To Nasdaq Copenhagen A/S (for relevant companies)
and the press
8 November 2018
NYKREDIT TODAY ANNOUNCES Q1-Q3 INTERIM REPORTS 2018 OF:
Nykredit A/S, CVR no 12 71 92 48
Nykredit Realkredit A/S, CVR no 12 71 92 80
Michael Rasmussen, Group Chief Executive, comments on Nykredit's Q1-Q3 Interim Reports 2018
- We continue to record strong business growth. Both Nykredit Bank and Totalkredit deliver lending growth and welcome new customers every single day. Assets under management are growing significantly. Financial results for Q1-Q3 may not quite match last year's record level, but relative to our expectations and on the back of continued business growth they are very satisfactory.
- Thanks to our benefits programme KundeKroner, our customers now enjoy the lowest administration margin payments on the loan types most popular among Danish homeowners. Today our customers' average administration margin payments are the lowest for four years. This clearly demonstrates the benefits of being a customer of a financial provider owned by its customers. It is the Nykredit Group's corporate responsibility to provide secure and attractive loans throughout Denmark at all times and I particularly note that so far this year, we have recorded lending growth in 95 out of 98 municipalities.
Highlights from the Interim Reports for 1 January – 30 September 2018:
- In the Annual Report for 2017, our guidance for business profit and profit before tax for 2018 was in the region of DKK 6.5-7.5 billion. In the H1 Interim Report, the full-year guidance was revised to being at the high end of the above range. This level is maintained.
- Profit for Q1-Q3/2018 declined compared with the exceptionally high profit for Q1-Q3/2017, which was driven partly by high investment portfolio income and considerable reversals of value adjustments of legacy derivatives and loan impairments.
- The Group's efficiency and profitability remain competitive at a cost:income ratio of 38.7%, a return on business capital (ROAC) of 11.3% and a return on equity of 8.4%.
- Nykredit Bank's lending* and assets under management grew by 6% and 34%, respectively, from Q3/2017 to Q3/2018.
- Totalkredit's lending at nominal value went up by 7% from Q3/2017 to Q3/2018.
* Including secured homeowner loans transferred to Totalkredit
| | | | DKK million |
| Nykredit Group | Q1-Q3/ | Q1-Q3/ | |
| | 2018 | 2017 | | Change |
| Income | 9,356 | 11,048 | | -1.691 |
| Costs | 3,617 | 3,590 | | -27 |
| Impairment charges for loans and advances | 213 | (550 | ) | -763 |
| Business profit | 5,527 | 8,009 | | -2,482 |
| Legacy derivatives | 384 | 1,488 | | -1.104 |
| Profit before tax for the period | 5,910 | 9,497 | | -3,587 |
| Tax | 1,166 | 1,942 | | 776 |
| Profit for the period | 4,745 | 7,555 | | -2,811 |
Reference is made to the Interim Reports for the period 1 January – 30 September 2018, published today at www.nykredit.com.
Contact
For further comments, please contact Nykredit Press Relations at tel +45 44 55 14 50.