Nykredit Bank A/S - H1 Interim Report 2019

Nykredit today announces H1 Interim Reports 2019 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 Nykredit's H1 Interim Report 2019:

Our half-year results presented today are highly satisfactory. We are currently experiencing record-high remortgaging activity, and many homeowners across Denmark are obtaining historically low loan rates – probably the lowest in the world. Many homeowners are also taking the opportunity to switch banks or mortgage providers. This is clearly felt at Nykredit where recent years' strong customer growth has continued at Nykredit Bank as well as Totalkredit and has generated significant growth in lending and assets under management.

We are particularly pleased that this gives us the opportunity to show even more Danes what a customer-owned financial provider can do for them. Backed by Forenet Kredit, we can share our progress with our new as well as our long-standing customers. To this end, we paid back more than DKK 700 million to homeowners, businesses and farmers in H1/2019 alone.

For several years, we have focused on reinforcing the foundation on which Nykredit is built. Today Nykredit has a firm grip on fundamentals – costs, earnings, capital structure and risks. We can now further boost our efforts to enhance the customer experience and invest in the Nykredit of tomorrow. We took steps in this direction with the reorganisation implemented in H1, and with the acquisition of Sparinvest we have invested significantly in the consolidation of both Nykredit Bank and the Totalkredit alliance. We are also investing in compliance to further strengthen our efforts in this key area.

Highlights from the H1 Interim Report 2019:

• Nykredit Bank's lending* and assets under management have grown by 10.4% and 15%, respectively, since 30 June 2018.
• Totalkredit's nominal lending has increased by 7.7% since 30 June 2018.
• The Group's efficiency and profitability remain at a competitive level with a cost:income ratio of 33.4%, a return on equity of 9.2% and a return on business capital (ROAC) of 12.2%.
• The Nykredit Group's outlook for business profit and profit before tax for 2019 was raised to between DKK 7.25 billion and DKK 7.75 billion on 16 July 2019. In the Annual Report for 2018, the outlook for business profit and profit before tax was DKK 6.5-7.0 billion. Since the upward revision of the outlook, financial markets have seen significant movements, resulting in declining Danish long-term interest rates. This caused a loss on legacy derivatives which impacts profit before tax. The outlook for profit before tax is consequently subject to particular uncertainty.

Contact

For further comments, please contact Nykredit Press Relations at tel +45 44 55 14 50.

* Including secured homeowner loans transferred to Totalkredit

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