Nykredit Bank A/S Reports Strong H1 2025 Financial Performance
Nykredit today has revealed its H1 Interim Report for 2025, demonstrating a robust financial performance that highlights the bank's growing strength in the financial sector.
The report indicates that the Nykredit Group has undergone significant changes following the acquisition of Spar Nord, which was completed in late May. This acquisition marks a pivotal moment for the bank and will positively impact its future operations and financial results.
Acquisition of Spar Nord
Incorporating Spar Nord into its financial statements for the latter part of H1 2025, Nykredit is set to benefit from enhanced profit guidance for the year ahead. Michael Rasmussen, the Group Chief Executive, shared optimism regarding the H1 performance, noting a post-tax profit of DKK 6,257 million for the Nykredit Group. He also highlighted an upward revision of the full-year profit guidance to between DKK 11.00 and DKK 12.00 billion.
This upgrade is largely attributable to ongoing strong core business operations evident from increased net interest and fee income. High demand from existing customers and the Bank's steady growth across all business areas have further contributed, allowing Nykredit to secure higher market shares and maintaining low loan impairment rates owing to the financial resilience of its customer base.
Strong First Half Results
The Nykredit Group's H1 interim financial results were favorably influenced by Spar Nord's strong performance during this period. Notably, Spar Nord's customer activity surged in June, affirming its reputation as a strong financial provider with a skilled workforce. As Nykredit anticipates future financial results that encompass Spar Nord's full contributions, there is excitement about their expanded capabilities.
Progressing Towards a Unified Future
The merger efforts between Nykredit Bank and Spar Nord are also proceeding as projected, aiming for completion in the spring of 2026. This merger reflects a strategic move to create a customer-focused alternative to the largest listed banks. Emphasizing lasting customer relationships, a robust physical, and digital presence, the banks plan to leverage their customer-ownership structure for maximum benefit.
Innovative Lending Solutions
In January, Nykredit took a proactive step by reducing Totalkredit loan costs for both new and existing customers, which resulted in tangible growth during H1 2025. The KundeKroner benefits program enables Totalkredit to showcase competitive home loan offers, appealing to homeowners across Denmark. Nykredit's commitment to partnerships allows it to enhance service delivery and enhance competitiveness within the financial market.
Financial Highlights from H1 2025
The Nykredit Group's financial highlights for H1 2025 are compelling:
- Net interest and fee income reached DKK 7,874 million, with Spar Nord contributing DKK 325 million. Excluding Spar Nord, this figure still reflects a positive uptick of 2.5% compared to H1 2024.
- Bank lending surged to DKK 177.2 billion, of which DKK 64.6 billion was attributed to Spar Nord. Without Spar Nord's contributions, the lending tally significantly increased from DKK 97.4 billion to DKK 112.8 billion year-over-year.
- Wealth Management revenue amounted to DKK 1,399 million, showcasing an increase even when Spar Nord's earnings are set aside.
- Totalkredit's mortgage lending rose to DKK 934.9 billion, improving from DKK 886.2 billion a year earlier.
- The cost/income ratio stood firm at 32.5% when excluding specific transaction costs related to the acquisition, reflecting efficient management practices within the Group.
- Nykredit has maintained a commendable capital position post-acquisition, with a Common Equity Tier 1 (CET1) capital ratio of 17.3%.
Contact Information:
For further comments, please contact Orhan Gökcen, Head of Press Relations, at +45 31 21 06 39.
Frequently Asked Questions
What were Nykredit Bank A/S's significant financial highlights in H1 2025?
Nykredit Bank A/S reported a post-tax profit of DKK 6,257 million and raised its full-year profit guidance to between DKK 11.00 and DKK 12.00 billion.
How has Spar Nord’s acquisition impacted Nykredit Bank?
The acquisition has strengthened Nykredit’s financial standing and operational capabilities, allowing for an anticipated boost in customer offerings and market share.
What are the expected outcomes of the merger between Nykredit Bank and Spar Nord?
The merger aims to create a customer-focused alternative to major banks, ensuring enhanced customer service and competitive financial products.
How has Totalkredit contributed to Nykredit’s growth?
The significant reduction in Totalkredit loan costs supported exceptional growth, showcasing the importance of customer loyalty and innovative lending solutions.
What is the capital position of Nykredit post-acquisition?
Nykredit holds a solid Common Equity Tier 1 (CET1) capital ratio of 17.3%, indicating robust financial health after acquiring Spar Nord.
