Interim Report Q1 - Nykredit Realkredit Group

Nykredit today announces its Q1 Interim Report 2021 of:
Nykredit A/S, CVR no 12 71 92 48
Nykredit Realkredit A/S, CVR no 12 71 92 80

Michael Rasmussen, Group Chief Executive, comments on the Q1 Interim Report 2021:

– Our Q1 results presented today are highly satisfactory. Danish homeowners and many Danish business sectors are prospering even as covid-19 has yet to loosen its grip. Lower-than-expected impairment charges, in particular, are a testament to that. At the same time, we continue to record growth in lending and assets under management along with tailwinds in financial markets in Q1.

– Housing market activity is high. When buying a new home, many customers have seized the opportunity to switch to Nykredit Bank or one of the 46 other Totalkredit partner banks. As a result, Totalkredit recorded customer growth, and in Q1 alone lending exceeded DKK 20 billion. We look forward to demonstrating the significance of our mutual ownership structure to our new customers. We share our success with customers through our KundeKroner benefits programme, which reduces loan costs. This is only possible thanks to the backing of Forenet Kredit. Because of KundeKroner, homeowners' average administration margin payments to Totalkredit are now the lowest in more than seven years. With the backing of Forenet Kredit, we have launched several unique products across the Group that will make it easier and more affordable for our customers to make green choices.

– We expect the price rises in the housing market to subside during the year. As much as we enjoy welcoming new customers, we would also welcome a slower-paced housing market. The Copenhagen area and Aarhus especially would benefit from more moderate price developments. Regardless of current housing market trends, homebuyers should always view buying a house or a flat as getting a home rather than an investment. We always advise our customers to buy a home because they want to live there for a number of years to come and not because they anticipate price rises.

Highlights from the Q1 Interim Report 2021:

• Business profit and profit before tax was DKK 2,684 million and DKK 2,920 million, respectively, in Q1/2021.
• On 15 April 2021, we raised our guidance for business profit and profit before tax for 2021 from DKK 6.0-6.5 billion to DKK 7.25-7.75 billion. The earnings upgrade was driven by good business growth, the prospect of lower-than-expected loan impairment charges as well as a favourable trend in investment portfolio income and the legacy derivatives portfolio.
• Totalkredit's lending at nominal value has increased by 8% since end-March 2020 to currently DKK 819.1 billion at end-March 2021.
• Nykredit Bank's lending* has grown by 1% since end-March 2020 to DKK 76.9 billion at end-March 2021.
• Assets under management have increased by 29% since end-March 2020 to DKK 393.7 billion at end-March 2021.
• Nykredit maintains a very strong capital position with a Common Equity Tier 1 (CET1) capital ratio of 20%.

Contact
For further comments, please contact Nykredit Press Relations at tel +45 20 37 28 69.

_{* Including secured homeowner loans transferred to Totalkredit}

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