The BANK of Greenland's Annual Report 2023
Increase in business volume and record result
The BANK of Greenland achieved a profit before tax of DKK 244.6 million in 2023, compared to DKK 109.1 million in 2022. The result is at the level of the revised guidance in January 2024 for a result at the level of DKK 244 million, but significantly above the expectations at the start of the year of a result of DKK 130–170 million.
Return on opening equity before tax and dividend was 18.9 % compared to 9.0 % in 2022.
The Bank recommends to the Annual General Meeting that the dividend payment is DKK 55 per share.
Profit before value adjustments and write-downs amounts to MDKK 218.7, compared to MDKK 153.0 in 2022.
Net interest and fee income increased by TDKK 83,527 compared to 2022, amounting to TDKK 435,012.
For the overall year, value adjustment of securities and currencies resulted in a gain of TDKK 40,058 compared to a loss of TDKK 39,356 in 2022.
Impairment of loans, etc. amounted to TDKK 14,160 in 2023, which is TDKK 9,637 higher than in 2022.
Lending increased by 10.6% or TDKK 459,390 in 2023, to TDKK 4,812,975. At the same time, the Bank’s guarantees decreased by TDKK 159,699 to TDKK 1,774,426.
The BANK of Greenland's capital ratio amounted to 26.0 at end of 2023, and the Bank has calculated the individual solvency requirement at 11.1%.
Outlook for 2024
Greenland is affected by rising inflation, although not at the same level as in other countries, and even though inflation may rise in 2024, we still expect favourable development in the banking business.
Uncertainty in the capital markets will affect the Bank’s value adjustments. We nonetheless expect losses and write-downs to remain at a low level, and derived risks related to inflation, rising interest rates and cyclical uncertainty in 2024 are assessed to be covered by the current level of impairment write-downs.
The Bank’s expected profit before tax for the year 2024 is DKK 180-230 million. This expectation corresponds to the advice in the stock exchange announcement of 14 December 2023.
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