The BANK of Greenland's Annual Report 2024: A Year of Growth and Resilience

The BANK of Greenland has released its Annual Report for 2024, highlighting a year of significant growth and resilience in the face of changing macroeconomic conditions. The report, published on March 3, 2025, provides valuable insights into the bank's performance, outlook, and strategic initiatives.



Key Financial Highlights

* Profit before tax: DKK 245.7 million (2024) vs. DKK 244.6 million (2023)
* Return on opening equity before tax and dividend: 17.5% (2024) vs. 18.9% (2023)
* Profit before value adjustments and write-downs: DKK 236 million (2024) vs. DKK 218.7 million (2023)
* Net interest and fee income: DKK 470.3 million (2024) vs. DKK 434.9 million (2023)
* Value adjustment of securities and currencies: Gain of DKK 28.6 million (2024) vs. Gain of DKK 40.1 million (2023)
* Impairment of loans etc.: DKK 18.9 million (2024) vs. DKK 14.2 million (2023)
* Lending: DKK 5,031 million (2024) vs. DKK 4,813 million (2023)
* Guarantee volume: DKK 1,423 million (2024) vs. DKK 1,774 million (2023)
* Capital ratio: 26.9% (2024) vs. 26.7% (2023)
* Solvency requirement: 11.1% (2024) vs. 11.0% (2023)

Outlook for 2025

The BANK of Greenland expects a profit before tax of DKK 150-185 million for 2025, in line with its revised guidance from October 2024 and the expectations at the start of the year. The outlook is influenced by several factors, including:

* Falling short-term yields as inflation comes under control in Europe, reducing costs and increasing customers' investment appetite.
* Uncertainty in capital markets affecting value adjustments, with losses and write-downs expected to remain at a low level.
* The focus on Greenland, which escalated at the beginning of 2025, potentially affecting economic development and framework conditions in the long term.



Capital Ratio and Solvency Requirement

The BANK of Greenland's capital ratio of 26.9% and solvency requirement of 11.1% in 2024 indicate a strong financial position and robust risk management capabilities. These figures compare favorably to industry benchmarks, such as the Basel III requirements for banks.

Lending and Guarantee Volume Trends

The increase in lending and the decrease in guarantee volume for the BANK of Greenland in 2024 were driven by strong economic conditions, customer demand, and successful expansion strategies. Looking ahead, the Bank expects that short-term yields will fall in 2025, which could further drive lending growth. The decrease in guarantee volume was primarily due to a change in the guarantee scheme with DLR Kredit in 2024, and the Bank expects that the focus on Greenland will not have any material significance in the short term in 2025.

In conclusion, the BANK of Greenland's Annual Report 2024 demonstrates a year of growth and resilience, with a strong financial position and positive outlook for 2025. The Bank's ability to navigate changing macroeconomic conditions and maintain a robust capital base positions it well for continued success in the future.