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Realkredit Danmark Group
Annual Report
2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
Contents
Management’s report
Financial statements
Statements/Management and directorships
Income statement
Statement of Comprehensive income
Balance sheet
Statement of capital
Cash flow statement
Notes
26
26
27
28
30
31
Financial highlights
Realkredit Danmark at a glance
Financial review
3
4
5
6
6
Statement by the management
Independent auditor’s report
66
67
The year 2025
Management and directorships - Board of Directors
Management and directorships - Executive Management
Supplementary information
70
73
74
Strategy execution
Sustainable finance
Green bond funding
Corporate responsibility
Rating
6
7
7
7
Results
7
Balance sheet
7
Capital and solvency
Fourth quarter 2025
Outlook for 2026
8
8
8
Macroeconomics and Property market
Lending
Funding
Business focus on sustainability
Capital and risk management
Management
9
12
14
16
20
22
2
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
5-year financial highlights – Realkredit Danmark Group
Net profit for the year
Balance sheet (end of year)
(DKK millions)
2025
2024
2023
2022
2021
(DKK millions)
2025
2024
2023
2022
2021
Administration margin
Net interest income
Net fee income
5,588
1,281
-9
5,543
1,545
21
5,593
1,114
-70
5,733
93
5,857
46
Due from credit institutions etc.
Mortgage loans
22,978
740,491
51,181
1,914
17,628
755,539
52,291
1,565
11,618
753,624
49,580
1,441
8,761
724,438
46,722
2,307
18,643
810,139
46,435
1,782
18
-127
55
Bonds and shares
Other assets
Income from investment portfolios
Other income
217
96
183
48
108
95
84
84
136
Total assets
816,564
3,500
827,023
3,500
816,263
2,000
782,228
2,000
876,999
2,000
Total income
7,185
898
7,300
1,010
6,290
333
6,904
1,055
5,849
-114
5,963
1,569
4,394
5,976
1,105
4,871
212
5,967
995
Due to credit institutions etc.
Issued mortgage bonds
Other liabilities
Expenses
751,752
6,216
762,125
6,756
756,509
7,531
724,105
6,646
820,950
4,577
Profit before loan impairment charges
Loan impairment charges
Profit before tax
6,287
-258
6,545
1,697
4,848
4,972
269
Total equity
55,096
816,564
54,642
827,023
50,223
816,263
49,477
782,228
49,472
876,999
5,957
1,533
4,424
4,659
1,033
3,626
4,703
1,034
3,669
Total liabilities and equity
Tax
Net profit for the year
Throughout the Management’s report, Realkredit Danmark’s performance is assessed on the basis of the financial highlights and
segment reporting, which represent the financial information regularly provided to management. The financial highlights represent
reconciliation of the financial highlights and the IFRS financial statement that are non-IFRS measures. Note 2 provides an explana-
tion of the differences and a reconciliation between these measures and IFRS.
Ratios and key figures
(DKK millions)
2025
2024
2023
2022
2021
Net profit for the year as % of avg. total equity*
Cost/income ratio (%)
9.1
12.5
29.7
29.7
240
8.4
13.8
31.9
31.9
233
8.8
15.3
31.5
31.1
229
7.3
18.5
29.1
28.6
227
7.4
16.7
25.3
24.9
217
Total capital ratio (%)
Tier 1 capital ratio (%)
Full-time-equivalent staff, end of year
* For 2025, the Return on average Shareholders’ equity has been calculated as net profit divided by the average of the quarterly average shareholders’ equity (beginning and
end of each quarter). For previous years the calculation is net profit divided by the average of shareholders’ equity (beginning and end of each year).
3
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
Realkredit Danmark at a glance
“The year 2025 delivered financially satisfactory results, driven by the strength of our
core business and reflecting our commitment to providing value and reliability to our
customers.”
- Kamilla Hammerich Skytte, CEO
Net profit in 2025 of
Net loan impairment reversal of
DKK 4,848 billion
DKK 258 million
Up 9.6%
Total lending
Green lending
DKK 784 billion
DKK 34.3 billion
Down 1.4%
Up 18.2%
Outlook for financial year 2026
Profit before loan impairment charges is expected to remain consistent with 2025’s perfor-
mance. On the basis of a normalised loan impairment level, Realkredit Danmark expects net
profit for 2026 within the range DKK 4.2-4.7 billion.
4
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
Financial review
digitally and provides a clear overview of mortgages, and other
home financing related offers.
Kamilla Hammerich Skytte, CEO, comments on the financial re-
sults:
In the fourth quarter of 2025, we introduced an improved digital
home finance tool designed to function both as a personalised
home finance calculator and a platform that enables prospective
buyers to identify affordable properties while providing insights
into how purchasing a specific home will affect their financial sit-
uation.
“Realkredit Danmark achieved a solid result for 2025. Loan im-
pairment reversals and lower costs contributed to increased net
profit relative to the level in 2024. Credit quality remained strong
with an average loan-to-value ratio of 49% at the end of 2025.
In 2025, several steps were taken to enhance the home finance
and mortgage offerings at Realkredit Danmark. In April, the addi-
tional margin on new interest-only loans with a loan-to-value ra-
tio below 60% was removed. This change provides customers
with greater flexibility in managing and planning their finances,
enabling them to achieve a better balance between home equity,
liquid savings, and pension contributions, while supporting in-
formed financial decisions for both the short and long term.
In the commercial real estate market, 2025 delivered strong re-
sults characterised by a significant increase in transaction activ-
ity and growth in commercial lending. The rise in activity was
driven by renewed interest from international investors, particu-
larly in residential rental property, and by an improved balance
between the return on properties and the lending rate.
Realkredit Danmark further solidified its position as a leader in
sustainable financing, with its green loan portfolio surpassing
DKK 34 billion by the end of 2025. Looking ahead, new housing
policy initiatives are expected to drive construction and renova-
tion in social housing, supporting ongoing positive development
within the sector.
As part of Danske Bank Group, Realkredit Danmark plays a key
role in the strategic ambition of being a leading bank within mort-
gages and property finance, both for households and business
customers.
Together with Danske Bank, we introduced the Danske BoligStart
concept in June to provide 18- to 38-year-old homebuyers with
greater confidence and clarity during what can often feel like a
roller-coaster home-buying journey. The concept offers favoura-
ble advantages and guidance designed to minimise uncertainty
and support first-time homebuyers every step of the way.
The Danish housing market performed well in 2025, supported by
a robust labour market with record-high employment levels and
easing inflation. Despite low consumer confidence, the housing
market continued to thrive, with increasing prices and activity lev-
els. Copenhagen experienced notable price growth in owner-oc-
cupied flats. While high prices heighten the risk of declines in the
event of economic deterioration, growth is projected to moderate
in 2026, with an estimated increase of 6.5%.
We have also enhanced our responsiveness to loan applications
with initiatives such as Hurtigt Boligsvar ensuring customers re-
ceive a reply within 24 hours of applying for a home loan. Fur-
thermore, new digital features have been introduced in Danske
Bank's housing section of the mobile banking app. These include
user-friendly tools such as the loan monitoring ‘traffic light’ sys-
tem, which simplifies the process of initiating remortgaging
The year 2025 demonstrated stable performance, reflecting the
dedication and efforts of our colleagues during a year marked by
global uncertainty and a rise in market activity.”
5
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
The year 2025
collaboration between customers and advisers. Additionally, a
new concept named Hurtigt BoligSvar was launched, enabling
home buyers to act quickly and get a response within 24 hours
about their home-buying options. A customer-centric Loan
Guide was provided to all advisers to enhance the quality of
guidance provided to customers.
The commercial real estate market performed well in 2025,
characterised by increased transaction activity. Improved align-
ment between buyer and seller interests, alongside the return of
international investors — particularly in the residential rental
property segment — were key drivers behind this positive devel-
opment. Transaction volumes significantly exceeded those of
the previous two years, positioning 2025 as a strong year for ac-
tivity in the commercial real estate market.
customers. The Forward ’28 strategy sets new ambitions and
commitments, with significant investments in digital customer
offerings, expert advisory services and sustainability.
In 2025, Realkredit Danmark achieved a solid net profit of
DKK 4,848 million, against DKK 4,424 million in 2024. The profit
increase was driven primarily by a net reversal of loan impair-
ment charges and lower expenses.
Through rd.dk and the Group’s digital interfaces, several initia-
tives have been launched to enhance the customer experience,
which provides customers with greater control and convenience
over their loans. Additionally, the Housing Universe on Danske
Bank Mobile offers intuitive insights, a full home finance over-
view, instant calculations, and purchase certificates to provide
clarity and peace of mind early in the home search process with
partners, such as home realtor, just a few clicks away. Proactive
loan monitoring enables customers with fixed-rate loans to eas-
ily view their remortgage loan potential. Furthermore, improved
loan calculation tools and a new site, that consolidates all rele-
vant information about refinancing, have been launched.
The increase in lending activity towards the end of 2024 contin-
ued into 2025, driven by new lending.
More efficient processes were also established to better meet
customer needs. A leaner credit process system was introduced
to reduce waiting times for property purchase meetings, ensur-
ing customers receive an answer within 24 hours. Adviser deci-
sion-making authority was expanded, enabling faster and more
effective customer support during critical decision-making mo-
ments.
Nominal residual mortgage debt at Realkredit Danmark fell
around DKK 11 billion to DKK 784 billion at end-2025.
Realkredit Danmark financed several of the largest transactions
in the Danish commercial real estate market in 2025, reinforcing
its strong market position. This further supported by Realkredit
Danmark’s green lending portfolio, which exceeded DKK 34 bil-
lion in 2025 and established it as the largest lender of green
loans for properties in Denmark. This milestone highlights
Realkredit Danmarks commitment to sustainable financing and
strengthens the role as a key partner in facilitating environmen-
tally responsible investments in the real estate market.
Realkredit Denmark plays an important role in the Danske Bank
Group’s Forward ’28 strategy. In 2025, Realkredit Danmark con-
tinued, together with Danske Bank, to introduce several initia-
tives within the home finance area, reflecting the Group's com-
mitment to the Forward ’28 strategy and strengthening our posi-
tion as a trusted partner for homeowners. These initiatives aim
to simplify and enhance the home finance experience for our
customers while supporting their broader financial goals.
To support home finance customers in making energy renova-
tions and improve the resilience of their homes against the
changing climate, advisory services and access to loan products
were broadened. Energy improvement loans with no establish-
ment fee now cover battery systems and smart home devices. In
Danske Mobile Banking, Energy Performance Certificates (EPCs)
are displayed together with options on energy improvements
and access to our advisory services and products.
In 2026, we will continue to strengthen our relations with exist-
ing customers and attract new ones by focusing on proactive en-
gagement and tailored offerings. Realkredit Danmark want to be
present where our customers are and strive to make it seamless
experience both to be and to become a customer with Realkredit
Danmark.
The introduction of the EU Omnibus Simplification Package in
early 2025 has led to a decline in energy renovation projects.
With clarification on the implementation of the EU Building Di-
rective expected in May 2026, some renovation projects have
been temporarily postponed.
During the first half of the year, Realkredit Danmark and Danske
Bank, continued to strengthen their offering to home financing
customers on an ongoing basis, with one new feature launched
each month, highlighting a commitment to and agility in driving
improvements. For example, the additional margin on new loans
with interest-only periods of up to ten years where the loan-to-
value ratio is below 60% was removed, enabling customers to
optimise their financial position with a holistic approach to sav-
ings and long-term goals. The Danske BoligStart concept was in-
troduced, offering favourable conditions for home finance cus-
tomers aged 18-38 and ensuring a secure, tailored home-buying
process. It also became possible for our customers to make
changes to their profiles digitally, thus simplifying routine pro-
cesses and enhancing the customer convenience. Additionally, a
housing universe was developed in Danske Mobile Banking,
which offers customers a comprehensive overview of home-re-
lated solutions and valuable financial insights.
Sustainable finance
Our YouGov survey indicated increasing concern regarding the
impact of the changing climate. To engage with our customers
and increase awareness of the support we can provide, we
launched a climate renovation campaign; “Water, water and wa-
ter” in the spring, supported by a new landing page on dans-
kebank.dk and 1:1 customer communication.
The societal transformation required to address climate change
presents both risks and opportunities for our customers
and for our business activities. At Realkredit Danmark, we are
deeply committed to supporting society’s transition towards a
net-zero future while helping our customers adapt to the chal-
lenges posed by the changing climate. This commitment is cen-
tral to our long-term strategy, and in 2025, we took further steps
to inspire and support our customers through targeted advice
and financial solutions.
The Danish Parliament introduced a housing policy initiative late
in the year, under which the maximum financing limit for social
housing projects was increased to provide an incentive for con-
struction and renovation activity. Realkredit Danmark expects
this change to significantly boost renovations and the construc-
tion of new social housing in the years ahead.
These features represent important steps in Realkredit Dan-
marks ongoing efforts to enhance its offerings and deliver signifi-
cant value to customers. They underscore the ambition to be a
leading provider of mortgage finance and home finance solutions
while advancing the Forward ’28 strategy and strengthening the
position as a trusted home finance institution.
On 7 October 2025, it was announced that the Danish Systemic
Risk Council had recommended maintaining the 7% Systemic
Risk Buffer (SyRB) on exposures to Commercial Real Estate in
Denmark, while also recommending widening the LTV band ex-
empted from the Danish SyRB. The government decision on the
new recommendation is pending.
In addition to upskilling our advisers and valuation experts, to-
gether with Danske Bank we have strengthened our collabora-
tion with trusted partners to deliver valuable insights and de-
velop action plans that benefit both homeowners and commer-
cial property owners. We continue to explore opportunities for
partnerships that can be of value for our customers.
The Danish housing market was in good conditions throughout
2025, supported by a strong labour market, with record high em-
ployment levels and lower inflation.
In the second half of the year, further features were introduced
to strengthen the home finance offering. The Preliminary Home
Purchase certificate was launched and incorporates call-to-ac-
tion elements and a new budgeting function to enhance
Strategy execution
As a part of Danske Bank’s Forward ’28 strategy, Realkredit Dan-
mark will maintain its ambition to provide an even better cus-
tomer experience for our home finance and real estate
However, progress with the property sector’s green transition re-
mains slower than anticipated. Many sustainable renovation
6
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
proposed model for utilising mortgage financing to fund large-
scale climate adaptation projects, such as dikes and dams.
projects have been postponed as commercial rental property
owners await Denmark’s implementation of the EU Energy Per-
formance of Buildings Directive in May 2026. Additionally, low
construction activity has led to fewer energy-efficient buildings
entering the market, further affecting the green transition mo-
mentum.
Rating
benefitted from improved macroeconomic scenarios and a re-
versal of post-model adjustments of DKK 243 million as the pos-
itive effects of lower inflation and interest rates continued to ma-
terialise. The total allowance account amounted to DKK 2,621
million at 31 December 2025 (31 December 2024: DKK 2,968
million).
Realkredit Danmark’s bonds are rated by SP Global and Scope
Ratings. Both rating agencies assign a rating of AAA to the bonds
in both capital centre S and T. The Other reserves series capital
centre is rated exclusively by SP Global, and these bonds also
hold a rating of AAA.
Green bond funding
RealkreditꢀDanmark remains committed to offering green bond
mortgage financing to the corporate segment. Our approach to
issuing green loans is governed by our Green Finance Frame-
work, whichꢀcomplies withꢀglobal standards for defining what is
considered green.
The expansion and integration of renewable energy remain at
the forefront of political priorities in Europe, driven by the need
to remain competitive while reducing dependence on imported
fossil fuels. The investments required in this area are substan-
tial, which presents significant opportunities for Realkredit Dan-
mark. From scaling renewable energy production to improving
electricity distribution and district heating integration for house-
holds and businesses, we support our utility customers with
long-term mortgage financing where feasible. For instance, in
2025, our first financing of a solar park marked a key milestone
in our efforts to support sustainable energy solutions.
The effective overcollateralisation requirement from the agen-
cies decreased during 2025, from DKK 25.8 billion at end-2024
to DKK 16.1 billion at end-2025.
The tax charge totalled DKK 1,697 million (2024: DKK 1,533 mil-
lion). The effective tax rate for 2025 was 25.9% (2024: 25.7%).
In 2025, we witnessed a continued increase in demand for green
financing. By the end of the year, our green loan portfolio had
grown by a net DKK 5.3 billion, reaching a total of DKK 34.3 bil-
lion. This expansion was largely driven by financing for green
buildings in Denmark. Green loans now represent 13% of our to-
tal lending to commercial properties in Denmark, excluding the
subsidised lending portfolio, compared to a market average of
10%. Demand for green loans in Sweden also saw a strong
comeback in 2025, with an increase in the Swedish loan portfo-
lio of 107%.
Balance sheet
Realkredit Danmark complies with all threshold values of the su-
pervisory diamond for mortgage credit institutions.
Mortgage lending at fair value dropped DKK 15 billion to
DKK 740 billion. The development in mortgage lending at fair
value was composed of a decrease in the nominal outstanding
bond debt of DKK 11 billion and a decrease of DKK 4 billion in
market value adjustments. Gross lending amounted to DKK 102
billion (2024: DKK 87 billion).
Results
In 2025, Realkredit Danmark’s net profit was DKK 4,848 million
(2024: DKK 4,424 million). Profit increased due to a net impair-
ment reversal and lower expenses.
The overall nominal effect was a DKK 18 billion decrease in the
personal customer portfolio and a DKK 7 billion increase in the
business customer portfolio.
Administration margin income increased DKK 45 million, mainly
driven by price adjustments related to the full implementation of
systemic risk buffer increases for commercial real estate cus-
tomers. Moreover, we continue to see more customers choosing
products with higher margins.
Throughout 2025, we monitored the implementation progress of
the tripartite agreement of the Agricultural Sector closely and
actively participated in identifying financial challenges and solu-
tions to support the green transition of the agricultural sector
and our customers. Further, we engage with our largest agricul-
tural customers on an ongoing basis to discuss how to manage
the transition risks of the individual farm.
Corporate responsibility
Realkredit Danmark continues to focus on ensuring a robust risk
and compliance culture across its organisation, thereby ensuring
that we live our core value of integrity in all interactions with our
customers and stakeholders and manage the financial and non-
financial risks associated with our business activities.
In 2025, fixed-rate mortgages accounted for approximately 25%
of all disbursed loans, while about 42% of all FlexLån® loans
were disbursed with refinancing intervals of less than five years.
Net interest income fell DKK 264 million to DKK 1,281 million in
2025 due to lower interest rate levels.
In nominal terms, the repayment of principal amounts is now at
the same level as before interest-only mortgages were launched
in 2003. Total ordinary repayments in 2025 equalled 3% of the
mortgage portfolio.
Adapting to climate change became even more clear and quanti-
fiable during 2025. Even though the acute and chronic risk to
Realkredit Danmark’s loan portfolio deriving from potential
flooding and increased precipitation is currently fairly low, we
see homeowners and businesses in some of the Danish Coastal
Authority’s 25 newly defined risk zones becoming more con-
cerned on future risks.
Net fee income fell DKK 30 million, driven primarily by a de-
crease in trading margins due to lower refinancing activity.
Danske Bank has developed a set of ethical principles for its use
of data. They define how we strive to act with regard to data use
across the Danske Bank Group and in our business relations.
Realkredit Danmark has adopted these principles.
Income from investment portfolios rose DKK 121 million to
DKK 217 million (2024: DKK 96 million).
At end-2025, the average loan-to-value (LTV) ratio was 49%
(end-2024: 53%).
Realkredit Danmark does not report separately on corporate re-
sponsibility. Realkredit Danmark is included in the Danske Bank
Group’s Sustainability Statement disclosed as part of the man-
agement report of the Danske Bank Group’s Annual Report
2025. The Danske Bank Group’s Annual Report 2025 is available
at danskebank.com/IR.
Realkredit Danmark remortgaged loans for DKK 37 billion in
2025 (2024: DKK 37 billion).
Expenses amounted to DKK 898 million in 2025 (2024:
DKK 1,010 million). The decrease was attributable to the discon-
tinuation of payments to the now fully funded Resolution Fund
and to reductions in operating expenses reflecting our continued
focus on operating efficiency and cost control.
To support homeowners in adapting their properties to with-
stand climate change effects, Realkredit Danmark and Danske
Bank have launched initiatives under which we offer fee-free
loans, which we actively communicate to our customers. Recog-
nising that individual efforts alone are insufficient, we have sug-
gested a national strategy with planning and prioritisation of pro-
tective measures, and we endorse the financial sector’s
Credit quality remained strong, and loan impairment charges
amounted to a net reversal of DKK 258 million in 2025 (2024:
charge of DKK 333 million). Loan impairment reversals
7
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
The value of repossessed properties was DKK 8 million (2024:
DKK 12 million). The delinquency rate at 31 December 2025 was
unchanged from the level at the end of 2024 and thus at a per-
sistently low level.
DKK 49.8 billion, Realkredit Danmark had DKK 15.2 billion in ex-
cess of the total capital requirement.
Under Danish law, Realkredit Danmark must publish its total
capital and solvency need on a quarterly basis. The rd.dk site
provides further information.
At end-2025, issued mortgage bonds amounted to DKK 839 bil-
lion and were at the same level as at the end of 2024. The nomi-
nal value of issued mortgage bonds was DKK 793 billion, which
was DKK 6 billion less than at the end of 2024. The amounts are
exclusive of holdings of own mortgage bonds. Realkredit Dan-
mark issued bonds for a total of DKK 102 billion exclusive of
bonds issued for refinancing auctions.
Fourth quarter 2025
Realkredit Danmark recorded a profit after tax of DKK 1,235 mil-
lion in the fourth quarter of 2025, against DKK 1,158 million in
the third quarter. The change in profit was attributable primarily
to income from the refinancing of FlexLån® loans in the fourth
quarter.
Realkredit Danmark is subject to the specific principle of balance
and therefore has very limited exposure to market risks. At the
end of 2025, Realkredit Danmark’s interest rate risk and ex-
change rate risk amounted to DKK 1,079 million and DKK 2 mil-
lion, respectively.
Outlook for 2026
In 2026, Realkredit Danmark expects income to be on par with
the level in 2025.
Operating expenses are expected up to DKK 1 billion reflecting
our focus on digital investments in accordance with the Forward
’28 strategy.
Capital and solvency
At the end of 2025, shareholders’ equity stood at DKK 55.1 bil-
lion (2024: DKK 54.6 billion). The ordinary dividend payment of
DKK 4.4 billion for 2024 and the consolidation of the net profit
for 2025 accounted for the change.
Loan impairment charges are expected at a normalised level.
Consequently, profit before loan impairment charges is expected
to remain consistent with 2025’s performance. On the basis of a
normalised loan impairment level, Realkredit Danmark expects
net profit for 2026 within the range DKK 4.2-4.7 billion.
Realkredit Danmark’s total capital amounted to DKK 49.8 billion,
and the total capital ratio calculated in accordance with the Cap-
ital Requirements Regulation and Directive (CRR/CRD) was
29.7%. At 31 December 2024, the corresponding figures were
DKK 49.8 billion and 31.9%, respectively.
Realkredit Danmark uses the internal ratings-based (IRB) ap-
proach to calculate the risk exposure amount for credit risks.
The total risk exposure amount (REA) was DKK 167.7 billion at
31 December 2025 (2024: DKK 156.3 billion).
At the end of 2025, Realkredit Danmark’s solvency need, includ-
ing the combined buffer requirement, was calculated at
DKK 34.6 billion, corresponding to a solvency need ratio includ-
ing buffers of 20.6% of the total REA. With total capital of
8
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
Macroeconomics and Property market
GDP
Stable mortgage rates
The monetary easing came as no surprise to investors, and at
2.5% mortgage rates for variable-rate loans at the end of 2025
were on par with the levels of January 2025. Fixed-rate 30-year
mortgage loans also remained stable throughout 2025 with a
mortgage rate close to 4%.
sharply during periods of economic growth and ongoing migra-
tion to major cities.
Economic uncertainty and geopolitical tensions remained high
throughout 2025. However, the global economy has stayed on
track.
In the first half of 2025, the European Central Bank (ECB) con-
tinued to ease monetary policy, implementing four rate cuts in
February, March, April and June. After that, the ECB kept interest
rates unchanged, confident that interest rates levels are “in a
good place”. Furthermore, increased public sector spending is
expected to support economic growth in the EU as most member
states adjust their defence spending to the increased NATO re-
quirements.
The steep price increases in Copenhagen and the high price level
made housing bubble discussions a prominent topic in the hous-
ing market in 2025. However, there are notable differences be-
tween the current situation and the period leading up to the fi-
nancial crisis in 2008. Firstly, there seems to be no imbalances
in the broader housing market. The housing burden for detached
houses nationwide is close to the historical average, and no sub-
stantial credit growth is observed – neither on a national level,
nor in Copenhagen. Moreover, the average loan-to-value ratio re-
mains low, suggesting that although the housing burden may be
high for buyers with a small down payment, this does not neces-
sarily reflect the situation for most buyers.
Denmark continued its strong economic performance with an-
nual real GDP growth of 4% in Q3 2025. Once again, 2025 was a
year in which the pharmaceutical industry, spearheaded by Novo
Nordisk, contributed strongly to Denmark’s GDP growth. Growth
ex-pharma is around 1.5% and thus on a par with the eurozone –
so, in that sense, Denmark largely resembles a typical European
economy, but with the additional boost from Novo Nordisk.
The steeper slope of the yield curve in 2025 compared to 2024
motivated an increasing share of homeowners to opt for varia-
ble-rate instead of fixed-rate mortgages. A variable-rate mort-
gage reduces the cost of ownership now but involves a risk of
rising costs if interest rates rise in the future. However, regula-
tion requires that homeowners that opt for variable-rate mort-
gages can withstand an increase in interest rates. In recent
years homeowners in general have been able to adjust their
household spendings and absorb an increase in interest pay-
ments as their interest rates have gradually been adjusted to
post-2022 levels.
Throughout 2025, the US central bank (the Federal Reserve) re-
mained concerned about the inflationary impact of tariffs. De-
spite strong pressure from President Trump, it refrained from
cutting interest rates until September, followed by additional
rate cuts in October and December.
Danish government finances remain healthy, and the current ac-
count surplus continues to be substantial.
A recent analysis by Danmarks Nationalbank, the Danish central
bank, revealed that most buyers, including first-time and sec-
ond-time buyers, can afford significant down payments, reduc-
ing their housing burden and future exposure to interest rate
changes. Additionally, the analysis suggests that first-time buy-
ers often receive financial support from wealthy parents to real-
ise their dream of owning property.
Low consumer confidence despite strong economy
The turmoil that dominated the global economy in 2025 once
again reminded Danish consumers about the risk of external
threats to their household economies. Still recovering from the
steep inflation of 2022, Danes saw a large chunk of their pension
savings vanishing in April 2025 as stock markets plummeted af-
ter the announcement of massive tariffs on US imports. Even
though the financial markets have recovered, consumer con-
cerns persist, and consumer confidence remained very low
throughout 2025. Furthermore, consumers’ perception of infla-
tion has exceeded actual inflation as food prices have risen
faster than other goods and services. Consequently, consumer
spending has been relatively subdued as Danish households
tend to prioritise savings and debt repayment over consumption.
Housing market – sales
The number of house sales in 2025 was close to the record lev-
els of 2021.
High and rising employment levels, together with real wage
growth and broadly stable mortgage rates, provided strong sup-
port for the housing market.
Despite these important nuances, double-digit annual price in-
creases are not healthy for the housing market. Hopefully, 2026
will bring a more moderate pace of price growth in Copenha-
gen’s housing market.
The strong demand was reflected in prices, which rose by 7% for
houses and terraced houses and 15% for owner occupied flats
on a national level but with regional variations.
Developments in the housing market also attracted political at-
tention towards the end of 2025, and the government intro-
duced several housing policy proposals that may be imple-
mented during 2026. Overall, the proposals were balanced, fo-
cusing on easier access to the housing market for young people,
improved opportunities for elderly homeowners to borrow
against home equity and more simple rules for home loans.
When addressing high housing prices, especially in the Copenha-
gen area, the focus should, however, remain on expanding the
housing supply.
In Copenhagen, prices of owner-occupied flats increased by
23%, and the housing burden is now well above the historical
average. Demand for residential properties is strong, as the in-
crease in population keeps outpacing the increase in residential
square metres in Copenhagen. Furthermore, owner-occupied
flats make up only a relatively small part of the overall housing
market in Copenhagen. As a result, prices tend to rise more
Annual Inflation in Denmark was 1.9%, which is roughly on a
level with the eurozone and somewhat lower than in the US,
where inflation remained close to 3%.
9
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
2025 was a good year for investment and commercial proper-
ties
Strong earnings in agriculture
Danish agriculture had a good year in 2025, although individual
segments have performed differently.
Although economic and geopolitical uncertainties remained high
for much of the year, their impact on the investment and com-
mercial property market was limited. What mattered more was
the continued solid growth in employment and the remarkable
stability of interest rates. Overall, 2025 proved to be a strong
year for investment and commercial properties.
Crop growers have enjoyed reasonable earnings thanks to a
good harvest and reduced interest expenses, but declining grain
prices have limited their profits. In contrast, livestock producers
gain from lower grain prices through reduced feed costs.
Dairy farmers benefited from high milk prices and lower interest
expenses in 2025, which lifted their earnings to a level only sur-
passed in 2022. Milk prices, which have been high since 2021,
declined in the third quarter of 2025 due to rising global milk
production. With the prospect of relatively low milk prices, a sig-
nificant drop in earnings is expected in 2026.
The positive development is also evident in data collected by our
valuation specialists. The data covers the following three seg-
ments: Offices, residential (private rental) and retail. Aggregated
into two sub-signals – the economic signal, which includes va-
cancy rates and rents, and the financial signal, which covers
yields and property prices – the data clearly highlights a positive
development. The economic signal – once again – remained in
positive territory throughout the year, reflecting the positive
business cycle and the solid rise in employment. However, the
financial signal also recovered and posted positive readings
throughout 2025, after posting primarily negative readings in
both 2023 and 2024. The improvement on the financial side is
also reflected in the transaction market, where we expect vol-
umes at 75 – 80 billion. for 2025, which is not only significantly
higher than in 2023 and 2024, but also close to being the third
best transaction year on record.
In 2025, weaner pig producers benefited from high demand for
weaner pigs in Europe as well as falling feed costs, ensuring
strong earnings. Slaughter pig producers, on the other hand,
faced high purchase prices for weaner pigs. However, Danish ab-
attoirs managed to raise settlement prices to a more competitive
level, achieving reasonable earnings compared to 2024. Prices
for both weaner and slaughter pigs fell significantly at the end of
the year due to China’s punitive tariffs on pork and the outbreak
of African swine fever in Spain. This resulted in increased supply
of pork and turbulence in the European market. The lower prices
are expected to continue well into 2026, resulting in declining
earnings.
In the office market, supply and demand are now more bal-
anced, as reflected in our valuation data. However, significant
regional differences persist.
The financial signal – yields and property prices – also posted
positive reading in 2025 after having posted primarily negative
readings in most of 2023 and 2024. The improved sentiment
was also reflected in the transaction market, as residential prop-
erties accounted for approximately 50% of total volumes in
2025.
The retail market was once again supported by a solid rise in re-
tail sales throughout 2025. If past trends hold, this suggests that
the number of smaller retail businesses (with fewer than 10 em-
ployees) will decline only slightly, as negative structural forces
continue to outweigh positive cyclical factors.
In the hotel market, positive momentum continued throughout
2025. Overnight stays are expected to reach record levels,
driven by rising numbers of both domestic and international
tourists, while the number of corporate guests has remained
largely unchanged. As a result, occupancy rates remained high in
2025. The positive sentiment in the hotel sector is also reflected
in the transaction marked, where volumes for 2025 are just
slightly below record levels.
In the residential (private rental) market, 2025 marked a signifi-
cant turnaround. On the economic side, it was largely “business
as usual,” with the economic signal – vacancy rates and rents –
remaining in positive territory. This positive trend is further re-
flected in the vacancy rate, which now sits at its lowest level in
recent history.
10
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
Building on the 2024 Green Tripartite Agreement, the Danish
government and several political parties reached a new nitrogen
regulation agreement in December 2025, set to take effect in
2027. These two agreements have the potential to significantly
reshape agriculture, affecting crop cultivation in the short term
and livestock production over the longer term. The effects are
expected to be greatest in areas with high regulatory pressure.
At the same time, one-sixth of agricultural land is being con-
verted into forest and natural areas, which, among other things,
will contribute in the long term to reducing CO2 and nitrogen
emissions and lessen the need for regulatory pressure on culti-
vated land. The new nitrogen regulation will impose costs on ag-
riculture, but as general compensation for these costs will be
provided, the agreements are not expected to trigger a large
wave of bankruptcies in agriculture.
11
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
Lending
Green bonds
The composition of the overall portfolio does not change as
Customer interest in green financing solutions continued to grow
in 2025. The RD Cibor6®Green loan was launched in Denmark in
2019, and at 31 December 2025, total lending amounted to
DKK 34.3 billion. In 2025 alone, mortgages for DKK 7.0 billion
were disbursed.
quickly. Measured by portfolio, there was a slight decline in the
share of fixed interest rate loans. At the end of 2025, fixed inter-
est rate loans accounted for 39%, against 41% at the end of
2024.
The share of mortgages with refinancing intervals of up to two
years rose from 16% in 2024 to 17% in 2025. Conversely, the
share of FlexLån® loans with refinancing intervals longer than
two years was 44% of total lending in 2025, which is at the same
level as in 2024.
The mortgages are typically granted for commercial property
used for letting purposes, and mainly for residential letting. The
properties must comply with a number of requirements to be fi-
nanced with green mortgages.
Total lending
Interest-only mortgages accounted for 66% of new lending for
owner-occupied dwellings and holiday homes in 2025. This is 13
percentage points more than in 2024, when about five in ten
new mortgages were issued with deferred amortisation. Despite
the waning interest in deferred amortisation, interest-only mort-
gages still accounted for more than half of total lending for
owner-occupied dwellings and holiday homes in 2025.
Gross and new lending activity was higher in 2025 than in 2024.
In 2025, gross lending amounted to DKK 102 billion (2024:
DKK 87 billion).
Realkredit Danmark’s total mortgage lending fell DKK 11 billion
in nominal terms in 2025. At the end of 2025, the total loan port-
folio amounted to DKK 784 billion (end-2024: DKK 795 billion).
Business market
At end-2025, the loan portfolio amounted to DKK 389 billion in
nominal terms, representing an increase of DKK 7 billion on the
year before. The increase was driven primarily by net new lend-
ing, which amounted to DKK 18 billion in 2025, against DKK 13
billion in 2024.
In 2025, Realkredit Danmark recorded an overall nominal port-
folio decline of DKK 18 billion.
Remortgaging activity amounted to DKK 37 billion in 2025
(2024: DKK 37 billion).
Personal market
Realkredit Danmark’s lending to owner-occupied dwellings and
holiday homes amounted to DKK 394 billion at end-2025 (end-
2024: DKK 413 billion).
However, many borrowers replaced their mortgage loans with
bank home loans in 2025, resulting in a slight increase at Group
level.
In 2025, more customers opted for variable interest rate loans
than in 2024.
As in 2024, there was no significant remortgaging activity in
2025.
An increase in new lending activity in 2025 relative to 2024 re-
sulted in higher gross lending, which amounted to DKK 50 billion
in 2025 (2024: DKK 42 billion).
The proportion of gross lending with interest-only features rose
to 65% in 2025 (2024: 55%).
Other factors include prepayments of DKK 39 billion in 2025
(2024: DKK 29 billion).
Total remortgaging in the business market thus amounted to
DKK 14 billion in 2025 (2024: DKK 17 billion).
The overall share of mortgages with deferred amortisation was
at the same level as in 2024 and amounted to 49% at end-2025
(end-2024: 48%).
Interest in FlexLife® loans remained stable in 2025, and the total
portfolio represents approximately 22% of the overall loan port-
folio.
Throughout most of 2025, customers’ choice of loan type was
unchanged. Approximately one in three customers opted for a
fixed interest rate, while the remaining customers chose variable
interest rate loans. FlexKort® in particular has seen a resur-
gence.
The business market experienced weaker demand for fixed-rate
mortgages in 2025, and this type of mortgage accounted for
15% of new mortgages (2024: 22%). Unlike in the personal cus-
tomer segment, business customers continue to favour long-
term variable-rate mortgages, which accounted for 68% of the
loans disbursed in 2025 (2024: 55%).
12
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
The share of new interest-only mortgages issued with deferred
amortisation rose slightly to 63% in 2025 (2024: 57%). The
higher proportion of new interest-only mortgages in 2025 re-
mained stable and interest-only mortgages accounted for 42%
of total lending in 2025 (2024: 41%).
Bank’s business centres. Realkredit Business Direct provides
telephone and virtual advice and other services.
In 2025, ‘home’ strengthened its position as a modern and at-
tractive workplace by introducing the ‘home Barselsfonden’.
This initiative provides financial support of DKK 1,500 per week
for up to 24 weeks to employees on paid parental leave, regard-
less of whether they are mothers, fathers, co-mothers or co-fa-
thers. The fund reflects ‘home’s’ commitment to promoting
equality, family-friendly policies and employee well-being
across the organisation.
affordability and connects them to Danske Bank’s home pur-
chase calculator. Designed to simplify the home-buying process,
Klara frees up adviser resources for personalised guidance. The
assistant’s functionality will be expanded in 2026 to support
sellers, broader property searches and appointment bookings,
reinforcing ‘home’s' commitment to innovation under its strate-
gic plan, Forandring Sammen ’28.
Danske Bank’s agricultural centre provides personal service and
advice to all agricultural customers.
home
Distribution channels
‘home’, the real estate agency chain of the Group, is wholly
owned by Realkredit Danmark A/S. The core business of ‘home’
is the sale of owner-occupied dwellings, with mortgages distrib-
uted via ‘home’ primarily aimed at changes of ownership. In
2025, ‘home’ achieved a result of DKK 27 million, reflecting con-
tinued growth relative to previous years.
Realkredit Danmark consistently seeks to make it easier for its
customers to access and obtain an overview of information
about their mortgages.
Throughout 2025, ‘home’ also advanced its digital strategy with
the launch of Klara, an AI-powered assistant available 24/7 on
home.dk. Klara answers questions about properties, local areas
and documents such as energy ratings, helps buyers calculate
Realkredit Danmark is accessible when customers need it,
among other things by providing personal service and advice by
telephone and through virtual channels and face-to-face meet-
ings.
Activities and portfolio
Realkredit Danmark’s personal customers are served at Danske
Bank, primarily by home finance advisers. Customers who are
also Danske Bank customers are generally served by Danske
Bank advisory centres, while customers who are customers only
with Realkredit Danmark and customers who want to engage in
dialogue with mortgage specialists are served by Housing East
and West, which provide telephone advice and advice via virtual
consultancy during extended opening hours.
Gross lending
Net new lending
2025
Loan portfolio
(DKK millions)
2025
2024
2024
2025
%
2024
%
Personal market
Business market
Total (nominal value)
50,435
51,445
42,397
44,719
87,116
-10,897
18,091
7,194
-6,248
13,389
7,141
394,483
389,130
783,613
50
50
412,874
381,682
794,556
52
48
101,880
100
100
The largest property customers in Denmark, the largest adminis-
trators and all customers within Subsidised Housing are served
at Large Real Estate, which is a nation-wide double-branded
Realkredit Danmark unit. In addition, Large Real Estate is re-
sponsible for providing expert mortgage advice to large non-
property customers and to customers in Norway and Sweden
who have a mortgage loan with Realkredit Danmark.
Lending broken down by loan type
Share of gross lending
Share of loan portfolio
%
2025
16
7
2024
20
3
2025
12
4
2024
´12
4
Short-term variable rate (F1-F4)
FlexKort®
FlexLife ® variable rate
FlexLife ® fixed rate
Fixed-rate
9
7
9
9
Small and medium-sized business and property customers are
offered several service channels at Danske Bank. For organisa-
tional purposes, all property specialists are placed at Commer-
cial Real Estate Danmark, which consists of a number of local
entities and of Realkredit Danmark Business.
2
2
3
3
21
45
100
33
35
100
33
39
100
32
40
100
Long-term variable rate etc.
Total
The property specialists at the local entities provide personal
service and advice at the customers’ offices and at Danske
13
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
Funding
Bond issuance
In May 2025, Realkredit Danmark auctioned bonds worth
DKK 15 billion to refinance RD Cibor6® loans and DKK 1 billion to
refinance RD Cibor6® Green loans.
The effective overcollateralisation requirement from the agen-
cies decreased during 2025, from DKK 25.8 billion at end-2024
to DKK 16.1 billion at end-2025.
Realkredit Danmark operates under the specific balance princi-
ple and funds its lending by issuing mortgage-covered bonds
and mortgage bonds (to a very limited extent), all listed on
NASDAQ Copenhagen.
Lastly, in August 2025, SEK 2.8 billion was refinanced in RD
Stibor3® loans and NOK 2.2 billion in RD Nibor3® loans.
The overcollateralisation requirements for the capital centres
are covered by funds from Realkredit Danmark’s equity and the
loan raised with Danske Bank A/S.
Issued bonds are carried in the financial statements at their fair
value after deduction of own holdings. The following text and ta-
ble are based on nominal values before deduction of own hold-
ings, as these reflect the volume of bonds issued and listed on
NASDAQ Copenhagen.
At end-2025, Realkredit Danmark had issued mortgage bonds
for a total amount of DKK 820 billion, of which mortgage-cov-
ered bonds accounted for DKK 799 billion.
Realkredit Danmark expects consistently stable overcollaterali-
sation requirements from the rating agencies. If the require-
ments increase to a level at which own funds are insufficient to
comply with the requirements, Realkredit Danmark plans to
raise further bail-inable debt on market terms. This type of debt
is also eligible towards the debt buffer requirement.
Debt issuance
In December 2024, Realkredit Danmark refinanced a non-pre-
ferred senior loan with the parent company, Danske Bank A/S, in
the amount of DKK 3.5 billion to comply with the debt buffer re-
quirement. Realkredit Danmark has not issued any other non-
covered bond debt in 2025.
Bonds issued in 2025
Realkredit Danmark issued bonds worth DKK 102 billion exclu-
sive of bonds issued for refinancing auctions. This represents an
increase of 17% relative to 2024. The bond market was charac-
terised by stable interest rates.
Investor distribution
Refinancing in 2025
The investor distribution remained largely unchanged in 2025
relative to end-2024. As at the end of November, foreign inves-
tors held 23% of all mortgage bonds, against 21% at the end of
2024.
In 2025, Realkredit Danmark held auctions in connection with all
four ordinary payment dates. To diversify the risk attached to re-
financing, Realkredit Danmark has opted to refinance FlexLån®
loans at the 1 January and 1 April payment dates and floating-
rate bonds at the 1 July and 1 October payment dates.
Rating
Realkredit Danmark’s bonds are rated by SP Global and Scope
Ratings.
All four auctions were carried out without any difficulties. They
all attracted strong investor interest and resulted in competitive
prices.
Both rating agencies assign a rating of AAA to the bonds in both
capital centre S and T. The Other reserves series capital centre is
rated exclusively by SP Global, and these bonds also hold a rat-
ing of AAA.
The auctions for the refinancing of FlexLån® loans at 1 April
2025 were held in February 2025. Total issuance amounted to
DKK 31 billion (2024: DKK 45 billion). In November 2025, bonds
worth DKK 61 billion were issued in connection with the refi-
nancing of FlexLån® loans at 1 January 2026. Refinancing at 1
January 2025 amounted to DKK 51 billion.
14
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
Bonds issued at 31 December (nominal value)
Bond type
Mortgage covered bonds
Mortgage bonds
(DKK billions)
Fixed rate callable
Fixed rate bullet
Floating rate
Index-linked
2025
256
392
151
-
2024
274
388
141
-
2025
2024
1
-
1
-
6
7
14
15
Total DKK
799
803
21
23
In 2025, the calculation was adjusted to reflect double-funding of DKK 61 billion because of the refinancing of FlexLån® loans (2024: DKK 51 billion).
15
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
Business focus on sustainability
Realkredit Danmark is included in the Danske Bank Group’s Sus-
tainability Statement disclosed as part of the management re-
port of the Danske Bank Group’s Annual Report 2025. Conse-
quently, Realkredit Danmark does not report separately on cor-
porate responsibility. The Danske Bank Group’s Annual Report
2025 is available at danskebank.com/IR.
scaling of renewable energy production, the transportation of
electricity and heating as well as the integration of green energy
in households and businesses. Realkredit Danmark participates
in the utility sector’s work to remove obstacles to the provision
of efficient financing solutions for these important infrastructure
projects, which our sustainability targets also depend on.
Regulation from February 2025 that reduces mandatory report-
ing for many companies. However, we continue to engage with
our customers to understand and monitor their transition risk
and to discuss various options for financing their plans.
We have set specific targets for the reduction of financed emis-
sions from our Commercial Real Estate customers. Emission re-
ductions continue to follow a linear trajectory towards the 2030
target, aided by the decarbonisation of heating systems and up-
dated emission factors. Further, we saw an improvement in EPC
scores in our portfolio for both residential and non-residential
buildings.
Below are highlights from Realkredit Danmark’s sustainability-
related activities in 2025. Regarding sustainability-related risks,
reference is made to the Risk Management section of note 34. It
is important to note that the information provided below is not to
be considered, nor does it constitute, an account for corporate
responsibility or a separate sustainability statement. For all pur-
poses, reference is made to the Danske Bank Group’s Sustaina-
bility Statement.
In addition to the deployment and integration of renewable en-
ergy in the real estate sector, energy efficiency renovation of in-
dividual buildings is needed. We still see a potential for further
investments in this area by our customers and an increasing
awareness. However, the lack of financial benefit from making
such investments sometimes means that customers are reluc-
tant to carry out renovations.
To support our personal customers in reducing energy consump-
tion in their homes, thereby also reducing carbon emissions, we
offer mortgage financing for energy renovations on favourable
terms. Via our partnership with OBH Consulting Engineers, our
customers can receive an initial screening of energy optimisation
options for their property and assistance with making specific
renovations. Further, our customers can now see the energy per-
formance of their property in Danske Mobile Banking. However,
in our 2025 survey among homeowners carried out together
with YouGov, we saw continued low interest in energy renova-
tions as the financial benefits for homeowners were limited,
mainly due to the prices of oil - and gas-based heating. In rela-
tion to our ambition to reduce carbon emissions from our per-
sonal mortgages portfolio by 75% by 2030 (measured against a
2020 baseline), EPC scores have improved, but as emission fac-
tors are not available for 2024 and 2025, emission reductions
are slightly behind the trajectory.
Environmental initiatives
For both our customers and our business, the societal transfor-
mation required to address climate change presents not only
risks but also opportunities. Thus, we continued to develop our
initiatives in 2025 to cater for both perspectives. We aim to in-
spire and support our customers with focused advice and finan-
cial options, and to help business customers to understand and
monitor their transition risks. Together with Danske Bank, we
continue to widen the collaboration with our strong partners to
enhance valuable insights and develop specific action plans to-
gether with homeowners and business customers.
The pace of emission reduction is, however, highly dependent on
access to sustainable electricity and district heating. We
acknowledge that the path towards reaching our ambitions is not
linear, and we assess the decarbonisation of our portfolio to be
well underway.
For our business customers, we continued our engagement dis-
cussion on renovation and transformation of buildings. The dia-
logues are based on our value proposition launched in 2024 –
“The six-step plan” – that includes advisory services and financ-
ing as well as specific support from our strong partners, Co-
mundo and Sweco. Customer interest has centred on Comundo’s
energy consumption and carbon reporting, with a fair number of
agreements entered into across the Nordic countries, also indi-
cating where our customers are on their transition journey. But
even with strong customer interest in the offering from Sweco,
which provides tailored advice on energy improvements, fairly
few new projects have started – partly due to the EU Omnibus
Climate mitigation
Mitigating the climate impact that the real estate sector has, ac-
counting for some 40% of the total energy consumption in Den-
mark, requires two-fold action: First, we need to reduce energy
consumption by improving the energy efficiency of buildings.
Secondly, and most importantly, access to and integration of re-
newable energy must be improved. The development of energy
infrastructure is a major societal task that encompasses the
The carbon emission reduction in the agricultural sector is key to
ensuring a stable and sustainable agricultural production. Cus-
tomers operating in the agricultural sector face both physical
and transition risks due to climate change and shifts towards a
16
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
low-carbon economy, but these challenges also present oppor-
tunities for improved agricultural practices.
Climate adaption
Green bond funding
Realkredit Danmark, we take an active part in this, for example
through our mandatory and regular training for all managers and
employees, our focus on diversity and inclusion in succession
planning and our initiatives supporting ambitions to reduce gen-
der bias in recruitment processes.
The focus on the risk of flooding and increasing precipitation
continued throughout 2025. The potential range of damage was
quantified in an analysis from the Technical University of Den-
mark published towards the end of 2024 that estimated eco-
nomic losses of up to DKK 400 billion over the next century
Technical University of Denmark. Moreover, the report indicated
that for society in general, prevention was better than curing, es-
pecially in relation to building resilience against flooding. Fur-
ther, in the Danish National Risk Picture of 2025, climate change
was seen as a threat in its own right but also intertwined in other
risk areas Danish National Risk Picture of 2025.
Realkredit Danmark offers green bond mortgage financing to the
corporate segment. Our issuance of green loans is governed by
our Green Finance Framework, which complies with interna-
tional standards for defining green activities.
Realkredit Danmark has an important role to play in supporting
our agricultural customers by providing advisory services and
products aimed at helping these customers to navigate nature-
and climate-related impacts, risks and opportunities.
By the end of 2025, our total green loan portfolio had grown to
DKK 34.3 billion from DKK 29.0 billion at the end of 2024. New
green loans were primarily provided for green buildings located
in Denmark. In addition to loans for green buildings, we also of-
fer green loans for renewable energy production, such as solar,
wind and hydro energy production and bioenergy, and in 2025
we saw an increase in green lending to solar panel plants. In
Denmark, we offer green loans funded by the Cibor6® Green
bond, and since 2020, we have also offered green loans for
buildings in Sweden funded by the Stibor3® Green bond. In
2025, our portfolio of green loans for buildings in Sweden saw
an increase of 107%, resulting in a total loan volume of DKK 2.4
million at the end of the year.
Realkredit Danmark’s Board of Directors adopted the updated
Danske Bank Group’s Diversity, Equity and Inclusion Policy in
2025. This policy sets out the key principles for Realkredit Dan-
mark’s approach to diversity and inclusion, including commit-
ments to improve diversity across all characteristics, to ensure
that all employees are provided equal opportunities and terms
throughout the entire employee lifecycle, to practice an inclusive
culture and mindset, and non-acceptance of discrimination, har-
assment or offensive workplace behaviour.
Our 2030 ambition reflects the Danish national sector’s ambi-
tion as set out in the green tripartite agreement’s sector transi-
tion pathway, recalculated to a 2020 baseline us-
ing data from Denmark’s Climate Status and Outlook. We con-
tinue to conduct transition risk assessments by engaging with
the customers in our agricultural portfolio, also in relation to the
tripartite agreement, and this commitment will support us in
reaching our target.
We see the protection of real estate and infrastructure as a soci-
etal challenge that may appear much more present for home-
owners and businesses as the impact of intense rain and storms
already affects some areas of the country. Together with Danske
Bank, we have underpinned the need for planning and coordina-
tion of long-term nationwide initiatives by national and local gov-
ernments to adapt to the changing climate in addition to prop-
erty owners’ own initiatives to secure homes and businesses
against future flooding.
Diversity at management level
Target end
2025
2024
2028
Social initiatives
Our workforce
Share of
under-rep-
resented
gender
A skilled and qualified workforce is a key element for ensuring
that Realkredit Danmark can operate in a safe and efficient way
and support the Danske Bank Group in reaching its strategic ob-
jectives. We strive to attract highly skilled people and to develop
the potential of our employees to ensure that they can thrive in
an environment of inclusivity, collaboration, innovation and
adaptability. To foster a high level of engagement from our em-
ployees, we aim to ensure that Realkredit Denmark remains an
attractive workplace with strong leadership practices, a good
work-life balance and competitive renumeration.
To increase awareness, we participated in the Danish ‘Folke-
møde’ (democracy festival) on the island of Bornholm with this
specific topic, and we approached homeowners with the Danske
Bank marketing campaign ‘Water, water and water’ during the
spring followed by 1:1 customer communication to homeowners
assessed to be at risk. For our Commercial Real Estate custom-
ers, this topic was also discussed at several customer events.
Female
Male
80%
67%
Female
Male
80%
50%
Board of
Directors*
20%
33%
20%
50%
40%
40%
Executive
management
Other
Management **
40%
41%
60%
59%
54%
44%
46%
66%
40%
45%
All leaders**
Employee engagement
*Employees representatives are not included
**Only employees from Realkredit Danmark A/S are included
To support the focus of initiatives to build employee engage-
ment, we conduct engagement surveys twice a year and trans-
form the insights to actions to further support our employees’
motivation and loyalty towards their work in Danske Bank Group.
In 2025, employee engagement remained at a satisfactory level,
but it remains a focus area for the leadership team.
2025
82
2024
82
2023
82
Engagement score*
In our preparations for implementation of the Pay Transparency
Act in 2026, Danske Bank Group have redesigned the job archi-
tecture including definitions for the different management lev-
els.
For further details on the carbon emissions we have financed,
we refer to our Climate Report 2025 at rd.dk/investor/fund-
ing/green-bonds.
*Score covers only employees from Realkredit Danmark A/S
In 2025, the Danske Bank Group continued its efforts to grow a
diverse and inclusive culture to mirror the societies it is part of
and to create equal opportunities for its employees. At
17
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
Customers and society
Realkredit Danmark actively supports social housing and in 2025
provided long-term mortgage financing totalling DKK 93.8 billion
on favourable terms agreed upon with the Danish Ministry of Fi-
nance as well as market-based terms. Together with Danske
Bank, Realkredit Danmark also provides construction loans to fa-
cilitate the building and renovation of social housing, ensuring
continued improvement of the housing infrastructure and oppor-
tunities for communities in need.
For homeowners nearing retirement or already retired,
Realkredit Danmark has enhanced its offerings and advisory ser-
vices to help customers release home equity and optimise finan-
cial planning for their retirement years. Terms for mortgage
loans with low monthly payments (interest-only) have been
made more transparent, and advisory services have been
strengthened to ensure customers can make effective use of
their savings and assets. In 2025, we reduced fees for senior
homeowners with a low loan-to-value ratio.
Our senior management sets up policies and instructions that
guide the operation of the business and management of associ-
ated risks.
Access to financial services and products is essential for foster-
ing social inclusion and improving the lives of individuals and
communities. Financial institutions play a vital role in ensuring
that home finance is accessible to as many eligible customers as
possible, helping people purchase homes and supporting the
property market. Customers can choose from a variety of mort-
gage loan options tailored to their needs, such as fixed-rate
loans, variable-rate loans or interest-only loans with flexible
terms to maturity.
Fighting financial crime activities
The financial industry is highly exposed to financial crime risk,
and the industry therefore has a key role to play in combating fi-
nancial crime. Together with Danske Bank, Realkredit Danmark
has invested massively in the financial crime risk management
area and today has a solid framework and tailored processes
and controls in place to respond to transactions related to finan-
cial crime and reporting such transactions to the National Spe-
cial Crime Unit (NSK).
Realkredit Danmark aims to consolidate its market position
while improving the customer experience, particularly for young
and elderly customers. Although no specific targets have been
set for social inclusion, initiatives have been implemented to fur-
ther support key customer segments. An analysis of Realkredit
Danmark’s mortgage lending portfolio in Denmark highlights that
customers aged 30 or younger account for 2.6% of the total
mortgage portfolio, while customers aged 65 or older represent
30.2%. This reflects the importance of providing tailored solu-
tions to these demographic groups.
The Danske Bank Group has implemented procedures and pro-
cesses to support customers who face financial difficulties at an
early stage. These processes involve ongoing credit assess-
ments, monitoring for early warning signs and addressing any
significant deterioration in customers’ financial situation. Dedi-
cated teams specialised in identifying and mitigating repayment
difficulties provide proactive assistance to personal customers
to ensure the best possible outcomes for both the customers
and the Group, including Realkredit Danmark.
In Denmark, the unique mortgage model stands out for its trans-
parency, fairness, scalability and stability. Mortgage interest
rates are determined on the basis of market conditions, ensuring
equal terms for all customers. Administration margins charged
by Realkredit Danmark for personal customers are calculated on
the basis of product-specific risk factors and applied equally
across all regions of Denmark to ensure fairness.
Treating customers fairly
Treating customers fairly remains a key focus area at Realkredit
Danmark.
Our outsourcing arrangements with Danske Bank entail that
Danske Bank processes personal data on behalf of Realkredit
Danmark. A data processing agreement is in place that supports
Realkredit Danmark in delivering on its responsibilities as data
controller.
The Danish Mortgage-Credit Loans and Mortgage-Credit Bonds
Act, along with executive orders governing mortgage lending in
Denmark, sets limitations on mortgage loans issued by mortgage
credit institutions. This framework ensures financing is accessi-
ble to a broad spectrum of potential customers while reducing
the risk of individuals taking on excessive debt. It also estab-
lishes a prudent and market-based way of assessing the value of
collateral, further supporting financial stability and fair access to
housing.
Most of Realkredit Danmark’s lending is facilitated through
Danske Bank’s physical and digital distribution network. This
structure allows homeowners across Denmark to access advice
and secure mortgage loans regardless of their geographical loca-
tion. Realkredit Danmark provides financing for personally
owned properties in all municipalities in Denmark.
Data ethics
Data Ethics is implemented in Danske Bank into existing Group-
wide policies, to ensure that the groups four data ethical princi-
ples are integrated as close to relevant processes and proce-
dures as possible. This approach strengthens consistency with
our overall risk, compliance and sustainability frameworks.
Governance
At Realkredit Danmark, we focus on ensuring a robust govern-
ance model. This includes having clear roles and responsibilities
across the various functions in Realkredit Danmark, across the
three lines of defence and in relation to the Danske Bank
Group’s responsibility for delivering the day-to-day operation of
large parts of Realkredit Danmark’s business activities in accord-
ance with agreed outsourcing arrangements. All committees and
sub-committees set up by the Executive Management have clear
mandates and solid frameworks for delivering on their desig-
nated mandates.
In addition to owner-occupied housing, Denmark’s social hous-
ing sector plays a key role in providing affordable rental homes
to more than 560,000 households, accounting for 20% of the
residential property market, as reported by Danmarks Almene
Boliger (BL). Social housing is designed to create inclusive com-
munities and offer secure, non-profit housing solutions for indi-
viduals facing financial challenges or living under difficult cir-
cumstances. Supported by public subsidies and guarantees, this
sector contributes to the well-being of thousands, ensuring sus-
tainable living conditions.
Danske Bank continues to work actively with the principles by
guiding policy owners and ensuring that relevant areas integrate
data ethics considerations and the relevant data ethical princi-
ples into their own frameworks.
For young customers we have reduced our fees for new interest-
only loans to make it more affordable to enter the housing mar-
ket for first-time buyers. Together with Danske Bank, we have
launched DanskeBoligStartTM that provides benefits and security
for home buyers aged 18-38. Additionally, we seek to make the
entry into the housing market less challenging through explana-
tory videos on social media about buying a home.
In 2025, Danske Bank continued embedding the data ethics
principles into existing Group-wide policies and instructions.
Follow-up activities were carried out on initiatives described in
the 2024 annual report, including strengthening awareness and
increasing communication about data ethics across the Group.
While the EU AI Act is not part of the data ethics framework,
In doing so, we have a high level of focus on ensuring a solid risk
and compliance culture across Realkredit Danmark, thereby en-
suring that our core value of integrity is applied in all interactions
with our customers and stakeholders.
18
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
implementation efforts led by the Bank’s GenAI team remain
aligned with the data ethical principles.
In 2026, Danske Bank will continue strengthening its data ethi-
cal approach to data and AI. This includes rolling more policies
to the site, maintaining alignment with regulatory requirements
and deepening integration with the Group’s Responsible AI initi-
atives. The central data ethics site will introduce new training
videos and awareness campaigns. The Bank will also evaluate
whether updates to the data ethics principles or existing policies
are needed to reflect ongoing developments in responsible data
and AI practices, as well as regulatory demands within data eth-
ics.The principles are available at danskebank.com/cg.
Compliance with our data ethics principles is audited through
existing policies.
The implementation of the Personal Data Protection Policy and
the Data Risk Management Policy, which also include Data Eth-
ics, are subject to audit by Group Internal Audit at least once
every three years.
To support a solid risk and compliance culture, our employees
undergo annual mandatory training that provides directional and
practical insights into the risk and compliance area. In 2025,
98.5% of our employees completed their risk and compliance
training on time.
Whistleblowing scheme
All employees are encouraged to raise any concerns they have to
their immediate manager, and they also have access to doing so
by using Realkredit Danmark’s whistleblowing scheme. The
whistleblowing scheme is also accessible for customers.
19
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
Capital and risk management
Capital management
Internal Capital Adequacy Assessment Process (ICAAP)
As part of the ICAAP, Realkredit Danmark assesses its solvency
Supplementary collateral
Realkredit Danmark’s capital management policies and practices
support the business strategy and ensure that Realkredit
Danmark remains sufficiently capitalised to withstand severe
macroeconomic downturns. Moreover, Realkredit Danmark aims
to retain the current AAA ratings from S&P Global and Scope
Ratings, which are in line with those assigned to comparable
issuers.
As an institution issuing mortgage bonds, Realkredit Danmark
must provide supplementary collateral if the value of the proper-
ties on which the loans are secured is such that the LTV ratio
rises above 80% for residential property and 60% for commer-
cial property. At the end of 2025, the need for supplementary
collateral was DKK 4.6 billion (end-2024: DKK 5.4 billion). Of the
DKK 4.6 billion, DKK 0.3 billion was provided in the form of loan
loss guarantees. The remaining DKK 4.3 billion was provided in
the form of unencumbered liquid assets.
need on the basis of internal models and ensures that it uses
proper risk management systems. The ICAAP also includes capi-
tal planning to ensure that Realkredit Danmark always has suffi-
cient capital to support its chosen business strategy. Stress test-
ing is an important tool used for capital planning purposes in or-
der to ensure that Realkredit Danmark, also going forward, is
sufficiently capitalised to withstand severe macroeconomic
downturns. For additional information about the ICAAP, refer-
ence is made to the ICAAP report available at
The regulatory framework for Realkredit Danmark’s capital man-
agement practices is rooted in the Capital Requirements Regula-
tion (CRR) and the Capital Requirements Directive (CRD), which
can be divided into three pillars:
A large proportion of Realkredit Danmark’s mortgages are cov-
ered by loan loss guarantees provided by Danske Bank. The loan
loss guarantee covers the top 20 percentage points of the statu-
tory loan limit at the time when the mortgage originates.
danskebank.com/IR.
Capital
• Pillar I contains a set of mathematical formulas for the calcula-
tion of risk exposure amounts for credit risk, market risk and op-
erational risk. The minimum capital requirement is 8% of the to-
tal REA. In parallel, a minimum leverage ratio of 3% must be met
at all times.
Realkredit Danmark’s total capital consists primarily of conven-
tional equity after statutory deductions.
The loan loss guarantees amounted to DKK 25 billion of the loan
portfolio at 31 December 2025.
At the end of 2025, the total REA amounted to DKK 167.7 billion,
an increase of DKK 11.4 billion from the level at the end of 2024
that was due primarily to an increase in credit risk. With total
capital of DKK 49.8 billion, the total capital ratio was 29.7%.
At the end of 2025, Realkredit Danmark’s solvency need, includ-
ing the combined buffer requirement, was calculated at
DKK 34.6 billion, corresponding to a solvency need ratio includ-
ing buffers of 20.6% of the total REA. With total capital of
DKK 49.8 billion, Realkredit Danmark had DKK 15.2 billion in ex-
cess of the total capital requirement.
Risk management
The Realkredit Danmark Group’s principal risks are credit risk
from mortgage loans and liquidity risk related primarily to refi-
nancing auctions.
• Pillar II contains the framework for the contents of the ICAAP,
including the identification of a credit institution’s risks, the cal-
culation of the solvency need and stress testing.
Capital requirements
As stipulated in Danish legislation, a credit institution must dis-
close its solvency need and solvency need ratio. The solvency
need is the total capital of the size, type and composition
needed to cover the risks to which an institution is exposed.
The credit risk on mortgages comprises the risk that the bor-
rower is unable to repay the loan and the expected loss if the
borrower does not repay the loan. Liquidity risk is the risk that
payments to the bondholder fall due before Realkredit Danmark
has secured the necessary liquidity. This is mitigated by early
payments received from Realkredit Danmark’s borrowers and
the sale of new bonds at refinancing auctions.
• Pillar III deals with market discipline and sets forth disclosure
requirements for risk and capital management.
Leverage ratio
At the end of 2025, Realkredit Danmark had DKK 24.6 billion in
excess of the minimum requirement of 3% with a leverage ratio
of 5.9%.
While Pillar I entails the calculation of risks and the capital re-
quirement on the basis of uniform rules for all credit institutions,
the ICAAP under Pillar II takes into account the individual char-
acteristics of a given institution and covers all relevant risk
types, including risks not addressed under Pillar I. The combined
capital requirements under Pillar I and Pillar II represent the
credit institution’s solvency need and solvency need ratio.
In addition to the solvency need ratio, the institution must have
capital to comply with the combined capital buffer requirement.
The combined buffer requirement consists of a SIFI buffer of
3%, a capital conservation buffer of 2.5%, a systemic risk buffer
of 1.4% and a countercyclical buffer of 2.5%.
Large exposures
Large exposures are defined as exposures amounting to at least
10% of the tier 1 capital after deduction of particularly secure
claims. At the end of 2025, Realkredit Danmark had 1 exposure
that exceeded 10% of its capital base.
Realkredit Danmark is also exposed to market risks, which com-
prise interest rate, equity and exchange rate risks. However, the
statutory principle of balance eliminates most of the interest
rate and exchange rate risks on the Group’s assets and liabili-
ties.
Risk management is described in the note on risk management.
20
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
Liquidity Coverage Ratio
As part of the EU Banking Package 2021 and in order to imple-
ment Basel IV, the European Commission adopted proposals in
October 2021. On 27 June 2023, the EU co-legislators reached a
provisional political agreement on the proposals for implement-
ing Basel IV. The new rules were adopted by the EU in June
2024 and published in the EU Official Journal. The CRR3 that im-
plements the Basel IV standard in the EU took effect on 1 Janu-
ary 2025. The date on which the FRTB rules take effect has,
however, been postponed and is now 1 January 2027.
In the second quarter of 2025, Danish legislators adopted legis-
lation to the effect that the CRR3 output floor will not apply to
Danish subsidiaries of Danish groups, meaning that Realkredit
Danmark will not be subject to the floor at the solo level. Further,
Danish legislators have implemented the transitional arrange-
ment for exposures secured on residential property with regard
to the output floor, which the Group thus expects to apply. The
new rules took effect on 1 July 2025.
exempted from the scope of the Danish SyRB. The government
decision on the new recommendation is pending.
As a credit institution, Realkredit Danmark is subject to the Li-
quidity Coverage Ratio. The implementation of the covered bond
directive in 2022 introduced additional Pillar II liquidity require-
ments that address refinancing and remortgaging risks. The
combined Pillar I+II requirement defines the binding liquidity re-
quirement for Realkredit Danmark. At the end of 2025, the com-
bined requirement corresponded to approximately DKK 8.5 bil-
lion.
Supervisory diamond for mortgage credit institutions
Realkredit Danmark continues to comply with all threshold val-
ues by a satisfactory margin.
For all the threshold values, Realkredit Danmark has defined in-
ternal limits to ensure that action is taken in due time before a
threshold value would potentially be exceeded.
On 7 October 2025, it was announced that the Danish Systemic
Risk Council had recommended maintaining the 7% Systemic
Risk Buffer (SyRB) on exposures to Commercial Real Estate in
Denmark, while also recommending widening the LTV band
Realkredit Danmark’s holding of unencumbered high-quality liq-
uid assets after caps and haircuts was DKK 20.3 billion at end-
2025.
The fully phased-in rules are subject to a lengthy transition pe-
riod and transitional arrangements.
Regulatory
Full year
2025
Full year
2024
Future rules
Treshold value (%)
limit
Growth in lending1
Owner-occupied dwellings and holiday homes
Residential rental property
Agriculture
15.0
15.0
15.0
15.0
-4.0
2.0
-3.2
0.4
-0.7
4.2
-0.7
0.3
Other
Borrower interest rate risk2
Properties for residential purposes
Interest-only option3
25.0
10.0
6.6
4.8
5.8
5.2
Owner-occupied dwellings and holiday homes
Loans with short-term funding4
Refinancing, annually
25.0
12.5
14.2
7.8
17.5
0.5
Refinancing, quarterly
Large exposures5
Sum ofthe 20 largest exposures to CET1
100
67
75
1 Annual growth must be lower than 15% unless the size of the segment is smaller than the institution’s total capital.
2 The proportion of loans for which the loan-to-value ratio is at least 75% of the statutory maximum loan limit and for which the interest rate has been locked for up to two years must not represent more than 25% of the total loan
portfolio.
3 The proportion of interest-only loans for which the loan-to-value ratio is more than 75% of the statutory maximum loan limit must represent less than 10% of the total loan portfolio.
4 The proportion of lending to be refinanced must be less than 12.5% per quarter and less than 25% of the total loan portfolio.
5 The sum of the 20 largest exposures must be less than core equity tier 1 capital.
21
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
Management
Management
and in the CFO area over the past 17 years. He has played a key
role in risk management, capital management and regulatory af-
fairs. Robert Wagner has been Chief Risk Officer of Realkredit
Danmark A/S since August 2023 and continues to hold this role
after joining the Executive Management.
Compliance and risk management
The independent Compliance function is responsible for moni-
toring and assessing Realkredit Danmark’s compliance with ap-
plicable laws and regulation and the internal framework set by
the Board of Directors. In practice, some of the tasks of the
Compliance function are outsourced to Danske Bank, but the
overall accountability for the second line Compliance function
lies with the Head of Compliance at Realkredit Danmark, who re-
ports to the Chief Executive Officer (CEO) and has a direct re-
porting and escalation line to the Board of Directors. In addition,
the head of Compliance has a dotted line to Group Compliance
to ensure that material risks are reported and escalated for
Group oversight as well as to ensure that Realkredit Danmark’s
compliance risk management is aligned with Group standards.
Realkredit Danmark A/S is a wholly owned subsidiary of Danske
Bank A/S. The Board of Directors of Realkredit Danmark consists
of eight directors, of whom five are elected by the shareholder
and three are elected by the employees of Realkredit Danmark
A/S.
Realkredit Danmark continues to focus on ensuring a robust risk
and compliance culture across its organisation, thereby ensuring
that we live our core value of integrity in all interactions with our
customers and stakeholders and manage the financial and non-
financial risks associated with the business activities of
Realkredit Danmark within the framework and guidelines set by
the Board of Directors and in accordance with the laws and regu-
lations applicable to mortgage credit institutions. Realkredit
Danmark applies the “Three Lines of Defence” model for risk
ownership, oversight and assurance. All employees are respon-
sible for contributing to effective management of risks according
to their role. The below figure presents the division of duties
across the three lines of defence, which supports a culture of fi-
nancial and non-financial risk management being an integral
part of the day-to-day operation of the business activities at all
levels at Realkredit Danmark.
Effective 1 January 2026, Thais Lærkholm Jensen joined the Ex-
ecutive Management of Realkredit Danmark. In his daily role,
Thais Lærkholm Jensen is Head of Products at Realkredit Dan-
mark and will continue to hold this role with key responsibilities
within strategy and business development.
At the annual general meeting on 10 March 2025, the members
of the Board of Directors elected by the shareholder were re-
elected. Throughout 2025, the members of the Board of Direc-
tors were thus the same, although the number of board mem-
bers was increased when Claus Schrøder Jensen was elected
member of the Board of Directors on 4 June 2025. Claus
Schrøder Jensen is Head of Wholesale Credit and LC&I Risk
Management in Danske Bank A/S and has worked in the Danske
Bank Group for the past 29 years.
With Thais Lærkholm Jensen joining the Executive Management,
this governing body will have four members with diverse exper-
tise and experience, thereby strengthening the day-to-day man-
agement of Realkredit Danmark and contributing to a broader
succession plan.
The independent Risk function is responsible for (i) promoting a
sound risk culture, (ii) setting standards for effective manage-
ment of the risks to which Realkredit Danmark is exposed (iii)
ensuring that material risks are identified, measured, managed
and reported correctly, (iv) keeping oversight of risk exposures
and monitor that they remain within the tolerance and limits set
by the Board of Directors, and (v) reporting risk exposure and
risk-related concerns independently to the Executive Manage-
ment and the Board of Directors.
In early 2025, an election of employee representatives to the
Board of Directors took place. Christian Hilligsøe Heinig and Maj-
ken Hammer Sløk were re-elected. Furthermore, Gøsta Harboe
Rasmussen was elected among and by the employees.
The Board of Directors defines the business model and strategy
for Realkredit Danmark and the overall principles for managing
the risks associated with the business. The Executive Manage-
ment is responsible for the day-to-day management and opera-
tion of Realkredit Danmark’s business activities and must com-
ply with the guidelines and directions given by the Board of Di-
rectors. The rules of procedure lay down the precise division of
responsibilities between the Board of Directors and the Execu-
tive Management.
The Board of Directors thus has the following members: Chris-
tian Bornfeld (Chairman), Jakob Bøss (Vice chairman), Jesper
Koefoed, Linda Fagerlund, Claus Schrøder Jensen, Majken Ham-
mer Sløk, Christian Hilligsøe Heinig and Gøsta Harboe Rasmus-
sen.
The independent Risk function at Realkredit Danmark is headed
by the Chief Risk Officer (CRO), who reports to the Chief Execu-
tive Officer (CEO) and has a direct reporting and escalation line
to the Board of Directors. Besides, the CRO has a dotted line to
Group Risk Management to ensure that material risks are re-
ported and escalated to Danske Bank for Group risk oversight
purposes. In addition, the dotted reporting line to Group Risk
Management ensures that Realkredit Danmark has an approach
to risk management that is aligned with Danske Bank Group
standards.
Robert Wagner joined the Executive Management of Realkredit
Danmark A/S with effect from 1 June 2025. Since then, the
members of the Executive Management have been Kamilla Ham-
merich Skytte (Chief Executive Officer), Bjarne Aage Jørgensen
and Robert Wagner.
Members of the board elected by the shareholder are elected for
a term of one year and are eligible for re-election. Employee rep-
resentatives are elected for a term of four years (most recently in
2025) and are eligible for re-election as long as they are em-
ployed by Realkredit Danmark.
Robert Wagner has been part of the Danske Bank Group since
2008 and has held leading positions at Group Risk Management
Please refer to pages 70-73 for the required information about
directorships held by members of the Board of Directors and
members of the Executive Management.
The ownership of risks at Realkredit Danmark lies with the first
line functions, which include business units and support func-
tions. In the day-to-day risk management work, the first line
The Second Line of Defence functions are the independent Com-
pliance function and the independent Risk function.
22
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
functions are supported and advised by the first line risk func-
tion, Business Risk & Governance.
reporting rules and regulations. Controls have been established
for the purpose of preventing, detecting and correcting errors or
irregularities in financial reporting.
The Head of Business Risk & Governance reports directly to the
Executive Management and participates in Realkredit Danmark’s
risk committee and product committee meetings. Further, the
designated anti-money laundering officer and the designated
outsourcing officer for Realkredit Danmark form part of the Busi-
ness Risk & Governance function.
As previously mentioned, Realkredit Danmark continuously out-
sources a large part of the day-to-day operation of its business
activities to Danske Bank to achieve technical and operational
benefits. Realkredit Danmark has established a governance
structure to monitor the outsourced activities and to ensure a
procedure involving ongoing reporting for the individual organi-
sational levels within Realkredit Danmark. Internal management
reporting is based on the same principles as external reporting.
Realkredit Danmark continuously outsources a large part of the
day-to-day operation of its business activities to Danske Bank to
achieve technical and operational benefits. On the risk manage-
ment side, this involves specific outsourcing of risk management
responsibilities imposed on assigned owners within Realkredit
Danmark’s own organisation to the specific outsourcing ar-
rangements with Danske Bank according to an outsourcing
framework and governance model adopted by the senior man-
agement of Realkredit Danmark.
Internal Audit performs auditing of operational processes at
Realkredit Danmark to assess the effectiveness of the com-
pany’s risk management, controls and governance. The planning
and performance of the work of Internal Audit is subject to the
provisions of the Danish Executive Order on Auditing, the Inter-
national Standards on Auditing (ISAs) as well as the Interna-
tional Standards for the Professional Practice of Internal Audit-
ing (IPPF).
Internal control and risk management systems used in the fi-
nancial reporting process and Internal Audit
As laid down in the Danish Financial Business Act, the Board of
Directors is responsible for ensuring that the Executive Manage-
ment maintains effective procedures to identify, monitor and re-
port on risks, adequate internal control procedures as well as
satisfactory IT controls and security measures.
The Executive Management regularly reports to the Board of Di-
rectors on compliance with the risk and investment framework
set out and the statutory investment rules. The Board of Direc-
tors also receives accounting information on an ongoing basis.
Compliance reports to the Board of Directors in respect of com-
pliance and any non-compliance with internal business proce-
dures and policies.
Good accounting practices are based on authorities, segregation
of duties, regular reporting requirements and significant trans-
parency in respect of the Group’s business.
Audit Committee
The Board of Directors has set up an audit committee to prepare
the work of the Board of Directors on financial reporting and au-
dit matters, including related risk matters, which the Board of Di-
rectors, the committee itself, the external auditors or the Head
of Group Internal Audit intend to review further. The committee
works on the basis of clearly defined terms of reference. The
committee has no independent decision-making powers but re-
ports to the Board of Directors as a whole. In 2025, the Audit
Committee held four meetings.
Realkredit Danmark regularly assesses risks in relation to finan-
cial reporting, with particular focus on items where estimates
and assessments could significantly affect the value of assets or
liabilities. These critical financial statement items are listed un-
der Significant accounting estimates and assessments.
Realkredit Danmark has implemented controls to counter identi-
fied financial reporting risks and regularly monitors changes in
and compliance with relevant legislation and other financial
23
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Supplementary information
Statement by the management
24
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
Financial statement
13. Bonds at fair value
44
44
45
45
46
46
47
49
49
50
50
50
51
51
51
52
52
53
53
54
54
55
63
64
14. Bonds at amortised cost
Statements
Income statement
15. Total Lending
26
26
27
28
30
16. Mortgage loans at fair value
17. Loans and other amounts due at amortised cost
18. Arrears and outlays
Statement of comprehensive income
Balance sheet
Statement of capital
Cash flow statement
19. Loans etc.
20. Deferred tax assets and liabilities
21. Assets temporarily taken over
22. Other assets
23. Due to credit institutions and central banks
24. Issued mortgage bonds at fair value
25. Other liabilities
Notes
1. Material accounting policies and estimates
2. Profit broken down by activity
3. Fee and commission income and other operating income
4. Interest income
31
38
38
39
39
39
40
41
43
43
43
44
26. Reserves in early series subject to a reimbursement obligation
27. Risk exposure amount (REA)
28. Assets deposited as collateral
29. Contingent liabilities
5. Interest expense
6. Value adjustments
30. Related party transactions
31. Loan etc. to management
32. Financial instruments at fair value
33. Group holdings and undertakings
34. Risk Management
7. Staff costs and administrative expenses
8. Share-based payments
9. Audit fees
10. Loan impairment charges
11. Tax
35. Highlights and ratios
12. Due from credit institutions and central banks
36. Series accounts
25
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
Income statement
Statement of Comprehensive income
Realkredit Danmark Group
Realkredit Danmark A/S
Realkredit Danmark Group
Realkredit Danmark A/S
Note
(DKK millions)
2025
2024
2025
2024
Note
(DKK millions)
2025
2024
2025
2024
4
Interest income
20,881
14,168
6,713
947
22,754
16,297
6,457
931
20,880
14,168
6,712
947
22,752
16,297
6,455
931
Net profit for the year
4,848
4,424
4,848
4,424
5
Interest expense
Net interest income
Other comprehensive income
Items that will not be reclassified to profit or loss
Actuarial gains/losses on defined benefit plans
Tax
3
Fee and commission income
Fee and commission expense
Net interest, fee and commission income
Value adjustments
8
2
-6
-1
8
2
-6
-1
956
910
956
910
2
6,704
373
6,478
727
6,703
373
6,476
728
Total other comprehensive income
Total comprehensive income for the year
6
-5
6
-5
2, 6
3
4,854
4,419
4,854
4,419
Other operating income
108
95
-
2
7-9
Staff costs and administrative expenses
895
1,008
2
822
948
Impairment, depreciation and amortisation charges
Loan impairment charges
3
2
1
10
33
-258
-
333
-258
27
332
Income from associated and group undertakings
Profit before tax
-
24
6,545
1,697
4,848
5,957
1,533
4,424
6,537
1,689
4,848
5,949
1,525
4,424
11
Tax
Net profit for the year
Proposal for allocation of profits
Net profit for the year
Transferred from other reserves
Total for allocation
4,848
3,826
8,674
4,424
3,451
7,875
Portion attributable to
Reserves in series
3,826
-
3,475
-
Other reserves
Proposed dividends
4,848
8,674
4,400
7,875
Total allocation
26
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
Balance sheet
Realkredit Danmark Group
Realkredit Danmark A/S
Realkredit Danmark Group
Realkredit Danmark A/S
Note
(DKK millions)
Assets
2025
2024
2025
2024
Note
(DKK millions)
2025
2024
2025
2024
Liabilities and equity
Cash in hand and demand deposits with central banks
Due from credit institutions and central banks
Bonds at fair value
22,053
925
10,802
6,826
22,053
848
10,802
6,751
Amounts Due
12
13
14
23
24
Due to credit institutions and central banks
Issued mortgage bonds at fair value
Current tax liabilities
3,500
751,752
-
3,500
762,125
-
3,500
751,752
-
3,500
762,125
-
21,055
30,124
24,367
27,922
21,055
30,124
24,367
27,922
Bonds at amortised cost
15-16,
19
20
Deferred tax liabilities
60
49
-
-
Mortgage loans at fair value
740,491
755,539
740,491
755,539
25, 26 Other liabilities
Total amounts due
Provisions
6,156
761,468
6,707
772,381
6,097
761,349
6,622
772,247
15, 17-
19
Loans and other amounts due at amortised cost
Shares
350
207
335
191
2
2
-
-
20
26
Deferred tax
-
-
-
-
-
-
66
2
54
2
33
Holdings in group undertakings
Other tangible assets
-
-
131
128
Reserves in early series subject to a reimbursement obligation
7
2
-
2
Total provisions
Equity
68
56
Current tax assets
274
166
272
166
20
21
Deferred tax assets
-
7
-
13
-
7
-
13
Share capital
630
49,427
191
630
48,660
952
630
49,427
191
630
48,660
952
Assets temporarily taken over
Reserves in series
Other reserves
Proposed dividends
Total equity
19, 22 Other assets
Prepayments
1,274
2
1,175
2
1,196
1
1,063
1
4,848
4,400
4,848
4,400
Total assets
816,564
827,023
816,513
826,945
55,096
816,564
54,642
827,023
55,096
816,513
54,642
826,945
Total liabilities and equity
27
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
Statement of capital – Realkredit Danmark Group
Statement of capital – Realkredit Danmark A/S
Changes in equity
Share
Capital
630
Reserves
Other
reserves
952
Proposed
dividends
4,400
-
Changes in equity
Share
Capital
630
Reserves
in series
48,660
3,826
Other
reserves
952
Proposed
dividends
4,400
-
(DKK millions)
in series
48,660
3,826
Total
54,642
4,848
(DKK millions)
Total
54,642
4,848
Total equity at 1 January 2025
Net profit for the year
Total equity at 1 January 2025
Net profit for the year
-
1,022
-
1,022
Other comprehensive income
Actuarial gains/losses on defined benefit plans
Tax
Other comprehensive income
Actuarial gains/losses on defined benefit plans
Tax
-
-
8
-2
-
8
-
-
8
-2
-
8
-
-
-
-2
-
-
-
-2
Total other comprehensive income
Total comprehensive income for the year
Transferred from/to Other reserves
Dividend paid
-
-
3,826
-3,059
-
6
-
-
6
4,854
-
Total other comprehensive income
Total comprehensive income for the year
Transferred from/to Other reserves
Dividend paid
-
-
3,826
-3,059
-
6
-
-
6
4,854
-
-
1,028
3,059
-
-
1,028
3,059
-
-
-
-
-
-
-
-4,400
4,848
4,848
-4,400
-
-4,400
4,848
4,848
-4,400
-
Proposed dividends
-
-
-4,848
191
Proposed dividends
-
-
-4,848
191
Total equity at 31 December 2025
630
49,427
55,096
Total equity at 31 December 2025
630
49,427
55,096
Total equity at 1 January 2024
Net profit for the year
630
-
47,276
3,475
2,317
949
-
-
50,223
4,424
Total equity at 1 January 2024
Net profit for the year
630
-
47,276
3,475
2,317
949
-
-
50,223
4,424
Other comprehensive income
Actuarial gains/losses on defined benefit plans
Tax
Other comprehensive income
Actuarial gains/losses on defined benefit plans
Tax
-
-
-6
1
-
-6
-
-
-6
1
-
-6
-
-
-
1
-
-
-
1
Total other comprehensive income
Total comprehensive income for the year
Transferred from/to Other reserves
Dividend paid
-
-
3,475
-2,091
-
-5
-
-5
Total other comprehensive income
Total comprehensive income for the year
Transferred from/to Other reserves
Dividend paid
-
-
3,475
-2,091
-
-5
-
-5
-
944
2,091
-
-
-
4,419
-
944
2,091
-
-
-
4,419
-
-
-
-
-
-
-
-
-
-
-
-
Proposed dividends
-
-
-4,400
952
4,400
4,400
Proposed dividends
-
-
-4,400
952
4,400
4,400
Total equity at 31 December 2024
630
48,660
54,642
Total equity at 31 December 2024
630
48,660
54,642
At the end of 2025, the share capital was made up of 6,300,000 shares of DKK 100 each. All shares carry the same rights; there is
thus only one class of shares. The company is wholly owned by Danske Bank A/S, Copenhagen. Realkredit Danmark A/S and group
undertakings are included in the consolidated financial statements of Danske Bank A/S, Copenhagen
28
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
Statement of capital – Realkredit Danmark Group
Total capital and Total capital ratio
31 December
31 December
(DKK millions)
2025
2024
Total equity
55,096
54,642
Proposed dividends
-4,848
-4,400
Deferred tax assets
-
-
Prudent valuation
-12
-7
Minimum Loss Coverage for Non-Performing Exposures
-379
-374
Defined benefit pension fund assets
-85
-81
Common equity tier 1 capital
49,772
49,780
Difference between expected losses and impairment charges
-
-
Tier 1 capital
49,772
49,780
Reserves in series subject to a reimbursement obligation
-
-
Difference between expected losses and impairment charges
-
-
Total capital
49,772
49,780
Risk exposure amount
167,710
156,269
Common equity tier 1 capital ratio (%)
29.7
31.9
Tier 1 capital ratio (%)
29.7
31.9
Total capital ratio (%)
29.7
31.9
At end-2025, total capital and the total risk exposure amount are calculated in accordance with the Capital Requirements Regulation
(CRR/CRD). The solvency need calculation is described in more detail on rd.dk.
Statement of capital – Realkredit Danmark A/S
Total capital and Total capital ratio
(DKK millions)
31 December
31 December
2025
55,096
-4,848
-
2024
54,642
-4,400
-
Total equity
Proposed dividends
Deferred tax assets
Prudent valuation
-12
-7
Minimum Loss Coverage for Non-Performing Exposures
Defined benefit pension fund assets
Common equity tier 1 capital
Difference between expected losses and impairment charges
Tier 1 capital
-379
-85
-374
-81
49,772
-
49,780
-
49,772
-
49,780
-
Reserves in series subject to a reimbursement obligation
Difference between expected losses and impairment charges
Total capital
-
-
49,772
167,715
29.7
29.7
29.7
49,780
156,256
31.9
31.9
31.9
Risk exposure amount
Common equity tier 1 capital ratio (%)
Tier 1 capital ratio (%)
Total capital ratio (%)
At end-2025, total capital and the total risk exposure amount are calculated in accordance with the Capital Requirements Regulation
(CRR/CRD). The solvency need calculation is described in more detail on rd.dk.
29
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
Cash flow statement – Realkredit Danmark Group
(DKK millions)
2025
2024
Cash flow from operating activities
Profit before tax
6,545
5,957
Adjustment for other non-cash operating items
Amortisation, depreciation and impairment charges
Loan impairment charges
3
-347
2
230
Tax paid
-1,850
4,351
-1,827
4,362
Cash flow from operations before changes in operating capital
Cash flow from operating capital
Bonds and shares
870
10,953
-5,802
-
-2,588
11,589
-8,702
1,500
-151
Mortgage loans
Issued mortgage bonds
Due to credit institutions
Other assets/liabilities
-622
Cash flow from operating activities
Cash flow from investing activities
Acquisition of tangible assets
Sale of tangible assets
9,750
6,010
-
-
-
-
-
-
Cash flow from investing activities
Cash flow from financing activities
Dividends
-4,400
-4,400
17,628
5,350
-
-
Cash flow from financing activities
Cash and cash equivalents at 1 January
Change in cash and cash equivalents
Cash and cash equivalents at 31 December
Cash and cash equivalents at 31 December
Cash in hand and demand deposits with central banks
Amounts due from credit institutions and central banks
within 3 months
11,618
6,010
17,628
22,978
22,053
10,802
925
6,826
Total
22,978
17,628
30
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
In determining the impairment for expected credit losses, management exercises judgement and uses estimates and assumptions.
The expected credit loss is calculated for all individual loans as a function of PD (probability of default), EAD (exposure at default) and
LGD (loss given default) and incorporates forward-looking information. The estimation of expected credit losses involves forecasting
future economic conditions over a number of years. Such forecasts are subject to management judgement and those judgements may
be sources of measurement uncertainty that have significant risk of resulting in a material adjustment to a carrying amount in future
periods.
The incorporation of forward-looking elements reflects the expect a tions of the Group’s senior m a n a gement a nd involves the cre a tion
of scenarios, including an assessment of the probability for each scenario. The purpose of using multiple scenarios is to model the
non-linear impact of assumptions about macroeconomic factors on the expected credit losses. During 2025, a new downside sce-
nario was introduced to address the ongoing uncertainty, in addition to the existing three scenarios. Therefore, the four scenarios at
31 December 2025 are: base case, upside, downside and severe downside.
The forward-looking information is based on a three-year forecast period converging to steady state in year seven. That is, after the
forecast period, the macroeconomic scenarios revert slowly towards a steady state.
The scenarios applied in the expected credit loss calculation in the fourth quarter of 2025 have been updated with the latest macroe-
conomic data. For the Nordic markets overall, compared to the end of 2024, the base case and upside scenarios have been revised to
reflect ongoing expectations of normalised inflation levels and improved house prices, though with a slightly more subdued outlook
for some of the Nordic countries.
The b a se c a se is a n extension of the Group’s offici a l view of the Nordic economies, a s outlined in the Nordic Outlook report. At 31
December 2025, the base case scenario expects the Nordic economic recovery to continue, albeit at different rates across the region.
Most interest rate reductions are anticipated to have been completed and inflation has returned to normal levels. The Nordic property
markets remain generally robust, with house prices stable or increasing.
The upside scenario presents a slightly more positive outlook than the base case, with global economic conditions improving, in-
creased demand, and marginally higher GDP growth. This scenario also sees further support for housing markets, accompanied by a
modest rise in interest rates.
A second downside scenario was introduced in the second quarter of 2025 to address the ongoing uncertainty. This scenario, which is
called the downside scenario, envisions escalating trade tensions leading to an economic slowdown with a weaker foreign demand
and declining equity markets.
The severe downside scenario reflect a severe global recession. A global trade war and supply chain issues trigger a deep economic
downturn similar to the financial crisis, characterised by declining demand, negative growth rates, and higher, more persistent unem-
ployment in the economies where the Group is represented. Rising import costs lead to price increases and inflation, prompting inter-
est rates to be hiked in response, as current interest levels have decreased. Property prices decline for an extended period due to
incre a sed interests a nd m a rket uncert a inty. The scen a rio is a pplied in the Group’s ICAAP processes, which is simil a r in n a tur e to reg-
ulatory stress tests, capturing the risk of a recession.
Notes
1. Material accounting policies and estimates
General
Realkredit Danmark prepares its consolidated financial statements in accordance with International Financial Reporting Standards
(IFRS Accounting Standards) and applicable interpretations (IFRIC) issued by the International Accounting Standards Board (IASB),
as adopted by the EU. Furthermore, the consolidated financial statements comply with the Danish FSA’s executive order No. 658
dated 23 May 2025 requirements on the use of IFRS Accounting Standards by undertakings subject to the Danish Financial Business
Act.
Changes to material accounting policies
Amendments to IAS 21 became effective on 1 January 2025 and have no impact on the financial statements.
The accounting policies are unchanged from those applied in Annual Report 2024.
For the purpose of clarity, the notes to the financial statements are prepared using the concepts of materiality and relevance. This
means that information not considered material in terms of quantitative and qualitative measures or relevant to financial statement
users is not presented in the notes.
Significant accounting estimates and judgements
The preparation of financial information requires, in some cases, the use of judgements and estimates by management. This includes
judgements made when applying accounting policies. The most significant judgements made when applying accounting policies re-
late to the fair value measurement of mortgage loans.
Further, the carrying amounts of some assets and liabilities requires the estimation of the effects of uncertain future events on those
assets and liabilities. The estimates are based on premises that management finds reasonable, but which are inherently uncertain
and unpredictable. The premises may be incomplete, unexpected future events or situations may occur, and other parties may arrive
at other estimated values. In view of the inherent uncertainties and the high level of subjectivity and judgement involved in the recog-
nition and measurement of the following items, it is possible that the outcomes in the next financial year could differ from those on
which m a n a gement’s estim a tes a re b a sed.
Fair value measurement of mortgage loans
The fair value of mortgage loans is based on the fair value of the underlying issued mortgage bonds adjusted for changes in the fair
value of the credit risk on borrowers. In addition to the expected credit losses, a collective assessment determines the need for ad-
justments to reflect other components in the f a ir v a lue me a surement, such a s a n a ssessment of a n investor’s risk premium, com pen-
sation for administrative costs related to the loans and the possibility to increase the credit margin if the credit risk increases.
The fair value of the credit risk on the borrower is based on the expected credit loss impairment model in IFRS 9, which depends on
whether the credit risk has increased significantly since initial recognition. If the credit risk has not increased significantly, the impair-
ment charge equals the expected credit losses resulting from default events that are possible within the next 12 months (stage 1). If
the credit risk has increased significantly, the loan is more than 30 days past due, or the loans is in default or otherwise impaired, the
impairment charge equals the lifetime expected credit losses (stages 2 and 3).
31
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
At the end of 2025, the fair value adjustment of the credit risk on mortgage loans was calculated at DKK 2,576 million (2024:
DKK 2,837 million), reducing the value of mortgage loans. The scenario weightings have been updated to incorporate the new down-
side scenario and reflect a more balanced risk picture. The weight on the base case scenario is 50% (31 December 2024: 60%), the
upside scenario is weighted 25% (31 December 2024: 20%), the new downside scenario is weighted 5% (31 December 2024: 0%)
and the severe downside scenario is weighted 20% (31 December 2024: 20%).
If the base case scenario was assigned a probability of 100%, the fair value adjustment at the end-2025 would be DKK 2,150 million
(2024: DKK 2,375 million). The fair value adjustment at the end-2025 would increase to DKK 2,225 million if the downside scenario
was assigned a probability of 100%. If the severe downside scenario was assigned a probability of 100% the fair value ad justment
would increase to DKK 4,325 million (2024: DKK 4,750 million). The increase reflects primarily the transfer of exposures from stage 1
to stage 2 and increased expected credit losses within stage 2. If instead the upside scenario was assigned a probability of 100%, the
fair value adjustment would decrease to DKK 2,100 million (2024: DKK 2,325 billion).
According to the Group’s definition of a signific a nt incre a se in credit risk, i.e. when a lo a n is tr a nsferred from st a ge 1 to stage 2, loans
with a n initi a l PD below 1% a re tr a nsferred to st a ge 2 if the lo a n’s 12-month PD has increased by at least 0.5 of a percentage point
a nd the lo a n’s lifetime PD h a s doubled since origin a tion. The a llow a nce a ccount is rel a tively st a ble in terms of ch a nges to t he defini-
tion of significant increase in credit risk. At 31 December 2025, the allowance account would increase by DKK 27 million (2024:
DKK 30 million), if inste a d a n incre a se in the lo a n’s 12-month PD by at least 0.25 of a percentage point combined with a doubling of
the lifetime PD was considered a significant increase in credit risk.
Management applies judgement when determining the need for post-model adjustments. At the end of 2025, the post-model adjust-
ments amounted to DKK 906 million (2024: DKK 1,149 million). The post-model adjustments cover for instance specific macroeco-
nomic risks on certain industries that are not specifically captured by the expected credit loss model e.g. effects from climate risk or
the macroeconomic uncertainty.
The total balance of post-model adjustments has been reduced compared to end of 2024 million as the positive effects of lower infla-
tion and interest rates continued to materialise.
Consolidation
Group undertakings
The financial statements consolidate the parent company and group undertakings in which the Group has control. Control exists if
Realkredit Danmark A/S is exposed to variable returns from the entity and, directly or indirectly, holds more than half of the voting
rights in an undertaking or otherwise has power to control management and operating policy decisions affecting the variable returns.
The consolidated financial statements are prepared by consolidating items of the same nature and eliminating intra-group transac-
tions, balances and trading profits and losses.
Segment reporting
Realkredit Danmark operates two primary business segments, mortgage finance and a proprietary portfolio. The business segments
are based on ongoing internal reporting of customer-facing activities (mortgage finance) and risk management (proprietary portfolio).
The part of the bond portfolio that is not related to mortgage lending operations is managed under the proprietary portfolio segment.
Translation of transactions in foreign currencies
The presentation currency of the consolidated financial statements is Danish kroner, which is the functional currency of Realkredit
Danmark.
Transactions in foreign currencies are translated into Danish kroner using the exchange rates applicable on the transaction date.
Gains and losses on exchange rate differences arising between the transaction date and the settlement date are recognised in the
income statement.
Monetary assets and liabilities in foreign currency are translated at the exchange rates at the balance sheet date. Exchange rate ad-
justments of monetary assets and liabilities arising as a result of differences in the exchange rates at the transaction date and at the
balance sheet date are recognised in the income statement.
Financial instruments – general
Regular way purchases and sales of financial instruments are recognised and derecognised at the settlement date. Fair value adjust-
ments of unsettled financial instruments are recognised from the trade date to the settlement date for financial instruments subse-
quently recognised at fair value over profit or loss.
Classification
Financial assets are classified at initial recognition on the basis of the company’s business model adopted for managing the assets
and on their contractual cash flow characteristics (including embedded derivatives, if any) into one of the following measurement
categories:
•
Amortised cost if the assets are held exclusively for the purpose of collecting contractual cash flows and if the cash flows
are payments of principal and interest on the principal amount outstanding solely.
•
Fair value through other comprehensive income if the assets are held for the purpose of both collecting contractual cash
flows and selling and if cash flows are payments of principal and interest on the principal amount outstanding solely. The
Group has no financial assets in this category.
•
Fair value through profit or loss for all other financial assets.
At initial recognition, a financial liability is assigned to one of the following categories:
•
Issued mortgage bonds are designated at fair value through profit or loss using the fair value option of IFRS 9 in order not to
create an accounting mismatch that would otherwise arise. See below.
•
Other financial liabilities, including “Senior debt” measured at amortised cost.
Mortgage loans and issued mortgage bonds at fair value through profit or loss (FVPL)
Mortgage loans granted under Danish mortgage finance law are funded by issuing listed mortgage bonds with matching terms. Bor-
rowers may repay such mortgage loans by delivering the underlying bonds. This represents an option to prepay at the fair value of the
underlying bonds, which can be both above and below the principal amount plus accrued interest. Such an option is not consistent
with the solely payments of principal and interest test (SPPI test) in IFRS 9, as changes in the fair value of the underlying bonds re-
flect other factors than interest rate developments. Consequently, regardless of the fact that the business model is to receive the
contractual cash flows, such loans are mandatorily recognised at fair value through profit or loss.
32
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
If the issued mortgage bonds are valued at amortised cost, and the mortgage loans, which are funded by the issued mortgage bonds
with matching terms, are valued at fair value through profit or loss, a timing difference will arise in the recognition of gains and losses
in the financial statements.
To eliminate this random timing difference in the recognition of gains and losses, both mortgage loans and issued mortgage bonds are
valued at fair value through profit or loss (for the issued bonds by using the fair value option of IFRS 9).
The fair value of the mortgage loans is based on the fair value of the underlying mortgage bonds adjusted for the credit risk on bor-
rower/the Group’s customer. This entails that the fair value adjustment of the mortgage loans in all material respects balance out the
fair value adjustment of the issued bonds. Consequently, the total fair value adjustment of the issued mortgage bonds, including the
proportion relating to own credit risk, is recognised in the income statement, as recognition of the fair value adjustment of own credit
risk in other comprehensive income would lead to an accounting mismatch in the income statement.
The fair value adjustment of the mortgage loans and the issued mortgage bonds is recognised under Value adjustments, except for
the part of the value adjustment that concerns the credit risk on mortgage loans: this part is recognised under Loan impairment
charges.
The table below shows the distribution of the Group’s financial instruments by valuation method:
Fair value through profit or loss
Managed on fair-
Due to
Amortised cost
Trading portfolio
value basis
SPPI test
Designated
Total
Assets
Cash in hand and demand deposits
with central banks
22,053
-
-
-
-
22,053
Due from credit institutions and
central banks
925
-
-
-
-
925
Bonds
30,124
-
21,055
-
-
51,179
Loans
350
-
-
740,491
-
740,841
Shares
-
-
2
-
-
2
Derivatives (Other assets)
-
47
-
-
-
47
Total assets, 31 December 2025
53,452
47
21,057
740,491
-
815,047
Total assets, 31 December 2024
45,757
22
24,369
755,539
-
825,687
Liabilities
Due to credit institutions and central
banks
3,500
-
-
-
-
3,500
Issued bonds
-
-
-
-
751,752
751,752
Derivatives (Other liabilities)
-
7
-
-
-
7
Total liabilities, 31 December 2025
3,500
7
-
-
751,752
755,259
Total liabilities, 31 December 2024
3,500
9
-
-
762,125
765,634
33
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
BALANCE SHEET
Bonds at fair value
At initial recognition, these bonds are measured at fair value, excluding transaction costs. Subsequently, bonds are measured at fair
value through profit or loss. The bonds form part of a portfolio, which is managed on a fair value basis.
If an active market exists, fair value is based on the most recently observed market price at the balance sheet date.
If a bond is quoted in a market that is not active, the Group bases its measurement on the most recent transaction price. Adjustment
is made for subsequent changes in market conditions, for instance by including transactions in similar bonds that are motivated by
normal business considerations.
If no active market exists, fair value is estimated on the basis of generally accepted valuation techniques and market-based parame-
ters.
Bonds at amortised cost
Realkredit Danmark has a bond portfolio held for the purpose of generating a known return until maturity. The bonds are measured at
amortised cost. Interest rate risk is not hedged. Impairment charges are made for expected credit losses on the basis of a classifica-
tion of the bonds into stages 1, 2 and 3, and the impairment equals 12-month expected credit losses for bonds in stage 1 and the
present value of lifetime expected credit losses for bonds in stages 2 and 3, cf. the description below in the section ‘Mortgage loans
and Issued mortgage bonds at fair value’. For calculating the present value of expected credit losses for discounting purposes, the
original effective interest rate is used instead of the current interest rate.
Mortgage loans and Issued mortgage bonds at fair value
At initial recognition, mortgage loans and issued mortgage bonds are measured at fair value, excluding transaction costs. Subse-
quently, these financial instruments are measured at fair value through profit or loss.
The fair value of the issued mortgage bonds will usually equal the quoted market price. However, a small part of the issued bonds are
illiquid, and the fair value of these bonds is calculated on the basis of a discounted cash flow valuation model.
The fair value of mortgage loans is based on the fair value of the underlying issued mortgage bonds adjusted for changes in the fair
value of the credit risk on the borrowers. The IFRS 13 estimate of the fair value of the expected credit losses is calculated on the basis
of the IFRS 9 model for calculating impairment of losses on loans at amortised cost: expected credit losses, including the classifica-
tion of loans between stages 1, 2 and 3:
Stage 1: If the credit risk has not increased significantly, the impairment equals the expected credit losses resulting from default
events that are possible within the next 12 months, see however below on the collective assessment of the need for further adjust-
ments.
Stage 2: If the credit risk has increased significantly, the loan is transferred to stage 2 and an impairment charge equal to the lifetime
expected credit losses is recognised. A significant credit risk increase is considered to occur when the following increase in the proba-
bility of default (PD) is observed:
•
For loans originated below 1% in PD: An increase in the loan’s 12-month PD of at least 0.5 of a percentage point since origi-
nation and a doubling of the loan’s lifetime PD since origination
•
For loans originated above 1% in PD: An increase in the loan’s 12-month PD of 2 percentage points since origination or a
doubling of the loan’s lifetime PD since origination
•
Further, loans that are more than 30 days past due are moved from stage 1 to stage 2. Finally, customers subject to for-
bearance measures are placed in stage 2, if the Group, in the most likely outcome, expects no loss or the customers are in
the 2-year probation period for performing forborne exposures.
Stage 3: If the loan is in default, it is transferred to stage 3. A facility becomes credit-impaired when one or more events that have a
detrimental impact on the estimated future cash flows have occurred. This includes observable data about (a) significant financial
difficulty of the borrower; (b) a breach of contract, such as a default or past due event; (c) the borrower, for reasons relating to the
borrower’s financial difficulty, is granted a concession; (d) it is probable that the borrower will enter into bankruptcy. Credit-impaired
facilities are placed in Realkredit Danmark’s rating category 11. For rating category 11, all exposures are classified as stage 3. The
Realkredit Danmark Group uses the option to continue to recognise interest income on mortgage loans measured at fair value on the
basis of the contractual interest rates.
A definition of default is used in the measurement of expected credit losses and the assessment to determine movements between
stages. The definition of default is also used for internal credit risk management and capital adequacy purposes. To support a more
harmonised approach regarding the application of the definition of default, the European Banking Authority (EBA) issued the following
products that guide the application of the definition of default: the Guidelines on the application of the definition of default,
EBA/GL/2016/07 and the Regulatory Technical Standards (RTS) on the materiality threshold for credit obligations past due,
EBA/RTS/2016/06.
The Group’s definition of default for accounting purposes aligns with the regulatory purposes. All exposures that are considered de-
fault are also considered Stage 3 exposures. This is applicable for exposures that are default due to either the 90 days past due de-
fault trigger or the unlikeliness to pay default triggers.
The expected credit loss is calculated for all individual loans as a function of the probability of default (PD), the exposure at default
(EaD) and the loss given default (LGD).
The lifetime expected credit losses cover the expected remaining lifetime of the loan. For most loans, the expected lifetime is limited
to the remaining contractual maturity and adjusted for expected prepayment. For exposures with weak credit quality, the likelihood of
prepayment is not included.
The forward-looking elements of the calculation reflect the current expectations of senior management. The Danske Bank Group’s
independent macroeconomic research unit creates macroeconomic scenarios, including an assessment of the probability for each
scenario. The purpose of using multiple scenarios is to model the non-linear impact of assumptions about macroeconomic factors on
the expected credit losses. Afterwards there is a process to ensure review and sign-off of the scenarios. Management’s approval of
scenarios can include adjustments to the scenarios or to which scenarios are used, the assigned probability weighting and post-
model adjustments to cover the outlook for particular high-risk portfolios, which are not provided by the Group’s macroeconomists.
The approved scenarios are used to calculate the impairment levels. Technically, the forward-looking information is used directly in
34
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
the PDs through an estimate of general changes to the PDs and the LGDs in the expected credit loss calculation. However, for signifi-
cant exposures in stage 3, an individual assessment of the scenarios, changes to expected credit losses and the related probabilities
are performed by senior credit officers.
The forward-looking information is based on a three-year forecast period converging to steady state in year seven. The base case is
based on the macroeconomic outlook as disclosed in the Danske Bank Group’s Nordic Outlook reports.
In addition, a collective assessment determines the need for further adjustments to reflect other components in the fair value meas-
urement, such as an assessment of an investor’s risk premium, compensation for administrative costs related to the loans and the
possibility of increasing the credit margin if the credit risk increases. This assessment also takes into consideration the fact that initial
recognition of 12-month expected credit losses is not in accordance with fair value, and the fact that the expected credit losses dur-
ing the lifetime of the asset should be included in the assessment even if the credit risk has not increased significantly.
Loans considered uncollectible are written off. Write-offs are debited to the allowance account. Loans are written off once the usual
collection procedure has been completed and the loss on the individual loan can be calculated.
Due from credit institutions and central banks and Loans and other amounts due at amortised cost
Amounts due from credit institutions and central banks comprise amounts due from other credit institutions and time deposits with
central banks. Reverse transactions (purchases of securities from credit institutions and central banks that the Group agrees to resell
at a later date) are recognised as Amounts due from credit institutions and central banks with collateral in the securities received.
Reverse transactions are made on standard terms and conditions.
These financial assets are held for the purpose of achieving the contractual return until expiry and have contractual cash flows re-
flecting repayment of principal and interest thereon. Loans and other amounts due are therefore carried at amortised cost and consist
of mortgage payments due and other outlays relating to mortgage loans as well as claims against individual borrowers and reserve
fund mortgages, etc.
Impairments are made for expected credit losses on the basis of a classification of the loans into stages 1, 2 and 3, and the impair-
ment equals 12-month expected credit losses for loans in stage 1 and the present value of lifetime expected credit losses for loans in
stages 2 and 3, cf. the description above in the section ‘Mortgage loans and Issued mortgage bonds at fair value’.
Assets temporarily taken over
Assets temporarily taken over include tangible assets, which according to a publicly announced plan, the Group expects to sell within
twelve months. Such assets are measured at the lower of their carrying amount at the time of classification and their fair value less
expected costs to sell and are no longer depreciated.
Properties taken over in connection with non-performing loans and which are likely to be sold within 12 months are presented under
Assets temporarily taken over. Subsequent fair value adjustments and gains or losses on disposal are recognised under Loan impair-
ment charges.
Other assets
Pension assets
The Group’s pension obligations generally consist of defined contribution pension plans for its staff. Under the defined contribution
plans, the Group pays regular contributions to insurance companies and other institutions. Such payments are expensed as they are
earned by the staff, and the obligations under the plans are taken over by the insurance companies and other institutions.
Furthermore, the Group operates a defined benefit plan maintained under Kreditforeningen Danmarks Pensionsafviklingskasse (pen-
sion fund). Realkredit Danmark A/S guarantees future payment of a defined benefit from the time of retirement.
The pension fund and Realkredit Danmark’s defined benefit plan have not accepted new members since 1971, so no pension contri-
butions are made. Accordingly, there are no service costs.
The amounts payable are recognised on the basis of an actuarial computation of the present value of expected benefits. The present
value is calculated on the basis of expected future trends in salaries and interest rates, time of retirement, mortality rate and other
factors.
The fair value of pension assets less the present value of pension benefits is carried as a pension asset under Other assets in the bal-
ance sheet.
Due to credit institutions and central banks
Due to credit institutions and central banks include amounts received under repo transactions. These deposits are recognised as debt
with collateral in the securities surrendered. Repo transactions are made on standard terms and conditions. Amounts due to credit
institutions and central banks are measured at amortised cost.
Deferred tax assets/Deferred tax liabilities
Deferred tax on all temporary differences between the tax base of assets and liabilities and their carrying amounts is accounted for in
accordance with the balance sheet liability method. Deferred tax is recognised under Deferred tax assets or Deferred tax liabilities.
Deferred tax is measured on the basis of the tax regulations and rates that, according to the rules in force at the balance sheet date,
will apply at the time the deferred tax is expected to crystallise as current tax. Changes in deferred tax as a result of adopted changes
in tax rates are recognised in the income statement based on expected cash flows.
Current tax assets/Current tax liabilities
Current tax assets and liabilities are recognised in the balance sheet as the estimated tax charge on the profit for the year adjusted for
prepaid tax and prior-year tax payables and receivables.
Tax assets and liabilities are offset if the Group has a legally enforceable right to set off such assets and liabilities and intends either
to settle the assets and liabilities on a net basis or to realise the assets and settle the liabilities simultaneously.
Shareholders’ equity
Reserves in series
Reserves in series comprise series established before 1972 with joint and several liability, series established after 1972 without joint
and several liability, other series, including Danske Kredit and mortgage-covered bonds.
35
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
Other reserves
Other reserves comprise the mortgage credit business that is not included in reserves in series.
Proposed dividends
The Board of Directors’ proposal for dividends for the year submitted to the general meeting is included as a separate reserve in
shareholders’ equity. The dividends are recognised as a liability when the general meeting has adopted the proposal.
INCOME STATEMENT
Interest income and expense
Interest income and expenses include interest and administration margins on financial instruments measured at fair value.
Fees and commission income and expense
Income, including origination fees, from mortgage loans carried at fair value is recognised when the transaction is completed.
Income and expenses for services provided over a period of time are accrued over the period. Transaction fees are recognised on
completion of the individual transaction.
Value adjustments
Value adjustments comprise realised and unrealised capital gains and losses on bonds at fair value, mortgage loans, issued mortgage
bonds and fixed-price agreements as well as exchange rate adjustments.
Staff costs and administrative expenses
Staff costs
Salaries and other remuneration that the Group expects to pay for work carried out during the year are expensed under Staff costs
and administrative expenses. This item comprises salaries, bonuses, expenses for share-based payments, holiday allowances, anni-
versary bonuses, pension costs and other remuneration. Performance-based pay is expensed as it is earned.
Performance-based pay and share-based payments
Performance-based pay is expensed as it is earned. Part of the performance-based pay for the year is paid in the form of conditional
shares issued by Danske Bank. Rights to shares under the conditional share programme vest up to five years after being granted pro-
vided that the employee, with the exception of retirement, has not resigned from the Group. Retirement is not considered as resigna-
tion.
The fair value of share-based payments at the grant date is expensed over the service period that unconditionally entitles the em-
ployee to the payment. The intrinsic value of the share-based payments is expensed in the year in which the share-based payments
are earned, whereas the time value (if any) is accrued over the remaining service period. Expenses are set off against shareholders’
equity. The increase in shareholders’ equity is eliminated by set-off against an interim account with Danske Bank A/S. Subsequent
changes in the fair value are not recognised in the income statement.
Pension obligations
The Group’s contributions to defined contribution pension plans are recognised in the income statement as they are earned by the
employees.
Loan impairment charges
Loan impairment charges include the fair value adjustment of the credit risk on mortgage loans as well as losses on and impairment
charges for other loans and amounts due.
The item also includes impairment charges and realised gains and losses on acquired assets if the assets qualify as assets temporar-
ily taken over.
Tax
Calculated current and deferred tax on the profit for the year and adjustments of tax charges for previous years are recognised in the
income statement. Tax on items recognised in Other comprehensive income is recognised in Other comprehensive income. Similarly,
tax on items recognised in shareholders’ equity is recognised in Shareholders’ equity.
Comprehensive income
Total comprehensive income includes the net profit for the year and other comprehensive income. Other comprehensive income also
includes actuarial gains or losses on defined benefit pension plans.
Cash flow statement
The cash flow statement is prepared according to the indirect method. The statement is based on profit for the year before tax and
shows the consolidated cash flows from operating, investing and financing activities and the increase or decrease in cash and cash
equivalents during the year.
Cash and cash equivalents consists of Cash in hand and demand deposits with central banks and amounts due from credit institutions
and central banks with an original maturity shorter than three months.
Reporting on the ESEF Regulation
The Commission’s Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) requires a spe-
cial digital reporting format for annual report for publicly listed entities. The ESEF Regulation includes requirements related to the
preparation of the annual report in XHTML format and iXBRL tagging of the consolidated financial statements key elements including
income statement, statement of comprehensive income, balance sheet, statement of capital, cash flow statement and notes.
Realkredit Danmark A/S’ iXBRL tagging is prepared in accordance to the ESEF taxonomy which is included in the appendices of the
ESEF Regulation and is developed based on the IFRS taxonomy that is published by IFRS Foundation. For the annual report for 2025
the ESEF Taxonomy for 2024 has been applied.
The account balances in the consolidated financial statements are XBRL tagged to the elements in the European Single Electronic Re-
porting (ESEF) Regulation that are assessed to correspond to the content of the account balances. For account balances that are as-
sessed not to be covered by the account balances defined in the ESEF taxonomy, Realkredit Danmark A/S has incorporated entity
specific extensions to the taxonomy. These extensions are – except subtotals – embedded in the elements in the ESEF taxonomy.
Annual report 2025 comprises – in accordance with the requirements of the ESEF Regulation – a zip-file RealkreditDanmark-2025-
12-31-0-en.zip, that includes an XHTML-file, that can be opened with standard web browsers and a number of technical XBRL files
that make automated extracts of the incorporated XBRL data possible.
36
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
Standards and interpretations not yet in force
The International Accounting Standards Board (IASB) has issued two new international accounting standards (IFRS 18, Presentation
and disclosure in financial statements, and IFRS 19, Subsidiaries without public accountability) and amendments to existing interna-
tional accounting standards (IFRS 7, IFRS 9 and IAS 21) that have not yet come into force.
IFRS 18, Presentation and disclosure in financial statements, aims to improve reporting of financial performance by introducing new
requirements for the Income statement and disclosures for management-defined performance measures. IFRS 18 will replace IAS 1
and is effective for periods beginning on or after 1 January 2027. IFRS 18 is not yet endorsed by the EU.
IFRS 18 introduces specific categories for the classification of income and expenses in the Income statement (Operating, Investing,
Financing, Income taxes and Discontinued operations), which is determined by main business activities. RD continues to assess how
IFRS 18 will impact the presentation of the Income statement.
IFRS 18 also introduces management-defined measures (MPMs), which are subtotals of income and expenses that are not defined in
the IFRS standards but used in public communication.
A note is required showing a reconciliation between MPMs and the most di-
rectly comparable subtotals in the Income statement. At time of writing, RD is in the process of identifying MPMs.
IFRS 18 will have no impact on the Group’s net profit or equity on implementation.
IFRS 19 and the amendments to other standards are not expected to have any material impact on the Group’s financial statements.
Accounting policies for the parent company
The financial statements of the parent company are prepared in accordance with the Danish Financial Business Act and the Danish
FSA’s Executive Order No. 658 of 23 May 2025.
Holdings in subsidiary undertakings are measured using the equity method.
37
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
Mortgage finance encompasses property financing services provided in Denmark, Sweden and Norway to personal and business cus-
tomers. The medi a tion of property fin a ncing services is m a de through D a nske B a nk’s br a nch network a nd fin a nce centres a nd
through Corporate & Institutional Mortgage Finance at Realkredit Danmark. The segment also includes mediation of real estate trans-
actions in Denmark offered through the ‘h ome’ real-estate agency chain. Own holdings comprise the net return on the part of the se-
curities portfolio not relating to the mortgage finance business. Under the Danish Financial Business Act, at least 60% of the total
capital of a mortgage credit institution must be invested in bonds, etc.
Realkredit Danmark has no branch offices or subsidiaries outside Denmark.
IFRSs require disclosure if 10% or more of the income derives from a single customer. The Realkredit Danmark Group has no such
customers.
Reconciliation of the financial highlights and the IFRS financial statements
Financial highlights and reporting for the two business segments correspond to the information incorporated in the Management’s
report, which is regularly sent to management. The presentation in the financial highlights deviates in certain areas from the financial
statements prepared under IFRS and therefore represents alternative performance measures. There are generally no adjusting items,
which means that net profit is the same in the financial highlights and in the IFRS financial statements.
The reclassification column shows the reconciliation between the presentation in the highlights and in the IFRS financial statements.
The difference between the presentation in the financial highlights and in the IFRS financial statements is due to the fact that income
from trading activities in mortgage credit activities and income from own holdings, except for interest on bonds at amortised cost, is
carried in the consolidated highlights as income from investment portfolios, while in the income statement according to IFRS it is car-
ried under net interest income, value adjustments, etc.
As the distribution of income between the various income line items in the IFRS income statements can vary considerably from one
year to the next, depending on the underlying transactions and market conditions, the net presentation in the financial highlights is
considered to better reflect income in those areas.
2. Profit broken down by activity
(DKK millions)
Mortgage
Own
Reclassi-
2025
finance
holdings
Highlights
fication
IFRS
Administration margin
5,588
-
5,588
-
5,588
Net interest income
1,175
106
1,281
-156
1,125
Net fee income
-9
-
-9
-
-9
Income from investment portfolios
7
210
217
-217
-
Value adjustments
-
-
-
373
373
Other income
108
-
108
-
108
Total income
6,869
316
7,185
-
7,185
Expenses
895
3
898
-
898
Profit before loan impairment charges
5,974
313
6,287
-
6,287
Loan impairment charges
-258
-
-258
-
-258
Profit before tax
6,232
313
6,545
-
6,545
Tax
1,697
-
1,697
Net profit for the year
4,848
-
4,848
Total assets
762,391
54,173
816,564
-
816,564
(DKK millions)
Mortgage
Own
Reclassi-
2024
finance
holdings
Highlights
fication
IFRS
Administration margin
5,543
-
5,543
-
5,543
Net interest income
2,103
-558
1,545
-631
914
Net fee income
21
-
21
-
21
Income from investment portfolios
11
85
96
-96
-
Value adjustments
-
-
-
727
727
Other income
95
-
95
-
95
Total income
7,773
-473
7,300
-
7,300
Expenses
1,007
3
1,010
-
1,010
Profit before loan impairment charges
6,766
-476
6,290
-
6,290
Loan impairment charges
333
-
333
-
333
Profit before t a x
6,433
-476
5,957
-
5,957
Tax
1,533
-
1,533
Net profit for the year
4,424
-
4,424
Total assets
772,787
54,236
827,023
-
827,023
3. Fee and commission income and other operating income
Fee and commission income relates to mortgage credit activities and primarily concern income from the establishment and change of
loans. These are recognised at the date of transaction as the loans are measured at fair value through profit or loss. In the business
segment reporting and internal management, fees are presented as net figures, i.e. fee income and fee expenses are offset.
Other income includes franchise income in the amount of DKK 120 million, which is recognised over the term of the franchise agree-
ment (2024: DKK 106 million).
38
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
4. Interest income
6. Value adjustments
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Mortgage loans
-4,356
13,685
-4,356
13,685
Bonds
168
409
168
409
Shares
-
-1
-
-
Currency
6
-10
6
-10
Derivatives
-408
-709
-408
-709
Other assets
8
11
8
11
Issued mortgage bonds
4,955
-12,658
4,955
-12,658
Total
373
727
373
728
Value adjustments derived from
Assets and liabilities at fair value
365
716
365
717
Assets and liabilities at amortised cost
8
11
8
11
Total
373
727
373
728
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Reverse transactions with credit institutions and central banks
169
177
169
177
Credit institutions and central banks
104
183
103
181
Loans and other amounts due
13,989
16,085
13,989
16,085
Administration margin
5,588
5,543
5,588
5,543
Bonds at fair value
303
190
303
190
Bonds at amortised cost
644
505
644
505
Derivatives
Interest rate contracts
66
54
66
54
Other interest income
18
17
18
17
Total
20,881
22,754
20,880
22,752
Interest income derived from
Assets at fair value
19,946
21,872
19,946
21,872
Assets at amortised cost
935
882
934
880
Total
20,881
22,754
20,880
22,752
5. Interest expense
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Repo transactions with credit institutions and central banks
156
130
156
130
Due to credit institutions and central banks
104
91
104
91
Issued mortgage bonds etc.
13,903
16,050
13,903
16,050
Other interest expense
5
26
5
26
Total
14,168
16,297
14,168
16,297
Interest expense derived from
Liabilities at fair value
13,903
16,050
13,903
16,050
Liabilities at amortised cost
265
247
265
247
Total
14,168
16,297
14,168
16,297
39
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
The remuneration of the Executive Management was paid by the parent company Realkredit Danmark A/S. No member of the Execu-
tive Management has received remuneration for membership of the Executive Management or the Board of Directors of the subsidiary
home a/s.
Remuneration Report 2025 available at rd.dk provides a detailed description of remuneration paid to the Executive Management.
7. Staff costs and administrative expenses
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Salaries and remuneration of Executive Management, Board of Directors
Executive Management
10
8
10
8
Board of Directors
1
1
1
1
Total
11
9
11
9
Staff costs
Salaries
177
169
152
145
Defined contribution pensions
25
22
22
19
Other social security costs and taxes
32
30
32
30
Total
234
221
206
194
Other administrative expenses
650
778
605
745
Total staff costs and administrative expenses
895
1,008
822
948
Number of full-time-equivalent staff (avg.)
234
229
204
200
Remuneration of the Board of Directors (DKK thousands)
Total remuneration
839
575
839
575
Members of the Board end of year
8
7
8
7
Remuneration of other material risk takers
In accordance with current legislation of the Danish Financial Business Act and the accompanying order, Realkredit Danmark is re-
quired to identify all employees whose professional activities could have a material impact on the risk profile of Realkredit Danmark.
Other material risk takers do not comprise members of the Executive Management or Board of Directors.
Variable payment for other material risk takers is granted in accordance with the rules of the Danske Bank Group’s remuneration pol-
icy, which Realkredit Danmark has adopted, the rules of the European Banking Authority (EBA) and the rules of the Danish FSA with
respect to split into cash and share-based payment and postponement of disbursement. All variable payments are subject to claw
back provisions if granted on the basis of data which has subsequently proven to be manifestly misstated or inaccurate.
For 2025, Realkredit Danmark A/S paid remuneration totalling DKK 22.6 million for 13 other material risk takers (2024: DKK 21.3
million for 14 other material risk takers). The remuneration consists of fixed remuneration of DKK 19.8 million and variable remunera-
tion of DKK 2.8 million (2024: DKK 17.6 million and DKK 3.7 million). Variable remuneration for 2025 is estimated and the final figure
is determined at the end of February 2026. The final fixed and variable remuneration for material risk takers will be published in the
quantitative disclosure on material risk takers’ remuneration, compliant with the Danish FSA and EBA requirements. The disclosure
will be available at rd.dk in May 2026.
Realkredit Danmark A/S has no pension obligation towards other material risk takers, as these are covered by defined contribution
plans through pension funds.
Remuneration Report 2025 available at rd.dk provides a detailed description of remuneration paid to the Board of Directors.
Members of the Board of Directors employed by Danske Bank A/S do not receive remuneration from Realkredit Danmark. During the
period that members of the Board of Directors were also members of the Executive Leadership Team in Danske Bank A/S, a total re-
muneration of approximately DKK 14.1 million was earned from Danske Bank A/S in 2025 (2024: DKK 26.6 million).
Members of the Board of Directors only receive a fixed fee. They are not covered by any incentive programmes at Realkredit Danmark.
In addition to the fixed fee, a committee fee is paid to the chairman of the Audit Committee.
Board fees are paid by the parent company Realkredit Danmark A/S. No board member has received remuneration for membership of
the Executive Management or board of directors of the home a/s subsidiary.
The Group has no pension obligations towards its board members.
The total remuneration of the Executive Management of DKK 9.8 million for 2025 (2024: DKK 7.8 million) consists of fixed remunera-
tion of DKK 7.6 million (2024: DKK 5.8 million) and variable remuneration of DKK 2.2 million (2024: DKK 2.0 million).
Pension plans
Most of the Group’s pension plans are defined contribution plans under which the Group pays contributions to insurance companies.
Such payments are expensed regularly. The Group has to a minor extent entered into a defined benefit pension plan through Kredit-
foreningen Danmarks Pensionsafviklingskasse, where the Group is under an obligation to pay defined future benefits from the time of
retirement. The pension fund and the Group’s defined benefit plan has not accepted new members since 1971, so no pension contri-
butions are made. Accordingly, there are no service costs.
The fair value of pension assets less the present value of obligations is recognised under Other assets. At 31 December 2025, the net
present value of pension obligations was DKK 385 million (2024: DKK 429 million), and the fair value of plan assets was DKK 499
million (2024: DKK 539 million). Actuarial gains or losses are recognised in Other comprehensive income.
The calculation of the net obligation is based on valuations made by external actuaries. These valuations rely on assumptions about a
number of variables, including discount and mortality rates and salary increases. The measurement of the net obligation is particu-
larly sensitive to changes in the discount rate. The discount rate is determined by reference to yields on Danish mortgage bonds with
terms to maturity matching the terms of the pension obligations.
40
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
8. Share-based payments
The total expense recognised as Operating expenses in 2025 arising from share-based payments was DKK 0.5 million (2024: DKK 1.8
million). All share-based payments are equity-settled. The exact number of shares granted for 2025 will be determined at the middle
of April 2026.
Part of the variable remuneration of Realkredit Danmark’s Executive Management has been granted by way of conditional shares un-
der the bonus structure for material risk takers and other employees, as part of their variable remuneration. Such employees have a
performance agreement based on the performance of the Group. Part of the Danske Bank shares granted to material risk takers are,
as required by EBA, deferred, see section above on variable payment. The fair value at grant date is measured at the expected mone-
tary value of the underlying agreement.
Rights to conditional shares vest up to five years after the grant date, provided that the employee, with the exception of retirement,
has not resigned from the Group. In addition to this requirement, the vesting of rights is conditional on certain conditions being met.
The remuneration is subject to backtesting and claw back.
The fair value of the conditional shares was calculated as the share price less the payment made by the employee.
Danske Bank A/S carries hedged the share price risk.
Conditional shares
Number
Fair Value (FV)
At issue
End of year
Total
(DKK millions)
(DKK millions)
Granted in 2020
1 January 2024
1,359
Vested 2024
-1,359
Forfeited 2024
-
Other changes 2024
-
31 December 2024
-
-
-
Share-based payments
Conditional shares
Number
Fair Value (FV)
At issue
End of year
Total
(DKK millions)
(DKK millions)
Granted in 2021
1 January 2024
3,404
Vested 2024
-
Forfeited 2024
-
Other changes 2024
-
31 December 2024
3,404
0.4
0.7
Vested 2025
-3,404
Forfeited 2025
-
Other changes 2025
-
31 December 2025
-
-
-
Granted in 2022
1 January 2024
4,008
Vested 2024
-1,582
Forfeited 2024
-
Other changes 2024
-
31 December 2024
2,426
0.3
0.5
Vested 2025
-963
Forfeited 2025
-
Other changes 2025
1,335
31 December 2025
2,798
0.5
0.9
41
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
8. Share-based payments Continued
Holdings of the Executive Management and fair value, end of 2025
Grant year
2022-2025
(DKK millions)
Number
FV
Total
8,674
2.76
Holdings of the Executive Management and fair value, end of 2024
Grant year
2021-2024
(DKK millions)
Number
FV
Total
5,723
1.17
In 2025, the average price at the vesting date for rights to conditional shares was DKK 287.51 (2024: DKK 200.87).
Remuneration Report 2025 available at rd.dk provides a detailed description of share-based payments to the Board of Directors.
Conditional shares
Number
Fair Value (FV)
At issue
End of year
Total
(DKK millions)
(DKK millions)
Granted in 2023
1 January 2024
3,339
Vested 2024
-749
Forfeited 2024
-
Other changes 2024
-
31 December 2024
2,590
0.4
0.5
Vested 2025
-1,044
Forfeited 2025
-
Other changes 2025
1,047
31 December 2025
2,593
0.3
0.8
Granted in 2024
1 January 2024
7,339
Vested 2024
-3,833
Forfeited 2024
-
Other changes 2024
-
31 December 2024
3,506
0.7
0.7
Vested 2025
-1,049
Forfeited 2025
-
Other changes 2025
565
31 December 2025
3,022
0.5
1.0
Granted in 2025
Granted in 2025
11,592
Vested 2025
-5,521
Forfeited 2025
-
Other changes 2025
-
31 December 2025
6,071
1.4
1.9
42
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
9. Audit fees
11. Tax
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Audit firm appointed by the general meeting
Statutory audit of financial statements
3
3
3
3
Fees for other assurance engagements
-
-
-
-
Fees for tax advisory services
-
-
-
-
Fees for other services
-
-
-
-
Total
3
3
3
3
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Tax on profit for the year
1,687
1,718
1,679
1,710
Deferred tax
10
-168
10
-168
Adjustment of prior-year tax charges
-
-17
-
-17
Total
1,697
1,533
1,689
1,525
Effective tax rate
Current Danish tax rate
26.0
26.0
26.0
26.0
Adjustment of prior-year tax charge
-
-0.3
-
-0.3
Non-taxable items
-0.1
-
-0.2
-0.1
Change in deferred tax charge as a result of increased tax rate
-
-
-
-
Effective tax rate
25.9
25.7
25.8
25.6
10. Loan impairment charges
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
ECL on new assets
280
393
280
393
ECL on assets derecognised
557
397
557
397
Impact of remeasurement
-35
297
-35
297
Write-offs charged directly to income statement
62
37
62
36
Received on claims previously written off
8
-3
8
-3
Total
-258
333
-258
332
43
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
12. Due from credit institutions and central banks
14. Bonds at amortised cost
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
On demand
874
864
797
789
3 months or less
51
5,962
51
5,962
3-12 months
-
-
-
-
Total
925
6,826
848
6,751
Due from credit institutions
925
6,826
848
6,751
Term deposits with central banks
-
-
-
-
Total
925
6,826
848
6,751
At fair value
925
6,826
848
6,751
Portion attributable to reverse transactions
51
5,962
51
5,962
The fair value is based on quoted prices.
In 2025, reverse transactions of DKK 14,456 million were offset against repo transactions (2024: DKK 3,121 million).
In connection with reverse transactions, Realkredit Danmark is entitled to sell or remortgage the securities.
In 2025, securities worth DKK 0 million were sold or remortgaged (2024: DKK 0 million).
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Other mortgage bonds
26,546
26,260
26,546
26,260
Government bonds
3,578
1,662
3,578
1,662
Total
30,124
27,922
30,124
27,922
Fair value of held-to-collect assets
29,902
27,743
29,902
27,743
The fair value is based on quoted prices.
Of Realkredit Danmark’s bond portfolio, DKK 23.6 billion has a term to maturity of less than five years, while DKK 6.5 billion has a
term to maturity of more than five years (2024: DKK 25.0 billion and DKK 2.9 billion).
After implementation of IFRS 9, the bonds are recognised in connection with impairment for expected credit losses.
The bonds are recognised in stage 1, and the expected credit losses resulting from default events within the next 12 months are insig-
nificant.
Realkredit Danmark has placed DKK 30,124 million (end-2024: DKK 27,922 million) of its proprietary portfolio in fixed-rate bonds,
which are recognised in the financial statements as hold-to-collect investments and are thus measured at amortised cost. At end-
2025, Realkredit Danmark’s bonds at amortised cost exceeded fair value by DKK 222 million (end-2024: DKK 179 million). The inter-
est rate risk duration for the portfolio is 3.2 years. As a result, Realkredit Danmark knows the return on the portfolio until maturity,
and the fixed-rate hold-to-collect portfolio is therefore not considered to entail an interest rate risk that needs to be hedged through
derivatives.
13. Bonds at fair value
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Own mortgage bonds
87,367
77,319
87,367
77,319
Other mortgage bonds
18,597
19,929
18,597
19,929
Government bond
2,458
4,438
2,458
4,438
Total
108,422
101,686
108,422
101,686
Own mortgage bonds set off against
issued mortgage bonds
87,367
77,319
87,367
77,319
Total
21,055
24,367
21,055
24,367
Of Realkredit Danmark's bond portfolio, DKK 14.2 billion has a maturity of less than 12 months, while DKK 6.8 billion has a maturity of
1-5 years (2024: DKK 22.0 billion and DKK 2.4 billion).
44
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
15. Total Lending
16. Mortgage loans at fair value
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Mortgage loans, nominal value
783,613
794,566
783,613
794,566
Fair value adjustment of underlying bonds
-40,546
-36,190
-40,546
-36,190
Adjustment for credit risk
2,576
2,837
2,576
2,837
Mortgage loans at fair value
740,491
755,539
740,491
755,539
Arrears and outlays
322
140
322
140
Other loans
28
67
13
51
Total
740,841
755,746
740,826
755,730
Apart from being backed by mortgages on properties,
loans are backed by central and local government
guarantees and insurance guarantees of
66,932
66,660
66,932
66,660
Pass books and bonds have been deposited and guarantees
provided as supplementary security in a total amount of
92,181
94,990
92,181
94,990
Realkredit Danmark has also received various declarations of indemnification without specification of amounts.
The valuation of the loans is based on the quoted price of the underlying bonds with which borrowers may repay the loans. The regu-
lar fluctuations in the price of the bonds will therefore be offset by a corresponding change in the value of the loans with the result
being unaffected by the ongoing market value fluctuations, both in terms of interest and the credit risk on the issued bonds. In addi-
tion, the value of the loans is affected by credit risk changes. In 2025, DKK 261 million was booked as an expense concerning adjust-
ment for credit risk on loans (2024: an income of DKK 181 million). The accumulated adjustment for credit risk amounts to DKK 2.6
billion (2024: DKK 2.8 billion).
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Mortgage loans (nominal value) broken down by
property category (percentage)
Owner-occupied dwellings
48
49
48
49
Holiday homes
2
3
2
3
Subsidised residential property
12
12
12
12
Private residential rental property
16
15
16
15
Industrial and skilled trades property
3
3
3
3
Office and retail property
12
11
12
11
Agricultural property etc.
5
5
5
5
Property for social, cultural and
training activities
2
2
2
2
Total
100
100
100
100
0-1 month
852
914
852
914
1-3 months
4,834
5,915
4,834
5,915
3-12 months
14,891
17,723
14,891
17,723
1-5 years
95,984
93,704
95,984
93,704
5-10 years
136,891
137,628
136,891
137,628
Over 10 years
487,039
499,655
487,039
499,655
Total
740,491
755,539
740,491
755,539
45
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
17. Loans and other amounts due at amortised cost
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
On demand
322
140
322
140
3 months or less
1
4
-
2
3-12 months
4
10
-
6
1-5 years
8
21
-
12
Over 5 years
15
32
13
31
Total
350
207
335
191
18. Arrears and outlays
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Arrears before impairment charges
292
123
292
123
Outlays before impairment charges
65
144
65
144
Impairment charges
35
127
35
127
Total
322
140
322
140
46
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
19. Loans etc.
Credit exposure – gross carrying amount (i.e. before impairments)
Realkredit Danmark Group
Mortgage loans
Other loans
Loan commitments
(DKK millions)
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Total
Gross carrying amount at
1 January 2025
723,836
24,427
8,017
3,601
14
227
16,924
204
68
777,318
Transferred to stage 1
6,304
-5,911
-393
-
-
-
33
-33
-
-
Transferred to stage 2
-8,815
9,319
-504
-
-
-
-1
1
-
-
Transferred to stage 3
-1,174
-761
1,935
-
-1
1
-
-
-
-
New assets
95,730
2,368
341
2
2
41
22,846
467
61
121,858
Assets derecognised
(other than written off)
83,541
5,874
2,014
2,619
1
203
15,314
526
107
110,199
Other
-23,191
3,089
-121
48
13
187
3,447
356
39
-16,133
Gross carrying amount at 31 December 2025
709,149
26,657
7,261
1,032
27
253
27,935
469
61
772,844
Mortgage loans
Other loans
Loan commitments
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Total
Gross carrying amount at
1 January 2024
723,836
24,427
8,017
3,601
14
227
16,924
204
68
777,318
Transferred to stage 1
5,607
-5,101
-506
-
-
-
-
-
-
-
Transferred to stage 2
-11,031
11,932
-901
-
-
-
-103
103
-
-
Transferred to stage 3
-1,735
-932
2,667
-
-1
1
-
-
-
-
New assets
81,881
2,377
412
3,284
1
65
15,978
275
107
104,380
Assets derecognised
(other than written off)
69,866
3,959
1,409
2
1
36
11,205
203
68
86,749
Other
-6,814
-361
-165
-11
-1
21
1,393
181
-
-5,757
Gross carrying amount at 31 December 2024
721,878
28,383
8,115
6,872
12
278
22,987
560
107
789,192
The nominal value of loans written off in 2025 and for which Realkredit Danmark has maintained the claim amounts to DKK 60 million (2024: DKK 74 million).
47
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
19. Loans etc. continued
Reconciliation of total allowance account
Realkredit Danmark Group
Mortgage loans
Other loans
Loan commitments
(DKK millions)
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Total
ECL at 1 January 2025 incl. impact on loans
948
857
1,032
18
15
18
60
5
15
2,968
Transferred to stage 1
414
-276
-138
3
-2
-1
-
-
-
-
Transferred to stage 2
-45
79
-34
-
-
-
-
-
-
-
Transferred to stage 3
-8
-27
35
-
-
-
-
-
-
-
ECL on new assets
137
113
28
1
1
-
-
-
-
280
ECL on assets derecognised
401
19
85
2
-
-
41
2
7
557
Impact of remeasurement
-253
105
149
-16
-9
-11
-
-
-
-35
Write-offs, allowance account
1
-1
35
-
-
-
-
-
-
35
ECL allowance account as at 31 December 2025
791
833
952
4
5
6
19
3
8
2,621
Mortgage loans
Other loans
Loan commitments
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Stage 1
Stage 2
Stage 3
Total
ECL at 1 January 2024 incl. impact on loans
1,047
638
971
23
15
22
12
2
8
2,738
Transferred to stage 1
338
-215
-123
6
-4
-2
-
-
-
-
Transferred to stage 2
-100
140
-40
-2
3
-1
-
-
-
-
Transferred to stage 3
-11
-26
37
-
-
-
-
-
-
-
ECL on new assets
142
157
29
3
3
1
48
3
7
393
ECL on assets derecognised
320
34
35
6
1
1
-
-
-
397
Impact of remeasurement
-138
197
245
-6
-1
-
-
-
-
297
Write-offs, allowance account
10
-
52
-
-
1
-
-
-
63
ECL allowance account as at 31 December 2024
948
857
1,032
18
15
18
60
5
15
2,968
Other loans comprise the balance sheet items “Due from credit institutions and central banks”, “Loans and other amounts due at amortised cost” and “Other assets”. These loans are valued at amortised cost. For Realkredit Danmark A/S, the credit exposure and total
impairments correspond to the calculation for the Group with the sole difference that loans in the amount of DKK 15 million in home are excluded (recognised in other loans in the tables) (2024: DKK 16 million).
48
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
20. Deferred tax assets and liabilities
Change in deferred tax – Realkredit A/S
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Deferred tax liabilities
60
49
-
-
Provision for deferred tax
-
-
66
54
Total
60
49
66
54
Change in deferred tax – Realkredit Group
Recognised in
Recognised in
net profit for
other compre-
Other
(DKK millions)
1 January
the year
hensive income
adjustments
31 December
2025
Intangible assets
-
-
-
-
-
Tangible assets
-2
-
-
-
-2
Securities
-1
-
-
-
-1
Provisions
55
10
2
-
67
Other
-3
-1
-
-
-4
Total
49
9
2
-
60
Adjustment of prior-year tax charges included in total
-1
2024
Intangible assets
-
-
-
-
-
Tangible assets
-2
-
-
-
-2
Securities
-1
-
-
-
-1
Provisions
514
-409
-2
-48
55
Other
-52
1
-
48
-3
Total
459
-408
-2
-
49
Adjustment of prior-year tax charges included in total
-241
Recognised in
Recognised in
net profit for
other compre-
Other
(DKK millions)
1 January
the year
hensive income
adjustments
31 December
2025
Intangible assets
-
-
-
-
-
Tangible assets
-1
-
-
-
-1
Securities
-1
-
-
-
-1
Provisions
56
10
2
-
68
Other
-
-
-
-
-
Total
54
10
2
-
66
Adjustment of prior-year tax charges included in total
-1
2024
Intangible assets
-
-
-
-
-
Tangible assets
-1
-
-
-
-1
Securities
-1
-
-
-
-1
Provisions
515
-409
-2
-48
56
Other
-48
-
-
48
-
Total
465
-409
-2
-
54
Adjustment of prior-year tax charges included in total
-242
21. Assets temporarily taken over
Assets temporarily taken over consist of properties taken over in a forced sale under non-performing loan agreements.
The properties are expected to be sold through a real-estate agent within one year from the takeover date.
In 2025, the Group took over properties for DKK 8 million (2024: DKK 13 million). The effect on profit or loss on properties taken over
was DKK 0 million (2024: DKK 0 million).
49
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
22. Other assets
24. Issued mortgage bonds at fair value
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Interest due
415
496
415
496
Pension assets
114
110
114
110
Lease assets
36
72
-
-
Other assets
709
497
667
457
Total
1,274
1,175
1,196
1,063
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Issued mortgage bonds, nominal value*
881,628
877,251
881,628
877,251
Fair value adjustment
-42,511
-37,807
-42,511
-37,807
Issued mortgage bonds at fair value, before set-off
839,117
839,444
839,117
839,444
Set-off of own mortgage bonds at fair value
87,365
77,319
87,365
77,319
Issued mortgage bonds at fair value
751,752
762,125
751,752
762,125
The fair value is based on quoted prices.
0-1 month
89,229
72,726
89,229
72,726
1-3 months
-
-
-
-
3-12 months
83,205
65,910
83,205
65,910
1-5 years
354,987
371,322
354,987
371,322
5-10 years
76,248
84,644
76,248
84,644
Over 10 years
148,083
167,523
148,083
167,523
Total
751,752
762,125
751,752
762,125
* Portion pre-issued
63,592
56,271
63,592
56,271
* Portion drawn at 2 January 2026, or 2 January 2025
89,223
73,007
89,223
73,007
*In 2025, Realkredit Danmark issued bonds under the green bond framework, with a nominal value of DKK 34,824 million outstand-
ing at the end of 2025 (2024: DKK 29,126 million).
Fair value adjustment for the credit risk on issued mortgage bonds is calculated on the basis of the option-adjusted spread (OAS). The
calculation incorporates maturity, nominal holdings and OAS sensitivity. As a number of estimates are made, the calculation is subject
to uncertainty.
In 2025, the Danish mortgage bond yield spread decreased and the fair value of issued mortgage bonds thus increased by approxi-
mately DKK 5.6 billion. In 2024, the Danish mortgage bond yield spread increased, causing a decrease in the fair value of issued
mortgage bonds. Based on the outstanding portfolio at the end of 2025, Realkredit Danmark estimates that there has been a net de-
crease of the spread since the issuance of the bonds, which produces a negative fair value of approximately DKK 6.70 billion (2024:
positive fair value of approximately DKK 1.37 billion). Net profit and shareholders’ equity remain unaffected by the change in fair
value because the spread decrease, increase the value of mortgage loans correspondingly.
Fair value adjustment for the credit risk on issued mortgage bonds may also be calculated on the basis of changes in similar AAA
rated mortgage bonds offered by other Danish issuers. The market for such bonds is characterised by an absence of measurable price
differences between bonds with similar features from different issuers. Using this method, no fair value adjustment for credit risk in
2025 or the period since the issue has been required.
23. Due to credit institutions and central banks
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
On demand
-
-
-
-
3 months or less
-
-
-
-
3-12 months
-
-
-
-
1-5 years
3,500
3,500
3,500
3,500
Total
3,500
3,500
3,500
3,500
At fair value
3,500
3,500
3,500
3,500
Portion attributable to repo transactions
-
-
-
-
In 2025, repo transactions of DKK 14,456 million were offset against reverse transactions (2024: DKK 3,121 million).
50
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
27. Risk exposure amount (REA)
25. Other liabilities
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Interest accrued
5,936
6,386
5,936
6,386
Reserves in early series subject to a reimbursement obligation*
2
2
-
-
Lease liabilities
36
72
-
-
Other creditors
182
247
161
236
Total
6,156
6,707
6,097
6,622
* Recognised in the balance sheet of the parent company, Realkredit Danmark A/S, under “Provisions”.
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Credit risk (IRB approach)
151,059
129,325
150,935
129,186
Credit risk (standardised approach)
6,368
17,383
6,497
17,509
Counterparty risk
56
146
56
146
Total credit risk
157,483
146,854
157,488
146,841
Market risk
240
358
240
358
Operational risk
9,987
9,057
9,987
9,057
Total
167,710
156,269
167,715
156,256
The total capital and tier 1 capital ratios are calculated in accordance with the CRR/CRD.
rd.dk provides more details about Realkredit Danmark’s solvency need. The solvency need calculation is not covered by the statutory
audit.
26. Reserves in early series subject to a reimbursement obligation*
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Carrying amount, beginning of year
2
2
2
2
Utilised
-
-
-
-
Carrying amount, end of year
2
2
2
2
* Recognised in the balance sheet of the Realkredit Danmark Group under “Other liabilities”.
Reserves in early series subject to a reimbursement obligation relate to mortgage loan agreements under which the borrower’s share
of the series reserve fund is disbursed to the borrower on repayment of the loan in accordance with the terms and conditions applying
to the series. Until 2031, the Group’s obligations will gradually be reduced in step with individual borrower repayments. Factors that
affect the repayment pattern include changes in interest rates, cash flows, etc.
51
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
28. Assets deposited as collateral
Realkredit Danmark deposits securities as collateral in connection with repo and securities transactions undertaken on usual terms
and conditions for such agreements.
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
In connection with clearing, Realkredit Danmark has deposited the
following securities with the Danish Central Bank
Bonds at fair value
1,751
2,567
1,751
2,567
Portion issued by Realkredit Danmark
-
-
-
-
Assets sold under repo transactions
Bonds at fair value
-
-
-
-
Portion issued by Realkredit Danmark
-
-
-
-
At 31 December 2025, mortgage lending totalling DKK 740,491 million and other assets totalling DKK 4,631 million were registered
as security for issued mortgage bonds, including mortgage-covered bonds, and issued bonds at amortised cost (2024: DKK 755,539
million and DKK 5,411 million).
Pursuant to Danish mortgage credit legislation, issued mortgage bonds, including mortgage-covered bonds, are secured against the
underlying mortgage loans.
29. Contingent liabilities
Owing to its size and business volume, Realkredit Danmark Group is continually a party to various disputes. The Group does not ex-
pect the outcomes of the disputes pending to have any material effect on its financial position.
As the sponsoring employer, Realkredit Danmark is liable for the pension obligations of Kreditforeningen Danmarks Pensionsafvi-
klingskasse. The pension fund and the Group’s defined benefit plan have not accepted new members since 1971.
In connection with implementation of the EU Bank Recovery and Resolution Directive, a Danish resolution fund has been established.
The resolution fund must amount to 1% of the covered deposits of all Danish credit institutions by 31 December 2025. The first con-
tribution to the fund was made at 31 December 2015. The individual institution must make contributions to the fund on the basis of
its size and risk relative to other credit institutions in Denmark. The intention is that losses should be covered by the annual contribu-
tions made by the participating credit institutions. If sufficient means are not available in the resolution fund, extraordinary contribu-
tions can be required of up to three times the latest annual contribution. Realkredit Danmark pays an annual contribution to the reso-
lution fund. The contribution to the Danish resolution fund is recognised as expenses.
The company is jointly taxed with all Danish companies in the Danske Bank Group and are jointly and severally liable for their Danish
income tax, withholding tax, etc.
Realkredit Danmark operates out of leased premises. Leases are concluded by the parent company. Realkredit Danmark pays
monthly rent to the parent company.
Guarantees and indemnities issued by the Group, irrevocable loan commitments regarding reverse mortgages and other commit-
ments not recognised in the balance sheet amount to:
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Irrevocable loan commitments
28,468
23,656
28,465
23,654
Other commitments
27
27
7
7
Total
28,495
23,683
28,472
23,661
52
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
30. Related party transactions
Transactions between related parties are concluded and settled on an arm’s length or on a cost-reimbursement basis. No unusual
transactions were made with associates and group undertakings in 2025.
Realkredit Danmark A/S made the below-mentioned major intra-group transactions with companies directly or indirectly associated
with the Group/company. Danske Bank A/S is the parent company of Realkredit Danmark A/S.
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Fees, etc. paid to Danske Bank A/S for the
arranging and guaranteeing of mortgage loans
761
744
760
744
Fees received from Danske Bank A/S for referral
of customers and for property valuation
87
81
87
81
Fees paid to Danske Bank A/S for managing
Realkredit Danmark's IT operations and development,
portfolio management and finance functions, etc.
551
633
550
632
Interest received by Realkredit Danmark A/S
on outstanding accounts with Danske Bank A/S
173
185
173
185
Interest paid by Realkredit Danmark A/S
on outstanding accounts with Danske Bank A/S
259
217
259
217
Amounts due from Danske Bank A/S
925
6,826
848
6,751
Loss guarantees from Danske Bank A/S
25,248
28,330
25,248
28,330
Other guarantees from Danske Bank A/S
14,828
10,206
14,828
10,206
Amounts due to Danske Bank A/S
3,500
3,500
3,500
3,500
Any amounts due to related parties in the form of issued bonds have not been included in the above outstanding accounts as such
bonds are bearer securities. In these cases, the Group does not know the identity of the creditors.
31. Loan etc. to management
Realkredit Danmark Group
Realkredit Danmark A/S
(DKK millions)
2025
2024
2025
2024
Mortgage loans established on an arm's length basis for
Board of Directors of Realkredit Danmark A/S
30
26
30
26
Executive Management of Realkredit Danmark A/S
7
7
7
7
Board of Directors and Executive Leadership Team of Danske Bank A/S
45
39
45
39
Average interest rate and administration margin for loans etc. to management
2.5%
2.6%
2.5%
2.6%
53
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
32. Financial instruments at fair value
33. Group holdings and undertakings
Realkredit Danmark Group
(DKK millions)
Quoted
Observable Non-observable
2025
prices
input
input
Total
Bonds at fair value
4,359
16,696
-
21,055
Mortgage loans at fair value
-
740,491
-
740,491
Shares
-
-
2
2
Derivatives
-
47
-
47
Total
4,359
757,234
2
761,595
Issued mortgage bonds at fair value
751,752
-
-
751,752
Derivatives
-
7
-
7
Total
751,752
7
-
751,759
2024
Bonds at fair value
1,138
23,229
-
24,367
Mortgage loans at fair value
-
755,539
-
755,539
Shares
-
-
2
2
Derivatives
-
22
-
22
Total
1,138
778,790
2
779,930
Issued mortgage bonds at fair value
762,125
-
-
762,125
Derivatives
-
9
-
9
Total
762,125
9
-
762,134
Fair value is the amount at which a financial asset can be traded between knowledgeable, willing parties. If an active market exists,
Realkredit Danmark uses the quoted price.
Developments in the financial markets did not lead to reclassification of bonds between listed prices and observable input in 2025.
Mortgage loans and issued mortgage bonds are recognised at the fair value of the issued mortgage bonds. In accordance with the
accounting policies, the fair value of the credit risk on the mortgage loans is adjusted.
Valuation techniques are generally used for OTC derivatives and unlisted shares. The most frequently used valuation models include
pricing of businesses with future settlement and swap models using present value calculations. The valuation is based substantially
on observable input.
Share
Net
Shareholders'
Holding of
capital
profit
equity
share capital
(DKK millions)
(DKK millions)
(DKK millions)
(%)
Realkredit Danmark A/S, Copenhagen
630
4,848
55,096
Subsidiaries
Real-estate agency business
home a/s, Aarhus
15
27
131
100
The information published is extracted from the most recent annual report of the companies
54
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
As part of the credit process, the Realkredit Danmark classifies customers according to risk and updates their classifications upon
receipt of new information. Risk classification comprises rating and credit scoring of customers. While all large customers are rated,
Realkredit Danmark uses fully automated and statistically based scoring models for small customers such as personal customers and
small businesses. Credit scores are updated monthly in a process subject to automated controls.
The customer classification models break down customers into 11 rating categories, with category 1 being the most creditworthy.
Realkredit Danmark’s definition of default for accounting aligns with the regulatory purposes and is aligned with category 11. For fur-
ther details about the credit risk management, see Danske Bank Annual Report 2025.
Portfolio broken down by customer type and rating category
(DKK billions)
2025
2024
Rating category
Personal
Business
Total
Total
1
-
3
3
3
2
60
1
61
59
3
116
57
173
179
4
92
94
186
199
5
59
94
153
150
6
21
88
109
112
7
12
24
36
36
8
2
6
8
6
9
-
1
1
-
10
5
1
6
6
11
5
2
7
8
Total
372
371
743
758
34. Risk Management
The principal risk faced by Realkredit Danmark is credit risk on mortgage loans. Realkredit Danmark only has limited exposure to mar-
ket risk due to the balance principle and the fact that Realkredit Danmark does not invest in equities. The principal market risk is in-
terest rate risk on Realkredit Danmark’s proprietary portfolio of bonds.
In recent years, Realkredit Danmark has increased its focus on non-financial risks like operational risks and risks related to financial
crime.
Total capital
The purpose of capital management is to ensure efficient use of capital in relation to risk tolerance and business development. The
Group must have sufficient capital to comply with regulatory capital requirements, and the Group has also defined a goal of maintain-
ing bond ratings from external rating agencies that are on a level with those of its peers.
The Group met this goal in 2025 by maintaining a total capital ratio of 29.7%, well above the regulatory requirement of 20.6%, and
AAA ratings from SP Global and Scope Ratings. The capital requirement has been covered by tier 1 capital.
Credit risk
Realkredit Danmark serves mortgage credit customers in Denmark, Sweden and Norway. Realkredit Danmark serves all customer
segments in Denmark, while the strategy in Sweden and Norway is to serve large business customers. Realkredit Danmark’s principal
segment is loans to the Personal customer market, which accounts for 50% of lending. Residential accounts for 28%, Urban trade for
17% and Agriculture for the remaining 5%.
In 2025, Realkredit Danmark continued its prudent credit-granting process, accommodating the Group’s existing and new cus-
tomers. Continuing this prudent credit-granting process will remain the objective in 2026. When granting credit, the Group requires
the customer to be able to service a fixed-rate loan with principal repayment. When granting a FlexLån® loan, the customer must also
be able to service a fixed-rate loan with principal repayment with an interest rate equal to a fixed rate over 30 years plus 1 percentage
point however, not less than 4%.
The credit risk on a mortgage loan basically derives from two factors; the risk that the borrower is unable to repay the loan and the
expected loss if the customer is unable to repay the loan, which largely depends on the value of the property. These two factors are
commonly designated by Probability of Default (“PD”) and Loss Given Default (“LGD”). The higher the PD and LGD, the higher risk a
loan involves. The value of the property is determined in a property valuation model. This property valuation model is regularly moni-
tored, and it is also subjected to an annual validation.
The credit process widely builds on the two above-mentioned components and the size of the loan. Most often, the Group performs a
decentralised assessment of whether a customer has the ability and the willingness to repay their loan. However, the Group handles
the largest customers at a central corporate centre, which has the expertise to serve this customer segment.
When the Group assesses that there is a high credit risk, the credit granting process will be assigned to the central credit department.
A high credit risk may arise for less financially strong customers (high PD), but it may also be due to expectations of a high LGD if the
credit involves a property type that is difficult to sell, and which may lose much of its value if it has to be sold in a forced sale. Very
large loans must be approved by Realkredit Danmark’s Executive Management or Board of Directors.
55
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
Probability of Default (PD) %
Rating category
Low PD
High PD
1
0.00
0.01
2
0.01
0.03
3
0.03
0.06
4
0.06
0.14
5
0.14
0.31
6
0.31
0.63
7
0.63
1.90
8
1.90
7.98
9
7.98
25.70
10
25.70
100.00
11
100.00
100.00
Over the past year, the average defaults probability has remained stable.
Interest rates have decreased compared to end-2024, thereby affecting the market value of the loans. The effect is countered by
increasing house prices which results in stable Loan-to-Value (LTV). For the entire loan portfolio, the LTV stood at 49 at end-2025,
compared with 53 at end-2024.
The loan portfolio remained very secure. 95% of the loan portfolio was secured within 60% of the value of the property, and 99% was
secured within 80% of the value.
Loan portfolio broken down by loan-to-value ratios 2025
Total
DKK
Sector, %
0-20
20-40
40-60
60-80
>80
billions
Personal market
182
127
52
10
1
372
Urban trade
67
43
16
2
1
129
Agriculture
18
13
6
-
-
37
Residential rental
94
57
33
13
8
205
Weighted distribution
49%
32%
14%
3%
1%
100%
Total DKK billions
361
240
107
25
10
743
56
Realkredit Danmark / Annual report 2025
Financial highlights
Overview
Financial review
Financial statements
Statement by the management
Supplementary information
Loan portfolio broken down by loan to value ratios 2024
Total
DKK
Sector, %
0-20
20-40
40-60
60-80
>80
billions
Personal market
180
134
63
13
1
391
Urban trade
63
42
17
2
-
124
Agriculture
17
14
6
-
-
37
Residential rental
85
55
36
16
14
206
Weighted distribution
46%
32%
16%
4%
2%
100%
Total DKK billions
345
245
122
31
15
758
As shown in the table, no loans with an LTV ratio higher than 80% were granted to customers in one of the four lowest categories.
Portfolio broken down by loan to value and rating category 2025
Loan to value
Total
Rating category
0-20%
20-40%
40-60%
60-80%
80-100%
DKK billions
1
1
1
1
-
-
3
2
35
19
6
1
-
61
3
90
53
21
5
4
173
4
89
57
28
8
5
187
5
74
52
22
4
1
153
6
48
39
20
6
-
113
7
16
12
6
1
-
35
8
3
2
1
-
-
6
9
-
-
-
-
-
-
10
2
2
1
-
-
5
11
3
3
1
-
-
7
Total
361
240
107
25
10
743
Portfolio broken down by loan to value and rating category 2024
Loan to value
Total
Rating category
0-20%
20-40%
40-60%
60-80%
80-100%
DKK billions
1
1
1
1
-
-
3
2
32
19
7
1
-
59
3
85
56
25
7
6
179
4
91
60
31
10
7
199
5
66
51
25
5
2
149
6
47
39
22
5
-
113
7
15
12
7
2
-
36
8
3
2
1
-
-
6
9
-
-
-
-
-
-
10
3
2
1
-
-
6
11
2
3
2
1
-
8
Total
345
245
122
31
15
758
Loan impairments contributed with reversals of DKK 258 million in 2025 (2024: charges of DKK 333 million). Loan impairment rever-
sals were affected by improved macroeconomic scenarios and a reversal of post-model adjustments of DKK 243 million as the posi-
tive effects of lower inflation and interest rates continued to materialise. The underlying credit quality remained strong.
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Realkredit Danmark / Annual report 2025