Grønlandsbanken A/S
CVR no. 80050410
Notification to Nasdaq OMX Copenhagen
06/2024
Quarterly Report
Q1 202
4
Quarterly Report
Q1 2024
1
Management’s review 2
Report for Q1 in headlines 2
Financial highlights for Q1 2024 4
Management’s review, Q1 2024 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 2024
Management’s review
2
Report for Q1 in headlines
Good start to 2024
GrønlandsBANKENs resultat før skat lyder på kr. 61,8 mio. for
første kvartal af 2024, mod kr. 49,4 mio. i første kvartal af 2023.
Resultatet før kursreguleringer og nedskrivninger udgør tilfreds-
stillende kr. 61,7 mio. mod kr. 48,5 mio. året før.
Udlån er steget med kr. 79 mio. siden udgangen af 2023, og ud-
gør kr. 4.892 mio. ved første kvartals udgang. Det var ventet, at
den fortsat gunstige økonomiske udvikling i Grønland ville med-
føre en positiv, men mere afdæmpet vækst i bankens udlån i
2024. Garantierne er samtidig vokset med kr. 23 mio. fra kr.
1.774 mio. ved udgangen af 2023 til kr. 1.797 mio. ultimo 1.
kvartal 2024.
Stigning i netto rente- og gebyrindtægter i 1. kvartal af 2024 på
kr. 15,6 mio. til kr. 119,6 mio. kr. sammenlignet med samme pe-
riode i 2023. Stigningen skyldes primært den rekordhøje udlåns-
mængde samt udviklingen i renteniveauet i 2023 og 2024. Sam-
menlignet med 1. kvartal 2023 er udlån og garantier samlet vok-
set med kr. 372 mio. frem til udgangen af 1. kvartal 2024.
De samlede omkostninger inkl. afskrivninger udgør ved udgan-
gen af første kvartal 2024 kr. 59,2 mio. mod kr. 56,9 mio. i
samme periode i 2023.
Stigningen kan opdeles i personaleudgifter, hvor der dels er tale
om en stigning som følge af overenskomstmæssig regulering og
flere ansatte, samt i øvrige administrationsomkostninger, hvor
stigningen primært kan henføres til IT omkostninger.
Kursreguleringer udviser ved udgangen af 1. kvartal 2024 en
kursgevinst på kr. 5,4 mio. mod en kursgevinst på 7,9 mio. i
samme periode 2023. Udviklingen i rentemiljøet har bevirket, at
bankens obligationsbeholdning har udviklet sig negativt mens
bankens sektoraktiebeholdning og valutaområdet har udviklet
sig positivt.
Nedskrivninger på udlån og garantier udgør i første kvartal af
2024 kr. 5,3 mio. mod kr. 7,0 mio. i 1. kvartal af 2023. Banken
ser fortsat en tilfredsstillende bonitet i låneporteføljen. I tillæg til
bankens individuelle nedskrivningsmodeller afsættes et manage-
menttillæg på kr. 46,8 mio. Tillægget imødekommer i særdeles-
hed risici forbundet med stigende inflation, renter og konjunk-
turusikkerheder.
I fondsbørsmeddelelse af 14. december 2023 blev forecast for
årets resultat før skat for 2024 angivet til et interval på kr. 180-
230 mio., hvilket fastholdes.
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.
Quarterly Report
Q1 2024
Management’s review
3
Quarterly Report
Q1 2024
Management’s review
4
Financial highlights for Q1 2024
Q1
Q1
Full year
Q1
Q1
Q1
2024
2023
2023
2022
2021
2020
Net interest and fee income
119,629
104,056
435,012
85,747
86,095 82,880
Value adjustments
5,367
7,907
40,058
-10,667
3,127
-11,636
Other operating income
1,301
1,392
5,803
1,635
1,139
1,087
Staff and administration expenses
56,406
54,390
211,166
47,063
47,123 44,592
Depreciation and impairment of tangible assets
2,141
2,060
8,158
1,829
1,740
1,707
Other operating expenses
639
464
2,815
305
406
212
Write
-downs on loans and receivables, etc. 5,326
6,992
14,160
718
922 9,190
Profit before tax
61,785
49,449
244,574
26,800
40,170
16,630
Tax
-9,304
3,362
52,179
-10,900
-1,281 4,404
Profit for the period
71,089
46,087
192,395
37,700
41,451
12,226
Selected balance sheet items:
Lending
4,891,724
4,398,940
4,812,975
3,904,824
3,905,129 3,636,588
Deposits
6,681,539
6,012,091
6,413,469
5,542,272
5,571,272 5,742,351
Equity
1,452,334
1,329,742
1,479,123
1,236,483
1,174,147 1,090,630
Total assets
9,092,785
8,057,981
8,840,981
7,372,841
7,177,469 7,183,145
Contingent liabilities
1,796,756
1,917,778
1,774,426
1,786,028
1,804,673 1,514,627
Key figures:
Capital ratio
25.1
23.0
26.0
24.4
22.3 24.6
Core capital ratio
26.3
22.6
24.9
24.4
22.3 24.6
Return on equity before tax for the period
4.2
3.7
17.5
2.1
3.4 1.5
Return on equity after tax for the period
4.9
3.5
13.8
3.0
3.5 1.1
Income per cost krone
2.0
1.8
2.0
1.5
1.8 1.3
Rate of return
0.8
0.6
2.2
0.5
0.6 0.2
Interest risk rate
0.7
1.3
0.7
1.2
1.6 1.0
Foreign exchange position
0.3
0.5
0.4
0.8
0.7 0.7
Liquidity coverage ratio
249.6
230.9
259.0
236.7
290.9 284.8
Net stable funding ratio
133.7
-
134.0
-
- -
Lending plus write
-downs as a ratio of deposits 70.6
71.4
72.3
68.8
70.1 64.3
Lending as a ratio of equity
3.4
3.3
3.3
3.2
3.3 3.3
Growth in lending for the period
1.6
1.0
10.6
3.2
-2.5 -3.2
Sum of large exposures
147.9
165.5
150.0
164.0
163.6 159.8
Write
-down ratio for the period 0.1
0.1
0.2
0.0
0.0 0.2
Accumalated write
-down ratio 3.1
3.1
3.1
3.2
3.2 3.5
Profit per share after tax for the period
34.3
25.6
106.9
20.9
23.0 6.8
Net book value per share
806.9
738.7
821.7
686.0
652.0 606.0
Stock exchange quotation/net book value per share
0.8
0.8
0.8
0.9
1.0 0.8
Quarterly Report
Q1 2024
Management’s review
5
Management’s review, Q1 2024
Statement of income
Nettorenteindtægterne er med t.kr. 93.199 mod t.kr. 73.969 i
første kvartal 2023 steget med godt 25 %. Det stigende rente-
niveau gennem 2023 samt det høje udlånsniveau driver frem-
gangen.
Det i gennem 2023 stigende renteniveau nåede sit nuværende
niveau i 3. kvartal af 2023, hvorfor renteniveauet i 1. kvartal af
2024 er højere end i 1. kvartal af 2023. Udlånet er samtidig
vokset med t.kr. 492.784 eller 11,2% i perioden fra 1. kvartal af
2023 til udgangen af 1. kvartal af 2024.
Banken har dog samtidig, som forventet, oplevet indlånsbevæ-
gelser mod opsparings- og højrentekonti, hvorfor indlånsmargi-
nalen er reduceret.
Gebyr- og provisionsindtægter udviser et fald på t.kr. 2.256 i
forhold til samme periode i 2023. Lavere investeringsaktivitet og
forsikringsformidlingsprovision påvirker posten negativt.
Nettorente- og gebyrindtægter er samlet vokset med t.kr.
15.573 til t.kr. 119.629 i første kvartal 2024.
Andre driftsindtægter udgør t.kr. 1.301, hvilket er et fald på t.kr.
91 fra 1. kvartal 2023.
Udgifter til personale og administration udgør t.kr. 56.406, hvil-
ket er en stigning på t.kr. 2.016 i forhold til 1. kvartal 2023. Per-
sonaludgifterne udviser en stigning på t.kr. 3.086 som følge af
opnormeringer og overenskomstmæssig lønstigning. Admini-
strationsomkostningerne viser et fald på t.kr. 1.070. Dette dæk-
ker dog over en stigning i IT omkostninger, og et fald som følge
af omkostninger af engangskarakter afholdt i 1. kvartal af 2023.
Andre driftsudgifter, som består af drift og vedligehold af ban-
kens bankbygninger er i første kvartal 2024 steget med t.kr. 175
til t.kr. 639, sammenlignet med samme periode i 2023. Stignin-
gen skyldes periodeforskydninger i omkostningernes afholdelse.
Afskrivninger på materielle aktiver udgør t.kr. 2.141 mod t.kr.
2.060 i samme periode 2023.
Resultatet før kursreguleringer og nedskrivninger udgør herefter
tilfredsstillende t.kr. 61.744 mod t.kr. 48.534 i 1. kvartal af 2023.
Kursreguleringer viser en samlet kursgevinst på t.kr. 5.367 mod
en kursgevinst i samme periode sidste år på t.kr. 7.907. Bankens
beholdning af sektoraktier og valutaområdet har udviklet sig
gunstigt i 1. kvartal. Samtidig har bankens obligationsbeholdning
med baggrund i renteniveauet dog givet kurstab i første kvartal
af 2024 i modsætning til første kvartal af 2023, som viste en
markant kursgevinst.
Selected Highlights and Key Figures (not audited)
DKK 1,000
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
2024 2023 2023 2023 2023 2022 2022 2022
Net interest and fee income
119,629
119,981
111,043
99,933
104,056
96,307
87,370
82,061
Costs, depreciation
and amorti-
sation
59,186
61,918
51,492
51,814
56,914
59,254
48,059
48,572
Other operating income
1,301
1,346
1,451
1,613
1,392
2,025
1,514
1,414
Profit before value adjustments
and write-downs
61,744
59,409
61,002
49,732
48,534
39,078
40,825
34,903
Value adjustments
5,367
20,248 8,817
3,085
7,907
6,316
-20,477 -14,528
Write-downs on loans, etc.
5,326
5,907
1,974
-713
6,992
1,483
928
1,394
Profit before tax
61,785
73,750
67,845
53,530
49,449
43,911
19,420
18,981
Nedskrivninger på udlån m.v. udgør t.kr. 5.326 mod t.kr. 6.992 i
samme periode i 2023. Banken ser fortsat en god bonitet i ud-
lånsporteføljen. Nedskrivningsniveauet er fortsat beskedent og
periodens nedskrivningsprocent udgør 0,1%.
På trods af usikre makroøkonomiske udsigter som følge af sti-
gende inflation, højere renteniveau og geopolitisk ustabilitet er
Grønland og GrønlandsBANKENs kunder indtil videre ikke
markant udfordret. Den fremtidige økonomiske udvikling er dog
forbundet med usikkerhed.
I tillæg til de individuelle nedskrivninger har banken med ud-
gangspunkt i dette fastholdt en betydelig managementreserve
på kr. 46,8 mio. til imødegåelse af risici.
Resultat før skat udgør herefter t.kr. 61.785 og er dermed t.kr.
12.336 højere end i samme periode i 2023.
Quarterly Report
Q1 2024
Management’s review
6
Balance sheet and equity
Bankens udlån er i første kvartal steget tilfredsstillende med t.kr.
78.749 til t.kr. 4.891.724, mens bankens garantistillelser overfor
kunder er steget med t.kr. 22.330 i forhold til ultimo 2023 og
udgør ultimo marts 2024 t.kr. 1.796.756.
Banken har i 1. kvartal af 2024 erhvervet 5 nye personaleboli-
ger, hvorfor domicilejendomme er steget til t.kr. 310.900.
Bankens indlån, hvoraf den altovervejende del er anfordrings-
midler, udgør ved udgangen af marts 2024 t.kr. 6.681.539, hvil-
ket er en stigning i forhold til udgangen 2023 på t.kr. 268.070.
Banken har fortsat en stabil indlåns-/udlånsratio på ca. 137 %.
Bankens egenkapital er efter udbetaling af det på generalfor-
samlingen for 2023 vedtagne udbytte på t.kr. 99.000 faldet fra
t.kr. 1.479.123 til t.kr. 1.452.334.
Den samlede balance er herefter forøget med t.kr. 108.415 til
t.kr. 9.092.785.
Uncertainty of recognition and measurement
De væsentligste usikkerheder ved indregning og måling knytter
sig til nedskrivninger på udlån, hensættelser på garantier og uud-
nyttede kreditfaciliteter samt værdiansættelse af ejendomme,
unoterede papirer, samt finansielle instrumenter. Ledelsen vur-
derer, at usikkerheden ved regnskabsaflæggelsen er på et ni-
veau, der er forsvarligt.
Finanstilsynet offentliggjorde den 29. november 2023 notatet
”Tabsniveauer på eksponeringer sikret ved pant i fast ejendom”,
hvori tilsynet vurderer, hvorvidt der eksisterer et veludviklet og
veletableret marked for ejendomme i Danmark, på Færøerne
og i Grønland.
Særligt vedrørende Færøerne og Grønland har det ifølge nota-
tet ikke været muligt for Finanstilsynet på baggrund af de fast-
satte kriterier at vurdere, om der eksisterer et veludviklet og
veletableret marked for beboelses- og erhvervsejendomme på
Færøerne og i Grønland. Vurderingen har betydning for kapital-
belastningen af eksponeringer sikret ved pant i fast ejendom.
Derfor har Finanstilsynet efterfølgende sendt notatet i høring
og rettet henvendelse til de nordatlantiske pengeinstitutter, her-
under GrønlandsBANKEN tillige med realkreditinstitutter med
nordatlantiske ejendomseksponeringer for en yderligere belys-
ning af ejendomsmarkedet i Grønland.
GrønlandsBANKEN har på den baggrund leveret et supple-
rende erfaringsgrundlag til Finanstilsynet baseret på lokalkend-
skab til det grønlandske ejendomsmarked for at understøtte en
vurdering af, at der eksisterer et veludviklet og veletableret mar-
ked for ejendomme i Grønland.
Afklaringen af ejendomsmarkedets status i Grønland forventes
først at foreligge i løbet af 2024.
Financial risks
GrønlandsBANKEN er eksponeret over for forskellige finan-
sielle risici, som styres på forskellige niveauer i organisationen.
Bankens finansielle risici udgøres af:
Kreditrisiko: Risiko for tab som følge af, at debitorer eller mod-
parter misligholder indgåede betalingsforpligtelser.
Markedsrisiko: Risiko for tab som følge af, at dagsværdien af fi-
nansielle instrumenter og afledte finansielle instrumenter fluktu-
erer ved ændringer i markedspriser. GrønlandsBANKEN hen-
regner tre typer risici til markedsrisikoområdet: renterisiko, va-
lutarisiko og aktierisiko.
Likviditetsrisiko: Risiko for tab som følge af, at finansieringsom-
kostningerne stiger uforholdsmæssigt meget, risikoen for at ban-
ken forhindres i at opretholde den vedtagne forretningsmodel,
som følge af manglende finansiering/funding eller ultimativt risi-
koen for, at banken ikke kan honorere indgåede betalingsfor-
pligtelser ved forfald som følge af manglende finansiering/fun-
ding.
Operationel risiko: Risiko for at banken helt eller delvist må tage
økonomiske tab som følge af utilstrækkelig eller uhensigtsmæs-
sige interne procedurer, menneskelige fejl, IT-systemer mm.
1.000.000
1.500.000
2.000.000
2.500.000
3.000.000
3.500.000
4.000.000
4.500.000
5.000.000
5.500.000
6.000.000
6.500.000
7.000.000
Q1 2021 Q1 2022 Q1 2023 Year 2023 Q1 2024
Deposits Lending Guarantees
Quarterly Report
Q1 2024
Management’s review
7
Capital requirement
GrønlandsBANKEN skal i henhold til lovgivningen have et kapi-
talgrundlag, der understøtter risikoprofilen. Banken opgør kre-
dit- og markedsrisikoen efter standardmetoden og operationel
risiko efter basisindikatormetoden.
NEP-krav
Kravet til nedskrivningsegnede passiver skal ses som et led i gen-
opretning af pengeinstitutter. Dette indebærer, at institutter
omfattet af kravet, skal opretholde en andel af kapitalinstrumen-
ter og gældsforpligtelser, som i en afviklingssituation skal ned-
skrives eller konverteres før simple krav.
GrønlandsBANKEN fik d. 30. november 2023 fastsat et revide-
ret NEP-krav på 30,2 % af bankens risikovægtede aktiver pr. ul-
timo 2022. NEP-kravet indfases i perioden 2022 til 2027. Den
lineære indfasning bevirker, at banken i 2024 skal opfylde et
NEP-krav på 7,55 %. Dette betyder, at banken henover de
kommende år skal dække det indfasede krav ved udstedelse af
kapitalinstrumenter og konsolidering af egenkapitalen.
Banken har i forlængelse af det fastsatte NEP-krav foretaget ud-
stedelser i både 2021, 2022 og 2023. Der er samlet udstedt kr.
175 mio. i Senior Non-Preferred og kr. 65 mio. i efterstillede
kapitalindskud.
Banken forventer også i 2024 at foretage udstedelser.
Capital requirement
Q1 2024
Year 2023
Pillar I
8,00%
8,00%
Pillar II
3,14%
3,06%
Solvency requirement
11,14%
11,06%
SIFI buffer requirement
1,50%
1,50%
Capital reserve buffer requirement
2,50%
2,50%
Capital requirement
15,14%
15,06%
MREL requirement (phased in linearly as
from 1 January 2022)
7,55%
4,90%
Total capital requirement
22,69%
19,96%
Capital base, cf. Note 18
1.445.018
1.450.158
SNP issue
174.051
173.969
MREL capital base
1.619.069
1.624.127
MREL capital ratio
29,50%
29,10%
Surplus capital cover
6,81%
9,14%
Solid capital base
I henhold til lov om finansiel virksomhed skal bestyrelsen og di-
rektionen sikre, at GrønlandsBANKEN har et tilstrækkeligt kapi-
talgrundlag. Det tilstrækkelige kapitalgrundlag er den kapital, der
efter ledelsens vurdering som minimum skal til for at dække alle
risici.
GrønlandsBANKEN blev udpeget som SIFI-institut i april 2017.
Med det fastsatte krav for nedskrivningsegnede passiver forven-
ter bestyrelsen, at det samlede kapitalberedskab skal øges over
de kommende år. Bestyrelsen har som mål, at der skal være ka-
pitalmæssig kapacitet til vækst i bankens forretning lige som der
skal være tilstrækkelig kapital til at dække løbende udsving i de
risici banken påtager sig.
Bankens bestyrelse vedtog derfor i 2021 en kapitalmålsætning
med et fastlagt target for CET1 på 24%. GrønlandsBANKENs
kernekapitalprocent er ved udgangen af 1. kvartal 2024 opgjort
til 25,1 og kapitalprocenten til 26,3. Henset til usikkerhederne
beskrevet ovenfor vedr. eksponeringer sikret ved pant i fast
ejendom, så finder banken det væsentligt, at kernekapital-pro-
centen realiseres på et højere niveau end det fastlagte target.
Resultatet for 1. kvartal af 2024 er ikke verificeret af bankens
revisor og indgår derfor ikke i kapitalprocenten. Indregnes resul-
tatet for 1. kvartal af 2024 kan kernekapitalprocenten beregnes
til 26,1 % og kapitalprocenten til 27,2.
Bankens individuelle solvensbehov er pr. ultimo marts 2024 op-
gjort til uændret 11,1 %. GrønlandsBANKEN har dermed en
kapitaloverdækning før bufferkrav på 15,2 % eller t.kr. 832.773.
Efter fradrag for kapitalbevaringsbufferkrav på 2,5 % og SIFI-
bufferkrav på 1,5 % er overdækningen på 11,2 %.
The BANK of Greenland has published further details of the
calculated solvency requirement in a report on its website
http://www.banken.gl/report/
Quarterly Report
Q1 2024
Management’s review
8
The BANK of Greenland’s reported individual solvency requirement according to the 8+ model
Q1 2024
Year 2023
Capital require-
ment
Solvency requi-
rement
Capital require-
ment
Solvency requi-
rement
Pillar I
requirement 439.691
8,0
445.843
8,0
Credit risk
123.998
2,2
120.061
2,2
Market risk
21.585
0,4
22.404
0,4
Operational risk
15.592
0,3
15.646
0,3
Other risk
11.379
0,2
12.256
0,2
Capital and solvency requirement
612.245
11,1
616.210
11,1
Liquidity
The liquidity coverage ratio (LCR) is a minimum requirement of
the ratio between current assets and liabilities, to ensure a satis-
factory liquidity ratio.
At the end of Q1, the Bank had an LCR of 249.6 per cent and
thereby fulfils the LCR requirement of at least 100 per cent.
The Bank’s funding is based solely on deposits.
The Supervisory Diamond for banks
The BANK of Greenland has considered the benchmarks set
out in the Danish FSA’s Supervisory Diamond for banks. The
Supervisory Diamond states five benchmarks for banking activi-
ties which the Bank aims to fulfil. It must be noted that publicly-
owned enterprises account for 38% points of the sum of large
exposures.
The exposure to property amounts to 21.3 per cent. This ex-
posure is subject to considerable subordinate public financing.
In addition, some of the exposure is based on lease contracts
with the state, the Government of Greenland or municipalities.
The Bank assesses that both of these factors contribute to sta-
bilising the overall sector exposure.
Investor relations
The BANK of Greenland’s overall financial objective is to
achieve a competitive return for the shareholders. At a price of
650 at the end of Q1 2024, the price of the BANK of
Greenland’s shares has increased from the end of 2023, when
the price was 625.
At the Bank’s Annual General Meeting on 20 March 2024, a
dividend payment of DKK 55 per share, or a total of DKK 99
million, to the Bank’s shareholders was adopted, and this was
paid out on 25 March 2024.
In accordance with Section 28a of the Danish Companies Act,
six shareholders have notified shareholdings in excess of 5%.
The Bank has no holdings of own shares.
The BANK of Greenland’s mission, values and cor-
porate governance
The BANK of Greenland conducts banking activities in Green-
land in open competition with domestic and foreign banks and
provides advice and services in the financial area to all citizens
and businesses in Greenland.
The Bank's mission should be viewed in a broader perspective
whereby the BANK of Greenland can be seen as the BANK for
all of Greenland. This entails an enhanced responsibility to par-
ticipate positively and actively in society’s development and to
help to create opportunities for the benefit of Greenland, while
also ensuring sound financial activities. The BANK of Greenland
is highly aware of this vital role.
The BANK of Greenland’s values are firmly anchored in the
Bank and its employees. The values are Commitment, Decency,
Customer-oriented and Development-oriented. These values
The Supervisory Diamond
1Q 2024
Limit
Sum
of large exposures 147,90%
< 175%
Property exposure
21,30%
< 25%
Growth in lending
11,20%
< 20%
Liquidity
-benchmark 232,30%
> 100%
Quarterly Report
Q1 2024
Management’s review
9
serve as a guide for how we act and wish to be seen within
and outside the Bank.
The BANK of Greenland considers all of the Corporate Gov-
ernance recommendations and the Danish Executive Order on
Management and Control of Banks, etc. and it is the Bank’s ob-
jective to observe these recommendations at all times and to
the greatest possible extent. The Bank’s Corporate Governance
Statement can be found on the Bank’s website www.banken.gl
.
Outlook for the remainder of 2024
GrønlandsBANKEN forventer som beskrevet i årsrapporten for
2023 på trods af inflation og rentestigninger moderat økono-
misk vækst i Grønland i 2024.
På den baggrund forventes udlånet at udvikle sig positivt frem
mod udgangen af året, men med en væsentligt lavere vækst end
i de foregående 2 år. Indlånet forventes på niveau med ultimo
2023.
Banken vil være påvirket negativt, hvis inflation og konjunkturer
forværres i betydeligt omfang.
De samlede basisindtægter forventes at stige i 2024, hvor sær-
ligt den højere udlånsmængde og udvikling i rentemiljøet er de
primære årsager.
De samlede omkostninger inkl. afskrivninger forventes højere
end i 2023. Der forventes enkelte opnormeringer på persona-
leområdet og fuld effekt af opnormeringer i 2023. På admini-
strationsomkostninger forventes også en stigning primært på IT-
området og efteruddannelse af medarbejdere.
Det er bankens vurdering, at boniteten i låneporteføljen er til-
fredsstillende. Nedskrivninger på udlån forventes derfor fortsat
på et lavt men normaliseret niveau.
På baggrund af renteniveauet må der forventes gevinst på ban-
kens børsnoterede værdipapirer. Der forventes kursgevinster
fra valutaområdet og sektoraktier.
På baggrund af disse forhold fastholdes uændret en forventning
om et resultat før skat i 2024 i niveauet kr. 180-230 mio.
Quarterly Report
Q1 2024
Management Statement
10
Bestyrelse og direktion har i dag behandlet og godkendt kvar-
talsrapporten for perioden 1. januar – 31. marts 2024 for
GrønlandsBANKEN, aktieselskab.
Kvartalsrapporten er aflagt i overensstemmelse med lov om fi-
nansiel virksomhed og ledelsesberetningen er udarbejdet i over-
ensstemmelse med lov om finansiel virksomhed. Kvartalsrap-
porten er herudover udarbejdet i overensstemmelse med yder-
ligere danske oplysningskrav for børsnoterede finansielle virk-
somheder.
Det er vores opfattelse, at kvartalsrapporten giver et retvisende
billede af bankens aktiver, passiver og finansielle stilling pr. 31.
marts 2024, samt af resultatet af bankens aktiviteter for første
kvartal i 2024.
Ledelsesberetningen indeholder efter vores opfattelse en retvi-
sende redegørelse for udviklingen i bankens aktiviteter og øko-
nomiske forhold, samt en beskrivelse af de væsentligste risici og
usikkerhedsfaktorer, som GrønlandsBANKEN står overfor.
Management Statement
Nuuk,
13 May 2024
Executive Management
Martin Birkmose Kviesgaard
Board of Directors
Gunnar í Liða
Kristian Frederik Lennert
Maliina Bitsch Abelsen
Chair
Vice Chair
Lars Holst
Pilunnguaq Frederikke Johansen Kristiansen
Tulliaq Angutimmarik Olsen
Niels Peter Fleischer Rex
Peter
Angutinguaq Wistoft
Ellen Dalsgaard Zdravkovic
Quarterly Report
Q1 2024
Management Statement
11
Quarterly Report Q1 2024
Income statement and statement of comprehensive income
12
Income statement and statement of comprehensive in-
come
DKK 1,000
Notes
1. kvartal 2024
hele året 2023
1. kvartal 2023
3
Interest income
123,892
417,162
86,831
4
Interest expenses
30,693
87,468
12,862
Net interest income
93,199
329,694
73,969
Share dividend, etc.
0
2,155
1,460
5
Fees and commission income
26,496
103,932
28,752
Fees paid and commission expenses
66
769
125
Net interest and fee income
119,629
435,012
104,056
6
Value adjustments
5,367
40,058
7,907
Other operating income
1,301
5,803
1,392
7
Staff and administration expenses
56,406
211,166
54,390
Depreciation and impairment of tangible assets
2,141
8,158
2,060
Other operating expenses
639
2,815
464
16
Write-downs on loans and receivables, etc.
5,326
14,160
6,992
Profit before tax
61,785
244,574
49,449
8
Tax
-9,304
52,179
3,362
Profit for the period
71,089
192,395
46,087
COMPREHENSIVE INCOME
Profit for the period
71,089
192,395
46,087
Other comprehensive income:
Value adjustment of properties
1,497
5,643
1,417
Value adjustment of defined-benefit severance/pension scheme
0
-96
0
Tax on value adjustment of properties
-374
-1,411
-354
Other comprehensive income
1,123
4,136
1,063
Comprehensive income for the period
72,212
196,531
47,150
Quarterly Report Q1 2024
Balance sheet
13
Balance sheet
DKK 1,000
Notes
Assets
31 March 2024
31 December
2023
31 March 2023
Cash balance and demand deposits with central banks
1,704,750
1,552,747
1,322,534
9
Receivables from credit institutions and central banks
112,646
120,150
129,642
16
Loans and other receivables at amortised cost
4,891,724
4,812,975
4,398,940
10
Bonds at fair value
1,282,595
1,303,120
1,264,553
Shares, etc.
149,261
135,614
127,396
11
Assets connected to pool schemes
538,247
513,822
406,401
Land and buildings in total, domicile properties
310,900
298,142
284,038
-
Domicile properties 310,900
298,142
284,038
Other tangible assets
6,665
6,781
6,202
Other
assets 90,547
93,202
113,622
Accruals and deferred income
5,450
4,428
4,653
Total assets
9,092,785
8,840,981
8,057,981
Liabilities
Liabilities to credit institutions and central banks
13,077
22,105
21,678
12
Deposits and other liabilities
6,681,539
6,413,469
6,012,091
Deposits in pool schemes
538,247
513,822
406,401
13
Issued bonds at amortised cost
174,051
173,969
74,598
Current tax liabilities
15,665
11
30,829
Other liabilities
73,971
63,274
72,183
Prepayments and deferred expenses
2,558
5,451
3,411
Total debt
7,499,108
7,192,101
6,621,191
Provisions for pensions and similar obligations
2,584
2,506
2,172
Provisions for deferred tax
60,386
84,762
58,480
Provisions for losses on guarantees
6,674
9,733
12,041
Other provisions
7,330
8,427
4,841
Provisions for losses on non
-utilised credit facilities 0
0
4,791
Total provisions
76,974
105,428
82,325
14
Subordinated debt
64,369
64,329
24,723
Total subordinated debt
64,369
64,329
24,723
Equity
15
Share capital 180,000
180,000
180,000
Revaluation reserves
67,006
65,883
62,714
Retained earnings
1,205,328
1,134,240
1,087,028
Proposed dividend 0
99,000
0
Total equity
1,452,334
1,479,123
1,329,742
Total liabilities
9,092,785
8,840,981
8,057,981
1
Accounting policies applied
2
Accounting estimates
17
Contingent liabilities
18
Capital conditions and solvency
Quarterly Report Q1 2024
Statement of changes in equity
14
Statement of changes in equity
DKK 1,000
Share capital
Revaluation
reserves
Retained ear-
nings
Proposed divi-
dend
Total equity
capital
Equity, 01 January 2023
180,000
61,651 1,040,941
36,000
1,318,592
Dividend paid
0
0
0
-36,000
-36,000
Other comprehensive income
0
1,063
0
0
1,063
Profit for the period
0
0 46,087
0
46,087
Equity, 31 March 2023
180,000
62,714
1,087,028
0
1,329,742
Other
comprehensive income 0
3,169 -96
0
3,073
Profit for the period
0
0 47,308
99,000
146,308
Equity, 31 December 2023
180,000
65,883 1,134,240
99,000
1,479,123
Equity, 01 January 2024
180,000
65,883 1,134,240
99,000
1,479,123
Dividend paid
0
0 0
-99,000
-99,000
Other comprehensive income
0
1,123 0
0
1,123
Profit for the period
0
0 71,088
0
71,088
Equity, 31 March 2024
180,000
67,006 1,205,328
0
1,452,334
Quarterly Report Q1 2024
Statement of changes in equity
15
Quarterly Report Q1 2024
16
1. Accounting policies applied etc. 17
2. Significant accounting estimates 17
3. Interest income 18
4. Interest expenses 18
5. Fee and commission income 18
6. Value adjustments 18
7. Staff and administration expenses 19
8. Tax 19
9. Amounts receivable from credit institutions and central banks 19
10. Bonds 19
11. Assets connected to pool schemes 20
12. Deposits 20
13. Issued bonds at amortised cost 20
14. Subordinated debt 21
15. Share capital 21
16. Loans 21
17. Contingent liabilities 26
18. Capital conditions and solvency 26
Overview of notes
Quarterly Report Q1 2024
Notes to the Quarterly Report
17
The Interim Report has been prepared in accordance with the
Danish Financial Business Act, the statutory order on financial
reports for credit institutions and investment service compa-
nies, etc. and the Danish disclosure requirements for the in-
terim reports of listed financial companies.
The accounting policies applied are unchanged from the Annual
Report for 2023.
Tax, which consists of current tax and changes in deferred tax,
is recognised in the income statement when it relates to the
profit for the period, and directly in equity when it can be at-
tributed to items carried directly to equity.
On calculating the taxable income, Greenland allows tax deduc-
tion of dividends for the dividend-paying company. The taxation
value of this is therefore added to equity at the time of the An-
nual General Meeting’s approval of the dividend.
Deferred tax assets are recognised in the balance sheet at the
value at which the asset is expected to be realised. The interim
report has not been audited or reviewed.
The calculation of the accounting value of certain assets and lia-
bilities is subject to a degree of uncertainty and an estimate of
how future events will affect the value of these assets and liabil-
ities. The most significant estimates relate to:
• measurement of loans, guarantees and non-utilised credit
facilities;
• financial instruments;
• fair value of domicile properties; and
• provisions.
Non-listed financial instruments that primarily concern sector
equities and that are measured at estimated fair values.
The measurement of the fair value of the Bank’s head office
properties is subject to significant accounting estimates and as-
sessments, including expectations of the properties’ future re-
turns and the fixed yield ratios.
For provisions, there are significant estimates related to the de-
termination of the future employee turnover rate, as well as
determining the interest obligation for tax-free savings accounts.
Notes to the Quarterly Report
1.
Accounting policies applied etc.
2.
Significant accounting estimates
Quarterly Report Q1 2024
Notes to the Quarterly Report
18
DKK 1,000
Q1
2024
Full year
2023
Q1
2023
3. Interest income
Lending and other receivables
97,993
336,767
71,724
Bonds
9,082
29,770
6,474
Foreign exchange, interest rate, equity, commodity and other contracts, as
well as derivative financial instruments
294
1,177
246
Total interest income
123,892
417,162
86,831
4. Interest expenses
Credit
institutions and central banks 37
151
47
Deposits and other liabilities
30,656
87,256
12,815
Issued Bonds
0
61
0
Total interest expenses
30,693
87,468
12,862
5. Fee and commission income
Securities and securities accounts
641
7,780
680
Payment settlement
8,861
37,456
8,961
Loan transaction fees
966
4,968
1,311
Guarantee commission
7,863
31,134
8,181
Other fees and commission
8,165
22,594
9,619
Total fee and commission income
26,496
103,932
28,752
6. Value adjustments
Lending at fair value
32
1,983
414
Bonds
-643
23,654
4,949
Shares
4,498
10,178
1,603
Currency
1,510
6,253
1,365
Foreign exchange, interest rate, equity, commodities and other contracts, as
well as derivative financial instruments
-30
-2,010
-424
Assets connected to pool schemes
30,601
42,371
12,745
Deposits in pool schemes
-30,601
-42,371
-12,745
Total value adjustments
5,367
40,058
7,907
Quarterly Report Q1 2024
Notes to the Quarterly Report
19
DKK 1,000
Q1
2024
Full year
2023
Q1
2023
7. Staff and administration expenses
Staff expenses
Salaries 25,722
93,862
23,016
Other staff expenses 1,227
3,068
1,069
Pensions 3,036
11,613
2,802
Social security expenses 121
569
133
In total 30,106
109,112
27,020
Other administration expenses
26,300
102,054
27,370
Average number of FTEs
153.3
143.5
139.3
Of which salaries and remuneration to the Board of Directors and the Exec-
utive Management
1,762
6,345
1,711
Six other employees (Q1 2023: 5 employees) whose activities have a signifi-
cant influence on the Bank’s risk profile:
Salaries including free car and other benefits
2,179
7,373
1,753
8. Tax
25
-% of the profit before tax 15,446
61,144
12,362
Discount for dividend tax paid
0
-498
-394
6
-%-supplement 0
0
0
Total tax on ordinary profit
15,446
60,646
11,968
Paid dividend tax
0
498
394
Other changes
0
35
0
Taxation value of dividend paid
-24,750
-9,000
-9,000
Tax in total
-9,304
52,179
3,362
Deferred tax
374
16,225
354
Taxation value of dividend paid
-24,750
0
-9,000
Tax to be paid
15,072
35,954
12,008
No company tax was paid in the period.
9. Amounts receivable from credit institutions and central banks
Receivables from credit institutions 129,642
118,619
122,300
Total amounts receivable
129,642
118,619
122,300
10. Bonds
Of the bond portfolio, a nominal amount of TDKK 50,000 is pledged as collateral for accounts with Danmarks Nationalbank.
Quarterly Report Q1 2024
Notes to the Quarterly Report
20
DKK 1,000
Q1
2024
Full year
2023
Q1
2023
11. Assets connected to pool schemes
Investment associations
538,135
513,734
406,100
Non
-invested funds 112
88
301
Total
538,247
513,822
406,401
12. Deposits
On demand
5,458,280
5,265,508
5,382,245
On terms of notice
929,836
858,360
362,598
Special deposit
conditions 293,423
289,601
267,248
Total deposits
6,681,539
6,413,469
6,012,091
13. Issued bonds at amortised cost
Bond issue
174,051
173,969
74,598
Total
174,051
173,969
74,598
Loan raised as Senior Non
-Preferred, nominally 50,000
50,000
50,000
The loan was raised as Senior Non
-Preferred on 27 October 2021 and falls
due for full redemption on 27 October 2026. The Bank has the option of
early redemption as from 27 October 2025.
Loan raised as
Senior Non-Preferred, nominally 25,000
25,000
25,000
The loan was raised as Senior Non
-Preferred on 2 September 2022 and falls
due for full redemption on 2 September 2027. The Bank has the option of
early redemption as from 2 September 2026.
Loan raised as Senior Non
-Preferred, nominally 100,000
100,000
0
The loan was raised as Senior Non
-Preferred on 1 December 2023 and falls
due for full redemption on 1 December 2030. The Bank has the option of
early redemption as from 1 December 2027.
Quarterly Report Q1 2024
Notes to the Quarterly Report
21
14. Subordinated debt
Capital certificate as below
64,369
64,329
24,723
In total
64,369
64,329
24,723
Subordinated debt included in the capital base according to CRR
64,369
64,329
24,723
Loan raised as subordinated debt,
nominally 25,000
25,000
25,000
Interest rate, fixed rate
6.197%
6.197%
6.197%
The loan was raised on 2 September 2022 and falls due for full redemption
on 2 september
2032. The Bank has the option of early redemption as from
2 September 2027.
Loan raised as subordinated debt, nominally
40,000
40,000
0
Interest rate, floading
rate (CIBOR 6 with an addition of 400bp.) 8.113%
8.113%
0.000%
The loan was raised on 1 June 2023 and falls due for full redemption on 1
June 2033. The Bank has the option of early redemption as from 1 June
2028.
15. Share capital
Share capital consists of 1,800,000 shares of DKK 1,000
Own shares
Number of own shares
0
0
0
16. Loans
Write
-downs on loans, guarantees and non-utilised credit facilities:
New write
-downs concerning new facilities during the period 1,461
16,292
1,733
Reversal of write
-downs concerning redeemed facilities -3,611
-16,688
-3,651
Net write
-downs during the period as a consequence of changes in the
credit risk
7,498
14,998
9,163
Losses without preceding
write-downs 50
158
40
Received for claims previously written off
-72
-600
-293
Recognised in the statement of income
5,326
14,160
6,992
DKK 1,000
Q1
2024
Full year
2023
Q1
2023
Quarterly Report Q1 2024
Notes to the Quarterly Report
22
DKK 1,000
Stage 1
Stage 2
Stage 3
Total
Write-downs on loans
31.03.2024
Start of the period
27,301 78,003
90,562
195,866
New write
-downs concerning new facilities during the
year
311 250
756
1,317
Reversal of write
-downs concerning redeemed facilities -610 -520
-508
-1,638
Change in write
-downs at the beginning of the year –
transfer to stage 1
3,666 -3,498
-168
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-715 3,098
-2,383
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
-3 -184
187
0
Net
write-downs as a consequence of changes in the
credit risk
-3,474 12,701
-102
9,125
Previously written down, now finally lost
-165
-165
Interest on written
-down facilities
1,503
1,503
Write
-downs in total 26,476 89,850
89,682
206,008
Write-downs on guarantees
31.03.2024
Start of the period
1,096 2,695
5,942
9,733
New write
-downs concerning new facilities during the
year
117 18
0
135
Reversal of write
-downs concerning redeemed facilities -1 0
-8
-9
Change in
write-downs at the beginning of the year –
transfer to stage 1
1,852 -305
-1,547
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-1 10
-9
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
-2 0
2
0
Net write
-downs as a consequence of changes in the
credit risk
-1,987 -768
-430
-3,185
Write
-downs in total 1,074 1,650
3,950
6,674
Quarterly Report Q1 2024
Notes to the Quarterly Report
23
Write-downs on non-utilised drawing rights
31.03.2024
Start of the period
345 517
1,847
2,709
New write
-downs concerning new facilities during the
year
9 0
0
9
Reversal of write
-downs concerning redeemed facilities -100 -284
-1,580
-1,964
Change in write
-downs at the beginning of the year –
transfer to stage 1
49 -50
1
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-5 101
-96
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
0 0
0
0
Net write
-downs as a consequence of changes in the
credit risk
117 642
799
1,558
Write
-downs in total 415 926
971
2,312
Write-downs on loans
31.12.2023
Start of the period
28,826 64,706
86,477
180,009
New write
-downs concerning new facilities during the
year
5,007 9,510
1,016
15,533
Reversal of write
-downs concerning redeemed facilities -3,019 -2,942
-7,625
-13,586
Change in write
-downs at the beginning of the year –
transfer to stage 1
6,524 -5,889
-635
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-1,354 7,445
-6,091
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
-136 -1,229
1,365
0
Net write
-downs as a consequence of changes in the
credit risk
-8,547 6,402
15,215
13,070
Previously
written down, now finally lost
-3,593
-3,593
Interest on written
-down facilities
4,433
4,433
Write
-downs in total 27,301 78,003
90,562
195,866
DKK 1,000
Stage 1 Stage 2
Stage 3
Total
Quarterly Report Q1 2024
Notes to the Quarterly Report
24
Write-downs on guarantees
31.12.2023
Start of the period
1,239 1,025
5,772
8,036
New write
-downs concerning new facilities during the
year
201 414
16
631
Reversal of write
-downs concerning redeemed facilities -2 -3
-68
-73
Change in write
-downs at the beginning of the year –
transfer to stage 1
2,070 -154
-1,916
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-117 179
-62
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
-7 -48
55
0
Net write
-downs as a consequence of changes in the
credit risk
-2,288 1,282
2,145
1,139
Write
-downs in total 1,096 2,695
5,942
9,733
Write-downs on non-utilised drawing rights
31.12.2023
Start of the period
498 547
3,776
4,821
New write
-downs concerning new facilities during the
year
21 107
0
128
Reversal of write
-downs concerning redeemed facilities -159 -34
-2,836
-3,029
Change in write
-downs at the beginning of the year –
transfer to stage 1
28 -3
-25
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-6 497
-491
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
0 -1
1
0
Net write
-downs as a consequence of changes in the
credit risk
-37 -596
1,422
789
Write
-downs in total 345 517
1,847
2,709
Write-downs on loans
31.03.2023
Start of the period
28,826 64,706
86,477
180,009
New write
-downs concerning new facilities during the
year
967 325
283
1,575
Reversal of write
-downs concerning redeemed facilities -1,609 -841
-671
-3,121
Change in write
-downs at the beginning of the year –
transfer to stage 1
2,811 -2,301
-510
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-405 2,144
-1,739
0
Change in
write-downs at the beginning of the year –
transfer to stage 3
-104 -259
363
0
Net write
-downs as a consequence of changes in the
credit risk
-4,183 757
8,242
4,816
Previously written down, now finally lost
-379
-379
Interest on
written-down facilities
1,188
1,188
Write-downs in total
26,303
64,531
93,254
184,088
DKK 1,000
Stage 1 Stage 2
Stage 3
Total
Quarterly Report Q1 2024
Notes to the Quarterly Report
25
Write-downs on guarantees
31.03.2023
Start of the period
1,239 1,025
5,772
8,036
New write
-downs concerning new facilities during the
year
140 3
0
143
Reversal of write
-downs concerning redeemed facilities -1 -2
-43
-46
Change in write
-downs at the beginning of the year –
transfer to stage 1
604 -41
-563
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-56 81
-25
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
-10 -48
58
0
Net write
-downs as a consequence of changes in the
credit risk
-700 311
4,297
3,908
Write
-downs in total 1,216 1,329
9,496
12,041
Write-downs on non-utilised drawing rights
31.03.2023
Start of the period
498 547
3,776
4,821
New write
-downs concerning new facilities during the
year
4 0
11
15
Reversal of write
-downs concerning redeemed facilities -39 -15
-430
-484
Change in write
-downs at the beginning of the year –
transfer to stage 1
220 -217
-3
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-1 8
-7
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
0 0
0
0
Net write
-downs as a consequence of changes in the
credit risk
141 153
145
439
Write
-downs in total 823 476
3,492
4,791
DKK 1,000
Stage 1
Stage 2
Stage 3
Total
Quarterly Report Q1 2024
Notes to the Quarterly Report
26
DKK 1,000
Q1
2024
Full year
2023
Q1
2023
17. Contingent liabilities
Mortgage finance guarantees
1,037,793
1,042,320
1,000,642
Registration and remortgaging guarantees
223,266
182,870
266,290
Other guarantees
535,697
549,236
650,846
Guarantees, etc. in total
1,796,756
1,774,426
1,917,778
Provision balance for guarantees
6,674
9,733
12,041
Provision balance for non
-utilised credit facilities 2,312
2,709
4,791
The Bank is a member of BEC (BEC Financial Technologies a.m.b.a.). On any withdrawal the Bank will be
obliged to pay a withdrawal
fee to BEC equivalent to the preceding three years’ IT costs.
Like the rest of the Danish banking sector, the Bank has an obligation to make payments to the Guarantee Fund and the Resolut
ion
Fund.
18. Capital conditions and solvency
Credit risk
4,551,730
4,607,677
4,735,268
CVA risk
10,098
10,267
12,049
Market risk
212,705
233,494
267,648
Operational risk
721,601
721,601
628,793
Total risk exposure
5,496,134
5,573,039
5,643,758
Equity at the
beginning of the period 1,479,123
1,318,592
1,318,592
Comprehensive income for the period
0
196,531
0
Proposed dividend, accounting effect
24,750
-74,250
9,000
Paid dividend
-99,000
-36,000
-36,000
Framework for ratio of own shares
-5,985
-11,250
-10,980
Deduction for capital shares in the financial sector
-8,639
0
0
Deductions for prudent valuation
-1,436
-1,443
-1,684
Deductions for Non
-Performing Exposures -8,164
-6,351
-6,456
Actual core capital
1,380,649
1,385,829
1,272,472
Supplementary capital
64,369
64,329
24,753
Capital base
1,445,018
1,450,158
1,297,225
Actual core capital ratio
26.3
26.0
23.0
Capital ratio
25.1
24.9
22.6
Statutory capital ratio
requirements 8.0
8.0
8.0
Quarterly Report Q1 2024
Notes to the Quarterly Report
27