Realkredit Danmark reports net profit of DKr921m for the first half of 2010

Realkredit Danmark today published its interim report for the first half of 2010.

Highlights are shown below: The Realkredit Danmark Group recorded a net profit of DKr921m, against DKr1,514m in the first half of 2009.

The lower profit was caused by lower income from the investment portfolio triggered by developments in interest rates.

Loan impairment charges amounted to DKr587m, against DKr644m in the first half of 2009.

Gross lending amounted to DKr53bn, against DKr58bn in the first half of 2009.

Expenses declined DKr49m to DKr446m.

Showing a small decline, the 3-month delinquency rate stood at 0.

73% after the second quarter of 2010, against 0.

84% after the first quarter.

At June 30, 2010, the solvency ratio was 45.

5%, with a capital buffer of DKr20bn over the statutory requirement.

The financial performance for 2010 as a whole will still depend on macroeconomic trends and developments in the capital markets.

The level of loan impairment charges is likely to remain high in 2010, although somewhat lower than in 2009.

Interim report for the first half of 2010.

(pdf 274 KB) Carsten Nøddebo,

CEO,

says: "The financial performance is satisfactory. The declining delinquency rate,

lower impairment charges and stabilising house prices lead us to be cautiously optimistic. The lower profit in the first half of 2010 was caused by lower income from the investment portfolio triggered by developments in interest rates." Commenting on the postponement of part of the new Basel III rules,

Carsten Nøddebo adds: "We are pleased that the Basel Committee has decided to postpone the implementation of liquidity requirements and that the new rules are likely to be less restrictive. When it comes to the general requirements for the sector,

the future remains uncertain." Contact: Carsten Nøddebo,

CEO,

tel. +45 45 13 20 82 This is a translation of a press release in the Danish language. In case of discrepancies,

the Danish version prevails.