Realkredit Danmark reports net profit of DKr2,594m for 2009

Realkredit Danmark today announced its annual report for 2009.
Highlights are shown below:

• In 2009, the Realkredit Danmark Group recorded a net profit of DKr2,594m, against DKr2,810m the year before. The profit was 8% lower than in 2008, especially due to higher loan impairment charges, although these charges were partly offset by higher income from the investment portfolio. The financial performance is satisfactory.
• Throughout 2009, Realkredit Danmark accommodated its existing and new creditworthy customers and had gross lending of DKr121bn in 2009, against DKr115bn in 2008.
• Total income rose 10%, in 2009 to DKr5,718m, against DKr5,182m in 2008.
• Loan impairment charges amounted to DKr1,267m, against DKr422m in 2008. The charges correspond to 0.18% of total mortgage lending.
• Delinquencies as a percentage of payments rose, albeit from a very low level. The 3-month delinquency rate thus stood at 1.02% at the end of 2009, against 0.28% at the beginning of the year.
• At December 31, 2009, the solvency ratio was 44.6%, against 56.6% at end-2008.
• With a capital base of DKr43.3bn, the Realkredit Danmark Group has a capital buffer of DKr19.5bn over the statutory requirement and a good foundation for the future.
• The Group expects the level of loan impairment charges to remain high in 2010. The expected profit for 2010 will to a large extent depend on developments in the capital markets and macroeconomic trends in Denmark.