1 January 2011 – 31 March 2011
Results
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The Nykredit Realkredit Group recorded a profit before tax of DKK 1,004m against DKK 1,131m in Q1/2010
- In 2010 results were affected by exceptionally high investment portfolio income
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Profit after tax was DKK 899m against DKK 742m in Q1/2010
- Deferred tax of DKK 125m was recognised as income following judgment delivered by the Danish High Court in a tax case
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Growth in customer-oriented lending business of 2% on Q1/2010
- Core income from customer-oriented mortgage and banking business was DKK 1,968m against DKK 1,929m in Q1/2010
- In Q1/2011 mortgage lending in nominal terms and bank lending grew by a total of DKK 11bn to DKK 1,100bn
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Core income from Markets & Asset Management was DKK 256m against DKK 418m in Q1/2010
- The decline resulted from lower income from customer-oriented bond trading
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Operating costs, depreciation and amortisation excluding special value adjustments rose by DKK 55m or 4%
- Special value adjustments came to DKK 104m of which DKK 70m was a provision under the Danish Deposit Guarantee Fund
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Impairment losses on loans and advances decreased from DKK 596m in Q1/2010 to DKK 278m
- Impairment losses on mortgage lending came to DKK 252m, equal to 0.02% of lending
- Impairment losses on bank lending came to DKK 26m, equal to 0.03% of lending
- Core income from securities amounted to DKK 131m against DKK 109m in Q1/2010
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Investment portfolio income came to DKK 594m against DKK 1,002m in Q1/2010
- The collapse of Amagerbanken had an adverse effect on investment portfolio income of DKK 181m
- Cost of capital in the form of net interest on hybrid core capital was DKK 114m, which was unchanged on Q1/2010.
Capital
- The core capital and capital adequacy ratios were 18.6% and 18.6%, respectively, at end-Q1/2011
- The internal capital adequacy requirement (ICAAP) stood at 9.7%
- The Group's equity amounted to DKK 55.7bn against DKK 55.3bn at the beginning of the year.
Outlook for 2011
Nykredit expects a pre-tax profit in the range of DKK 3.0bn to DKK 3.5bn, which is unchanged on the previous forecast. The forecast of impairment losses on loans and advances of DKK 1.5bn is also unchanged.
Peter Engberg Jensen, Group Chief Executive, has the following comments: Nykredit recorded a satisfactory pre-tax profit of DKK 1.0bn in Q1/2011. Lending rose by DKK 11bn, while growth in total cus-tomer business was lower than forecast at the beginning of the year. The main reasons were declining mortgage activity and lower securities trading income.
Loan impairment losses amounted to DKK 278m in Q1/2011, a decrease of more than 50% on the same period last year.
We still anticipate a pre-tax profit in the range of DKK 3.0bn to DKK 3.5bn.
Contacts
Peter Engberg Jensen, Group Chief Executive, or Nels Petersen, Head of Corporate Communications
Tel +45 44 55 14 70 or +45 20 22 22 72
