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Interim Report

First Half of 2024

Management’s Review

Interim Report in headlines

Fine first half-year for the Bank

The BANK of Greenland's profit before tax amounts to DKK

120.1 million for the first half of 2024, compared to DKK 103.0

million for the first half of 2023. The profit before value adjust-

ments and write downs is satisfactory at DKK 127.5 million,

compared to DKK 98.3 million for the previous year.

Lending has increased by DKK 284 million since the end of

2023, amounting to DKK 5,097 million at the end of the first

half-year. It was expected that the continued favourable eco-

nomic development in Greenland would result in positive, but

more subdued growth in the Bank’s lending in 2024. Guaran-

tees decreased by DKK 41 million from DKK 1,774 million at

the end of 2023 to DKK 1,733 million at the end of the first

half of 2024.

Net interest and fee income increased by DKK 38.4 million to

DKK 242.4 million in the first half of 2024 compared to the

same period in 2023. The increase is primarily due to the

record-high lending volume and the development in the level of

interest rates in 2023 and 2024. Compared to the first half of

2023, total loans and guarantees increased by DKK 361 million

up to the end of the first half of 2024.

Total expenses including depreciation amounted to DKK 117.5

million at the end of the first half of 2024, compared to DKK

108.7 million for the same period in 2023.

The increase concerns staff expenses as a consequence of

collective agreement-based adjustments and continued invest-

ment in more employees, as well as other administration

expenses, where the increase can be attributed primarily to IT

expenses.

At the end of the first half of 2024, value adjustments showed a

capital gain of DKK 3.9 million, compared to a capital gain of

DKK 11.0 million for the same period in 2023. Interest rate

trends resulted in weak positive development in the Bank’s

bond holdings, while the currency area also performed posi-

tively. In terms of value adjustment alone, the Bank's holdings of

sector equities performed negatively, even though sector equi-

ties yielded extraordinarily high dividends in 2024.

Impairments of loans and guarantees amounted to DKK 11.3

million in the first half of 2024, compared to DKK 6.3 million in

the first half of 2023. The Bank sees continued satisfactory

creditworthiness in the loan portfolio. In addition to the Bank’s

individual impairment models, a management supplement of

DKK 44.8 million is allocated. In particular, the supplement

covers the risks associated with increasing inflation and interest

rates, and greater cyclical uncertainty.

In the stock exchange announcement of 24 July 2024, the fore-

cast profit before tax for 2024 was adjusted upwards to a

range of DKK 200-240 million, which remains unchanged.

Management’s Review

The profit before tax gives a return of 17.1 per cent p.a. on opening equity after disbursement of dividend.

An increase in loans totalling over DKK 5 billion.

Deposits increased to DKK 6.6 billion.

Core earnings per krone in costs of 1.93 in the first half of 2024, compared to 1.90 in the first half of 2023.

Write-downs and provisions of 0.2 per cent for the period.

Solvency ratio of 25.9 and a capital requirement of 11.0 per cent.