Q1-Q3 Interim Report 2024 – Nykredit Realkredit Group

Nykredit today announces Q1-Q3 Interim Reports 2024 of:

Nykredit A/S, CVR no 12 71 92 48
Nykredit Realkredit A/S, CVR no 12 71 92 80

Michael Rasmussen, Group Chief Executive, comments on the Q1-Q3 Interim Report 2024:

• Today, we present Nykredit’s strongest financial results ever recorded for the first nine months of a year. At the same time, we raise our full-year guidance to a profit after tax of DKK 11.00-11.75 billion. This means that we expect profit for 2024 to exceed profit for 2023, which was Nykredit’s best year so far. For the fourth consecutive year, we are set to deliver our best full-year performance to date, which only goes to show that Nykredit is stronger than ever. The final full-year financial results will in part depend on the global economic outlook, which is impacted by a generally tense geopolitical landscape that continues to add some uncertainty about the economy and our operating conditions.
• Our good performance is chiefly driven by continued growth and increasing market shares across the board. Over the year, Nykredit Bank has grown its lending volumes to personal and business customers alike, and the Group has increased its mortgage lending to homeowners and business customers. Furthermore, Wealth Management’s assets under management have increased. Our performance also reflects the sound financial health of our customers, leading to a reversal of impairment charges for the period. Moreover, we have managed to maintain a relatively steady cost/income ratio.
• During the period under review, financial market tailwinds had a positive impact on the Group’s investment portfolio income, leading to a satisfactory return on equity. We benefited less than our competitors from the higher interest rate level, as mortgage lending accounts for a significantly larger part of Nykredit’s business volumes than banking. At the same time, we have chosen to lower the cost of borrowing for our customers to reflect Danmarks Nationalbank’s interest rate cuts during the year. Thanks to our good results, Nykredit and Totalkredit are well placed to support our customers and foster development and growth all over Denmark.
• In Nykredit Bank, we have reduced the interest rates on a number of loan products by 0.75 percentage points during the year. We see this as the right thing to do as a customer-owned bank. We therefore offer attractive interest rates on both deposits and loans, especially for home purchases, energy renovation and climate adaptation. In early 2024, we raised the KundeKroner discount on customers’ administration margin payments on mortgage loans to 0.20% from 0.15%, which has made it even more attractive for our Totalkredit customers to finance their homes with us. By offering attractive value propositions we continue to demonstrate to our customers all the advantages of banking with a customer-owned financial provider.

Highlights from the Q1-Q3 Interim Report 2024:

• Nykredit has recorded a return on average equity of 12% for Q1-Q3/2024.
• Nykredit Bank’s lending increased to DKK 99.9 billion at end-September 2024 from DKK 92.2 billion at end-September 2023.
• Totalkredit’s mortgage lending increased to DKK 895.8 billion at end-September 2024 from DKK 876.2 billion at end-September 2023.
• Assets under management by Nykredit Wealth Management were up 19% on Q1-Q3/2023 to DKK 513.6 billion at end-September 2024.
• Nykredit’s cost/income ratio was 31.1% in Q1-Q3/2024 and has decreased compared to the same period last year.

Contact: For further comments, please contact Orhan Gökcen, Head of Press Relations, tel +45 31 21 06 39.

Attachment

• Nykredit_Realkredit_Group_Q3_24_2024-11-07_EN