Satisfactory Q1 for the BANK of Greenland
The BANK of Greenland’s profit before tax amounts to DKK 29.6 million for Q1 2022, compared to DKK 40.2 million for Q1 2021.
The profit before value adjustments and write-downs is satisfactory at DKK 40.9 million, compared to DKK 37.1 million for the previous year.
Lending has increased by DKK 121 million since the end of 2021, amounting to DKK 3,905 million at the end of Q1. Guarantees increased by DKK 5 million from DKK 1,781 million at the end of 2021 to DKK 1,786 million at the end of Q1 2022.
Net interest and fee income increased by DKK 2.4 million to DKK 88.5 million in Q1 2022 compared to the same period in 2021. The increase is due, among other things, to the improvement in negative deposit interest rates and fees and commission from the pension and investment area.
Total expenses including depreciation amounted to DKK 49.2 million at the end of Q1 2022, compared to DKK 49.3 million for the same period in 2021.
The increase in interest rates and the general market turmoil meant that value adjustments at the end of March 2022 resulted in a capital loss of DKK 10.7 million, compared to a capital gain of DKK 3.1 million for the same period in 2021. The Bank’s sector shareholdings and currency area developed positively in Q1, while the Bank’s bond holdings generated capital losses
Impairment write-downs on loans and guarantees decreased by DKK 0.2 million from Q1 2021 and amounted to a modest DKK 0.7 million for Q1 2022. The Bank sees continued satisfactory creditworthiness in the loan portfolio.
Capital ratio and core capital ratio of 24.4 and an individual capital requirement of 10.7%.
In the Annual Report for 2021, the forecast for the year’s profit before tax was estimated at an interval of DKK 120-140 million, which remains unchanged.
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