February 25, 1999
Press release
Den Danske Bank's mortgage finance subsidiary, Danske Kredit Realkreditaktieselskab, realised a pre-tax profit for 1998 of DKr417.4m, against DKr200.6m in 1997. The increase is mainly attributable to a large volume of mortgage refinancing and a substantial increase in lending of DKr14.2bn. The total tax on the profit for the year will be paid by the parent company, Den Danske Bank. The profit for the year is carried forward to next year.
Danske Kredit's net interest and fee income rose from DKr298.4m in 1997 to DKr476.9m.
There was no need to make provisions for bad and doubtful debts.
Total assets increased by DKr14.9bn to DKr69.9bn at the end of 1998.
In 1998, Danske Kredit increased its market share. Based on total outstanding debt on the underlying bonds, the company's market share at the end of the year stood at 5.8%, against 4.6% in 1997.
At the beginning of 1999, Danske Kredit introduced Euro Loans for corporate customers. The new product is expected to increase Danske Kredit's corporate lending.
In 1999, Danske Kredit expects continued growth in lending for residential as well as corporate property and that earnings will continue to show a positive trend. However, the overall result will depend on the trend in interest rates and housing sales.