Realkredit Danmark reports net profit of DKK 2,162 million for the first half of 2017

Realkredit Danmark reports net profit of DKK 2,162 million for the first half of 2017

Realkredit Danmark today published its report for the first half of 2017.

Carsten Nøddebo, CEO, says:

“The result is satisfactory and reflects the positive trend in the housing market. In 2017, we expect the Danish economy to see persistently low interest rate levels and a moderate rise in growth from the levels in recent years. The low interest rate level is expected to support the positive trend in house prices and activity in the housing market.”

The report is available at rd.dk. Highlights are shown below:

• The Realkredit Danmark Group recorded a profit of DKK 2,162 million in the first half of 2017, against DKK 2,070 million in the first half of 2016. The profit for the first half of 2017 was supported by rising administration margin income driven primarily by a larger loan portfolio.

• Total income rose 4% over income in the first half of 2016.

• Expenses fell to DKK 362 million from DKK 391 million in the first half of 2016. The fall was partly attributable to lower IT costs.

• Impairments totalled DKK 122 million in the first half of 2017, against DKK 83 million in the first half of 2016, and thus remained at a low level.

• In the first half of 2017, there was demand in particular for fixed-rate loans with a 2% coupon and FlexLån^® loans with refinancing intervals of 5 years or more.

• Interest rates on 1-year FlexLån^® loans remain low. In 2017 to date, Realkredit Danmark has disbursed loans with a negative interest rate to more than 2,300 customers.

• Realkredit Danmark still expects the profit for 2017 to be at the same level as in 2016.

Contact: Carsten Nøddebo, CEO, tel. +45 45 13 20 82.