The Bank of Greenland
CVR no. 80050410
Notification to Nasdaq OMX Copenhagen
15/2024
Quarterly Report
Q1
– Q3 2024
Quarterly Report
Q1 – Q3 2024
1
Management’s Review 2
Quarterly Report in headlines 2
Financial Highlights Q1 - Q3 2024 4
Management’s Review, Q1 – Q3 2024 5
Statement by the Management 11
Income Statement and Statement of Comprehensive Income 13
Balance Sheet 14
Statement of Changes in Equity 15
Overview of Notes 17
Notes to the Quarterly Report 18
Contents
Quarterly Report
Q1 – Q3 2024
Management’s Review
2
Quarterly Report in headlines
Significant profit progress in the Bank
The BANK of Greenland’s profit before tax is DKK 193.6
million for the first nine months of 2024, compared to DKK
170.8 million for the same period of 2023. The profit before
value adjustments and write-downs amounts to DKK 186.2
million, compared to DKK 159.3 million for the previous year.
Lending has increased by DKK 204 million since the end of
2023, amounting to DKK 5,017 million at the end of
September 2024. It was expected that Greenland’s economic
development would result in positive, but more subdued
growth in the Bank’s lending in 2024. At the same time,
guarantees decreased by DKK 364 million, from DKK 1,774
million at the end of 2023, to DKK 1,410 million at the end of
September 2024. The decrease is due to a change in the
guarantee scheme with DLR Kredit.
In the first nine months of 2024, net interest and fee income
increased by DKK 40.8 million to DKK 355.9 million, compared
to the same period of 2023. The increase is due to recent
years' growth in lending and deposits, and the development in
the level of interest rates in the period. Compared to Q3 2023,
lending increased by around 7% and deposits by around 10%
up to the end of Q3 2024.
At the end of Q3 2024, total expenses including depreciation
amounted to DKK 173.7 million, compared to DKK 160.2
million for the same period of 2023. The increase concerns
staff expenses as a consequence of collective agreement-based
adjustments and continued investment in more employees, as
well as other administration expenses, where the increase can
be attributed primarily to IT expenses.
At the end of September 2024, value adjustments entail a
capital gain of DKK 22.6 million, compared to a capital gain of
DKK 19.8 million for the same period of 2023. Interest rate
trends resulted in weak positive development in the Bank’s
bond holdings, while the currency area also performed
positively. In terms of value adjustment alone, the Bank's
holdings of sector equities performed negatively, even though
sector equities yielded extraordinarily high dividends in 2024.
Impairment of loans and guarantees in the first three quarters
of 2024 amounted to DKK 15.2 million, compared to DKK 8.3
million for the same period of 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 33.7 million is allocated. In the stock
exchange announcement of 22 October 2024, the forecast
profit for the year before tax for 2024 was adjusted upwards
to a range of DKK 225-250 million, which is maintained.
Management’s Review
The profit before tax gives a return of 18.4% p.a. on opening equity after disbursement of dividend.
Lending still above DKK 5 billion.
Deposits of DKK 6.9 billion.
Core earnings per krone in costs of 2.07 at 30 September 2024, compared to 1.99 at 30 September
2023.
Write-downs and provisions of 0.2% for the period.
Solvency ratio of 26.6 and a capital requirement of 11.0%.
Quarterly Report
Q1 – Q3 2024
Management’s Review
3
Quarterly Report
Q1 – Q3 2024
Management’s Review
4
Financial Highlights Q1 - Q3 2024
Q1 - Q3
Q1 - Q3
Full year
Q1 - Q3
Q1 - Q3
Q1 - Q3
2024
2023
2023
2022
2021
2020
355,872
315,032
435,012
255,178
249,061 239,671
22,574
19,809
40,058
-45,672
7,716
-4,691
3,972
4,456
5,803
4,563
3,942
3,343
163,922
152,100
211,166
138,304
137,545 126,964
6,711
6,070
8,158
5,488
5,214
5,213
3,042
2,050
2,815
2,036
1,992
1,746
-downs on loans and receivables, etc. 15,164
8,253
14,160
3,040
1,570 10,394
193,579
170,824
244,574
65,201
114,398
94,006
23,645
33,706
52,179
-747
18,377 24,898
169,934
137,118
192,395
65,948
96,021
69,108
5,016,899
4,672,382
4,812,975
4,101,071
3,814,849 3,734,998
6,932,155
6,289,006
6,413,469
5,786,992
5,634,605 5,909,284
1,553,473
1,422,847
1,479,123
1,264,404
1,230,319 1,149,052
9,586,766
8,523,579
8,840,981
7,752,312
7,352,102 7,447,672
1,409,986
1,868,631
1,774,426
2,044,097
1,937,514 1,585,426
26.6
24.6
26.0
22.7
22.7 23.0
24.8
23.4
24.9
22.2
22.7 23.0
12.8
12.5
17.5
5.1
9.5 8.4
tax for the period 11.2
10.0
13.8
5.2
8.0 6.2
2.0
2.0
2.0
1.4
1.8 1.7
1.8
1.6
2.2
0.9
1.3 0.9
1.0
1.2
0.7
1.3
1.4 1.1
0.3
0.5
0.4
0.6
0.9 0.6
ratio 260.9
227.0
259.0
230.9
273.4 243.1
134.5
133.6
134.0
136.0
- -
-downs as a ratio of deposits 69.6
72.2
72.3
69.0
64.4 63.9
3.2
3.3
3.3
3.2
3.1 3.3
the period 4.2
7.3
10.6
8.4
-4.8 -0.7
152.6
163.9
150.0
167.5
161.3 168.4
-down ratio for the period 0.2
0.1
0.2
0.1
0.0 0.2
write-down ratio 3.4
3.0
3.1
3.0
3.2 3.3
period 94.4
76.2
106.9
36.6
53.3 38.4
863.0
790.5
821.7
702.4
684.0 638.0
0.8
0.8
0.8
0.8
0.9 0.9
Quarterly Report
Q1 – Q3 2024
Management’s Review
5
Management’s Review, Q1 – Q3 2024
Statement of income
At TDKK 274,094, compared to TDKK 237,689 in the first half
of 2024, net interest income increased by just over 15%. The
rising level of interest rates during 2023, and the high level of
lending, are driving the growth.
Up to the end of September 2024, in two instances Danmarks
Nationalbank lowered the official interest rates by a total of
0.5%, but the level of interest rates continues to contribute
positively to earnings. At the same time, lending increased by
TDKK 344,517 or 7.4% in the period from 30 September 2023
until 30 September 2024.
As expected, the Bank also saw shifts in deposits in favour of
savings and high-interest accounts, thereby reducing the deposit
margin during 2024.
Dividend on shares increased by TDKK 6,704 to TDKK 8,859.
30 September 2024. This significant increase is due in particular
to DLR Kredit's payment of dividend for the first time.
Fee and commission income decreased by TDKK 2,419
compared to the same period of 2023. Lower investment
activity, a lower level of guarantees and insurance brokerage
commission affected this item negatively.
Net interest and fee income overall increased by TDKK 40,840
to TDKK 355,872 in the first nine months of 2024.
Other operating income amounts to TDKK 3,972, after a
decrease of TDKK 484 from 30 September 2023. The
difference primarily concerns the lower external rental value of
the Bank's properties.
Staff and administration expenses amount to TDKK 163,922
after increasing by TDKK 11,822 from 30 September 2023.
Staff expenses increased by TDKK 8,734 as a result of higher
staff numbers and collectively agreed salary increases.
Administration expenses increased by TDKK 3,088. The
increase primarily reflects IT expenses.
Other operating expenses, which concern operation and
maintenance of the Bank's office buildings, increased by TDKK
992 to TDKK 3,042 in the first three quarters of 2024 ,
compared to the same period of 2023. The increase is
primarily due to planned maintenance of bank buildings.
Depreciation of tangible assets amounted to TDKK 6,711,
compared to TDKK 6,070 for the same period of 2023.
The profit before value adjustments and write-downs
amounted to a satisfactory TDKK 186,169, compared to TDKK
159,268 after three quarters of 2023.
Value adjustments represent a total capital gain of TDKK
22,574, compared to a capital gain of TDKK 19,809 for the
same period of the previous year. In terms of value adjustments
alone, the Bank’s holdings of sector equities performed
negatively, although this should be viewed against share
dividends, as described above. The currency area is at the level
of the same period in 2023. Based on the level of interest rates
and increased holdings, the Bank's bond holdings gave higher
capital gains in the first nine months of 2024 compared to the
first nine months of 2023.
Financial Highlights and Key Figures
DKK 1,000
Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4
2024
2024
2024
2023
2023
2023
2023
2022
Net interest and fee income
113,509
122,734
119,629
119,981
111,043
99,933
104,056
96,307
Costs, depreciation and
amortisation
56,190
58,299
59,186
61,918
51,492
51,814
56,914
59,254
Other operating income
1,355
1,316 1,301
1,346
1,451
1,613
1,392 2,025
Profit before value adjustments
and write-downs
58,674
65,751 61,744
59,409
61,002
49,732
48,534 39,078
Value adjustments
18,657
-1,450
5,367
20,248
8,817
3,085
7,907
6,316
Write-downs on loans, etc.
3,892
5,946
5,326
5,907
1,974
-713
6,992
1,483
Profit before tax
73,439
58,355 61,785
73,750
67,845
53,530
49,449 43,911
Quarterly Report
Q1 – Q3 2024
Management’s Review
6
Impairment of loans, etc. amounted to TDKK 15,164,
compared to TDKK 8,253 for the same period of 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 0.2%.
Despite uncertain macroeconomic prospects, including 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.
In addition to the individual write-downs, on this basis the Bank
has maintained a significant management reserve of DKK 33.7
million to counter risks.
The profit before tax is thereafter TDKK 193,579, and thereby
TDKK 22,755 higher than for the same period of 2023.
Development in the quarter
Net interest and fee income amounted to TDKK 119,629 in
Q1 and TDKK 122,734 in Q2. In Q3, the item amounted to
TDKK 113,509. The development reflects falling interest rates
and pressure on the deposit margin in Q3.
Total costs amounted to TDKK 59,186 in Q1 and TDKK
58,299 in Q2. In Q3, the item amounted to TDKK 56,190. Staff
expenses decreased from Q1 to Q2, and again in Q3, since in
Q1 holiday allowance, etc. is paid, but is not paid in the
subsequent quarters. Other administration costs were by and
large unchanged between the quarters.
The profit before value adjustments and write-downs thereby
decreased in Q3, to TDKK 58,674, which is TDKK 7,077 lower
than in Q2 and TDKK 3,070 lower than in Q1. Profit before
tax increased in Q3 2024 to DKK 73.4 million, from DKK 58.4
million in Q2 and DKK 61.8 million in Q1.
Lending increased by TDKK 78,749 in Q1 and by TDKK
205,578 in Q2, while lending decreased by TDKK 80,403 in
Q3. Overall, this corresponds to an increase of 4.2% from the
end of 2023. At the start of the year, it was expected that the
favourable economic development in Greenland would increase
the Bank's lending, but generally with a lower growth rate than
in previous years.
Deposits increased by TDKK 268,070 in Q1 2024, but
decreased by TDKK 127,656 in Q2. In Q3, deposits increased
by TDKK 378,272, and in overall terms, the increase in deposits
from the end of 2023 is thus TDKK 518,686.
Balance sheet and equity
During the first nine months, the Bank's lending increased
satisfactorily, by TDKK 203,924 to TDKK 5,016,899, while the
Bank’s guarantees to customers decreased by TDKK 364,440
from the end of 2023, and amounted to TDKK 1,409,986 at
the end of September 2024. The Bank has entered into a new
guarantee agreement with DLR Kredit, which entails lower
guarantee provision than before.
During 2024 the Bank acquired five new staff accommodation
properties, increasing the value of domicile properties to TDKK
310,998.
The Bank's deposits, which predominantly comprise on-
demand deposits, amounted to TDKK 6,932,155 at the end of
September 2024, representing an increase of 8% from the end
of 2023. The Bank continues to have a stable deposit/lending
ratio of approximately 133%.
After payment of the dividend of TDKK 99,000 for 2023
adopted by the Annual General Meeting, the Bank's equity
increased from TDKK 1,479,123 to TDKK 1,553,473.
Total assets thereafter increased by TDKK 215,846 to TDKK
9,586,766..
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
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
Q3 2021 Q3 2022 Q3 2023 År 2023 Q3 2024
Deposits Lending Guarantees
Quarterly Report
Q1 – Q3 2024
Management’s Review
7
instruments. The management assesses that the presentation of
the accounts is subject to an appropriate level of uncertainty.
Since the end of 2023, the Bank has provided information on
uncertainty in relation to the memorandum published by the
Danish Financial Supervisory Authority, “Loss levels on
exposures secured by mortgages on real estate”, in which the
Authority assessed whether there is a well-developed and well-
established real estate market in Denmark, the Faroe Islands
and Greenland.
The consultation phase for the memorandum has now been
completed, and on 2 September 2024, the FSA published a
revised memorandum. Moreover, on the same day, the Bank
issued a stock exchange announcement on this subject.
On the conclusion of the consultation, it has been established
that the assessment of well-developed and well-established
markets in Greenland only has a negative impact on certain
delimited segments of commercial properties. It has also been
established that on the transition to CRR3, the effect will lapse.
Until CRR3 is implemented in Greenlandic law, expected to be
in 2026, the Bank’s risk-weighted assets will be increased as a
consequence of the changed assessment. The effect of the
assessment is fully recognised in the Bank's risk-weighted assets
for Q3 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
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 require-
ment 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 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 2021-2024. A total of DKK 175 million in Senior
Non-Preferred and DKK 105 million in subordinated capital
contributions has been issued.
Going forward, the Bank also expects to continuously issue
securities.
Capital requirement
Q3 2024
Year 2023
Pillar I
8.00% 8.00%
Pillar II
2.97% 3.06%
Solvency requirement
10.97%
11.06%
SIFI buffer requirement
1.50% 1.50%
Capital reserve buffer requirement
2.50% 2.50%
Capital requirement
14.97%
15.06%
MREL requirement (phased in linearly as
from 1 January 2022)
7.55% 4.90%
Total capital requirement
22.52%
19.96%
Capital base, cf. Note 18
1,486,017 1,450,158
SNP issue
174,215 173,969
MREL capital base
1,660,232
1,624,127
MREL capital ratio
29.70% 29.10%
Surplus capital cover
7.18%
9.14%
Quarterly Report
Q1 – Q3 2024
Management’s Review
8
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 24.8 at the end of
September 2024, and the capital ratio was 26.6. In view of the
recent clarification of the uncertainties described above
concerning exposures secured by mortgages on real estate, in
2024 the Bank has had a core capital ratio higher than the
target and towards the end of the year the Board of Directors
will undertake a new assessment of the level of core capital.
At the end of September 2024, the risk-weighted assets
amounted to TDKK 5,584,379, after decreasing slightly by
TDKK 25,766 from 30 June 2024. It was expected that the
Bank would see an increase as a consequence of the changed
assessment of the real estate market from the FSA. The effect
is set off, however, by the changed guarantee scheme with DLR
Kredit and the other development in the balance sheet during
the quarter.
The result for Q1-Q3 2024 has not been verified by the Bank’s
auditor and is therefore not included in the capital ratio.
Including the result at 30 September 2024, the core capital
ratio is calculated at 27.4% and the capital ratio at 29.3%.
As at the end of September 2024, the Bank's individual
solvency requirement was compiled at 11.0%. The BANK of
Greenland thus has surplus capital cover before the buffer
requirements of 15.6%, or TDKK 873,456. After deductions for
the capital reserve buffer requirement of 2.5% and the SIFI
buffer requirement of 1.5%, the surplus cover is 11.6%.
The BANK of Greenland’s reported individual solvency requirement according to the 8+ model
Q3 2024 Full year 2023
Capital
requirement
Solvency
requirement
Capital
requirement
Solvency
requirement
Pillar I requirement
446,750
8.0
445,843
8.0
Credit risk
112,232
2.0
120,061
2.2
Market
risk 26,309
0.5
22,404
0.4
Operational risk
15,769
0.3
15,646
0.3
Other risk
11,501
0.2
12,256
0.2
Capital and solvency requirement
612,561
11.0
616,210
11.1
The BANK of Greenland has published further details of the
calculated solvency requirement in a report on its website
http://www.banken.gl/report/
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 Q2, the Bank had an LCR of 260.9% and thereby
fulfils the LCR requirement of at least 100%.
The Bank’s required funding is based solely on deposits.
Quarterly Report
Q1 – Q3 2024
Management’s Review
9
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. It must be noted that
publicly-owned enterprises account for 36% points of the sum
of large exposures.
The property exposure amounts to 19.8%. 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 stabilising
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
660 at the end of September 2024, the price of the BANK of
Greenland’s share has increased since 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 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 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 in 2024,
but with lower growth than in the preceding two years. It can
be expected that up to the end of 2024 lending may decline
slightly from the level at the end of Q3 2024. Deposits are
expected to be at the level of or slightly below the level at the
end of Q3 2024.
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.
The Supervisory Diamond
Q3 2024
Limit
Sum of large exposures
152,6%
< 175%
Property exposure
19,8%
< 25%
Growth in lending
7,40%
< 20%
Liquidity
-benchmark 235,8%
> 100%
Quarterly Report
Q1 – Q3 2024
Management’s Review
10
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.
In the stock exchange announcement of 22 October 2024, the
forecast profit for the year before tax was adjusted upwards to
a range of DKK 225-250 million, which is maintained.
Quarterly Report
Q1 – Q3 2024
Statement by the Management
11
The Board of Directors and Executive Management have today
considered and approved the interim report for the period
from 1 January to 30 September 2024, for the public limited
liability company, GrønlandsBANKEN, aktieselskab.
The interim report was prepared in accordance with the
Danish Financial Business Act, and the Management’s Review
was drawn up in accordance with the Danish Financial Business
Act. The interim report is furthermore prepared in accordance
with additional Danish disclosure requirements for listed
financial companies.
It is our opinion that the interim report gives a true and fair
view of the Bank's assets, liabilities and financial position at 30
September 2024, and of the result of the Bank's activities for
the first three quarters of 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.
Statement by the Management
Nuuk, 6 November 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
Quarterly Report
Q1 – Q3 2024
Statement by the Management
12
Quarterly Report Q1 – Q3 2024
Income Statement and Statement of Comprehensive Income
13
Income Statement and Statement of Comprehensive
Income
DKK 1,000
Notes
Q1 - Q3 2024
Full year 2023
Q1 - Q3 2023
3
Interest income
363,633
417,162
298,832
4
Interest expenses
89,539
87,468
61,143
Net interest income
274,094
329,694
237,689
Share dividend, etc.
8,859
2,155
2,155
5
Fees and commission income
73,091
103,932
75,510
Fees paid and commission expenses
172
769
322
Net interest and fee income
355,872
435,012
315,032
6
Value adjustments
22,574
40,058
19,809
Other operating income
3,972
5,803
4,456
7
Staff and administration expenses
163,922
211,166
152,100
Depreciation and impairment of tangible assets
6,711
8,158
6,070
Other operating expenses
3,042
2,815
2,050
16
Write-downs on loans and receivables, etc.
15,164
14,160
8,253
Profit before tax
193,579
244,574
170,824
8
Tax
23,645
52,179
33,706
Profit for the period
169,934
192,395
137,118
COMPREHENSIVE INCOME
Profit for the period
169,934
192,395
137,118
Other comprehensive income:
Value adjustment of properties
4,555
5,643
4,183
Value adjustment of defined-benefit severance/pension scheme
0
-96
0
Tax on value adjustment of properties
-1,139
-1,411
-1,046
Other comprehensive income
3,416
4,136
3,137
Comprehensive income for the period
173,350
196,531
140,255
Quarterly Report Q1 – Q3 2024
Balance Sheet
14
Balance Sheet
DKK 1,000
Notes
Assets
30 September
2024
31 December
2023
30 September
2023
Cash balance and demand deposits with central banks
1,686,999
1,552,747
1,484,522
9
Receivables from credit institutions and central banks
115,905
120,150
108,386
16
Loans and other receivables at amortised cost
5,016,899
4,812,975
4,672,382
10
Bonds at fair value
1,616,182
1,303,120
1,279,636
Shares, etc.
146,767
135,614
132,517
11
Assets connected to pool schemes
582,542
513,822
439,494
Land and buildings in total, domicile properties
310,891
298,142
297,153
-
Domicile properties 310,891
298,142
297,153
Other tangible assets
8,182
6,781
6,363
Other
assets 96,908
93,202
98,002
Accruals and deferred income
5,491
4,428
5,124
Total assets
9,586,766
8,840,981
8,523,579
Liabilities
Liabilities to credit institutions and central banks
18,117
22,105
17,952
12
Deposits and other liabilities
6,932,155
6,413,469
6,289,006
Deposits in pool schemes
582,542
513,822
439,494
13
Issued bonds at amortised cost
174,215
173,969
74,668
Current tax liabilities
46,632
11
61,069
Other liabilities
89,764
63,274
69,852
Prepayments and deferred expenses
2,480
5,451
2,681
Total debt
7,845,905
7,192,101
6,954,722
Provisions for pensions and similar obligations
2,740
2,506
2,322
Provisions for deferred tax
61,151
84,762
59,172
Provisions for losses on guarantees
11,262
9,733
10,801
Other provisions
8,280
8,427
9,427
Total provisions
83,433
105,428
81,722
14
Subordinated debt
103,955
64,329
64,288
Total
subordinated debt 103,955
64,329
64,288
Equity
15
Share capital
180,000
180,000
180,000
Revaluation reserves 69,299
65,883
64,788
Retained earnings
1,304,174
1,134,240
1,178,059
Proposed dividend
0
99,000
0
Total equity
1,553,473
1,479,123
1,422,847
Total liabilities
9,586,766
8,840,981
8,523,579
1
Accounting policies applied
2
Accounting estimates
17
Contingent liabilities
18
Capital conditions and solvency
Quarterly Report Q1 – Q3 2024
Statement of Changes in Equity
15
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
3,137
0
0
3,137
Profit for the period
0
0 137,118
0
137,118
Equity, 30 September 2023
180,000
64,788
1,178,059
0
1,422,847
Other comprehensive income
0
1,095 -96
0
999
Profit for the period
0
0 -43,723
99,000
55,277
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
3,416 0
0
3,416
Profit for the
period 0
0 169,934
0
169,934
Equity, 30 September 2024
180,000
69,299 1,304,174
0
1,553,473
Quarterly Report Q1 – Q3 2024
Statement of Changes in Equity
16
Quarterly Report Q1 – Q3 2024
17
1. Accounting policies applied etc. 18
2. Significant accounting estimates 18
3. Interest income 19
4. Interest expenses 19
5. Fee and commission income 19
6. Value adjustments 19
7. Staff and administration expenses 20
8. Tax 20
9. Amounts receivable from credit institutions and central banks 20
10. Bonds 20
11. Assets connected to pool schemes 21
12. Deposits 21
13. Issued bonds at amortised cost 21
14. Subordinated debt 22
15. Share capital 22
16. Loans 22
17. Contingent liabilities 26
18. Capital conditions and solvency 26
Overview of Notes
Quarterly Report Q1 – Q3 2024
Notes to the Quarterly Report
18
The Quarterly 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
quarterly 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
quarterly 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 – Q3 2024
Notes to the Quarterly Report
19
DKK 1,000
Q1 –
Q3
2024
Full year
2023
Q1 –
Q3
2023
3. Interest income
Lending and other receivables
287,630
336,767
242,965
Bonds
28,561
29,770
21,221
Foreign exchange, interest rate, equity, commodity and other contracts, as
well as derivative financial
instruments 791
1,177
886
Total interest income
363,633
417,162
298,832
4. Interest expenses
Credit institutions and central banks
106
151
118
Deposits and other liabilities
89,433
87,256
61,025
Issued Bonds
0
61
0
Total interest expenses
89,539
87,468
61,143
5. Fee and commission income
Securities and securities accounts
2,081
7,780
2,267
Payment settlement
27,498
37,456
27,968
Loan transaction fees
2,864
4,968
3,903
Guarantee commission
22,934
31,134
23,790
Other fees and commission
17,714
22,594
17,582
Total fee and commission income
73,091
103,932
75,510
6. Value adjustments
Lending at fair value
892
1,983
347
Bonds
15,885
23,654
8,233
Shares
2,139
10,178
6,896
Currency
4,549
6,253
4,764
Foreign exchange, interest rate, equity, commodities and other contracts, as
well as derivative financial instruments
-891
-2,010
-431
Assets connected to pool schemes
55,532
42,371
20,157
Deposits in pool schemes
-55,532
-42,371
-20,157
Total value adjustments
22,574
40,058
19,809
Quarterly Report Q1 – Q3 2024
Notes to the Quarterly Report
20
7. Staff and administration expenses
Staff expenses
Salaries 74,352
93,862
66,601
Other staff expenses 2,297
3,068
2,082
Pensions 9,466
11,613
8,519
Social security expenses 233
569
412
In total 86,348
109,112
77,614
Other administration expenses
77,574
102,054
74,486
Average number of FTEs
153.0
143.5
141.4
Of which salaries and remuneration to the Board of Directors and the
Executive Management
4,901
6,345
4,792
Six other employees (Q2 2023: 5 employees) whose activities have a
significant influence on the Bank’s risk profile:
Salaries including free car and other benefits
5,879
7,373
4,722
8. Tax
25
-% of the profit before tax 48,395
61,144
42,706
Discount for dividend tax paid
-1,982
-498
-498
6
-%-supplement 0
0
0
Total tax on ordinary profit
46,413
60,646
42,208
Paid dividend tax
1,982
498
498
Other changes
0
35
0
Taxation value of dividend paid
-24,750
-9,000
-9,000
Tax in total
23,645
52,179
33,706
Deferred tax
1,139
16,225
1,046
Taxation value of dividend paid
-24,750
0
-9,000
Tax to be paid
47,256
35,954
41,660
No company tax was paid in the period.
9. Amounts receivable from credit institutions and central banks
Receivables from credit institutions 115,905
120,150
108,386
Total
amounts receivable 115,905
120,150
108,386
10. Bonds
Of the bond portfolio, a nominal amount of TDKK 50,000 is pledged as collateral for accounts with Danmarks Nationalbank.
DKK 1,000
Q1 – Q3
2024
Full year
2023
Q1 – Q3
2023
Quarterly Report Q1 – Q3 2024
Notes to the Quarterly Report
21
11. Assets connected to pool schemes
Investment associations
582,526
513,734
439,468
Non
-invested funds 16
88
26
Total
582,542
513,822
439,494
12. Deposits
On demand
5,613,168
5,265,508
5,595,539
On terms of notice
1,017,929
858,360
407,021
Special deposit conditions
301,058
289,601
286,446
Total deposits
6,932,155
6,413,469
6,289,006
13. Issued bonds at amortised cost
Bond issue
174,215
173,969
74,668
Total
174,215
173,969
74,668
Loan raised as Senior
Non-Preferred, nominally 50,000
50,000
50,000
The loan was raised as Senior Non
-Preferred on 27 October 2021 and falls
due for full redemption on 27 October 2026. The Bank has the option of
early redemption as from 27 October 2025.
Loan raised as Senior Non
-Preferred, nominally 25,000
25,000
25,000
The loan was raised as Senior Non
-Preferred on 2 September 2022 and falls
due for full redemption on 2 September 2027. The Bank has the option of
early redemption as from 2 September 2026.
Loan raised as Senior Non
-Preferred, nominally 100,000
100,000
0
The loan was raised as Senior Non
-Preferred on 1 December 2023 and falls
due for full redemption on 1 December 2030. The Bank has the option of
early redemption as from 1 December 2027.
DKK 1,000
Q1 – Q3
2024
Full year
2023
Q1 – Q3
2023
Quarterly Report Q1 – Q3 2024
Notes to the Quarterly Report
22
14. Subordinated debt
Capital certificate as below
103,955
64,329
64,288
In total
103,955
64,329
64,288
Subordinated debt included in the capital base according to CRR
103,955
64,329
64,288
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
40,000
Interest rate, floa
ting rate (CIBOR 6 with an addition of 400bp.) 7.827%
8.113%
7.800%
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
-
-
Interest rate, floa
ting rate (CIBOR 6 with an addition of 325bp.) 6.633%
-
-
The loan was raised on 12 September 2024 and falls due for full redemption
on 12 September 2034. The Bank has the option of early redemption as
from 12 September 2029.
15. Share capital
Share capital consists of 1,800,000 shares of DKK 100.
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 9,398
16,292
11,637
Reversal of write
-downs concerning redeemed facilities -16,061
-16,688
-12,154
Net write
-downs during the period as a consequence of changes in the
credit risk
22,359
14,998
9,501
Losses without preceding write
-downs 184
158
88
Received for claims previously written off
-716
-600
-819
Recognized in the statement of income
15,164
14,160
8,253
DKK 1,000
Q1 – Q3
2024
Full year
2023
Q1 – Q3
2023
Quarterly Report Q1 – Q3 2024
Notes to the Quarterly Report
23
DKK 1,000
Stage 1 Stage 2
Stage 3
Total
Write-downs on loans
30.09.2024
Start of the period
27,301 78,003
90,562
195,866
New write
-downs concerning new facilities during the
year
1,510 5,287
2,385
9,182
Reversal of write
-downs concerning redeemed facilities -1,720 -5,756
-6,075
-13,551
Change in write
-downs at the beginning of the year –
transfer to stage 1
10,805
-9,119
-1,686
0
Change in
write-downs at the beginning of the year –
transfer to stage 2
-755
5,078
-4,323
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
-16
-4,117
4,133
0
Net write
-downs as a consequence of changes in the
credit risk
-22,683
11,257
29,839
18,413
Previously written down, now finally lost
0 0
-971
-971
Interest on written
-down facilities 0 0
3,633
3,633
Write
-downs in total 14,442 80,633
117,497
212,572
Write-downs on guarantees
30.09.2024
Start of the
period 1,096 2,695
5,942
9,733
New write
-downs concerning new facilities during the
year
66 126
0
192
Reversal of write
-downs concerning redeemed facilities -1 -3
-16
-20
Change in write
-downs at the beginning of the year –
transfer to stage 1
254 -86
-168
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-24 3,093
-3,069
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
-580 -4,374
6,311
1,357
Write
-downs in total 811 1,258
9,193
11,262
Write-downs on non-utilised drawing rights
30.09.2024
Start of the period
345 517
1,847
2,709
New write
-downs concerning new facilities during the
year
18 5
1
24
Reversal of write
-downs concerning redeemed facilities -226 -487
-1,777
-2,490
Change in write
-downs at the beginning of the year –
transfer to stage 1
222
-126
-96
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-7
83
-76
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
145
951
1,493
2,589
Write
-downs in total 497 943
1,392
2,832
Quarterly Report Q1 – Q3 2024
Notes to the Quarterly Report
24
DKK 1,000
Stage 1 Stage 2
Stage 3
Total
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
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
Quarterly Report Q1 – Q3 2024
Notes to the Quarterly Report
25
DKK 1,000
Stage 1 Stage 2
Stage 3
Total
Write-downs on loans
30.09.2023
Start of the
period 28,826 64,706
86,477
180,009
New write
-downs concerning new facilities during the
year
2,952 6,559
1,227
10,738
Reversal of write
-downs concerning redeemed facilities -2,638 -2,161
-6,010
-10,809
Change in write
-downs at the beginning of the year –
transfer to stage 1
7,467
-4,873
-2,594
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-1,115
6,870
-5,755
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
-115
-556
671
0
Net write
-downs as a consequence of changes in the
credit risk
-7,296
5,087
8,753
6,544
Previously written down, now finally lost
0 0
-1,002
-1,002
Interest on written
-down facilities 0 0
3,355
3,355
Write
-downs in total 28,081 75,632
85,122
188,835
Write-downs on guarantees
30.09.2023
Start of the period
1,239 1,025
5,772
8,036
New write
-downs concerning new facilities during the
year
252 191
75
518
Reversal of write
-downs concerning redeemed facilities -2 -6
-68
-76
Change in write
-downs at the beginning of the year –
transfer to stage 1
545 -37
-508
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-70 132
-62
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
-9 -48
57
0
Net write
-downs as a consequence of changes in the
credit risk
-816 27
3,112
2,323
Write
-downs in total 1,139 1,284
8,378
10,801
Write-downs on non-utilised drawing rights
30.09.2023
Start of the period
498 547
3,776
4,821
New write
-downs concerning new facilities during the
year
23 357
0
380
Reversal of write
-downs concerning redeemed facilities -95 -34
-1,140
-1,269
Change in write
-downs at the beginning of the year –
transfer to stage 1
176
-77
-99
0
Change in write
-downs at the beginning of the year –
transfer to stage 2
-8
170
-162
0
Change in write
-downs at the beginning of the year –
transfer to stage 3
-1
1
0
Net write
-downs as a consequence of changes in the
credit risk
-245
328
551
634
Write
-downs in total 349 1,290
2,927
4,566
Quarterly Report Q1 – Q3 2024
Notes to the Quarterly Report
26
DKK 1,000
Q1 – Q3
2024
Full year
2023
Q1 – Q3
2023
17. Contingent liabilities
Mortgage finance guarantees
806,376
1,042,320
1,029,567
Registration and remortgaging guarantees
126,963
182,870
238,295
Other guarantees
476,647
549,236
600,769
Guarantees, etc. in total
1,409,986
1,774,426
1,868,631
Provision balance for guarantees
11,261
9,733
10,801
Provision balance for non
-utilised credit facilities 2,832
2,709
4,566
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 withdr
awal
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 Resolution
Fund.
18. Capital conditions and solvency
Credit risk
4,581,141
4,607,677
4,525,897
CVA risk
8,253
10,267
13,714
Market risk
273,384
233,494
252,361
Operational risk
721,601
721,601
628,793
Total risk exposure
5,584,379
5,573,039
5,420,765
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
-11,250
Deduction for capital shares in the financial sector
-6,228
0
-2,666
Deductions for prudent valuation
-1,766
-1,443
-1,418
Deductions for Non
-Performing Exposures -8,832
-6,351
-5,687
Actual core capital
1,382,062
1,385,829
1,270,571
Supplementary capital
103,955
64,329
64,288
Capital base
1,486,017
1,450,158
1,297,225
Actual core capital ratio
26.6
26.0
24.6
Capital ratio
24.8
24.9
23.4
Statutory capital ratio requirements
8.0
8.0
8.0
Quarterly Report Q1 – Q3 2024
Notes to the Quarterly Report
27