The BANK of Greenland Annual Report 2013

| Source: Grønlandsbanken A/S

Robust Profits at The BANK of Greenland in 2013 – Return on Shareholders’ Equity of 15.8 % p.a.

Despite several years of financial crisis and the past two years of negative economic development in Greenland, The BANK of Greenland has, in 2013, managed to continue its consistent series of robust results. Profits for 2013 were the second best in the bank’s 46 year-long history following our all-time high profits in 2012. 

Profit on ordinary activities fell to DKr 123.5m as compared to DKr 135.5m in 2012.
The profit on ordinary activities returns 15.8 % on year-start equity after dividends. 

The BANK of Greenland proposes to the annual general meeting that the dividend for 2013 be the same as in 2012: DKr 55 per share or a total of DKr 99 million. 

In 2013, net income from interest and charges fell by just under 1 % to DKr 275.8m. This decrease must be viewed in light of an on-average lower level of loans and advances in 2013, as well as expenses associated with partial hedging of the bank’s interest risk. 

Total expenses and depreciation increased by DKr 4.6m or 3.2% to DKr 144.3m, primarily due to establishment of a new branch and branch rebuilding. 

Price adjustments on securities and foreign currency amount to DKr 4m as compared to a plus of DKr 11.2m in 2012. 

Profit before price adjustments and impairments fell to DKr 134.6m as compared to DKr 141.6m in 2012. This result falls within the range expected at the start of 2013 between DKr 125m and DKr 145m. 

Impairment on loans and advances amounts to DKr 15.2m which is a decrease of DKr 2.1m compared to 2012. The level of impairments and provisions remains moderate at 0.4 % of loans, advances and guaranties.

The solvency ratio is 21.0 as compared to 20.2 in 2012. The BANK of Greenland has calculated its individual solvency requirement to be 10.4% 


The Outlook for 2014
In anticipation of moderate increases in lending activities in 2014, The BANK of Greenland expects an increase in total income.Total expenses are expected to increase moderately.The profit before price adjustments and impairments is therefore expected to remain unchanged within the range of DKr 125 – 145m.