H1 Interim Report - The Nykredit Realkredit Group 1 January - 30 June 2013
- 8% growth in core income to DKK 5,037m compared with H1/2012
- Core earnings after impairment losses of DKK 1,233m against DKK 936m in H1/2012
- Investment portfolio income of DKK 999m against DKK 1,533m in H1/2012
- Profit before tax of DKK 2,006m against DKK 2,238m in H1/2012
- Total core income grew 8% to DKK 5,037m
- Core income from business operations increased by 1%
- Other core income rose markedly due to positive value adjustment of financial derivatives in particular
- In H1/2013 nominal mortgage lending and bank lending improved by almost DKK 6bn to DKK 1,164bn
- Gross new mortgage lending came to DKK 62bn compared with an exceptionally high level of DKK 129bn in H1/2012
- Operating costs, depreciation and amortisation, excluding special value adjustments, were down 2% to DKK 2,839m
- Costs as a percentage of core income from business operations declined to 55.1% from 56.6% in H1/2012
- Impairment losses on loans and advances stood at DKK 929m, equal to 0.08%
- Impairment losses on mortgage lending came to 0.07%, which was unchanged on H1/2012
- 75-day mortgage arrears declined from 0.57% in H1/2012 to 0.47%
- Impairment losses on bank lending went down from 0.24% to 0.15%
- The sale of strategic equities had a positive impact on investment portfolio income. Accordingly, the income should be seen in the context of value adjustment and reclassification of strategic equities against equity totalling a DKK 474m charge after tax.
| The Nykredit Realkredit Group Financial highlights | ||||
| H1/ | H1/ | Change | FY | |
| DKK million | 2013 | 2012 | % | 2012 |
| Core income | 5,037 | 4,643 | 8 | 8,909 |
| - from business operations | 5,151 | 5,102 | 1 | 10,200 |
| Operating costs, depreciation and amortisation | 2,839 | 2,890 | -2 | 5,776 |
| Core earnings before impairment losses | 2,162 | 1,927 | 12 | 3,315 |
| Loan impairment losses | 929 | 991 | -6 | 2,149 |
| Core earnings after impairment losses | 1,233 | 936 | 32 | 1,166 |
| Investment portfolio income | 999 | 1,533 | -35 | 2,444 |
| Profit before tax | 2,006 | 2,238 | -10 | 3,145 |
| Core Tier 1 capital ratio, % | 16.6 | 14.5 | - | 15.8 |
Peter Engberg Jensen, Group Chief Executive, has the following comments: "Nykredit's positive business development continued in H1/2013, and all areas are trending in the right direction. Total core income grew by more than 8%, costs were cut by 2%, and impairment losses declined to DKK 929m, or 0.08% of total loans and advances.
Impairment losses have not exceeded 0.10% for any half-year since 2010.
Nykredit's robust capital structure includes equity of DKK 58.6bn. The development in H1/2013 was another step towards securing the equity level of DKK 70bn that the new capital rules are expected to require in 2019, based on Nykredit's existing business volume."
Contacts: Peter Engberg Jensen, Group Chief Executive, or Nels Petersen, Head of Corporate Communications, tel +45 44 55 14 70 or +45 20 22 22 72.
