Grønlandsbanken A/S
CVR no. 80050410
Notification to Nasdaq OMX Copenhagen
06/2024
Quarterly Report
Q1 2024
Quarterly Report
Q1 2024
1
Management’s Review 2
Report for Q1 in headlines 2
Financial Highlights for Q1 2024 4
Management’s Review, Q1 2024 5
Management Statement 10
Income Statement and Statement of Comprehensive Income 12
Balance Sheet 13
Statement of Changes in Equity 14
Overview of Notes 16
Notes to the Quarterly Report 17
Contents
Quarterly Report
Q1 2024
Management’s Review
2
Report for Q1 in headlines
Good start to 2024
The BANK of Greenland’s profit before tax amounts to DKK
61.8 million for Q1 2024, compared to DKK 49.4 million for
Q1 2023. The profit before value adjustments and write-
downs is satisfactory at DKK 61.7 million, compared to DKK
48.5 million for the previous year.
Lending has increased by DKK 79 million since the end of 2023,
amounting to DKK 4,892 million at the end of Q1. It was
expected that the continued favourable economic development
in Greenland would result in positive, but more subdued
growth in the Bank’s lending in 2024. Guarantees increased by
DKK 23 million from DKK 1,774 million at the end of 2023 to
DKK 1,797 million at the end of Q1 2024.
Net interest and fee income increased by DKK 15.6 million to
DKK 119.6 million in Q1 2024 compared to the same period in
2023. The increase is primarily due to the record-high lending
volume and the development in the level of interest rates in
2023 and 2024. Compared to Q1 2023, total loans and
guarantees increased by DKK 372 million up to the end of Q1
2024.
Total expenses including depreciation amounted to DKK 59.2
million at the end of Q1 2024, compared to DKK 56.9 million
for the same period in 2023.
The increase concerns staff expenses as a consequence of
collective agreement-based adjustments and an increase in the
number of employees, as well as other administration expenses,
where the increase can be attributed primarily to IT expenses.
At the end of Q1 2024, value adjustments show a capital gain
of DKK 5.4 million, compared to a capital gain of DKK 7.9
million for the same period of 2023. The new interest rate
trends resulted in negative development in the Bank’s bond
holdings, while the Bank's sector equities holdings and the
currency area performed positively.
Impairments of loans and guarantees amounted to DKK 5.3
million in Q1 2024, compared to DKK 7.0 million in Q1 2023.
The Bank sees continued satisfactory creditworthiness in the
loan portfolio. In addition to the Bank’s individual impairment
models, a management supplement of DKK 46.8 million is
allocated. In particular, the supplement covers the risks
associated with increasing inflation and interest rates, and
greater cyclical uncertainty.
In the stock exchange announcement of 14 December 2023,
the forecast profit before tax for 2024 was stated as a range of
DKK 180-230 million, which remains unchanged.
Management’s Review
The profit before tax gives a return of 17.6 per cent p.a. on opening equity after disbursement of
dividend.
An increase in loans and guarantees totalling DKK 102 million to DKK 6.688 billion.
Deposits increased to DKK 6.7 billion.
Core earnings per krone in costs of 1.96 in Q1 2024, compared to 1.77 in Q1 2023.
Write-downs and provisions of 0.1 per cent for the period.
Solvency ratio of 26.3 and a capital requirement of 11.1 per cent.
Quarterly Report
Q1 2024
Management’s Review
3
Quarterly Report
Q1 2024
Management’s Review
4
Financial Highlights for Q1 2024
Q1
Q1
Full year
Q1
Q1
Q1
2024
2023
2023
2022
2021
2020
Net interest and fee income
119,629
104,056
435,012
85,747
86,095 82,880
Value adjustments
5,367
7,907
40,058
-10,667
3,127
-11,636
Other operating income
1,301
1,392
5,803
1,635
1,139
1,087
Staff
and administration expenses 56,406
54,390
211,166
47,063
47,123 44,592
Depreciation and impairment of tangible assets
2,141
2,060
8,158
1,829
1,740
1,707
Other operating expenses
639
464
2,815
305
406
212
Write
-downs on loans and receivables, etc. 5,326
6,992
14,160
718
922 9,190
Profit before tax
61,785
49,449
244,574
26,800
40,170
16,630
Tax
-9,304
3,362
52,179
-10,900
-1,281 4,404
Profit for the period
71,089
46,087
192,395
37,700
41,451
12,226
Selected balance sheet items:
Lending
4,891,724
4,398,940
4,812,975
3,904,824
3,905,129 3,636,588
Deposits
6,681,539
6,012,091
6,413,469
5,542,272
5,571,272 5,742,351
Equity
1,452,334
1,329,742
1,479,123
1,236,483
1,174,147 1,090,630
Total assets
9,092,785
8,057,981
8,840,981
7,372,841
7,177,469 7,183,145
Contingent liabilities
1,796,756
1,917,778
1,774,426
1,786,028
1,804,673 1,514,627
Key figures:
Capital ratio
26.3
23.0
26.0
24.4
22.3 24.6
Core capital ratio
25.1
22.6
24.9
24.4
22.3 24.6
Return on equity before tax for the period
4.2
3.7
17.5
2.1
3.4 1.5
Return on equity after tax for the period
4.9
3.5
13.8
3.0
3.5 1.1
Income per cost krone
2.0
1.8
2.0
1.5
1.8 1.3
Rate of return
0.8
0.6
2.2
0.5
0.6 0.2
Interest risk rate
0.7
1.3
0.7
1.2
1.6 1.0
Foreign exchange position
0.3
0.5
0.4
0.8
0.7 0.7
Liquidity coverage ratio
249.6
230.9
259.0
236.7
290.9 284.8
Net stable funding ratio
133.7
-
134.0
-
- -
Lending plus write
-downs as a ratio of deposits 70.6
71.4
72.3
68.8
70.1 64.3
Lending as a ratio of equity
3.4
3.3
3.3
3.2
3.3 3.3
Growth in lending for the period
1.6
1.0
10.6
3.2
-2.5 -3.2
Sum of large exposures
147.9
165.5
150.0
164.0
163.6 159.8
Write
-down ratio for the period 0.1
0.1
0.2
0.0
0.0 0.2
Accumalated write
-down ratio 3.1
3.1
3.1
3.2
3.2 3.5
Profit per share after tax for the period
34.3
25.6
106.9
20.9
23.0 6.8
Net book value per share
806.9
738.7
821.7
686.0
652.0 606.0
Stock exchange quotation/net book value per share
0.8
0.8
0.8
0.9
1.0 0.8
Quarterly Report
Q1 2024
Management’s Review
5
Management’s Review, Q1 2024
Statement of income
At TDKK 93,199, compared to TDKK 73,969 in Q1 2023, net
interest income increased by more than 25%. The rising level of
interest rates during 2023, and the high level of lending, are
driving the growth.
The rising level of interest rates in 2023 reached its current
level in Q3 2023, so that the level of interest rates in Q1 2024
was higher than in Q1 2023. Lending increased by TDKK
492,784 or 11.2% in the period from Q1 2023 until the end of
Q1 2024.
As expected, the Bank also saw shifts in deposits in favour of
savings and high-interest accounts, thereby reducing the deposit
margin.
Fee and commission income decreased by TDKK 2,256
compared to the same period of 2023. Lower investment
activity and insurance brokerage commission have a negative
impact on the item.
Net interest and fee income increased overall by TDKK 15,573
to TDKK 119,629 for Q1 2024.
Other operating income amounted to TDKK 1,301, which is a
decrease of TDKK 91 from Q1 2023.
Staff and administration expenses amounted to TDKK 56,406,
which is an increase of TDKK 2,016 compared to Q1 2023.
Staff expenses increased by TDKK 3,086 as a result of individual
staff increases and salary increases under collective agreements.
Administration expenses decreased by TDKK 1,070. However,
this reflects an increase in IT expenses, and a decrease due to
one-off costs defrayed in Q1 2023.
Other operating expenses, which concern operation and
maintenance of the Bank’s office buildings, increased by TDKK
175 to TDKK 639 in Q1 2024, compared to the same period
of 2023. The increase is due to timing differences in the
payment of costs.
Depreciation of properties and fixtures and fittings amounts to
TDKK 2,141, compared to TDKK 2,060 for the same period in
2023.
The profit before value adjustments and write-downs is a
satisfactory TDKK 61,744, compared to TDKK 48,534 in Q1
2023.
Value adjustments present a total capital gain of TDKK 5,367,
compared to a capital gain of TDKK 7,907 for the same period
in 2023. The Bank’s holdings of sector equities and the
currency area performed favourably in Q1. At the same time,
based on the level of interest rates, the Bank’s bond holdings
gave a capital loss in Q1 2024, in contrast to the significant
capital gain in Q1 2023.
Selected Highlights and Key Figures (not audited)
DKK 1,000
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
2024 2023 2023 2023 2023 2022 2022 2022
Net interest and fee income
119,629
119,981
111,043
99,933
104,056
96,307
87,370
82,061
Costs, depreciation and
amortisation
59,186
61,918
51,492
51,814
56,914
59,254
48,059
48,572
Other operating income
1,301
1,346
1,451
1,613
1,392
2,025
1,514
1,414
Profit before value adjustments
and write-downs
61,744
59,409
61,002
49,732
48,534
39,078
40,825
34,903
Value adjustments
5,367
20,248 8,817
3,085
7,907
6,316
-20,477 -14,528
Write-downs on loans, etc.
5,326
5,907
1,974
-713
6,992
1,483
928
1,394
Profit before tax
61,785
73,750
67,845
53,530
49,449
43,911
19,420
18,981
Impairment of loans, etc. amounts to TDKK 5,326, compared
to TDKK 6,992 for the same period in 2023. The Bank sees
continued satisfactory creditworthiness in the loan portfolio.
The impairment level is still modest and the impairment ratio
for the period is 0.1%.
Despite uncertain macroeconomic prospects as a consequence
of rising inflation, a higher interest rate level and geopolitical
instability, Greenland and the BANK of Greenland’s customers
are not significantly challenged so far. However, the future
economic development is subject to uncertainty.
Quarterly Report
Q1 2024
Management’s Review
6
In addition to the individual write-downs, on this basis the Bank
has maintained a significant management reserve of DKK 46.8
million to counter risks.
The profit before tax is TDKK 61,785, having increased by
TDKK 12,336 from the same period of 2023.
Balance sheet and equity
During Q1, the Bank’s lending saw a satisfactory increase of
TDKK 78,749 to TDKK 4,891,724, while the Bank’s guarantees
to customers increased by TDKK 22,330 from the end of 2023
and amounted to TDKK 1,796,756 at the end of March 2024.
In Q1 2024, the Bank acquired five new staff homes, increasing
the value of domicile properties to TDKK 310,900.
At the end of March 2024, the Bank’s deposits, which
predominantly comprise on-demand deposits, amounted to
TDKK 6,681,539, which is an increase of TDKK 268,070 from
the end of 2023. The Bank continues to have a stable
deposit/lending ratio of approximately 137%.
After payment of the dividend of TDKK 99,000 for 2023
adopted by the Annual General Meeting, the Bank's equity
decreased from TDKK 1,479,123 to TDKK 1,452,334.
Total assets thereby increased by TDKK 108,415 to TDKK
9,092,785.
Uncertainty of recognition and measurement
The principal uncertainties concerning recognition and
measurement 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
instruments. The management assesses that the presentation of
the accounts is subject to an appropriate level of uncertainty.
On 29 November 2023, the Danish Financial Supervisory
Authority published the memorandum “Loss levels on
exposures secured by mortgages in real estate”, in which the
Authority assesses whether there is a well-developed and well-
established real estate market in Denmark, the Faroe Islands
and Greenland.
Particularly with regard to the Faroe Islands and Greenland,
according to the memorandum it was not possible for the
Danish FSA, on the basis of the established criteria, to assess
whether there is a well-developed and well-established market
for residential and commercial properties on the Faroe Islands
and in Greenland. The assessment has an impact on the capital
burden of exposures secured by mortgages on real estate.
The Danish FSA therefore subsequently sent the memorandum
for consultation and contacted the North Atlantic banks,
including the BANK of Greenland, as well as mortgage credit
institutes with North Atlantic property exposures, for further
investigation of the real estate market in Greenland.
On this basis, the BANK of Greenland provided the Danish
FSA with a supplementary basis of experience based on local
knowledge of Greenland's real estate market, in order to
support an assessment of whether a well-developed and well-
established real estate market exists in Greenland.
The status of the real estate market in Greenland is not
expected to be clarified until during 2024.
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 due to
a lack of financing/funding, or ultimately, the risk that the Bank
1.000.000
1.500.000
2.000.000
2.500.000
3.000.000
3.500.000
4.000.000
4.500.000
5.000.000
5.500.000
6.000.000
6.500.000
7.000.000
Q1 2021 Q1 2022 Q1 2023 Year 2023 Q1 2024
Deposits Lending Guarantees
Quarterly Report
Q1 2024
Management’s Review
7
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
inappropriate 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. 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.
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
requirement is being phased in during the period from 2022 to
2027. The linear phasing-in means that by 2024, the Bank must
fulfil an MREL requirement of 7.55%. 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.
In continuation of the established MREL requirement, the Bank
made issues in 2021, 2022 and 2023. A total of DKK 175
million was issued in Senior Non-Preferred and DKK 65 million
in subordinated debt.
In 2024, the Bank also expects to issue securities.
Capital requirement
Q1 2024
Year 2023
Pillar I
8.00% 8.00%
Pillar II
3.14% 3.06%
Solvency requirement
11.14%
11.06%
SIFI buffer requirement
1.50% 1.50%
Capital reserve buffer requirement
2.50% 2.50%
Capital requirement
15.14%
15.06%
MREL requirement (phased in linearly as
from 1 January 2022)
7.55% 4.90%
Total capital requirement
22.69%
19.96%
Capital base, cf. Note 18
1,445,018 1,450,158
SNP issue
174,051 173,969
MREL capital base
1,619,069
1,624,127
MREL capital ratio
29.50% 29.10%
Surplus capital cover
6.81%
9.14%
Solid capital base
In accordance with the Danish Financial Business Act, the Board
of Directors and the Executive Management must ensure that
the BANK of Greenland has an adequate capital base. The
capital 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 own funds and 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, just as there must
be sufficient capital to cover ongoing fluctuations in the risks
assumed by the Bank.
In 2021, the Bank’s Board of Directors therefore adopted a
capital objective with a set target for CET1 of 24%. The BANK
of Greenland’s core capital ratio was 25.1 at the end of Q1
2024, and the capital ratio was 26.3. Taking into account the
uncertainties described above concerning exposures secured by
mortgages on real estate, the Bank considers it essential that
the core capital ratio is at a higher level than the target set.
The result for Q1 2024 has not been verified by the Bank’s
auditor and is therefore not included in the capital ratio.
Including the result for Q1 2024, the core capital ratio is
calculated at 26.1% and the capital ratio at 27.2%.
Quarterly Report
Q1 2024
Management’s Review
8
As at the end of March 2024, the Bank's individual solvency
requirement was compiled at an unchanged 11.1%. The BANK
of Greenland thereby has surplus capital cover before the
buffer requirements of 15.2%, or TDKK 832,773. After
deductions for the capital reserve buffer requirement of 2.5%
and the SIFI buffer requirement of 1.5%, the surplus cover is
11.2%.
The BANK of Greenland has published further details of the
calculated solvency requirement in a report on its website
http://www.banken.gl/report/
The BANK of Greenland’s reported individual solvency requirement according to the 8+ model
Q1 2024
Year 2023
Capital
requirement
Solvency
requirement
Capital
requirement
Solvency
requirement
Pillar I
requirement 439,691
8.0
445,843
8.0
Credit risk
123,998
2.2
120,061
2.2
Market risk
21,585
0.4
22,404
0.4
Operational risk
15,592
0.3
15,646
0.3
Other risk
11,379
0.2
12,256
0.2
Capital and solvency requirement
612,245
11.1
616,210
11.1
Liquidity
The liquidity coverage ratio (LCR) is a minimum requirement of
the ratio between current assets and liabilities, to ensure a
satisfactory liquidity ratio.
At the end of Q1, the Bank had an LCR of 249.6 per cent and
thereby fulfils the LCR requirement of at least 100 per cent.
The Bank’s funding is based solely on deposits.
The Supervisory Diamond for banks
The BANK of Greenland has considered the benchmarks set
out in the Danish FSA’s Supervisory Diamond for banks. The
Supervisory Diamond states five benchmarks for banking
activities which the Bank aims to fulfil. It must be noted that
publicly-owned enterprises account for 38% points of the sum
of large exposures.
The exposure to property amounts to 21.3 per cent. This
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 both of these factors contribute to
stabilizing the overall sector exposure.
Investor relations
The BANK of Greenland’s overall financial objective is to
achieve a competitive return for the shareholders. At a price of
650 at the end of Q1 2024, the price of the BANK of
Greenland’s shares has increased from the end of 2023, when
the price was 625.
At the Bank’s Annual General Meeting on 20 March 2024, a
dividend payment of DKK 55 per share, or a total of DKK 99
million, to the Bank’s shareholders was adopted, and this was
paid out on 25 March 2024.
In accordance with Section 28a of the Danish Companies Act,
six shareholders have notified shareholdings in excess of 5%.
The Bank has no holdings of own shares.
The BANK of Greenland’s mission, values and
corporate governance
The BANK of Greenland conducts banking activities in
Greenland in open competition with domestic and foreign
banks and provides advice and services in the financial area to
all citizens and businesses in Greenland.
The Supervisory Diamond
1Q 2024
Limit
Sum of large exposures
147,90%
< 175%
Property exposure
21,30%
< 25%
Growth in lending
11,20%
< 20%
Liquidity
-benchmark 232,30%
> 100%
Quarterly Report
Q1 2024
Management’s Review
9
The Bank's mission should be viewed in a broader perspective
whereby the BANK of Greenland can be seen as the BANK for
all of Greenland. This entails an enhanced responsibility to
participate positively and actively in society’s development and
to help to create opportunities for the benefit of Greenland,
while also ensuring sound financial activities. The BANK of
Greenland is highly aware of this vital role.
The BANK of Greenland’s values are firmly anchored in the
Bank and its employees. The values are Commitment, Decency,
Customer-oriented and Development-oriented. These values
serve as a guide for how we act and wish to be seen within
and outside the Bank.
The BANK of Greenland considers all of the Corporate
Governance recommendations and the Danish Executive
Order on Management and Control of Banks, etc. and it is the
Bank’s objective to observe these recommendations at all times
and to the greatest possible extent. The Bank’s Corporate
Governance Statement can be found on the Bank’s website
www.banken.gl.
Outlook for the remainder of 2024
Despite inflation and interest rate increases, the BANK of
Greenland expects moderate economic growth in Greenland in
2024, as described in the 2023 Annual Report.
On this basis, lending is expected to develop positively towards
the end of the year, but with significantly lower growth than in
the preceding two years. Deposits are expected to be at the
level of the end of 2023.
The Bank will be affected negatively if inflation and cyclical
trends are exacerbated to any significant degree.
Total core income is expected to increase in 2024, for which
the primary reasons are the increased lending volume and the
development in interest rates.
Total expenses including depreciation and amortisation are
expected to be higher than in 2023. A few staff increases and
the full effect of staff increases are expected in 2023.
Administration expenses are also expected to increase,
primarily in the IT area and for supplementary staff training.
The Bank assesses that the quality of the loan portfolio is
satisfactory. Write-downs on loans are therefore still expected
to be at a low, but normalised, level.
On the basis of the level of interest rates, gains must be
expected on the Bank’s listed securities. Capital gains are
expected from the currency area and sector equities.
On this basis, the expectation of an unchanged profit before
tax at the level of DKK 180-230 million in 2024 is maintained.
Quarterly Report
Q1 2024
Management Statement
10
The Board of Directors and Executive Management have today
considered and approved the quarterly report for the period 1
January – 31 March 2024, for the public limited liability
company, GrønlandsBANKEN A/S.
The quarterly report is presented in accordance with the
Danish Financial Business Act, and the Management’s Review is
prepared in accordance with the Danish Financial Business Act.
The quarterly report is furthermore prepared in accordance
with additional Danish disclosure requirements for listed
financial companies.
It is our opinion that the quarterly report gives a true and fair
view of the Bank's assets, liabilities and financial position at 31
March 2024, and of the results of the Bank's operations for Q1
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 of Greenland is subject.
Management Statement
Nuuk, 13 May 2024
Executive Management
Martin Birkmose Kviesgaard
Board of Directors
Gunnar í Liða
Kristian Frederik Lennert
Maliina
Bitsch Abelsen
Chair
Vice Chair
Lars Holst
Pilunnguaq Frederikke Johansen Kristiansen
Tulliaq Angutimmarik Olsen
Niels Peter Fleischer Rex
Peter Angutinguaq Wistoft
Ellen Dalsgaard Zdravkovic
Quarterly Report
Q1 2024
Management Statement
11
Quarterly Report Q1 2024
Income Statement and Statement of Comprehensive Income
12
Income Statement and Statement of
Comprehensive Income
DKK 1,000
Notes
1. kvartal 2024
hele året 2023
1. kvartal 2023
3
Interest income
123,892
417,162
86,831
4
Interest expenses
30,693
87,468
12,862
Net interest income
93,199
329,694
73,969
Share dividend, etc.
0
2,155
1,460
5
Fees and commission income
26,496
103,932
28,752
Fees paid and commission expenses
66
769
125
Net interest and fee income
119,629
435,012
104,056
6
Value adjustments
5,367
40,058
7,907
Other operating income
1,301
5,803
1,392
7
Staff and administration expenses
56,406
211,166
54,390
Depreciation and impairment of tangible assets
2,141
8,158
2,060
Other operating expenses
639
2,815
464
16
Write-downs on loans and receivables, etc.
5,326
14,160
6,992
Profit before tax
61,785
244,574
49,449
8
Tax
-9,304
52,179
3,362
Profit for the period
71,089
192,395
46,087
COMPREHENSIVE INCOME
Profit for the period
71,089
192,395
46,087
Other comprehensive income:
Value adjustment of properties
1,497
5,643
1,417
Value adjustment of defined-benefit severance/pension scheme
0
-96
0
Tax on value adjustment of properties
-374
-1,411
-354
Other comprehensive income
1,123
4,136
1,063
Comprehensive income for the period
72,212
196,531
47,150
Quarterly Report Q1 2024
Balance Sheet
13
Balance Sheet
DKK 1,000
Notes
Assets
31 March 2024
31 December
2023
31 March 2023
Cash balance and demand deposits with central banks
1,704,750
1,552,747
1,322,534
9
Receivables from credit institutions and central banks
112,646
120,150
129,642
16
Loans and other receivables at amortised cost
4,891,724
4,812,975
4,398,940
10
Bonds at fair value
1,282,595
1,303,120
1,264,553
Shares, etc.
149,261
135,614
127,396
11
Assets connected to pool schemes
538,247
513,822
406,401
Land and buildings in total, domicile properties
310,900
298,142
284,038
-
Domicile properties 310,900
298,142
284,038
Other tangible assets
6,665
6,781
6,202
Other assets
90,547
93,202
113,622
Accruals and deferred income
5,450
4,428
4,653
Total assets
9,092,785
8,840,981
8,057,981
Liabilities
Liabilities to credit institutions and central banks
13,077
22,105
21,678
12
Deposits and other liabilities
6,681,539
6,413,469
6,012,091
Deposits in pool schemes
538,247
513,822
406,401
13
Issued bonds at amortised cost
174,051
173,969
74,598
Current tax liabilities
15,665
11
30,829
Other liabilities
73,971
63,274
72,183
Prepayments and deferred expenses
2,558
5,451
3,411
Total debt
7,499,108
7,192,101
6,621,191
Provisions for pensions and similar obligations
2,584
2,506
2,172
Provisions for deferred tax
60,386
84,762
58,480
Provisions for losses on guarantees
6,674
9,733
12,041
Other provisions
7,330
8,427
4,841
Provisions for losses on non
-utilised credit facilities 0
0
4,791
Total provisions
76,974
105,428
82,325
14
Subordinated debt
64,369
64,329
24,723
Total subordinated debt
64,369
64,329
24,723
Equity
15
Share capital 180,000
180,000
180,000
Revaluation reserves
67,006
65,883
62,714
Retained earnings
1,205,328
1,134,240
1,087,028
Proposed dividend 0
99,000
0
Total equity
1,452,334
1,479,123
1,329,742
Total liabilities
9,092,785
8,840,981
8,057,981
1
Accounting policies applied
2
Accounting estimates
17
Contingent liabilities
18
Capital conditions and solvency
Quarterly Report Q1 2024
Statement of Changes in Equity
14
Statement of Changes in Equity
DKK 1,000
Share capital
Revaluation
reserves
Retained
earnings
Proposed
dividend
Total equity
capital
Equity, 01 January 2023
180,000
61,651 1,040,941
36,000
1,318,592
Dividend paid
0
0
0
-36,000
-36,000
Other comprehensive income
0
1,063
0
0
1,063
Profit for the period
0
0 46,087
0
46,087
Equity, 31 March 2023
180,000
62,714
1,087,028
0
1,329,742
Other
comprehensive income 0
3,169 -96
0
3,073
Profit for the period
0
0 47,308
99,000
146,308
Equity, 31 December 2023
180,000
65,883 1,134,240
99,000
1,479,123
Equity, 01 January 2024
180,000
65,883 1,134,240
99,000
1,479,123
Dividend paid
0
0 0
-99,000
-99,000
Other comprehensive income
0
1,123 0
0
1,123
Profit for the period
0
0 71,088
0
71,088
Equity, 31 March 2024
180,000
67,006 1,205,328
0
1,452,334
Quarterly Report Q1 2024
Statement of Changes in Equity
15
Quarterly Report Q1 2024
16
1. Accounting policies applied etc. 17
2. Significant accounting estimates 17
3. Interest income 18
4. Interest expenses 18
5. Fee and commission income 18
6. Value adjustments 18
7. Staff and administration expenses 19
8. Tax 19
9. Amounts receivable from credit institutions and central banks 19
10. Bonds 19
11. Assets connected to pool schemes 20
12. Deposits 20
13. Issued bonds at amortised cost 20
14. Subordinated debt 21
15. Share capital 21
16. Loans 21
17. Contingent liabilities 26
18. Capital conditions and solvency 26
Overview of Notes
Quarterly Report Q1 2024
Notes to the Quarterly Report
17
The Interim Report has been prepared in accordance with the
Danish Financial Business Act, the statutory order on financial
reports for credit institutions and investment service
companies, etc. and the Danish disclosure requirements for the
interim reports of listed financial companies.
The accounting policies applied are unchanged from the Annual
Report for 2023.
Tax, which consists of current tax and changes in deferred tax,
is recognised in the income statement when it relates to the
profit for the period, and directly in equity when it can be
attributed to items carried directly to equity.
On calculating the taxable income, Greenland allows tax
deduction of dividends for the dividend-paying company. The
taxation value of this is therefore added to equity at the time of
the Annual General Meeting’s approval of the dividend.
Deferred tax assets are recognised in the balance sheet at the
value at which the asset is expected to be realised. The interim
report has not been audited or reviewed.
The calculation of the accounting value of certain assets and
liabilities is subject to a degree of uncertainty and an estimate of
how future events will affect the value of these assets and
liabilities. The most significant estimates relate to:
• measurement of loans, guarantees and non-utilised credit
facilities;
• financial instruments;
• fair value of domicile properties; and
• provisions.
Non-listed financial instruments that primarily concern sector
equities and that are measured at estimated fair values.
The measurement of the fair value of the Bank’s head office
properties is subject to significant accounting estimates and
assessments, including expectations of the properties’ future
returns and the fixed yield ratios.
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.
Notes to the Quarterly Report
1.
Accounting policies applied etc.
2.
Significant accounting estimates
Quarterly Report Q1 2024
Notes to the Quarterly Report
18
DKK 1,000
Q1
2024
Full year
2023
Q1
2023
3. Interest income
Lending and other receivables
97,993
336,767
71,724
Bonds
9,082
29,770
6,474
Foreign exchange, interest rate, equity, commodity and other contracts, as
well as derivative financial instruments
294
1,177
246
Total interest income
123,892
417,162
86,831
4. Interest expenses
Credit institutions and central banks
37
151
47
Deposits and other liabilities
30,656
87,256
12,815
Issued Bonds
0
61
0
Total interest expenses
30,693
87,468
12,862
5. Fee and commission income
Securities and securities accounts
641
7,780
680
Payment settlement
8,861
37,456
8,961
Loan transaction fees
966
4,968
1,311
Guarantee commission
7,863
31,134
8,181
Other fees and commission
8,165
22,594
9,619
Total fee and commission income
26,496
103,932
28,752
6. Value adjustments
Lending at fair value
32
1,983
414
Bonds
-643
23,654
4,949
Shares
4,498
10,178
1,603
Currency
1,510
6,253
1,365
Foreign exchange, interest rate, equity, commodities and other contracts, as
well as derivative financial instruments
-30
-2,010
-424
Assets connected to pool schemes
30,601
42,371
12,745
Deposits in pool schemes
-30,601
-42,371
-12,745
Total value adjustments
5,367
40,058
7,907
Quarterly Report Q1 2024
Notes to the Quarterly Report
19
DKK 1,000
Q1
2024
Full year
2023
Q1
2023
7. Staff and administration expenses
Staff expenses
Salaries 25,722
93,862
23,016
Other staff expenses 1,227
3,068
1,069
Pensions 3,036
11,613
2,802
Social security expenses 121
569
133
In total 30,106
109,112
27,020
Other administration expenses
26,300
102,054
27,370
Average number of FTEs
153.3
143.5
139.3
Of which salaries and remuneration to the Board of Directors and the
Executive Management
1,762
6,345
1,711
Six other employees (Q1 2023: 5 employees) whose activities have a
significant influence on the Bank’s risk profile:
Salaries including free car and other benefits
2,179
7,373
1,753
8. Tax
25
-% of the profit before tax 15,446
61,144
12,362
Discount for dividend tax paid
0
-498
-394
6
-%-supplement 0
0
0
Total tax on ordinary profit
15,446
60,646
11,968
Paid dividend tax
0
498
394
Other changes
0
35
0
Taxation value of dividend paid
-24,750
-9,000
-9,000
Tax in total
-9,304
52,179
3,362
Deferred tax
374
16,225
354
Taxation value of dividend paid
-24,750
0
-9,000
Tax to be paid
15,072
35,954
12,008
No company tax was paid in the period.
9. Amounts receivable from credit institutions and central banks
Receivables from credit institutions 129,642
118,619
122,300
Total amounts receivable
129,642
118,619
122,300
10. Bonds
Of the bond portfolio, a nominal amount of TDKK 50,000 is pledged as collateral for accounts with Danmarks Nationalbank.
Quarterly Report Q1 2024
Notes to the Quarterly Report
20
DKK 1,000
Q1
2024
Full year
2023
Q1
2023
11. Assets connected to pool schemes
Investment associations
538,135
513,734
406,100
Non
-invested funds 112
88
301
Total
538,247
513,822
406,401
12. Deposits
On demand
5,458,280
5,265,508
5,382,245
On terms of notice
929,836
858,360
362,598
Special deposit conditions
293,423
289,601
267,248
Total deposits
6,681,539
6,413,469
6,012,091
13. Issued bonds at amortised cost
Bond issue
174,051
173,969
74,598
Total
174,051
173,969
74,598
Loan raised as Senior
Non-Preferred, nominally 50,000
50,000
50,000
The loan was raised as Senior Non
-Preferred on 27 October 2021 and falls
due for full redemption on 27 October 2026. The Bank has the option of
early redemption as from 27 October 2025.
Loan raised as Senior Non
-Preferred, nominally 25,000
25,000
25,000
The loan was raised as Senior Non
-Preferred on 2 September 2022 and falls
due for full redemption on 2 September 2027. The Bank has the option of
early redemption as from 2 September 2
026.
Loan raised as Senior Non
-Preferred, nominally 100,000
100,000
0
The loan was raised as Senior Non
-Preferred on 1 December 2023 and falls
due for full redemption on 1 December 2030. The Bank has the option of
early redemption as from 1 December 2027.
Quarterly Report Q1 2024
Notes to the Quarterly Report
21
14. Subordinated debt
Capital certificate as below
64,369
64,329
24,723
In total
64,369
64,329
24,723
Subordinated debt included in the capital base according to CRR
64,369
64,329
24,723
Loan raised as subordinated debt,
nominally 25,000
25,000
25,000
Interest rate, fixed rate
6.197%
6.197%
6.197%
The loan was raised on 2 September 2022 and falls due for full redemption
on 2 september
2032. The Bank has the option of early redemption as from
2 September 2027.
Loan raised as subordinated debt, nominally
40,000
40,000
0
Interest rate, floading
rate (CIBOR 6 with an addition of 400bp.) 8.113%
8.113%
0.000%
The loan was raised on 1 June 2023 and falls due for full redemption on 1
June 2033. The Bank has the option of early redemption as from 1 June
2028.
15. Share capital
Share capital consists of 1,800,000 shares of DKK 1,000
Own shares
Number of own shares
0
0
0
16. Loans
Write
-downs on loans, guarantees and non-utilised credit facilities:
New write
-downs concerning new facilities during the period 1,461
16,292
1,733
Reversal of write
-downs concerning redeemed facilities -3,611
-16,688
-3,651
Net write
-downs during the period as a consequence of changes in the
credit risk
7,498
14,998
9,163
Losses without preceding
write-downs 50
158
40
Received for claims previously written off
-72
-600
-293
Recognised in the statement of income
5,326
14,160
6,992
DKK 1,000
Q1
2024
Full year
2023
Q1
2023
Quarterly Report Q1 2024
Notes to the Quarterly Report
22
DKK 1,000
Stage 1
Stage 2
Stage 3
Total
Write-downs on loans
31.03.2024
Start of the period
27,301 78,003
90,562
195,866
New write
-downs concerning new facilities during the
year
311 250
756
1,317
Reversal of write
-downs concerning redeemed facilities -610 -520
-508
-1,638
Change in write
-downs at the beginning of the year –
transfer to stage 1
3,666 -3,498
-168
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-715 3,098
-2,383
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
-3 -184
187
0
Net
write-downs as a consequence of changes in the
credit risk
-3,474 12,701
-102
9,125
Previously written down, now finally lost
-165
-165
Interest on written
-down facilities
1,503
1,503
Write
-downs in total 26,476 89,850
89,682
206,008
Write-downs on guarantees
31.03.2024
Start of the period
1,096 2,695
5,942
9,733
New write
-downs concerning new facilities during the
year
117 18
0
135
Reversal of write
-downs concerning redeemed facilities -1 0
-8
-9
Change in
write-downs at the beginning of the year –
transfer to stage 1
1,852 -305
-1,547
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-1 10
-9
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
-2 0
2
0
Net write
-downs as a consequence of changes in the
credit risk
-1,987 -768
-430
-3,185
Write
-downs in total 1,074 1,650
3,950
6,674
Quarterly Report Q1 2024
Notes to the Quarterly Report
23
Write-downs on non-utilised drawing rights
31.03.2024
Start of the period
345 517
1,847
2,709
New write
-downs concerning new facilities during the
year
9 0
0
9
Reversal of write
-downs concerning redeemed facilities -100 -284
-1,580
-1,964
Change in write
-downs at the beginning of the year –
transfer to stage 1
49 -50
1
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-5 101
-96
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
0 0
0
0
Net write
-downs as a consequence of changes in the
credit risk
117 642
799
1,558
Write
-downs in total 415 926
971
2,312
Write-downs on loans
31.12.2023
Start of the period
28,826 64,706
86,477
180,009
New write
-downs concerning new facilities during the
year
5,007 9,510
1,016
15,533
Reversal of write
-downs concerning redeemed facilities -3,019 -2,942
-7,625
-13,586
Change in write
-downs at the beginning of the year –
transfer to stage 1
6,524 -5,889
-635
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-1,354 7,445
-6,091
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
-136 -1,229
1,365
0
Net write
-downs as a consequence of changes in the
credit risk
-8,547 6,402
15,215
13,070
Previously
written down, now finally lost
-3,593
-3,593
Interest on written
-down facilities
4,433
4,433
Write
-downs in total 27,301 78,003
90,562
195,866
DKK 1,000
Stage 1 Stage 2
Stage 3
Total
Quarterly Report Q1 2024
Notes to the Quarterly Report
24
Write-downs on guarantees
31.12.2023
Start of the period
1,239 1,025
5,772
8,036
New write
-downs concerning new facilities during the
year
201 414
16
631
Reversal of write
-downs concerning redeemed facilities -2 -3
-68
-73
Change in write
-downs at the beginning of the year –
transfer to stage 1
2,070 -154
-1,916
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-117 179
-62
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
-7 -48
55
0
Net write
-downs as a consequence of changes in the
credit risk
-2,288 1,282
2,145
1,139
Write
-downs in total 1,096 2,695
5,942
9,733
Write-downs on non-utilised drawing rights
31.12.2023
Start of the period
498 547
3,776
4,821
New write
-downs concerning new facilities during the
year
21 107
0
128
Reversal of write
-downs concerning redeemed facilities -159 -34
-2,836
-3,029
Change in write
-downs at the beginning of the year –
transfer to stage 1
28 -3
-25
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-6 497
-491
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
0 -1
1
0
Net write
-downs as a consequence of changes in the
credit risk
-37 -596
1,422
789
Write
-downs in total 345 517
1,847
2,709
Write-downs on loans
31.03.2023
Start of the period
28,826 64,706
86,477
180,009
New write
-downs concerning new facilities during the
year
967 325
283
1,575
Reversal of write
-downs concerning redeemed facilities -1,609 -841
-671
-3,121
Change in write
-downs at the beginning of the year –
transfer to stage 1
2,811 -2,301
-510
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-405 2,144
-1,739
0
Change in
write-downs at the beginning of the year –
transfer to stage 3
-104 -259
363
0
Net write
-downs as a consequence of changes in the
credit risk
-4,183 757
8,242
4,816
Previously written down, now finally lost
-379
-379
Interest on
written-down facilities
1,188
1,188
Write-downs in total
26,303
64,531
93,254
184,088
DKK 1,000
Stage 1 Stage 2
Stage 3
Total
Quarterly Report Q1 2024
Notes to the Quarterly Report
25
Write-downs on guarantees
31.03.2023
Start of the period
1,239 1,025
5,772
8,036
New write
-downs concerning new facilities during the
year
140 3
0
143
Reversal of write
-downs concerning redeemed facilities -1 -2
-43
-46
Change in write
-downs at the beginning of the year –
transfer to stage 1
604 -41
-563
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-56 81
-25
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
-10 -48
58
0
Net write
-downs as a consequence of changes in the
credit risk
-700 311
4,297
3,908
Write
-downs in total 1,216 1,329
9,496
12,041
Write-downs on non-utilised drawing rights
31.03.2023
Start of the period
498 547
3,776
4,821
New write
-downs concerning new facilities during the
year
4 0
11
15
Reversal of write
-downs concerning redeemed facilities -39 -15
-430
-484
Change in write
-downs at the beginning of the year –
transfer to stage 1
220 -217
-3
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-1 8
-7
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
0 0
0
0
Net write
-downs as a consequence of changes in the
credit risk
141 153
145
439
Write
-downs in total 823 476
3,492
4,791
DKK 1,000
Stage 1
Stage 2
Stage 3
Total
Quarterly Report Q1 2024
Notes to the Quarterly Report
26
DKK 1,000
Q1
2024
Full year
2023
Q1
2023
17. Contingent liabilities
Mortgage finance guarantees
1,037,793
1,042,320
1,000,642
Registration and remortgaging guarantees
223,266
182,870
266,290
Other guarantees
535,697
549,236
650,846
Guarantees, etc. in total
1,796,756
1,774,426
1,917,778
Provision balance for guarantees
6,674
9,733
12,041
Provision balance for non
-utilised credit facilities 2,312
2,709
4,791
The Bank is a member of BEC (BEC Financial Technologies a.m.b.a.). On any withdrawal the Bank will be
obliged to pay a withdrawal
fee to BEC equivalent to the preceding three years’ IT costs.
Like the rest of the Danish banking sector, the Bank has an obligation to make payments to the Guarantee Fund and the Resolut
ion
Fund.
18. Capital conditions and solvency
Credit risk
4,551,730
4,607,677
4,735,268
CVA risk
10,098
10,267
12,049
Market risk
212,705
233,494
267,648
Operational risk
721,601
721,601
628,793
Total risk exposure
5,496,134
5,573,039
5,643,758
Equity at the
beginning of the period 1,479,123
1,318,592
1,318,592
Comprehensive income for the period
0
196,531
0
Proposed dividend, accounting effect
24,750
-74,250
9,000
Paid dividend
-99,000
-36,000
-36,000
Framework for ratio of own shares
-5,985
-11,250
-10,980
Deduction for capital shares in the financial sector
-8,639
0
0
Deductions for prudent valuation
-1,436
-1,443
-1,684
Deductions for Non
-Performing Exposures -8,164
-6,351
-6,456
Actual core capital
1,380,649
1,385,829
1,272,472
Supplementary capital
64,369
64,329
24,753
Capital base
1,445,018
1,450,158
1,297,225
Actual core capital ratio
26.3
26.0
23.0
Capital ratio
25.1
24.9
22.6
Statutory capital ratio
requirements 8.0
8.0
8.0
Quarterly Report Q1 2024
Notes to the Quarterly Report
27