Interim Report for the period 1 January – 30 September 2016
- Profit from core business was DKK 1,154m compared with DKK 1,174m in Q1-Q3/2015, equivalent to a return on equity of 9.6%.
- Compared with end-2015, lending increased by DKK 6.4bn, or 13.7%, despite low macroeconomic growth. Deposits rose by DKK 2.3bn.
- Core income from business operations totalled DKK 2,564m, which represented a 1% rise from DKK 2,548m in Q1-Q3/2015.
- Operating costs and depreciation of equipment came to DKK 1,457m against DKK 1,411m in Q1-Q3/2015, up 3%. Operating costs as a percentage of core income from business operations climbed to 56.9% from 55.4% in Q1-Q3/2015. The rise was partly an effect of the Bank's expansion of its Wealth Management area. Reference is made to "Operating costs, depreciation and amortisation".
- Impairment losses on loans and advances were a gain of DKK 58m. Impairment losses were negative 0.1% of loans and advances – the same as in Q1-Q3/2015.
- Value adjustment of interest rate swaps was a loss of DKK 1,273m against a gain of DKK 212m in Q1-Q3/2015. The loss in Q1-Q3/2016 was primarily related to a fall in swap rates.
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Investment portfolio income amounted to DKK 35m against DKK 24m in Q1-Q3/2015.
Profit before tax, excluding value adjustment of interest rate swaps, accordingly decreased by DKK 10m from DKK 1,198m in Q1-Q3/2015 to DKK 1,188m. The period saw a loss before tax of DKK 52m against a profit before tax of DKK 1,079m in Q1-Q3/2015.
- Profit before tax generated a return on equity of negative 0.7% against 13.3% in Q1-Q3/2015.
LIQUIDITY
- The Bank's liquidity coverage ratio (LCR), determined according to the LCR rules, came to 148% against 143% at end-Q1-Q3/2015. Deposits exceeded lending by DKK 11.9bn compared with DKK 14.2bn at end-Q1-Q3/2015.
CAPITAL
- Equity stood at DKK 16.1bn, which was unchanged from end-2015.
- The Common Equity Tier 1 (CET1) capital ratio was 13.9% against 20.6% at end-2015. The decline resulted from the implementation of a new credit risk model. Reference is made to "Capital and capital adequacy" below. The total capital ratio was 13.9% against 21.1% at end-2015, and the internal capital adequacy requirement came to 10.7% compared with 12.0% at end-2015.
ABOUT NYKREDIT BANK GROUP
- The Q1-Q3 Interim Reports 2016 of the Nykredit Bank Group and the Nykredit Group and further information about Nykredit are available at nykredit.com.
Contact
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