H1 Interim Report - The Nykredit Bank Group

1 January 2010 - 30 June 2010

- The Group recorded a profit before tax of DKK 157m against a loss of DKK
1,184m for H1/2009. Excluding the Bank's payments and provisions under Bank
Rescue Package I, profit was DKK 518m in H1/2010. 

- The change in profit before tax is mainly attributable to a pronounced
decline in impairment losses etc from DKK 1,856m in H1/2009 to DKK 749m.
Impairment losses on a portfolio of terminated exposures relating to corporate
customers of Forstædernes Bank dropped from DKK 1.2bn to DKK 0.4bn, profit from
Corporate Banking decreased by DKK 382m, while profit from Retail Banking
increased by DKK 55m. Provisions under Bank Rescue Package I for the period
totalled DKK 114m against DKK 163m in H1/2009. 

- Core income from business operations rose by a satisfactory 11% from DKK
1,736m to DKK 1,935m in H1/2010. 

- Administrative expenses amounted to DKK 992m against DKK 1,017m in H1/2009.
This development was due to fewer staff members, including the effect of a keen
focus on cost containment and synergies from organisational changes. 

- The balance sheet stood at DKK 228bn, up DKK 12.7bn on end-2009.

- Liquidity remained sound in H1/2010 with excess liquidity cover relative to
statutory requirements of 265.8% against 323.9% at end-2009. 

- The capital adequacy and core capital ratios came to 12.7% against 12.0%
compared with 12.3% at end-2009. 

- Equity stood at DKK 12,464m against DKK 12,374m at the beginning of 2010. The
increase equals profit for the period. 

- Profit before tax generated a return on equity of 2.5% pa against a negative
return of 23.7% in H1/2009 and a negative return of 46.2% for the full year
2009. 

Outlook for 2010
H1/2010 saw satisfactory growth in core income and lower impairment losses on
loans and advances than expected at the beginning of the year. Trends from H1
are expected to continue and Management expects Nykredit Bank to record a
profit before tax for the full year. The development in impairment losses on
loans and advances is, however, still subject to uncertainty. 

Information about The Nykredit Bank Group
The Nykredit Bank Group's H1 Interim Report 2010 and further information about
the Nykredit Bank Group are available at nykredit.com. 

Contacts
Karsten Knudsen, Chairman - tel +45 44 55 19 04
Bjørn Mortensen, Managing Director - tel +45 44 55 18 95