Nykredit Realkredit Group Reports Impressive Q1-Q3 Results
Nykredit is proud to announce its Q1-Q3 Interim Reports for 2024, showcasing significant achievements in financial performance and strategy. Under the leadership of Group Chief Executive Michael Rasmussen, the bank has announced some of its strongest financial results recorded for the first nine months of any year.
Record Financial Performance
This year, Nykredit forecasts an impressive profit after tax ranging between DKK 11.00-11.75 billion, surpassing the records set in 2023, which was previously its best year. This achievement will mark four consecutive years of record-breaking full-year performances, a testament to the bank's resilience and positioning in a challenging economic landscape shaped by geopolitical tensions.
Driving Growth and Market Share
Nykredit's performance can be attributed to consistent growth in business volumes, gaining market share across its range of services. The bank saw significant increases in lending, expanding to both personal and business customers. Similarly, the mortgage lending arm has grown robustly, demonstrating Nykredit’s strong foothold in the market. The assets managed by Wealth Management have also risen sharply, which reflects the solid financial health of their customers and the reversal of impairment charges over the reported period.
Investment Portfolio Success
Financial market conditions have played a favorable role in the growth of Nykredit’s income from its investment portfolio. They managed to achieve satisfactory returns on equity despite facing some challenges in comparison to competitors. The better management of borrowing costs for customers, aligned with interest rate cuts from Danmarks Nationalbank, showcases Nykredit's customer-oriented approach.
Commitment to Customer Value
In keeping with its customer-centric philosophy, Nykredit Bank has reduced interest rates on several loan products throughout the year, reinforcing its commitment to providing value to its customers. The reduction in rates by 0.75 percentage points on mortgage products enhances the attractiveness of financing through Nykredit and Totalkredit, especially for those interested in home purchases and renovations.
Key Highlights of Q1-Q3 2024
As Nykredit continues to demonstrate its strong performance, here are some of the highlights from the recent report:
- Nykredit achieved a return on average equity of 12% during the first three quarters of 2024.
- The lending from Nykredit Bank reached DKK 99.9 billion, up from DKK 92.2 billion year-on-year.
- Mortgage lending through Totalkredit rose to DKK 895.8 billion, compared to DKK 876.2 billion the previous year.
- Assets managed by Wealth Management surged by 19% from last year's Q1-Q3, amounting to DKK 513.6 billion.
- The cost/income ratio of Nykredit improved to 31.1%, a positive trend compared to the prior year's figures.
Comprehensive Financial Overview
In a snapshot of its comprehensive financial results, Nykredit reported:
- Net interest income stood at DKK 8,992 million, slightly down from DKK 9,106 million.
- Net fee income increased to DKK 2,011 million from DKK 1,950 million.
- Wealth management income showed a significant rise, reaching DKK 2,004 million from DKK 1,785 million.
- Total income for the period amounted to DKK 16,228 million, a growth from last year's DKK 15,286 million.
- Despite increased costs of DKK 5,040 million, the bank reported a very healthy business profit before impairments of DKK 11,188 million, reflecting operational efficiency.
Looking Ahead
As Nykredit looks to the future, it aims to sustain this momentum through strategic initiatives that further support both its growth and its customers' endeavors. The commitment to foster development across Denmark remains paramount, alongside an emphasis on providing sustainable and attractive options for customers.
Contact: For additional insights or comments, please reach out to Orhan Gökcen, Head of Press Relations, at +45 31 21 06 39.
Frequently Asked Questions
What is the profit forecast for Nykredit in 2024?
Nykredit projects a profit after tax of DKK 11.00-11.75 billion for 2024.
How has Nykredit's loan performance been this year?
Nykredit Bank recorded an increase in lending to DKK 99.9 billion at the end of September.
What was the return on equity for Nykredit?
Nykredit achieved a return on average equity of 12% for Q1-Q3 2024.
What improvements has Nykredit made in interest rates?
Nykredit has reduced interest rates on various loan products by 0.75 percentage points this year.
How are Nykredit's assets under management trending?
Assets under management rose by 19% to DKK 513.6 billion compared to last year.
