Realkredit Danmark reports net profit of DKK 2,129 million for the first half of 2024
July 19 2024 - 1:31AM
UK Regulatory
Realkredit Danmark reports net profit of DKK 2,129 million for the
first half of 2024
Press release
|
|
Tel. +45 45 14 14 00
19 July 2024
|
Realkredit Danmark reports net profit of DKK 2,129
million for the first half of 2024
Realkredit Danmark today published its interim report for the
first half of 2024.
Kamilla Hammerich Skytte, CEO, comments on the financial
results:
“Realkredit Danmark delivered a solid result for the first
half-year of 2024 that was on par with the result for the
year-earlier period. The positive trend in the top line was
attributable to the higher level of interest rates, although this
increase was offset by model-based loan impairment
charges.
Activity in the housing market has recovered in 2024
following a plunge early in the year. Overall, the housing market
has not been affected to any major extent by the transition to the
new property tax rules. Although uncertainty about both
developments in the economy and the housing market in the coming
years continues to be considerable, the housing market is supported
by factors such as a low unemployment rate, good salary increases
and lower inflation, and all in all, we expect to see price
increases of around 3-4% in 2024.
As always, the Danske Bank Group maintains a focus on
providing the best possible advisory services and attractive loan
terms across mortgage credit and bank home finance propositions. As
part of the Group’s Forward ’28 strategy, most recently, Realkredit
Danmark has together with Danske Bank lowered the interest rate on
supplementary home financing, which benefits first-time buyers in
particular.
For both residential and commercial property owners, the
green transition is an important focus area, and our aim is to make
it as simple as possible for our customers to future proof their
homes and properties. The attractive terms offered by the Danske
Bank Group for loans for energy efficiency improvements thus also
now apply to loans for climate adaptation of homes. In addition, we
have expanded our partnership with consulting engineers OBH to
offer customers advice not only about energy efficiency
improvements but also about climate adaptation.”
The report is available at rd.dk. Highlights are shown
below:
- For the first half of 2024,
Realkredit Danmark’s net profit was DKK 2,129 million (H1 2023: DKK
2,141 million). The topline increased, driven by the higher
interest rate levels, although the increase was offset by
model-based loan impairment charges.
- We made progress with our Climate
Action Plan, and we see momentum from commercial property customers
picking up. Our ambition is to reach a 75% reduction of carbon
emissions from properties in Denmark.
- For business customers, we continue
to issue green bonds to finance properties that meet the
requirements set out in our Green Financing Framework. At the end
of June 2024, we had issued DKK 28.3 billion in green bonds.
- Mortgage lending at fair value
decreased DKK 9 billion to DKK 744 billion in the first half of
2024. The development is composed of a decrease in the nominal
outstanding bond debt of DKK 4 billion and a decrease of DKK 5
billion in the market value adjustment.
- Credit quality remained solid and
loan impairment charges were affected by a planned model
change.
- Realkredit Danmark’s capital base
continues to be robust with significant buffers well above the
regulatory requirements. Total capital amounted to DKK 49.7 billion
and the total capital ratio was 31.6%.
- The Systemic Risk Council has
recommended that a systemic buffer of 7% be introduced for
exposures to property companies. As a result, the financial sector
will face increasing capital buffer requirements from 1 July 2024
of DKK 10 billion. Consequently, in order to support a balanced
capital structure, Realkredit Danmark has decided not to pay
extraordinary dividend during 2024.
- Realkredit Danmark expects net
profit in 2024 to be marginally higher than net profit in 2023.
Contact: Kamilla Hammerich Skytte, CEO, tel. +45 45 13 20 82
- RD press release 19 July 2024
- Realkredit Danmark - Interim report first half 2024