To Nasdaq Copenhagen A/S
and the press
5 February 2020
Nykredit today announces the Annual Reports for 2019 of:
Nykredit A/S, CVR no 12 71 92 48
Nykredit Realkredit A/S, CVR no 12 71 92 80
Nykredit Bank A/S, CVR no 10 51 96 08
Totalkredit A/S, CVR no 21 83 22 78
Michael Rasmussen, Group Chief Executive, comments on the Financial Statements:
- The full-year results presented today are highly satisfactory. The Annual Report marks a year of high customer and business growth all across the Group. Nykredit Bank and Totalkredit lending increased by 8% and 10%, respectively.
- In 2019 homeowners throughout Denmark seized the opportunity to remortgage and obtain historically low loan rates. At the same time, many homeowners opted to switch to Nykredit Bank or one of our Totalkredit partners. We are pleased to welcome each and every new customer. In 2019 alone, the number of homeowners with a Nykredit Group mortgage loan grew by more than 30,000.
- Our customer growth gives us the opportunity to show more Danes what a customer-owned financial provider can do for them. In 2019, for the first time, we have given back more than DKK 1.5 billion to our customers. This is only possible because we are owned by Forenet Kredit. We are proud that we can share our success with our customers.
Highlights from the Annual Report:
- In 2019 Nykredit Bank's lending and assets under management grew by 8% and 59%, respectively. The increase in assets under management was mainly driven by the acquisition of Sparinvest.
- Totalkredit's nominal lending increased by 10% in 2019.
- The Group's efficiency and profitability remain at a competitive level with a cost:income ratio of 36.5% and a return on business capital (ROAC) of 12.4%.
- The full-year outlook for profit before tax and business profit was between DKK 6.5 billion and DKK 7.0 billion at the beginning of the year. The business profit for 2019 landed at DKK 8.3 billion, whereas profit before tax was DKK 8.8 billion, including a one-off gain (badwill) of DKK 564 million from the acquisition of LR Realkredit.
- The outlook for profit before tax and business profit for 2020 is between DKK 6.25 billion and DKK 6.75 billion.
| DKK million | |||||
| Nykredit Group | |||||
| 2019 | 2018 | 2017 | 2016 | 2015 | |
| Income | 14,656 | 12,023 | 14,010 | 13,411 | 12,407 |
| Costs | 5,347 | 4,890 | 5,067 | 5,285 | 5,071 |
| Impairment charges for loans and advances | 994 | 380 | 379 | 680 | 920 |
| Business profit | 8,314 | 6,753 | 8,564 | 7,446 | 6,416 |
| Legacy derivatives | (112) | 280 | 1,517 | (763) | 229 |
| Badwill, impairment of goodwill and amortisation of customer relationships | 564 | - | - | - | (1,965) |
| Profit before tax for the year | 8,766 | 7,033 | 10,081 | 6,683 | 4,680 |
| Tax | 1,340 | 1,242 | 2,025 | 1,326 | 1,447 |
| Profit for the year | 7,427 | 5,792 | 8,056 | 5,357 | 3,233 |
Reference is made to the Annual Reports for 2019, published today at nykredit.com
For further comments, please contact Nykredit Press Relations at tel +45 44 55 14 50.
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