| To Nasdaq Copenhagen A/S and the press |
| 20 August 2020 |
Nykredit today announces its H1 Interim Reports 2020 of:
Nykredit A/S, CVR no 12 71 92 48
Nykredit Realkredit A/S, CVR no 12 71 92 80
Nykredit Bank A/S, CVR no 10 51 96 08
Totalkredit A/S, CVR no 21 83 22 78
Michael Rasmussen, Group Chief Executive, comments on the H1 Interim Report 2020:
- The financial results for H1/2020 presented today are satisfactory in the circumstances. Our customers have generally steered well through the corona crisis so far, and we have recorded continued customer and lending growth in Nykredit Bank as well as in Totalkredit. In the first half of the year, the Nykredit Group accounted for more than 90% of growth in the market for residential mortgage lending. We also expanded our market position in bank lending, primarily driven by a large number of new business customers.
- In Nykredit we believe that the Danish housing market and economy will be weathering the corona crisis much more successfully than indicated just a few months ago. However, the corona crisis is far from over. We have been reminded recently that Denmark could see a resurgence of the virus. At the same time, several Danish export markets are under pressure, and we have yet to see the effects when the government's relief packages end. Should the economy, contrary to expectations, take a turn for the worse, we will again be ready to support our customers.
Highlights from the H1 Interim Report 2020:
- Business profit and profit before tax for H1/2020 of DKK 1,875 million and DKK 1,770 million, respectively, are satisfactory in the circumstances and significantly exceed expectations earlier this year, but are of course lower than last year due to the covid-19 crisis.
- Our guidance for business profit and profit before tax for 2020 was raised on 11 August 2020 from DKK 2.5-3.5 billion to now DKK 4.0-5.0 billion. Our earnings upgrade is driven by the recovery in financial markets following large fluctuations in Q1, the current economic outlook and positive underlying business trends. Our 2020 guidance is subject to greater uncertainty than usual due to the corona crisis.
- Totalkredit's lending at nominal value has increased by 10% since 30 June 2019 to currently DKK 769.5 billion.
- Nykredit Bank's lending* has grown by 5% since 30 June 2019 to currently DKK 73.9 billion.
- Assets under management have increased by DKK 92.2 billion since 30 June 2019 totalling DKK 325.0 billion at 30 June 2020. The increase is mainly due to recognition of Sparinvest in the Financial Statements as from September last year.
- Nykredit still has a very strong capital position with a Common Equity Tier 1 (CET1) capital ratio of 19.2%.
| DKK million | |||
| Nykredit Group | H1/ | H1/ | |
| 2020 | 2019 | Change | |
| Net interest income | 4,832 | 4,592 | 240 |
| Net fee income | 1,136 | 1,155 | -19 |
| Wealth management income | 987 | 719 | 268 |
| Net interest from capitalisation | (198) | (172) | -25 |
| Net income relating to customer benefits programmes1 | (97) | (103) | 5 |
| Trading, investment portfolio and other income | (189) | 1,301 | -1,490 |
| Income | 6,470 | 7,492 | -1,022 |
| Costs | 2,841 | 2,502 | -338 |
| Business profit before impairment charges | 3,630 | 4,990 | -1,360 |
| Impairment charges for loans and advances | 1,755 | 433 | -1,322 |
| Business profit | 1,875 | 4,557 | -2,682 |
| Legacy derivatives | (103) | (269) | 167 |
| Badwill, impairment of goodwill and amortisation of customer relationships | (2) | - | -2 |
| Profit before tax for the period | 1,770 | 4,288 | -2,518 |
| Tax | 204 | 681 | -477 |
| Profit for the period | 1,566 | 3,606 | -2,041 |
Contact
For further comments, please contact Nykredit Press Relations at tel +45 2037 2869.
* Including secured homeowner loans transferred to Totalkredit
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