Grønlandsbanken A/S
CVR no. 80050410
Notification to Nasdaq OMX Copenhagen
7/2023
Quarterly Report
Q1 2023
Quarterly Report
Q1 2023
1
Management’s review 2
Report for Q1 in headlines 2
Financial highlights for Q1 2023 4
Management’s review, Q1 2023 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 2023
Management’s review
2
Report for Q1 in headlines
Good start to 2023
The BANK of Greenland’s profit before tax for Q1 2023
amounts to DKK 49.4 million, compared to DKK 26.8 million
for Q1 2022. The profit before value adjustments and write-
downs is satisfactory at DKK 48.5 million, compared to DKK
38.2 million for the previous year.
Lending has increased by DKK 45 million since the end of 2022,
amounting to DKK 4,399 million at the end of Q1. It was ex-
pected that the continued favourable economic development in
Greenland would result in positive, but more subdued growth
in the Bank’s lending in 2023. Guarantees decreased by DKK 16
million from DKK 1,934 million at the end of 2022 to DKK
1,918 million at the end of Q1 2023.
Net interest and fee income increased by DKK 18.3 million to
DKK 104.1 million in Q1 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 Q1 2022 loans and guarantees
increased by DKK 626 million up to the end of Q1 2023.
Total expenses including depreciation amounted to DKK 56.9
million at the end of Q1 2023, compared to DKK 49.2 million
for the same period in 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 ad-
ministrative expenses, where the increase can be attributed pri-
marily to IT costs and a few larger cost items of a one-off na-
ture.
At the end of Q1 2023, value adjustments show a capital gain
of DKK 7.9 million, compared to a capital loss of DKK 10.7 mil-
lion for the same period of 2022. The new interest rate trends
resulted in positive development in the Bank’s bond holdings.
Similarly, the Bank’s sector shareholdings also performed posi-
tively.
Impairments of loans and guarantees amounted to DKK 7.0
million in Q1 2023, compared to DKK 0.7 million in Q1 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 39.1 million is allo-
cated. In particular, the supplement accommodates the risks as-
sociated with increasing inflation and interest rates, and greater
cyclical uncertainty.
In the announcement to the stock exchange of 24 April 2023,
the forecast for the year's profit before tax was changed from
a range of DKK 130-170 million to a range of DKK 145-185
million, which is still maintained.
Management’s review
The profit before tax gives a return of 15.3 per cent p.a. on opening equity after disbursement of dividend.
An increase in loans and guarantees totalling DKK 29 million to DKK 6.317 billion.
Deposits increased to DKK 6.0 billion.
Core earnings per krone in costs of 1.85 in Q1 2023, compared to 1.78 in Q1 2022.
Write-downs and provisions of 0.1 per cent for the period.