Realkredit Danmark reports net profit of DKK 1,395 million for the first nine months of 2010

Realkredit Danmark today published its interim report for the first nine months of 2010. Highlights are shown below:

• The Realkredit Danmark Group recorded a net profit of DKK 1,395 million in the first nine months of 2010, against DKK 2,133 million in the first nine months of 2009. The financial performance is satisfactory. Profit for the first nine months of 2010 was lower because developments in interest rates caused income from the investment portfolio to decline. Realkredit Danmark recorded a positive trend in administration margins, expenses and impairment charges.
• Loan impairment charges amounted to DKK 808 million, against DKK 944 million in the first nine months of 2009.
• Gross lending amounted to DKK 87 billion, against DKK 86 billion in the first nine months of 2009.
• The decline in delinquency rates during the first two quarters continued into the third quarter. The three-month delinquency rate stood at 0.62% after the third quarter, against 0.73% after the second quarter.
• At 30 September 2010, the solvency ratio was 41.7%, with a capital buffer of DKK 21 billion over the statutory requirement.
• The financial performance for 2010 will continue to depend on a sustainable stabilisation of macroeconomic trends. The level of loan impairment charges is likely to remain high in 2010, although lower than in 2009.