GrønlandsBANKEN (GRLA) Q1 2025 earnings summary

Executive summary

• Stable start to 2025 despite significant geopolitical uncertainty and falling interest rates, with profit before tax for Q1 2025 at DKK 39.1 million, down from DKK 61.8 million in Q1 2024.

• Lending increased by DKK 94 million since end of 2024, reaching DKK 5,125 million, while deposits rose to DKK 7,207 million.

• Dividend of DKK 100 per share (total DKK 180 million) paid on March 31, 2025, reducing equity.

• Net interest and fee income declined by DKK 11.7 million year-over-year to DKK 108.0 million, mainly due to lower interest rates.

• Operating expenses and depreciation rose to DKK 64.4 million from DKK 59.2 million year-over-year, driven by staff and IT costs.

Financial highlights

• Net interest and fee income for Q1 2025 was DKK 107.96 million, down from DKK 119.63 million in Q1 2024.

• Profit before tax: DKK 39.08 million (Q1 2025), DKK 61.79 million (Q1 2024).

• Return on equity before tax: 2.5% (Q1 2025) vs. 4.2% (Q1 2024); annualized return after dividend at 10.7%.

• Operating expenses and depreciation at DKK 64.4 million, up from DKK 59.2 million.

• Write-downs on loans and receivables: DKK 13.4 million (Q1 2025), DKK 5.3 million (Q1 2024); write-down ratio for the period: 0.2%.

Outlook and guidance

• Pre-tax profit for 2025 expected in the range of DKK 150–185 million, unchanged from previous guidance.

• Lending growth expected to be positive but more subdued than in 2024; deposits to remain stable or slightly increase.

• Total core income expected to decrease in 2025 due to lower interest rates; expenses, especially IT and staff, expected to rise.

• Impairment write-downs on loans expected to remain low but normalized.

• Positive trends anticipated in lending and deposits throughout the year.