KommuneKredit announces Annual Report 2025

Today, 9 March 2026, KommuneKredit has published its AnnualReport2025.

Summary

• Profit before value adjustments and tax came to DKK 507 million, down by DKK 16 million on the year-earlier period, which is in line with our guidance in the interim report.
• Comprehensive income for the year amounted to DKK -44 million compared with DKK 8 million in 2024.
• Net interest income came to DKK 641 million for 2025, down by DKK 89 million on last year.
• The value of total loans and leases was up by DKK 6 billion to DKK 200 billion at end-2025.
• Common Equity Tier 1 (CET1) capital, which corresponds to equity, declined from 10,188 million at end-2024 to DKK 10,099 million.
  

Since 1899, KommuneKredit has provided funding to municipalities and regions in Denmark through the issuance of bonds in the international capital markets. That funding model was changed with effect from 26 March 2025. In future, the Government will purchase KommuneKredit’s bonds at interest rates corresponding to the Government’s
own funding costs. The new funding model has entailed lower funding costs for KommuneKredit and, accordingly, lower interest rates on our loans and leases. When fully phased in, the new model is expected to create annual savings of about DKK 1 billion for the Danish society, savings that will ultimately benefit Danish citizens and taxpayers.

Since the onset of 2024, the municipal sector in Greenland has had the possibility to take out loans with KommuneKredit for its projects. The Danish Government provides KommuneKredit with a guarantee for such loan, while the Government of Greenland provides the Danish Government with a guarantee within a certain framework. In 2025, we granted the first loans totalling DKK 1,624 million to the municipal sector in Greenland.

Financial results for 2025
KommuneKredit’s profit before value adjustments and tax came to DKK 507 million, down by DKK 16 million on 2024, covering a decline in total net interest income of DKK 89 million compared to 2024 and extraordinary income of DKK 76 million under Other operating income from the sale of our properties at Kultorvet 14 and 16 in Copenhagen.

Value adjustments for the year came to DKK -552 million. The negative value adjustments reflect that the interest rates used for the valuation of loans and funding have been adjusted to government bond yields in accordance with the new funding model. To this should be added that, as expected, the large positive value adjustments in 2021-2023 have subsequently been offset by negative value adjustments. As a result, and in line with expectations, comprehensive income came to DKK -44 million, all of which is taken to equity. Following the sale of the properties at Kultorvet 14 and 16, we have reversed a revaluation reserve of DKK 45 million for the period in equity, which subsequently constitutes DKK 10,099 million.

Outlook for 2026
We expect net interest income of around DKK 500 million for 2026. Administrative expenses are anticipated to increase by close to DKK 20 million to DKK 225 million, partly due to non-recurring expenses in connection with the relocation to new premises, partly to rental expenses for the new lease which will be included in administrative expenses in future. Accordingly, we expect profit for the year before value adjustments and tax to total DKK 275 million, including expected negative value adjustments of around DKK 150 million.

Contact person
Jens Lundager, Chief Executive Officer
Tel. +45 33 69 76 22 | E-mail: jlu@kommunekredit.dk

Attachments

• KK_Announcement of financial results_2025
• KK_AR-2025_UK