GrønlandsBANKEN (GRLA) investor relations material

Executive summary

• Profit before tax for 2025 was DKK 181.4 million, down from DKK 245.7 million in 2024, but at the high end of revised guidance and above pre-2023/24 levels despite severe geopolitical unrest and economic slowdown in Greenland.

• Core earnings fell to DKK 177.9 million from DKK 236.0 million year-over-year, mainly due to lower net interest income and declining lending.

• Deposits increased by over DKK 700 million (10%), while lending declined by DKK 109 million, primarily due to the redemption of major construction financing projects.

• Fee and commission income rose, especially in securities and pensions, while costs increased due to staff and IT investments.

Financial highlights

• Net interest income decreased by DKK 44.6 million (12%) to DKK 315.3 million, reflecting a 1% drop in market interest rates in H1 2025.

• Value adjustments contributed DKK 19.0 million, down from DKK 28.6 million in 2024, with lower bond gains but positive sector equities and currency results.

• Write-downs and provisions were DKK 15.5 million, lower than DKK 18.9 million in 2024, with accumulated managerial additions of DKK 41.1 million for cyclical and ESG risks.

• Total assets reached a record DKK 10,974 million; equity stood at DKK 1,599 million.

• Dividend proposed at DKK 80 per share (DKK 144 million total), down from DKK 100 per share in 2024.

Outlook and guidance

• Profit before tax for 2026 is expected in the range of DKK 145-175 million, unchanged from previous guidance.

• Core earnings are expected to decrease slightly in 2026 due to the full-year effect of lower interest rates.

• Costs are projected to rise moderately, mainly in staff and IT, with no further staff increases planned.

• Lending is expected to develop positively towards year-end 2026, while deposits may remain stable or decrease slightly.