Nykredit Bank A/S – a subsidiary of Nykredit Realkredit A/S consolidated in the Nykredit Group's financial statements
1 January 2011 – 30 September 2011
- Profit before tax came to DKK 748m, up DKK 430m on Q1-Q3/2010.
- Impairment losses on loans and advances were DKK 138m against DKK 1,053m incl Bank Rescue Package I in Q1-Q3/2010.
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Core income from business operations amounted to DKK 2,610m in Q1-Q3/2011 against DKK 2,905m in Q1-Q3/2010. The
decline of DKK 295m was mainly attributable to lower Treasury income and subdued activity in Nykredit Markets. By contrast,
income from Corporate Banking rose by DKK 147m. -
Adjustment of the market value of interest rate swaps was an expense of DKK 345m against an expense of DKK 71m in Q1-
Q3/2010. - Operating costs were trimmed by DKK 101m to DKK 1,301m in Q1-Q3/2011.
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Investment portfolio results dropped from a gain of DKK 219m in Q1-Q3/2010 to a loss of DKK 111m in Q1-Q3/2011. This
development was in part due to capital losses on subordinated debt instruments in Amagerbanken and Fjordbank Mors (Kalvebod issues) of a total of DKK 190m. Moreover, investment portfolio income was fairly high in Q1-Q3/2010. - The Bank has no direct exposures in sovereign debt issued by the GIISP countries.
- In total, Amagerbanken, Fjordbank Mors and Max Bank have generated expenses of around DKK 325m.
- The income:cost ratio was 1.5 compared with 1.1 in Q1-Q3/2010.
- The balance sheet stood at DKK 202.7bn against DKK 210.4bn at end-2010.
- Profit before tax generated a return on equity of 7.1% pa against 3.3% pa for Q1-Q3/2010.
Liquidity
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Excess cover relative to statutory liquidity requirements was 184.6% against 251.1% at end-2010. The level is considered
adequate considering the Bank's liquidity risk and requirements.
Capital
- The total capital ratio came to 18.0% and the Tier 1 capital ratio 17.2%. The core Tier 1 capital ratio was 17.0%.
- The internal capital adequacy requirement (ICAAP) was 10.2%.
- Equity stood at DKK 14.3bn against DKK 13.8bn at end-2010.
Outlook for 2011
Based on the development in Q1-Q3 and the expectation of a continued, subdued activity level for the rest of the year, the Bank
expects a profit before tax and impairment losses of DKK 1.3bn for the full year 2011 against DKK 1.7bn forecast in the H1
Interim Report 2011.
Information about the Nykredit Bank Group
The Q1-Q3 Interim Report 2011 of the Nykredit Bank Group and the Nykredit Group and further information about Nykredit are
available at nykredit.com.
