Grønlandsbanken

Interim / Quarterly Report • Aug 20, 2025

Untitled The Bank of Greenland CVR-no. 80050410 Notification to Nasdaq OMX Copenhagen 08/2025 Interim Report First half of 2025 Interim Report First half of 2025 1 Management’s Review 2 Interim Report in headlines 2 Financial Highlights for the first half of 2025 4 Management’s Review, first half of 2025 5 Management Statement 11 Income Statement and Statement of Comprehensive Income 13 Balance Sheet 14 Statement of Changes in Equity 15 Overview of Notes 17 Notes to the Interim Report 18 Contents Interim Report First half of 2025 Management’s Review 2 Interim Report in headlines The BANK of Greenland's profit before tax amounted to DKK 84.4 million for the first half of 2025, compared to DKK 120.1 million for the first half of 2024. The profit before value adjust- ments and write-downs is, as expected, affected by the declin- ing level of interest rates, and amounted to DKK 94.7 million, compared to DKK 127.5 million for the previous year. Lending has increased by DKK 138 million since the end of 2024, amounting to DKK 5,169 million at the end of the first half-year. It was expected that Greenland's economic develop- ment would result in positive, but more subdued growth in the Bank’s lending in 2025. Guarantees decreased by DKK 1 million from DKK 1,423 million at the end of 2024 to DKK 1,422 mil- lion at the end of the first half of 2025. Net interest and fee income decreased by DKK 22.7 million to DKK 219.6 million in the first half of 2025, compared to the same period in 2024. The decrease is primarily due to the de- velopment in market interest rates, compensated by the in- creasing business volume in the Bank. Total expenses including depreciation amounted to DKK 128.4 million at the end of the first half of 2025, compared to DKK 117.5 million for the same period in 2024. The increase concerns staff expenses as a consequence of col- lective agreement-based adjustments and continued investment in more employees, as well as other administration expenses, where the increase can be attributed primarily to IT expenses and supplementary training of employees. At the end of the first half of 2025, value adjustments showed a capital gain of DKK 4.3 million, compared to a capital gain of DKK 3.9 million for the same period in 2024. Interest rate trends resulted in positive development in the Bank’s bond holdings, while the currency area declined slightly. In isolated terms, the Bank's holdings of sector equities performed nega- tively, although sector equities yielded high dividends in 2025. Impairment of loans and guarantees amounted to DKK 14.5 million in the first half of 2025, compared to DKK 11.2 million in the first half of 2024. The Bank sees continued satisfactory creditworthiness in the loan portfolio. In addition to the Bank’s individual impairment models, a management supplement of DKK 39.7 million has been allocated. In particular, the supple- ment accommodates the risks associated with increasing infla- tion and interest rates, and greater cyclical uncertainty. In the stock exchange announcement of 11 December 2024, the forecast profit before tax for 2025 was stated as a range of DKK 150-185 million, which remains unchanged. Management’s Review The profit before tax gives a return of 11.6% p.a. on opening equity after disbursement of dividend. Loans at DKK 5.2 billion. Deposits at DKK 7.2 billion. Core earnings per krone in costs of 1.74 in the first half of 2025, compared to 1.93 in the first half of 2024. Write-downs and provisions of 0.2% for the period. Solvency ratio of 25.5 and a capital requirement of 10.5%. Interim Report First half of 2025 Management’s Review 3 Interim Report First half of 2025 Management’s Review 4 Financial Highlights for the first half of 2025 First half- year First half- year Full year First half- year First half- year First half- year 2025 2024 2024 2023 2022. 2021 Net interest and fee income 219,646 242,363 470,264 203,990 167,808 168,148 Value adjustments 4,283 3,917 28,578 10,992 -25,195 5,115 Other operating income 3,381 2,617 5,400 3,005 3,049 2,179 Staff and administration expenses 122,121 110,806 226,362 102,828 92,437 93,229 Depreciation and impairment of tangible assets 4,645 4,316 9,017 4,035 3,636 3,486 Other operating expenses 1,610 2,363 4,255 1,866 1,696 1,602 Write-downs on loans and receivables, etc. 14,520 11,272 18,909 6,279 2,112 2,331 Profit before tax 84,414 120,140 245,699 102,979 45,781 74,794 Tax -23,896 5,285 36,689 16,746 -5,893 7,882 Profit for the period 108,310 114,855 209,010 86,233 51,674 66,912 Selected balance sheet items: Lending 5,168,941 5,097,302 5,030,995 4,638,998 4,009,541 3,824,443 Deposits 7,183,322 6,553,883 7,152,807 6,062,029 5,673,324 5,879,878 Equity 1,524,274 1,497,207 1,593,622 1,370,904 1,249,277 1,200,414 Total assets 10,042,646 9,056,827 10,021,543 8,222,783 7,544,633 7,537,865 Contingent liabilities 1,422,045 1,733,133 1,422,643 1,830,345 1,972,396 1,914,893 Key figures: Capital ratio 25.5 25.9 26.9 24.0 22.8 22.7 Core capital ratio 23.2 24.7 25.1 22.9 22.8 22.7 Return on equity before tax for the period 5.4 8.1 16.0 7.7 3.6 6.3 Return on equity after tax for the period 6.9 7.7 13.6 6.4 4.1 5.6 Income per cost krone 1.6 1.9 2.0 1.9 1.5 1.7 Rate of return 1.1 1.3 2.1 1.0 0.7 0.9 Interest risk rate 0.8 0.6 0.6 1.3 1.4 1.5 Foreign exchange position 0.3 0.4 0.5 0.3 0.3 0.9 Liquidity coverage ratio 264.2 234.4 266.2 217.2 207.9 259.6 Net stable funding ratio 135.3 129.4 137.5 129.6 - - Lending plus write -downs as a ratio of deposits 68.5 74.6 67.0 74.4 68.9 65.1 Lending as a ratio of equity 3.4 3.4 3.2 3.4 3.2 3.2 Growth in lending for the period 2.7 5.9 4.5 6.6 6.0 -4.5 Sum of large exposures 136.1 151.7 136.0 166.5 164.0 163.1 Write -down ratio for the period 0.2 0.2 0.3 0.0 0.0 0.0 Accumalated write -down ratio 3.6 3.2 3.4 3.0 3.1 3.2 Profit per share after tax for the period 46.9 66.7 116.1 47.9 28.7 37.2 Net book value per share 856.8 831.8 885.3 761.6 694.0 666.9 Stock exchange quotation/net book value per share 0.9 0.8 0.8 0.8 0.9 0.9 Interim Report First half of 2025 Management’s Review 5 Management’s Review, first half of 2025 Statement of income At TDKK 161,575, compared to TDKK 184,019 for the first half of 2025, net interest income decreased by 12%. A falling level of interest rates in 2025 was expected, and in the same period the certificate of deposit interest rate decreased from 3.35% to 1.6% at the end of June 2025. The Bank also saw shifts in deposits in favour of savings and high-interest-rate accounts, thereby reducing the deposit mar- gin during 2024 and 2025. The increase in lending and deposits in 2024 and 2025 offsets the development in the level of interest rates. Share dividend increased by TDKK 1,186 to TDKK 10,045 as of 30 June 2025. The Bank solely holds sector equities. Fee and commission income decreased by TDKK 1,432 com- pared to the same period of 2024. Lower payment settlement fees and a lower guarantee level are the primary contributing factors. Net interest and fee income decreased overall by TDKK 22,717 to TDKK 219,646 for the first half of 2025. Other operating income amounted to TDKK 3,381, which is an increase of TDKK 764 from the first half of 2024. The differ- ence primarily concerns non-recurring income. Staff and administration expenses amounted to TDKK 122,121, which is an increase of TDKK 11,315 compared to the first half of 2024. Staff expenses increased by TDKK 6,467 as a result of staff increases and salary increases under collective agreements. Administration expenses increased by TDKK 4,848. The in- crease primarily concerns IT expenses and supplementary train- ing of employees. Other operating expenses, which mainly concern operation and maintenance of the Bank's office buildings, decreased by TDKK 753 to TDKK 1,610 in the first half of 2025, compared to the same period of 2024. The increase is due to the lower contribution to the Resolution Fund for 2025. Depreciation of properties and fixtures and fittings amounted to TDKK 4,645, compared to TDKK 4,316 for the same period in 2024. The profit before value adjustments and write-downs is TDKK 94,651, compared to TDKK 127,495 in the first half of 2024. Value adjustments present a total capital gain of TDKK 4,283, compared to a capital gain of TDKK 3,917 for the same period in 2024. In terms of value adjustments alone, the Bank’s hold- ings of sector equities performed negatively, although this should be viewed against share dividends, as described above. Based on the level of interest rates, the Bank's bond holdings also gave slightly higher capital gains in the first half of 2025 than for the same period in 2024. Selected Highlights and Key Figures (not audited) DKK 1,000 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 2025 2025 2024 2024 2024 2024 2023 2023 Net interest and fee income 111,691 107,955 114,392 113,509 122,734 119,629 119,981 111,043 Costs, depreciation and amorti- sation 63,992 64,384 65,959 56,190 58,299 59,186 61,918 51,492 Other operating income 1,635 1,746 1,428 1,355 1,316 1,301 1,346 1,451 Profit before value adjustments and write-downs 49,334 45,317 49,861 58,674 65,751 61,744 59,409 61,002 Value adjustments -2,907 7,190 6,004 18,657 -1,450 5,367 20,248 8,817 Write-downs on loans, etc. 1,096 13,424 3,745 3,892 5,946 5,326 5,907 1,974 Profit before tax 45,331 39,083 52,120 73,439 58,355 61,785 73,750 67,845 Interim Report First half of 2025 Management’s Review 6 Impairment of loans, etc. amounted to TDKK 14,520, com- pared to TDKK 11,272 for the same period in 2024. The Bank sees continued satisfactory creditworthiness in the loan portfo- lio. The impairment level is still modest and the impairment ra- tio for the period is 0.2%. Despite uncertain macroeconomic prospects and geopolitical instability, Greenland and the BANK of Greenland’s customers are not significantly challenged so far. However, the future eco- nomic development is subject to uncertainty. In addition to the individual write-downs, on this basis the Bank has maintained a significant management reserve of DKK 39.7 million to counter risks. The profit before tax is TDKK 84,414, and is thereby TDKK 35,726 lower than for the same period in 2024. Development in the quarter Net interest and fee income amounted to TDKK 94,028 in Q1, and TDKK 111,691 in Q2. This development can primarily be related to the share dividend on the Bank's sector equities holdings in Q2. Total costs amounted to TDKK 64,384 in Q1 and TDKK 63,992 in Q2. Staff expenses decreased in Q2, since in Q1 holi- day allowance, etc. is paid, but is not paid in the subsequent quarters. Other administration costs were by and large un- changed between the quarters. The profit before value adjustments and write-downs thereby increased to TDKK 49,334 in Q2, which is TDKK 4,017 higher than in Q1 2025. The profit before tax increased to DKK 45.3 million in Q2 2025, from DKK 39.0 million in Q1 2025. Lending increased by TDKK 78,749 in Q1, and by TDKK 43,918 in Q2, which overall corresponds to an increase of 3% from the end of 2023. At the start of the year, it was expected that the favourable economic development in Greenland would increase the Bank's lending. Deposits increased by TDKK 268,070 in Q1 2025, but de- creased by TDKK 127,656 in Q2. In overall terms, the increase in deposits from the end of 2023 thus amounted to TDKK 140,414. Balance sheet and equity During the first half-year, the Bank’s lending showed a satisfac- tory increase of TDKK 137,946 to TDKK 5,168,941, while the Bank’s guarantees to customers decreased by TDKK 598 from the end of 2024 and amounted to TDKK 1,422,045 at the end of June 2025. In the annual reallocation the Bank acquired additional sector equities in 2025. At 30 June 2025, equities, etc. amounted to TDKK 163,926, compared to TDKK 150,963 at the end of 2024. In the first half of 2025 the Bank acquired five new staff homes, increasing the value of domicile properties to TDKK 327,652. At the end of June 2025, the Bank’s deposits, which predomi- nantly comprise on-demand deposits, amounted to TDKK 7,183,322, which is an increase of TDKK 30,515 from the end of 2024. The Bank continues to have a stable deposit/lending ratio of approximately 139%. After payment of the dividend of TDKK 180,000 for 2024 adopted by the Annual General Meeting, the Bank's equity de- creased from TDKK 1,593,622 to TDKK 1,524,274. Total assets thereby increased by TDKK 21,103 to TDKK 10,042,646, 1.000.000 1.500.000 2.000.000 2.500.000 3.000.000 3.500.000 4.000.000 4.500.000 5.000.000 5.500.000 6.000.000 6.500.000 7.000.000 7.500.000 Q2 2022 Q2 2023 Q2 2024 Year 2024 Q2 2025 Deposits Lending Guarantees Interim Report First half of 2025 Management’s Review 7 Uncertainty of recognition and measurement The principal uncertainties concerning recognition and meas- urement are related to write-downs on lending, provisions on guarantees and non-utilised credit facilities, together with the valuation of properties, unlisted securities and financial instru- ments. The management assesses that the presentation of the accounts is subject to an appropriate level of uncertainty. Financial risks The BANK of Greenland is exposed to various financial risks, which are managed at different levels of the organisation. The Bank’s financial risks consist of: Credit risk: Risk of loss as a consequence of debtors’ or coun- terparties’ default on actual payment obligations. Market risk: Risk of loss as a consequence of fluctuation in the fair value of financial instruments and derivative financial instru- ments due to changes in market prices. The BANK of Green- land classifies three types of risk within the market risk area: in- terest rate risk, foreign exchange risk and share risk. Liquidity risk: Risk of loss as a consequence of the financing costs increasing disproportionately, the risk that the Bank is prevented from maintaining the adopted business model due to a lack of financing/funding, or ultimately, the risk that the Bank cannot fulfil agreed payment commitments when they fall due, as a consequence of the lack of financing/funding. Operational risk: The risk that the Bank in full or in part incurs financial losses as a consequence of inadequate or inappropri- ate internal procedures, human errors, IT systems, etc. Capital requirement The BANK of Greenland must by law have a capital base that supports the risk profile. The BANK of Greenland compiles the credit and market risk according to the standard method and the operational risk according to the basic indicator method. MREL requirement The requirement concerning own funds and eligible liabilities must be viewed as an element of the recovery and resolution of banks. This entails that banks which are subject to this re- quirement must maintain a ratio of capital instruments and debt obligations that, in a resolution situation, can be written down or converted before simple claims. On 10 December 2024, a revised MREL requirement was de- termined for the BANK of Greenland, at 30.2% of the Bank’s risk-weighted assets at the end of 2023. The MREL require- ment is being phased in from 2022 to 2027. The linear phasing- in means that by 2025 the Bank must fulfil an MREL require- ment of 10.07%. This means that in the course of the coming years, the Bank must fulfil the phased-in requirement by issuing capital instruments and consolidation of equity capital. In continuation of the established MREL requirement, the Bank has made issues every year from 2021 to 2025. A total of DKK 275 million was issued in Senior Non-Preferred and DKK 145 million in subordinated debt. Going forward, the Bank also expects to issue securities. Capital requirement First half- year 2025 Year 2024 Pillar I 8.00% 8.00% Pillar II 2.45% 3.10% Solvency requirement 10.45% 11.10% SIFI buffer requirement 1.50% 1.50% Capital reserve buffer requirement 2.50% 2.50% Capital requirement 14.45% 15.10% MREL requirement (phased in linearly as from 1 January 2022) 10.07% 7.55% Total capital requirement 24.52% 22.65% Capital base, cf. Note 18 1,560,866 1,535,841 SNP issue 273,824 273,569 MREL capital base 1,834,690 1,809,410 MREL capital ratio 30.01% 31.70% Surplus capital cover 5.49% 9.05% Solid capital base In accordance with the Danish Financial Business Act, the Board of Directors and the Executive Management must ensure that the BANK of Greenland has an adequate capital base. The capi- tal requirement is the capital which, according to the manage- ment’s assessment, as a minimum is needed to cover all risks. The BANK of Greenland was designated as an SIFI institution in April 2017. Based on the requirements concerning own funds and eligible liabilities, the Board of Directors expects that the total capital reserves must be increased during the coming years. The aim of the Board of Directors is that there must be sufficient capital for growth in the Bank’s business activities, just as there must be sufficient capital to cover ongoing fluctuations in the risks as- sumed by the Bank. In 2021, the Bank’s Board of Directors therefore adopted a capital objective with a set target for CET1 of 24%. The BANK Interim Report First half of 2025 Management’s Review 8 of Greenland’s core capital ratio was 23.2 at the end of the first half of 2025, and the capital ratio was 25.5. With effect from the beginning of 2025, elements of the CRR3 capital requirements regulations entered into force in the EU. CRR3 is expected to be implemented in Greenland at the end of 2025. On the basis of new IT systems for compilation of capital requirements, the Bank already commenced adjustment to the regulations in the first half of 2025, and will continue this adjustment up to the implementation in Greenland. Risk-weighted assets increased by TDKK 402,953 to TDKK 6,113,314 at the end of June 2025. It was expected that the Bank would see an increase as a consequence of the changed weighting of real estate exposure in particular. When the legis- lation has been implemented in Greenland, the Bank expects a decrease in the risk-weighted items. The result for the first half of 2025 has not been verified by the Bank’s auditor and is therefore not included in the capital ratio. Including the result for the first half of 2025, the core capital ra- tio is calculated at 24.3% and the capital ratio at 26.6%. At the end of June 2025, the Bank’s individual solvency require- ment was compiled at 10.5%. The BANK of Greenland thereby has surplus capital cover before the buffer requirements of 15.0%, or TDKK 921,995. After deductions for the capital re- serve buffer requirement of 2.5% and the SIFI buffer require- ment of 1.5%, the surplus cover is 11.0%. The BANK of Greenland has published further details of the calculated solvency requirement in a report on its website http://www.banken.gl/report/ Liquidity The liquidity coverage ratio (LCR) is a minimum requirement of the ratio between current assets and liabilities, to ensure a satis- factory liquidity ratio. At the end of Q2, the Bank had an LCR of 264.2% and thereby fulfils the LCR requirement of at least 100%. The Bank’s required funding is based solely on deposits. The BANK of Greenland’s reported individual solvency requirement according to the 8+ model First half-year 2025 Full year 2024 Capital require- ment Solvency requi- rement Capital require- ment Solvency requi- rement Pillar I requirement 489,065 8.0 456,829 8.0 Credit risk 99,171 1.6 114,534 2.0 Market risk 19,504 0.3 27,320 0.5 Liquidity risk 2,625 0.1 6,270 0.1 Operational risk 21,427 0.4 23,621 0.4 Other risk 7,079 0.1 5,524 0.1 Capital and solvency requirement 638,871 10.5 634,098 11.1 The Supervisory Diamond The BANK of Greenland has considered the benchmarks set out in the Danish FSA’s Supervisory Diamond for banks. The Supervisory Diamond states five benchmarks for banking activi- ties which the Bank aims to fulfil. It must be noted that publicly- owned enterprises account for 48% points of the sum of large exposures. Interim Report First half of 2025 Management’s Review 9 The property exposure amounted to 18.1%. This exposure is subject to considerable subordinate public financing. In addition, some of the exposure is based on lease contracts with the state, the Government of Greenland or municipalities. The Bank assesses that both of these factors contribute to stabilising the overall sector exposure. Investor Relations The BANK of Greenland’s overall financial objective is to achieve a competitive return for the shareholders. At a price of 775 at the end of the first half of 2025, the price of the BANK of Greenland’s shares has increased from the end of 2024, when the price was 700. At the Bank’s Annual General Meeting on 26 March 2025, a dividend payment of DKK 100 per share, or a total of DKK 180 million, to the Bank’s shareholders was adopted, and this was paid out on 31 March 2025. In accordance with Section 28a of the Danish Companies Act, six shareholders have notified shareholdings in excess of 5%. The Bank has no holdings of own shares. The BANK of Greenland's mission, values and cor- porate governance The BANK of Greenland conducts banking activities in Green- land in open competition with domestic and foreign banks and provides advice and services in the financial area to all citizens and businesses in Greenland. The Bank's mission should be viewed in a broader perspective whereby the BANK of Greenland can be seen as the BANK for all of Greenland. This entails an enhanced responsibility to par- ticipate positively and actively in society’s development and to help to create opportunities for the benefit of Greenland, while also ensuring sound financial activities. The BANK of Greenland is highly aware of this vital role. The BANK of Greenland’s values are firmly anchored in the Bank and its employees. The values are Commitment, Decency, Customer-oriented and Development-oriented. These values serve as a guide for how we act and wish to be seen within and outside the Bank. The BANK of Greenland considers all of the Corporate Gov- ernance recommendations and the Danish Executive Order on Management and Control of Banks, etc. and it is the Bank’s ob- jective to observe these recommendations at all times and to the greatest possible extent. The Bank's Corporate Governance Statement can be found on the Bank's website www.banken.gl. Outlook for the remainder of 2025 As described in the Annual Report for 2024, the BANK of Greenland expects close to zero growth in Greenland's econ- omy in 2025. In both the short and longer term, the increased focus on Greenland in the first half-year can affect the economic devel- opment and the framework conditions in Greenland. However, the BANK of Greenland has no basis to assess that this will be of any material significance in the short term in 2025, so that it is still the macroeconomic and local conditions that are gener- ally expected to influence the Bank's operations. Declining interest rates increase the appetite for investment, and lending is expected to develop moderately positively to- wards the end of the year, but with lower growth than in 2024. Deposits are expected to be at the level of or just above the end of 2024. The Bank will be affected negatively if inflation and cyclical trends are exacerbated to any significant degree. Total core income is expected to decrease in 2025, for which the primary reason is the development in interest rates. Total expenses including depreciation and amortisation are ex- pected to be higher than in 2024. A few staff increases and the full effect of staff increases are expected in 2024. Administra- tion expenses are also expected to increase, primarily in the IT area. The Supervisory Diamond First half- year 2025 Limit Sum of large exposures 136.1% < 175% Property exposure 18.1% < 25% Growth in lending 1.40% < 20% Liquidity-benchmark 266.3% > 100% Interim Report First half of 2025 Management’s Review 10 The Bank assesses that the credit quality of the loan portfolio is satisfactory. Impairment write-downs on loans are therefore still expected to be at a low, but normalised, level. Based on the expected level of interest rates, gains on the Bank’s listed securities must be expected. Capital gains are also expected from the currency area and sector shares. On this basis, the expectation of a profit before tax at the level of DKK 150-185 million is maintained. Interim Report First half of 2025 Management Statement 11 The Board of Directors and Executive Management have today considered and approved the Interim Report for the period from 1 January to 30 June 2025, for the public limited liability company, GrønlandsBANKEN A/S. The interim report was prepared in accordance with the Dan- ish Financial Business Act, and the Management’s Review was drawn up in accordance with the Danish Financial Business Act. The interim report is furthermore prepared in accordance with additional Danish disclosure requirements for listed financial companies. It is our opinion that the Interim Report gives a true and fair view of the Bank’s assets, liabilities and financial position at 30 June 2025, and of the result of the Bank’s activities for the first half of 2025. It is our opinion that the Management’s Review gives a true and fair review of the development in the Bank’s activities and finan- cial affairs, as well as a description of the significant risks and un- certainties to which the BANK of Greenland is subject. Management Statement Nuuk, 20 August 2025 Executive Management Martin Birkmose Kviesgaard Board of Directors Gunnar í Liða Kristian Frederik Lennert Maliina Bitsch Abelsen Chair Vice Chairman Pia Werner Alexandersen Gert Jonassen Pilunnguaq Frederikke Johansen Kristian- sen Tulliaq Angutimmarik Olsen Niels Peter Fleischer Rex Peter Angutinguaq Wistoft Interim Report First half of 2025 Management Statement 12 Interim Report First half of 2025 Income Statement and Statement of Comprehensive Income 13 Income Statement and Statement of Comprehensive In- come DKK 1,000 Notes First half- year 2025 Full year 2024 First half- year 2024 3 Interest income 193,265 476,909 244,737 4 Interest expenses 31,690 116,956 60,718 Net interest income 161,575 359,953 184,019 Share dividend, etc. 10,045 8,859 8,859 5 Fees and commission income 48,156 102,129 49,588 Fees paid and commission expenses 130 677 103 Net interest and fee income 219,646 470,264 242,363 6 Value adjustments 4,283 28,578 3,917 Other operating income 3,381 5,400 2,617 7 Staff and administration expenses 122,121 226,362 110,806 Depreciation and impairment of tangible assets 4,645 9,017 4,316 Other operating expenses 1,610 4,255 2,363 16 Write -downs on loans and receivables, etc. 14,520 18,909 11,272 Profit before tax 84,414 245,699 120,140 8 Tax -23,896 36,689 5,285 Profit for the period 108,310 209,010 114,855 COMPREHENSIVE INCOME Profit for the period 108,310 209,010 114,855 Other comprehensive income: Value adjustment of properties 3,122 6,084 2,972 Value adjustment of defined -benefit severance/pension scheme 0 -74 0 Tax on value adjustment of properties -780 -1,521 -743 Other comprehensive income 2,342 4,489 2,229 Comprehensive income for the period 110,652 213,499 117,084 Interim Report First half of 2025 Balance Sheet 14 Balance Sheet DKK 1,000 Notes Assets 30 June 2025 31 December 2024 30 June 2024 Cash balance and demand deposits with central banks 1,935,684 2,080,989 1,452,389 9 Receivables from credit institutions and central banks 118,873 155,989 92,494 16 Loans and other receivables at amortised cost 5,168,941 5,030,995 5,097,302 10 Bonds at fair value 1,507,375 1,498,540 1,295,749 Shares, etc. 163,926 150,963 143,436 11 Assets connected to pool schemes 713,018 675,765 564,213 Land and buildings in total, domicile properties 327,652 310,860 310,998 - Domicile properties 327,652 310,860 310,998 Other tangible assets 7,965 7,627 8,085 Current tax assets 0 658 0 Other assets 93,174 104,342 87,018 Accruals and deferred income 6,038 4,815 5,143 Total assets 10,042,646 10,021,543 9,056,827 Liabilities Liabilities to credit institutions and central banks 23,229 15,698 15,427 12 Deposits and other liabilities 7,183,322 7,152,807 6,553,883 Deposits in pool schemes 713,018 675,765 564,213 13 Issued bonds at amortised cost 273,824 273,569 174,133 Current tax liabilities 18,190 0 28,272 Other liabilities 82,119 73,807 76,068 Prepayments and deferred expenses 4,491 4,395 6,441 Total debt 8,298,193 8,196,041 7,418,437 Provisions for pensions and similar obligations 3,064 2,902 2,662 Provisions for deferred tax 62,173 106,393 60,755 Provisions for losses on guarantees 3,858 11,241 6,604 Other provisions 7,423 7,322 6,752 Total provisions 76,518 127,858 76,773 14 Subordinated debt 143,661 104,022 64,410 Total subordinated debt 143,661 104,022 64,410 Equity 15 Share capital 180,000 180,000 180,000 Revaluation reserves 72,788 70,446 68,112 Retained earnings 1,271,486 1,163,176 1,249,095 Proposed dividend 0 180,000 0 Total equity 1,524,274 1,593,622 1,497,207 Total liabilities 10,042,646 10,021,543 9,056,827 1 Accounting policies applied 2 Accounting estimates 17 Contingent liabilities 18 Capital conditions and solvency Interim Report First half of 2025 Statement of Changes in Equity 15 Statement of Changes in Equity DKK 1,000 Share capital Revaluation reserves Retained ear- nings Proposed divi- dend Total equity capital Equity, 01 January 2024 180,000 65,883 1,134,240 99,000 1,479,123 Dividend paid 0 0 0 -99,000 -99,000 Other comprehensive income 0 2,229 0 0 2,229 Profit for the period 0 0 114,855 0 114,855 Equity, 30 June 2024 180,000 68,112 1,249,095 0 1,497,207 Other comprehensive income 0 2,334 -74 0 2,260 Profit for the period 0 0 -85,845 180,000 94,155 Equity, 31 December 2024 180,000 70,446 1,163,176 180,000 1,593,622 Equity, 01 January 2025 180,000 70,446 1,163,176 180,000 1,593,622 Dividend paid 0 0 0 -180,000 -180,000 Other comprehensive income 0 2,342 0 0 2,342 Profit for the period 0 0 108,310 0 108,310 Equity, 30 June 2025 180,000 72,788 1,271,486 0 1,524,274 Interim Report First half of 2025 Statement of Changes in Equity 16 Interim Report First half of 2025 17 1. Accounting policies applied etc. 18 2. Significant accounting estimates 18 3. Interest income 19 4. Interest expenses 19 5. Fee and commission income 19 6. Value adjustments 19 7. Staff and administration expenses 20 8. Tax 20 9. Amounts receivable from credit institutions and central banks 20 10. Bonds 20 11. Assets connected to pool schemes 21 12. Deposits 21 13. Issued bonds at amortised cost 21 14. Subordinated debt 22 15. Share capital 22 16. Udlån 22 17. Contingent liabilities 26 18. Capital conditions and solvency 26 Overview of Notes Interim Report First half of 2025 Notes to the Interim Report 18 The Interim Report has been prepared in accordance with the Danish Financial Business Act, the statutory order on financial reports for credit institutions and investment service compa- nies, etc. and the Danish disclosure requirements for the in- terim reports of listed financial companies. The accounting policies applied are unchanged from the Annual Report for 2024. Tax, which consists of current tax and changes in deferred tax, is recognised in the income statement when it relates to the profit for the period, and directly in equity when it can be at- tributed to items carried directly to equity. On calculating the taxable income, Greenland allows tax deduc- tion of dividends for the dividend-paying company. The taxation value of this is therefore added to equity at the time of the Annual General Meeting’s approval of the dividend. Deferred tax assets are recognised in the balance sheet at the value at which the asset is expected to be realised. The interim report has not been audited or reviewed. The calculation of the accounting value of certain assets and lia- bilities is subject to a degree of uncertainty and an estimate of how future events will affect the value of these assets and liabil- ities. The most significant estimates relate to: • measurement of loans, guarantees and non-utilised credit facilities; • financial instruments; • fair value of domicile properties; and • provisions. Non-listed financial instruments that primarily concern sector equities and that are measured at estimated fair values. The measurement of the fair value of the Bank’s head office properties is subject to significant accounting estimates and as- sessments, including expectations of the properties’ future re- turns and the fixed yield ratios. For provisions, there are significant estimates related to the de- termination of the future employee turnover rate, as well as determining the interest obligation for tax-free savings accounts. Notes to the Interim Report 1. Accounting policies applied etc. 2. Significant accounting estimates Interim Report First half of 2025 Notes to the Interim Report 19 DKK 1,000 First half- year 2025 Full year 2024 First half-year 2024 3. Interest income Receivables from credit institutions and central banks 21,599 60,423 32,724 Lending and other receivables 155,378 376,161 193,213 Bonds 16,016 39,359 18,229 Foreign exchange, interest rate, equity, commodity and other contracts, as well as derivative financial instruments 272 966 571 Total interest income 193,265 476,909 244,737 4. Interest expenses Credit institutions and central banks 53 106 37 Deposits and other liabilities 31,637 115,112 60,681 Issued Bonds 0 1,118 0 Subordinated debt 0 620 0 Total interest expenses 31,690 116,956 60,718 5. Fee and commission income Securities and securities accounts 1,399 9,413 1,234 Payment settlement 16,992 36,464 18,079 Loan transaction fees 1,600 3,752 1,914 Guarantee commission 14,475 30,181 15,360 Other fees and commission 13,690 22,319 13,001 Total fee and commission income 48,156 102,129 49,588 6. Value adjustments Lending at fair value 261 1,090 1 Bonds 3,209 15,989 2,097 Shares -1,546 6,351 -1,192 Currency 2,618 6,235 3,008 Foreign exchange, interest rate, equity, commodities and other contracts, as well as derivative financial instruments -259 -1,087 3 Assets connected to pool schemes -15,951 59,703 37,221 Deposits in pool schemes 15,951 -59,703 -37,221 Total value adjustments 4,283 28,578 3,917 Interim Report First half of 2025 Notes to the Interim Report 20 7. Staff and administration expenses Staff expenses Salaries 54,810 103,989 49,824 Other staff expenses 2,352 2,832 2,110 Pensions 6,970 12,826 6,224 Social security expenses 688 277 195 In total 64,820 119,924 58,353 Other administration expenses 57,301 106,438 52,453 Average number of FTEs 154.7 153.8 153.7 Of which salaries and remuneration to the Board of Directors and the Exec- utive Management 3,324 6,444 3,332 Six other employees (Q2 2024: 5 employees) whose activities have a signifi- cant influence on the Bank’s risk profile: Salaries including free car and other benefits 3,749 7,101 3,988 8. Tax 25 -% of the profit before tax 21,104 61,425 30,035 Discount for dividend tax paid -2,256 -1,982 -1,982 Total tax on ordinary profit 18,848 59,443 28,053 Paid dividend tax 2,256 1,982 1,982 Other changes 0 14 0 Taxation value of dividend paid -45,000 -24,750 -24,750 Tax in total -23,896 36,689 5,285 Deferred tax 781 20,110 743 Taxation value of dividend paid -45,000 0 -24,750 Tax to be paid 20,323 16,579 29,292 No company tax was paid in the period. 9. Amounts receivable from credit institutions and central banks Receivables from credit institutions 118,873 155,989 92,494 Total amounts receivable 118,873 155,989 92,494 10. Bonds Of the bond portfolio, a nominal amount of TDKK 50,000 is pledged as collateral for accounts with Danmarks Nationalbank. DKK 1,000 First half- year 2025 Full year 2024 First half-year 2024 Interim Report First half of 2025 Notes to the Interim Report 21 11. Assets connected to pool schemes Investment associations 712,980 675,642 564,149 Non -invested funds 38 123 64 Total 713,018 675,765 564,213 12. Deposits On demand 6,002,808 5,874,580 5,389,805 On terms of notice 875,550 976,847 872,785 Special deposit conditions 304,964 301,380 291,293 Total deposits 7,183,322 7,152,807 6,553,883 13. Issued bonds at amortised cost Bond issue 273,824 273,569 174,133 Total 273,824 273,569 174,133 Loan raised as Senior Non-Preferred, nominally 50,000 50,000 50,000 The loan was raised as Senior Non -Preferred on 27 October 2021 and falls due for full redemption on 27 October 2026. The Bank has the option of early redemption as from 27 October 2025. Loan raised as Senior Non -Preferred, nominally 25,000 25,000 25,000 The loan was raised as Senior Non -Preferred on 2 September 2022 and falls due for full redemption on 2 September 2027. The Bank has the option of early redemption as from 2 September 2026. Loan raised as Senior Non -Preferred, nominally 100,000 100,000 100,000 The loan was raised as Senior Non -Preferred on 1 December 2023 and falls due for full redemption on 1 December 2030. The Bank has the option of early redemption as from 1 December 2027. Loan raised as Senior Non-Preferred, nominally 100,000 100,000 0 The loan was raised as Senior Non -Preferred on 20 November 2024 and falls due for full redemption on 20 November 2031. The Bank has the op- tion of early redemption as from 20 November 2028. DKK 1,000 First half- year 2025 Full year 2024 First half-year 2024 Interim Report First half of 2025 Notes to the Interim Report 22 14. Subordinated debt Capital certificate as below 143.661 104.022 64.410 In total 143.661 104.022 64.410 Subordinated debt included in the capital base according to CRR 143.661 104.022 64.410 Loan raised as subordinated debt, nominally 25.000 25.000 25.000 Interest rate, fixed rate 6,197% 6,197% 6,197% The loan was raised on 2 September 2022 and falls due for full redemption on 2 September 2032. The Bank has the option of early redemption as from 2 September 2027. Loan raised as subordinated debt, nominally 40.000 40.000 40.000 Interest rate, floating rate (CIBOR 6 with an addition of 400bp.) 6,093% 8,113% 7,827% The loan was raised on 1 June 2023 and falls due for full redemption on 1 June 2033. The Bank has the option of early redemption as from 1 June 2028. Loan raised as subordinated debt, nominally 40.000 40.000 - Interest rate, floating rate (CIBOR 6 with an addition of 325bp.) 5,730% 6,633% 0,000% The loan was raised on 12 September 2024 and falls due for full redemption on 12 September 2034. The Bank has the option of early redemption as from 12 September 2029. Loan raised as subordinated debt, nominally 40.000 - - Interest rate, floating rate (CIBOR 6 with an addition of 300bp.) 5,113% 0,000% 0,000% The loan was raised on 28 May 2025 and falls due for full redemption on 28 May 2035. The Bank has the option of early redemption as from 28 May 2030. 15. Share capital Share capital consists of 1,800,000 shares of DKK 100. Own shares Number of own shares 0 0 0 16. Lending Write -downs on loans, guarantees and non-utilised credit facilities: New write -downs concerning new facilities during the period 5,926 12,926 5,602 Reversal of write -downs concerning redeemed facilities -9,943 -21,195 -5,763 Net write -downs during the period as a consequence of changes in the credit risk 19,629 27,237 11,739 Losses without preceding write-downs 53 249 95 Received for claims previously written off -1,145 -308 -401 Recognised in the statement of income 14,520 18,909 11,272 DKK 1,000 First half- year 2025 Full year 2024 First half-year 2024 Interim Report First half of 2025 Notes to the Interim Report 23 DKK 1,000 Stage 1 Stage 2 Stage 3 Total Write-downs on loans 30.06.2025 Start of the period 13,779 88,282 110,634 212,695 New write -downs concerning new facilities during the year 1,646 1,600 2,294 5,540 Reversal of write -downs concerning redeemed facilities -1,080 -985 -2,693 -4,758 Change in write -downs at the beginning of the year – transfer to stage 1 9,528 -8,303 -1,225 0 Change in write -downs at the beginning of the year – transfer to stage 2 -478 1,010 -532 0 Change in write -downs at the beginning of the year – transfer to stage 3 -14 -12,077 12,091 0 Net write-downs as a consequence of changes in the credit risk -7,440 -2,269 31,822 22,113 Previously written down, now finally lost 0 0 -557 -557 Interest on written -down facilities 0 0 2,981 2,981 Write -downs in total 15,941 67,258 154,815 238,014 Write-downs on guarantees 30.06.2025 Start of the period 614 1,451 9,176 11,241 New write -downs concerning new facilities during the year 253 66 0 319 Reversal of write -downs concerning redeemed facilities 0 -4 -4,584 -4,588 Change in write -downs at the beginning of the year – transfer to stage 1 5,319 -585 -4,734 0 Change in write -downs at the beginning of the year – transfer to stage 2 -2 2 0 0 Change in write -downs at the beginning of the year – transfer to stage 3 0 -23 23 0 Net write -downs as a consequence of changes in the credit risk -5,434 -104 2,424 -3,114 Write-downs in total 750 803 2,305 3,858 Write-downs on non-utilised drawing rights 30.06.2025 Start of the period 405 802 538 1,745 New write-downs concerning new facilities during the year 13 48 6 67 Reversal of write -downs concerning redeemed facilities -86 -69 -442 -597 Change in write -downs at the beginning of the year – transfer to stage 1 2 -2 0 0 Change in write-downs at the beginning of the year – transfer to stage 2 -3 5 -2 0 Change in write -downs at the beginning of the year – transfer to stage 3 0 0 0 0 Net write -downs as a consequence of changes in the credit risk 184 -352 798 630 Write -downs in total 515 432 898 1,845 Interim Report First half of 2025 Notes to the Interim Report 24 DKK 1,000 Stage 1 Stage 2 Stage 3 Total Write-downs on loans 31.12.2024 Start of the period 27,301 78,003 90,562 195,866 New write -downs concerning new facilities during the year 2,575 5,729 3,898 12,202 Reversal of write -downs concerning redeemed facilities -2,859 -7,903 -7,801 -18,563 Change in write -downs at the beginning of the year – transfer to stage 1 7,852 -5,596 -2,256 0 Change in write -downs at the beginning of the year – transfer to stage 2 -1,091 7,193 -6,102 0 Change in write -downs at the beginning of the year – transfer to stage 3 -11 -4,128 4,139 0 Net write -downs as a consequence of changes in the credit risk -19,988 14,984 29,789 24,785 Previously written down, now finally lost 0 0 -6,449 -6,449 Interest on written -down facilities 0 0 4,854 4,854 Write -downs in total 13,779 88,282 110,634 212,695 Write-downs on guarantees 31.12.2024 Start of the period 1,096 2,695 5,942 9,733 New write-downs concerning new facilities during the year 183 234 79 496 Reversal of write -downs concerning redeemed facilities -2 -3 -16 -21 Change in write -downs at the beginning of the year – transfer to stage 1 434 -249 -185 0 Change in write-downs at the beginning of the year – transfer to stage 2 -180 3,243 -3,063 0 Change in write -downs at the beginning of the year – transfer to stage 3 0 -193 193 0 Net write -downs as a consequence of changes in the credit risk -917 -4,276 6,226 1,033 Write-downs in total 614 1,451 9,176 11,241 Write-downs on non-utilised drawing rights 31.12.2024 Start of the period 345 517 1,847 2,709 New write -downs concerning new facilities during the year 139 89 0 228 Reversal of write-downs concerning redeemed facilities -279 -488 -1,844 -2,611 Change in write -downs at the beginning of the year – transfer to stage 1 249 -122 -127 0 Change in write -downs at the beginning of the year – transfer to stage 2 -9 81 -72 0 Change in write -downs at the beginning of the year – transfer to stage 3 0 0 0 0 Net write -downs as a consequence of changes in the credit risk -40 725 734 1,419 Write -downs in total 405 802 538 1,745 Interim Report First half of 2025 Notes to the Interim Report 25 DKK 1,000 Stage 1 Stage 2 Stage 3 Total Write-downs on loans 30.06.2024 Start of the period 27,301 78,003 90,562 195,866 New write -downs concerning new facilities during the year 1,014 4,021 351 5,386 Reversal of write -downs concerning redeemed facilities -986 -826 -1,843 -3,655 Change in write -downs at the beginning of the year – transfer to stage 1 6,501 -4,995 -1,506 0 Change in write -downs at the beginning of the year – transfer to stage 2 -1,011 3,184 -2,173 0 Change in write -downs at the beginning of the year – transfer to stage 3 -8 -221 229 0 Net write -downs as a consequence of changes in the credit risk -7,705 21,342 304 13,941 Previously written down, now finally lost 0 0 -287 -287 Interest on written -down facilities 0 0 2,872 2,872 Write -downs in total 25,106 100,508 88,509 214,123 Write-downs on guarantees 30.06.2024 Start of the period 1,096 2,695 5,942 9,733 New write -downs concerning new facilities during the year 78 116 0 194 Reversal of write -downs concerning redeemed facilities -1 -3 -13 -17 Change in write -downs at the beginning of the year – transfer to stage 1 1,897 -347 -1,550 0 Change in write -downs at the beginning of the year – transfer to stage 2 -4 78 -74 0 Change in write-downs at the beginning of the year – transfer to stage 3 -2 0 2 0 Net write -downs as a consequence of changes in the credit risk -2,095 -748 -463 -3,306 Write-downs in total 969 1,791 3,844 6,604 Write-downs on non-utilised drawing rights 30.06.2024 Start of the period 345 517 1,847 2,709 New write -downs concerning new facilities during the year 20 2 0 22 Reversal of write -downs concerning redeemed facilities -112 -372 -1,607 -2,091 Change in write-downs at the beginning of the year – transfer to stage 1 204 -87 -117 0 Change in write -downs at the beginning of the year – transfer to stage 2 -15 15 0 0 Change in write -downs at the beginning of the year – transfer to stage 3 0 0 0 0 Net write -downs as a consequence of changes in the credit risk 8 471 626 1,104 Write -downs in total 450 545 749 1,744 Interim Report First half of 2025 Notes to the Interim Report 26 DKK 1,000 First half- year 2025 Full year 2024 First half-year 2024 17. Contingent liabilities Mortgage finance guarantees 833,317 831,355 930,587 Registration and remortgaging guarantees 88,063 118,506 278,852 Other guarantees 500,665 472,782 523,694 Guarantees, etc. in total 1,422,045 1,422,643 1,733,133 Provision balance for guarantees 3,858 11,241 6,604 Provision balance for non -utilised credit facilities 1,845 1,745 1,744 The Bank is a member of BEC (BEC Financial Technologies a.m.b.a.). On any withdrawal the Bank will be obliged to pay a withdrawal fee to BEC equivalent to the preceding three years’ IT costs. Like the rest of the Danish banking sector, the Bank has an obligation to make payments to the Guarantee Fund and the Resolut ion Fund. 18. Capital conditions and solvency Credit risk 5,064,513 4,652,973 4,673,441 CVA risk 10,700 7,519 10,146 Market risk 223,604 235,372 204,957 Operational risk 814,497 814,497 721,601 Total risk exposure 6,113,314 5,710,361 5,610,145 Equity at the beginning of the period 1,593,622 1,479,123 1,479,123 Comprehensive income for the period 0 213,499 0 Proposed dividend, accounting effect 45,000 -135,000 24,750 Paid dividend -180,000 -99,000 -99,000 Framework for ratio of own shares 0 -5,985 -5,985 Deduction for capital shares in the financial sector -18,674 -5,519 -2,848 Deductions for prudent valuation -1,674 -1,652 -1,443 Deductions for Non -Performing Exposures -21,069 -13,647 -8,647 Actual core capital 1,417,205 1,431,819 1,385,950 Supplementary capital 143,661 104,022 64,410 Capital base 1,560,866 1,535,841 1,450,360 Actual core capital ratio 25.5 26.9 25.9 Capital ratio 23.2 25.1 24.7 Statutory capital ratio requirements 8.0 8.0 8.0 Interim Report First half of 2025 Notes to the Interim Report 27