1
Contents
2
Management’s report
Nordea Kredit is part of Nordea Group, a
leading Nordic financial services group that
is the preferred choice for millions of
customers across the region.
For more than 200 years, we have proudly
served as a trusted financial partner for
individuals, families and businesses –
enabling dreams and aspirations for a
greater good.
Our vision is to be the best-performing
financial services group in the Nordics,
accelerating through our scale, people and
technology.
The Nordea share is listed on the Nasdaq
Helsinki, Nasdaq Copenhagen and Nasdaq
Stockholm exchanges.
High lending activity in 2025
3
Financial review 2025
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
Subsequent events
9
Outlook for 2026
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 figures and ratios
DKKm
2025
2024
Change %
2023
2022
Income statement
Total operating income
2,816
3,134
-10
3,240
2,828
Total operating expenses
-756
-1,620
-53
-1,685
-1,424
Profit before impairment losses on loans and receivables
2,060
1,514
36
1,554
1,404
Impairment losses on loans and receivables
-36
-86
-58
-19
-27
Profit before tax
2,024
1,428
42
1,535
1,377
Net profit for the year
1,483
1,059
40
1,149
1,075
Balance sheet
Receivables from credit institutions and central banks
38,912
37,894
3
31,998
39,264
Loan and receivables at fair value
394,230
391,360
1
390,669
385,887
Loans and receivables at nominal value
1
416,964
412,940
1
421,030
433,757
Debt to credit institutions and central banks
15,638
8,955
75
8,117
9,503
Bonds in issue at fair value
398,188
400,934
-1
394,356
389,737
Equity
22,691
22,267
2
22,356
22,280
Total assets
440,730
436,886
1
429,937
425,506
Ratios and key figures
2025
2024
2023
2022
Return on equity,%
2
6.6
4.7
5.1
4.8
Cost/income ratio
2
26.9
51.7
52.0
50.4
Write-down ratio, basis points
0.9
2.2
0.5
0.7
Common equity tier 1 capital ratio
3
19.2
20.1
28.5
28.4
Tier 1 capital ratio
3
19.2
20.1
28.5
28.4
Total capital ratio
3
20.6
21.6
30.7
30.5
Own funds, DKKm
21,767
21,802
22,206
22,178
Tier 1 capital, DKKm
20,217
20,252
20,654
20,628
Risk exposure amount, DKKm
4
105,425
100,964
72,419
72,751
Average number of employees (full-time equivalents)
87
95
108
116
1
2
3
4
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 2024.
High lending activity in 2025
Lending activity increased by 44% in 2025 to total gross new
lending of DKK 67bn (DKK 46bn).
High sales activity on the housing market was a main driver of
new lending to household customers, while corporate lending
was driven by a large inflow of new customers within private
rental properties and office and retail properties.
Total lending volume at nominal value was DKK 417bn (DKK
413bn) by end-2025. The increased lending volume was
driven by the inflow of corporate customers. The lending
portfolio for household customers was slightly down in 2025.
On 2 May 2025 Nordea Kredit announced a general reduction
of administration margins by 0.1 percentage points on all new
loans for owner-occupied dwellings and holiday homes to
strengthen Nordea Kredit’s position in an increasingly
competitive household market.
On 23 February 2026 Nordea Kredit reduced administration
margins once again on new fixed rate and interest only loans.
Furthermore, administration margins on all existing loans will
on 1 July 2026 be adjusted according to the price decreases
on 2 May 2025 and 23 February 2026.
In July 2025 Nordea Kredit reintroduced adjustable-rate
mortgages (ARMs) with a fixing period of 6–10 years (F6–
F10) for selected corporate customers.
Loan to value (LTV) ratios showed a continued low level in
2025. The LTV ratio for owner-occupied dwellings and holiday
homes was 52% (52%), while the average LTV ratio for all
property types was 49% (49%) by end-2025.
Arrears and loan losses were low throughout the year. By
end-2025 Nordea Kredit’s lending book was solid for
household as well as corporate customers.
Financial review 2025
Profit before tax amounted to DKK 2,024m (DKK 1,428m).
Profit before tax was above expectations due to lower sales
and distribution costs than expected.
Operating income
Net interest income decreased by 9% to DKK 3,607m (DKK
3,953m). Administration margins decreased by 1% to DKK
3,232m (DKK 3,261m) following lower average margins,
driven by a reduction of margins by 0.1 percentage points on
all new loans for owner-occupied dwellings and holiday
homes in May 2025 plus lower LTV ratios for the loans
remortgaged.
Fee and commission income was up by 23% to DKK 459m
(DKK 375m), mainly driven by higher lending activity for
household customers.
Fee and commission expenses increased by 5% to DKK
1,246m (DKK 1,185m) mainly related to higher lending activity
and higher use of the liquidity transfer and support agreement
from Nordea Bank.
Staff and administrative expenses
Total staff and administrative expenses decreased by 53% to
DKK 756m (DKK 1,620m) mainly due to lower fees for sales
and distribution services provided by Nordea Bank following
the yearly update of the transfer pricing agreement and a
lower resolution fee as the resolution fund was fully paid in
during 2024.
Staff costs increased 4% to DKK 106m (DKK 102m) despite a
decrease in average number of full time equivalent employees
of 8%. The increase was driven by general salary increases
and restructuring costs.
Impairment losses on loans and receivables
Impairment losses on loans and receivables decreased to
DKK 36m (DKK 86m) mainly following decreased model and
individually calculated provisions in stage 3. Realised loan
losses were still at a low level in 2025. The management
judgement was at the same level of DKK 306m at end-2025
(DKK 306m).
Overall, the loan portfolio of Nordea Kredit is well diversified
with robust collateral.
The write-down ratio of the loan portfolio decreased to 0.9bp
(2.2bp).
Tax
Income tax expense was DKK 541m (DKK 369m) and the
effective tax rate was 26.7% (25.8%) following adjustments
related to prior years.
Net profit for the year
Net profit for the year amounted to DKK 1,483m (DKK
1,059m), corresponding to a return on equity in 2025 of 6.6%
(4.7%).
Assets
Total assets increased by 1% to DKK 441bn (DKK 437bn).
Receivables from credit institutions and central banks, mainly
consisting of deposits with Nordea Bank, increased to DKK
39bn (DKK 38bn).
Loans and receivables at fair value amounted to DKK 394bn
(DKK 391bn). Total lending at nominal value after loan losses
increased by 1% to DKK 417bn (DKK 413bn) mainly as a
result of the higher activity level.
Table 1. Lending at nominal value by property category
The quality of the loan portfolio continued to be strong in
2025. Accumulated loan loss provisions increased to DKK
587m (DKK 583m).
The first loss guarantees from Nordea Bank cover 25% of
loans totalling DKK 415bn (DKK 410bn). The share of the
total loans covered by the loss guarantees was 99% (99%).
4
The loss guarantee significantly reduces the credit risk and
hence the loan losses at Nordea Kredit.
Assets held temporarily decreased and consisted of 3 (4)
repossessed properties by the end of 2025 with a carrying
amount of DKK 2m (DKK 1m).
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 16bn (DKK 9bn).
Bonds in issue at fair value totalled DKK 398bn (DKK 401bn)
after offsetting the portfolio of own bonds of DKK 25bn
(DKK 5bn). Bonds in issue at fair value decreased as the
increase in bonds in issue at nominal value was offset by the
increase in the portfolio of own bonds.
Equity
Shareholders’ equity amounted to DKK 23bn (DKK 22bn) at
the end of 2025.
It is proposed to distribute the net profit of DKK 1,483m as
dividend to the parent company Nordea Bank Abp. The
proposed dividend payment is equivalent to DKK 86 (DKK 62)
per share.
Capital adequacy
At year-end the risk exposure amount (REA) of Nordea Kredit
was up by 4% to DKK 105bn (DKK 101bn). The common
equity tier 1 (CET1) ratio decreased to 19.2% (20.1%) due to
the increase in REA. The total capital ratio decreased to
20.6% (21.6%) at end-2025 affected by increased REA. The
increase in REA was mainly driven by increased operational
risk REA due to the implementation of Basel IV on 1 January
2025 and additional risk exposure amount due to art. 3 in
Capital Requirements Regulation (CRR). The increase in REA
was partly offset by a decrease in credit risk REA.
At year-end 2025 the leverage ratio was unchanged at 4.6%
(4.6%), thus meeting the minimum requirement of 3%.
Debt buffer
The debt buffer requirement was DKK 7.9bn at end-2025
(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 semi-annual basis. Information about individual solvency
needs is available on
(
)
The property market
The economy
The global economy proved resilient in 2025 despite
heightened geopolitical uncertainty and concerns about a
sharper slowdown following higher trade barriers. Economic
activity was supported by strong investments, notably within
technology and AI, as well as broadly supportive fiscal and
monetary policies. These factors are expected to continue to
underpin global growth in 2026. Nordea forecasts global GDP
growth of above 3% in both 2026 and 2027, broadly in line
with the estimated growth rate in 2025.
The outlook is, however, subject to elevated uncertainty.
Shifts in the global geopolitical landscape and changes to
international trade policies pose downside risks to global
growth through their potential impact on trade flows,
investment decisions and confidence.
The Danish economy enters this period from a position of
strength. Employment remains at a historically high level,
public finances are solid and household finances are robust.
Based on current national accounts data, we estimate that
Danish GDP grew by 2.8% in 2025. We expect economic
activity to remain strong in 2026, with GDP growth of around
2.5%, supported primarily by domestic demand.
Downside risks to the Danish outlook have increased, notably
related to the risk of renewed trade tensions with the US. This
could weigh on export growth directly and indirectly through
weaker investment activity and consumer confidence
stemming from higher uncertainty.
The housing market
The Danish housing market strengthened further in 2025.
House prices increased notably, supported by lower interest
rates, rising employment and a limited supply of homes for
sale. Over a longer period, a persistently low level of new
construction has contributed to upward pressure on prices,
particularly in the existing housing stock. This has been most
pronounced in Greater Copenhagen where housing supply
has not kept pace with population growth.
Housing market developments remain geographically uneven.
While prices of houses and flats increased significantly in
Copenhagen and the surrounding areas during 2025, price
growth was markedly more moderate in large parts of Jutland.
This underscores continued regional divergence in housing
market conditions. In parts of the country – particularly in
more peripheral areas - market conditions remain more
subdued, with limited price growth and, in some cases, a
higher number of sellers than buyers.
Looking ahead, we expect housing market momentum to
remain positive, albeit at a more moderate pace. House prices
are forecast to increase by around 5.3% in 2026, followed by
growth of approximately 3.6% in 2027. Further price increases
are also expected in the markets for owner-occupied flats and
holiday homes. Price trends will be supported by continued
strength in the labour market and rising household purchasing
power, although higher interest rates towards the end of the
forecast period may have a small dampening effect.
Interest rates
Monetary policy is currently characterised by a high degree of
uncertainty, driven primarily by geopolitical developments in
the Middle East and their impact on energy markets. While
inflation has generally eased compared to previous peaks, the
recent rise in energy prices has reintroduced upside risks,
complicating the outlook for central banks – and consequently
also the outlook for Danish mortgage rates.
Our baseline expectation is that both the Federal Reserve and
the European Central Bank (ECB) will keep policy rates
broadly unchanged through 2026. Underlying inflation
pressures appear contained, supported by moderate wage
growth and relatively subdued economic activity. However,
the risk of renewed inflation stemming from higher energy
costs remains a key concern, particularly in Europe and in
relation to short-term mortgage rates.
Financial markets have reacted swiftly to the geopolitical
tensions. Short-term interest rates have increased, reflecting
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2010
2011
2012
2013
2014
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2016
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2021
2022
2023
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Long-term DKK rate
Short-term DKK rate
Interest rate, %
both heightened uncertainty and a reassessment of the
inflation outlook. We expect some normalisation as
uncertainty recedes, but near-term volatility is likely to remain
elevated. Longer-term interest rates have also moved higher,
though more gradually, as investors balance inflation risks
against weaker growth prospects and increasing government
bond supply.
Looking ahead, the policy path remains highly data
dependent. Should inflation prove more persistent, the next
move by central banks could be towards tightening.
Conversely, a more pronounced slowdown in global growth
could shift the balance towards easing. Overall, the interest
rate outlook is more uncertain than it has been for some time.
Figure 1. Interest rates
Residential rental, office and retail properties
2025 was characterised by a gradual normalisation and
stabilisation of the property market. The commercial property
market generally saw more momentum in 2025, with both a
higher number of transactions and several larger deals
compared to recent years. The stronger activity was
supported by stabilising yields and higher demand from both
existing and new customers.
The focus in the residential rental property market is still on
yield requirements and financing costs, but the trend points
towards increased activity and an inflow of international
capital.
The office and retail property market was supported by
expectations of lower interest rates and a growing focus on
sustainability. Prime properties with good locations were the
most sought after, while secondary properties experienced
moderate growth.
Overall, 2025 saw increased activity in the commercial
property market, and Nordea Kredit experienced significantly
higher lending driven not only by a greater number of
transactions, but also by a growing base of new customers
seeking property financing in a market moving towards
stabilisation.
Warehouses and logistics properties
The market for warehouses and logistics properties was
robust in 2025, with strong demand for modern, well-located
buildings and an increased focus on sustainability.
In 2026 transaction volumes are expected to rise, particularly
for properties with long lease agreements. Yield requirements
are expected to increase slightly, but the market is considered
attractive, supported by stable low vacancy rates and limited
new construction.
Agricultural properties
The agricultural sector as a whole recorded another year of
satisfactory profitability in 2025, maintaining a relatively high
level overall, albeit with considerable variation across sectors.
High prices for milk and meat, coupled with a favourable
harvest, contributed to robust earnings among livestock
producers. Conversely, crop producers were affected by
depressed crop prices. Looking ahead to 2026, results are
anticipated to be somewhat lower, as milk and pork prices
declined sharply during the latter part of 2025 and are now at
significantly lower levels.
In the coming years the agricultural sector is entering a
challenging period, marked by the implementation of a new
nitrogen regulation model in 2027 that will impose restrictions
across large parts of the country, the commencement of a
new CAP framework in 2028 and the phased introduction of a
CO2 tax on livestock production in 2030. Nevertheless, the
sector is in a relatively strong position to manage these
changes, supported by several years of high profitability and
reductions of debt.
Land prices have been rising in recent years, and this
continued during 2025. The above factor creates some
uncertainty regarding future land prices. A flattening is
therefore expected, and for properties most severely affected
by nitrogen regulation, land prices can decline.
Nordea Kredit’s lending
The loan portfolio
Throughout 2025 total lending at nominal value after loan
losses rose by 1% to DKK 417bn at end-2025 (DKK 413bn).
The increased volume was primarily driven by lending for
private rental properties, office and retail properties and to
some extent agricultural properties. The lending volume for
owner-occupied dwellings and holiday homes decreased by
2% in 2025.
Total gross new lending in 2025 amounted to DKK 67bn (DKK
46bn). This was the highest annual lending activity since 2022
and 44% above the activity in 2024. The higher activity was
due to a positive trend in lending to corporate as well as
household customers. On the corporate side this was mainly
driven by a positive inflow of new customers. The higher
lending activity to household customers was driven by high
sales activity leading to increased lending for change of
ownership. Remortgaging activity and top-up lending also
impacted lending activity positively.
Household and corporate customers reduced their use of
fixed-rate loans during 2025. By end-2025 39% (41%) of
Nordea Kredit’s lending portfolio was fixed-rate loans.
The most popular loan type among household customers in
2025 was ARM (F3–F5) loans accounting for 46% of new
lending followed by fixed-rate loans accounting for 38%.
Corporate customers in general preferred ARMs (F3–F10)
making up 46% of new lending followed closely by floating-
rate products (Cibor6 and Cibor6 Green) accounting for 43%
of new lending.
Interest-only loans in total accounted for an unchanged share
of 54% (54%) of the lending portfolio by end-2025.
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-2025 (DKK 3bn).
Funding
Bond issuance
Nordea Kredit adheres to the specific balance principle and
exclusively match-funds its lending by the issuance of bonds.
2025 was characterised by decreasing bond yields. After
some years with subdued activity, issuance increased to an
almost normal level. Market volatility remained stable
throughout the year, which supported investor appetite for
Danish covered bonds. The strong sentiment was further
supported by two main factors.
First, Danish krone liquidity remained high during the year,
supporting short-dated bonds. Second, foreign investors were
net buyers of long callable bonds and floating-rate bonds,
which also sent supportive signals to the market.
Issuance during 2025 was straightforward. Long callable
bonds were issued in the 4% coupon from February to
September, with issuance prices for the standard 30-year
bonds ranging between 99.00 and 100.00. Outside this
period, issuance shifted to the 3.5% bond where issuance
prices were also within a narrow range. The opening of the
3.5% callable bond boosted remortgaging significantly.
However, instead of taking out new callable loans, many
borrowers opted for ARMs or floating-rate loans.
Coupons on floating-rate bonds declined by around 1.5
percentage points during 2025 and stood at approximately
2.3% for a Cibor6 bond in October 2025. A 5-year ARM
traded at around 2.4% in October, and many borrowers
preferred the slightly more expensive ARM loan, gaining
longer-term certainty of a fixed low coupon compared to the
risk of rising interest rates as early as 2026.
Nordea Kredit tap-issued DKK 70bn in 2025 (DKK 48bn). Of
the total tap issuance, 29% was in callable bonds, 24% in
floating-rate bonds and 47% in non-callable bonds. Compared
to Nordea Kredit’s issuance split in 2024, this represents a
decrease of 12 percentage points in callable bonds and an
increase of 12 percentage points in non-callable bonds.
Foreign investors kept their total holdings of covered bonds
stable during 2025, but the holdings cover a reduction in
callable bonds and an increase in floating-rate bonds.
At end-2025 the total outstanding nominal value of bonds,
before offsetting the portfolio of own bonds, amounted to DKK
446bn (DKK 428bn). Of this amount, mortgage bonds (ROs)
accounted for DKK 1bn (DKK 1bn), while covered mortgage
bonds (SDROs) accounted for DKK 445bn (DKK 427bn).
Refinancing of adjustable-rate mortgages
ARM loans (F1–F5) are funded through the issuance of bullet
bonds. ARM loans (F1-F5) of DKK 2bn, DKK 11bn and DKK
12bn were refinanced in January 2025, April 2025 and
October 2025, respectively.
Refinancing auctions during 2025 resulted in lower interest
rates for customers. For example, the interest rate for ARM
loans refinanced in October 2025 was fixed at 2.1% for a 30-
year annuity loan with a 3-year reset (F3), compared with
2.6% in October 2024.
Refinancing of floating-rate mortgages
Floating-rate loans were refinanced through three auctions
during 2025. In May DKK 16bn in Cibor6 bonds and DKK 8bn
in Cita6 bonds were issued, and in November a further DKK
15bn of Cita6 bonds were refinanced.
Nordea Kredit’s refinancing auctions – covering both
adjustable-rate and floating-rate loans – were all conducted
successfully with strong 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 related to 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
2025
Limit
1. Lending growth
Owner-occupied dwellings and holiday homes
-1%
15%
Residential rental properties
10%
15%
Agriculture
2%
15%
Other
6%
15%
2. Borrower’s interest rate risk
1
10%
25%
3. Interest-only lending
2
4%
10%
4. Short-term funding
3
Annually
15%
25%
Quarterly
4%
12.5%
5. Large exposures
4
60%
100%
regulations in the form of the Capital Requirements Directive
IV (CRD IV)/the 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
2025.
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.
The systemic risk buffer (SyRB) of 7% has been valid from 30
June 2024 for exposures to real estate companies with a
specific industry code. The exposure covered by real estate
collateral up to an LTV ratio of 15% is exempted. On 7
October 2025 the Danish Systemic Risk Council
recommended several actions in order to ease the calibration
of the SyRB.
On 6 January 2026 the Danish government announced that it
requested additional time to finalise the Danish Systemic Risk
Council’s recommendation to ease the SyRB. It was therefore
decided that the current buffer will be valid until 30 June 2026.
On 20 June 2025 the Danish Financial Supervisory Authority
announced that Nordea Kredit had again been designated as
a systemically important financial institution (SIFI). The score
for the assessment decreased and Nordea Kredit was
included in bucket 1, previously bucket 2. The SIFI buffer –
the other systemically important institutions requirement (O-
SII) buffer – decreased from 1.5% to 1% from 31 December
2025.
On 5 December 2025 Nordea Kredit received approval from
the Danish Financial Supervisory Authority to use the
transitional rule regarding risk weight according to Article
465(5) of the CRR for residential real estate exposure in the
output floor calculation. Nordea Kredit will apply the
transitional rule for the first time at the end-Q1 2026 reporting.
It is not expected that the output floor currently will be the
binding capital requirement.
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.
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.
Furthermore, Nordea Kredit has a compliance function
8
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 Audit Committee and the Board of
Directors 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
Audit Committee and the Board of Directors.
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 (
).
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 155 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 Statement in the annual
report for Nordea Bank Abp Group
(
.
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 Compliance Risk. 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 part of the core
business.
Nordea Kredit complies with applicable law and strives to
process, treat and analyse all data in a fair and transparent
manner, with a strong ethical mindset and with respect for
customers’ privacy:
•
The collection and processing of personal customer data
is done fairly, lawfully and transparently for legitimate
business purposes.
•
Individuals’ right to be in control of what data they share
with Nordea Kredit and for what purposes with the
limitations legal requirements set is respected.
•
Personal customer data is disclosed to those authorised
to receive it internally at Nordea and externally, for
example third parties that Nordea Kredit collaborates
with.
•
The commitment to privacy remains even 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 rules and
requirements.
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 Compliance, Data Management
and the Data Privacy Manager at Nordea Kredit.
9
Changes to the Board of Directors
At the beginning of 2025 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 Helen 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. On 31 October 2025 Helene Bløcher left the
Board of Directors.
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,
Tina Helen 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.
Subsequent events
No events have occurred after the balance sheet date which
may affect the assessment of the annual report.
Outlook for 2026
Profit before tax for 2026 is expected to decrease mainly due
to the reduction of administrative margins for new loans to
household customers in 2025 and for both new and existing
loans to household customers in 2026.
The return on own funds is expected to decrease as interest
rates are expected to be lower in 2026 compared to 2025.
Nordea Kredit is well provisioned. There is a high degree of
uncertainty on the level of loan losses for 2026 given the
macroeconomic situation.
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
DKKm
Note
2025
2024
Interest income
2
12,020
13,963
Interest expenses
2
-8,413
-10,010
Net interest income
2
3,607
3,953
Fee and commission income
3
459
375
Fee and commission expenses
3
-1,246
-1,185
Net interest and fee income
2,819
3,143
Value adjustments
4
-5
-9
Other operating income
0
1
Staff and administrative expenses
5
-756
-1,620
Impairment losses on loans and receivables
6
-36
-86
Profit from equity investment in associated undertaking
7
1
-1
Profit before tax
2,024
1,428
Tax
8
-541
-369
Net profit for the year
1,483
1,059
Attributable to
Proposed dividends to the shareholders
1,483
1,059
Transfer to equity reserves
0
0
Total
1,483
1,059
Statement of comprehensive income
DKKm
2025
2024
Net profit for the year
1,483
1,059
Other comprehensive income, net of tax
-
-
Total comprehensive income
1,483
1,059
Attributable to
Proposed dividends to the shareholders
1,483
1,059
Transfer to equity reserves
0
0
Total
1,483
1,059
12
Balance sheet
Note
31 Dec 2025
31 Dec 2024
DKKm
Assets
Cash in hand and demand deposits with central banks
7,384
7,257
Receivables from credit institutions and central banks
10
38,912
37,894
Loans and receivables at fair value
11
394,230
391,360
Loans and receivables at amortised cost
0
0
Investment in associated undertaking
12
22
21
Deferred tax assets
8
4
5
Assets held temporarily
13
2
1
Other assets
14
161
343
Prepaid expenses
15
5
Total assets
440,730
436,886
Debt
Debt to credit institutions and central banks
15
15,638
8,955
Bonds in issue at fair value
16
398,188
400,934
Current tax liabilities
8
22
9
Other liabilities
17
2,638
3,171
Deferred income
3
1
Total debt
416,489
413,069
Subordinated debt
Subordinated debt
18
1,550
1,550
Equity
Share capital
1,717
1,717
Other reserves
22
20
Retained earnings
19,469
19,471
Proposed dividends
1,483
1,059
Total equity
22,691
22,267
Total equity and debt
440,730
436,886
Contingent liabilities
Guarantees etc.
0
0
Credit commitments
1,745
1,857
Total contingent liabilities
1,745
1,857
13
Statement of changes in equity
DKKm
Share capital
1
Other reserves
2
Retained
earnings
Proposed
dividends
Total equity
Balance at 1 Jan 2025
1,717
20
19,471
1,059
22,267
Net profit for the year
-
2
1,481
-
1,483
Other comprehensive income, net of tax
-
-
-
-
-
Share-based payments
-
-
0
-
0
Dividends paid
-
-
-
-1,059
-1,059
Proposed dividends
-
-
-1,483
1,483
-
Balance at 31 Dec 2025
1,717
22
19,469
1,483
22,691
DKKm
Balance at 1 Jan 2024
1,717
23
19,467
1,149
22,356
Net profit for the year
-
-3
1,062
-
1,059
Other comprehensive income, net of tax
-
-
-
-
-
Share-based payments
-
-
1
-
1
Dividends paid
-
-
-
-1,149
-1,149
Proposed dividends
-
-
-1,059
1,059
-
Balance at 31 Dec 2024
1,717
20
19,471
1,059
22,267
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
2025
2024
2023
2022
2021
Net interest income
3,607
3,953
4,043
3,517
3,324
Net interest and fee income
2,819
3,143
3,269
2,840
2,694
Value adjustments
-5
-9
-30
-17
1
Other operating income
0
1
0
4
8
Staff and administrative expenses
-756
-1,620
-1,685
-1,424
-1,367
Impairment losses on loans and receivables
-36
-86
-19
-27
82
Profit from equity investment in associated undertaking
1
-1
1
1
2
Profit before tax
2,024
1,428
1,535
1,377
1,419
Tax
-541
-369
-386
-302
-312
Net profit for the year
1,483
1,059
1,149
1,075
1,107
Balance sheet
DKKm
2025
2024
2023
2022
2021
Receivables from credit institutions and central banks
38,912
37,894
31,998
39,264
48,523
Loans and receivables at fair value
394,230
391,360
390,669
385,887
432,280
Loans and receivables at nominal value
1
416,964
412,940
421,030
433,757
436,116
Other assets
7,588
7,632
7,270
355
211
Total assets
440,730
436,886
429,937
425,506
481,015
Debt to credit institutions and central banks
15,638
8,955
8,117
9,503
14,260
Bonds in issue at fair value
398,188
400,934
394,356
389,737
441,234
Other liabilities etc.
4,214
4,731
5,107
3,985
3,210
Equity
22,691
22,267
22,356
22,280
22,311
Total equity and debt
440,730
436,886
429,937
425,506
481,015
Ratios and key figures
2025
2024
2023
2022
2021
Return on equity,%
2
6.6
4.7
5.1
4.8
4.9
Cost/income ratio
2
26.9
51.7
52.0
50.4
50.5
Write-down ratio, basis points
0.9
2.2
0.5
0.7
-1.9
Loans/equity ratio
17.4
17.6
17.5
17.3
19.4
Lending growth for the year, %
1.0
-1.9
-2.9
-0.5
6.6
Common equity tier 1 capital ratio
3
19.2
20.1
28.5
28.4
24.7
Tier 1 capital ratio
3
19.2
20.1
28.5
28.4
24.7
Total capital ratio
3
20.6
21.6
30.7
30.5
26.6
Own funds, DKKbn
21.8
21.8
22.2
22.2
22.1
Tier 1 capital, DKKbn
20.2
20.3
20.7
20.6
20.5
Risk exposure amount, DKKbn
4
105.4
101.0
72.4
72.8
83.1
Number of employees (full-time equivalents)
5
84
92
103
115
118
Average number of employees (full-time equivalents)
87
95
108
116
118
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 where recently observed market
prices are not available. These 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
where recently observed market prices are not available
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 regarding
the expected credit losses. The estimation of post-model
adjustments requires management to exercise critical
judgements.
3.
impairment
Net interest income
Interest income and expenses include interest and
administration margins from financial instruments.
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 when or as
performance obligations are satisfied, either over time or at
a specific point of time.
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 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 presented in “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 transactions, not related to any other income line, are
generally presented in “Other operating income” and
recognised when it is probable that the benefits associated
with the transaction will flow to Nordea Kredit. This
generally occurs when the significant risks and rewards
have been transferred to the buyer (generally when the
transaction is 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 covering 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
Profit from associated undertaking accounted for under the
equity method 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”.
Profit from equity investment in associated undertaking is
reported post-taxes in the income statement.
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 and affects the financial statements
of Nordea Kredit in the period in which the information
is available.
4.
instruments on the balance sheet
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.
Unrealised translation differences on monetary assets and
liabilities are recognised in the income statement in the
item “Value adjustments”.
18
6. Determination of fair value of financial
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. The fair value measurement assumes that the
transaction takes place 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 considered
active varies depending on the class of instruments. 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 technique is assessed by
measuring its capability to match market prices. This is
done by comparing calculated prices with relevant
benchmark data, for example quoted prices from
exchanges, the counterparty’s valuations, price data from
consensus services etc.
For financial instruments where fair value is estimated by a
valuation technique, it is investigated whether the variables
used are predominantly based on data from observable
markets. Nordea Kredit considers data from observable
markets to be data that can be collected from generally
available external sources and which is deemed to
represent realistic market prices. If un-observable data has
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 un-
observable data become observable.
The pricing 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.
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)
•
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 in “Debt to credit institutions and
central banks”. Cash delivered under reverse repurchase
agreements is recognised on the balance sheet in
“Receivables from credit institutions and central banks”.
Derivatives
All derivatives are recognised on the balance sheet and
measured at fair value. Derivatives with a positive fair
value, including any accrued interest, are recognised as
assets in the line item “Other assets” on the asset side.
Derivatives with a negative fair value, including any
accrued interest, are recognised as liabilities in the line
item “Other liabilities” on the liability side.
Realised and unrealised gains and losses from derivatives
are recognised in the income statement under “Value
adjustments”.
Offsetting of financial assets and liabilities
Nordea Kredit offsets financial assets
and liabilities on the balance sheet if
19
there is a legal right to offset and if the intent is to settle the
items net or realise the asset and settle the liability
simultaneously. The legal right to offset should exist both in
the ordinary course of business and in case of default,
bankruptcy and insolvency of Nordea Kredit and the
counterparties.
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 since initial
recognition. Stage 2 includes assets where there has been
a significant increase in credit risk. Stage 3 includes
defaulted 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. Nordea Kredit applies the
same definition of default as the Capital Requirements
Regulation. More information on the credit risk 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 in default.
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 (EAD) times the change in probability of default
(PD) times the loss given default (LGD).
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 percentage points 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% percentage 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.
The model is based on data collected before the reporting
date, requiring Nordea Kredit to identify events that could
affect the provisions after the data is sourced to the model
calculation. Management evaluates these events and
adjusts the provisions if deemed necessary.
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 line item “Tax” in the income statement consists of the
total current tax and deferred tax movements recognised in
the income statement. Current and deferred taxes are
recognised in the income statement.
Current tax is the expected tax expense on the taxable
income for the year, using the tax rate enacted at the
reporting date, and any adjustment to tax payable in
respect of previous years.
Deferred tax assets and liabilities are recognised for
temporary differences between the
20
carrying amounts of assets and liabilities for financial
reporting purposes and tax base of the same assets and
liabilities. 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 and tax losses carry forward 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 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 perform 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
2025
2024
Interest income
Receivables from credit institutions and central banks
712
1,129
Loans and receivables at fair value
8,068
9,565
Administration margins
3,232
3,261
Other interest income
9
8
Total interest income
12,020
13,963
Interest expenses
Debt to credit institutions and central banks
-286
-331
Bonds in issue at fair value
-8,066
-9,584
Subordinated debt
-62
-95
Other interest expenses
-
0
Total interest expenses
-8,413
-10,010
Net interest income
3,607
3,953
Note 3
Net fee and commission income
DKKm
2025
2024
Loan processing fees
94
75
Brokerage
62
48
Refinancing fees and pay-out fees
262
226
Other fee and commission income
41
25
Fee and commission income
459
375
Guarantee commissions etc. payable to Nordea Bank
-1,049
-1,021
Brokerage payable to Nordea Bank
-58
-45
Other fee and commission expenses
-139
-120
Fee and commission expenses
-1,246
-1,185
Net fee and commission income
-788
-811
Note 4
Value adjustments
DKKm
2025
2024
Mortgage loans
2,202
11,489
Bonds
0
0
Foreign exchange gains/losses
0
0
Interest rate derivatives
-9
-4
Bonds in issue
1
-2,198
-11,494
Total
-5
-9
1
22
Note 5
Staff and administrative expenses
DKKm
2025
2024
Salaries and remuneration (specification below)
-81
-78
Pension costs (specification below)
-9
-8
Social insurance contributions
-17
-15
Administrative expenses
1
-650
-1,518
Total
-756
-1,620
Average number of employees
87
95
1
DKKm
2025
2024
Salaries and remuneration
1
To the Board of Directors:
- Board and Audit Committee fee
0
0
To the Executive Management:
- Fixed salary and benefits
-5
-4
- Performance-related compensation
2
-1
-2
To the employees that have significant influence on Nordea Kredit’s risk profile:
- Fixed salary and benefits
-5
-5
- Performance-related compensation
0
-
Total
-12
-11
To other employees
-68
-67
Total
-81
-78
1
2
DKKm
2025
2024
Pension costs
Defined contribution plans:
- Executive Management
0
-1
- Employees that have significant influence on Nordea Kredit’s risk profile
-1
-1
- Other employees
-8
-7
Total
-9
-8
Compensation including pension
Board of Directors
1
0
0
Executive Management
2
-7
-6
Employees that have significant influence on Nordea Kredit’s risk profile
3
-6
-5
Total
-14
-12
1
2
3
The Nordea Incentive Plan (NIP 2025) 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
people focus, customer focus and sustainability (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 2025 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 the NIP 2025 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 2025 will be delivered in equal portions of cash and Nordea shares in 2026. The remaining 60% of the NIP 2025 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 2025 was 70% of annual fixed base salary (but the actual outcome can never exceed 50% of fixed remuneration).
The estimated expense for the 2025 NIP is recognised in the income statement for 2025.
23
Note 6
Impairment losses on loans and receivables
DKKm
2025
2024
Stage 1
New and increased impairment charges
-16
-22
Reversals of impairment charges
0
6
Impairment losses on loans and receivables, non-credit impaired
-16
-16
Stage 2
New and increased impairment charges
-23
-87
Reversals of impairment charges
32
93
Impairment losses on loans and receivables, non-credit impaired
10
6
Stage 3, credit impaired
Realised loan losses
-37
-23
Decrease in impairment charges to cover realised loan losses
28
19
Recoveries on previous realised loan losses
2
2
New and increased impairment charges
-114
-173
Reversals of impairment charges
90
97
Impairment losses on loans and receivables, credit impaired
-30
-77
Impairment losses on loans and receivables
-36
-86
Note 7
Profit from equity investment in associated undertaking
DKKm
2025
2024
Profit from equity investment in associated undertaking
1
-1
Total
1
-1
Note 8
Tax
Income tax expense
DKKm
2025
2024
Current tax
-527
-371
Deferred tax
-1
3
Adjustment relating to prior years
-13
0
Total
-541
-369
Profit before tax
2,024
1,428
Tax calculated at a tax rate of 26%/26%
-526
-371
Tax-exempt income
0
3
Non-deductible expenses
-2
0
Adjustment related to prior years
-13
0
Tax charge
-541
-369
Average effective tax rate
26.7%
25.8%
Deferred tax
Deferred tax assets
Deferred tax liabilities
DKKm
2025
2024
2025
2024
Deferred tax related to:
Provisions
4
5
-
-
Total
4
5
-
-
DKKm
2025
2024
Movements in deferred tax assets/liabilities, net are as follows:
Amount at beginning of year (net)
5
3
Deferred tax in the income statement
-1
3
Amount at end of year (net)
4
5
Current tax liabilities
22
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 2025, the net taxes receivable from
the Danish Tax Agency by the companies and branches included in the joint taxation amounted to DKK 645m (net taxes receivable DKK 392m). 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 2025
31 Dec 2024
Loans etc.
Executive Management
5
-
Board of Directors
5
19
Interest income on these loans to members of Nordea Kredit’s Executive Management and Board of Directors amounted to DKK 0.2m (DKK 0.2m) at end-2025.
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
2025 interest on the mortgage loans was payable at the rate of 0–2% of which the administration fee was 0.4–1.1% 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 2025
31 Dec 2024
Receivables from credit institutions
38,912
37,894
Total
1
38,912
37,894
Of which purchase and resale transactions
37,826
36,218
1
Note 11
Loans and receivables at fair value
DKKm
31 Dec 2025
31 Dec 2024
Mortgage loans, nominal value
Value at beginning of year
413,523
421,553
New loans (gross new lending)
66,891
46,468
Foreign exchange revaluations
1
2
Redemptions and prepayments
-53,141
-45,431
Net new lending for the year
13,751
1,038
Scheduled principal payments
-9,724
-9,068
Mortgage loan portfolio at end of year
417,551
413,523
Mortgage loans, fair value
Nominal value
417,551
413,523
Adjustment for interest rate risk etc.
-22,814
-21,708
Adjustment for credit risk
-587
-583
Mortgage loan portfolio
394,150
391,232
Mortgage arrears (see below)
81
128
Loans and receivables at fair value
394,230
391,360
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 2025
88
221
275
583
Transfer between stages
0
5
16
21
Changes due to changes in credit risk (net)
77
194
112
383
Changes due to repayments
-62
-209
-104
-375
Write-off through decrease in allowance account
-
-
-25
-25
Balance at 31 December 2025
103
210
274
587
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
Transfer between stages
0
-15
31
16
Changes due to changes in credit risk (net)
42
123
118
284
Changes due to repayments
-27
-114
-79
-220
Write-off through decrease in allowance account
-
-
-19
-19
Balance at 31 December 2024
88
221
275
583
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 2025
31 Dec 2024
Mortgage arrears
Mortgage arrears before provisions
69
101
Execution levied against debtors’ properties before provisions
11
27
Total
81
128
Mortgage arrears mid-January following year
43
54
DKKm
31 Dec 2025
31 Dec 2024
Age distribution of mortgage loans in arrears before provisions
More than 3 months and up to 6 months
526
666
More than 6 months and up to 1 year
118
228
More than 1 year
226
350
Total
869
1,244
Percentage
31 Dec 2025
31 Dec 2024
Mortgage loan portfolio by property category (nominal value)
Owner-occupied dwellings
64
65
Holiday homes
4
4
Subsidised housing
0
0
Private rental property
14
13
Commercial property
2
3
Office and retail property
8
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 2025
31 Dec 2024
Acquisition value at beginning of year
1
1
Acquisition value at end of year
1
1
Revaluation at beginning of year
20
21
Revaluation during the year
1
-1
Total revaluation at end of year
21
20
Total
22
21
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 2024
e-nettet A/S
Copenhagen
Development of software solutions for
the financial industry
17
133
9
31 Dec 2023
e-nettet A/S
Copenhagen
Development of software solutions for
the financial industry
17
124
0
1
Note 13
Assets held temporarily
DKKm
31 Dec 2025
31 Dec 2024
Repossessed properties
2
1
Total
2
1
Note 14
Other assets
DKKm
31 Dec 2025
31 Dec 2024
Interest receivable
56
53
Derivatives
37
46
Other assets
1
68
244
Total
161
343
1
Note 15
Debt to credit institutions and central banks
DKKm
31 Dec 2025
31 Dec 2024
Debt to credit institutions
15,638
8,955
Total
1
15,638
8,955
Of which sale and repurchase transactions
8,888
2,205
Of which senior non-preferred loan
2
6,750
6,750
1
2
27
Note 16
Bonds in issue at fair value
DKKm
31 Dec 2025
31 Dec 2024
Bonds in issue at beginning of year (nominal value)
428,180
431,161
Bonds issued during the year
135,895
127,548
Exchange differences
1
2
Scheduled payments and notified prepayments
-81,832
-30,678
Redemptions and other prepayments
-36,115
-99,853
Bonds in issue at end of year at nominal value
446,130
428,180
Adjustment at fair value
-22,877
-21,820
Own bonds at fair value offset
-25,066
-5,426
Bonds in issue at end of year at fair value
398,187
400,934
Of which pre-issued (nominal value)
8,890
2,240
Drawn for redemption at next payment date (nominal value)
23,564
7,017
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 398bn (DKK 401bn). 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 2025 by approximately DKK 0.7bn (increase of approximately DKK 0.3bn) due to changes in own credit risk. The
cumulative change since designation was a decrease of approximately DKK 2.7bn (decrease of approximately DKK 3.3bn). 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 2025
31 Dec 2024
Interest payable on bonds in issue
2,355
2,816
Other interest and commissions payable
137
46
Other
146
309
Total
2,638
3,171
Note 18
Subordinated debt
DKKm
31 Dec 2025
31 Dec 2024
Other subordinated debt
1,550
1,550
Total
1
1,550
1,550
Interest
-62
-95
Cost of increase in and repayments of subordinated debt
-
-
Total
-62
-95
1
Year of issue/
maturity
Call date
Nominal value
DKKm
Carrying
amount DKKm
Interest rate (coupon)
2025/2035
24 March 2030
1,550
1,550
Cibor 3M + interest rate
premium 1.4%
In accordance with an approval from Danish Financial Supervisory Authority, Nordea Kredit repaid the subordinated loan of DKK 1.55bn on 31 March 2025. Nordea
Kredit issued a new Tier 2 capital instrument in the form of a subordinated loan of DKK 1.55bn provided by Nordea Bank Abp on 24 March 2025
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.
28
Note 19
Capital adequacy
Summary of items included in own funds
DKKm
31 Dec 2025
31 Dec 2024
Calculation of own funds
Equity
22,691
22,267
Proposed/actual dividend
-1,483
-1,059
Common equity tier 1 capital before regulatory adjustments
21,208
21,208
IRB provisions shortfall (-)
-956
-924
Other items, net
-36
-32
Total regulatory adjustments to common equity tier 1 capital
-992
-956
Common equity tier 1 capital (net after deduction)
20,217
20,252
Tier 1 capital (net after deduction)
20,217
20,252
Tier 2 capital before regulatory adjustments
1,550
1,550
Tier 2 capital
1,550
1,550
Own funds (net after deduction)
21,767
21,802
Minimum capital requirement and risk exposure amount (REA)
31 Dec
31 Dec
31 Dec
31 Dec
2025
2025
2024
2024
DKKm
Minimum
capital
requirement
Minimum
capital
requirement
Credit risk
7,630
95,372
7,704
96,306
27
336
50
628
IRB
6,462
80,773
6,591
82,382
- corporate
1,955
24,440
1,818
22,720
1,763
22,038
1,818
22,720
192
2,402
-
-
- retail
4,484
56,052
4,741
59,259
4,425
55,318
4,686
58,571
59
734
55
688
- other
23
282
32
402
Standardised
1,168
14,599
1,114
13,924
- central governments or central banks
1
10
1
13
- institutions
1,160
14,503
1,106
13,825
- corporate
1
10
0
0
- secured by mortgages on immovable properties
4
54
5
65
- equity
2
22
2
21
Market risk
-
-
-
-
Operational risk
614
7,676
373
4,658
Standardised
614
7,676
373
4,658
Additional risk exposure amount due to Article 3 CRR
1
190
2,377
-
-
Total
8,434
105,425
8,077
100,964
1
29
Note 19
Capital adequacy, continued
31 Dec
31 Dec
Capital ratios (%)
2025
2024
Common equity tier 1 capital ratio
19.2
20.1
Tier 1 capital ratio
19.2
20.1
Total capital ratio
20.6
21.6
31 Dec
31 Dec
Leverage ratio
1
2025
2024
Tier 1 capital, DKKm
20,217
20,252
Leverage ratio exposure, DKKm
440,475
436,789
Leverage ratio, %
4.6
4.6
1
Note 20
Debt buffer
Composition of instruments that are applicable for meeting the debt buffer requirement
Instrument, DKKm
Type
Curr.
31 Dec
2025
31 Dec
2024
Issued
Maturity
Call
Excess CET1 capital
1
CET1 capital
DKK
3,158
2,564
-
-
-
10Y subordinated unsecured loan, provided by Nordea Bank
Tier 2 capital
DKK
-
1,550
31/03/2020
31/03/2030
31/03/2025
10Y subordinated unsecured loan, provided by Nordea Bank
Tier 2 capital
DKK
1,550
-
24/03/2025
24/03/2035
24/03/2030
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
3,000
23/08/2024
23/08/2029
-
Total
11,458
10,864
1
Excess CET1 capital is determined in accordance with section 268d of the Danish Financial Business Act no 1390 of 18 November 2025.
Debt buffer requirement
DKKm
31 Dec
2025
31 Dec
2024
Debt buffer requirement
7,885
7,827
Note 21
Maturity analysis for selected assets and liabilities
Remaining maturity
31 Dec 2025, 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
1,086
37,826
-
-
-
38,912
Loans and receivables at fair value
69
2,203
7,923
44,635
339,400
394,230
Debt to credit institutions and central banks
-
8,888
2,250
4,500
-
15,638
Bonds in issue at fair value
-
14,929
52,338
192,578
138,342
398,188
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
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
2025
2024
Operating items
Interest income:
712
1,129
Interest expenses:
-286
-331
-62
-95
Fee and commission income:
1
1
Fee and commission expenses:
-1,049
-1,021
-58
-45
Value adjustments:
-9
-4
Other operating income
0
0
Staff and administrative expenses:
-55
-42
-565
-1,407
-12
-10
Value adjustments:
-3
-3
Profit from equity investment in associated undertaking
1
-1
Assets
Receivables from credit institutions
38,912
37,894
Interest receivable from credit institutions
18
44
Investment in associated undertaking
22
21
Other assets
50
89
- of which derivatives
37
46
Debt
Debt to credit institutions
15,638
8,955
Bonds in issue at fair value
3,167
9,328
Interest payable
16
46
IT expenses payable
11
11
Other liabilities
122
8
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
116,007
115,033
Nordea Bank has provided guarantees relating to registration with the Land Registry, loans disbursed
ahead of building start as well as other statutory guarantees
9,364
7,293
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
2025
2024
2023
2022
2021
Total capital ratio
1
20.6
21.6
30.7
30.5
26.6
Tier 1 capital ratio
1
19.2
20.1
28.5
28.4
24.7
Pre-tax return on equity, %
9.0
6.4
6.9
6.2
6.3
Post-tax return on equity, %
6.6
4.7
5.1
4.8
4.9
Income/cost ratio
3.6
1.8
1.9
1.9
2.1
Foreign exchange exposure as % of tier 1 capital
1.2
1.1
1.0
1.3
1.1
Loans/equity ratio
17.4
17.6
17.5
17.3
19.4
Lending growth for the year, %
1.0
-1.9
-2.9
-0.5
6.6
Impairment ratio for the year
0.0
0.0
0.0
0.0
0.0
Return on assets, %
0.3
0.2
0.3
0.2
0.2
1
The key figures have been computed in accordance with the Danish Financial Supervisory Authority’s definitions, see the Executive Order on Financial
Reports for Credit Institutions and Investment Firms etc.
32
Note 25
Series financial statements
DKKm
Note
Capital centre 2
Capital centre 1
(General
Capital Centre)
Total
Income statement for 2025
Income from lending
3,236
5
3,241
Interest, net
346
20
367
Administrative expenses, net
-1,467
-80
-1,547
Provisions for loan losses
-30
-6
-36
Tax
-518
-23
-541
Total
1,568
-85
1,483
Balance sheet, 31 Dec 2025
Assets
Mortgage loans
394,085
154
394,239
Other assets
70,111
1,514
71,625
Total assets
1
464,196
1,668
465,864
Liabilities and equity
Bonds in issue
2
425,208
401
425,609
Other liabilities
17,532
31
17,564
Equity
3
21,456
1,235
22,691
Total liabilities and equity
464,196
1,668
465,864
Note 1 Balance sheet, series financial statements
Balance sheet total, Nordea Kredit’s annual financial statements
440,730
Own bonds, not offset in series financial statements
25,066
Accrued interest
67
Balance sheet total, series financial statements
465,864
Note 2 Bonds in issue, series financial statements
Bonds in issue, Nordea Kredit’s annual financial statements
398,188
Own bonds, not offset in series financial statements
25,066
Deferred income
2,355
Bonds in issue, series financial statements
425,609
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 2025.
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 remuneration.
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 2025 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
2025
2024
Demand deposits with central banks
7,384
7,257
Receivables from credit institutions and central banks
1
38,912
37,894
Loans and receivables at fair value
394,230
391,360
Loans and receivables at amortised cost
0
0
Other asset items
181
354
Guarantees etc.
0
0
Loan commitments
1,745
1,857
Total
442,453
438,722
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
exposure 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 116,007m (DKK 115,003m) at end-
2025. 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-2025 the guarantee amounted to DKK 9,364m (DKK 7,293m).
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 weighted average LTV on loans for owner-occupied dwellings and holiday homes was unchanged 52% in 2025. The
weighted average LTVs for commercial and agricultural properties also remained at the same level as in 2024, with 41%
and 42%, respectively.
Mortgage loans by loan to value (LTV) and property category
Owner-occupied
dwellings and holiday
homes
Commercial
properties
Agricultural properties
Total
(%)
2025
2024
2025
2024
2025
2024
2025
2024
0–40%
26%
25%
45%
46%
42%
41%
32%
31%
40–60%
41%
42%
36%
35%
47%
48%
40%
41%
60–80%
29%
28%
18%
18%
10%
10%
25%
24%
>80%
4%
5%
0%
1%
1%
1%
3%
4%
Total fair value, DKKbn
266
271
97
90
32
31
395
392
Weighted average LTV
52%
52%
41%
41%
42%
42%
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 106m (DKK 103m at end-2024). 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
2025
2024
Recognised provisions
587
583
Impact on provisions if one notch downgrade
106
103
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 2025 the scenarios were weighted as follows: baseline 60%, adverse 20% and favourable 20% (the same weighting
as at the end of 2024).
The macroeconomic scenarios are provided by Group Risk at Nordea, based on the Oxford Economics Model. The forecast is a
combination of modelling and expert judgement, subject to thorough checks and quality control processes. The model has been
built to give a good description of the historical relationships between economic variables and to capture the key linkages
between those variables. The forecast period in the model is ten years. For periods beyond, a long-term average is used in the
ECL calculations.
The macroeconomic scenarios reflect Nordea’s view of how the Danish economy might develop in the light of continued
geopolitical uncertainty, trade conflicts and weak growth in major European economies. When developing the scenarios and
determining the relative weighting between them, Nordea took into account projections made by the central bank and Nordea
Research.
The baseline scenario foresees moderate growth in the Danish economy in 2026, supported by lower inflation and lower interest
rates. The uncertainty around foreign trade has receded with the conclusion of the EU-US trade agreement. The expansion is
expected to continue in Denmark in 2027 and 2028.
Unemployment in Denmark is expected to remain largely unchanged. Home prices are expected to continue growing in the
coming years, supported by lower interest rates. 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 renewed escalation of the trade conflict between the US and several countries could trigger a
European and Danish recession as firms postpone investments, exports slow down and households cut spending due to
weakening labour markets. Growth may also be depressed by escalating hybrid warfare, which could weigh on business and
consumer confidence. Central banks may regard the inflationary impulse from higher tariffs as temporary and continue cutting
interest rates, with rates moving lower than in the baseline scenario. Lower tariffs and an unwinding of trade policy uncertainty,
on the other hand, may lead to a stronger recovery than assumed in the baseline scenario.
37
Note 26
Risk and liquidity management, continued
The table below presents the applied scenarios and recognised loan loss provisions.
Scenarios and provisions 2025
2026
2027
2028
Probability
weight
Model-based
provisions,
DKKm
Adjustment,
model-based
provisions,
DKKm
Individual
provisions,
DKKm
Total
provisions,
DKKm
Favourable scenario
GDP growth, %
3.6%
2.1%
1.9%
20%
Unemployment, %
2.5%
2.4%
2.4%
Home prices, %
4.6%
3.6%
2.0%
Baseline scenario
GDP growth, %
2.0%
1.7%
1.7%
60%
252
306
1
29
587
Unemployment, %
2.9%
2.9%
2.9%
Home prices, %
3.6%
3.3%
2.0%
Adverse scenario
GDP growth, %
-0.9%
1.0%
1.6%
20%
Unemployment, %
4.6%
4.7%
4.7%
Home prices, %
-5.4%
1.1%
2.0%
1
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
307
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
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 245m, mainly reflecting the risk related to severe unemployment and
geopolitical risk. 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 15m covering the Green Tripartite agreement etc.
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 2025 as 11% of corporate customers migrated upwards (2024: 8%), while 13% (2024:
11%) were downrated. 97% (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% (97%) 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.
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 2025
Stage 1
Stage 2
Stage 3
Total
6 / A
94
0
0
94
5 / B
185
1
0
186
4 / C
92
1
0
93
3 / D
11
1
0
12
2 / E
1
2
0
4
1 / F
0
2
0
2
0 (credit impaired)
0
0
3
4
Unrated customers
0
0
0
0
Total
383
8
4
395
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
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 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-2025
(2024: DKK 218m). In addition, the interest rate risk on capital and liquidity investments must not exceed 8% of own funds, or
DKK 1,741m (2024: DKK 1,744m).
Nordea Kredit operates with interest rate risk significantly below both of the above-mentioned limits.
Interest rate risk
31 Dec
31 Dec
Interest rate risk
2025
2024
IR risk related to capital and liquidity investments
1
13
14
IR risk related to cash flow mismatches
2
2
3
1
2
Currency risk
At end-2025 the currency risk amounted to DKK 0.4m (2024: DKK 0.3m) with effect on profit before tax and equity and relates
solely to exposures in euros.
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 2025 the LCR DA was 218% and the LCR including the pillar 2 add-on was 179%.
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
executive management and 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 the application of the Compliance
Risk Management Framework which provides the governing principles and tools for all compliance risk management across the
group.
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 2025 is distributed as follows:
DKKm
DKKm
Retained earnings
19,469
Retained earnings
19,469
Net profit for the year
1,483
Proposed dividends to the shareholders
1,483
Total
20,952
Total
20,952
The company’s distributable earnings amount to DKK 20,952m. After the proposed distribution of earnings, the company’s
unrestricted shareholders’ equity amounts to DKK 19,469m.
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 2025.
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 assets, liabilities and financial
position at 31 December 2025 and of the results of the company’s operations for the financial year 1 January–31 December
2025.
Further, in our opinion, the Management’s report provides a fair review of the development in the company’s operations and
financial matters, the results of the company’s operations and financial position and describes the material risks and
uncertainties affecting the company.
In our opinion, the annual report of Nordea Kredit Realkreditaktieselskab for the financial year 1 January–31 December 2025
identified as nordeakredit-2025-12-31-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 2026
Board of Directors
Anders Holkmann Olsen Anne Rømer Anita Ina Nielsen
(Chair) (Vice Chair)
Anders Frank-Læssøe Tina Helen Sandvik Christian Ulrik Johannessen
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 2025
and of the results of the Company’s operations for the financial year 1 January to 31 December 2025 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 2025
comprise income statement and statement of comprehensive income, balance sheet, statement of changes in equity and
notes, 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 the Company in accordance with the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants (IESBA Code) as applicable to audits of financial statements of
public interest entities, 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 11 years
including the financial year 2025. We were reappointed following a tendering procedure at the General Meeting on 1 April
2025.
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 2025. 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 risk of economic downturn, Management has recognised a
substantial provision for expected 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 accounting policies 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 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. This included:
•
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
•
information of the entities or business units as a basis for forming an opinion on the Financial Statements. We are
responsible for the direction, supervision and review of the audit work performed. We remain solely responsible for our
audit opinion.
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 2025 with the file name
nordeakredit-2025-12-31-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
2025 with the file name nordeakredit-2025-12-31-en.xhtml is prepared, in all material respects, in compliance with the ESEF
Regulation.
Hellerup, 27 March 2026
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, Business Banking 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
Member of the Board of Directors of Nordea Pension Holding
Denmark A/S
External assignments:
Member of the Board of Directors of Karl Pedersen og Hustrus
Industrifond
Deputy to First Vice Chair of the Board of Directors of FR I AF
16. SEPTEMBER 2015 A/S
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:
Chief Financial Officer, Large Corporates & Institutions, Nordea Bank
Abp
External assignments:
None
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
External assignments:
None
Executive Management of Nordea Kredit
Morten Boni
Internal assignments:
Chief Executive Officer
Member of the Board of Directors of Danbolig A/S
External assignments:
Member of the Board of Directors of e-nettet A/S
Kasper Lykke Møller Ingemann
Internal assignments:
Deputy Chief Executive Officer
External assignments:
None
47
Nordea Kredit Realkreditaktieselskab
Business registration no 15134275
Grønjordsvej 10,
2300 Copenhagen S, Denmark
Tel +45 70 33 33 33
www.nordeakredit.dk