Q1 Interim Report – the Nykredit Realkredit Group 1 January 2012 – 31 March 2012

| Source: Nykredit Realkredit A/S Nykredit Realkredit A/S

Results

  • The Nykredit Realkredit Group recorded a profit before tax of DKK 1,788m against DKK 1,004m in Q1/2011
  • 13.6% growth in core income from business operations totalling DKK 2,471m
    • The business area Retail grew by 14.4% to DKK 1,538m, while Totalkredit Partners grew by 19.7% to DKK 419m. Wholesale improved earnings by 4.9% to DKK 596m
    • In Q1/2012 nominal mortgage lending and bank lending grew by a total of DKK 14.5bn to DKK 1,138bn
    • Gross new mortgage lending rose to DKK 67bn, up DKK 33bn on Q1/2011
    • Higher activity and customer levels in Markets and Asset Management
  • Operating costs, depreciation and amortisation excluding special value adjustments rose by 1.8% to DKK 1,431m
    • Costs as a percentage of core income from business operations declined to 57.9% against 64.6% in Q1/2011
    • Special value adjustments equalled net income of DKK 175m
  • Impairment losses on loans and advances were DKK 494m, equal to 0.04% of loans and advances
    • Impairment losses on mortgage lending stood at DKK 401m, or 0.04% of loans and advances, against DKK 252m in Q1/2011
    • Impairment losses on bank lending were DKK 93m, or 0.09% of loans and advances, against DKK 26m in Q1/2011
    • The Group's impairment losses were as expected and chiefly related to personal customers and SMEs
  • Core income from securities came to DKK 89m against DKK 131m in Q1/2011
  • Investment portfolio income came to DKK 1,350m against DKK 594m in Q1/2011
    • Investment portfolio income chiefly stemmed from Danish and international covered bonds and high-rated corporate bonds
    • The Group had no exposures to GIISP countries
  • Cost of capital in the form of net interest on hybrid capital was DKK 115m, which was unchanged on Q1/2011.

 

Capital

  • The total capital ratio was 17.2% at end-Q1/2012 against an internal capital adequacy requirement of 9.7%
  • The core Tier 1 capital ratio amounted to 14.2%
  • Group equity totalled DKK 56.6bn against DKK 55.3bn at the beginning of the year.

 

Peter Engberg Jensen, Group Chief Executive, has the following comments:

In Q1/2012 Nykredit's core income from business operations grew by 14%. Gross new mortgage lending contributed to this development, totalling DKK 67bn against DKK 34bn last year.

Cost and loan impairment levels were as expected. Core earnings after impairment losses were DKK 553m. Coupled with a very satisfactory development in investment portfolio income, this resulted in a robust pre-tax profit of DKK 1,788m.

 

Contacts
Peter Engberg Jensen, Group Chief Executive, or Nels Petersen, Head of Corporate Communications, tel +45 44 55 14 70/+45 20 22 22 72.

 

 

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