Company Announcement
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.