losses expected not to be

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covered by the calculations described above, e.g. due to an expected or emerging economic crisis in one or more sectors and/or in one or more geographic locations.

Table 8 provides a breakdown of individual impairments, stage 3, and statistical based impairments, stage 1 and 2 including DKK 101.5m impaired at the Executive

Management's discretion. Table 9 shows a breakdown of the mentioned DKK 101.5m impaired.

A further breakdown by maturity of loans and advances can be found in table 7. There are no aggregated data on the collateral behind matured loans and advances.

Specification of individual and statistic impairments					Table 8
2024					2023
OKKm	Loans gross	Impairments	Digkm	Loans gross	impairments
Individual impairments:			Individual impairments:
Farge Islands	200	21	Farce Islands	127	22
Denmark	0	0	Denmark	1	2
Greenland	190	38	Greenland	112	32
Total	390	59	Total	240	55
Statistic Impairments:			Statistic impairments:
Fame Islands	7,549	70	Farce Islands	7,417	81
Denmark	0	0	Denmark	0	0
Greenland	1,324	48	Greenland	1,403	45
Total	0,873	119	Total	8,820	126

Distribution of impairments at the Executive Management's discretion					Table 9
2024
(DKKm)
Country / Stage	1	2	2w	3	Total
Farce Islands	44.7	17.2	0.0	0.0	620
Greenland	29.7	ਰੋ ਲਿ	0.0	0.0	39.5
Total	74.4	27.0	0.0	0.0	101.5
2023
(DKKm)
Country / Stage	1	2	2w	3	Total
Faron Islands	51.8	17.8	0.0	0.0	69.7
Greenland	18.1	12.3	0.0	0.0	30.3
Total	69.9	30.1	0.0	0.0	100.0

Market Risk

Organisation

The Bank has established an Investment Working Group to monitor the financial markets and continuously update its view on the financial markets. The Investment Working Group meets once a month to discuss the outlook for the financial markets and make an update

containing a recommendation on tactical asset allocation to the Investment Group. The Investment Working Group

refers to the Investment Group. Participants in the Investment Group are the CEO, the CFO, the CIO, the Financial Manager, the Risk Manager and Treasury. Based on the recommendation, the Investment Group

Confidential, Mikkelsen, Arne, 01-04-2025-14:15:223ocument.

decides whether to retain or revise the Bank's official outlook. The Investment Group's decisions are communicated throughout the organization and form the

basis for all advice provided to customers and included in the Bank's official Markets Update.

Definition

The Group defines market risk as the risks taken in relation to price fluctuations in the financial markets. Several types of risk may arise, and the Bank manages and monitors these risks carefully.

Føroya Banki's market risks are

• . Interest rate risk: risk of loss caused by a upward change in interest rates
• Exchange rate risk: risk of loss from positions in . foreign currency when exchange rates change
• · Equity market risk: risk of loss from falling equity values

Policy and responsibility

The Group's market risk management relates to the Group's assets, liabilities and off-balance-sheet items. The Board of Directors defines the overall policies / limits for the Group's market risk exposures, including the overall risk limits. The limits on market risks are set with consideration of the risk they imply, and how they match the Group's strategic plans. On behalf of the Executive Board, the Group Risk Committee is responsible for allocating the market risk to the Group's major business areas.

Reporting of Market risk
	Board of Directors
Monthly	Overview of
	- Interestrials
	· Exchange risk
	- Equity market risk
	= Liquidity risk
	- Deposits
	Executive Board
Monthly	Overview of
	- Interestrials
	· Exchange risk
	- Equily market risk
	= Liquidity risk
	- Deposits
Daily	Overview of
	- Funding risk
	- Deposits
	- Liquidity risk

Control and management

The stringent exchange rate risk policies support the Group's investment policy of mainly holding listed Danish government and mortgage bonds. The Finance Department monitors, controls and reports market risk to the Board of Directors and the Executive Board on a daily and monthly.

Market risk

Table 10 shows the likely after-tax effects on the Bank's share capital from likely market changes.

• All equity prices fall by 10%
• . All currencies change by 10% (EUR by 2,25%)
• · Foreign exchange risk
• · Upwards parallel shift of the yield curve of 100 bp

The calculations show the potential losses for the Group deriving from market volatility.

Interest rate risk

The Group's policy is to invest most of its excess liquidity in LCR compliant bonds. Therefore, Føroya Banki holds a large portfolio of bonds, and most of the Group's interest rate risk stems from this portfolio.

The Group's interest rate risk is calculated according to the requirements of the Danish FSA. The interest rate risk is defined as the effects of a one percentage point. parallel shift of the yield curve. Føroya Banki offers fixed rate loans to corporate customers. The interest rate risk from these loans is hedged with interest rate swaps on a one-to-one basis. Table 11 shows the Group's overall interest rate risk measured as the expected loss on interest rate positions that would result from parallel upward shift of the yield curve.

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Likely after tax effects from changes in markets value					Table 10
	Change	2024	% of Core Capital	2023	% of Core Capital
Equity risk DKKm (+1-)	10%	23	1.3%	23	1.2%
Exchange risk Dikkm (+1-) EUR	2.25%	0	0.0%	0	0.0%
Exchange risk DKKm (+/-) Other currencies	10%		0.03%	0	0.0%
Exchange risk, Total			0.0%		0.0%
Interest rate risk DKKm (paraliel shift)	100 bp	16	0.9%	12	0.7%

	Market Risk Management
Level	Board of Directors	Executive Board	CPO	Phancial Manager Markets Treasury
album do	Defines the council market risk
Tactical		Delegating risk authorities		Managing the Bank's		Implementing
		to relevant disktions.		Charmer risk
Operational			Controlling & Reporting	Manitoring	Trading

Exchange rate risk

Føroya Banki's base currency is DKK and assets and liabilities in other currencies therefore imply an extra risk

as they may vary in value over time relative to DKK. Føroya Banki's core business as a commercial bank makes it necessary to have access to foreign currencies and to hold positions in the most common currencies. Given the uncertainty of currency fluctuations, Føroya Banki's policy is to maintain a low currency risk. The Group's exchange rate risk mainly stems from customer loans / deposits in foreign currency. The exchange rate risk on the issued bands of SEK 300m are effectively hedged using a matching cross currency swap.

Interest rate risk before tax broken down by currency	Table 11
(DKKm)
2024	2023
DKK 20	15
8EK 0
EUR 0
Total 20	15

Foreign exchange position		Table 12
(DKKm)
	2024	2023
Assets in foreign currency	14	12
Liabilities and equity in foreign	0
currency
Exchange rate indicator 1	14	12
Exchange rate indicator 2	0

Equity risk		Table 13
(DKKm)
	2024	2023
Shansfunit trust certification listed on the Copenhagen Stock Exchange	08	90
Other shares at fair will be sed on the fair-value option	188	190
Total	286	200

Equity market risk

Føroya Banki's stringent risk policy restricts equity positions to listed and liquid shares and shares related to the Danish banking sector. The Group occasionally holds unlisted shares, for example in connection with taking over and reselling collateral from defaulted loans. The Group has acquired holdings in a number of unlisted banking related companies. These are mainly investments in companies providing financial infrastructure and financial services to the Bank. For some of these investments, Føroya Banki's holding is rebalanced yearly according to the business volume generated by the Bank to the company in question.

Liquidity Risk

Definition

• · Liquidity risk is defined as the risk of loss resulting from
• · Increased funding costs
• · A lack of funding of new activities
• · A lack of funding to meet the Group's commitments

The Board of Directors has defined the Bank's liquidity limits for the daily operational level and for budgeting plans. The Danish FSA has designated Føroya Banki as a systematically important financial institution (SIFI).

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With a liquidity coverage ratio (LCR) of 337.4 % at 31. December 2024 Faroya Banki's liquidity position remains robust.

Control and management

Liquidity risk is a fundamental part of the Group's business strategy. The Group's liquidity is monitored and managed by the Finance Department daily in accordance with the limits set by the Board of Directors and reported to the Executive Board by the Finance Department. A liquidity report with stress tests is submitted to the Executive Board and the Group Risk Committee monthly. Markets has the operational responsibility for investment of the liquidity, while Finance Department is responsible for monitoring, controlling and reporting on liquidity. The Group has implemented contingency plans to ensure that it is ready to respond to unfavorable liquidity conditions.

Exposures related to trading and investment activities		Table 14
(DKKm)	2024	2024
Bonds at fair value	1.757	1,397
Derivatives with positive fair value	23	39
I quity	265	280
Total	2.066	1.716

Operational liquidity risk

The objective of the Group's operational liquidity risk management is to ensure that the Group always has sufficient liquidity to handle customer transactions and changes in liquidity. Faroya Banki complies with LCR requirements and therefore closely manitors the bond portfolio with regards to holding sufficient LCR compliable bonds.

Liquidity stress testing

Føroya Banki has incorporated a liquidity stress testing model based on LCR. This model is used at least monthly to forecast developments in the Bank's liquidity on a 1-12-month horizon. The test is based on the business-as-usual situation and in a stressed version with outflows from undrawn committed facilities and other stress measures. If the target is not met, the Executive Board must implement a contingency plan.

Twelve-month liquidity

The Bank's 12-month funding requirements are based on projections for 2024 and takes the market outlook into account

Structural liquidity risk

Deposits are generally considered a secure source of funding. Deposits are generally short term, but their historical stability enables Føroya Banki to grant customer loans with much longer terms e.q. 25 years to fund residential housing. It is crucial for any bank to handle such maturity mismatch and associated risk, and therefore it is essential to have a reputation as a safe bank for deposits. Table 15 shows assets and liabilities including interests by a maturity structure. To minimize liquidity risk, Føroya Banki's policy is to have strong liquidity from different funding sources.

Funding sources

The Group monitors its funding mix to make sure that there is a satisfactory diversification between deposits, equity, and loans from the financial markets.

Collateral provided by the Group

As customarily used by financial market participants Faroya Banki has entered into standard CSA agreements with other banks. These agreements commit both parties to provide and daily adjust collateral for negative market values. The bank with negative value exposure receives collateral. Thereby reducing counterparty risk to daily market fluctuations of derivatives and pledged amount. Because of these agreements Føroya Banki at yearend 2024 had pledged bonds and cash deposits valued at DKK 21m under these agreements. Faroya Banki also provides collateral to the Danish central bank to give the Bank access to the intraday draft facility with the central bank as part of the Danish clearing services for securities. At yearend 2024, this collateral amounted to DKK 27m

Liquidity Management
	Board of Directors	Executive Board	CFO	Financial manager	Treasury
	Objective Defines the objectives for liquidity policias
Tactical		Suffclent and well diversified funding		Planning	Providing background matena s
Operational			Controlling & Reporting	Monnoring	Establish contact

Revelaining maturity, Incl. Interests						Talle 15
Pace 1 (2001
					Microul Eloted
2004	Agreema 170	1-3 recent	3-12 гвоев'я	Illors than I your	maturily	Total
Cash in hand and demand begalls with bearly hand ril rises	2.702.143					2,702,143
Due from Credit instaution	311/410					311,478
Loans and advances	536,706	264 768	029.974	10.625.543		12,254,504
Bornés			671.662	018.129		1,588,788
Shidded					285,845	285,845
Detratives	23,246					23,248
Other Anyon	68,169	34.551	21.818	11,253		132.792
Total asseed	3,637,731	216-5.32%	1,532,454	11,554,524	285,845	17,286,888
2034
Due in credit institutions and can'tral honks	41,732		2017000	604 304		046,399
Delpos Inc	4,747,297	1,051,499	1,000 8,996	1668.300		10,054,083
complex partis		191.263		944.577		1,135,458
Offer liabilities	68.600	73.358	94.72%			235,764
Lease LAC-lifers	412	804	4.066	76,879		83,204
Provisions for liabilities				1.846		1.046
Saberclinated Each				104.281		114.281
Total	6,810,150	1,317,040	2,044,153	2,101,788		12,633,133
Off-holonce showi liberia
Financial Quanarieres	137/019					177/078
Other commitments	401 665					439,665
Text pr	605,744					645,744
Karnaining maturity, incl. Interests
Class 1 3000
2013					Mithout fixed
	0-1 months	1-3 months	0-12 months	More than 1 year	maturity	Total
Cash in hand and dem and teppells with central banks	1,795,718					1,795,718
Dua from Grodit institution	264 050					260.058
because and deverses	317,268	44 853	1,154,918	10.000.874		12,033,031
Bands			265,106	971.404		1,243,503
Shores					194,358	194,388
Delvolves	44,897					44,697
Off as Assistant	45,271	15.298	27,413	1.365		97,444
Total ossets	2.463.424	465,254	1,447,428	11,087,648	194,364	15,653,832
2023
Due is credit institutions and cantral banks	58.391		129,829	060.453		757,673
Deposits	4.821 01/1	MATER	842,103	0.10 062		8,132,888
persy perfill				1,227,428		1,227,423
Other liabilities	34.839	48.698	68.263			173,804
Loase Bookmos	217	Nº4	2.094	64.278		87,848
Phonisians for liabilities				1,866		1.066
Suberclinated debt				121,864		124,864
Total	6,018,058	400,871	1,042,688	2,484,882		11,082,771
Off-holonce shoet ibeaus
Pinancial Duanantees	177,200					177,202
Other committeners.	GT1.800					673,800

Insurance Risk

Insurance risk in the Group consists of non-life and life risks. The Group has a non-life insurance company, Trygd and a life insurance company, NordikLiv.

Risk exposure for an insurance company can be defined as a contingency event, chain of events or bad management which can by itself, or by accumulation,

seriously affect the annual results of the insurer and in extreme cases make it unable to meet its liabilities. Risks

for an insurance operation are typically categorized as Insurance risk and market risk. Among other risks are

currency exchange risk, liquidity risk, counterparty and concentration risk and operational risk.

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Careful and prudent risk management forms an integral part of any insurance operations. The nature of insurance is to deal with unknown future incidents resulting in a payment obligation. An important part of managing insurance risk is reinsurance. The Group must protect itself against dramatic fluctuations in technical results by entering into agreements on reinsurance so that the risk of the Group having to pay claims from its own funds is reasonable in relation to the risks assumed, their composition and the company's equity. This is done with statistical spread of risks and accumulation of funds, quantified by statistical methods, to meet these obligations.

Likely effects from changes in markets value			Table 16
(DKKm)	Changa	2024	7012
Equity risk (+/-)	10%
Exchange risk (*i-) in euro	2.25%
Exchange risk (+i-) other currency	10%
Interestrate risk (parallel shift) - Trugd	100 bp	53	3.6
Interest rate risk (parallel shift) Total	100 bp	6.5	5.4

Distribution of Trygd's portfolio		Table 17
	2024	2023
Commercial lines	35.2%	35.7%
Parsonal lines	64.8%	64.3%

The Group has defined internal procedures to minimize the possible loss regarding insurance liabilities. The insurance companies evaluate their insurance risk on a regular basis for the purpose of optimizing the risk profile. Risk management also involves holding a welldiversified insurance portfolio. The insurance portfolio of Trygd is well diversified in personal and commercial lines (see table 17).

Insurance risk

The insurance companies cover the insurance liabilities through a portfolio of securities and investment assets exposed to market risk.

The insurance companies have invested in investment securities and cash and cash equivalents in the effort to balance the exposure to market and currency risk (see table 18).

Capital requirements

The effects on Føroya Bankl's solvency, due to the ownership of the insurance companies Trygd and NordikLiv, are considered low. According to CRR the risk weighted assets has increased DKK 348m. The negative effect on the Total capital ratio thus is 1.2% points.

Financial assets linked to insurance risk in Trygd		Table 18
(DKK 1.000)	2024	2025
Listed securities on slock exchange	260,788	227,865
Accounts neceivable (lotal lectimated provisiones)	6.622	3.275
Cash and cash equivalents	4.243	1.625
Total	261,662	232,838

Plun-off gains/losses in Tirygd					Table 199
(1942) (1) 424-2000
Simil Burl	2014	3333	3031	1811	200 200
mobile	144	+0.16	3.31	-4.07	0-87
Privato	2.646	0.00	-0.42	-4.06	0.34
Accidents	-1.08	3.47	-3.95	-10.62	8.50
Autorically	-2.7%	-4.40	-2.79	4.45	3.34
1-2411-0	0.97	-2.98	-3.45	-0.9%	-1.23

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Document ID: D91C7BB1A06245CEA4F12CA4607C4FF0

Contractual maturity for the insurance segment						Table 20
(DKK 1,000)
2024	On demand	0-12 months	1-5 years	Over 5 years	No stated maturity	Total
Assets
Securities	250,788					250,788
Reinsurance assets		6,622				6,622
Accounts receivables		3,473				3,473
Restricted cash
Cash and cash equivalents	4,243					4,243
Total financial assets	265,030	10,095				265,125
Liabilities
Technical provision		159,268				159,268
Account payable		15,020				15,020
Total financial liabilities		174,288				174,288
Assets - liabilities	255,030	-164,193				90,837
Contractual maturity for the insurance segment (DKK 1,000)
2023	On demand	0-12 months		1-5 years Over 5 years	No stated maturity	Total
Assets
Securities	227,865					227,865
Reinsurance assets		3,275				3,275
Accounts receivables		3.880				3.880
Restricted cash
Cash and cash equivalents	1,695					1,695
Total financial assets	229,560	7,255				236,816
Liabilities
Technical provision		138,635				138,635
Account payable		16,837				15,837
Total financial liabilities		154,472				164,472
Assets - liabilities	229,540	-147,216				82,344

Trygd non-life insurance

The Board of Directors and Executive Management of Trygd must ensure that the company has an adequate capital base and internal procedures for risk measurement and risk management to assess the necessary capital base applying a spread appropriate to cover Trygd's risks.

To meet these requirements Trygd's policies and procedures are regularly updated. Risk management at Trygd is based on several policies, business procedures

and risk assessments which are reviewed and must be approved by the Board of Directors annually.

The size of provisions for claims is based on individual assessments of the final costs of individual claims, supplemented with at least annual statistical analyses.

The company's acceptance policy is based on a full customer relationship, which is expected to contribute to the overall profitability of the Group. In relation to acceptance of corporate insurance products, the Board

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of Directors has approved a separate acceptance policy, which is implemented in the handling process of the corporate department.

Reinsurance is an important aspect of managing insurance risk. The Group must protect itself against dramatic fluctuations in technical results by entering into agreements on reinsurance to make the risk of the Group having to pay claims from its own funds reasonable in relation to the size of the risk assumed, the risk composition and Trygd's equity.

Trygd has organised a reinsurance program which ensures that e.g. large natural disasters and significant individual claims do not compromise Trygd's ability to meet its obligations. For large natural disasters, the total cost to Trygd in 2025 would amount to a maximum of DKK 7m in addition to reinstatement costs. The reinsurance program is reviewed once a year and approved by the Board of Directors. Trygd uses reputable reinsurance companies with strong ratings (Aclass ratings at least on S&P or equivalent) and financial positions.

Trygd's Claims Department is responsible for handling all claims and only claims employees deal with claims matters or advise claimants in specific claim cases. Technical provisions to cover future payments for claims arising are calculated using appropriate and generally recognised methods. Insurance provisions are made to cover the future risk based on experience from previous and similar claims. These are updated on a yearly basis taking realized costs of claims into account and the Claims Department is continuously updating and monitoring the claim provisions. These methods and analyses are subject to the natural uncertainty inherent in estimating future payments, both in terms of size and date of payment.

Tryad has performed a sensitivity analysis regarding insurance conditions illustrated in table 21 below.

Sensitivity analysis	Table 21
DIOK 1,000	2024	2023
Effect of 1% change in:
Combined ratio [1 percentage point]	+1-2.565	+1-2.689
- Commercial	903	િલનું જ
« Private	1.652	1.725

Trygd's investment policy is restrictive and Trygd holds mainly government bonds and Danish mortgaged backed bonds limiting the primary financial risk to interest rate risk. However, a limited portion of the funds can be placed in shares through equity funds. There is no exchange rate risk, as all investments are based in DKK. Trygd has invested in investment securities and cash and cash equivalents in the effort to balance the exposure to market and currency risk.

NordikLiv - Life insurance

NordikLiv issues requiar life, disability and critical Illness insurance covers in the Farcese market. The primary risks of NordikLiv are financial risks, insurance risks, operational risks and commercial risks.

NordikLiv's investment policy is restrictive and at present NordikLiv holds mainly government bonds and Danish morigaged backed bonds limiting the primary financial risk to interest rate risk. However, a small portion is allocated to equities through equity funds. There is no exchange rate risk, as all investments are based in DKK,

In respect of insurance risks these are, due to the company's limited product portfolio, mainly related to death, disability, costs and the occurrence of a catastrophe. To mitigate these risks NordlikLiv's underwriting policy is aimed at securing that only risks that can be characterized as normal for the relevant area of insurance are accepted.

Further, together with the sister company Trygd, NordikLiv is reinsured against larger claims, e.g. occurrence of a catastrophe in a Group reinsurance life policy. The combined deductible is DKK 3m with regards to reinsurance.

Operational risks are the risks of suffering an economic loss due insufficient or the complete lack of internal procedures, human or system-based errors or due to external events, including a change in legislation.

Commercial risks are related to the uncertainty of the development of the Farcese life insurance market, change in customer behavior and demands, a shift in technology and reputational risk.

To mitigate operational and commercial risks NordikLiv has entered into cooperation agreements with Forenede Gruppelly. Trygd and Føroya Banki providing the company with expert resources within production, administration, internal audit, risk management and compliance. In the bank's continuous focus on operating as efficiently as possible, the bank reached an agreement in 2024 with the ife insurance company LIV in the Farge Islands, where the bank will broker life insurance products for LIV. We are pleased with the agreement, and it will result in NordikLiv being dissolved as a separate company in 2026. The Group's customers, however, will continue to receive excellent advice and life insurance products at competitive prices.

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D91C7BB1A06245CEA4F12CA4607C4FF0

Highlights, ratios and key figures, five year summary - Føroya Banki Group

Hote 58 Highlights

11.00			Irustos a
DIRTY NAME	2004	2000	34/20	2000	2004	2010
Not interest income	442,284	10-00-05-2	115	118.004	2007090	279,830
Dridents From shares and other innestranty	11,900	6.115	। স্বৈয়	6,475	8,429	NY
Nat Fax and convision incurre	18.752	11-1.680	14	68.140	24/860	538,0000
but incept and For Inc.		911.258	1.55	\$68.90	291.285	341,984
Now Interprises Poece	41.74	41/92	1.24	34,133	21/09/2	40. 10.0
into wat and fee income and income frominsurance activities, not	160.041	XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX	100	400-204	301,304	200,531
Morial natus adjustracts	41.202	107 977 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 117 11	12	26,077	4.300	ার করে
	0-484	6.204	1.54	147	41,000	7,066
Ohat sperating insure
Buff cost and administrative expenses	249,269	347612	1 (2	200-60	237 1961	244.334
Impany therges an buns and advances and	1.057	40.043	14	-6.639	NAME	4.663
Nat profit continuing operations	SECURES	301,650	1.05	964,800	181,366	183, 990
Nat profit discuntment country					78,060	KI,KB
Nel profit	349,420	367,636	4 (an	464,480	271,140	168, 104
Louns and advances	11,066,362	1.082.665	112	11.060.040	7,634,000	7,887,904
Bends at fall value	4,361,200	4,800,686	124	1,604,453	4,880,666	4,672,634
Marghis assets	હતાવન	1,100	500	2.402	1.000	2,482
Associate frest for sure	3.78	0		34,720	ర్తా	4,400
Anadian Françosans groupe classified as Feld For ade		0		B	0	2,010,040
Total Mands	14,111,844	10,844,820	112	11, 101, 0172	11,788,140	11,180,301
Antique to crime on crimine frei BURO's and central partified parilias	EX2/400	718 100	115	856.117	E31.000	27,814
bro.org homis at armysisani cost	061 180	884, 114	14	141.784	248,058	0
Oxposits and-other debt	100007048	ILPEL TW	115	1.905-580	7,099,059	7,720,406
Laberses dractly ansociated with assembly distribution classified.		0			0	6,528,064
	1,646-200	1,890,000	112	1,796,857	LERS 050
Folly Family cipins, and they						2.2016
Ration and key Sgures	Del. 27	Dec. 21		Dol. 27	Dec. 21	Dic. 31
	13	3012		127	3787	2010
Boronia
Todal capital, P.O. ITPSI, capital, 1804, Th	28.3	41.7		19.0	27-4	34.4
Total Lagrild Mis, 16	25.2	27-4		24.8	37.5	24.4
The 7 capital since To	23.8	38-3		23.9	20-0	24.1
CET 1 GAGAN	22.8	31.8		21.4	11.8	23.4
NYS. DIC HE	118	4.812		TIM	4.841	1.734
Profitability
Refure an shareholders' mady liebers last, %	18.8	30.8		1-2.8	11.8	14
A. Tot wee dige yabbits was an explain	15.0	45.9		.8.6	42.6	26
Income . Dest rado	25	2.6		21	25	46
Gast (income, % Jax 1 value sellusim, and imparmunts).	40.5	44.7		58.8	60.8	64.1
figure on associa	2.4	24		1.4	2.5	40
Market rink
Phyrent rote risk. %	17	04		4.9	-0.8	માં તેને
Голед екстопри роман, "Б-	0.0	05		0.7	0.8	10
Consign exchange risk. %		00			00	0.0
Liquidity
by and advances plus impanies cranges on 5 of
Occupants	16.8	104.5		10.2	995	104.4
Not Stable Funding Rido (NBFP). %	154.5	154.0
Uguldita Covensga Ratie (1.0%, %	500 4	1952		295.2	494	224.4
Cranill rink
Large exponses as % of napital have	13.6	21-5		28.9	24.6	2018
impainment and pnovisioning rules. N.	11	18		1.8	24	=
Victor off and importunits rolly. It	0.8	01		-2.8	Out	41
Share of arresurity. Bus an a high intensionates have been resissed. %.	0.2	0.2		42	0.2	61
Grearthon bans and ackunnum. 1.	23	0-0		6.8	0.2	312
earing of loars and advances. 3		4.8		46.83	AT	3.3
Share S
	12.4	82.8		17.2	261 6	17.4
Eunings per share shor has, OSP.
Book natus par share, DKK	246.8	400-2		460.7	2451	Still
Preposed dividend par shans OBK	ીજી ત	00		િત મ	40.2	4.0
Market price per share. DOS	652 B	164.5		136.0	440-5	4610
Market price ( openings per share [BC).	5.0	2.0		2.0	49	6.7
literial price i book value per shore Offic	12	0-2		0.7	07	માં જે
(1) 854 1
mber of full-lime employees, and af peris		000			195	H

O Pagarding the implementation of IFAS 77 the Nythights in JS28-3007 have nit pees corecred.

104

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Highlights, ratios and key figures, five year summary - PJF Føroya Banki

Note So Inlightights,
(COULT) (2006 1/000)	2004		Includes 2013 24 32	2011	3007	1000
Mi Pianosi insure	442,281	538,462	100	204,630	261,118	216,691
Not fee and commision income	69,774	82.454	ਿ	104,735	91,154	11,496
Pled into will fee income	144,833	5°13, 150	100	300,809	30.1000	314,369
Monton a direct migramment	11.243	Brond Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Book Boo	17	28,011	8.813	:13,833
Other operating incomp	2,814	2.00%	119	5.452	ની ટેન્ડકા	2.104
seat can and administration for any finds from	229,430	234,900	100	378,393	211.055	225,740
Concessionizes and researces of products of productions and occupania	8.700	7,228	ロ	3,111	1.088	0,841
Inpormant changes on loans and advances etc.	-1.05	-48.049	-3.8	-48.639	-76/08/1	1.067
Include Florida enclaned and submidery undertisement	00.019	30.044	100	29,752	1.004	14.081
Plet profit continutes open adona	119,611	2017,822	104	Hill act	183,304	100,100
Nat profit rise continued sporations				0	76.960	65,036
Part BACKED	200,427	200,500	100	154,400	171.548	106,180
Loans and advisions	1,046,382	8,082,055	100	8.083.343	T 824.093	1,800 ,000 ,
Flanch, at For nature	1,848,001	12/04/09/9	178	1448,713	1 ART 60 %	4,366,810
marger minds	1,0004	1,105	64	2,402	10004	SAR
Present from Tronol Joy, Blank	3,201	4		34,300	■	4,400
Assess in droposals proups risessfiel iss hold in tales	0	6		0	=	3,311,840
Cotal sessedes	14,846,465	12.7ML050	415	12.058.877	11 824 664	+7,100,046
A mounts que to credit miniturions and central partical	822,495	178,105	115	058,172	K36 OOR	27,854
been borols at answere in and	661,190	1004, 1.24	10	047,084	3-08/008	C
			445		T 914,185	7,266,724
Oupon43 and other deat	0.044.704 0	6.7mm 000 2		11:20:17000 0	1	8.220.004
спосавя снасту извостивным петнати сверования во привые в Tirlal sharehibbers' mg By	2,000 mm	1,886,608	112		2,031,883	2,211,024
				1,100,000
Rasos and key figures
	Ges. 31	Den. 34		Den. 34	Des. 31	Cas. 31
	2014	100 22		200 02	8000	29.00
Services
Total capital, incl. Infitil, copital, roto. %	24.5	41.5		29.7	29.8	2014
Total napital rudo, 15-	24.2	20.4		24.8	24.8	24 4
Tier 1 copital tatio. 24	519	000		21/2	52.8	24.1
CET replad	23.8	2019		214	2018	ટા જે
HNA, DOL/W	r, 180	4,819		P, THE	1,847	8,774
Profitibility
Philure or sharefishbers' equily Defore Mx, %	13.3	30.5		10.0	11.8	8.3
Pleturn ur shareholders' multy after tax. N	18 18	6.0		8 मे	12.8	ਨ ਵੀ
Moorie Colid (189	25	38		31	27	16
Cast / Penns, Ti- Jewel, natur-selusion and impainments	63 1	44.2		ni 1	68.7	13.3
Pletur it on Missilla				1.4		10
Harbet the
more of the city, in	114	05		19	0.2	8.4
Foreign-skichange position, %	11	்க		01	் க	10
Ponsign exchange risk. N.		0-2		CO	21	11 12
LAUSCRY
Loans and acvances plus impaniners charges as %-of depositi	10.5	104-21		89.0	W.3	104.1
Listailly Covenaje Rolla J.CRJ. 11.	227.4	238.2		221.2	104.4	231.1
Plut Chatsia Plunding Ratis (NSFF), "S-	154.5	954.8
Cry-Bit Fire
Lange exposures an 'is of supplat lune	131	22.0		24.1	28.8	2019
Impairment and provisioning rodo. %	46	1.8		40	2 €	ન છે
Ville-aff and inpainments tatio. %	10	40.5		45	-0.8	-4.1
Share of arroun'in due-on within interest rates have connected, %.	13	0.3		03	0.3	17
Grounth an loans and selvareas, %	28	0-1		60	0.2	-23.2
Gesring of loans and advances	4.4	4.8		4.5	3.7	3.5
184444
Electings per share after tax, DRY	27.4	32.0		112	24 W	17,4
Ouch using per share. Offici	546	100.3		-0.1	1127	200.0
Phoposed driversi per share DRYS	24.5	83		24/0	43.2	8.0
liketed price per share, CROS	1000	164.8		128610	140.8	112.0
libriat price I earnings per share DGK	20	్రామ		19	4.9	8.7
manager price I book value por simple pro-					0.0	11.40
Chine t

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Definitions of key financial ratios

Key financial ratio Earnings per share (DKK)	Definition Net profit for the year divided by the average number of shares outstanding during the year.
Diluted earnings per share (DKK)	Net profit for the year divided by the average number of shares outstanding during the year, including the dilutive effect of share options and conditional shares granted as share-based payments.
Return on average shareholders' equity (%)	Net profit for the year divided by average shareholders' equity during the year.
Net profit for the year divided by average shareholders' equity during the year.	Operating expenses divided by total income (excl. value acjustments and impairments).
Cost/income ratio (%)	Operating expenses divided by total income.
Income/cost ratio (%)	Total income divided by operating expenses.
Solvency ratio	Total capital, less statutory deductions, divided by nisk- weighted assets.
Core (tier 1) capital ratio	Core (tier 1) capital, including hybrid core capital, less statutory deductions, divided by risk-weighted assets.
Core (tier 1) capital	Core (tier 1) capital consists primarily of paid-up share capital, plus retained eamings, less intangible assets.
Hybrid core capital	Hybrid core capital consists of loans that form part of core (ber 1) capital. This means that hybrid core capital is used for covering losses if shareholders' equity is lost.
Total capital	The total capital consists of shareholders' equity and supplementary capital, less certain deductions, such as deduction for goodwill.
Supplementary capital	Supplementary capital may not account for more than half of the total capital. Supplementary capital consists of subordinated loan capital that fulfils certain requirements. For example, if the Group defaults on its payment obligations, lenders cannot claim early redemption of the loan capital.
Risk-weighted assets	Total risk-weighted assets and off-balance-sheet items for credit risk, market risk and operational risk as calculated in accordance with the Danish FSA's rules on capital adequacy as applied in the Faroe Islands.
Dividend per share (DKK)	Proposed dividend for the year divided by the number of shares in issue at the end of the year.
Share price at December 31	Closing price of Føroya Banki shares at the end of the year.
Book value per share (DKK)	Shareholders' equity at December 31 divided by the number of shares in issue at the end of the year.
Number of full-time-equivalent staff at December 31	Number of full-time-equivalent staff (part-time staff translated into full-time staff) at the end of the year.

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Contact details

Head Office

P/F Feroya Banki Oknarvegur 5 P.O. Box 3048 FO-110 Tórshavn Farce Islands Phone: +298 330 330 E-mail: kundi@bankin.fo www.foroyabanki.fo

P/F skr. nr. 10. Tórshavn SWIFT: FIFB FOTX

Føroya Banki is a limited liability company incorporated and domiciled in the Farce Islands.

The company is listed on Nasdaq Copenhagen.

IR contact Rüna Niclasardóttir Rasmussen E-mail: m@bankin.fo Tel. +298 330 330

Branches

Farce Islands

Tórshavn Oknarvegur 5 100 Tórshavn Phone: +298 330 330

Miðvágur Jatnavegur 26 370 Miðvágur Phone: +298 330 330

Klaksvik Við Sandin 12 700 Klaksvík Phone: +298 330 330

Saltangará Heiðavegur 54 600 Saltangará Phone: +298 330 330

Tvøroyri Sjógota 2 800 Tverovri Phone: +298 330 330

Customer Service Oknarvegur 5 100 Torshavn Phone: +298 330 330

Corporate Banking Oknarvegur 5 100 Torshavn Phone: +296 330 330

Markets

Oknarvegur 5 100 Tórshavn Phone: +298 330 330

Ungdómsbankin

Oknarvegur 5 100 Törshavn Phone: +296 330 330

Greenland

Personal Banking Quillerfik 2 3900 Nuuk Phone: +299 34 79 00

Corporate Banking Quillerfik 2 3900 Nuuk Phone: +299 34 79 00

Confidential, Mikkelsen, Arne, 01-04-2025 14:15:029ocument.

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