The BANK of Greenland
CVR no. 80050410
Notification to Nasdaq OMX Copenhagen
15/2023
Quarterly
Report
Q1
- Q3 2023
Quarterly Report
Q1 - Q3 2023
1
Management’s Review 2
Quarterly Report in headlines 2
Financial highlights Q1 - Q3 2023 4
Management's Review, Q1 - Q3 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 Quarterly Report 17
Contents
Quarterly Report
Q1 - Q3 2023
Management’s Review
2
Quarterly Report in headlines
Good profit improvement and growth for the Bank
The BANK of Greenland’s profit before tax is DKK 170.8
million for the first nine months of 2023, compared to DKK
65.2 million for the same period of 2022. The profit before
value adjustments and write-downs amounts to DKK 159.2
million, compared to DKK 113.9 million for the previous year.
Lending has increased by DKK 319 million since the end of
2022, and amounts to DKK 4,672 million at the end of
September 2023. The economic development in Greenland
continues to be favourable, with positive development in the
Bank's lending. At the same time, guarantees decreased by DKK
65 million, from DKK 1,934 million at the end of 2022, to DKK
1,869 million at the end of Q3 2023.
Net interest and fee income increased by DKK 59.9 million to
DKK 315 million in the first three quarters of 2023, compared
to the same period of 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
30 September 2022, loans and guarantees increased by DKK
396 million up to the end of September 2023.
At the end of September 2023, total costs including write-offs
amounted to DKK 160.2 million, compared to DKK 145.8
million for the same period of 2022. The increase concerns
staff expenses as a consequence of increases due to collective
agreement-based adjustments and staff increases, as well as
other administration expenses, where the increase can be
attributed primarily to IT costs, staff training and a few large
cost items of a non-recurring nature.
At the end of the first nine months of 2023, value adjustments
show a capital gain of DKK 19.8 million, compared to a capital
loss of DKK 45.7 million 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 positively.
Impairment of loans and guarantees amounted to DKK 8.3
million at the end of September 2023, compared to DKK 3.0
million at the end of September 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 46.5 million is allocated. In particular, the
supplement accommodates the risks associated with increasing
inflation and interest rates, and greater cyclical uncertainty.
In the stock exchange announcement of 18 October 2023, the
forecast profit for the year before tax was adjusted upwards
from a range of DKK 170-210 million to a range of DKK 200-
230 million, which is maintained.
Management’s Review
The profit before tax gives a return of 17.6% p.a. on opening equity after disbursement of dividend.
Lending and guarantees increased by a total of DKK 253 million to DKK 6.541 billion.
Deposits increased to DKK 6.3 billion.
Core earnings per DKK in costs of 1.99 in the first 3 quarters of 2023, compared to 1.78 in 2022.
Write-downs and provisions of 0.1% for the period.
Solvency ratio of 24.6 and a capital requirement of 11.5%.