About BRFkredit

	Ownership
	Management, directors and auditors
	Financial highlights and key figures
	Lending
	Funding
	Market share
	History

BRFkredit a/s is fully owned by BRFfonden, an independent business foundation, through the holding company BRFholding a/s.

Read the articles of association of BRFkredit a/s

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Management:

Sven A. Blomberg, CEO
Carsten Tirsbæk Madsen, Executive Vice President

Board of directors:
Oluf Engell, Chairman
Kurt Bligaard Pedersen, Deputy Chairman
Troels Behr
Kristian May
Lars Henrik Munch
Aksel Nissen
Laila Busted, elected by staff
Jan Frederiksen, elected by staff
Thomas Sandelius, elected by staff

Auditor:
PriceWaterhouseCoopers

The Danish Mortgage Loans and Mortgage Bonds Act and the Danish Financial Services Act regulate the business of BRFkredit, and BRFkredit is supervised by the Danish Financial Supervisory Authority, an institution under the Danish Ministry of Economic and Business Affairs.

More on legal information and related documents

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BRFkredit Group

Financial highlights DKK million	2009	2008	2007	2006	2005
Profit and loss account
Core earnings from lending operations	1,286	1,122	1,050	923	926
Core earnings from securities	524	488	482	380	350
Total core earnings	1,810	1,610	1,532	1,303	1,276
Operating expenses, depreciation and amortisation	910	917	852	810	744
Core earnings before writeoffs	899	693	680	493	531
Losses and writeoffs on loans	2,125	647	56	-129	-81
Costs re. hybrid core capital	31	-	-	-	-
Core earnings	-1,257	46	624	622	613
Earnings from investment portfolios	398	-621	106	119	152
Profit on ordinary operations before tax	-858	-575	730	741	765
Tax	-237	-75	142	170	107
Profit on ordinary operations after tax	-621	-500	588	572	657
Balance sheet at year end
Loan portfolio	221,026	213,909	192,834	178,498	164,011
Shareholders' equity	9,730	10,390	11,047	10,374	9,710
Total assets	246,829	233,838	214,946	201,399	208,015

Key figures and ratios	2009	2008	2007	2006	2005
At year end
Core capital (tier 1), DKKm	11,386	10,151	10,907	10,290	9,701
Supplementary capital (tier 2), DKKm	0	0	1,494	1,493	1,492
Own funds (tier 1+2), DKKm	11,155	10,085	12,532	11,858	11,193
Capital adequacy ratio, %	13.0	12.3	12.6	12.5	13.3
Core capital ratio, %	13.3	12.3	10.9	10.8	11.5

Accounts and reports archive

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Since 1993, BRFkredit's lending focus has been directed at private owner-occupied homes, private rental housing, non-profit housing and office and business properties.

The chart below shows the composition of mortgage loans in BRFkredit as of end-2009.



BRFkredit's lending is based on an appraisal of the long term value of the property. The appraisal primarily takes into account factors like marketability, location and expected movements in the price of the property concerned.

Based on the long term value of the property, BRFkredit grants loans within the maximum lending limit provided for in the Danish Mortgage Loans and Mortgage Bonds Act..

Read more about the Danish mortgage credit system in general

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BRFkredit finances the current lending by issuing covered bonds and mortgage bonds continuously, i.e. as tap issues.

It is the borrower's choice of loan type that determines the type of bonds that BRFkredit issues as the Danish Mortgage Loans and Mortgage Bonds Act requires a very close link between the loans granted and the bonds issued.

The bonds are bearer bonds issued in book-entry form registered at VP Securities Services (Værdipapircentralen, the Danish Securities Depository and Clearing Centre) or VP Lux VP in Luxembourg). The bonds are listed for trading on NASDAQ OMX Copenhagen (f.k.a. Copenhagen Stock Exchange).

BRFkredit issues bonds in a range of maturities and with a range of coupons:

• Fixed coupon bullet bonds (non-callable) with maturities from one to ten years with annual coupon payment
• Fixed coupon annuity bonds (callable) with maturities of 10, 15, 20 and 30 years with quarterly repayment
• Floating-to-fixed floating rate annuity bonds with a maturity of 30 years and quarterly payments. The bonds are initially carrying a floating interest rate and have an embedded interest rate cap. If the floating rate rises to a guaranteed maximum rate (knock-in interest rate) the bonds change into fixed rate
• Capped floating rate annuity bonds with a maturity of 30 years and quarterly payments. The bonds carry a floating interest rate and have an embedded interest rate cap. The bonds continue to carry floating interest rate even if the interest rate at a previous fixing has been capped at the cap rate (i.e. "capped floaters")
• Ratched capped floating rate annuity bonds with a maturity of 30 years and quarterly payments. The bonds carry a floating interest rate which can not exceed previous set coupons on the bond.

Identical, but separate bond series are issued to where the borrowers have an option of paying interest-only for up to 10 years.

The bullet bonds finance ARM loans (adjustable rate mortgage loans). The bullet bonds are non-callable and are often referred to as RTL-bonds. ARM loans are typically 30 year annuity loans with annual adjustment of the coupon. Such loans are funded by the issuance of one year bullet bonds that are replaced (refinanced) on their maturity date by new one year bullet bonds until the loan is repaid. Refinancing is traditionally performed in December either by sales of new bonds on auctions or by regular sales of new bonds. In 2010 BRFkredit has introduced refinancing on other dates during the year.

Annuity bonds finance fixed coupon mortgage loans with an option for the debtor to make an early redemption (call option or prepayment option). Fixed coupon mortgage loans are typically 30 year loans.

Floating rate bonds are issued to fund Garantilån (mortgage loans with capped floating interest rate) and Rentefaldslån (mortgage loans with ratched capped floating interest rate).

Bonds used for current issuing are called open bonds. These BRFkredit mortgage bonds are rated Aa1 by Moody's Investors Service. Since 11 Sept. 2009 the rating of the bonds has been on review for possible downgrade.

	Table of open bonds (current issues)
	Learn more about the rating of BRFkredit's mortgage bonds

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BRFkredit has a market share of the total Danish mortgage market of 9-11%.

BRFkredit's market share Percent total	2009	2008	2007	2006	2005
Outstanding bonds	9.8	9.9	9.9	9.6	9.4
Gross new lending 1)	8.5	9.3	9.3	9.6	9.1
Net new lending 2)	7.3	11.2	10.7	10.3	9.7
1) Gross new lending indicates the mortgage principal translated into cash value, i.e. all types of loans are included at market price of the mortgage principal at the date of issuance
2) Net new lending equals gross new lending less refinanced loans and prepayments

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BRFkredit was established in 1959 as an independent business foundation authorised to grant third-mortgage loans under the name "Byggeriets Realkreditfond", abbreviated BRF. The original purpose was for BRF to grant mortgage loans for specific purposes.

In 1970, the Danish Mortgage Credit Act was amended. The system with three layers of mortgage financing was abandoned, and BRFkredit was allowed to grant mortgage loans in general. The amendments led to a series of mergers between Danish mortgage credit institutions and in 1975, the first Danish mortgage credit institution "Husejernes Kreditkasse" merged with Byggeriets Realkreditfond.

In 1990, Byggeriets Realkreditfond changed its legal structure, and the business was transferred from the foundation to a new company named BRFkredit a/s. The business foundation changed its name from Byggeriets Realkreditfond to BRFfonden.

Learn more about the history of the Danish Mortgage Credit legislation

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