Core income: - Core income from customer-oriented activities grew by 8.7% to DKK 5,022m against DKK 4,618m in Q1-Q3/2007. - Own trading activities generated a loss of DKK 347m compared with core income of DKK 51m in Q1-Q3/2007. - Core income from securities amounted to DKK 1,523m against DKK 1,449m in Q1-Q3/2007. - Operating costs, depreciation and amortisation rose by DKK 552m to DKK 3,619m compared with Q1-Q3/2007. DKK 130m of this increase mainly stemmed from value adjustment of Nykredit's pension settlement funds. - Impairment losses on loans and advances were DKK 71m against a net income of DKK 118m in Q1-Q3/2007. - Core earnings after loan impairment amounted to DKK 2,508m against DKK 3,169m in Q1-Q3/2007. - The investment portfolio generated a loss of DKK 2,737m compared with an income of DKK 362m in Q1-Q3/2007. - The Group posted a loss before tax of DKK 229m against a profit of DKK 3,531m in Q1-Q3/2007. - After tax, the Group posted a loss of DKK 134m against a profit of DKK 2,771m in Q1-Q3/2007. OTHER FINANCIAL HIGHLIGHTS - The Group's gross new mortgage lending totalled DKK 131bn and was in line with the level recorded for the same period in 2007. - Bank lending went up by DKK 11bn to just below DKK 51bn. - Value adjustment of strategic equities against equity resulted in a loss of DKK 1,404m. - Inclusive of results for the period, the Group's equity was DKK 52.4bn. - The Group's capital adequacy ratio was 17.0%, inclusive of results for the period, against a minimum capital adequacy ratio of 13.7% under the Basel II transitional rules. - The Group has not reclassified securities, which is now allowed under IAS 39. - Nykredit Bank participates in the guarantee scheme set up by the Danish government covering deposits with and unsecured claims against Danish banks. - Standard & Poor's have assigned a AAA rating to Nykredit's covered bonds. FORSTÆDERNES BANK Nykredit acquired Forstædernes Bank on 13 October 2008. 2008 - OUTLOOK The forecast of core earnings after loan impairment has been reduced by DKK 200m to DKK 3,300m-3,500m. The main reasons are the negative development in own trading positions in Markets & Asset Management and the Bank's expenses relating to the government's guarantee scheme in the region of DKK 70m for 2008. INFORMATION ABOUT THE NYKREDIT GROUP More information about the Nykredit Group is available at nykredit.com. Peter Engberg Jensen, Group Chief Executive, says: "The development in customer-oriented business is satisfactory. Income has grown, losses and arrears remain low, and the balance principle of Danish mortgage lending ensures liquidity. However, the financial crisis has a significant effect on our trading positions in Markets & Asset Management and the return on Nykredit's equity especially due to lower mortgage bond pricing."