The BANK of Greenland
CVR no. 80050410
Notification to Nasdaq OMX Copenhagen
17/2022
Quarterly Report
Q1
– Q3 2022
Quarterly Report
Q1 – Q3 2022
1
Management’s Review 2
Overview of the first three quarters 2
Financial Highlights for Q1 – Q3 of 2022 4
Management’s Review Q1 - Q3 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 Quarterly Report 17
Table of Contents
Quarterly Report
Q1 – Q3 2022
Management’s Review
2
Overview of the first three quarters
Increasing business volume and continued market
turbulence
The BANK of Greenland's profit before tax is DKK 65.2 million
at the end of September 2022, compared to DKK 114.4 million
for the same period of 2021. The profit before value
adjustments and write-downs is satisfactory at DKK 113.9
million, compared to DKK 108.3 million for the previous year.
Lending has increased by DKK 317.4 million since the end of
2021, amounting to DKK 4,101 million at the end of Q3 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 262.6 million from DKK 1,781 million at the end of 2021
to DKK 2,044 million at 30 September 2022.
Net interest and fee income amount to DKK 255.2 million for
the first three quarters of 2022, compared to DKK 249.1
million for the same period of 2021. This reflects volume
increases and mix changes in the lending structure, and an
increase resulting from such factors as an improvement in fees
and commission from the pension and investment area.
Total expenses including depreciation amount to DKK 145.8
million at the end of Q3 2022, compared to DKK 144.8 million
for the same period of 2021.
The increase in interest rates and the general market turmoil
meant that value adjustments at the end of September 2022
resulted in a capital loss of DKK 45.7 million, compared to a
capital gain of DKK 7.7 million for the same period in 2021.
The Bank’s sector shareholdings and currency area developed
positively in the first three quarters of 2022, while the Bank's
bond holdings generated capital losses.
Write-downs on loans and guarantees amount to a modest
DKK 3.0 million at 30 September 2022. The Bank sees
continued satisfactory creditworthiness in the loan portfolio.
Uncertainty primarily concerns increasing inflation and resulting
interest rate increases, as well as geopolitical uncertainty. So far
without any significant effect in Greenland, although the Bank
has allocated a supplement of DKK 30.0 million to counter risks
derived from increasing inflation and interest rates, and poorer
economic outlook, and the overall management supplement to
write-downs has thereby been increased.
In a stock exchange announcement dated 19 October 2022,
the Bank reduced its expectations of the profit for the year
before tax to DKK 90-120 million from the previously
estimated interval of DKK 120-140 million in the Annual
Report for 2021. The adjusted expectations are maintained.
Management’s Review
The profit after tax gives a return of 7.2% p.a. on opening equity after disbursement of dividend.
Lending and guarantees increased by a total of DKK 580 million to DKK 6.145 billion.
Deposits increased to DKK 5.8 billion.
Core earnings per krone in costs of 1.78 at 30 September 2022, compared to 1.75 at 30 September
2021.
Write-downs and provisions of 0.05% for the period.
Capital ratio of 22.7 and core capital ratio of 22.2, with an individual capital requirement of 10.7%