Realkredit Danmark reports net profit for 2017 of DKK 4,368 million
Realkredit Danmark today published its annual report for 2017. Carsten Nøddebo, CEO, says:
“The year 2017 was a good year for Realkredit Danmark, with growth in lending to both personal and business customers. In addition, loan impairment charges fell further, and we strengthened our market position over the year. In September, we launched a new mortgage loan product, FlexLife®, which was well received by existing as well as new customers. In 2017, we issued loan offers for the new loan product totalling more than DKK 5 billion, of which one fifth was to new customers.”
Highlights are shown below:
- In 2017, the Realkredit Danmark Group recorded a net profit of DKK 4,368 million, which was an increase of 4% from the level in 2016. The performance was satisfactory. The positive profit performance was driven primarily by lending growth. Remortgaging activity was at the same high level as in 2016.
- Impairments fell from DKK 182 million in 2016 to DKK 147 million in 2017, and thus remained low. As in 2016, we reversed charges previously made, primarily against facilities to business customers. Of total impairments for the year, the majority related to personal customer loans.
- Total mortgage lending rose DKK 15 billion in 2017.
- In mid-September, Realkredit Danmark launched a new mortgage loan product called FlexLife®. FlexLife® is far more flexible than other mortgage loans currently on the market. It has been very well received by customers, and at the end of the year, loan offers had been issued for a total amount in excess of DKK 5 billion.
- In 2017, nine in ten customers opted for fixed-rate loans or FlexLån® loans with refinancing intervals of 5 years or more.
- Realkredit Danmark expects net profit to be at the same level in 2018 as in 2017.
Annual Report 2017
Contact: Carsten Nøddebo, CEO, tel. +45 45 13 20 82.
