Financial Performance - Realkredit Danmark reported a net profit of DKK 2,455 million for the first half of 2025, an increase from DKK 2,129 million in the same period of 2024, primarily driven by a net reversal of loan impairment charges and lower expenses [5][6][9] - Total expenses decreased to DKK 425 million in H1 2025 from DKK 511 million in H1 2024, attributed to the discontinuation of payments to the fully funded Resolution Fund and reductions in operating expenses [6][9] Loan and Credit Quality - The underlying credit quality remained strong, with loan impairment charges reflecting a net reversal of DKK 129 million in H1 2025, compared to a charge of DKK 227 million in H1 2024 [9] - The average loan-to-value ratio decreased to 50% at the end of June 2025 from 53% at the end of 2024, supported by stable market values and increasing house prices [9] Market Outlook and Initiatives - The outlook for the housing market in Denmark is positive, bolstered by strong macroeconomic indicators and lower inflation, with a notable increase in commercial lending activity [5][6] - Realkredit Danmark and Danske Bank launched initiatives in home finance, including the Danske BoligStart concept aimed at young home finance customers, and removed additional margins on new loans with interest-only periods for lower loan-to-value ratios [2][3] - The company is enhancing digital solutions, including a new housing universe in Danske Mobile Banking, to provide customers with better access to home finance information and services [4][9] Green Financing - There has been a consistent increase in demand for green financing, with total lending across green loan types reaching DKK 30 billion by the end of H1 2025 [9] - The company expanded the purposes for loans for energy improvements, allowing personal customers to borrow at favorable rates for installing battery solutions for surplus electricity [9]