Company Announcement

The Realkredit Danmark Group recorded a net profit of DKK 648 million for the first quarter of 2013, against DKK 424 million in the first quarter of 2012. Realkredit Danmark’s financial performance benefited from satisfactory developments in business activity and tight cost control.

Total income rose to DKK 1,511 million from DKK 1,177 million in the first quarter of 2012.

Expenses were down 15% from the first-quarter 2012 level.

Impairments rose to DKK 454 million, against DKK 385 million a year earlier. Impairments on business customers were stable. The rise in total impairments was caused by a collective charge of DKK 100 million made to cover losses on interest-only loans. Impairments equalled 0.25% p.a. of total mortgage lending, against 0.18% p.a. in 2012.

The delinquency rate, calculated as the proportion of due payments remaining unpaid 3½ months after the last due payment date, was 0.57% in the first quarter of 2013, against 0.58% in the first quarter of 2012.

At 31 March 2013, the total number of foreclosures was 149, or seven less than at 1 January 2013.

The total capital ratio calculated in accordance with the Capital Requirements Directive was 33.6%, against 34.3% at the end of 2012. The capital base amounted to DKK 45.3 billion and included a capital buffer of DKK 19.0 billion calculated in accordance with the transitional rules of the directive.

During the first quarter of 2013, Realkredit Danmark issued senior debt in the amount of DKK 2 billion. In April, a further issue of DKK 3.5 billion was made.

In the first quarter of 2013, customers with loans representing approximately DKK 17 billion switched from annual refinancing to refinancing every three to five years, continuing the trend from the fourth quarter of 2012.

Overall, Realkredit Danmark maintains its expectations for a higher profit in 2013 than in 2012.