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Quarterly Report

Q1 2024

Management’s Review

Report for Q1 in headlines

Good start to 2024

The BANK of Greenland’s profit before tax amounts to DKK

61.8 million for Q1 2024, compared to DKK 49.4 million for

Q1 2023. The profit before value adjustments and write-

downs is satisfactory at DKK 61.7 million, compared to DKK

48.5 million for the previous year.

Lending has increased by DKK 79 million since the end of 2023,

amounting to DKK 4,892 million at the end of Q1. It was

expected that the continued favourable economic development

in Greenland would result in positive, but more subdued

growth in the Bank’s lending in 2024. Guarantees increased by

DKK 23 million from DKK 1,774 million at the end of 2023 to

DKK 1,797 million at the end of Q1 2024.

Net interest and fee income increased by DKK 15.6 million to

DKK 119.6 million in Q1 2024 compared to the same period in

2023. The increase is primarily due to the record-high lending

volume and the development in the level of interest rates in

2023 and 2024. Compared to Q1 2023, total loans and

guarantees increased by DKK 372 million up to the end of Q1

2024.

Total expenses including depreciation amounted to DKK 59.2

million at the end of Q1 2024, compared to DKK 56.9 million

for the same period in 2023.

The increase concerns staff expenses as a consequence of

collective agreement-based adjustments and an increase in the

number of employees, as well as other administration expenses,

where the increase can be attributed primarily to IT expenses.

At the end of Q1 2024, value adjustments show a capital gain

of DKK 5.4 million, compared to a capital gain of DKK 7.9

million for the same period of 2023. The new interest rate

trends resulted in negative development in the Bank’s bond

holdings, while the Bank's sector equities holdings and the

currency area performed positively.

Impairments of loans and guarantees amounted to DKK 5.3

million in Q1 2024, compared to DKK 7.0 million in Q1 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 46.8 million is

allocated. In particular, the supplement covers the risks

associated with increasing inflation and interest rates, and

greater cyclical uncertainty.

In the stock exchange announcement of 14 December 2023,

the forecast profit before tax for 2024 was stated as a range of

DKK 180-230 million, which remains unchanged.

Management’s Review

The profit before tax gives a return of 17.6 per cent p.a. on opening equity after disbursement of

dividend.

An increase in loans and guarantees totalling DKK 102 million to DKK 6.688 billion.

Deposits increased to DKK 6.7 billion.

Core earnings per krone in costs of 1.96 in Q1 2024, compared to 1.77 in Q1 2023.

Write-downs and provisions of 0.1 per cent for the period.

Solvency ratio of 26.3 and a capital requirement of 11.1 per cent.