Realkredit Danmark reports pre-tax profit of DKr3,446m for 2007

Realkredit Danmark today announced its financial results for 2007. Highlights are shown below:

• In 2007, the Realkredit Danmark Group’s profit after tax was DKr2,592m, against DKr2,356m in 2006. The pre-tax profit was DKr3,446m in 2007 against DKr3,217m the year before, matching the level forecast at the publication of the report for the first nine months of 2007.
• Total income amounted to DKr4,630m, up from DKr4,283m in 2006.
• The nominal outstanding bond debt rose DKr39bn to DKr648bn in 2007.
• The market share of net new lending was 25.1% in 2007, against 28.7% in 2006. The market share of the loan portfolio was 31.8% at the end of 2007, compared with 32.8% at year-end 2006. The lower market shares are partly attributable to the fact that Realkredit Danmark has generally advised against refinancing to a higher coupon, thus limiting the volume of refinancing activity and related supplementary borrowing in 2007.
• Gross lending to corporate customers amounted to DKr48bn in 2007, which was on a level with 2006. At the same time, the loan portfolio rose by DKr18bn. The agriculture segment achieved the relatively largest increase in gross lending.
• Gross lending to the private market amounted to DKr72bn, against DKr97bn in 2006. The decline was primarily due to lower activity in the market. The loan portfolio was up DKr21bn to DKr399bn.
• The launch of the loan type Cibor6® Extra in May caused an increase in demand for and growth in lending for property in the manufacturing and manual industries and property for social and cultural purposes.
• Realkredit Danmark was the first mortgage credit institution to start issuing mortgage-covered bonds on July 13, 2007. As a result of this, nearly all FlexLån® from this date onwards were based on mortgage-covered bonds instead of traditional mortgage bonds.
• Realkredit Danmark’s local presence in the private market more than doubled in 2007 so that customers can now receive home finance advisory services from Realkredit Danmark home finance advisers at 48 centrally located Danske Bank branches across Denmark. In the corporate market, the organisation has been strengthened following the opening of six new corporate centres, so that Realkredit Danmark now has ten corporate centres across Denmark.
• The pre-tax profit for 2008 will depend largely on trends in the financial markets, including the level of securities prices at the end of the year. At a slight fall in interest rates, the pre-tax profit for 2008 is expected to be 4-9% higher than in 2007.