1 January 2012 – 30 June 2012
- The Nykredit Realkredit Group recorded a profit before tax of DKK 2,241m against DKK 1,389m in H1/2011
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Core income from business operations increased by 15.8%
- In H1/2012 nominal mortgage lending and bank lending grew by DKK 33bn to DKK 1,156bn
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Operating costs, depreciation and amortisation, excluding special value adjustments, rose by 0.3%
- Costs as a percentage of core income from business operations declined to 56.6% from 65.4% in H1/2011
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Impairment losses on loans and advances stood at DKK 991m, equal to 0.08%
- Impairment losses on mortgage lending went up from 0.05% to 0.07%, as expected
- 75-day mortgage arrears were 0.57% against 0.66%
- Impairment losses on bank lending increased from 0.23% to 0.24%, and they remain low
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Investment portfolio income grew from DKK 769m to DKK 1,533m
- Investment portfolio income notably derived from spread tightening relating to high-rated covered bonds
Fitch Ratings has assigned Nykredit Realkredit and Nykredit Bank issuer ratings of A/F1.
The Nykredit Realkredit Group
Financial highlights
H1/ | H1/ | Change | FY | |
DKK million | 2012 | 2011 | % | 2011 |
Core income from business operations | 5,102 | 4,406 | 16 | 9,188 |
Operating costs, depreciation and amortisation | 2,890 | 2,881 | 0 | 5,709 |
Core earnings before impairment losses | 1,930 | 1,594 | 21 | 3,035 |
Impairment losses on loans and advances | 991 | 745 | 33 | 1,414 |
Core earnings after impairment losses | 939 | 849 | 11 | 1,621 |
Investment portfolio income | 1,533 | 769 | 99 | 179 |
Profit before tax | 2,241 | 1,389 | 61 | 1,338 |
Core Tier 1 capital ratio, % | 14.5 | 16.0 | - | 13.9 |
Peter Engberg Jensen, Group Chief Executive, has the following comments:
– Nykredit has reported a profit of DKK 2.2bn for H1/2012 compared with DKK 1.4bn in H1/2011, corresponding to a rise of 61%.
– The robust profit is the result of a good investment portfolio performance coupled with cost and income initiatives implemented to prepare Nykredit for future international regulation.
– In H1/2012 Nykredit's income improved, the cost:income ratio declined and loss levels were moderate. This trend must be sustained in coming years in order to meet the sizeable capital requirements faced by financial companies going forward. Nykredit is one of the best capitalised financial companies in Europe, but the new capital requirements oblige us to hold much more equity.
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.