Net profit of DKK 287 million for the first quarter of 2011
Realkredit Danmark today published its interim report for the first quarter of 2011. Highlights are shown below:
- The Realkredit Danmark Group recorded a net profit of DKK 287 million in the first quarter of 2011, against DKK 472 million in the first quarter of 2010. The decline was due to a lower return on the bond portfolio.
- Loan impairment charges fell to DKK 197 million. Compared with the same period of last year, impairment charges were down 38%. They corresponded to 0.11% p.a. of total mortgage lending, against 0.14% at the end of the 2010 financial year.
- Expenses climbed DKK 31 million to DKK 244 million. Realkredit Danmark’s intensified efforts to strengthen the Group’s position in the Danish property market in collaboration with Danske Bank and the home real-estate agency chain caused most of the increase.
- Delinquencies as a percentage of mortgage payments declined throughout 2010. This decline continued into the first quarter of 2011, when the three-month delinquency rate was 0.48%, down from 0.63% at the end of 2010, and reflects an improvement of customers’ financial situation.
- Activity in the Danish property market was subdued with gross lending amounting to DKK 14 billion, down from DKK 28 billion in the year-earlier period.
- At 31 March 2011, the total capital ratio was 35.9%, against 39.4% at the end of 2010.
- Profit expectations for the full year 2011 are unchanged.
Interim report for the first half of 2011 (pdf 240 kb)
Carsten Nøddebo, CEO, says: “We have launched a number of new measures to strengthen our position in the Danish property market. We streamline our processes together with Danske Bank and home, and we aim at giving customers an even better experience when they use Realkredit Danmark as their mortgage credit institution. Our Home hotline can answer many questions about home financing and takes calls from personal customers also in the evening and over the weekend. Later in the year, this service will become available also to our small business customers.”
Contact: Carsten Nøddebo, CEO, tel. +45 45 13 20 82