Realkredit Danmark reports net profit of DKK 2,439 million for 2012

| Source: Realkredit Danmark A/S Realkredit Danmark A/S

 


 		  


 
7 February 2013
 
 
 
 

 

Realkredit Danmark reports net profit of DKK 2,439 million for 2012

 

 

Realkredit Danmark today published its annual report for 2012. The report is available at www.rd.dk. Highlights are shown below:

 

  • In 2012, the Realkredit Danmark Group recorded a net profit of DKK 2,439 million, against DKK 1,874 million the year before. The result was satisfactory and in line with expectations.

 

  • Total income rose to DKK 5,463 million from DKK 4,491 million in 2011.

 

  • Expenses amounted to DKK 891 million, down DKK 43 million, in particular because of lower expenses for operation and development of IT systems.

 

  • Impairment charges rose and totalled DKK 1,319 million in 2012, against DKK 1,057 million a year earlier, reflecting higher charges against facilities to business customers.

 

  • The delinquency rate, calculated as the proportion of due payments remaining unpaid 3½ months after the last due payment date, was stable throughout the year and stood at 0.49% at the end of 2012, against 0.46% at the end of 2011.

 

  • The nominal outstanding bond debt rose DKK 8 billion to DKK 716 billion at the end of 2012.

 

  • Customers holding 1-year FlexLån® loans for a total of approximately DKK 13 billion chose to lock in their mortgage rate for the next three or five years by changing the repayment profile of their loans. In addition, customers holding variable-rate loans for a total of DKK 6 billion chose to switch to fixed-rate loans.

 

  • In 2012, Realkredit Danmark started to offer loans to a small number of selected, large business customers in Norway. Realkredit Danmark continues to provide loans to selected, large business customers in Sweden.

 
 

  • Realkredit Danmark repaid the state hybrid capital of DKK 2 billion in the second quarter of 2012.

 

  • Overall, Realkredit Danmark expects to achieve a higher profit in 2013 than it did in 2012.

 

 

Carsten Nøddebo, CEO, says:

 “In 2012, we have seen borrowers seek loans with less volatile interest rates. This means that most personal customers now lock in the rate on their FlexLån® for three or five years or switch to fixed-rate loans. Combined, these loan types accounted for 90% of gross new lending in the fourth quarter of 2012, which is a significant and positive development. In comparison, the same loan types accounted for only around 50% of new lending in the first quarter of 2010.”

 

 

Contact: Carsten Nøddebo, Chief Executive Officer, tel. +45 45 13 20 82.

 

 

 

 

 

 

 

 

 

 

Financial highlights (five years) - Realkredit Danmark Group    
           
NET PROFIT FOR THE YEAR          
(DKK millions) 2012 2011 2010 2009 2008
Administration margin 4,724 3,564 3,423 3,200 2,954
Net interest income 489 660 614 1,718 1,963
Net fee income -469 -488 -501 -415 -431
Income from investment portfolios 608 650 463 1,113 547
Other income 111 105 168 102 149
Total income 5,463 4,491 4,167 5,718 5,182
Expenses 891 934 897 984 1,010
Profit before loan impairment charges 4,572 3,557 3,270 4,734 4,172
Loan impairment charges 1,319 1,057 976 1,267 422
Profit before tax 3,253 2,500 2,294 3,467 3,750
Tax 814 626 573 873 940
Net profit for the year 2,439 1,874 1,721 2,594 2,810
           
BALANCE SHEET (AT 31 DECEMBER)          
(DKK millions)          
Due from credit institutions etc. 18,727 32,556 28,889 48,966 25,069
Mortgage loans 735,494 723,754 704,449 691,301 669,891
Bonds and shares 35,966 17,300 21,688 3,332 13,062
Other assets 4,017 2,950 2,595 2,744 2,900
Total assets 794,204 776,560 757,621 746,343 710,922
Due to credit institutions etc. 10,079 20,668 27,408 26,855 8,111
Issued mortgage bonds 701,373 695,080 671,644 660,685 647,731
Issued senior debt 21,687 - - - -
Other liabilities 14,655 14,010 13,625 15,604 16,512
Subordinated debt - 2,045 2,061 2,037 -
Shareholders' equity 46,410 44,757 42,883 41,162 38,568
Total liabilities and equity 794,204 776,560 757,621 746,343 710,922
           
RATIOS AND KEY FIGURES          
Net profit for the year as % of avg. shareholders' equity 5.4 4.3 4.1 6.5 7.6
Cost/income ratio (%) 16.3 20.8 21.5 17.2 19.5
Total capital ratio (%) 34.3 35.8 39.4 44.6 56.6
Tier 1 capital ratio (%) 33.7 35.4 38.8 44.2 56.5
Full-time-equivalent staff, end of year 250 303 320 300 520
               

 

Attachments

Realkredit Danmark press release 7 February 2013.pdf Realkredit Danmark Annual Report 2012.pdf