1
Contents
2
Management’s report
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.
Modest lending activity in 2024
3
Financial review 2024
3
Capital adequacy
4
Debt buffer
4
Individual solvency needs
4
The property market
4
Nordea Kredit’s lending
5
Funding
6
Risk and capital management
6
Supervisory diamond
7
New capital regulation
7
Reporting on internal control and risk
management regarding financial reporting
7
Preventing financial crime
8
Sustainability
8
Environmental, social and corporate
governance (ESG)
8
Data ethics policy
8
Changes to the Board of Directors
9
Changes to the Executive Management
9
Balanced gender composition
9
Subsequent events
9
Outlook for 2025
9
Financial statements
Financial statements – contents
10
Income statement
11
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
5-year overview
14
Statement and report
Directorships
Management
46
2
Financial summary
Key financial figures (DKKm)
2024
2023
Change %
2022
2021
Income statement
Total operating income
3,134
3,240
-3
2,828
2,704
Total operating expenses
-1,620
-1,685
-4
-1,424
-1,367
Profit before impairment losses on loans and receivables
1,514
1,554
-3
1,404
1,338
Impairment losses on loans and receivables
-86
-19
353
-27
82
Profit before tax
1,428
1,535
-7
1,377
1,419
Net profit for the year
1,059
1,149
-8
1,075
1,107
Balance sheet
Receivables from credit institutions and central banks
37,894
31,998
18
39,264
48,523
Loan and receivables at fair value
391,360
390,669
0
385,887
432,280
Loans and receivables at nominal value
1
412,940
421,030
-2
433,757
436,116
Debt to credit institutions and central banks
8,955
8,117
10
9,503
14,260
Bonds in issue at fair value
400,934
394,356
2
389,737
441,234
Equity
22,267
22,356
0
22,280
22,311
Total assets
436,886
429,937
2
425,506
481,015
Ratios and key figures
2024
2023
2022
2021
Return on equity, %
4.7
5.1
4.8
4.9
Cost/income ratio
51.7
52.0
50.4
50.5
Write-down ratio, basis points
2.2
0.5
0.7
-1.9
Common equity tier 1 capital ratio
2
20.1
28.5
28.4
24.7
Tier 1 capital ratio
2
20.1
28.5
28.4
24.7
Total capital ratio
2
21.6
30.7
30.5
26.6
Own funds, DKKm
21,802
22,206
22,178
22,076
Tier 1 capital, DKKm
20,252
20,654
20,628
20,526
Risk exposure amount, DKKm
3
100,964
72,419
72,751
83,099
Average number of employees (full-time equivalents)
95
108
116
118
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2
3
3
Management
’s
report
Nordea Kredit Realkreditaktieselskab is a wholly owned
subsidiary of Nordea Bank Abp. Nordea Kredit
Realkreditaktieselskab is domiciled in Copenhagen and its
business registration number is 15134275.
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. The figures in brackets
refer to 2023.
Modest lending activity in 2024
Overall lending activity for change of ownership, remortgaging
and top-up loans showed a continued modest level in 2024.
However, as interest rates moved downwards in the second
half of the year, activity picked up – especially in the fourth
quarter which accounted for almost 38% of gross lending in
2024.
Total lending at nominal value was DKK 413bn (DKK 421bn)
at end-2024. The slowly decreasing portfolio in the first three
quarters of the year was mainly a result of the modest lending
activity for change of ownership and top-up lending for
household customers. In the fourth quarter lending volumes
increased slightly.
The loan to value (LTV) ratio for owner-occupied dwellings
and holiday homes was 52% (52%) while the average LTV
ratio for all property types was also unchanged at 49% (49%)
by end-2024. The continued historically low average LTVs
were supported by an overall positive trend in house prices.
Arrears increased slightly through the year but were still at a
very low level by end-2024.
By end-2024 Nordea Kredit’s lending book was still solid.
Financial review 2024
Profit before tax amounted to DKK 1,428m (DKK 1,535m).
Profit before tax was in line with expectations.
Operating income
Net interest income decreased by 2% to DKK 3,953m (DKK
4,043m). Administration margins decreased to DKK 3,261m
(DKK 3,412m) following lower lending volumes and average
margins, driven by lower LTV ratios for the loans
remortgaged.
Fee and commission income was down by 11% to DKK 375m
(DKK 420m), mainly driven by lower lending activity for
household and agricultural customers.
Fee and commission expenses decreased to DKK 1,185m
(DKK 1,194m) mainly related to lower lending activity.
Staff and administrative expenses
Total staff and administrative expenses decreased by 4% to
DKK 1,620m (DKK 1,685m) mainly due to lower fees for sales
and distribution services provided by Nordea Bank and a
lower resolution fee.
Staff costs decreased by 9% to DKK 102m (DKK 112m) as
general salary increases were more than offset by a lower
average number of full-time equivalent employees of 95 (108)
mostly driven by increased outsourcing to Nordea Bank e.g.
outsourcing of legal services and selected loan offer
production tasks to harvest synergies and increase
operational stability.
Impairment losses on loans and receivables
Impairment losses on loans and receivables increased to DKK
86m (DKK 19m) mainly following increased model and
individually calculated provisions in stage 3. During the fourth
quarter of 2024 new enhanced provisioning models were
introduced for the retail portfolio. This did not have a
significant impact on the loan loss provisions.
Realised loan losses were at a low level in 2024. Even though
the macroeconomic outlook improved during 2024, the
management judgement was kept at the same level of DKK
306m at end-2024 (DKK 307m) due to continued elevated
macroeconomic uncertainty.
Overall, the loan portfolio of Nordea Kredit is well diversified
with robust collateral.
The write-down ratio of the loan portfolio increased to 2.2bp
(0.5bp).
Tax
Income tax expense was DKK 369m (DKK 386m) and the
effective tax rate was 25.8% (25.1%) following the increased
tax rate for financial institutions in 2024.
Net profit for the year
Net profit for the year amounted to DKK 1,059m (DKK
1,149m), corresponding to a return on equity in 2024 of 4.7%
(5.1%).
Assets
Total assets increased by 2% to DKK 437bn (DKK 430bn).
Receivables from credit institutions and central banks, mainly
consisting of deposits with Nordea Bank, increased to DKK
38bn (DKK 32bn).
Loans and receivables at fair value amounted to DKK 391bn
(DKK 391bn). Total lending at nominal value after loan losses
decreased by 2% to DKK 413bn (DKK 421bn) mainly as a
result of the low activity level.
Table 1. Lending at nominal value by property category
The quality of the loan portfolio continued to be strong in
2024. Accumulated loan loss provisions increased to DKK
583m (DKK 522m).
The first loss guarantees from Nordea Bank cover 25% of
loans totalling DKK 410bn (DKK 417bn). The share of the
total loans covered by the loss guarantees was 99% (99%).
The loss guarantee significantly reduces the credit risk and
hence the loan losses at Nordea Kredit.
Assets held temporarily decreased and consisted of 4
repossessed properties (9) by the end of 2024 with a carrying
amount of DKK 1m (DKK 5m).
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-1
0
1
2
3
4
5
6
7
8
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
Long-term DKK rate
Short-term DKK rate
Interest rate, %
Debt
Debt to credit institutions and central banks, mainly consisting
of short-term funding from Nordea Bank and senior non-
preferred loans, amounted to DKK 9bn (DKK 8bn).
Bonds in issue at fair value totalled DKK 401bn (DKK 394bn)
after offsetting the portfolio of own bonds of DKK 5bn
(DKK 6bn). Bonds in issue at fair value increased as the
decrease in bonds in issue at nominal value was offset by the
change in the fair value adjustment.
Equity
Shareholders’ equity amounted to DKK 22bn (DKK 22bn) at
the end of 2024.
It is proposed to distribute the net profit of DKK 1,059m as
dividend to the parent company Nordea Bank Abp. The
proposed dividend payment is equivalent to DKK 62 (DKK 67)
per share.
Capital adequacy
At year-end the risk exposure amount (REA) of Nordea Kredit
was up by 39% to DKK 101.0bn (DKK 72.4bn). The common
equity tier 1 (CET1) ratio decreased to 20.1% (28.5%) due to
the increase in REA. The total capital ratio decreased to
21.6% (30.7%) at end-2024 affected by increased REA. The
increase in REA was mainly driven by the implementation of
new IRB retail models approved by the authorities during the
third quarter of 2024.
At year-end 2024 the leverage ratio decreased to 4.6%
(4.8%), thus meeting the minimum requirement of 3%.
Debt buffer
The debt buffer requirement was DKK 7.8bn at end-2024
(DKK 7.8bn). Nordea Kredit met the debt buffer requirement
with excess CET1 capital, tier 2 capital and unsecured senior
debt.
Individual solvency needs
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
The property market
The economy
Despite experiencing several years of high inflation and
significant interest rate hikes, the global economy managed to
avoid slipping into a recession in 2024. This outcome is
largely attributed to central banks’ ability to swiftly control
inflation while keeping unemployment at relatively low levels.
However, economic conditions vary significantly across
regions. For instance, the US has experienced relatively
strong growth, while economic activity in Europe has been
subdued. Denmark, in contrast, has seen higher growth than
many other European nations, which has contributed to
historically high employment levels.
The Danish economy is expected to remain robust in the
coming years, characterised by high activity and strong
employment figures. This positive outlook is driven by
anticipated lower interest rates, which are likely to boost
demand both domestically and in key export markets.
Additionally, a solid increase in real wages is expected to
pave the way for stronger private consumption. Geopolitical
tensions and trade disputes between major economies could
impact global trade, inflation and interest rates. Nevertheless,
the Danish economy is well positioned to withstand significant
setbacks, and the housing market is considered to be in a
stable and balanced state.
The housing market
In 2024 Danish households experienced an increase in
purchasing power, with real wages approaching or surpassing
pre-inflation levels for many. In addition, households remain
financially resilient, which supports their ability to secure credit
for home purchases and service existing debt. The share of
homeowners defaulting on their loans has remained low.
House prices in Denmark rose overall in 2024, driven by
declining interest rates, a strong labour market and real wage
growth. Transaction volumes also increased, reflecting a
market that largely adjusted to previous interest rate hikes.
Additionally, the recent housing tax reform is believed to have
had a positive impact on property prices.
Lower interest rates and rising household incomes are
expected to further bolster the housing market in 2025. House
prices are projected to rise by approximately 4–5% in 2025.
However, this forecast is subject to uncertainty.
Interest rates
Since early 2022 central banks have been striving to curb
inflationary pressures. As of early 2025, the signs indicate that
they are nearing success. In both the US and Europe, inflation
is approaching the target rate of around 2%, and if the trend
continues it will prompt central banks to shift towards a more
accommodative monetary policy.
In 2024 the US Federal Reserve reduced its federal funds
target rate from 5.50–5.25% to 4.50–4.25%, while the
European Central Bank (ECB) lowered its deposit facility rate
from 4% to 3%. Both the Federal Reserve and the ECB
anticipate further rate cuts in 2025 although there remains
significant uncertainty about the pace and extent of these
adjustments.
Declining benchmark rates have also affected mortgage rates.
At the beginning of 2024 the effective interest rate on a 30-
year fixed-rate mortgage stood at approximately 4.3%,
decreasing to around 4.0% by year-end. Shorter-term
mortgage rates followed a similar trend, with the F3 and F5
rates decreasing from around 2.7% at the start of 2024 to
approximately 2.3% and 2.4%, respectively, by year-end. As a
result, borrowing conditions for homebuyers eased slightly,
and many homeowners benefited from lower monthly
mortgage payments.
Figure 1. Interest rates
5
Residential rental properties
Residential rental properties continue to be the favourite
property type of professional housing investors. However, we
did not see the large transactions that characterised the
market in previous years.
The vacancy rate has again found a natural level. This means
that the large number of newly built residential rental
properties, which in recent years caused vacancies in the
major cities to increase, have almost been absorbed by the
market. With the high level of construction costs, construction
activity is at the low end of the scale.
The yield requirement was more or less unchanged in 2024.
Office properties
In 2024 the office property market continued the significant
decline in transaction activity witnessed in 2023. The market
is still affected by higher interest rates and, among other
things, also by the uncertainty surrounding the number of
employees working from home.
There is still a trend towards large differences in the office
market between newer, modern, well-located properties and
older properties or properties with less good locations.
We continue to see an increase in the required yield.
Retail properties
Retail property transaction activity was at a very low level in
2024.
The market for smaller properties is characterised by
consumers’ changing shopping habits, while we continue to
see interest in well-located grocery stores. Customers are
choosing not to shop in smaller stores, where the selection is
often limited. The smaller stores are therefore forced to close.
Rising vacancy rates have put pressure on rent levels,
resulting in lower prices also in the larger cities. Higher
vacancies are seen especially in side streets, but have also
begun to appear in main streets.
Industrial and logistics properties
Activity within industrial and logistics properties also fell in
2024, but not as significantly as for some of the other property
types.
There has been a slight increase in the vacancy rate, but it is
still at a low level. There have been minor increases in the
yield requirements. Logistics properties with solid tenants and
long leases are particularly in demand.
Agricultural properties
The agricultural sector’s earnings have been reduced in
recent years by rising interest costs and smaller harvests due
to bad weather conditions the last two years. The decline
follows a period of very good results and debt reduction, and
the sector has therefore generally been able to handle the
decline. Earnings are particularly supported by livestock
farming with high milk prices and in pig production especially
by high piglet prices. Conversely, crop production was hit by
the weather conditions, and earnings were at an
unsatisfactory level. Earnings are expected to increase in
2025 following the falling interest rates and an expected
“normal” harvest year.
The green tripartite agreement has been politically adopted,
but the implementation is still pending. There is uncertainty
about how the requirement for especially reductions in
nitrogen emissions will affect the agricultural sector. Major
changes will be implemented and the schedule is tight. It is
assessed that it is manageable for the sector in general, but
some individual properties and some geographical areas will
be hit relatively harder than others by the changes.
Trading activity within agricultural properties has been good
for several years, with rising prices of land due to good
earnings in most sectors and demand for land for other
purposes, for example energy projects and nature projects.
The implementation of the green tripartite agreement adds
some uncertainty to the market about future production
conditions, which may affect prices. However, according to
the agreement large agricultural areas must be converted to
forest and nature areas, which will reduce the supply of
agricultural land for agricultural purposes, and this is expected
to counteract the negative consequences of the
implementation.
Nordea Kredit’s lending
The loan portfolio
Total lending at nominal value after loan losses amounted to
DKK 413bn by end-2024 (DKK 421bn).
The lower lending volume in 2024 was primarily caused by
decreased lending for owner-occupied dwellings and holiday
homes.
Although activity was relatively modest during 2024, activity
increased in the second half of the year due to the positive
trend in the housing market as well as increased top-up
lending and remortgaging. Developments towards year-end
were supported by falling interest rates.
Total gross new lending in 2024 amounted to DKK 46bn (DKK
52bn), of which DKK 31bn (DKK 37bn) was for owner-
occupied dwellings and holiday homes.
Even though many customers refinanced their adjustable-rate
mortgage loans to a higher interest rate level during 2024, the
lending book was still strong. Approximately 13% of
household customers still paid an interest rate close to 0% on
their adjustable-rate mortgage loans by end-2024.
Household as well as corporate customers reduced their use
of fixed-rate loans slightly during 2024. By end-2024 41%
(42%) of Nordea Kredit’s lending portfolio was fixed-rate
loans.
Corporate customers in general preferred floating-rate
products (Cibor6 and Cibor6 Green) and to lesser extent
adjustable-rate mortgages and fixed-rate loans.
Interest-only loans in total accounted for a slightly increased
share of 54% (53%) of the lending portfolio by end-2024.
Nordea’s focus on supporting the green transition was
reflected in Nordea Kredit’s lending portfolio. The outstanding
volume of green mortgage loans offered within Nordea’s
Green Funding Framework to finance corporate properties for
example residential rental properties with EPC A/B ratings
and green energy plants reached DKK 17bn (DKK 16bn) at
end-2024, equivalent to a market share of approximately 18%
(19%) for green bonds denominated in Danish kroner.
6
Figure 2. Total loan portfolio by loan type
Supplementary collateral for loans financed through
covered mortgage bonds
Mortgage institutions issuing loans based on covered 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-2024 (DKK 3bn).
Funding
Bond issuance
Nordea Kredit adheres to the specific balance principle and
exclusively match-funds its lending by the issuance of bonds.
2024 was characterised by falling market yields, continued
dampened issuance and lower market volatility. This meant
better sentiment in the Danish bond market. The better
sentiment was also supported by the fact that foreign
accounts stopped selling low-coupon covered bonds on an
almost daily basis which was the case in both 2022 and 2023.
During 2024 the market expected yields to continue falling,
and many borrowers were waiting for the 3.5% 30-year
callable bonds to open for issuance and use the possibility to
remortgage out of higher-coupon loans. The 3.5% bonds
opened at the start of the fourth quarter 2024 and loan
remortgaging started to pick up as anticipated.
Throughout most of 2024 the coupons of floating-rate bonds
were significantly higher than those of 3-year and 5-year non-
callables. The high coupon fixing in floating-rate bonds meant
that borrowers preferred the 5-year non-callable bonds where
the effective interest rate decreased to around 2.5%.
Nordea Kredit tap-issued DKK 48bn in 2024. This was slightly
less than in 2023 and low in a historical perspective. Like
other market participants, Nordea Kredit saw less covered
bond issuance in 2024 partly due to borrowers choosing bank
loan products instead.
Of the tap issuance, 41% was in callable bonds, 24% in
floating-rate bonds and 36% in non-callable bonds. Compared
to Nordea Kredit’s issuance split in 2023, this was 9% points
less in callables, 6% points less in floating-rate bonds, but up
15% points in non-callables.
Foreign investors reduced their total holding from 28.7% in
November 2023 to 27.6% in November 2024. This includes
the effect of foreign accounts buying high-coupon callable
bonds and selling low-coupon bonds.
At end-2024 the total outstanding nominal value of bonds,
before offsetting the portfolio of own bonds, amounted to DKK
428bn (DKK 431bn). Of this amount, mortgage bonds
accounted for DKK 1bn (DKK 1bn) and covered mortgage
bonds accounted for DKK 427bn (DKK 430bn). At end-2024
the fair value of the total outstanding volume of bonds was
DKK 401bn (DKK 394bn) after offsetting the portfolio of own
bonds.
Refinancing of adjustable-rate mortgages
Adjustable-rate mortgage loans (F1–F5) are refinanced as of
January, April and October and funded by issuance of bullet
bonds. Adjustable-rate mortgage loans for DKK 3bn, DKK
10bn and DKK 14bn were refinanced as of January 2024,
April 2024 and October 2024, respectively.
Refinancing auctions during 2024 resulted in lower interest
rates for customers. For example the interest rate for
adjustable-rate mortgage loans with refinancing in
October 2024 was fixed at 2.6% for a 30-year annuity loan
with reset every three years (F3) compared to 3.7% in
October 2023.
Refinancing of floating-rate mortgages
The July 2024 refinancing of floating-rate loans based on
Cibor6 and Cibor6 Green amounted to DKK 25.1bn, of which
Cibor6 and Cibor6 Green bonds accounted for DKK 17.6bn
and DKK 7.5bn, respectively.
Nordea Kredit’s refinancing auctions – of both adjustable-rate
and floating-rate loans – were successfully conducted with
fine investor sentiment.
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.
Risk and capital management
Risk management
Nordea Kredit is exposed to credit risk on borrowers as well
as operational risk because of Nordea Kredit’s activities.
Furthermore, Nordea Kredit is exposed to liquidity risk and
market risk in the form of interest rate risk and modest
currency risk related to its mortgage loans and the investment
of capital.
Risk management is described in Note 26 Risk and liquidity
management.
Capital management
Nordea Kredit strives to be efficient in its use of capital and
therefore actively manages its balance sheet with respect to
assets, liabilities and risk categories. Nordea Kredit reports
risk exposure amounts according to applicable external
7
regulations in the form of the Capital Requirements Directive
IV (CRD IV)/the Capital Requirements Regulation (CRR),
which stipulate the limits for the minimum capital (the capital
requirement).
Nordea Kredit has approval to report its capital requirement in
accordance with the advanced internal ratings-based (AIRB)
approach for large enterprises. The internal ratings-based
(IRB) approach is approved for credit institutions and
commitments with retail customers in line with Nordea Bank.
Rating and scoring are key components in credit risk
management. Common to both the rating and scoring models
is the ability to predict defaults and rank Nordea Kredit’s
customers. While the rating models are used for corporate
customers, scoring models are used for personal customers
and small corporate customers.
The most important parameters when quantifying the credit
risk are the probability of default (PD), the loss given default
(LGD) and the exposure at default (EAD). The parameters are
used for calculation of risk exposure amounts. In general,
historical losses and defaults are used to calibrate the PDs
assigned to each rating grade. LGD is measured taking into
account the collateral type and the counterparty’s balance
sheet components. Scoring models are pure statistical
methods to predict the probability of customer default. Nordea
Kredit collaborates with Nordea Bank in utilising bespoke
behavioural scoring models developed on internal data to
support both the credit approval process and the risk
management process.
As a complement to the ordinary credit risk quantification,
comprehensive stress testing is performed at least annually in
accordance with current requirements (Internal Capital
Adequacy Assessment Process, ICAAP), after which capital
requirements are measured.
Supervisory diamond
The supervisory diamond for mortgage institutions consists of
five specific benchmarks that mortgage institutions in general
should not exceed. The five benchmarks comprise risk areas
identified by the Danish Financial Supervisory Authority.
Nordea Kredit complied with all the benchmarks of the
supervisory diamond for mortgage institutions throughout
2024.
Table 2. The supervisory diamond
1
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%.
2
Interest-only lending for owner-occupied dwellings and holiday homes where
the LTV ratio exceeds 75% of the lending limit is limited to 10%.
3
4
The 20 largest exposures less CRR deductions are limited to 100% of CET1.
New capital regulation
Regulation on capital requirements
This section highlights recent news and updates on regulatory
developments and capital requirements, mainly related to the
Bank Recovery and Resolution Directive (BRRD), the Capital
Requirements Directive (CRD), the Capital Requirements
Regulation (CRR) and the Danish Financial Business Act. In
general it addresses news that is deemed relevant from a
Nordea Kredit perspective.
On 26 April 2024 the Danish Minister for Industry, Business
and Financial Affairs decided to activate a sector-specific
systemic risk buffer (SyRB) based on a recommendation from
the Systemic Risk Council in Denmark. The SyRB was valid
from 30 June 2024 for exposures to real estate companies
with a specific industry code. In addition, the exposure
covered by real estate collateral up to an LTV ratio of 15% is
exempted.
On 9 July 2024 Nordea Kredit received approval from the
authorities for new retail IRB models. The new IRB retail
models were implemented in September 2024.
Nordea Kredit was identified as a systemically important
financial institution (SIFI) in January 2017 and is subject to a
1.5% other systemically important institutions (O-SII)
requirement. The requirement was confirmed on 19
December 2024.
EU implementation of finalised Basel III framework
(“Basel IV”)
The Basel IV package has been implemented into the EU
Capital Requirements Regulation (CRR) with effect from 1
January 2025. This change is referred to as CRR3.
On credit risk, the CRR3 includes revisions to the IRB
approach, where restrictions on the use of the IRB approach
for certain exposures are implemented, as well as to the
standardised approach. For operational risk, the three existing
approaches will be removed and replaced by one
standardised approach to be used by all banks.
The output floor is to be set at 72.5% of the standardised
approaches on an aggregate level, meaning that the capital
requirement will be floored at 72.5% of the total pillar 1 REA
calculated with the standardised approaches for credit, market
and operational risk. The floor is phased in, starting with 50%
from 1 January 2025 to be fully implemented at 72.5% from 1
January 2030. For the calculation of the REA for the output
floor, there are transitional rules until end-2032. However,
some transitional arrangements, among other things related
to the risk weight for residential real estate exposure, need
approval by the Danish Parliament and are expected to come
into force during the first half of 2025.
Reporting on internal control and risk
management regarding financial reporting
Control environment
The systems for internal control and risk management of
financial reporting at Nordea Kredit are designed to provide
reasonable assurance about the reliability of financial
reporting and the preparation of financial statements for
external purposes in accordance with generally accepted
accounting principles, applicable laws and regulations as well
as other requirements for companies with listed bonds. The
internal control and risk management activities are included in
Nordea Kredit’s planning and resource allocation processes.
8
Internal control is based on a control environment which
includes the following elements: values and management
culture, an organisational structure with clear roles and
responsibilities and an independent evaluation process. The
documentation of the internal control framework consists of
internal business procedures and Standard Operating
Procedures (SOPs) supported by the Nordea Group
directives.
To further support internal controls and guidelines, Nordea
Kredit has a risk management function headed by a Chief
Risk Officer (CRO) who is responsible for ensuring that the
overall risk control at Nordea Kredit is conducted adequately.
The CRO independently reports directly to the Board of
Directors. Furthermore, Nordea Kredit has established a
compliance function headed by a Chief Compliance Officer
(CCO) who is responsible for independently monitoring,
providing advice and assurance, and reporting of compliance
risks.
Monitoring
The Executive Management of Nordea Kredit reports on an
ongoing basis to the Board of Directors and the Board Audit
Committee on significant matters affecting the internal control
in relation to financial reports.
Nordea Kredit’s internal audit function reviews the company’s
processes, to test and report whether these are in accordance
with the objectives set out by management. This review
includes an assessment of the reliability of procedures,
controls and financial reporting as well as compliance with
legislation and regulations. The internal audit function
annually issues a conclusion to the Board of Directors on the
overall effectiveness of the governance, risk management and
internal controls of Nordea Kredit.
The Board Audit Committee of Nordea Kredit assists the
Board of Directors in fulfilling its oversight responsibilities, for
instance by monitoring the financial reporting process and
system and providing recommendations to ensure its
reliability, monitoring the effectiveness of the internal controls
and risk management systems, in relation to the financial
reporting process, monitoring the effectiveness of the internal
audit function and keeping itself informed as to the statutory
audit of the annual accounts, informing the Board of Directors
of the outcome of the statutory audit and explaining how the
statutory audit contributed to the reliability of financial
reporting. Finally, the Board Audit Committee reviews and
monitors the impartiality and independence of external
auditors in accordance with section 24 of the Danish Act on
Approved Auditors and Audit Firms, and in particular the
provision of additional services to Nordea Kredit, and in
conjunction therewith, pays special attention to whether the
auditor provides Nordea Kredit with services other than
auditing services. The external auditors present the results of
their audits of Nordea Kredit’s annual report to the Board of
Directors and the Board Audit Committee.
Preventing financial crime
Nordea Kredit complies with Nordea’s policies and measures
to prevent financial crime based on international standards,
EU regulation and local legislation. Nordea Kredit is
committed to complying with applicable laws, regulations and
best practice and has established policies, procedures and
controls to mitigate and manage the risks of being used for
financial crime activities.
Nordea Kredit conducts an annual risk assessment – built on
the Nordea framework – to ascertain any specific financial
crime risks arising from Nordea Kredit’s business model and
activities and take appropriate actions to mitigate such risks.
Sustainability
In accordance with the sustainability-related responsibility of
the Nordea Group, Nordea Kredit is committed to sustainable
business and development by combining financial
performance with environmental and social responsibility as
well as sound governance practices.
At the core of our operations is the development and provision
of sustainable financing solutions that broadly cover transition
financing and the financing of sustainable activities and
projects (
https://www.nordea.com/en/sustainability/our-
products-with-sustainable-focus)
.
Nordea Kredit offers green mortgage loans to finance
corporate properties that fulfil the criteria of the Nordea Green
Funding Framework.
In the Nordea Kredit Debt Investor Report that can be found
on www.nordea.com, the portfolio’s CO2 emission, EPC
distribution and green lending portfolio are elaborated.
Environmental, social and corporate
governance (ESG)
Nordea defines ESG risk as the risk of negative financial and
non-financial impacts stemming from the actual or potential
impacts of ESG factors in the short, medium, long and very
long terms. These risks manifest across existing risk
categories, and impacts from ESG factors may be direct or
indirect, through third parties and counterparties. It is
important for Nordea to integrate ESG assessments into our
risk management frameworks.
In accordance with section 151 of the Danish Financial
Supervisory Authority’s Executive Order on Financial Reports
for Credit Institutions and Investment Firms etc. (the
Executive Order), information on Nordea’s sustainability can
be found under the sustainability reporting in the annual report
for Nordea (
.
Data ethics policy
The Nordea Group Board of Directors has approved the
Group Board Directive on Code of Conduct, the Group Board
Directive on Data Governance and the Group Board Directive
on Data Privacy. These Group directives include the Nordea
Group’s policy for data ethics. The Group policies have been
adopted by the Board of Directors of Nordea Kredit and are
applicable for all employees of the Nordea Group. Processing
of data at Nordea Kredit is a part of the core business.
9
Nordea Kredit complies with applicable law and strives to
process, treat and analyse all data in a fair and transparent
manner and with a strong ethical mindset. We respect
customers’ privacy:
•
We collect and process personal and customer data
fairly, lawfully and transparently for legitimate business
purposes.
•
We respect individuals’ right to be in control of what data
they share with us and for what purposes with the
limitations legal requirements set on us.
•
We only disclose personal and customer data to those
authorised to receive it internally at Nordea and
externally, for example third parties we collaborate with.
•
Our commitment to privacy remains also after
relationships with stakeholders end.
The policy for data ethics covers the processing of data
through its journey across the Nordea Group. Essential data,
automated data processing and modelling are subject to
governance and measured continuously to ensure a high level
of data security and ensure compliance with the ethical
guidelines.
The daily activities concerning data ethics are carried out in
the local Nordea Kredit business areas. The reporting on data
ethics is the responsibility of a number of functions at Nordea
Kredit, including Compliance and Data Management.
Changes to the Board of Directors
At the beginning of 2024 the Board of Directors consisted of
Mads Skovlund Pedersen (Chair), Anne Rømer (Vice Chair
and external member), Anita Ina Nielsen, Thomas Vedel
Kristensen, Anders Frank-Læssøe, Anders Holkmann Olsen,
Helene Bløcher, Tina Sandvik and Peder Birkebæk Bach.
On 31 January 2025 Mads Skovlund Pedersen, Thomas
Vedel Kristensen and Peder Birkebæk Bach left the Board of
Directors. Christian Ulrik Johannessen was elected to the
Board of Directors from 1 February 2025. Anders Holkmann
Olsen was elected Chair of the Board of Directors from 1
February 2025.
After the changes the Board of Directors consists of Anders
Holkmann Olsen (Chair), Anne Rømer (Vice Chair and
external member), Anita Ina Nielsen, Anders Frank-Læssøe,
Helene Bløcher, Tina Sandvik and Christian Ulrik
Johannessen.
Changes to the Executive Management
On 28 February 2025 Deputy Chief Executive Officer Claus
Greve retired from Nordea Kredit. Kasper Lykke Møller
Ingemann was appointed as Deputy Chief Executive Officer
from 1 March 2025. After the changes the Executive
Management consists of Morten Boni (Chief Executive
Officer) and Kasper Lykke Møller Ingemann (Deputy Chief
Executive Officer).
Further information regarding members of the Board of
Directors and the Executive Management is available on page
46.
Balanced gender composition
The Nordea Kredit Board of Directors has endorsed the
Nordea Group Board Policy to meet the objective of having a
fair, equal and balanced representation of gender and other
diversifying factors on the Board collectively and throughout
the organisation.
In 2024 Nordea Kredit had gender balance on the Board of
Directors. In relation to the other leadership levels, Nordea
Kredit has restructured parts of the organisation resulting in a
gender imbalance among the top two leadership
levels
combined. Consequently, in addition to the Nordea Group
Diversity Policy, the Nordea Kredit Board had approved a
diversity policy to promote gender balance for the top two
leadership levels combined. This diversity policy sets the
target of having at least 40% representation of each gender at
the top two leadership levels combined by the end of 2025.
Table 3. Gender balance
1
1
distribution of management and reporting issued by the Danish Business
Authority, there was gender balance if no gender was represented by less than
33% when there were 9 members and 37.5% when there were 8 members.
To further foster diversity and enhance competencies at all
levels of the organisation, we are focusing on recruitment,
promotion and retention of a diversified and competent
workforce. Such ambitions are also part of our Diversity
Policy.
Subsequent events
In accordance with an approval from Danish Financial
Supervisory Authority, Nordea Kredit will repay the
subordinated loan of DKK 1.55bn on 31 March 2025. Before
the end of March 2025, Nordea Kredit will issue a new Tier 2
capital instrument in the form of a subordinated loan of DKK
1.55bn provided by Nordea Bank Abp.
Beside the above no events have occurred after the balance
sheet date which may affect the assessment of the annual
report.
Outlook for 2025
Profit before tax for 2025 is expected to increase slightly as
total operating expenses driven by sales and distribution fees
are expected to decrease more than total operating income.
Volumes are expected to increase in 2025, but administration
margins are expected to continue to decrease slightly.
The return on own funds is expected to decrease driven by
falling interest rates during 2025 and the full-year effect from
the senior debt issued in August 2024.
Nordea Kredit is well provisioned but due to macroeconomic
uncertainty, loan losses are expected to increase slightly.
10
Financial statements – contents
Income statement
Statement of comprehensive income
Balance sheet
Statement of changes in equity
5-year overview
Glossary
Notes to the financial statements
1
Accounting policies
Notes to the income statement
2
Net interest income
3
Net fee and commission income
4
Value adjustments
5
Staff and administrative expenses
6
Impairment losses on loans and receivables
7
Profit from equity investment in associated undertaking
8
Tax
9
Commitments with the Board of Directors and the Executive Management
Notes to the balance sheet
10
Receivables from credit institutions and central banks
11
Loans and receivables at fair value
12
Investment in associated undertaking
13
Assets held temporarily
14
Other assets
15
Debt to credit institutions and central banks
16
Bonds in issue at fair value
17
Other liabilities
18
Subordinated debt
Other notes
19
Capital adequacy
20
Debt buffer
21
Maturity analysis for selected assets and liabilities
22
Related-party transactions
23
Segment reporting
24
The Danish Financial Supervisory Authority’s ratio system
25
Series financial statements
26
Risk and liquidity management
11
Income statement
Note
2024
2023
DKKm
Interest income
13,963
12,987
Interest expenses
-10,010
-8,944
Net interest income
2
3,953
4,043
Fee and commission income
3
375
420
Fee and commission expenses
3
-1,185
-1,194
Net interest and fee income
3,143
3,269
Value adjustments
4
-9
-30
Other operating income
1
0
Staff and administrative expenses
5
-1,620
-1,685
Depreciation of tangible assets
0
0
Other operating expenses
0
-1
Impairment losses on loans and receivables
6
-86
-19
Profit from equity investment in associated undertaking
7
-1
1
Profit before tax
1,428
1,535
Tax
8
-369
-386
Net profit for the year
1,059
1,149
Attributable to
Proposed dividends to the shareholders
1,059
1,149
Transfer to equity reserves
0
0
Statement of comprehensive income
2024
2023
DKKm
Net profit for the year
1,059
1,149
Other comprehensive income, net of tax
-
-
Total comprehensive income
1,059
1,149
Attributable to
Proposed dividends to the shareholders
1,059
1,149
Transfer to equity reserves
0
0
Total
1,059
1,149
12
Balance sheet
Note
31 Dec 2024
31 Dec 2023
DKKm
Assets
Cash in hand and demand deposits with central banks
7,257
7,017
Receivables from credit institutions and central banks
10
37,894
31,998
Loans and receivables at fair value
11
391,360
390,669
Loans and receivables at amortised cost
0
0
Investment in associated undertaking
12
21
22
Tangible assets
0
0
Deferred tax assets
8
5
3
Current tax assets
8
-
76
Assets held temporarily
13
1
5
Other assets
14
343
138
Prepaid expenses
5
9
Total assets
436,886
429,937
Debt
Debt to credit institutions and central banks
15
8,955
8,117
Bonds in issue at fair value
16
400,934
394,356
Current tax liabilities
8
9
-
Other liabilities
17
3,171
3,557
Deferred income
1
0
Total debt
413,069
406,030
Subordinated debt
Subordinated debt
18
1,550
1,550
Equity
Share capital
1,717
1,717
Other reserves
20
23
Retained earnings
19,471
19,467
Proposed dividends
1,059
1,149
Total equity
22,267
22,356
Total equity and debt
436,886
429,937
Contingent liabilities
Guarantees etc.
0
0
Credit commitments
1,857
1,037
Total contingent liabilities
1,857
1,037
13
Statement of changes in equity
DKKm
Share capital
1
Other reserves
2
Retained
earnings
Proposed
dividends
Total equity
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 2023
1,717
24
19,464
1,075
22,280
Net profit for the year
-
-1
1,150
-
1,149
Other comprehensive income, net of tax
-
-
-
-
-
Share-based payments
-
-
2
-
2
Dividends paid
-
-
-
-1,075
-1,075
Proposed dividends
-
-
-1,149
1,149
-
Balance at 31 Dec 2023
1,717
23
19,467
1,149
22,356
1
2
Nordea Kredit is consolidated into the group annual report for the parent company Nordea Bank Abp, Satamaradankatu 5, Helsinki, Finland
which is available on www.nordea.com/en/investors/group -annual-reports.
14
5-year overview
Income statement
DKKm
2024
2023
2022
2021
2020
Net interest income
3,953
4,043
3,517
3,324
3,211
Net interest and fee income
3,143
3,269
2,840
2,694
2,722
Value adjustments
-9
-30
-17
1
10
Other operating income
1
0
4
8
6
Staff and administrative expenses
-1,620
-1,685
-1,424
-1,367
-608
Impairment losses on loans and receivables
-86
-19
-27
82
-491
Profit from equity investment in associated undertaking
-1
1
1
2
1
Profit before tax
1,428
1,535
1,377
1,419
1,640
Tax
-369
-386
-302
-312
-361
Net profit for the year
1,059
1,149
1,075
1,107
1,279
Balance sheet
DKKm
2024
2023
2022
2021
2020
Receivables from credit institutions and central banks
37,894
31,998
39,264
48,523
49,948
Loans and receivables at fair value
391,360
390,669
385,887
432,280
417,553
Loans and receivables at nominal value
1
412,940
421,030
433,757
436,116
409,222
Other assets
7,632
7,270
355
211
435
Total assets
436,886
429,937
425,506
481,015
467,936
Debt to credit institutions and central banks
8,955
8,117
9,503
14,260
4,998
Bonds in issue at fair value
400,934
394,356
389,737
441,234
435,055
Other liabilities etc.
4,731
5,107
3,985
3,210
5,402
Equity
22,267
22,356
22,280
22,311
22,481
Total equity and debt
436,886
429,937
425,506
481,015
467,936
Ratios and key figures
2024
2023
2022
2021
2020
Return on equity, %
4.7
5.1
4.8
4.9
5.7
Cost/income ratio
2
51.7
52.0
50.4
50.5
22.2
Write-down ratio, basis points
2.2
0.5
0.7
-1.9
11.7
Loans/equity ratio
17.6
17.5
17.3
19.4
18.6
Lending growth for the year, %
-1.9
-2.9
-0.5
6.6
2.7
Common equity tier 1 capital ratio
3
20.1
28.5
28.4
24.7
25.0
Tier 1 capital ratio
3
20.1
28.5
28.4
24.7
25.0
Total capital ratio
3
21.6
30.7
30.5
26.6
29.6
Own funds, DKKbn
21.8
22.2
22.2
22.1
24.4
Tier 1 capital, DKKbn
20.3
20.7
20.6
20.5
20.7
Risk exposure amount, DKKbn
4
101.0
72.4
72.8
83.1
82.6
Number of employees (full-time equivalents)
5
92
103
115
118
116
Average number of employees (full-time equivalents)
95
108
116
118
116
1
2
3
4
5
The Danish Financial Supervisory Authority's ratio system is shown in note 24.
15
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 year divided by loans and receivables at nominal value
beginning of the year.
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 year.
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 year as a percentage of average equity for
the year. Average equity is including net profit for the year
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 the
common equity tier 1 capital and additional tier 1 capital of the
institution. 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 risk exposure amount.
Total capital ratio
Own funds as a percentage of risk exposure amount.
Write-down ratio
Impairment losses on loans and receivables during the year
as a percentage of the closing balance of loans and
receivables before impairment losses on loans and
receivables.
16
Notes to the financial statements
Note 1
Accounting policies
Table of contents
1.
2.
3.
4.
on the balance sheet
5.
foreign currencies
6.
7.
8.
9.
10.
11.
12.
13.
1.
The annual report for Nordea Kredit is prepared in
accordance with the Danish Financial Business Act,
including the Danish Financial Supervisory Authority’s
Executive Order on Financial Reports for Credit Institutions
and Investment Firms etc. (the Executive Order).
The accounting policies, methods of computation and
presentations are unchanged from last year.
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 “-”.
If there are discrepancies between the PDF and xHTML
versions of the annual report, the xHTML version is the
official annual report.
2.
uncertainty
The preparation of financial statements in accordance with
generally accepted accounting principles requires, in some
cases, the use of judgements and estimates by
management. Actual outcomes can later, to some extent,
differ from the estimates and the assumptions made.
In this section a description is made of:
•
the reporting period that have a significant risk of
resulting in a material adjustment to the carrying
amount of assets and liabilities within the next
financial year, and
•
policies (apart from those involving estimations) that
have the most significant impact on the amounts
recognised in the financial statements.
Critical judgements and estimates are in particular
associated with:
•
instruments, and
•
due to changes in credit risk.
If there are significant changes to critical judgements and
estimation uncertainties, a description and the potential
financial effect will be included in the relevant notes and the
Management’s report.
Fair value measurement of certain financial
instruments
Nordea Kredit’s accounting policy for determining the fair
value of financial instruments is described in section 6
“Determination of fair value of financial instruments”.
Critical judgements that have a significant impact on the
recognised amounts for financial instruments are exercised
when determining fair value of financial instruments that
lack quoted prices or recently observed market prices.
Those judgements relate to the following areas:
•
•
represent fair value (including the judgement of
whether markets are active).
•
to incorporate relevant risk factors such as credit
risk, model risk and liquidity risk.
•
observable.
The critical judgements required when determining fair
value of financial instruments that lack quoted prices or
recently observed market prices also introduce a high
degree of estimation uncertainty.
In all of these instances, decisions are based upon
professional judgement in accordance with Nordea’s
accounting and valuation policies that are adopted by the
Board of Directors of Nordea Kredit.
Measurement of loans and receivables at fair value due
to changes in credit risk
Nordea Kredit’s accounting policy for measurement of
loans and receivables at fair value due to changes in credit
risk is described in section 9 “Loans and receivables at fair
value”.
Management is required to exercise critical judgements
and estimates when calculating changes in credit risk. The
credit risk is calculated based on the impairment rules for
loans at amortised cost with relevant fair value
adjustments. The credit risk is recognised in the balance
sheet as loan impairment allowances.
When calculating allowances for individually impaired
loans, judgement is exercised to estimate the value of the
collateral received and the timing of the sale of the
property.
17
Judgement is exercised in the choice of modelling
approaches covering parameters used when calculating
the expected losses, such as the expected lifetime, as well
as in the assessment of whether the parameters based on
historical experience are relevant for estimating future
losses. Judgement is exercised in the modelling approach
for the coverage of the first loss guarantee as it will depend
on the composition of future defaults.
The statistical models used to calculate provisions are
based on macroeconomic scenarios, which requires
management to exercise judgement when identifying such
scenarios and when assigning the likelihood of the different
scenarios occurring. Judgement is also exercised in the
assessment of to what extent the parameters for the
different scenarios, based on historical experience, are
relevant for estimating future losses. Adjustments are made
to the model-calculated provisions if the historical data
does not adequately reflect management’s view on the
expected credit losses. The estimation of post-model
adjustments requires management to exercise critical
judgements.
3.
impairment
Interest income and expense are calculated and
recognised based on the effective interest rate method or, if
considered appropriate, based on a method that results in
an interest income or interest expense that is a reasonable
approximation of using the effective interest rate method as
basis for the calculation.
Interest income and expenses from financial instruments
are classified as “Net interest income”.
Negative interest income is presented as part of interest
expenses and negative interest expenses are presented as
part of interest income.
Net fee and commission income
Nordea Kredit earns commission income from different
services provided to customers. The recognition of
commission income depends on the purpose for which the
fees are received. Fee income is recognised either when or
as performance obligations are satisfied.
Fees categorised as loan processing, brokerage,
refinancing fees and pay-out fees plus other fee and
commission income are recognised at a point of time.
Expenses for bought financial guarantees are amortised
over the duration of the instruments. Other commission
expenses are transaction based and recognised in the
period when the services are received.
Value adjustments
Realised and unrealised gains and losses on financial
instruments measured at fair value through profit and loss
are recognised in the item “Value adjustments”.
Realised and unrealised gains and losses derive from:
•
instruments
•
•
Other operating income
Net gains from divestments of shares in associated under-
takings and net gains on sale of tangible assets as well as
other operating income, not related to any other income
line, are generally recognised when it is probable that the
benefits associated with the transaction will flow to Nordea
Kredit and if the significant risks and rewards have been
transferred to the buyer (generally when the transactions
are finalised).
Impairment losses on loans and receivables
Changes in the credit risk on loans and receivables at fair
value on the balance sheet are reported as “Impairment
losses on loans and receivables”. Nordea Kredit’s
accounting policies for the calculation of changes in the
credit risk on loans and receivables at fair value can be
found in section 9 “Loans and receivables at fair value”.
Profit from equity investment in associated
undertaking
The profit from equity investment in associated undertaking
is defined as the post-acquisition change in Nordea Kredit’s
share of net assets in the associated undertaking. Nordea
Kredit’s share of profit is accounted for in “Profit from equity
investment in associated undertaking” and placed under
equity, “Other reserves”. Profits from equity investment in
associated undertaking are reported in the income
statement post-taxes. Consequently, the tax expense
related to these profits is excluded from the income tax
expense for Nordea Kredit.
The change in Nordea Kredit’s share of the net assets is
generally based on reporting from the associated
undertaking.
4.
instruments on the balance sheet
Derivative instruments, quoted securities, foreign exchange
spot transactions and other financial instruments are
recognised on and derecognised from the balance sheet on
the settlement date.
Financial assets are derecognised from the balance sheet
when the contractual rights to the cash flows from the
financial asset expire or are transferred to another party.
The rights to the cash flows normally expire or are
transferred when the counterparty has performed by for
example repaying a loan to Nordea Kredit, that is, on the
settlement date.
Financial liabilities are derecognised from the balance
sheet when the liability is extinguished.
For further information, see the section “Repurchase and
reverse repurchase agreements” within section 8 “Financial
instruments”.
5.
denominated in foreign currencies
The functional currency of Nordea Kredit is Danish kroner.
Foreign currency is defined as any currency other than the
functional currency of Nordea Kredit. Foreign currency
transactions are recorded at the exchange rate on the date
of the transaction. Monetary assets and liabilities
denominated in foreign currencies are translated at the
exchange rate on the balance sheet date.
18
Unrealised translation differences on unsettled foreign
currency monetary assets and liabilities are recognised in
the income statement in the item “Value adjustments”.
6.
instruments
Fair value is defined as the price that at the measurement
date would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market
participants under current market conditions in the principal
market for the asset or liability or, in the absence of a
principal market, in the most advantageous market for the
asset or liability.
The existence of published price quotations in an active
market is the best evidence of fair value and when they
exist they are used to measure financial assets and
financial liabilities.
An active market for the asset or liability is a market in
which transactions for the asset or liability occur with
sufficient frequency and volume to provide pricing
information on an ongoing basis. The absolute level for
liquidity and volume required for a market to be labelled
active vary with the instrument classes. For some classes
low price volatility is seen, also for those instruments within
the class where the trade frequency is high. For
instruments in such a class the liquidity requirements are
lower and correspondingly, the age limit for the prices used
for establishing fair value is higher. The trade frequency
and volume are monitored regularly in order to assess if
markets are active or non-active. Nordea Kredit is
predominantly using published price quotations to establish
fair value for interest-bearing securities and bonds in issue.
If quoted prices for a financial instrument fail to represent
actual and regularly occurring market transactions or if
quoted prices are not available, fair value is established by
using an appropriate valuation technique. The adequacy of
the valuation technique, including an assessment of
whether to use quoted prices or theoretical prices, is
monitored on a regular basis.
Valuation techniques can range from simple discounted
cash flow analysis to complex option pricing models.
Valuation models are designed to apply observable market
prices and rates as input whenever possible, but can also
make use of unobservable model parameters. The
adequacy of the valuation model is assessed by measuring
its capability to hit market prices. This is done by
comparison of calculated prices to relevant benchmark
data, for example quoted prices from an exchange, the
counterparty’s valuations, price data from consensus
services etc.
Nordea Kredit is predominantly using valuation techniques
to establish fair value for items disclosed under the
following balance sheet items:
•
section 9
•
active market are not available)
•
For financial instruments where fair value is estimated by a
valuation technique, it is investigated whether the variables
used in the valuation model are predominantly based on
data from observable markets. By data from observable
markets, Nordea Kredit considers data that can be
collected from generally available external sources and
where these data are judged to represent realistic market
prices. If non-observable data have a significant impact on
the valuation, the instrument cannot be recognised initially
at the fair value estimated by the valuation technique and
any upfront gains are thereby deferred and amortised
through the income statement over the contractual life of
the instrument. The deferred upfront gains are
subsequently released to income if the non-observable
data become observable.
The valuation models applied by Nordea Kredit are
consistent with accepted economic methodologies for
pricing financial instruments and incorporate the factors
that market participants consider when setting a price.
7.
central banks
Cash in hand and demand deposits with central banks
consist of cash and balances with central banks, where the
following conditions are fulfilled:
•
•
8.
Each financial instrument has been classified into one of
the following categories: amortised cost, fair value through
profit and loss or fair value through other comprehensive
income. The classification of a financial instrument is
dependent on the business model for the portfolio in which
the instrument is included and on whether the cash flows
are solely payments of principal and interest (SPPI).
Financial assets with cash flows that are not solely
payments of principal and interest (SPPI) are measured at
fair value through profit and loss. All other assets are
classified based on the business model.
All financial assets and liabilities are initially measured at
fair value. The classification of financial instruments into
different categories forms the basis for how each
instrument is subsequently measured on the balance sheet
and how changes in its value are recognised.
Mortgage loans and the related bonds issued are classified
at fair value through profit and loss according to the
Executive Order.
Repurchase and reverse repurchase agreements
Securities delivered under repurchase agreements and
securities received under reverse repurchase agreements
are not derecognised from or recognised on the balance
sheet.
Cash received under repurchase agreements is recognised
on the balance sheet as “Debt to credit institutions and
central banks”. Cash delivered under reverse repurchase
agreements is recognised on the balance sheet as
“Receivables from credit institutions and central banks”.
Derivatives
All derivatives are recognised on the balance sheet and
measured at fair value. Derivatives with total positive fair
values, including any accrued interest, are recognised as
assets in the item “Other assets” on the asset side.
Derivatives with total negative fair values, including any
accrued interest, are recognised as liabilities in the item
“Other liabilities” on the liability side.
19
Realised and unrealised gains and losses from derivatives
are recognised in the income statement in the item “Value
adjustments”.
Offsetting of financial assets and liabilities
Nordea Kredit offsets financial assets and liabilities on the
balance sheet if there is a legal right to offset, in the
ordinary course of business and in case of default,
bankruptcy and insolvency of Nordea Kredit and the
counterparties, and if the intent is to settle the items net or
realise the asset and settle the liability simultaneously.
9.
Recognition and presentation
Financial instruments classified into the category “Loans
and receivables at fair value” are measured at fair value.
The fair value of loans and receivables is based on the fair
value of the underlying bonds issued adjusted for changes
in the credit risk on the customers. Changes in the credit
risk are measured based on the impairment rules for loans
at amortised cost with relevant fair value adjustments.
Loans and receivables at fair value are recognised gross
with an offsetting allowance for changes in the credit risk.
The allowance account is disclosed net on the face of the
balance sheet, but the allowance account is disclosed
separately in the notes. Changes in the allowance account
are recognised in the income statement and classified as
“Impairment losses on loans and receivables”.
If the change in the credit risk is regarded as final, it is
reported as a realised loss and the carrying amount of the
loan and the related allowance for changes in the fair value
of credit risk are derecognised. An impairment loss is
regarded as final when the collateral is sold in either an
agreed sale or a forced sale.
Changes in credit risk
Nordea Kredit classifies all exposures into stages on an
individual basis. Stage 1 includes assets where there has
been no significant increase in credit risk, stage 2 includes
assets where there has been a significant increase in credit
risk and stage 3 includes credit-impaired assets. Nordea
Kredit monitors whether there are indicators of exposures
being credit impaired (stage 3) by identifying events that
have a detrimental impact on the estimated future cash
flows (loss event). Nordea Kredit applies the same
definition of default as the Capital Requirements
Regulation. More information on the identification of loss
events can be found in Note 26 “Risk and liquidity
management”. Exposures without individually calculated
allowances will be covered by the model-based impairment
calculation.
For credit-impaired exposures impairment tested on an
individual basis, the carrying amount of the exposure is
compared with the sum of the net present value of the
collaterals and the first loss guarantee. If the carrying
amount is higher, the difference is recognised as an
impairment loss.
For credit-impaired exposures with impairment not
calculated on an individual basis, the impairment loss is
measured using the model described below but based on
the fact that the exposures are already credit impaired.
Model-based calculation of changes in credit risk
For exposures not impairment tested on an individual
basis, a statistical model is used for calculating impairment
losses. The provisions are calculated as the exposure at
default times the change in probability of default (PD) times
the loss given default. In stage 3 the expected loss is
calculated based on the actual probability of default.
Changes in credit risk are measured based on a
distribution of loans and receivables into three groups
depending on the stage of credit deterioration:
•
Stage 1 includes loans and receivables where
management has assessed that there has not been
a significant increase in credit risk since initial
recognition. The assessment covers the coming 12
months’ expected loss.
•
Stage 2 includes loans and receivables with a
significant increase in credit risk, but which are not
credit impaired. The provision is based on the
lifetime expected loss.
In addition, customers with forbearance measures
and customers with payments more than 30 days
past due are also transferred to stage 2, unless
already identified as credit impaired (stage 3). There
has been a significant increase in credit risk in the
following situations:
o
An increase in PD of 100% for the expected
maturity for the exposure and an increase in the
12-month PD of 0.5% point for exposures when
the 12-month PD at initial recognition was less
than 1%.
o
An increase in PD of 100% for the expected
maturity for the exposure or an increase in the
12-month PD of 2% points for exposures when
the 12-month PD at initial recognition was 1% or
higher.
•
Stage 3 includes credit-impaired loans and
receivables.
When calculating the expected loss, the calculation is
based on probability-weighted forward-looking information.
Nordea Kredit applies three macroeconomic scenarios to
address the non-linearity in expected credit losses. The
different scenarios are used to adjust the relevant
parameters for calculating expected losses and a
probability-weighted average of the expected losses under
each scenario is recognised as a provision.
Besides the model-based impairments, management
judgements are made to include impairments related to
risks that are not captured by the impairment model.
Assets held temporarily
At Nordea Kredit the item “Assets held temporarily”
consists of repossessed properties.
Assets taken over are measured at the lower of the
carrying amount at the time of classification and the fair
value less expected costs to sell. Any change in value is
presented in the income statement under “Impairment
losses on loans and receivables”.
10.
The item “Tax” in the income statement comprises current
and deferred income tax. The tax expense is recognised in
the income statement.
Current tax is the expected tax expense on the taxable
income for the year, using tax rates enacted at the
reporting date, and any adjustment to tax payable in
respect of previous years.
20
Deferred tax assets and liabilities are recognised, using the
balance sheet method, for temporary differences between
the carrying amounts of assets and liabilities for financial
reporting purposes and the amounts used for taxation
purposes. Deferred tax assets are recognised for the carry
forward of unused tax losses.
Deferred tax is measured at the tax rates that are expected
to be applied to the temporary differences when they
reverse, based on the laws that have been enacted or
substantively enacted at the reporting date. Deferred tax
assets and liabilities are not discounted. A deferred tax
asset is recognised only to the extent that it is probable that
future taxable profits will be available against which the
temporary differences, tax losses carry forward and unused
tax credits can be utilised. Deferred tax assets are
reviewed at each reporting date and are reduced to the
extent that it is no longer probable that the related tax
benefit will be realised.
Current tax assets and current tax liabilities are offset when
the legal right to offset exists and Nordea Kredit intends to
either settle the tax asset and the tax liability net or to
recover the asset and settle the liability simultaneously.
Deferred tax assets and deferred tax liabilities are generally
offset if there is a legally enforceable right to offset current
tax assets and current tax liabilities.
11.
All forms of consideration given by Nordea Kredit to its
employees as compensation for services performed are
employee benefits. Short-term benefits are to be settled
within 12 months after the reporting period when the
services have been performed. Post-employment benefits
are benefits payable after the termination of the
employment. Termination benefits normally arise if an
employment is terminated before the normal retirement
date, or if an employee accepts an offer of voluntary
redundancy.
Short-term benefits
Short-term benefits consist mainly of fixed and variable
salary. Both fixed and variable salaries are expensed in the
period when the employees have performed services to
Nordea Kredit. More information can be found in Note 5
“Staff and administrative expenses”.
Post-employment benefits
Pension plans
All pensions at Nordea Kredit are based on defined
contribution arrangements that hold no pension liability for
Nordea Kredit. Nordea Kredit also contributes to public
pension systems.
12.
Other reserves
Other reserves comprise income and expenses, net after
tax effects which are reported in equity through other
comprehensive income. These reserves include reserve for
Nordea Kredit’s share of earnings in associated
undertakings under the equity method.
Retained earnings
Retained earnings comprise undistributed profits from
previous years.
13.
Nordea Kredit defines related parties as
•
the parent company Nordea Bank Abp
•
other undertakings of the Nordea Group
•
associated undertakings
•
members of the Board of Directors and the Executive
Management
•
members of the parent company’s Board of Directors
and Executive Management
•
other related parties.
All transactions with related parties are made on an arm’s
length basis.
Other undertakings of the Nordea Group
Other undertakings of the Nordea Group consist of
subsidiaries of Nordea Bank Abp.
Intragroup transactions between legal entities are
performed according to the arm’s length principle in
compliance with the Danish Financial Supervisory Authority
transfer pricing requirements.
Associated undertakings
Further information on the associated undertakings is found
in Note 12 “Investment in associated undertaking”.
Members of the Board of Directors and the Executive
Management
For information about compensation, pensions and other
transactions with members of the Board of Directors and
the Executive Management, see Note 5 “Staff and
administrative expenses”.
Other related parties
Other related parties comprise close family members of
members of the Board of Directors and the Executive
Management. Other related parties also include companies
controlled by members of the Board of Directors and the
Executive Management of Nordea Kredit as well as
companies controlled by close family members of the
members of the Board of Directors and the Executive
Management.
Information concerning transactions between Nordea Kredit
and other related parties is found in Note 22 “Related-party
transactions”.
21
Note 2
Net interest income
DKKm
2024
2023
Interest income
Receivables from credit institutions and central banks
1,129
1,007
Loans and receivables at fair value
9,565
8,560
Administration margins
3,261
3,412
Other interest income
8
8
Total interest income
13,963
12,987
Interest expenses
Debt to credit institutions and central banks
-331
-316
Bonds in issue at fair value
-9,584
-8,539
Subordinated debt
-95
-89
Other interest expenses
0
-
Total interest expenses
-10,010
-8,944
Net interest income
3,953
4,043
Note 3
Net fee and commission income
DKKm
2024
2023
Loan processing fees
75
90
Brokerage
48
57
Refinancing fees and pay-out fees
226
218
Other fee and commission income
25
55
Fee and commission income
375
420
Guarantee commissions etc. payable to Nordea Bank
-1,021
-1,017
Brokerage payable to Nordea Bank
-45
-54
Other fee and commission expenses
-120
-123
Fee and commission expenses
-1,185
-1,194
Net fee and commission income
-811
-774
Note 4
Value adjustments
DKKm
2024
2023
Mortgage loans
11,489
20,290
Bonds
0
0
Foreign exchange gains/losses
0
0
Interest rate derivatives
-4
-3
Bonds in issue
1
-11,494
-20,318
Total
-9
-30
1
22
Note 5
Staff and administrative expenses
DKKm
2024
2023
Salaries and remuneration (specification below)
-78
-87
Pension costs (specification below)
-8
-9
Social insurance contributions
-15
-16
Administrative expenses
-1,518
-1,572
Total
-1,620
-1,685
Average number of employees
95
108
DKKm
2024
2023
Salaries and remuneration
1
To the Board of Directors:
- Board and Audit Committee fee
0
0
To the Executive Management:
- Fixed salary and benefits
-4
-4
- Performance-related compensation
2
-2
-2
To the employees that have significant influence on Nordea Kredit’s risk profile:
- Fixed salary and benefits
-5
-4
- Performance-related compensation
-
-
Total
-11
-11
To other employees
-67
-76
Total
-78
-87
1
2
DKKm
2024
2023
Pension costs
Defined contribution plans:
- Executive Management
-1
-1
- Employees that have significant influence on Nordea Kredit’s risk profile
-1
-1
- Other employees
-7
-8
Total
-8
-9
Compensation including pension
Board of Directors
1
0
0
Executive Management
2
-6
-7
Employees that have significant influence on Nordea Kredit’s risk profile
3
-5
-5
Total
-12
-12
1
2
3
Nordea Incentive Programme (NIP 2024) for the executive managers of Nordea Kredit has a one-year performance period and includes pre-determined
performance goals and targets at Group, business area/Group function (BA/GF) and individual level. The impact on long-term results was considered when
determining the targets.
Performance goals at Group level included financial goals measuring return on equity, income and cost/income ratio as well as non-financial goals measuring
employee engagement, customer focus and ESG goals which support Nordea in fulfilling sustainability and climate objectives. BA/GF goals included BA/GF-
specific financial and non-financial goals. At individual level, performance was measured in relation to the individually agreed goals and targets including risk,
compliance and conduct. The weighting of Group, BA/GF and individual goals is determined individually. The overall ambition for 2024 was to deliver on
Nordea’s strategic priorities. Any awards were determined based on achievement in relation to the agreed goals and targets following appropriate risk
adjustments.
The outcome from NIP 2024 will be paid in equal portions of cash and Nordea shares, and will be subject to forfeiture clauses. 40% of the confirmed outcome
of the NIP 2024 will be delivered in equal portions of cash and Nordea shares in 2025. The remaining 60% of NIP 2024 outcome is deferred for annual pro
rata delivery over a five-year period, meaning that a significant portion of the outcome remains to be delivered at the time of the award. No dividends are paid
during the deferral period. Nordea shares will be subject to 12 months' retention when delivered to the executive managers. The maximum outcome of the
NIP 2024 was 70% of annual fixed base salary (but the actual outcome can never exceed 50% of fixed remuneration).
The estimated expense for the 2024 NIP is recognised in the income statement for 2024.
23
Note 6
Impairment losses on loans and receivables
DKKm
2024
2023
Stage 1
New and increased impairment charges
-22
-5
Reversals of impairment charges
6
3
Impairment losses on loans and receivables, non-credit impaired
-16
-2
Stage 2
New and increased impairment charges
-87
-160
Reversals of impairment charges
93
155
Impairment losses on loans and receivables, non-credit impaired
6
-4
Stage 3, credit impaired
Realised loan losses
-23
-18
Decrease in impairment charges to cover realised loan losses
19
13
Recoveries on previous realised loan losses
2
3
New and increased impairment charges
-173
-51
Reversals of impairment charges
97
40
Impairment losses on loans and receivables, credit impaired
-77
-13
Impairment losses on loans and receivables
-86
-19
Note 7
Profit from equity investment in associated undertaking
DKKm
2024
2023
Profit from equity investment in associated undertaking
-1
1
Total
-1
1
Note 8
Tax
Income tax expense
DKKm
2024
2023
Current tax
-371
-387
Deferred tax
3
0
Adjustment relating to prior years
0
1
Total
-369
-386
Profit before tax
1,428
1,535
Tax calculated at a tax rate of 26%/25.2%
-371
-387
Tax-exempt income
3
0
Non-deductible expenses
0
0
Adjustment related to prior years
0
1
Tax charge
-369
-386
Average effective tax rate
25.8%
25.1%
Deferred tax
Deferred tax assets
Deferred tax liabilities
DKKm
2024
2023
2024
2023
Deferred tax related to:
Provisions
5
3
-
-
Total
5
3
-
-
DKKm
2024
2023
Movements in deferred tax assets/liabilities, net are as follows:
Amount at beginning of year (net)
3
3
Deferred tax in the income statement
3
0
Amount at end of year (net)
5
3
Current tax assets
-
76
Current tax liabilities
9
-
Nordea Kredit is jointly taxed with the Danish companies and branches of Nordea. The companies and branches included in the joint taxation have joint and
several unlimited liability for Danish corporation taxes and withholding taxes on dividends and interest. At 31 December 2024, the net taxes receivable from
the Danish Tax Agency by the companies and branches included in the joint taxation amounted to DKK 392m (net taxes receivable DKK 232m). Any
subsequent corrections of the taxable income subject to joint taxation or withholding taxes on dividends etc. may entail that the companies’ assets/liabilities
will increase. The Danish Nordea entities as a whole are not liable to others.
In terms of payroll tax and VAT, Nordea Kredit is registered jointly with Nordea Danmark, filial af Nordea Bank Abp, Finland and with the majority of the
Danish subsidiary undertakings of Nordea and these companies are jointly and severally liable for such taxes.
24
Note 9
Commitments with the Board of Directors and the Executive Management
Loans for the members of Nordea Kredit’s Executive Management and Board of Directors and related parties:
DKKm
31 Dec 2024
31 Dec 2023
Loans etc.
Executive Management
-
-
Board of Directors
19
22
Interest income on these loans to members of Nordea Kredit’s Executive Management and Board of Directors amounted to DKK 0.2m (DKK 0.5m) at end-2024.
Loans to members of Nordea Kredit’s Executive Management and Board of Directors consist of mortgage loans on terms based on market conditions. At the end of
2024 interest on the mortgage loans was payable at the rate of -0.1–2.3% of which the administration fee was 0.5–1.2% following normal customer terms. Loans to
related parties of the Executive Management and the Board of Directors are granted on the same terms.
There were no loans to members of the Executive Management and the Board of Directors of the parent company Nordea Bank in the current or previous financial
year.
Nordea Kredit has not pledged any assets or provided other collateral or committed to contingent liabilities on behalf of any member of the Executive Management
and the Board of Directors and related parties.
Note 10
Receivables from credit institutions and central banks
DKKm
31 Dec 2024
31 Dec 2023
Receivables from credit institutions
37,894
31,998
Total
1
37,894
31,998
Of which purchase and resale transactions
36,218
30,226
1
Note 11
Loans and receivables at fair value
DKKm
31 Dec 2024
31 Dec 2023
Mortgage loans, nominal value
Value at beginning of year
421,553
434,277
New loans (gross new lending)
46,468
51,765
Foreign exchange revaluations
2
7
Redemptions and prepayments
-45,431
-56,047
Net new lending for the year
1,038
-4,275
Scheduled principal payments
-9,068
-8,449
Mortgage loan portfolio at end of year
413,523
421,553
Mortgage loans, fair value
Nominal value
413,523
421,553
Adjustment for interest rate risk etc.
-21,708
-30,463
Adjustment for credit risk
-583
-522
Mortgage loan portfolio
391,232
390,568
Mortgage arrears (see below)
128
101
Loans and receivables at fair value
391,360
390,669
25
Note 11
Loans and receivables at fair value, continued
DKKm
Stage 1
1, 2
Stage 2
2
Stage 3
2
Total
Movements of allowance account for credit risk value changes
Balance at 1 January 2024
72
227
223
522
Changes due to origination
-
-
-
-
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
Other changes
-
-
-
-
Balance at 31 December 2024
88
221
275
583
DKKm
Stage 1
1, 2
Stage 2
2
Stage 3
2
Total
Movements of allowance account for credit risk value changes
Balance at 1 January 2023
70
223
228
520
Changes due to origination
-
-
-
-
Transfer between stages
0
11
16
28
Changes due to changes in credit risk (net)
3
8
7
18
Changes due to repayments
-1
-15
-14
-30
Write-off through decrease in allowance account
-
-
-13
-13
Other changes
-
-
0
0
Balance at 31 December 2023
72
227
223
522
1
2
Individually assessed loans and receivables at fair value in stage 3 with no adjustment for credit risk due to full coverage from the value of the mortgaged
property and the first loss guarantee from Nordea Bank amount to DKK 1bn (DKK 1bn).
DKKm
31 Dec 2024
31 Dec 2023
Mortgage arrears
Mortgage arrears before provisions
101
80
Execution levied against debtors’ properties before provisions
27
21
Total
128
101
Mortgage arrears mid-January following year
54
43
DKKm
31 Dec 2024
31 Dec 2023
Age distribution of mortgage loans in arrears before provisions
More than 3 months and up to 6 months
666
551
More than 6 months and up to 1 year
228
178
More than 1 year
350
259
Total
1,244
987
Percentage
31 Dec 2024
31 Dec 2023
Mortgage loan portfolio by property category (nominal value)
Owner-occupied dwellings
65
66
Holiday homes
4
4
Subsidised housing
0
0
Private rental property
13
12
Commercial property
3
3
Office and retail property
7
7
Agricultural property etc.
8
8
Property for social, cultural and educational purposes
0
0
Other property
0
0
Total
100
100
For additional information on credit risks see Note 26.
26
Note 12
Investment in associated undertaking
DKKm
31 Dec 2024
31 Dec 2023
Acquisition value at beginning of year
1
1
Purchase/sales during the year
-
0
Acquisition value at end of year
1
1
Revaluation at beginning of year
21
23
Revaluation during the year
-1
-2
Total revaluation at end of year
20
21
Total
21
22
Financial information as of the latest public financial statements:
Reporting
date
Company
name
Domicile
Business activity
Voting power of
holding (%)
1
Equity (DKKm)
Net profit for the
year (DKKm)
31 Dec 2023
e-nettet A/S
Copenhagen
Development of software solutions for
the financial industry
17
124
0
31 Dec 2022
e-nettet A/S
Copenhagen
Development of software solutions for
the financial industry
17
124
2
1
Note 13
Assets held temporarily
DKKm
31 Dec 2024
31 Dec 2023
Repossessed properties
1
5
Total
1
5
Note 14
Other assets
DKKm
31 Dec 2024
31 Dec 2023
Interest receivable
53
33
Derivatives
46
51
Other assets
1
244
54
Total
343
138
1
Note 15
Debt to credit institutions and central banks
DKKm
31 Dec 2024
31 Dec 2023
Debt to credit institutions
8,955
8,117
Total
1
8,955
8,117
Of which sale and repurchase transactions
2,205
2,039
Of which senior non-preferred loan
2
6,750
3,750
1
2
27
Note 16
Bonds in issue at fair value
DKKm
31 Dec 2024
31 Dec 2023
Bonds in issue at beginning of year (nominal value)
431,161
445,133
Bonds issued during the year
127,548
122,133
Exchange differences
2
7
Scheduled payments and notified prepayments
-30,678
-35,064
Redemptions and other prepayments
-99,853
-101,048
Bonds in issue at end of year at nominal value
428,180
431,161
Adjustment at fair value
-21,820
-30,650
Own bonds at fair value offset
-5,426
-6,156
Bonds in issue at end of year at fair value
400,934
394,356
Of which pre-issued (nominal value)
2,240
2,060
Drawn for redemption at next payment date (nominal value)
7,017
2,045
Changes in fair value of financial liabilities attributable to changes in credit risk
The financial liabilities designated at fair value through profit and loss are bonds issued, DKK 401bn (DKK 394bn). For the bonds issued a change in the liability’s
credit risk and price will have a corresponding effect on the value of the loan.
The fair value of bonds issued increased in 2024 by approximately DKK 0.3bn (increase of approximately DKK 0.7bn) due to changes in own credit risk. The
cumulative change since designation was a decrease of approximately DKK 3.3bn (decrease of approximately DKK 3.6bn). The calculation method of the estimated
fair value changes attributable to changes in market conditions is based on relevant benchmark interest rates, which are the average yield on Danish and German
government bonds and for adjustable rates, the swap rate. The calculation method is subject to uncertainty related to a number of assumptions and estimates.
Note 17
Other liabilities
DKKm
31 Dec 2024
31 Dec 2023
Interest payable on bonds in issue
2,816
2,760
Other interest and commissions payable
46
489
Other
309
308
Total
3,171
3,557
Note 18
Subordinated debt
DKKm
31 Dec 2024
31 Dec 2023
Other subordinated debt
1,550
1,550
Total
1
1,550
1,550
Interest
-95
-89
Cost of increase in and repayments of subordinated debt
-
-
Total
-95
-89
1
Subordinated debt is subordinated to other liabilities.
Year of issue/
maturity
Call date
Nominal value
DKKm
Carrying
amount DKKm
Interest rate (coupon)
2020/2030
31 March 2025
1,550
1,550
Cibor 3M + interest rate premium
2.36%
Subordinated debt is subordinated to other liabilities.
Pursuant to the Danish Financial Business Act repayment of subordinated debt may neither take place at the initiative of the lender nor without the approval of the
Danish Financial Supervisory Authority.
In accordance with an approval from Danish Financial Supervisory Authority, Nordea Kredit will repay the subordinated loan of DKK 1.55bn on 31 March 2025.
Before the end of March 2025, Nordea Kredit will issue a new Tier 2 capital instrument in the form of a subordinated loan of DKK 1.55bn provided by Nordea Bank
Abp.
28
Note 19
Capital adequacy
Summary of items included in own funds
DKKm
31 Dec 2024
31 Dec 2023
Calculation of own funds
Equity
22,267
22,356
Proposed/actual dividend
-1,059
-1,149
Common equity tier 1 capital before regulatory adjustments
21,208
21,207
IRB provisions shortfall (-)
-924
-280
Other items, net
-32
-273
Total regulatory adjustments to common equity tier 1 capital
-956
-553
Common equity tier 1 capital (net after deduction)
20,252
20,654
Tier 1 capital (net after deduction)
20,252
20,654
Tier 2 capital before regulatory adjustments
1,550
1,550
IRB provisions excess (+)
-
3
Total regulatory adjustments to tier 2 capital
-
3
Tier 2 capital
1,550
1,553
Own funds (net after deduction)
21,802
22,206
Minimum capital requirement and risk exposure amount (REA)
31 Dec
31 Dec
31 Dec
31 Dec
2024
2024
2023
2023
DKKm
Minimum
capital
requirement
Minimum
capital
requirement
Credit risk
7,704
96,306
5,439
67,990
50
628
1
16
IRB
6,591
82,382
4,950
61,873
- corporate
1,818
22,720
1,870
23,376
1,818
22,720
1,870
23,376
- retail
4,741
59,259
3,055
38,181
4,686
58,571
3,026
37,821
55
688
29
361
- other
32
402
25
315
Standardised
1,114
13,924
489
6,117
- central governments or central banks
1
13
1
6
- institutions
1,106
13,825
482
6,019
- secured by mortgages on immovable properties
5
65
6
70
- equity
2
21
2
22
Market risk
-
-
-
-
Operational risk
373
4,658
352
4,400
Standardised
373
4,658
352
4,400
Additional risk exposure amount related to Swedish RW floor due to Article 458 CRR
-
-
2
30
Total
8,077
100,964
5,794
72,419
29
Note 19
Capital adequacy, continued
31 Dec
31 Dec
Capital ratios (%)
2024
2023
Common equity tier 1 capital ratio
20.1
28.5
Tier 1 capital ratio
20.1
28.5
Total capital ratio
21.6
30.7
31 Dec
31 Dec
Leverage ratio
1
2024
2023
Tier 1 capital, DKKm
20,252
20,654
Leverage ratio exposure, DKKm
436,789
429,910
Leverage ratio, %
4.6
4.8
Note 20
Debt buffer
Composition of instruments that are applicable for meeting the debt buffer requirement
Instrument, DKKm
Type
Curr.
31 Dec
2024
31 Dec
2023
Issued
Maturity
Call
Excess CET1 capital
1
CET1 capital
DKK
2,564
7,756
-
-
-
10Y subordinated unsecured loan, provided by Nordea Bank
Tier 2 capital
DKK
1,550
1,550
31/03/2020
31/03/2030
31/03/2025
5Y senior non-preferred loan, provided by Nordea Bank
Unsecured senior debt
DKK
2,250
2,250
20/08/2021
20/08/2026
-
5Y senior non-preferred loan, provided by Nordea Bank
Unsecured senior debt
DKK
1,500
1,500
31/03/2022
31/03/2027
-
5Y senior non-preferred loan, provided by Nordea Bank
Unsecured senior debt
DKK
3,000
-
23/08/2024
23/08/2029
-
Total
10,864
13,056
1
Debt buffer requirement
DKKm
31 Dec
2024
31 Dec
2023
Debt buffer requirement
7,827
7,813
Note 21
Maturity analysis for selected assets and liabilities
Remaining maturity
31 Dec 2024, DKKm
Payable on
demand
Maximum 3
months
3–12
months
1-5 years
More than 5
years
Total
Receivables from credit institutions and central banks
1,675
36,218
-
-
-
37,894
Loans and receivables at fair value
101
2,050
6,460
42,767
339,982
391,360
Debt to credit institutions and central banks
-
2,205
-
6,750
-
8,955
Bonds in issue at fair value
-
7,275
59,923
186,656
147,079
400,934
31 Dec 2023, DKKm
Payable on
demand
Maximum 3
months
3–12
months
1-5 years
More than 5
years
Total
Receivables from credit institutions and central banks
1,772
30,226
-
-
-
31,998
Loans and receivables at fair value
80
2,113
6,773
42,587
339,115
390,669
Debt to credit institutions and central banks
2,328
2,039
-
3,750
-
8,117
Bonds in issue at fair value
-
7,192
59,312
182,605
145,247
394,356
Mortgage loans are match-funded and are undertaken on the basis of the specific balance principle. Most of the loans are long-term loans
and therefore categorised as >5 years in the maturity analysis. Some loans, for example ARMs, are funded by bonds with a shorter
maturity than the loans. These loans need to be refinanced during their term to maturity. This represents a refinancing risk if Nordea
Kredit is unable to sell the adequate volume of bonds to refinance the loans.
30
Note 22
Related-party transactions
The information below is presented from a Nordea Kredit perspective, meaning that the information shows the effect from related-
party transactions on the Nordea Kredit figures.
DKKm
2024
2023
Operating items
Interest income:
1,129
1,007
Interest expenses:
-331
-316
-95
-89
Fee and commission income:
1
1
Fee and commission expenses:
-1,021
-1,017
-45
-54
Value adjustments:
-4
-3
Other operating income
0
0
Staff and administrative expenses:
-42
-45
-1,407
-1,448
-10
-13
-3
-3
Profit from equity investment in associated undertaking
-1
1
Assets
Receivables from credit institutions
37,894
31,998
Interest receivable from credit institutions
44
20
Investment in associated undertaking
21
22
Other assets
89
51
- of which derivatives
46
51
Debt
Debt to credit institutions
8,955
8,117
Bonds in issue at fair value
9,328
12,191
Interest payable
46
29
IT expenses payable
11
11
Other liabilities
8
460
Subordinated debt
1,550
1,550
Guarantees
Nordea Bank provides on an ongoing basis guarantees to cover the first loss of the principal of mortgage
loans
115,033
115,372
Nordea Bank has provided guarantees relating to registration with the Land Registry, loans disbursed
ahead of building start as well as other statutory guarantees
7,293
6,979
The main part of the transactions is between Nordea Kredit and Nordea Bank.
The mortgage loans originated by Nordea Kredit are disbursed through Nordea Bank.
Nordea Bank acted as an intermediary for a number of securities and financial instruments transactions during the year. Intragroup
transactions are provided on market terms.
A Liquidity Transfer and Support Agreement has been signed between Nordea Bank Abp and the specialised mortgage lending
entities being Nordea Kredit Realkreditaktieselskab, Nordea Eiendomskreditt AS, Nordea Hypotek AB and Nordea Mortgage Bank Plc.
The agreement ensures that Nordea Kredit has sufficient cash resources to comply with the liquidity coverage ratio
(LCR) requirement on an ongoing basis and to meet its payment obligations in respect of outstanding covered bonds in a timely
manner. Nordea Kredit is thereby also required to provide liquidity support to the other entities in the agreement, however only to
the extent that it would not in any way result in Nordea Kredit breaching any of its own central obligations.
As part of the normal business other entities in the Nordea Group on an ongoing basis held a portfolio of bonds issued by
Nordea Kredit.
31
Note 22
Related-party transactions, continued
Compensation and loans to Board of Directors and Executive Management
Compensation to the Board of Directors and the Executive Management is specified in Note 5.
Loans to the Board of Directors and the Executive Management and related parties are specified in Note 9.
Related parties
Related parties are the parent company, other Nordea companies, associated undertakings and other related parties. Other related
parties are companies controlled by the Board of Directors and the Executive Management of Nordea Kredit as well as companies
controlled by related parties to the Board of Directors and the Executive Management.
Note 23
Segment reporting
Nordea Kredit’s activity consists of sale of mortgage loans in Denmark.
Note 24
The Danish Financial Supervisory Authority’s ratio system
2024
2023
2022
2021
2020
Total capital ratio
1
21.6
30.7
30.5
26.6
29.6
Tier 1 capital ratio
1
20.1
28.5
28.4
24.7
25.0
Pre-tax return on equity, %
6.4
6.9
6.2
6.3
7.3
Post-tax return on equity, %
4.7
5.1
4.8
4.9
5.7
Income/cost ratio
1.8
1.9
1.9
2.1
2.5
Foreign exchange exposure as % of tier 1 capital
1.1
1.0
1.3
1.1
1.6
Loans/equity ratio
17.6
17.5
17.3
19.4
18.6
Lending growth for the year, %
-1.9
-2.9
-0.5
6.6
2.7
Impairment ratio for the year
0.0
0.0
0.0
0
0.0
Return on assets, %
0.2
0.3
0.2
0.2
0.3
1
The key figures have been computed in accordance with the Danish Financial Supervisory Autority's definitions, see the Executive Order on Financial
Reports for Credit Institutions and Investment Firms etc.
32
Note 25
Series financial statements
DKKm
Note
Capital centre 2
Capital centre 1
(General
Capital Centre)
Total
Income statement for 2024
Income from lending
3,262
6
3,268
Interest, net
644
35
678
Administrative expenses, net
-2,306
-127
-2,433
Provisions for loan losses
-79
-8
-86
Tax
-381
12
-369
Total
1,140
-82
1,059
Balance sheet, 31 Dec 2024
Assets
Mortgage loans
390,905
460
391,365
Other assets
49,442
1,531
50,974
Total assets
1
440,347
1,992
442,339
Liabilities and equity
Bonds in issue
2
408,462
714
409,176
Other liabilities
10,857
39
10,896
Equity
3
21,029
1,238
22,267
Total liabilities and equity
440,347
1,992
442,339
Note 1 Balance sheet, series financial statements
Balance sheet total, Nordea Kredit’s annual financial statements
436,886
Own bonds, not offset in series financial statements
5,426
Accrued interest
27
Balance sheet total, series financial statements
442,339
Note 2 Bonds in issue, series financial statements
Bonds in issue, Nordea Kredit’s annual financial statements
400,934
Own bonds, not offset in series financial statements
5,426
Deferred income
2,816
Bonds in issue, series financial statements
409,176
Note 3 Equity
Movements in capital, net
-
-
-
Background to series financial statements
Pursuant to the Danish Financial Supervisory Authority’s Executive Order no 872 of 20 November 1995 on series financial statements in mortgage credit
institutions, special series financial statements must be prepared for series with series reserve funds.
The series financial statements have been prepared on the basis of Nordea Kredit Realkreditaktieselskab’s annual report for 2024.
Complete series financial statements for the individual series are available from Nordea Kredit.
33
Note 26
Risk and liquidity management
Maintaining risk awareness in the organisation is engrained in Nordea Kredit’s business strategies. Nordea Kredit has
defined clear risk, liquidity and capital management frameworks, including policies and instructions for different risk types,
capital adequacy and capital structure.
Management principles and control
The Board of Directors of Nordea Kredit has the responsibility for limiting and monitoring risk exposures as well as for
approving the setting of target capital ratios and the individual solvency need and deciding on the risk appetite. Risk is
measured and reported according to common principles and policies approved by the Board of Directors of Nordea Kredit.
In accordance with the Danish Financial Business Act, the Board of Directors has established a Board Risk Committee
(BRIC). BRIC assists the Board of Directors in fulfilling its oversight responsibilities concerning the management and
control of risk, risk frameworks as well as controls and processes associated with Nordea Kredit’s operations.
Furthermore, BRIC assesses the identified risk takers in regards to renumeration.
The Executive Management has the responsibility for ensuring that the risk strategy and risk management decided by the
Board of Directors are implemented, that the necessary practical measures are taken and that risks are monitored and
limited.
In accordance with the Danish Executive Order on Management and Control of Banks etc., Nordea Kredit has appointed
a Chief Risk Officer (CRO). The CRO is appointed by the Executive Management of Nordea Kredit and functionally
reports to the Executive Management of Nordea Kredit. The CRO is the overall manager with specific responsibility for the
risk management function at Nordea Kredit – including the responsibility for ensuring that an overall risk assessment is
provided, ensuring coordination of risk control activities and ensuring adequate risk management practice within Nordea
Kredit. The CRO independently reports directly to the Executive Management, BRIC and the Board of Directors of Nordea
Kredit at least on a quarterly basis.
The Charter for the CRO of Nordea Kredit defines the role, responsibilities, tasks and mandate of the CRO and forms part
of Nordea Kredit’s risk management framework. The CRO mainly operates through established functions for risk
management at Nordea such as Group Risk, Group Credit Management and Group Finance.
It is the responsibility of the CRO to ensure that the overall risk at Nordea Kredit is conducted adequately. The CRO must
provide a complete view of the whole range of risks at Nordea Kredit to the relevant governing bodies and ensure that all
risks at Nordea Kredit are monitored.
In accordance with the Danish Executive Order on Management and Control of Banks etc., Nordea Kredit has appointed a
Chief Compliance Officer (CCO). The CCO is appointed by the Executive Management of Nordea Kredit and functionally
reports to the Executive Management of Nordea Kredit. The CCO has the overall functional responsibility for the
compliance function at Nordea Kredit – including the responsibility for monitoring compliance which is based on collecting
information and providing independent assessments of the compliance risks. Furthermore, the compliance function advises
and supports the first line of defence on ways to effectively and efficiently manage compliance obligations. The CCO
independently reports directly to the Executive Management, BRIC and the Board of Directors of Nordea Kredit at least on
a quarterly basis.
The Charter for the CCO of Nordea Kredit defines the role and responsibilities of the CCO and forms part of Nordea
Kredit’s internal control framework. The Nordea Kredit compliance function utilises the functional framework within Group
Compliance. This means that the methodology and standard processes applied by Group Compliance are – to the extent
possible – also applied by Nordea Kredit.
Risk management
Nordea Kredit is exposed to credit risk on borrowers as well as operational risk because of Nordea Kredit’s activities.
Furthermore, Nordea Kredit is exposed to liquidity risk and market risk in the form of interest rate risk and modest currency
risk related to its mortgage loans and the investment of capital.
The reporting of risk is conducted on a daily basis for liquidity risk and market risk and on a quarterly basis for credit risk
and operational risk. Reporting on the risk profile, the risk appetite, capital adequacy – including the individual solvency
need (ISN) – and liquidity adequacy is presented to the Board of Directors, BRIC and the Executive Management on a
quarterly basis.
Additional information on risk and capital management is presented in the Capital and Risk Management Report 2024 in
accordance with the CRR, which is based on the Basel III framework issued by the Basel Committee on Banking
Supervision. The report is available on
34
Note 26
Risk and liquidity management, continued
Credit risk management
The credit approval process follows directives and guidelines for Nordea and Local Governance Rules on Credit Risk for
Nordea Kredit. Within the powers to act granted by the Board of Directors of Nordea Kredit, internal credit risk limits are
approved by credit decision-making bodies on different levels in the Nordea organisation constituting the maximum risk
appetite on the customer in question. The risk categorisation and the exposure of the customer determine at what level
the decision will be made. The customer responsible units take individual credit decisions with a primary focus on the
customer’s creditworthiness based on mandates and instructions from Nordea Kredit. Furthermore, individual credit
decisions for mortgage loans with a primary focus on the property are made within Nordea Kredit.
The assessment and monitoring of credit risks lies with the customer responsible unit. Customers are risk categorised by
a rating or score in accordance with Nordea’s rating and scoring guidelines. The rating and scoring of customers aims to
predict their probability of default and to consequently rank them according to their respective default risk. Rating and
scoring of customers are used as integrated parts of the credit risk management and decision-making process.
Representatives from the credit organisation approve the rating independently.
Credit risk
Credit risk is defined as the potential for loss due to the inability of Nordea Kredit’s customers to repay their loans. If the
customer is unable to repay the loan, Nordea Kredit’s credit risk depends on the value of the property received as collateral and
coverage by the first loss guarantee issued by Nordea Bank. Nordea Kredit’s credit risk is therefore affected by the general price
trends on the property market.
Nordea Kredit’s maximum exposure to credit risk consists of the following balance sheet line items:
Maximum exposure to credit risk
31 Dec
31 Dec
DKKm
2024
2023
Demand deposits with central banks
7,257
7,017
Receivables from credit institutions and central banks
1
37,894
31,998
Loans and receivables at fair value
391,360
390,669
Loans and receivables at amortised cost
0
0
Other asset items
354
231
Guarantees etc.
0
0
Loan commitments
1,857
1,037
Total
438,722
430,952
1
Concentration risk
Nordea Kredit has a well-diversified lending portfolio in respect of single customer groups and industry segments. The
diversification of concentration risks is stipulated in Nordea Kredit’s Risk Appetite framework and limits adverse concentration
risk developments.
Collateral
Mortgage loans are collateralised by the mortgaged properties in accordance with Danish mortgage legislation. The credit risk
is therefore significantly reduced by the value of the mortgaged property. The value of the mortgaged properties is monitored
on a quarterly basis and properties are continuously up for review of the valuation based on criteria decided on a quarterly
basis.
To further reduce the credit risk of Nordea Kredit and to align incentives, loss guarantees are provided by Nordea Bank
covering a significant part of the principal of mortgage loans disbursed. If a customer defaults, the realised loss is calculated
and the guarantee is settled by Nordea Bank. The first loss guarantees amounted to DKK 115,033m (DKK 11 5,372m) at end-
2024. The share of the loans covered by the first loss guarantees was 99% (99%).
Furthermore, in connection with the disbursement of loans, Nordea Bank provides statutory guarantees relating to registration
with the Land Registry. At end-2024 the guarantee amounted to DKK 7,293m (DKK 6,979m).
35
Note 26
Risk and liquidity management, continued
Loan to value
Loan to value (LTV) shows the current ratio between the fair value of a loan and the market value of the mortgaged
property.
The average LTVs on loans for owner-occupied dwellings and holiday homes and for commercial properties remained at
the same level as in 2023, with 52% and 41%, respectively. The average LTV for agricultural properties decreased by 1%
point to 42%.
Mortgage loans by loan to value (LTV) and property category
Owner-occupied
dwellings and holiday
homes
Commercial
properties
Agricultural properties
Total
(%)
2024
2023
2024
2023
2024
2023
2024
2023
0–40%
25%
24%
46%
47%
41%
40%
31%
31%
40–60%
42%
43%
35%
35%
48%
48%
41%
42%
60–80%
28%
27%
18%
16%
10%
11%
24%
23%
>80%
5%
6%
1%
1%
1%
1%
4%
4%
Total fair value, DKKbn
271
270
90
89
31
32
392
391
Weighted average LTV
52%
52%
41%
41%
42%
43%
49%
49%
Further information regarding LTV figures can be found in the quarterly debt investor presentations and the European
Covered Bond Council (ECBC) Harmonised Transparency Template . Both reports are available at
Measurement of changes in credit risk
The change in credit risk is measured as part of the fair value of the mortgage loans. The change in credit risk is measured
based on the impairment rules for loans at amortised cost with relevant fair value adjustments.
All mortgages are tested for changes in underlying credit risk. The mortgage loans are divided into three groups depending
on the stage of credit deterioration. Stage 1 includes mortgage loans where it has been assessed that there has not been a
significant increase in credit risk since the initial recognition of the mortgage loan. Stage 2 includes mortgage loans where
there has been a significant increase in credit risk and stage 3 includes credit-impaired mortgage loans. All mortgage loans
are assessed individually for staging. Mortgage loans in stage 3 are assessed for changes in credit risk either on an
individual basis or by using a statistical model. Mortgage loans in stage 1 and stage 2 are assessed for changes in credit
risk by using a statistical model. Impairment assessment applies three forward-looking and weighted scenarios.
The quality of credit exposures is continuously reviewed throughout the process of identifying and mitigating changes in
credit risk. Weak and credit-impaired mortgage loans are closely monitored and reviewed at least on a quarterly basis
regarding a possible need for provisions.
Calculation of provisions regarding changes in credit risk
A change in the credit risk is recognised as a provision if based on credit events and observable data, a negative impact is likely
on the customer’s expected future cash flow to the extent that full repayment is unlikely (pledged properties and guarantees
received considered). The size of the provision is equal to the estimated loss, which is the difference between the carrying
amount of the outstanding exposure and the discounted value of the expected future cash flow, including the value of pledged
properties and guarantees received.
The calculation of provisions regarding changes in credit risk is executed quarterly. One important driver for provisions is the
trigger for transferring mortgage loans from stage 1 to stage 2. For mortgage loans recognised from 1 January 2018 changes to
the lifetime probability of default are used as the trigger. In addition, customers with forbearance measures and customers with
payments more than 30 days past due are also transferred to stage 2. In stage 1, the provisions are based on changes to the
12-month expected loss. In stage 2, the provisions are based on changes to the lifetime expected loss except from weak stage
2 loans. For weak stage 2 loans and loans in stage 3, the provisions equal the lifetime expected loss. The output is
complemented with an analysis process to ensure adequate provisioning.
36
Note 26
Risk and liquidity management, continued
Credit impaired (stage 3)
Customers with exposures that are past due more than 90 days, customers in bankruptcy or considered unlikely to pay
are regarded as credit impaired. If a customer recovers from being credit impaired, the customer is seen as cured.
Typically, this situation occurs if the customer succeeds in ensuring a balance between income and expenses. In order to
be cured the recovery should include the customer’s total liabilities with Nordea. The customer will be kept in stage 3 for a
penalty period to ensure sufficient recovery.
Forbearance
Forbearance refers to eased terms or restructuring of credit terms and conditions due to the borrower experiencing financial
difficulties. The intention of granting forbearance for a limited period of time is to ensure full repayment of the outstanding debt.
Examples of eased terms are changes in the amortisation profile or reduced administration margins. Forbearance is undertaken
on an individual basis, according to internal guidelines, and followed by impairment testing. Loan loss provisions are recognised
if necessary. Customers with forbearance measures are transferred to stage 2, unless already identified as credit impaired
(stage 3).
Sensitivity
The loan loss provisions are sensitive to rating migration even if triggers for a significant increase in credit risk or credit-impaired
loans are not reached. The impact on provisions from a one-notch downgrade on all exposures will be an increase in provisions
of DKK 103m (DKK 89m at end-2023). It includes both the impact of the higher risk for all exposures and the impact of
transferring exposures that reach the trigger from stage 1 to stage 2. It also includes the impact from the exposures with one
rating grade above default becoming default. This figure is based on calculations with the statistical model rather than individual
estimates, as would be the case in reality for part of the defaulted loans.
Sensitivities
31 Dec
31 Dec
DKKm
2024
2023
Recognised provisions
583
522
Impact on provisions if one notch downgrade
103
89
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. At
the end of 2024 the scenarios were weighted into the final expected credit losses (ECL) as follows: baseline 60%, adverse 20%
and favourable 20% (baseline 50%, adverse 40% and favourable 10% at the end of 2023).
The macroeconomic scenarios reflect Nordea’s view of how the Danish economy might develop in light of continued geopolitical
uncertainty, weak growth in major European economies and lingering effects of the surge in inflation and energy prices seen in
recent years. When developing the scenarios and determining the relative weighting between the scenarios, Nordea takes into
account projections made by the central bank and Nordea Research.
The baseline scenario foresees a soft landing in the Danish economy with unemployment largely unchanged in the coming
years. Denmark will see relatively high growth driven by the pharmaceutical sector and the reopening of North Sea oil and gas
fields. The stronger growth outlook is supported by weaker inflation and lower interest rates. A modest recovery in home prices
is expected to continue over 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 scenario.
Nordea’s two alternative macroeconomic scenarios cover a range of plausible risk factors which may cause growth to deviate
from the baseline scenario. A further escalation of the conflict in the Middle East may lead to a significant rise in energy prices
well into 2025. This could trigger a European and a 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 as
temporary and continue cutting interest rates, with rates moving lower than in the baseline scenario in 2026. Normalising
inflation and lower interest rates, on the other hand, may lead to a stronger recovery than assumed in the baseline scenario.
37
Note 26
Risk and liquidity management, continued
The table below presents the applied scenarios and recognised loan loss provisions.
Scenarios and provisions 2024
2025
2026
2027
Probability
weight
Model-based
provisions,
DKKm
Adjustment,
model-based
provisions,
DKKm
Individual
provisions,
DKKm
Total
provisions,
DKKm
Favourable scenario
GDP growth, %
3.6%
1.8%
1.7%
20%
Unemployment, %
2.5%
2.5%
2.4%
Home prices, %
5.0%
3.8%
2.0%
Baseline scenario
GDP growth, %
2.3%
1.5%
1.5%
60%
242
306
1
35
583
Unemployment, %
2.9%
2.9%
2.9%
Home prices, %
3.2%
3.2%
2.0%
Adverse scenario
GDP growth, %
-0.7%
0.8%
1.5%
20%
Unemployment, %
4.6%
4.7%
4.7%
Home prices, %
-4.3%
1.1%
2.0%
1
Scenarios and provisions 2023
2024
2025
2026
Probability
weight
Model-based
provisions,
DKKm
Adjustment,
model-based
provisions,
DKKm
Individual
provisions,
DKKm
Total
provisions,
DKKm
Favourable scenario
GDP growth, %
2.1%
1.7%
1.7%
10%
Unemployment, %
2.8%
2.8%
2.8%
Home prices, %
1.9%
2.8%
3.2%
Baseline scenario
GDP growth, %
1.0%
1.3%
1.4%
50%
188
307
1
27
522
Unemployment, %
3.2%
3.4%
3.4%
Home prices, %
0.7%
2.1%
2.5%
Adverse scenario
GDP growth, %
-0.9%
0.3%
0.7%
40%
Unemployment, %
3.9%
4.5%
4.7%
Home prices, %
-2.6%
-0.1%
0.8%
1
The sensitivity of the applied scenarios to the model-calculated ECL reflects Nordea Kredit’s business model and credit
risk management. The high collateralisation and additional first loss guarantee from Nordea Bank are to a high extent
expected to absorb losses from deterioration in credit quality. Nordea Kredit has a management judgement to cover credit
losses not captured by the impairment model of DKK 256m. Furthermore, Nordea Kredit has a management judgement for
expected losses on loans in stage 1 covering rating migration not yet identified in the rating/scoring models of DKK 46m
and a management judgement for expected losses on loans to agricultural customers of DKK 4m.
Rating and scoring distribution
One way of assessing credit quality is through analysis of the distribution across rating grades for rated corporate customers
as well as risk grades for scored household and small business customers, that is, retail exposures.
The overall credit quality is solid with strongly rated customers.
The average credit quality deteriorated in 2024 as 8% of corporate customers migrated upwards (2023: 29%) while 11% (2023:
19%) were downrated. 96% (96%) of the corporate exposure was rated 4- or higher with an average rating for the portfolio of 5-.
Retail customers showed a distribution that was biased towards the higher risk grades. 97% (98%) of the retail exposure was
rated C- or higher, which indicates a probability of default of 1% or lower. Defaulted loans are not included in the rating/scoring
distributions.
During 2024 Nordea Kredit implemented new IRB retail models, improving risk parameter calculations, which slightly shifted the
scoring composition downwards, while the underlying credit quality did not deteriorate.
38
Note 26
Risk and liquidity management, continued
1
Standard & Poor’s. Rating grades 2+ to 1- are considered as weak and require special attention.
2
The table below presents loans and receivables at fair value (gross carrying amount) broken down by rating/scoring
distributions plus stages 1, 2 and 3:
DKKm, 31 Dec 2024
Stage 1
Stage 2
Stage 3
Total
6 / A
166
0
0
166
5 / B
125
0
0
125
4 / C
79
1
0
80
3 / D
10
2
0
12
2 / E
1
3
0
4
1 / F
0
1
0
1
0 (credit impaired)
0
0
3
3
Unrated customers
0
0
0
0
Total
381
7
4
392
DKKm, 31 Dec 2023
Stage 1
Stage 2
Stage 3
Total
6 / A
237
0
0
238
5 / B
75
0
0
76
4 / C
61
1
0
62
3 / D
4
2
0
6
2 / E
0
3
0
3
1 / F
0
3
0
3
0 (credit impaired)
0
0
2
3
Unrated customers
0
0
0
0
Total
378
10
3
391
Market and liquidity risks
Market risk is the risk of loss on Nordea Kredit’s positions as a result of changes in market rates and parameters that
affect the market values or net interest income flows. Liquidity risk is the risk that Nordea Kredit can only meet its liquidity
commitments at an unsustainably high price or, ultimately, is unable to meet its obligations as they come due.
The business model of Nordea Kredit is to provide mortgage loans match-funded by covered bond issuance.
Consequently, Nordea Kredit’s market risk exposure is limited to the following three sources: (i) capital and liquidity
investments in reverse repos generate risk to its net interest income (NII) in case of falling interest rates; (ii) adherence to
the specific balance principle generates interest rate risk, primarily from cash flow mismatches stemming from the early
redemption of loans; (iii) the income from administration margins on bonds denominated in euros generates some
currency risk, as the income is not immediately exchanged to Danish kroner.
Nordea Kredit is exposed to liquidity risk from the funding of loans, the refinancing of maturing adjustable-rate mortgage
(ARM) bonds and floating-rate notes (FRN) bonds, as well as the supplementary collateral and statutory
overcollateralisation requirements requirement in the SDRO issuing cover pool (capital centre 2). Furthermore, the credit
risk on borrowers can create a liquidity risk if a borrower cannot pay according to agreed terms, while Nordea Kredit is
obliged to pay the investor.
39
Note 26
Risk and liquidity management, continued
Interest rate risk
In accordance with the Danish Executive Order on Bond Issuance, the Balance Principle and Risk Management adherence to
the specific balance principle stipulates that the interest rate risk resulting from payment differences between incoming
payments on loans and outgoing payments on mortgage bonds must not exceed 1% of own funds, or DKK 218m at end-2024
(2023: DKK 222m). In addition, the interest rate risk on capital and liquidity investments must not exceed 8% of own funds, or
DKK 1,744m (2023: DKK 1,777m).
Nordea Kredit operates with interest rate risk significantly below both of the above-mentioned limits.
Interest rate risk
31 Dec
31 Dec
DKKm
2024
2023
IR risk related to capital and liquidity investments
1
14
13
IR risk related to cash flow mismatches
2
3
1
1
2
Currency risk
At end-2024 the currency risk amounted to DKK 0.3m (2023: DKK 0.3m) with effect on profit before tax and equity and relates
solely to exposures in euros.
Currency risk
DKKm
Total risk
Max
Min
31 Dec 2024
0
0
0
31 Dec 2023
0
0
0
Liquidity coverage ratio (LCR)
The common European LCR requirement for Nordea Kredit is 100% of net liquidity outflows over a 30-calendar day stress
period, as specified by the Delegated Act. In addition, Nordea Kredit has an LCR pillar 2 add-on. This is a Danish liquidity
requirement for all mortgage companies in Denmark and implemented to capture entity-specific liquidity risk. Nordea Kredit
reports both an LCR DA and an LCR including the pillar 2 add-on. The latter will always be the most restrictive and thus binding
requirement. At the end of 2024 the LCR DA was 270% and the LCR including the pillar 2 add-on was 214%.
Operational risk
Operational risk is defined at Nordea as the risk of loss resulting from inadequate or failed internal processes, people and
systems or from external events, and includes legal risk. Operational risk is inherent in all activities within the
organisation, in outsourced activities and in all interactions with external parties.
Nordea Kredit has as its own second line of defence a risk management function (CRO), where operational risk is also
monitored. The flow of risk-related information is presented directly to the Board of Directors and initially passes through
BRIC. The operational risks are monitored through regular risk assessment procedures and systematic quality and risk-
focused management of changes.
Compliance risk
Compliance risk is defined as the risk of failing to comply with applicable laws, regulations, standards, supervisory requirements
and related internal rules governing Nordea Kredit’s activities.
Managing compliance risks is part of management’s responsibilities. The compliance risks are monitored by Nordea Kredit’s
compliance function. The flow of risk-related information is presented directly to the Board of Directors and initially passes
through the Executive Management and BRIC. The compliance risks are monitored through compliance assessment
procedures.
40
Proposed distribution of earnings
According to the company’s balance sheet, the following
amount is available for distribution by the Annual General
Meeting:
The Board of Directors proposes that the retained
earnings including profit for 2024 is distributed as follows:
DKKm
DKKm
Retained earnings
19,471
Retained earnings
19,471
Net profit for the year
1,059
Proposed dividends to the shareholders
1,059
Total
20,530
Total
20,530
The company’s distributable earnings amount to DKK 20,530m. After the proposed distribution of earnings, the company’s
unrestricted shareholders’ equity amounts to DKK 19,471m.
41
Statement by the Board of Directors and the
Executive Management
The Board of Directors and the Executive Management have considered and adopted the annual report of Nordea Kredit
Realkreditaktieselskab for the financial year 2024.
The annual 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 31 December
2024 and of the results of the company’s operations for the financial year 1 January–31 December 2024.
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.
In our opinion, the annual report of Nordea Kredit Realkreditaktieselskab for the financial year 1 January–31 December 2024
identified as nordeakredit-2024-12-31-en.xhtml is prepared, in all material respects, in compliance with the ESEF
Regulation.
We recommend to the Annual General Meeting that the annual report should be adopted.
Copenhagen, 27 March 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)
42
Independent auditors’ reports
To the shareholder of Nordea Kredit Realkreditaktieselskab
Report on the audit of the Financial Statements
Our opinion
In our opinion, the Financial Statements give a true and fair view of the Company’s financial position at 31 December 2024
and of the results of the Company’s operations for the financial year 1 January to 31 December 2024 in accordance with the
Danish Financial Business Act.
Our opinion is consistent with our Auditor’s Long-form Report to the Audit Committee and the Board of Directors.
What we have audited
The Financial Statements of Nordea Kredit Realkreditaktieselskab for the financial year 1 January to 31 December 2024
comprise income statement and statement of comprehensive income, balance sheet, statement of changes in equity, 5-year
overview and notes to the financial statements, including material accounting policy information (“Financial Statements”).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements
applicable in Denmark. Our responsibilities under those standards and requirements are further described in the Auditor’s
responsibilities for the audit of the Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of Nordea Kredit Realkreditaktieselskab in accordance with the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical
requirements applicable in Denmark. We have also fulfilled our other ethical responsibilities in accordance with these
requirements and the IESBA Code.
To the best of our knowledge and belief, prohibited non-audit services referred to in Article 5(1) of Regulation (EU) No
537/2014 were not provided.
Appointment
We were first appointed auditors of Nordea Kredit Realkreditaktieselskab on 27 February 2015 for the financial year 2015.
We have been reappointed annually by shareholder resolution for a total period of uninterrupted engagement of ten years
including the financial year 2024.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
Financial Statements for 2024. These matters were addressed in the context of our audit of the Financial Statements as a
whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
43
Key audit matter
How our audit addressed the key audit matter
Impairment of loans and receivables at fair value
Loans and receivables are measured at fair value. The fair
value of loans and receivables is based on the fair value of the
underlying bonds issued adjusted for changes in the credit risk
on the customers. Changes in the credit risk are measured
based on the impairment rules for loans at amortised cost with
relevant fair value adjustments.
Accounting for loans to customers at fair value is complex and
requires subjective judgements over both the timing of the
recognition of impairment and the estimation of the size of any
such provision for impairment in accordance with the
Accounting Executive Order (“Regnskabsbekendtgørelsen”).
We refer to the accounting policies section 2.
The Company makes provisions for expected losses both on
an individual basis in terms of individual provisions and on a
model-based basis.
As a result of the geopolitical and macroeconomic situation
and outlook for the Company’s customers, Management has
recognised a substantial provision for expected credit losses
based on an accounting estimate (”management judgement”).
The consequences of the geopolitical and macroeconomic
situation and outlook for the Company’s customers are to a
material extent not known and as a result hereof there is an
increased estimation uncertainty related to the size of the
provision for expected losses on loans.
We focused on loan impairment provisions, as the accounting
estimate is by nature complex and influenced by subjectivity
and thus to a large extent associated with estimation
uncertainty.
Important areas within impairment of loans to customers relate
to:
•
with material weaknesses (stage 2), including
completeness of the customer accounts that are included
in the impairment calculation.
•
valuation of collaterals held related to real estate and third-
party guarantees.
•
including Management’s assessment of the model
variables.
•
Management as the variables in the model underlying the
calculation of model-based impairments and individual
provisions including management judgements related to
the impact of the geopolitical and macroeconomic situation
and outlook for the Company’s customers.
The principles for impairments of loans and receivables at fair
value are described in note 1 section 2 Critical accounting
estimates and estimation uncertainty, note 11 Loans and
receivables at fair value to the Financial Statements and note
26 Risk and liquidity management.
We performed risk assessment procedures with the purpose of
achieving an understanding of it-systems, business
procedures and relevant controls regarding measurement of
fair value and the calculation of provisions for expected losses
on loans. In respect of controls, we assessed whether they
were designed and implemented effectively to address the risk
of material misstatement.
For selected controls, on which we planned to rely on, we
tested whether these controls had been performed on a
consistent basis. We assessed and tested relevant internal
controls over:
•
3 and stage 2 with weaknesses)
•
•
•
We performed detailed testing on a sample of loans to
ascertain whether we concur with the risk assessment as
expressed by the internal rating and stage classification.
We tested the impairment calculation on a sample of impaired
loans, including assessment of expected future cash flow, fair
value of collaterals (real estate) and various outcome of the
financial position of the customer (scenarios).
We examined a sample of loans, which had not been
identified by Management as impaired.
We assessed and challenged the appropriateness of the
Company’s validation of the model and relevant parameters in
the model-based impairment model.
We assessed and challenged the basis for the accounting
estimates (“management judgement”) related to the
provisioning for expected losses as a result of the geopolitical
and macroeconomic situation and outlook and other
management judgements.
We also assessed whether the matters that may have an
influence on provisions for expected losses on loans have
been appropriate disclosed.
44
Statement on Management’s Review
Management is responsible for Management’s Review.
Our opinion on the Financial Statements does not cover Management’s Review, and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the Financial Statements, our responsibility is to read Management’s Review and, in doing so,
consider whether Management’s Review is materially inconsistent with the Financial Statements, or our knowledge obtained
in the audit, or otherwise appears to be materially misstated.
Moreover, we considered whether Management’s Review includes the disclosures required by the Danish Financial
Business Act.
Based on the work we have performed, in our view, Management’s Review is in accordance with the Financial Statements
and has been prepared in accordance with the requirements of the Danish Financial Business Act. We did not identify any
material misstatement in Management’s Review.
Management’s responsibilities for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the
Danish Financial Business Act, and for such internal control as Management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the Financial Statements, Management is responsible for assessing the Company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do
so.
Auditor’s responsibilities for the audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the
additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these Financial Statements.
As part of an audit in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional
judgement and maintain professional scepticism throughout the audit. We also:
•
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
•
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal
control.
•
disclosures made by Management.
•
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the Financial Statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the
date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a
going concern.
•
whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and
fair view.
45
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the Financial Statements of the current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter.
Report on compliance with the ESEF Regulation
As part of our audit of the Financial Statements, we performed procedures to express an opinion on whether the annual
report of Nordea Kredit Realkreditaktieselskab for the financial year 1 January to 31 December 2024 with the file name
nordeakredit-2024-12-31-en.xhtml is prepared, in all material respects, in compliance with the Commission Delegated
Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) which includes requirements
related to the preparation of the annual report in XHTML format.
Management is responsible for preparing an annual report that complies with the ESEF Regulation. This responsibility
includes the preparing of the annual report in XHTML format.
Our responsibility is to obtain reasonable assurance on whether the annual report is prepared, in all material respects, in
compliance with the ESEF Regulation based on the evidence we have obtained, and to issue a report that includes our
opinion. The procedures consist of testing whether the annual report is prepared in XHTML format.
In our opinion, the annual report of Nordea Kredit Realkreditaktieselskab for the financial year 1 January to 31 December
2024 with the file name nordeakredit-2024-12-31-en.xhtml is prepared, in all material respects, in compliance with the ESEF
Regulation.
Hellerup, 27 March 2025
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
Business registration no 33 77 12 31
Per Rolf Larssen Peter Nissen
State Authorised Public Accountant State Authorised Public Accountant
mne24822 mne33260
46
Management and Board of Directors of
Nordea Kredit
Board of Directors
Anders Holkmann Olsen (Chair)
Internal assignments:
Country Branch Manager, Nordea Danmark and Group General
Counsel, Asset & Wealth Management and Nordea Danmark
Chair of the Board of Directors of Fionia Asset Company A/S
Chair of the Board of Directors of Ejendomsselskabet Vestre
Stationsvej 7, Odense A/S
Member of the Board of Directors of Nordea Life Holding AB
External assignments:
Member of the Board of Directors of Karl Pedersen og Hustrus
Industrifond
Anne Rømer (Vice Chair and external member)
Internal assignments:
None
External assignments:
Chief Financial Officer, GSV Materieludlejning A/S
Anita Ina Nielsen
Internal assignments:
Country AML Responsible, Nordea Danmark
External assignments:
None
Anders Frank-Læssøe
Internal assignments:
Group Treasurer, Group Treasury, Nordea Bank Abp
External assignments:
None
Helene Bløcher
Internal assignments:
Head of Business Banking, Nordea Danmark
Member of the Board of Directors of Nordea Finans Danmark A/S
Member of the Board of Directors of Nordea Pension,
Livsforsikringsselskab A/S
Member of the Board of Directors of Nordea Pension Holding
Danmark A/S
External assignments:
Substitute Member of the Board of Directors of FR I AF 16.
SEPTEMBER 2015 A/S
Tina Helen Sandvik
Internal assignments:
Head of Products and Development, Nordea Bank Abp
Member of the Board of Directors of Nordea Eiendomskreditt AS
Vice Chair of the Board of Directors of Nordea Mortgage Bank Plc
Member of the Board of Directors of Nordea Hypotek AB (publ)
External assignments:
None
Christian Ulrik Johannessen
Internal assignments:
Head of Personal Banking, Nordea Danmark
Vice Chair of the Board of Directors of Danbolig A/S
External assignments:
None
Executive Management of Nordea Kredit
Morten Boni
Internal assignments:
Chief Executive Officer
External assignments:
Member of the Board of Directors of e-nettet A/S
Member of the Board of Directors of the Association of Danish
Mortgage Banks
Kasper Lykke Møller Ingemann
Internal assignments:
Deputy Chief Executive Officer
External assignments:
Member of the Board of Directors of the Association of Danish
Mortgage Banks
47
Nordea Kredit Realkreditaktieselskab
Business registration no. 15134275
Grønjordsvej 10,
DK 2300 Copenhagen S, Denmark
Tel +45 70 33 33 33
www.nordeakredit.dk