Realkredit Danmark reports net profit of 1,948 million DKK for the first half of 2021
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July 23, 2021
Real estate loan Denmark reports net profit of DKK 1,948 Millions for the first half from 2021
Realkredit Danmark today published the interim report for the first half of 2021.
Carsten Nøddebo, CEO, comments on the financial results:
“The rapid recovery of the Danish economy and employment means that value adjustments for the first half of 2021 have landed at a normalized level. Lending was satisfactory at this unusual time when house prices rose sharply in some parts of Denmark. Although it is uncertain how things will play out in the coming period, we expect the rise in housing prices to slow, which may add to the risk of overpriced real estate on the housing market.
We continue to see a very high demand for the FlexLife® Kreditart and are also pleased about the great interest in green Pfandbriefe – proof the the important sustainability agenda did not suffer from the coronavirus pandemic. “
The report is available at rd.dk. The highlights are listed below:
Realkredit Danmark Group posted a net profit of DKK 1,948 million in the first half of 2021 compared to DKK 1,783 million in the first half of 2020. The profit was influenced by lower loan loss allowances.
The loan loss allowances in the first half of 2021 were DKK 164 million compared to DKK 470 million in the first half of 2020. The loan loss allowances in the first half of 2021 reached a more normal level.
Realkredit Danmark kept its focus on green bond initiatives in the first half of 2021. Customer reactions have been very positive and total lending now stands at DKK 11.5 billion.
Customer interest in Realkredit Danmark’s recently launched products, FlexLife® variable rate and FlexLife® fixed rate loans, remains very high and as of June 30, 2021, Realkredit Danmark had disbursed DKK 66 billion in loans .
Fixed-rate mortgages are low-risk, low-margin loans. They have regained their role as the preferred type of mortgage loan among Danish homeowners. 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.
Contact: Carsten Nøddebo, CEO, tel. +45 45 13 20 82.