| To Nasdaq Copenhagen A/S and the press |
| 3 November 2022 |
Nykredit today announces Q1-Q3 Interim Reports 2022 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 the Q1-Q3 Interim Report 2022:
- Our Q1-Q3 results presented today are highly satisfactory. Nykredit remains well placed to support our customers and to foster development and growth all over Denmark at all times.
- In the first nine months of the year, we maintained a positive momentum with lending and customer growth in both Totalkredit and Nykredit Bank, and we further consolidated our market position within all our business areas. Nykredit recorded increased income from the underlying business due to high mortgage activity etc. Results were positively impacted by a strong credit quality, which has resulted in low loan impairments as well as a favourable development in derivatives. All value adjustments have been recognised through profit or loss.
- To be the customer-owned, responsible financial provider for people and businesses all over Denmark lies at the core of our strategy. We want to play our part in the green transition. We have therefore now set emissions targets for our portfolios of owner-occupied dwellings and real estate, and as the first of the large systemically important financial institutions, we have joined the Science Based Target Initiative to obtain target validation according to international standards.
- At an extraordinary general meeting to be held on 18 November, the Board of Directors will recommend that Nykredit distributes extraordinary dividend of DKK 1,550 million. This corresponds to the dividend policy target for earnings generated in 2019 and 2020, which were not distributed due to the Danish FSA's recommendation on restriction of distributions during the covid-19 pandemic.
Highlights from the Q1-Q3 Interim Report 2022:
- Business profit and profit before tax for Q1-Q3/2022 was DKK 6,674 million and DKK 7,564 million, respectively.
- On 27 October Nykredit raised its guidance for profit before tax for 2022 to DKK 9.5-10.0 billion.
- Totalkredit's lending at nominal value has increased by 3.9% since end-September 2021 to DKK 887 billion at end-September 2022.
- Nykredit Bank's lending* has increased by 22.3% since end-September 2021 to DKK 87.3 billion at end-September 2022.
- Assets under management totalled DKK 393 billion at end-September 2022.
- Nykredit will continue to hold a very strong capital position after the recommended distribution of dividend with a Common Equity Tier 1 (CET1) capital ratio of 19.4%.
| DKK million | |||
| Nykredit Group | Q1-Q3/ | Q1-Q3/ | |
| 2022 | 2021 | Change | |
| Net interest income | 7,817 | 7,444 | 373 |
| Net fee income | 2,212 | 1,737 | 475 |
| Wealth management income | 1,737 | 1,695 | 42 |
| Net interest from capitalisation | (475) | (362) | -113 |
| Net income relating to customer benefits programmes | (324) | (294) | -30 |
| Trading, investment portfolio and other income | 127 | 1,711 | -1,584 |
| Income | 11,094 | 11,930 | -837 |
| Costs | 4,645 | 4,555 | -90 |
| Business profit before impairment charges | 6,449 | 7,376 | -927 |
| Impairment charges for loans and advances | (225) | (68) | 157 |
| Business profit | 6,674 | 7,444 | -770 |
| Legacy derivatives | 890 | 353 | 537 |
| Profit before tax for the period | 7,564 | 7,797 | -233 |
| Tax | 1,363 | 1,352 | -11 |
| Profit for the period | 6,200 | 6,444 | -244 |
For further comments, please contact Nykredit Press Relations at tel +45 27 58 95 88.
Attachment
