Nykredit Reveals Strong Profit Predictions and Benefits for Customers

Nykredit Enhances Customer Benefits Amid Record Performance

The Nykredit Group has recently refined its financial expectations for the year 2024, projecting a remarkable profit after tax of approximately DKK 11.7 billion. This figure stands at the upper threshold of previous predictions, indicating robust growth within the organization. Notably, 2024 is now positioned to be the most successful year in Nykredit's history, marking a significant milestone as it represents the fourth consecutive year of record-breaking performance.

Understanding the KundeKroner Discount

In an exclusive position because of its customer-owned structure overseen by Forenet Kredit, Nykredit is poised to offer exceptional benefits to its clientele. In response to the company’s impressive performance, Totalkredit, a part of the Nykredit Group, has elevated the KundeKroner discount for personal mortgage customers from 0.20% to 0.25%. The KundeKroner program acts as an annual discount on administration margin payments, which are calculated based on the outstanding debt.

Cost Savings for Homeowners

This increase translates to a notable reduction in loan costs for more than 900,000 homeowners. With the new discount rate, homeowners can expect an annual increase in their KundeKroner discount by DKK 500 for every million DKK in debt. Consequently, the total savings on administration margins could reach as high as DKK 2,500 per million DKK borrowed. This advantageous discount enhances Totalkredit's offering, making it the leading choice for mortgage financing for many customers across various scenarios.

BoligRabat Discounts

Simultaneously, Nykredit Bank has decided to raise the BoligRabat discount corresponding to this change, further benefiting customers looking at specific home loans. This coordinated approach reflects a commitment to customer satisfaction and financial support.

Extended Benefits Till 2028

Nykredit has also made the strategic decision to extend the duration of both the KundeKroner and BoligRabat discounts for an additional year. As a result, customers can enjoy these advantageous rates until at least 2028, ensuring long-term affordability for homeowners.

Leadership Insights

Michael Rasmussen, Nykredit’s Group Chief Executive, expressed pride in the company’s achievements, stating, "These results mark the pinnacle of success for the Nykredit Group, allowing us to simultaneously reward our customers with tangible benefits. The success of the KundeKroner discount, introduced in 2017, continues to evolve, affirming our commitment to homeowners throughout Denmark. This enhancement of our offerings not only aids homeowners but also strengthens our competitive position in the mortgage sector."

Dividend Policy Shift

Additionally, Nykredit has decided to diverge from its usual dividend policy for 2024, foregoing any dividend payments. This choice surfaces as part of a broader financing strategy related to a public tender offer for Spar Nord and is aimed at fortifying Nykredit's capital structure.

Looking Ahead at Annual Reports

In line with established schedules, the Nykredit Group will unveil its comprehensive Annual Report for 2024 on 5 February 2025. This occasion will provide an opportunity for Nykredit's management to share further insights and engage with stakeholders.

Frequently Asked Questions

What is the projected profit for Nykredit in 2024?

Nykredit is forecasting a profit after tax of about DKK 11.7 billion for 2024, marking a record performance.

What is the KundeKroner discount?

The KundeKroner discount is an annual discount on administration margin payments available for Nykredit mortgage customers, which is now increased to 0.25%.

How does the discount benefit homeowners?

Homeowners can save significantly on their mortgage costs, with the new discount offering an additional DKK 500 for every DKK million borrowed.

Will the discounts continue in the future?

Yes, both the KundeKroner and BoligRabat discounts have been extended until at least 2028.

Who can I contact for more information?

Questions can be directed to Orhan Gökcen, Head of Press Relations, at +45 31 21 06 39.

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