Net profit of DKK 2,786 million for the first nine months
|Press release||Telephone number. +45 45 14 14 00
October 29, 2021
nNet profit of DKK 2,786 million for the first nine months from 2021
Realkredit Danmark today published its interim report for the first nine months of 2021.
Carsten NÃ¸ddebo, CEO, comments on the financial results:
“After a relatively subdued Loan Growth We enjoyed significantly higher loan growth of DKK 6 billion in the third quarter. We continue to focus on lending be based on a robust Foundation, endowment and for this reason consider the more subdued price development on the housing market be beneficial, raiseing the likelihood of a soft landing after a period of sharp price increases.
The improvement in the result of the first three quarters of the year compared to the same period in 2020 is while mainly on impairment expenses back to a more normal level. A decline in administrative margin income due to the increased choice of fixed-rate loans and longer interest rate adjustment intervals had a negative impact. In addition, the costs increased because increased investment in compliance activities and Digitization and to Contributions to the Danish fun of dissolutionD.â
The report is available at rd.dk. The highlights are listed below:
- Realkredit Danmark Group posted a net profit of DKK 2,786 million in the first nine months of 2021 compared to DKK 2,693 million in the first nine months of 2020. The profit was influenced by lower loan allowances and costs for ongoing compliance and digitization.
- Credit allowances were DKK 258 million in the first nine months of 2021 compared to DKK 552 million in the first nine months of 2020. Credit allowances in the first nine months of 2021 were more normal.
- In the first nine months of the year nominal bonds outstanding increased by DKK 9 billion, with DKK 6 billion in the third quarter of the increase.
- Realkredit Danmark continued to focus on green bond initiatives. Customer reactions have been very positive and total lending as of September 30, 2021 was DKK 16.1 billion.
- Customer interest in Realkredit Danmark’s recently launched products, FlexLifeÂ® floating rate and FlexLifeÂ® fixed rate loans, remained very high and as of September 30, 2021, Realkredit Danmark had loans of this type totaling 72 billion. DKK paid.
- Fixed-rate mortgages are low-risk, low-margin loans. You have regained the role of the preferred mortgage loan among homeowners in Denmark. This, coupled with the fact that customers are increasingly paying back their loans, has resulted in a slight decrease in management margin income.
- Realkredit Danmark expects a slightly lower net profit for 2021 than for 2020.
Realkredit Danmark press release October 29, 2021
Realkredit Danmark interim report for the first nine months of 2021