To The Press
23 August 2018
Today, Nykredit announces the interim reports of:
Nykredit A/S, cvr. nr. 12 71 92 48
Nykredit Realkredit A/S, cvr. nr. 12 71 92 80
Nykredit Bank A/S, cvr. nr. 10 51 96 08
Totalkredit A/S, cvr. nr. 21 83 22 78
Michael Rasmussen, Group Chief Executive, comments on Nykredit's H1 Interim Report 2018
- Nykredit has had a successful half-year. The half-year results presented today may not quite match last year's record level, but relative to our expectations they are very satisfactory. It is particularly positive that Nykredit continues recording strong business growth. Both Nykredit Bank and Totalkredit deliver customer and lending growth, and assets under management continue to grow significantly.
- At Nykredit, we go the extra mile for homeowners – all across the country. It is therefore particularly gratifying that Nykredit Bank's homeowner customer satisfaction is rising for the fifth consecutive half-year and that Totalkredit has recorded lending growth in 94 out of 98 municipalities this year. I am also extremely pleased that with our customer benefits programme KundeKroner we now offer the lowest administration margins on the loan types most popular among Danish homeowners.
Highlights from the H1 Interim Report 2018:
- In the Annual Report for 2017, our guidance for business profit and profit before tax for 2018 was DKK 6.5-7.5 billion. We maintain our guidance, but based on events in H1/2018 we expect profit to be at the high end of the range.
- The business profit for H1/2018 declined compared with the exceptionally high profit for H1/2017, driven partly by high investment portfolio income and considerable reversals of impairment provisions.
- The Group's efficiency and profitability remain at a competitive level with a cost:income ratio of 38.1%, a return on business capital (ROAC) of 11.6% and a return on equity of 8.6%.
- Nykredit Bank's lending* and assets under management grew by 6.5% and 32.8%, respectively, from H1/2017 to H1/2018.
- Totalkredit's lending at nominal value went up by 7.4% from H1/2017 to H1/2018.
*Including secured homeowner loans transferred to Totalkredit
| | | | DKK million |
| Nykredit Group | H1/ | H1/ | |
| | 2018 | 2017 | Change |
| Income | 6,337 | 7,419 | -1,082 |
| Costs | 2,414 | 2,373 | -41 |
| Impairment charges for loans and advances | 103 | (448) | -551 |
| Business profit | 3,821 | 5,494 | -1,673 |
| Legacy derivatives | 219 | 1,366 | -1,147 |
| Profit before tax for the period | 4,040 | 6,860 | -2,820 |
| Tax | 781 | 1,433 | 652 |
| Profit for the period | 3,259 | 5,427 | -2,168 |
Reference is made to the H1 Interim Reports of the individual companies, published today at www.nykredit.com
Contact
For further comments, please contact Jens Theil, Head of Nykredit Press Relations, at tel +45 44 55 14 50.