Grønlandsbanken A/S

The BANK of Greenland's Annual Report 2025

The BANK of Greenland's Annual Report 2025

Satisfactory performance
The BANK of Greenland achieved a profit before tax for 2025 of DKK 181.4 million, compared with DKK 245.7 million in 2024. The result is at the level of the revised guidance from January 2026 of a profit at the level of DKK 180-182 million and is at the high end of the expectations at the start of the year of a profit of DKK 150-185 million.

Return on opening equity before tax and dividend was 12.4 % compared to 17.5 % in 2024.

The Bank recommends to the Annual General Meeting that the dividend payment is DKK 80 per share.

The profit before value adjustments and write-downs is thereby, as expected, lower than in 2024, at TDKK 177,904, compared with TDKK 236,030 in 2024.

Value adjustment of securities and currencies resulted in a gain of TDKK 19,024, compared with a gain of TDKK 28,578 in 2024.

Impairment write-downs on loans etc. amount to TDKK 15,539 in 2025, which is TDKK 3,370 lower than in 2024.

Lending increased in Q1-Q3 2025 but fell in Q4. Overall, lending declined by DKK 109 million in 2025, and now totals DKK 4,922 million. The decrease in lending is due to ordinary redemption of major construction financing projects. Deposits have increased by DKK 721 million and amount to DKK 7,784 million.

The BANK of Greenland's capital ratio amounted to 27.8 at end of 2025, and the Bank has calculated the individual solvency requirement at 10.9%.

Outlook for 2026
It is expected that short-term yields will be close to unchanged in 2026, which will increase the Bank's customers' investment appetite. The declining interest rates in 2025 will, however, have a negative impact on core earnings for 2026.

The Bank's total costs are expected to increase moderately in 2026. This applies to both staff expenses and administration expenses.

Uncertainty in the capital markets will affect the Bank’s value adjustments. We nonetheless expect losses and write-downs to remain at a low level, and derived risks related to inflation and cyclical uncertainty in 2026 are assessed to be addressed by the current level of impairment write-downs.

The massive geopolitical pressure on Greenland, which escalated at the beginning of 2026, can affect the economic development and the framework conditions in Greenland in both the short and longer term. However, the BANK of Greenland has no basis to assess that this will be of any material significance in the short term in 2026. The Bank therefore bases the assessment primarily on the national macroeconomic conditions.

The Bank expects a profit before tax of DKK 145-175 million for 2026. There is thus no change in the expected profit for the year, which is in line with the notification in the company announcement of 9 December 2025.

Attachments

• 02.Årsrapport 2025_UK
• 02.Årsrapport 2025_UK