KommuneKredit announces Interim Report 2019

SUMMARY

• Profit for the period before value adjustments was DKK 187 million, which was DKK 15 million higher than in the same period of last year. 
• Comprehensive income for the period amounted to DKK 316 million against DKK 261 million in the corresponding period last year. 
• Net interest income totalled DKK 250 million in the first half of 2019, which is comparable to the first half of 2018. 
• Common Equity Tier 1 (CET1) capital, which corresponds to equity, rose to DKK 8,052 million from DKK 7,736 million at the end of 2018. 
• The equity ratio was unchanged at 3.4% from the end of 2018. 
• In the first half of 2019, the value of lending and leasing rose by DKK 8.4 billion to DKK 185.9 billion, of which DKK 2.8 billion came from new lending and the remainder from value adjustments. 
• No loss on lending for the 120th consecutive year.

COMMENT FROM THE CEO

In connection to the announcement of the Interim Report 2019 CEO Jens Lundager says:

" KommuneKredit recorded a satisfactory financial performance in the first half of 2019 with profit slightly exceeding expectations at the start of the year. We cover almost all local financing requirements across Denmark within our defined operating parameters. This underlines that we – after 120 years of existence – still have a viable business model as a common debt office for Danish local authorities. 

I am also very satisfied that we have succeeded in becoming a AAA issuer with Standard & Poor’s, again, after only one year. Our efforts included adjusting to fit some of Standard & Poor’s calculation methods without having to change our business model."

GUIDANCE FOR 2019

Net lending is still expected to amount to approximately DKK 2 billion in 2019. Guidance for net interest income for 2019 has been revised up from DKK 400 million to DKK 500 million. Profit before tax, barring value adjustments, has been revised up from DKK 280 million to DKK 380 million. To which are added value adjustments, which in the first half of 2019 amounted to DKK 218 million.