Interim Report Q1 2018 - Totalkredit A/S

To Nasdaq Copenhagen and the press

Today, Nykredit announces the interim reports of:

Nykredit A/S, CVR 12 71 92 48
Nykredit Realkredit A/S, CVR 12 71 92 80
Nykredit Bank A/S, CVR 10 51 96 08
Totalkredit A/S, CVR 21 83 22 78

Michael Rasmussen, Group Chief Executive, comments on the Interim Report

• Today we are presenting satisfactory financial results, which, in the light of our outlook, are quite favourable. It is very satisfactory that we continue the positive trends of recent years with customer and lending growth and a significant rise in assets under management. Totalkredit and Nykredit Bank are both expanding their market positions.
  
  
• At Nykredit Bank we welcome new customers every single day. It has been three years since we launched our homeowner banking programme, Nykredit BoligBank, and targeted our banking propositions to homeowners. Since then, the number of full-service homeowner and wealth customers has grown by more than 1,000 every month (net). This trend is indeed starting to show in lending and assets under management.
  
  
• Totalkredit, too, is experiencing customer growth. The customer base has increased by close to 2,000 customers per month (net) in the last three years, and today, more than 750,000 Danish homeowners have a Totalkredit loan. A substantial portion of the new customers come from rural districts, where two in three new mortgage loans to homeowners are Totalkredit loans. Extending loans in regions of Denmark where other lenders tend to hold back is one of Nykredit's strategic priorities.
  
  
• The Group's overarching focus in coming years is to continue to improve our competitiveness and ensure that all our customers, new and old, see a Nykredit that insists on making their next experience with us even better than the last.
  
  

Selected highlights from the Q1 Interim Report:

• Business profit of DKK 2.0bn is satisfactory in the light of our outlook. Compared with our exceptionally good performance in Q1/2017, profit decreased. This decrease was mainly driven by significantly lower investment portfolio income and the development in swaps currently offered.
• In the Annual Report for 2017, our full-year guidance for 2018 was a business profit of DKK 6.5bn-7.5bn. We maintain this guidance.
• The Group's efficiency and profitability continue to be at a competitive level with a cost:income ratio of 37.1%, a return on business capital after tax of 11.9% and a return on equity after tax of 8.8%.
• Nykredit Bank's loans and advances, deposits and assets under management rose by 7%, 3.5% and 16%, respectively, from Q1/2017 to Q1/2018.
• Totalkredit's loans and advances at nominal value increased by 7.4% from Q1/2017 to Q1/2018.

  
Reference is made to the Q1 Interim Reports of the individual companies, published today at www.nykredit.com

Contact
For further comments, please contact Nykredit Press Relations at tel + 45 44 55 14 50.

Attachment

• Interim Report Q1 2018 - Totalkredit - 09052018