Positive developments in basic operations at The BANK of Greenland
Earnings before tax, DKr 64.4m for the first nine months of 2011 as compared to DKr 77.5m for the same period 2010 producing a return of 11.3 pct. on shareholders’ equity at the start of the period.
Profit before price adjustments and impairments increased very satisfactorily to DKr 89.251m as compared with DKr 82.152m for the first nine months of 2010.
Net income on interest and charges rose from DKr 173.994m to DKr 186.803m. Staff costs, administrative expenses and depreciation increased by DKr 5.136m to DKr 85.910m.
Other operating expenses fell to DKr 5.913m from DKr 10.252m in the same period of 2010. This item consists of payment of a commission of DKr 1.794m to Financial Stability for the issuing of Government backed bonds. Furthermore, this item consists of payments of DKr 4.119m to the Depositors’ Protection Scheme because of the bankruptcies at Amagerbanken, Fjordbank Mors and most recently, Max Bank.
During the same period of 2010, the bank incurred expenses for the Danish Bank Package I amounting to DKr 10.252m.
Price adjustments amounted to a minus of DKr 17.047m as compared to a plus of DKr 7.849m for same period 2010. DKr 15.017m of this amount stems from negative price adjustments of the bank’s holdings of Scandinotes IV Mezzanine, because of the bankruptcies at Amagerbanken, Fjordbank Mors and Max Bank.
Impairment on the bank’s loans and advances amounted to DKr 7.819m as compared with DKr 12.462m during the first nine months of 2010.
At the end of Q3 2011, The BANK of Greenland continues to maintain excesses of deposits as well as having liquidity adequace of 167.0 pct. in accordance with statutory requirements.
Profit for the whole year 2011 before price adjustments and impairment is now expected to be in the upper end of the previously announced level of DKr 95-115m as compared with DKr 108m in 2010.
