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KommuneKredit announces Interim Report for 1st Half 2023

Press release -

KommuneKredit announces Interim Report for 1st Half 2023

KommuneKredit has today 7 September 2023 announced the Interim Report for the 1st half of 2023.


• Profit for the period amounted to DKK 87 million before tax and value adjustments, while comprehensive income was DKK 187 million against DKK 468 million in the 1st half of 2022.

• Net interest income amounted to DKK 191 million, which is an increase of DKK 4 million relative to the year-earlier period.

• The value of total lending rose from DKK 175.0 billion at year-end 2022 to DKK 181.1 billion as of 30 June 2023, which is due to the growth in net lending and positive value adjustments.

• Common Equity Tier 1 (CET1) capital, corresponding to equity, increased to DKK 9,953 million from DKK 9,766 million at the end of 2022.

KommuneKredit’s profit before value adjustments and tax amounted to DKK 87 million as of 30 June 2023, which is an increase of DKK 22 million compared to the same period last year. This includes net interest income of DKK 191 million and administrative expenses of DKK 100 million. With value adjustments of DKK 153 million, the comprehensive income for the period was DKK 187 million.

In accordance with KommuneKredit’s articles of association, the association may not pay dividends, which is why net profit is transferred to equity. KommuneKredit had an equity ratio of 4.1 pct. as of 30 June 2023, which is in line with expectations for the year.

New Act on KommuneKredit

A new act on KommuneKredit came into force on 1 July 2023. There are no changes to the basic business model and existing lending agreements continue without alteration, but the act opens up for lending to Greenlandic and Faroese municipalities against a full guarantee from the Danish State. We expect to start lending to Greenlandic municipalities from 1 January 2024.

Outlook for 2023

Relative to previous guidance, we downgrade net lending from the expected level of DKK 4.5 billion to DKK 3.0 billion. We have also upgraded our guidance for administrative expenses from DKK 190 million to DKK 205 million. This is due to progress in our strategic projects, in which we have successfully started up projects faster than we had budgeted for at the beginning of the year and higher costs for VAT and payroll tax. Accordingly, we forecast a profit for the year before value adjustments and tax of DKK 195 million. Value adjustments for the first half of 2023 amounted to DKK 153 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.


Jens Lundager

Jens Lundager

Press contact CEO +45 3369 7622