GrønlandsBANKEN (GRLA) Q2 2025 earnings summary

Executive summary

• Profit before tax for H1 2025 was DKK 84.4 million, down from DKK 120.1 million in H1 2024, mainly due to lower interest rates and increased costs.

• Lending increased by DKK 138 million to DKK 5,169 million, while deposits rose to DKK 7,183 million.

• Net interest and fee income fell by DKK 22.7 million year-over-year to DKK 219.6 million.

• Total expenses including depreciation rose to DKK 128.4 million, driven by staff and IT costs.

• Impairment of loans and guarantees increased to DKK 14.5 million, with a management supplement of DKK 39.7 million for risk coverage.

Financial highlights

• Net interest income for H1 2025 was DKK 161.6 million, a 12% decrease from H1 2024.

• Share dividend income increased to DKK 10 million.

• Fee and commission income decreased by DKK 1.4 million year-over-year.

• Value adjustments resulted in a capital gain of DKK 4.3 million, up from DKK 3.9 million in H1 2024.

• Profit per share after tax was DKK 46.9, down from DKK 66.7 in H1 2024.

• Return on equity before tax was 5.4% (8.1% in H1 2024); after tax, 6.9% (7.7% in H1 2024).

Outlook and guidance

• Profit before tax for 2025 is forecasted at DKK 150-185 million, unchanged from previous guidance.

• Lending is expected to grow moderately, with deposits stable or slightly above 2024 levels.

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

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