AUM growth slowed in Q2 at Denmark's second-largest asset manager

Nykredit Wealth Management saw a lower AUM increase in the second quarter due to a decline in both net sales and returns. The administration business saw a 9.9 percent increase in assets under administration in Q2.

Nykredit's headquarter in Copenhagen. | Photo: Martin Lehmann

Assets under management at Denmark's largest mortgage banking group rose by 3.1 percent – or with DKK 12.1bn (EUR 1.6bn) to DKK 405.8 (EUR 54.5) bn in the second quarter. This means that AUM growth has slowed down compared to the first quarter, which saw an increase of 5.9 percent. 

Upon releasing its Q2 report Thursday morning, Nykredit informs that net sales in the first half of 2021 amounted to DKK 20.2bn, and adjusted for net sales of DKK 14.7bn in Q1, this equals a net sales of DKK 5.5bn in Q2. Using the same method, the returns in Q2 landed at DKK 6.5bn, which is a tad less than the DKK 7.3bn in Q1.

Assets under administration

Nykredit also has an asset administration business, and here assets increased by 9.9 percent or DKK 98.7bn in the second quarter, up from a rise of 4.7 percent in the first quarter.

According to Nykredit, the increase of assets under administration in the first half of 2021, was "driven by demand from institutional clients and the Group's savings products, as well as positive returns".

The Wealth Management business delivered profit of DKK 194m in Q2, down from DKK 209m in the first quarter. Income in the second quarter was DKK 422m, also a little lower than DKK 426m in Q1.

According to Nykredit, the lower result is "primarily due to reduced trading, investment portfolio and other income".

In the first half of the year, Wealth Management contributed to 9 percent of total group profit of DKK 5.0bn, down from contributing to 10 percent in Q1.  

In Nykredit's outlook and guidance for the rest of the year, the mortgage lender mentions Wealth Management as one of the business areas to contribute to a slightly higher group income than in 2020 due to an expectation of "higher customer sales".

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