GrønlandsBANKEN (GRLA) Q3 2025 earnings summary

Executive summary

• Profit before tax for Q1–Q3 2025 was DKK 132.5 million, down from DKK 193.6 million year-over-year, mainly due to lower interest rates and increased costs.

• Lending increased by DKK 138 million to DKK 5,169 million, while guarantees decreased by DKK 114 million to DKK 1,309 million since end-2024.

• Net interest and fee income fell by DKK 36.0 million to DKK 319.9 million, primarily due to lower market interest rates, partially offset by higher business volume.

• Total expenses including depreciation rose to DKK 191.4 million, up from DKK 173.8 million, driven by staff and IT costs.

• Value adjustments yielded a capital gain of DKK 13.6 million, down from DKK 22.6 million year-over-year.

• Impairment write-downs on loans and guarantees were DKK 14.6 million, slightly lower than DKK 15.2 million in 2024.

Financial highlights

• Net interest income for Q1–Q3 2025 was DKK 239.5 million, down 12% from DKK 274.1 million year-over-year.

• Fee and commission income decreased by DKK 2.5 million, mainly due to lower payment settlement activity and guarantees.

• Staff and administration expenses increased by DKK 18.1 million to DKK 182.0 million, mainly from staff and IT investments.

• Profit before value adjustments and write-downs was DKK 133.4 million, compared to DKK 186.2 million in 2024.

• Deposits at end-September 2025 were DKK 6,902 million, down 4% from end-2024.

• Equity decreased to DKK 1,561 million after dividend payment and profit recognition.

Outlook and guidance

• Full-year 2025 profit before tax is now expected at DKK 165–185 million, up from previous guidance of DKK 150–185 million.

• Lending is expected to show moderate decline towards year-end, while deposits are expected to remain stable or slightly below end-2024 levels.

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

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