Realkredit Danmark reports net profit of DKK 2,439 million for 2012
Realkredit Danmark today published its annual report for 2012. Highlights are shown below:
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In 2012, the Realkredit Danmark Group recorded a net profit of DKK 2,439 million, against DKK 1,874 million the year before. The result was satisfactory and in line with expectations.
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Total income rose to DKK 5,463 million from DKK 4,491 million in 2011.
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Expenses amounted to DKK 891 million, down DKK 43 million, in particular because of lower expenses for operation and development of IT systems.
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Impairment charges rose and totalled DKK 1,319 million in 2012, against DKK 1,057 million a year earlier, reflecting higher charges against facilities to business customers.
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The delinquency rate, calculated as the proportion of due payments remaining unpaid 3½ months after the last due payment date, was stable throughout the year and stood at 0.49% at the end of 2012, against 0.46% at the end of 2011.
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The nominal outstanding bond debt rose DKK 8 billion to DKK 716 billion at the end of 2012.
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Customers holding 1-year FlexLån® loans for a total of approximately DKK 13 billion chose to lock in their mortgage rate for the next three or five years by changing the repayment profile of their loans. In addition, customers holding variable-rate loans for a total of DKK 6 billion chose to switch to fixed-rate loans.
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In 2012, Realkredit Danmark started to offer loans to a small number of selected, large business customers in Norway. Realkredit Danmark continues to provide loans to selected, large business customers in Sweden.
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Realkredit Danmark repaid the state hybrid capital of DKK 2 billion in the second quarter of 2012.
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Overall, Realkredit Danmark expects to achieve a higher profit in 2013 than it did in 2012.
Annual report 2012
Carsten Nøddebo, CEO, says: “In 2012, we have seen borrowers seek loans with less volatile interest rates. This means that most personal customers now lock in the rate on their FlexLån® for three or five years or switch to fixed-rate loans. Combined, these loan types accounted for 90% of gross new lending in the fourth quarter of 2012, which is a significant and positive development. In comparison, the same loan types accounted for only around 50% of new lending in the first quarter of 2010.”
Contact: Carsten Nøddebo, Chief Executive Officer, tel. +45 45 13 20 82.