Nykredit Realkredit Group - Annual Report 2022

Nykredit Realkredit A/S

To        Nasdaq Copenhagen A/S and the press

8 February 2023

Nykredit today announces the Annual Reports for 2022 of:

Nykredit A/S, CVR no 12 71 92 48 
Nykredit Realkredit A/S, CVR no 12 71 92 80 
Nykredit Bank A/S, CVR no 10 51 96 08 
Totalkredit A/S, CVR no 21 83 22 78

Michael Rasmussen, Group Chief Executive, comments on the Annual Report 2022:
- Nykredit reported its best ever financial results today. And this is highly satisfactory. 2022 was yet another busy year with high business and customer growth in Nykredit Bank and Totalkredit. We have also recorded growth in Nykredit Wealth Management, which includes Nykredit Invest and Sparinvest. However, given the macroeconomic outlook, we cannot expect the same high activity level and results next year.

- 2022 was characterised in particular by the war in Ukraine and its impacts, which quickly fed through to the global economy and fuelled volatility. In times like these, I am particularly proud that customers, colleagues and Nykredit on the whole faced the current situation with resilience and the adaptability to change.

- Our full-year results were also driven by a strong credit quality, which has resulted in low loan impairments. We successfully managed our own portfolios and also benefited from market tailwinds around year-end. All value adjustments have been recognised through profit or loss.

- The increase in customer numbers across Nykredit Bank and Totalkredit gives us the opportunity to show even more homeowners, private investors and businesses what a mutual financial provider can do for them. In 2022 we have given back about DKK 1.9 billion to customers. Something that is possible thanks to our owner, Forenet Kredit. Based on net profit for 2022, it is recommended to the Annual General Meeting that Nykredit distribute ordinary dividend of DKK 4.65 billion.

Highlights from the Annual Report 2022:

• Business profit and profit before tax were DKK 10.6 billion and DKK 11.5 billion, respectively, for 2022.

• For 2023, Nykredit is guiding for a profit after tax of DKK 8.0-9.0 billion.

• Totalkredit's nominal lending increased by DKK 11 billion to DKK 877 billion in the period.

• Nykredit Bank's lending increased by 16% to DKK 87 billion.

• Assets under management in Nykredit Wealth Management totalled DKK 438 billion at end-2021 and DKK 406 billion at end-2022.

• Nykredit maintains a very strong capitalisation with a Common Equity Tier 1 (CET1) capital ratio of 19.5%.

• From 2023 Nykredit's target for the annual return after tax will be 8.0% of shareholders' equity (RoE). This target replaces the target of a return after tax of 7.5% of allocated capital (RoAC).

• Nykredit's total capital ratio was down 37.6% at end-2022.

			DKK million
Nykredit Group	2022	2021	Change
Net interest income	10,871	9,978	892
Net fee income	3,119	2,406	712
Wealth management income	2,279	2,324	-45
Net interest from capitalisation	(740)	(484)	-256
Net income relating to customer benefits programmes	(443)	(414)	-29
Trading, investment portfolio and other income	1,736	2,718	-981
Income	16,823	16,529	294
Costs	6,327	6,349	22
Business profit before impairment charges	10,496	10,179	316
Impairment charges for loans and advances	(80)	(115)	35
Business profit	10,576	10,295	281
Legacy derivatives	931	432	500
Profit before tax for the year	11,507	10,727	780
Tax	2,059	1,862	-197
Profit for the year	9,448	8,865	583

Contact
For further comments, please contact Head of Press Relations Rikke Gredsted Seidenfaden at tel +45 27 58 95 88.

Attachment

• nyrr-2022-12-31