Nykredit has announcesd its Interim Reports for the first half of 2020. The company says that the financial results for the firts half of 2020 were satisfactory compared to the circumstances.
Its customers have channelized the sales in the corona crisis and posted a continued customer and lending growth at the Nykredit Bank and Totalkredit. Nykredit Group shared over 90% in total growth by market in the field of residential mortgage lending. A increasing number of business customers helped the company in the expansion of its market position in bank lending.
Chief Executive of Nykredit Group, Michael Rasmussen said, “In Nykredit we believe that the Danish housing market and economy will be weathering the corona crisis much more successfully than indicated just a few months ago. However, the corona crisis is far from over. We have been reminded recently that Denmark could see a resurgence of the virus. At the same time, several Danish export markets are under pressure, and we have yet to see the effects when the government’s relief packages end. Should the economy, contrary to expectations, take a turn for the worse, we will again be ready to support our customers.”
The Group posted the business profit of DKK 1,875 million and profit before tax of DKK 1,770 million for the first half of 2020. These are satisfactory in the circumstances waged by COVID-19 pandemic and baffled the expectations but remained low as compared to last year due, after the hit by covid-19 crisis. Totalkredit’s saw an increase by 10% in lending at nominal value since 30 June 2019 to DKK 769.5 billion. Nykredit Bank’s lending climbed 5% since 30 June 2019 to DKK 73.9 billion.
The company raised its guidance for business profit and profit before tax for full year 2020 on August 11th, 2020. It raised the guidance from DKK 2.5-3.5 billion to DKK 4.0-5.0 billion. Its earnings guidance raised following the recovery in financial markets after large fluctuations in first quarter of 2020 and the bettered economic outlook along with positive trends in on-going businesses.