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Nykredit Realkredit Q2 up YOY despite higher impairments

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Nykredit Realkredit Q2 up YOY despite higher impairments

Nykredit Realkredit A/S posted second-quarter group profit attributable to shareholders of 1.93 billion Danish kroner, up from the year-ago 1.56 billion kroner.

Net interest income came in at 2.77 billion kroner, an increase from 2.76 billion kroner a year ago. Fee and commission income rose year over year to 832 million kroner from 647 million kroner, so did fee and commission expenses, to 915 million kroner from 744 million kroner.

The Copenhagen-based banking group booked impairment charges for loans, advances and receivables of 213 million kroner, up year over year from 110 million kroner. Depreciation, amortization and impairment charges for property, plant and equipment as well as intangible assets increased to 66 million kroner from 22 million kroner a year ago.

The group's attributable profit for the first half climbed to 3.50 billion kroner from 3.18 billion kroner in the year-ago period. Posttax return on equity for the half was 4.5%, compared with the year-ago 4.2%.

On July 16, the Nykredit A/S group raised its profit guidance for 2019, with pretax profit and business profit for the year expected to be between 7.25 billion kroner and 7.75 billion kroner. Nykredit noted that the revised guidance also took into account Luxembourg-based Sparinvest Holdings SE, in which it agreed to acquire a 75% stake. That deal is now slated to close August-end.

The group's common equity Tier 1 ratio was 20.5% as of June-end, compared with 20.4% at the end of March and unchanged from the end of June 2018.

As of Aug. 19, US$1 was equivalent to 6.72 Danish kroner.