Nykredit Bank A/S H1 Interim Reports 2024

To        Nasdaq Copenhagen A/S and the press

14 August 2024

Nykredit today announces its H1 Interim Reports 2024 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 2024:

• Today, we present Nykredit's strongest half-year financial results to date, which is naturally highly satisfactory. Nykredit's robust performance was partly driven by business growth and an expanded market share across all business areas in the second quarter generating a satisfactory return on equity. Consequently, our core business is now stronger than ever. Thanks to the good results and together with our Totalkredit partner banks, we are well placed to support our customers and foster development and growth all over Denmark.
  
  
• Nykredit Bank grew its lending volumes, particularly to corporate clients, and the Group's mortgage lending to personal and business customers also increased. Furthermore, Wealth Management increased assets under management. Our performance also reflects the sound financial health of our customers, leading to a minor reversal of impairment charges for the period. Furthermore, we maintained a relatively steady cost level and benefited from headwinds in financial markets, which positively impacted investment portfolio income.
  
  
• The good performance was achieved despite relatively low housing market activity early in the year. The Nykredit Group benefited less than our competitors from the higher interest rate level as mortgage lending accounts for a significantly larger part of Nykredit's business volumes than banking. The Nykredit Group is guiding for a profit for 2024 of DKK 10.5-11.5 billion in line with our results for 2023, which were Nykredit's best ever. However, our final full-year results depend to some extent on the global economic outlook where geopolitical tensions cause low visibility. We also anticipate increased volatility in financial markets, which could further impact our operating conditions.
  
  
• In early 2024, we raised the KundeKroner discount on administration margin payments to 0.20% from 0.15%, making it even more affordable for our customers to finance their homes with us. Additionally, we have reduced interest rates on a range of products, which has made it even more attractive for our customers to bank with us. We also offer attractive deposit and loan rates, especially for home purchases or green initiatives. As a result of our strong financial performance, it is recommended at the extraordinary general meeting that Nykredit distribute extraordinary dividend of DKK 2.2 billion to our owners. This will support our continued capacity to demonstrate to our customers all the advantages associated with being a customer of a mutual financial provider.
  
  

Highlights from the H1 Interim Report 2024:

• For H1/2024, Nykredit has recorded a return on average equity of 13.2%.
• Nykredit Bank's lending increased from DKK 92 billion at end-June 2023 to DKK 97.4 billion at end-June 2024.
• Totalkredit's mortgage lending at nominal value increased from DKK 875.1 billion at end-June 2023 to DKK 886.2 billion at end-June 2024.
• Assets under management by Nykredit Wealth Management were up 15% since end-June 2023 to DKK 496 billion at end-June 2024.
• Nykredit maintains a very strong capital position with a Common Equity Tier 1 (CET1) capital ratio of 19.9%.
• Nykredit's cost/income ratio has decreased since end-June 2023 to 29.5% at end-June 2024.

			DKK million
Nykredit Group
	H1/        2024	H1/ 2023	Change
Net interest income	6,009	6,005	4
Net fee income	1,358	1,306	52
Wealth management income	1,342	1,197	145
Net interest from capitalisation	1,207	891	316
Net income relating to customer benefits programmes	(278)	(215)	-63
Trading, investment portfolio and other income	1,625	813	812
Income	11,262	9,996	1,266
Costs	3,325	3,213	112
Business profit before impairment charges	7,937	6,783	1,154
Impairment charges for loans and advances	(84)	(115)	31
Business profit	8,021	6,898	1,123
Legacy derivatives	127	32	95
Profit before tax for the period	8,149	6,929	1,220
Tax	1,654	1,539	115
Profit for the period	6,495	5,391	1,104

For further comments, please contact Orhan Gökcen, Head of Press Relations, tel +45 31 21 06 39.

Attachment

• Nykredit_Bank_Q2_24_2024-08-14_EN