Nykredit Realkredit A/S H1 Interim Report 2022

Nykredit Realkredit A/S

To Nasdaq Copenhagen A/S and the press

17 August 2022

Nykredit today announces its H1 Interim Reports 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 Nykredit's H1 Interim Report 2022:

• Our half-year results presented today are highly satisfactory with profit before tax and business profit of DKK 5,015 million and DKK 4,344 million, respectively. We maintain our previously raised full-year guidance and see a continued positive development on the back of a remarkably strong performance in 2021.
  
  

• Nykredit maintains strong momentum across all business areas with lending and customer growth in both Totalkredit and Nykredit Bank. We have also further consolidated our market position within all our business areas in H1 thanks in part to our unique mutual ownership structure and business model, based on which we can offer mutual benefits (ForeningsFordele) to all customer segments.
  
  

• Core earnings trended upwards with satisfactory growth in net interest income, net fee income and wealth management income. Our customers remain robust despite a first half-year of 2022 marked by the current geopolitical conditions as well as rising inflation and elevated energy prices.
  
  

• Our financial results were also affected by circumstances beyond our control. We have managed our own portfolios effectively and are satisfied with our trading and investment portfolio income despite the turmoil in financial markets. Nykredit's legacy derivatives had a positive impact on results. The aggregate impact of the above circumstances is recognised in the income statement.
  
  

Highlights from the H1 Interim Report 2022:

• Profit before tax and business profit for H1/2022 were DKK 5,015 million and DKK 4,344 million, respectively.

• Nykredit maintains its previously raised guidance for profit before tax of DKK 8.5-9.5 billion from the former DKK 7.5-8.5 billion.

• Totalkredit's lending at nominal value has increased by 6% since end-June 2021 to DKK 888 billion at end-June 2022.

• Nykredit Bank's^* lending has increased by 20% from DKK 77.3 billion since end-June 2021 to DKK 93.0 billion at end-June 2022.

• Assets under management in Nykredit Wealth Management totalled DKK 405 billion at end-June 2022.

• Nykredit maintains a strong capital position with a Common Equity Tier 1 (CET1) capital ratio of 19.8%.

			DKK million
Nykredit Group	H1/	H1/
	2022	2021		Change
Net interest income	5,152	4,940		212
Net fee income	1,415	1,216		199
Wealth management income	1,171	1,100		71
Net interest from capitalisation	(292)	(246)		-47
Net income relating to customer benefits programmes	(192)	(174)		-17
Trading, investment portfolio and other income	(41)	1,244		-1.286
Income	7,213	8,080		-868
Costs	3,094	2,989		-105
Business profit before impairment charges	4,118	5,091		-973
Impairment charges for loans and advances	(226)	89		315
Business profit	4,344	5,002		-658
Legacy derivatives	670	292		378
Profit before tax for the period	5,015	5,295		-280
Tax	958	942		16
Profit for the period	4,057	4,353		-296

Contact
For further comments, please contact Nykredit Press Relations at tel +45 27 58 95 88.

Attachment

• Nykredit_Realkredit_Group_Q2_22_2022-08-17_EN