Company Announcement
Realkredit Danmark reports profit of DKr2,810m for 2008
Realkredit Danmark today announced its financial results for 2008.
Highlights are shown below:
- In 2008, the Realkredit Danmark Group’s profit after tax was DKr2,810m, against DKr2,592m in 2007. The pre-tax profit was DKr3,750m in 2008, against DKr3,446m the year before. In spite of the growing unrest in the financial markets especially in the second half of 2008, the profit was satisfactory.
- Total income rose 12% to DKr5,182m from DKr4,630m in 2007.
- The nominal outstanding bond debt rose DKr35bn to DKr683bn in 2008.
- Gross lending by Realkredit Danmark fell 3% to DKr115bn from DKr119bn in 2007.
Net new lending fell 9% to DKr51bn from DKr56bn in 2007.
- Loan impairment charges amounted to DKr422m, against an income of DKr10m in 2007 and are still moderate. The loan impairment charges correspond to 0.063% of total mortgage lending, and credit quality remains good.
- The delinquency rates are still very low in a historical perspective. The 3-month delinquency rate was 0.28% at the end of 2008, against 0.09% at the beginning of the year.
Annual report 2008 (pdf 2,2 MB)
Sven Holm, Chairman of the Executive Board, says: “We have been through a period of extreme turmoil in the financial markets. Realkredit Danmark has managed to achieve a satisfactory profit in the difficult period. Income was up owing to an increase in the loan portfolio and higher net interest income. Delinquency rates rose in the course of the year but are still low. The results for 2009 will depend on developments in the capital markets and macro-economic trends in Denmark.”
Contact:
Sven Holm, Chairman of the Executive Board and Chief Executive Officer, tel. +45 45 13 20 81.