Nykredit Bank Group - Annual Report 2017

TODAY, NYKREDIT ANNOUNCES THE ANNUAL REPORTS OF:

Nykredit A/S, CVR no 12 71 92 48
Nykredit Realkredit A/S, CVR no 12 71 92 80
Nykredit Bank A/S, CVR no 10 51 96 08
Totalkredit A/S, CVR no 21 83 22 78

MICHAEL RASMUSSEN, GROUP CHIEF EXECUTIVE, COMMENTS ON THE FINANCIAL
STATEMENTS

• The Nykredit Group delivered in 2017 its best-ever performance. This is very satisfactory. Based on profit for the year, it is recommended to the Annual General Meeting that ordinary dividend of DKK 4.0bn be distributed, of which our largest shareholder, Forenet Kredit, will receive DKK 3.2bn. Never before have we distributed dividend of this magnitude, and this is the first dividend distribution since 2012.
   
• In 2017 Totalkredit received a capital contribution from Forenet Kredit, which enabled the Group to pay out the first KundeKroner loyalty bonuses. In 2018 the Nykredit Group will give discounts of more than DKK 1bn to Totalkredit homeowner customers and to the Group's business customers. To homeowners with fully mortgaged homes this means that, after the deduction of the KundeKroner discount, they are currently enjoying the lowest administration margins in the market on our main products. I am proud that we are able – on account of mainly being owned by an association of customers – to share our success with our customers. This is a major motivation for everybody in the Nykredit Group.
   
• Our performance in 2017 builds on Nykredit's efforts in recent years aimed at making the Group more profitable, efficient and customer-centric. Also, Nykredit's capital position has been stabilised, and we now have a firm grip on fundamentals: Costs, earnings, distribution and capital. We are now able to put more energy into improving customer experiences. It is the overarch-ing priority of the Executive Board in the years to come to markedly increase our competitiveness.
   
• In 2017 business profit benefited from high investment portfolio income, reversal of loan impairments and positive value adjustments of swaps currently offered, but we cannot be certain that this will continue in 2018. Against this backdrop, our outlook for 2018 is a business profit of DKK 6.5bn-7.5bn.

Reference is made to the Annual Reports for 2017 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.