KommuneKredit announces Annual Report 2024

Summary

• Net interest income came to DKK 730 million, up from DKK 467 million in 2023.
• Profit before tax and value adjustments was DKK 523 million, which is DKK 259 million above the year-earlier level driven by the increase in net interest income.
• Comprehensive income for the year totalled DKK 8 million against DKK 414 million in 2023. The lower comprehensive income reflects the past few years’ large positive value adjustments which were offset by negative value adjustments in 2024.
• Net lending, i.e. new lending including leases less repayments and redemptions, amounted to DKK 6.2 billion.
• Loans and leases totalled DKK 194 billion at year-end, and total assets amounted to DKK 252 billion.
• Common Equity Tier 1 (CET1) capital, which corresponds to equity, stood at DKK 10.188 million at year- end, up from DKK 10,180 last year.

Profit before tax and value adjustments came to DKK 523 million in 2024, or slightly higher than expected in the interim report. Profit before tax and value adjustments was up by DKK 259 million on 2023, mainly attributable to the higher net interest income of DKK 730 million in 2024 compared with DKK 467 million in 2023. The increase in net interest income was driven by a higher income from securities.

Value adjustments for the year were a negative DKK 510 million, primarily because previous years’ positive value adjustments were offset by negative value adjustments in 2024. As a result, comprehensive income came to a positive amount of DKK 8 million in 2024.

In accordance with the Articles of Association, KommuneKredit does not pay dividends. Accordingly, profit after tax is transferred to equity which stood at DKK 10,188 at end-2024 against DKK 10,180 in 2023.

The net lending of DKK 6.2 billion was primarily driven by loans to district heating companies which are in the process of establishing or expanding district heating areas. To this should be added other investments related to the green transition, such as investments in water supply and wastewater management.

Outlook for 2025
KommuneKredit continues to foresee strong and stable financing opportunities for 2025. While new loans and leases are expected to be in line with 2024, we forecast a higher-than-usual runoff of existing loans. Therefore, net lending is likely to amount to DKK 0.5 billion, which is slightly lower than usual.

It is our expectation that the proportion of green loans will continue to rise in line with previous years. We expect to maintain the equity ratio above 3 per cent, that net interest income will amount to about DKK 750 million and that administrative expenses will amount to about DKK 215 million.

Contact
CEO Jens Lundager,

phone 3369 7622, e-mail: [email protected]

Attachments

• KommuneKredit_Financial statement_AR2024
• KommuneKredit_AR2024_UK