| Press release | Tel. +45 45 14 14 00 23 July 2021 |
Realkredit Danmark reports net profit of DKK 1,948 million for the first half of 2021
Realkredit Danmark today published interim report for the first half of 2021.
Carsten Nøddebo, CEO, comments on the financial results:
“The speedy recovery of the Danish economy and employment means that impairment charges for the first half of 2021 landed at a normalised level. Lending activity was satisfactory during this unusual period, when certain parts of Denmark have seen very large increases in house prices. Although it is uncertain how things will develop in the coming period, we expect the increase in prices in the housing market to slow, which may contribute to lowering the risk of overpriced properties in the housing market.
We still see very considerable demand for the FlexLife® loan type, and are also pleased to note the keen interest in green mortgage bonds – which is evidence that the important sustainability agenda has not suffered as a result of the coronavirus pandemic.”
The report is available at rd.dk. Highlights are shown below:
- The Realkredit Danmark Group recorded a net profit of DKK 1,948 million in the first half of 2021, against DKK 1,783 million in the first half of 2020. The profit was affected by lower loan impairment charges.
- Loan impairment charges amounted to an expense of DKK 164 million in the first half of 2021, against DKK 470 million in the first half of 2020. Loan impairment charges have reached a more normal level in the first half of 2021.
- In the first half of 2021, Realkredit Danmark maintained its focus on green bond initiatives. Customer responses have been very positive, and total lending now amounts to DKK 11.5 billion.
- Customer interest in Realkredit Danmark’s most recently launched products, the variable-rate FlexLife® and fixed-rate FlexLife® loans, is still very strong, and at 30 June 2021, Realkredit Danmark had disbursed loans for DKK 66 billion.
- Fixed-rate mortgages are low-risk and low-margin loans. They have regained the role as the preferred mortgage loan type among Danish homeowners. This, combined with the fact that customers are increasingly making repayments on their loans, resulted in a small decrease in administration margin income.
- Realkredit Danmark expects net profit for 2021 to be marginally lower than net profit for 2020.
Contact: Carsten Nøddebo, CEO, tel. +45 45 13 20 82.
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