Interim Reports Q1 2024 - Nykredit Realkredit Group
May 08 2024 - 1:30AM
Interim Reports Q1 2024 - Nykredit Realkredit Group
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To Nasdaq Copenhagen A/Sand the press |
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8 May 2024 |
Nykredit today announces its Q1 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 Interim Report 2024:
- Nykredit today presented a profit after tax of DKK 3,544
million, marking our best quarter ever. And this is naturally
highly satisfactory. Our good performance was chiefly driven by
business and customer growth across the board, even despite the low
housing market activity this quarter. Together with our Totalkredit
partner banks, we are consequently well placed to support our
customers and foster development and growth all over Denmark.
- Nykredit Bank grew its lending volumes, particularly to
corporate clients. Totalkredit increased its mortgage lending to
personal and business customers, and Wealth Management increased
client assets under management. The Nykredit Group is guiding for a
profit for 2024 of DKK 10.5-11.5 billion in line with our financial
performance for 2023, which was Nykredit's best ever. However, this
depends to some extent on the global economic outlook, as
geopolitical tensions still cause low visibility.
- Our quarterly results reflected the solid credit quality of our
customers, which prompted a minor reversal of impairment charges
for the period. At the same time, financial market conditions in
particular had a positive impact on the Group's investment
portfolio income. In addition, our cost level was unchanged. As
mortgage lending makes up a larger part than banking of Nykredit's
business model, we benefited less than our competitors from the
higher interest rate level.
- In early 2024, we raised the KundeKroner discount on
administration margin payments from 0.15% to 0.20%, which has made
it even cheaper for our customers to finance their homes with us.
Moreover, due to the contribution from Nykredit's majority
shareholder, Forenet Kredit, homeowners are guaranteed KundeKroner
benefits up to and including 2027. All customers can currently get
a minimum deposit rate of 1.25% and, including bonus interest, as
much as 4.5% on savings for home purposes or green projects. As a
mutual financial provider, it is essential for us to share our
success with customers when Nykredit is doing well.
Highlights from the Q1 Interim Report 2024:
- Nykredit Bank's lending rose from DKK 92.1 billion in Q1/2023
to DKK 94.5 billion in Q1/2024.
- Totalkredit's mortgage lending at nominal value increased from
DKK 874.9 billion in Q1/2023 to DKK 879.7 billion in Q1/2024.
- Assets under management by Nykredit Wealth Management have
grown by 13% since Q1/2023 to DKK 486 billion in Q1/2024.
- Nykredit maintained a very strong capital position with a
Common Equity Tier 1 (CET1) capital ratio of 20.5%.
- Nykredit's cost/income ratio has decreased since 2023 to 27.4%
in Q1/2024.
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DKK million |
| Nykredit
Group |
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Q1/ 2024 |
Q1/2023 |
Change |
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BUSINESS PROFIT AND PROFIT FOR THE PERIOD |
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| Net interest
income |
3,011 |
2,883 |
128 |
| Net fee
income |
728 |
680 |
48 |
| Wealth
management income |
668 |
583 |
85 |
| Net interest
from capitalisation |
597 |
460 |
137 |
| Net income
relating to customer benefits programmes |
(135) |
(117) |
-18 |
| Trading,
investment portfolio and other income |
1,143 |
700 |
443 |
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Income |
6,012 |
5,189 |
823 |
| Costs |
1,647 |
1,638 |
9 |
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Business profit before impairment charges |
4,365 |
3,551 |
814 |
| Impairment
charges for loans and advances |
(53) |
(34) |
-19 |
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Business profit |
4,418 |
3,585 |
833 |
| Legacy
derivatives |
52 |
(11) |
63 |
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Profit before tax for the period |
4,470 |
3,574 |
896 |
| Tax |
926 |
775 |
151 |
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Profit for the period |
3,544 |
2,799 |
745 |
Contact: For further comments, please contact
Nykredit Press Relations, tel +45 20 56 07 06.
- Nykredit_Realkredit_Group_Q1_24_2024-05-08_EN