1 January 2008 - 30 September 2008
- The Group recorded a profit before tax of DKK 302m against DKK 792m in
Q1-Q3/2007.
- Profit before tax generated a return on equity of 6.5% pa against 21.8% in
Q1-Q3/2007 and 19.6% in FY 2007.
- Profit was especially affected by negative value adjustment of mortgage and
corporate bonds.
- The Bank's customer-oriented activities generally performed satisfactorily
leading to a 15% rise in core income
- Impairment losses came to DKK 53m compared with an income of DKK 41m in the
same period of 2007. Impairments mainly relate to provisions for guarantee
debtors in connection with mortgage trading activities and were generally not
affected by property market trends.
- The Bank has a sound level of liquidity which strengthened in the period
chiefly on the back of the issue of notes for a nominal amount of DKK 10.5bn
under the Bank's EMTN programme. Excess cover relative to statutory liquidity
requirements was 79.6% at 30 September 2008 against 85.2 at 30 September 2007.
- The capital adequacy ratio amounted to 10.4% against 11.7% at end-2007 and
11.5% at 30 September 2007.
- Nykredit Bank 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 Nykredit Bank A/S a short-term counterparty
credit rating of A-1 and a long-term counterparty credit rating of A+.
2008 - OUTLOOK
Due to the financial turmoil in both Q3/2008 and in the past period of Q4,
expectations for the Bank's marketdependent earnings are subject to greater
uncertainty than usual. In Management's opinion, it is therefore not meaningful
to forecast profit for the year within a reasonable range.
INFORMATION ABOUT THE NYKREDIT BANK GROUP
The Nykredit Bank Group's Q1-Q3 Interim Report 2008 and further information
about the Nykredit Bank Group are available at nykredit.com.
