Nykredit Bank A/S H1 Interim Report 2021

To Nasdaq Copenhagen A/S and the press

19 August 2021

Nykredit today announces its H1 Interim Reports 2021 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 Financial Statements:

– The H1 results presented today are highly satisfactory. Our business continues to show good momentum with business and customer growth in both Nykredit Bank and Totalkredit. The Group recorded growth in private residential mortgage lending of just over DKK 33 billion, and for the fifth consecutive quarter Totalkredit grew its lending in all 98 municipalities across the country. We are pleased to be able to show even more Danes the benefits of being a customer of a mutual financial provider, for example our KundeKroner benefits programme and other mutual benefits.

– Also assets under management reached another milestone, now exceeding DKK 400 billion, and have more than tripled since 2014, driven by very satisfactory growth in all customer streams in both Nykredit and Sparinvest.

– The Danish business sector and the Danish housing market have so far weathered the crisis better than expected. Impairment charges remain low, and we have yet to use the DKK 2.1 billion provided last year for any future corona-related losses. Thus, the Danish economy appears on the path to more normal conditions, but how Danish businesses will cope without the government's relief packages still remains to be seen.

– This year, backed by Nykredit's owner, Forenet Kredit, we have continued developing our product range designed to make it easier and more affordable for our customers to make green choices. We expect to launch further initiatives in the coming period and will then have green propositions for all our customers.

Highlights from the H1 Interim Report 2021:

• Business profit and profit before tax amounted to DKK 5,002 million and DKK 5,295 million, respectively, in H1/2021. This equals a return on equity of 13.1%.

• Our guidance for business profit and profit before tax for 2021 was raised on 1 July 2021 from DKK 7.25-7.75 billion to DKK 8.25-8.75 billion. We maintain this guidance.

• Totalkredit's lending at nominal value has increased by 9% since end-June 2020 to DKK 838.4 billion at end-June 2021.

• Nykredit Bank's lending* has increased by 5% since end-June 2020 to DKK 77.3 billion at end-June 2021.

• Assets under management have increased by 25% since end-June 2020 to DKK 405.8 billion at end-June 2021.

• Nykredit maintains a very strong capital position with a Common Equity Tier 1 (CET1) capital ratio of 20%.

			DKK million
Nykredit Group	H1/	H1/
	2021	2020	Change
Net interest income	4,940	4,832	108
Net fee income	1,216	1,188	28
Wealth management income	1,100	987	113
Net interest from capitalisation	(246)	(198)	-48
Net income relating to customer benefits programmes*	(174)	(97)	-77
Trading, investment portfolio and other income	1,244	(241)	1,485
Income	8,080	6,470	1,610
Costs	2,989	2,841	-149
Business profit before impairment charges	5,091	3,630	1,461
Impairment charges for loans and advances	89	1,755	1,666
Business profit	5,002	1,875	3,127
Legacy derivatives	292	(103)	395
Badwill, impairment of goodwill and amortisation of customer relationships	-	(2)	2
Profit before tax for the period	5,295	1,770	3,525
Tax	942	204	738
Profit for the period	4,353	1,566	2,787

Contact
For further comments, please contact Nykredit Press Relations at tel +45 20 37 28 69.

* Including secured homeowner loans transferred to Totalkredit

Attachment

• Nykredit_Bank_Q2_21_2021-08-19_EN