1 January 2011 – 31 March 2011
- The Group recorded a profit before tax of DKK 215m against DKK 74m in Q1/2010, up DKK 141m.
- Impairment losses on loans and advances declined from DKK 278m in Q1/2010 to DKK 26m in Q1/2011, excluding provisions for Bank Rescue Package I.
- Core income from business operations amounted to DKK 823m in Q1/2011 against DKK 956m in Q1/2010. One reason for the development was a subdued level of activity in Nykredit Markets compared with Q1/2010.
- Operating costs were reduced from DKK 519m to DKK 437m as a result of general synergies from organisational changes, including the merger with Forstædernes Bank. Also, DKK 70m relating to an expected payment to the Danish Deposit Guaran-tee Fund related to the collapse of Amagerbanken was charged to the income statement in Q1/2011.
- Investment portfolio income dropped from DKK 116m in Q1/2010 to a loss of DKK 111m in Q1/2011. The decline was attrib-utable to eg capital losses on subordinated debt instruments in Amagerbanken (Kalvebod issues).
- The income:cost ratio was 1.4 against 1.1 for the full year 2010 and 1.1 for Q1/2010.
- The balance sheet stood at DKK 198.6bn against DKK 210.4bn at end-2010.
- Profit before tax generated a return on equity of 6.2% pa against 2.4% pa for Q1/2010 and 4.0% for the full year 2010.
Liquidity
- Excess cover relative to statutory liquidity requirements was 212.8% against 251.1% at end-2010. The level is considered adequate considering the Bank's liquidity risks and requirements.
Capital
- The capital adequacy and core capital ratios came to 16.4% and 15.9%, respectively, compared with 15.9% and 15.2% at end-2010. The internal capital adequacy requirement (ICAAP) was 10.2% compared with 8.9% at end-2010.
- Equity was DKK 13.9bn against DKK 13.8bn at end-2010.
Outlook for 2011
Nykredit Bank still expects a profit before impairment losses and tax of DKK 2.4bn, ie unchanged relative to the outlook pre-sented in the Annual Report 2010.
Information about The Nykredit Bank Group
The Nykredit Bank Group's Q1 Interim Report 2011 and further information about the Nykredit Bank Group are available at nykredit.com.
Contact
Karsten Knudsen, Chairman – tel +45 44 55 19 04
Bjørn Mortensen, Managing Director – tel +45 44 55 18 95
