Realkredit Danmark reports net profit of DKr472m for the first quarter of 2010

Realkredit Danmark today published its interim report for the first quarter of 2010.
Highlights are shown below:

• The Realkredit Danmark Group recorded a net profit of DKr472m in the first quarter, against DKr1,045m in the first quarter of 2009. The lower profit in the first quarter of 2010 was due especially to lower income from the investment portfolio because of interest rate developments. The core business developed positively. Overall, the financial performance is satisfactory despite the lower investment portfolio income.
• Gross lending amounted to DKr28bn in the first quarter of 2010, against DKr25bn in the first quarter of 2009.
• Expenses declined DKr24m to DKr213m.
• Loan impairment charges amounted to DKr319m in the first quarter of 2010, against DKr333m in the first quarter of 2009. The charges correspond to 0.18% p.a. of total mortgage lending.
• At March 31, 2010, the solvency ratio was 45.8%, corresponding to a capital buffer of DKr20bn over the statutory requirement.
• The profit for 2010 will to a large extent depend on developments in the capital markets and macroeconomic trends in Denmark. Loan impairment charges are expected to remain high throughout 2010.