Danish government bonds and Danish covered bonds contributed significantly to overall results by Nykredit Asset Management over the past year, according to the annual report published by Nykredit, one of Denmark’s largest lending institutions.
The AM business reported that 84.6% of its investment strategies (GIPS composites) “generated above-benchmark returns in 2017, and 91.7% generated above-benchmark returns over the past three years.”
The business unit also was a critical element in the growth of Nykredit’s private banking business. This brought together Private Banking Elite, Nykredit Markets and Nykredit AM.
“Nykredit’s strong value propositions won as many as three international awards this year – recently Nykredit won Euromoney‘s Best Private Banking survey, and The Banker proclaimed Nykredit winner of the award “Best Private Banking in Denmark 2017,” the annual report notes.
The wealth management business line income was up DKK218m to DKK1,402m (€188m) compared against the year before, which the banking group said “stems from activities carried out by the Group entities Nykredit Markets, Nykredit Asset Management and Nykredit Portefølje Administration A/S.”
Pre-tax profit from the wealth management business was DKK384m, which made up part of the group pre-tax profit reported as DKK4,033m (€541m).
Looking ahead, the group said the key risk to its business was uncertainty around interest rates and loan impairments.
Click here to read the full annual report: https://www.nykredit.com/siteassets/ir/files/financial-reporting/financial-reports/nykredit-bank/nykredit_bank_q4_17_2018-02-08_en.pdf