The economic downturn and significant geopolitical unrest have left their mark on the annual accounts of the country's largest bank, which received less net interest income due to significant interest rate declines in the first half of the year.
On the positive side, the item is impairments. It amounted to DKK 15.5 million compared to DKK 18.9 million the previous year, which indicates that the bank's "private and business customers in Greenland are generally in a strong financial position", as stated in a press release from the bank.
Solid customers
- Despite the global turmoil and a slight downturn in the economy, the picture among our customers remains solid. The low level of write-downs shows that both private and corporate customers are in a strong position and are handling the uncertainties with care, says Martin Kviesgaard, CEO of the Bank of Greenland, who experienced 2025 as quite extraordinary:
- We entered 2025 with expectations of a moderate economic slowdown and virtually zero growth, but the geopolitical pressure that hit from the beginning of the year changed everyone's daily life and the framework. Yet we manage to land a result at the upper end of what was expected and above the level from before the high-interest years. We are very satisfied with that, and it says something about the robustness of our customers and the Bank of Greenland.
The lower result means that the bank's shareholders must expect a smaller dividend, which will be DKK 80 per share compared to DKK 100 the year before. When the shareholders have got their money, the bank's solvency ratio will be 27.8 compared to 26.9 the previous year.
It is reported that the balance sheet total sets a record with 10.9 billion kroner, which is due to increasing deposits and a positive development in the pension area. Deposits increased by 700 million kroner, which corresponds to an increase of 10 percent. In contrast, lending overall fell by 109 million kroner over the year, which is explained by ordinary repayment of major construction financing in the 4th quarter.
Future prospects
Regarding the future, Martin Kviesgaard predicts a greater investment appetite among private and business customers.
- We are looking into a year where interest rates are expected to be close to unchanged. This could increase investment appetite, both among private customers and businesses. At the same time, we must acknowledge that the geopolitical situation is still affecting, but we immediately assess that the Greenlandic economy will benefit from investments from Denmark and other countries, the bank director states.
The bank's expectation for the year's profit before tax in 2026 is estimated to be between 145 and 175 million kroner, which corresponds to the latest announcement from 9 December.
