| To the Editor | Communications Tel. +45 45 14 56 95 6 February 2014 |
Realkredit Danmark reports net profit of DKK 2,612 million for 2013
Realkredit Danmark today published its annual report for 2013. The report is available at rd.dk. Highlights are shown below:
- In 2013, the Realkredit Danmark Group recorded a satisfactory 6% increase in net profit from DKK 2,454 million in 2012 to DKK 2,612 million in 2013. The profit benefited from a positive trend in core activities, while it was adversely affected by higher funding costs and higher impairments.
- Total income rose 6% to DKK 5,800 million from DKK 5,463 million in 2012.
- Expenses amounted to DKK 852 million, down DKK 18 million.
- Impairments rose and totalled DKK 1,471 million in 2013, against DKK 1,319 million a year earlier.
- The total capital ratio calculated in accordance with the CRD was 34.0%, against 34.3% at the end of 2012.
- The proportion of customers with F1 loans fell sharply from 25% at the end of 2012 to 17% at the end of 2013. Customers are showing strong interest in financial security by setting their mortgage rates for longer periods.
- In the autumn of 2013, Realkredit Danmark launched the FlexKort® loan type. In spite of declining mortgage activity, FlexKort® and Danske Bank’s customer programme have ensured positive trends in lending and market share.
- Realkredit Danmark expects a higher profit in 2014 than in 2013.
Carsten Nøddebo, Chief Executive Officer, says:
“In the autumn, we successfully launched the FlexKort® loan type for customers looking for a mortgage with frequent interest resetting. Cheaper than an F-1 loan, FlexKort® is expected to become the future product of choice for borrowers favouring short interest reset intervals. FlexKort ® has received a warm welcome among customers, with FlexKort® loans for DKK 12 billion having been disbursed by the end of the year. This development supported the positive trend in our core business performance over the course of the year, which has resulted in a stronger market position.”
Contact: Carsten Nøddebo, Chief Executive Officer, tel. +45 45 13 20 82.
This is a translation of a press release in the Danish language. In case of discrepancies, the Danish version prevails.
