Q1 Interim Report - The Nykredit Realkredit Group
1 January - 31 March 2013
- Core income from lending increased by 8%
- The Nykredit Realkredit Group recorded a profit before tax of DKK 923m against DKK 1,781m for Q1/2012
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Total core income from business operations grew by 4%
- Gross new mortgage lending came to DKK 29bn compared with an exceptionally high level of DKK 67bn in Q1/2012
- Nominal mortgage lending and bank lending totalled DKK 1,159bn, which was unchanged on the beginning of the year
- Core income in Nykredit Markets declined due to lower market activity
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Operating costs, depreciation and amortisation, excluding special value adjustments, were trimmed by 2% to DKK 1,396m
- Costs as a percentage of core income from business operations declined to 54.4% from 57.9% in Q1/2012
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Impairment losses on loans and advances stood at DKK 687m, equal to 0.06%
- Impairment losses on mortgage lending came to 0.04%, which was unchanged on Q1/2012
- 75-day mortgage arrears declined from 0.58% in Q1/2012 to 0.49%
- Impairment losses on bank lending increased from 0.09% to 0.21%, but they remained at a relatively low level
- Investment portfolio income came to DKK 668m against DKK 1,350m in Q1/2012
- Value adjustment and reclassification of strategic equities against equity after tax totalled a charge of DKK 474m.
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The Nykredit Realkredit Group Financial highlights |
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| Q1/ | Q1/ | Change | FY/ | |
| DKK million | 2013 | 2012 | % | 2012 |
| Core income from business operations | 2,565 | 2,471 | 4 | 10,200 |
| Operating costs, depreciation and amortisation | 1,396 | 1,431 | -2 | 5,776 |
| Core earnings before impairment losses | 1,057 | 1,040 | 2 | 3,315 |
| Impairment losses on loans and advances | 687 | 494 | 39 | 2,149 |
| Core earnings after impairment losses | 370 | 546 | -32 | 1,166 |
| Investment portfolio income | 668 | 1,350 | -50 | 2,444 |
| Profit before tax | 923 | 1,781 | -48 | 3,145 |
| Core Tier 1 capital ratio, % | 15.9 | 14.2 | - | 15.8 |
Peter Engberg Jensen, Group Chief Executive, commented:
"In Q1/2013, Nykredit increased core income relative to Q1/2012, contained costs and maintained provisions for losses at the expected level.
Total profit before tax was DKK 923m. In addition to earnings from ordinary business operations of DKK 370m, profit was generated by the return on Nykredit's equity, which was at a satisfactory level.
Nykredit must grow earnings to maintain lending levels in the coming years when the regulatory frameworks in Denmark and internationally tighten capital requirements significantly."
Contacts:
Peter Engberg Jensen, Group Chief Executive, or Nels Petersen, Head of Corporate Communications, tel +45 44 55 14 70/+45 20 22 22 72.
