Q1 2026 in the BANK of Greenland
Q1 2026 in the BANK of Greenland
With a profit before tax of DKK 36.3 million for Q1, the BANK of Greenland made a favourable start to 2026. As expected, the result is affected by the declining level of interest rates during 2025, and is also below the profit of DKK 39.1 million for the same period of 2025. Core earnings amounted to DKK 37 million, compared to DKK 45 million for the previous year.
Lending has decreased by DKK 23 million since the end of 2025, amounting to DKK 4,899 million at the end of March 2026. Guarantees increased by DKK 74 million, from DKK 1,275 million at the end of 2025 to DKK 1,349 million at the end of March 2026. It was expected that the declining level of interest rates would increase the Bank’s customers’ appetite for investment, thereby a moderate growth in the Bank’s lending in 2026. A positive effect is not yet apparent, but lending is still expected to increase during the rest of the year.
Net interest and fee income decreased by DKK 2.5 million to DKK 105 million in the first three months of 2026, compared to the same period in 2025. The decrease is mainly due to the development in the level of interest rates.
Total expenses including depreciation amounted to DKK 70 million at the end of Q1 2026, compared to DKK 64 million for the same period of 2025. The increase concerns staff expenses, which rose as a consequence of collective agreement-based adjustments and an increase in the number of employees in 2025, as well as other administration expenses, where the increase can be attributed primarily to IT and card expenses. The cost increase in Q1 exceeds the expected level for the full year, so that core earnings are expected to improve from performance in Q1.
At the end of March 2026, value adjustments show a capital gain of DKK 1 million, compared to a capital gain of DKK 7.2 million for the same period of 2025. Market unrest led to negative development in the Bank’s bond portfolio. On the other hand, the Bank’s holdings of sector equities and the currency area gave positive returns.
Impairment write-downs of loans and guarantees amounted to DKK 1.7 million in Q1 2026, compared to DKK 13.4 million for the same period of 2025. The Bank sees continued satisfactory creditworthiness in the loan portfolio. In addition to the Bank’s individual impairment models, a management supplement of DKK 45.2 million has been allocated.
Solvency ratio of 27.7 and capital requirement of 10.7 %.
In the stock exchange announcement of 24 April 2026 the Bank notified that a conditional agreement had been entered into on the sale of the Bank’s ownership share in BEC Financial Technologies a.m.b.a. to Nykredit. Provided that the conditions for the fulfilment of the agreement are met, the agreement is expected to entail a significant financial effect for the Bank. For this reason, the earnings guidance for 2026 was adjusted upwards to an interval of DKK 180-205 million, which is maintained.
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