The BANK of Greenland
CVR no. 80050410
Notification to Nasdaq OMX Copenhagen
2/2026
Annual
Report
2025
The Annual Report has been prepared in a
Danish and an English version. In case of dis-
crepancy between the Danish-Language original
text and the English-Language translation the
Danish text shall prevail.
Annual Report
2025
1
Management’s Review 2
Annual Report in Headlines 2
Greenland’s Society and Economy 5
About the BANK of Greenland in Brief 20
Summary of Financial Highlights 21
Management’s Review for 2025 22
Management Statement 34
Audit Statement 35
Statement of Income 40
Statement of Comprehensive Income 41
Balance Sheet 42
Statement of Changes in Equity 43
Cash Flow Statement 44
Overview of Notes 46
Notes to the Annual Report 47
Board and Management 83
Information about the BANK of Greenland 87
Financial Calendar and Stock Exchange Notifications 88
Contents
Annual Report
2025
2
Annual Report in Headlines
Satisfactory performance
At the start of 2025 it was expected that Greenland's economy
would slow down, and show close to zero growth during the
year. Market interest rates also fell as expected in 2025.
What was not expected was the severe geopolitical unrest that
affected Greenland as from January 2025 and for most of the
year.
The BANK of Greenland achieved a profit before tax for 2025
of DKK 181.4 million, compared with DKK 245.7 million in
2024. The result is at the level of the revised guidance from
January 2026 of a profit at the level of DKK 180-182 million,
and is at the high end of the expectations at the start of the
year of a profit of DKK 150-185 million.
In light of the aforementioned geopolitical uncertainty for large
parts of 2025, it is assessed to be very satisfactory that the
Bank's profit is nonetheless close to expectations at the start of
the year, and above the level of the years before 2023 and
2024 (the high-interest-rate years).
Core earnings
(
definition, see page 21
)
The Bank's core earnings fell from DKK 236.0 million in 2024
to DKK 177.9 million in 2025.
Lending increased in Q1-Q3 2025, but fell in Q4. Overall, lend-
ing declined by DKK 109 million in 2025, and now totals DKK
4,922 million. The decrease in lending is due to ordinary re-
demption of major construction financing projects.
In 2025, net interest income decreased by DKK 44.6 million, or
12%, to DKK 315.3 million. The decline among other things re-
flects that the first half of 2025 was affected by market interest
rates falling by 1% point in total. Bond yields also decreased.
The volume of guarantees declined in 2025. At the end of
2025, guarantees amounted to DKK 1,276 million, compared
with DKK 1,423 million in 2024. The primary reason is lower
construction activity in Greenland and the completion of a
number of large property transactions.
Deposits increased by more than DKK 700 million, or 10%, in
2025. The drop in interest rates in 2025 resulted in lower in-
terest expenses in 2025.
Fee and commission income increased in 2025 compared with
the previous year. The securities and pension areas primarily
accounted for the increase.
As expected, costs also increased in 2025. Staff expenses in-
creased and the total number of full-time employees increased
by six, just as collective agreement-based increases pushed up
Management’s Review
DKK million
0,0%
5,0%
10,0%
15,0%
20,0%
,0
50,0
100,0
150,0
200,0
250,0
300,0
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Profit before tax Return on opening equity after dividend and before tax
Annual Report
2025
3
expenses. Administration expenses are affected by such factors
as an increase in costs related to BEC Financial Technologies.
Limited losses and write-downs
Write-downs and provisions were a modest DKK 15.5 million
in 2025, compared with DKK 18.9 million in 2024. The overall
level of write-downs is still low. The accumulated write-downs
include significant managerial additions of DKK 41.1 million, in-
cluding amounts for derived cyclical effects and ESG risks. The
low level of write-downs underlines the significant economic
robustness of the Bank's customers.
Significant capital gains
The Bank’s liquidity is placed in the money market, in bonds
and, to a certain extent, in sector equities. The interest rate
trends reduced capital gains on the Bank's bonds from the pre-
vious year. The Bank's sector equities and currency area made
positive contributions. In 2025, value adjustments resulted in to-
tal income of DKK 19.0 million, compared with income of DKK
28.6 million in 2024.
Growth in the Bank
The Bank saw sound growth in its business volume in 2025.
While lending declined slightly, both deposits and the pension
area are expanding. The total balance sheet is therefore at a
record high, at DKK 10,974 million.
Balance sheet, capital and dividend
As an SIFI-designated banking institution since 2017, this means
that the Bank’s management continuously assesses the capital
structure. In this respect, consideration of the authorities’ ex-
pectations of the current and future optimum capitalisation of a
banking institution is a significant aspect. There is also a need to
have sufficient capital to take part in credit granting in Green-
land.
In view of the ongoing phasing-in of the Bank's MREL capital re-
quirement, in 2025 the Bank therefore continued to issue both
Tier 2 and Tier 3 capital.
The capital base is still assessed to be robust. On this basis, divi-
dend of DKK 80 per share, compared with DKK 100 for the
previous year, is proposed. The Bank’s solvency ratio is thereaf-
ter 27.8, compared with 26.9 in 2024. The solvency require-
ment is 10.9%.
The Bank's core capital accounts for 25.3% and despite the sig-
nificant dividend rate this exceeds the Bank's long-term target
of 24%. The Bank assesses that the geopolitical uncertainty and
the Bank's expected performance in 2026 justify the higher
capital ratio.
Outlook for 2026
It is expected that short-term yields will be close to unchanged
in 2026, which will increase the Bank's customers' investment
appetite.
The declining level of interest rates in 2025 will, however, have
a negative impact on core earnings for 2026.
The Bank's total costs are expected to increase moderately in
2026. This applies to both staff expenses and administration ex-
penses.
Uncertainty in the capital markets will affect the Bank’s value
adjustments. We nonetheless expect losses and write-downs to
remain at a low level, and derived risks related to inflation and
cyclical uncertainty in 2026 are assessed to be addressed by the
current level of impairment write-downs.
The massive geopolitical pressure on Greenland, which esca-
lated at the beginning of 2026, can affect the economic devel-
opment and the framework conditions in Greenland in both
the short and longer term.
However, the BANK of Greenland has no basis to assess that
this will be of any material significance in the short term in
2026. The Bank therefore bases the assessment primarily on
the national macroeconomic conditions.
The Bank expects a profit before tax of DKK 145-175 million
for 2026. There is thus no change in the expected profit for
the year, which is in line with the notification in the stock ex-
change announcement of 9 December 2025.
N
uuk, 26 February 2026
Martin Birkmose Kviesgaard, Managing Director
Annual Report
2025
4
Annual Report
2025
5
Greenland’s Society and Economy
After several years with relatively solid key financial indicators,
at the start of 2026 Greenland's economy faces significantly
greater challenges. Economic growth has braked, and both the
revenue basis and fiscal policy scope have weakened signifi-
cantly. This marks a clear shift, emphasising the continued vul-
nerability of an economy that relies strongly on only a few in-
dustries.
The weak economic growth in 2025 should be viewed in the
context of the conclusion of several large construction projects
and continued rising price levels. There is also augmented pres-
sure on public finances, including as a consequence of rising ex-
penditure in the health and pensions area. The combination of
lower revenue and higher expenditure has reduced the Treas-
ury's liquidity and limited opportunities to handle unforeseen
fluctuations.
This development can be seen in a period where the structural
challenges in the economy are becoming more and more obvi-
ous. The demographic trend of more elderly people and a
smaller population of working age exerts sustained pressure on
public finances, while the labour market is affected by both ca-
pacity limitations and continued misalignment between the sup-
ply of and demand for qualified manpower.
On this basis, in 2025 Naalakkersuisut (the Greenland govern-
ment) and the Danish government agreed on a new frame-
work agreement for the 2026–2029 period. The framework
agreement entails stronger cooperation that will help to pro-
mote Greenland's sustainable economic development and sup-
port residents' access to welfare benefits. The agreement also
includes Danish investment totalling DKK 1.6 billion in infra-
structure and healthcare cooperation. The framework agree-
ment thereby contributes to supporting public budgets in the
health sector and can also give a short-term boost to economic
activity.
Despite the current economic slowdown, 2025 is assessed to
constitute a low point for economic activity. The prospects for
the coming years provide for moderate progress, although per-
formance will greatly depend on whether the economic resili-
ence can be strengthened. This assumes a more balanced busi-
ness structure, and a long-term sustainable economic policy.
The annual report considers these factors as four overall topics.
The first topic concerns the general course of the economy,
while the second topic focuses on the business community's
dynamics and growth potential. The third topic is an in-depth
review of the structural challenges currently faced by Green-
land. The fourth and final topic is based on the significant
geopolitical impacts on Greenland in 2025 and illustrates how
concrete agreements and investments from international part-
ners can affect the national economy, welfare and long-term
economic resilience.
Overall economic development
Economic growth
In recent years Greenland has experienced a period of low
economic growth. Greenland's Economic Council expects that
GDP increased by 0.5% in 2025 (see Figure 1), which is a signif-
icant downward adjustment from last year's expected growth
of 1.1%. On the basis of improved fishing, particularly mackerel
and cod, in the second half of 2025, the BANK of Greenland
though assesses that the economy probably grew a little more
than previously expected. This though reflects a clear slow-
down in economic activity and marks a shift from the relatively
high activity that characterised the preceding years. Economic
growth of 0.8% is expected in 2026.
The lower growth is first and foremost related to the fisheries
sector. Prawn catches in 2025 were significantly below the his-
torical level. As prawns are Greenland's most important export,
the downturn has had a direct negative impact on the export
value, GDP and public revenue from this industry. This devel-
opment also reflects the biological recommendations for prawn
fishing, which over a few years have been adjusted downwards
and still need to be lower to remain sustainable. Unless there is
an equivalent increase in price levels for fish, fisheries must
therefore be expected to contribute less to economic growth
in the coming years.
Activity in the building and construction sector also declined, in
step with the completion of several large construction projects.
This includes construction of Nuuk's new airport, commis-
sioned in 2024. While the construction sector has made a sig-
nificant contribution to economic growth for a number of
years, the sector's contribution is expected to diminish a little in
the coming years. Moreover, sustained price increases have
eroded households' purchasing power and dampened private
consumption. This price development also exerts pressure on
public finances, which also have to be spread more thinly.
Annual Report
2025
6
Figure 1
Economic development
Real GDP growth
Not e: 2019-2020 are final figures, while 2021-2023 are provisional figures. 2024-2026*
are preliminary forecasts. The figure shows real GDP growth in 2010 prices,
chained values.
Sources: Statistics Greenland and Greenland's Economic Council.
P
ublic finances are also under pressure due to the significant re-
duction of dividends from the government-owned limited liabil-
ity companies. While earlier expectations indicated dividends
totalling around DKK 780 million in the 2026-2029 period, this
is now reduced to around DKK 320 million, which undermines
public finances.
The weak economic performance has had clear fiscal-policy
consequences. The 2026 Finance Act therefore includes signifi-
cant expenditure reductions across the public sector, in order
to restore the balance between revenue and expenditure and
counter rising structural spending pressure. This specifically con-
cerns general savings on non-statutory operational and grant
appropriations (except health, housing and infrastructure).
The measures are assessed to be necessary, to ensure the sus-
tainability of public finances. It is inadvisable, on the other hand,
to reduce public finances in a period of low economic growth,
as this can further dampen activity. The situation emphasises
the need for an economy that is more robust in the face of cy-
clical fluctuations.
The framework agreement between the government of Den-
mark and Naalakkersuisut (the government of Greenland) on a
self-sufficient Greenland and financing of DKK 1.6 billion in
2026-2029 was therefore extremely welcome, as it gives an
opportunity to support welfare benefits and contribute to capi-
tal investments without increasing borrowing. In specific terms,
Denmark will contribute full financing of the construction of a
new regional runway in Ittoqqortoormiit in East Greenland, and
a deep-water port in Qaqortoq, to strengthen fisheries,
transport and tourism, and deliver new investment in southern
Greenland. Denmark will also increase its support of the
Greenland Health Service for the treatment of Greenlandic pa-
tients at Danish hospitals, just as other opportunities for sup-
port and cooperation in the healthcare area are being investi-
gated.
The Finance Act still includes significant expenditure for treat-
ment of patients abroad. If the Danish government covers
some of this expenditure, the OI balance must be expected to
improve.
2025 is therefore also assessed to be a temporary low point
for economic growth, and a moderate improvement is ex-
pected in 2026. Inflation is expected to diminish from 2025,
and together with expected pay increases this could strengthen
real wages and stimulate private consumption. This will also be
supported by new building and construction activity, including
enlargement of the port in Nuuk and expansion of the
Buksefjord hydroelectric power plant, as well as expected in-
vestments in the tourism sector. Without these capital invest-
ments the expected economic growth would be lower.
Despite the recently concluded framework agreement, the
economy continues to face substantial structural challenges.
The demographic trend of more elderly people and a smaller
2
.8%
0.3%
1.6%
2.0%
0.9%
0.8%
0.2%
0.8%
2019 2020 2021 2022 2023 2024* 2025* 2026*
Table
1
The Greenland
government’s OI balance
2021
2022
2023 2024 2025
2026
2027
2028
2029
2021-
2024
2026-
2029
Budgeted
OI balance, Finance Bill, 2026
-21.8
-62.2
+4.4
+89.6
+10
Budgeted
OI balance, Finance Act
-76.2
+7.6
+6.1
+284.4
-130.1
-50.5
-4.6
+19.7
+95.6
+60.2
Actual OI result
-150.0
+113.2
+424.0 -257.1 +130.1
Difference
-184.4
-73.8
+105.4
+417.9
Not e:
All prices are stated in DKK million. A minus indicates a deficit. 2021-2024 are realised figures, while 2025-2026 are the figures adopted for the year. 2027-2029
are budget estimates.
Sources:
Finance Acts for 2021, 2022, 2023, 2024, 2025 and 2026.
Annual Report
2025
7
population of working age will augment the pressure on public
finances and on key welfare areas. Without reforms, expendi-
ture will continue to outpace revenue, which undermines eco-
nomic robustness and limits opportunities for economic policy
measures. This has been a known problem for many years, and
in recent years was one of the key focal points of successive Fi-
nance Acts. The need for resolute action is now a real impera-
tive – including in the short term. It is therefore positive that
reform of the public sector is a key element of the Finance Act,
including plans to appoint an independent reform commission,
and for cooperation with experts and the establishment of a
permanent reform body. This includes the expert group ap-
pointed to present proposals for an overall pension reform.
There are also limited opportunities to increase public revenue
by increasing employment. Unemployment is still very low for
those with vocational and higher educational qualifications, and
large elements of the employment growth have been driven by
foreign manpower. The labour market is thereby subject to sig-
nificant pressure on its capacity. Employment has, however, in-
creased for people with only lower secondary qualifications,
among other things due to the introduction of the job seeker's
allowance, which has increased the financial incentive to register
as looking for work. In the short term, this can entail bottle-
necks in some parts of the economy, while in the longer term it
emphasises the need for more people to gain educational quali-
fications and to increase the labour supply, to ensure a more
sustainable basis for growth.
Public revenue can also be increased by foreign investment,
such as in mining operations. Investments of this type often en-
counter resistance, such as concern as to whether the profits
will fall to Greenland to a sufficient extent. As described by
Greenland's Economic Council in its interim report, appropriate
regulation of the projects can be of significant benefit to society.
Besides employment and activity in local secondary industries, a
direct economic return in the form of the resource rent can be
achieved, without the public sector taking on a substantial in-
vestment risk. It is positive that the Sustainability and Growth
Plan makes foreign capital a condition for a broader business
structure, and, not least, that there will be a focus on creating
the right framework conditions, for the benefit of both inves-
tors and the Greenlandic society. These framework conditions
can contribute to reducing the risk for investors, if Greenland is
seen as transparent and reliable, and can also increase support
from the population in general.
Debt accumulation
As a consequence of the declining public revenue and increas-
ing spending pressure, particularly in the healthcare area, the OI
balance has worsened considerably since the last Finance Act
(see Table 1). The 2026 Finance Act budgets for an overall
four-year surplus of DKK 60.2 million, which can only be
achieved based on the expectation of a substantial surplus in
2029. Just one year ago, the expected four-year surplus was al-
most DKK 600 million from 2025 to 2028.
One consequence is that during 2025 the Treasury's liquidity
was weakened significantly. At the end of 2024, liquidity was al-
most DKK 700 million, while in the 2026 Finance Act it is re-
duced to around DKK 350 million. This corresponds to a re-
serve of around 4% of the Greenland government's operating
expenditure.
The high utilisation of the Budget Act's four-year framework,
combined with a low liquidity reserve, significantly curtails the
Greenland government's opportunities to manage future cycli-
cal fluctuations. Greenland's economy is still strongly dependent
on fisheries, and fluctuations in catch volumes and prices quickly
affect growth, revenue and liquidity. This makes the economy
particularly vulnerable to negative shocks and amplifies the need
for a broader business structure.
This development is in strong contrast to the preceding years,
when public finances were characterised by extraordinarily high
revenue and lower expenditure than expected. During this pe-
riod, no fiscal-policy buffer was built up, however. Instead, the
expenditure level was raised, which means that savings now
have to be made during a period with low economic growth.
Viewed from a fiscal-policy perspective this is inexpedient, since
it means that fiscal policy cannot be used as an instrument to
counter cyclical fluctuations, thereby emphasising the need for
more cyclically robust economic policy measures.
In overall terms, the Greenland government, the municipalities
and the government-owned limited liability companies had
gross interest-bearing debt of around DKK 8.6 billion in 2025,
equivalent to around 37% of GDP. This is almost DKK 1 billion
higher than two years ago, and the debt is expected to increase
by a further DKK 2.5 billion up to 2028, of which by far the
largest share is tied to the government-owned limited liability
companies. This will entail that, by then, the gross debt will
amount to around 50% of GDP.
There is furthermore still a considerable maintenance deficit for
ports, energy facilities and rental accommodation, which should
be regarded as implicit debt. This liability is not included in the
official debt figures, but eliminating this debt will require either
increased borrowing or higher prices for consumers. The latter
can lead to inflationary pressure and mask the real debt accu-
mulation and the overall economic impact.
Annual Report
2025
8
Even though the level of debt is still below the EU average, it
now exceeds the Danish level, and the expected course up to
2028 brings Greenland significantly closer to the European debt
levels (see Figure 2). This emphasises the need for a responsible
debt policy whereby new borrowing is limited to economically
profitable investments. Greater indebtedness entails reduced
fiscal-policy scope and increases vulnerability to changing inter-
est rates and revenue fluctuations.
This makes it positive to note that the Finance Act proposes
strengthening the Treasury's liquidity and tightening budgetary
discipline, so that greater reserves can be built up in economi-
cally propitious years. This development also shows that the
existing budget and accounting legislation has not been suffi-
cient to ensure systematic accumulation of liquidity. This points
to a need to consider additional mechanisms to strengthen fi-
nancial resilience and reduce the economy's vulnerability to fu-
ture cyclical fluctuations.
Figure 1
Public interest-bearing debt in Greenland,
Denmark and the EU in 2024
Per cent of GDP
Not e: Greenland I measures the interest-bearing debt as a ratio of GDP. Greenland II
measures the net interest-bearing debt as a ratio of GDP. Both Greenland I and II
include the Greenland government, municipalities and government-owned limited
liability companies. EU and Denmark denote the gross debt. *Indicates projected
values for Greenland I and II.
Sources: Finance Bills for 2019, 2020, 2022, 2023, 2024, 2025 and 2026, Statistics
Greenland and Eurostat.
Price trends
After several years with relatively moderate price increases in-
flation increased, and consumer prices rose by 3.4% in 2025
(see Figure 3). This among other things reflects the effect of the
international price increases in 2022 and 2023, which had a de-
layed and partly limited impact in Greenland, through imports,
as well as higher domestic costs.
The price pressure was particularly apparent for food products
and housing-related expenses. Price increases have a negative
impact on purchasing power, unless they are offset by equiva-
lent pay increases. A net decline in real wages can thereby con-
tribute to dampening growth, since it undermines private con-
sumption.
According to the most recent forecasts from Greenland's Eco-
nomic Council, inflation is expected to decline in the coming
years and to stabilise at around 2%. This will bring price devel-
opment closer to a historically normal level and reduce the
pressure on households' finances. Provided that pay increases in
the same period exceed inflation, real wages will once again be
able to contribute positively to private consumption.
Prospective price trends are, however, still subject to consider-
able uncertainty. The development in energy and transport
costs, price adjustments in government-owned companies and
any new international price shocks can affect inflation going for-
ward. As a significant element of price formation in Greenland
is affected by administrative and political decisions, rather than
solely by market conditions, the price and tariff policy plays a
key role in the overall course of inflation, and thereby eco-
nomic stability.
Figure 2
Development in inflation
Index (2018=100)
Not e: Development in the consumer price index from 2018 to 2025, with 2018 as index
100. The figure is calculated at six-monthly intervals. Q3 is the third quarter.
Sources: Statistics Greenland, Statistics Denmark and Statistics Faroe Islands.
0%
20%
40%
60%
80%
100%
2016
2017
2018
2019
2020
2021
2022
2023
2024*
2025*
2026*
2027*
2028*
Greenland I Greenland II EU Denmark
90
100
110
120
130
2018,
Q3
2019,
Q3
2020,
Q3
2021,
Q3
2022,
Q3
2023,
Q3
2024,
Q3
2025,
Q3
Greenland Denmark Faroe Islands
Annual Report
2025
9
Housing market
During the period with higher mortgage interest rates in 2022-
2024 the housing market in Nuuk entered a more subdued
phase after a prolonged period of high activity and rising prices.
As Figure 4 shows, the average days on market for homes in
Nuuk has increased considerably since 2022. While average
days on market was around 75 days in 2022, in 2025 this rose
to around 300 days. Adjusted for newly-built properties, days
on market is closer to the Danish level, but still considerably
higher than before.
Figure 3
Development in average days on market
Average days on market in Nuuk and Denmark, days
Not e: Days on market denotes the average number of days a detached or terraced
house, or owner-occupied flat, has been offered for sale before it is removed from
the market. For Greenland, only sold homes are included, while the Danish figures
also include homes that are not sold. Days on market is calculated on the basis of
the date of sale/delisting. Due to data availability 2025 includes the first three
qua rters.
Sources: The BANK of Greenland and Finance Denmark.
P
rice trends are affected by both interest rates and the supply
of homes, where many newly-built flats in particular have af-
fected supply in recent years. After several years of significant
price increases, since 2021 housing prices in Nuuk have shown
more subdued development, and have been almost unchanged
in nominal terms (see Figure 5). Throughout the period, the av-
erage price per square metre was around DKK 31,000. Taking
general price trends in society into account, this implies a signifi-
cant real decline in housing prices. In real terms, the price level
in 2025 is at around the same level as the period prior to the
Covid-19 epidemic. The real price decline makes it likely that
there will be more buyers in the market in the near future.
This development diverges from comparable markets. In Den-
mark, Copenhagen and Tórshavn housing prices continued to
rise in 2024 and 2025. The Nuuk housing market was thereby
dampened, with lower price dynamics and longer lead times
than in the years up to 2022.
There are several circumstances to explain this development.
First of all, an increased supply of newly-built homes in Nuuk
may have contributed to dampening the pressure on prices.
The BANK of Greenland assesses a decisive factor to be the in-
crease in mortgage interest rates that affected 2022 and re-
mained at a higher level in the following years. This is also re-
flected in how the number of transactions has not declined sig-
nificantly, but the average size of the homes sold is slightly
lower than previously.
Figure 4
Development in housing prices
Housing prices in Nuuk, Denmark, Copenhagen and Tórshavn,
index (2018=100)
Not e: 2018=100. Price trends in Nuuk (Greenland), Denmark and Copenhagen are com-
piled in DKK per square metre for detached and terrace houses, as well as owner-
occupied flats, while for Tórshavn (the Fa roe Islands) price trends are compiled on
the basis of sales prices. The prices are not adjusted by the consumer price index
and therefore reflect the nominal development in housing prices. Data for the
Faroe Islands is only until 2024, due to missing data. Data for Nuuk and Denmark
in 2025 includes the first three quarters.
Sources: BANK of Greenland, Finance Denmark and Statistics Faroe Islands.
S
everal large housing projects have now been completed, how-
ever, and supply has diminished. This will probably contribute
to reducing days on market, and support housing prices. The
prospects for the housing market in the coming years are not
determined by supply alone, however. The housing market is
just as dependent on demand, which is directly related to the
course of the economy. Sustained low growth and limited in-
come growth can affect the market. On the other hand, an ab-
rupt real wage increase, drop in interest rates or renewed eco-
nomic activity can contribute to increasing demand.
Business conditions
Greenland's business structure continues to feature a high de-
gree of concentration, with fisheries as the economic founda-
tion for employment, exports and activity in large parts of the
country. The dependence on fisheries exposes the economy to
fluctuating biological conditions, market conditions and
0
50
100
150
200
250
300
350
2020 2021 2022 2023 2024 2025
Nuuk Nuuk, ex. project sale Denmark
80
100
120
140
160
2018 2019 2020 2021 2022 2023 2024 Q3
2025
Nuuk, square metre price
Denmark, square metre price
Copenhagen, square metre price
Tórshavn, sales price
Annual Report
2025
10
regulatory changes, which in turn have a direct impact on local
communities, the labour market and public finances. 2025 indi-
cates changing business conditions, however. New opportuni-
ties within primarily tourism have become more specific, but
achieving them increasingly depends on framework conditions,
capacity and interaction with other economic structures. Limi-
tations to the supply of manpower, as well as infrastructure
and educational levels, set a clear framework for how quickly
and to what extent new business opportunities can emerge.
Business development therefore not only concerns creating
new income sources, but also strengthening the resilience of
the existing business structure and ensuring that new initiatives
contribute to lasting economic value. The following sections re-
view the development in fisheries, tourism, and the minerals
and mining industry, as well as other business opportunities and
potentials, with focus on both current trends and long-term
perspectives.
Fisheries
The new Fisheries Act has now been in force for a year and
represents a key shift in the governance of the industry. The
Act is to support value creation, modernisation and workplaces
in small communities and ensure sustainable and effective utili-
sation of fish stocks. A key element of the reform is the intro-
duction of individual transferable quotas (ITQs) for small fishing
boat owners who fish for Greenland halibut. ITQs give fishers a
personal annual catch entitlement that they can plan by or
transfer to other parties. Experience from implementation in
Greenland and from international ITQ systems shows that the
scheme typically gives small fishing boat owners greater free-
dom to plan their fishing according to weather and working
conditions. The ITQ system contrasts with the previous "Olym-
pian" system whereby fishing was open until the total volume
had been caught. This "Olympic race model" has historically led
to surplus capacity, pressure to fish in poor weather conditions,
and unstable catch landings for fish processing plants. The fun-
damental idea behind ITQs has generally been broadly sup-
ported by the industry. Several parties also point to the risk of
the incentives being undermined if elements of the Olympian
system are retained in parallel with ITQs. In areas where both
systems apply side by side, unfair terms of competition are
seen, because some fishers invest in quotas, while others still
fish according to the Olympian model. Implementation in the
first year was affected by administrative adjustments and uncer-
tainty about the quota distribution, which may lead to the de-
ferral of major investment decisions until the framework has
become more consolidated. Throughout the Fisheries Act pro-
cess the BANK of Greenland has taken a positive view of the
Act, and particularly the introduction of ITQs is important for
the industry's development. Consistent implementation of the
rules will thereby also make it possible to make new and larger
investments in the industry, in order to increase efficiency and
revenue.
The prawn sector, historically Greenland's largest single export
product, continued to be challenged in 2025 (see Figure 6). For
several years the biological advice has indicated lower quotas,
and there is a general awareness of both fewer prawns and a
lower average catch size. This has direct consequences for
catch values, as smaller prawns entail lower settlement prices.
Moreover, a combination of temperature changes, feed availa-
bility and prevalence of cod in several areas is assessed to have
affected prawn stocks negatively. The industry experiences peri-
ods when prawn are almost completely absent, which chal-
lenges both catch economies and the capacity of onshore facili-
ties.
Figure 5
Value of exports of fish and shellfish
DKK million
Prawn
Greenland
halibut
Cod
Mackerel
Capelin
Other
fish species
Not e: 2025* are estimates whereby mackerel, capelin and other fish species are pro-
jected based on da ta for the first three quart ers of 2025, and the rema inder for
the first 11 months based on data availability. The projections are calculated on
the basis of seasonal trends from the previous years’ catches at fish species level.
2026** are projections whereby prices are on average assumed to be equivalent to
2025, while volumes are assumed to change equivalent to quota changes. The
prices are not adjusted in relation to the consumer price index and a re therefore
nominal/current prices.
Sources: Statistics Greenland, Naalakkersuisut (the government of Greenland) and own
estimates.
T
he industry points to how a sustained decline in prawn stocks
will have direct economic consequences. The reduction of the
prawn quota in 2026 is therefore a key risk factor that can af-
fect overall export revenue and regional activity in the coming
years. The biological changes are experienced as being generally
more rapid and less predictable than before. This makes it
more difficult for both fleets and industry facilities to plan, in-
vest and utilise capacity effectively.
5
,649
5,868
5,073
5,586
5,692
2022 2023 2024 2025* 2026**
Annual Report
2025
11
Several fishers report increased cod stocks in coastal areas, and
cod fishing in 2025 was supported by favourable world market
prices. Despite the short-term improvement, the stock is still
assessed to be vulnerable. and historical fluctuations make it dif-
ficult to base more long-term investments on current levels.
The offshore Greenland halibut stock is still assessed to be sta-
ble, and its fishing to represent significant value. In 2025, around
the same Greenland halibut catch volume as in the preceding
year is expected. The catch was affected negatively by delayed
quota tenders, which reduced opportunities for optimum utili-
sation. For several vessels the delay meant that some of the
season's most favourable weather and catch periods could not
be fully utilised. The challenge is thus primarily of an administra-
tive, rather than biological nature, but is still of significance for
the industry's effectiveness and overall results. It is therefore dif-
ficult to comprehend and worthy of criticism that quota tender
delays can occur to an extent that is directly reflected in the
overall economy.
Overall, the expected figures for 2025 therefore point to an
export value below the level in the 2023 record year, see Fig-
ure 6, but increasing as from 2024. Prawn are weaker in terms
of both volumes and value, counterbalanced to a degree by cod
and mackerel in particular. The species composition is thereby
changing, and this development is far less predictable than be-
fore; and mackerel fishing, for example, is highly volatile. This
makes higher demands of regulatory robustness, catch strate-
gies and capacity adjustment in the industry.
It is important to note that the export value of fish and shellfish
does not exclusively reflect volumes, but also prices in the
world market. Even in periods with lower catch volumes the
export value can remain high, or increase, if prices for the most
important species are favourable. This was apparent in 2025,
when certain species, such as cod and mackerel, were subject
to both price increases and high demand in the export markets,
and contributed to the stable high value of total exports.
This development underscores Greenland's structural depend-
ence on fisheries. When volumes of one dominant species such
as prawn diminish significantly, this not only affects the export
value, but also employment and activity in coastal communities.
Despite efforts to achieve commercial diversification, fisheries
are still the key foundation for the economy, and fluctuations in
both stocks and world market prices can have major conse-
quences.
Moreover, climate change creates a persistent element of un-
certainty. Large volumes of fresh water from melting glaciers,
rising sea temperatures and changed flows and currents affect
the marine environment and can change both the distribution
of and growth conditions for the key fish species. The develop-
ment for prawn and cod in recent years illustrates how quickly
changes can affect stocks. There is a sustained lack of research-
based knowledge to support more precise predictions, and this
uncertainty makes it difficult for both the industry and the au-
thorities to plan for the long term and invest on a reliable basis.
2025 therefore paints a picture of a changing industry. The
Fisheries Act has set a new direction, but has not yet been fully
implemented, and changes in stocks create new economic risks.
The sector therefore faces a growing need for robustness, flex-
ibility and long-term planning, if fisheries are to continue to
maintain their central role in Greenland's economy.
Tourism and aviation
Tourism developed strongly in 2025 and particularly the new
Nuuk airport presents new opportunities for travel to Green-
land. Many of the current urgent demands, such as larger ca-
pacity, broader business support and improved infrastructure,
do not come as a surprise. They have been forewarned for
several years. 2025 has made it plain, however, that there is a
real demand, and that Greenland has a strong tourism momen-
tum that can only be retained if the sector is able to absorb this
growth.
The provisional figures for 2025 show a strong increase in the
number of foreign-visitor overnight hotel stays, particularly in
the summer months from June to August. As Figure 7 shows,
the level clearly exceeds the preceding years and reflects clear
demand for Greenland as a high-season travel destination. But it
is already clear that the summer traffic in 2025 was extraordi-
narily strong, which exerted pressure on capacity across several
parameters. The same pattern applies to cruise tourism, with
almost a doubling of the number of cruise passengers from
2022 to 2024. This upward trend appeared set to continue in
2025.
It is also vital to emphasise that Figure 7 only includes commer-
cial overnight hotel stays. Short-term rental activity, including
Airbnb, is not covered by the statistics, but there are indications
that this market has also grown significantly.
In some periods, Nuuk and Ilulissat in particular were close to
or at full capacity during the high season. Both local players and
public authorities indicate that in some summer periods there
was a lack of vacant rooms, an insufficient range of attractions,
and staff shortages. This means that the demand cannot be fully
met, and that some of the economic potential is lost, due to
structural limitations, rather than a lack of interest. This is not
unexpected, however, and it must also be regarded as
Annual Report
2025
12
expected that the expansion of offtake capacity will take place
over a number of years.
Figure 6
Development in foreign-visitor overnight hotel stays
Number of foreign-visitor overnight hotel stays, accumulated
annually
Not e: The figure shows the number of foreign-visi t or overni ght hot el s ta ys f rom 2 02 1 to
2025. Foreign refers to all countries that are not Greenland, i.e. including Den-
mark. The number of overnight hotel stays is accumulated for each year. This
means that the last month represents the total annual number. For 2025, the first
nine months are included, due to data availability.
Sources: Statistics Greenland.
T
he opening of Nuuk International Airport has thereby
changed travel patterns significantly. New direct routes from
the North Atlantic neighbouring market have made it easier to
fly directly to Greenland. This has increased overall accessibility,
but also changed the distribution of passengers across the
country. Figure 8 clearly shows significant growth in the num-
ber of airline passengers, where the number in September
2025 already exceeded the full-year 2024 level.
The first year for Nuuk International Airport was turbulent,
presenting numerous challenges that affected the travel experi-
ence and entailed high costs for the parties involved. These
start-up challenges are not surprising, although, seen from out-
side, their extent seems to be considerable. This makes it vital
that the handling of the airport in Nuuk and the new airports
becomes more professional and effective in the coming years.
A large proportion of passengers who previously flew via
Kangerlussuaq and then onwards on domestic flights now fly di-
rectly to Nuuk. This reduces the passenger base for several do-
mestic routes that were already cost-intensive to maintain. This
trend affects Air Greenland’s business model, which for many
years has been based on a balance whereby revenue from in-
ternational flights supports the operation of domestic routes.
Air Greenland has a key role as one of Greenland's most im-
portant government-owned limited liability companies and
changes in this company's finances could be of great economic
significance. This applies in relation to price adjustments for do-
mestic and low-season flights, and any adjustments to routes
and frequency. From an economic perspective, accessibility and
cohesion across Greenland are key for the population, business
and industry, and regional development. This makes it im-
portant to monitor how the new competition parameters and
the new travel patterns affect the overall aviation structure.
Figure 7
Development in the number of airline passengers
Number of airline passengers, accumulated annually
Not e: The Figure shows the number of departing airline passengers from 2021 to 2025.
The number of departing airline passengers is accumulated for each year. This
means that the last month represents the total annual number. For 2025, the first
ten months are included, due to data availability. The levels in 2023 and 2024 are
almost identical, so that 2023 does not differ from 2024 in the graph.
Sources: Statistics Greenland.
2025 s
hows that Greenland's tourism is undergoing a structural
shift. Demand is strong, accessibility has been improved, and at
some locations high-summer capacity is pushed to the limit.
This increases the need for a more coordinated, long-term
management of the sector. Naalakkersuisut still has an ambition
for tourism to account for up to 40% of Greenland's exports
in 2035, and for a doubling of tourist numbers. This strategic
direction makes securing a framework that both supports
growth and protects Greenland's nature and local communities
necessary. The Tourism Act that entered into force in 2025 in-
troduces a licence system, a requirement for primarily Green-
landic ownership, and the opportunity for more systematic co-
ordination of tourism activities, including the use of zone agree-
ments and regulated access areas. The purpose is to achieve a
better overview and management of a sector in which activity
is growing rapidly and is unevenly distributed across Greenland.
The Act thereby addresses several real needs, but has also been
criticised, in particular regarding the risk of impeding investment
and creating uncertainty regarding the framework conditions.
One key issue to be aware of is predictability. For some areas
of the sector, including expedition cruises, for which routes,
port calls and logistics are planned several years in advance, sta-
ble and clearly communicated rules are vitally important.
0
50,000
100,000
150,000
2
00,000
2021 2022 2023 2024 2025
0
20,000
40,000
60,000
80,000
100,000
1
20,000
2021 2022 2023 2024 2025*
Annual Report
2025
13
Changes to zone allocation, access restrictions or local guide-
lines at short notice can impede planning and lead to cancella-
tions or cost-intensive adjustments.
The Tourism Act's potential is therefore not only related to ac-
tual regulation, but lies in its implementation and ability to cre-
ate a transparent, modern and predictable framework. The
Act's requirements concerning ownership and organisation also
entail balancing the need for local anchoring with the require-
ment for access to external capital and competences. If this bal-
ance is achieved successfully, the Act can be a key tool in sup-
porting the required growth in tourism, without compromising
nature, culture and local anchoring.
The BANK of Greenland considers it positive that a framework
has been established that is adapted to local communities, na-
ture and security. Restrictions to ownership and thereby op-
portunities for foreign investment are, however, a factor that
can curtail tourism's development. This regulatory instrument is
known from other countries with a wish to promote local
ownership. This well-founded aim can also be a factor that re-
stricts local investment. On the other hand, it is possible to ease
the requirements if the negative effect is greater than expected.
Going forward, the need for coordination and capacity building
will be even more clearly apparent when the airports for Ilulis-
sat and Qaqortoq open. They are both expected to further in-
crease accessibility and attract more travellers. Without equiva-
lent development of overnight accommodation capacity, the
range of attractions, manpower and clear planning frameworks,
some of this potential will not be utilised. The tourism sector
therefore stands at a crucial turning point where timely expan-
sion and predictable framework conditions will be key to realis-
ing Greenland's long-term ambitions.
The mineral and mining industry and other commercial
opportunities
The mineral and mining industry continues to be a key factor in
the discussion of Greenland's future commercial development.
In 2025 there was considerable interest from the surrounding
world, driven by geopolitics and the global demand for critical
minerals. Greenland is increasingly viewed as a potential sup-
plier of these minerals, and exploration activity is still at a rela-
tively high level. Nonetheless, no major new projects have so
far been achieved, which emphasises the sector's well-known
challenges, including high establishment costs, logistical barriers
and global competition that requires strong and stable frame-
work conditions. Investors emphasise the need for solid, availa-
ble data on deposits, volume and extraction conditions, but, just
as important, political stability. Mineral projects in the Arctic
have long time horizons, and are particularly sensitive to
changes in legislation, prioritisations and regulatory practice. Ge-
ological potential and predictable framework conditions are
therefore the factors emphasised as decisive for projects to
progress from interest to realisation. This is well-known and
has previously been described in the BANK of Greenland's an-
nual reports.
The new Minerals Act that came into force in 2025 is a key ele-
ment of this picture. The Act modernises the licence structure
and strengthens the weighting of sustainability and transparency.
The intention is broadly recognised, but its reception has also
been marked by concern. Several business parties and legal ex-
perts point to the risk of greater complexity, longer case pro-
cessing times, and uncertainty concerning how rules and orders
will be administered in concrete terms. For the industry, the
message is clear. The effect of the Act depends not only on its
wording, but also its implementation, and in particular on
whether in practice it offers enterprises the conditions neces-
sary to attract long-term investments.
For all the different parties, one thing is clear. There are ample
development opportunities, but they require early and continu-
ous dialogue between the industry and the political level. This
dialogue is vital for creating realistic expectations and support-
ing the necessary risk sharing. Major mineral projects require
massive capital reserves, a long time horizon and significant in-
frastructure, and they can only be realised with stable, clear and
consistent framework conditions.
Parallel with the minerals sector there is interest in Greenland's
renewable energy resources. Hydropower has strategic com-
mercial potential, and the Maniitsoq area is assessed as one of
the more promising locations for major commercial energy
projects. In 2025, Naalakkersuisut held a Request for Information
(RFI) / Call for Participation as part of the market dialogue on this
major hydropower potential. The purpose was to identify po-
tential recipients, including data centres, energy-intensive pro-
duction, PtX technologies and mining, and also gain an insight
into which types of projects can create greatest long-term value
for Greenland. The process can be viewed as a positive exam-
ple of systematic commercial involvement. This strengthens the
basis for decisions that are both strategic and economically sus-
tainable. However, this process comes after the non-achieve-
ment of previously expected tenders and thus still leaves some
uncertainty as to whether a real tender with a predictable time-
line can be expected.
Structural challenges
For a number of years Greenland has faced various structural
challenges that in 2025 increasingly set the concrete framework
for the development of society and the economy. Limitations
Annual Report
2025
14
to the labour supply, too many people without educational
qualifications, demographic changes and pressure on key wel-
fare functions affect both growth opportunities and economic
resilience. This development emphasises that the structural
conditions can no longer solely be regarded as long-term risks,
but as key factors that require urgent action to ensure the
functioning of the labour market and society's sustainability.
Labour market
The labour market is still characterised by a limited labour sup-
ply and significant differences across geography and industries.
In 2025, the number of registered job seekers was on average
slightly higher than in the preceding years, see Figure 9.
Figure 9
Development in the number of job seekers
Number of registered job seekers
Not e: Monthly figures for the number of registered job seekers. The number is calculated
on the basis of the entire population.
Source: Statistics Greenland.
T
he development is affected by seasonal fluctuations and over-
all indicates a labour market in which there is still relatively lim-
ited unemployment. At the same time, the moderate increase
in 2025 should be interpreted with caution, as changes in the
unemployment benefit rules and the introduction of new allow-
ances for job seekers may have entailed that people who were
not previously part of the labour force are now increasingly
registered as job seekers.
On the other hand, the labour force as a ratio of the popula-
tion has been relatively stable in recent years and is still at a ra-
ther lower level than in the Faroe Islands, but close to the level
in Denmark, see Figure 10. This emphasises a persistent struc-
tural labour supply challenge, which limits the labour market's
overall capacity in terms of qualified manpower, and thereby
economic growth potential.
Figure 10
Workforce as a ratio of the population
Workforce as a ratio of the population of working age
Not e: The fig ure shows t he work f orce (unempl oyed a nd empl oyed in t ot a l ) a s a ra ti o of
the population in Greenland, Denma rk and the Faroe Islands, respectively. Due to
data limitations, the ratios are compiled for marginally different population groups
for t he t hree countries (populations: 16-64 year-olds in Denmark, 15-64 year-olds
in the Faroe Islands and 18-retirement age in Greenland). Reservation is therefore
made for comparability.
Sources: Statistics Denmark, Statistics Greenland and Statistics Faroe Islands.
T
he shortfall in the labour market also affects the development
in growth industries. The tourism sector continues to experi-
ence a shortage of manpower, which can curtail opportunities
to expand activities on a local basis. The use of foreign man-
power has therefore become a more integrated aspect of the
labour market, particularly in the hotel and restaurant sector.
This can help to alleviate capacity problems and support
productivity, but also points to a structural dependence that
can put the labour market in a vulnerable position.
If we consider unemployment in relation to level of education,
it becomes clearly apparent that the labour market's challenges
are not evenly distributed. Unemployment is highest for those
with only lower secondary qualifications, while people with vo-
cational or higher educational qualifications are in employment
to a far greater degree, see Figure 11.
0
1,000
2,000
3,000
4
,000
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
Oct
Jan
Apr
Jul
2019 2020 2021 2022 2023 2024 2025
40%
50%
60%
70%
80%
90%
100%
2017 2018 2019 2020 2021 2022 2023 2024
Greenland Denmark Faroe Islands
Annual Report
2025
15
Figure 8
Unemployment by level of education
Unemployment rate calculated for each of the four education levels
Lower second-
ary school
Upper second-
ary school
Vocational
education
Higher educa-
tion
Not e: The columns show the level of unemployment for each of the four levels of educa-
tion in Greenland from 2019 to 2024.
Sources: Statistics Greenland.
Th
is means that the challenge not only concerns the number of
jobs, but also the match between labour market requirements
and the population's skills and qualifications. The low level of
unemployment for those with higher educational qualifications,
combined with employers' constant demand for these qualifica-
tions, indicates how Greenland is experiencing an "outsourcing"
of high-value jobs abroad. This is apparent from the use of em-
ployees resident outside Greenland, use of consultants and the
use of outsourcing to foreign companies when highly educated
employees are required. This challenge weakens Greenland's
economy, businesses and institutions.
Education
Education is the absolute foundation for Greenland's robust
long-term development. The education system is vital for a
well-functioning labour market, for increasing productivity, and
for opportunities to realise new growth potential in the econ-
omy. The development in educational attainment levels shows
that little progress has been made. Figure 12 shows the distri-
bution of education on the populations between the ages of 25
and 64 in Greenland, Denmark and the EU for 2004, 2014 and
2024. For Greenland, there has been a shift whereby fewer
people only have lower secondary qualifications, and more
people have completed upper secondary education. This indi-
cates that, over time, the education system has had some
impact, but the starting point is still considerably weaker than in
comparable countries. In 2024, almost half of Greenland's pop-
ulation aged 25–64 still only had lower secondary qualifications,
compared to significantly lower shares in both Denmark and
the EU. The proportion with higher education is equivalently
low. This limits the supply of formally educated manpower and
reduces both the labour market's flexibility and the economy's
adaptability.
Figure 9
Development in level of education
Distribution of education
Lower secondary
school
Upper secondary
school
Higher
education
Not e: The columns show the distribution of education on the populations between the
ages of 25 and 64 in Greenland, the EU and Denmark for 2004, 2014 and 2024.
Sources: Statistics Greenland, Eurostat and Statistics Denmark.
Th
e challenge is well-known and has received political attention
for a number of years. Education has therefore also been a pri-
oritised area of public finances. Naalakkersuisut has, among
other things, launched reforms, strategies and objectives with
focus on more people completing upper secondary education,
higher academic levels in lower secondary education, and im-
proved transitions in the education system. Despite these ef-
forts, the overall structures have changed relatively slowly. This
may indicate that the challenge is related to implementation,
follow-up and perseverance, rather than a lack of objectives.
Priority should therefore be given to specific measures, imple-
mented in depth and maintained over time.
It is also vital to maintain the quality of education programmes
at a level that is comparable with international standards.
Greenland must not end in a situation where not enough
young people gain educational qualifications, or where
7.
1%
7.5%
6.2%
5.5%
5.1%
5.8%
1,4% 1,4%
0,9% 0,9%
1.1%
2
.1%
2.3%
1.8%
1.5%
1.4%
1
.4%
1
.5%
0,4% 0,4%
0,3%
0,4% 0,4%
0,3%
4.3%
4.5%
3.7%
3.2%
3.0%
3.3%
2019 2020 2021 2022 2023 2024
Average unemployment rate
64%
57%
49%
19%
21%
16%
32%
25%
20%
24%
29%
34%
48%
43%
39%
47%
48%
44%
12%
14%
17%
33%
36%
45%
21%
28%
36%
2004 2014 2024 2004 2014 2024 2004 2014 2024
Greenland Denmark EU
Annual Report
2025
16
academic standards are eroded. If young people in Greenland
are to have real opportunities to enrol for education pro-
grammes abroad and bring knowledge and skills back to Green-
land, this requires an education system with high academic
credibility.
In this context, the lower secondary school system has a key
role to play. Basic reading, literacy and numeracy skills are es-
sential to ensure that young people can later complete upper
secondary and higher education programmes. Early, persistent
efforts at lower secondary school level can therefore be viewed
as an investment of great importance in the long term for both
the overall education system and for a future well-functioning
labour market. A well-functioning education system of high
quality is essential to improve Greenland's economic resilience
and long-term prospects.
It must be acknowledged that Greenland's politicians are aware
of the need for significant improvement in the education area.
Any such improvement though requires equivalent significant
political measures.
In 2025, Greenland welcomed the historic responsiveness of
Denmark and other parts of the world in terms of coopera-
tion, most recently with a substantial economic framework in
Denmark's Finance Act. The BANK of Greenland considers it
positive that Denmark invests in Greenland, in cooperation
with Naalakkersuisut. In the BANK of Greenland's assessment,
strengthened cooperation and significant investment in capacity
should focus on the education area, in view of the significant
potential returns.
Demographic challenges and health
The demographic development and the capacity of the health
service play an increasing role in safeguarding Greenland's eco-
nomic and social viability. This development affects the labour
supply, public expenditure and opportunities to maintain a well-
functioning labour market in the long term.
Figure 13 shows that the share of the population aged over 60
has increased significantly from 8.2% in 2001 to 18% in 2025,
while the numbers of people aged over 70 or 80 are also in-
creasing. This development reflects the gradual ageing of the
population, which over time exerts pressure on both the health
service and public finances, while at the same time a relatively
smaller proportion of the population is of working age. This is a
well-known trend that has been the subject of analysis for
many years, but the demographic shifts are of increasing signifi-
cance for the actual development in expenditure and the wel-
fare system's capacity.
Figure 1310
Development in the proportion of the population aged
over 60, 70 and 80
Proportion of the population aged over 60, 70 and 80
Not e: Proportion of the population aged over 60, 70 and 80 from 2001 to 2025.
Sources: Statistics Greenland.
D
emographic challenges are amplified by social and economic
inequality. Figure 14 shows that the proportion of the popula-
tion living in relative poverty in Greenland has been at a stable,
significantly higher level than in both Denmark and the Faroe Is-
lands over the last many years. Inequality has consequences be-
yond income levels, as it is often related to differences in health
and education status, and attachment to the labour market. Ine-
quality can thereby contribute to lower labour market partici-
pation and higher public spending, which further challenges
economic resilience.
Figure 1411
Inequality in Greenland compared to Denmark
and the Faroe Islands
Proportion of the population living in relative poverty
Not e: The proport ion of t he popul a t ion a ged over 1 4 yea rs whos e i ncome i s bel ow 5 0% of
the median of the equivalised disposable income. Equivalised disposable income is
an income measure that corrects income on the basis of the number of family
members, i.e. the scale economies that may arise from more adults and the ex-
penses associated with having children. Due to data limitations, for the Faroe Is-
la nds t hi s i s t he proportion a ged over 1 7.
Sources: Statistics Denmark, Statistics Greenland and Statistics Faroe Islands.
8.2%
18.0%
2.8%
5.7%
0.5%
1.2%
0%
5%
10%
15%
20%
2001
2003
2005
2007
2009
2011
2013
2015
2017
2019
2021
2023
2025
Proportion over 60 years of age Proportion over 70 years of age
12%
4%
2%
0%
5%
10%
15%
2016 2017 2018 2019 2020 2021 2022 2023 2024
Greenland Denmark Faroe Islands
Annual Report
2025
17
In this context, the health service is a key bearing element for
society and the labour market. A well-functioning health service
is essential for a stable and well-educated workforce, and for
maintaining productivity. Moreover, a well-functioning health
service is also a condition for financially resourceful families
continuing to live in Greenland. The health service in itself is
also a significant part of the public sector and total public ex-
penditure.
Figure 15 shows that there are substantially more admissions in
Greenland compared to Denmark, adjusted for population size.
Figure 1512
Development in number of admissions
Number of admissions per 1,000 residents
Not e: Number of admissions in Denmark and Greenland per 1,000 residents. In Den-
mark, admissions are defined as hospital stays of +12 hours. The Y axis is broken,
to make the trend for Denmark clearer.
Sources: Sundhedsrådets (Danish Health Council) Annual Report 2025, Statistics Greenland,
Sundhedsdatabanken (health databank) and Statistics Denmark.
The Health Council's 2025 Annual Report shows that in
Greenland there were a total of 28,957 admissions in 2024,
equivalent to 511 admissions per 1,000 residents. In the same
year in Denmark, there were 116 admissions per 1,000 resi-
dents. Besides the clear difference in levels, the number in
Greenland also increased by around 16% during the four-year
period. For comparison, the number fell by around 4% in
Denmark in the same period.
The level of admissions indicates a large burden on the health
service, amplified by the demographic challenges highlighted in
Figure 13. The Health Council's Annual Report also shows that
in 2024 there were 11,578 unique patients admitted, equivalent
to around 20% of the population. Moreover, this does not take
account of patients treated in Denmark. This entails a significant
direct economic burden on the health service and also reflects
an underlying structural challenge, where the burden of ill
health can affect the labour supply and thereby productivity.
The challenges are even more apparent from the personnel
costs in Greenland's health service. Figure 16 shows a significant
increase in personnel costs since 2020. Spending on temporary
personnel in particular rose from DKK 22 million in 2020
(15%) to around DKK 72 million in 2024 (30%).
Figure 16
Development in personnel costs
DKK million
Not e: The columns show personnel costs in Greenland's health service for the period
from 2020 to 2024. The costs are compiled a s categories by type of spending.
Sources: The Danish Health Council's 2025 Annual Report.
The development reflects persistent challenges with recruiting
and retaining permanent staff, which is also highlighted in the
Health Council's 2025 Annual Report. Using temporary em-
ployees is a flexible, but cost-intensive solution that does not
contribute to a stable, long-term foundation for the health ser-
vice, and which can affect both the quality and continuity of
treatment. The development in the health service thereby illus-
trates a broader structural challenge. When it is difficult to re-
tain personnel in key welfare functions this increases both the
direct costs and the economic consequences. A health service
that is under pressure affects not only public budgets, but also
how well the labour market functions and the population's op-
portunities to contribute actively to the economy.
To a high degree, Greenland's structural challenges set the
framework for both economic development and society's via-
bility. A limited labour supply, continued relatively low attain-
ment of educational qualifications, and demographic shifts in-
crease the pressure on the labour market and public finances.
The development in the health service also emphasises that the
welfare system's sustainability is closely related to the popula-
tion's opportunities for education and employment. This draws
a clear picture of how long-term economic resilience requires
121
121
119
116
440
446
479
511
0
100
200
300
400
500
600
2021 2022 2023 2024
Hospital admissions per 1,000
inhabitants
Denmark Greenland
35%
33%
31%
27%
27%
16%
16%
15%
13%
12%
15%
15%
22%
29%
30%
22%
23%
21%
19%
17%
13%
13%
12%
12%
14%
151
169
192
225
242
2020 2021 2022 2023 2024
Hourly wages Overtime
Temporary staff costs Recruitment and termination costs
Other personnel costs
Annual Report
2025
18
cohesive solutions that can strengthen competences, the labour
supply and key welfare functions.
Just like the education system, the healthcare system is one of
society's key bearing elements. As described, a weakening of
these elements presents a number of challenges. These are also
key elements for opportunities to retain financially and voca-
tionally strong residents and families in Greenland. The chal-
lenges are described in the health commission's report, and like
education, this is an area in obvious need of significant changes.
In this case too, these are changes that can be achieved by
rethinking and strengthening the cooperation with Denmark
and EU.
Value of geopolitical investments
2025 was a year in which there was significant geopolitical fo-
cus on Greenland. The start of the year was affected by the
USA's massive pressure against Greenland, which gave rise to
uncertainty, bordering on fear, and which came as a shock to
much of the population.
This international interest is driven by Greenland's strategic po-
sition, importance for security policy and access to critical re-
sources. This development has also emphasised that geopolitics
not only concern investment and cooperation, but also serious
security policy tensions, with Greenland's geographical location
as a central element.
The course of events in 2025 has resulted in a number of con-
crete agreements and investments of significance to Green-
land's society and economy.
In 2025, the cooperation with Denmark resulted in decisions
and investments in the areas of defence, emergency manage-
ment and infrastructure, while building a stronger relationship.
Expansion of military and organisational capacity, including new
facilities and structures, creates local activity and jobs and also
presents opportunities for dual utilisation, whereby investments
can also support non-military purposes such as emergency
management, transport, and search and rescue capacity.
The EU and its member countries has also increasingly posi-
tioned itself as a strategic partner. The EU's involvement is di-
rected at such areas as minerals, infrastructure and knowledge
acquisition and can contribute to curtailing risks in projects that
would otherwise be difficult to achieve in Greenlandic condi-
tions. This type of geopolitical engagement can serve as a cata-
lyst for investment, whereby value is measured not only as ex-
ports or revenue, but also as stronger capacity and institutional
robustness.
The economic value of geopolitical investments thereby lies not
only in the individual projects, but also in their lasting effect. Im-
proved emergency management, stronger search and rescue
capacity, greater accessibility and a more stable infrastructure
are of concrete value for residents, business and industry, and
local communities. Geopolitical engagement can also contribute
to resolving structural challenges.
Greenland's geopolitical position thus has the potential to create
economic and social value. This potential cannot be realised au-
tomatically, however, but requires that investments take account
of society's long-term need for skills and qualifications, labour
supply and welfare. In this context, the geopolitical focus can be
used wisely as an important supplement to Greenland's own
economic and social development.
Annual Report
2025
19
Annual Report
2025
20
About the BANK of Greenland in Brief
The BANK of Greenland was established in 1967 by a group of
Danish banks. The founding general meeting was held on 26
May 1967 at Danske Bankers Fællesrepræsentation’s premises
in Copenhagen. This marked the birth of the first bank in
Greenland. The Bank opened on 1 July 1967.
Nine months before, Bikuben (restructured in 1985 as Nuna
Bank) established a branch in Nuuk. In 1997, the BANK of
Greenland and Nuna Bank merged.
The BANK of Greenland's mission
“The BANK of Greenland creates income and value through
advisory services and other services in the financial area for all
citizens of Greenland. We support society by promoting finan-
cial understanding, cooperating with educational institutions and
the business community, and supporting sustainable local initia-
tives and development.”
The Bank's mission should thus be viewed in a broader per-
spective whereby the BANK of Greenland can be seen as the
Bank for all of Greenland. This imposes an enhanced responsi-
bility to participate positively and actively in society’s develop-
ment and to help to create opportunities in Greenland, while
also ensuring sound financial activities. The BANK of Greenland
is highly aware of this vital role.
The BANK of Greenland's values
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
serve as a guide for how we act and wish to be seen within
and outside the Bank.
The BANK of Greenland's strategy, vision and
objectives
In December 2024, the BANK of Greenland's Board of Direc-
tors approved the Bank's strategy for the coming years. “Strat-
egy 2028” will support the vision and objective to be “for the
benefit of Greenland”. The strategy determines the Bank’s key
development areas for the coming years, as well as setting out
an overall action plan. The Bank seeks to involve all staff in
achieving the Bank's vision to be “for the benefit of Greenland”.
The BANK of Greenland hereby wishes to ensure the Bank's
continued favourable development through a balanced focus on
the three main areas:
Business development, employee development and
customer experience
On an annual basis, the main areas are included in objectives,
which are continuously adjusted to the long-term strategy and
vision for 2028. The BANK of Greenland will thereby ensure
that we continue to give value to society and are the preferred
bank for customers, shareholders and employees, fulfilling the
vision to be “for the benefit of Greenland”.
Figure 1
The Bank’s vision for 2028 – for the benefit of Greenland
Annual Report
2025
21
Summary of Financial Highlights
DKK 1,000
2025
2024
2023
2022
2021
SELECTED OPERATING ITEMS:
Net interest and fee income
428,840
470,264
435,012
351,485 338,933
Other operating income
6,340
5,400
5,803
6,588 6,185
Core income
435,180
475,664
440,815
358,073
345,118
Staff and administration expenses
244,385
226,362
211,166
195,056 186,385
Depreciation and impairment of tangible
assets 9,621
9,017
8,158
7,320 7,014
Other operating expenses
3,270
4,255
2,815
2,706 2,497
Core expenses
257,276
239,634
222,139
205,082
195,896
Core earnings
177,904
236,030
218,676
152,991
149,222
Value adjustments
19,024
28,578
40,058
-39,356 11,219
Write-downs on loans and receivables, etc.
15,539
18,909
14,160
4,523
1,537
Profit before tax
181,389
245,699
244,574
109,112
158,904
Tax
536
36,689
52,179
10,361 26,072
Profit for the year
180,853
209,010
192,395
98,751
132,832
SELECTED BALANCE SHEET ITEMS:
Lending
4,921,760
5,030,995
4,812,975
4,353,585 3,783,681
Deposits
7,873,973
7,152,807
6,413,469
5,942,479 5,363,871
Equity
1,599,024
1,593,622
1,479,123
1,318,592 1,267,911
Total assets
10,974,460
10,021,543
8,840,981
7,949,566 7,226,988
Contingent liabilities
1,275,574
1,422,643
1,774,426
1,934,125 1,781,465
KEY FIGURES FOR THE BANK (IN PER CENT)
Return on opening equity before tax and dividend
12.4
17.5
18.9
9.0 13.9
Return on opening equity after tax and dividend
12.4
14.9
14.9
8.1 11.6
Capital ratio
27.8
26.9
26.0
23.6 24.4
Individual solvency requirement
10.9
11.1
11.1
11.1 10.7
KEY RATIOS PER SHARE IN DKK
Profit for the
year per share, before tax 100.8
136.5
135.9
60.6 88.2
Profit for the year per share, after tax
100.5
116.1
106.9
54.9 73.8
Net book value per share
888
885
822
733 704
Dividend per share
80
100
55
20 40
Closing share price
880
700
625
590 598
Definition of key figures for the Bank
Core earnings
Core income (Net interest and fee income and other operating income) minus core expenses (Staff and administration expenses,
depreciation and impairment
and tangible assets and other operating expenses).
The period’s return on equity before tax and after dividend
Profit before tax as a ratio of equity less the taxable value of dividend.
The period’s return on equity after tax and after dividend
Profit after tax as a ratio of equity less the taxable value of dividend.
Annual Report
2025
22
Management’s Review for 2025
Principal activity
The BANK of Greenland’s principal activity is to offer financial
services to private customers, business customers and public in-
stitutions in Greenland. The Bank wishes to offer a wide range
of products that is adapted to Greenland’s society and custom-
ers’ requirements, combined with professional advisory ser-
vices.
Statement of income
Net interest income decreased by TDKK 44,644 from 2024. A
declining level of interest rates in the first half of 2025 is the
primary reason. Increasing deposits and thereby higher surplus
liquidity had a moderating effect, however.
Dividend on the Bank's shareholdings amounts to TDKK
11,971, compared with TDKK 8,859 in 2024. The most signifi-
cant reasons for the increase are that the Bank has increased its
shareholding in DLR Kredit A/S, and moreover, BI Holding paid
out extraordinary dividend in December 2025.
Fee and commission income increased by TDKK 270 from
2024 to 2025. The increase is driven by higher securities earn-
ings, including for the Bank's Qimatut pension product.
Other operating income, primarily external rental income on
the Bank's residential properties, amounted to TDKK 6,340,
compared with TDKK 5,400 in 2024.
Staff and administration expenses increased by TDKK 18,023 to
TDKK 244,385. Staff expenses increased as a consequence of
pay increases under collective agreements and investment in
staff increases. Administration expenses were at a higher level
of TDKK 115,339 compared with TDKK 106,438 in 2024. The
higher level primarily reflects an increase in IT costs related to
BEC Financial Technologies.
Depreciation of property and fixtures and fittings increased to
TDKK 9,621 compared with TDKK 9,017 in 2024. Additional
staff properties and value adjustment of properties increased
depreciation in 2025.
Other operating expenses decreased by TDKK 604 to TDKK
3,270. Other operating expenses primarily concern operation
and maintenance of bank buildings, as well as contributions to
Afviklings- og Garantiformuen (the Settlement and Guarantee
Capital scheme). The decrease in expenses is primarily related
to contributions to the scheme.
The profit before value adjustments and write-downs is
thereby, as expected, lower than in 2024, at TDKK 177,904,
compared with TDKK 236,030 in 2024.
Considering Q4 2025 in isolation, net interest and fee income
amounted to TDKK 108,944, compared with TDKK 114,392
for the same period of 2024. The development in Q4 2025 is
primarily due to higher fee income in Q4 compared with Q3
2025. Comparison of the quarters of 2025 with the quarters of
2024 shows declining income from interest, although the differ-
ence is lower in Q4.
Total costs are at the level of the same period of the previous
year, amounting to TDKK 65,923, compared with TDKK
65,959 in Q4 2024.
Value adjustments amount to TDKK 5,396 and are thereby
lower than in the same quarter of 2024, which should, how-
ever, be viewed in the context of the aforementioned extraor-
dinary dividend from BI Holding in Q4 2025.
Selected Highlights and Key Figures
DKK 1,000
Q4
Q3
Q2
Q1
Q4 Q3 Q2
Q1
2025
2025
2025
2025
2024
2024
2024
2024
Net interest and fee income
108,944
100,250
111,691
107,955
114,392
113,509
122,734
119,629
Costs, depreciation and amortisation
65,923
62,977
63,992
64,384 65,959 56,190 58,299
59,186
Other operating income
1,500
1,459
1,635
1,746
1,428
1,355
1,316
1,301
Profit before value adjustments and write-downs
44,521
38,732
49,334
45,317
49,861
58,674
65,751
61,744
Value adjustments
5,396
9,345
-2,907
7,190 6,004 18,657 -1,450
5,367
Write-downs on loans, etc.
987
32
1,096
13,424
3,745
3,892
5,946
5,326
Profit before tax
48,930
48,045
45,331
39,083
52,120
73,439
58,355
61,785
Annual Report
2025
23
Write-downs and provisions are TDKK 987 lower than for the
same period last year. The profit before tax in Q4 is thus TKK
48,930, compared with TDKK 52,120 in the same quarter of
2024.
For the overall year, value adjustment of securities and curren-
cies resulted in a gain of TDKK 19,024, compared with a gain
of TDKK 28,578 in 2024. The Bank’s holdings of sector equities
gave lower gains than the previous year, although this should be
viewed against higher share dividends. The market's perfor-
mance entailed lower capital gains on the Bank's bond holdings,
but nonetheless a gain for the year of DKK 7.5 million in 2025,
compared with a gain of DKK 16 million in 2024. Exchange rate
adjustments show an increase from the previous year.
Impairment write-downs on loans, etc. were TDKK 15,539 in
2025, which is TDKK 3,370 lower than in 2024. This is still a
modest overall level. The total impairment write-downs
amount to 0.2% of the Bank's loans and guarantees. The Bank
continues to see generally strong credit quality in the lending
portfolio.
In addition to the Bank's individual impairment models, a man-
agement estimate is allocated, which at the end of 2025 totalled
DKK 41.1 million. The estimate addresses industry and credit
risk, but in particular also risks associated with inflation and cy-
clical uncertainties, as well as ESG risks.
The profit before tax is TDKK 181,389, compared with TDKK
245,699 in 2024. The profit for the year is thereby within the
interval of DKK 180-182 million most recently stated in January
2026. The profit before tax gives a return on equity of 11.4%.
Tax is calculated at 25% of the profit before tax, adjusted for
non-tax-liable income and non-deductible expenses. The profit
after tax is TDKK 180,853 for 2025, with a return on equity of
11.3%.
Balance sheet and equity
The BANK of Greenland's balance sheet at year-end 2025 to-
talled a record TDKK 10,974,460, which is an increase of
TDKK 95,917 from 2024. Deposits were on a rising trend
throughout 2025, amounting to TDKK 7,873,973 at the end of
2025. Compared with 2024, this is an increase of TDKK
721,166. Deposits primarily increased in the public-sector cus-
tomer segment and from business customers in 2025. The
Bank’s deposits are mainly held on demand.
Lending in 2025 decreased by 2.2% or TDKK 109,235 to
TDKK 4,921,760 after maintaining a higher level for most of the
year. At the beginning of 2025, the Bank expected that
Greenland's economic performance would entail a modest in-
crease in lending in 2025. However, lending declined slightly in
2025, due to changes in major construction financing projects
in Q4 2025. At the same time, the Bank’s guarantees decreased
by TDKK 147,069 to TDKK 1,275,574.
Total loans and guarantees thereby decreased by a total of
TDKK 256,304 to TDKK 6,197,334.
Development in business scope
DKK 1,000
The Bank’s bond holdings increased by TDKK 23,928 to TDKK
1,522,468.
Land and buildings increased by TDKK 16,856 to TDKK
327,716 in 2025. Due to increasing staff numbers, the Bank ac-
quired five new staff accommodation units in 2025.
The pension area, expressed as assets in pool schemes and in-
cluding returns, increased by 15% in 2025, to TDKK 780,071.
In accordance with the capital plan, in 2025 the Bank made an
additional Senior-Non-Preferred bond issue of TDKK 125,000,
while TDKK 50,000 was redeemed.
The Bank also issued supplementary capital of TDKK 40,000 in
2025.
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
7.500.000
8.000.000
2021 2022 2023 2024 2025
Deposits Lending Guarantees
Annual Report
2025
24
Equity amounts to TDKK 1,599,024, compared with TDKK
1,593,622 at the end of 2024. Share capital amounts to TDKK
180,000. The capital ratio is 27.8, compared with 26.9 in 2024.
Uncertainty of recognition and measurement
The main uncertainties concerning recognition and measure-
ment are related to write-downs on loans, provisions on guar-
antees, the valuation of financial instruments, and properties.
The management assesses that the uncertainty concerning the
presentation of the accounts for 2025 is at a responsible level
and is unchanged from the previous year.
Compliance and anti-money laundering
In 2025, the BANK concluded and closed the mandatory or-
ders issued by the Danish FSA in connection with inspection of
the anti-money laundering area in 2024.
The mandatory orders received after the inspection are de-
scribed on the Bank’s website under the following link (Danish
only):
https://www.banken.gl/media/sy0dmrtb/redeg%C3%B8relse-
om-hvidvaskinspektion-juni-2024.pdf
The Bank has established a separate department to handle anti-
money laundering and measures to prevent the financing of
terrorism. The department is among other things responsible
for control of new customer registrations, alarm processing and
reporting to the Anti-Money Laundering Secretariat. In addition,
the department undertakes the annual reporting to the Board
of Directors concerning the Bank’s money laundering risks.
There is also a separate compliance function. The compliance
function is responsible for independent reporting to the Execu-
tive Management and the Board of Directors. The compliance
function reports directly to the Executive Management, which
receives regular reports. The Board of Directors receives two
annual reports on compliance risks in the Bank.
The compliance function is responsible for assessment and con-
trol of compliance with applicable legislation, market standards
and internal regulations. In addition, it advises on how compli-
ance risks can be managed and reduced.
In August-September 2025, the Danish FSA conducted an ordi-
nary inspection of the Bank, during which all significant risk ar-
eas were reviewed. The inspection resulted in one mandatory
order, which the Bank has noted. The inspection report (Dan-
ish only) can be found at: https://www.banken.gl/me-
dia/gywd41os/redegoerelse-om-inspektion.pdf
Financial risks
The BANK of Greenland is exposed to various financial risks,
which are managed at different levels of the organisation. The
Bank’s financial risks consist of:
Credit risk: Risk of loss as a consequence of debtors’ or coun-
terparties’ default on actual payment obligations.
Market risk: Risk of loss as a consequence of fluctuation in the
fair value of financial instruments and derivative financial
instruments, due to changes in market prices. The BANK of
Greenland classifies three types of risk within the market risk
area: interest rate risk, foreign exchange risk and share risk.
Liquidity risk: Risk of loss as a consequence of the financing
costs increasing disproportionately, the risk that the Bank is
prevented from maintaining the adopted business model as a
consequence of a lack of financing/funding, or ultimately, the
risk that the Bank cannot fulfil agreed payment commitments
when they fall due, as a consequence of the lack of financ-
ing/funding.
Operational risk: The risk that the Bank in full or in part incurs
financial losses as a consequence of inadequate or deficient in-
ternal procedures, or human errors, IT systems, etc.
Capital requirement
The BANK of Greenland must by law have a capital base that
supports the risk profile. At the end of 2025, elements of the
CRR3 EU capital requirement regulations entered into force in
Greenland. The BANK of Greenland compiles the credit and
market risk according to these regulations and the operational
risk is now compiled according to the business indicator
method. Concerning risk management, reference is made to
Note 2.
MREL requirement
The requirement concerning own funds and eligible liabilities
must be viewed as an element of the recovery and resolution
of banks. This entails that banks which are subject to this re-
quirement must maintain a ratio of capital instruments and debt
obligations that, in a resolution situation, can be written down
or converted before simple claims.
On 10 December 2024, a revised MREL requirement was de-
termined by the Danish FSA for the BANK of Greenland, at
30.2% including buffers. The MREL requirement is being phased
in up to 2027. This means that in the course of the coming
years, the Bank must fulfil the requirement by issuing capital in-
struments and through consolidation of equity capital.
Annual Report
2025
25
On the basis of the established MREL requirement, the Bank
made two further issues in 2025, with a view to targeted cov-
erage of the MREL requirement. Issues of DKK 125 million Sen-
ior Non-Preferred and DKK 40 million subordinated debt were
made.
Capital requirement
2025 2024
Solvency requirement
10.9% 11.1%
SIFI buffer requirement
1.5% 1.5%
Capital reserve buffer requirement
2.5% 2.5%
Capital requirement
14.9% 15.1%
MREL
add-on (phased in from 1 January 2022) 10.2% 7.5%
Total capital requirement (MREL and
buffer requirement)
25.1% 22.6%
MREL capital ratio, cf. Note 23
33.9% 31.7%
Surplus capital cover
8.8% 9.1%
Total capital requirement at the end of
2025 /
2024
25.1% 22.6%
MREL add
-on phasing in 01.01.2026 / 01.01.2025 2.6% 2.5%
Countercyclical capital buffer 01.01.2026
0.5% -
Countercyclical capital buffer 01.07.2026
0.5% -
Total capital requirement 2026 / 2025
28.7% 25.1%
Surplus
capital cover 2026 / 2025 5.2% 6.6%
The MREL requirement is being phased in as from 1 January
2022 on a linear basis over six years. This entails that the Bank
must fulfil an MREL requirement including buffers of 25.1% in
2025. As from 1 January 2026, the Bank must fulfil an MREL re-
quirement including buffers of 28.2% and from 1 July 28.7%, on
the basis of the revised MREL requirement including buffers of
31.2%.
Sound capital
In accordance with the Danish Financial Activities Act, the
Board of Directors and the Executive Management must en-
sure that the BANK of Greenland has an adequate capital base.
The capital adequacy requirement is the capital which, accord-
ing to the management’s assessment, as a minimum is needed
to cover all risks.
The BANK of Greenland was designated as an SIFI institution in
April 2017. Based on the requirements concerning eligible liabil-
ities, the Board of Directors expects that the total capital re-
serves must be increased during the coming years. The aim of
the Board of Directors is that there must be sufficient capital
for growth in the Bank’s business activities. There must also be
sufficient capital to cover ongoing fluctuations in the risks as-
sumed by the Bank.
The Bank's risk-weighted assets amount to TDKK 5,719,593,
compared with TDKK 5,710,361 in 2024. CRR3 was imple-
mented in Greenland's legislation at the end of 2025 and the
effect of the new legislation was recognised in the compilation
of the risk-weighted assets at the end of 2025.
The Bank’s Board of Directors has adopted a capital objective
with a CET1 target of 24%. The BANK of Greenland’s core
capital ratio was 25.3 at the end of 2025, and the capital ratio
was 27.8 after payment of the proposed dividend. The actual
core capital ratio is thereby above the long-term target of 24.
In view of the previously mentioned geopolitical uncertainty to
which Greenland is subject, and the expected balance sheet de-
velopment in 2026, the Bank considers it appropriate to be
capitalised higher than the target level.
Based on the aforementioned, the Bank’s Board of Directors
proposes to the Annual General Meeting that dividend of DKK
80 per share be paid for 2025, equivalent to 80% of the profit
after tax.
As at 31 December 2025, the Bank’s individual solvency re-
quirement was compiled at 10.9%. The BANK of Greenland
thereby has surplus capital cover before the buffer require-
ments of 16.9%. After deductions for the capital reserve buffer
requirement of 2.5% and the SIFI buffer requirement of 1.5%,
the surplus cover is 12.9%.
In December 2024, the Minister of Industry, Business and Fi-
nancial Affairs approved the phasing-in of a contracyclical capital
buffer requirement of 0.5% as from 1 January 2026, and an ad-
ditional 0.5% as from 1 July 2026.
The individual solvency requirement is compiled on the basis of
the Order on the calculation of risk exposures, capital base and
solvency requirements, as well as the Danish FSA’s guideline in
this respect. On the basis of the calculated capital requirement,
the Bank has compiled surplus cover at TDKK 965,845, which
comprises the difference between the capital requirement (sol-
vency requirement) and the actual capital (capital ratio). The
management assesses that the capital is adequate to cover the
risk entailed by the Bank’s activities.
The BANK of Greenland's capital plan meets the requirements
in full, so that the annual financial statements are presented on
a going-concern basis.
Reference is made to the BANK of Greenland’s website for a
description and amplification of the method of calculation of
the capital and solvency requirement for 2025.
Annual Report
2025
26
Reference is also made to the Bank's risk management report
for 2025 at: https://www.banken.gl/en/about-us/investor-rela-
tions/risk-reports/
The BANK of Greenland’s calculated capital and solvency requirement according to the 8+ model
DKK 1,000
2025
2024
Capital
requirement
Solvency
requirement
Capital
requirement
Solvency
requirement
Pillar I requirement
457,567 8.0%
456,829
8.0%
Credit risk
88,719
1.6%
114,534
2.0%
Market risk
30,891
0.5%
27,320
0.5%
Liquidity risk
2,495 0.1%
6,270
0.1%
Operational risk
13,920
0.2%
23,621
0.4%
Other risk
30,498
0.5%
5,524
0.1%
Capital and solvency requirement
624,090
10.9%
634,098
11.1%
Liquidity
The BANK of Greenland has a comfortable deposit surplus and
the Bank’s funding is based on deposits and capital issues.
The official measure of liquidity is the Liquidity Coverage Ratio
(LCR), which is a minimum requirement of the ratio between
current assets and liabilities, to ensure a satisfactory liquidity ra-
tio. LCR must be at least 100%.
At the end of 2025, the Bank had an LCR of 297.2% and
thereby fulfilled the LCR requirement.
DKK 1,000
2025
2024
Liquidity buffer LCR
4,413,620
3,454,167
Outflow, net
1,485,000
1,297,598
LCR
297.2%
266.2%
The Supervisory Diamond
The BANK of Greenland has considered the benchmarks set
out in the Danish FSA’s Supervisory Diamond for banks. The
Supervisory Diamond states four benchmarks for banking activ-
ities which the Bank aims to fulfil. At the end of 2025, the
BANK of Greenland lies within all of the threshold values in the
Supervisory Diamond.
In accordance with the table below, the sum of the Bank's 20
largest exposures can be stated at 129.7%, which is adequately
below the Danish FSA's threshold of 175%. It must be noted
that approximately 35% points concern exposures to publicly-
owned enterprises.
The property exposure has been reduced and amounts to
19.0%, according to the table below. This exposure 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 these factors contribute to stabilising the overall sector ex-
posure.
Investor relations
The BANK of Greenland seeks to ensure transparency con-
cerning the Bank and there is good communication and dia-
logue with the Bank’s shareholders and other stakeholders. This
takes place, for example, by providing information to Nasdaq
OMX Copenhagen, where the Bank is listed. The purpose of
publishing information is to:
• Comply with applicable disclosure obligations and current
stock-exchange ethical regulations.
• Ensure openness concerning the Bank.
Supervisory diamond
2025
2024
Limit
Sum of large exposures
129.7%
136.0%
< 175%
Property exposure
19.0%
19.8%
< 25%
Growth in lending
-2.2%
4.5%
< 20%
Liquidity benchmark
297.9%
268.4%
> 100%
Annual Report 2025
27
• Ensure good and positive dialogue with the Bank’s stake-
holders.
• Increase awareness of the BANK of Greenland in investor
circles in Greenland and abroad.
• Give investors structured, continuous and planned infor-
mation which fulfils the investors’ information requirements
when investment decisions are taken.
• Increase the liquidity of the BANK of Greenland share.
The objective will result in rapid, accurate information concern-
ing both price-relevant and other matters relating to the Bank.
The BANK of Greenland entered into a collaboration with HC
Andersen Capital, which includes quarterly online investor
presentations.
The BANK of Greenland publishes information that may be of
relevance to its share price as company notifications via Noti-
fied – Nasdaq OMX and on the Bank’s website under “Inves-
tor” https://banken.gl/en/about-us/investor/ . The content of the
notifications includes quarterly, interim and annual reports, in-
cluding management reviews, general meetings and other news.
All company notifications are drawn up in Danish and English
on publication. Furthermore, information is made available in
Danish, Greenlandic and English on our website:
https://banken.gl/en/about-us/investor/.
When investor presentations are held, the material is subse-
quently published on the BANK of Greenland’s website, so that
it is generally available.
The Executive Management is responsible for informing inves-
tors and other stakeholders, by agreement with the Board of
Directors. In special cases, the Executive Management may au-
thorise senior staff members to notify investors and other
stakeholders.
At a price of 880 at the end of 2025, the price of the BANK of
Greenland’s share has increased since the end of 2024, when
the price was 700. The BANK of Greenland proposes to the
Annual General Meeting that the dividend payment for 2025 is
DKK 80 per share, or a total of DKK 144 million. It should be
noted that in Greenland dividend is tax deductible for the divi-
dend-paying company.
Shareholders
The BANK of Greenland’s overall financial objective is to
achieve a competitive return for the shareholders.
At 31 December 2025, the BANK of Greenland had 2,873
shareholders registered by name, which is higher than at 31
December 2024, when the number of shareholders registered
by name was 2,484. Shareholders registered by name account
for approximately 92% of the share capital. In accordance with
Section 28a of the Danish Companies Act, six shareholders
have notified shareholdings in excess of 5%, see Note 22.
Dividend policy
The BANK of Greenland’s objective is to continue to distribute
dividend to its shareholders, according to the expected devel-
opment in the Bank’s operations and balance sheet, tax optimi-
sation and regulatory solvency requirements. The dividend pay-
ment for 2025 recommended to the Annual General Meeting
is DKK 80 per share, which should be viewed in conjunction
with the description given under Capital. The capital ratio is
27.8 and the core capital ratio is 25.3, and thereby above the
long-term target of 24, see the previous description.
Historic pay-out ratio
Not e: Under Greenland’s tax legislation, distributed dividend is fully tax-deductible.
Events occurring after the close of the financial year
As from the balance sheet date and up to today’s date no
events have occurred to change the assessment of the Annual
Report.
Outlook for 2026
Greenland is assessed to face economic challenges at the start
of 2026. The BANK of Greenland expects low economic
growth in Greenland in 2026, as described under “Greenland's
Society and Economy” in this report.
The massive focus on Greenland, which escalated again at the
beginning of 2026, can affect the economic development and
the framework conditions in Greenland, in both the short and
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Pay-out ratio (before tax)
Pay-out ratio (after tax)
Annual Report 2025
28
longer term. However, the BANK of Greenland has no basis to
assess that this will be of significant importance in the short
term in 2026, so in this report, the Bank continues to base the
assessment on the national economic conditions. However, the
greater cooperation with Denmark and the EU, among others,
must be expected to lead to a number of investments in
Greenland, and the addition of further economic activity. This
may already have an effect on GDP and the level of activity in
2026, and must be expected to lead to an increase in activity in
the coming years.
Interest rates that remain almost unchanged are expected to
increase the propensity to invest, and lending is expected to de-
velop positively towards the end of the year. Deposits are ex-
pected to be at the level of, or to decrease slightly from, the
end of 2025.
The Bank will be affected if inflation and cyclical trends are ex-
acerbated or amplified to any significant degree.
Total core earnings are expected to decrease slightly in 2026,
for which the primary reason is that the development in inter-
est rates in 2025 will exert its full effect in 2026.
Total expenses including depreciation and amortisation are ex-
pected to be slightly higher than in 2025. No staff increases are
expected in 2026, although the full effect of the staff increases
in 2025 is expected. Administration expenses are also expected
to increase, primarily in the IT area.
The Bank assesses that the credit quality of the loan portfolio is
satisfactory. Impairment write-downs on loans are therefore
still expected to be at a low, but normalised, level.
Based on the expected level of interest rates, gains on the
Bank’s listed securities must be expected. Capital gains are also
expected from the currency area and sector equities.
Based on these conditions, a profit before tax at the level of
DKK 145-175 million is expected in 2026, compared with DKK
181.4 million in 2025. The result is in accordance with the stock
exchange announcement of 9 December 2025.
Customers
In 2025, the BANK of Greenland continued to focus on cus-
tomer satisfaction, which is measured by an annual customer
satisfaction survey and is a key element of the Bank's "For the
benefit of Greenland" strategy. Customer satisfaction is meas-
ured via NPS (Net Promoter Score) and annual customer sur-
veys, where feedback from both business and private custom-
ers is used to develop concrete improvement measures. Our
customers’ constructive feedback is welcomed with great ap-
preciation and we know that our customers appreciate being
heard.
In 2025, the Bank's Business Department focused on strength-
ening relationships with business customers by offering value-
creating business advisory services. The customer survey shows
that the relationship with the adviser is vitally important for cus-
tomer satisfaction.
During the year, the Bank facilitated a number of business
events and network activities, under such topics as "Partner-
ships for growth" and "Business development around the Disko
Bay". These initiatives support the Bank's ambition to be a
power centre that contributes to growth and innovation
throughout Greenland.
In 2025, the Bank launched the "Tourism Loan" product, which
aims to support local initiatives and develop the experience
economy in Greenland, which is a key element of the Bank's
strategy.
Private customers are offered a simple and flexible product
range, and these products are used to provide individual solu-
tions to each customer’s needs and wishes. Ongoing contact
and dialogue with the customer is crucial to ensuring a good
customer relationship, and the Bank seeks to be available both
in person and on the digital platforms required by the cus-
tomer.
In 2025, the Bank had the major task of updating all of our cus-
tomers' scope and purpose of business with the Bank. This is to
protect customers, the Bank and Greenland in general from
economic crime.
The Bank and society
The day-to-day business with the Bank's customers in the
course of the year gave income totalling DKK 439 million, com-
pared with DKK 485 million in 2024. The income is the sum of
net interest and fee income, other operating income and value
adjustments, after deduction of write-downs on loans.
The Greenland Government and the municipalities receive cor-
porate tax, dividend tax and tax on staff remuneration. Employ-
ees receive salary and pension contributions, etc., after deduc-
tion of PAYE tax. The purchases made by the Bank from Dan-
ish suppliers are mainly IT services from BEC Financial Technol-
ogies, and sector-related costs for other financial providers, etc.
Annual Report 2025
29
The BANK of Greenland makes a significant contribution to so-
ciety as tax payments in the last three years amounting to an
average of DKK 130 million per year.
DKK million
Employees
Our employees are the Bank's DNA and our most important
resource, and it is our employees who create and maintain
trusting relationships with our customers on a day-to-day basis.
The BANK of Greenland has a strong focus on competence
development via trainee programmes, trainee courses, supple-
mentary training, leadership development (HD, MBA and other
leadership programmes) and “on the job training”.
In 2025, the Bank devised a competence measurement scheme
for selected advisers' competences. Competence measurement
is followed up with customised training, to increase employees'
competences in the key areas.
The BANK of Greenland finds it important to ensure the re-
cruitment of qualified banking professionals, and in the autumn
of 2025, the Bank started up a new financial trainee and general
trainee scheme for up to 12 employees.
Besides the traineeships, the Bank has very successfully offered
internships and created trainee positions for young people with
a commercial college background as business economists, or in
administration or finance.
In 2025, the Bank continued to work on employee develop-
ment programmes in collaboration with the Danish Financial
Sector’s Education Centre. For employees in customer service,
staff and adviser functions, in 2025 a programme called "The
Competent Employee" took place.
In 2025, it was possible to fill 98.73% of the positions in the
Bank. This high percentage shows how the Bank is viewed as an
attractive place to work.
The total number of employees was 158 at the end of 2025.
The average age is 44.2 and the average length of service is 8
years and 2 months. 103 women and 55 men are employed.
Partners
The BANK of Greenland is a full-service bank in Greenland. Via
cooperation agreements with the best operators within finan-
cial IT systems, mortgage credit, insurance, payment settlement,
pensions and investment, the Bank wishes to continuously offer
a broad, flexible and competitive range of products.
The BANK of Greenland is part of the Danish and international
payment infrastructure. In accordance with a service contract
with the Greenland Government, the Bank contributes to en-
suring that the service level for payment settlement required by
the Greenland Government is established at the locations in
Greenland where there is no commercial background for the
establishment of bank branches.
Corporate Social Responsibility Policy (CSR) and
ESG
"Via the Bank's commercial activities and CSR initiatives, we will
support sustainable development in Greenland and among other
things contribute to Greenland achieving the Sustainable Develop-
ment Goals, for the benefit of society and of the BANK of Green-
land.
A key aspect is to live up to our fundamental social responsibility as
Greenland’s largest bank and the Bank for All of Greenland, by en-
suring balance between development, growth and stability in Green-
land’s society. In the vision, the Bank has therefore expressed the
wish to be "for the benefit of Greenland".
Focus area: Financial understanding
On the basis of our stakeholders’ requirements and expectations,
and the Bank’s strategic goals, we have chosen an overall focus
area for our CSR initiatives, which is to create financial understand-
ing.
Creating financial understanding for the individual customer, com-
pany or citizen opens up new opportunities and gives insights in or-
der to make the best choices.
0
20
40
60
80
100
120
140
160
180
2023 2024 2025
Annual Report 2025
30
Focus area: Social and voluntary involvement
In all our initiatives, we wish to involve our employees on a broad
basis, and support other CSR-related projects, by making it possible
for employees to work on CSR projects during working hours,
within a defined framework.
Focus area: Environment
The Bank is committed to including environmental considerations in
our activities on a sustainable business and economic basis. A num-
ber of loan options can be used for energy renovation measures, or
electric car purchases, for example. We also work with strategic en-
vironmental management, where our focus is on reducing consump-
tion of resources, as well as carbon emissions.
Our current obligations
As a signatory to the UN Global Compact, the BANK of Greenland
has endorsed ten principles for responsible business conduct with fo-
cus on human rights, labour rights, environment and development,
and anti-corruption. We will actively manage our obligation to re-
spect the ten principles, including our obligation to handle human
rights in accordance with the UN Guiding Principles on Business and
Human Rights, and in particular in relation to our customers, em-
ployees and Greenland's society. The Bank will also work according
to the requirements and expectations as a consequence of the Fo-
rum for Sustainable Finance's recommendations.
The above is an excerpt from the BANK of Greenland's CSR and
ESG Policy.
CSR and sustainability (ESG) on a day-to-day basis
The overall responsibility for the Bank's CSR work lies with the Man-
aging Director, while responsibility for sustainability (ESG), including
preparation for future CSRD reporting, is held by the Bank's Busi-
ness Development Director.
ESG
In view of the most recent changes, with the adoption of the
EU's Omnibus directive on the implementation of requirements
under CSRD (Corporate Sustainable Reporting Directive), a
large number of reporting requirements have been deferred.
The changed reporting requirements may give the impression
that sustainability has lost ground as a strategic priority, which is
not the case. On the contrary, the reduced compliance pres-
sure offers new opportunities to focus less on less relevant
documentation and data collection, in favour of developing
what really matters. The double materiality analysis completed
in 2023, and re-visited in 2024, constitutes a sound strategic
foundation. It shows where the BANK of Greenland has the
greatest impact, and where the Bank itself is most exposed to
sustainability-related risks and opportunities.
The BANK of Greenland wishes to continue the previous stra-
tegic efforts to be “purpose-driven” in its ESG/sustainability initi-
atives, to ensure continued sustainable growth and develop-
ment in Greenland.
The BANK of Greenland's Statutory Corporate Social Respon-
sibility Report, cf. Section 135 of the Order on the financial re-
porting of credit institutions and investment service companies,
etc., is available on the Bank's website:
https://www.banken.gl/en/investor/social-responsibility/
Corporate governance – and statutory corporate
governance statement
The BANK of Greenland’s objective is to adhere to the recom-
mendations at all times and to the greatest possible extent. The
Corporate Governance report is available on the Bank's web-
site: https://www.banken.gl/en/investor/corporate-governance/
The presentation of accounts process
The Board of Directors, the Audit Committee and the Execu-
tive Management have the overall responsibility for ensuring
that the BANK of Greenland's control and risk management
concerning the presentation of the accounts is satisfactory and
in accordance with applicable legislation in Greenland.- The
process for the presentation of the accounts is intended to en-
sure that the annual report and interim reports are presented
correctly and without any material misstatement, whether this
is due to error or fraud.
The Bank's finance department is responsible for the practical
preparation of the annual report, in close cooperation with the
Executive Management and relevant departments. The depart-
ment obtains and quality assures the necessary information,
performs reconciliations and analyses, and ensures significant
accounting items are documented. The process, which is sup-
ported by the Bank's IT-environment, from which key IT sys-
tems are outsourced to BEC Financial Technologies, established
procedures and documented internal controls, including con-
trols regarding data quality, access control and validation of cen-
tral calculation models.
The Executive Management and finance department continu-
ously monitor compliance with legislation and report regularly
to the Board of Directors and Audit Committee on accounting
estimates, risks and significant matters. At least once a year, the
Board of Directors makes an overall assessment of risks related
to the presentation of accounts, including the risk of fraud.
Annual Report 2025
31
The external auditors undertake the statutory audit of the an-
nual accounts, and are assisted by the finance department and
Internal Audit with relevant documentation and information.
Regular meetings of the auditors, Executive Management and
Audit Committee are held, as an element of the planning and
review of the audit work.
The BANK of Greenland gives priority to high quality, transpar-
ency and due diligence in its financial reporting, and regularly as-
sesses whether processes and controls continue to support the
accurate and reliable presentation of accounts.
Data ethics and artificial intelligence
In 2025, the BANK of Greenland adopted an updated policy
for data ethics and use of artificial intelligence. This policy sets
the framework for the BANK of Greenland's data ethical prin-
ciples and data ethical conduct, and conditions for the use of
artificial intelligence.
Employees must have completed training in guidelines for the
use of artificial intelligence, and assignment of an MS Copilot li-
cence is required. The use of artificial intelligence must honour
business value while ensuring correct confidential handling of
business-critical and personal data, so that these are not com-
promised.
A report on the Data Ethics Policy can be found on the Bank’s
website: https://www.banken.gl/en/investor/data-ethics
Policy and target level for the under-represented
gender
The BANK of Greenland's "Policy and target level for the un-
der-represented gender" is adjusted continuously. At the end of
2025, the gender distribution of the members of the Board of
Directors of the BANK of Greenland elected by the Annual
General Meeting comprised 33% women and 67% men. The
Board of Directors’ objective is for the ratio of the under-rep-
resented gender to be at least 33%. The target level for the un-
der-represented gender is thereby fulfilled.
At other management levels, the Bank’s overall objective is to
achieve and maintain an appropriate equal distribution of men
and women in its management. Irrespective of gender, the
BANK of Greenland’s employees must enjoy equal opportuni-
ties for career development and management positions. At the
end of 2025, managers reporting to the managing director
comprised 45% women and 55% men. For the rest of the
management team, the distribution at the end of 2025 was
50% women and 50% men (including deputy managers). The
Bank’s objective is for the distribution of male and female man-
agers to be maintained at between 40% and 60% at all times.
Board of Directors and Executive Management
In accordance with Section 80(8) of the Danish Financial Activi-
ties Act, at least once a year the Bank must publish details of
the offices which the Board of Directors has approved for per-
sons who in accordance with statutory provisions or Articles of
Association are appointed by the Board of Directors, cf. Sec-
tion 80(1) of the Act. More information is available at
www.banken.gl
In accordance with Section 132 a of the Accounting Order, the
Annual Report must include details of the managerial posts held
by listed banks’ Board of Directors and Executive Management
members in business enterprises. Reference is made to pages
81-84.
Evaluation of the Board of Directors
The Board of Directors of the BANK of Greenland undertakes
an annual evaluation of the Board. This takes place every third
year with the external assistance of the Danish Financial Sec-
tor’s Education Centre or other external providers of this ser-
vice. This evaluation is the basis for an assessment of several
matters concerning the Board of Directors: the Board mem-
bers’ competences, working method, cooperation internally and
with the Executive Management, the Chairman’s planning of
meetings, and the quality of the material provided to the Board
of Directors. The most recent evaluation was prepared by the
Bank in October 2025. The evaluation of the Board of Direc-
tors was at a high level, and it was concluded that the Board
has a good overall combination of competences in relation to
the Bank’s business model.
Authorisation of the Board of Directors concerning
trading in own shares
In accordance with an Annual General Meeting decision of 26
March 2025, up to 1 March 2030 the Board of Directors is au-
thorised to allow the Bank to acquire own shares for a nominal
value of up to 10% of the share capital, at the listed price on
the date of acquisition, with upward or downward variation of
10%.
Audit Committee
The Audit Committee consists of the full Board of Directors,
and it has therefore been found most appropriate to maintain
the same structure as in the Board of Directors, so that the
Chair of the Board of Directors is also the Chair of the Audit
Committee.
Annual Report 2025
32
The tasks of the Audit Committee are to:
• Monitor the presentation of accounts process;
• Monitor the effective functioning of the Bank’s internal con-
trol system, internal auditing and risk systems;
• Monitor the statutory audit of the Annual Report; and
• Monitor and control the independence of the auditor, and
in particular the provision of further services to the Bank.
In this respect, the Bank’s control environment for the calcula-
tion of the significant accounting estimates is reviewed and as-
sessed. The committee meets immediately prior to the meet-
ings of the Board of Directors.
The mandate of the Audit Committee is presented here:
https://www.banken.gl/en/about-us/board-of-directors/the-au-
dit-committee-and-risk-committee/
Risk Committee
The Risk Committee consists of the full Board of Directors, and
it has therefore been found most appropriate to maintain the
same structure as in the Board of Directors, so that the Chair
of the Board of Directors is also the Chair of the Risk Commit-
tee.
The tasks of the Risk Committee are to:
• Advise on the Bank’s overall current and future risk profile
and strategy;
• Assist with ensuring that the Board of Directors’ risk strat-
egy is implemented correctly in the organisation;
• Assess whether the Bank’s range of financial products and
services is in accordance with the business model and risk
profile;
• Assess whether the incentives in the Bank’s remuneration
structure take account of the Bank’s risks, capital and liquid-
ity; and
• Assess the Bank’s insurance cover of risks.
The mandate of the Risk Committee is presented here:
https://www.banken.gl/en/about-us/board-of-directors/the-au-
dit-committee-and-risk-committee/
Remuneration Committee
The Remuneration Committee consists of the Chair and Vice
Chair of the Board of Directors and one member of the Board
of Directors elected by the employees.
The Remuneration Committee determines the remuneration
policy, which is approved by the Annual General Meeting.
In 2025, the Remuneration Committee was among other things
engaged in the following:
• Control of bonus paid in accordance with the remuneration
policy.
• Determination of the remuneration policy
• Preparation of a Remuneration Report
• Assessment of the remuneration of the Board of Directors
and Executive Management, and the criteria for this
• General assessment of remuneration and the criteria for
this, including remuneration as a competition parameter.
The Bank of Greenland has prepared a remuneration report.
The report is available on the Bank’s website:
https://www.banken.gl/en/about-us/board-of-directors/remuner-
ation-committee/
The mandate of the Remuneration Committee and the Remu-
neration Policy are presented here:
https://www.banken.gl/en/about-us/board-of-directors/remuner-
ation-committee/
Nomination Committee
The Nomination Committee consists of the Chair and Vice
Chair of the Board of Directors.
In 2025, the Nomination Committee was among other things
engaged in the following:
• Description of competence requirements for the Executive
Management and Board of Directors.
• Nomination of candidates for election to the Board of Di-
rectors.
• Evaluation of the Board of Directors and composition of
the Board of Directors based on the competence require-
ments.
• Determination of a diversity policy.
• Determination of a policy for the under-represented gen-
der and a target level for this.
The Committee assesses that the composition of the Board of
Directors reflects the objective of the diversity policy.
The mandate of the Nomination Committee is presented here:
https://www.banken.gl/en/about-us/board-of-directors/nomina-
tion-committee/
The number of meetings in 2025 and attendance of the meet-
ings of the Board of Directors and all four committees can be
seen here: https://www.banken.gl/en/about-us/board-of-direc-
tors/
Annual Report 2025
33
General meeting
The Board of Directors is authorised to make the changes and
additions to the Articles of Association that are required by
public authorities pursuant to the current legislation in force at
any time. In addition, the BANK of Greenland’s Articles of As-
sociation may be amended by a decision of the general meeting
if the proposal is adopted by at least 2/3 of both the votes cast
and the share capital with voting rights represented at the gen-
eral meeting.
The members of the Board of Directors are elected by the
general meeting, with the exception of the members who are
elected in accordance with the statutory regulations concerning
the representation of employees on the Board of Directors.
The members of the Board of Directors elected by the general
meeting comprise at least five and at most ten members. Each
year, the three members of the Board of Directors elected by
the general meeting who have served longest, calculated from
the last election of the members concerned, will resign. If sev-
eral members have served equally long, their resignation will be
decided by drawing lots. The resigning members may be re-
elected.
Significant agreements that will be amended or will
expire on a change of control of the company
At the end of 2025, the BANK of Greenland had the following
agreements that are assessed to be significant and that would
be amended or would expire on a change of control of the
Bank in conjunction with e.g. a merger.
• Data processing agreement with BEC Financial Technologies
(BEC)
• Cooperation agreement with DLR Kredit A/S
BEC Financial Technologies
It is specified in BEC’s Articles of Association that membership
of BEC can be subject to 2.5 years’ notice of termination, by ei-
ther BEC or the BANK of Greenland, to the end of a financial
year. If membership expires by other means related to the
BANK of Greenland, the Bank will pay a withdrawal fee to
BEC, as specified in the Articles of Association. If a bank is sub-
ject to a merger, and ceases to be a separate bank, membership
of BEC will expire without notice, but with the opportunity for
a transition scheme.
DLR Kredit
As a shareholder of DLR Kredit and in view of the Bank’s
membership of the Association of Local Banks, the BANK of
Greenland has entered into a cooperation agreement with DLR
concerning the intermediation of mortgage-credit loans to the
Bank’s customers.
The cooperation agreement is irrevocable for as long as the
BANK of Greenland is a shareholder of DLR Kredit. If the
BANK of Greenland divests or deposits its shareholding, the
Bank will automatically be deemed to have withdrawn from the
cooperation agreement with effect from the end of the calen-
dar year in which the shareholding was divested/deposited. The
cooperation agreement may be terminated by DLR Kredit, if
this is adopted by DLR’s Board of Directors, subject to three
months’ notice to the end of a calendar year.
Annual Report 2025
34
The Board of Directors and Executive Management have today
considered and approved the Annual Report for the financial
year from 1 January to 31 December 2025 for Grønlands-
BANKEN, aktieselskab.
The Annual Report has been prepared in accordance with the
statutory requirements, including the Danish Financial Business
Act, the statutory order on financial reports for credit institu-
tions and investment service companies, etc. and the disclosure
requirements for listed financial companies in Denmark.
It is our opinion that the annual financial statements give a true
and fair view of the Bank’s assets, liabilities and financial position
as at 31 December 2025, and of the result of the Bank’s activi-
ties and cash flows for the financial year from 1 January to 31
December 2025.
It is our opinion that the Management’s Review gives a true and
fair review of the development in the Bank’s activities and finan-
cial affairs, as well as a description of the significant risks and un-
certainties to which the Bank is subject.
It is our opinion that, in all material respects, the Annual Report
for GrønlandsBANKEN A/S for the financial year from 1 Janu-
ary 2025 to 31 December 2025, with the file name
“80050410-2025-12-31-da”, has been prepared in accordance
with the ESEF Regulation.
The Annual Report is submitted for approval by the Annual
General Meeting.
Management Statement
Nuuk, 26 February 2026
Executive Management
Martin Birkmose Kviesgaard
Board of Directors
Gunnar í Liða
Kristian Frederik Lennert
Maliina Bitsch Abelsen
Chair
Vice Chairman
Pia Werner Alexandersen
Gert Jonassen
Pilunnguaq F.
Johansen Kristiansen
Tulliaq Angutimmarik Olsen
Niels Peter Fleischer Rex
Peter Angutinguaq Wistoft
Annual Report 2025
35
The independent auditor’s report
To the shareholders of GrønlandsBANKEN A/S
Opinion
We have audited financial statements of GrønlandsBANKEN
A/S for the financial year from 1 January to 31 December
2025, which comprise the income statement, statement of
comprehensive income, balance sheet, statement of changes in
equity and notes, including material accounting policy infor-
mation and cash flow statement. The financial statements are
prepared in accordance with Danish Financial Business Act and
additional disclosure requirements for listed financial companies
in Denmark.
In our opinion, the financial statements give a true and fair view
of the Company’s financial position at 31 December 2025 and
of its financial performance and cash flows for the financial year
from 1 January to 31 December 2025 in accordance with Dan-
ish Financial Business Act and additional disclosure require-
ments for listed financial companies in Denmark.
Our opinion is consistent with our audit book comments is-
sued to the Audit Committee and the Board of Directors.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (ISAs) and the additional requirements
applicable in Denmark. Our responsibilities under those stand-
ards and requirements are further described in the "Auditor’s
responsibilities for the audit of financial statements" section of
this auditor’s report. We are independent of the Company in
accordance with the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Ac-
countants (IESBA Code), as applicable to audits of financial
statements of public interest entities, and the additional ethical
requirements applicable in Denmark to audits of financial state-
ments of public interest entities. We have also fulfilled our
other ethical responsibilities in accordance with these require-
ments and the IESBA Code. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a ba-
sis for our opinion.
To the best of our knowledge and belief, we have not provided
any prohibited non-audit services as referred to in Article 5(1)
of Regulation (EU) No 537/2014.
We were appointed auditors of GrønlandsBANKEN A/S for
the first time on 1 July 1967 for the financial year 1967. We
have been reappointed annually by decision of the general
meeting for a total contiguous engagement period of 59 years
up to and including the financial year 2025.
Key audit matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the finan-
cial statements for the financial year from 1 January to 31 De-
cember 2025. These matters were addressed in the context of
our audit of the financial statements as a whole, and in forming
our opinion thereon, and we do not provide a separate opin-
ion on these matters.
Audit Statement
Annual Report 2025
36
Statement concerning the Management's Review
Management is responsible for the management commentary.
Our opinion on the financial statements does not cover the
management commentary, and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our re-
sponsibility is to read the management commentary and, in do-
ing so, consider whether the management commentary is ma-
terially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be
materially misstated.
Moreover, it is our responsibility to consider whether the man-
agement commentary provides the information required under
the Danish Financial Business Act.
Based on the work we have performed, we conclude that the
management commentary is in accordance with the financial
statements and has been prepared in accordance with the re-
quirements of the Danish Financial Business Act. We did not
Write-downs on loans and provisions for losses on
guarantees, etc.
The matter was considered as follows during the audit
Lending amounted to DKK 4,992 million and guarantees to
DKK 1,276 million at 31 December 2025 (lending
amounted to DKK 5,031 million and guarantees to DKK
1,423 million at 31 December 2024).
The determination of expected write-downs on loans and
provisions for losses on guarantees, etc. is subject to consid-
erable uncertainty and to a certain extent is based on mana-
gerial estimates. As a consequence of the significance of
these estimates and the size of the loans and guarantees,
etc. of the Bank, the auditing of write-downs on loans and
provisions for losses on guarantees, etc. is a key audit mat-
ter.
The principles for the compilation of write-downs on loans
and provisions for losses on guarantees, etc. are described
further in the accounting policies applied, and the manage-
ment has described the handling of credit risks and the as-
sessment of the impairment requirement for loans and the
need for provisions for losses on guarantees, etc. in Notes 2
and 11 to the annual financial statements.
The aspects of loans and guarantees, etc. which entail the
greatest degree of estimation, and which therefore require
greater auditing attention, are:
• Identification of exposures that are credit-impaired.
• Parameters and managerial estimates in the calculation
model applied to determining the expected losses in
stages 1 and 2, including the classification thereof.
• Assessment of the consequences of events that are not
already taken into account, as managerial estimates in-
corporated in the models, and as managerial additions to
the models.
On the basis of our risk assessment, the audit has included a
review of the Bank’s relevant procedures for write-downs
on loans and provisions for losses on guarantees, etc., the
testing of relevant controls, and the examination of expo-
sures on the basis of random sampling.
Our audit procedures included testing of relevant controls
concerning:
• Ongoing assessment of the credit risk
• Assessment and validation of input and assumptions ap-
plied to the calculation of write-downs on loans and the
provisions for losses on guarantees in stages 1 and 2.
• Determination of managerial estimates in addition to the
model-based write-downs.
Our audit procedures also included:
• Review by random sampling of exposures to ensure
correct identification of the credit impairment of loans
and guarantees, etc.
• Obtaining and evaluating an audit declaration from the
Bank’s data centre that comprises an assessment of the
calculation model applied by the Bank to write-downs
on loans and provisions for losses on guarantees, etc.
• Challenging of the significant parameters in the calcula-
tion model applied, with special focus on objectivity and
the data basis used.
• Challenging of managerial estimates, with special focus
on the management's consistency and objectivity.
• Challenging of managerial estimates incorporated in the
models, as well as managerial additions relating to the
consequences of events that are not already taken into
account.
Annual Report 2025
37
identify any material misstatement of the management com-
mentary.
The management's responsibility for the annual
financial statements
Management is responsible for the preparation of financial
statements that give a true and fair view in accordance with
Danish Financial Business Act and additional disclosure require-
ments for listed financial companies in Denmark, and for such
internal control as Management determines is necessary to ena-
ble the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, Management is responsi-
ble for assessing the Company's ability to continue as a going
concern, for disclosing, as applicable, matters related to going
concern, and for using the going concern basis of accounting in
the preparation of the financial statements unless Management
either intends to liquidate the Company or to cease operations,
or has no realistic alternative but to do so.
Auditor’s responsibility for the audit of the annual
financial statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from ma-
terial misstatement, whether due to fraud or error, and to issue
an auditor’s report that includes our opinion. Reasonable assur-
ance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with ISAs and additional re-
quirements applicable in Denmark will always detect a material
misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in
the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these fi-
nancial statements.
As part of an audit in accordance with ISAs and additional re-
quirements applicable in Denmark, we exercise professional
judgement and maintain professional scepticism throughout the
audit. We also:
• Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not detect-
ing a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve col-
lusion, forgery, intentional omissions, misrepresentations,
or the override of internal control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appro-
priate in the circumstances, but not for the purpose of ex-
pressing an opinion on the effectiveness of the Company's
internal control.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and re-
lated disclosures made by Management.
• Conclude on the appropriateness of Management’s use of
the going concern basis of accounting in the preparation of
the financial statements, and, based on the audit evidence
obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the
Company's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are re-
quired to draw attention in our auditor’s report to the re-
lated disclosures in the financial statements or, if such dis-
closures are inadequate, to modify our opinion. Our con-
clusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events
or conditions may cause the Company to cease to con-
tinue as a going concern.
• Evaluate the overall presentation, structure and content of
the financial statements, including the disclosures in the
notes, and whether the financial statements represent the
underlying transactions and events in a manner that gives a
true and fair view.
We communicate with those charged with governance regard-
ing, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant defi-
ciencies in internal control that we identify during our audit.
We also provide those charged with governance with a state-
ment that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all re-
lationships and other matters that may reasonably be thought
to bear on our independence, and, where applicable, safeguards
put in place and measures taken to eliminate threats.
From the matters communicated with those charged with gov-
ernance, we determine those matters that were of most signifi-
cance in the audit of the financial statements of the current pe-
riod and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter.
Annual Report 2025
38
Declaration concerning compliance with the ESEF
Regulation
As part of our audit of the Financial Statements of Grønlands-
BANKEN A/S we performed procedures to express an opinion
on whether the annual report for the financial year from 1 Jan-
uary to 31 December 2025 with the file name “80050410-
2025-12-31-da” is prepared, in all material respects, in compli-
ance with the Commission Delegated Regulation (EU)
2019/815 on the European Single Electronic Format (ESEF Reg-
ulation) which includes requirements related to the preparation
of the annual report in XHTML format.
Management is responsible for preparing an annual report that
complies with the ESEF Regulation. This responsibility includes
the preparing of the annual report in XHTML format.
Our responsibility is to obtain reasonable assurance on
whether the annual report is prepared, in all material respects,
in compliance with the ESEF Regulation based on the evidence
we have obtained, and to issue a report that includes our opin-
ion. The procedures consist of testing whether the annual re-
port is prepared in XHTML format.
In our opinion, the annual report for the financial year from 1
January to 31 December 2025 with the file name “80050410-
2025-12-31-da” is prepared, in all material respects, in compli-
ance with the ESEF Regulation.
Copenhagen, 26 February 2026
Deloitte
Statsautoriseret Revisionspartnerselskab
CVR no. 33 96 35 56
Anders O. Gjelstrup
State
-Authorised Public Accountant
MNE
-no. mne10777
Annual Report 2025
39
Annual Report 2025
40
Statement of Income
DKK 1,000
Notes
2025
2024
3
Interest income
369,559
476,909
4
Interest expenses
54,250
116,956
Net interest income
315,309
359,953
Share dividend, etc.
11,971
8,859
5
Fees and commission income
102,399
102,129
Fees paid and commission expenses
839
677
Net interest and fee income
428,840
470,264
6
Value adjustments
19,024
28,578
Other operating income
6,340
5,400
7, 8
Staff and administration expenses
244,385
226,362
Depreciation and impairment of tangible assets
9,621
9,017
Other operating expenses
3,270
4,255
11
Write
-downs on loans and receivables, etc. 15,539
18,909
Profit before tax
181,389
245,699
9
Tax
536
36,689
Profit for the year
180,853
209,010
PROPOSED ALLOCATION OF PROFIT
Profit for the year
180,853
209,010
In total available for allocation
180,853
209,010
Proposed dividend
144,000
180,000
Retained profit
36,853
29,010
Total allocation
180,853
209,010
Annual Report 2025
41
Statement of Comprehensive Income
DKK 1,000
2025
2024
Profit for the year
180,853
209,010
Other comprehensive income:
Value adjustment of properties
6,164
6,084
Value adjustment of defined-benefit severance/pension scheme
-74
-74
Tax on value adjustment of properties
-1,541
-1,521
Other comprehensive income after tax
4,549
4,489
Comprehensive income for the year
185,402
213,499
Annual Report 2025
42
Balance Sheet
(year-end)
DKK 1,000
Notes
2025
2024
Cash balance and demand deposits with central banks
3,017,699
2,080,989
10
Receivables from credit institutions and central banks
106,698
155,989
11
Loans and other receivables at amortised cost
4,921,760
5,030,995
12
Bonds at fair value
1,522,468
1,498,540
13
Shares, etc.
170,179
150,963
14
Assets connected to pool schemes
780,071
675,765
Land and buildings in total
327,716
310,860
15
- Domicile properties
327,716
310,860
16
Other tangible assets
7,407
7,627
Current tax assets
0
658
Other assets
115,390
104,342
Accruals and deferred income
5,072
4,815
Total assets
10,974,460
10,021,543
17
Liabilities to credit
institutions and central banks 21,147
15,698
18
Deposits and other liabilities
7,873,973
7,152,807
Deposits in pool schemes
780,071
675,765
19
Issued bonds at amortised cost
348,197
273,569
Current tax liabilities
1,535
0
Other liabilities
76,710
73,807
Prepayments and deferred expenses
4,188
4,395
Total debt
9,105,821
8,196,041
Provisions for pensions and similar obligations
3,307
2,902
20
Provisions for deferred tax
98,831
106,393
11
Provisions for losses on guarantees
12,866
11,241
Other provisions
10,768
7,322
Total provisions
125,772
127,858
21
Subordinated debt
143,843
104,022
Total subordinated debt
143,843
104,022
Equity
22
Share capital
180,000
180,000
Revaluation reserves 75,069
70,446
Retained earnings
1,199,955
1,163,176
Proposed dividend
144,000
180,000
Total equity
1,599,024
1,593,622
Total liabilities
10,974,460
10,021,543
1
Accounting policies applied
2
Financial risks and policies
23
-33
Other Notes
Annual Report 2025
43
Statement of Changes in Equity
DKK 1,000
Share capital
Revaluation
reserves
Retained
earnings
Proposed divi-
dend, net
Total equity
Equity, 1 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
4,563
-74
0
4,489
Profit for the period
0
0 29,010
180,000
209,010
Equity, 31 December 2024
180,000
70,446
1,163,176
180,000
1,593,622
Equity, 1 January 2025
180,000
70,446 1,163,176
180,000
1,593,622
Dividend paid
0
0 0
-180,000
-180,000
Other comprehensive income
0
4,623 -74
0
4,549
Profit for the year
0
0 36,853
144,000
180,853
Equity, 31 December 2025
180,000
75,069 1,199,955
144,000
1,599,024
Annual Report 2025
44
Cash Flow Statement
DKK 1,000
2025
2024
Profit for the year
180,853
209,010
Write-downs on loans
15,539
18,909
Depreciation and impairment of tangible assets
9,621
9,017
Recognised profit on sale of tangible assets
-139
0
Accruals and deferred expenses, net
-463
-1,444
Profit for the year after adjustment for non
-cash operating items 205,411
235,492
Liabilities to credit institutions and central banks
5,449
-6,407
Deposits
825,472
901,281
Issued
bonds 499
329
Subordinated debt
262
163
Lending
93,696
-236,929
Other working capital
-133,912
-189,090
Other liabilities
736
31,357
Change in working capital
792,202
500,704
CASH FLOWS FROM OPERATING ACTIVITIES
997,613
736,196
Sale of tangible assets
559
0
Purchase, etc. of tangible assets
-20,514
-16,496
CASH FLOWS FROM INVESTMENT ACTIVITIES
-19,955
-16,496
Dividend paid
-180,000
-99,000
Bond issue, including amortisation effect
124,130
99,271
Bond redemption
-50,000
0
Subordinated debt issue, including amortisation effect
39,559
39,530
CASH FLOWS FROM FINANCING ACTIVITIES
-66,311
39,801
CHANGE IN CASH AND CASH EQUIVALENTS
911,347
759,501
Cash and cash equivalents, beginning of year
3,685,518
2,926,017
Cash and cash equivalents, end of year
4,596,865
3,685,518
Cash balance and demand deposits with central banks
3,017,699
2,080,989
Fully secured and liquid cash and cash equivalents in credit institutions, cf. Note 12
106,698
155,989
Non
-mortgaged securities 1,472,468
1,448,540
Cash and cash equivalents, end of year
4,596,865
3,685,518
Annual Report 2025
45
Annual Report 2025
46
1. Accounting policies applied 47
2. Financial risks and policies and targets for management of financial risks 53
3. Interest income 64
4. Interest expenses 64
5. Fees and commission income 64
6. Value adjustments 64
7. Staff and administrative expenses 65
8. Audit fees 65
9. Tax on the profit for the year 65
10. Receivables from credit institutions and central banks 66
11. Lending 66
12. Bonds at fair value 68
13. Shares, etc. 68
14. Assets connected to pool schemes 69
15. Head office properties 69
16. Other tangible assets 69
17. Debt to credit institutions and central banks 69
18. Deposits and other liabilities 70
19. Issued bonds at amortised cost 70
20. Provisions for deferred tax 71
21. Subordinated debt 71
22. Share capital 72
23. Capital statement 72
24. Contingent liabilities 73
25. Legal cases 73
26. Currency exposure 73
27. Interest risk rate 73
28. Related parties 74
29. Derivative financial instruments 75
30. Fair value of financial instruments 77
31. Sensitivity calculations 79
32. Five-year Financial Highlights and Key Figures 80
33. Definition of key figures 81
Overview of Notes
Annual Report 2025
47
The Annual Financial Statements are presented in accordance
with the Danish Financial Activities Act, including the Order on
financial reports for credit institutions and investment service
companies, etc. The Annual Report is furthermore presented in
accordance with additional Danish disclosure requirements for
the annual reports of listed financial companies.
The Annual Report is presented in Danish kroner, rounded to
the nearest DKK 1,000.
The accounting policies applied are unchanged from the Annual
Report for 2024.
About recognition and measurement in general
Assets are recognised in the balance sheet when it is probable,
due to a previous event, that future economic benefits will ac-
crue to the Bank, and the value of the asset can be measured
reliably.
Liabilities are recognised in the balance sheet when the Bank,
due to a previous event, has a legal or actual obligation, and it is
probable that future economic benefits will divest from the
Bank, and the value of the liability can be measured reliably.
On first recognition, assets and liabilities are measured at fair
value. However, tangible assets are measured at cost price at
the time of first recognition. Measurement after first recogni-
tion takes place as described for each accounting item below.
On recognition and measurement, account is taken of predicta-
ble risks and losses arising before the presentation of the An-
nual Report, and which confirm or refute conditions existing as
of the balance sheet date.
Income is recognised in the statement of income as it is earned,
while costs are recognised at the amounts concerning the fi-
nancial year. However, increases in the value of head office
properties that do not match previous impairment are recog-
nised directly to the statement of comprehensive income.
Purchase and sale of financial instruments is recognised on the
trading date, and recognition ceases when the right to re-
ceive/cede cash flows concerning the financial asset or liability
has expired, or has been assigned, and the Bank has in principle
transferred all risks and yields related to the property owner-
ship. The BANK of Greenland does not apply the rule on re-
classification of certain financial assets from fair value to amor-
tised cost.
Significant accounting estimates, assumptions and
uncertainties
The Annual Financial Statements are prepared on the basis of
certain special assumptions which entail the use of accounting
estimates. These estimates are made by the Bank’s manage-
ment in accordance with accounting policies, and on the basis
of historical experience, as well as assumptions which the man-
agement considers to be responsible and realistic.
The assumptions may be incomplete, and unexpected future
events or circumstances may arise, just as other parties might
be able to make other estimates. The areas which entail a
higher degree of assessment or complexity, or areas where as-
sumptions and estimates are significant to the accounts, are
stated below.
On the preparation of the annual financial statements, the man-
agement undertakes a number of accounting assessments as
the basis for the presentation, recognition and measurement of
the institution’s assets and liabilities. The Annual Financial State-
ments are presented in accordance with the going concern
principle, based on current practice and interpretation of the
rules for Danish banking institutions. The key estimates made
by the management in conjunction with recognition and meas-
urement of these assets and liabilities, and the significant estima-
tion uncertainty related to the preparation of the Annual Re-
port for 2025, are:
• Write-downs for impairment of lending and provisions for
guarantees and credit undertakings are made in accordance
with the accounting policies, and are based on a number of
Notes to the Annual Report
1.
Accounting policies applied
Annual Report 2025
48
assumptions. If these assumptions are changed, the presen-
tation of the accounts may be affected, and this may be sig-
nificant.
• Listed financial instruments may be priced in markets with
low turnover, whereby the use of stock exchange prices to
measure fair value may be subject to some uncertainty.
• Unlisted financial instruments may involve significant esti-
mates in connection with the measurement of fair value.
See Notes 13 and 29.
• For provisions, there are significant estimates related to the
determination of the future employee turnover rate, as well
as determining the interest obligation for tax-free savings
accounts.
• The measurement of the fair value of head office properties
is likewise subject to significant estimates and assessments,
including expectations of the properties’ future returns and
the rates of return fixed. The Bank’s principal property is
the head office property in Nuuk. A change in the percent-
age yield of e.g. 0.5% would change the valuation by DKK 9
million for this property. On the valuation of the Bank’s
head office property in Nuuk, different prices per square
metre are used in relation to market rent and potential use.
In 2025, the Bank obtained external broker assessments of a
wide selection of the Bank’s staff properties, to support the val-
uation.
Determination of fair value
The fair value is the amount at which an asset can be traded or
a liability can be redeemed, in a trade under normal conditions
between qualified, willing and mutually independent parties.
The fair value of financial instruments for which there is an ac-
tive market is determined at the closing price on the balance
sheet date or, if not available, another published price that must
be assumed to be best equivalent.
For financial instruments for which there is no active market,
the fair value is determined with the help of generally recog-
nised valuation techniques, which are based on observable cur-
rent market data.
Hedge accounting
The Bank applies the special hedge accounting rules to avoid
the inconsistency which arises when certain financial assets or
financial liabilities (the hedged items) are measured at amortised
cost, while derivative financial instruments (the hedging instru-
ments) are measured at fair value.
When the criteria for the application of the hedge accounting
rules are fulfilled, the accounting value of the hedged assets and
liabilities is subject to adjustment via the statement of income
for changes in fair value concerning the hedged risks (fair value
hedging). Hedging is established by the Bank for lending at fixed
interest rates.
Derivative financial instruments
Derivative financial instruments are measured at fair value,
which in principle is based on listed market prices. With regard
to unlisted instruments, the fair value is compiled according to
generally recognised principles. Derivative financial instruments
are recognised under other assets, or other liabilities.
Changes in the fair value of derivative financial instruments
which are classified as and fulfil the conditions for hedging the
fair value of a recognised asset or liability, are recognised in the
statement of income together with changes in the value of the
hedged asset or liability. Other changes are recognised in the
statement of income as financial items.
Translation of foreign currencies
On first recognition, transactions in foreign currencies are
translated at the exchange rate on the transaction date. Receiv-
ables, debt and other monetary items in foreign currency which
are not settled as of the balance sheet date, are converted at
the closing rate for the currency on the balance sheet date. Ex-
change-rate differences arising between the rate on the trans-
action date and the rate on the payment date, or the rate on
the balance sheet date, are recognised as value adjustments in
the statement of income.
Set-offs
The Bank sets off receivables and liabilities when the Bank has a
legal right to set off the recognised amounts and also has the
intention of net set-off or realisation of the asset and redemp-
tion of the liability at the same time.
Agreement with the Ministry of Industry, Business
and Financial Affairs in Denmark
The BANK of Greenland has entered into an agreement with
the Ministry of Industry, Business and Financial Affairs in Den-
mark on contributions to support financial stability in Green-
land. The contribution is divided into directly attributable com-
pensation contributions for the Bank’s MREL issuance costs,
and a basic amount.
Compensation has been received for the Bank’s MREL issuance
costs for the element of the Bank’s issues that exceeds the
agreed average level to which a small bank in the Association of
Annual Report 2025
49
Local Banks, Savings Banks and Cooperative Banks in Denmark
will be subject.
The compensation is presented as a set-off against subsidy-enti-
tled interest items, or negative interest income and interest ex-
penses, respectively.
Basic amounts received are not directly attributable to a single
cost element and are therefore recognised under other operat-
ing income. Compensation is recognised in the statement of in-
come in the relevant period.
The Bank has no unfulfilled commitments at the balance sheet
date, or other contingent items related to the public compensa-
tion.
Statement of income
Interest, fees and commission
Interest income and interest expenses are recognised in the
statement of income for the period which they concern. Com-
mission and fees which are an integrated element of the effec-
tive interest rate on a loan are recognised as part of the amor-
tised cost and thereby as an integrated element of the financial
instrument (lending) under interest income.
Commission and fees which are part of the ongoing servicing of
the loan are accrued over the term to maturity. Other fees are
recognised in the statement of income as of the transaction
date.
Interest on lending classified as stage 3 is calculated on the basis
of the net amount after write-downs. For other lending, the in-
terest rate is calculated on the basis of the contractual out-
standing amount. This entails that interest income from loans
that have been written down either in full or in part is included
under “Write-downs on loans and receivables, etc.” with regard
to the interest on the impaired element of the loans.
Share dividend
Share dividend is recognised in the income statement when the
Bank is entitled to receive dividend. This will normally be when
the dividend has been adopted at the company’s general meet-
ing.
Value adjustments
Value adjustments comprise realised and unrealised value ad-
justments of assets and liabilities measured at fair value. Ex-
change rate adjustments and the effect of value adjustments of
hedge accounting are also included in the value adjustment.
Staff and administration expenses
Staff costs comprise salaries and social security expenses, pen-
sions, staff accommodation, etc. Costs of services and benefits
to employees, including anniversary bonuses, are recognised in
step with the employees’ performance of the work which enti-
tles them to the services and benefits in question. Costs of in-
centive programmes are recognised in the statement of income
in the financial year to which the cost can be attributed.
Administration expenses include IT expenses, marketing, insur-
ance, etc.
Pension schemes
The Bank has established a defined-benefit severance/pension
scheme for the Bank’s managing director.
The Bank has established contribution-based pension schemes
with all employees. Under the contribution-based pension
schemes, fixed contributions are paid to an independent pen-
sion institution, or to the Bank’s own pension product,
“Qimatut”. The Bank’s own pension product is not managed by
the Bank itself, but by the employee or in pool schemes man-
aged by an independent investment company.
Other operating income and operating expenses
Other operating income includes income of a secondary nature
in relation to the Bank’s activities, including external rent in-
come, and profit and loss on sale of the Bank’s properties.
Other operating expenses include expenses of a secondary na-
ture in relation to the Bank’s activities, including operation and
maintenance of the Bank’s head office properties, and contribu-
tions to sector solutions.
Tax
Tax for the year, which consists of current tax and changes in
deferred tax, is recognised in the statement of income when it
relates to the result for the period, and in other comprehensive
income or directly to equity when it relates to items recognised
directly in other comprehensive income or directly to equity,
respectively.
Current tax liabilities are recognised in the balance sheet, com-
piled as the tax calculated on the taxable income for the year.
On calculating the taxable income, Greenland allows tax deduc-
tion of dividend.
Deferred tax is recognised on all temporary difference be-
tween accounting values and taxable values of assets and liabili-
ties.
Annual Report 2025
50
Balance sheet total
Cash balances and demand deposits at central
banks
Comprise cash balances and demand deposits at central banks
and are measured at fair value on first recognition, and subse-
quently measured at amortised cost.
Receivables from and debt to credit institutions and
central banks
Comprises receivables from credit institutions and time depos-
its with central banks. Debt to credit institutions and central
banks comprises debt to other credit institutions and central
banks. Receivables are measured at fair value. Debt is measured
at amortised cost.
Loans and other receivables at amortised cost
Financial instruments that, after first recognition, are recognised
on an ongoing basis at amortised cost must, however, on initial
recognition be measured at fair value with addition of the
transaction costs directly related to the acquisition or issue of
the financial instrument, and deduction of the fees and commis-
sion received, which are an integral element of the effective in-
terest rate.
Loans are measured at amortised cost, which is usually equiva-
lent to nominal value less establishment fees, etc., and write-
downs to meet losses that have arisen, but have not yet been
realised.
Reference is also made to the descriptions in Note 2.
Bonds at fair value
Bonds which are traded in active markets are measured at fair
value. Fair value is calculated at the closing price for the market
in question on the balance sheet date. Redeemed bonds are
measured at present value.
If the market for one or several bonds is not liquid, or if there
is no publicly recognised price, the Bank determines the fair
value by using recognised valuation techniques. These tech-
niques include the use of equivalent recent transactions be-
tween independent parties, and analyses of discounted cash
flows and other models based on observable market data.
All ongoing value adjustments on listed and unlisted securities
are recorded in the income statement under the item "value
adjustments".
Shares, etc.
Shares are measured at fair value. The fair value of shares
traded in active markets is compiled at the closing price on the
balance sheet date.
The fair value of unlisted and non-liquid shares is based on the
available information concerning trades and similar, or alterna-
tive capital value calculations. Non-liquid and unlisted capital in-
vestments for which it is not assessed to be possible to calcu-
late a reliable fair value are measured at cost.
All ongoing value adjustments on listed and unlisted securities
are recorded in the income statement under the item "value
adjustments".
Assets and deposits in pool schemes
All pool assets and deposits are recognised at fair value in sepa-
rate balance sheet items. Pool schemes are managed by an ex-
ternal partner. The Bank’s own return on pool activities is car-
ried under fee and commission income.
Head office properties
All of the Bank’s properties are defined as head office proper-
ties, including staff accommodation. Staff accommodation is as-
sessed to be necessary, to ensure the recruitment of new staff.
Properties are measured according to first recognition at re-as-
sessed value. Initial recognition is at cost price. Re-assessment is
made sufficiently frequently to avoid significant differences from
fair value.
Every second year (most recently in 2024), an independent as-
sessment is obtained of the market value of the Bank’s head of-
fice property in Nuuk. Every three years (most recently in
2025), an independent assessment is obtained of the market
value of a large proportion of the Bank’s staff accommodation.
The fair value of other head office properties is reassessed an-
nually on the basis of calculated capital values for the expected
future cash flows.
Increases in head office properties’ reassessed value are recog-
nised in revaluation reserves under equity. Any decrease in
value is recognised in the statement of income, except in the
case of reversal of revaluations in previous years.
Straight-line depreciation over 25 years is applied to bank build-
ings, and over 50 years to staff accommodation.
The head office property and newer bank buildings and staff
accommodation are written down to scrap value.
Annual Report 2025
51
Other tangible assets
Machinery and fixtures and fittings are measured at cost less ac-
cumulated depreciation. Depreciation is made on a straight-line
basis over the assets’ expected lifetime, but maximum five
years.
Other assets
Other assets are other assets not included under other asset
items. The item includes the Bank’s capital contribution to BEC
Financial Technologies, and the positive market value of deriva-
tive financial instruments and income that do not fall due for
payment until after the end of the financial year, including inter-
est receivable. With the exception of derivative financial instru-
ments that have a positive value as of the balance sheet date,
and which are measured at fair value, the accounting item is
measured at cost on first recognition, and thereafter at amor-
tised cost.
Prepayments and deferred expenses
Accruals and deferred income recognised under assets com-
prise defrayed costs concerning subsequent financial years. Pre-
payments and deferred income are measured at cost.
Deposits and other liabilities
Financial instruments that, after first recognition, are recognised
on an ongoing basis at amortised cost must, however, on initial
recognition be measured at fair value with addition of the
transaction costs directly related to the acquisition or issue of
the financial instrument, and deduction of the fees and commis-
sion received, which are an integral element of the effective in-
terest rate.
Deposits and other liabilities comprise deposits with counter-
parties that are not credit institutions or central banks. Deposits
and other liabilities are measured at fair value on first recogni-
tion, and are subsequently measured at amortised cost.
Issued bonds at amortised cost
Issued bonds are measured at amortised cost.
Other liabilities
Other liabilities are other liabilities not included under other lia-
bility items. The item includes the negative market value of de-
rivative financial instruments and expenses that do not fall due
for payment until after the end of the financial year, including
interest payable. With the exception of derivative financial in-
struments that have a negative value as of the balance sheet
date, and which are measured at fair value, the accounting item
is measured at cost on first recognition, and thereafter at amor-
tised cost.
Prepayments and deferred expenses
Prepayments and deferred expenses recognised under liabilities
comprise income received prior to the balance sheet date, but
which concerns a subsequent accounting period, including ac-
crued interest and commission. Prepayments and deferred in-
come are measured at cost.
Subordinated debt
Subordinated debt is measured at amortised cost.
Provisions
Obligations and guarantees which are uncertain in terms of size
or time of settlement are recognised as provisions when it is
probable that the obligation will lead to a claim on the Bank’s fi-
nancial resources, and the obligation can be measured reliably.
The obligation is calculated at the present value of the costs
that are necessary in order to redeem the obligation. Obliga-
tions concerning staff which fall due more than 36 months after
the period in which they are earned are discounted.
Contingent liabilities
The item concerns ceded guarantees and undertakings, irrevo-
cable credit undertakings and similar obligations that are not
carried to the balance sheet. Guarantees are measured at nom-
inal value, with deduction of loss provisions. Provisions for
losses are recognised under “Write-downs on loans and receiv-
ables, etc.” in the statement of income and under “Provisions
for losses on guarantees” in the balance sheet.
Dividend
Dividend is recognised as a liability at the time of its adoption
by the Annual General Meeting. The proposed dividend for the
financial year is shown as a separate item in relation to equity.
Cash flow statement
The cash flow statement is presented according to the indirect
method and shows cash flows concerning operations, invest-
ments and financing, and the Bank’s liquid assets at the begin-
ning and end of the year.
Cash flows concerning operating activities are compiled as the
operating result adjusted for non-cash operating items, change
in working capital and corporate tax paid. Cash flows concern-
ing investment activities comprise payments concerning pur-
chase and sale of companies, activities and the purchase, devel-
opment, improvement and sale, etc. of intangible and tangible
fixed assets. Cash flows concerning financing activities comprise
changes in the size or structure of the company’s share capital,
subordinate capital contributions and related costs, purchase of
own shares, and payment of dividend.
Annual Report 2025
52
Liquid assets comprise cash balances and demand deposits with
central banks and receivables from credit institutions with an
original duration of up to three months, as well as uncollateral-
ised securities which can be immediately converted to cash
funds.
Financial highlights and key figures
Financial highlights and key figures are presented in accordance
with the definitions and guidelines of the Danish Financial Su-
pervisory Authority.
Annual Report 2025
53
General
In accordance with Section 16 of the Order on the manage-
ment and control of banks, etc. the BANK of Greenland must
designate a risk officer who is responsible for risk management
at the Bank.
On the basis of the Bank’s development, a risk director was ap-
pointed, who was appointed as responsible for risk manage-
ment in September 2025.
The BANK of Greenland is exposed to various types of risk.
The objective of the Bank’s risk management policies is to mini-
mise the losses which may arise as a consequence of e.g. un-
foreseen development in the financial markets. The Bank works
with a balanced risk profile, both in credit terms and on the fi-
nancial markets. The Bank solely uses derivative financial instru-
ments (derivatives) to cover risks on customer transactions, or
to reduce the Bank’s interest rate risk.
The BANK of Greenland continuously develops its tools for the
identification and management of the risks which affect the
Bank on a day-to-day basis. The Board of Directors determines
the overall framework and principles for risk and capital man-
agement, and receives ongoing reports on the development in
risks and use of the allocated risk framework. The day-to-day
risk management is undertaken by the Credit Department, with
independent control by the Accounting Department.
Credit risks
The most significant risks at the BANK of Greenland concern
credit risks. The Bank’s risk management policies are therefore
arranged in order to ensure that transactions with customers
and credit institutions always lie within the framework adopted
by the Board of Directors, and the expected level of security.
Policies have furthermore been adopted to limit the exposure
in relation to any credit institution with which the Bank has ac-
tivities.
Credit granting
The Bank’s Board of Directors has set a framework to ensure
that the Bank’s lending takes place to customers that, in view of
their solvency, earnings and liquidity, are able to fulfil their obli-
gations to the Bank. It is sought to maintain credit quality at a
high level, to ensure a stable basis for the future development,
and it is sought to achieve a balance between assumed risks and
the return achieved by the Bank.
Credit granting is based on responsible risk taking and risk di-
versification, whereby risk exposure is matched to the bor-
rower’s circumstances.
Among other things:
• As a general rule, loans, etc. are only granted to customers
that are full customers of the Bank;
• As a general rule, loans, etc. to business customers are only
granted to customers with business activities in Greenland;
2.
Financial risks and policies and targets for management of financial risks
DKK 1,000
2025
2024
Maximum credit exposure
Cash balances and demand deposits at central banks
3,017,699
2,080,989
Receivables
from credit institutions and central banks 106,698
155,989
Loans and other receivables at amortised cost
4,921,760
5,030,995
Bonds at fair value
1,522,468
1,498,540
Shares, etc.
170,179
150,963
Other assets, including derivative financial instruments
115,390
104,342
Off
-balance-sheet items
Guarantees
1,275,574
1,422,643
Unutilised facilities
1,825,442
1,743,587
Exposure specification
Lending, cf. Note 11
4,921,760
5,030,995
Guarantees, cf. Note 24
1,275,574
1,422,643
Write
-downs and provisions on guarantees, cf. Note 13 219,142
223,936
Other adjustments
-22,991
-21,087
Gross exposure, cf. below
6,393,485
6,656,487
Annual Report 2025
54
• As a general rule, loans, etc. to private customers are only
granted to customers resident in Greenland, or to custom-
ers formerly resident in Greenland; and
• Loans, etc. to both private and business customers are
solely to customers with satisfactory creditworthiness. Ex-
pansion of credit granting to existing customers with OIK
(objective indication of credit deterioration) or material in-
dications of weakness will only take place in exceptional
cases. The BANK of Greenland is, however, aware of its
size and importance to the local area and contributes to a
minor extent to the new establishment of small business
enterprises with a somewhat higher risk profile, and also
supports existing customers where it is assessed that the fi-
nancial challenges are of a temporary nature.
• Some financing, such as financing of activities abroad, project
financing and financing of investment products, is subject to
tighter monitoring, and may only be granted by the Bank’s
managing director or deputy managing director.
Risk diversification
The BANK of Greenland wishes to diversify its credit risk be-
tween lending to private customers and lending to business
customers. The exposure to business customers may thus not
exceed 60% of the total exposure.
Risk diversification to industries with a reasonable spread across
sectors is also required. Lending to individual sectors exceeding
15% is thus not preferred, with the exception of “Real estate"
and "Completion of construction projects”, to which the overall
exposure may amount to up to 25%.
Standard terms
Business customers: Exposures can typically be terminated
without notice by the Bank. The customer is normally required
to provide the Bank with financial information on an ongoing
basis.
Private customers: The typical term of notice from the Bank is
two months. Financial information is normally required for new
loans, and changes to existing loans.
Figure 1
Lending and guarantee debtors by sectors
The geographical spread of the Bank’s lending and guarantees in
Greenland is distributed on the five main municipal towns (pri-
mary), smaller towns (secondary), settlements and villages (ter-
tiary) and abroad (other), cf. Figure 3. According to the Bank’s
business model, lending and guarantees outside Greenland are
maximised at 10% of total lending and guarantees.
1. Public authorities (8%) 2. Business in total (59%)
3. Private (33%)
Figure
2
Lending and guarantee debtors by industries under business
0,0%
0,7%
1,1%
1,2%
3,3%
3,8%
7,5%
10,0%
12,5%
19,0%
2.3 Energy supply
2.2 Industry and extraction of minerals
2.8 Financing and insurance
2.7 Information and communication
2.1 Agriculture, hunting and forestry, and fishing
2.10 Other business
2.4 Building and construction i total
2.5 Trade
2.6 Transport, hotels and restaurants in total
2.9 Purchase and sale of real estate in total
Annual Report 2025
55
Figure 3
Geographical spread of lending and guarantees
Authorisation procedures
Credits, loans and guarantees are authorised at various levels in
the Bank, depending on the exposures’ size, risk and type. On
financing a number of separate activities and on authorisation
for customers subject to value adjustment, the authorisation
procedure is stricter and, irrespective of size, authorisations can
only be made in the Bank’s central credit department, and in
some cases solely by the Bank’s managing director or deputy
managing director. Large exposures are authorised by the
Bank’s Board of Directors.
Monitoring
Management and monitoring of credit granting and compliance
with the Bank’s credit policy take place on a centralised basis in
the Bank’s credit department.
The Bank’s credit policy is complied with via review of the au-
thorisations at credit department level and higher, and via ran-
dom sample controls in the individual departments.
Collateral security
The BANK of Greenland wishes to have adequate collateral se-
curity for its credit granting.
For financing, the collateral security primarily consists of:
• Mortgages on private residential properties, primarily in
Greenland;
• Mortgages on commercial properties for own use;
• Mortgages on rental properties (residential and commer-
cial);
• Mortgages on movable property, cars, boats, snow scoot-
ers, operating equipment, etc.;
• Mortgages on fishing vessels;
• Mortgages on fishing rights;
• Mortgages on easily negotiable securities;
• Surety pledges;
• Assignments; and
• Mortgages on shares in the companies to which credit has
been granted
As a general rule, the valuation of the collateral security is based
on fair value, calculated with a safety margin between 10% and
50%
The “haircuts” made for the individual collateral are assessed to
be sufficient to cover the costs of acquisition and realisation of
the individual security.
There is no public property valuation in Greenland, and the as-
sessed valuations are therefore based on the Bank’s current ex-
perience of market values for the trades completed.
The BANK of Greenland is involved in 70-80% of all property
transactions in Greenland and therefore has a large body of ex-
perience on which to base this assessment.
The Bank continuously assesses whether there have been
changes in the quality of security and other conditions as a con-
sequence of impairment or changes in practice concerning col-
lateral security. There have been no changes during the year in
the practice for the valuation of security, or the practice for
handling security.
Write-down of loans and other receivables and
provisions for guarantees and loan undertakings.
The calculation of the expected credit loss depends on
whether there has been a significant increase in the credit risk
since initial recognition. The calculation of write-downs adheres
to a model with three stages:
• Stage1 concerns assets for which there has been no signifi-
cant increase in credit risk. In this stage, the write-downs
equivalent to the expected 12-month credit loss are calcu-
lated.
• Stage 2 concerns assets for which there has been a signifi-
cant increase in credit risk. In this stage, the write-downs
equivalent to the expected credit loss in the asset’s lifetime
are calculated.
• Stage 3 concerns credit-impaired assets. In this stage, the
write-downs are calculated on the basis of an individual as-
sessment of the credit loss in the asset’s lifetime.
89%
3%
3%
5%
Primary Secondary Tertiary Abroad
Annual Report 2025
56
There have been no changes in significant assumptions and val-
uation methods during the financial period.
Write-downs on loans and receivables are carried to an adjust-
ment account that is set off under lending, and provisions for
guarantees and non-utilised credit undertakings are recognised
as a liability. In the statement of income, write-downs and pro-
visions on guarantees and credit undertakings are recognised
collectively as write-downs on loans.
Division into stages
The division into stages is based on the BANK of Greenland’s
rating models in the form of PD models developed by BEC and
internal credit management. The following principles are the
basis for the division into stages 2 and 3.
Significant increase in credit risk (Stage 2)
Lending and other receivables are categorised according to
whether the probability of default (PD) within 12 months on
initial recognition is either under 1.0%, or 1.0% and above.
On assessment of the development in credit risk, it is assumed
that there has been a significant increase in the credit risk in re-
lation to the date of initial recognition when:
Under 1%
The probability of default (PD) during the remaining maturity
increases by 100%, and 12-month PD increases by 0.5 percent-
age point when PD on initial recognition was below 1%.
1% and higher
The probability of default (PD) during the remaining term to
maturity increases by 100% or the 12-month PD increases by
2.0 percentage points when PD on initial recognition was
above 1%. In addition, the credit risk is assessed to have in-
creased considerably if the borrower has been in arrears for
more than 30 days, without any special circumstances allowing
this to be disregarded.
If the relevant 12 months’ PD exceeds 5%, the exposure will
move to stage 2.
Financial assets for which a significant increase in the credit risk
has occurred are, however, placed in the weak part of stage 2
in the following situations:
An increase in PD for the expected remaining term to maturity
of 100%, or an increase in 12 months’ PD of 0.5% point, when
12 months’ PD on initial recognition was below 1% and the
current 12 months’ PD is 5% or higher. An increase in PD for
the expected remaining term to maturity of 100%, or an
increase in 12 months’ PD of 2.0% points, when 12 months’
PD on initial recognition was above 1% and the current 12
months’ PD is 5% or higher.
The financial asset has been overdrawn for more than 30 days
and the current 12-month PD is 5% or higher.
Credit-impaired assets (Stage 3)
Lending and other receivables measured at amortised cost, and
guarantees and credit undertakings, may be credit-impaired if
one or several or the following events have occurred:
• The borrower is in considerable financial difficulties.
• The borrower is in breach of contract, for example due to
failure to fulfil payment obligations for repayments and in-
terest.
• When the Bank or other lenders grant the borrower an
easement of terms that would not have been considered if
the borrower was not in financial difficulties.
• When it is probable that the borrower will file for bank-
ruptcy or be subject to other financial restructuring.
• Lapse of an asset.
Furthermore, the loan is at the latest assessed to be credit-im-
paired if the borrower has been in arrears for more than 90
days.
Significant lending is assessed individually for any indication of
credit impairment at each closure of the accounts. The Bank
makes an individual loss risk statement for exposures in stage 3,
where the risk mitigating collateral value amounts to more than
DKK 100,000, while other exposures are modelled. When cal-
culating stage 3 write-downs, the Bank does not use payment
series, so that write-downs are subject to prudent assessment.
Definition of default
The determination of when a borrower has defaulted on its
obligations is decisive to the compilation of the expected credit
loss. The Bank considers a borrower to have defaulted on its
obligations if
• the borrower is in more than 90 days’ arrears for significant
elements of their obligations.
• It is unlikely that the borrower can repay the obligations in
full.
The assessment of whether a borrower is in arrears concerns
both overdrafts exceeding the fixed lines and failure to pay ei-
ther instalments or interest. The assessment of whether it is
unlikely that a borrower can fulfil its payment obligations is
based on both qualitative and quantitative indicators. A qualita-
tive indicator for business loans might be, for example, whether
Annual Report 2025
57
there is any breach of covenants. Quantitative indicators might,
for example, be an assessment of whether a borrower can fulfil
its obligations for other loans, or is in arrears for other loans.
Depreciation and write-downs
Write-downs in stages 1 and 2:
Calculation of the expected credit loss in stages 1 and 2 is
based on a write-down model. The write-down model is based
on the probability of default (PD), expected credit exposure at
default (EAD) and expected share of loss given default (LGD).
The model incorporates historical observations for the individ-
ual inputs and also forward-looking information, including mac-
roeconomic conditions.
Determination of input to the write-down model
Input to the write-down model is based on the historical infor-
mation developed by the Bank’s data centre using statistic mod-
els.
The probability of default (PD) is determined on the basis of
observed defaults over a period of time, reflecting an economic
cycle, after which the observed defaults are converted to an es-
timated probability applying to a specific time (12-month PD).
Lifetime PD is compiled on the basis of 12-month PD accord-
ing to mathematical models and projections of 12-month PD.
This is based on expectations of the future and the develop-
ment in the loans.
The determination of credit exposure at default (EAD) is based
on the expected change in the exposure after the balance
sheet date, including the payment of interest and instalments,
and further drawing on the credit undertaking. Bankens EDB
Central’s determination of EAD is based on historical infor-
mation concerning expected changes in exposures during the
loans’ lifetime within the individual loan’s limits. Account is
thereby taken of the redemption profile, early redemptions and
changes in the use of credit facilities.
The expected loss given default (LGD) is estimated on the basis
of the difference between the contractual cash flows and the
cash flows which the Bank expects to receive after default, in-
cluding cash flows on realisation of security. The determination
of LGD is based on the expected collateral values less costs of
sales, as well as cash flows that a borrower might pay in addi-
tion to collateral. Account is also taken of any price reduction if
the collateral is to be realised within a shorter period. The ex-
pected cash flows are discounted at present value. The present
value is calculated for fixed-interest-rate loans and receivables
based on the originally-fixed effective interest rate. For variable-
interest-rate loans and receivables, the current effective interest
rate on the loan or receivable is used.
Forward-looking macroeconomic scenarios
Forward-looking information is included in the calculation of
expected losses in the form of macroeconomic prognoses and
projections. The Bank uses a model that is developed and main-
tained by LOPI – the Association of Local Banks, Savings Banks
and Cooperative Banks in Denmark.
The model is based on the determination of historical relations
between write-downs within a number of sectors and indus-
tries, and a number of explanatory macroeconomic variables.
These relations are then subject to estimates of the macroeco-
nomic variables, based on prognoses from consistent sources
such as the Economic Council, Danmarks Nationalbank, et al.
whereby the prognoses generally extend two years ahead, and
include such variables as the increase in public consumption, in-
crease in GDP, interest, etc. The prognoses are based on Dan-
ish figures. The Danish forecasts are currently assessed to be
applicable to conditions in Greenland, which is, however, sub-
ject to some uncertainty – see also the section on managerial
additions.
The expected write-downs are thereby calculated for up to
two years ahead within the individual sectors and industries,
while for maturities beyond two years linear interpolation is
made between the write-down ratio for year 2 and the write-
down ratio in year 10, where in model-related terms a “long-
term equilibrium” is assumed to occur, compiled as a structural
level from the prognoses. Maturities beyond ten years are in
model-related terms assigned the same write-down ratio as the
long-term equilibrium in year 10. Finally, the calculated write-
down ratios are transformed into adjustment factors that cor-
rect the data centre’s estimates in the individual sectors and in-
dustries. The institution makes adjustments to these, based on
own expectations of the future, and according to the composi-
tion of the loans.
Annual Report 2025
58
Managerial additions
Both IFRS 9 and the Danish Executive Order on Financial State-
ments state that the future outlook must be included in the cal-
culation of total write-downs. On each balance sheet date the
Bank therefore assesses the need for adjustments to the ex-
pected credit losses, calculated on the basis of the models ap-
plied in stages 1 and 2. This takes place on the basis of the cal-
culated write-downs, and reflects the management’s assessment
of a potentially greater risk on the Bank’s exposures than is jus-
tified by the historical write-downs.
In both 2024 and 2025, the managerial addition is based pri-
marily on uncertainties concerning model calculations, risk
assessment at sector level, macroeconomic impacts and geopo-
litical uncertainty.
As a consequence of geopolitical-, inflation- and cyclical uncer-
tainty, the BANK of Greenland has made a risk assessment at
sector level, where a general change in creditworthiness at
portfolio level, and the derived increased impairment write-
downs, are estimated. On this basis, the Bank has allocated a
managerial addition of DKK 41.1 million, compared to an esti-
mate of DKK 42.3 million in 2024. This also includes a method
risk supplement.
Managerial additions by stages
2025
Stage 1
TDKK
Stage 2
and 2SVAG
TDKK
Managerial
additions total
TDKK
Business
0
23,980
23,980
Private
0
17,169
17,169
In total
0
41,149
41,149
2024
Stage 1
TDKK
Stage 2
and 2SVAG
TDKK
Managerial
additions total
TDKK
Business
0
25,240
25,240
Private
0
17,022
17,022
In total
0
42,262
42,262
Write-downs in stage 3:
Write-downs on credit-impaired loans are compiled as the ex-
pected loss based on a number of possible outcomes for the
borrower’s situation and the Bank’s credit handling. The ex-
pected loss is calculated by weighting together the calculated
loss related to each scenario, based on the probability of the
scenario occurring. For each scenario, the write-down is com-
piled on the basis of the difference between the accounting
value before write-down and the present value of the expected
future payments on the loan.
For the calculation of current value, fixed-interest-rate loans
and receivables are subject to the effective interest rate origi-
nally determined. For variable-interest-rate loans and receiva-
bles, the current effective interest rate on the loan or receiva-
ble is used.
The general rule is that the write-down comprises the expo-
sure, less calculated security.
Write-offs
Financial assets are written off in full or in part if there is no
longer any reasonable expectation that the outstanding amount
will be paid. On write-off, the asset will cease to be carried to
the balance sheet in full or in part.
The time at which there is no longer assessed to be any rea-
sonable expectation that outstanding amounts will be paid in, is
based on the concrete circumstances of the individual bor-
rower. This might be a lack of earnings, equity, etc.
Before write-off is made, the borrower will have been subject
to an extended collection process, with attempts to achieve
voluntary payment arrangements, realisation of assets, etc.
After write-off has taken place, the debt collection process will
continue. In the case of companies, typically until the borrower
has completed bankruptcy proceedings, composition with cred-
itors, etc. For private individuals, continued attempts are made
to establish voluntary payment schemes and possible legal col-
lection.
Annual Report 2025
59
Exposure and write-downs by sector
Gross
exposure
Ratio of
total
gross
exposure
Total
write-downs
Ratio of
total
write-downs
DKK 1,000 %
DKK 1,000
%
2025
Public
509,691 8
178
0
Business:
Agriculture and fisheries
208,896 3
6,994
3
Industry and extraction of minerals
46,436 1
405
0
Energy supply
1,148 0
81
0
Construction and civil engineering
481,069 8
23,358
11
Trade
640,161 10
22,044
10
Transport, restaurants and hotels
798,799 12
16,935
8
Information and communication
76,557 1
132
0
Financing and insurance
71,756 1
182
0
Real estate
1,212,936 19
67,274
30
Other business
243,942 4
24,686
11
Business in total
3,781,700 59
162,091
73
Private
2,102,094 33
61,012
27
In total
6,393,485
100
223,281
100
Gross
exposure
Ratio of
total
gross
exposure
Total
write-downs
Ratio of
total
write-downs
DKK 1,000 %
DKK 1,000
%
2024
Public
849,300 13
672
0
Business:
Agriculture and fisheries
159,723 2
6,272
3
Industry and extraction of minerals
73,127 1
2,099
1
Energy supply
20,528 0
61
0
Construction and civil
engineering 519,760 8
37,032
17
Trade
645,469 10
22,157
10
Transport, restaurants and hotels
629,783 9
11,542
5
Information and communication
2,458 0
32
0
Financing and insurance
29,127 0
194
0
Real estate
1,317,057 20
60,044
27
Other
business 312,961 5
18,650
8
Business in total
3,709,993 56
158,083
71
Private
2,097,194
32
65,181
29
In total
6,656,487 100
223,936
100
Annual Report 2025
60
Credit exposure distributed on classification, creditworthiness and stages
Classification
The Bank of Greenland
Classification
Danish Finan-
cial Supervi-
sory Authority
Stage 1
TDKK
Stage 2
TDKK
Stage 2SVAG
TDKK
Stage 3
TDKK
In total
TDKK
Rating 1
– 3
3/2A
2,944,428
44,176 0
0
2,988,604
Rating 4
– 8
2B
2,253,625
380,027 379,476
0
3,013,128
Rating 9
– 10
2C
0
0 80,332
0
80,332
Rating 11
1
0
0 0
311,421
311,421
In total
5,198,053
424,203 459,808
311,421
6,393,485
Classification BANK of Greenland
• Ratings 1-3 correspond to the Danish FSA’s creditworthiness scale 3/2A – Customers with undoubtedly good creditworthiness
and customers with normal creditworthiness.
• Ratings 4-8 correspond to the Danish FSA’s creditworthiness scale 2B – Customers that do not fulfil the criteria in 1-3, but
which on the other hand do not have significant signs of weakness. The debt servicing ability is good, although the key financial
indicators may be weak.
• Ratings 9-10 Customers with significant signs of weakness, but without OIK occurring. The customer’s debt servicing ability is
less satisfactory and the customer is economically vulnerable/has weak key indicators.
• Rating 11 Customers with OIK. Customers with and without loss risk compilation (write-down). The debt servicing ability is
poor or non-existent, and there is an increased risk of losses.
Credit exposure to industries broken down by stages:
Stage 1
TDKK
Stage 2
TDKK
Stage
2SVAG TDKK
Stage 3
TDKK
In total
TDKK
Public
509,557
0
134
0
509,691
Business:
Agriculture and fisheries
168,899
22,686
11,132
6,179
208,896
Industry and extraction of minerals
40,624
982
4,791
39
46,436
Energy supply
226
228 693 0
1,147
Construction and civil engineering
350,143
52,243
55,223
23,460
481,069
Trade
573,404
23,058
20,664
23,036
640,162
Transport, restaurants and hotels
630,109
45,815 117,334 5,541
798,799
Information and communication
75,849
165
542
1
76,557
Financing and insurance
28,744
26,868
16,144
0
71,756
Real estate
895,810
86,859 98,806 131,461
1,212,936
Other business
143,334
9,592
50,020
40,996
243,942
Business in total
2,907,142
268,496
375,349
230,713
3,781,700
Private
1,781,354
155,707 84,325 80,708
2,102,094
In total
5,198,053
424,203
459,808
311,421
6,393,485
Annual Report 2025
61
Reason for value adjustment of exposures in stage 3
DKK 1,000
Credit
exposures
before write-downs
Write-downs
Accounting value
Collateral
security
Maximum
credit risk
2025
Bankruptcy
69,499
40,075
29,424
6,676
22,748
Collection
12,408
9,085
3,323
3,173
150
Financial difficulties
229,514
90,816
138,698
98,551
40,147
In total
311,421
139,976
171,445
108,400
63,045
2024
Bankruptcy
4,909
3,074
1,835
300
1,535
Collection
15,290
12,063
3,227
2,871
356
Financial difficulties
256,411
104,673
151,738
68,797
82,941
In total
276,610
119,810
156,800
71,968
84,832
Credit quality of exposures in general
Arrears or overdrafts > DKK 1,000
In DKK 1,000
2025
2024
0
-30 days 2,384
1,018
31
-60 days 409
378
61
-90 days 226
107
> 90 days
3,877
8,343
In total
6,896
9,846
The BANK of Greenland applies a rating model that divides borrowers into 11 categories. The division is according to criteria such
as the borrower’s earnings, assets, account behaviour, etc. The 11 categories are then assigned to the Danish FSA’s creditworthi-
ness scale.
Credit exposures before write
-downs distributed by creditworthiness
Creditworthiness distributed on the Danish FSA’s categories from 3 to 1, where category 3 is included in 2a.
DKK 1,000
0
500.000
1.000.000
1.500.000
2.000.000
2.500.000
3.000.000
3.500.000
4.000.000
Exposures' OIK recognised
in balance sheet (FT-1)
Exposures with significant
signs of weakness (FT-2c)
Exposures with slightly
diminished
creditworthiness (FT-2b)
Exposures with normal
creditworthiness (FT-2a)
2025
2024
Annual Report 2025
62
The BANK of Greenland has no “non-impaired loans or guar-
antees” for which the loan terms have been eased as a conse-
quence of a borrower’s financial difficulties.
Market risk
The BANK of Greenland’s market risk is managed by fixed lim-
its for a large number of risk measurements. Monitoring of
market risk and of compliance with the adopted framework is
undertaken on a daily basis by the Bank’s Markets Department.
The Executive Management receives reports on a daily basis if
risks are close to limits. The Board of Directors receives re-
ports on the development in market risks on a monthly basis.
The reports include the month-end value and are prepared by
the Bank’s Accounting Department. The Accounting Depart-
ment also prepares reports on a random day of the month,
which are reported to the Executive Management.
Interest rate risk
The Board of Directors’ guidelines for the Executive Manage-
ment include a maximum interest rate risk for the Bank. The
Bank’s objective is to hold the interest rate risk below 3%.
The interest rate risk is calculated in accordance with the Dan-
ish Financial Supervisory Authority’s guidelines.
The Bank has set a minor limit of DKK 50 million for uncov-
ered lending at fixed interest rates. Besides this, all of the Bank’s
lending at fixed interest rates is covered.
The BANK of Greenland has outsourced the portfolio manage-
ment of the Bank’s bond holdings to an external portfolio man-
ager. The portfolio manager is subject to the aforementioned
risk framework and works on the basis of a duration of 0.75-
1.75 years. Reference is made to Notes 27 and 30.
Share risk
The Board of Directors’ guidelines for the Executive Manage-
ment include a maximum shareholding (excluding sector
shares) for the risk which the Bank may assume. The Bank cur-
rently does not hold listed shares. Reference is made to Note
15.
Currency risk
The BANK of Greenland has adopted guidelines for the curren-
cies in which exposure is permitted, and the maximum expo-
sure for each currency. All significant currency exposures are
covered. The Bank had no significant currency exposures at the
end of 2025. Reference is made to Note 26 for further infor-
mation on currency risks.
Liquidity risk
The BANK of Greenland’s liquidity reserves are managed by
maintaining sufficient liquid funds, ultra-liquid securities (levels 1
and 2), and the ability to close market positions. The liquid re-
serves are determined on the basis of an objective to ensure
stable liquid reserves. The Bank seeks to have a constant LCR
ratio at the level of 175-225. LCR for the BANK of Greenland
is calculated at 297.2 % as at the end of 2025. Reference is also
made to key figures for the LCR (Liquidity Coverage Ratio), as
well as the key figures for lending as a ratio of deposits in Note
32.
Operational risk
In order to reduce losses due to operational risks, the Bank has
drawn up policies and written procedures. The Bank’s policy is
to continuously limit the operational risks, of which the follow-
ing are examples. The Bank’s procedures are reviewed and re-
assessed at least once every other year, unless there are
changes in a procedure due to e.g. legislative changes, proce-
dural changes, internal rules, etc. Operational events that have,
or could have, resulted in a loss of a certain size, are registered
and, at least once a year, the Board of Directors receives a re-
port on operational events. Significant individual events are also
reported.
By ensuring a clear division of organisational responsibility, with
the necessary and adequate separation of functions, the opera-
tional risks can be limited.
The BANK of Greenland considers dependence on key em-
ployees to be a focus area. Written procedures have been
drawn up in order to minimise dependence on individuals.
There is continuous focus on reducing dependence on individ-
ual persons in key roles in the Bank, and the Bank continuously
assesses the outsourcing of operating areas that are not im-
portant to the Bank’s competitiveness. The Bank also has great
focus on continuously improving the internal and external re-
cruitment basis. The BANK of Greenland wishes to have a
strong control environment and has therefore also drawn up a
number of standards for how control is to take place.
The BANK of Greenland has drawn up policies and emergency
plans for physical disasters and IT outages. IT outages may dis-
rupt operations. In the case of a geographically limited outage in
the branch network, the other branches will be able to con-
tinue operations. For any outage at the head office, emergency
plans and contingency measures have been drawn up, and it
will be possible to establish temporary operations within a
short time from a Centre II established in external premises.
Customer-oriented temporary operations can be established
within one day.
Annual Report 2025
63
The Bank's IT operations take place at BEC Financial Technolo-
gies (BEC). The Bank closely follows the instructions and rec-
ommendations received, just as the Bank does not undertake
independent development of IT systems.
The BANK of Greenland has entered into cooperation on in-
ternal auditing with Arbejdernes Landsbank A/S and the Bank
has also appointed a legal staff member as compliance officer.
This will help to ensure that the Bank complies with both ex-
ternal and internal requirements at all times.
Annual Report 2025
64
3. Interest income
Receivables from credit institutions and central banks
41,921
60,423
Lending and other receivables
298,640
376,161
Bonds
28,700
39,359
Foreign exchange, interest rate, equity, commodity and other contracts, as well as derivative
financial instruments
298
966
Total interest income
369,559
476,909
4. Interest expenses
Credit institutions and central banks
117
106
Deposits and
other liabilities 51,195
115,112
Issued bonds
1,935
1,118
Subordinated debt
1,003
620
Total interest expenses
54,250
116,956
5. Fees and commission income
Securities and securities accounts
11,492
9,413
Payment settlement
36,249
36,464
Loan transaction fees
3,677
3,752
Guarantee commission
28,098
30,181
Other fees and commission
22,883
22,319
Total fee and commission income
102,399
102,129
6. Value adjustments
Lending at fair value
-631
1,090
Bonds
7,514
15,989
Shares
4,699
6,351
Currency
6,805
6,235
Foreign exchange, interest rate, equities, commodities and other contracts, as well as
derivative financial instruments
637
-1,087
Assets connected to pool schemes
12,562
59,703
Deposits in pool
schemes -12,562
-59,703
Total value adjustments
19,024
28,578
Note 3-6
The Bank has not distributed net interest and fee income and value adjustments on areas of activity and geographical markets. It is
assessed that there are no significant deviations between the Bank’s activities and geographical areas, and no segment data is there-
fore disclosed.
DKK 1,000
2025
2024
Annual Report 2025
65
DKK 1,000
2025
2024
7. Staff and administrative expenses
Staff expenses
Salaries 110,571
103,989
Other staff expenses 2,684
2,832
Pensions 14,128
12,826
Social security expenses 1,663
277
In total
129,046
119,924
Other administration expenses
115,339
106,438
The average number of employees in the financial year, converted to
full-time employees 156.1
153.8
Of which salaries and remuneration to the Board of Directors and the Executive Management
6,483
6,444
(1 member of the executive board and 9 members of the board of directors)
The board of directors does not receive variable remuneration. The Executive Management
receives variable remuneration in the form of defined
-benefit severance/pension scheme.
Reference is made to the bank's remuneration report:
https://www.banken.gl/en/about
-us/board-of-directors/remuneration-committee/
Five other employees whose activities have a significant influence on the Bank’s risk profile:
Fixed remuneration, including free car and other benefits
6,734
6,122
Variable remuneration
108
210
Pension
815
769
8. Audit fees
Statutory audit of the annual financial statements
1,100
1,033
Other declarations with assurance
140
136
Other services
347
155
Total fees to the auditors
elected by the Annual General Meeting, who perform
the statutory audit
1,587
1,324
Non
-auditing services are provided by Deloitte, Statsautoriseret Revisionspartnerselskab and
comprise fees for advice on SIFI
- and accounting conditions.
9. Tax on the profit for the year
Tax on the profit for the year is calculated as follows:
Current tax
9,639
16,579
Deferred tax
-9,103
20,110
In total
536
36,689
Tax on the profit for the year is broken down as follows:
Calculated 25% tax on the profit for the year
45,347
61,425
Other adjustments
189
14
Tax value of dividend deduction
-45,000
-24,750
In total
536
36,689
Effective tax rate
0.3%
14.9%
Corporate tax paid in 2025 amounts to TDKK 4,750.
Annual Report 2025
66
DKK 1,000
2025
2024
10. Receivables from credit institutions and central banks
On demand
91,698
64,989
Up to and including 3 months
10,000
91,000
Over 3
months and up to and including 1 year 5,000
0
In total
106,698
155,989
Receivables from credit institutions
106,698
155,989
In total
106,698
155,989
11. Lending
Write-downs on loans, guarantees and non-utilised credit facilities
New
write-downs concerning new facilities during the year 14,062
12,926
Reversal of write
-downs concerning redeemed facilities -13,582
-21,195
Net write
-downs during the year as a consequence of changes in the credit risk 16,491
27,237
Losses
without preceding write-downs 65
249
Received for claims previously written off
-1,497
-308
Recognised in the statement of income
15,539
18,909
Lending at amortised cost
4,921,760
5,030,995
Total lending by remaining term to
maturity:
On demand
1,340,403
1,786,792
Up to and including 3 months
183,779
114,910
Over 3 months and up to and including 1 year
475,422
403,718
Over 1 year and up to and including 5 years
1,577,618
1,436,262
Over 5 years
1,344,538
1,289,313
In total
4,921,760
5,030,995
DKK 1,000
Stage 1
Stage 2
Stage 3
Total
11 Lending - continued
Write-downs on loans
31.12.2025
Start of the period
13,779
88,282
110,634 212,695
New write
-downs concerning new facilities during the year 2,345
5,759
5,408 13,512
Reversal of write
-downs concerning redeemed facilities -1,775
-1,776
-4,103 -7,654
Change in write
-downs at the beginning of the year –
transfer to stage 1
14,261
-14,037
-224 0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-1,359
2,086
-727 0
Change in write
-downs at the beginning of the year –
transfer to stage 3
-17
-14,638
14,655 0
Net write
-downs as a consequence of changes in the credit risk -18,197
3,685
21,603 7,091
Previously written down, now finally lost
0
0
-24,833 -24,833
Interest on written
-down facilities 0
0
5,465 5,465
Write
-downs in total 9,037
69,361
127,878
206,276
Annual Report 2025
67
DKK
1,000
Stage 1
Stage 2
Stage 3
Total
Write-downs on guarantees
31.12.2025
Start of the period
614
1,451
9,176 11,241
New write
-downs concerning new facilities during the year 81
71
7 159
Reversal of write
-downs concerning redeemed facilities -6
-3
-9 -18
Change in write
-downs at the beginning of the year –
transfer to stage 1
629
-629
0 0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-59
102
-43 0
Change in write
-downs at the beginning of the year –
transfer to stage 3
0
-331
331 0
Net write
-downs as a consequence of changes in the credit risk -953
-200
2,637 1,484
Write
-downs in total 306
461
12,099
12,866
Write-downs on non-utilised drawing rights
31.12.2025
Start of the period
405
802
538 1,745
New write
-downs concerning new facilities during the year 306
81
4 391
Reversal of write
-downs concerning redeemed facilities -243
-648
-5,019 -5,910
Change in write
-downs at the beginning of the year –
transfer to stage 1
12
-12
0 0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-6
42
-38 -2
Change in write
-downs at the beginning of the year –
transfer to stage 3
0
-363
363 0
Net write
-downs as a consequence of changes in the credit risk 176
901
6,838 7,915
Write
-downs in total 650
803
2,686
4,139
Write-downs on loans
31.12.2024
Start of the period
27,301
78,003
90,562 195,866
New write
-downs concerning new facilities during the year 2,575
5,729
3,898 12,202
Reversal of write
-downs concerning redeemed facilities -2,859
-7,903
-7,801 -18,563
Change in write
-downs at the beginning of the year –
transfer to stage 1
7,852
-5,596
-2,256 0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-1,091
7,193
-6,102 0
Change in write
-downs at the beginning of the year –
transfer to stage 3
-11
-4,128
4,139 0
Net write
-downs as a consequence of changes in the credit risk -19,988
14,984
29,789 24,785
Previously written down, now finally lost
-6,449 -6,449
Interest on written
-down facilities
4,854 4,854
Write
-downs in total 13,779
88,282
110,634
212,695
Annual Report 2025
68
DKK 1,000
Stage 1
Stage 2
Stage 3
Total
Write-downs on guarantees
31.12.2024
Start of the period
1,096
2,695
5,942 9,733
New write
-downs concerning new facilities during the year 183
234
79 496
Reversal of write
-downs concerning redeemed facilities -2
-3
-16 -21
Change in write
-downs at the beginning of the year –
transfer to stage 1
434
-249
-185 0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-180
3,243
-3,063 0
Change in write
-downs at the beginning of the year –
transfer to stage 3
0
-193
193 0
Net write
-downs as a consequence of changes in the credit risk -917
-4,276
6,226 1,033
Write
-downs in total 614
1,451
9,176
11,241
Write-downs on non-utilised drawing rights
31.12.2024
Start of the period
345
517
1,847 2,709
New write
-downs concerning new facilities during the year 139
89
0 228
Reversal of write
-downs concerning redeemed facilities -279
-488
-1,844 -2,611
Change in write
-downs at the beginning of the year –
0
transfer to stage 1
249
-122
-127
Change in write
-downs at the beginning of the year –
0
transfer to stage 2
-9
81
-72
Change in write
-downs at the beginning of the year –
0
transfer to stage 3
0
0
0
Net write
-downs as a consequence of changes in the credit risk -40
725
734 1,419
Write
-downs in total 405
802
538
1,745
DKK 1,000
2025
2024
12. Bonds at fair value
Mortgage
-credit bonds 1,522,468
1,498,540
In total
1,522,468
1,498,540
Of which nominal TDKK 50,000 deposited as security for debt to Danmarks Nationalbank
13. Shares, etc.
Unlisted shares included at fair value
170,179
150,963
Reassessed value, year
-end 170,179
150,963
Annual Report 2025
69
14. Assets connected to pool schemes
Investment associations
780,013
675,642
Non
-invested funds 58
123
In total
780,071
675,765
15. Head office properties
Reassessed value, beginning of year
310,860
298,142
Additions during the year, including improvements
17,333
12,843
Write
-offs -6,841
-6,611
Value changes recognised in other comprehensive income
6,164
6,085
Value changes recognised in the
statement of income 200
401
Reassessed value, year-end
327,716
310,860
There is no public property valuation in Greenland.
In 2025, to support the assessment of the valuation, an independent expert assessment of the
market value of
multiple of the Bank's staff accommodation in Nuuk was obtained. The assess-
ments have resulted in net impairments of TDKK 346. No expert assessment was obtained for
the assessment of the Bank's other domicile properties.
16. Other tangible assets
Cost, beginning of year
37,465
33,812
Additions during the year, including improvements
3,181
3,653
Disposals during the year
-848
0
Cost, year-end
39,798
37,465
Depreciation and write
-downs, beginning of year 29,838
27,032
Depreciation for the year
2,980
2,806
Reversal of depreciation concerning disposals
-427
0
Depreciation and write-downs, year-end
32,391
29,838
Accounting value, year-end
7,407
7,627
17. Debt to credit institutions and central banks
On
demand 21,147
15,698
In total
21,147
15,698
Debt to central banks
18,010
12,565
Debt to credit institutions
3,137
3,133
In total
21,147
15,698
DKK 1,000
2025
2024
Annual Report 2025
70
18. Deposits and other liabilities
On demand
6,534,912
5,874,580
Up to 3 months
30,948
103,085
Over 3 months and up to and including 1 year
530,284
702,639
Over 1 year and up to and including 5 years
313,208
0
Over 5 years
464,621
472,503
In total
7,873,973
7,152,807
On demand
6,534,912
5,874,580
On terms of notice
1,023,398
976,847
Special deposit conditions
315,663
301,380
In total
7,873,973
7,152,807
19. Issued bonds at amortised cost
Bond issue
348,197
273,569
In total
348,197
273,569
Distribution in remaining duration
Over 3 months and up to and including 1 year
24,969
49,923
Over 1 year and up to and including 5 years
323,228
223,646
In total
348,197
273,569
Loan raised as Senior Non
-Preferred, nominally -
50,000
The loan was raised as Senior Non
-Preferred on 27 October 2021 and falls due for full re-
demption on 27 October 2026. The Bank has opted the possibility of early redemption in
2025.
Loan raised as Senior
Non-Preferred, nominally 25,000
25,000
The loan was raised as Senior Non
-Preferred on 2 September 2022 and falls due for full re-
demption on 2 September 2027. The Bank has the option of early redemption as from 2 Sep-
tember 2026.
Loan
raised as Senior Non-Preferred, nominally 100,000
100,000
The loan was raised as Senior Non
-Preferred on 1 December 2023 and falls due for full re-
demption on 1 December 2030. The Bank has the option of early redemption as from 1 De-
cember 2027.
Loan raised as Senior Non
-Preferred, nominally 100,000
100,000
The loan was raised as Senior Non
-Preferred on 20 November 2024 and falls due for full re-
demption on 20 November 2031. The Bank has the option of early redemption as from 20
November 2028.
Loan raised as Senior Non
-Preferred, nominally 125,000
-
The loan was raised as Senior Non
-Preferred on 17 September 2025 and falls due for full re-
demption on 17 September 2032. The Bank has the option of early redemption as from 17
September 2029.
DKK 1,000
2025
2024
Annual Report 2025
71
20. Provisions for deferred tax
The year’s changes in deferred tax can be summarised as follows:
Deferred tax, beginning of year
106,393
84,762
The year’s deferred tax recognised in the statement of income for the year
-9,103
20,110
Adjustment of deferred tax
concerning equity items 1,541
1,521
In total
98,831
106,393
Deferred tax concerns:
Head office properties
62,242
60,796
Operating equipment
589
597
Proposed dividend for the financial year
36,000
45,000
In total
98,831
106,393
21. Subordinated debt
Capital certificate as below
143,843
104,022
In total
143,843
104,022
Subordinated debt included in the capital base according to CRR
143,843
104,022
Loan raised as
subordinated debt, nominally 25,000
25,000
Interest rate, fixed rate
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
Interest rate, floating rate (CIBOR 6 with an addition of 400bp.)
6.200%
6.717%
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.
Loan raised as subordinated debt, nominally
40,000
40,000
Interest rate, floating rate (CIBOR 6 with an addition of 325bp.)
5.407%
6.633%
The loan was raised on 12 September 2024 and falls due for full redemption on 12 September
2034. The Bank has the option of early redemption as from 12 September 2029.
Loan raised as subordinated debt, nominally
40,000
-
Interest rate, floating rate (CIBOR 6 with an addition of 300bp.)
5.200%
-
The loan was raised on 28 May 2025 and falls due for full redemption on 28 May 2035. The
Bank has the option of early redemption as from 28 May 2030.
DKK 1,000
2025
2024
Annual Report 2025
72
22. Share capital
The Bank’s share capital consists of 1,800,000 shares of DKK 100. The shares are paid-up in full. The shares are not di-
vided into classes, and no shares entail special rights. There have been no changes in the share capital in recent years.
Own shares
Number of own shares
0
0
The following hold more than 5% of the Bank’s share capital:
NALIK Ventures A/S
Nuuk
15.26%
NunaFonden
Nuuk
13.98%
AP Pension Livsforsikringsaktieselskab
København
12.87%
BETRI P/F
Thorshavn
9.88%
LB Forsikring
København
6.33%
Kim B. Pedersen
Snevre
5.00%
23. Capital statement
Credit risk
4,915,387
4,652,973
CVA risk
11,185
7,519
Market risk
275,480
235,372
Operational risk
517,541
814,497
Total risk exposure
5,719,593
5,710,361
Equity
1,599,024
1,593,622
Proposed dividend, accounting effect
-108,000
-135,000
Framework for ratio of own shares
0
-5,985
Deduction for capital shares in the financial sector
-21,711
-5,519
Deductions for prudent valuation
-1,696
-1,652
Deductions for Non
-Performing Exposures -21,525
-13,647
Actual core capital
1,446,092
1,431,819
Supplementary capital
143,843
104,022
Capital base
1,589,935
1,535,841
Issued bonds
348,197
273,569
MREL capital base
1,938,132
1,809,410
Actual core capital ratio
25.3
25.1
Capital ratio
27.8
26.9
MREL capital ratio
33.9
31.7
DKK
1,000
2025
2024
Annual Report 2025
73
24. Contingent liabilities
Mortgage finance guarantees
780,976
831,355
Registration and remortgaging guarantees
122,993
118,506
Other guarantees
371,605
472,782
In total
1,275,574
1,422,643
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 2.5 years’ IT costs. IT costs amounting to TDKK 160,316 (2024:
TDKK 152,609)
Like the rest of the Danish banking sector, the bank is obliged to pay in contributions to the Settlement and Guarantee
Fund.
25. Legal cases
The bank is not a party to legal proceedings that are considered to be likely to affect the bank's financial position
26. Currency exposure
Assets in foreign currency, in total
77,213
50,245
Liabilities in
foreign currency, in total 71,243
43,574
Derivates in foreign currency, in total
2,158
0
Exchange
-rate indicator 1 3,812
6,671
Exchange
-rate indicator 1 as a ratio of core capital 0.3
0.4
Exchange
-rate indicator 2 57
119
27. Interest risk rate
The Bank solely has fixed
-interest-rate assets in Danish kroner.
Interest rate risk for debt instruments, etc.
14,389
8,910
DKK 1,000
2025
2024
Annual Report 2025
74
28. Related parties
Related parties comprise the Bank’s Board of Directors and
Executive Management, and their
related parties. The BANK of Greenland has no related parties with a controlling influence.
The size of loans to, and mortgages, surety or guarantees and related pledges, for members of
the Bank’s Executive Management and Board of Directors
Executive management
100
100
Board of Directors, including members elected by the employees
4,267
5,228
Pledges:
Executive Management
0
0
Board of Directors, including members elected by the
employees 3,326
3,262
Significant terms:
Exposures with members of the Bank’s Board of Directors are entered into on normal busi-
ness terms.
Exposures with staff representatives on the Bank’s Board of Directors are entered into on per-
sonnel terms. For members of the Board of Directors elected at the Bank’s Annual General
Meeting, there are no engagements with settled rates.
The Board of Directors’ and Executive Management’s holdings of shares in GrønlandsBANKEN
A/S compiled in accordance with the insider rules (number).
Board of Directors
- Kristian Frederik Lennert 10
10
Board of Directors
- Gert Jonassen 187
-
Board of Directors
- Peter Angutinnguaq Wistoft 264
264
Executive Management
- Martin Birkmose Kviesgaard 1,455
1,455
DKK 1,000
2025
2024
Annual Report 2025
75
29. Derivative financial instruments
Loans at fixed interest rates covered with
interest swaps
The BANK of Greenland uses derivatives to hedge the interest rate risk on fixed
-interest assets and liabilities which are measured at
amortised cost. On the fulfilment of certain criteria, the hedging is treated as hedging of fair
value in the accounts. The interest rate
risk on the hedged assets and liabilities is recognised at fair value as a value adjustment of the hedged items. If the crite
ria for hedging
are no longer fulfilled, the accumulated value adjustment of the hedged it
em is amortised over the remaining term to maturity.
Lending
Amortised/nominal value
110,022
44,356
Accounting value
111,237
45,716
Covered with interest rate swap
Synthetic principal/nominal value
99,729
32,636
Accounting value
3,437
2,830
Lending at fixed interest rates without cover
Amortised/nominal value
7,753
14,690
Accounting value
8,049
15,374
Nominal value
Positive
market value
Negative
market value
Net
market value
2025
Currency contracts
Spot
2,159 0
-2
-2
In total
2,159 0
-2
-2
Interest rate contracts
Swaps
99,729 3,803
-16
3,787
Forwards/Futures, purchase
-3,842 0
-62
-62
Forwards/Futures, sale
3,842 66
0
66
In total
99,729 3,869
-78
3,791
Share contracts
Spot, purchase
1,818 42
0
42
Spot, sale
-1,818 0
-40
-40
In total
0 42
-40
2
In total
101,888 3,911
-120
3,791
2024
Interest rate contracts
Swaps
32,636 2,896
36
2,932
Forwards/Futures, purchase
-2,787 0
-5
-5
Forwards/Futures, sale
2,787 8
0
8
In total
32,636 2,904
31
2,935
Share contracts
Spot, purchase
1,003 1
-5
-4
Spot, sale
1,003 5
-1
4
In total
2,006 6
-6
0
In total
34,642
2,910
25
2,935
1.000 kr.
2025
2024
Annual Report 2025
76
Derivate financial instruments - continued
Term structure by remaining term to maturity
Up to and including 3 months
Over 3 months
Up to and including 1 year
Nominal
value
Net
market value
Nominal
value
Net
market value
2025
Interest rate contracts
Swaps
0
0
967
2,786
Forwards/Futures, purchase
-3,842
-62
0
0
Forwards/Futures, sale
3,842
66
0
0
In total
0
4
967
2,786
Currency
contracts
Spot
2,159 -2
0
0
Share contracts
Spot, purchase
1,818 42
0
0
Spot, sale
-1,818 -40
0
0
In total
0 2
0
0
In total
2,159
4
967
2,786
Over 1 year
Up to and including 5 years Over 5 years
Nominal
value
Net
market value
Nominal
value
Net
market value
Interest rate contracts, swaps
81,559 767
17,204
233
I alt
81,559
767
17,204
233
Up to and including 3 months
Over 3 months
Up to and including 1 year
Nominal
value
Net
market value
Nominal
value
Net
market value
2024
Interest rate contracts
Swaps
1,274 7
3,538
24
Forwards/Futures, purchase
-2,787 -5
0
0
Forwards/Futures, sale
2,787 8
0
0
In
total 1,274 10
3,538
24
Share contracts
Spot, purchase
1,003 -4
0
0
Spot, sale
1,003
4
0
0
In total
2,006
0
0
0
In total
3,280 10
3,538
24
Over 1 year
Up to and including 5 years
Over 5 years
Nominal
value
Net
market value
Nominal
value
Net
market value
Interest rate contracts, swaps
9,508 244
18,317
2,658
In total
9,508 244
18,317
2,658
Annual Report 2025
77
Fair value is the amount at which a financial asset can be traded,
or the amount at which a financial liability can be redeemed,
between qualified, willing and independent parties. The fair
value may be the net book value, if the net book value is calcu-
lated on the basis of underlying assets and liabilities measured at
fair value.
The following three levels of valuation categories can be used
to compile the fair value:
Level 1: Listed prices in an active market for the same type
of financial instruments, i.e. with no change in form
or structure.
Level 2: Listed prices in an active market for similar assets or
liabilities, or other valuation methods in which all sig-
nificant input is based on observable market data.
Level 3: Valuation methods whereby any significant input is
not based on observable market data.
Transfers are made between the categories if an instrument’s
classification on the balance sheet date differs from its classifica-
tion at the beginning of the financial year. However, changes
during the period do not reflect changes in the credit risk.
For listed shares and bonds in levels 1 and 2, the fair value is set
according to the listed prices and market data on the balance
sheet date.
Shares in level 3 comprise sector shares in companies with
which there is cooperation on products, payment settlement
and administration, and are measured at estimated fair value.
The estimated fair value is based primarily on the prices at
which the capital interests could be traded in accordance with
the shareholder agreements, if they were divested as at the bal-
ance sheet date. Determining these shares’ fair value is subject
to uncertainty. For other unlisted shares for which observable
input is not immediately available, the valuation is based on esti-
mates which include information from the companies’ accounts.
For loans, the write-downs are assessed to correspond to the
changes in credit quality. Differences from fair values are as-
sessed to be fees and commission received which do not fall
due for payment until after the end of the financial year, and
for fixed-interest-rate loans with the addition of the interest-
rate-level dependent value adjustment, which is calculated by
comparing the current market interest rate with the nominal
interest rates for the loans.
The fair value for receivables from credit institutions and cen-
tral banks is determined according to the same method as for
loans, although the Bank has not currently made any write-
downs for receivables from credit institutions and central banks.
For variable-interest-rate financial liabilities such as deposits and
debt to credit institutions measured at amortised cost, the dif-
ference from fair values is assessed to be interest payable that
does not fall due for payment until after the end of the financial
year.
For fixed-interest-rate financial liabilities such as deposits and
debt to credit institutions measured at amortised cost, the dif-
ference from fair value is assessed to be interest payable that
does not fall due for payment until after the end of the financial
year, and the interest-rate-level dependent value adjustment.
30.
Fair value of financial instruments
Annual Report 2025
78
DKK 1,000
Listed
prices
Level 1
Observable
prices
Level 2
Non-
observable
prices
Level 3
In total
2025
FINANCIAL ASSETS
Bonds
1,522,468 0
0
1,522,468
Shares
0 0
170,179
170,179
Positive market value of derivative financial instruments
0 3,604
0
3,604
In total
1,522,468 3,604
170,179
1,696,251
FINANCIAL LIABILITIES:
Negative market value of
derivative financial instruments 0 120
0
120
In total
0 120
0
120
DKK 1,000
Listed
prices
Level 1
Observable
prices
Level 2
Non-
observable
prices
Level 3
In total
2024
FINANCIAL ASSETS
Bonds
1,498,540
0
0
1,498,540
Shares
0
0
150,963
150,963
Positive market value of derivative financial instruments
0 2,910
0
2,910
In total
1,498,540
2,910
150,963
1,652,413
FINANCIAL LIABILITIES:
Negative market value of derivative financial
instruments 0 47
0
47
In total
0 47
0
47
DKK 1,000
2025 2025
2024
2024
Financial instruments recognised at amortised cost:
Amort. cost. Fair value
Amort. cost.
Fair value
Receivables from credit institutions and central banks
106,698 107,624
155,989
155,992
Lending and other receivables
4,921,760 4,950,290
5,030,995
5,060,901
Liabilities to credit institutions and central banks
21,147 21,147
15,698
15,698
Deposits and other liabilities
7,873,973 7,873,225
7,152,801
7,152,114
Derivative financial instruments:
Interest rate swaps (net)
0 3,787
0
2,932
Annual Report 2025
79
With regard to the Bank’s monitoring of market risks and calcu-
lation of the adequate capital base, a number of sensitivity cal-
culations are performed, which include the following market
risk variables:
Interest rate risk:
The sensitivity calculation in relation to the Bank’s interest rate
risk is based on the interest rate risk key ratio that is reported
to the Danish FSA. This key ratio shows the effect on the core
capital after deductions on a change in interest rates of 1%
point, equivalent to 100 basis points. The calculation shows that
if the average interest rate on 31 December 2025 had been
100 basis points higher, all other things being equal, the profit
for the year before tax would be TDKK 14,389 lower (2024:
TDKK 8,910 lower), primarily as a consequence of negative fair
value adjustment of the Bank’s holdings of fixed-interest-rate
bonds.
Currency risk:
The sensitivity calculation in relation to the Bank’s currency risk
is based on the currency indicator 1 key ratio that is reported
to the Danish FSA. Currency indicator 1 expresses a simplified
measure of the extent of the Bank’s positions in foreign cur-
rency, and is calculated as the largest of the sum of all of the
short currency positions and the sum of all of the long currency
positions. If the Bank, on 31 December 2025, had experienced
a loss on currency positions of 2.5% of currency indicator 1, all
other things being equal, the profit for the year before tax
would be TDKK 95 lower (2024: TDKK 167 lower), primarily
as a consequence of exchange rate adjustment of the Bank’s
currency holdings
Share risk:
If the value of the bank’s shareholdings on 31 December 2025
had been 10% lower, all other things being equal, the profit for
the year before tax would be TDKK 17,018 lower (2024:
TDKK 15,096 lower), as a consequence of negative fair value
adjustment of the share portfolio.
Property risk:
If the value of the Bank’s properties on 31 December 2025 had
been 10% lower, the negative value adjustment of properties,
all other things being equal, would be TDKK 32,772 before tax
(2024: t.kr. 31,086 lower).
The levels in the sensitivity analysis for the 4 market risk varia-
bles have been selected on the basis that they are considered
realistic and at the same time test the bank's robustness..
31.
Sensitivity calculations
Annual Report 2025
80
32. Five-year Financial Highlights and Key Figures
DKK 1,000
2025
2024
2023
2022
2021
Net interest and fee income
428,840
470,264
435,012
351,485 338,933
Value adjustments
19,024
28,578
40,058
-39,356 11,219
Other
operating income 6,340
5,400
5,803
6,588 6,185
Staff and administration expenses
244,385
226,362
211,166
195,056 186,385
Depreciation and impairment of tangible assets
9,621
9,017
8,158
7,320 7,014
Other operating expenses
3,270
4,255
2,815
2,706 2,497
Write
-downs on loans and receivables, etc. 15,539
18,909
14,160
4,523 1,537
Profit before tax
181,389
245,699
244,574
109,112
158,904
Tax
536
36,689
52,179
10,361 26,072
Profit for the year
180,853
209,010
192,395
98,751
132,832
SELECTED BALANCE SHEET ITEMS
Lending
4,921,760
5,030,995
4,812,975
4,353,585 3,783,681
Deposits
7,873,973
7,152,807
6,413,469
5,942,479 5,363,871
Equity
1,599,024
1,593,622
1,479,123
1,318,592 1,267,911
Total assets
10,974,460
10,021,543
8,840,981
7,949,566 7,226,988
Contingent liabilities
1,275,574
1,422,643
1,774,426
1,934,125 1,781,465
OFFICIAL KEY FIGURES:
Solvency ratio
27.8
26.9
26.0
23.6 24.4
Core capital ratio
25.3
25.1
24.9
23.2 24.4
Return on equity before tax
11.4
16.0
17.5
8.4 13.0
Return on equity after tax
11.3
13.6
13.8
7.6 10.9
Rate of return
1.6
2.1
2.2
1.2 1.8
Income per cost krone
1.7
2.0
2.0
1.5 1.8
Interest rate
risk 1.0
0.6
0.7
1.2 1.2
Foreign exchange position
0.3
0.5
0.4
0.5 0.8
Lending plus write
-downs as a ratio of deposits 59.3
67.0
72.3
71.5 69.1
Lending as a ratio of equity
3.1
3.2
3.3
3.3 3.0
Growth in lending during the year
-2.2
4.5
10.6
15.1 -5.6
LCR (Liquidity Coverage Ratio)
297.2
266.2
259.0
220.5 238.6
NSFR (Net Stable Funding Ratio)
149.8
137.5
134.0
133.8 -
Sum of large exposures
129.7
136.0
150.0
167.3 156.7
Ratio of receivables at reduced interest rates
1.2
0.8
0.9
0.4 0.5
Write
-down ratio for the year 0.2
0.3
0.2
0.1 0.0
Accumulated write
-down ratio 3.5
3.4
3.1
3.0 3.2
Profit for the year per share
100.8
116.1
106.9
54.9 73.8
Net book value per share
888.3
885.3
821.7
732.6 704.0
Dividend per share
80.0
100.0
55.0
20.0 40.0
Listed price/profit for the year per share (PE)
8.8
6.0
5.8
10.8 8.1
Stock exchange quotation/net book value per share
1.0
0.8
0.8
0.8 0.8
Annual Report 2025
81
Solvency ratio
Capital base as a percentage of risk exposure.
Core capital ratio
Core capital after percentage deduction of risk exposure.
Return on equity before tax
Profit before tax as a ratio of average equity. Average equity is
calculated as a simple average of equity at the beginning and
end of the year.
Return on equity after tax
Profit after tax as a ratio of average equity. Average equity is
calculated as a simple average of equity at the beginning and
end of the year.
Rate of return
Profit for the year as a ratio of total assets.
Income per cost krone
Net interest and fee income, value adjustments and other oper-
ating income as a percentage of personnel and administration
expenses, depreciation and write-down of intangible and tangi-
ble assets, other operating expenses and write-downs on loans
and receivables.
Interest rate risk
Interest rate risk as a percentage of core capital after deduc-
tions.
Currency position (currency indicator 1)
Currency indicator 1 is defined by the Danish FSA and ex-
presses the risk of losses on positions in foreign currency due
to fluctuating exchange rates. On an overall basis, the risk is cal-
culated as the larger amount of positions in currencies in which
the Bank has a net receivable, or positions in which the Bank
has net debt.
Lending as a ratio of deposits
Lending + write-downs as a ratio of deposits.
Lending as a ratio of equity
Lending/equity.
Growth in lending during the year
Percentage growth in lending from the beginning to the end of
the year.
LCR (Liquidity Coverage Ratio)
Liquidity buffer/payment obligations within 30 days
NSFR (Net Stable Funding Ratio)
Available stable funding/Required stable funding
Sum of large exposures
Sum of large exposures as a ratio of the capital base.
Ratio of receivables at reduced interest rates
Receivables at reduced interest rates as a ratio of lending +
guarantees + write-downs.
Write-down ratio for the year
Write-downs for the year as a ratio of lending + guarantees +
write-downs.
Accumulated write-down ratio
Total write-downs as a ratio of lending + guarantees + write-
downs.
Profit for the year per share
Profit for the year after tax/average number of shares. Average
number of shares is calculated as the weighted average at the
beginning and end of the year.
Net book value per share
Equity/number of shares, excluding own shares.
Dividend per share
Proposed dividend/number of shares.
Listed price as a ratio of the profit for the year per share
Listed price/profit for the year per share.
Stock exchange quotation as a ratio of net book value
Stock exchange quotation/net book value per share.
33.
Definition of key figures
Annual Report 2025
82
Annual Report 2025
83
Former CEO Gunnar í Liða
Born on 13 April 1960 (male)
Joined the Board of Directors on 6 April 2005. Last re-elected
in 2025. Current term expires in 2027.
Does not comply with the Committee on Corporate Govern-
ance’s definition of independence.
Chairman of the Audit Committee, Chairman of the Risk Com-
mittee, Chairman of the Nomination Committee and Chairman
of the Remuneration Committee.
Member of the Boards of Directors of:
• Gist og Vist P/F (Chairman)
• SMJ Rådgivende Ingeniører A/S
Chairman of the Nomination Committee of:
• Bakkafrost P/F
Gunnar í Liða holds an MSc(Econ), supplemented with a man-
agement qualification from Wharton Business School, and was
employed in the Faroese financial sector from 1988 to 2010 –
until the end of 2010 as Director of the Faroe Islands’ largest
insurance company, when he resigned from this position. Gun-
nar í Liða also has substantial Board experience from Faroese
companies, including financial activities, and a special insight into
North Atlantic economic affairs and financing.
Structural Engineer Kristian Frederik Lennert
INUPLAN A/S
Born on 30 November 1956 (male)
Joined the Board of Directors on 8 April 2003. Last re-elected
in 2024. Current term expires in 2026.
Does not comply with the Committee on Corporate Govern-
ance’s definition of independence.
Member of the Audit Committee, member of the Risk Com-
mittee, member of the Nomination Committee and member
of the Remuneration Committee.
Member of the Boards of Directors of:
• INUPLAN A/S (Chairman)
Director of:
• Ejendomsselskabet Issortarfik ApS
• Attavik-Udlejning
Kristian Frederik Lennert holds an MSc in structural engineering
and has been employed by INUPLAN A/S since 1984, and in
2002-2019 as managing director of the company. Kristian Len-
nert also has experience from membership of the Boards of
Directors of Greenlandic companies and during his career has
gained insights into Greenland’s economic and social conditions,
especially in the building and construction area.
Board and Management
Annual Report 2025
84
Proprietor Maliina Bitsch Abelsen
Pikiala A/S
Born on 7 February 1976 (female)
Joined the Board of Directors on 20 March 2018. Last re-
elected in 2024. Current term expires in 2026.
Complies with the Committee on Corporate Governance’s
definition of independence
Member of the Audit Committee and member of the Risk
Committee
Owner of
• Pikiala
Co-owner of:
• Yogarta I/S
Maliina Abelsen holds an MSc in social sciences and a Masters in
Policy and Applied Social Research. Today she is co-owner of
the Pikiala ApS consultancy.
From 2014 to 2016, Maliina Abelsen was Director of the 2016
Arctic Winter Games. From 2015 to 2017 Maliina Abelsen was
Vice Chair of the Board of Directors of TELE Greenland A/S. In
2016-2019, she was CCO/Commercial Director of Air Green-
land with responsibility for, among other things, commercial de-
velopment, sales and marketing, and was chair of Royal Green-
land A/S in 2022-2025.
Maliina Abelsen was a member of Inatsisartut (the Greenland
Parliament) from 2009 to 2014 and held posts in Naalakker-
suisut (the Greenland Government), most recently as
Naalakkersuisoq (Minister) for Finance from 2011 to 2013. Ma-
liina Abelsen has previously worked at the UN Human Rights
Commission in Geneva and the Foreign Affairs Directorate in
Nuuk.
Director Pia Werner Alexandersen
Born on 2 January 1973 (female)
Joined the Board of Directors on 26 March 2025. Current
term expires in 2027.
Complies with the Committee on Corporate Governance’s
definition of independence
Member of the Audit Committee and member of the Risk
Committee
Member of the Boards of Directors of:
• AP Pensionsservice A/S
• Aktieselskabet af 04. juni 2003
• Aktieselskabet af 12. maj 1998
Director of:
• AP Pension
Pia Werner Alexandersen holds an MSc in economics
(Cand.scient.oecon) from the University of Copenhagen and
has more than 25 years' professional experience in the Danish
financial sector, including AP Pension, Nykredit Bank and Dexia
Bank Denmark.
Pia Werner Alexandersen is a member of the Executive Board
and Chief Operating Officer (COO) at AP Pension, with re-
sponsibility for IT, data, AI and Health. Prior to that, she was
EVP of Nykredit Wealth Management from 2019 to 2024 and
Deputy Director of Nykredit Markets from 2015 to 2019.
Pia Werner Alexandersen also has Board experience from In-
vestering Danmark and Nærpension, as well as Board training
from CBS in 2023 and 2025, and INSEAD in 2024.
Annual Report 2025
85
Former Bank Director
Gert Rinaldo Jonassen
Born on 17 January 1959 (male)
Joined the Board of Directors on 26 March 2025. Current
term expires in 2027.
Complies with the Committee on Corporate Governance’s
definition of independence
Member of the Audit Committee and member of the Risk
Committee
Gert Rinaldo Jonassen holds a banking degree and has addi-
tional managerial and professional qualifications, including a
business diploma and Board training. He has also been an ex-
ternal speaker on CBS’ Board training programme. Between
1976 and 2023, he worked in various roles at Arbejdernes
Landsbank, including as IT Director between 1994 and 2004. In
2004, he was appointed CEO with direct responsibility for
credit and risk management until his retirement from Ar-
bejdernes Landsbank in 2023.
Gert Rinaldo Jonassen has experience from a wide range of
Boards within the financial sector, including as Chairman of BEC
from 2008 to 2020, Vice Chairman of Vestjysk Bank from 2022
to 2025, former Board member of Finanssektorens Uddan-
nelsescenter, PBS/Nets, Multidata, DLR, Letpension, TotalKredit,
LR-Kredit, etc. In addition, he has been appointed “Expert at
the Eastern Division of the Danish High Court”.
Credit consultant
Pilunnguaq Frederikke Johansen Kristiansen
GrønlandsBANKEN A/S
Born on 24 October 1988 (female)
Joined the Board of Directors on 28 March 2023. Current
term expires in 2027.
Member of the Audit Committee and member of the Risk
Committee
Business adviser Tulliaq Angutimmarik Olsen
GrønlandsBANKEN A/S
Born on 25 February 1992 (male)
Joined the Board of Directors on 1 June 2023. Current term
expires in 2027.
Member of the Audit Committee and member of the Risk
Committee
Annual Report 2025
86
Communication and Marketing Manager
Niels Peter Fleischer Rex
GrønlandsBANKEN A/S
Born on 02 October 1981 (male)
Joined the Board of Directors on 27 March 2019. Current
term expires in 2027.
Member of the Audit Committee, member of the Risk Com-
mittee and member of the Remuneration Committee
Member of the Boards of Directors of:
• Elite Sport Greenland
CFO
Peter Angutinguaq Wistoft
Born on 8 April 1964 (male)
Joined the Board of Directors on 27 March 2019. Last re-
elected in 2024. Current term expires in 2026.
Complies with the Committee on Corporate Governance’s
definition of independence.
Member of the Audit Committee and member of the Risk
Committee
As a state-authorised public accountant with many years’ expe-
rience from the auditing sector, Peter Wistoft has considerable
accounting and auditing experience, so that the Board considers
him to be an independent member of the Audit Committee
with accounting and auditing qualifications.
Peter Wistoft is CFO of KNI A/S, and former CEO of Kalaallit
Airports Holding A/S. He is a state-authorised public account-
ant and a former partner in firm of accountants and consultants
Deloitte. Peter Wistoft also holds strategic management qualifi-
cations from INSEAD.
Peter Wistoft has served as auditor and adviser to large com-
panies within retail trade, energy supply, telecom and postal ac-
tivities, construction and housing administration, and public ad-
ministration – including the Government of Greenland.
Peter Wistoft has extensive experience within crisis manage-
ment, restructuring, mergers, demergers, prospectuses and
IPOs, etc. and has deep insight into accounting and special legis-
lation concerning Greenland. Peter Wistoft has also coached
boards of directors, primarily within corporate governance.
Managing Director Martin Birkmose Kviesgaard
GrønlandsBANKEN A/S
Born on 23 May 1966 (male)
Joined the Executive Management on 1 March 2006.
Member of the Boards of Directors of:
• BEC Financial Technologies a.m.b.a.
• Fugleværnsfonden
Annual Report 2025
87
BANK of Greenland
Imaneq 33
Postbox 1033
GL-3900 Nuuk
Greenland
Company reg. no. 39.070
CVR no. 80050410
Domicile municipality: Sermersooq
Tel. no.: +299 70 12 34
www.banken.gl
banken@banken.gl
Board of Directors
Former CEO Gunnar í Liða, Chair
Director Kristian Frederik Lennert, Vice Chair
Proprietor Maliina Bitsch Abelsen
Director Pia Werner Alexandersen
Former Bank Director Gert Rinaldo Jonassen
Communication and Marketing Manager Niels Peter Fleischer
Rex*)
Credit consultant Pilunnguaq Frederikke Johansen Kristiansen*)
Business adviser Tulliaq Angutimmarik Olsen*)
CFO Peter Angutinguaq Wistoft
*) Employee elected
Executive Management
Managing Director Martin Birkmose Kviesgaard
Audit Committee
Comprises the full Board of Directors.
Risk Committee
Comprises the full Board of Directors.
Remuneration Committee
Comprises the Chair and Vice Chair of the Board of Directors
and one member of the Board of Directors elected by the em-
ployees.
Nomination Committee
The Nomination Committee comprises the Chair and Vice
Chair of the Board of Directors.
Audit
Deloitte
Statsautoriseret Revisionspartnerselskab
Weidekampsgade 6, DK-2300 Copenhagen
Information about the BANK of
Greenland
Annual Report 2025
88
Financial Calendar for 2026
Annual Report 2025
26 February
Annual General Meeting in Nuuk
25 March
Interim report, First Quarter 2025
12 May
Interim report, First Half 2025
19 August
Interim Report, First Nine Months 2025
04 November
Notifications to the Stock Exchange in 2025
27 January
Death of a
member of Board of Directors
3 March
Annual Report 2024
4 March
Notice convening the 2024 Annual General Meeting
18 March
Flagging of Annual General Meeting powers of attorney to the Board of Directors
26 March
Minutes of Annual General Meeting
13
May
Quarterly Report, First Quarter 2025
23 May
The BANK of Greenland issues DKK 40 million in Tier 2 capital
20 August
Quarterly Report, Second Quarter 2025
21 August
Correction of Quarterly Report, Second Quarter 2025
1 September
Financial
Calendar for 2026
9 September
GrønlandsBANKEN A/S investigates the possibility of issuing Senior Non
-Preferred capital
9 September
GrønlandsBANKEN A/S issues and prematurely redeems Senior Non
-Preferred capital
5 November
Quarterly Report, Third
Quarter 2025
9 December
Expectations of the profit for 2026
Financial Calendar and Stock
Exchange Notifications