The BANK of Greenland heightens its expectations for 2012
Earnings before tax, DKr 110.224 m for the first nine months of 2012 as compared with DKr 64.385 m for the same period 2011 producing a return on shareholders’ equity of 19.5 per cent annually after paid out dividend.
Profit before price adjustments and impairments increased very satisfactorily to DKr 106.704 m as compared with DKr 89.251 m for the first nine months of 2011.
Net income on interest and charges rose by DKr 19.609 m to DKr 206.412 m as compared with the same period of 2011.
Total expenses and depreciation rose to DKr 101.122 m as compared with DKr 93.348 m in the same period of 2011. This increase can primarily be ascribed to increasing IT expenses as well as higher staff expenses and impairments on the bank’s newly renovated branch office in Sisimiut.
Other operating expenses fell to DKr 1.683 m from DKr 5.913 m during the same period of 2011. In 2011, this item was burdened by DKr 4.119 m due to several bank failures in Denmark as well as DKr 1.794 m in commissions to the Financial Stability company.
Price adjustments amounted to a plus of DKr 12.687 m as compared with a minus of DKr 17.047 m during the first nine months of 2011.
Impairment on the bank’s loans and advances, etc. amounted to DKr 9.167 m as compared with DKr 7.819 m during the first nine months of 2011. Impairments remain at very modest levels and amount to 0.3 per cent of the bank’s total loans, advances and guarantees.
The Danish Financial Supervisory Authority performed an inspection of The BANK of Greenland in August. This inspection did not lead to any changes in the bank’s loan impairments or other valuation of assets.
At the end of Q3 2012, The BANK of Greenland continues to maintain a comfortable excess of deposits. It also has excess coverage of 183.7 per cent based on statutory requirements for liquidity.
Based on satisfactory developments, expectations for profits before price adjustments and impairments for the whole year have been increased form the previous DKr 115-125 m to the present DKr 125-135 m. The profit before price adjustments and impairments was DKr 120 m in 2011.
For the first time in 2012, The BANK of Greenland is publishing its expectations for the profit on ordinary activities: DKr 120-140 m as compared with DKr 78 m in 2011. Until now, The BANK of Greenland’s highest profit on ordinary activities was DKr 112 m in 2007.
