GrønlandsBANKEN (GRLA) Q2 2024 earnings summary

Executive summary

• Profit before tax rose to DKK 120.1 million in H1 2024, up from DKK 103.0 million in H1 2023, driven by higher lending and net interest income.

• Lending increased by DKK 284 million since end-2023, reaching DKK 5,097 million; deposits rose to DKK 6.6 billion.

• Net interest and fee income grew by DKK 38.4 million year-over-year to DKK 242.4 million.

• Expenses, including depreciation, increased to DKK 117.5 million, mainly due to staff and IT costs.

• Return on equity before tax was 8.1% for the period; solvency ratio stood at 25.9%.

Financial highlights

• Net interest income for H1 2024 was DKK 184.0 million, up 22% year-over-year.

• Profit for the period after tax was DKK 114.9 million, compared to DKK 86.2 million in H1 2023.

• Value adjustments contributed DKK 3.9 million, down from DKK 11.0 million in H1 2023.

• Write-downs on loans and receivables increased to DKK 11.3 million from DKK 6.3 million year-over-year.

• Core capital ratio was 24.7%; liquidity coverage ratio at 234.4%.

Outlook and guidance

• Full-year 2024 profit before tax forecast remains at DKK 200–240 million, as updated in July.

• Lending expected to grow moderately in 2024, with possible slight decline in H2; deposits to remain stable or increase slightly.

• Total core income projected to rise, driven by lending and interest rates; expenses to increase, mainly due to IT and staff.

• Write-downs on loans expected to stay low but normalized; capital gains anticipated from securities and sector equities.