Realkredit Danmark announced its final result for 2014.
Realkredit Danmark reports net profit of DKK 3,056 million Realkredit Danmark today published its annual report for 2014.
Highlights are shown below: In 2014, Realkredit Danmark recorded a net profit of DKK 3,056 million, against DKK 2,612 million the year before.
The profit was 17% higher than in 2013 and in line with expectations.
The profit benefited from lower impairments and a higher administration margin.
The administration margin rose primarily because of an increase in the loan portfolio.
Total income rose from DKK 5,800 million in 2013 to DKK 6,016 million, an increase of 4%.
Expenses were down DKK 37 million and amounted to DKK 815 million.
Impairments fell and amounted to DKK 1,171 million, against DKK 1,471 million in 2013.
A general improvement of macroeconomic conditions in Denmark helped reduce impairments.
In the second half of the year, Realkredit Danmark was able to offer customers fixed-rate loans with historically low interest rates, for example a 30-year mortgage loan funded by bonds with a coupon of 2.
5%.
Customer interest in the 2.
5% fixed-rate loan was strong, and loans for DKK 15 billion were disbursed in 2014.
In the last week of 2014, Realkredit Danmark also opened a 30-year loan funded by bonds with a coupon of only 2%.
Customer interest in the FlexKort® loan was very strong, and loans for DKK 14 billion were disbursed in 2014.
The proportion of customers with 1-year FlexLån® loans declined again in 2014.
At the end of 2014, the portfolio of 1-year FlexLån® loans accounted for 13% of the total loan portfolio, which was 4 percentage points less than at end-2013.
Customers continue to show strong interest in reducing interest rate sensitivity by setting their mortgage rates for longer periods.
Overall, Realkredit Danmark expects a higher profit in 2015 than in 2014.
Annual Report 2014Carsten Nøddebo, CEO, says: “The results for 2014 are satisfactory.
An increase in activity in the housing and property markets and a strengthening of our market position contributed to the improvement of our results.
It is also positive that we achieved a significant decline in impairments.
The lower interest rates on mortgage loans and moderate economic growth combined to have a positive effect on the financial situation of our customers.
” 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.