KommuneKredit announces Annual Report 2023
Summary
• Net interest income was DKK 467 million compared with DKK 339 million in 2022.
• Profit before value adjustments and tax was DKK 264 million, an increase of DKK 135 million compared with 2022. The increase was attributable mainly to growth in net interest income.
• Comprehensive income for the year amounted to DKK 414 million compared with DKK 991 million in 2022. The principal reason for the lower comprehensive income was extraordinarily high value adjustments in 2022.
• Net lending, which is new loans including leases less repayment instalments and redemptions, amounted to DKK 5.9 billion.
• Total loans and leases amounted to DKK 187 billion at the end of the year, and the total balance was DKK 243 billion.
• Common Equity Tier 1 (CET1), equivalent to equity, increased to DKK 10,180 million at the end of 2023 from DKK 9,766 million the previous year.
KommuneKredit’s profit before value adjustments and tax came to DKK 264 million in 2023, an increase of DKK 135 million compared with 2022. The increase was attributable mainly to growth in net interest income, which was DKK 467 million in 2023 compared with DKK 339 million in 2022.
The increase in net interest income, which is somewhat higher than expected, was in part driven by improved earnings on securities because of a higher level of interest rates in 2023, in part to an increase in earnings from leasing.
The value adjustment for the year was DKK 276 million, which was mainly due to KommuneKredit lowering the lending marginal on new loans to customers in 2023, resulting in a positive value adjustment of existing lending.
In accordance with KommuneKredit’s articles of association, the association may not pay dividends, and therefore we transfer the comprehensive income after tax to equity. KommuneKredit’s equity ratio was 4.2 percent at the end of 2023 compared with 4.1 percent in 2022.
Outlook for 2024
We expect KommuneKredit will continue to have good and stable financing opportunities in 2024 and that we will experience moderate growth in lending. We expect to maintain our equity ratio at no less than 3 percent of total assets. We guide for net lending of DKK 4.5 billion and net interest income of approximately DKK 500 million. Administrative expenses are expected to amount to around DKK 200 million.
Contact
CEO Jens Lundager,
Phone: +45 3369 7622,
Email: jlu@kommunekredit.dk
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