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Nykredit Realkredit A/S upgrades full-year guidance
Nykredit raises its forecast for 2022 and now expects profit before tax for 2022 of about DKK 11.5 billion and business profit of about DKK 10.5 billion. Previous guidance for profit before tax was DKK 9.5-10.0 billion.
Our earnings upgrade is mainly attributable to higher-than-expected investment portfolio income in Q4 due to the development in financial market. Moreover, the underlying business also performed more positively than expected.
The year as a whole was characterised by growth across the board and increased income from the underlying business thanks to continued customer growth and high activity for example. Full-year results were also driven by a strong credit quality, which has resulted in low loan impairments, and a favourable development in derivatives.
Michael Rasmussen, Group Chief Executive, says:
– It is now clear to us that results for 2022 will not only exceed our expectations, but that Nykredit will deliver its best financial performance ever. Obviously, this is highly satisfactory.
– We are proud to get the opportunity to demonstrate to our customers the benefits of our unique mutual ownership structure, allowing us to share our success with customers of Totalkredit and Nykredit Bank. However, we do not necessarily expect the same high activity level and results next year due to the macroeconomic outlook and mounting uncertainty.
– These are highly unusual times of significant economic turmoil and general uncertainty all around the world. For this reason I am very satisfied that Nykredit, also in times like these, remains well placed to support our customers and to promote development and growth all over Denmark at all times.
Nykredit Bank expects a profit before tax for 2022 of about DKK 3.5 billion. Previous guidance for profit before tax was DKK 2.8-3.3 billion.
Totalkredit expects a profit before tax for 2022 of about DKK 3.1 billion compared with previous guidance of DKK 2.5-3.0 billion.
The Nykredit Group will publish its Annual Report 2021 on 8 February 2023, as scheduled. At this time, Nykredit’s Management will be available for further comments.
Questions may be addressed to Press Relations, tel +45 27 58 95 88.