Global Credit Research: Danish Covered Bonds – A Primer pptx

EUROPEAN AND DANISH COVERED BOND MARKET European covered bond market by outstanding volume – 2007 Danish covered bond market by issuer Nykredit Group 42.3% Danske Bank Group 30.2% Nord

Sector Report August 6, 2008 Covered Bonds

Danish Covered Bonds – A Primer

● In the first part of this Sector Report, we provide an overview of the

Danish economy including the housing market Furthermore, we focus

on the Danish covered bond market where various regulation changes

have taken place In addition, we highlight the inherent security

mechanisms, bond types and give a short investment example In the

second part, we introduce the five largest issuers in the Danish covered

bond market

● The creation of the Danish covered bond market dates back more than

200 years as it was established after the great fire in Copenhagen in

1795 to finance the large reconstruction costs In the long tradition of

Danish covered bonds a default or loss has never occurred At

year-end 2007, the outstanding volume of Danish covered bonds amounted

to EUR 345 bn The Danish market is the second largest market after

the German covered bond market, as well as the second eldest The

reason for the gap between Germany and Denmark is the

non-existence of public sector covered bonds in Denmark, which make up

the largest part in the German market In terms of mortgage covered

bonds, the Danish market is by far the largest, ahead of the Spanish

and the German market

● Currently, the Danish economy shows signs of weakness, which could

be further intensified by subprime effects after years of high GDP

growth rates, strongly increasing house prices and a low unemployment

rate Since 2007, house prices have declined significantly and led, in

combination with the overall weakening economy, to negative GDP

growth rates in Q4 2007 and Q1 2008

● Roskilde Bank, a Danish regional bank, became the second casualty in

Denmark after Bank Trelleborg, which was affected by large-scale

write-downs In order to safeguard the reliability of the Danish banking

market, the Danish National Bank provided a liquidity guarantee of DKK

750 mn to Roskilde Bank Furthermore, Roskilde might also be sold in

the near future (as happened to Bank Trelleborg) This action affirmed

the systemic support within the Danish banking system

● As a consequence of the amended covered bond regulation, which now

also allows commercial banks to issue covered bonds, large issuers

have established new covered bond programs, e.g Danske Bank The

similarity of Danish covered bonds to the European standard should

provide a solid investment basis also for non-Danish accounts Besides

these new Jumbo-style covered bonds, there is also a large number of

traditional Danish covered bonds Moreover, compared to other

covered bond jurisdictions, the Danish law stipulates different

regulations, e.g "Junior covered bonds" or the specific calculation of

overcollateralization for mortgage bank issuer

● With respect to Basel II, the newly launched covered bond types are

UCITS and CRD compliant, which qualifies them for a preferential

treatment with respect to regulatory capital and investment limits

Contents

Kingdom of Denmark 2 Danish housing market 5 Structure of the banking market 6 Regulatory environment 7 The Danish Covered Bond Market _ 8 Overview _ 8 Amended Danish covered bond legislation _ 9 Security mechanisms of Danish covered bonds13 Overview of the Danish covered bond market 16 Types of Danish covered bonds _ 17 Fixed rate callable Danish covered bonds _ 19 Investment in a Danish Jumbo-style covered bond 20 Outlook on the Danish covered bond market 21 Covered Bond Issuer Profiles 22 Nykredit Realkredit A/S _ 22 Realkredit Danmark A/S 31 Danske Bank A/S _ 35 Nordea Kredit Realkreditaktieselskab A/S _ 44 BRFkredit A/S 54 Appendix: Eligibility criteria for cover pool assets 61

Authors

Christian Meidinger (HVB) +49 89 378-12004 christian.meidinger@unicreditgroup.de Ivanka Stefanova (HVB)

+49 89 378-14247 ivanka.stefanova@unicreditgroup.de

Bloomberg

UCCR

Internet

www.globalresearch.unicreditmib.eu

Kingdom of Denmark Among EU members, Denmark

has the highest employment

quota

Kongeriget Danmark or Kingdom of Denmark is a parliamentary representative democratic monarchy and is located between the Scandinavian peninsula and Central Europe; it has a size of 43,094 sqm One-third of its land area is comprised of 443 islands The capital Copenhagen is both the economic center and the biggest Danish city with more than 500,000 inhabitants Greater Copenhagen comprises 1.4 mn inhabitants, accounting for 25% of theapproximately 5.5 mn citizens of Denmark Since 1973, the country has been member of the European Union (EU) respectively the European Economic Community (EEC), however, it isnot yet a member of the European economic and monetary union This means that thecurrency is still the Danish krone Denmark's employment quota is the highest within the EU, but compared to Germany, the share of public employees is twice as high This results in an extremely high social contribution ratio and taxes, e.g 25% VAT All in all, the country has one

of the highest standards of living and a sound competitive ability

Strong fiscal discipline in the

last few years In Denmark, fiscal discipline is strong and also a major commitment of policymakers The

budgetary surplus is expected to be above 2% of GDP p.a in the medium term However, in the long term, we expect a negative impact on the budgetary performance Reasons are the recently announced tax cuts and initiatives to improve the quality of public services, whichgoes hand in hand with a stabilizing trend of public revenues

GDP GROWTH RATE

-2 -1 0 1 2 3 4 5

Q1 2005

Q2 2005

Q3 2005

Q4 2005

Q1 2006

Q2 2006

Q3 2006

Q4 2006

Q1 2007

Q2 2007

Q3 2007

Q4 2007

Q1 2008

GDP growth rate y-o-y GDP growth rate q-o-q

Source: Eurostat, UniCredit Global Research

Challenging economic

environment for Denmark Until 2007, macroeconomic figures in Denmark looked sound In 2007, income per capita was

USD 57,300 and significantly above the average for all AAA-rated countries by S&P (USD 45,600) The income level reflects the competitiveness of the Danish economy, the superiorproductivity levels of the workforce, and high labor participation by European standards In

2007, the real GDP growth rate was 1.8%, a significant decline compared to 3.5% and 3.1% in

2006 and 2005, respectively This downward trend was further intensified in the last fewmonths As of Q2 2008, Denmark's economy had contracted for two consecutive quarters.The economy decline 0.6% after contracting a revised 0.2% in Q4 2007, according toStatistics Denmark Growth is slowing worldwide as the credit crunch sends borrowing costs higher and curbs investment, while record oil prices and soaring food costs erode consumerspending power Danish consumer prices are rising at the fastest pace in 18 years whileproperty values fall, undermining household spending which accounts for half the USD 340 bn economy

Unemployment rate at a 35-year

low Unemployment is at a 35-year low In fact, the current level of unemployment is below the

long-term structural level, indicating that there is no possibility to increase employment furtherwithout changes in the legislative framework of the labor market Hence, unemployment is expected to increase slightly in 2009 But scarcity of skilled labor will continue to dampeneconomic growth, even as unemployment increases

KINGDOM OF DENMARK - ECONOMIC DATA

Low inflation rate Since the beginning of 2008, the inflation rate has increased significantly to 3.8% in

June 2008 due to continuing high commodity prices, e.g the oil price skyrocketed to an all-time high in June In contrast, until year-end 2007, the low inflation rate of Denmark was

a result of the far-sighted fiscal policy In 2007, the inflation rate was 1.7% and slightly below the prior year (1.9%) Denmark's already stable currency, which is pegged to the euro, also benefited from this policy Long- and short-term interest-rate differentials with the eurozonehave all but disappeared Denmark's external performance is relatively strong and currentaccount surpluses are accompanied by a small net external liability position

03 Ju 3

Ja

n-04

Jul-04Jan-05Ju

5 Jan-

06 Ju 6

Ja

n-07

Jul-07Jan-08Ju 8

7 7.2 7.4 7.6 7.8 8

02 Jan- 03 Jul- 03 Jan- 04 Jul- 04 Jan- 05 Jul- 05 Jan- 06 Jul- 06 Jan- 07 Jul- 07 Jan- 08 Jul- 08

Source: Bloomberg, Statistics Denmark, UniCredit Global Research

EUR-DKK exchange rate is

stable One reason for the relatively low share of foreign investors in the Danish covered bond market

is the denomination in Danish krone However, the EUR-DKK exchange rate showed asustainable development in the last few years, which we also expect to be the case in the next few years This is a result of pegging the DKK to the EUR at DKK 7.46 with a fluctuation band

of +/- 2.25% Therefore, the currency risk is low and easy to manage

Significantly reduced debt

efforts, policy makers were able to reduce debt levels to approximately 25% of GDP as ofyear-end 2007 Furthermore, the sustained decline in the public debt burden, coupled with a

robust pension system and efforts to boost labor-market participation, is expected to provide sufficient fiscal flexibility to meet the challenge of an aging population

Limited fiscal flexibility Denmark has a very limited fiscal flexibility, as can be seen by the share of government

revenues in GDP and high general government expenditure Therefore, S&P expects a further declining general government balance in % of GDP to 2.5% in 2010 compared to 4.7% in

2006 The reason for this is Denmark's generous welfare system Despite high tax rates, Denmark has very low revenue flexibility among European countries

KINGDOM OF DENMARK - FISCAL INDICATORS

Less vulnerable to

subprime-related squeeze With respect to the subprime crisis, Danish mortgage banks have been less vulnerable

compared to global mortgage lenders Danish mortgage credit institutions have a balanced funding mix They fund large amounts with covered bonds, which are backed by high-quality collateral In addition, the issuers benefit from a strong domestic bid

Domestic investors dominate

the market The institutions that are invested in the Danish covered bond market are largely domestic

insurance companies, pension funds and other financial institutions Their investmentsaccount for more than 70% of the outstanding covered bonds Foreign investors only hold a small but increasing proportion of Danish covered bonds (ca 13%) as they prefer non-callable and euro-denominated covered bonds We expect the amended law lead to an increase in issuance volume of euro-denominated bullet bonds Particularly euro-denominated bonds in Jumbo size, which are supported by the new law, should increase the proportion of foreign investors in mid-term

Triple-A rated From a ratings perspective, the Kingdom of Denmark received a long-term triple-A rating as

well as an excellent short-term rating by all three major rating agencies

RATING OF THE KINGDOM OF DENMARK

Source: Rating agencies, UniCredit Global Research

Danish housing market House price boom 1993-2006 After years of boom the Danish housing market has experienced a slowdown starting

from 2007 In the period between 1993-2006, the national average house price skyrocketed

by nearly 300% Winners were owners of apartments in Copenhagen, which had a four-timehigher value at the end of the cycle This boom was mainly fostered by growth in disposableincome, decreasing interest rates, and financial innovation, i.e an increasing variety ofdifferent loan types Moreover, the expanding and innovative product range of loan typesavailable to borrowers supported the market New types were a) adjustable rate mortgages (ARMs), b) interest-only loans, and c) capped floating rate loans

Regarding the finance structure of the housing market and the mortgage loan market, there is

a higher similarity to the German market than to the US market The process of credit evaluation is more thorough and uniform Moreover, it is important to note that securitization, i.e repackaging and selling of mortgages via RMBS is not common in the Danish market The usual way for mortgage lenders is to grant a loan, put it on their own books and eventuallyissue covered bonds to finance themselves

Jun-93 Jun-96 Jun-99 Jun-02 Jun-05 Jun-08

Source: Statistics Denmark, UniCredit Global Research

Change in sentiment in 2006 In spring 2006, sentiment in the Danish housing market changed House prices were

negatively affected by a decreasing number of interested buyers accompanied by a rapidly increasing number of properties for sale. In September 2007, there were 63k homes for sale, nearly twice as much as in the previous year In addition, the average time forsale of a property increased to 138 days from 112 days in the previous year

Further pressure on house prices emerged from a slowdown in private consumption growth and increased interest rates Borrowers with adjustable interest rate loans suffered the most due to the increasing interest rates

Nevertheless, the number of foreclosures is at a historically low level, which, however,

is not expected to be the case on a medium to long-term horizon This low level is the

consequence of the sharply increasing home equity stake of Danish property owners

Residential property prices

more or less stagnated or even

declined at year-end 2007

The trend of house prices in Denmark is depicted in the charts below Whereas residential property prices in the country as a whole have more or less stagnated, prices of owner-occupied apartments have declined by about 10.4%, while in the Copenhagen area muchstronger declines of around 14% were registered in 2007 In addition, house prices fell by

12% in Copenhagen Prices for business properties, however, have not followed the trend ofresidential properties and have still shown growth rates above 10% in the last few quarters

HOUSE PRICE DEVELOPMENT IN DENMARK

Price index for sale of property (2006=100) House price growth (2006=100)

Source: Statistics Denmark, UniCredit Global Research

Outlook Danish house prices are expected to decline until year-end as well as doing next year There

are two major reasons for the current house price downturn: The oversupply of real estate as well as increasing interest rates (mortgage rates rose to 5.9% in April 2008 from 3.7% in January 2005) Despite these constraining factors and the problems that two smaller Danish banks (Roskilde Bank and Bank Trelleborg) are experiencing, the Danish economy and housing market (favorable homeowner equity stake) is stronger compared to that of many other countries Consequently, a soft landing scenario is likely

Land register and land registration

A requirement for an effective mortgage lending business is the protection of the lenders'

rights on the borrowers' real estate For this purpose, rights and claims relating to real estate in Denmark are registered with the Danish Land Registration System (Tinglysningssystemet)

Any plot of land in Denmark is mapped in the Cadastral System (Matrikelsystemet) and labeled with a title number The title number is used in the Land Registration System, where

the rights and claims on a title number are ordered by rank The ranking order of themortgages on a given real estate must be set out in the Land Register in which registration ismade subject to a judicial examination The ranking is based on the principle of "first in, first right", and in the event of the property owner's default, the ranking in the register determines the order of payment

Structure of the banking market Market dominated by few bank

Group, which accounts for 35% of retail lending, and Nordea Group, which accounts for 15% Furthermore, both banks have large shares in the Danish life insurance market

Jyske Bank and Sydbank rank number 3 and 4, respectively in the Danish retail banking market, which comprises 162 banks Among these, six banks are mortgage lenders only,while two are specialized lenders, e.g the Danish Ship Finance and KommuneKredit (agency sector)

DANISH BANKING MARKET

Major Danish banks by total asset size Asset volume Danish banking market vs No of banks

Others

39%

Jyske Bank 6%

Danske Bank Group 35%

Nordea Group 15%

Sydbank 5%

0 500 1000 1500 2000 2500 3000 3500 4000

Total assets (DKK bn) Danish Banks

Source: Statistics Denmark, UniCredit Global Research

Strong regulatory environment The Danish banking sector is stable due to its strong regulatory environment There is

a high degree of integrity paired with a stable economy and an advanced legal system Inaddition, asset quality is high and was supported by a stable GDP growth rate in the last two decades However, if smaller banks are affected by increasing costs or any decline in asset quality, a new wave of consolidation might occur among the smaller Danish banks Withrespect to consolidation in the Danish banking market, we expect no major takeovers in theshort-term However, forced takeovers of smaller banks due to large-scale write-downs are possible

Regulatory environment Established corporate

governance structure In general, corporate governance for the major market players is good In fact, most

banks conform to recommendations of the Copenhagen Stock Exchange Committee regarding corporate governance

Finanstilsynet, the Danish

Supervisory Authority The institution responsible for supervising the banking sector in Denmark is the

Danish Supervisory Authority (Finanstilsynet), while the Danish Central Bank as well as

Finanstilsynet are responsible for financial stability Since 2005, there is also a memorandum

of understanding in place, which additionally involves the Ministry of Finance and the Ministry

of Economic and Business Affairs

The Danish FSA is an integrated supervisor, i.e it covers three areas: regulation, supervision, and information on financial institutions and securities markets The

Danish FSA is an agency under the Ministry of Economics and Business Affairs, but is overseen by independent Councils

The Danish Covered Bond Market Overview

Established in the 1790s The Danish covered bond market dates back more than 200 years and was established after

the great fire of 1795 in Copenhagen to finance the large reconstruction costs As a direct consequence, the first mortgage bank was established in 1797 This was just 25 years after the first German Pfandbrief was issued on August 1, 1782 In the long tradition of Danishcovered bonds a default or loss has never occurred This emphasizes the high security inherent in the legal system under which Danish covered bond issuers operate Furthermore,

in terms of outstanding covered bonds the Danish market ranks second after the German market, but with a significant gap The reason for the gap between Germany and Denmark is the non-existence of public sector covered bonds in Denmark, which make up the largest part

in the German market In terms of mortgage covered bonds, the Danish market is by far thelargest, ahead of the Spanish and the German market

EUROPEAN AND DANISH COVERED BOND MARKET

European covered bond market by outstanding volume – 2007 Danish covered bond market by issuer

Nykredit Group 42.3%

Danske Bank Group 30.2%

Nordea Kredit 11.8% BRF Kredit

9.6%

Others (e.g

DLR Kredit, LRF Kredit) 6.0%

Source ECBC, Bloomberg, UniCredit Global Research

New Danish covered bond law

force One of the previous core principles, the (old) balance principle that regulated a strict matching of granted loans and issued bonds, was amended In addition, the

specialized banking principle was also amended

In 2007, five new covered bond

programs were introduced Following the introduction of the "new" legal framework in Denmark, a few covered

bond programs were introduced in 2007 Issuers were Danske Bank (EUR 15 bn global

covered bond program), Nordea Kredit Realkredit (SDRO program, capital center 2), NykreditRealkredit (SDO program, capital center E) and BRFKredit (SDO program, capital center E).Particularly the two big commercial banks, i.e Danske and Nordea, are candidates for regularly issuing euro Jumbo bonds Since January 2008, Danske has already issued twocovered bonds using the Jumbo format

In terms of market share, Nykredit Group is the leading issuer in Denmark with a share

of 42%, followed by Danske Bank Group (incl Realkredit Danmark) with 30%, Nordea Kredit with 12%, and BRFkredit with 10% In the next few years, we expect that the issuing

volume in Denmark to shift from mortgage banks to commercial banks due to the amended specialized bank principle This is particularly the case if specialized mortgage banks belong

to a bank group, e.g Realkredit Danmark to Danske and Nordea Kredit to Nordea

Amended Danish covered bond legislation New Danish law since July 1,

regulatory framework was necessary to safeguard a level playing field for Danish banks as compared to European peers (i.e preferred regulatory treatment) The

prerequisite was that Danish mortgage bonds fulfill the criteria for the EU CapitalRequirements Directive (CRD), which defines the basis for preferential treatment with respect

to regulatory capital since the beginning of 2008 Furthermore, the new framework brings the Danish law more in line with other European covered bond legislations and should underpinthe issuance of euro-denominated covered bonds in Denmark In addition, the group of issuers that are allowed to issue covered bonds was also enlarged to include commercial banks The new regulatory framework features two main changes

1 The specialized bank principle was amended

2 The obligatory balance principle was changed to a new balance principle with two options

● General balance principle

● Specific balance principle

In general UCITS and CRD

directive 2000/12, which refers to the UCITS directive (EU directive 85/611) This directive stipulates a 10% risk-weighting for covered bonds if they fulfill the criteria of UCITS 22(4) With respect to UCITS 22 (4), bonds issued under the old law and under the new law qualify as covered bonds

However, on January 1, 2008, the new Capital Requirements Directive (CRD) came into force With respect to covered bonds, the CRD directive refers to the criteria in UCITS 22(4)

but has also established explicit eligibility criteria for collateral assets Significant legislative tightening measures are the stricter requirement for the valuation of cover assets and the continuous LTV compliance

To ensure that Danish covered bonds can also be issued as covered bonds under the newregulation and hence benefit from the preferred risk-weighting, Basel II, the Danish policymakers decided to amend the law

Strict balance principle

softened

Specialized bank principle

abolished

Prior to July 2007, the Danish law that regulated the issuance of mortgage bonds only allowed

special mortgage banks to issue Realkreditobligationer Since July 1, 2007, the Danish government has eased the strict balance principle Furthermore, the Danish Financial Supervisory Authority (FSA) since then also allows commercial banks to issue covered bonds The only restriction for commercial banks is that they are only allowed to issue Særligt

Dækkede Obligationer (SDO), a special type of covered bond (cf Executive Order no 718 of June 21, 2007, Part 1.1)

DANISH BOND LEGISLATION ON ISSUING MORTGAGE BOND'S

Covered bonds (SDO = Særligt Dækkede Obligationer) - Mortgage bonds (RO=Realkreditobligationer)

- Covered bonds (SDO= Særligt Dækkede Obligationer)

- Covered mortgage bonds (SDRO = Særligt Dækkede Realkredit Obligationer)

Source: UniCredit Global Research

New balance principle with two

dramatically Under the old law, it was a strict matching of disbursed mortgage loans andissued bonds, i.e a pass-through system with lots of taps The new legislation regarding the balance principle allows the issuers to choose between a general or a specific balance principle (cf Executive Order no 718 of June 21, 2007, Part 1.2) The later is still closer to the old strict balance principle However, the issuer must choose between one of the two principles for each cover register/capital center The balance principles stipulate rules for calculating financial risk inherent in each cover register/capital center

BALANCE PRINCIPLES*

in EU/EEA/Switzerland 10% of capital adequacy requirements plus

10% of voluntary OC

Max 10% of voluntary OC VaR 0.1% of capital base

50% other currencies 1% of capital adequacy

requirements plus 1% of voluntary OC

(10 days, 99%

confidence interval)

requirements plus 2% of voluntary OC

Max 10% of voluntary OC Parallel shift by +/- 1% 1% of capital base

Parallel shift and twist in the curve by +/- 2.5% 5% of capital adequacy requirements plus 10% of

voluntary OC

Max 100% of voluntary

OC Parallel shift by +/- 1%

Max 100% of voluntary

OC

exceed interest paid within 12 consecutive months (calc day-to-day, discounted basis)

Interest received must exceed interest paid within

12 consecutive months (calc day-to-day, discounted basis)

Furthermore, the PV of future payments into the register must exceed the

PV of future payments out

of the register

Must be below:

25% (1Y-3Y) 50% (4Y-10Y) 100% (>10Y)

to 1% change in the volatility of underlying asset

0.5% of capital adequacy requirements plus 1% of voluntary OC

Max 5% of voluntary OC Max 4 years and

structural limits on call options and index-linking

*OC=overcollateralization, PV=present value, VaR=Value-at-risk Source: Association of Danish Mortgage banks, UniCredit Global Research

Eligibility criteria In Denmark, the covered bond legislation specifies the following eligibility criteria for the cover

assets In general, cover pools which comprise public sector loans and mortgage loans are allowed The only prerequisite is a license from the DFSA In terms of geographic origin, there

is no limitation for residential and commercial mortgage loans in place However, the limitation

comes from the issuers' business model

OVERVIEW OF ELIGIBLE COVER ASSETS

Source: UniCredit Global Research

Bankruptcy remoteness of

covered bonds In case of insolvency of the issuer, the cover pool is bankruptcy remote The cover pool

is segregated and a special cover pool administrator has to be appointed Derivatives rank pari passu with covered bonds in case of asset segregation and have a preferential claimbefore other creditors, except for the cover pool administrator

Independent trustee is not

required for the cover pool In contrast to the German covered bond law, the Danish covered bond legislation does

not stipulate an independent cover pool administrator for the maintenance of the cover pool However, the issuer has to fulfill the requirements set forth by the covered bondlegislation and rules set by the DFSA For example, the issuing bank has to carry out continuous checks by its external auditor In contrast to commercial banks, mortgage banks

do not need to have a specific cover register However, it must assign cover assets for its covered bonds (RO, SDO, SDRO) to a series with a series reserve fund or capital center

Commingling risk needs further

clarification If only one administrator is appointed, it is responsible for satisfying the claims to the bond

holders and for the settlement of the insolvency estate With respect to commingling risk, it has to be clarified how a possible conflict of interest between serving covered bond investors and the creditors can be solved

Substitute collateral max 15%

of credit institutions Substitute collateral of credit institutions is allowed up to a maximum of 15%, which is in line

with CRD requirements

Cover pool assets for commercial banks Eligible assets for commercial

for the cover pool of commercial bank issuers and their SDOs, respectively

DESCRIPTION OF ARTICLE 152C FINANCIAL BUSINESS ACT

152c(1) The following types of assets may be included as collateral for the issue of covered bonds:

● 1) Loans secured by registered mortgages on real estate (no cover restriction on

first-lien if below LTV limits)

● 2) Ship loans and ship construction loans

● 3) Public sector debt within the European Union or in a country with which the

Community has entered into an agreement for the financial area

● 4) Public sector debt outside the European Union with which the Community has not

entered into an agreement for the financial area

● Multilateral development banks or international organizations (non-subordinated and unsecured debt with 0% risk-weighting)

● 5) Bonds issued by entities referred to in no 3 and 4 hereof (risk-weighting 20% and these assets are included with a limit of 20% of the nominal value of the issuer’s outstanding covered bonds)

● 6) Bonds issued by credit institutions (risk-weighting max 20%)

● Bonds issued by a credit institution within the European Union or in a country with which the Community has entered into an agreement for the financial area ((i) original term of

100 days or less, (ii) risk-weighting limit of 50%, and (iii) bonds may not exceed 15% of

the nominal value of the issuer’s outstanding covered bonds)

Source: UniCredit Global Research

Bonds or debt instruments

issued by public entities Article 152c (1) 3) refers to "public entities issuing bonds or instruments of debt" "Public

entities" is defined analog to the "public sector entities" in Article 4, (18) in the CRD (2006/48/EC) According to Article 4, (18): " ‘public sector entities’ means non-commercial administrative bodies responsible to central governments, regional governments or local authorities, or authorities that in the view of the competent authorities exercise the sameresponsibilities as regional and local authorities, or non-commercial undertakings owned by central governments that have explicit guarantee arrangements, and may include selfadministered bodies governed by law that are under public supervision."

Mortgage loans and ship loans

have to be kept separate SDOs issued by commercial banks have to fulfill special requirements regarding the cover

assets in a way that cover pools of commercial banks for mortgage loans and ship loans have

to be kept separate

Cover pool assets for mortgage banks

Eligible assets for SDOs issued

by mortgage banks

According to the Mortgage Credit Loans and Mortgage Credit Bonds Act and the amendment, the following assets are eligible for the cover pool of mortgage bank issuers Bill no 577 of June 6, 2007, which amends the Act on Mortgage Credit Loans and

Mortgage Credit Bonds (Act no 454 of June 10, 2003), specifies eligible assets for mortgage

banks for SDO and SDRO issues The assets eligible for SDOs issued by mortgage banks are mentioned in section 33b (1)in the Act on Mortgage Credit Loans and Mortgage Credit Bonds, which refers to the amended section 152c(1) 1) and 3) - 7) in the Financial Business Act (please see table above)

Eligible assets for SDROs

issued by mortgage banks The assets eligible for SDROs issued by mortgage banks are mentioned in section 33a

(1) in the Act on Mortgage Credit Loans and Mortgage Credit Bonds, which refers to section

2(1) in the Act (please see appendix for the articles) Eligible as collateral are loans secured

by real property as well as loans to public authorities or against a guarantee from a public authority (cp section 152c (1), nos 3-5 of the Financial Business Act or see table above).Ship mortgage loans as collateral are only allowed for commercial banks

Joint funding Joint funding will be possible

amended regulation, with the possibility to achieve larger issuance volumes Hence, in

particular smaller banks can now fund loans through the issuance of covered bonds byanother bank This takes place as an off-balance sheet transaction, i.e each involved bank must sell (true sale) the mortgages to the joint issuing company to be included in the jointcover pool Furthermore, the joint funding bank is allowed to outsource the servicing of themortgages and the valuation of the underlying properties Hence, this offers the opportunityfor intermediary banks to continuously serve their customers Moreover, the Danish FSA has

to approve joint funding models and assess if adequate security for covered bond investors

and debtors is offered

Security mechanisms of Danish covered bonds

No default in Danish mortgage

loss Therefore, the system provides high security by means of the following regulations:

● The Danish Financial Supervisory Authority (DFSA) controls the issuers

● Specific Loan-to-Value (LTV) limits

● Regular revision of LTV limits with a predefined mechanism in case property pricesdecline In case the limit is exceeded, issuers have to provide additional collateral to comply with the LTV limits

● Valuation of cover assets must be regular and independent

● Mortgage banks have to provide mandatory overcollateralization in contrast to commercial banks

● Mortgages must be entered in the Danish Land Register (kept by the Danish district courts)

No acceleration risk

Mortgage banks: preferential

claim against both demands

If a bankruptcy occurs in the Danish market, none of the covered bond types have an automatic acceleration mechanism Neither the insolvency of an issuer nor the failure to

provide additional collateral triggers the acceleration of covered bonds Regarding the insolvency procedure, there is a difference between mortgage banks and commercial banks Covered bond holders of a mortgage bank have a preferential claim in any case, i.e a preferential claim against the assets of other capital centers before ordinary investors In contrast, if investors are not satisfied out of the capital center of a commercial bank, they rankpari passu with the claims of unsecured creditors against the bank

Set-off risk depending on the

generally no deposit taking institutions On the other hand, investors in SDOs issued bycommercial banks are potentially exposed to set-off risk According to Moody's, set-off can only be exercised if two claims are (i) mutual, (ii) due, and (iii) obligations of the same nature

In order to reduce set-off risk, Danske Bank has implemented certain measures, e.g existing Danish borrowers explicitly waived their right to set-off In addition, new loans originated after April 1, 2008 will for all relevant jurisdictions already include such waiver of set off However,

in other jurisdictions, e.g Ireland, a full mitigation of set-off risk is not allowed

In terms of LTV limits (cf Mortgage-credit loans and mortgage-credit bonds, Act no 454 of

June 10, 2003), the limits specified by Danish law are close to the CRD limits A fundamental change was the implementation of a general market value approach vs the former goingconcern approach

Continuous LTV compliance In the old Danish law, a continuous review of collateral/LTVs did not exist Hence, the old

Danish law was not in line with CRD guidelines, due to an explicit rule in the CRD frameworkregarding the review of collateral and LTVs on a regular basis (CRD: residential propertiesminimum every three years and commercial properties at least annually) To receive a 10% risk-weighting, the amended Danish law was aligned with CRD requirements Furthermore,the Danish Financial Supervisory Authority has adopted valuation principles for covered bondcollateral

LTV LIMITS FOR DANISH COVERED BOND COLLATERAL

Særligt Dækkede Realkredit Obl (SDRO) Loan term and repayment

restrictions, if max 10Y IO* and max 30Y loan

No repayment restrictions

Owner-occupied homes for all-year habitation 80% (market value) 80% (market value) 70% (market value),

75% from July 2009

Private rental properties 80% (market value)

Private co-operative homes (unsubsidized) 80% (market value)

Private co-operative homes (subsidized) 80% (acquisition price)

Non profit housing projects 80% (acquisition price)

Properties for social, cultural, and educational purposes 80% (reacquisition price)

80% (market value) 70% (market value),

75% from July 2009

Agricultural properties etc 70% (market value)

Office and shop premises 60% (market value)

Manufacturing and manual industries 60% (reacquisition price)

60% / 70%* (market value) 60% / 70%* (market value)

*against extra collateral, IO=interest only Source: Mortgage-credit loans and mortgage-credit bonds Act, UniCredit Global Research

Funding needs in case of call

for additional cover If LTV limits are exceeded, e.g through a house price decline, issuers are obligated to

increase the cover pool with new assets until they reach the required limit Otherwise, all bonds issued in the relevant series shall lose the designation SDO or SDRO However, if the bonds satisfy the requirements for SDO's or SDRO's again, the DFSA can re-designate the bonds to SDO or SDRO

Real estate evaluation Danish law stipulates real

approach In general, the pledged property must be valued subject to an inspection of the

property by a valuation officer of the mortgage bank Inspection and valuation may only be carried out by professionals who possess the experience relevant to the valuation of the property type and market In addition, they have to be independent of the credit grantingprocess However, external evaluators must comply with certain requirements Furthermore, external evaluators are only allowed if the real estate value is below DKK 3.2 mn

DFSA valuation principles for

real estate ● Residential properties must be valued at least every 3 years

● Commercial properties must be valued at least annually

● Mortgage value must not exceed the open market value

● Open market value of a real estate may reasonably be achieved within a selling period ofsix months, regardless of whether the property has just been traded at a higher price

● Valuation and review of properties only by professionals, who are independent and notrelated to the credit granting process of the issuer

Overcollateralization and substitute assets Overcollateralization as

additional safety cushion In terms of overcollateralization, there is a difference between mortgage banks and

commercial banks Commercial banks can provide overcollateralization on a voluntary basis, while it is mandatory for mortgage banks Mortgage banks must meet an overcollateralization level correspondent to 8% of risk-weighted assets of a capital center, which led to a de facto mandatory overcollateralization of 4% under Basel I (mortgage loans typically 50% risk weighted), without taking substitute assets into

account However, the application of Basel II lowers the risk weights for mortgage loans

compared to Basel I, which lower the effective nominal overcollateralization For example, under the Standardized Approach the risk weight for residential mortgages is reduced to 35% from 50% This results in an effective nominal overcollateralization of 2.8% for a residential only pool In case of the Advanced IRB Approach the overcollateralization level is probably below this figure In case mortgage banks do not meet the overcollateralization requirement, they are obligated to inject money into the capital center as long as they have excess reserves available This does not apply for commercial banks

Mortgage banks provide a

preferential claim against

non-cover pool assets …

In case of insolvency, the claim against the issuer depends on the type of bank Should

the original capital center of a mortgage bank turn out to be insufficient in order to meet theobligations, in addition to a senior unsecured claim against the issuing bank, the coveredbond holders also have a preferential claim against excess capital of other capital centers

…while commercial banks do

of claims against assets that are not in their capital center (different capital centers are possible)

Substitute assets limited to

Options for substitute assets Issuers can fund necessary substitute assets:

● Through the bank's capital base

● Through issuance of junior covered bonds (senior debt) and loans The senior debt agreement must state the register, series with a series reserve fund or capital center for the funds that are to be applied as substitute collateral Moreover, these funds must

be kept in separate accounts to determine assets and funds as collateral for a relevant cover

pool

Junior covered bonds The new legislation introduced on the liability side, besides the existing covered

bonds, capital from the bank, and loans by the parent companies also the issuance of

"junior covered bonds" Junior covered bonds are regulated in article 33e of the

Mortgage-Credit Loans and Mortgage-Mortgage-Credit Bonds etc Act The receipts from junior covered bonds must be invested in safe investments (cf Art 152c(1), nos 1 and 3-7 Financial Business Act) The issuance may take place before the demand for supplementary security arises with aview to building up reserves Junior covered bonds have a subordinated claim compared to SDOs/SDROs (and costs for the processing of the insolvent estate, derivatives counterparties, bonds which have lost the designation as SDO/SDRO) against the capital center they belong to plus an unsecured claim against the issuer Therefore, Junior covered bonds do not receive a preferred risk-weighting as is the case for SDOs and SDROs

Overview of the Danish covered bond market Until June 2007, issuers were

only mortgage banks,…

…while, after the amendment

also commercial banks are

Danish mortgage covered bond

market is by far the largest

market, with EUR 336 bn as of

336 bn above the German market with EUR 206 bn

Bonds issued by the Shipbuilding Credit Institute (DKK)

Mortgage bonds (EUR)

Mortgage bonds, floating rates (DKK)

Mortgage bonds, fixed rates (DKK)

BRFkredit A/S Danske Bank A/S DLR Kredit A/S Nordea Bank Danmark A/S FIH Realkredit A/S Jyske Bank A/S

LR Realkredit A/S Sydbank A/S Nordea Kredit Realkreditaktieselskab

Nykredit Realkredit A/S FIH ErhvervsbankA/S Realkredit Danmark A/S Ringkjobing Landobank A/S Totalkredit Roskilde Bank A/S

Spar Nord Bank A/S

Source: Statistics Denmark, Realkreditrådet , UniCredit Global Research

LARGEST ISSUERS IN THE DANISH COVERED BOND MARKET

Realkredit A/S

Nykredit Realkredit A/S

Realkredit Danmark A/S

bank Universal bank Specialized mortgage bank Specialized mortgage bank Specialized mortgage bank

Issued covered bond

types*

All types Mostly euro-style

covered bonds expected

All types All types All types

some EUR Mainly DKK, but also some EUR

bank Foundation, belongs to the Nykredit group,

which also owns Totalkredit

Subsidiary of Danske bank

Volume of outstanding

covered bonds

EUR 22.1 bn EUR 6.7 bn (EUR 15 bn

global covered bond program established at year-end 2007)

EUR 32.8 bn EUR 74.6 bn EUR 72.9 bn

Ratings:

Issuer

Covered bonds

A2s/ / Aa1/ /

Aa1s/AA-s/AA-s Aaas/AAAs/AAAs

/ / Aaas/AAAs/

Aa3/ / Aaa/ /

/ / Aaas/AAAs/

*Compare table below: "BOND TYPES IN THE DANISH MARKET" Source: Bloomberg, Rating agencies, UniCredit Global Research

Types of Danish covered bonds Three types of bonds There are three different types of bonds in the Danish covered bond market:

● Mortgage bonds = Realkreditobligationer (RO)

● Covered bonds = Særligt Dækkede Obligationer (SDO)

● Covered mortgage bonds = Særligt Dækkede Realkredit Obligationer (SDRO)

The bond types can show differences regarding the type of issuer, the balance principle, and the type of collateral

Another way of classifying the Danish covered bond market is by type of coupon and redemption features, as shown in the table below In particular prepayments are very

common in the Danish market Therefore, issuers adopt callable and sinkable bonds to a great extent due to the old balance principle, which determined a pass-through system by the matching of assets and liabilities

BOND TYPES IN THE DANISH MARKET

fixed-rate floating-rate

Non-callable bullet bonds Callable annuity bonds Floating rate annuity bonds Floating rate annuity bonds

Maturities 1-11 years Maturities of 10, 20, and 30 years Maturities of 5, 10, 20, and 30 years Maturities of 5, 10, 20, and 30 years

Fixed rate coupon Fixed rate coupon Floating rate, based on 6 months

CIBOR plus fixed Spread Floating rate, based on 6 months CIBOR plus fixed Spread Without interest-only options With or without interest-only options

(IO max 10 years) With or without interest-only options (IO max 10 years) With or without interest-only options (IO max 10 years) DKK- and EUR-denominated DKK-denominated (to a great extent) DKK-(mainly) and EUR-denominated DKK-(mainly) and EUR-denominated

Funding of adjustable-rate annuity

loans and other mortgage loans under

new Danish legislation

Funding of fixed-rate callable annuity loans Funding of floating-rate loans Funding of floating-rate loans Open for issuance until maturity Open for issuance basically 3 years

High pre-payment risk High pre-payment risk High pre-payment risk

Source: UniCredit Global Research

Callable bonds dominate the

denominated in Danish krone However, issuance of euro-denominated bonds is expected tofurther increase within the next few years due to the enlarged issuer base, e.g Nordea and Danske Although the market comprises around 2,000 bonds, only a few bonds account forthe total amount outstanding As of April 2008, the 100 largest bonds among the total of 2000bonds represented about 75% of the volume

5% 30Y callables with special

bonds with a 5% coupon and a maturity of 30 years. These bonds are priced at equal levels independent of the issuer As the risk profile for all issuers is considered the same, the market maker decides which of the callable 30Y 5% bond it is supplying This mechanism was introduced to foster liquidity in this segment

Floaters with caps dominate

the Floater segment The segment of floating-rate covered bonds is dominated by bonds with embedded caps,

which have a 4 times higher volume than plain vanilla floaters The market for fixed-rate bullets has the largest share in very short-dated maturities of 1 year However, maturities up

to 10 years are available

LARGEST BONDS IN DANISH MARKET BY AMOUNT OUTSTANDING

Source: Bloomberg, UniCredit Global Research

Only few euro-denominated

with an amount of at least EUR 3 bn. As mentioned before, almost all bonds are denominated in Danish krone In the table below, we have included euro-denominated covered bonds exclusively, which fulfill the CRD-criteria and should be attractive for euro investors Moreover, euro-denominated bonds are also repo-eligible with the European Central Bank

EUR-DENOMINATED CRD-CONFORM DANISH COVERED BONDS

S&P

EUR bn

Danske Bank A/S XS0369059216 Aaa/AAA 06/11/2008 06/11/2013 4.875 BULLET AT MATURITY 1.25

Danske Bank A/S XS0357775559 Aaa/AAA 04/14/2008 04/14/2010 4.375 BULLET AT MATURITY 1.25

NORDEA KREDIT DK0002018712 Aaa/AAA 11/30/2007 01/01/2009 4.0 BULLET AT MATURITY 1.28

NYKREDIT DK0009769465 Aaa/ 11/16/2007 01/01/2009 4.0 BULLET AT MATURITY 2.10

REALKREDIT DNMRK DK0009277246 Aaa/AAA 07/09/2007 01/01/2009 4.0 BULLET AT MATURITY 2.50

Source: Bloomberg, UniCredit Global Research

SDO and SDRO are 10%

risk-weighted as well as ROs issued

before 2008

Another important point for investors is the risk-weighting under BASEL II The new

CRD compliant Danish Covered bonds (SRO) and Covered mortgage bonds (SDRO) issued since the beginning of 2008 are 10% risk-weighted Mortgage bonds (RO), if issued or tapped after December 31, 2007 are 20% risk-weighted, while RO issues before 2008 are grandfathered and therefore have a 10% risk-weighting

DANISH COVERED BONDS UNDER BASEL II – STANDARDIZED APPROACH*

Mortgage bonds

=

Grandfathered, if no new issuance after the end of 2007 10% risk-weighting

Grandfathered bonds have a 10%

risk-weighting Taps from existing bonds or new issuance have a 20% risk-weighting

Covered bonds

= Særligt Dækkede Obligationer (SRO)

N/A N/A

CRD compliant and qualified as covered bonds 10% risk-weighting

Covered mortgage bonds

= Særligt Dækkede Realkredit Obl (SDRO)

N/A N/A

CRD compliant and qualified as covered bonds 10% risk-weighting

*Risk-weightings in most European countries adaptive Source: UniCredit Global Research

Fixed rate callable Danish covered bonds Advanced pricing method for

callable covered bonds

necessary

If investors are interested in Danish covered bonds, they have to deal with the problem that most Danish fixed-rate bonds are arranged with a call option for issuers.The bonds are usually sinkable, i.e they have an annuity profile and have an original time to maturity of

20 years or 30 years The call option for issuers of covered bonds is a consequence of the right of borrowers in Denmark to prepay the loan at par In fact, upside potential is limited due

to prepayments (particularly in a declining interest rate environment) and the following execution of the call right in the covered bond As a result, investors are compensated by higher premiums compared to non-callable bonds Furthermore, due to call rights pricing gets more sophisticated and investors need to know how prepayment risk affects the future pricing

of such bonds A measure that can be used to compare bonds is the option-adjusted spread (OAS) It reflects the yield pick-up or compensation for the issuer's call option

In the following, we give a brief description of the moneyness of fixed rate callable bonds

Callables with in-the-money

size of these bonds has already been reduced significantly from the original issue amount due to a large amount of prepayments The remaining small volume of such bonds

is usually not affected by high prepayments anymore due to the fact that all rational borrowers have already prepaid In fact, in-the-money callables have a remaining lifetime close to zero and are traded at money market levels with low liquidity

Callables with at-the-money

upside potential for investors is limited compared to substantial downside risk.These bonds feature a high negative convexity, which leads to a higher risk premium for investors In terms of hedging purposes, interest rate derivatives like swaptions are used to manage volatility risk as well as extension risk Extension risk is mainly the result of rising interest rates, i.e as interest rates rise, the likelihood of prepayments decreases This means that loans in a cover pool are being prepaid at a slower rate Investors are unable to capitalize on higher interest rates because their investments are locked in at a lower rate for a longer period

of time

Callables with

option This means that only larger interest rate declines affect the prepayment behavior of borrowers Consequently, the pricing and handling of such bonds are easiest

compared to the other two types In practice, liquidity is high due to available benchmark bonds Out-of-the-money callables are most attractive for new investors in the callable market

Bermudan Swaption to change

callable into floating Investors who wish to avoid interest rate risk, prepayment risk, and volatility risk

combine the callable bond with a payer swap with a similar amortization profile as the call dates The reason for this is the fact that investors need an option of the swap due to

prepayments (call dates) The adequate derivative is a Bermudan Swaption with an identical profile of all future prepayment dates For new covered bonds, borrowers must give notice to the creditor at least two months before the next payment date Furthermore, for the floating leg the Copenhagen Interbank Offered Rate CIBOR plus a fixed spread is often arranged

COVERED BONDS MARKET CONDITIONS

Accrued interest Actual/Actual day count condition Bid/Offer Spreads Liquid bonds trade at 0.1 spread Calls In case of redemption due to exercising an option, investors will receive notification and

receive the notional in the manner agreed

Settlement Period is usually 3 working days Trading Bonds are quoted in terms of clean prices

Source: UniCredit Global Research

Investment in a Danish Jumbo-style covered bond

We would like to give a brief example of an investment in an EUR-denominated Danish covered bond without any call option (bullet)

EUR-denominated Danish

covered bonds In the maturity bracket 2010, the lately issued EUR-denominated DANBNK 4.375% 04/10 and

DANBNK 2.5% 09/10, trade close to or slightly below flat Compared to selected German, French, Spanish and Finnish covered bonds, the two Danish covered bonds trade at the tighter end of the sample In our view, the Danish covered bonds offer both under diversification considerations and in terms of spread stability, besides its relative soundcollateral quality, an attractive buy opportunity for euro covered bond investors In particular, this is true for euro-denominated bullet bonds, which avoid the challenging management of prepayment risk inherent in lots of DKK-denominated covered bonds

ASW DEVELOPMENT

-20 -15 -10 -5 0 5 10 15 20 25

DANBNK 4.375% 04/10 AARB 4% 02/10 HYPORE 4.25% 04/10 SANTAN 4% 09/10 DANBNK 2.5% 09/10 OPMBK 4.875% 06/10 CFF 3.75% 02/10 BNPPCB 4% 03/10 CMCICB 4.375% 11/10 DEXMA 4.25% 11/10

DANBNK

Source: UniCredit Global Research

Outlook on the Danish covered bond market Soft landing scenario for the

Danish housing market Currently, the Danish housing market is undergoing a significant correction Since in

2006 the peak was reached, the largest decrease in prices was experienced for occupied flats, while single houses declined less On the other hand, commercial property prices are still rising Responsible for the current house price decline is the fact that houseprices were too high relative to household income and have not yet reached a reasonablelevel Therefore, we expect a further adjustment of house prices in the near future However,the housing market might experience a soft landing if the labor market remains strong In an international context, real Danish house prices showed the largest increase besides prices in the UK

owner-Commercial banks to increase

issuance of Jumbo-style

covered bonds

As a consequence of the new cover bond law, in particular with respect to the following features:

● Enlarged issuer base including commercial banks

● Eased balance principle, which allows the forbearance of the strict matching principle

● CRD compliance of both newly issued and grandfathered covered bonds

We expect an increasing number of new euro-denominated Jumbo issues with fix coupons, without any call options In particular commercial banks are expected to fund

their business by issuing Jumbo-style covered bonds, e.g Danske, which already issued two Jumbo-style bonds this year

Foreign investors will only

increase their share in

Jumbo-style bonds…

while we expect a strong

domestic bid for Danish-style

covered bonds

However, due to the strong domestic bid, it seems likely that we will also see a large amount of newly issued covered bonds "in Danish style" (call options, denominated in DKK, tap issues etc.) Danish investors are familiar with more complex structures within

Danish style bonds, which, however, are not common in the European Jumbo market Hence,

in our opinion, due this complexity (management of prepayment risk etc.), foreign investors will not enter the Danish style covered bond market to a great extent

Covered Bond Issuer Profiles Nykredit Realkredit A/S

Bank Profile Key characteristics

Bloomberg ticker: NYKRE

SWOT-ANALYSIS

Strengths/Opportunities Weakness/Threats

Leading market position in the Danish mortgage market Low business and international geographic diversification

Robust capitalization Limited growth opportunities in a highly competitive market

Excellent asset quality

Source: UniCredit Global Research

shareholders: Foreningen Nykredit (86.71%), Industriens Realkreditfond (6.89%), ForeningenØstifterne (3.25%) and PRAS A/S (3.15%) Foreningen Nykredit and Foreningen Østifterne are foundations particularly created for the purpose of owning shares of Nykredit Holding Nykedit Holding A/S directs its business through Nykredit Realkredit A/S, which carries outthe business activities through the subsidiaries Totalkredit A/S, Nykredit Bank A/S, Nykredit Forsikring A/S, Nykredit Mægler A/S and Nykredit Ejendomme A/S

NYKREDIT REALKREDIT GROUP, MAIN LEGAL STRUCTURE

Nykredit Holding A/S

Nykredit Realkredit A/S

Totalkredit A/S Nykredit Bank A/S Nykredit

(Property company)

Nykredit Portefølje Adm A/S

Nykredit Leasing A/S

Nykredit Realkredit Group

LeasIT A/S

Source: Company data; UniCredit Global Research

Four business areas Nykredit organizes its business along four divisions: Retail Customers, Business

Partners, Commercial Customers and Markets & Asset Management The activities of thebusiness areas are coordinated across group entities Each of the group's four businessareas have full decision-making powers and customer responsibility and provide private banking, mortgage banking, insurance, and real estate agency services

Retail Customers Retail Customers is the largest business area of Nykredit It focuses on financial services

for retail customers, and offers all types of financial products through Nykredit's owndistribution channels At year-end 2007, private residential mortgage lending amounted to DKK 166.7 bn (EUR 22.4 bn), accounting for more than 20% of the group's total mortgagelending

Business Partners Business Partners is responsible for the distribution of mortgage loans to retail

customers of Totalkredit arranged by Danish local and regional banks In addition, this

business area is responsible for further developing the Group's existing partnerships and establishing new partnerships At year-end 2007, mortgage lending represented 43% of Nykredit's total mortgage lending or DKK 354.9 bn (EUR 47.6 bn)

Commercial Customers The Commercial Customers business area serves agricultural, business and rental

housing customers as well as housing society and non-profit housing customers.Total mortgage lending incurred in this business area amounted to DKK 301.8 bn (EUR 40.5 bn) at year-end 2007

Markets & Asset Management The business area Markets & Asset Management includes the group's activities within

trading in securities and financial instruments, investment, asset management and pension products Assets under management (AUM) for private individuals amounted to

DKK 6.3 bn (EUR 0.8 bn), while assets under management for institutionals and corporates

totaled DKK 60 bn (EUR 8 bn) at year-end 2007

Distribution capacity Nykredit Realkredit Group has developed a strong multi-channel distribution network,

including call centers, the internet, estate and insurance agents, local centers as well as extensive branch networks of Danish local and regional banks Products are sold under

two brands: Nykredit and Totalkredit Nykredit-branded products are distributed through 50 retail centers and 26 commercial centers Products under the Totalkredit brand are soldthrough partnership banks, which combined have over 1,100 branches

Since 2002, Nykredit has entered into agreements with several banks in Denmark, e.g Jyske Bank A/S and Sydbank A/S for the distribution of Nykredit's mortgage loans through theirbranches Furthermore, Nykredit acquired up to 10% of the equity of all these entities for strategic reasons To further strengthen its distribution capacity, Nykredit purchased 51.8% of Totalkredit in November 2003 and bought the remaining share of 20.8% in 2006

Nykredit Realkredit A/S – Financial Analysis Total assets: EUR 144.2 bn at

year-end 2007 Nykredit's balance sheet has enjoyed steady growth over the last four years, totaling

DKK 1,075 bn (EUR 144.2 bn) at year-end 2007, which represents 12% growth on a y-o-y basis The group's assets consist mostly of mortgage loans accounting for DKK 823.2 bn (EUR 110.4 bn), while only DKK 39.7 bn (EUR 5.3 bn) were bank loans The nominal value of mortgage lending amounts to DKK 849.5 bn (EUR 114 bn)

Almost exclusively Danish

granted outside Denmark as of year-end 2007 compared to 2% one year earlier.More than 50% of mortgage lending is related to Jutland and one-third to the metropolitan area Interms of distribution by property type, around 63% of total mortgage lending had been

approved for owner-occupied dwellings in Denmark

NYKREDIT'S LENDING ACTIVITY

Total lending by property type Total lending by geographical area

Other 1.5%

Owner-occupied dwellings 62.8%

Metropolitan area 28.2%

Other Eastern Denmark 10.2%

Funen 8.6%

Jutland 50.1%

Faroe Islands and Greenland 0.2%

International 2.8%

Source: Company data; UniCredit Global Research

Sound credit quality Nykredit shows an excellent credit quality Write-offs and net provisions are currently at

record lows As of year-end 2007, loan loss provisions decreased to DKK 67 mn (EUR 9 mn) from DKK 369 mn (EUR 49.5 mn) in 2006 The group takes a prudent approach to mortgage lending with 95% of residential loans having a LTV below 60% No lending within themortgage loan book carries an LTV of more than 80% Only 0.16% of total mortgages were

75 days or more in arrears as of September 2007

Robust capitalization The capitalization of Nykredit is still robust, although both the Tier 1 ratio (9.7% vs 11.0%

in 2006) and the total capital ratio (10.3% vs 11.8% in 2006) declined in 2007 Since thebeginning of 2008, Nykredit determines its capital requirements under the Advanced IRB Approach according to Basel II, applying Danish transitional rules, which reduced the group's capital basis Not taking those transitional rules into account, capital requirements would besignificantly lower, resulting in a Tier 1 ratio of 9.7% and a total capital ratio of 10.3%

P&L structure dominated by

net interest income Nykredit has a compact P&L structure In FY 2007, net interest income (NII) represented

the major revenue source with a share of 78% of total revenues, whereas net income fromfees and commissions only accounted for 2% of total revenues RoE decreased in recentyears, reaching 6.3% at year-end 2007 vs 8.9% in 2003 (2006: 6.6%), while the portion of equity to total assets remained stable at 5.1% at year-end 2007 compared to 4.9% in 2003 (2006: 5.4%) The net interest margin remained at a very low but stable level of 0.69% at year-end 2007 compared to 0.64% in 2006 The majority (63%) of gross income was generated by the group's mortgage activities, while banking contributed 15%, markets and asset management 14%, insurance 6% and estate agencies 2%

Outlook 2008 With respect to the market turmoil, Nykredit provided a cautious outlook for the

remaining year According to the company, the financial crisis will have only a limited impact

on the forecast of core earnings of DKK 4.2 bn - 4.4 bn Continued financial market turmoil is not expected to have a material impact on earnings in the business areas Retail Customers,Business Partners and Commercial Customers, whereas earnings in Markets & AssetManagement may be adversely affected The uncertainties in Nykredit's forecast lies within the income from the investment portfolio, which was estimated at DKK 400 mn- 600 mn at the beginning of 2008 However, this estimate is subject to great uncertainty, which is related to acontinuing challenging market environment

FY 2007 net income 1.1% y-o-y Nykredit reported a net income of DKK 3,363 mn (EUR 451 mn) for FY 2007, compared

to DKK 3,327 mn (ca EUR 446.2 mn) on a y-o-y basis Total profit growth of 1.1% is

modest compared to an increase of about 20% in core earnings, which comprises the group'scustomer-oriented activities and risk free interest from the securities portfolio Thisdevelopment is due to a decline in income from the investment portfolio of over 80% to DKK

158 mn, as widening yield spreads in 2007 caused a loss of DKK 62 mn in the bond portfolio However, the 2007 results are well in line with historically very stable profit generation sincethe acquisition of Totalkredit A/S The cost-income ratio rose slightly from 49.7% in 2006 to 50.4% in 2007, which the Group partly attributes to its expanding business volumes in the areas Commercial Customers and Markets & Assets Management

NYKREDIT: FINANCIAL HIGHLIGHTS

Source: Company data; UniCredit Global Research

Funding Nykredit raises funding mainly

through mortgage bonds All mortgage lending undertaken by Nykredit Realkredit A/S and Totalkredit A/S, the group's

two mortgage banks, is funded through the issuance of mortgage bonds and since November

2007 by SDOs under the new Danish legislation The latter accounted for 8% of total funds for mortgage lending at year-end 2007 Nykredit ceased to a very large extend to issue mortgage bonds (ROs) since the beginning of 2008, as they do not carry a preferred risk weighting of 10% under the Basel II Standardized Approach The group complies with the balance principle, which means that its funding and lending activities are almost perfectly matched and

no lending takes place if it is not possible to issue mortgage bonds at the same time This greatly minimizes the group's exposure to liquidity risk arising from its mortgage lending

Covered Bonds Issuance of SDOs out of its

newly established capital

center E

Since September 2005, Nykredit has issued ROs to fund mortgage loans of Nykredit

Realkredit and Totalkredit in joint issues Since November 2007, Nykredit has started issuing its SDOs out of its new capital center E to fund loans granted by both brands, while all existing RO series were ceased at year-end 2007 to ensure grandfathering.

Furthermore, Nykredit issued junior covered bonds out of its new capital center E in the amount of EUR 670 mn (DKK 5 bn) with a fixed coupon in mid-December 2007, while a similar bond was issued with a floating rate in April 2008

The new SDOs issued by Nykredit amounted to around EUR 11.8 bn (nom DKK 88 bn) at year-end 2007, which corresponds to 8% of outstanding ROs and SDOs The issued ROs amounted to EUR 40.2 bn (DKK 300 mn) The overall outstanding amount of Nykredit group was about EUR 140.8 bn (DKK 1,051 bn) In 2007, euro-denominated bonds increased to 10% of all outstanding bonds compared to 8% y-o-y

COVER POOL STRUCTURE

Source: Company data, UniCredit Global Research

Nykredit stopped issuing ROs In December 2007, 95% of Nykredit's outstanding mortgage bonds were issued out of capital

center D By year-end 2007, Nykredit stopped issuing ROs out of the general capital center, capital center C, and capital center D Consequently, meaningful detailed data on cover pool

E is not available Therefore, we focus on the overall mortgage portfolio, which gives us a good proxy for the future composition of the new cover pool E

Fixed-rate callables account for

more than one-third of

outstanding bonds

In 2007, Nykredit issued four different bond types, i.e fixed rate bonds (37.2%), Floaters(Floating rate and Cibor-linked bonds 30.9%), non-callable fixed-rate bullet bonds (28.5%), and to a small extent index-linked bonds (3.5%)

Covered bond investors

Mortgage Borrowers (located in Denmark)

Reserve fund 8% risk-weighted capital General capital

center

Capital center D

Capital center C

Capital center E (new) Reserve fund

ROs

Reserve fund SDOs All series closed at year-end 2007

NYKREDIT'S BOND TYPES BY OUTSTANDING DEBT

Non-callable fixed-rate bullet bonds

Floating-rate bonds

Cibor-linked, etc.

Index-linked

2007 2006

Source: Company data, UniCredit Global Research

General balance principle In respect to the balance principle, Nykredit has opted for the general balance

principle, which has no strict asset liability matching and offers more flexibility compared to

the specific balance principle that regulates a strict matching of granted loans and issued bonds

Mandatory OC of 8% Overcollateralization is mandatory for mortgage banks Therefore, Nykredit as a mortgage

bank has to achieve an overcollateralization of 8% of risk-weighted assets In the event of bankruptcy, covered bond investors only have recourse to their cover pool (no cross-collateralization) besides the dual claim against the issuer In general, maximum LTV limits are 80% for residential and 60% for commercial properties

NYKREDIT'S MORTGAGE LOAN DISTRIBUTION*

Mortgage loans by size (DKK) Mortgage loans by loan terms

0 - 2 mn 58.4%

2 - 5 mn

17.4%

50 - 100 mn 1.8%

4.21%

12.47% 13.76%

60.66%

0.93% 2.13%5.84%

Granular pool structure Nykredit's overall mortgage loan portfolio is characterized by a granular structure, i.e 58.4%

were loans with a size below DKK 2 mn, 17.4% between DKK 2 – 5 mn, while only 6.3% were above DKK 50 mn The average loan was DKK 1.15 mn (ca EUR 154,100) In terms of loan maturity, around 60% have a maturity between 25-30 years

MORTGAGE LENDING – METRICS*

Total residential asset balance EUR 113.8 bn (DKK 849.2 bn) Country of origin Approximately 97% originated in Denmark

Residential property (owner-occupied) 62.8%

*data as of December 2007 Source: Moody's, UniCredit Global Research

The LTV distribution of Nykredit's entire mortgage portfolio shows a LTV ratio below 60% Especially owner-occupied dwellings, which account for about 60% of Nykredit's loan book,had 76% of loans with an LTV below 40%

LTV DISTRIBUTION OF NYKREDIT'S MORTGAGE PORTFOLIO

Source: Company data, UniCredit Global Research

Capital center E At end-March 2008, the volume of covered bonds issued out of capital center E amounted to

approximately EUR 14.7 bn (DKK 110 bn), mainly stemming from Nykredit's December refinancing of ARM loans In addition, Nykredit has issued about EUR 1.3 bn (DKK 10 bn) injunior covered bonds out of capital center E

Rating Profile NYKREDIT REALKREDIT'S COVERED BOND RATINGS

Capital center C, ROs

Capital center D, ROs

Capital center E, SDOs

General capital center, ROs

Source: Rating agencies, UniCredit Global Research

NYKREDIT REALKREDIT'S: RATING PROFILE

Long-term Short-term Outlook Financial strength Support/Floor

-Source: Rating agencies, UniCredit Global Research

RATING AGENCIES' COMMENTS ON NYKREDIT REALKREDIT GROUP

Moody's

June 30, 2008 Summary Rating Rationale: franchise with a leading domestic mortgage market share in most lending segments, predictable profitability, good capitalisation, low risk Moody's assigns a Aa3 issuer rating to Nykredit Realkredit This rating reflects its well-established domestic

profile and sound asset quality, as well as the challenges of maintaining profitability in a highly competitive market The rating also takes into account the specialised business model on which its activities are based As a significant positive factor, Nykredit Realkredit adheres to the balance principle of Danish regulations that ensure an almost perfect match between lending and funding, and it has no interest rate risk or pre-payment risk Its mortgage bonds in Capital Centre D are rated Aaa and its mortgage bonds in Capital Centre C and the General Capital Centre are rated Aa1 Most recently the covered bonds in Capital Centre E have been rated Aaa (refer to the rating action on Nykredit Realkredit, Capital Centre E from 4 December 2007) The ratings of the capital centres incorporate both the strong legal framework for Danish mortgage bonds and some additional structuring Following the acquisition of mortgage lender Totalkredit, Nykredit Realkredit

commands a leading market share of the Danish mortgage market and is one of the largest financial groups in Denmark Credit Strengths:

Well-established franchise with leading market share in most mortgage lending segments; Excellent asset quality; Resilient profitability, but

margins remain pressurized; Regulated by the strict Danish mortgage legal framework; Very good capitalization Credit Challenges: Limited

growth potential in a well-penetrated and highly competitive market; Sustaining and improving cost efficiencies and profitability; New covered

bond may change market dynamism Rating Outlook: The outlook for Nykredit Realkredit's rating is stable, reflecting its continued solid share of outstanding mortgages and healthy financial fundamentals What Could Change the Rating – Up: An improvement in profitability may put upward pressure on the rating given that asset quality is not compromised What Could Change the Rating – Down: Although

currently unlikely, a reduction in its distribution capacity or a serious deterioration in its asset quality leading to large-scale write-offs could lead to downward rating pressure Also, changes to the strong Danish mortgage legal system could exert pressure on the entity's ratings

S&P

January 31, 2008 Rationale:conservative risk management, stable core earnings, and robust capitalization They also factor in the successful integration of Totalkredit The ratings on Nykredit Realkredit A/S (Nykredit) reflect the group's leading market position in Danish mortgage lending,

A/S and continued cooperation with local and regional banks in Denmark The ratings are constrained by the low geographic and business diversification of the group, although the growing banking franchise is further contributing to core income With total assets of Danish krone 1.06 trillion at Sept 30, 2007, Nykredit ranks as the country's second-largest financial services group and leading mortgage lender The group controls about 40% of the Danish mortgage loan market and, although relatively small within the group, has successful operations in banking through its subsidiary Nykredit Bank A/S (not rated) and non-life insurance through Nykredit Forsikring A/S (BBBpi/ / ) Based on its solid franchise, conservative risk management, and cost-efficient operations, Standard & Poor's Ratings Services expects Nykredit to continue delivering stable profits, despite the fact that margins in the Danish mortgage business are very thin For the first nine months of

2007, Nykredit reported annualized operating income equivalent to 0.95% of average risk assets, in line with the group's performance over the past five years Nykredit's very good asset quality reflects the group's conservative credit risk policies, both in terms of customer assessment and loan-to-value At Sept 30, 2007, Nykredit reported negligible gross nonperforming assets equivalent to 0.07% of total gross loans Provisioning for bad and doubtful debt is currently at record low levels and could rise in the near future from cyclical lows, although any increases are expected to be only moderate Given its mutual status, Nykredit has a track record of managing capital conservatively, on the basis of stable profits and conservative risk management in a low-margin business At Sept 30, 2007, it reported a ratio of adjusted total equity to risk assets of 9.59%, well above that of other similarly rated financial institutions in the Nordic region Standard & Poor's considers that the continuity of the loyalty of, and cooperation with, 96 local banks that form an alliance in the distribution of retail mortgages are key to the sustainability of the privileged market position of Nykredit in the Danish banking system The successful integration of Totalkredit,

acquired in 2003, is virtually complete Credit Strengths:Leading market position in the Danish mortgage market; Stable core earnings and very good asset quality track record; Robust capitalization; Limited market risk through strict matching rules under Danish mortgage law

margins in the mortgage market in Denmark; Dependence on cooperation with regional and local banks for distribution of retail mortgage loans

Source: Rating agencies, UniCredit Global Research

Number Crunching NYKREDIT REALKREDIT GROUP: P&L HIGHLIGHTS (SINCE 2005 IFRS, BEFORE DANISH GAAP)

Year ending (EUR mn) 31-Dec-07 31-Dec-06 31-Dec-05 31-Dec-04 31-Dec-03 31-Dec-02 31-Dec-01 31-Dec-00

Source: BankScope, UniCredit Global Research

NYKREDIT REALKREDIT GROUP: B/S HIGHLIGHTS (SINCE 2005 IFRS, BEFORE DANISH GAAP)

Year ending (EUR mn) 31-Dec-07 31-Dec-06 31-Dec-05 31-Dec-04 31-Dec-03 31-Dec-02 31-Dec-01 31-Dec-00 Assets

Total liabilities & equity 143,890 128,374 119,296 107,162 110,177 82,859 78,733 68,842

Source: BankScope, UniCredit Global Research

NYKREDIT REALKREDIT GROUP: KEY RATIOS (SINCE 2005 IFRS, BEFORE DANISH GAAP)

Year ending 31-Dec-07 31-Dec-06 31-Dec-05 31-Dec-04 31-Dec-03 31-Dec-02 31-Dec-01 31-Dec-00 Profitability

Liquidity

Asset quality

Realkredit Danmark A/S Bank Profile

Key characteristics

Bloomberg ticker: RDKRE

www.rd.dk

Realkredit Danmark A/S is a

subsidiary of Danske Bank

Realkredit Danmark A/S (RDKRE; NR) is the second largest specialized mortgage lender inthe Danish market and is wholly-owned by Danske Bank A/S (Aa1s/AA-s/AA-s) Realkredit Danmark was established 1851, and in 2001, it merged with Danske Kredit A/S and BG KreditA/S as part of the merger of Danske Bank A/S and RealDanmark A/S Within the DanskeGroup, RDKRE is the mortgage credit arm of the Group, however, due to the new covered bond law Danske Bank itself also established a new "Global Covered Bond Program" Due tothe high importance of Danske Bank for Realkredit Danmark's credit strength, please alsorefer to the credit profile of Danske Bank below

At year-end 2007, Realkredit Danmark's assets totaled EUR 92.9 bn, which was an increase

of 4.4% y-o-y Realkredit Danmark's principal market is the Danish mortgage market Moreover, RDKRE also provides, however to a small extent, loans to Faroe Islands,Greenland, Sweden, France, the UK, and Germany

Strong distribution network An advantage of Realkredit Danmark is the strong distribution network it can use, i.e.

both its own branches and the network of Danske Bank Furthermore, cooperation

between Realkredit Danmark and its parent company Danske Bank is concretized in anagreement, which states the following: (i) the branch, which originated the mortgage isresponsible for handling the loan, (ii) if a Danske branch originated the mortgage, Danske Bank covers all potential losses between 60% and 80% of the LTV, and (iii) RDKRE receivesdirectly the payments of the lender and pays a provision to Danske Bank RDKRE's averageLTV ratio was 53% in 2007 (calculated on the basis of the total amount of loans secured on each property) and at a similar level compared to the previous year

Financial Analysis

compared with DKK 561mn (EUR 75.2 mn) in Q1 2007 (+33%) Net interest income

increased by 9.1% to DKK 431 mn in Q1 2008 from DKK 395 mn y-o-y Operating income improved by 16% y-o-y to DKK 1,237 mn, while operating expenses decreased by 16% y-o-y

to DKK 249 mn The cost-income ratio was 20.1% in Q1 2008, better compared to Q1 2007 (27.9%) and Q4 2007 (25.8%) The market share of net new lending rose 4% from 25.1% in

2007 to 29.1% in Q1 2008 The market share of the loan portfolio was 31.7% at the end of Q1

2008 vs 31.8% q-o-q Since the beginning of FY 2008, Realkredit Danmark applies the Advanced IRB approach This resulted in a significant reduction of the capital requirement.While the Tier 1 capital (DKK 35.9 bn) remained at a constant level, total risk-weighted assets declined by 83.7% to DKK 55.8 bn from DKK 339.8 bn in the previous year Consequently, the Tier 1 ratio skyrocketed to 64.6% (year-end 2007: 10.5%/January 1, 2008: 64.36%) as a result of the implementation of Basel 2 The total capital ratio increased to 64.36%(10.51%/64.32%) in the same period Realkredit Danmark stated that it calculated thesolvency for 2007 in accordance with the rules of Danish FSA According to the CRDtransition rules, the minimum requirement for the solvency ratio is 45.6% as of March 31,

2008

Covered Bonds SDROs issued out of newly

established capital center S Since January 1, 2008, newly issued or tapped mortgage bonds (Realkredit Obligationer)

receive no favorable risk weighting anymore as they are not CRD compliant Hence, Realkredit Danmark set up its new covered bond program for issuing mortgage coveredbonds (Særligt Dækkede Realkredit Obligationer=SDRO) For this purpose, the bank set upcapital center S At the end of the year 2007, issuance out of the old "General capital center"

was discontinued

Bonds at year-end 2007 At year-end 2007, Realkredit Danmark had issued ROs (mortgage bonds) for a total amount

of DKK 652 bn and SDROs (mortgage-covered bonds) worth DKK 148 bn, of which DKK 124

bn was intended for refinancing In 2007, the largest part of RDKRE's issued bonds were callable bullet bonds, which accounted for 50% Regarding SDROs, the largest issued seriesout of the new capital center S was the DKK 92.7 bn bond, which matures on January 1,

non-2009 It is expected that RDKRE will retain this bond until year-end 2008 when existing

"Realkredit Obligationer funding interest reset loans" mature

In respect to cover pool metrics, the weighted average LTV of capital center S was 53% at thetime of its establishment

Specific balance principle In respect to the balance principle, Realkredit Danmark applies the specific balance

principle for both capital centers, which regulates a strict matching of granted loans and

issued bonds

Minimum OC of 4% The statutory overcollateralization requirement for mortgage banks to maintain the minimum

regulatory capital ratio of 8% (cf art 124 Financial Business Act) currently leads to a

minimum effective nominal overcollateralization of 4%

A large proportion of Realkredit Danmark’s loans to the retail market are arranged via Danske Bank branches with a loss guarantee At year-end 2007, these guaranteed loans accounted for 68% of total lending to retail customers The guarantee covers the part of the loans that

exceeds 60% of the original valuation of properties

Rating Profile Realkredit Danmark benefits

from the credit strength of

Danske Group

Realkredit Danmark is a wholly owned subsidiary of Danske Bank A/S (Aa1s/AA-s/AA-s) It has a rating for its two covered bond programs, i.e ROs backed by the general capital center and the newly issued SDROs out of capital center S In terms of issuer rating, however, thecredit strength of Danske Bank has to be taken into account due to the loan loss guarantee

REALKREDIT DANMARK'S COVERED BOND RATINGS

Source: Rating agencies, UniCredit Global Research

RATING AGENCIES' COMMENTS ON THE NEWLY ESTABLISHED COVERED BONDS ISSUED OUT OF CAPITAL CENTER S

Moody's

December 10, 2007

capital center S under the terms of the covered bonds program established by it The covered bond investors will benefit from: 1 The credit strength of Danske Bank A/S (Aa1; P-1, the "Sponsor Bank"); 2 The provisions of the Danish legal framework applying to the covered bonds (the "Danish Covered Bonds Law") 3 The credit quality of the pool of assets (the "Cover Pool") backing the covered bonds The cover pool has an average loan to value of approximately 53% The majority of the loans included in the cover pool is secured against residential and commercial real estate properties located in Denmark As is the case with other covered bonds, Moody's considers the transaction to be linked to the credit strength of the sponsor bank, particularly from a timeliness of payment prospective Should such credit strength deteriorate, all other things being equal, the rating of the covered bonds may be expected to come under negative pressure The ratings assigned by Moody's to the covered bonds address the expected loss in proportion to the principal amount experienced by investors

Moody's ratings address only the credit risks associated with the transaction Other non-credit risks have not been addressed, but may have

a significant effect on yield to investors

S&P

July 3, 2007

covered bonds; SDROs) to be issued by Realkredit Danmark A/S under its new capital center S register This is S&P's first covered bond rating under the amended covered bond law passed by the Danish legislators on June 6, 2007 (Act No 577 and associated executive orders), which were enacted on July 1, 2007 Following the enactment of the amended law, Realkredit Danmark will issue SDROs, which are CAD II-compliant covered bonds that only mortgage banks are allowed to issue Ratings will be assigned to each subsequent series that Realkredit Danmark issues under its capital center S register The collateral to be registered in the cover pool will comprise eligible Danish mortgage loans secured on mortgage deeds Realkredit Danmark is the second largest mortgage credit institution in Denmark and is a core subsidiary of Danske Bank A/S, the largest financial services group in Denmark and one of the leading financial conglomerates in the Nordic region

Source: Rating agencies, UniCredit Global Research