Press release                 Group Communications 1 February 2019    

Realkredit Danmark reports net profit of DKK 4,649 million for 2018

Realkredit Danmark today published its annual report for 2018

Carsten Nøddebo, CEO, says:

“2018 was a good year for Realkredit Danmark. There was a generally positive development and activity in the housing and property market, which combined with reversals of impairments previously made contributed to a satisfactory result. Despite the increase in the loan portfolio, income in 2018 was at the same level as income in 2017. This was because more personal customers benefited from a lower administration margin by opting out of interest-only loans and switching to longer refinancing intervals.

Realkredit Danmark’s new loan product, FlexLife®, has quickly become very popular with customers as an alternative to conventional mortgage loans. It is especially the possibility of having far more flexibility and a total interest-only period of up to 30 years that attracts customers. At the end of 2018, we had thus disbursed FlexLife® loans for a total of DKK 18 billion.”

The report is available at rd.dk. Highlights are shown below:

  • In 2018, the Realkredit Danmark Group recorded a net profit of DKK 4,649 million, corresponding to an increase of 6% from the level in 2017. Net profit was satisfactory and supported by an increase in the loan portfolio.  
  • Impairments amounted to an income of DKK 204 million, against a charge of DKK 147 million in 2017. As in 2017, we reversed charges previously made, primarily against loans to business customers.  
  • Total mortgage lending rose DKK 9 billion in 2018.  
  • Customer demand for Realkredit Danmark’s most recently launched mortgage loan product, FlexLife®, remained strong. FlexLife® loans thus accounted for 17% of new lending to personal customers. In the 60+ age group, the figure was 75%.  
  • In 2018, customers primarily opted for fixed-rate loans and FlexLån® loans with refinancing intervals of 5 years.  
  • Nominal instalments are now at the same level as prior to the introduction of interest-only loans in 2003. Overall, ordinary instalments amounted to 2% of the loan portfolio.  
  • Realkredit Danmark expects net profit for 2019 to be at the same level as in 2018.

                       

Carsten Nøddebo, CEO, tel. +45 45 13 20 82.

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