P/F Føroya Banki today announces that it in Q1 2008 intends to establish a
subsidiary bank in Denmark to be named Føroya Bank A/S. The banking market in
Denmark offers an excellent strategic fit for P/F Føroya Banki, in terms of
geographic diversification, products and business culture. Adding to this the
subsidiary bank represents strong synergies with the parent company. The senior
management team will consist of two experienced bankers, Carlo Chow as CEO and
Kim Linnemann as executive director.
Føroya Bank A/S
Føroya Bank A/S will be established with a share capital of DKK 300 mio. This
is to provide the subsidiary with a sufficient capital base to undertake
activities with larger clients.
The share capital will be subscribed with 92 % by P/F Føroya Banki and 8 % by
the management and key employees of Føroya Bank A/S.
Føroya Bank A/S is expected to be established in the Copenhagen area and is
planned to begin operations in early 2008 with an initial staff of approx. 20
employees.
Føroya Bank A/S will focus on Private Banking and project financing. The bank
will offer a good strategic fit with the key elements of P/F Føroya Banki's
strategy by introducing the Føroya Banki brand into a new geographic market,
and by adding new products to the product portfolio of P/F Føroya Banki in the
Faroe Islands in private banking and asset management activities. Furthermore
this will reduce the Bank's exposure and dependence on the Faroese economy.
The parent company, P/F Føroya Banki, has a very solid capital structure, which
provides Føroya Bank A/S with a strong base for expansion.
Management team of Føroya Bank A/S
The management board of Føroya Bank A/S will be Carlo Chow as CEO, and Kim
Linnemann as executive director.
Carlo Chow joins Føroya Bank A/S from a position as managing director of
bankTrelleborg, following a successful IPO on the OMX Nordic Exchange
Copenhagen in June 2007. bankTrelleborg has enjoyed a strong growth during Mr.
Chow's 10 years in charge of the bank. Mr. Chow is 47 years old, and holds a
mas-ters degree in economics from Copenhagen Business School. He has extensive
experience in the Danish financial market following several senior positions in
the Danish financial sector the last 15 years.
Kim Linnemann joins Føroya Bank A/S from a position as senior vice president of
bankTrelleborg, where he has been employed since 2002. He is 46 years old, and
holds a masters degree in economics from Copen-hagen Business School. Mr.
Linnemann has a long history of employment within the Danish financial sector,
amongst other in stock brokerage.
Effects on 2007 forecast of P/F Føroya Banki
P/F Føroya Banki expects that establishment of Føroya Bank A/S will have an
effect on the costs for 2007 by approx. DKK 20-25 mill., which means that P/F
Føroya Banki's net profit before tax and provisions is expected to be DKK
125-140 mill., compared to the previously stated DKK 145-165 mill.
Press conference and conference call with analysts
In connection with this announcement P/F Føroya Banki will hold a press
conference at the Bank's head office at Húsagøta 3, Friday 17 August at 12:00
CET (10:00 Icelandic time).
There will also be scheduled a conference call for analysts covering the Bank
on Friday 17 August at 15:00 CET (13:00 Icelandic time), interested analysts
can obtain access to the conference call by calling IR Officer Brian Smedemark
on mobile +298 230 344.
Further information
Janus Petersen, CEO of Føroya Banki, (+298) 330 330
Brian Smedemark, Investor Relations Officer, mobile (+298) 230 344
Uni Arge, Communications, mobile (+298) 230 472
