The BANK of Greenland - Half Year report 2020

A first half-year marked by Covid-19

In Q1, the economic development in Greenland was subject to greater uncertainty, due to the consequences of Covid-19. Q2 brought a positive change in the risk assessment of credit and market risks, however, and the business development in the last part of Q2 showed signs of improvement.

The BANK of Greenland's profit before tax amounts to DKK 55.7 million for the first half of 2020, compared to DKK 69.4 million for the first half of 2019.

In isolated terms, the Q2 profit before tax was satisfactory at DKK 39.1 million, compared to DKK 16.6 million for Q1.

The profit before value adjustments and write-downs amounts to DKK 72.9 million, compared to DKK 71.6 million for the previous year.

Net interest and fee income of TDKK 159,435, compared to TDKK 158,894 for the same period of 2019.

Total costs and depreciation amount to TDKK 88,756, compared to TDKK 90,175 for the first half of 2019.

As at the end of June 2020, value adjustments show a capital loss of TDKK 7,330, compared to a capital gain of TDKK 2,593 for the same period of 2019.

Impairments of loans and guarantees show an increase of TDKK 5,058 from the first half of 2019, amounting to TDKK 9,845 for the first half of 2020. Impairments and provisions constitute 0.2% of the Bank's total loans and guarantees.

Capital ratio and core capital ratio of 23.3 and an individual capital requirement of 11.6%.

On 27 July 2020, the Bank revised its forecast for the year's profit before tax to the level of DKK 100-120 million. Based on the development in the first half-year, the expectations are maintained as a profit before tax at the level of DKK 100-120 million, compared to DKK 150.5 million in 2019.

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