GrønlandsBANKEN (GRLA) Q3 2024 earnings summary

Executive summary

• Profit before tax for Q1–Q3 2024 reached DKK 193.6 million, up from DKK 170.8 million year-over-year, driven by higher net interest and fee income and increased lending volume.

• Lending grew by DKK 204 million since end-2023, reaching DKK 5,017 million, while deposits rose by 8% to DKK 6,932 million.

• Guarantees decreased by DKK 364 million due to a change in the DLR Kredit guarantee scheme.

• Expenses increased, mainly from staff and IT investments, but core earnings per cost krone improved to 2.07.

Financial highlights

• Net interest and fee income for Q1–Q3 2024 was DKK 355.9 million, up DKK 40.8 million year-over-year.

• Value adjustments contributed DKK 22.6 million, and profit for the period after tax was DKK 169.9 million.

• Staff and administration expenses rose to DKK 163.9 million, and write-downs on loans and receivables increased to DKK 15.2 million.

• Return on equity before tax was 12.8%, and after tax 11.2%.

• Profit per share after tax was DKK 94.4, and net book value per share was DKK 863.0.

Outlook and guidance

• Full-year 2024 profit before tax is forecasted at DKK 225–250 million, maintaining the upward revision from October.

• Lending is expected to develop positively but with lower growth than previous years; deposits may remain stable or slightly decrease by year-end.

• Total core income is expected to increase, while expenses, especially in IT and staff, are projected to rise.

• Write-downs on loans are expected to remain low but normalized.