Realkredit Danmark reports net profit of DKK 4,181 million
Realkredit Danmark today published its annual report for 2016.
Carsten Nøddebo, CEO, says:
"Realkredit Danmark recorded satisfactory progress in 2016. We strengthened our market position through higher lending to both personal and business customers. Moreover, impairment charges are at the lowest level since 2007, showing a positive trend. This shows that our customers' finances are in much better shape, a development that is also reflected in higher property equity values and the fact that fewer homeowners are technically insolvent."
Highlights are shown below:
- In 2016, the Realkredit Danmark Group recorded a net profit of DKK 4,181 million, an increase of 7% from the result for 2015, which amounted to DKK 3,890 million. The result was in line with expectations. The improvement was driven especially by lower impairments, while income relating to lending activity declined in 2016 after very strong remortgaging activity in 2015. Remortgaging activity recovered somewhat in the second half of 2016, however.
- Impairments fell to DKK 182 million from DKK 432 million in 2015. Total impairments declined as a result of a general improvement of macroeconomic conditions in Denmark. Total impairments equalled 0.02% of total mortgage lending, against 0.06% at the end of 2015.
- Lending developed satisfactorily in 2016, rising DKK 15 billion, of which personal customers accounted for DKK 9 billion.
- In 2016, customers continued to show strong interest in Realkredit Danmark’s fixed-rate products. Disbursements of fixed-rate loans amounted to DKK 65 billion in 2016, corresponding to 48% of disbursed loans. In addition, customers representing a lending volume of DKK 4 billion opted to replace their FlexLån® loans with short refinancing intervals with loans with longer refinancing intervals.
- The profit for 2017 is expected to be at the same level as in 2016.
Annual Report 2016
Contact: Carsten Nøddebo, CEO, tel. +45 45 13 20 82.
This is a translation of a press release in the Danish language. In case of discrepancies, the Danish version prevails.