GrønlandsBANKEN (GRLA) Q4 2024 earnings summary

Executive summary

• Achieved profit before tax of DKK 245.7 million in 2024, slightly above revised guidance and well above initial expectations for the year.

• Core operations improved to DKK 236.0 million, up from DKK 218.7 million in 2023.

• Lending reached a record DKK 5,031 million, with deposits rising by over DKK 700 million to DKK 7.1 billion.

• Net interest income increased by 8% to DKK 470.3 million, driven by high lending and higher interest rates.

• Dividend proposed at DKK 100 per share, up from DKK 55, representing 86% of profit after tax.

Financial highlights

• Net interest and fee income: DKK 470.3 million (2023: DKK 435.0 million).

• Value adjustments: DKK 28.6 million (2023: DKK 40.1 million).

• Staff and administration expenses: DKK 226.4 million (2023: DKK 211.2 million).

• Write-downs on loans and receivables: DKK 18.9 million (2023: DKK 14.2 million).

• Profit for the year: DKK 209.0 million (2023: DKK 192.4 million).

• Total assets: DKK 10,021.5 million (2023: DKK 8,841.0 million).

• Return on equity before tax: 16.1%; after tax: 13.6%.

Outlook and guidance

• Profit before tax for 2025 expected at DKK 150-185 million, reflecting anticipated lower interest rates and reduced core earnings.

• Lending growth expected to continue but at a slower pace; deposits to remain stable.

• Costs, including staff and IT, expected to rise in 2025.