The BANK of Greenland's Annual Report 2024

Core Viewpoint - The Bank of Greenland reported a profit before tax of DKK 245.7 million for 2024, slightly up from DKK 244.6 million in 2023, exceeding initial expectations for the year [1][2]. Financial Performance - Profit before value adjustments and write-downs increased to DKK 236 million in 2024 from DKK 218.7 million in 2023 [2]. - Net interest and fee income rose by DKK 35.3 million to DKK 470.3 million compared to the previous year [2]. - The return on opening equity before tax and dividend decreased to 17.5% from 18.9% in 2023 [1]. Lending and Impairments - Lending grew by DKK 218 million, reaching DKK 5,031 million, marking the highest level in the Bank's history [3]. - Impairment of loans increased to DKK 18.9 million, up DKK 4.7 million from 2023 [3]. Capital and Solvency - The Bank's capital ratio stood at 26.9% at the end of 2024, with an individual solvency requirement calculated at 11.1% [4]. Outlook for 2025 - The Bank anticipates a profit before tax of DKK 150-185 million for 2025, maintaining the same expectations as previously communicated [8]. - Short-term yields are expected to decline as inflation stabilizes in Europe, which may negatively impact core earnings [5]. - Despite uncertainties in capital markets, losses and write-downs are expected to remain low, with current impairment levels deemed sufficient to address risks [6]. Economic Context - Increased focus on Greenland may influence economic development and operational conditions, but no significant short-term impact is anticipated for 2025 [7].