H1 INTERIM REPORT - THE NYKREDIT BANK GROUP 1 JANUARY 2008 - 30 JUNE 2008 - The Group recorded a profit before tax of DKK 267m against DKK 545m for H1/2007 - Profit before tax generated a return on equity of 8.6% pa against 23.0% for H1/2007 and 19.6% for FY 2007 - This development was prompted by the financial market turmoil as interest rate trends, including yield spread movements, had an adverse effect on income from securities and derivatives - The Bank's customer-oriented activities generally performed satisfactorily leading to a 9% rise in core income - Impairment losses amounted to DKK 33m against DKK 3m in H1/2007. Property market trends were generally not reflected in impairment losses - The Bank has a sound level of liquidity, which strengthened in H1/2008 chiefly on the back of the issue of notes for a nominal amount of DKK 6.7bn under the Bank's EMTN programme - The capital adequacy ratio came to 9.3% against 11.7% at end-2007 and 11.7% at 30 June 2007