Nykredit Realkredit A/S: Interim Reports Q1 2025 - Nykredit Realkredit Group

To Nasdaq Copenhagen A/S
and the press

8 May 2025

Nykredit today announces its Q1 Interim Reports 2025 of:

Nykredit A/S, CVR no 12 71 92 48
Nykredit Realkredit A/S, CVR no 12 71 92 80

Michael Rasmussen, Group Chief Executive, comments on the Q1 Interim Report 2025:

• Today, we are pleased to present a highly satisfactory interim profit after tax of DKK 3,000 million. At the same time, we are raising our full-year guidance to a profit after tax of DKK 9.25-10.0 billion as a result of growth in all core business areas in the first three months of the year, including rising net interest and fee income. We continue to welcome new customers and have seen an increase in mortgage and bank lending to both personal and business customers. This has resulted in expanded market positions across the board.
  
  
• The upgraded full-year profit guidance is also driven by a positive trend in investment portfolio income despite market turbulence. The strong performance also reflects the financial robustness of our customers, and impairment charges consequently remain low.
  
  
• Totalkredit has concluded an agreement with the 41 Totalkredit partner banks to adjust the partnership agreement. We have future-proofed Totalkredit and our joint competitiveness, ensuring that we, with the KundeKroner discount programme, can continue offering Danish homeowners the best and cheapest home loans in most loan scenarios. Early in the year, we raised the KundeKroner discount to 0.25% from 0.20% for new as well as existing customers, making it cheaper once again for more than 900,000 homeowners to have a Totalkredit loan. We will do our utmost to continue investing in Totalkredit and our other important partnerships, collectively presenting the strongest possible front to customers and competing effectively in financial markets.
  
  
• At the beginning of 2025, we launched a public tender offer to buy Spar Nord Bank. By combining our two banks, we aim to build a strong, customer-owned alternative to the largest listed banks in Denmark. Together, we will be firmly positioned for joint growth, prioritising decentralised decision-making and trusting relationships with our customers. We look forward to demonstrating to even more customers all the advantages of banking with a financial provider owned by its customers. Pending the Danish Competition and Consumer Authority's approval of the combination, Nykredit and Spar Nord Bank will continue as two competing companies. We expect the acquisition to be completed in the first six months of 2025, after which we can proceed with the integration.
  
  
• While we generally anticipate growth in our core business in 2025, we do not expect financial results to match our performance in 2024 that was our strongest ever. Results for the year are expected to be affected by increased geopolitical and trade policy tensions coupled with higher volatility in the financial markets. This creates uncertainty about the economic development and the potential impact on Nykredit's operating conditions. We also anticipate falling interest rates, which will lower return on equity.
  
  

Highlights from the Q1 Interim Report 2025:

• Net interest and fee income increased by DKK 54 million in Q1 2025 compared to Q1 2024.
• Totalkredit's mortgage lending increased to DKK 921.8 billion at the end of March 2025 from DKK 879.7 billion at the end of March 2024.
• Nykredit Bank's lending after impairments went up to DKK 108.8 billion at the end of March 2025 from DKK 94.5 billion at the end of March 2024.
• Income from Wealth Management grew to DKK 713 million in Q1 2025 from DKK 668 million in Q1 2024.
• Nykredit maintained a very strong capital position with a Common Equity Tier 1 (CET1) capital ratio of 20.7%.
• Nykredit's cost/income ratio remained relatively low at 30.8% in Q1 2025.

Nykredit Group	Q1	Q1	Change
DKK million	2025	2024
Net interest income	3,039	3,011	28
Net fee income	754	728	26
Wealth management income	713	668	45
Net interest from capitalisation	345	597	-252
Net income relating to customer benefits programmes	(161)	(135)	-26
Trading, investment portfolio and other income	744	1,143	-399
Income	5,434	6,012	-578
Costs	1,671	1,647	24
Profit before impairment charges and legacy derivatives	3,763	4,365	-602
Impairment charges for loans and advances	34	(53)	87
Legacy derivatives	46	52	-6
Profit before tax for the period	3,775	4,470	-695
Tax	775	926	-151
Profit for the period	3,000	3,544	-544

Contact: For further comments, please contact Orhan Gökcen, Head of Press Relations, tel [phone].