The Bank of Greenland Reports Pre-Tax Profit Decline
In a year marked by economic headwinds and geopolitical uncertainty, the Bank of Greenland has reported a pre-tax profit of DKK 181.4 million for 2025, a decrease of DKK 64.3 million from the previous year. While this decline may cause some concern among shareholders, the bank’s management has characterized the outcome as satisfactory.
The bank’s annual results reflect the pressures of reduced net interest income, primarily due to significant interest rate declines during the first half of the year.
A Reflection on Economic Conditions
Despite these challenges, the news isn’t entirely bleak. The bank recorded write-downs totalling DKK 15.5 million, a decline from DKK 18.9 million the year prior. This reduction indicates a resilient customer base, with the bank’s press release highlighting that both private and business clients throughout Greenland are maintaining their financial strength.
Martin Kviesgaard, CEO of the Bank of Greenland, expressed optimism about the bank’s performance amidst external challenges. “Even in the face of global unrest and a slight economic downturn, our relationships with customers remain solid. The low level of write-downs reflects their ability to navigate uncertainties effectively,” he noted. Kviesgaard described 2025 as extraordinary, emphasizing that initial expectations of a modest economic slowdown were quickly overshadowed by geopolitical pressures.
“We managed to deliver results at the upper end of what we anticipated, surpassing figures from the years of elevated interest rates. We take pride in this, as it speaks volumes about the resilience of our customers and the strength of the Bank of Greenland,” he added.
Revenue and Shareholder Dividends
As a result of the profit decline, shareholders will be receiving a reduced dividend of DKK 80 per share, down from DKK 100 the previous year. However, after accounting for dividends, the bank’s solvency ratio has improved slightly to 27.8, compared to 26.9 in 2024.
In terms of growth, the bank has reached a record balance sheet total of DKK 10.9 billion, driven by an influx of deposits, which rose by DKK 700 million, or 10 percent. Conversely, total lending decreased by DKK 109 million, largely attributed to regular repayments of significant construction financing in the fourth quarter.
Looking Ahead
Looking toward the future, Kviesgaard remains hopeful, citing a potential increase in investment activity among private and business customers as interest rates stabilize. “We anticipate a year where interest rates are likely to hold steady, which could enhance the appetite for investment across the board. While we must remain cognizant of ongoing geopolitical challenges, we believe that the Greenlandic economy stands to gain from increased investments from Denmark and other nations,” he stated.
For 2026, the bank projects a pre-tax profit ranging between DKK 145 and 175 million, reaffirming their ongoing commitment to stability and growth in uncertain times.