Vision
Føroya Banki’s vision is to be the leading bank on the Faroe Islands and internationally to provide our customers with selected financial services.

Mission
Føroya Banki’s mission is to make it financially possible for customers to achieve their full potential.

Strategy
Føroya Banki’s overall financial objective is to generate a competitive return to the shareholders. Shareholder value is created through share price appreciation and dividend payments based on a healthy growth in profit. The Bank seeks to fulfil its ambition by continually developing its core business, streamlining operating processes and optimising capital and risk management.

Strategic objectives
■ Exploiting the growth potential of the domestic market
■ Optimising fee and commission income
■ Optimising business processes
■ Continuous training and education of employees
■ Geographical expansion
■ Optimising capital structure

Values
Føroya Banki’s values are the foundation in all the work done and in the Bank’s relationship with society, customers and employees. The Bank wants to be characterised as Competent, Committed, and Pro active in everything the Bank does.

Outlook for 2009
The outlook for 2009 is based on the Bank’s budget and forecast for 2009.

The Bank estimates a pre-tax profit before value adjustment and before expenses due to the Danish state-funded guarantee scheme to be within the range of DKK 165–195m.

Due to an expectation of stable interest margins compared to Q4 2008 and a stable volume in lending, the Bank estimates growth in net interest and fee and commission income in the range of 0–5%.

The Bank expects a slowdown in the Faroese economy, which will increase the probability of impairments on loans. The level of impairments is uncertain, but the Bank projects that the impairments will stay on the same level as in 2008.

The Bank participates in the Danish government’s guarantee scheme from October 2008, which affects the Bank’s costs directly through a fee paid to the government and an obligation to participate in extra payments, if other participating banks go bankrupt in 2009. Due to the fact that the potential costs are considerable, but at the moment uncertain, the outlook for 2009 does not include these costs.

The Bank’s liquidity is good and is expected to remain at a comfortable level in 2009.

The Bank has a relatively high solvency ratio of 21% and due to the estimated outlook for 2009, the Bank estimates the solvency ratio to increase in 2009.