Balance sheet and equity
During the first three months, the Bank’s lending decreased by
TDKK 22,687 to TDKK 4,899,073, while the Bank’s guarantees
to customers increased by TDKK 73,625 from the end of 2025
and amounted to TDKK 1,349,199 at the end of March 2026.
In the annual reallocation the Bank acquired additional sector
equities in 2026. At 31 March 2026, equities, etc. amounted to
TDKK 185,934, compared to TDKK 170,179 at the end of
2025.
At the end of March 2026, the Bank’s deposits, which predomi-
nantly comprise on-demand deposits, amounted to TDKK
8,434,942, which is an increase of TDKK 560,969 from the end
of 2025. The Bank continues to have a stable deposit/lending
ratio of approximately 172%.
After payment of the dividend of TDKK 144,000 for 2025
adopted by the Annual General Meeting, the Bank's equity de-
creased from TDKK 1,599,024 to TDKK 1,519,424.
Total assets thereafter amount to TDKK 11,488,816.
Uncertainty of recognition and measurement
The principal uncertainties concerning recognition and meas-
urement are related to write-downs on lending, provisions on
guarantees and non-utilised credit facilities, together with the
valuation of properties, unlisted securities and financial instru-
ments. The management assesses that the presentation of the
accounts is subject to an appropriate level of uncertainty.
Financial risks
The BANK of Greenland is exposed to various financial risks,
which are managed at different levels of the organisation. The
Bank’s financial risks consist of:
Credit risk: Risk of loss as a consequence of debtors’ or coun-
terparties’ default on actual payment obligations.
Market risk: Risk of loss as a consequence of fluctuation in the
fair value of financial instruments and derivative financial instru-
ments due to changes in market prices. The BANK of Green-
land classifies three types of risk within the market risk area: in-
terest 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 due to
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 inappropri-
ate internal procedures, human errors, IT systems, etc.
Capital requirement
The BANK of Greenland must by law have a capital base that
supports the risk profile. At the end of 2025, elements of the
CRR3 EU capital requirement regulations entered into force in
Greenland. The BANK of Greenland compiles the credit and
market risk according to these regulations and the operational
risk is now compiled according to the business indicator
method.
MREL requirement
The requirement concerning own funds and eligible liabilities
must be viewed as an element of the recovery and resolution
of banks. This entails that banks which are subject to this re-
quirement must maintain a ratio of capital instruments and debt
obligations that, in a resolution situation, can be written down
or converted before simple claims.
On 11 December 2025, a revised MREL requirement was de-
termined by the Danish FSA for the BANK of Greenland, at
31.2% including buffers. The MREL requirement is being phased
in during the period from 2022 to 2027. The linear phasing-in
means that by 2026 the Bank must fulfil an MREL requirement
of 28.7%. This means that in the course of the coming years,
the Bank must fulfil the phased-in requirement by issuing capital
instruments and consolidation of equity capital.