Mortgage lender kept its 2026 outlook at DKK 4.4-4.7 billion as green lending rose to DKK 36 billion and credit quality stayed strong.
Realkredit Danmark reported net profit of DKK 2,388 million for the first half of 2026, down from DKK 2,455 million a year earlier, as administration margin income declined and net reversals of loan impairment charges were lower. Administration margin income fell to DKK 2,713 million from DKK 2,809 million, reflecting margin pressure and a lower average personal customer lending portfolio, though the company said personal customer lending returned to positive growth in the second quarter. CEO Kamilla Hammerich Skytte said second-quarter earnings were supported by high activity and solid lending growth. She said lending expansion in the first half was driven by continued growth in the business customer segment and a return to positive growth among personal customers, helped by a housing market marked by high transaction activity and broad house price gains across Denmark. She added that price growth is expected to moderate but remain positive in the second half, and that the housing market remains robust. Credit quality remained strong, with an average loan-to-value ratio (loan size relative to property value) of 48%. Net loan impairment reversals were DKK 33 million, compared with a net reversal of DKK 129 million in H1 2025, while the allowance account stood at DKK 2,422 million at 30 June 2026 versus DKK 2,621 million at end-2025. The lender said it continued to develop flexible mortgage offerings, including FlexLife, and adjusted pricing on fixed- and variable-rate mortgage loans to stay competitive. It also highlighted joint initiatives with Danske Bank, including Danske BoligStart for young first-time buyers and Hurtigt BoligSvar, a fast-track pre-approval service that provides a response during the meeting or within two hours at the latest. In commercial real estate, Realkredit Danmark said it maintained a strong position in the first half, with investor interest focused on residential rental properties, especially in the Greater Copenhagen area, and rising activity in renovation and new construction of subsidised housing. It said transaction activity for commercial and investment properties was lower than a year earlier because of geopolitical uncertainty and possible implications for financial markets. Green lending rose to DKK 36 billion at 30 June 2026 from DKK 34.3 billion at end-2025, above the DKK 35 billion level cited in the company commentary. Realkredit Danmark said it is the largest provider of green loans for properties in Denmark and expects the postponed implementation of the EU Energy Performance of Buildings Directive (EPBD) to accelerate energy renovations in the coming years. The company maintained its forecast for 2026 net profit in the range of DKK 4.4-4.7 billion.