Monday, 19 August 2019 02:00 GMT

Nykredit Bank Group - Annual Report 2018 Copenhagen Stock Exchange:NYBANK

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To Nasdaq Copenhagen A/S
and the Press

5 February 2019


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 Financial Statements:

  • Nykredit delivered the second-best financial performance ever in 2018, which was yet another year of expansion of the customer base and significant growth in both lending and assets under management. This is very satisfactory and is a testament to the strength of our underlying business. It is therefore recommended to the Annual General Meeting, for the second consecutive year, that Nykredit distribute half of its profit after tax as dividend.

  • For Nykredit, 2018 will be remembered as the year when our customers truly felt the positive effects of Nykredit's ownership by an association. At the beginning of the year, our majority owner, the association Forenet Kredit, returned most of its share of the dividend to Nykredit. Money that we then returned to our customers – homeowners, businesses and farmers – who received a total of DKK 1.1 billion in 2018. This special trait of our ownership structure will characterise Nykredit going forward. In 2019 we expect to return a total of DKK 1.7 billion to our customers.

  • Most of the money we returned in 2018 went to homeowners with Totalkredit mortgage loans in the form of customer discounts (KundeKroner), which reduce the borrowing costs for our customers. Average administration margin payments in Totalkredit are now at the lowest level in four years.

  • In 2019 we will strive to continue recent years' growth in customer numbers and lending volumes so that we may welcome even more homeowners, businesses and farmers as customers of a customer-owned, financial provider that gives back.

Highlights from the Annual Report 2018:

  • Nykredit Bank's lending* and assets under management increased in 2018 by 11.5% and 17.7%, respectively.

  • Totalkredit's lending at nominal value went up by 6.8% in 2018.

  • The Group's efficiency and profitability remain at a competitive level with a cost:income ratio of 40.7% and a return on business capital (ROAC) of 10.2%.

  • At the beginning of 2018, expectations for profit before tax and business profit for 2018 were DKK 6.5-7.5 billion. These expectations were matched. However, in the H1 Interim Report, expectations for profit before tax and business profit were revised to being at the top half of the range. Because of the financial turmoil around year-end, only profit before tax reached the top half of the range.

  • Profit declined compared with the exceptionally strong 2017, which was driven partly by high investment portfolio income and considerable reversals of value adjustments of legacy derivatives.

    * Including secured homeowner loans transferred to Totalkredit.
DKK million Nykredit Group 2018 2017 2016 2015 2014 Income 12,023 14,010 13,411 12,407 10,793 Costs 4,890 5,067 5,285 5,071 5,107 Impairment charges for loans and advances 380 379 680 920 2,351 Business profit 6,753 8,564 7,446 6,416 3,336 Legacy derivatives 280 1,517 (763 ) 229 (2,674 ) Impairment of goodwill and customer relationships - - - 1,965 852 Profit (loss) before tax for the year 7,033 10,081 6,683 4,680 (190 ) Tax 1,293 2,077 1,377 1,493 89 Profit (loss) for the year 5,740 8,004 5,306 3,187 (279 )

Reference is made to the Annual Reports 2018 of the individual companies, published today at

For further comments, please contact Nykredit Press Relations at tel +45 44 55 14 50.


  • Nykredit Bank Group Annual Report 2018
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    Nykredit Bank Group - Annual Report 2018 Copenhagen Stock Exchange:NYBANK

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