Summary:
- Profit before value adjustments and tax came to DKK 146 million for the period, down by DKK 192 million on the same period last year.
- Net interest income came to DKK 250 million for the first half of 2026, which is DKK 118 million lower than for the same period last year.
- Comprehensive income was DKK 262 million for the period compared to DKK -139 million for the same period last year.
- Net lending amounted to DKK 6.4 billion for the first half of 2026 versus DKK 1.3 billion for the same period last year. The value of total loans and leases was up by DKK 7.5 billion to DKK 207.2 billion during the first half of 2026.
- Common Equity Tier 1 (CET1) capital, which corresponds to equity, rose from DKK 10,099 million at end-2025 to DKK 10,361 million.
Since 1899, KommuneKredit has provided funding to municipalities and regions in Denmark by issuing bonds in the capital markets. That funding model was changed on 26 March 2025 and implemented in the Act on KommuneKredit (KommuneKredit-loven) with effect from 15 September 2026. The Danish State buys KommuneKredit's bonds at interest rates corresponding to the State's own funding costs. The new funding model has resulted in lower lending rates and lease payments since 1 April 2025 and, when fully phased in, the model is expected to create annual savings of up to DKK 1 billion for the Danish society, savings that will ultimately benefit Danish citizens and taxpayers.
Interim results impacted by lower interest rate margin
Profit before value adjustments and tax came to DKK 146 million for the first half of 2026 compared to DKK 338 million for the same period last year. The decline mainly reflects lower net interest income and a positive effect on profit of the sale of KommuneKredit's properties at Kultorvet, Copenhagen, in the first half of 2025. The lower interest rate margin has resulted in a reduction of net interest income, which came to DKK 250 million for the first half of 2026 compared to DKK 368 million for the same period last year. At the same time, the recent interest rate margin decline in May has contributed to positive value adjustments of financial instruments of DKK 190 million for the period. As a result, comprehensive income came to DKK 262 million for the period and is transferred to equity in its entirety, resulting in equity of DKK 10,361 million. At 30 June 2026, the equity ratio was 4.2 per cent, which is above the Board of Directors' target of an equity ratio of at least 3 per cent.
High lending activity in the first half of 2026
Net lending, i.e. new loans and leases less repayments and redemptions, amounted to DKK 6.4 billion for the first half of 2026 versus DKK 1.3 billion for the same period last year. Net lending was DKK 0.9 billion ahead of expectations, and at 30 June 2026, the value of total loans and leases was DKK 207.2 billion.
Outlook
With net interest income of DKK 250 million for the first half of 2026, we maintain our expectation of net interest income of DKK 500 million for the full year 2026. As a result of the higher-than-expected net lending in the first half of 2026, we have upgraded our expectation for net lending for the full year 2026 from DKK 5.5 billion to DKK 6.5 billion. The upward adjustment allows for known repayments and expected lower lending activity in the second half of 2026 following the high activity level in the first half of the year. Our expectation for administrative expenses is unchanged at DKK 225 million. Accordingly, we still expect profit for the year before value adjustments and tax to total DKK 275 million.
Contact person:
Jens Lundager, Chief Executive Officer | Phone +45 3369 7622 | E-mail: jlu@kommunekredit.dk
