Coenhagen, Denmark, 2012-02-09 08:01 CET (GLOBE NEWSWIRE) -- Realkredit Danmark today published its annual report for 2011. The report is available on www.rd.dk. Highlights are shown below:
- In 2011, the Realkredit Danmark Group recorded a net profit of DKK 1,874 million, against DKK 1,721 million the year before.
- Total income rose 8% relative to 2010 and amounted to DKK 4,491 million.
- Loan impairment charges rose to DKK 1,057 million, against DKK 976 million in 2010. The charges equalled 0.15% of total mortgage lending, against 0.14% at the end of 2010. The charges were split evenly between charges against personal customer loans and charges against business loans. Loan impairment charges rose in the fourth quarter. The increase was attributable mainly to higher charges against business loans.
- Expenses climbed DKK 37 million to DKK 934 million, partly because of higher IT expenses aimed at improving customer service.
- Delinquencies as a percentage of mortgage payments declined during the second half of the year. The three-month delinquency rate thus stood at 0.46% at the end of 2011, against 0.63% a year earlier.
- At 31 December 2011, the total capital ratio was 35.8%.
- Realkredit Danmark expects to repay the hybrid tier 1 capital of DKK 2 billion raised from the Danish state on 11 May 2012, which is the earliest possible redemption date.
- Realkredit Danmark expects a higher profit in 2012 than in 2011 because of higher administration margins and the focus on cost control.
Carsten Nøddebo, CEO, says: “Although the European economies are seeing financial turbulence, investors show confidence in the Danish economy and Danish mortgage bonds. The upside is cheaper loans to customers. And Realkredit Danmark has managed to get through 2011 with a 9% increase in net profit.”
Contact: Carsten Nøddebo, CEO, tel. +45 45 13 20 82.
5-year financial highlights – Realkredit Danmark Group
|
NET PROFIT FOR THE YEAR (DKK millions) |
2011 | 2010 | 2009 | 2008 | 2007 |
| Administration margin | 3,564 | 3,423 | 3,200 | 2,954 | 2,833 |
| Net interest income | 660 | 614 | 1,718 | 1,963 | 1,740 |
| Net fee income | -488 | -501 | -415 | -431 | -340 |
| Income from investment portfolios | 650 | 463 | 1,113 | 547 | 237 |
| Other income | 105 | 168 | 102 | 149 | 160 |
| Total income | 4,491 | 4,167 | 5,718 | 5,182 | 4,630 |
| Expenses | 934 | 897 | 984 | 1,010 | 1,194 |
| Profit before loan impairment charges | 3,557 | 3,270 | 4,734 | 4,172 | 3,436 |
| Loan impairment charges | 1,057 | 976 | 1,267 | 422 | -10 |
| Profit before tax | 2,500 | 2,294 | 3,467 | 3,750 | 3,446 |
| Tax | 626 | 573 | 873 | 940 | 854 |
| Net profit for the year | 1,874 | 1,721 | 2,594 | 2,810 | 2,592 |
| BALANCE SHEET (AT 31 DECEMBER) | |||||
| (DKK millions) | |||||
| Due from credit institutions etc. | 32,556 | 28,889 | 48,966 | 25,069 | 23,178 |
| Mortgage loans | 723,754 | 704,449 | 691,301 | 669,891 | 627,809 |
| Bonds and shares | 17,300 | 21,688 | 3,332 | 13,062 | 40,059 |
| Other assets | 2,950 | 2,595 | 2,744 | 2,900 | 3,157 |
| Total assets | 776,560 | 757,621 | 746,343 | 710,922 | 694,203 |
| Due to credit institutions etc. | 20,668 | 27,408 | 26,855 | 8,111 | 11,918 |
| Issued mortgage bonds | 695,080 | 671,644 | 660,685 | 647,731 | 630,844 |
| Other liabilities | 14,010 | 13,625 | 15,604 | 16,512 | 15,683 |
| Subordinated debt | 2,045 | 2,061 | 2,037 | - | - |
| Shareholders' equity | 44,757 | 42,883 | 41,162 | 38,568 | 35,758 |
| Total liabilities and equity | 776,560 | 757,621 | 746,343 | 710,922 | 694,203 |
| RATIOS AND KEY FIGURES | |||||
| Net profit for the year as % of avg. shareholders' equity | 4.3 | 4.1 | 6.5 | 7.6 | 7.5 |
| Cost/income ratio (%) | 20.8 | 21.5 | 17.2 | 19.5 | 25.8 |
| Total capital ratio (%) | 35.8 | 39.4 | 44.6 | 56.6 | 10.5 |
| Tier 1 capital ratio (%) | 35.4 | 38.8 | 44.2 | 56.5 | 10.5 |
| Full-time-equivalent staff, end of year | 303 | 320 | 300 | 520 | 519 |
