Company Performance - The financial performance for the first quarter of 2025 was satisfactory, with a net profit of DKK 1,249 million, an increase from DKK 1,005 million in Q1 2024, primarily driven by a net reversal of loan impairment charges [8][10][12] - The loan-to-value ratio fell to 51%, indicating strong credit quality of the loan portfolio [1] - Expenses decreased to DKK 223 million from DKK 278 million in Q1 2024, partly due to the final year of contributions to the Danish resolution fund [9] Market Conditions - Despite geopolitical and economic uncertainty, the Danish economy remains robust, with a decline in consumer confidence but supported by rising real income and a favorable labor market [2][15] - The housing market started well in 2025, with continued growth in activity and rising prices expected throughout the year [2] - The commercial real estate market showed steady expansion, with improved alignment of buyer and seller interests due to adjusted required rates of return reflecting higher interest rates [3][16] Lending and Financial Initiatives - Mortgage lending increased by DKK 1.1 billion in Q1 2025, with gross lending amounting to DKK 27.1 billion compared to DKK 23.2 billion in Q1 2024 [11] - The company has removed the additional margin on interest-only periods for new loans with a loan-to-value ratio below 60%, promoting a holistic view of personal finances [5] - There is significant potential for energy efficiency improvements in the Danish housing market, with around 10% of homeowners planning to enhance energy efficiency in the coming year [6][7] Climate Initiatives - Growing awareness among homeowners regarding climate change has led to new initiatives by Danske Bank to support homeowners in adapting their properties to climate effects, including fee-free loans [7] - In the commercial real estate sector, there is increasing momentum for energy efficiency improvements, with property owners actively addressing climate-related risks [8]