H1 Interim Report - The Nykredit Realkredit Group

1 January 2010 - 3O June 2010

Results
- The Group, excluding Nykredit Forsikring, recorded a profit before tax 
of DKK 1,680m against DKK 2,052m in H1/2009 

- Continued growth in customer-oriented business

- Core income from customer-oriented business improved by 12.3% to 
DKK 4,650m relative to H1/2009 

- Mortgage lending in nominal terms and bank lending grew by a total of 
DKK 26bn to DKK 1,072bn in H1/2010 

- Operating costs, depreciation and amortisation excluding special value
adjustments declined by DKK 25m to DKK 2,722m 

- Costs as a percentage of core income from business operations declined 
from 66.4% in H1/2009 to 58.5% in H1/2010 

- Special value adjustments came to DKK 273m of which commission under the
government guarantee scheme was DKK 247m 

- Impairment losses on loans and advances were DKK 1,246m compared with DKK
1,831m in H1/2009 

- Impairment losses on mortgage lending were DKK 498m, equal to 0.05% of 
lending

- Impairment losses on bank lending came to DKK 634m, equal to 0.64% of 
lending 

- Impairment losses relating to the government guarantee scheme totalled 
DKK 114m 

- Core income from securities amounted to DKK 226m compared with 
DKK 527m in H1/2009 

- Money market rates averaged 1.06% against 2.36% in H1/2009

- Investment portfolio income came to DKK 1,312m against DKK 2,325m in 
H1/2009

- Cost of capital in the form of net interest on hybrid core capital amounted
to DKK 223m 

- The sale of Nykredit Forsikring resulted in a gain of DKK 1,512m in H1/2010.

Capital structure
- The core capital and capital adequacy ratios were 17.2% and 18.4%,
respectively, at end-H1/2010 

- The individual capital need stood at 9.6%

- The Group's equity amounted to DKK 53.9bn.

Outlook for 2010
Nykredit's core earnings before impairment losses are still expected to be 
in the region of DKK 3,500m-4,000m. The development in impairment 
losses on loans and advances and investment portfolio income has exceeded our
forecast made at the beginning of the year. Therefore, 
the forecast for profit before tax for the full year has been revised upwards
to DKK 1.5bn-2.5bn excluding the gain from the sale of Nykredit 
Forsikring of about DKK 1.5bn. Profit before tax will depend on impairment
losses on loans and advances as well as financial market trends in 
general.

Peter Engberg Jensen, Group Chief Executive, has the following comments on 
the results: 
The first six months of 2010 have been characterised by satisfactory progress.
Total lending has grown by DKK 26bn, and income has increased 
12%. Further, costs have declined, and impairment losses on bank lending have
fallen significantly. This development has prompted us 
to increase our forecast of profit before tax to DKK 1.5bn-2.5bn. In addition
to the good financial performance, the merger between Forstædernes 
Bank and Nykredit Bank and the divestment of Nykredit Forsikring have been
completed successfully. 

Contacts
Peter Engberg Jensen, Group Chief Executive, or Nels Petersen, Head of 
Corporate Communications, tel +45 44 55 14 70 or +45 20 22 22 72