Company announcement number 35/2026 30 April 2026
Company announcement for the first quarter of 2026
Kamilla Hammerich Skytte, CEO, comments on the first quarter of 2026:
"Realkredit Danmark has started 2026 with growth in nominal lending and a high level of activity that reflects continued solid momentum in the Danish housing market supported by rising house prices and our customers' robust economic condition. In the commercial property market Realkredit Danmark saw a high level of activity, characterised in particular by interest from both Danish and international investors in investing in residential rental properties. Corporate lending activity was also high in the first quarter of 2026, with increasing demand for renewable energy and utilities financing.
The credit quality of the loan portfolio continued to be strong, with a low average loan-to-value ratio (LTV) of 48% and no signs of broader imbalances. The ongoing decrease in the already low LTV further demonstrates the strong credit quality of the portfolio. Despite the geopolitical and economic uncertainty, the Danish housing market is supported by high employment levels and a positive trend in household incomes.
House prices continued to rise in the first quarter, especially for owner-occupied flats in Copenhagen, where the housing burden is above the historical average. We expect the rise in prices to slow down over the course of 2026 - especially in Copenhagen - while the overall outlook for the housing market will remain stable.
Realkredit Danmark continues to focus on providing high-quality advice to support customers in realising their home ownership dreams, help them plan their finances responsibly and achieve a better balance between home equity, available funds and pension savings in both the short and the long term. This is supported by competitive pricing and a strong focus on risk management.
Together with Danske Bank, we carried out a number of initiatives during the quarter to strengthen our overall value proposition for both new and existing home finance customers. These include further reductions of the administration margin on new fixed-rate mortgages, improved terms for first-time buyers through Danske BoligStart and a significantly shorter response time for pre-approvals via Hurtigt BoligSvar. We have simplified credit processes and made them more flexible, allowing the individual customer's financial position to be taken into consideration to a greater extent in lending decisions. In addition, Realkredit Danmark and Danske Bank have entered into a new partnership with NRGi, which will make it easier for customers to assess and realise financially sustainable energy efficiency improvements.
The commercial and investment property market remained stable in the first quarter of 2026, supported by high and rising employment and good retail activity. However, investor concerns about increased inflation and rising interest rates have grown and may affect the market in the slightly longer term. Despite considerable global turbulence, we continue to expect profit before loan impairment charges for the full year 2026 to be in line with 2025.
Overall, the Danish mortgage market is currently strong with a robust system that continues to serve homeowners well. However, sustained competition and ongoing product innovation remain essential to ensuring fair pricing, greater choice and the continued development of financial solutions that benefit consumers over the long term."
First quarter of 2026
Realkredit Danmark's net profit for the first quarter was DKK 1,188 million (Q1 2025: DKK 1,249 million). The decrease was attributable partly to a decline in administration margin income and a lower net reversal of loan impairment charges.
Total income fell to DKK 1,767 million in the first quarter of 2026 (Q1 2025: DKK 1,821 million), due to lower administration margin income, value adjustments on investment portfolios as well as lower interest income.
Expenses amounted to DKK 214 million (Q1 2025: DKK 223 million), reflecting our ongoing focus on operating efficiency and cost control.
Credit quality remained strong, and loan impairment charges amounted to a net reversal of DKK 51 million in the first quarter of 2026 (Q1 2025: net reversal of DKK 89 million). Loan impairment charges benefitted from a decrease in post-model adjustments of DKK 50 million. At 31 March 2026, the total allowance account amounted to DKK 2,442 million (end-2025: DKK 2,621 million).
Mortgage lending at nominal value increased DKK 1.9 billion in the first quarter of 2026. Gross lending amounted to DKK 34.4 billion (Q1 2025: DKK 27.1 billion).
Total green bond lending amounted to DKK 34.3 billion at 31 March 2026 and consolidated Realkredit Danmark's position as the largest issuer of green loans in Denmark.
Realkredit Danmark expects net profit in 2026 within the range of DKK 4.2-4.7 billion.
Mortgage market
The Danish economy remains in good shape, supported by a high employment level and a low unemployment rate. Overall economic activity is robust, and household incomes are solid, providing a good basis for the housing market.
Developments in the housing market continue to be positive, with high activity and rising prices across the country. Demand for owner-occupied homes is underpinned by a strong labour market and healthy household balance sheets.
However, uncertainty has increased in step with the escalation of the conflict in the Middle East. Higher energy prices put pressure on household purchasing power and increase the downside risks to growth and to the housing and property market. The higher energy prices also push the inflation risk upwards, and the financial markets therefore factor in rate hikes in the euro zone that will influence Danish monetary policy.
As a result, mortgage rates have increased for both short and long maturities. The higher funding costs may dampen demand in future, especially if the uncertainty and price pressures continue.
The market for investment and commercial property has carried the positive trends into 2026. The market for residential rental property continues to be supported by low gross unemployment and a decline in new housing completions, which keeps vacancy rates low, albeit with significant geographical variance. In the market for office space, vacancy rates have generally stabilised, supported by limited supply in Copenhagen, while the market in Aarhus continues to be under more pressure from a high number of new construction completions. The retail segment is supported by solid growth in retail sales, although there are no expectations of any expansion of shopping streets.
Contact: Nordic Head of Media Relations Stefan Kailay Wind
Phone +45 45 14 14 00
Financial highlights - Realkredit Danmark Group
Income statement
| Q1 | Q1 | Index | Q1 | Q4 | Q3 | Q2 | Q1 | Full year | |
| (DKK millions) | 2026 | 2025 | 26/25 | 2026 | 2025 | 2025 | 2025 | 2025 | 2025 |
| Administration margin | 1,365 | 1,408 | 97 | 1,365 | 1,384 | 1,395 | 1,401 | 1,408 | 5,588 |
| Net interest income | 326 | 362 | 90 | 326 | 324 | 299 | 296 | 362 | 1,281 |
| Net fee income | 72 | 11 | 655 | 72 | 87 | -68 | -39 | 11 | -9 |
| Income from investment portfolios | -23 | 13 | - | -23 | 60 | 46 | 98 | 13 | 217 |
| Other income | 27 | 27 | 100 | 27 | 24 | 28 | 29 | 27 | 108 |
| Total income | 1,767 | 1,821 | 97 | 1,767 | 1,879 | 1,700 | 1,785 | 1,821 | 7,185 |
| Expenses | 214 | 223 | 96 | 214 | 261 | 212 | 202 | 223 | 898 |
| Profit before loan impairment charges | 1,553 | 1,598 | 97 | 1,553 | 1,618 | 1,488 | 1,583 | 1,598 | 6,287 |
| Loan impairment charges | -51 | -89 | 57 | -51 | -52 | -77 | -40 | -89 | -258 |
| Profit before tax | 1,604 | 1,687 | 95 | 1,604 | 1,670 | 1,565 | 1,623 | 1,687 | 6,545 |
| Tax | 416 | 438 | 95 | 416 | 435 | 407 | 417 | 438 | 1,697 |
| Net profit for the period | 1,188 | 1,249 | 95 | 1,188 | 1,235 | 1,158 | 1,206 | 1,249 | 4,848 |
Balance sheet (end of period)
| Q1 | Q1 | Index | Q1 | Q4 | Q3 | Q2 | Q1 | Full year | |
| (DKK millions) | 2026 | 2025 | 26/25 | 2026 | 2025 | 2025 | 2025 | 2025 | 2025 |
| Due from credit institutions etc. | 20,337 | 18,213 | 112 | 20,337 | 22,978 | 12,874 | 8,175 | 18,213 | 22,978 |
| Mortgage loans | 734,395 | 750,221 | 98 | 734,395 | 740,491 | 749,914 | 751,620 | 750,221 | 740,491 |
| Bonds and shares | 50,506 | 54,745 | 92 | 50,506 | 51,181 | 52,695 | 52,462 | 54,745 | 51,181 |
| Other assets | 3,002 | 2,472 | 121 | 3,002 | 1,914 | 968 | 2,223 | 2,472 | 1,914 |
| Total assets | 808,240 | 825,651 | 98 | 808,240 | 816,564 | 816,451 | 814,480 | 825,651 | 816,564 |
| Due to credit institutions etc. | 3,500 | 3,500 | 100 | 3,500 | 3,500 | 3,500 | 3,500 | 3,500 | 3,500 |
| Issued mortgage bonds | 747,599 | 764,758 | 98 | 747,599 | 751,752 | 753,492 | 753,234 | 764,758 | 751,752 |
| Other liabilities | 5,703 | 5,898 | 97 | 5,703 | 6,216 | 5,598 | 5,044 | 5,898 | 6,216 |
| Total equity | 51,438 | 51,495 | 100 | 51,438 | 55,096 | 53,861 | 52,702 | 51,495 | 55,096 |
| Total liabilities and equity | 808,240 | 825,651 | 98 | 808,240 | 816,564 | 816,451 | 814,480 | 825,651 | 816,564 |
Ratios and key figures
| Net profit for the period as % p.a. | |||||||||
| of average total equity | 8.9 | 9.4 | 8.9 | 9.1 | 8.7 | 9.3 | 9.4 | 9.1 | |
| Impairment charges as % p.a. | |||||||||
| of mortgage lending | -0.03 | -0.05 | -0.03 | -0.01 | -0.04 | -0.02 | -0.05 | -0.03 | |
| Cost/income ratio (%) | 12.1 | 12.2 | 12.1 | 13.9 | 12.5 | 11.3 | 12.2 | 12.5 | |
| Total capital ratio (%) | 30.3 | 28.8 | 30.3 | 29.7 | 28.8 | 28.9 | 28.8 | 29.7 | |
| Tier 1 capital ratio (%) | 30.3 | 28.8 | 30.3 | 29.7 | 28.8 | 28.9 | 28.8 | 29.7 | |
| Mortgage loans, nominal value | 785,493 | 795,641 | 785,493 | 783,613 | 791,117 | 793,969 | 795,641 | 783,613 | |
| Full-time-equivalent staff (end of period) | 240 | 230 | 240 | 240 | 235 | 236 | 230 | 240 |
The company announcement for the first quarter of 2026 is not presented in accordance with IAS 34, Interim Financial Reporting, as adopted by the EU, and additional Danish disclosure requirements for interim reports of issuers of listed bonds.
