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Cover of KommuneKredit's Interim Report 2020
Cover of KommuneKredit's Interim Report 2020

Press release -

KommuneKredit announces Interim Report 2020


▪ Lending and leasing increased by close to DKK 6 billion to DKK 191 billion, of which DKK 4 billion was due to new loans and leases in the period.

▪ Net interest income decreased to DKK 221 million against DKK 250 million in the same period last year, which is in line with expectations at the end of 2019.

▪ Pre-tax profit amounted to DKK 186 million.

▪ Comprehensive income for the period amounted to DKK 145 million against DKK 316 million at the end of the first half of 2019.

▪ Common Equity Tier 1 (CET1) capital corresponding to equity increased to DKK 8,324 million from DKK 8,179 million at the end of 2019.

▪ At 3.5% the equity ratio is unchanged from 31 December 2019.

KommuneKredit has today 3 September 2020 announced the interim report 2020.

The outbreak of COVID-19 caused turmoil in the financial markets in the first half of 2020. However, the pandemic has not curtailed our lending to our customers, and KommuneKredit has had a satisfactory economic development.

Due to the agreements between the government, LGDK and Danish Regions to excel capital investments our expectation for net lending in 2020 has been raised from DKK 2 billion to DKK 4 billion. The association meets nearly all municipal and regional financing requirements within the parameters of the Danish regulation on public sector tasks performed by municipalities and regions and the EU state aid rules.

In accordance with KommuneKredit’s articles of association, we may not pay dividends, which is why net profit is transferred to equity. KommuneKredit maintains an equity ratio of 3.5%.

In connection with the announcement of the interim report CEO Jens Lundager states:

“To safeguard our activities, we have designed our business in such a way that – even during severe financial stress – we would still be able to continue our lending activities for up to one year without having to issue bonds. Despite the special situation this past spring, the financial performance of KommuneKredit in the first half of 2020 was in line with expectations.”

He continues:

“We have also seen progress in terms of green finance. Our Green Bond Committee has approved close to 100 new green loans of a combined value of DKK 3.1 billion. With the latest approvals, which are testament to the green transition in the Danish local governments, the committee has approved green loans totalling DKK 22.4 billion. Simultaneously, we are focused on creating a strategic step change when it comes to integrating sustainability at the core of our business. As part of these endeavours, we will explore whether we can extend the limits for issuing green bonds.”


KommuneKredit holds a strong market position and has a low risk tolerance. This has served us well during COVID-19. We therefore still expect a stable development for the remainder of 2020. We are raising expectations for net lending from approximately DKK 2 billion to around DKK 4 billion, while expectations for net interest income is maintained at around DKK 400 million.

We maintain expectations that administrative expenses for the year 2020 will end at DKK 150 million.


KommuneKredit is an association, whose purpose is to provide lending to municipalities and regions and companies with a 100% municipal guarantee.

The association is the municipalities and regions own credit institution and exist solely for our clients.

Press contacts

Jens Lundager

Jens Lundager

Press contact CEO +45 3369 7622

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