20090505pressrelease



	Company Announcement Profit of DKr1,045m for the first quarter of 2009 Realkredit Danmark today published its report for the first quarter of 2009. Highlights are shown below: The Realkredit Danmark Group's profit rose 40% to DKr1,045m, against DKr747m in the first quarter of 2008. The financial performance is satisfactory and better than expected. The profit improvement was especially due to higher income from the investment portfolio, although this income was partly offset by higher loan impairment charges. Gross lending of DKr25bn in the first quarter of 2009, against DKr27bn in the first quarter of 2008. Operating expenses declined by 5% to DKr237m. Loan impairment charges amounted to DKr333m for the first quarter of 2009, against DKr380m in the fourth quarter of 2008 and a net income of DKr3m in the first quarter of 2008. The loan impairment charges correspond to 0.19% p.a. of total mortgage lending and primarily relate to corporate loans. At March 31, 2009, the solvency ratio was 50.7%. The Danish state has approved Realkredit Danmark’s application for subordinated loan capital in the form of hybrid core capital totalling DKr2bn. The financial performance for 2009 as a whole will depend on macroeconomic developments and trends in the capital markets. Owing to the general economic trends, Realkredit Danmark expects the level of loan impairment charges to remain high throughout 2009. First quarter report 2009 (pdf 100 KB) Carsten Nøddebo Rasmussen, member of the Executive Board, says: “The profit was satisfactory in spite of the growing unrest in the financial markets. The profit improvement was especially attributable to higher income from the investment portfolio due to interest rate developments. The increase in delinquencies as a percentage of payments recorded in recent quarters continued in the first quarter of 2009. At March 31, the 3-month delinquency rate was 0.37%, against 0.28% at the beginning of the year. This indicates that the higher level of loan impairment charges will continue for a while yet.” Contact: Carsten Nøddebo Rasmussen, Member of the Executive Board, tel. +45 45 13 20 82.