The Nykredit Group to receive DKK 2.4bn from Forenet Kredit
OREANDA-NEWS. The Committee of Representatives of Forenet Kredit has decided to make a total capital contribution of DKK 2.4bn to the companies of the Nykredit Group. Totalkredit A/S will receive DKK 1.7bn and Nykredit Realkredit A/S DKK 0.7bn to be paid out in 2018 and 2019.
In Totalkredit A/S, the contribution of DKK 1.7bn will go towards the customer benefits programme, KundeKroner. This contribution will secure the funding of discounts to personal and business customers, having a mortgage loan with Totalkredit, corresponding to an annual discount of DKK 1,500 on their administration margin payments in 2018 and 2019 for each million kroner borrowed.
The contribution of DKK 0.7bn for Nykredit Realkredit A/S is expected to be used to expand Nykredit's customer programmes, offering more benefits primarily for business and homeowner customers. This amount will secure the funding of discounts to business customers of Nykredit Realkredit A/S, corresponding to an annual discount of DKK 1,500 on their administration margin payments in 2018 and 2019 for each million kroner borrowed. Business customer discounts will be introduced as from 1 July 2018. The remainder of the contribution is expected to be earmarked for expanding the customer programmes of Nykredit Bank A/S.
Michael Rasmussen, Group Chief Executive:
"The Nykredit Group is owned by an association of customers, and this should be felt. Together with our majority shareholder, Forenet Kredit, we want to share our progress with customers, so when Nykredit performs well, our customers share in the success. This is why I am pleased that the Committee of Representatives of Forenet Kredit has decided to make a DKK 2.4bn capital contribution to us, which we will turn into cash benefits for our customers."
"Including the customer discount, Totalkredit homeowners are currently offered the lowest administration margin in the market on our main products in case of full mortgaging, including fixed-rate repayment loans, which is our most popular product."