Profit of DKr1,514m for the first half of 2009

Realkredit Danmark today published its report for the first half of 2009.
Highlights are shown below:

• The Realkredit Danmark Group’s profit after tax rose 22% to DKr1,514m, against DKr1,242m in the first half of 2008. The financial performance is satisfactory and better than expected. The profit improvement was due especially to higher income from the investment portfolio, although this income was partly offset by higher loan impairment charges.
• Realkredit Danmark supported its creditworthy customers throughout the period. Gross lending amounted to DKr58bn in the first half of 2009, against DKr59bn in the first half of 2008.
• At DKr495m, operating expenses were on a level with the first half of 2008.
• Loan impairment charges amounted to DKr644m in the first half of 2009, against DKr9m in the first half of 2008. In the second quarter of 2009, loan impairment charges amounted to DKr311m, against DKr333m in the first quarter. The charges made in the first half correspond to 0.19% p.a. of total mortgage lending. Most of the impairment charges concern corporate loans.
• The 3-month delinquency rate thus stood at 0.66% after the first half of 2009, against 0.28% at the beginning of the year.
• For the purpose of providing customers with a full-service financial solution, Realkredit Danmark’s corporate advisers will join the corporate advisers at Danske Bank’s finance centres on September 1, 2009. This integration of activities means that 175 Realkredit Danmark staff members will become employees of Danske Bank.
• As a result of the new organisational structure and the general decline in home finance activity, Realkredit Danmark will reduce its headcount by 48 through retirement and dismissals.
• 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.