Q1 INTERIM REPORT - THE NYKREDIT REALKREDIT GROUP 1 JANUARY 2008 - 31 MARCH 2008 - Core earnings after loan impairment were DKK 847m against DKK 984m in Q1/2007 - Earnings from customer-oriented activities matched expectations - Loan losses and arrears remained very low - The Bank recorded a capital loss of DKK 163m on bonds - The investment portfolio was adversely affected by financial market turmoil leading to a loss of DKK 695m against an income of DKK 164m in Q1/2007 - Profit before tax was DKK 152m against DKK 1,148m in Q1/2007 FINANCIAL HIGHLIGHTS - The Group's gross new mortgage lending rose by DKK 6bn to DKK 43bn in Q1/2008 - Bank lending went up by DKK 4bn to DKK 43bn relative to the beginning of the year. - Group core income from business operations declined by DKK 72m to DKK 1,457m - Core income from securities increased by DKK 80m to DKK 516m - Operating costs, depreciation and amortisation went up by DKK 88m to DKK 1,141m - Impairments totalled a net income of DKK 15m compared with DKK 72m in Q1/2007 - The investment portfolio generated a loss of DKK 695m against an income of DKK 164m in Q1/2007 - Value adjustment of strategic equities against equity resulted in a loss of DKK 695m - Including profit for the period, the Group's equity was DKK 53.4bn - The Group's capital adequacy ratio was 18.0% inclusive of profit for the period against a capital requirement of 13.4% under the Basel II transitional rules 2008 - OUTLOOK - Financial market turmoil will have only a limited effect on the forecast of core earnings of DKK 4,200m-4,400m. Continued financial market turmoil is not expected to have a material impact on earnings in the business areas Retail Customers, Business Partners and Commercial Customers, whereas earnings in Markets & Asset Management may be adversely affected - Investment portfolio income was estimated at DKK 400m-600m at the beginning of the year. The estimate is subject to great uncertainty due to continued turmoil in financial markets Peter Engberg Jensen, Group Chief Executive, has the following comments on the Q1 Interim Report 2008: - Earnings in customer-oriented activities have been stable despite financial market turmoil. Customer creditworthiness is good, and losses and arrears are record low. The Group's core income from business operations is therefore largely on a level with that of Q1/2007. By contrast, the financial market turmoil has left its mark, particularly because we had not foreseen the marked yield spread widening between government bonds and high-rated mortgage bonds. INFORMATION ABOUT THE NYKREDIT GROUP More information about the Nykredit Group is available at nykredit.com. Contacts Peter Engberg Jensen, Group Chief Executive - Nels Petersen, Head of Corporate Communications, tel +45 44 55 14 70 or +45 20 22 22 72