The Bank of Greenland
CVR no. 80050410
Notification to Nasdaq OMX Copenhagen
15/2024
Quarterly Report
Q1
– Q3 2024
Quarterly Report
Q1 – Q3 2024
1
Management’s Review 2
Quarterly Report in headlines 2
Financial Highlights Q1 - Q3 2024 4
Management’s Review, Q1 – Q3 2024 5
Statement by the Management 11
Income Statement and Statement of Comprehensive Income 13
Balance Sheet 14
Statement of Changes in Equity 15
Overview of Notes 17
Notes to the Quarterly Report 18
Contents
Quarterly Report
Q1 – Q3 2024
Management’s Review
2
Quarterly Report in headlines
Significant profit progress in the Bank
The BANK of Greenland’s profit before tax is DKK 193.6
million for the first nine months of 2024, compared to DKK
170.8 million for the same period of 2023. The profit before
value adjustments and write-downs amounts to DKK 186.2
million, compared to DKK 159.3 million for the previous year.
Lending has increased by DKK 204 million since the end of
2023, amounting to DKK 5,017 million at the end of
September 2024. It was expected that Greenland’s economic
development would result in positive, but more subdued
growth in the Bank’s lending in 2024. At the same time,
guarantees decreased by DKK 364 million, from DKK 1,774
million at the end of 2023, to DKK 1,410 million at the end of
September 2024. The decrease is due to a change in the
guarantee scheme with DLR Kredit.
In the first nine months of 2024, net interest and fee income
increased by DKK 40.8 million to DKK 355.9 million, compared
to the same period of 2023. The increase is due to recent
years' growth in lending and deposits, and the development in
the level of interest rates in the period. Compared to Q3 2023,
lending increased by around 7% and deposits by around 10%
up to the end of Q3 2024.
At the end of Q3 2024, total expenses including depreciation
amounted to DKK 173.7 million, compared to DKK 160.2
million for the same period of 2023. The increase concerns
staff expenses as a consequence of collective agreement-based
adjustments and continued investment in more employees, as
well as other administration expenses, where the increase can
be attributed primarily to IT expenses.
At the end of September 2024, value adjustments entail a
capital gain of DKK 22.6 million, compared to a capital gain of
DKK 19.8 million for the same period of 2023. Interest rate
trends resulted in weak positive development in the Bank’s
bond holdings, while the currency area also performed
positively. In terms of value adjustment alone, the Bank's
holdings of sector equities performed negatively, even though
sector equities yielded extraordinarily high dividends in 2024.
Impairment of loans and guarantees in the first three quarters
of 2024 amounted to DKK 15.2 million, compared to DKK 8.3
million for the same period 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 33.7 million is allocated. In the stock
exchange announcement of 22 October 2024, the forecast
profit for the year before tax for 2024 was adjusted upwards
to a range of DKK 225-250 million, which is maintained.
Management’s Review
The profit before tax gives a return of 18.4% p.a. on opening equity after disbursement of dividend.
Lending still above DKK 5 billion.
Deposits of DKK 6.9 billion.
Core earnings per krone in costs of 2.07 at 30 September 2024, compared to 1.99 at 30 September
2023.
Write-downs and provisions of 0.2% for the period.
Solvency ratio of 26.6 and a capital requirement of 11.0%.