Grønlandsbanken A/S
CVR no. 80050410
Notification to Nasdaq OMX Copenhagen
11/2022
Quarterly
Report
First half of 2022
Quarterly Report
First half of 2022
1
Management’s Review 2
Interim Report in headlines 2
Financial Highlights for the first half of 2022 4
Management's Review, first half of 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 Interim Report 17
Contents
Quarterly Report
First half of 2022
Management’s Review
2
Interim Report in headlines
Stable core business and market turmoil in the first
half-year
The BANK of Greenland's profit before tax amounts to DKK
45.8 million for the first half of 2022, compared to DKK 74.8
million for the first half of 2021. The profit before value
adjustments and write-downs is satisfactory at DKK 73.1
million, compared to DKK 72.0 million for the previous year.
Lending has increased by DKK 226 million since the end of
2021, amounting to DKK 4,010 million at the end of the first
half of 2022. At the start of 2022, it was expected that
Greenland's favourable economic development would result in
positive development in the Bank’s lending. Guarantees
increased by DKK 190.9 million from DKK 1,781 million at the
end of 2021 to DKK 1,972 million at the end of the first half of
2022.
Net interest, fees and other operating income in the first half of
2022 were almost unchanged at DKK 170.9 million compared
to the same period in 2021. This reflects volume increases and
mix changes in the lending structure, and an increase resulting
from such factors as an improvement in the negative deposit
interest rates, as well as fees and commission from the pension
and investment area.
Total expenses including depreciation amounted to DKK 97.8
million at the end of the first half of 2022, compared to DKK
98.3 million for the same period in 2021. The increase in
interest rates and the general market turmoil meant that value
adjustments at the end of June 2022 resulted in a capital loss of
DKK 25.2 million, compared to a capital gain of DKK 5.1 million
for the same period in 2021. The Bank’s sector shareholdings
and the currency area performed positively in the first half of
the year, while the Bank’s bond holdings generated capital
losses.
Write-downs on loans and guarantees were reduced by DKK
0.2 million from the first half of 2021 and amounted to a
modest DKK 2.1 million for the first half of 2022. The Bank
sees continued satisfactory creditworthiness in the loan
portfolio. The impact of Covid-19 on Greenland’s society is
minimal, which is, among other things, reflected in positive
development in tourism in 2022. Uncertainty primarily
concerns increasing inflation and resulting interest rate
increases, as well as geopolitical uncertainty. So far, no
significant effect can be seen in Greenland. On the basis of the
aforementioned, the Bank has reduced the Covid-19
supplement in the management reserve to a minimum. On the
other hand, the Bank has allocated a supplement of DKK 19.4
million to counter risks derived from increasing inflation and
interest rates, and poorer cyclical prospects, and the overall
management supplement to write-downs has thereby been
increased.
In the Annual Report for 2021, the forecast for the year’s
profit before tax was estimated at a range of DKK 120-140
million. This range is maintained, provided that there is no
significant negative market impact during the rest of the year.
Management’s Review
The profit after tax gives a return of 8.5% p.a. on opening equity after disbursement of dividend.
Lending and guarantees increased by a total of DKK 417 million to DKK 5.982 billion.
Deposits increased to DKK 5.6 billion.
Basic earnings per cost in DKK of 1.75 in the first half of 2022, compared to 1.73 in the first half of 2021
Write-downs and provisions of 0.03% for the period.