The BANK of Greenland
CVR no. 80050410
Notification to Nasdaq OMX Copenhagen
2/2025
Annual Report
2024
Annual Report
2024
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 2024 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, including Accounting Policies
Applied 47
Board and Management 82
Information about the BANK of Greenland 85
Financial Calendar and Stock Exchange Notifications 86
Contents
Annual Report
2024
Management’s Review
2
Annual Report in Headlines
Lending growth and fine results
2024 began with a relatively high level of interest rates, and a
drop in interest rates came later than expected in 2024. The
higher level of interest rates has reduced the appetite for
investment, but Greenland’s economy is nevertheless still
robust. The financial markets’ performance and Greenland’s
robustness are both reflected in the Bank’s Annual Report for
2024.
The BANK of Greenland achieved a profit before tax of DKK
245.7 million in 2024, compared with DKK 244.6 million in
2023. The result is at the level of the revised guidance from
October 2024 of a profit at the level of DKK 225-250 million,
but exceeds the expectations at the start of the year of a profit
of DKK 180-230 million.
Core operations at an improved level
The Bank’s core operations improved from DKK 218.7 million
in 2023 to DKK 236.0 million in 2024.
Lending increased by DKK 218 million to DKK 5,031 million at
the close of 2024, which is the highest level in the Bank’s
history. The increase in lending is a consequence of the Bank’s
favourable market position and competitiveness, and
Greenland’s continued sound economic performance.
In 2024, net interest income increased by DKK 35.2 million or
8% to DKK 470.3 million. The increase among other things
reflects the Bank’s high lending throughout 2024. At the same
time, the level of interest rates increased interest income from
both bonds and lending. The bond and money market interest
rates also improved the return on the Bank’s surplus liquidity,
which has expanded due to the strong increase in deposits.
The guarantee volume declined in 2024. At the end of 2024,
guarantees amounted to DKK 1,423 million, compared with
DKK 1,774 million in 2023. The decrease is primarily due to a
change in the guarantee scheme with DLR Kredit in 2024.
The higher level of interest rates pushed up deposit rates in
2024. At the same time, deposits increased by more than DKK
700 million in 2024, to DKK 7.1 billion.
Fee and commission income decreased in 2024, compared to
the previous year. Guarantee commission and payment
settlement are the key reasons for this decline, while the
securities area increased.
As expected, costs also increased in 2024. Staff expenses rose
and the total number of full-time employees increased by ten,
just as the pay increase under collective agreements also
pushed up staff expenses. Administration expenses also
increased in 2024. One reason is an increase in BEC costs,
other IT expenses and marketing costs.
Management’s Review
DKK million
0,0%
5,0%
10,0%
15,0%
20,0%
0
50
100
150
200
250
300
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Profit before tax Return on opening equity after dividend and before tax
Annual Report
2024
Management’s Review
3
Limited losses and write-downs
Write-downs and provisions were a modest DKK 18.9 million
in 2024, compared to DKK 14.2 million in 2023. Despite the
increase, the total level of write-downs is still low and reflects a
significant management reserve amounting to DKK 42.3 million,
including amounts for the derived cyclical effect. In view of the
low level of impairment write-downs, the economy and our
customers have once again demonstrated considerable
economic resilience.
Significant capital gains
The Bank’s liquidity is placed in the money market, in bonds
and, to a certain extent, in sector shares. The prevailing interest
rates resulted in slightly lower capital gains on the Bank’s bond
holdings. However, the Bank’s sector shares and the currency
area also made a positive contribution. In 2024, value adjust-
ments resulted in total income of DKK 28.6 million, compared
to income of DKK 40.1 million in 2023.
Growth in the Bank
The Bank once again achieved sound growth in 2024. Lending
increased by 4.5%, reaching the highest level in the Bank’s
history, while deposits and the pension area are also expanding.
Total assets therefore also reached a new milestone of DKK
10,023 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’
expectations 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
Greenland.
In view of the ongoing phasing-in of the Bank’s MREL capital
requirement, in 2024 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,
dividend of DKK 100 per share, compared to DKK 55 for the
previous year, is proposed. The dividend is equivalent to 86%
of the profit for the year, after which the Bank has a solvency
ratio of 26.9, compared to 26.0 in 2023. The solvency
requirement is unchanged at 11.1%.
The Bank’s core capital accounts for 25.1% and despite the
significant dividend rate this exceeds the Bank’s long-term target
of 24%. The Bank assesses that the forthcoming implemen-
tation of CRR3 will bring an increase in the Bank's risk-weighted
assets and thereby reduce the capital ratio, which is the
background to the higher capital ratio.
Outlook for 2025
Short-term yields are expected to fall in 2025 as inflation
comes under control in Europe. It is expected that this in turn
will reduce costs and increase the Bank’s customers’ investment
appetite. The lower interest rates will have a significant negative
effect on core earnings, however.
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 2025 are assessed to be addressed by the
current level of impairment write-downs.
In both the short and longer term, the considerable focus on
Greenland, which escalated at the beginning of 2025, can affect
the economic development and the framework conditions in
Greenland. However, the BANK of Greenland has no basis to
assess that this will be of any material significance in the short
term in 2025, so that it is the circumstances described in this
report – the macroeconomic and local conditions – that are
generally expected to influence the Bank’s operations.
The Bank expects a profit before tax of DKK 150-185 million
for 2025. There is thus no change in the expected profit for
the year, which is in line with the notification in the stock
exchange announcement of 11 December 2024.
Nuuk, 3 March 2025
Martin Birkmose Kviesgaard, Managing Director
Annual Report
2024
Management’s Review
4
Annual Report
2024
Management’s Review
5
Greenland’s Society and Economy
Greenland’s economy has remained relatively strong in the face
of several years marked by global uncertainty, international
tensions and economic crises. Compared with recent years’
international economic downturn – including high inflation,
rising interest rates and declining purchasing power –
Greenland's economy has been remarkably robust, despite
some negative impacts. Structural challenges give rise to some
uncertainty of development in the coming years, when both
international and local conditions will play a decisive role.
One key reason for Greenland's economic growth is the major
capital investments, which are expected to have peaked in
2024. These building and construction activities are very
important for overall economic activity, since they primarily rely
on production in Greenland and only require imports on a
smaller scale. It is important to note, however, that the
manpower required for these projects is predominantly
brought in from abroad for these particular assignments. The
enormous investments in modernisation of Greenland's
infrastructure, including new airports, incineration plants and
energy supply facilities, therefore have a great impact on
economic growth. It is nonetheless vital that this economic
activity is accompanied by a strong focus on ensuring a good
balance with other economic conditions. Fiscal policy that can
be described as expansionary, among other things due to these
major investments, can impose increasing pressure on the
labour market, higher pay levels and thereby diminished
competitiveness. When economic growth is financed by greater
indebtedness, this exacerbates vulnerability to unexpected
economic setbacks.
Even though the macroeconomic indicators have been generally
positive and Greenland’s activity level is generally high, significant
challenges lie ahead. These challenges pose a threat to long-
term economic stability. The population is ageing and there are
ever-increasing expectations of public benefits. There is close to
full employment – particularly among groups with professional
skills – which emphasises the lack of trained manpower in
several areas where demand is high. Ensuring structural
economic sustainability requires ongoing reforms and targeted
initiatives, including strengthening the level of educational
attainment, matched more closely to society’s needs.
With Sustainability and Growth Plan II as a structural economic
guiding principle, Greenland's Finance Act is aimed to set the
course for long-term economic sustainability, reduce business
vulnerability and pave the way for sustainable and socially
equitable growth. One means to achieve this is by raising levels
of education and professional skills, as well as economic
diversification and reform of the tax, duty and pension systems.
The annual report reviews these topics under four overall
themes. The first theme concerns the general course of the
economy, while the second theme focuses on the dynamics
and growth potentials of the business community. The third
theme is an in-depth review of the structural challenges
currently faced by Greenland. The fourth and final theme
focuses on how it is important for Greenland to be open
towards external investments and capital, as they will be vital
for the country’s continued development.
The escalated international focus on Greenland, culminating at
the start of 2025, affects the media, population, politicians and
everyday life in Greenland. In view of the rhetoric from the
parties involved, the potential political and economic impacts
are very extensive and uncertain. For the time being, however,
no circumstances have any real impact on Greenland's
economy, households and businesses on a scale that makes it
possible to assess any real economic effect, or impact on
particular segments of society. This analysis of the economic
conditions therefore does not take account of these potential
outcomes, since at the time of writing this would be based on
excessive speculation and theoretical considerations.
Overall economic development
Economic growth
Despite global challenges and crises, Greenland's economy has
shown its strength in the past years. As Figure 1 shows,
according to provisional data, GDP grew by 1.8% in 2023.
More subdued economic growth is expected in 2024, however,
with a forecast 0.9% increase, and 1.1% in 2025.
Economic activity in Greenland is primarily driven by major
capital investments, in particular the three new airports in
Nuuk, Ilulissat and Qaqortoq. Nuuk’s international airport
opened in November 2024, and has accounted for a substantial
share of capital investments in recent years. The airports in
Ilulissat and Qaqortoq will be completed in the following years
– after which there are plans to commence the expansion of
the Buksefjord hydroelectric power plant. Even though the
building and construction activities have peaked so far, the
general perception in the locally based element of the
construction industry is that order books are thinning out. If the
sector undergoes a critical decline in activity, one possible
strategy might be to intensify the renovation of the existing
building stock. Reducing the maintenance backlog for rental
homes, ports and energy installations would not only support
local activity in the sector, but also reduce the implicit debt.
However, this should be planned with due consideration of the
risk of overheating the economy, and its significance to the
overall indebtedness.
Annual Report
2024
Management’s Review
6
It is also crucial that public capital investment projects are
assessed on the basis that each of them should strengthen the
economy. Even though there may be other political grounds for
completing a construction project than those related to the
economy, Greenland's economic resilience is weakened
whenever an economically weak project is adopted, or a good
project is curtailed. This is most clearly apparent when
decisions are taken without economic calculations, or when an
economically sound project is linked with a poorer project in
order to gain political endorsement.
Unemployment is still extremely low and almost non-existent
for those with vocational or higher academic qualifications,
while overall employment has reached a record-high level. Due
to this development, which to a high degree is driven by foreign
manpower, the workforce is fully utilised, and further economic
growth cannot be driven solely by reducing unemployment. To
generate new growth, it will therefore be necessary to increase
productivity through investment in innovation and rationalisa-
tion measures, while also upgrading the competence level of
the existing workforce. Strategic efforts are also needed to
renew and expand the business structure, so that more sectors
can contribute to the economy.
Figure 1
Economic development
Real GDP growth
Note: 2018-2019 are final figures, while 2020-2021 are provisional figures. 2022-2025*
are preliminary forecasts. The figure shows real GDP growth, compiled in 2010 prices.
Sources: Statistics Greenland and Greenland's Economic Council.
As a small, open economy, Greenland's future economic
development will also depend on the international cyclical
development. In global terms, the IMF and OECD assess that
growth in Europe will increase from 2024 to 2025. Short-term
yields are expected to fall as inflation approaches the ECB’s
target level.
1
Finance Bill for 2025
2
See OECD-FAO Agricultural Outlook 2024-2033, July 2024.
These international trends may to some extent contribute
positively to Greenland's economic performance. Lower
interest rates and a more subdued increase in import prices
can reduce costs for both households and businesses. It should
be noted that inflation in Greenland has been lower than in
many other countries, which can strengthen Greenland’s
competitiveness and present advantages in the export markets.
1
Another key driver of economic growth is fisheries exports, as
fish and fish products account for 98% of Greenland's total
goods exports. According to the annual report on food
production and prices from the FAO and OECD, prices for fish
products are expected to decrease in both nominal and real
terms towards 2025-2027, before they are expected to slowly
rise again.
2
This price drop is due among other things to
increased competition from alternative protein sources, in
particular poultry. The FAO and OECD predict that real fish
prices will fall by 15% up to 2033. Calculations from
Greenland’s Economic Council show that a 25% decline for fish
and shellfish will reduce public finances by more than DKK 369
million, due to lower income from resource taxes, A-tax and
corporate taxes. There is no doubt, however, that the strong
reliance on fisheries exports makes Greenland's economy
particularly vulnerable to fluctuations in prices for fish products.
This emphasises the need to reduce the risk exposure through
greater economic diversification, with full utilisation of potential
within, for example, tourism, mining and sustainable new
business areas. A broader economic footing would create a
stable foundation for future growth.
In September 2024, Greenland’s Economic Council assessed
that GDP growth in 2025 would be 1.1%. Since then, the
BANK of Greenland has assessed that expectations of fisheries’
economic contribution in 2025 can be adjusted downwards
due to new executive orders subject to consultation, as well as
lower quotas. Since a number of construction activities are
approaching completion, GDP growth closer to zero is
possible.
In the longer term, Greenland's economy still faces several
unresolved structural challenges. In previous reports,
Greenland's Economic Council has pointed out that fiscal policy
is not sustainable, as expenditure is expected to significantly
outpace revenue.
3
This imbalance is aggravated by Greenland's
ageing population, a workforce close to being fully utilised, and
persistent challenges in the area of children and young people.
This makes extensive reforms necessary, to ensure structural
sustainability.
3
See Greenland's Economic Council’s autumn 2023 report.
0,6%
2,8%
0,2%
1,3%
2,1%
1,8%
0,9%
1,1%
2018 2019 2020 2021 2022* 2023* 2024* 2025*
Annual Report
2024
Management’s Review
7
Debt accumulation
At the end of 2023, the Greenland Government, the
municipalities and the publicly-owned enterprises had net debt
of just over DKK 1 billion, while the total gross debt of the
Greenland Government, municipalities and publicly-owned
enterprises was almost DKK 8 billion, equivalent to around 35%
of GDP. The debt is primarily concentrated in the government-
owned companies, with the gross debt totalling close to DKK 7
billion. For the last many years, Naalakkersuisut (the Govern-
ment of Greenland) has pursued a prudent debt policy. As a
consequence, Greenland’s government debt has for some time
accounted for a relatively low share of GDP. Figure 2 compares
Greenland’s debt level with international levels, where the EU’s
gross average debt in 2023 was 80.8%. Naalakkersuisut expects
the overall debt level to increase in coming years as a conse-
quence of planned borrowing for the expansion and
establishment of hydroelectric power stations.
4
Under the
2025 Finance Bill, the total debt will increase to DKK 9.2 billion
in 2026 and DKK 9.9 billion in 2027, equivalent to gross debt of
37% and 39% of GDP in the respective years. This naturally
diminishes the fiscal policy scope and makes the economy more
vulnerable to unexpected economic downturns. There is also a
considerable maintenance backlog for ports, energy facilities
and rental homes, which should be viewed as implicit debt. It is
important to take this implicit debt into consideration, as its
handling would either require increased indebtedness or entail
higher prices for consumers. Price increases can lead to
inflation and conceal the actual cost of indebtedness, leaving the
impression of an artificially low overall economic impact.
Debt levels are currently still relatively low from a European
perspective, which is positive as it contributes to a flexible
economy. Investments can also help to tackle structural
challenges, among other things by diversifying the economy. It is
important, however, that the favourable debt situation is not
4
Finance Bill for 2025.
undermined by less profitable investments, merely because
current indebtedness appears reasonable. The debt is
approaching the highest level in 30 years and the balance
between investments and indebtedness will be particularly
important in the next few years, when the focus must be on
identifying projects that contribute to resolving the structural
challenges, at the lowest possible economic cost to Greenland.
Figure 2
Development in gross public interest-bearing debt in
Greenland, Denmark and the EU in 2022
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
Greenland II include the Greenland Government, municipalities and government-
owned limited liability companies. EU and Denmark
cover the gross debt. *Indicates
projected values for Greenland I and II.
Sources: Finance Bill 2019, 2020, 2022, 2023, 2024 and 2025, Statistics Greenland and
Eurostat.
The total proceeds from direct and indirect taxes in 2023
significantly exceeded the expectations in the 2024 Finance Bill.
Public expenditure was slightly lower than expected, resulting in
a budget improvement exceeding DKK 400 million in the
Greenland Government’s OI balance (see Table 1). According
0%
20%
40%
60%
80%
100%
2015
2016
2017
2018
2019
2020
2021
2022*
2023*
2024*
2025*
2026*
2027*
Greenland I Greenland II EU Denmark
le 1
2020
2021
2022
2023 2024
2025
2026
2027 2028
2020-
2023
2025-
2028
Budgeted
OI balance, Finance Bill,
2025
+103.3
+18.,7
+126.7
+187.1 +598.8
Budgeted
OI balance, Finance Act
+49.6 -76.2
+7.6
+6.1 +284.4 -130.1
+57.2
+31.3
+143.6
+102.0
Actual
OI result
-134.8 -150.0
+113.2
+424.0
+253.0
Difference
-184.4 -73.8
+105.4
+417.9
All prices are stated in DKK million. A minus indicates a deficit. 2019-2023 are realised figures, while 2024-2025 have been adopted for the year. 2026-2028 are budget estimates.
the Finance Bill for 2025.
Annual Report
2024
Management’s Review
8
to the 2025 Finance Bill, increases in taxes and duties are
expected to exceed the general economic growth rate, and the
Treasury's OI balance is expected to be positive as from 2025
and up to 2028. The balance expectations were subject to
significant downward adjustment from the Finance Act for
2024, however, with the surplus only reaching 30-50% of the
previous forecasts. This downward adjustment is due to such
factors as higher expectations of operational expenses,
particularly in the healthcare area, which have increased
significantly, as well as rising administration expenses. Even
though the proceeds from taxes, duties and transfers also
increased, this income only partly matches the increase in total
expenses, which overall results in a lower expected balance.
This was reduced considerably in the 2025 Finance Act, and a
deficit in 2025 is now budgeted for, followed by three years
with surpluses, which overall will give a four-year surplus of
DKK 102 million. This is mainly due to the adoption of the Tax
Reform, Let’s all make Greenland a better place, which increases
the employment deduction and raises the municipal block grant.
The reform is only partly financed and thereby weakens
government finances and reduces economic sustainability. In
overall terms, and in the immediate short term, Greenland's
government finances are currently in a sound position. It is
important to point out, however, that the planned increase in
indebtedness does not include the implicit debt in the form of
the significant maintenance deficit for government-owned
buildings and infrastructure.
If indebtedness increases up to 2027, the scope for manoeuvre
will be reduced, and economic vulnerability will increase. The
Budget Act therefore also requires that any debt expansion is
kept under control. The Act ensures that borrowing is
exclusively used for economically viable investments, while
maintaining balanced government finances. The Budget Act
determines that the Greenland Government's OI balance must
as a minimum be in balance, and that the overall appropriations
for operations, grants and investments may not exceed real
growth of 1% over one year, and 2% over four years. In
practice, the Act serves as a ceiling to regulate growth in the
public sector. The Finance Act for 2025 showed compliance
with the balance requirements.
5
The budget only just fulfilled
the Budget Act’s requirements, however, as the difference
between the maximum and the planned expenditure for the
2025-2028 period only amounted to DKK 6.5 million, after
inclusion of the recommended reserve for coming Finance
Acts. Any such full utilisation of the Budget Act's four-year
framework would significantly reduce opportunities to manage
any future fluctuations, which could make Greenland's
economy more vulnerable to cyclical fluctuations.
5
Finance Act 2025, p. 137.
Greenland's current cyclical position, characterised by low
unemployment, a high level of activity and a labour market
under pressure, does not favour a policy with full utilisation of
the framework. In these circumstances, excessive easing of fiscal
policy could exacerbate the pressure on the economy and
increase the imbalance. Instead, the fiscal policy instruments
should be used to stabilise the economy by dampening cyclical
fluctuations.
Greenland's economy also faces an unresolved structural
sustainability problem that requires long-term solutions to
ensure the economy's sustainability. The development plan
should be to widen the margin to the expenditure limit, so that
the economic scope can be more closely targeted at new
economically profitable investments that can help resolve the
structural challenges and/or reduce the negative consequences
of economic downturns, to make Greenland's economy more
sustainable going forward.
Price trends
After a period in which higher interest rates were used as an
instrument to manage the significant inflation rate, the level of
interest rates has begun to fall. Danmarks Nationalbank
followed the ECB’s lowering of interest rates and cut its rate by
a total of 1% point from June to December. Inflation is
expected to decrease further, which gives reasonable grounds
to expect a further significant drop in interest rates in 2025.
As Figure 3 shows, so far Greenland has been relatively
protected from the significant price increases experienced by
many other countries during the global inflation crisis. This is
particularly due to KNI’s hedging of fixed prices for oil and
diesel products, as well as the fact that Greenland could use its
hydroelectric power supplies. The agreement on a fixed oil
price expired at the end of 2023, however, which brought the
price development in 2024 into question.
Annual Report
2024
Management’s Review
9
Figure 3
Development in inflation
Index (2017=100)
Not e: Development in the consumer price index from 2015 to 2023, with 2015 as index
100. The figure is calculated at six-monthly intervals. Q3 is the third quarter.
Sources: Statistics Greenland, Statistics Denmark and Statistics Faroe Island
KNI raised oil and diesel prices at the beginning of 2024, but
the increase was lower than expected compared to world
market performance, and in an international perspective fuel
prices are still low. In July 2024, prices were 2.9% higher than
the same month in 2023, with rising fuel prices and increasing
housing expenses as the most significant inflationary factors.
Inflation in the past year was therefore below expectations, but
there is still some uncertainty due to the international energy
markets and Greenland's dependence on imported goods.
Fossil fuel prices in Greenland have thereby not adjusted to a
new natural level, and price rises must also be expected in
2025.
In addition, Nukissiorfiit (the Greenland Energy Company)
announced electricity and water tariff increases at 3.5% in both
2024 and 2025, and Naalakkersuisut's renovation of public
housing may also lead to price increases.
6
Furthermore, last
year Naalakkersuisut approved Royal Arctic Line’s freight rate
hike at 12% over a three-year period, while as from 2025 an
ongoing rate increase of 2.5% per year is introduced.
Moreover, the current manpower shortage in Greenland and
the countries from which manpower is recruited can be
expected to generate wage pressure, together with inflation. In
combination, these factors will help to push up inflation in the
coming years. This makes it important to continuously monitor
the development in prices, so as not to conduct fiscal policy
that generates more inflation.
Housing market
After several years with very few days on market and rising
sales prices and prices per square metre, figures for 2023 and
the first nine months of 2024 show a downturn in Nuuk's
6
Greenland's Economic Council's autumn 2024 report.
housing market. In 2022, the average number of days on
market was 75 days. This more than doubled in 2023, when
days on market increased to 181 days, and this trend prevailed
in 2024, when the average days on market in Q3 increased to
240 days, see Figure 4. For homes that are not newly-built
properties, days on market are considerably shorter (140 days),
but in this case too, the pattern is for significantly more days on
market than in previous years.
Figure 4
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 are calculated on the basis of the
da t e of sale/delisting.
Sources: The BANK of Greenland and Finance Denmark
At the same time, the average price per square metre fell by
6% from DKK 31,688 in 2023 to DKK 29,878 in 2024, see
Figure 5. Nonetheless, housing prices in nominal terms in 2024
are still at the 2021 level. This development does not reflect
trends in Denmark, which saw price increases in 2024 (current
prices). The rising level of interest rates is therefore not
necessarily the only explanation for this slowdown in the
housing market.
It should also be taken into account that in 2023 and 2024, a
large number of newly-built properties were completed for
sale, which increased the supply of new residential units. Since
there is no significant difference in the number of homes newly
occupied by a buyer, this shows that the increasing number of
days on market is primarily influenced by higher supply (newly-
built properties) and to a lesser extent by demand.
Moreover, many vendors have redeemed public loans at a
discounted rate or converted mortgage loans in recent years,
which could explain how part of the price drop does not affect
vendors. The financing structure of fixed interest rates and
repayment of mortgage debt also demonstrates its strength,
90
100
110
120
130
2017,
Q3
2018,
Q3
2019,
Q3
2020,
Q3
2021,
Q3
2022,
Q3
2023,
Q3
2024,
Q3
Greenland Denmark Faroe Islands
0
50
100
150
200
250
300
2019 2020 2021 2022 2023 2024
Nuuk Nuuk, ex. project sale Denmark
Annual Report
2024
Management’s Review
10
supporting homeowners’ resilience, and is also evident from a
very low impairment write-down requirement for the Bank's
exposure to homeowners.
The BANK of Greenland can note slightly lower house sale
activity in a period of 2023 and 2024, but in view of the higher
supply and high interest rates this must be seen as a normal
market reaction. On the other hand, the BANK of Greenland
assesses that the addition of newly-built properties to the
market will more or less come to a standstill during 2025,
which should stabilise the ratio between supply and demand.
The existing lower interest rate will also support activity in the
housing market.
Figure 5
Development in housing prices
Housing prices in Nuuk, Denmark, Copenhagen and Thorshavn,
index (2016=100)
Not e: 2017=100. Price trends in Nuuk (Greenland), Denmark and Copenhagen are
compiled in DKK per square metre for detached and terrace houses, as well as
owneroccupied flats, while for Thorshavn (the Faroe Islands) and Nuuk (Greenland)
the prices 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 2023, due to missing data. Data for
Nuuk in 2024 only includes the first three quarters.
Sources: Finance Denmark, BANK of Greenland and Statistics Faroe Islands.
Business conditions
Greenland's business activities are strongly affected by a narrow
sector structure, with fisheries playing a dominant role, as a vital
source of both employment and export income. Since 98% of
Greenland’s total goods exports comprise fish and fish
products, the country’s economy relies strongly on stable catch
and price conditions. This dependence on fisheries exposes the
economy to adverse fluctuations, which emphasises the need
for a broader business structure. Initiatives focused on tourism,
mining and other sustainable new business areas may be key
activities to reduce vulnerability and create a more robust
economic foundation.
Fisheries
Fisheries continue to be a central element of Greenland’s
economy, but as a sector that faces biological, market-related
and structural challenges. The adoption of Greenland’s new
Fisheries Act in May 2024 is a step towards more sustainable
management of the fisheries resources. The Act entered into
force at the beginning of 2025, as the result of a long and
complex process which showed that various stakeholders –
from small fishing boats to major shipping companies – had
diverging needs and faced different challenges. The purpose of
the Act is to improve the framework for increasing the value of
catches, modernising equipment, and retaining workplaces,
particularly in the small communities that rely on fisheries for
their livelihoods. The Act is also intended to make some
elements of fisheries more effective and to maintain fish stocks
at a level where they can give a maximum, long-term and
sustainable yield.
The Fisheries Act thus addresses some of the sector’s
challenges and seeks to create better framework conditions,
among other things by granting individual transferable quotas
(ITQ) to small fishing boat owners, to give these fishermen
greater flexibility. Some small-scale fishermen will use the
opportunity to sell their quotas for a one-off sum. This will
make it possible to boost investments in these fisheries and
make them profitable, while the uncertainty among other things
relates to whether this could undermine the settlements’
economic viability, leading to centralisation and causing
settlements to disappear.
However, the Act has given rise to concern in some areas of
the sector. The criticism includes the risk of the quotas being
spread across too many small operators, which can exert
further pressure on profitability and make fisheries less
economically sustainable.
The BANK of Greenland assesses that the adoption of this Act
represents several important positive steps forward in terms of
safeguarding long-term economically sustainable coastal
Greenland halibut fishing. On the other hand, limitations of
ownership under the Fisheries Act address other political
priorities and not the long-term maximisation of fisheries’
yields. Moreover, some elements of the legislative amendments
represent intervention in some aspects of fisheries, which can
lead to uncertainty concerning future investments in this
industry, since the framework can change significantly and
beyond the fisheries commission’s proposals. There is no
doubt, however, that there are considerable positive aspects to
the introduction of ITQ in coastal Greenland halibut fishing. It
can assure older fishermen approaching retirement of
economic security, and secure development opportunities for
others, while ensuring more effective fishing. However, the
80
100
120
140
160
2017 2018 2019 2020 2021 2022 2023 Q3
2024
Nuuk, square metre price
Denmark, square metre price
Copenhagen, square metre price
Tórshavn, sales price
Annual Report
2024
Management’s Review
11
decisive aspect will be how the Act is implemented in executive
orders.
The biological framework sets a natural limit to growth in the
sector. The quotas for the most important species are already
on the way down, particularly for prawn, while Greenland
halibut is also under pressure. Despite these warnings, the
biological recommendations are sometimes not always
followed. In the longer term this strategy is not sustainable,
however, as excessive fishing depletes stocks and reduces
future catch opportunities. It is therefore still vital to adhere to
the biological recommendations and the Fisheries Act is a step
towards ensuring this.
The fishing industry has experienced considerable volatility in
the international markets in recent years. Competition from
countries such as Norway has also intensified, which exerts
pressure on prices.
Figure 6
Annual value of exports of fish and shellfish
DKK million
Prawn
Greenland
halibut
Cod
Mackerel
Capelin
Other
fish
species
Not e: 2024* are estimates, where mackerel, capelin and other fish species are projected
on the basis of the first three quarters' of 2024, due to data availability. The
projections are calculated on the basis of seasonal trends from the previous years’
catches at fish type level. 2024** are projections, where prices are on average
assumed to be identical to 2023, while volumes are assumed to change equivalently
to quota changes. The prices are not adjusted in relation to the consumer price
index and are therefore nominal/current prices
Sources: Statistics Greenland, Naalakkersuisut (the Government of Greenland) and own
estimates.
Looking back on the last few years, the export value of fish and
shellfish has been rising, and in 2023 the export value was DKK
28 million higher than in 2022, equivalent to an increase of
0.5% from an already high level, see Figure 6. After several
strong years, fisheries now show signs of a slowdown,
however, and in 2024 the export value is predicted to drop by
7
See OECD-FAO Agricultural Outlook 2024-2033, July 2024.
around 13% to DKK 5.1 billion. The decline can be attributed
to such factors as falling kilo prices for fish and shellfish in Q1
2024, which were 3-4% lower than in the same period of the
previous year. There was no equivalent decrease in Q2. Fish
product prices are generally expected to decline, however, in
both nominal and real terms, up to 2025-2027, before they are
expected to slowly increase again.
7
There is also the challenge of limited port capacity, which at
worst can lead to the loss of valuable working days, with
economic consequences for the sector.
Even though quota flexibility gives opportunities to transfer
unused quotas to 2025, and thereby temporary relief from
some of the economic consequences, this is only a short-term
solution. This can lead to lower catch volumes, affecting
fishermen's income, business income and the Treasury’s tax
revenue. For many areas for which fisheries is the economic
foundation, declining activity can have significant consequences
and increase relocation and centralisation. The situation also
emphasises the need for tighter management and a more
sustainable balance, to ensure fisheries’ long-term development.
Tourism and aviation
Tourism is one of the fastest-growing global industries. The
sector is expected to expand in importance in the coming
years, and forecasts show that in ten years’ time tourism and
travel will account for 11.4% of total global GDP.
8
For
Greenland, this development represents an obvious
opportunity to create economic growth and local development.
At the end of 2024, Greenland’s tourism sector stood on the
threshold of an exciting new period, where the opening of the
new international airport in Nuuk and a number of
forthcoming direct summer routes brings the promise of
considerable growth potential for the sector.
In recent years there has been a clear increase in Greenland's
tourism. In September 2024, the accumulated number of
foreign overnight stays was around 5% higher than in the same
period of 2023 (see Figure 7), while provisional figures indicate
growth exceeding 20% in the number of foreign airline
passengers from 2023 to 2024 (see Figure 8). This
development emphasises that foreign tourism already plays a
greater role in Greenland's economy. On the other hand, the
statistics show that both hotel overnight stays and international
aviation involving residents of Greenland declined in 2024. This
indicates that a growing share of the tourism economy
originates from foreign tourists.
8
Statista, https://www.statista.com/statistics/1099933/travel-and-tourism-share-of-gdp/,
4.783
5.840
5.868
5.101
4.679
2021 2022 2023 2024* 2025**
Annual Report
2024
Management’s Review
12
Figure 7
Increase in foreign-visitor overnight hotel stays
Number of foreign-visitor overnight hotel stays, acc. annually
Not e: The figure shows the number of foreign-vis itor overni ght hot el s ta ys for 2 02 0 to
2024. Foreign refers to all countries that are not Greenland, i.e. including Denmark.
The number of overnight hotel stays is accumulated for each year. This means that
the last month represents the total annual number. For 2024, the first nine months
are included due to data availability..
Source: Statistics Greenland
Naalakkersuisut's ambition is for tourism to account for 40% of
the value of Greenland’s exports in 2035, with a doubling of
the number of tourists. To achieve this goal, it is vital to
develop the tourism sector in step with the increasing demand.
Figure 8
Development in the number of airline passengers
Number of airline passengers, accumulated annually
Not e: The figure shows the number of foreign depa rting airl ine passengers for 2020 to
2024. Foreign refers to all countries that are not Greenland. The number of
departing airline passengers is accumulated for each year. This means that the last
month represents the total annual number. For 2024, the first ten months are
included due to data availability.
Source:
Statistics Greenland
With the opening of the new international airport in Nuuk in
November 2024, the inflow of tourists is not expected to
materialise until the new routes start up in high season in the
summer of 2025, and subsequent years. Capacity analyses from
Visit Greenland
9
show, however, that it is already challenging to
meet the need for overnight stays, restaurants and attractions.
With average annual growth of 5%, the analysis shows that
Nuuk will face a severe lack of hotel capacity in 2027, unless
9
https://traveltrade.visitgreenland.com/da/seneste-nyt/visit-greenland-udgiver-
kapacitetsanalyse-for-nuuk/
there is investment in new hotels and expansion of existing
facilities. Restaurants in Nuuk are already under a lot of
pressure, and the sector is struggling to obtain sufficient
manpower and suitable premises. The challenge is even more
acute in Ilulissat, and the capacity analysis shows that, with the
expected increase in demand, there will already be a severe
shortage of hotel rooms as from 2026, particularly during high
season in July and August.
To ensure sustainable, long-term growth, it is not sufficient to
focus solely on quantitative growth. It is vital that tourism is
developed with due consideration of sustainability in the
environmental, social and cultural areas. The growth in tourism
must be balanced, so as to strengthen the economy, and
contribute to local value creation and employment, without this
being at the expense of Greenland's unique nature and culture.
This does not mean, however, that external investment must
be ruled out – quite the contrary, in fact. The much-needed
growth requires injection of capital, experience and know-how
from foreign parties that can cooperate closely with local
businesses to ensure responsible, profitable development.
Greenland thus has opportunities to balance strong growth in
tourism with sustainability, utilising tourism’s full potential for
the benefit of the local community, local and foreign investors,
and Greenland’s overall economy.
To support this development and ensure responsible growth, in
November Naalakkersuisut adopted a new Tourism Act that
entered into force as from 1 January 2025. The purpose of the
Act is to establish a more sustainable and regulated tourism
sector, with focus on safety, quality and a local anchoring. The
key initiatives include a requirement for a licence to operate
tourism activities, where at least two thirds Greenlandic
ownership is required for a licence to be issued. The Act has
received a mixed reception from the sector. On the one hand,
it is assessed to be positive that local parties are ensured better
conditions and visibility, but there are also concerns that strict
requirements can deter foreign investors from engaging in a
sector for which external capital and know-how are vital to
realising tourism’s full potential.
Besides the new Tourism Act, discussions continue concerning
possible new taxes, including overnight stay taxes, that will also
impact the sector. While these taxes could potentially boost
the municipalities’ finances and opportunities to maintain the
tourism infrastructure, it is vital that they are introduced on a
predictable basis, and with sufficient notice, Unforeseen
changes, such as a passenger tax on cruise liner calls, have
0
50.000
100.000
150.000
200.000
2020 2021 2022 2023 2024
0
20.000
40.000
60.000
80.000
100.000
2020 2021 2022 2023 2024
Annual Report
2024
Management’s Review
13
previously presented challenges for operators who did not
have sufficient time to adjust their pricing accordingly.
Greenland’s new Tourism Act and the proposed taxes can be
an important step towards a more structured and sustainable
tourism sector, but a fine balance needs to be maintained, so
that they do not inadvertently impede growth and investment
in the sector. The BANK of Greenland has expressed
scepticism about the adopted restriction of dominion and
advocated for the necessity of foreign investments and
partnerships between local and foreign operators. It will
therefore also be particularly important to monitor whether
restrictions to foreign ownership impede investments and
development to such an extent that this cannot be set off by
the upswing in local investment. This would present the risk
that the basis for tourism investments in infrastructure, hotel
capacity, etc. is not financially viable.
Mineral resources and the mining industry
The strategic global importance of Greenland’s geology has
been recognised for many years, and in recent years both the
EU and the USA have stepped up their interest in Greenland,
particularly with regard to critical mineral resources. At the
beginning of 2024, Naalakkersuisut and the EU entered into a
strategic partnership on the development of mineral resources
in Greenland. This partnership reflects the EU’s need for access
to rare-earth elements and other critical raw materials, and the
wish to reduce dependence on China, which today supplies
most of the EU’s consumption of rare-earth elements. This
gives Greenland a unique opportunity to play a key role in the
global supply chain. For Greenland, this situation provides
opportunities for economic growth and development, but
realising this potential will require a targeted effort to
strengthen and develop Greenland’s mineral resources sector.
Despite the increasing international interest in Greenland’s
mineral resources, activity in the sector is still limited. At the
end of 2024, there was only one active mineral project, Lumina
Sustainable Materials’ anorthosite mine, while there are
expectations that the gold mine north of Nanortalik will reopen
during 2025.
Greenland thus still faces the challenge of turning the mineral
resources sector into a reliable economic factor. This will
inevitably require significant foreign investment. Insufficient data
is emphasised as one of the greatest barriers to this
development. This particularly concerns geological data from
mineral resources exploration, so as to document the
occurrence of critical minerals and give a better overview of
their quality and prevalence.
Another key barrier is the absence of a proof of concept to
demonstrate that mining projects in Greenland can be
profitable. A successful major project would attract further
investment and boost confidence in the sector.
There is also political focus on ensuring that Greenland derives
the greatest possible benefit from its mineral resources.
Initiatives such as Greenland’s Small Scale Exploration and
Utilisation Act and the requirement for local management are
political tools to ensure value creation for the local population
and to support the mineral resources sector’s development
based on a proper understanding of the local context.
However, the uncertainty concerning political changes, such as
the introduction of Greenland’s Uranium Act to ban uranium
mining in Greenland, has previously provoked investor concern
and may continue to affect Greenland’s status as a sound
investment object.
The mineral resources and mining sector is characterised by
long-term investment and a high capital commitment. For
Greenland this entails creating an attractive and stable
investment environment in which political receptiveness and a
clear framework walk hand in hand with a society that
acknowledges the legitimacy of economic returns. If the sector
is to achieve its potential as a central driver of Greenland’s
economy, contributing to the global green transition, it is vital
to build trust between all parties concerned. Greenland must
be able to offer a combination of stable framework conditions,
effective administration and a clear political strategy that signals
predictability, competitiveness and ambition. Predictability in
administrative practice is vital, but difficult to legislate on. The
BANK of Greenland cannot assess whether a strategic
partnership with the EU can address this issue, and strengthen
the administrative structure, but it must be made easier to
attract new investment and there is an obvious need for several
new initiatives, based on a broad political mandate.
Other business opportunities and potential
Besides the established sectors such as fisheries and tourism,
Greenland has considerable potential for developing sustainable
new business areas. The coming hydroelectric power stations
are expected to generate energy volumes far exceeding
Greenland’s demand, which opens up opportunities for
innovation in energy-intensive industries such as Power-to-X
technologies or data centres.
Other exciting perspectives include Greenlandic mud (glacial
rock flour) for use as a fertiliser and to bind CO₂, and storage
of liquid CO₂ (Carbon Capture and Storage) in Greenland's
basalt underground, which is assessed to be suitable for this at
several locations.
Over time, these new sectors may perhaps contribute to local
business development and creation of new workplaces in
Greenland, while strengthening Greenland’s role in the global
Annual Report
2024
Management’s Review
14
green transition. These are all very long-term areas, however,
presenting significant technical and commercial risks, so that
mainly foreign capital holders with commercial insight will have
to take on the risk together with opportunities to generate
returns.
Greenland’s role in a geopolitical context may also lead to real
investment with business development potential. The EU
partnership, and several bilateral and geopolitical interests in
Greenland, may pave the way for investments not only in green
energy and mineral resources, but also with potential for
infrastructure, education, etc. for the benefit of Greenland’s
long-term economic development.
Structural challenges
Greenland faces several structural challenges that may become
more prominent in the coming years, unless they are given
priority now. A lack of manpower, a low competence level, an
ageing population and significant inequality exert pressure on
both the economy and social cohesion.
Labour market
Greenland’s labour market reflects the economic upswing in
recent years. In March 2024, measured on the basis of the last
12 months’ average, the number of jobseekers was the lowest
in over ten years, with only around 1,000 registered jobseekers
in September 2024, see Figure 9.
10
This means that the labour
force is close to full utilisation.
Full employment is positive for public finances, as higher income
tax revenue combined with lower expenditure on public
benefits can boost budgets. A demand for manpower that
exceeds supply when unemployment is low and economic
growth is an objective can present a challenge, however. The
structural labour market challenge has persisted for several
years, although this has been partly offset by a steady increase
in the number of foreign nationals working in Greenland.
During the past three years, more than 1,000 people of
employable age have moved to Greenland, which has increased
the labour force by around 3.5%.
11
In recent years the nature
of immigration to Greenland has changed. More and more new
immigrants are Asians and unskilled workers.
10
It should be noted, however, that in the months from April to September 2024, there
were around 15% more jobseekers than for the same months in 2023. This increase
should be viewed in the light of such factors as the new jobseekers’ allowance from
2024, which has increased the financial incentive to register as looking for work.
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
Greenland’s workforce is just under 80% of the population, see
Figure 11. Even though this ratio is marginally higher than in
Denmark, it could potentially be higher in Greenland, in view of
the shorter life expectancy and lower number of pensioners.
For comparison, the ratio for the Faroe Islands exceeds 90%. If
Greenland could increase its workforce to the Faroese level,
this would add just over 4,400 people to the labour force.
While Greenland’s unemployment rate stood at around 2.7%
in 2023 and is expected to be close to unchanged in 2024,
unemployment rates vary quite considerably across Greenland.
The variation is particularly apparent from a comparison of
smaller settlements with larger towns. In Tasiilaq, the
unemployment rate is 12.6%, in contrast to Ilulissat, where the
rate is 1.1%. In view of the high demand for labour, it is
important to investigate opportunities for regional initiatives to
optimise utilisation of the workforce. Even with full utilisation,
productivity growth and more foreign manpower will probably
be necessary. This necessity is emphasised by population
projections, which, despite their uncertainty, indicate a
population decline.
As a measure to increase the supply of labour and also increase
the degree of self-reliance, a political agreement to reform the
personal income and tax system has been established. The
reform entails raising both the basic deduction and the
employment deduction, in order to increase the incentive to
work and to improve the circumstances of low-income groups.
11
Statistics Greenland.
0
1.000
2.000
3.000
4.000
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
Jan
May
Sep
2018 2019 2020 2021 2022 2023 2024
Annual Report
2024
Management’s Review
15
However, increasing the supply of labour is not enough in itself.
To achieve a well-functioning labour market it is also necessary
to ensure a workforce with skills and qualifications that match
businesses’ needs and requirements. There is a particular lack of
trained and qualified manpower, while unemployment rates are
significantly higher for those with a lower level of educational
achievement. This means that the labour market policy must be
viewed in close relation to the education policy, as this will not
only increase the labour supply, but also benefit productivity.
Figure 11
Workforce as a ratio of the population
Workforce as a ratio of the population of working age
Not e: The figure shows the workforce (unemployed and employed in total) as a
percentage of the population in Greenland, Denmark and the Faroe Islands,
respectively. Due to data limitations, the ratios are compiled for marginally different
popula ti on g roups for the three 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
12
Greenland’s Economic Council, January 2024.
Education
Even though Greenland’s unemployment is low, there is a clear
connection between unemployment and level of education.
This tendency is not unique to Greenland, but can also be seen
in the other OECD countries. This emphasises the need to
raise the education level to increase future employment levels.
For as long as a large proportion of the population has only
achieved lower secondary education, the average unemploy-
ment rate will remain high. This is also apparent from
Fejl!
Henvisningskilde ikke fundet., which shows that unemployment
is significantly higher among those with lower secondary
education as their highest educational qualification. Figure 12
shows that in 2023, 57% of Greenland’s population had lower
secondary education as their highest educational qualification –
an improvement from 71% in 2003 and 65% in 2013, but still a
challenge for the labour market and the economy. Analyses
from Greenland’s Economic Council show a productivity gain
from further education of between 40 and 90%.
12
In June 2024, Naalakkersuisut therefore approved the new
education strategy for 2024-2030, as an initiative for more
people to complete upper secondary education. It is important,
however, that sufficient funding is provided to this area, since
Greenland’s geography and population size will require
substantial efforts.
Young people wishing to achieve higher educational
qualifications are still obliged to study abroad to a great extent.
The challenge this presents is that a large proportion of new
graduates do not return to Greenland. A key condition for
success is that the young people also gain the language skills
40%
50%
60%
70%
80%
90%
100%
2016 2017 2018 2019 2020 2021 2022 2023
Greenland Denmark Faroe Islands
Figure
10
Unemployment by level of education
Unemployment rate calculated for each of the four education levels
Lower secondary school
Upper secondary school
Vocational education
Higher education
Not e:
The columns show the level of unemployment for each of the four education levels in Greenland from 2018 to 2023.
Source:
Statistics Greenland
8,1%
7,1%
7,5%
6,2%
5,5%
5,0%
1,9%
1,4% 1,4%
0,9% 0,9%
1,1%
2,4%
2,1%
2,3%
1,8%
1,5%
1,4%
0,4% 0,4% 0,4%
0,3%
0,4%
0,4%
5,0%
4,3%
4,5%
3,7%
3,2%
2,9%
2018 2019 2020 2021 2022 2023
Average unemployment rate
Annual Report
2024
Management’s Review
16
that are crucial for them to flourish in an increasingly more
globalised labour market.
The positive aspect is that Sustainability and Growth Plan II
focuses on the education area. Especially such initiatives as
improved guidance and bridge-building can help to achieve a
better match between skills and labour market requirements.
This includes the fisheries sector, where there is high demand
for qualified manpower.
It is doubtful, however, whether these measures alone can
improve the level of education to the extent and at the speed
that is likely to be an socioeconomic necessity. There is a need
for broader, more targeted efforts to ensure that more young
people gain the right skills and qualifications. There is an urgent
need to think in new ways, which requires cooperation with
other countries, institutions and everyone who can make it
realistically possible to raise education levels, starting with
elementary school and also including vocational colleges and
upper secondary programmes. The BANK of Greenland cannot
assess whether partnerships with the EU, such as in the mineral
resources area, is a path to take, but there is an urgent need
for new measures that can bring about concrete development.
Figure 12
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 2003, 2013 and 2023.
Sources: Statistics Greenland, Eurostat and Statistics Denmark.
Demographic challenges
In recent decades the ageing of Greenland’s population has
increased steadily, and this trend is set to continue. In 2024,
people aged over 60 accounted for almost 16% of the
population, while the over-70s and over-80s made up almost
5% and 1%, respectively (see Figure 13). Compared to 2000,
the proportion of all three elderly age groups has
approximately doubled. This reflects the positive trend of
longer life expectancy, but also presents considerable
challenges. The rising ratio of elderly people will increase public
expenditure on elderly care, healthcare and pensions. Greater
prosperity also leads to the expectation of a higher quality of
welfare benefits, which further increases the pressure on
government finances. The government health agreement of
November 2023 resulted in an appropriation of DKK 35
million to the health service. Furthermore, at Naalakkersuisut’s
request, in connection with the Danish Finance Act the Danish
government has proposed the allocation of a healthcare pool
of DKK 140 million for 2025 to 2028, to cover patients from
Greenland who are assigned for treatment in Denmark.
This pressure is further amplified by a declining birth rate.
Fertility in Greenland has dropped by almost 26% from 1990
to 2022, which means that in future fewer people of working
age will have to provide for a growing proportion of elderly
people. This presents a twofold challenge. Government
revenue from taxes is expected to decline, while expenditure is
expected to rise as a consequence of the demographic
development. This structural challenge is not unique to
Greenland, and is also apparent in many western countries, but
is nonetheless a significant structural problem.
Figure 13
Development in proportion of the population over 60, 70
and 80 years of age
Proportion of the population over 60, 70 and 80 years of age
Not e: Proport ion of t he popul a ti on a g ed over 60 f rom 2 0 00 t o 202 4 .
Sources: Statistics Greenland
Increasing public expenditure in the future, in the face of falling
revenue, will result in an unsustainable fiscal policy, and
according to Greenland’s Economic Council, there will be an
71%
65%
57%
14%
19%
18%
23%
18%
15%
21%
25%
30%
51%
40%
33%
52%
47%
42%
9%
11%
14%
35%
41%
49%
25%
35%
43%
2003 2013 2023 2003 2013 2023 2003 2013 2023
Greenland Denmark EU
7,7%
15,9%
2,5%
4,9%
0,5%
1,0%
0%
5%
10%
15%
20%
2000
2002
2004
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
Proportion over 60 years of age Proportion over 70 years of age
Proportion over 80 years of age
Annual Report
2024
Management’s Review
17
annual financing deficit of over DKK 1 billion.
13
This is
equivalent to around 6% of GDP, which further emphasises the
need for reforms. Based on this challenge, the need for reforms
has been considered by Greenland's Economic Council and in
this section of the BANK of Greenland’s annual reports for
many years, while the measures actually taken during this
period have been limited.
In 2023, Inatsisartut (the Greenland Parliament) adopted a
decision to abolish the mutual dependency obligation applied to
the calculation of pensions for old-age and disability pension
recipients. This change removes the financial incentives which
led elderly people to leave the labour market earlier than
necessary. It is therefore a positive step that can contribute to
retaining elderly people in the labour market, for the benefit of
the economy, while increasing the supply of manpower to a
labour market that is under pressure. It is important to note,
however, that this initiative alone is not sufficient to resolve
Greenland’s structural sustainability problem.
Besides increasing the incentive to stay in the labour market,
Inatsisartut has also already raised the retirement age in several
instances. First from 65 to 66 years of age, and then later to
the current 67 years of age. In addition, specific proposals are
expected for automatic adjustment of the retirement age based
on remaining life expectancy, to meet the rising costs of people
living longer. This is particularly important because the current
pension system is only based on private pension plans to a
minimum degree.
The measures will also have the effect of reducing social
inequality across the entire population. The proportion of
Greenland's population living in relative poverty was
14
12% in
2022. This is more than three times the proportion in
Denmark and the Faroe Islands, at around 3-4%, see Figure 14.
The proportion living in relative poverty is generally increasing.
The proportion was particularly high in the Covid-19 pandemic
years, but disregarding these years, there is an upward
development trend.
13
Greenland Economic Council’s report from autumn 2023.
Figure 14
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 h e popu l a t ion a ged over 1 4 yea rs whos e income i s below 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 sca le economies that may arise from more adults and the
expenses associated with having children.
Sources: Statistics Greenland and Statistics Denmark
To handle the structural challenges at a pace that prevents
them from developing out of hand, it is vital to regard them as
related elements of the whole picture. Improving one area can
often have derived positive effects in other areas. For example,
raising education levels can contribute to increasing the
workforce, higher productivity and less inequality. These
improvements can also improve social mobility, which can
further strengthen education levels. Focusing on how the
different areas are mutually related can create a positive spiral
effect, giving the economy in general a boost.
External investments as one of several driving
forces for Greenland's future development
Reforms that primarily affect local conditions and economic
sustainability can and should be supplemented with good
framework conditions to attract foreign investment. To ensure
Greenland’s economic growth and sustainable development it is
vital not to exclude opportunities for investment from abroad.
Greenland’s own capital reserves and manpower are already
fully utilised and future growth will require new capital,
experience and know-how to be contributed by external
parties. These investments can play a key role in supporting
innovation, rationalisation measures and strategic expansion of
the business structure.
While other countries seek actively to attract foreign
investment, in Greenland it is often feared that major
international companies could drain the country of profits and
assets. Even though it is vital that investors can legitimately
profit from their investment, this concern should be addressed
14
Relative poverty also indicates the proportion of the population who live on less than
50% of the country’s median income, taking due account of family size and structure.
12%
4%
3%
0%
5%
10%
15%
2015 2016 2017 2018 2019 2020 2021 2022 2023
Greenland Denmark Faroe Islands
Annual Report
2024
Management’s Review
18
and also promote responsible investment. Foreign investment
can create unique new opportunities. They can ensure that
Greenland attracts and builds up know-how within green
energy solutions, tourism and mining, which are sectors with
considerable growth potential. For this to succeed, it is
necessary to establish a stable, attractive investment
environment where a clear framework and political
responsiveness can ensure value-generating collaboration
between local and international parties.
In this respect, impact investments and blended finance can be
relevant instruments. Impact investments focus on generating
economic returns, as well as positive social or environmental
effects, such as promoting green energy solutions or
strengthening local communities. Blended finance is a model
whereby public and private capital are combined to reduce the
risk for private investors and also ensure investment in projects
of great economic importance. These methods can support
Greenland in attracting investments that not only benefit
investors, but also ensure sustainable development, for the
benefit of all of society.
In the context of Greenland it is vital that this cooperation is
not impeded by the necessary regulation and framework
conditions, but that it instead promotes responsible and
sustainable investments.
It is vital that Greenland does not isolate itself, but instead finds
the right balance between international investments and local
interests. Through close cooperation and acknowledgement of
the legitimacy of economic returns on investments, Greenland
can leverage its unique position to ensure a future with
appropriate attractive community development.
Annual Report
2024
Management’s Review
19
Annual Report
2024
Management’s Review
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
financial understanding, cooperating with educational
institutions and the business community, and supporting
sustainable local initiatives and development.”
The Bank's mission should thus be viewed in a broader
perspective whereby the BANK of Greenland can be seen as
the Bank for all of Greenland. This imposes an enhanced
responsibility to participate positively and actively in society’s
development 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
Directors approved the Bank’s strategy for the coming years.
“Strategy 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 15
The Bank’s vision for 2028 – for the benefit of Greenland
Annual Report
2024
Management’s Review
21
Summary of Financial Highlights
2024
2023
2022
2021
2020
SELECTED OPERATING ITEMS:
Net interest and fee income
470,264 435,012
351,485
338,933
326,513
Value adjustments
28,578 40,058
-39,356
11,219
136
Other operating income
5,400 5,803
6,588
6,185
5,369
Staff and administration expenses
226,362 211,166
195,056
186,385
178,734
Depreciation and impairment of tangible assets
9,017 8,158
7,320
7,014
6,948
Other
operating expenses 4,255 2,815
2,706
2,497
2,610
Write
-downs on loans and receivables, etc. 18,909 14,160
4,523
1,537
12,828
Profit before tax
245,699
244,574
109,112
158,904
130,898
Tax
36,689 52,179
10,361
26,072
34,671
Profit for the year
209,010
192,395
98,751
132,832
96,227
SELECTED BALANCE SHEET ITEMS:
Lending
5,030,995 4,812,975
4,353,585
3,783,681
4,006,248
Deposits
7,152,807 6,413,469
5,942,479
5,363,871
5,847,772
Equity
1,593,622 1,479,123
1,318,592
1,267,911
1,176,917
Total assets
10,021,543 8,840,981
7,949,566
7,226,988
7,438,325
Contingent liabilities
1,422,643 1,774,426
1,934,125
1,781,465
1,621,831
KEY FIGURES FOR THE BANK (IN PER CENT)
Return on
opening equity before tax and dividend 17.5 18.9
9.0
13.9
12.1
Return on opening equity after tax and dividend
14.9 14.9
8.1
11.6
8.9
Capital ratio
26.9 26.0
23.6
24.4
23.5
Individual solvency requirement
11.1 11.1
11.1
10.7
11.2
KEY
RATIOS PER SHARE IN DKK
Profit for the year per share, before tax
136.5 135.9
60.6
88.2
72.7
Profit for the year per share, after tax
116.1 106.9
54.9
73.8
53.5
Net book value per share
885 822
733
704
654
Dividend per share
100 55
20
40
25
Closing share price
700 625
590
598
590
Definition
of key figures for the Bank
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
2024
Management’s Review
22
Management’s Review for 2024
Principal activity
The BANK of Greenland’s principal activity is to offer financial
services to private customers, business customers and public
institutions in Greenland. The Bank wishes to offer a wide
range of products that is adapted to Greenland’s society and
customers’ requirements, combined with professional advisory
services.
Statement of income
Net interest income increased by TDKK 30,259 from 2023. A
higher level of interest rates than expected, and lending growth
in 2024, had a positive effect on lending rates. Market interest
rates in 2024 also had a positive impact on the return on the
Bank’s surplus liquidity, both as direct investments placed in
Danmarks Nationalbank and as interest on bonds.
Dividend on the Bank’s shareholdings amounts to TDKK 8,859,
compared to TDKK 2,155 in 2023. The development is due to
DKR Kredit’s payment of dividend for the first time.
Fee and commission income decreased by TDKK 1,803 from
2023 to 2024. The decreasing guarantee volume and payment
settlement fees during the year drove the decline. In total, net
interest and fee income increased by TDKK 35,252 to TDKK
470,264.
Other operating income, primarily external rental income on
the Bank’s residential properties, amounted to TDKK 5,400,
compared to TDKK 5,803 in 2023.
Staff and administration expenses increased by TDKK 15,196 to
TDKK 226,362. Staff expenses increased as a consequence of
pay increases under collective agreements and several staff
increases. The average number of full-time employees increased
by around ten people in 2024. Administration expenses were
at a higher level of TDKK 106,438, compared to TDKK
102,054 in 2023. The higher level reflects an increase in BEC
and other IT expenses and in marketing costs.
Depreciation of property and fixtures and fittings increased to
TDKK 9,017, compared to DKK 8,158 in 2023. Additional staff
properties increased depreciation in 2024.
Other operating expenses increased by TDKK 1,440 to TDKK
4,255. Other operating expenses primarily concern operation
and maintenance of bank buildings, as well as contributions to
guarantee and settlement assets. The increase in costs is
primarily due to maintenance of bank buildings.
The profit before value adjustments and write-downs is
thereby above the 2023 level, amounting to TDKK 236,030,
compared to TDKK 218,676 in 2023.
Selected Highlights and Key Figures (not audited)
DKK 1,000
Q4
Q3
Q2
Q1
Q4 Q3 Q2
Q1
2024
2024
2024
2024
2023 2023 2023
2023
Net interest and fee income
114,392
113,509
122,734
119,629 119,981 111,043 99,933
104,056
Costs, depreciation and amortisation
65,959
56,190
58,299
59,186 61,918 51,492 51,814
56,914
Other operating income
1,428
1,355
1,316
1,301 1,346 1,451 1,613
1,392
Profit before value adjustments and write
-downs 49,861
58,674
65,751
61,744 59,409 61,002 49,732
48,534
Value adjustments
6,004
18,657
-1,450
5,367 20,248 8,817 3,085
7,907
Write
-downs on loans, etc. 3,745
3,892
5,946
5,326 5,907 1,974 -713
6,992
Profit before tax
52,120
73,439
58,355
61,785 73,750 67,845 53,530
49,449
Annual Report
2024
Management’s Review
23
Considering Q4 2024 in isolation, net interest and fee income
amounted to TDKK 114,392, compared to TDKK 119,981 for
the same period of 2023. The development in Q4 2024 is
primarily due to higher fee income in Q4 compared to Q3
2024. Comparison of the quarters of 2024 with Q4 2023
shows declining income from interest, despite a higher level of
lending and deposits, and thereby a negative effect of the falling
level of interest rates in the last part of 2024.
Total costs are at a higher level than for the same period of the
previous year, amounting to TDKK 65,959, compared to TDKK
61,918 in Q4 2023. The increase particularly reflects the
aforementioned increase in staff numbers. Moreover, additional
staff expenses of a one-off nature were incurred in Q4 2024,
which was not the case in 2023. Value adjustments at DKK
6 million are thereby significantly below Q3 and the same
quarter of 2023. Write-downs and provisions are TDKK 3,745
lower than for the same period of the previous year. The profit
before tax in Q4 is thus TKK 52,120, compared to TDKK
73,750 in Q4 2023.
For the overall year, value adjustment of securities and
currencies resulted in a gain of TDKK 28,578, compared to a
gain of TDKK 40,058 in 2023. 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
performance entailed greater fluctuation in the value
adjustment of the Bank’s bond holdings, but nonetheless a gain
for the year of DKK 16.0 million in 2024, compared to a gain of
DKK 23.7 million in 2023.
Impairment write-downs on loans, etc. were TDKK 18,909 in
2024, which is TDKK 4,749 higher than in 2023. This is still a
modest overall level. The total impairment write-downs
amount to 0.3% 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
management estimate is allocated, which at the end of 2024
totalled DKK 42.3 million. The estimate addresses industry and
credit risk, but in particular also risks associated with rising
inflation and cyclical uncertainties.
The profit before tax is TDKK 245,699, compared to TDKK
244,574 in 2023. The profit for the year is thereby within the
interval of DKK 225-250 million stated in October 2024. The
profit before tax gives a return on equity of 16.0%.
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 209,010 in 2024 and gives a return on equity
of 13.6%.
Balance sheet and equity
The BANK of Greenland’s balance sheet at year-end 2024
totalled a record TDKK 10,021,543, after an increase of TDKK
1,180,562 from 2023. Deposits were on a rising trend
throughout 2024, amounting to TDKK 7,152,807 at the end of
2024. Compared to 2023, this is an increase of TDKK 739,338.
Deposits primarily increased in the public-sector customer
segment and from business customers in 2024. The Bank’s
deposits are mainly held on demand.
Lending in 2024 increased by 4.5% or TDKK 218,020 to TDKK
5,030,995. At the start of 2024, the Bank expected that the
economic development in Greenland would bring an increase
in lending in 2024, but generally with a lower growth rate than
in previous years. At the same time, the Bank’s guarantees
decreased by TDKK 351,783 to TDKK 1,422,643. The primary
reason for the decline is that the Bank has entered into a new
guarantee agreement with DLR Kredit, which entails lower
guarantee commission than before.
Total loans and guarantees thereby decreased by a total of
TDKK 133,763 to TDKK 6,453,638.
Development in business scope
TDKK
The Bank’s bond holdings increased by TDKK 195,420 to
TDKK 1,498,540.
Land and buildings increased by TDKK 12,718 to TDKK
310,860 in 2024. Due to increasing staff numbers, the Bank
acquired five new staff accommodation units in 2024.
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
2020 2021 2022 2023 2024
Deposits Lending Guarantees
Annual Report
2024
Management’s Review
24
Including returns, the pension area, expressed as assets in pool
schemes, increased by 31.5% in 2024, to TDKK 675,765.
In accordance with the capital plan, in 2024 the Bank made an
additional Senior-Non-Preferred bond issue of TDKK 100,000.
The Bank also issued supplementary capital of TDKK 40,000 in
2024.
Equity amounts to TDKK 1,593.622, compared to TDKK
1,479,123 at the end of 2023. Share capital amounts to TDKK
180,000. The Bank does not have hybrid loan capital. The
capital ratio is 26.9, compared to 26.0 in 2023.
Uncertainty of recognition and measurement
The main uncertainties concerning recognition and
measurement are related to write-downs on loans, provisions
on guarantees, the valuation of financial instruments, and
properties. The management assesses that the uncertainty
concerning the presentation of the accounts for 2024 is at a
responsible level and is unchanged from the previous year.
Compliance and anti-money laundering
The Danish FSA conducted an anti-money laundering
inspection visit in June 2024, with a concluding report on
20 August 2024. The mandatory orders received after the
inspection are described on the Bank’s website under the
following link:
https://www.banken.gl/media/opop542c/bem%C3%A6rkninger-
til-hvidvaskinspektion_uk.pdf
In general, the Bank considers the inspection process to be
constructive and satisfactory, and mandatory orders were
issued for areas of which the Bank is aware and is now in the
process of correcting.
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. In
order for the Bank to comply with the statutory obligation to
act in the event of suspected money laundering, in 2023 the
Bank implemented a new transaction monitoring system, which
facilitates more detailed monitoring by the Bank.
There is also a separate compliance function. The compliance
function is responsible for independent reporting to the
Executive Management and the Board of Directors. The
compliance function is responsible for assessment and control
of compliance with applicable legislation, market standards and
internal regulations. In addition, it advises on how compliance
risks can be reduced.
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
counterparties’ 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
financing/funding.
Operational risk: The risk that the Bank in full or in part incurs
financial losses as a consequence of inadequate or deficient
internal 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. The BANK of Greenland compiles the
credit and market risk according to the standard method and
the operational risk according to the basic indicator method.
The Bank assesses that there is no need for more advanced
methods to be used. 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
requirement 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 30 November 2023, a revised MREL requirement was
determined for the BANK of Greenland, at 30.2% of the Bank’s
risk-weighted assets at the end of 2022. The MREL require-
ment is being phased in up to 2027. This means that in the
course of the coming years, the Bank must fulfil the
Annual Report
2024
Management’s Review
25
requirement by issuing capital instruments and through
consolidation of equity capital.
On the basis of the established MREL requirement, the Bank
made two further issues in 2024, with a view to targeted
coverage of the MREL requirement. Issues of DKK 100 million
Senior Non-Preferred and DKK 40 million subordinated debt
were made.
Capital requirement
2024
2023
Pillar I
8.00%
8.00%
Pillar II
3.10%
3.10%
Solvency requirement
11.1%
11.1%
SIFI buffer requirement
1.50%
1.50%
Capital reserve buffer
requirement
2.50%
2.50%
Capital requirement
15.1%
15.1%
MREL requirement (phased in
linearly as from 1 January 2022)
7.55%
4.90%
Total capital requirement
22.7%
20.0%
Capital base, cf. Note 23
1,535,841
1,450,158
SNP issue cf Note 19
273,569
173,969
MREL capital base
1,809,410
1,624,127
MREL capital ratio
31.70%
29.10%
Surplus capital cover
9.05%
9.10%
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 of 7.55% in 2024. As from
1 January 2025, the Bank must fulfil an MREL requirement of
10.07% on the basis of a revised MREL requirement of 30.2%
notified on 10 December 2024.
Sound capital
In accordance with the Danish Financial Activities Act, the
Board of Directors and the Executive Management must
ensure that the BANK of Greenland has an adequate capital
base. The capital adequacy requirement is the capital which,
according 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
liabilities, the Board of Directors expects that the total capital
reserves 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 assumed by the Bank.
The Bank's risk-weighted assets amount to TDKK 5,710,361,
compared to TDKK 5,573,039 in 2023.
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 25.1 at the end of 2024, and the capital ratio is
26.9 after payment of the proposed dividend. The core capital
ratio is thereby achieved above the long-term target of 24,
which is due to the expected increase in risk-weighted assets
on the implementation of CRR3. CRR3 is expected to be
implemented in the law of Greenland in 2026, but the Bank
already expects to make adjustment in line with the directive in
2025. The Bank therefore assesses it to be appropriate to
maintain a higher core capital level at the end of 2024, in the
expectation that the implementation of CRR3 and the general
development in the Bank’s activities will bring the core capital
closer to the target.
Based on the aforementioned, the Bank’s Board of Directors
proposes to the Annual General Meeting that dividend of DKK
100 per share be paid for 2024, equivalent to 86% of the profit
after tax.
At 31 December 2024, the Bank’s individual solvency
requirement was compiled at 11.1%. The BANK of Greenland
thereby has surplus capital cover before the buffer require-
ments of 15.8%. After deductions for the capital reserve buffer
requirement of 2.5% and the SIFI buffer requirement of 1.5%,
the surplus cover is 11.8%.
In December 2024, the Minister of Industry, Business and
Financial Affairs approved the phasing-in of a contracyclical
capital buffer requirement of 0.5% as from 1 January 2026, and
an additional 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 901,743, which
comprises the difference between the capital requirement
(solvency 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.
Annual Report
2024
Management’s Review
26
The BANK of Greenland’s calculated capital and solvency requirement according to the 8+ model
2024 2023
DKK 1,000
Capital
requirement
Solvency
requirement
Capital
requirement
Solvency
requirement
Pillar I requirement
456,829 8.0%
445,843
8.0%
Credit risk
114,534 2.0%
120,061
2.2%
Market risk
27,320 0.5%
22,404
0.4%
Liquidity risk
6,270 0.1%
0
0.0%
Operational risk
23,621 0.4%
15,646
0.3%
Other risk
5,524 0.1%
12,256
0.2%
Capital and solvency requirement
634,098
11.1%
612,574
11.1%
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 2024. Reference is
also made to the Bank’s risk management report for 2024 at
https://www.banken.gl/en/investor/public-disclosure/
The report has not been audited.
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
ratio. LCR must be at least 100%.
At the end of 2024, the Bank had an LCR of 266.2% and
thereby fulfilled the LCR requirement.
DKK 1,000
2024
2023
Liquidity buffer LCR
3,454,167
2,735,104
Outflow, net
1,297,598
1,055,997
LCR
266.2%
259.0%
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
activities which the Bank aims to fulfil. At the end of 2024, 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 36.0%, which is adequately
below the Danish FSA's threshold of 175%. It must be noted
that approximately 45 percentage points concern exposures to
publicly-owned enterprises.
The property exposure has been reduced and amounts to
19.8% 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
exposure.
Investor Relations
The BANK of Greenland seeks to ensure transparency
concerning the Bank and there is good communication and
dialogue 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.
• Ensure good and positive dialogue with the Bank’s
stakeholders.
• Increase awareness of the BANK of Greenland in investor
circles in Greenland and abroad.
• Give investors structured, continuous and planned
information which fulfils the investors’ information
requirements when investment decisions are taken.
• Increase the liquidity of the BANK of Greenland share.
Supervisory diamond
2024
2023
Limit
Sum of large exposures
136.0%
150.00%
< 175%
Property exposure
19.8%
22.10%
< 25%
Growth in lending
4.50%
10.60%
< 20%
Liquidity benchmark
268.4%
259.00%
> 100%
Annual Report 2024
Management’s Review
27
The objective will result in rapid, accurate information
concerning both price-relevant and other matters relating to
the Bank. In 2023, 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
Notified – Nasdaq OMX and on the Bank’s website under
“Investor” https://banken.gl/en/about-us/investor/
. The content
of the notifications includes quarterly, interim and annual
reports, including 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
subsequently published on the BANK of Greenland’s website,
so that it is generally available.
The Executive Management is responsible for informing
investors and other stakeholders, by agreement with the Board
of Directors. In special cases, the Executive Management may
authorise senior staff members to notify investors and other
stakeholders.
At a price of 700 at the end of 2024, the price of the BANK of
Greenland’s share has increased since the end of 2023, when
the price was 625. The BANK of Greenland proposes to the
Annual General Meeting that the dividend payment for 2024 is
DKK 100 per share, or a total of DKK 180 million. It should be
noted that in Greenland dividend is tax deductible for the
dividend-paying company.
Shareholders
The BANK of Greenland’s overall financial objective is to
achieve a competitive return for the shareholders.
At 31 December 2024, the BANK of Greenland had 2,484
shareholders registered by name, which is slightly fewer than at
31 December 2023, when the number of shareholders
registered by name was 2,539. Shareholders registered by
name account for approximately 93% 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
development in the Bank’s operations and balance sheet, tax
optimisation and regulatory solvency requirements. The
dividend payment for 2024 recommended to the Annual
General Meeting is DKK 100 per share, which should be
viewed in conjunction with the description given under Capital.
The capital ratio is 26.9 and the core capital ratio is 25.1, 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 2025
It is assessed that Greenland saw positive economic growth in
both 2023 and 2024. The BANK of Greenland expects close to
zero economic growth in 2025, as described under
“Greenland's Society and Economy” in this report.
In both the short and longer term, the considerable focus on
Greenland, which escalated at the beginning of 2025, can affect
the economic development and the framework conditions in
Greenland. However, the BANK of Greenland has no basis to
assess that this will be of any material significance in the short
term in 2025, so that it is the circumstances described in this
report – the macroeconomic and local conditions – that are
generally expected to influence the Bank’s operations.
Expected declining interest rates are expected to increase the
appetite for investment, however, and lending is expected to
develop positively towards year-end, but with lower growth
than in 2024. Deposits are expected to be at the level of the
end of 2024.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Pay-out ratio (before tax)
Pay-out ratio (after tax)
Annual Report 2024
Management’s Review
28
The Bank will be affected if inflation and cyclical trends are
exacerbated or amplified to any significant degree.
Total core income is expected to decrease in 2025, for which
the primary reason is the development in interest rates.
Total expenses including depreciation and amortisation are
expected to be higher than in 2024. A few staff increases and
the full effect of staff increases are expected in 2024.
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 shares.
Based on these conditions, a profit before tax at the level of
DKK 150-185 million is expected for 2025, compared to DKK
245.7 million in 2024. The result is in accordance with the stock
exchange announcement of 11 December 2024.
Customers
The BANK of Greenland has strong focus on customer
satisfaction, which is measured by an annual customer
satisfaction survey. On this basis, measures are being initiated in
areas where customers believe that the Bank can do better.
The BANK of Greenland seeks to provide Greenland's best
customer experience, which is a key aspect of the Bank's strategy.
Through ongoing feedback from our customers immediately
after each customer meeting, we work to continuously
improve the customer experience. Our customers’ constructive
feedback is welcomed with great appreciation and we know
that our customers appreciate being heard. The Bank uses NPS
(Net Promoter Score) for these surveys.
As the Bank for all of Greenland, it is positive that the Bank's
presence at coastal locations is considered to add value for
individual local areas. The cooperation with the Bank's
customers is based on close relations between business
advisers, specialists and business enterprises, which gives a deep
insight into each enterprise's business model and needs.
Combined with local knowledge and an understanding of
economic conditions, this insight facilitates value-adding business
advisory services.
The Bank’s Business Department cooperates with other
financial partners to ensure that the Bank’s customers have
access to the best solutions and opportunities in such areas as
insurance and mortgage credit. The Bank’s aim is to serve as a
power centre that creates growth throughout Greenland.
The Bank’s role as a powerhouse is clearly apparent from the
current major infrastructure investments. To maximise the
benefit for Greenland, during the past two years, the Bank,
together with the Greenland Business Association, the BANK
of Greenland Business Fund and a number of other good
partners, has facilitated a number of customer initiatives and
events. The topics have included "Women in Business", ”Future
Greenland 2024”, ”Global Greenland” – local business
development, after-work meetings on such topics as tourism
development, investment events, and various network initiatives.
Private customers are offered a simple and flexible product
range, and in 2024 advisers’ training included a focus on
sustainable customer dialogues. These products are used to
provide each customer with an individual solution, matched to
the customer’s needs. Ongoing contact 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 customer. In 2024, the Bank had the major task
of updating our customers’ 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 485 million,
compared to DKK 467 million in 2023. 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
corporate tax, dividend tax and tax on staff remuneration.
Employees receive salary and pension contributions, etc., after
deduction of PAYE tax. The purchases made by the Bank from
Danish suppliers are mainly IT services from BEC and Nets.
The BANK of Greenland makes a significant contribution to
society as tax payments in the last three years amounting to
around DKK 116 million on average per year.
Annual Report 2024
Management’s Review
29
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,
supplementary training, leadership development (HD, MBA and
other leadership programmes) and “on the job training”.
In 2024, the Bank commenced a new competence clarification
project, called “kompetenceSPIND”, which has been
incorporated as part of the annual staff appraisal interviews
(SUS). The competence clarification has supported
reconciliation of expectations between employees and their line
managers, if there is a need for further development to reach
the Bank's expected level. The measurement is followed by
individual initiatives, and for some employee groups, additional
competence measurements, which help to ensure that the
development initiatives are optimised.
The BANK of Greenland considers it important to ensure the
recruitment of qualified banking professionals, and in 2024, five
financial trainees completed their training,
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. At the same time, six advisers/finance
assistants are taking the financial academy training programme,
which they are expected to complete by mid-2025.
In 2024, the Bank launched significant new employee
programmes in collaboration with the Danish Financial Sector’s
Education Centre, including a learning culture programme for
everyone in the Bank. The purpose is to develop the Bank’s
learning culture, so that the Bank’s employees promote open,
curious, secure and solution-oriented behaviour, and
experience psychological security in the workplace, while the
Bank learns and develops in step with the employees.
In 2024, it was possible to fill 98.77% of the positions in the
Bank.
The total number of employees was 152 at the end of 2024.
The average age is 44.9 and the average length of service is
8 years and 5 months. 103 women and 49 men are employed.
Partners
The BANK of Greenland is a full-service bank in Greenland. Via
cooperation agreements with the best operators within financial
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
ensuring 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 Development
Goals, for the benefit of society and of the BANK of Greenland.
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
ensuring balance between development, growth and stability in
Greenland’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
understanding.
Creating financial understanding for the individual customer,
company or citizen opens up new opportunities and gives insights in
order to make the best choices.
0
20
40
60
80
100
120
140
160
180
2022 2023 2024
Annual Report 2024
Management’s Review
30
Focus area: Social and voluntary involvement
In the Bank, we have more than 300 helping hands to undertake
voluntary work, also during working hours.
Focus area: Environment
The Bank is committed to including environmental considerations in
our activities on a sustainable business and economic basis. A
number of loan options can be used for energy renovation
measures, or electric car purchases, for example. We also work with
strategic environmental management, where our focus is on
reducing consumption of resources, as well as carbon emissions.
Employee 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.
Our current obligations
As a signatory to the UN Global Compact, the BANK of Greenland
has endorsed ten principles for responsible business conduct with
focus on human rights, labour rights, environment and development,
and anti-corruption. We will actively manage our obligation to
respect 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,
employees and Greenland's society. The Bank will also work
according to the requirements and expectations as a consequence
of the Forum for Sustainable Finance's recommendations.”
The above is an excerpt from the BANK of Greenland’s CSR and ESG
Policy. In 2025 there will be additional requirements of the Bank’s
ESG reporting (see the Corporate Sustainability Reporting Directive –
the CSRD Directive), due to the business volume, and the fact that
the Bank is listed within the EU and has below 750 employees.
CSR and sustainability (ESG) on a day-to-day basis
The overall responsibility for the Bank’s CSR work lies with the
Managing Director, while responsibility for sustainability (ESG),
including preparation for CSRD reporting in the future, is held by the
Bank's Business Development Director.
ESG
In the coming years, ESG and sustainability will be more and
more important for banks in the EU, including the BANK of
Greenland, as a consequence of the CSRD Directive, which
requires financial institutions to prepare a double materiality
analysis (DMA) showing:
1. Impact materiality – how the Bank contributes to
impacts on climate, the environment and people
through its activities, and
2. Financial materiality – an assessment of what is of
material significance for the Bank's development,
earnings, results and cash flows.
Based on the DMA, annual CSRD reporting is prepared within
up to ten overall topics (ESRS), and a number of derived data
points
.
In 2026, with data from 2025, the BANK of Greenland will
report ESG points in the Annual Report in accordance with the
EU’s Corporate Sustainability Reporting Directive (CSRD).
Already in 2025, using data from 2024, the Bank will voluntarily
prepare a transition report focusing on individual areas of the
ten ESRS (including standards E1, S1 and G1). The BANK of
Greenland wishes to continue the previous strategic efforts to
be “purpose-driven” in its ESG/sustainability initiatives, to ensure
continued sustainable growth and development in Greenland,
and prepare for coming new reporting requirements.
The BANK of Greenland’s Statutory Corporate Social
Responsibility Report, cf. Section 135 of the Order on the
financial reporting 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
recommendations at all times and to the greatest possible
extent. The Corporate Governance report is available on the
Bank's website:
https://www.banken.gl/en/investor/corporate-
governance/
Data ethics
The BANK of Greenland has adopted a Data Ethics Policy. This
policy presents the framework for the BANK of Greenland’s
data ethics principles and conduct.
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
under-represented gender” is adjusted continuously. At the end
of 2024, the gender distribution of the members of the Board
of Directors of the BANK of Greenland elected by the Annual
General Meeting comprised 20% women and 80% men. This
falls short of the Bank’s objective and is due to the early
resignation of a female member of the Board of Directors in
autumn 2024. The Board of Directors’ objective is for the ratio
of the under-represented gender to be at least 33%. The target
Annual Report 2024
Management’s Review
31
level for the under-represented gender is thus not fulfilled, but
is expected to be fulfilled after the next annual general meeting.
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
opportunities for career development and management
positions. At the end of 2024, managers reporting to the
Managing Director comprised 14% women and 86% men. For
the rest of the management team, the distribution at the end of
2024 was 63% women and 37% men (including deputy
managers). The Bank’s objective is for the distribution of male
and female managers 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
Business Act, at least once a year the Bank must publish details
of the offices which the Board of Directors has approved for
persons who in accordance with statutory provisions or
Articles of Association are appointed by the Board of
Directors, cf. Section 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
82-83.
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
Sector’s Education Centre or other external providers of this
service. This evaluation is the basis for an assessment of several
matters concerning the Board of Directors: the Board
members’ 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 2024. The evaluation of the
Board of Directors 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. Training in new areas
for the Board of Directors has been arranged in 2025, in order
to keep the Board updated.
Authorisation of the Board of Directors concerning
trading in own shares
In accordance with an Annual General Meeting decision of
20 March 2024, up to 1 March 2029 the Board of Directors is
authorised 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.
The tasks of the Audit Committee are to:
• Monitor the presentation of accounts process;
• Monitor the effective functioning of the Bank’s internal
control 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
calculation of the significant accounting estimates is reviewed
and assessed. The committee meets immediately prior to the
meetings 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-
audit-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
Committee.
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
strategy 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
liquidity; 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-
audit-committee-and-risk-committee/
Annual Report 2024
Management’s Review
32
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 2024, 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/remuneration-committee/
The mandate of the Remuneration Committee and the
Remuneration Policy are presented here:
https://www.banken.gl/en/about-us/board-of-
directors/remuneration-committee/
Nomination Committee
The Nomination Committee consists of the Chair and Vice
Chair of the Board of Directors. In 2024, 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
Directors.
• Evaluation of the Board of Directors and composition of
the Board of Directors based on the competence
requirements.
• Determination of a diversity policy.
• Determination of a policy for the under-represented
gender 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/nomination-committee/
The number of meetings in 2024 and attendance of the
meetings of the Board of Directors and all four committees can
be seen here:
https://www.banken.gl/en/about-us/board-of-
directors/
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
Association 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 general 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
several members have served equally long, their resignation is
decided by drawing lots. 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 2024, 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
It is specified in BEC’s Articles of Association that membership
of BEC can be subject to three years’ notice of termination, by
either 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
subject 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.
Annual Report 2024
Management’s Review
33
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 calendar 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 2024
Management Statement
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 2024 for
GrønlandsBANKEN, 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
institutions 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 2024, and of the result of the Bank’s
activities and cash flows for the financial year from 1 January to
31 December 2024.
It is our opinion that the Management’s Review gives a true and
fair review of the development in the Bank’s activities and
financial affairs, as well as a description of the significant risks
and uncertainties 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
January 2024 to 31 December 2024, with the file name
”80050410-2024-12-31-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, 3 March 2025
Executive Management
Martin Birkmose Kviesgaard
Board of Directors
Gunnar í Liða
Kristian Frederik Lennert
Maliina Bitsch Abelsen
Chair
Vice Chair
Pilunnguaq F. Johansen
Kristiansen
Tulliaq Angutimmarik Olsen
Niels Peter Fleischer Rex
Peter Angutinguaq Wistoft
Annual Report 2024
Audit Statement
35
The independent auditor’s report
To the shareholders of GrønlandsBANKEN A/S
Opinion
We have audited the annual financial statements of
GrønlandsBANKEN A/S for the financial year from 1 January to
31 December 2024, which comprise the statement of income,
the statement of comprehensive income, the balance sheet, the
statement of changes in equity and the notes, including the
accounting policies applied and the cash flow statement. The
annual financial statements are prepared in accordance with the
Danish Financial Activities Act and additional Danish disclosure
requirements for listed financial companies.
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 2024, and of the result of the Bank’s
activities for the financial year from 1 January to 31 December
2024, in accordance with the Danish Financial Activities Act and
additional Danish disclosure requirements for listed financial
companies.
Our opinion is consistent with our audit report to the audit
committee and Board of Directors.
Basis for opinion
We conducted our audit in accordance with international
auditing standards and additional requirements under Danish
auditing legislation. Our responsibility according to these
standards and requirements is described further in “Auditor’s
responsibility for the audit of the annual financial statements”.
We are independent of the Bank in accordance with the
International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants (the
IESBA Code) and the additional ethical requirements applying in
Denmark, just as we have fulfilled our other ethical obligations
in accordance with these requirements and the IESBA Code. It
is our view that the audit evidence obtained is an adequate and
appropriate basis for our opinion.
To the best of our knowledge, no prohibited non-auditing
services as described in Article 5(1) of Regulation (EU) no.
537/2014 have been performed.
We were elected as auditors of GrønlandsBANKEN A/S for
the first time on 1 July 1967, for the 1967 financial year. We
have been re-elected each year by decision of the Annual
General Meeting for a total continuous assignment period of 58
years up to and including the 2024 financial year.
Key audit matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the annual
financial statements for the financial year from 1 January to 31
December 2024. These matters were addressed in the context
of our audit of the annual financial statements as a whole, and
in forming an opinion thereon, and We do not provide a
separate opinion on these matters.
Audit Statement
Annual Report 2024
Audit Statement
36
Statement concerning the Management's Review
The Management is responsible for the Management’s Review.
Our opinion concerning the annual financial statements does
not include the Management’s Review, and we do not express
any opinion concerning the Management’s Review.
In connection with our audit of the annual financial statements
our responsibility is to read the Management’s Review and to
consider whether the Management’s Review has significant
inconsistencies with the annual financial statements or the
knowledge we have obtained from the audit, or otherwise
appears to contain material misstatements.
It is also our responsibility to consider whether the
Management’s Review includes the information required in
accordance with the Financial Activities Act.
On this basis it is our view that the information in the
Management’s Review is in accordance with the annual financial
statements and has been prepared in accordance with the
requirements of the Financial Activities Act. We have not found
any material misstatements in the Management’s Review.
Write-downs on loans and provisions for losses on
guarantees, etc.
The matter was considered as follows during the audit
Lending amounted to DKK 5,031 million and guarantees to
DKK 1,423 million at 31 December 2024 (lending
amounted to DKK 4,813 million and guarantees to DKK
1,774 million at 31 December 2023).
The determination of expected write-downs on loans and
provisions for losses on guarantees, etc. is subject to
considerable uncertainty and to a certain extent is based on
managerial 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
matter.
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
management has described the handling of credit risks and
the assessment 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
incorporated 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
exposures 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
applied 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
calculation 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 2024
Audit Statement
37
The management's responsibility for the annual
financial statements
The management is responsible for the preparation of annual
financial statements that present a true and fair view, in
accordance with the Financial Activities Act and the additional
disclosure requirements for listed financial companies in
Denmark. The management is also responsible for the internal
control deemed necessary by the management in order to
prepare annual financial statements that are free of material
misstatement, whether this is due to fraud or error.
On the preparation of the annual financial statements, the
management is responsible for assessing the Bank’s ability to
continue as a going concern, for disclosing information
concerning continuation as a going concern, where relevant,
and for applying the going concern basis of accounting, unless
the management intends to either liquidate the Bank,
discontinue operations, or has no other realistic alternative to
this.
Auditor’s responsibility for the audit of the annual
financial statements
Our objective is to obtain reasonable assurance of whether the
financial statements as a whole are free from material
misstatement, whether this is due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee,
that an audit conducted in accordance with international
auditing standards and additional requirements applying in
Denmark will always detect a significant 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 the annual financial
statements.
As part of an audit in accordance with international auditing
standards and additional requirements applying in Denmark, we
exercise professional judgement and maintain professional
scepticism throughout the audit. We also:
• Identify and assess the risk of material misstatement of the
annual 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 detecting a material misstatement resulting from fraud
is higher than for one resulting from error, as fraud may
involve collusion, forgery, intentional omissions,
misrepresentations, or the overriding of internal control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the Bank’s
internal control.
• Evaluate the appropriateness of the accounting policies
applied by the management, as well as the reasonableness
of accounting estimates and related information prepared
by the management.
• Draw conclusions concerning the appropriateness of the
management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a
material uncertainty exists related to events or conditions
that may cast significant doubt on the Bank’s ability to
continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the annual
financial statements or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the Bank
to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of
the annual financial statements, including the disclosures in
the Notes, and whether the annual financial statements
represent the underlying transactions and events in a
manner that achieves fair presentation.
We communicate with the top-level management regarding,
among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide the top-level management with a statement
that we have complied with relevant ethical requirements
regarding independence, and notify them of all relations and
other matters that might reasonably influence our
independence and, where relevant, the safeguards or actions
used to eliminate threats.
On the basis of the matters communicated to the top-level
management, we determine the matters of most significance to
the audit of the annual financial statements for the relevant
period and which are thereby key audit matters. We describe
these matters in our auditor’s report, unless disclosure of the
matter is prescribed by statutory or other regulation, or in the
very rare cases where we find that the matter is not to be
communicated in our auditor’s report because its negative
consequences might reasonably be expected to carry greater
weight than the advantages to the general public of such
disclosure.
Annual Report 2024
Audit Statement
38
Declaration concerning compliance with the ESEF
Regulation
As an element of the audit of the annual financial statements of
GrønlandsBANKEN A/S we have performed procedures in
order to express an opinion as to whether the Annual Report
for the financial year from 1 January 2024 to 31 December
2024, with the file name ”80050410-2024-12-31-da”, has been
prepared in accordance with European Commission Delegated
Regulation (EU) 2019/815 on the specification of a single
electronic reporting format (the ESEF Regulation), with
requirements concerning the preparation of an annual report in
XHTML format.
The management is responsible for the preparation of an
annual report in compliance with the ESEF Regulation, including
the preparation of an annual report in XHTML format.
Based on the evidence obtained, it is our responsibility to
achieve a high degree of certainty that, in all material respects,
the annual report has been prepared in accordance with the
ESEF Regulation, and to express an opinion.
The procedures include control that the annual report is
prepared in XHTML format.
It is our opinion that, in all material respects, the Annual Report
for the financial year from 1 January 2024 to 31 December
2024, with the file name ”80050410-2024-12-31-da”, has been
prepared in accordance with the ESEF Regulation.
Copenhagen, 3 March 2025
Deloitte
Statsautoriseret Revisionspartnerselskab
CVR no. 33 96 35 56
Anders O. Gjelstrup
State
-Authorised Public Accountant
MNE
-no. mne10777
Annual Report 2024
Statement of Income
39
Annual Report 2024
Statement of Income
40
Statement of Income
DKK 1,000
Notes
2024
2023
3
Interest income
476,909
417,162
4
Interest expenses
116,956
87,468
Net interest income
359,953
329,694
Share dividend, etc.
8,859
2,155
5
Fees and commission income
102,129
103,932
Fees paid and commission expenses
677
769
Net interest and fee income
470,264
435,012
6
Value adjustments
28,578
40,058
Other operating income
5,400
5,803
7, 8
Staff and administration expenses
226,362
211,166
Depreciation and impairment of tangible assets
9,017
8,158
Other operating expenses
4,255
2,815
11
Write
-downs on loans and receivables, etc. 18,909
14,160
Profit before tax
245,699
244,574
9
Tax
36,689
52,179
Profit for the year
209,010
192,395
PROPOSED ALLOCATION OF PROFIT
Profit for the year
209,010
192,395
In total available for allocation
209,010
192,395
Proposed dividend
180,000
99,000
Retained profit
29,010
93,395
Total allocation
209,010
192,395
Annual Report 2024
Statement of Comprehensive Income
41
Statement of Comprehensive Income
DKK 1,000
2024
2023
Profit for the year
209,010
192,395
Other comprehensive income:
Value adjustment of properties
6,084
5,643
Value adjustment of defined
-benefit severance/pension scheme -74
-96
Tax on value adjustment of properties
-1,521
-1,411
Other comprehensive income after tax
4,489
4,136
Comprehensive income for the year
213,499
196,531
Annual Report 2024
Balance Sheet
42
Balance Sheet
(year-end)
DKK 1,000
Notes
2024
2023
Cash balance and demand deposits with central banks
2,080,989
1,552,747
10
Receivables from credit institutions and central banks
155,989
120,150
11
Loans and other receivables at amortised cost
5,030,995
4,812,975
12
Bonds at fair value
1,498,540
1,303,120
13
Shares, etc.
150,963
135,614
16
Assets connected to pool schemes
675,765
513,822
Land and buildings in total
310,860
298,142
14
-
Domicile properties 310,860
298,142
15
Other tangible assets
7,627
6,781
Current tax assets
658
0
Other assets
104,342
93,202
Accruals and deferred income
4,815
4,428
Total assets
10,021,543
8,840,981
17
Liabilities to credit institutions and central banks
15,698
22,105
18
Deposits and other liabilities
7,152,807
6,413,469
Deposits in pool schemes
675,765
513,822
19
Issued bonds at amortised cost
273,569
173,969
Current tax liabilities
0
11
Other liabilities
73,807
63,274
Prepayments and deferred expenses
4,395
5,451
Total debt
8,196,041
7,192,101
Provisions for pensions and similar obligations
2,902
2,506
20
Provisions for deferred tax
106,393
84,762
11
Provisions for losses on guarantees
11,241
9,733
Other provisions
7,322
8,427
Total provisions
127,858
105,428
21
Subordinated debt
104,022
64,329
Total subordinated debt
104,022
64,329
Equity
22
Share capital 180,000
180,000
Revaluation reserves 70,446
65,883
Retained earnings 1,163,176
1,134,240
Proposed dividend
180,000
99,000
Total equity
1,593,622
1,479,123
Total liabilities
10,021,543
8,840,981
1
Accounting policies applied
2
Financial risks and policies
23
-33
Other Notes
Annual Report 2024
Statement of Changes in Equity
43
Statement of Changes in Equity
DKK 1,000
Share capital
Revaluation
reserves
Retained
earnings
Proposed
dividend, net
Total equity
Equity, 1 January 2023
180,000
61,651
1,040,941
36,000
1,318,592
Dividend paid
0
0 0
-36,000
-36,000
Other comprehensive income
0
4,232 -96
0
4,136
Profit for the period
0
0 93,395
99,000
192,395
Equity, 31 December 2023
180,000
65,883
1,134,240
99,000
1,479,123
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 year
0
0
29,010
180,000
209,010
Equity, 31 December 2024
180,000
70,446
1,163,176
180,000
1,593,622
Annual Report 2024
Cash Flow Statement
44
Cash Flow Statement
DKK 1,000
2024
2023
Profit for the year
209,010
192,395
Write
-downs on loans 18,909
14,160
Depreciation and impairment of tangible assets
9,017
8,158
Recognised profit on sale of tangible assets
0
-360
Accruals and deferred expenses, net
-1,444
-2,533
Profit for the year after adjustment for non-cash operating items
235,492
211,820
Liabilities to credit institutions and central banks
-6,407
-493
Deposits
901,281
590,236
Issued bonds
329
141
Subordinated debt
163
63
Lending
-236,929
-473,550
Other working capital
-189,090
-112,854
Other liabilities
31,357
2,692
Change in working capital
500,704
6,235
CASH FLOWS FROM OPERATING ACTIVITIES
736,196
218,055
Sale of
tangible assets 0
904
Purchase, etc. of tangible assets
-16,496
-17,606
CASH FLOWS FROM INVESTMENT ACTIVITIES
-16,496
-16,702
Dividend paid
-99,000
-36,000
Bond issue, including amortisation effect
99,271
99,265
Subordinated debt issue,
including amortisation effect 39,530
39,558
CASH FLOWS FROM FINANCING ACTIVITIES
39,801
102,823
CHANGE IN CASH AND CASH EQUIVALENTS
759,501
304,176
Cash and cash equivalents, beginning of year
2,926,017
2,621,841
Cash and cash
equivalents, end of year 3,685,518
2,926,017
Cash balance and demand deposits with central banks
2,080,989
1,552,747
Fully secured and liquid cash and cash equivalents in credit institutions, cf. Note 12
155,989
120,150
Non
-mortgaged securities 1,448,540
1,253,120
Cash and cash equivalents, end of year
3,685,518
2,926,017
Annual Report 2024
Cash Flow Statement
45
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
46
1. Anvendt regnskabspraksis 47
2. Finansielle risici og politikker og mål for styringen af finansielle risici 52
3. Interest income 63
4. Interest expenses 63
5. Fees and commission income 63
6. Value adjustments 63
7. Staff and administrative expenses 64
8. Audit fees 64
9. Tax on the profit for the year 64
10. Receivables from credit institutions and central banks 65
11. Lending 65
12. Bonds at fair value 67
13. Shares, etc. 67
14. Head office properties 68
15. Other tangible assets 68
16. Assets connected to pool schemes 68
17. Debt to credit institutions and central banks 68
18. Deposits and other liabilities 69
19. Issued bonds at amortised cost 69
20. Provisions for deferred tax 70
21. Subordinated debt 70
22. Share capital 71
23. Capital statement 71
24. Contingent liabilities 72
25. Legal cases 72
26. Currency exposure 72
27. Interest risk rate 72
28. Related parties 73
29. Derivative financial instruments 74
30. Fair value of financial instruments 76
31. Sensitivity calculations 78
32. Five-year Financial Highlights and Key Figures 79
33. Definition of key figures 80
Overview of Notes
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
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 2023.
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
accrue 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
recognition takes place as described for each accounting item
below.
On recognition and measurement, account is taken of
predictable risks and losses arising before the presentation of
the Annual 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
financial year. However, increases in the value of head office
properties that do not match previous impairment are
recognised 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
receive/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
ownership. The BANK of Greenland does not apply the rule
on reclassification of certain financial assets from fair value to
amortised 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
management in accordance with accounting policies, and on the
basis of historical experience, as well as assumptions which the
management 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
assumptions and estimates are significant to the accounts, are
stated below.
On the preparation of the annual financial statements, the
management 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
Statements 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
measurement of these assets and liabilities, and the significant
estimation uncertainty related to the preparation of the Annual
Report for 2024, 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
assumptions. If these assumptions are changed, the
Notes to the Annual Report,
including Accounting
Policies
A
pplied
1. Accounting policies applied
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
48
presentation of the accounts may be affected, and this may
be significant.
• 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
estimates 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
percentage 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 2022, the Bank obtained external broker assessments of a
wide selection of the Bank’sproperties, to support the valuation.
In 2024, an assessment was obtained of the Bank’s head office
property in Nuuk.
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
active 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
recognised valuation techniques, which are based on observable
current 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
instruments) 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.
Receivables, 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. Exchange-rate differences arising between the rate
on the transaction 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
redemption 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
Denmark on contributions to support financial stability in
Greenland. The contribution is divided into directly attributable
compensation 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
Local Banks, Savings Banks and Cooperative Banks in Denmark
will be subject.
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
49
The compensation is presented as a set-off against subsidy-
entitled interest items, or negative interest income and interest
expenses, respectively.
Basic amounts received are not directly attributable to a single
cost element and are therefore recognised under other
operating income. Compensation is recognised in the statement
of income in the relevant period.
The Bank has no unfulfilled commitments at the balance sheet
date, or other contingent items related to the public
compensation.
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.
Commission and fees which are an integrated element of the
effective interest rate on a loan are recognised as part of the
amortised 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
interest rate is calculated on the basis of the contractual
outstanding 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
meeting.
Value adjustments
Value adjustments comprise realised and unrealised value
adjustments of assets and liabilities measured at fair value.
Exchange 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,
pensions, 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 entitles them to the services and benefits in
question. Costs of incentive 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,
insurance, 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
pension 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
managed 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
income, and profit and loss on sale of the Bank’s properties.
Other operating expenses include expenses of a secondary
nature in relation to the Bank’s activities, including operation
and maintenance of the Bank’s head office properties, and
contributions 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,
compiled as the tax calculated on the taxable income for the
year.
On calculating the taxable income, Greenland allows tax
deduction of dividende.
Deferred tax is recognised on all temporary difference
between accounting values and taxable values of assets and
liabilities.
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
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
subsequently measured at amortised cost.
Receivables from and debt to credit institutions and
central banks
Comprises receivables from credit institutions and time
deposits 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
commission received, which are an integral element of the
effective interest rate.
Loans are measured at amortised cost, which is usually
equivalent 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
techniques include the use of equivalent recent transactions
between independent parties, and analyses of discounted cash
flows and other models based on observable market data.
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
alternative capital value calculations. Non-liquid and unlisted
capital investments for which it is not assessed to be possible to
calculate a reliable fair value are measured at cost.
Assets and deposits in pool schemes
All pool assets and deposits are recognised at fair value in
separate balance sheet items. Pool schemes are managed by an
external partner. The Bank’s own return on pool activities is
carried under fee and commission income.
Head office properties
All of the Bank’s properties are defined as head office
properties, including staff accommodation. Staff
accommodation is assessed to be necessary, to ensure the
recruitment of new staff.
Properties are measured according to first recognition at re-
assessed 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
assessment is obtained of the market value of the Bank’s head
office property in Nuuk. Every three years (most recently in
2022), 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
annually on the basis of calculated capital values for the
expected future cash flows.
Increases in head office properties’ reassessed value are
recognised 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
buildings, and over 50 years to staff accommodation.
The head office property and newer bank buildings and staff
accommodation are written down to scrap value.
Other tangible assets
Machinery and fixtures and fittings are measured at cost less
accumulated 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,
and the positive market value of derivative financial instruments
and income that do not fall due for payment until after the end
of the financial year, including interest receivable. With the
exception of derivative financial instruments that have a positive
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
51
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 amortised cost.
Prepayments and deferred expenses
Accruals and deferred income recognised under assets
comprise defrayed costs concerning subsequent financial years.
Prepayments 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
commission received, which are an integral element of the
effective interest rate.
Deposits and other liabilities comprise deposits with
counterparties that are not credit institutions or central banks.
Deposits and other liabilities are measured at fair value on first
recognition, 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
liability items. The item includes the negative market value of
derivative 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 instruments 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 amortised 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
accrued interest and commission. Prepayments and deferred
income 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
financial 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.
Obligations 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,
irrevocable credit undertakings and similar obligations that are
not carried to the balance sheet. Guarantees are measured at
nominal value, with deduction of loss provisions. Provisions for
losses are recognised under “Write-downs on loans and
receivables, 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,
investments and financing, and the Bank’s liquid assets at the
beginning 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
concerning investment activities comprise payments concerning
purchase and sale of companies, activities and the purchase,
development, 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.
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
uncollateralised 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
Supervisory Authority.
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
52
General
In accordance with Section 16 of the Order on the
management and control of banks, etc. the BANK of Greenland
must designate a risk officer who is responsible for risk
management at the Bank.
The risk management function is anchored in the Executive
Management. On the basis of the Bank’s development, a risk
director was appointed in 2023, who is expected to be
appointed as responsible for risk management in the long term.
The BANK of Greenland is exposed to various types of risk.
The objective of the Bank’s risk management policies is to
minimise the losses which may arise as a consequence of e.g.
unforeseen development in the financial markets. The Bank
works with a balanced risk profile, both in credit terms and on
the financial markets. The Bank solely uses derivative financial
instruments (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
management, 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
activities.
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
obligations 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
diversification, whereby risk exposure is matched to the
borrower’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
2024
2023
Maximum credit exposure
Cash balances and demand deposits at central banks
2,080,989
1,552,747
Receivables from credit institutions and
central banks 155,989
120,150
Loans and other receivables at amortised cost
5,030,995
4,812,975
Bonds at fair value
1,498,540
1,303,120
Shares, etc.
150,963
135,614
Other assets, including derivative financial instruments
104,342
93,202
Off
-balance-sheet items
Guarantees
1,422,643
1,774,426
Unutilised facilities
1,743,587
1,983,304
Exposure specification
Lending, cf. Note 13
5,030,995
4,812,975
Guarantees, cf. Note 25
1,422,643
1,774,426
Write
-downs and provisions on guarantees, cf. Note 13 223,936
205,599
Other adjustments
-21,087
-20,398
Gross exposure, cf. below
6,656,487
6,772,602
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
53
• As a general rule, loans, etc. to private customers are only
granted to customers resident in Greenland, or to
customers formerly resident in Greenland; and
• Loans, etc. to both private and business customers are
solely to customers with satisfactory creditworthiness.
Credit granting to customers with OIK (objective indication
of credit deterioration) or material indications 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 financial 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
between 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
(primary), smaller towns (secondary), settlements and villages
(tertiary) 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 (13%)
2. Business in total (56%)
3. Private (31%)
Figure
2
Lending and guarantee debtors by industries under business
0,3%
0,0%
1,1%
0,4%
2,4%
4,7%
7,8%
9,5%
9,7%
19,8%
2.3 Energy supply
2.7 Information and communication
2.2 Industry and extraction of minerals
2.8 Financing and insurance
2.1 Agriculture, hunting and forestry, and fishing
2.10 Other business
2.4 Building and construction i total
2.6 Transport, hotels and restaurants in total
2.5 Trade
2.9 Purchase and sale of real estate in total
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
54
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
authorisations at credit department level and higher, and via
random sample controls in the individual departments.
Collateral security
The BANK of Greenland wishes to have adequate collateral
security 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
commercial);
• Mortgages on movable property, cars, boats, snow
scooters, 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
assessed valuations are therefore based on the Bank’s current
experience 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
experience 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
consequence of impairment or changes in practice concerning
collateral 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
significant increase in credit risk. In this stage, the write-
downs equivalent to the expected 12-month credit loss are
calculated.
• Stage 2 concerns assets for which there has been a
significant 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
assessment of the credit loss in the asset’s lifetime.
There have been no changes in significant assumptions and
valuation methods during the financial period.
88%
3%
3%
6%
Primary Secondary Tertiary Abroad
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
55
Write-downs on loans and receivables are carried to an
adjustment 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 provisions 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
relation 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
percentage 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
increased 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
interest.
• 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
bankruptcy or be subject to other financial restructuring.
• Lapse of an asset.
Furthermore, the loan is at the latest assessed to be credit-
impaired 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
calculating 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
either 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
qualitative indicator for business loans might be, for example,
whether 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.
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
56
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
individual inputs and also forward-looking information, including
macroeconomic conditions.
Determination of input to the write-down model
Input to the write-down model is based on the historical
information developed by the Bank’s data centre using statistic
models.
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
estimated probability applying to a specific time (12-month
PD). Lifetime PD is compiled on the basis of 12-month PD
according to mathematical models and projections of 12-month
PD. This is based on expectations of the future and the
development 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
information 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,
including 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 addition to collateral. Account is also taken of any
price reduction if the collateral is to be realised within a shorter
period. The expected 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
maintained 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
industries, and a number of explanatory macroeconomic
variables. These relations are then subject to estimates of the
macroeconomic 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, increase in GDP, interest, etc. The prognoses are
based on Danish figures. The Danish forecasts are currently
perceived to be applicable to conditions in Greenland, which is,
however, subject 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
correct the data centre’s estimates in the individual sectors and
industries. The institution makes adjustments to these, based on
own expectations of the future, and according to the
composition of the loans.
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
57
Managerial additions
Both IFRS 9 and the Danish Executive Order on Financial
Statements state that the future outlook must be included in
the calculation of total write-downs. On each balance sheet
date the Bank therefore assesses the need for adjustments to
the expected credit losses, calculated on the basis of the
models applied in stages 1 and 2. This takes place on the basis
of the calculated write-downs, and reflects the management’s
assessment of a potentially greater risk on the Bank’s exposures
than is justified by the historical write-downs.
In both 2023 and 2024, the managerial addition is based
primarily on uncertainties concerning model calculations, risk
assessment at sector level and macroeconomic impacts.
As a consequence of inflation and cyclical uncertainty, 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 42.3 million, compared to an estimate of DKK
45.6 million in 2023. This also includes a method risk
supplement.
Managerial additions by stages
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
expected loss based on a number of possible outcomes for the
borrower’s situation and the Bank’s credit handling. The
expected 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
compiled 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
originally determined. For variable-interest-rate loans and
receivables, the current effective interest rate on the loan or
receivable is used.
The general rule is that the write-down comprises the
exposure, 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
reasonable expectation that outstanding amounts will be paid
in, is based on the concrete circumstances of the individual
borrower. 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
creditors, etc. For private individuals, continued attempts are
made to establish voluntary payment schemes and possible legal
collection.
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
58
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
%
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
Gross
exposure
Ratio of
total
gross
exposure
Total
write-downs
Ratio of
total
write-downs
DKK 1,000 %
DKK 1,000
%
2023
Public
689,217 10
695
0
Business:
Agriculture and fisheries
171,614 3
6,172
3
Industry and extraction of minerals
31,217 0
1,544
1
Energy supply
1,658 0
319
0
Construction and civil engineering
579,503 9
34,693
17
Trade
635,101 9
17,376
8
Transport,
restaurants and hotels 633,847 9
14,975
7
Information and communication
4,760 0
162
0
Financing and insurance
37,447 1
668
0
Real estate
1,470,912 22
40,979
20
Other business
278,304 4
19,183
9
Business in total
3,844,363 57
136,071
66
Private
2,239,021 33
71,541
34
In total
6,772,601
100
208,307
100
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
59
Credit exposure distributed on classification, creditworthiness and stages
Classification
The Bank of Greenland
Classification
Danish
Financial
Supervisory
Authority
Stage 1
TDKK
Stage 2
TDKK
Stage 2SVAG
TDKK
Stage 3
TDKK
In total
TDKK
Rating 1 – 3
3/2A
3,561,013
77,627
0
40
3,638,680
Rating 4 – 8
2B
1,692,482
471,767
306,709
734
2,471,692
Rating 9
– 10
2C
0
0 261,803
3,840
265,643
Rating 11
1
0
1,072
7,403
271,997
280,472
In total
5,253,495
550,466
575,915
276,611
6,656,487
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
849,261
39
0
0
849,300
Business:
Agriculture and fisheries
110,660
27,365
14,390
7,307
159,722
Industry and extraction of
minerals
69,075
981
1,373
1,698
73,127
Energy
supply 19,796
569
163
0
20,528
Construction and civil
engineering
390,754
44,704
54,840
29,462
519,760
Trade
548,579
31,582
59,770
5,539
645,470
Transport, restaurants and hotels
545,429
44,210
33,205
6,940
629,784
Information and
communication 2,270
160
28
0
2,458
Financing and insurance
29,110
17
0
0
29,127
Real estate
899,675
69,441
224,691
123,249
1,317,056
Other business
232,556
24,307
22,672
33,426
312,961
Business in total
2,847,904
243,336
411,132
207,621
3,709,993
Private
1,556,331
307,091
164,783
68,989
2,097,194
In total
5,253,496
550,466
575,915
276,610
6,656,487
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
60
Reason for value adjustment of exposures in stage 3
Credit exposures
before write-
downs
Write-downs
Accounting value
Collateral
security
Maximum credit
risk
2024
Bankruptcy
13,015
10,125
2,890
2,768
122
Collection
3,241
1,673
1,567
0
1,567
Financial difficulties
260,354
108,012
152,343
69,199
83,143
In total
276,610
119,810
156,800
71,967
84,832
2023
Bankruptcy
8,316
6,817
1,499
1,499
0
Collection
14,721
11,309
3,412
3,412
0
Financial difficulties
182,253
78,378
103,875
65,812
38,064
In total
205,290
96,504
108,786
70,723
38,064
Credit quality of exposures in general
Arrears or overdrafts > DKK 1,000
In DKK 1,000
2024
2023
0-30 days
1,018
1,433
31-60 days
378
1,086
61-90 days
107
511
> 90 days
8,343
444
In total
9,846
3,474
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
creditworthiness 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)
2024
2023
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
61
The BANK of Greenland has no “non-impaired loans or
guarantees” for which the loan terms have been eased as a
consequence of a borrower’s financial difficulties.
Market risk
The BANK of Greenland’s market risk is managed by fixed
limits 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
reports 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
Department 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
Management 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
Danish Financial Supervisory Authority’s guidelines.
The Bank has set a minor limit of DKK 50 million for
uncovered 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
management of the Bank’s bond holdings to an external
portfolio manager. 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 29.
Share risk
The Board of Directors’ guidelines for the Executive
Management include a maximum shareholding (excluding sector
shares) for the risk which the Bank may assume. The Bank
currently does not hold listed shares. Reference is made to
Note 15.
Currency risk
The BANK of Greenland has adopted guidelines for the
currencies in which exposure is permitted, and the maximum
exposure for each currency. All significant currency exposures
are covered. The Bank had no significant currency exposures at
the end of 2024. Reference is made to Note 26 for further
information 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
reserves 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 266.2 % as at the end of 2024. Reference is also
made to key figures for the 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
following are examples. The Bank’s procedures are reviewed
and reassessed at least once every other year, unless there are
changes in a procedure due to e.g. legislative changes,
procedural 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 report 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
operational risks can be limited.
The BANK of Greenland considers dependence on key
employees 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
individual persons in key roles in the Bank, and the Bank
continuously assesses the outsourcing of operating areas that
are not important to the Bank’s competitiveness. The Bank also
has great focus on continuously improving the internal and
external recruitment 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
disrupt operations. In the case of a geographically limited
outage in the branch network, the other branches will be able
to continue 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 back-up centre (Centre II)
established in external premises. Customer-oriented temporary
operations can be established within one day.
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
62
The Bank's IT operations take place at BEC Financial
Technologies (BEC). The Bank closely follows the instructions
and recommendations received, just as the Bank does not
undertake independent development of IT systems.
The BANK of Greenland has entered into cooperation on
internal 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
external and internal requirements at all times.
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
63
3. Interest income
Receivables from credit institutions and central banks
60,423
49,448
Lending and other receivables
376,161
336,767
Bonds
39,359
29,770
Foreign exchange, interest rate, equity, commodity and other contracts, as well as derivative
financial instruments
966
1,177
Total interest income
476,909
417,162
4. Interest expenses
Credit institutions and central banks
106
151
Deposits and other liabilities
115,112
87,256
Issued bonds
1,118
61
Subordinated debt
620
0
Total interest expenses
116,956
87,468
5. Fees and commission income
Securities and securities accounts
9,413
7,780
Payment settlement
36,464
37,456
Loan transaction fees
3,752
4,968
Guarantee commission
30,181
31,134
Other fees and commission
22,319
22,594
Total fee and commission income
102,129
103,932
6. Value adjustments
Lending at fair value
1,090
1,982
Bonds
15,989
23,654
Shares
6,351
10,178
Currency
6,235
6,253
Foreign exchange, interest rate, equities, commodities and other contracts, as well as
derivative financial instruments
-1,087
-2,009
Assets connected to pool schemes
59,703
42,371
Deposits in pool schemes
-59,703
-42,371
Total value
adjustments 28,578
40,058
Note 3-6
The Bank has not distributed net interest and fee income and value adjustment 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 therefore disclosed.
DKK 1,000
2024
2023
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
64
DKK 1,000
2024
2023
7. Staff and administrative expenses
Staff expenses
Salaries 103,989
93,862
Other staff expenses 2,832
3,068
Pensions 12,826
11,613
Social security expenses 277
569
In total 119,924
109,112
Other administration expenses
106,438
102,054
The average number of employees in the financial year, converted to full
-time employees 153.8
143.5
Of which salaries and remuneration to the Board of Directors and the Executive Management
6,444
6,345
(1 member of the executive board and 9 members of the board of directors)
Five other employees (2023: six employees) whose
activities have a significant influence on the
Bank’s risk profile:
Contractual remuneration, including free car and other benefits
6,332
6,571
Pension
769
802
8. Audit fees
Statutory audit of the annual financial statements
1,033
990
Other declarations with assurance
136
48
Other services
155
382
Total fees to the auditors elected by the Annual General Meeting, who perform
the statutory audit
1,324
1,420
Non
-auditing services are provided by Deloitte, Statsautoriseret Revisionspartnerselskab and
comprise fees for mandatory declarations and general tax advisory.
9. Tax on the profit for the year
Tax on the profit for the year is calculated as
follows:
Current tax
16,579
35,954
Deferred tax
20,110
16,225
In total
36,689
52,179
Tax on the profit for the year is broken down as follows:
Calculated 25% tax on the profit for the year
61,425
61,144
Other
adjustments 14
35
Tax value of dividend deduction
-24,750
-9,000
In total
36,689
52,179
Effective tax rate
14.9%
21.3%
Corporate tax paid in 2024 amounts to TDKK 15,630
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
65
DKK 1,000
2024
2023
10. Receivables from credit institutions and central banks
On demand
64,989
72,150
Up to and including 3 months
91,000
15,000
Over 3 months and up to and including 1 year
0
33,000
In total
155,989
120,150
Receivables from credit institutions
155,989
120,150
In total
155,989
120,150
11. Lending
Write-downs on loans, guarantees and non-utilised credit facilities
New write
-downs concerning new facilities during the year 12,926
16,292
Reversal of write
-downs concerning redeemed facilities -21,195
-16,688
Net write
-downs during the year as a consequence of changes in the credit risk 27,237
14,998
Losses without preceding write
-downs 249
158
Received for claims previously written off
-308
-600
Recognised in the statement of
income 18,909
14,160
Lending at amortised cost
5,030,995
4,812,975
Total lending by remaining term to maturity:
On demand
1,786,792
1,296,564
Up to and including 3 months
114,910
239,232
Over 3 months and up to and including 1 year
403,718
678,677
Over 1 year and up to and including 5 years
1,436,262
1,355,977
Over 5 years
1,289,313
1,242,525
In total
5,030,995
4,812,975
DKK 1,000
Stage 1
Stage 2
Stage 3
Total
Fejl! Henvisningskilde ikke fundet.
Lending - continued
Write-downs on loands
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 2024
Notes to the Annual Report, including Accounting Policies Applied
66
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 –
transfer to stage 1
249
-122
-127 0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-9
81
-72 0
Change in write
-downs at the beginning of the year –
transfer to stage 3
0
0
0 0
Net write
-downs as a consequence of changes in the credit risk -40
725
734 1,419
Write
-downs in total 405
802
538
1,745
Write-downs on loans
31.12.2023
Start of the period
28,826
64,706
86,477
180,009
New write-downs concerning new facilities during the year
5,007
9,510
1,016
15,533
Reversal of write-downs concerning redeemed facilities
-3,019
-2,942
-7,625
-13,586
Change in write-downs at the beginning of the year –
transfer to stage 1
6,524
-5,889
-635
0
Change in write-downs at the beginning of the year –
transfer to stage 2
-1,354
7,445
-6,091
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
-136
-1,229
1,365
0
Net write-downs as a consequence of changes in the credit risk
-8,547
6,402
15,215
13,070
Previously written down, now finally lost
-3,593
-3,593
Interest on written-down facilities
4,433
4,433
Write-downs in total
27,301
78,003
90,562
195,866
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
67
DKK 1,000
Stage 1
Stage 2
Stage 3
Total
Write-downs on guarantees
31.12.2023
Start of the period
1,239
1,025
5,772
8,036
New write
-downs concerning new facilities during the year 201
414
16 631
Reversal of write-downs concerning redeemed facilities
-2
-3
-68
-73
Change in write-downs at the beginning of the year –
transfer to stage 1
2,070
-154
-1,916
0
Change in write-downs at the beginning of the year –
transfer to stage 2
-117
179
-62
0
Change in write-downs at the beginning of the year –
transfer to stage 3
-7
-48
55
0
Net write-downs as a consequence of changes in the credit risk
-2,288
1,282
2,145
1,139
Write
-downs in total 1,096
2,695
5,942
9,733
Write-downs on non-utilised drawing rights
31.12.2023
Start of the period
498
547
3,776 4,821
New write
-downs concerning new facilities during the year 21
107
0 128
Reversal of write
-downs concerning redeemed facilities -159
-34
-2,836 -3,029
Change in write
-downs at the beginning of the year –
0
transfer to stage 1
28
-3
-25
Change in write
-downs at the beginning of the year –
0
transfer to stage 2
-6
497
-491
Change in write
-downs at the beginning of the year –
0
transfer to stage 3
0
-1
1
Net write
-downs as a consequence of changes in the credit risk -37
-596
1,422 789
Write
-downs in total 345
517
1,847
2,709
DKK 1,000
2024
2023
12. Bonds at fair value
Mortgage-credit bonds
1,498,540
1,303,120
In total
1,498,540
1,303,120
Of which nominal TDKK 50,000 deposited as security for debt to Danmarks Nationalbank
13. Shares, etc.
Unlisted shares included at fair value
150,963
135,614
Reassessed value, year-end
150,963
135,614
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
68
14. Head office properties
Reassessed value, beginning of year
298,142
284,370
Additions during the year, including improvements
12,843
14,442
Disposals during the year
0
-544
Write
-offs -6,611
-6,169
Value changes recognised in other
comprehensive income 6,085
5,642
Value changes recognised in the statement of income
401
401
Reassessed value, year
-end 310,860
298,142
There is no public property valuation in Greenland.
In 2024, to support the assessment of the valuation, an independent expert assessment of the
market value of the Bank's domicile property in Nuuk was obtained. The assessment did not
change the valuation of the domicile property.
No expert assessment was
obtained for the assessment of the Bank's other domicile
properties.
15. Other tangible assets
Cost, beginning of year
33,812
31,401
Additions during the year, including improvements
3,653
3,164
Disposals during the year
0
-753
Cost,
year-end 37,465
33,812
Depreciation and write
-downs, beginning of year 27,032
25,394
Depreciation for the year
2,806
2,390
Reversal of depreciation concerning disposals
0
-753
Depreciation and write
-downs, year-end 29,838
27,031
Accounting value, year
-end 7,627
6,781
16. Assets connected to pool schemes
Investment associations
675,642
513,734
Non
-invested funds 123
88
In total
675,765
513,822
17. Debt to credit institutions and central banks
On
demand 15,698
22,105
In total
15,698
22,105
Debt to central banks
12,565
18,975
Debt to credit institutions
3,133
3,130
In total
15,698
22,105
DKK 1,000
2024
2023
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
69
18. Deposits and other liabilities
On demand
5,874,580
5,265,508
Up to 3 months
103,085
20,450
Over 3 months and up to and including 1 year
702,639
688,767
Over 5 years
472,503
438,744
In total
7,152,807
6,413,469
On demand
5,874,580
5,265,508
On terms of notice
976,847
858,360
Special deposit conditions
301,380
289,601
In total
7,152,807
6,413,469
19. Issued bonds at amortised cost
Bond issue
273,569
173,969
In total
273,569
173,969
Distribution in remaining duration
Over 3 months and up to
and including 1 year 49,923
0
Over 1 year and up to and including 5 years
223,646
173,969
In total
273,569
173,969
Loan raised as Senior Non
-Preferred, nominally 50,000
50,000
The loan was raised as Senior Non
-Preferred on 27 October 2021 and falls due for full
redemption on 27 October 2026. The Bank has the option of early redemption as from 27
October 2025.
Loan raised as Senior Non
-Preferred, nominally 25,000
25,000
The loan was raised as Senior Non
-Preferred on 2 September 2022 and falls due for full
redemption on 2 September 2027. The Bank has the option of early redemption as from 2
September 2026.
Loan raised as
Senior Non-Preferred, nominally 100,000
100,000
The loan was raised as Senior Non
-Preferred on 1 December 2023 and falls due for full
redemption on 1 December 2030. The Bank has the option of early redemption as from 1
December 2027.
Loan raised as Senior Non
-Preferred, nominally 100,000
0
The loan was raised as Senior Non
-Preferred on 20 November 2024 and falls due for full
redemption on 20 November 2031. The Bank has the option of early redemption as from 20
November 2028.
DKK 1,000
2024
2023
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
70
20. Provisions for deferred tax
The year’s changes in deferred tax can be summarized as follows:
Deferred tax, beginning of year
84,762
67,126
The year’s deferred tax recognised in the statement of income for the year
20,110
16,225
Adjustment of deferred tax concerning equity items
1,521
1,411
In total
106,393
84,762
Deferred tax concerns:
Head office properties
60,796
59,406
Operating equipment
597
606
Proposed dividend for the financial year
45,000
24,750
In total
106,393
84,762
21. Subordinated debt
Capital certificate as below
104,022
64,329
In total
104,022
64,329
Subordinated debt included in the capital base according to CRR
104,022
64,329
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, floading rate (CIBOR 6 with an addition of 400bp.)
8.113%
8.113%
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
0
Interest rate, floading rate (CIBOR 6 with an addition of 325bp.)
6.633%
0.000%
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.
DKK 1,000
2024
2023
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
71
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
4,652,973
4,607,677
CVA risk
7,519
10,267
Market risk
235,372
233,494
Operational risk
814,497
721,601
Total risk exposure
5,710,361
5,573,039
Equity
1,593,622
1,479,123
Proposed dividend, accounting effect
-135,000
-74,250
Framework for ratio of own shares
-5,985
-11,250
Deduction for capital shares in the financial sector
-5,519
0
Deductions for prudent valuation
-1,652
-1,443
Deductions for Non
-Performing Exposures -13,647
-6,351
Actual core capital
1,431,819
1,385,829
Supplementary capital
104,022
64,329
Capital base
1,535,841
1,450,158
Actual core capital ratio
25.1
24.9
Capital ratio
26.9
26.0
Statutory requirement of actual core capital ratio (excluding capital reserve buffer)
4.5
4.5
Statutory capital ratio requirements
8.0
8.0
DKK 1,000
2024
2023
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
72
24. Contingent liabilities
Mortgage finance guarantees
831,355
1,042,320
Registration and remortgaging guarantees
118,506
182,870
Other guarantees
472,782
549,236
In total
1,422,643
1,774,426
The Bank is a member of BEC (BEC Financial Technologies a.m.b.a.). On any withdrawal the Bank will be obliged to pay
a withdrawal fee to BEC equivalent to the preceding three years’ IT costs. IT costs amounting to TDKK 152,609 (2023:
TDKK 150.999)
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 a party in pending lawsuits and the outcome of these would not affect the Bank’s financial position.
26. Currency exposure
Assets in foreign currency, in total
50,245
57,495
Liabilities in foreign
currency, in total 43,574
52,188
Exchange-rate indicator 1
6,671
5,306
Exchange
-rate indicator 1 as a ratio of core capital 0.4
0.4
Exchange
-rate indicator 2 119
124
27. Interest risk rate
The Bank solely has fixed
-interest-rate assets in Danish kroner.
Interest rate risk for debt instruments, etc.
8,910
10,043
DKK 1,000
2024
2023
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
73
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 Dir
ectors
Executive management
100
100
Board of Directors, including members elected by the employees
5,228
5,427
Pledges:
Executive Management
0
0
Board of Directors, including members elected by the employees
3,262
3,262
Significant terms:
Exposures with members of the Bank’s Board of Directors are entered into on normal
business terms.
Exposures with staff representatives on the Bank’s Board of Directors are entered into on
personnel terms. For members of the Board of Dir
ectors 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
- Peter Angutinnguaq Wistoft 264
264
Executive Mangament - Martin Birkmose Kviesgaard
1,455
1,455
DKK 1,000
2024
2023
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
74
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
criteria for hedg
ing are no longer fulfilled, the accumulated value adjustment of the hedged item
is amortised over the remaining term to maturity.
Lending
Amortised/nominal value
44,356
55,480
Accounting value
45,716
56,602
Covered with interest rate swap
Synthetic principal/nominal value
32,636
44,806
Accounting value
2,830
3,920
Lending at fixed interest rates without cover
Amortised/nominal value
14,690
18,186
Accounting value
15,374
18,555
Nominal value
Positive
market value
Negative
market value
Net
market value
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
2023
Interest rate contracts
Swaps
44,805 4,030
49
4,080
Forwards/Futures, purchase
-4,969
23
-6
17
Forwards/Futures, sale
4,969
9
-21
-12
In total
44,805 4,062
22
4,085
Share contracts
Spot, purchase
126 7
-8
-1
Spot, sale
126 8
-7
1
In total
252 15
-15
0
In total
45,057
4,077
7
4,085
DKK 1,000
2024
2023
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
75
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
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
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
2023
Interest rate contracts
Swaps
0 0
127
0
Forwards/Futures, purchase
-4,969 17
0
0
Forwards/Futures, sale
4,969 -12
0
0
In total
0 5
127
0
Share contracts
Spot,
purchase 126 -1
0
0
Spot, sale
126 1
0
0
In total
8 0
0
0
In total
8 5
127
0
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
25,255
831
19,423
3,248
In total
25,255 831
19,423
3,248
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
76
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
calculated 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
significant 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
classification 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
balance 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 estimates 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
assessed 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
central 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
difference 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
difference 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 2024
Notes to the Annual Report, including Accounting Policies Applied
77
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
Listed
prices
Level 1
Observable
prices
Level 2
Non-
observable
prices
Level 3
In total
2023
FINANCIAL ASSETS
Bonds
1,303,120 0
0
1,303,120
Shares
0 0
135,614
135,614
Positive market value of derivative
financial instruments 0 4,077
0
4,077
In total
1,303,120
4,077
135,614
1,442,811
FINANCIAL LIABILITIES:
Negative market value of derivative financial instruments
0
91
0
91
In total
0
91
0
91
DKK 1,000
2024 2024
2023
2023
Financial instruments recognised at amortised cost:
Amort. cost. Fair value
Amort. cost.
Fair value
Receivables from credit institutions and central banks
155,989 155,992
120,150
120,156
Lending and other
receivables 5,030,995 5,060,901
4,812,975
4,844,707
Liabilities to credit institutions and central banks
15,698 15,698
22,105
22,105
Deposits and other liabilities
7,152,801 7,152,114
6,413,469
6,412,878
Derivative financial
instruments:
Interest rate swaps (net)
0 2,932
0
4,080
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
78
With regard to the Bank’s monitoring of market risks and
calculation of the adequate capital base, a number of sensitivity
calculations 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 2024 had been
100 basis points higher, all other things being equal, the profit
for the year before tax would be TDKK 8.910 lower (2023
TDKK 10.043 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
currency, 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 2024, 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 167 lower (2023: TDKK 133 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 2024
had been 10% lower, all other things being equal, the profit for
the year before tax would be TDKK 15.096 lower (2023
TDKK 13.561 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 2024 had
been 10% lower, the negative value adjustment of properties,
all other things being equal, would be TDKK 31.086 before tax
(2023 t.kr. 29.814 lower).
31.
Sensitivity calculations
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
79
32. Five-year Financial Highlights and Key Figures
2024
2023
2022
2021
2020
Net interest and fee income
470,264
435,012
351,485
338,933 326,513
Value adjustments
28,578
40,058
-39,356
11,219 136
Other operating income
5,400
5,803
6,588
6,185 5,369
Staff and
administration expenses 226,362
211,166
195,056
186,385 178,734
Depreciation and impairment of tangible assets
9,017
8,158
7,320
7,014 6,948
Other operating expenses
4,255
2,815
2,706
2,497 2,610
Write
-downs on loans and receivables, etc. 18,909
14,160
4,523
1,537 12,828
Profit before tax
245,699
244,574
109,112
158,904
130,898
Tax
36,689
52,179
10,361
26,072 34,671
Profit for the year
209,010
192,395
98,751
132,832
96,227
SELECTED BALANCE SHEET ITEMS
Lending
5,030,995
4,812,975
4,353,585
3,783,681 4,006,248
Deposits
7,152,807
6,413,469
5,942,479
5,363,871 5,847,772
Equity
1,593,622
1,479,123
1,318,592
1,267,911 1,176,917
Total assets
10,021,543
8,840,981
7,949,566
7,226,988 7,438,325
Contingent liabilities
1,422,643
1,774,426
1,934,125
1,781,465 1,621,831
OFFICIAL KEY FIGURES:
Solvency ratio
26.9
26.0
23.6
24.4 23.5
Core capital ratio
25.1
24.9
23.2
24.4 23.5
Return on equity before tax
16.1
17.5
8.4
13.0 11.6
Return on equity after tax
13.6
13.8
7.6
10.9 8.5
Rate of return
2.1
2.2
1.2
1.8 1.3
Income per cost krone
2.0
2.0
1.5
1.8 1.7
Interest rate risk
0.6
0.7
1.2
1.2 1.1
Foreign exchange position
0.5
0.4
0.5
0.8 0.6
Lending plus write
-downs as a ratio of deposits 67.0
72.3
71.5
69.1 68.8
Lending as a ratio of equity
3.2
3.3
3.3
3.0 3.4
Growth in lending during the year
4.5
10.6
15.1
-5.6 6.6
Liquidity
Coverage Ratio 266.2
259.0
220.5
238.6 241.0
NSFR (Net Stable Funding Ratio)
137.5
134.0
133.8
- -
Sum of large exposures
136.0
150.0
167.3
156.7 162.6
Ratio of receivables at reduced interest rates
0.8
0.9
0.4
0.5 0.8
Write
-down ratio for the year 0.3
0.2
0.1
0.0 0.2
Accumulated write
-down ratio 3.4
3.1
3.0
3.2 3.2
Profit for the year per share
116.1
106.9
54.9
73.8 53.5
Net book value per share
885.3
821.7
732.6
704.0 653.8
Dividend per share
100.0
55.0
20.0
40.0 25.0
Listed price/profit for the year per share (PE)
6.0
5.8
10.8
8.1 11.0
Stock exchange quotation/net book value per share
0.8
0.8
0.8
0.8 0.9
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
80
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
operating income as a percentage of personnel and
administration expenses, depreciation and write-down of
intangible and tangible assets, other operating expenses and
write-downs on loans and receivables.
Interest rate risk
Interest rate risk as a percentage of core capital after
deductions.
Currency position (currency indicator 1)
Currency indicator 1 is defined by the Danish FSA and
expresses the risk of losses on positions in foreign currency due
to fluctuating exchange rates. On an overall basis, the risk is
calculated 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.
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 2024
Notes to the Annual Report, including Accounting Policies Applied
81
Annual Report 2024
Notes to the Annual Report, including Accounting Policies Applied
82
Former CEO Gunnar í Liða
Born on 13 April 1960 (male)
Joined the Board of Directors on 6 April 2005. Last re-elected
in 2023. Current term expires in 2025.
Does not comply with the Committee on Corporate
Governance’s definition of independence.
Chairman of the Audit Committee, Chairman of the Risk
Committee, 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
management 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. Gunnar í Liða also has substantial Board experience
from Faroese companies, including financial activities, and a
special insight into North Atlantic economic affairs and
financing.
Director 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
Governance’s definition of independence.
Member of the Audit Committee, member of the Risk
Committee, 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
Lennert 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 2024
Notes to the Annual Report, including Accounting Policies Applied
83
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
Member of the Board of Directors of:
• Royal Greenland A/S (chair)
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 Greenland with
responsibility for, among other things, commercial
development, sales and marketing. Maliina Abelsen was a
member of Inatsisartut (the Greenland Parliament) from 2009
to 2014 and held posts in Naalakkersuisut (the Greenland
Government), most recently as Naalakkersuisoq (Minister) for
Finance from 2011 to 2013. Maliina Abelsen has previously
worked at the UN Human Rights Commission in Geneva and
the Foreign Affairs Directorate in Nuuk.
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 2024
Notes to the Annual Report, including Accounting Policies Applied
84
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
Committee and member of the Remuneration Committee
Member of the Boards of Directors of:
• Elite Sport Greenland
Chief Financial Officer
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’
experience from the auditing sector, Peter Wistoft has
considerable accounting and auditing experience. He is also a
former owner of the auditing and consulting firm Deloitte.
Peter Wistoft is the Chief Financial Officer at KNI A/S, and
former CEO of Kalaallit Airports Holding A/S. He has served as
auditor and adviser to large companies within retail trade,
energy supply, telecom and postal activities, construction and
housing administration, and public administration – including the
Government of Greenland.
Peter Wistoft has extensive experience within crisis
management, restructuring, mergers, demergers, prospectuses
and IPOs, etc. and has deep insight into accounting and special
legislation concerning Greenland. Peter Wistoft has also
instructed boards of directors, primarily within corporate
governance, and is educated in strategic management from
INSEAD.
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 2024
Notes to the Annual Report, including Accounting Policies Applied
85
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
Credit consultant Pilunnguaq Frederikke Johansen Kristiansen*)
Business adviser Tulliaq Angutimmarik Olsen*)
Communication and Marketing Manager Niels Peter Fleischer
Rex*)
Chief Financial Officer 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
employees.
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 2024
Notes to the Annual Report, including Accounting Policies Applied
86
Financial Calendar for 2025
Annual Report 2024
3 March
Annual General Meeting in Nuuk
26 March
Interim report, First Quarter 2025
13 May
Interim report, First Half 2025
20 August
Interim Report, First Nine Months 2025
5 November
Notifications to the stock exchange in 2024
18 January
Upward adjustment of expectations for 2023
27
February
Annual Report 2023
27 February
Notice convening the Annual General Meeting
14 March
Flagging of Annual General Meeting powers of attorney to the Board of Directors
20 March
Minutes of the 2024 Annual General Meeting
13 May
Quarterly Report, First Quarter 2024
24 July
Upward adjustment of expectations for 2024
21 August
Quarterly Report, Second Quarter 2024
23 August
Financial Calendar for 2025
2 September
Assessment of risk
-weighted assets
5 September
The BANK of Greenland is investigating the possibility of issuing supplementary capital
6 September
The BANK of Greenland issues DKK 40 million in Tier 2 capital
22 October
Upward adjustment of
expectations for 2024
30 October
Change in the Board of Directors
6 November
Quarterly Report, Third Quarter 2024
18 November
The BANK of Greenland issues DKK 100 million Senior
-Non-Preferred
11 December
Outlook for 2025
Financial Calendar and Stock
Exchange Notifications