Confidential
Interim Report January-June 2025
Nordea Kredit Realkreditaktieselskab
Grønjordsvej 10, 2300 Copenhagen S, Denmark
Business registration number 15134275
1
Contents
2
We are part of a universal bank
with a 200-year history of
supporting and growing the
Nordic economies – enabling
dreams and aspirations
for a greater good.
Every day, we work to
support our customers’
financial development,
delivering best-in-class
omnichannel customer
experiences and driving
sustainable change.
The Nordea share is listed
on the Nasdaq Helsinki,
Nasdaq Copenhagen and
Nasdaq Stockholm exchanges.
Read more about us at nordea.com.
3
7
7
8
Statement of changes in equity
9
16
2
Financial summary
Key financial figures (DKKm)
Jan-Jun
2025
Jan-Jun
2024
Change %
Income statement
Total operating income
1,404
1,572
-11
Total operating expenses
-383
-920
-58
Profit before impairment losses on loans and receivables
1,021
652
57
Impairment losses on loans and receivables
-48
-74
-35
Profit before tax
973
578
68
Net profit for the period
720
428
68
30 Jun 2025
31 Dec 2024
Change %
30 Jun 2024
Change %
Balance sheet
Receivables from credit institutions and central banks
35,768
37,894
-6
30,082
19
Loans and receivables at fair value
389,458
391,360
0
384,715
1
Loans and receivables at nominal value
1
411,724
412,940
0
415,044
-1
Debt to credit institutions and central banks
13,670
8,955
53
10,503
30
Bonds in issue at fair value
393,079
400,934
-2
385,431
2
Equity
21,928
22,267
-2
21,616
1
Total assets
433,066
436,886
-1
422,221
3
Ratios and key figures
Jan-Jun
2025
Jan-Jun
2024
Return on equity, %
2
6.5
3.9
Cost/income ratio
27.3
58.5
Write-down ratio, basis points
2
2.5
3.8
Common Equity Tier 1 capital ratio, %
3
20.0
28.8
Tier 1 capital ratio, %
3
20.0
28.8
Total capital ratio, %
3
21.5
31.0
Own funds, DKKm
3
21,768
22,226
Tier 1 capital, DKKm
3
20,216
20,676
Risk exposure amount, DKKm
4
101,094
71,769
Average number of employees (full-time equivalents)
88
98
1
2
3
4
3
Management
’s
report
Nordea Kredit Realkreditaktieselskab is a wholly owned
subsidiary of Nordea Bank Abp.
Throughout this report the term “Nordea Kredit” refers to
Nordea Kredit Realkreditaktieselskab, “Nordea” refers to the
Nordea Bank Abp Group and “Nordea Bank” refers to the
parent company Nordea Bank Abp.
Increased market activity in the first half of
2025
Lending activity in the first half of 2025 increased markedly
compared with relatively slow activity in the period January to
September 2024. New lending for owner-occupied dwellings
and holiday homes was in the first half of 2025 50% above
new lending in the first half of 2024, while new lending for
corporate customers increased by 41% in the same period.
Due to redemptions and principal payments total lending at
nominal value was at the same level as end-2024.
On 2 May Nordea Kredit announced a general reduction of
administration fees by 0.1% point on all new loans for owner-
occupied dwellings and holiday homes regardless of loan type
and loan to value (LTV) to further strengthen the position in an
increasingly competitive market.
LTVs, arrears and loan losses remained at a low level in the
first half of 2025. The credit quality remained solid for both
household and corporate customers in the first half of 2025.
Results summary January-June 2025
Profit before tax increased to DKK 973m (DKK 578m) (the
comparative figures in brackets refer to the first half of 2024
unless otherwise specifically stated) due to lower sales and
distribution service fees.
Operating income
Net interest income decreased by 9% to DKK 1,846m (DKK
2,025m), driven by the lower return on own funds resulting
from the decrease in interest rate levels. Furthermore,
administration margins decreased by DKK 18m due to lower
lending volumes.
Fee and commission income was up by 22% to DKK 185m
(DKK 152m), mainly driven by higher lending activity.
Fee and commission expenses increased by 5% to DKK
626m (DKK 598m), mainly related to higher lending activity
among household customers and higher liquidity support fees
following the use of the liquidity facility.
Staff and administrative expenses
Total staff and administrative expenses decreased by DKK
537m to DKK 383m (DKK 920m), driven by decreased fees
for sales and distribution services provided by Nordea Bank,
mainly due to the yearly update of the transfer pricing
agreement.
Staff costs decreased by DKK 3m to DKK 48m (DKK 51m),
driven by increased outsourcing to Nordea Bank in
combination with efficiency gains, which led to a reduction in
the average number of full-time equivalent employees to 88
(98).
Impairment losses on loans and receivables
Impairment losses on loans and receivables amounted to a
net loan loss of DKK 48m (net loan loss of DKK 74m), mainly
due to lower model-calculated provisions in stage 3.
Overall, the loan portfolio of Nordea Kredit is well diversified
with robust collateral.
The 25% first loss guarantee coverage from Nordea Bank
significantly reduces the risk of impairment losses on loans at
Nordea Kredit. The first loss guarantees covered an
unchanged share of 99% (99% at end-2024) of all loans at
Nordea Kredit.
The write-down ratio of the loan portfolio decreased to 2.5bp
(3.8bp), reflecting lower model-calculated provisions in stage
3 following less negative migration between stages in the first
half of 2025.
Tax
Income tax expense was DKK 253m (DKK 150m), and the
effective tax rate was 26% (26%).
Net profit for the period
Net profit for the period increased to DKK 720m (DKK 428m),
corresponding to a return on equity in the first half of 2025 of
6.5% annually (3.9% annually).
Comments on the balance sheet
Assets
Total assets decreased to DKK 433.1bn (DKK 436.9bn at
end-2024).
Receivables from credit institutions and central banks
decreased to DKK 35.8bn (DKK 37.9bn at end-2024) due to a
decrease in excess liquidity from lending activities.
Loans and receivables at fair value decreased to DKK
389.5bn (DKK 391.4bn at end-2024), mainly due to a
decrease in nominal lending. Lending at nominal value after
loan losses decreased by DKK 1.2bn to DKK 411.7bn (DKK
412.9bn at end-2024) and by DKK 3.3bn compared with 30
June 2024. The decrease was related to owner-occupied
dwellings and agriculture properties, which were down by
DKK 2bn and DKK 0.3bn nominal, respectively. Commercial
properties increased by DKK 1.1bn nominal.
The arrears rate for owner-occupied dwellings and holiday
homes (the 3.5-month arrears rate) for the March 2025
payment date decreased slightly to 0.14% (0.15% at the
December 2024 payment date). The arrears rate for the
sector was 0.13%.
Accumulated loan loss provisions increased by DKK 31m to
DKK 614m (DKK 583m at end-2024), mainly driven by
increased model-calculated provisions. Accumulated loan loss
provisions regarding stages 1, 2 and 3 amounted to DKK
105m (DKK 88m at end-2024), DKK 232m (DKK 221m at
end-2024) and DKK 277m (DKK 275m at end-2024),
respectively.
Assets held temporarily remained at a low level and consisted
of a total of six repossessed properties at the end of June
2025 (four at end-2024) with a carrying amount of DKK 4m
(DKK 1m at end-2024).
4
Debt
Debt to credit institutions and central banks increased by DKK
4.7bn to DKK 13.7bn (DKK 9.0bn at end-2024), mainly due to
increased repurchase agreements with Nordea Bank following
the refinancing auctions in the second quarter of 2025.
Bonds in issue at fair value were down by DKK 7.8bn to DKK
393.1bn (DKK 400.9bn at end-2024) after offsetting the
portfolio of own bonds. The decrease was mainly due to an
increase in the portfolio of own bonds.
Equity
Including net profit for the period, total equity amounted to
DKK 21.9bn at the end of June 2025 compared with DKK
22.3bn at end-2024 and DKK 21.6bn at the end of June 2024.
The property market
The economy
The OECD has lowered its global growth forecast to 2.9% for
both 2025 and 2026, while the World Bank projects growth of
2.3% and 2.4%, respectively. These figures are nearly half a
percentage point lower than anticipated at the start of the
year, reflecting rising trade barriers and heightened
geopolitical uncertainty.
In the Euro area, the OECD forecasts growth of 1.0% in 2025
and 1.2% in 2026, while the World Bank offers more subdued
estimates of 0.7% and 0.8%. These substantial downgrades
reflect a combination of higher US tariffs on imports from the
EU, weaker external demand and heightened uncertainty.
According to the World Bank, these factors are expected to
more than offset the impact of newly legislated fiscal spending
on defence and infrastructure.
Despite the challenging global environment, the Danish
economy remains exceptionally strong. Growth has been
robust since the pandemic, employment has reached record
highs, inflation is under control and both the current account
balance and public finances are among the strongest globally.
Overall, the Danish economy is assessed to be in balance,
with prospects of moderate growth in the coming years.
Interest rates
Interest rate developments in recent years have been
characterised by significant volatility. From spring 2022 to
autumn 2023, central banks across the Western world raised
rates sharply to bring high inflation under control. In the US,
the Federal Reserve lifted its policy rate to 5.5%, while the
European Central Bank (ECB) reached 4.0%.
In the US, the Federal Reserve has now lowered its leading
interest rate to 4.5%. Given the continued high uncertainty
regarding US economic and trade policy, a weakened labour
market and the prospect of higher inflation, we now expect the
Federal Reserve to lower the rate to 4.25%, but then remain
cautious about further easing. However, the uncertainty is
significant.
As inflation has receded markedly, the ECB has now lowered
its rate to 2.0%, a move mirrored by the Danish Central Bank,
which has reduced its rate to 1.6%. At this stage, we do not
expect further rate cuts from the ECB.
Long-term mortgage rates have been remarkably stable over
the past year, while short-term mortgage rates have declined.
At the end of June 2025 the effective rate on 30-year fixed-
rate loans stood at 4.1% compared with 4.3% at the same
time last year. End-June 2025 the F3 and F5 rates were 2.2%
and 2.5%, respectively, down from 3.2% and 3.1% a year
earlier.
We expect both long- and short-term mortgage rates to rise
modestly from current levels over the coming years, though
uncertainty remains considerable. The ECB’s balance sheet
reduction, ongoing since March 2023, combined with
increased public spending in the EU – particularly on defence
and the green transition – may exert upward pressure on
long-term rates. In addition, political uncertainty in both the
US and Europe could drive interest rate markets in either
direction.
Figure 1. Interest rates
Property prices and market activity for owner-occupied
dwellings and holiday homes
The housing market has remained robust over the past year.
In June 2025 prices of single-family homes and owner-
occupied flats were 5.2% and 11.0% higher, respectively,
compared with a year earlier, while prices of holiday homes
increased by 2.1%. The average price per square metre for
transacted properties – including single-family homes, flats
and holiday homes – is at a record high.
Transaction activity has remained strong, and average price
discounts on property sales have stayed relatively low. The
increase in prices is supported by several factors, including a
strong Danish economy, record-high employment, rising real
wages, falling short-term interest rates – particularly
refinancing rates – and reduced property taxes.
We expect housing prices to continue rising moderately
through the remainder of 2025 and into 2026, although
fluctuations in interest rates and global economic uncertainty
are potential risk factors.
Residential rental properties
The market for residential rental properties has low vacancy
rates and a stable yield level. A notable increase in investor
interest was seen in the first half of 2025 compared with the
first half of 2024. The trend in the market is that investors
focus on existing properties in well-established areas
compared to building new properties.
Office properties
The ongoing split in the office market between modern and
well-located properties and older properties or properties with
less good locations continues. High construction costs are
pushing developers to reconsider timeframes, and a decrease
in land area under construction is still seen. Increased focus
on ESG is seen, but both investors and tenants are still
unwilling to pay more. Sustainable features and a strong
preference for flexibility are regarded as the most desirable
attributes, along with public transportation.
5
Warehouses and logistics properties
The vacancy for warehouse and logistics assets is stable at a
low level. Prime assets are still expected to deliver rental
growth, while the rental level for other assets is expected to
be stable. Construction activity is limited due to
macroeconomic headwinds. Demand is expected to increase
with stable or increasing rent levels.
Agricultural properties
The agricultural sector as a whole has had relatively strong
earnings in recent years. Earnings have particularly been
supported by livestock farming with high milk prices and within
pig production especially by high piglet prices. The positive
development for milk producers has continued into 2025,
while piglet prices fluctuated somewhat in the first half of the
year. The lower piglet prices, higher quotations on meat and
lower feed prices have, in turn, improved the earnings for
slaughter pig producers during the same period.
The green tripartite agreement was politically adopted in
2024. The implementation is still underway, and there is
uncertainty about how the requirement for especially
reductions in nitrogen emissions will affect the agricultural
sector. Major changes will be implemented, but significant
amounts have been set aside to compensate the owners, and
the agricultural sector is generally in a financially robust state.
Land prices have been rising in recent years, and this trend
has continued into 2025. The increase is mainly driven by
good earnings in the industry and demand for agricultural land
for infrastructure projects, nature projects, afforestation etc.
Nordea Kredit’s lending
The loan portfolio
At the end of June 2025 total lending at nominal value after
loan losses amounted to DKK 412bn (DKK 413bn at end-
2024).
Lending activity in the first half of 2025 was high compared
with the relatively slow activity in January to September 2024.
The activity was driven by both increased lending for change
of ownership and a higher demand for supplementary lending.
Figure 2. Total loan portfolio by loan type
Fixed-rate loans accounted for 40% of the lending portfolio at
end-June 2025 (end-June 2024: 42%). The share of fixed-rate
loans has been slightly downwards in recent quarters as the
spread between long- and short-term interest rates has
increased.
42% of new lending for household customers was fixed-rate
loans in the first half of 2025. Most customers chose loans
with variable interest rate. The most popular variable-rate loan
type by far was F5 loans chosen by almost every second
borrower followed by F3 loans and Kort Rente.
Floating-rate products are the most popular loan types among
corporate customers, accounting for 47% of new lending in
the first half of 2025.
Interest-only loans in general accounted for an unchanged
share of 54% (54% at end-2024) of the loan portfolio at end-
June 2025.
LTV ratios
The average LTV ratio for total lending at Nordea Kredit was
48% at the end of June 2025 (49% at end-2024). The LTV
ratio is stable and close to the lowest level observed since the
introduction of SDO/SDRO in 2007.
The average LTV ratio for owner-occupied dwellings and
holiday homes decreased by 1% point to 51% in the first half
of 2025 (52% at end-2024). In the same period the average
LTV ratio for rental properties, other commercial properties
and agricultural properties was unchanged at 43% (43% at
end-2024), 42% (42% at end-2024) and 42% (42% at end-
2024), respectively.
Supplementary collateral for loans financed through
covered mortgage bonds
Mortgage institutions issuing loans based on covered
mortgage bonds (SDROs) must provide supplementary
collateral out of their own funds if the statutory LTV limit for
the individual property has been exceeded. The
supplementary collateral required based on the LTV ratios for
the individual loans in capital centre 2 (SDRO bonds) was
DKK 2bn at end-June (DKK 2bn at end-2024).
Funding
Bond issuance
Nordea Kredit adheres to the specific balance principle and
exclusively match-funds its lending by the issuance of bonds.
At the end of June 2025 the total nominal value of bonds
issued to finance mortgage loans, before offsetting the
portfolio of own bonds, was DKK 447bn (DKK 428bn at end-
2024). At end-June 2025 the fair value of the total outstanding
volume of bonds was DKK 393bn (DKK 401bn at end-2024)
after offsetting the portfolio of own bonds.
6
Overall, the market for Danish covered bonds has been
resilient to the geo-political situation.
Issuance in callable bonds has been modest – however,
concentrated in 4% 30-year bonds, which have traded in a
close price range all year. Further, foreign investors have
ceased their continued daily selling of low-coupon callable
bonds. Both factors have been supportive of the sentiment in
this bond segment. Foreign accounts reduced their total
holdings of callable bonds from 27.3% end-June 2024 to
26.5% end-June 2025.
Refinancing auctions in 2025 have had mixed results. The
ARM auctions completed in February ended with fine results,
tightening spread and high bid to cover ratios, whereas the
floater auctions in May generally had lower participation rates
and weaker terms.
Rating
The mortgage bonds issued by Nordea Kredit are rated by the
rating agency Standard & Poor’s. All bonds have been
assigned the highest rating of AAA.
Capital adequacy and solvency
The Tier 1 capital ratio excluding net profit for the period was
20.0% (20.1% at end-2024). The Tier 1 capital ratio
decreased due to an increase in the risk exposure amount
(REA) of DKK 0.1bn to DKK 101.1bn (DKK 101.0bn at end-
2024). The increase in the REA was related to an increase in
operational risk, which was partly offset by a decrease in
credit risk.
The total capital ratio excluding net profit for the period
decreased by 0.1% point to 21.5% (21.6% at end-2024). The
total capital ratio decreased due to the above-mentioned
increase in the REA.
Under Danish legislation Nordea Kredit must publish its
adequate capital base as well as its individual solvency need
on a quarterly basis. Information about individual solvency
needs is available on
www.nordea.com/en/investors/individual-solvency-need.
Debt buffer
The debt buffer requirement was DKK 7.8bn at the end of
June 2025 (DKK 7.8bn at end-2024). The debt buffer
requirement is fulfilled using Tier 1 and Tier 2 capital
instruments not used for capital requirements and by
unsecured senior debt.
Liquidity and funding ratios
The common European Liquidity Coverage Ratio (LCR)
requirement for Nordea Kredit is 100% of net liquidity outflows
over a 30-calendar day stress period, as specified by the
Delegated Act (LCR DA). In addition, Nordea Kredit has an
LCR Pillar 2 add-on, which is a Danish liquidity requirement
applicable to all mortgage institutions and implemented to
capture entity-specific liquidity risk. Nordea Kredit reports both
an LCR DA and an LCR including Pillar 2 add-on. The latter
will always be the most restrictive and thus binding
requirement. At the end of June 2025 the LCR DA was 394%
and the LCR including Pillar 2 add-on was 276%.
The net stable funding ratio (NSFR) measures long-term
liquidity risk. The NSFR requirement for Nordea Kredit is
100% according to the CRR. At 30 June 2025 Nordea Kredit’s
NSFR was 1,188%.
Supervisory diamond
At the end of June 2025 Nordea Kredit complied with the five
benchmarks of the supervisory diamond for mortgage
institutions.
Table 1. The supervisory diamond
1
Annual lending growth.
2
Loans for owner-occupied dwellings and holiday homes and residential rental
properties where the LTV ratio exceeds 75% of the lending limit and the interest
rate is fixed for less than two years are limited to 25%.
3
Interest-only lending for owner-occupied dwellings and holiday homes where
the LTV ratio exceeds 75% of the lending limit is limited to 10%.
4
Yearly/quarterly refinancing is limited to 25%/12.5% of the total portfolio.
5
The 20 largest exposures less CRR deductions are limited to 100% of CET1.
New regulation on capital requirements
On 10 June 2025 the Danish parliament approved the Danish
implementation of Capital Requirement Directive (CRD VI)
and national options in Capital Requirement Regulation (CRR
III) in relation to the transitional arrangements for the output
floor. It includes a lower risk weight for residential real estate
exposure. The majority of the regulation will come into force
on 1 July 2025 or 1 January 2026. The part related to the
transitional arrangements for the output floor will come into
force on 1 July 2025.
On 20 June 2025 the Danish FSA announced that Nordea
Kredit had again been designated as a systemically important
financial institution (SIFI). The score for the assessment has
decreased and Nordea Kredit is included in bucket 1,
previously bucket 2. The SIFI buffer – other systemically
important institutions requirement (O-SII) buffer – will from 31
December 2025 decrease from 1.5% to 1%.
Risks and uncertainties
See Note 7 for information about risks and uncertainties.
7
Income statement
Note
Jan-Jun
2025
Jan-Jun
2024
Full year
2024
DKKm
Interest income
6,204
7,050
13,963
Interest expenses
-4,358
-5,025
-10,010
Net interest income
2
1,846
2,025
3,953
Fee and commission income
185
152
375
Fee and commission expenses
-626
-598
-1,185
Net interest and fee income
1,405
1,579
3,143
Value adjustments
3
-2
-6
-9
Other operating income
0
0
1
Staff and administrative expenses
-383
-920
-1,620
Impairment losses on loans and receivables
4
-48
-74
-86
Profit from equity investment in associated undertaking
1
-1
-1
Profit before tax
973
578
1,428
Tax
-253
-150
-369
Net profit for the period
720
428
1,059
Statement of comprehensive income
Jan-Jun
2025
Jan-Jun
2024
Full year
2024
DKKm
Net profit for the period
720
428
1,059
Other comprehensive income, net of tax
-
-
-
Total comprehensive income
720
428
1,059
8
Balance sheet
Note
30 Jun 2025
30 Dec 2024
30 Jun 2024
DKKm
Assets
Cash in hand and demand deposits with central banks
7,324
7,257
7,144
Receivables from credit institutions and central banks
35,768
37,894
30,082
Loans and receivables at fair value
5
389,458
391,360
384,715
Loans and receivables at amortised cost
0
0
0
Investment in associated undertaking
22
21
21
Tangible assets
-
-
-
Deferred tax assets
5
5
3
Current tax assets
-
-
7
Assets held temporarily
4
1
5
Other assets
465
343
218
Prepaid expenses
18
5
26
Total assets
433,066
436,886
422,221
Debt
Debt to credit institutions and central banks
13,670
8,955
10,503
Bonds in issue at fair value
393,079
400,934
385,431
Current tax liabilities
179
9
-
Other liabilities
2,655
3,171
3,101
Deferred income
5
1
1
Total debt
409,588
413,069
399,036
Subordinated debt
Subordinated debt
1,550
1,550
1,550
Equity
Share capital
1,717
1,717
1,717
Other reserves
22
20
21
Retained earnings
20,189
19,471
19,897
Proposed dividends
-
1,059
-
Total equity
21,928
22,267
21,635
Total equity and debt
433,066
436,886
422,221
Contingent liabilities
Guarantees etc.
0
0
0
Credit commitments
2,584
1,857
1,497
Total contingent liabilities
2,584
1,857
1,497
9
Statement of changes in equity
DKKm
Share capital
1
Other reserves
2
Retained
earnings
Proposed
dividends
Total equity
Balance at 1 Jan 2025
1,717
20
19,471
1,059
22,267
Net profit for the period
-
2
718
-
720
Other comprehensive income, net of tax
-
-
-
-
-
Share-based payments
-
-
0
-
0
Dividends paid
-
-
-
-1,059
-1,059
Balance at 30 Jun 2025
1,717
22
20,189
-
21,928
DKKm
Balance at 1 Jan 2024
1,717
23
19,467
1,149
22,356
Net profit for the year
-
-3
1,062
-
1,059
Other comprehensive income, net of tax
-
-
-
-
-
Share-based payments
-
-
1
-
1
Dividends paid
-
-
-
-1,149
-1,149
Proposed dividends
-
-
-1,059
1,059
-
Balance at 31 Dec 2024
1,717
20
19,471
1,059
22,267
DKKm
Balance at 1 Jan 2024
1,717
23
19,467
1,149
22,356
Net profit for the period
-
-2
430
-
428
Other comprehensive income, net of tax
-
-
-
-
-
Share-based payments
-
-
0
-
0
Dividends paid
-
-
-
-1,149
-1,149
Balance at 30 Jun 2024
1,717
21
19,897
-
21,635
1
2
10
Glossary
The following definitions apply for ratios and key
figures.
Common Equity Tier 1 capital ratio
Common Equity Tier 1 capital ratio is calculated as Common
Equity Tier 1 capital as a percentage of risk exposure amount.
Cost/income ratio
Total operating expenses divided by total operating income.
Lending growth
The change in loans and receivables at nominal value during
the period divided by loans and receivables at nominal value
beginning of the period.
Leverage ratio
The leverage ratio is the institution’s capital as Tier 1 capital
net after deductions divided by that institution’s total leverage
ratio exposure and expressed as a percentage.
Loans/equity ratio
Loans and receivables at fair value divided by equity end of
the period.
Operating income
Total of net interest and fee income, value adjustments, other
operating income and profit from equity investment in
associated undertaking.
Operating expenses
Total of staff and administrative expenses and depreciation.
Own funds
Own funds include the sum of the Tier 1 capital and the
supplementary capital consisting of subordinated loans, after
deduction of the potential deduction for expected shortfall and
other items.
Return on equity
Net profit for the period as a percentage of average equity for
the period. Average equity includes net profit for the period
and dividend until paid.
Risk exposure amount (REA)
Total assets and off-balance sheet items valued on the basis
of the credit and market risks as well as operational risks in
accordance with regulations governing capital adequacy,
excluding carrying amount of shares which have been
deducted from the capital base and intangible assets.
Tier 1 capital
The Tier 1 capital of an institution consists of the sum of its
Common Equity Tier 1 capital and additional Tier 1 capital.
Common Equity Tier 1 capital includes shareholders’ equity
excluding proposed dividend, deferred tax assets and the full
expected shortfall deduction (the negative difference between
expected losses and provisions).
Tier 1 capital ratio
Tier 1 capital as a percentage of the risk exposure amount.
Total capital ratio
Own funds as a percentage of the risk exposure amount.
Write-down ratio
Impairment losses on loans and receivables during the period
as a percentage of the closing balance of loans and
receivables before impairment losses on loans and
receivables.
11
Note 1
Basis for presentation
The interim report of Nordea Kredit is prepared in accordance with the requirements of the law, including the Danish Financial
Business Act and the Danish Financial Supervisory Authority’s Executive Order on Financial Reports for Credit Institutions and
Investment Firms etc.
The accounting policies and methods of computation are the same as for the annual report for 2024. For more information see
Note 1 in the annual report for 2024.
All figures are rounded to the nearest million Danish kroner (DKK) unless otherwise specified. The totals stated are calculated
on the basis of actual figures prior to rounding. Therefore the sum of individual figures and the stated totals may differ slightly.
Figures rounded to zero are reported as 0. If a figure is zero, it is reported as “-”.
The financial statements have not been reviewed or audited.
Note 2
Net interest income
DKKm
Jan-Jun
2025
Jan-Jun
2024
Full year
2024
Interest income
Receivables from credit institutions and central banks
391
586
1,129
Loans and receivables at fair value
4,182
4,815
9,565
Administration margins
1,627
1,645
3,261
Other interest income
4
4
8
Total interest income
6,204
7,050
13,963
Interest expenses
Debt to credit institutions and central banks
-150
-160
-331
Bonds in issue at fair value
-4,172
-4,816
-9,584
Subordinated debt
-35
-49
-95
Total interest expenses
-4,358
-5,025
-10,010
Net interest income
1,846
2,025
3,953
Note 3
Value adjustments
DKKm
Jan-Jun
2025
Jan-Jun
2024
Full year
2024
Mortgage loans
670
1,362
11,489
Bonds
0
-
0
Foreign exchange gains/losses
0
0
0
Interest rate derivatives
-6
-4
-4
Bonds in issue
1
-666
-1,364
-11,494
Total
-2
-6
-9
1
12
Note 4
Impairment losses on loans and receivables
DKKm
Jan-Jun
2025
Jan-Jun
2024
Full year
2024
Stage 1
New and increased impairment charges
-17
-17
-22
Reversals of impairment charges
0
2
6
Impairment losses on loans and receivables, non-credit impaired
-17
-15
-16
Stage 2
New and increased impairment charges
-27
-85
-87
Reversals of impairment charges
16
86
93
Impairment losses on loans and receivables, non-credit impaired
-11
1
6
Stage 3, credit impaired
Realised loan losses
-23
-14
-23
Decrease in impairment charges to cover realised loan losses
17
12
19
Recoveries on previous realised loan losses
1
1
2
New and increased impairment charges
-70
-73
-173
Reversals of impairment charges
54
15
97
Impairment losses on loans and receivables, credit impaired
-20
-60
-77
Impairment losses on loans and receivables
-48
-74
-86
Note 5
Loans and receivables at fair value
DKKm
30 Jun 2025
30 Dec 2024
30 Jun 2024
Mortgage loans, nominal value
Value at beginning of period
413,523
421,553
421,553
New loans (gross new lending)
27,929
46,468
19,071
Foreign exchange revaluations
0
2
2
Redemptions and prepayments
-24,398
-45,431
-20,695
Net new lending for the period
3,531
1,038
-1,623
Scheduled principal payments
-4,716
-9,068
-4,304
Mortgage loan portfolio at end of period
412,338
413,523
415,626
Mortgage loans, fair value
Nominal value
412,338
413,523
415,626
Adjustment for interest rate risk etc.
-22,383
-21,708
-30,430
Adjustment for credit risk (see below)
-614
-583
-581
Mortgage loan portfolio
389,342
391,232
384,614
Mortgage arrears
117
128
101
Loans and receivables at fair value
389,458
391,360
384,715
Movements of allowance account for credit risk value changes
DKKm
Stage 1
1, 2
Stage 2
2
Stage 3
2
Total
Balance at 1 January 2025
88
221
275
583
Transfer between stages
0
8
1
10
Changes due to changes in credit risk (net)
17
6
31
54
Changes due to repayments
-
-4
-16
-20
Write-off through decrease in allowance account
-
-
-14
-14
Balance at 30 June 2024
105
232
277
614
DKKm
Stage 1
1, 2
Stage 2
2
Stage 3
2
Total
Balance at 1 January 2024
72
227
223
522
Transfer between stages
0
-15
31
16
Changes due to changes in credit risk (net)
42
123
118
284
Changes due to repayments
-27
-114
-79
-220
Write-off through decrease in allowance account
-
-
-19
-19
Balance at 31 December 2024
88
221
275
583
DKKm
Stage 1
1
Stage 2
Stage 3
Total
Balance at 1 January 2024
72
227
223
522
Transfer between stages
0
8
17
25
Changes due to changes in credit risk (net)
35
99
45
179
Changes due to repayments
-20
-108
-5
-133
Write-off through decrease in allowance account
-
-
-12
-12
Balance at 30 June 2024
87
226
268
581
1
2
13
Note 5
Forward-looking information
Forward-looking information is used for both assessing significant increases in credit risk and calculating expected credit losses.
Nordea Kredit uses three macroeconomic scenarios: a baseline scenario, a favourable scenario and an adverse scenario. In the
first half of 2025 Nordea responded to the potentially worsening macroeconomic outlook resulting from escalated trade tensions
by applying a 100% weighting to the adverse scenario (baseline 60%, adverse 20% and favourable 20% at the end 2024).
The macroeconomic scenarios are based on the Oxford Economics Model. The forecast is a combination of modelling and
expert judgement, subject to thorough checks and quality control processes. The model has been built to give a good
description of the historical relationships between economic variables and to capture the key linkages between those variables.
The forecast period in the model is ten years. For periods beyond, a long-term average is used in the ECL calculations.
The macroeconomic scenarios reflect Nordea’s view of how the Nordic economies might develop in light of continued
geopolitical uncertainty, trade conflicts and weak growth in major European economies. When developing the scenarios and
determining the relative weighting between them, Nordea took into account projections made by the central bank and Nordea
Research.
The baseline scenario is influenced by continued uncertainty over US trade policy, which has dampened the growth outlook for
the Danish economy. Denmark will see relatively high growth in 2025, driven by the pharmaceutical sector and the reopening of
North Sea oil and gas fields. Unemployment will be largely stable in the coming years. A modest recovery in home prices is
expected to continue in the coming years, supported by rising household purchasing power. The risks around the baseline
forecast are tilted to the downside, with the upside scenario deviating less from the baseline than the adverse.
Nordea’s two alternative macroeconomic scenarios cover a range of plausible risk factors which may cause growth to deviate
from the baseline scenario. An escalation of the trade conflict between the US and several countries could trigger a European
and Danish recession as firms postpone investments, exports slow down and households cut spending due to weakening labour
markets. Central banks may in addition regard the inflationary impulse from higher tariffs as temporary and continue cutting
interest rates, with rates moving lower than in the baseline scenario. Lower tariffs and an unwinding of trade policy uncertainty,
on the other hand, may lead to a stronger recovery than assumed in the baseline scenario.
The model adjustments to model-based provisions amounted to DKK 306m (DKK 311m) at the end of the first half of 2025. The
management judgement covers expected credit losses not yet adequately captured by the impairment model in stages 1, 2 and
3 as well as expected losses on loans in stage 1 covering rating migration not yet identified in the rating and expected losses on
loans to agricultural customers.
Scenarios
2025
2026
2027
Probability weight
Favourable scenario
GDP growth, %
3.6%
2.3%
2.0%
0%
Unemployment, %
2.9%
3.0%
3.0%
Change in household consumption, %
1.4%
1.8%
2.2%
Change in house prices, %
4.6%
4.2%
3.2%
Baseline scenario
GDP growth, %
2.9%
1.2%
1.9%
0%
Unemployment, %
3.1%
3.4%
3.5%
Change in household consumption, %
1.3%
1.4%
2.0%
Change in house prices, %
3.5%
3.2%
3.2%
Adverse scenario
GDP growth, %
1.6%
-0.4%
1.4%
100%
Unemployment, %
3.7%
4.6%
4.7%
Change in household consumption, %
0.9%
0.4%
1.5%
Change in house prices, %
-0.4%
-3.4%
2.8%
14
Note 6
Capital adequacy
Summary of items included in own funds
DKKm
30 June 2025
1
31 Dec 2024
30 Jun 2024
1
Calculation of own funds
Equity
21,208
22,267
21,207
Proposed/actual dividend
-
-1,059
-
Common Equity Tier 1 capital before regulatory adjustments
21,208
21,208
21,207
IRB provisions shortfall (-)
-957
-924
-278
Other items, net
-34
-32
-254
Total regulatory adjustments to Common Equity Tier 1 capital
-991
-956
-531
Common Equity Tier 1 capital (net after deduction)
20,216
20,252
20,676
Tier 1 capital (net after deduction)
20,216
20,252
20,676
Tier 2 capital before regulatory adjustments
1,551
1,550
1,550
Tier 2 capital
1,551
1,550
1,550
Own funds (net after deduction)
21,768
21,802
22,226
1
Minimum capital requirement and risk exposure amount (REA)
30 Jun
30 Jun
31 Dec
31 Dec
30 Jun
30 Jun
2025
2025
2024
2024
2024
2024
DKKm
Minimum
capital
requirement
Minimum
capital
requirement
Minimum
capital
requirement
Credit risk
7,422
92,778
7,704
96,306
5,367
67,084
26
328
50
628
56
701
IRB
6,490
81,119
6,591
82,382
4,844
60,556
- corporate
1,808
22,604
1,818
22,720
1,810
22,622
1,621
20,265
1,818
22,720
1,810
22,622
187
2,339
-
-
-
-
- retail
4,652
58,150
4,741
59,259
3,006
37,576
4,586
57,319
4,686
58,571
2,977
37,209
66
831
55
688
29
367
- other
29
365
32
402
29
358
Standardised
933
11,659
1,114
13,924
522
6,528
- central governments or central banks
1
13
1
13
1
6
- institutions
924
11,553
1,106
13,825
515
6,434
- corporate
1
10
0
0
-
-
- secured by mortgages on immovable properties
5
60
5
65
5
67
- equity
2
22
2
21
2
21
Operational risk
613
7,668
373
4,658
373
4,658
Standardised
613
7,668
373
4,658
373
4,658
Additional risk exposure amount related to Swedish RW
floor due to Article 458 CRR
-
-
-
-
2
27
Additional risk exposure amount due to Article 3 of the CRR
52
647
-
-
-
-
Total
1
8,087
101,094
8,077
100,964
5,741
71,769
1
15
Note 6
Capital adequacy, continued
30 Jun
31 Dec
30 Jun
Capital ratios (%)
2025
2024
2024
Common Equity Tier 1 capital ratio
20.0
20.1
28.8
Tier 1 capital ratio
20.0
20.1
28.8
Total capital ratio
21.5
21.6
31.0
30 Jun
31 Dec
30 Jun
Leverage ratio
1
2025
2024
2024
Tier 1 capital, DKKm
20,216
20,252
20,676
Leverage ratio exposure, DKKm
436,869
436,789
422,335
Leverage ratio, %
4.6
4.6
4.9
1
Note 7
Nordea Kredit’s main risk exposure is credit risk. Nordea Kredit only assumes limited market risks, liquidity risks and
operational risks.
See the risk and liquidity management note in the annual report for 2024 for further information on Nordea Kredit’s
management of risks.
There are significant risks related to the macroeconomic environment due to the ongoing geopolitical developments and
trade tensions. Reduced consumer spending and lower activity may particularly impact small and medium-sized
enterprises in certain industries. Depending on future developments, there may be increased credit risk in Nordea Kredit’s
portfolio. Furthermore, potential adverse impacts on income could arise due to financial market volatility and reduced
activity impacting transaction volumes and customer activity. Potential future credit risks are addressed in Note 5. In
addition, Nordea Kredit recognises an increase in the risk of hybrid warfare impacting its operations as a consequence of
the geopolitical situation.
Nordea Kredit is not involved in legal proceedings or disputes which are considered likely to have any significant adverse
effect on Nordea Kredit or its financial position.
Note 8
The Danish Financial Supervisory Authority's ratio system
Jan-Jun
2025
Jan-Jun
2024
Full year
2024
Total capital ratio
21.5
31.0
21.6
Tier 1 capital ratio
20.0
28.8
20.1
Pre-tax return on equity, %
4.4
2.6
6.4
Post-tax return on equity, %
3.3
1.9
4.7
Income/cost ratio
3.3
1.6
1.8
Foreign exchange exposure as % of Tier 1 capital
1.2
1.0
1.1
Loans/equity ratio
17.8
17.8
17.6
Lending growth for the period, %
-0.3
-1.4
-1.9
Impairment ratio for the period
0.0
0.0
0.0
Return on assets, %
0.2
0.1
0.2
The key figures have been computed in accordance with the Danish Financial Supervisory Authority’s definitions, see the
Executive Order on Financial Reports for Credit Institutions and Investment Firms etc.
16
Statement by the Board of Directors and the
Executive Management
The Board of Directors and the Executive Management have considered and adopted the interim report of Nordea Kredit
Realkreditaktieselskab for the half-year ending 30 June 2025.
The interim report has been prepared in accordance with the requirements of the law, including the Danish Financial
Business Act and the Danish Financial Supervisory Authority’s Executive Order on Financial Reports for Credit Institutions
and Investment Firms etc.
It is our opinion that the financial statements give a true and fair view of the company’s financial position at 30 June 2025
and of the results of the company’s operations for the half-year ending 30 June 2025.
Further, in our opinion, the Management’s report provides a fair review of the development in the company’s operations and
financial matters, the results of the company’s operations and financial position and describes the material risks and
uncertainties affecting the company.
Copenhagen, 29 August 2025
Board of Directors
Anders Holkmann Olsen Anne Rømer Anita Ina Nielsen
(Chair) (Vice Chair)
Anders Frank-Læssøe Helene Bløcher Tina Helen Sandvik
Christian Ulrik Johannesen
Executive Management
Morten Boni Kasper Lykke Møller Ingemann
(Chief Executive Officer) (Deputy Chief Executive Officer)