Nykredit, which calls itself Denmark's largest lender, raised its guidance for profit after tax in results published on 4 November, reporting a profit after tax of DKK 9,025 million for the first nine months of 2026, down from DKK 9,393 million in the same period of 2025.
Michael Rasmussen, the Group Chief Executive, said in his comments on the results that the group was upgrading its guidance for profit after tax from DKK 11.00-11.75 to DKK 11.25-12.00. He pointed to positive momentum, customer growth, increased lending and growing market shares across most of its business areas.
INCOME RISES, COSTS FOLLOW
Net interest and fee income rose to DKK 14,377 million from DKK 12,721 million a year earlier, and wealth management income increased to DKK 2,781 million from DKK 2,235 million. Costs climbed to DKK 7,568 million from DKK 6,816 million.
The group said the two periods are not comparable: Spar Nord was included in its accounts only from June onwards in 2025, but for the full nine months of 2026. Profit before impairment charges and legacy derivatives was DKK 11,219 million, against DKK 11,723 million a year earlier, when the figure included a one-off gain of DKK 1,352 million from the value adjustment of Spar Nord Bank shares.
Losses and arrears remain low, the bank said, and it recorded a reversal of loan impairments of DKK 57 million over the nine months, while its common equity tier 1 (CET1) capital ratio stood at 17.2%.
THREE DOMINANT GROUPS
Denmark's financial system combines a concentrated banking sector with one of the world's largest mortgage-bond markets. Danske Bank, Nykredit and Jyske Bank are the dominant groups, and the five largest credit institutions held 65.2% of sector assets in 2025, according to the TGB market profile.
Consolidation has continued: Sydbank, Arbejdernes Landsbank and Vestjysk Bank formed AL Sydbank in the fourth quarter of 2025, and Nykredit merged Spar Nord into Nykredit Bank in April 2026.
Totalkredit continued to see lending and customer growth, supported by its partner banks: total lending reached DKK 1,000 billion in the third quarter, and profit after tax rose 6.7% to DKK 2,536 million in the nine months. Prices on Totalkredit loans were cut three times. Sparinvest's assets under management grew by almost DKK 60 billion in the first nine months, and total assets under management stand at DKK 337 billion, an all-time high.
TARGETS FOR 2027
The cost/income ratio was 40.3% for the nine months, including one-off effects from Spar Nord, and the group delivered a return of 10.3%. From 2027, after the integration, the group's targets are a cost/income ratio below 40% and an annual return after tax of 10% of shareholders' equity over an economic cycle. Nykredit also said it aims to acquire full ownership of BEC.
THE TGB VIEW
Nykredit ranks 36th in the TGB Bank Rankings for Europe, with US$315.8bn of total assets and a 10.4% return on equity in 2025, behind Danske Bank in 24th place with US$590.9bn and 12.7%. Its CET1 ratio of 17.2% is higher than the 15.7% that Jyske Bank, one of Denmark's three dominant groups, reported at the end of the third quarter. The figure to watch is the cost/income ratio: at 40.3%, including one-off effects relating to Spar Nord, it is just above the target of below 40% that applies from 2027.
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