GrønlandsBANKEN (GRLA) Q1 2025 earnings summary

Executive summary

• Profit before tax for Q1 2025 was DKK 39.1 million, down from DKK 61.8 million in Q1 2024, reflecting lower interest rates and higher expenses.

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

• 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.

• Total expenses including depreciation rose to DKK 64.4 million, up from DKK 59.2 million in Q1 2024, driven by staff and IT costs.

• Value adjustments delivered a capital gain of DKK 7.2 million, up from DKK 5.4 million in Q1 2024.

Financial highlights

• Net interest and fee income: DKK 107.96 million (Q1 2025), DKK 119.63 million (Q1 2024).

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

• Lending: DKK 5,125 million; Deposits: DKK 7,207 million; Equity: DKK 1,489 million at March 2025.

• Return on equity before tax: 2.5% (Q1 2025) vs. 4.2% (Q1 2024).

• Core capital ratio: 23.7%; Capital ratio: 25.5%.

• Write-downs on loans and receivables: DKK 13.4 million (Q1 2025), DKK 5.3 million (Q1 2024).

• Profit per share after tax: DKK 41.3 (Q1 2025), DKK 34.3 (Q1 2024).

Outlook and guidance

• Profit before tax for 2025 is forecasted at 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.