Realkredit Danmark announced its final result for 2018
Realkredit Danmark reports net profit of DKK 4,649 million for 2018 Realkredit Danmark today published its annual report for 2018 Carsten Nøddebo, CEO, says: “2018 was a good year for Realkredit Danmark.
There was a generally positive development and activity in the housing and property market, which combined with reversals of impairments previously made contributed to a satisfactory result.
Despite the increase in the loan portfolio, income in 2018 was at the same level as income in 2017.
This was because more personal customers benefited from a lower administration margin by opting out of interest-only loans and switching to longer refinancing intervals.
Realkredit Danmark’s new loan product, FlexLife® has quickly become very popular with customers as an alternative to conventional mortgage loans.
It is especially the possibility of having far more flexibility and a total interest-only period of up to 30 years that attracts customers.
At the end of 2018, we had thus disbursed FlexLife® loans for a total of DKK 18 billion.
” Highlights are shown below: In 2018, the Realkredit Danmark Group recorded a net profit of DKK 4,649 million, corre-sponding to an increase of 6% from the level in 2017.
Net profit was satisfactory and supported by an increase in the loan portfolio.
Impairments amounted to an income of DKK 204 million, against a charge of DKK 147 million in 2017.
As in 2017, we reversed charges previously made, primarily against loans to business customers.
Total mortgage lending rose DKK 9 billion in 2018.
Customer demand for Realkredit Danmark’s most recently launched mortgage loan product, FlexLife®, remained strong.
FlexLife® loans thus accounted for 17% of new lending to personal customers.
In the 60+ age group, the figure was 75%.
In 2018, customers primarily opted for fixed-rate loans and FlexLån® loans with refinancing intervals of 5 years.
Nominal instalments are now at the same level as prior to the introduction of interest-only loans in 2003.
Overall, ordinary instalments amounted to 2% of the loan portfolio.
Realkredit Danmark expects net profit for 2019 to be at the same level as in 2018.