• The Nykredit Realkredit Group recorded a profit before tax of DKK 3,205m against DKK 1,338m in 2011

• Core income from business operations grew by 11% to DKK 10,200m against DKK 9,188m in 2011
  • Gross new mortgage lending rose by 39% to DKK 218bn against DKK 157bn in 2011
  • Nominal mortgage lending and bank lending went up DKK 35bn to DKK 1,159bn in 2012
  • Personal and commercial lending increased by DKK 22bn and DKK 13bn, respectively
• Value adjustment of derivatives was a charge of DKK 1,067m against a charge of DKK 632m in 2011
• Operating costs, depreciation and amortisation excluding special value adjustments rose by 1% to DKK 5,776m
  • Costs as a percentage of core income from business operations declined to 56.6% from 62.1% in 2011
• Impairment losses on loans and advances were DKK 2,149m, equal to 0.18%
  • Impairment losses on mortgage lending were DKK 1,592m, equal to 0.14%, against DKK 1,026m in 2011
  • Impairment losses on bank lending were DKK 557m, equal to 0.59%, against DKK 388m in 2011
• Core income from securities came to DKK 212m against DKK 644m in 2011 due to a lower risk-free interest rate
• Investment portfolio income grew from DKK 179m to DKK 2,444m in 2012
  • Investment portfolio income notably derived from spread tightening relating to high-rated mortgage bonds.

 
Peter Engberg Jensen, Group Chief Executive, commented:

Nykredit's profit before tax of DKK 3.2bn reflects a stable and robust performance with higher income from business activities and not least high investment portfolio income. 2012 cost levels were stable and losses as expected. However, overall results were affected by the Danish economy which was characterised by low interest rates and growth.

In order to meet the significant demands for higher capital levels in the financial sector, total earnings must be continuously increased in coming years. The need for higher earnings will rise further if Nykredit is to continue recent years' lending growth. Nykredit has increased lending by DKK 160bn, equal to 4% a year, since 2008, whereas aggregate lending in the rest of the Danish financial sector has declined by DKK 250bn in the same period.

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