GrønlandsBANKEN (GRLA) investor relations material

Executive summary

• Profit before tax for Q1 2026 was DKK 36.3 million, down from DKK 39.1 million in Q1 2025, impacted by lower interest rates, higher costs, and geopolitical pressures.

• Lending stood at DKK 4.9 billion, with a decrease of DKK 23 million since year-end 2025, while deposits increased to DKK 8.4 billion, reflecting a 17% year-over-year rise and growing market share.

• Net interest and fee income was DKK 105.4 million, slightly below the previous year due to falling interest rates.

• Operating expenses rose to DKK 70 million, mainly due to wage adjustments, staffing increases, and IT costs.

• Core earnings were DKK 37 million, compared to DKK 45 million a year earlier.

Financial highlights

• Net interest and fee income declined year-over-year to DKK 105.4 million from DKK 108.0 million.

• Operating expenses increased to DKK 70 million from DKK 64.4 million in Q1 2025.

• Pre-tax profit was DKK 36.3 million, down from DKK 39.1 million in Q1 2025.

• Deposits rose by DKK 561 million year-over-year, while lending decreased by DKK 23 million since year-end 2025.

• Equity stood at DKK 1.52 billion after dividend distribution.

Outlook and guidance

• Full-year pre-tax profit expected between DKK 180–205 million, conditional on the sale of BEC to Nykredit.

• Moderate lending growth and lower net interest income anticipated due to falling rates.

• Private investments expected to rise slightly, with strong tourism demand supporting growth.

• Costs are expected to remain at 2025 levels, with no further staff increases planned.

• Core earnings are expected to decrease slightly in 2026 as lower interest rates take full effect.