Q1 2025 for the BANK of Greenland
With a profit before tax of DKK 39.1 million for Q1, the BANK of Greenland made a sound start to 2025. As expected, the result is affected by the declining level of interest rates, and is also below the profit of DKK 61.8 million for the same period of 2024.
The profit before value adjustments and write-downs amounts to DKK 45.3 million, compared to DKK 61.7 million for the previous year and DKK 49.9 mill. in Q4 2024.
Lending has increased by DKK 94 million since the end of 2024, amounting to DKK 5,125 million at the end of March 2025. It was expected that Greenland's economic development would result in positive, but more subdued growth in the Bank's lending in 2025. Guarantees decreased by DKK 35 million from DKK 1,423 million at the end of 2024 to DKK 1,388 million at the end of March 2025.
Net interest and fee income decreased by DKK 11.7 million to DKK 108.0 million in the first three months of 2025, compared to the same period in 2024. The decrease is mainly due to the development in the level of interest rates.
Total expenses including depreciation amount to DKK 64.4 million at the end of Q1 2025, compared to DKK 59.2 million for the same period of 2024. The increase concerns staff expenses as a consequence of an increase due to collective agreement-based adjustments and continued investment in more employees, as well as other ad-ministration expenses, where the increase can be attributed primarily to IT expenses and further training of employees.
At the end of March 2025, value adjustments show a capital gain of DKK 7.2 million, compared to a capital gain of DKK 5.4 million for the same period of 2024. The new interest rate trends resulted in positive development in the Bank's bond holdings. The Bank's sectoral equities portfolio gave a return at the level of the previous year.
Impairment write-downs of loans and guarantees amounted to DKK 13.4 million in Q1 2025, compared to DKK 5.3 million in the same period of 2024. Despite the increase, the Bank sees continued satisfactory creditworthiness in the loan portfolio. In addition to the Bank's individual impairment models, a management supplement of DKK 38.4 million has been allocated.
Solvency ratio of 25.5 and a capital requirement of 10.6 per cent.
In the stock exchange announcement of 11 December 2024, the forecast profit before tax for 2025 was stated as a range of DKK 150-185 million, which remains unchanged.
