KommuneKredit announces satisfactory 2024 result

KommuneKredit looks back on a satisfactory 2024, where the expansion of the district heating system across the nation has had a significant impact on the net lending of DKK 6.2 billion. 2024 was also the year when KommuneKredit celebrated its 125th anniversary, marking a business model that has proven resilient since the issuance of the first loan in 1899.

A loan for the new Borgring Viking Castle Museum, offering a magnificent view over Harald Bluetooth's Viking landscape. A leasing agreement for a new healthcare centre in Odder, ensuring faster and more integrated healthcare services close to citizens’ daily lives. A green loan for energy renovations in the Municipality of Halsnæs, aimed at reducing energy costs, improving indoor climate and future-proofing buildings to meet tomorrow’s standards. These are just some examples of the financing KommuneKredit has provided to Danish local communities in 2024 – and a reflection of the value the association has created over the past 125 years.

The financial development in 2024 was satisfactory, with profit before tax and value adjustments coming to DKK 523 million. An increase of DKK 259 million compared to 2023, mainly attributable to the higher net interest income. The association’s net lending, i.e. new lending including leases less repayments and redemptions, amounted to DKK 6.2 billion.

Outlook for 2025

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

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

Summary

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