Realkredit Danmark reports net profit of DKK 1,874 million for 2011

Realkredit Danmark A/S 

09.02.2012 08:01
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Coenhagen, Denmark, 2012-02-09 08:01 CET (GLOBE NEWSWIRE) -- Realkredit Danmark
today published its annual report for 2011. The report is available on
www.rd.dk. Highlights are shown below: 

  -- In 2011, the Realkredit Danmark Group recorded a net profit of DKK 1,874
     million, against DKK 1,721 million the year before.
  -- Total income rose 8% relative to 2010 and amounted to DKK 4,491 million.
  -- Loan impairment charges rose to DKK 1,057 million, against DKK 976 million
     in 2010. The charges equalled 0.15% of total mortgage lending, against
     0.14% at the end of 2010. The charges were split evenly between charges
     against personal customer loans and charges against business loans. Loan
     impairment charges rose in the fourth quarter. The increase was
     attributable mainly to higher charges against business loans.
  -- Expenses climbed DKK 37 million to DKK 934 million, partly because of
     higher IT expenses aimed at improving customer service.
  -- Delinquencies as a percentage of mortgage payments declined during the
     second half of the year. The three-month delinquency rate thus stood at
     0.46% at the end of 2011, against 0.63% a year earlier.
  -- At 31 December 2011, the total capital ratio was 35.8%.
  -- Realkredit Danmark expects to repay the hybrid tier 1 capital of DKK 2
     billion raised from the Danish state on 11 May 2012, which is the earliest
     possible redemption date.
  -- Realkredit Danmark expects a higher profit in 2012 than in 2011 because of
     higher administration margins and the focus on cost control.

Carsten Nøddebo, CEO, says: 'Although the European economies are seeing
financial turbulence, investors show confidence in the Danish economy and
Danish mortgage bonds. The upside is cheaper loans to customers. And Realkredit
Danmark has managed to get through 2011 with a 9% increase in net profit.' 



Contact: Carsten Nøddebo, CEO, tel. +45 45 13 20 82.



5-year financial highlights - Realkredit Danmark Group

                                                                                
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NET PROFIT FOR THE YEAR                 2011     2010     2009     2008     2007
(DKK millions)                                                                  
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Administration margin                  3,564    3,423    3,200    2,954    2,833
Net interest income                      660      614    1,718    1,963    1,740
Net fee income                          -488     -501     -415     -431     -340
Income from investment portfolios        650      463    1,113      547      237
Other income                             105      168      102      149      160
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Total income                           4,491    4,167    5,718    5,182    4,630
Expenses                                 934      897      984    1,010    1,194
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Profit before loan impairment          3,557    3,270    4,734    4,172    3,436
 charges                                                                        
Loan impairment charges                1,057      976    1,267      422      -10
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Profit before tax                      2,500    2,294    3,467    3,750    3,446
Tax                                      626      573      873      940      854
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Net profit for the year                1,874    1,721    2,594    2,810    2,592
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BALANCE SHEET (AT 31 DECEMBER)                                                  
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(DKK millions)                                                                  
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Due from credit institutions etc.     32,556   28,889   48,966   25,069   23,178
Mortgage loans                       723,754  704,449  691,301  669,891  627,809
Bonds and shares                      17,300   21,688    3,332   13,062   40,059
Other assets                           2,950    2,595    2,744    2,900    3,157
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Total assets                         776,560  757,621  746,343  710,922  694,203
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Due to credit institutions etc.       20,668   27,408   26,855    8,111   11,918
Issued mortgage bonds                695,080  671,644  660,685  647,731  630,844
Other liabilities                     14,010   13,625   15,604   16,512   15,683
Subordinated debt                      2,045    2,061    2,037        -        -
Shareholders' equity                  44,757   42,883   41,162   38,568   35,758
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Total liabilities and equity         776,560  757,621  746,343  710,922  694,203
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RATIOS AND KEY FIGURES                                                          
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Net profit for the year as % of          4.3      4.1      6.5      7.6      7.5
 avg. shareholders' equity                                                      
Cost/income ratio (%)                   20.8     21.5     17.2     19.5     25.8
Total capital ratio (%)                 35.8     39.4     44.6     56.6     10.5
Tier 1 capital ratio (%)                35.4     38.8     44.2     56.5     10.5
Full-time-equivalent staff, end of       303      320      300      520      519
 year                                                                           
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News Source: NASDAQ OMX



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Language:     English
Company:      Realkredit Danmark A/S
              
               
              Denmark
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         DK0002200435
WKN:          
 
End of Announcement                             DGAP News-Service
 
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