| Press release | Group Communications Tel. +45 45 14 14 00 18 July 2018 |
Realkredit Danmark reports net profit of DKK 2,475 million for the first half of 2018
Realkredit Danmark today published its report for the first half of 2018.
Carsten Nøddebo, CEO, says:
“The result benefits from an increase in lending and a fall in impairments from the levels for the same period of last year. In the personal customer market, the increase in lending was based on rising house prices and strong housing market activity. Growth in lending to personal customers also benefited from the launch of the FlexLife® product, which offers flexible repayment and an interest-only period of up to 30 years. Since the introduction of FlexLife®, we have disbursed loans in the amount of DKK 12 billion, which is considerably more than expected.”
The report is available at rd.dk. Highlights are shown below:
- In the first half of 2018, the Realkredit Danmark Group recorded a net profit of DKK 2,475 million, against DKK 2,162 million in the first half of 2017. The profit for the first half of 2018 was supported by an increase in the loan portfolio.
- Impairments amounted to an income of DKK 191 million, against a charge of DKK 122 million in the first half of 2017. Both in the first half of this year and the first half of last year, we reversed charges previously made, primarily against facilities to business customers.
- Customer demand for the new mortgage loan product, FlexLife®, remained strong. FlexLife® loans thus accounted for 19% of new lending to personal customers. In the 60+ age group, the figure was 48%.
- In the first half of 2018, customers primarily opted for fixed-rate loans and FlexLån® loans with refinancing intervals of 5 years.
- Realkredit Danmark still expects the profit for 2018 to be at the same level as in 2017.
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