Føroya Banki Annual Report 2007


Føroya Banki's net profit for 2007 was DKK 180m before tax, which corresponds
to the projections in the 2007 Q3 Interim Report

Net interest and fee income amounted to DKK 339m compared to DKK 275m. This is
a 23% increase. The reason is a large increase in loans and increased fee
income. 

The result from net financials amounted to DKK 364m for 2007, which is a DKK
84m or a 30% increase compared to the 2006 result 

Employee and administrative expenses increased by 34% to DKK 206m in 2007
compared to 2006. The reasons are e.g. expenses in connection with the
establishment of a subsidiary bank in Denmark. 

The Bank's loans amounted to DKK 7.5bn at 31 December 2007, which is a 39%
increase. The increase is mainly funded through long-term loans from financial 
institutions

The Bank's solvency ratio was 17.9% and liquidity was 103% above statutory
requirements 


Outlook 2008

Føroya Banki expects a pre-tax profit for 2008 in the range of DKK 165m - 185m.

Net interest income is expected to increase by 8 -14% in 2008 based on a growth
in the loan portfolio 

Fee income is expected to increase by 8 -12%

Employee and administrative expenses are expected to increase by 0 - 5%, mostly
due to expenses connected with the establishment of a subsidiary bank in
Denmark 

Loans and deposits are expected to increase by 5 -10% in 2008 in correspondence
with the expected economic growth in 2008

Attachments

annualreportfobank2007.pdf presentation_fobank_18february2008.pdf