The BANK of Greenland
CVR no. 80050410
Notification to Nasdaq OMX Copenhagen
12/2023
Quarterly Report
First
Half of 2023
Quarterly Report
First Half of 2023
1
Management’s Review 2
Interim Report in headlines 2
Financial highlights for the first half of 2023 4
Management's Review, first half of 2023 5
Statement by the Management 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 Interim Report 17
Contents
Quarterly Report
First Half of 2023
Management’s Review
2
Interim Report in headlines
Excellent first half-year for the Bank
The BANK of Greenland's profit before tax amounts to DKK
103.0 million for the first half of 2023, compared to DKK 45.8
million for the first half of 2022. The profit before value
adjustments and write-downs is satisfactory at DKK 98.3
million, compared to DKK 73.1 million for the previous year.
Lending has increased by DKK 285 million since the end of
2022, amounting to DKK 4,639 million at the end of the first
half of 2022. The economic development in Greenland
continues to be favourable, with positive development in the
Bank's lending. Guarantees decreased by DKK 104 million from
DKK 1,934 million at the end of 2022 to DKK 1,830 million at
the end of the first half of 2023.
Net interest and fee income increased by DKK 36.2 million to
DKK 204 million in the first half of 2023 compared to the same
period in 2022. The increase is primarily due to the record-high
lending volume and the development in the level of interest
rates in 2022 and 2023. Compared to the first half of 2022,
total loans and guarantees increased by DKK 629 million up to
the end of the first half of 2023.
Total expenses including depreciation amounted to DKK 108.7
million at the end of the first half of 2023, compared to DKK
97.8 million for the same period of 2022.
The increase concerns personnel expenses as a consequence of
increases due to collective agreement-based adjustments and
an increase in the number of employees, as well as other
administrative expenses, where the increase can be attributed
primarily to IT costs and a few larger one-off cost items.
At the end of the first half of 2023, value adjustments show a
capital gain of DKK 11.0 million, compared to a capital loss of
DKK 25.2 million for the same period of 2022. Th new interest
rate trends resulted in positive development in the Bank’s bond
holdings. Similarly, the Bank’s sector shareholdings also
performed positively.
Impairments of loans and guarantees amounted to DKK 6.3
million in the first half of 2023, compared to DKK 2.1 million in
the first half of 2022. The Bank sees continued satisfactory
creditworthiness in the loan portfolio. In addition to the Bank’s
individual impairment models, a management supplement of
DKK 38.2 million is allocated. In particular, the supplement
accommodates the risks associated with increasing inflation and
interest rates, and greater cyclical uncertainty.
In the announcement to the stock exchange of 21 July 2023,
the forecast for the year's profit before tax was changed from
a range of DKK 145-185 million to a range of DKK 170-210
million, which is still maintained.
Management’s Review
The profit before tax gives a return of 15.9% p.a. on opening equity after disbursement of dividend.
Lending and guarantees increased by a total of DKK 181 million to DKK 6.469 billion.
Deposits increased to DKK 6.1 billion.
Basic earnings per cost in DKK of 1.90 in the first half of 2023, compared to 1.75 in the first half of 2022
Write-downs and provisions of 0.1% for the period.
Solvency ratio of 24.0 and a capital requirement of 11.3%.