Grønlandsbanken A/S
CVR no. 80050410
Notification to Nasdaq OMX Copenhagen
10/2022
Quarterly Report
Q1 2022
Quarterly Report
Q1 2022
1
Management’s Review 2
Report for Q1 in headlines 2
Financial highlights for Q1 2021 4
Management's Review, Q1 2022 5
Management statement 10
Income statement and statement of comprehensive income 12
Balance sheet 13
Statement of changes in equity 14
Overview of Notes 16
Notes to the Quarterly Report 17
Contents
Quarterly Report
Q1 2022
Management’s Review
2
Report for Q1 in headlines
Satisfactory Q1 for the BANK of Greenland
The BANK of Greenland’s profit before tax amounts to DKK
29.6 million for Q1 2022, compared to DKK 40.2 million for
Q1 2021. The profit before value adjustments and write-
downs is satisfactory at DKK 40.9 million, compared to DKK
37.1 million for the previous year.
Lending has increased by DKK 121 million since the end of
2021, amounting to DKK 3,905 million at the end of Q1. At
the start of 2022, it was expected that the favourable
economic development in Greenland would result in positive
development in the Bank’s lending. Guarantees increased by
DKK 4.5 million from DKK 1,781 million at the end of 2021 to
DKK 1,786 million at the end of Q1 2022.
Net interest and fee income increased by DKK 2.4 million to
DKK 88.5 million in Q1 2022 compared to the same period in
2021. The increase is due, among other things, to the
improvement in negative deposit interest rates and fees and
commission from the pension and investment area.
Total expenses including depreciation amounted to DKK 49.2
million at the end of Q1 2022, compared to DKK 49.3 million
for the same period in 2021.
The increase in medium-term and long-term interest rates and
the general market turmoil meant that value adjustments at the
end of March 2022 resulted in a capital loss of DKK 10.7
million, compared to a capital gain of DKK 3.1 million for the
same period in 2021. The Bank’s sector shareholdings and
currency area developed positively in Q1, while the Bank’s
bond holdings generated capital losses.
Impairment write-downs on loans and guarantees decreased by
DKK 0.2 million from Q1 2021 and amounted to a modest
DKK 0.7 million for Q1 2022. The Bank sees continued
satisfactory creditworthiness in the loan portfolio. The impact
of Covid-19 on Greenland’s society is moderate, and there are
signs of positive development in tourism in 2022. The Russian
invasion of Ukraine has and is expected to continue to have a
significant impact on e.g. goods supplies and inflation across
Europe. So far, no significant effect can be seen in Greenland.
The Bank does not have direct exposure to Ukraine or Russia.
On this basis, the Bank reduces the Covid-19 management
reserve, but maintains a significant management reserve to
counter risks.
In the Annual Report for 2021, the forecast for the year’s
profit before tax was estimated at an interval of DKK 120-140
million, which remains unchanged.
Management’s Review
The profit after tax gives a return of 13.5% p.a. on opening equity after disbursement of dividend.
Lending and guarantees increased by a total of DKK 126 million to DKK 5.691 billion.
Deposits increased to DKK 5.5 billion.
Core earnings per krone in costs of 1.83 in Q1 2022, compared to 1.77 in Q1 2021.
Write-downs and provisions of 0.01% for the period.