Second best result in The BANK of Greenland in 2014 - Return on equity of 16.3% per annum
The BANK of Greenland continues the series of solid profits. The result in 2014 was the second-best in the Bank's history
Result before value adjustments and write-downs has increased to thousand DKK 148,553 against thousand DKK 134,648 in 2013.
The result thus ends up a bit higher than the Bank's expectation in October 2014, where the Bank expected a result in the high end of the previously announced interval of DKK 125 - 145 million.
Result before tax shows thousand DKK 131,433 against thousand DKK 123,501 in 2013.
The year's result before tax returns the year-start equity after dividends with 16.3%.
The BANK of Greenland recommend to the general meeting, that payment of dividends for 2014 will be as in 2013, so that DKK 55 per share will be paid or a total of DKK 99 million.
Net interest income has risen in 2014 with thousand DKK 9,798 to thousand DKK 213,865. The Bank’s investment in more bonds in the beginning of 2014 and slightly lower funding costs are the primary reason for the increase.
Fees and commission income also show an increase of thousand DKK 8,268 to thousand DKK 79,324.
The total costs and writing off are increased with thousand DKK 4,404 or 3.1% to thousand DKK 148,654. The increase is primarily on other administrative costs which have increased with thousand DKK 4,721.
Value adjustment on securities and currency represent a profit of thousand DKK 7,687 against a profit of thousand DKK 4,039 in 2013.
Write-downs on loans etc. is thousand DKK 24,807, which is an increase of thousand DKK 9,621 in relation to 2013. The increase should be seen in the light of the fact, that the Bank's management has increased management reserve of the group write-downs, in the light of the weak economic cycles.
In spite of the considerable dividend payed-out, the Bank's capital ratio and core capital percentage can be made up to 20.3%. The BANK of Greenland has made up the individual solvency requirement to 10.2% and the solvency coverage thus represents 10.1%.
The Outlook for 2015
It is The BANK of Greenland's expectations that uncertainty will remain in 2015, including uncertainty regarding developments in currencies and interest rates. Against this background, and with respect to the effects of the negative interest rate on certificates of deposit at Danmarks Nationalbank, we also are cautious in the forecast for the year with the expectation of a result before value adjustments and write-downs in the level of DKK 125 - 145 million.
