Realkredit Danmark reports net profit of DKK 2,820 million for the first nine months of 2015

Realkredit Danmark reports net profit of DKK 2,820 million for

the first nine months of 2015

Realkredit Danmark today published its report for the first nine months of 2015.

The report is available at rd.dk. Highlights are shown below:

• The Realkredit Danmark Group recorded a net profit of DKK 2,820 million in the first nine months of 2015, against DKK 2,259 million in the same period of 2014. The improvement was driven especially by lower impairments and income from strong remortgaging activity in the first half of 2015. Income in the third quarter was lower, however, as remortgaging activity fell sharply.

• Total income was up 7% to DKK 4,716 million from DKK 4,403 million in the first nine months of 2014.

• Expenses were unchanged from the level in the first nine months of 2014 and stood at DKK 587 million.

• Impairments were down 47% to DKK 442 million from DKK 833 million in the same period of 2014. Total impairments declined as a result of a general improvement of macroeconomic conditions in Denmark. Impairments equalled 0.08% p.a. of total mortgage lending, against 0.16% in 2014.

• In the first nine months of 2015, customers showed strong interest in Realkredit Danmark’s fixed-rate products and mortgage loans with principal repayments. Disbursements of fixed-rate loans amounted to DKK 88 billion in the first nine months, corresponding to 71% of total gross lending.

• In the first nine months of 2015, 4,500 customers reduced their administration margin on remortgaging their FlexLån® loans to a fixed-rate loan.

• The proportion of customers with 1-year FlexLån® loans fell from 13.8% at 30 September 2014 to 9.8% at 30 September 2015. Customers continue to show interest in setting their mortgage rates for longer periods.

• The proportion of interest-only loans fell from 40.1% at 30 September 2014 to 37.8% at the end of September 2015.

• Realkredit Danmark maintains its expectations for a higher profit in 2015 than in 2014.

Carsten Nøddebo, CEO, says: “The improvement of our results is based on a considerable decline in impairments as a result of the generally better macroeconomic conditions in Denmark, which also led to a busier housing market and rising house prices in large parts of the country. In addition, the results benefited from an increase in lending and high remortgaging activity – especially in the first two quarters of the year.”

Contact: Carsten Nøddebo, CEO, tel. +45 45 13 20 82.

This is a translation of a press release in the Danish language. In case of discrepancies, the Danish version prevails.

Vedhæftede filer:

Realkredit Danmark - interim report first nine months 2015.pdf

Realkredit Danmark press release 29 October 2015.pdf