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Nykredit Bank Group - Annual Report 2020
To Nasdaq Copenhagen A/S and the press
11 February 2021
Nykredit today announces the Annual Reports for 2020 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 Annual Report 2020:
The full-year financial results presented today are highly satisfactory. We ended 2020 with a profit that exceeds our expectations from before the outbreak of the corona crisis. I want to extend my sincere thanks to all my Nykredit colleagues for going above and beyond during this very challenging year.
2020 was yet another year with customer and business growth in Nykredit Bank and Totalkredit. Both recorded lending growth of 8%, and Totalkredit even grew lending in all of the 98 Danish municipalities. Over the past five years, the number of homeowners with Totalkredit loans has increased by 171,000. Our Group now holds almost 50% of the residential mortgage lending market. I would also like to offer my deepest thanks to our many excellent partner banks, which have been instrumental in achieving this milestone.
Our increase in customer numbers gives us the opportunity to show even more homeowners and businesses what a mutual financial provider can do for them. This past year we have again given back more than DKK 1.5 billion to our customers. This is only possible because we are owned by Forenet Kredit. We are proud that we can share our success with our customers in this way. Because of the very backing of Forenet Kredit, we can make it easier and more affordable for our customers to make green choices. In 2020 we launched a number of green initiatives, which our customers have embraced. We will be launching even more initiatives in 2021.
Highlights from the Annual Report 2020:
Business profit and profit before tax for 2020 were DKK 6,524 million and DKK 6,780 million, respectively. This was highly satisfactory and demonstrates the good momentum in our underlying business, which was adversely affected by the covid-19 pandemic only to a minor extent. Nykredit recorded growth in customers, a high activity level and lending growth in 2020. By contrast, the Group's results were negatively affected by increased loan impairment charges prompted by covid-19.
The guidance for business profit and profit for 2020 has been adjusted four times over the year. We last raised our guidance for business profit and profit before tax for 2020 on 20 January 2021 to about DKK 6.5 billion and about DKK 6.8 billion, respectively, which replaces the previous guidance of a business profit of DKK 6.1-6.3 billion and a profit before tax for 2020 of DKK 6.2-6.4 billion.
Totalkredit's lending at nominal value has increased by 8% since end-2019 to currently DKK 798.4 billion.
Nykredit Bank's lending* has grown by 8% since end-2019 to currently DKK 77.8 billion.
Assets under management have increased by DKK 35.9 billion (11%) since end-2019 and totalled DKK 371.7 billion at end-2020.
Nykredit maintains a very strong capital position with a Common Equity Tier 1 (CET1) capital ratio of 20.2%.
* Including secured homeowner loans transferred to Totalkredit
DKK million | |||
Nykredit Group | |||
2020 | 2019 | Change | |
Net interest income | 9,780 | 9,344 | 436 |
Net fee income | 2,367 | 2,739 | -372 |
Wealth management income | 1,950 | 1,610 | 340 |
Net interest from capitalisation | -421 | -352 | -69 |
Net income relating to customer benefits programmes1 | -203 | -358 | 155 |
Trading, investment portfolio and other income | 1,097 | 1,673 | -577 |
Income | 14,569 | 14,656 | -87 |
Costs | 5,773 | 5,347 | -426 |
Business profit before impairment charges | 8,796 | 9,308 | -512 |
Impairment charges for loans and advances | 2,272 | 994 | -1,278 |
Business profit | 6,524 | 8,314 | -1,790 |
Legacy derivatives | 258 | -112 | 370 |
Badwill, impairment of goodwill and amortisation of customer relationships | -2 | 564 | -567 |
Profit before tax for the year | 6,780 | 8,766 | -1,987 |
Tax | 1,116 | 1,340 | -224 |
Profit for the year | 5,664 | 7,427 | -1,763 |
Contact
For further comments, please contact Nykredit Press Relations at tel +45 20 37 28 69.
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