1 January 2011 - 30 June 2011
Results
-
The Nykredit Realkredit Group recorded a profit before tax of DKK 1,389m against DKK 1,680m in H1/2010
- In H1/2010 results were affected by exceptionally high investment portfolio income
-
Profit after tax was DKK 1,195m against DKK 1,241m, excluding profit from the divestment of Nykredit Forsikring of DKK 1,512m, in H1/2010
- In Q1/2011 deferred tax of DKK 133m was recognised as income following a final judgment in a tax case
-
Growth in customer-oriented lending business of 3% on H1/2010
- Core income from customer-oriented mortgage and bank lending was DKK 3,860m against DKK 3,738m in H1/2010
- In H1/2011 mortgage lending in nominal terms and bank lending grew by a total of DKK 16bn to DKK 1,105bn
- Rising share of the mortgage market, but low gross new lending of DKK 64bn in H1/2011
-
Core income from Markets & Asset Management amounted to DKK 557m against DKK 912m in H1/2010
- The level of income from customer-oriented securities trading was low due to the general market climate in 2011
-
Operating costs, depreciation and amortisation excluding special value adjustments rose to DKK 2,881m or by 5.8%
- Special value adjustments came to DKK 150m of which DKK 85m was a payment to the Danish Guarantee Fund for Depositors and Investors
-
Impairment losses on loans and advances decreased by 34% to DKK 745m in H1/2011
- Impairment losses on mortgage lending were DKK 544m, or 0.05% of lending, against DKK 498m in H1/2010
- Impairment losses on bank lending were DKK 201m, or 0.23% of lending, against DKK 634m in H1/2010
- Core income from securities was DKK 293m compared with DKK 226m in H1/2010
- Investment portfolio income came to DKK 769m against DKK 1,305m in H1/2010
- Cost of capital in the form of net interest on hybrid core capital was DKK 229m, which was unchanged on H1/2010.
Capital
- The capital adequacy ratio was 19.5% at end-H1/2011 compared with an internal capital adequacy requirement of 9.6%
- The core capital ratio stood at 19.5%. Excluding hybrid core capital, the ratio was 16.0%
- The Group's equity amounted to DKK 55.7bn against DKK 55.3bn at the beginning of the year.
Outlook for 2011
Lending activity and securities trading in the Danish market were at a low level in H1/2011. This affected Nykredit's earnings despite a growing market share. The forecast of impairment losses on loans and advances remains around DKK 1.5bn for the full year.
Against this background, the forecast of profit before tax for the full year has been reduced to DKK 2.5bn-3.0bn.
Peter Engberg Jensen, Group Chief Executive, has the following comments:
Nykredit recorded a robust profit before tax of DKK 1.4bn in H1/2011.
The development has been satisfactory in a number of respects. Total lending rose by DKK 16bn to DKK 1,105bn, and the Group's lending accounted for 29.3% of total lending in Denmark. Total loan impairments were DKK 745m or 34% lower than in the same period in 2010. Further, Nykredit's own investments generated an income of DKK 769m.
Activity in the financial sector has been lower than expected at the start of the year, which has affected total income and thus Nykredit's profit and forecasts. The development in recent months suggests that activity will remain at a low level. The develop-ment in Nykredit's costs will be adjusted accordingly.
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
