Over the next weeks, Nykredit Realkredit will present the company to a number
of investors, one of the purposes being to prepare for a po-tential raising of
hybrid core capital in the market. The publication of a preliminary Q1-Q3
interim report should be seen against this back-ground. The final Q1-Q3 interim
report will be published on 5 November 2009.
1 JANUARY 2009 - 3O SEPTEMBER 2009
RESULTS (excluding Forstædernes Bank)
The Group, excluding Forstædernes Bank, recorded a profit before tax of DKK
4,212m against a loss before tax of DKK 281m in Q1-Q3/2008
Robust growth in customer-oriented business
Core income from customer-oriented business increased by DKK 943m or 19%
relative to Q1-Q3/2008
In Q1-Q3/2009 mortgage lending in nominal terms and bank lending grew by a
total of DKK 52bn to DKK 1,020bn
Costs as a percentage of core income from business operations declined from
70.7% in Q1-Q3/2008 to 63.7% in Q1-Q3/2009
Operating costs, depreciation and amortisation excluding special value
adjustments went up by DKK 248m or 7.0%
The cost increase was primarily due to staff additions in 2008. In 2009 the
number of permanent staff has been slightly declining
Impairment losses on loans and advances came to DKK 2,069m against DKK 123m
in Q1-Q3/2008
Impairment losses on mortgage lending were DKK 1,076m, equal to 0.1% of
lending
Nykredit Bank's impairment losses on loans and advances amounted to DKK 827m,
excluding the government guarantee scheme, equal to 1.0% of lending
Core income from securities amounted to DKK 686m compared with DKK 1,595m in
Q1-Q3/2008
The investment portfolio generated an income of DKK 3,985m against a loss of
DKK 3,028m in Q1-Q3/2008
The reasons were falling yields and yield spread tightening between mortgage
and government bonds.
FORSTÆDERNES BANK
Impairment losses were DKK 3,851m in Q1-Q3/2009
A critical revaluation of the provisioning need in Forstædernes Bank was made
in Q3/2009, prompted by a further deterioration of the business climate.
Looking forward, the bank's loss level is expected to normalise
RESULTS AND CAPITAL RESOURCES (including Forstædernes Bank)
The Group, including Forstædernes Bank, recorded a profit before tax of DKK
474m and a profit after tax of DKK 286m
The core capital ratio was 15.6 at the end of Q1-Q3/2009
The Group's equity amounted to DKK 51.5bn.
2009 - OUTLOOK
Nykredit's core earnings before impairment losses are still expected to be in
the region of DKK 2,400m-3,000m for the full year. Profit before tax, including
Forstædernes Bank, for the full year is expected to be at the same level as at
end-Q3/2009. However, the uncertainty associated with investment portfolio
income and impairment losses on loans and advances alone is expected to be
around DKK 1bn.
Peter Engberg Jensen, Group Chief Executive, says:
Nykredit posted a profit before tax of DKK 4.2bn excluding Forstædernes Bank
and DKK 0.5bn including Forstædernes Bank.
Nykredit's business growth is continuing within both banking and mortgage
lending. Customer-oriented business was up by 19% and lending DKK 52bn.
Impairment losses on loans and advances for Q3/2009 reflected a critical
revaluation of loans in Forstædernes Bank prompted by the general deterioration
of the business climate. Security for loans to commercial customers in
Forstædernes Bank has tended to be very weak - generally in the form of second
and third mortgages. The acquisition of Forstædernes Bank remains a
strategically right move, but due to the deterioration of the business climate,
the acquisition has been much more expensive than expected.
Lower bond yields and tighter yield spreads have prompted an all-time high
investment portfolio income of DKK 4.1bn.
Contacts
Peter Engberg Jensen, Group Chief Executive, Søren Holm, Group Managing
Director, or Nels Petersen, Head of Corporate Communications
Tel +45 44 55 14 70 or +45 20 22 22 72
