Annual Report 2025

Danske Hypotek AB (publ)

Contents

04

09

11

12

13

14

15

38

39

Management’s report

Corporate governance report

Income statement

Balance sheet

Statement of changes in equity

Cash ﬂow statement

Notes

Signing of the Annual Report

Auditor’s report

Danske Hypotek AB / Annual Report 2025

02

Company executives

Per Tunestam

Company Board of Directors

Nicklas Ilebrand

Chief Executive Ofﬁcer,

employed since 2016

Chairman of the Board (Head of Personal Banking Sweden,

Danske Bank A/S, Sverige Filial)

Peter Jönsson

Justin Fox

Chief Financial Ofﬁcer,

employed since 2017

Member (Head of Group Treasury, Danske Bank A/S)

Jacob Carlstedt

Tomas Renger

Chief Funding Manager,

employed since 2017

Member (Head of Personal Denmark & Private Wealth

Management Credit, Danske Bank A/S)

Kamilla Hammerich Skytte

Malin Hägglund

Member (Chief Executive Ofﬁcer, Realkredit Danmark)

Chief Operating Ofﬁcer,

employed since 2020

Kristian Bentzer

Member (Chief Executive Ofﬁcer, MissionPoint AB)

Joakim Olsson

Head of Credit,

employed since 2017

Auditors

Deloitte AB, Auditor-in-Charge Johan Stenbäck

Jonas Wikfeldt

Chief Funding Manager,

employed since 2017

Internal Auditor

Miriam Gyllenros

Other executives, on an assignment basis,

comprise the following individuals:

Head of Internal Audit,

employed in Danske Bank A/S, Sweden Branch

Anneli Virdenäs

Chief Risk Ofﬁcer,

Independent inspector

employed in Danske Bank A/S, Sverige Filial

The independent inspector appointed by the Swedish Financial

Supervisory Authority is Anneli Granqvist, PwC

Maria Hagel

Head of First Line Risk,

employed in Danske Bank A/S, Sverige Filial’

Romina Bolin

Head of Legal,

employed in Danske Bank A/S, Sverige Filial

Robert Höglund

Senior Compliance Ofﬁcer,

anställd i Danske Bank A/S, Sverige Filial

Danske Hypotek AB / Annual Report 2025

03

Management’s Report

The Board of Directors and Chief Executive Ofﬁcer of Danske Hypotek AB (publ.)

(corp. ID no. 559001-4154) hereby submit the Annual Report for 2025.

The company is a wholly owned subsidiary of Danske Bank A/S (corp. ID no. 61126228)

Background on the formation of Danske Hypotek AB

SEK million

2025

2024

2023

2022

2021

The Danske Bank Group has an explicit strategy to strengthen its

positions in the Swedish market. Danske Bank established

operations in Sweden in 1995 and conducts banking activities as

a branch of the Danish Parent Company. The growth of lending in

the Swedish market has been good in recent years. The Swedish

branch has successfully conducted mortgage loan business in

Sweden through a strong digital offer with the goal to successively

increase its market share, among other things through strategic

cooperation agreements with the trade unions Saco and TCO and

the Housing cooperation HSB.

Income statement

Total operating

income

636

758

919

1,106

-250

1,242

-125

Total expenses

-260

-243

-221

Loan impairment

charges

159,0

535

100,0

615

4,9

-2,0

854

-14,6

1,102

Proﬁt before tax

703

Balance sheet

Lending to the

public

147,367

154,620

150,140 142,113 131,635 124,444

157,342 150,634 140,958 131,229

Danske Hypotek is a wholly owned Swedish subsidiary of Danske

Bank A/S. In 2017 the Company received permits from Swedish

Financial Supervisory Authority to become a credit market

company, and be permitted to issue covered bonds. The primary

purpose of establishing the Company is to create long-term stable

ﬁnancing with regard to Swedish mortgage loans.

Total assets

Due to credit

institutions

30,301

40,602 34,711 29,693 26,644

Issued bonds.

Total liabilities

Total equity

114,910 107,059 105,082 98,020 97,309

145,936

8,686

149,081 142,862 133,744 124,693

8,261

7,772

7,214

6,536

The Swedish branch’s long-term growth in Sweden is supported

through the Company’s access to the Swedish benchmark market

for covered bonds. This way, the best possible conditions are crea-

ted for the Swedish branch to offer long-term competitive lending

to Swedish mortgage loan customers and owners of residential

properties in Sweden.

Key performance

indicators

Return on

equity, %

Return on total

assets, %

5,0

0,3

6,1

0,3

7,4

0,4

9,6

0,5

14,6

0,7

Investment

margin, %

0,4

0,5

0,3

0,6

0,2

0,9

0,2

1,0

0,1

Danske Hypotek’s operations

The Company’s operations primarily consist of acquiring Swedish

mortgage loans from Danske Bank A/S so that they can consti-

tute collateral for the covered bonds issued by the Company. The

Company does not conduct any new lending business of its own;

lending takes place in the Swedish branch. For information on the

Swedish branch, please refer to www. danskebank.se.

Expenses/Income

CET1 capital

ratio, %

Proportion of

impaired loans, %

20,7

18,8

19,0

19,5

18,3

0,2

0,0

0,2

0,0

0,2

0,0

0,4

0,0

0,7

0,0

Loan impairment

charge level

Average loan,

SEK thousands

1,270

1,253

1,159

1,079

1,039

Danske Hypotek’s ﬁrst covered bonds were successfully issued

at the end of August of 2017. The Company’s bonds received

a Aaa rating from Moody´s and a AAA rating from Nordic Credit

Rating. At the end of 2025, the total nominal outstanding amount

was SEK 113.9 billion distributed over ﬁve bond maturities. The

Company’s mortgage loans amounted to around SEK 147.4 billion

at the same time.

Average weighted

LTV in the cover

pool, %

55

56

59

54

The annual report contains a number of key performance indicators (so-called alterna-

tive performance measures – APMs), which provide further information about Danske

Hypotek. The APMs are calculated from the ﬁnancial statements without adjustment.

See Note 30 for a list of APMs.

Coordination with Danske Bank

The Company’s operations are coordinated with the Danske Bank

Group. A large part of the Company’s operations are conducted

using services procured and provided through various units within

the Danske Bank Group. These services are regulated through a

separate general outsourcing agreement and multiple underlying

service level agreements. The Company pays a fee for these ser-

vices. The Company also has access to ﬁnancing through Danske

Bank A/S and has entered into derivative agreements with Danske

Bank A/S to hedge its ﬁnancial risks.

Market and development

The housing market in 2025 was characterised by stable prices,

where global uncertainty was balanced by declining interest rates

towards the end of the year. The corporate sector’s investments

in housing have experienced a cautious recovery during the year.

Following the sharp interest rate hike in 2023, interest rates fell

almost as much in 2024. In 2025, the downward trend in interest

rates continued, reaching a level that encourages home purchases

Danske Hypotek AB / Annual Report 2025

04

and property investments. The loan-to-value ratio in Danske

Hypotek’s cover pool amounted to 55% at the end of 2025, which

is 1 percentage point lower than in 2024 when it was 56%. The

margin of security in the Company´s cover pool is reassuring.

shall be included as collateral in the cover pool that constitutes

the collateral for the issuance of covered bonds. Since 2022 the

Company has also included commercial real estate in the cover

pool, see note 14.

Proﬁt before tax

Danske Hypotek accordingly conducts no new lending, but rather all

new lending business is handled in Danske Bank’s Swedish branch.

All acquired mortgage loans have undergone Danske Bank’s credit

process, and all borrowers have been deemed to be able to pay

interest and instalments given interest rates that exceed by a good

margin the current level at the time credit is granted.

The 2025 operating proﬁt was SEK 535.5 million (614.9) and net

interest income amounted to SEK 621.9 million (756.3). The

negative development is mainly due to mortgage customer rates

decreasing at a faster pace than funding costs. The net income

from ﬁnancial transactions at fair value amounted to a gain of SEK

41.3 million (28.4) and is mainly the result of unrealized effects of

market valuation of bonds and derivatives and the realized result

of buy-back of issued bonds (see not 7). However, the realized part

was a cost of SEK 14.6 million. Net commissions amounted to an

expense of SEK 33.3 million (-32.2). Total income amounted to SEK

636.2 million (758.0) and total costs to SEK 260.2 million (243.1).

Costs consisted primarily of compensation to Danske Bank for ser-

vices rendered according to applicable outsourcing agreements,

the fee to the Resolution Fund and the Risk Tax for credit institu-

tions. The fee to the Resolution Fund amounted to SEK 48.4 million

during the year, and the Risk Tax to SEK 64.4 million. There were

also additional costs related to the Riksbank’s non-interest-bearing

deposit requirement (see note 9).

The acquired credits are managed by Danske Bank’s Swedish

branch, on behalf of Danske Hypotek through outsourcing

agreements. This means that notiﬁcation, management of received

payments of interest and instalments, extensions, credit follow-up,

etc. are managed by Danske Bank’s Swedish branch.

Credit portfolio

As of the end of December 2024, the total credit portfolio amoun-

ted to SEK 147,367 million (150,140). The portfolio consists

of mortgage loans for residential purposes. The geographic

distribution is concentrated to the metropolitan areas and

growth areas. The proportion of loan to personal customers was 80

percent (79). The repayment capacity is deemed to be very good

and the risk in the credit portfolio is deemed to be low.

Loan impairment charges refers to reversals of previous reserva-

tions of SEK 159.5 million (100.0). The reversals are mainly due to

assessed changes in credit risk for certain credit exposures. Most of

the reversals of from the commercial residential sector but also the

personal mortgage loan portfolio has contributed to the reversals.

Cover pool

As of 31 December 2025, the eligible mortgage loans are the

cover pool, which constitutes collateral for the issuance of covered

bonds, amounted to SEK 143,956 million, which corresponds

to more than 98% of the total mortgage loan portfolio. At 31

December, the average weighted loan-to-value ratio (LTV) amoun-

ted to 55% and the overcollateralisation level amounted to 26%.

The collateral consists of 30% tenant-owner apartments,

49% single-family homes and 21% rental properties. The revalua-

tion of the collateral is done continuously and an update.

Capital adequacy

Danske Hypotek’s total capital ratio and CET1 capital ratio

amounted to 18.8% (20.7) as of 31 December 2025. Net proﬁts

for 2025 are not included in the capital base. Internally assessed

capital requirements (including both Pillar 1, Pillar 2 and combined

buffer requirements) amounted to SEK ,332 million (6,332) as of 31

December 2025; the entire amount is covered by CET1 capital. For

more information on capital adequacy, see Note 3.

Cover Pool KPIs

Cover pool, SEK million

Average loan, SEK thousands

Number of loans

Number of borrowers

Number of properties

Average weighted LTV, %

Average seasoning, years

143,956

1,270

113,344

51,962

53,056

55

Lending

Danske Hypotek continuously acquires already granted and

established mortgage loans from Danske Bank’s Swedish branch,

where a mortgage deed in real estate or a pledged tenant-owner

right intended for residential purposes has been provided as col-

lateral. The purpose is that the acquired loans, in part or in whole,

5,3

Regional distribution

Volume,

Loan volume in cover pool by LTV interval

SEK Million

80 000

70 000

60 000

50 000

40 000

30 000

20 000

10 000

0

SEK million

Volume, %

Stockholm

Gothenburg

Malmoe

Southern Sweden

Western Sweden

Northern Sweden

Eastern Sweden

Outside Sweden

58,271

17,022

12,807

11,916

8,064

9,136

26,740

0

40%

12%

9%

8%

6%

19%

0%

Total

143,956

100%

< 20% 20-30% 30-40% 40-50% 50-60% 60-70% 70-75% 75-80%

Danske Hypotek AB / Annual Report 2025

05

Funding and liquidity

In May 2025, the bond DH3012 was introduced, DH 3012, and tap

issuances were carried out in this bond as well as other longer

bonds. A total of SEK 30.1 billion was issued during the year and

buy-backs amounted to SEK 23.5 billion were carried out, of

which SEK 10.5 billion related to the repayment of the outstan-

ding volume of the shortest bond, DH2512.

Funding

Danske Hypotek’s primary source of funding is through covered

bonds in the Swedish benchmark market. As a complement, the

Company also has access to ﬁnancing through Danske Bank A/S

in the form of a loan facility. Danske Hypotek had ﬁve bonds in

the market at the end of 2025.

Danske Hypotek intends to continue acting in a clear and trans-

parent manner in the market and thereby build, and keep, conﬁ-

dence among investors and market participants. The aim

is to thereby create long-term conditions for good liquidity and

competitive pricing in the Company’s bonds.

The Company launched its tenth bond, DH3012 (maturity date

2030-12-18. It was Danske Hypotek´s fourth bond under the new

EU regulation for covered bonds, Covered Bonds Directive (CDB).

Altogether, all bonds were very well received in the market and

subsequent so-called tap issues have continuously been carried

out at competitive pricing. At 31 December 2025, the total

out-standing nominal volume was SEK 113,894 million (107,308),

see Note 21.

Funding sources

(%)

Covered bonds

Loans from the

Parent Company

Loans from the

Parent Company*

Equity

The bond market in 2025 was generally well-functioning with

strong demand, although a period of increased uncertainty was

noted in April following the United States’ announcement of

extensive tariffs and the heightened risk of an escalating trade

war. This contributed to some turbulence in global ﬁnancial

markets. The Swedish Financial Supervisory Authority assessed

that the Swedish ﬁnancial markets managed the period relatively

well, despite signiﬁcant ﬂuctuations, and the Riksbank observed

that risk appetite in the ﬁnancial markets remained high during

2025. Danske Hypotek’s bonds were competitively priced during

the year in relation to other Swedish mortgage institutions.

6

4

16

74

Danske Hypotek have since the start in 2017, been determined

to establish itself as a long-term issuer in the Swedish covered

bond market. The strategy for this is to continuously conduct tap

issues in the Company’s outstanding bonds and to yearly intro-

duce at least one new bond in the market.

*Liability that can be written down (MREL)

Danske Hypotek AB / Annual Report 2025

06

Funding programs

The Company’s risk taking is low and limited within the fra-

mework of the Company’s risk tolerance. The Company’s risk

tolerance is documented annually in steering documents app-

roved by the Board. These steering documents comprise every

signiﬁcant risk category and contain explicit qualitative and/or

quantitative risk limits, all of which are within the scope of the

Company’s risk tolerance. The Company’s current risk situation

is monitored and followed up continuously by the function for

Risk and the respective risk owners (operational function heads).

The Company’s risk proﬁle in relation to risk tolerances is a conti-

nuous dialogue among management and the Board.

Besides the Swedish benchmark program, Danske Hypotek

established an international funding program. The intention of

the program is not that it should actively be used in the next few

years but rather is intended to provide the Company and the

Group additional preparedness and diversiﬁcation capacity.

Liquidity

Danske Hypotek’s liquidity portfolio consists solely of highly

liquid assets of very good quality. All assets have the highest

cre-dit ratings and are categorized as level 1a or 1b in the

Liquidity Coverage Ratio (LCR) according to the distribution in the

ﬁgure below. Danske Hypotek’s level 1a assets are comprised

of 100 % of Swedish government and municipal bonds. Level 1b

assets are comprised 100% of covered bonds in Swedish krona.

At 31 December 2025, the portfolio’s market value amounted

to SEK 5,236 million of which 49 percent are government and

municipal bonds and 51 percent are covered bonds (all assets

are in SEK). The main purpose of the portfolio is to fulﬁl regula-

tory requirements regarding LCR.

Principles of risk management

The Company manages and evaluates its risk exposure to risks

that the operations are exposed to in accordance with the fol-

lowing overall principles:

•

A high-risk awareness and sound risk culture shall be strived

for in the entire company.

Every employee has good understanding of the company’s

own operations and the risks associated with them.

The Company’s strategy, business model and values are the

starting points of the risk management.

There are clear and documented internal procedures and

control systems, including responsibilities and authorities.

Operational changes, such as new/changed services or

products, are reviewed according to documented processes.

Measurement methods and system support are adapted to

the operations’ needs, complexity and size.

Danske Hypotek’s liquidity portfolio

(%)

Level 1a

Level 1b

51

Incident reporting in the operations takes place according to a

documented process.

There are adequate resources and expertise to achieve desi-

red quality in both business activities and control activities.

The function for Risk is independent and responsible for conti-

nuously monitoring and reporting the signiﬁcant risks that the

Company is or may be exposed to.

•

An annual evaluation is done of what possible training needs

there are in the organization.

49

Risk-management process

The risk management process consists of the following steps:

1) identify, 2) measure, 3) handle, 4) control and 5) report risks.

The risk management process and resulting activities comprise

all lines of defense and all employees and are integrated into the

operations. In addition, the activities should be both proactive and

reactive, and include on-going, recurring and annual activities.

An annually recurring activity of signiﬁcance to the Company is

its Internal Capital and Liquidity Adequacy Assessment Process

(ICLAAP) report. The risk management process aims to both

manage identiﬁed risks and to identify new risks, for example

because of changes in products, processes and systems. Within

ICLAAP, prospective risk analysis shall also be done.

Rating

Danske Hypotek’s covered bonds have the highest credit rating,

Aaa rating from Moody´s and a AAA rating from Nordic Credit Rating.

Risk management

Danske Hypotek deﬁnes risk as a potentially negative impact

from an expected result. Given the activities conducted, the

Company is exposed to a number of risks and follows up and

handles them at several organisational levels. The main risk

categories are: Credit risk, Liquidity risk, Market risk and

Operational risk.

The risk management process comprises the respective risk

category, and how the various risks interact by calculating the

total risk situation and how it develops over time. The formats

for the continuous risk management process can differ between

different risks. The Risk function has the responsibility of moni-

toring overall risk.

As the Company is a part of the Danske Bank Group, the risk

management shall to the furthest extent possible be in line with

and follow the Group’s guidelines and policies for effective risk

management. The risk management follows a division of roles

and responsibility according to the principle of three lines of

defense. The division of roles and responsibility between the

various lines of defense provides a clear distinction in duties

between risk taking functions and the independent functions for

risk and regulatory compliance and for internal audit.

Risk measurement methods

Based on the Company’s risk proﬁle, every identiﬁed risk cate-

gory shall be quantiﬁed with a suitable measurement method

Danske Hypotek AB / Annual Report 2025

07

for the management and control of the risk. To ensure that the

risk measurement methods meet internal business require-

ments and external regulations, the company shall use several

different and supplementary risk measurements adapted to the

scope of and complexity in the activities conducted.

the Company’s portfolio is determined by the rate of lending

growth in the Swedish branch’s mortgage credit business. The

Company´s long term goal is to provide good liquidity in its

covered bond offering.

Since 2022, the Company has, beside mortgage loans to private

individuals, started to acquired loans to owners of multifamily

properties, such as property companies and tenant-owner

associations. These acquisitions are expected to continue in

the coming years. More detailed information on the Company’s

mortgage loans is available at www.danskehypotek.se.

Risk management system

The Company’s risk management system makes it possible to

continuously evaluate and assess the risks that the company’s

activities are associated with. The system is an integrated part

of the Company’s decision-making processes and contributes to

the targets of the Company’s activities being possible to achieve

with a higher degree of certainty. The risk management system

includes the strategies, processes and reporting procedures

that are necessary to continuously be able to identify, measure,

manage, control and report the risks that the activities are

associated with. The Company has also introduced methods and

procedures that are required to manage the risks related to the

Company’s operations. The Company’s risk management system

is not only structured to comply with regulatory requirements,

but also to meet internal needs and to follow generally accepted

market practice. The risk management system covers both the

risks that are covered by the capital requirement and other sig-

niﬁcant risks that the operations give rise to. For more informa-

tion on risk management in Danske Hypotek, refer to Note 2.

The geopolitically uncertain situation has not had and is not

expected to have any signiﬁcant negative impact on the com-

pany’s ability to issue bonds. It can be expected that the cost of

issuance will remain relatively stable but may be characterised

by some volatility.

The macroeconomic situation, with the risk of higher inﬂa-

tion and interest rates, along with higher unemployment and

declining property prices, may have a negative impact on credit

provisions for 2026.

Proposal on the appropriation of the Company’s

proﬁt or loss

The Board of Directors and CEO propose that non-restricted

equity, SEK 8,636,108,805, will be appropriated as follows:

Sustainability

In accordance with Chapter 7 Section 31 in the Annual Accounts

Act (Årsredovisningslagen), the Company does not prepare any

statutory sustainability report. The Parent Company, Danske

Bank A/S, with its registered ofﬁce in Denmark, prepares a sus-

tainability report for the Group of which Danske Hypotek is

a part. The Group’s sustainability report is available on Danske

Bank’s website, www.danskebank.com/societal-impact.

Amounts in SEK

Retained earnings

8,210,846,063

425,262,742

Net proﬁt for the year

Total

8,636,108,805

Carried forward to next year

Expected future volume development

During the next few years, the Company intends to offer

more bonds and gradually continue building up its volume

in the Swedish bond market. The possible rate of growth in

Total

Regarding the Company’s position and performance otherwise, please refer to the

following income statement and balance sheet with accompanying notes.

Danske Hypotek AB / Annual Report 2025

08

Corporate Governance Report

Danske Hypotek is a Swedish public credit market company, with

a registered ofﬁce in Stockholm, and wholly owned subsidiaryof

Danske Bank A/S. Danske Hypotek’s operations comprise the

issue of covered bonds and activities associated therewith.

•

Employees in the control functions do not perform duties

related to the operations that they monitor and control.

The functions are organisationally separated from functions

and areas they control,

The managers for each control function report directly to the

Board and are regularly present at Board meetings, and

The method for determination of remuneration of employees

in control functions does not and cannot put at risk their

objectivity.

Board of Directors and Chief Executive Ofﬁcer

Danske Hypotek’s Board of Directors has the overall responsibi-

lity for the company’s organisation and operations and ensures

that there is a suitable structure and organisation for internal

control and governance. The Board works for a sound corporate

culture where good internal control is promoted. The Board also

ensures that the systems for management and internal control

are effective and suitable considering the operations conducted.

The control functions’ work is regulated in steering documents

and annual plans for each function. The controls shall be done

regularly and continuously and identiﬁed signiﬁcant deﬁciencies

and risks shall be reported to Danske Hypotek’s Board and CEO.

To ensure that Danske Hypotek’s internal controls are updated,

effective and tailored to the operations, the Board regularly

evaluates, at least once a year, and when necessary, changes

internal guidelines.

The Risk function

The Risk function is responsible for monitoring and reporting

that all material risks that Danske Hypotek is subjected to

are identiﬁed and managed by relevant functions within the

company. The function also checks that Danske Hypotek’s

internal regulations and risk management limits are suitable and

effective and is responsible for proposing changes regarding

this if necessary. The Risk function also helps the company

with implementations of external requirements and regulations

in the risk area and contributes to a good risk awareness in

the organization. The head of the Risk function ensures that

information about Danske Hypotek’s risks is regularly reported

to the Board and CEO.

The Board of Directors regularly assesses the effectiveness of

Danske Hypotek’s framework for internal control of regulatory

compliance and risk management. In addition, the entire Board

constitutes the Audit Committee.

The Board is elected annually at the Annual General Meeting for

the period until the next Annual General Meeting has been held.

Danske Hypotek’s CEO is responsible for:

•

The operating management in accordance with the Board’s

guidelines, policy documents and other information, as well as

obligations within the scope of the CEO’s duties in accordance

with external regulations.

The Board’s guidelines for internal control being implemen-

ted in the operations and is thereby responsible for policy

documents, instructions, procedures and process descriptions

being implemented and executed in the company.

Promoting understanding of the internal regulations and

encouraging a corporate culture with a goal of good and

effective control.

Regulatory compliance

The function for regulatory compliance maps which risks there

are of deﬁcient regulatory compliance in the opera- tions and

ensures that these risks are managed by relevant functions

within the company. The function is responsible for control of

compliance to external and internal regulations and regularly

evaluates that Danske Hypotek’s measures regarding regulatory

compliance are suitable and effective. The function also evalu-

ates the measures that Danske Hypotek has taken to remove

deﬁciencies in compliance and gives advice and support to

Danske Hypotek’s employees, CEO and Board in terms of external

and internal rules. The function regularly reports, at least once a

year, to the Board and CEO.

•

Ensuring that the Board receives objective, detailed and

relevant information to make well-founded decisions.

Ensuring that the Board receives regular information on

Danske Hypotek’s development.

Internal audit

Auditors

Internal audit reports directly to the Board and constitutes the

Board’s tool for ensuring that the requirements on a sound and

effective internal control are met. The function is completely

organizationally separate from Danske Hypotek’s other func-

tions and operations.

The Annual General Meeting appoints external auditors for

Danske Hypotek. The 2025 Annual General Meeting appoin-

ted Deloitte AB as the auditor with Johan Stenbäck as the

Auditor-in-Charge.

Risk framework

Internal audit regularly reviews and evaluates that the internal

control of Danske Hypotek is effective and appropriate. This

includes regularly evaluating the company’s risk management,

compliance to internal regulations, ﬁnancial information and

checking the other two control functions.

Danske Hypotek has three control functions: the Risk function,

the function for regulatory compliance and the internal audit

function. The control functions are permanent, they have neces-

sary resources and are independent. In this context, independent

means that:

Danske Hypotek AB / Annual Report 2025

09

The function regularly reports, at least once a year, to the Board.

The reporting comprises planning, review and reporting as well

as proposals on measures.

In 2025, the cost for remuneration was SEK 341,000. Fixed

remuneration consists of a monthly salary that is adapted to the

market and based on the employee’s position, responsibilities,

expertise and performance. Danske Hypotek annually does a

documented analysis with the aim of identifying employees

whose work has a signiﬁcant impact on the company’s risk

proﬁle. Danske Hypotek shall provide information on the remu-

neration policy on its website. Danske Hypotek’s remuneration

principles are in accordance with the provisions in Regulation

(EU) No 575/2013 of the European Parliament and of the Council

and the Swedish Financial Supervisory Authority’s regulations

FFFS 2014:22, FFFS 2011:1 and FFFS 2020:30.

Independent inspector

According to the law regarding the issue of covered bonds,

the Swedish Financial Supervisory Authority appoints an

independent inspector for each issuer. The inspector’s mission

involves monitoring the register which the issuer is obliged to

maintain for the covered bonds, the cover pool and derivative

agreements and that it is properly maintained and in accordance

with the provisions of the law. The Swedish Financial Supervisory

Authority’s regulations FFFS 2013:1 describes the role and

mission of the independent inspector in greater detail. The

independent inspector reports directly to the Swedish Financial

Supervisory Authority.

Shareholders and the Annual General Meeting

The Board and auditors are elected by the Annual General

Meeting. The Board is responsible to the shareholders for Danske

Hypotek’s organisation and management and appointing a CEO

to manage the day-to-day operations. The auditors review the

ﬁnancial reporting and issue an auditor’s report.

The Swedish Financial Supervisory Authority appointed 2023

Anneli Granqvist, Authorized Public Accountant at PwC, as the

independent inspector for Danske Hypotek.

Every year at the Annual General Meeting, the owners of Danske

Hypotek pass resolutions appointing a Board, appointing

auditors, on remuneration for Board members, adoption of the

income statement and balance sheet, appropriation of proﬁts

and if the Board and CEO are granted discharged from liability for

the past year.

Remuneration principles

The remuneration that Danske Hypotek offers its employees

shall be such that Danske Hypotek can attract and retain com-

petent personnel. Employees shall be offered remuneration and

other beneﬁts that are reasonable and competitive in the market

in which Danske Hypotek is active.

Danske Hypotek AB / Annual Report 2025

10

Income statement

Jan.-Dec.

2025

Jan.-Dec.

2024

Amounts in SEK thousands

Note

Interest income calculated using the effective interest method

Other interest income

4

5

4,452,708

166,582

-3,997,436

621,854

325

5,550,004

1,222,335

-6,016,044

756,295

426

Interest expenses

Net interest income/expense

Fee income

Fee expenses

6

7

8

-33,652

41,309

6,339

-32,627

28,446

5,508

Net income from ﬁnancial transactions

Other income

Total operating income

636,176

-259,848

-312

758,048

-242,882

-214

General administrative expenses

Other operating expenses

Proﬁt before impairment charges

Loan impairment charges

Proﬁt before tax

9, 10, 11

376,016

159,472

535,488

-110,225

425,263

-

514,952

99,974

614,926

-126,478

488,448

-

Tax for the period

Net proﬁt for the year

Items that will not be reclassiﬁed to proﬁt or loss

Comprehensive income for the year

425,263

488,448

Danske Hypotek AB / Annual Report 2025

11

Balance sheet

31 Dec.

2025

31 Dec.

2024

Amounts in SEK thousands

Note

ASSETS

25, 26

Assets

Due from credit institutions

Lending to the public

Bonds and other interest-bearing securities

Other assets

13, 15

14, 15

16

599,463

147,367,464

5,236,229

1,341,216

75,254

774,667

150,139,928

4,743,221

1,587,305

96,622

17, 18

19

Prepaid expenses and accrued income

TOTAL ASSETS

154,619,626

157,341,743

LIABILITIES AND EQUITY

Liabilities

25, 26

20

Due to credit institutions

Issued bonds, etc.

30,301,076

40,602,253

21, 24

114,910,336

107,059,409

Other liabilities

17, 22

23

492,645

229,460

1,193,564

225,671

Accrued expenses and deferred income

Total liabilities

145,933,517

149,080,897

Equity

Share capital

50,000

8,210,846

425,263

50,000

7,722,398

488,448

Proﬁt/loss brought forward

Proﬁt/loss for the year

Total equity

8,686,109

8,260,846

TOTAL EQUITY AND LIABILITIES

154,619,626

157,341,743

Danske Hypotek AB / Annual Report 2025

12

Statement of changes in equity

Share capital

Proﬁt/loss

brought forward

Proﬁt/loss

for the year

Total equity

Amounts in SEK thousands

Opening balance 01/01/2025

Reversal of previous year’s proﬁt

50,000

7,722,398

488,448

8,260,846

-

488,448

-

-488,448

425,263

-

Proﬁt/loss for the period

425,263

Closing balance 31/12/2025

50,000

8,210,846

425,263

8,686,109

Share capital on the balance sheet date is represented by 500,000 class A shares of a nominal SEK 100.

Share capital

Proﬁt/loss

brought forward

Proﬁt/loss

for the year

Total equity

Opening balance 01/01/2024

Reversal of previous year’s proﬁt

50,000

7,164,197

558,200

7,772,398

-

558,200

-

-558,200

488,448

-

Proﬁt/loss for the period

488,448

Closing balance 31/12/2024

50,000

7,722,398

488,448

8,260,846

Share capital on the balance sheet date is represented by 500,000 class A shares of a nominal SEK 100.

Danske Hypotek AB / Annual Report 2025

13

Cash ﬂow statement

Jan.-Dec.

2025

Jan.-Dec.

2024

Amounts in SEK thousands

Operating activities

Operating proﬁt/loss

Adjustments for non-cash items, etc.

Payed taxes

535,488

-179,133

-126,476

614,926

-120,310

-144,664

Cash ﬂow from operating activities before changes in working capital

229,879

349,952

Change in operating activity assets

Change in lending to credit institutions

Change in lending to the public

Change in other investment assets

Change in other assets

-270,763

99,066

2,931,936

-513,422

-7,927,430

-114,719

262,307

1,076,771

Change in operating activity liabilities

Change in due to/from credit institutions

Change in issued bonds

-10,301,177

7,914,127

-698,855

5,891,459

2,045,452

-1,666,645

Change in other liabilities

Cash ﬂow from operating activities

Cash ﬂow from investing activities

-445,968

-

-246,094

-

Cash ﬂow from ﬁnancing activities

-

Cash ﬂow for the period

Cash and cash equivalents at the beginning of the year

-445,968

774,667

-246,094

1,020,761

Cash and cash equivalents at end of year*

328,699

774,667

* Cash and cash equivalents consist of balances with Group companies and are included in the item lending to credit institutions.

Speciﬁcations for the cash ﬂow statement

Cash and cash equivalents

31 Dec.

2025

31 Dec.

2024

Cash and cash equivalents consist of loans to credit institutions

328,698

774,667

Total

328,698

774,667

Jan.-Dec.

2025

Jan.-Dec.

2024

Interest, etc.

Interest received

Interest paid

4,640,690

-3,995,711

6,771,228

-5,998,945

Total

644,979

772,283

Jan.-Dec.

2025

Jan.-Dec.

2024

Adjustment for non-cash items

Loan impairment charges

-159,472

-42,786

23,125

-99,974

-36,324

15,988

Change in Accounting principle

Unrealised changes in value

Total

-179,133

-120,310

Danske Hypotek AB / Annual Report 2025

14

Notes

Note 1. Accounting Policies

FINANCIAL INSTRUMENTS

Amount in SEK thousands unless otherwise stated. Amounts in

parentheses refer to the ﬁgures for the previous year.

RECOGNITION OF ASSETS AND LIABILITIES IN THE

BALANCE SHEET

Danske Hypotek’s annual report has been prepared in accor-

dance with the Act 1995:1559 on the annual accounts

The Company only recognizes a ﬁnancial asset or ﬁnancial

liability in the balance sheet when the company becomes a party

to the contractual terms of the instrument. Financial assets are

recognized in the balance sheet when it is probable that the

future economic beneﬁts associated with the asset will accrue

to the Company and when the asset’s value or acquisition cost

can be reliably measured. A ﬁnancial liability is recognized in the

balance sheet when it is probable that, in order to fulﬁll an exis-

ting obligation, the Company will have to relinquish a resource

with a value that can be reliably measured.

of credit institutions and securities companies (ÅRKL), the

Swedish Financial Supervisory Authority’s regulations and

General Council FFFS 2008:25 Annual Report in credit institu-

tions and securities companies, The Financial Reporting Council

Recommendation RFR 2 Accounting for legal entities and

statements by The Financial Reporting Council. In accordance

with the General Council of the Swedish Financial Supervisory

Authority, Danske Hypotek applies so-called statutory IFRS. This

means that the international accounting standards and interpre-

tations of these standards adopted by the EU have been applied

to the extent possible within the framework of national laws and

regulations and the interconnection between accounting and

taxation. The reporting currency is SEK.

Purchases and sales of money and capital market instruments

and derivatives are recognized on the business day. Other

ﬁnancial assets and liabilities are normally recognized on the

settlement date. Financial assets are removed from the balance

sheet when the contractual rights to the cash ﬂows arising from

the asset cease or when all risks and beneﬁts associated with

the asset are transferred to others. Financial liability is removed

from the balance sheet when the obligation ends.

SIGNIFICANT REGULATORY CHANGES DURING THE YEAR

The International Accounting Standards Board (IASB) has issued

amendments to the existing standard IAS 21, Effects of Changes

in Foreign Exchange Rates. The amendments have no impact on

the ﬁnancial reports.

When a loan is renegotiated or otherwise modiﬁed, the Company

makes an assessment of whether the modiﬁcation results in the

removal of the loan from the balance sheet. A loan is considered

to be modiﬁed when the conditions and provisions governing

cash ﬂows are changed compared with the original contract.

Modiﬁed loans are removed from the balance sheet and a new

loan is reported when the existing loan is terminated and a new

agreement is concluded with substantially different conditions

or if the terms of an existing agreement are substantially modi-

ﬁed. Only modiﬁcations due to ﬁnancial difﬁculties in the case of

the borrower, including measures of distance, is not considered

to be essential in itself.

An amendment to the Sveriges Riksbank Act, effective from

1 January 2025, has enabled the Riksbank to decide on inte-

rest-free deposits. On 10 June 2025, the Riksbank decided that

all Swedish credit institutions and branches of foreign credit

institutions must maintain interest-free deposits in accounts at

the Riksbank starting from 31 October 2025. The amounts are

determined annually based on the so-called “deposit base” at

each year-end.

The forgone interest is reported as a government fee under the

line item “General administrative expenses.” The capital is repor-

ted under the line item “Loans to credit institutions.”

OFFSET OF ASSETS AND LIABILITIES

Financial assets and liabilities are offset in the balance sheet

when the Company has a contractual right to offset the items

and is intended to settle the payments at the same time as a net

amount. Offsetting of assets and liabilities in the balance sheet

have not occurred during 2025.

Apart from the above, no changes in Swedish regulations

adopted as of 1 January 2025 have had any material impact on

Danske Hypotek’s performance, ﬁnancial position, cash ﬂows or

disclosures

FORTHCOMING CHANGES TO ACCOUNTING POLICIES

CLASSIFICATION AND RECOGNITION OF FINANCIAL ASSETS

AND LIABILITIES

For measurement purposes, ﬁnancial assets are divided into the

following categories:

1. Financial assets measured at amortized cost

2. Financial assets measured at fair value through other com-

prehensive income

The International Accounting standards Board (IASB) has issued

two new standards (IFRS 18 and IFRS 19) and issued amend-

ments to existing standards (IFRS 7, IFRS 9), which have not yet

come into effect. None of the additions is expected to have a

material impact on Danske Hypotek’s ﬁnancial statements.

RECOGNITION OF ASSETS AND LIABILITIES IN FOREIGN

CURRENCY

3. Financial assets measured at fair value through proﬁt or loss

Transactions in foreign currencies in the nominal accounts are

translated into the reporting currency on the transaction date.

All assets and liabilities are valued at the reporting currency’s

exchange rate on the balance sheet date. Exchange rate diffe-

rences are recognized in the income statement.

Financial liabilities are divided into the following measurement

categories:

1. Financial liabilities measured at amortized cost

2. Financial liabilities measured at fair value through proﬁt

or loss

Danske Hypotek AB / Annual Report 2025

15

Financial assets are found in the categories lending to the

public, amounts due from credit institutions and bonds and

interest-bearing securities. Financial liabilities are comprised

of amounts due to credit institutions and issued securities. At

initial recognition, all ﬁnancial assets and liabilities are recogni-

zed at fair value. For assets and liabilities measured at fair value

through proﬁt or loss, the transaction costs are booked directly

in the income statement at the time of acquisition. For other

ﬁnancial instruments, the transaction costs are included in the

amortized cost.

The current market price is generally comprised of the current

buy price for ﬁnancial assets or current sales price for ﬁnancial

liabilities.

Financial instruments for which reliable information on market

price is unavailable, fair value is determined using valuation

models. The valuation models used are based on input data

that can essentially be veriﬁed by market observations, such as

market interest rates. When necessary an adjustment is done

for other variables that a market actor is expected to observe in

the pricing.

Financial assets measured at amortized cost

Assets in this category mainly comprise lending to the public

and credit institutions. Assets in this category are measured at

amortised cost when they in accordance with the Company’s

business model are held to obtain contractual cash ﬂows and

the agreed conditions only pertain to repayments and interest.

At the initial recognition, loans are valued at fair value, with

additions to transaction costs and deductions for charges which

form an integral part of the effective interest rate. This usually

corresponds to the amount paid to the customer. The loans

are then valued at amortized cost using the effective interest

method less impairment losses for expected credit losses. Loan

receivables in stage 3 are valued net, i.e. amortized cost less

credit reserves.

Danske Hypotek sets fair values for ﬁnancial instruments using

different methods depending on the degree of observability

of market data on the valuation and activity on the market. An

active market is considered to be either a regulated or reliable

trading place where prices recorded are readily available and

show a regularity. An ongoing assessment of the activity is

carried out by analysing factors such as differences in purchase

and sales rates. The methods are divided into three different

valuation levels:

Level 1: Unadjusted price, consists of ﬁnancial instruments that

are listed on an active market. The Company uses the price

recorded on the main market.

Financial assets measured at fair value through other

comprehensive income

Danske Hypotek has no assets measured at fair value through

Level 2: Adjusted price, price or valuation model with valuation

parameters derived from an active market but not a quoted

price for the instrument itself.

other comprehensive income.

Level 3: Valuation model where signiﬁcant valuation parameters

are not observable and hence based on internal assumptions.

Financial assets measured at fair value through proﬁt or loss

Assets in this category are mainly comprised of a liquidity port-

folio, which consists of bonds, where changes in fair value are

recognized in the income statement under the item Net income

from ﬁnancial transactions.

Level 1 contains holdings of bonds. These instruments are

valued at unadjusted quoted market prices.

Level 2 contains interest rate derivatives. Its fair value is deter-

mined by using discounted cash ﬂows. Cash ﬂows are discoun-

ted to the relevant valuation curve based on observable input.

Derivatives

All derivative contracts are measured at fair value. Changes in

fair value are recognized in the income statement under the item

Net income from ﬁnancial transactions.

Danske Hypotek has no ﬁnancial instruments valued at fair value

at level 3.

Financial liabilities measured at amortized cost

Financial liabilities measured at amortized cost, meaning the

discounted present value of future payment ﬂows, comprise the

ﬁnancial liabilities not measured at fair value through proﬁt or

loss. Liabilities in this category mainly comprise issued bonds.

Regarding bonds that have been bought back, the realized

market value differences are recognized in their entirety in proﬁt

or loss at the time of buyback and are included in the item Net

income from ﬁnancial transactions.

If the level of a ﬁnancial instrument differs from the level at the

beginning of the year, the level of the instrument will change.

Changes are considered to have taken place on the balance

sheet date. During the period, there have been no transfers of

ﬁnancial instruments between the various levels.

All purchases and sales of credits from and to Danske Bank

A/S’s Swedish branch take place at arm’s length. In connection

with the acquisitions, all risks and beneﬁts associated with the

credits are transferred to the buyer.

Financial liabilities measured at fair value through proﬁt or loss

comprise derivative instruments.

HEDGE ACCOUNTING

Danske Hypotek uses hedging of fair value for individual assets

and for portfolios of ﬁnancial instruments. The hedging instru-

ments in these hedging packages consist of interest rate swaps.

The hedge accounting includes that both the hedging instrument

and the hedged risk in the hedged item are revalued at fair value.

PRINCIPLES FOR MEASUREMENT OF FINANCIAL ASSETS AND

LIABILITIES

Fair value is deﬁned as the price which, at the time of valuation,

would be obtained on the sale of an asset or be paid on the trans-

fer of a liability through an orderly transaction between market

participants. For ﬁnancial instruments traded in an active

market, fair value is put on a par with the actual market price.

Value changes are recognized directly in the income statement

in the item Net proﬁt/loss in ﬁnancial transactions.

Danske Hypotek AB / Annual Report 2025

16

A prerequisite for applying hedge accounting is that the hedging

relationship has been formally identiﬁed and documented.

The efﬁciency of the hedge must be able to measure reliably

and expected to be effective, both forward and retroactive in

achieving countervailing effects in value changes.

Presentation of credit losses

Provisions for credit losses on ﬁnancial assets valued at amorti-

zed cost are presented in the balance sheet as a reduction in the

reported gross value of the asset. A write-off reduces the repor-

ted gross value of the ﬁnancial asset. In the income statement,

credit losses and disclaimers are presented as loan impairment

charges. The loan impairment charges for the period consist of

recorded losses and provisions for expected losses for granted

credits. Recoveries and reclaimed previously expected credit

losses are recognized as income within loan impairment char-

ges. Established loan losses are reported when the credit is sold

back to Danske Bank A/S.

LOAN IMPAIRMENT CHARGES

Reservations for loan impairment charges are dependent on

whether the loss risk have increased since initial recognition. If

the loss risk has not increased substantially, the credit reserva-

tions amount to anticipated losses in the next 12 months (stage

1). If loss risk increased substantially, or if a loan is overdue by

more than 30 days (stage 2), or if a loan is in default or otherwise

uncertain (stage 3), the credit reservations correspond to expec-

ted losses during the loan’s remaining duration.

Pledged assets

Loans included in the Company’s cover pool are regulated by the

Covered Bonds Issuance Act and through the Swedish Financial

Supervisory Authority regulations and general guidelines regar-

ding covered bonds. Danske Hypotek’s cover pool consists of

loans granted against mortgages of real estate, mortgages of

leaseholds or pledged tenant-owner rights, which are intended

for residential purposes and are located in Sweden. The loan can

be included in the cover pool insofar as the loan-to-value ratio is

within 80 percent of the market value. No loan receivables that

have been unsettled for more than 60 days are included in the

cover pool.

Assets that are credit impaired in connection with issuance or

purchase (purchased or originally created credit-impaired

facilities, POCI), expected credit losses are reported during the

remaining life of the asset.

The expected loan impairment charge is calculated individually

for all engagements, as a function of probability of default (PD),

exposure at default (EAD), and loss given default (LGD), and does

also include prospective factors. The assessment of expected

credit losses includes predictions of future economic condi-

tions over a period of years Such estimates are subject to the

management of the company, and its assessments may be tied

with uncertainty, which can entail signiﬁcant changes in the loan

impairment charges in upcoming ﬁnancial years. Forecasts of

future ﬁnancial conditions reﬂect the Company management’s

expectations and include three scenarios (base scenario, and

improved and degraded outcome), including an assessment of

the probability of each individual scenario. This gives an objec-

tive and probability-weighted expectation of credit losses.

REVENUE

Revenue is recognized in the income statement when it is likely

that future ﬁnancial beneﬁts will be achieved and these beneﬁts

can be reliably calculated. Compensation that comprises a part

of the effective interest rate for a ﬁnancial instrument measured

at amortized cost is allocated to periods in accordance with the

effective interest method.

Compensation attributable to a speciﬁc service or act is recog-

nized as revenue in connection with the service being rendered.

The Company’s revenues consist mainly of interest income.

The objective of using several scenarios is modelling a non-li-

near impact from macro-economic factors on the expected loan

impairment charges. At year-end 2024 the base scenario has a

60 percent probability (60), the scenarios for improved out-come

has a 20 percent probability (10) and degraded outcome has a 20

percent probability (20). The parameters used in the scenarios

are GDP, industrial production, inﬂation, 3-month and 10-year

interest, private consumption, index for housing prices and

unemployment ﬁgures.

Net interest income

In addition to interest income and interest expenses for ﬁnancial

instruments calculated according to the effective interest

method, interest related to derivative instruments that hedge

items whose interest ﬂows are reported in the net interest

income is reported in the net interest income. Interest income

calculated using the effective interest method is reported as

a separate item in the income statement. Interest income on

ﬁnancial assets at fair value through proﬁt or loss is recognized

under the item other interest income. The item interest expen-

ses include all interest expenses.

In order to assess the expected credit loss, the Company must

deﬁne what concerns a substantially increased credit risk. The

Company’s deﬁnition of substantially elevated credit risk, mea-

ning when loans are transferred from stage 1 to stage 2, is when a

loan’s 12-month PD increases by more than 0.5 percentage points

or the loan’s life-long PD is then doubled at initial recognition.

For credits with an original PD higher than 1.0 percent, there is a

transfer to stage 2 when the loan’s 12-month PD has increased

by more than 2.0 percentage points or the loan’s lifelong PD has

doubled. In addition to this, all loans overdue more than 30 days

are moved to stage 2. Loans that are in default are always placed

in stage 3. Default includes both credits that are overdue for

more than 90 days and credits that are unlikely to be paid by the

customer and therefore lead to default. Factors, individually or

combined, such as the borrower’s clear ﬁnancial problems, breach

of contract, or that it is probable that the borrower will enter

bankruptcy also entail that the loan is transferred to stage 3.

Net fee income

Income and expenses for various kinds of services are recog-

ni-zed in the income statement as commission income and

com-mission expenses. Among other things, this means that

reminder and claims fees are recognized as commission income

and fees to market makers are recognized as commission

expenses.

Net income from ﬁnancial transactions

All income and expenses that arise in a measurement of ﬁnancial

assets and liabilities at fair value as well as realized gains and

losses are recognized as net income from ﬁnancial transactions.

Danske Hypotek AB / Annual Report 2025

17

EMPLOYEE BENEFITS

or liability and its tax base. Tax expense is recognized in the

income statement as tax on net income for the year or in other

Total income or directly in equity in the balance sheet, depending

on where the underlying transaction is recognized.

Employees’ expenses include salaries, pension costs and other

forms of direct personnel costs, including social security contri-

butions and other payroll overhead costs. Danske Hypotek has

pension obligations that are secured in Danske Bank, Sweden

afﬁliate’s joint Pension Foundation. In Danske Hypotek, the

SIGNIFICANT ASSESSMENTS AND ASSUMPTIONS ABOUT

THE FUTURE

pension commitment is calculated according to the rules of

the Swedish Insurance Act. In the event of a deﬁcit in the fund’s

assets, the company is responsible for covering its part of the

deﬁcit, which means that a pension cost is recognized in the

income statement. The company also has deﬁned-contribution

pension plans, which are reported as current costs in net income

for the year at the rate of payment of the premiums, and are

included in net income for the year.

The application of the company’s accounting policies in some

cases requires assessments that have a material impact on

reported amounts. In addition, carrying amounts are required

by several cases of assumptions about the future. The assess-

ments and assumptions that are made always reﬂect the best

and most reasonable views of the management and are subject

to ongoing follow-up and review. The outcome may differ from

the reported values of assets and liabilities.

TAXES

The estimates and assumptions that have a material effect on

the ﬁnancial statements refer to the calculation of expected

credit losses. The model is described in more detail in the loan

losses section.

The tax expense for the period consists of current tax and defer-

red tax. Current tax is recognized as taxes that relate to taxable

proﬁt for the period or earlier periods. Deferred tax refers to

temporary differences between the carrying amount of an asset

Danske Hypotek AB / Annual Report 2025

18

Note 2. Risk management

The Group has developed a number of classiﬁcation models

for assessment of the customer’s PD and to divide the custo-

mers into different segments. Private customers are classiﬁed

through scoring models. Business customers are classiﬁed via

rating models.

Danske Hypotek identify and manage particular risks according

to the ways the Company may be exposed to an adverse effect

arising from these. The Company is exposed to a number of risks

and manages them on various organisational levels. Danske

Hypotek’s risk proﬁle is low and the main risk categories are 1.

Credit risk, 2. Market Risk, 3. Operational risk and 4. Liquidity risk.

The customer classiﬁcation model divides the customers into

11 categories, where category 1 is the most credit worthy and

category 11 represents customers that have defaulted.

1. Credit risks

Credit risk is deﬁned as the risk of loss due to a counterparty not

fulﬁlling all or parts of its payment obligation to the Company.

The principal risk incurred by Danske Hypotek is credit risk on

mortgage loans.

At the end of 2025, the weighted average PD for private custo-

mers was 0.20 percent (0.40) and 0.70 percent (1.1) for business

customers.

Danske Hypotek does not conduct any new lending business

itself but instead acquires existing mortgage loans from Danske

Bank A/S to include them in the Company´s cover pool. The

Company´s cover pool includes mortgage loans for residential

purposes to private customers and to owners of multi-family

houses.

Collateral

The primary method for mitigating credit risk is to ensure that

adequate collateral is obtained for the respective mortgage loan.

The Company’s mortgage portfolio mainly consists of mortgages

secured by single-family houses and tenant-owner rights to pri-

vate customers and to business customers mortgages secured

by multi-family houses. The collateral comprises to 49 percent

(49) of single-family houses, to 30 percent (30) of tenant-owner

rights and to 21 percent (19) of multi-family houses.

All acquired mortgage loans have been granted and established

via Danske Bank’s Swedish branch. The Danske Bank Group’s

prudent underwriting criteria comprises, among other things,

a maximum loan-to-value ratio of 85, minimum instalment

requi-rement, and servicing requirements on interest rates

well above the actual interest rate at the time of approval and

maximum debt to income ratio. If the credit risk for some reason

is deemed to be elevated, the granting mandate is moved to a

centrally located credit department within Danske Bank.

The market value of collateral is monitored and evaluated conti-

nuously by either internal or external appraisers, or by automatic

valuation models. The automatic valuation model evaluates

and updates the collateral value quarterly. The Group regularly

evaluates the validity of the external data on which the valuation

models build, and the models are validated annually. Regardless

of the valuation method, all collateral values are updated at least

annually.

The Danske Bank Group grants credits on the basis of infor-ma-

tion about customers’ individual ﬁnancial circumstances and

continuously monitors the ﬁnancial situation with the aim of

assessing if the customer’s prerequisites have changed.

For the cover pool, the weighted average loan-to-value ratio was

55 percent (56) at 31 December 2025.

Indebtedness shall correspond to the customer’s ﬁnancial situa-

tion based on their income, capital and assets and the customer

is deemed to have a long-term repayment capacity. The credit

risk is always mitigated by adequate collateral being provided

for the mortgage loans, which mitigates the risk upon a poten-

tial default. The Company’s mortgage loans are in Sweden and

concentrated to the metropolitan regions.

Counterparty risk

Derivative instruments are also comprised of credit risk.

Counterparty risk is the risk of a ﬁnancial loss on a derivative

transaction due to default by the counterparty. As such, coun-

terparty risk arises as a combination of credit risk (downgrading

of the counterparty’s credit rating) and market risk (the potential

value of the derivative contract). The ﬁnancial loss is the replace-

ment cost, i.e. the cost to replace an existing transaction with

a new transaction with similar characteristics, but at current

market prices.

The main credit risk is accordingly identiﬁed as the risks with

the borrowers’ creditworthiness, their ability to pay interest and

instalments and the value of pledged collateral. The credit risk

is limited and is on a portfolio level low as it primarily consists of

mortgage loans with low risk.

Counterparty risk arises from the derivatives and repo contracts

that the Company enters into to manage its ﬁnancial risks. All

risks that originate from derivatives and repo contracts are limi-

ted insofar as possible by covered ISDA and GMRA agreements

with the respective counterparties. The respective contracts

are offset before collateral is exchanged. This means that the

Company is exposed to as low a risk as possible. For more infor-

mation on Derivatives, see Note 17.

Customer classiﬁcation

The Danske Bank Group applies customer classiﬁcation models

as an important tool in the credit process. The purpose of the

classiﬁcation is to rank the customers based on a risk level and

estimate every customer’s probability of default (PD). As a part

of the credit process, the classiﬁcation is updated continuously

and upon new signiﬁcant information about the customer.

Danske Hypotek AB / Annual Report 2025

19

Table 1. Maximal credit exposure in the financing activities

Amounts in SEK million

31 Dec. 2025

31 Dec. 2024

Gross amount

Net amount

Gross amount

Net amount

Due from credit institutions

599

775

Bonds and other interest-bearing securities

Derivative instruments, part of Other assets

5,236

4,743

1,198

1,470

Total

7,033

6,988

Net amounts take into consideration collateral received or other credit insurance

The mortgage loan portfolio amounted to SEK 147,367 million. Reserves for expected credit losses amounted to SEK 318.2 million.

Table 2. Credit exposure per classification and credit step

Amounts in SEK million

Credit impaired assets

Classiﬁcation

Credit stage 1

Credit stage 2

Credit stage 3

upon issue or acquisition

Total

1

2

3

4

5

6

7

8

1,416

23,168

46,221

41,170

15,780

8,042

1,844

187

-

26

72

97

-

1

-

2

-

3

14

20

14

8

9

3

1

0

1,416

23,171

46,262

41,263

15,892

9,808

6,926

1,470

322

1,758

5,071

1,279

303

360

9

10

18

19

269

648

11

20

-

478

9

507

Total

137,886

8,966

752

82

147,685

Reserve for expected loan impairment

32

207

76

3

318

charges

Book value

137,854

8,759

676

79

147,367

Table 3. Credit exposure based on classification

The base scenario assumes that interest rate cuts have been

implemented and inﬂation returns to normal levels. The impro-

ved scenario presents a more positive outlook than the base

scenario, with improving global economic conditions, increased

demand, and slightly higher GDP growth. This scenario also

includes additional support for the property market while antici-

pating modest interest rate increases.

Amounts in SEK million

PD

Classiﬁcation

Lower

Upper

Exposure

1

2

–

0.01

0.03

1,416

23,170

46,258

41,257

15,884

9,784

6,810

1,426

310

3

0.03

0.06

4

0.06

0.14

The downside scenario envisions escalating trade tensions

leading to economic slowdown, weaker foreign demand, and

declining stock markets. The severely downside scenario ass-

umes a sharp global recession triggered by a global trade war

and supply chain issues, resulting in a deep economic downturn

characterised by falling demand, negative growth, and higher

unemployment. The weighting of these scenarios has been

updated compared to the previous year, and by the end of 2025,

a 25% (20) probability is assigned to an improved outcome, the

base scenario is weighted at 50% (60), the downside outcome

is weighted at 5% (a new scenario for 2025), and the severely

downside scenario is weighted at 20% (20).

5

0.14

0.31

6

0.31

0.63

7

0.63

1.90

8

1.90

7.98

9

10

7.98

25.70

100.00

25.70

99.99

100.00

617

11 (default)

435

Total exposure

147,367

Expected credit losses

Forward-looking assumptions and expectations on the

macro-economic development are driving expected credit

losses. This is from a weighted average assumption that creates

a base scenario, a negative scenario and a positive scenario

for the next coming three years. Largest impact comes from

negative expectations on the macro-variable house prices,

unemployment and the future interest rate development.

Compared to the previous year, the bank’s base scenario and

the improved scenario have been updated to reﬂect the bank’s

expectations of normalised inﬂation levels and rising house

prices. The improved scenario has also been assigned a higher

probability compared to the previous year.

At the end of 2025, Danske Hypotek had a reserve for expected

credit losses totaling SEK 318.2 million (322.5). To address risks

related to exposure to owners of multi-family properties (such

as higher ﬁnancing costs, vacancies, increased return requi-

rements, and other secondary effects related to geopolitical

uncertainty) that are not fully considered to be covered by the

credit risk models, a decision was made in 2025 to implement

expert adjustments to credit provisions (so-called post-model

adjustments) amounting to SEK 125 million (0).

Danske Hypotek AB / Annual Report 2025

20

Table 4. Credit exposure per Business Area

Amounts in SEK million

December 31 2025

Personal Customers

Gross amount

Expected credit losses

Net amount

Stage 2

Stage 1

Stage 2

Stage 3

421

Stage 1

Stage 2

Stage 3

Stage 1

Stage 3

363

114,200

3,129

14

79

58

114,186

3,050

Business Customers

Other

23,692

-7

5,910

-

340

-

17

-

128

-

21

-

23,675

-7

5,781

-

319

-

Total

137,886

9,039

761

32

208

79

137,854

8,831

682

Table 5. Receivables with overdue amounts

At the end of 2025, there were no exposures in excess of 10 %

after taking consideration of exemptions according to CRR.

Amounts in SEK million

2025

2024

2. Market risk

6-30 days

31-60 days

> 60 days

2.98

-

0.02

0.71

-

0.02

Market risk is the risk of loss due to unfavorable changes in ﬁnan-

cial market rates or prices. As the Company principally has liabi-

lities and assets in SEK, there is thereby no currency risk and the

market risk in the Company consists mainly of interest-rate risk.

The strategy is to interest hedge all material exposure through

swaps with Danske Bank and thereby keep the risks at a low level

and within the limits set by the Company’s Board. A parallel shift

of the interest rate curve by one percentage point yields an ear-

nings impact of SEK 147 million (142). For additional information

about exposures and hedging interest rate risk, see Note 17.

Total past due amounts

Total due under loans

3.00

0.73

35.18

82.62

For 2025 SEK 3.00 mio (0.73) is past due amounts on a total outstanding loan amoount

of SEK 35.18.

Impaired loans

Within the Group, impaired loans are deﬁned as credit step 3

expo-sure. At the end of 2025, exposure in step 3 classiﬁed

loans amoun-ted to SEK 761 million (1,225). The reduction is

driven by credit improvements in individual exposures.

3. Operational risk

Non-ﬁnancial risk refers to the risk of losses as a result of

unsu-itable or failed processes, people, systems or external

events, including legal risk. Non-ﬁnancial risk events refer to

events caused by operational risk that may have caused a

ﬁnancial loss (a loss event) or that may have had a regulatory

risk, reputation or customer impact (a non-ﬁnancial event) or

that may have caused a loss that was quickly recovered or could

have caused a loss that was not realized (a near-miss event).

Forbearance practices

Within the Group, customers can under certain circumstances

be granted adjusted loan terms as a result of ﬁnancial difﬁ-

cul-ties, such as if a customer has become unemployed.

Adjusted loan terms are mainly granted if the customer’s pro-

blems are considered to be temporary, but a restructuring can

also be granted if it is considered necessary to limit the Group’s

losses on an exposure. Shorter and temporary payment defer-

ment can also be a part of adjusted loan terms.

Non-ﬁnancial risk can arise in all activities. Danske Hypotek is

exposed to operational risk, mainly in outsourced activities and

processes. Non-ﬁnancial risk can also arise in changes in inter-

nal processes, personnel and systems and changes in the exter-

nal surroundings. Risks are prioritized for management based on

materiality. Danske Hypotek continuously works to develop the

risk culture, methods, tools and procedures to effectively and

proactively manage non-ﬁnancial risk.

Customers with adjusted loan terms will be downgraded to a

lower classiﬁcation. When the customer again can manage to

cover the loan without adjusted loan terms, the customer will,

after a certain monitoring period, no longer be considered to

have objective evidence for a loss event. The customer can then

be upgraded to a better classiﬁcation again.

Danske Hypotek uses the standardized approach for quantifying

the capital requirement for non-ﬁnancial risk.

At the end of 2025, Danske Hypotek had total exposure with

loans subject to forbearance measures of SEK 308 million (847).

This includes customers under probation that no longer consi-

dered credit impaired. No modiﬁcation gains or losses have been

made as part of the forbearance measures.

4. Liquidity risk

Liquidity risk is the risk that the Company does not have adequ-

ate ﬁnancial resources on the short term to meet its obligations

when they fall due for payment, or that the Company can have

access to these resources only at high expense.

Concentration risk

Concentration risk refers to outstanding individual exposure

in relation to the capital base. No large exposures over 20 per

cent of the Company’s capital base are accepted within the

Company’s operations after taking consideration of exemptions

according to CRR.

The Company strives to limit liquidity risk to the furthest

possible extent. This is mainly done by the Company holding a

portfolio consisting of high-quality liquid assets. Continu- ous

stress tests guarantee that the Company has adequate capacity

to be able to meet its payment obligations even in the extreme

scenario. The liquidity risk is also kept at low levels through risk

limits adopted by the Company’s Board of Directors.

Concentration risk and the exposure towards individual coun-

terparties are analyzed and monitored on an ongoing basis. The

capital requirement for concentration risk is evaluated on an

ongoing basis, and the risk is quantiﬁed as part of the capital

requirement under Pillar 2 (Note 3).

At the end of 2025, the Company had a liquidity portfolio that

amounted to SEK 5,236 million (4,743) and the Company’s liqui-

dity coverage ratio amounted to 1,869,718 percent (228) and the

net stable funding ratio amounted to 116 percent (127).

Danske Hypotek AB / Annual Report 2025

21

Table 6. Risk management – Liquidity risk

2025

Amounts in SEK million

< 3 months

3-12 months

1-5 years

>5 years

Total

ASSETS

Due from credit institutions

329

107,056

-

270

3,124

568

-

34,741

4,668

-

2,446

-

599

147,367

5,236

Lending to the public

Bonds and other interest-bearing securities

Total ﬁnancial assets

107,385

3,962

39,409

2,446

153,202

LIABILITIES

Due to credit institutions

1

-

8,400

21,900

91,200

-

30,301

Issued bonds, etc.

22,694

113,894

Total ﬁnancial liabilities

1

31,094

113,100

-

144,195

2024

Amounts in SEK million

< 3 months

3-12 months

1-5 years

>5 years

Total

ASSETS

Due from credit institutions

775

105,914

-

4,944

772

-

36,586

3,971

-

3,196

-

775

150,640

4,743

Lending to the public

Bonds and other interest-bearing securities

Total ﬁnancial assets

106,689

5,716

40,557

3,196

156,158

LIABILITIES

Due to credit institutions

2

-

40,600

89,000

-

40,602

Issued bonds, etc.

18,308

107,308

Total ﬁnancial liabilities

2

18,308

129,600

-

147,910

Table 7. Liquidity coverage ratio

Table 8. Net stable funding ratio

Amounts in SEK million

31 Dec.

2025

31 Dec.

2024

31 Dec.

2025

31 Dec.

2024

Amounts in SEK million

Total high-quality liquid assets

Total net cash outﬂows

133,101

114,405

116 %

145,927

114,627

127 %

Total available stable funding

Total required stable funding

Net stable funding ratio

5,051

0,3

4,722

2,071

228 %

100 %

Liquidity coverage ratio

1,869,718 %

100 %

Liquidity coverage ratio requirement

100 %

Net stable funding ratio requirement

Danske Hypotek AB / Annual Report 2025

22

As at 31 December 2025, Danske Hypotek’s capital base was

SEK 8,249 million and mainly consisted of CET1 capital, see table

3. Net proﬁt for 2025 is not included in the capital base.

Note 3. Capital adequacy

Capital management

The objective of capital management is to ensure effective capi-

tal use in relation to risk tolerance and development of the busi-

ness. Danske Hypotek must have adequate capital for following

statutory capital requirements.

Internal Capital and Liquidity Adequacy Assessment Process

(ICLAAP)

As a part of ICLAAP, Danske Hypotek assesses its total capital

and liquidity requirement based on internal models and makes

sure to use the right risk management systems. ICLAAP also

includes capital planning to ensure that Danske Hypotek

always has adequate capital and liquidity to support the chosen

strategy. Stress testing is an important tool used for capital

planning. Danske Hypotek’s total capital requirements were SEK

5,804 million as at 31 December 2025. As the capital base was

SEK 8,249 million, the Company has a large capital surplus.

Publication of the company’s capital management takes place

in accordance with the Swedish Financial Supervisory Authority

regulatory code (FFFS 2014:12, chapter 8) and the regulations

for Danske Hypotek’s capital management are rooted in the

Capital Requirements Regulation (CRR EU 575/2013) and the

Capital Requirements Directive (CRD EU 36/2013), which can be

divided into three pillars:

•

Pillar 1 contains a set of mathematical formulas for calcula-

tions of risk exposure amounts for credit risk, market risk and

operational risk. The minimum capital requirement is 8 % of

the total risk exposure amount.

Pillar 2 contains the framework for the content of the Internal

Capital Adequacy Assessment Process (ICAAP), including

iden-tiﬁcation of the credit institutions’ risks, calculation of

capital requirements and stress testing.

Total capital requirements and solvency need According to

Swedish legislation; every credit institution must show capital

requirements and capital adequacy. The capital requirement is

the total capital’s size, type and composition necessary to cover

the risks that an institution is exposed to. Danske Hypotek uses

the internal rating based (IRB) approach to calculate the risk

exposure amount for credit risks for household customers; for

other exposures, standard methods are used. Banks that use

the advanced approaches for calculating credit risk are subject

to limits on the reduction of their capital requirements. The risk

weight ﬂoor for mortgage loans is an example of this.

Pillar 3 is about market discipline and states disclosure

requi-rements for risk and capital management.

Further periodic information in accordance with Regulation (EU)

No 575/2013 of the European Parliament and of the Council on

prudential requirements for credit institutions and invest-ment

ﬁrms and Commission Implementing Reguation (EU) No

2021/637 is available at https://danskehypotek. se/ﬁnanci-

al-in-formation.

Combined buffer requirement

CRD IV introduced buffer requirements that apply besides the

capital requirement. The buffer requirements consist of a

countercyclical capital buffer, a capital conservation buffer

and a system risk buffer. The capital conservation buffer and

the countercyclical capital buffer are designed to ensure that

credit institutions accumulate an adequate capital base during

periods of economic growth to be able to absorb losses during

periods of stress. The capital conservation buffer is 2.5 % and

the counter-cyclical capital buffer is 2.0. Danske Hypotek has no

system risk buffer as it is not a systemically important ﬁnancial

institution.

While Pillar 1 entails the calculation of risks and capital requi-

re-ments based on uniform rules for all credit institutions,

Internal Adequacy Assessment Process (ICAAP), under Pillar 2,

takes consideration of the individual characteristics of a speciﬁc

institute and comprises all relevant risk types, including risks

not covered by Pillar 1.

Description of Capital

Leverage ratio

•

Common Equity Tier 1 capital (CET1 capital) consists of equity

after certain statutory supplements and deductions.

Tier 1 capital consists of loans included in the Tier 1 capital.

This means that it can be used to cover a loss of equity.

Tier 2 capital consists of subordinated liabilities with certain

limitations.

The leverage ratio is deﬁned as Tier 1 capital as a percentage of

total exposure calculated in accordance with CRR. The leverage

ratio does not take into account that different items in the credit

institutions balance sheets may have different degrees of risk.

The leverage ratio on 31 December 2025 were 5.2 percent (5.1).

A legal requirement of 3 % leverage ratio was implemented in

2021.

Total capital consists of CET1 capital, Tier 1 capital and Tier 2

capital less certain items.

Danske Hypotek AB / Annual Report 2025

23

Table 1. Risk exposure amounts and risk weights

Amounts in SEK million

31 Dec. 2025

31 Dec. 2024

Risk exposure Average risk

amount

weight (%)

amount

weight (%)

Credit risks

Institutions

–

Corporate customers

6,888

6

7,537

6

Household exposure

6,888

6

7,537

6

Advanced IRB method, total

333

6,582

120

12

23

709

9,785

229

32

30

Institutions

Corporate customers

Household exposure

Other

20

41

1100

8,135

100

33

1,100

11,822

100

43

Standardised method for credit risk, total

Additional risk weight amounts as per Article 458

(risk weight ﬂoor for Swedish mortgage loans)

22,354

21,829

37,377

863

41,188

1092

–

50

–

Credit risk, total

30

–

Counterparty risk, total

Market risk, total

–

1,569

39,809

1,452

43,732

Operational risk, total

Total risk exposure amount, REA

Table 2. Capital requirement

31 Dec.

2025

31 Dec.

2024

Amounts in SEK million

3,185

3,499

Capital requirment (8% av REA)

Pillar 2 add-ons

166

598

59

215

585

59

Credit Concentration risk add-on

Interest rate risk in banking book (IRRBB)

Information and communication technology risks (ICT)

823

859

Total Pillar 2 add-ons

Buffer requirements, % of REA

Capital conservation buffer

Countercyclical capital buffer

Combined buffer requirement

Buffer requirements, SEK m

2.50%

2.00%

4.50%

1,796

2.50%

2.00%

4.50%

1,974

5,804

6,332

Capital requirement including combined buffer

14.6%

6.2%

14.5 %

4.4 %

Capital ratio including combined buffer

Excess total capital, %

2,445

1,935

Excess total capital, SEK m

Danske Hypotek AB / Annual Report 2025

24

Table 3. Capital

Note 4. Interest income

31 Dec.

2025

31 Dec.

2024

Jan.-Dec.

2025

Jan.-Dec.

2024

Amounts in SEK million

Amounts in SEK thousands

Share capital

50

Lending to the public

4,395,152

57,556

5,450,553

99,451

Shareholders´ contribution

Retained earnings

3,400

4,811

3,400

4,323

Receivables/liabilities to credit

institutions – Group companies

Net proﬁt for the period

-

8,261

-13

488

8,261

-13

Receivables/liabilities to credit

institutions – Credit institutions

1,175

-

CET1 capital before legislative

adjustments

Interest bearing securities – bonds

107,005

102,310

Further value adjustments

Interest bearing securities

– underlying derivative

instruments

Negative amounts as a result of

calculation of expected loss

amounts

56,698

1,704

1,119,982

43

-17

-6

Other interest income

Other legislative adjustments

–

Total

4,619,290

6,772,339

CET1 capital

8,231

8,242

Tier 1 capital contribution:

Instruments and provisions

–

Tier 1 capital contribution:

Legislative adjustments

Note 5. Interest expenses

Jan.-Dec.

2025

Jan-Dec.

2024

Tier 1 capital

Tier 2 capital

8,231

–

8,242

–

Amounts in SEK thousands

Balances with foreign credit

Positive amounts as a result of

calculation of expected loss

amounts

institutions – Group companies

-832,627

-1,179,317

-2,470,893

18

25

Interest-bearing securities – bonds

-3,144,350

Other legislative adjustments

Total capital

–

8,249

–

8,267

Interest-bearing securities

– underlying derivative

instruments

-20,459

-

-2,365,834

-

Total risk-weighted assets

39,809

43,732

Other interest expenses

CET1 capital (as a percentage of

the risk-weighted exposure

amount)

Total

-3,997,436

-6,016,044

20.7%

18.8 %

Tier 1 capital (as a percentage

of the risk-weighted exposure

amount)

20.7%

20.8%

18.8 %

18.9 %

Total capital (as a percentage of

the risk-weighted exposure

amount)

Note 6. Fee expenses

Jan.-Dec.

2025

Jan.-Dec.

2024

Amounts in SEK thousands

Activity-based fee expenses

Table 4. Leverage ratio

31 Dec.

2025

31 Dec.

2024

Amounts in SEK million

Leverage ratio

Securities commissions

Payment brokerage commissions

Other commissions

-479

-

-397

-

-28,310

-27,409

Total exposure for leverage ratio

calculation

156,930

161,466

-28,789

-27,806

- of which derivatives

- of which securities

3,531

5,236

5,601

4,743

Portfolio-based fee expenses

Securities commissions

Other commissions

-363

-321

- of which items off the balance sheet

–

-4,500

Tier 1 capital (transitional rules)

Leverage ratio, (%)

8,231

5.2 %

3.0 %

8,242

5.1 %

3.0 %

-4,863

-4,821

Total

-33,652

-32,627

Leverage ratio requirement, (%)

Danske Hypotek AB / Annual Report 2025

25

Note 7. Net income from ﬁnancial

transactions

Note 10. Employees and personnel costs

Average number of employees

Jan.-Dec.

2024

Of wich

men

Of wich

men

Jan.-Dec.

2025

Jan.-Dec.

2024

Amounts in SEK thousands

2025

Capital gains/losses

Sweden

6

5

6

5

Interest-bearing securities

-6,031

-10,379

Totalt

6

5

6

5

Other ﬁnancial instruments,

derivatives

Gender distribution in company management

4,555

-

2,500

-

Currency

Jan.-Dec.

2025

Jan.-Dec.

2024

-1,476

-7,879

Unrealised changes in value

Proportion of women

Board

Other executives

45%

17%

60%

17%

Interest-bearing securities

63,200

68,491

Other ﬁnancial instruments,

derivatives

-20,414

42,786

41,309

-32,166

36,325

28,446

Salaries, other beneﬁts and social security expenses, including

pension expenses

Total

Jan.-Dec.

2025

Jan.-Dec.

2024

Amounts in SEK thousands

Chief Executive Ofﬁcer

1,844

1,768

Note 8. Other income

of which bonus and similar

compensation to the CEO

125

72

66

Jan.-Dec.

2025

Jan.-Dec.

2024

Board member, Extern

169

Amounts in SEK thousands

of which bonus and similar

compensation to the Board

Services performed for Group

companies

-

6 339

5 508

Other employees

5,171

5,392

Total

6 339

5 508

Total

7,087

2,410

619

7,329

2,410

576

Social security expenses

– of which CEO

Note 9. Administration expenses

Pensionskostnader

2,188

1,900

Jan.-Dec.

2024

Information on severance pay

to CEO

6 months’

salaryr

6 months’

salaryr

Amounts in SEK thousands

2025

Personnel costs

-11,683

-116,770

-64,384

-48,401

-11,639

-116,226

-63,180

-43,714

The Board and CEO comprise six (ﬁve) people. No remuneration was paid to Board

members employed in the Danske Bank Group.

Purchase of administrative services

Risk Tax

Other beneﬁts

Resolution fee

Jan.-Dec.

2025

Jan.-Dec.

Cost for deposit requirement to

the Riksbank*

Amounts in SEK thousands

2024

-4,700

-

Chief Executive Ofﬁcer

Board

212

-

71

-

Other expenses

-13,910

-8,123

Total

-259,848

-242,882

Speciﬁcation Personnel costs

Salaries and remuneration

Bonus costs

Loans to CEO and Board

Amounts in SEK thousands

CEO and Board

Information on assets pledged, etc.

and amounts for which collateral

provided

-6,674

-341

-6,807

-455

31 Dec. 2025

31 Dec. 2024

-

Social security contributions

Pension expenses

-2,410

-2,188

-70

-2,410

-1,900

-67

Other personnel costs

-

Loan terms and interest rates follow the Danske Bank Group’s normal terms for

personnel loans.

Total

-11,683

-11,639

* Since 2025, the Riksbank has had the right each year to require interest-free deposits

from credit institutions operating in Sweden. In connection with such deposits with

the Riksbank, Danske Hypotek AB (publ) records a statutory fee in connection with the

deposit, corresponding to the interest that would otherwise have been received on the

deposit during its term.

Pension expenses for CEO and the Board

Amounts in SEK thousands

31 Dec. 2025

31 Dec. 2024

Chief Executive Ofﬁcer

Board

446

-

435

-

Total

446

435

The company’s obligations regarding pension commitments for the CEO are secured through

a deﬁned-contribution plan and recognised as a running cost in net proﬁt for the year.

Danske Hypotek AB / Annual Report 2025

26

Note 11. Remuneration and expense

reimbursement for auditors

Note 13. Due from credit institutions

31 Dec.

2025

31 Dec.

2024

Jan.-Dec.

2024

Amounts in SEK thousands

2025

Lending in SEK

Deloitte AB

Interest-free lending at the Riksbank

270,765

-

Audit engagement

Other auditing activities

1,005

-

980

-

Foreign credit institutions,

Group companies

328,698

774,667

Total

1,005

980

Total

599,463

774,667

Audit assignments refers to the remuneration of the auditor for the statutory audit. This

work includes the audit of the annual report as well as the accounting, the Board’s and CEO’s

management and remuneration for audit advice that was provided in connection with the

audit assignment.

Of which lending at amortised cost

Lending at amortised cost, gross

270,767

Provision for expected credit losses

(credit stages 1-3)

Note 12. Tax on net proﬁt for the year

-2

-

Total

270,765

-

Jan.-Dec.

2025

Jan.-Dec.

2024

Amounts in SEK thousands

Average balance, loans to credit

institutions, Group companies

2,802,792

2,880,554

Current tax expense

Deferred tax

-110,225

-

-126,478

-

Tax on proﬁt/loss for the period

-110,225

-126,478

Reconciliation of effective tax

Jan.-Dec.

2025

Jan.-Dec.

2024

Amounts in SEK thousands

Proﬁt/loss before tax

535,488

110,310

62

614,926

126,675

4

Tax according to applicable

tax rate 20.6%

Non-deductible expenses,

tax effect

Non-deductible revenues,

tax effect

-147

-

-203

2

Correction, previous year’s tax

Reported effective tax

-110,225

-126,478

Note 14. Lending to the public

31 Dec.

2025

31 Dec.

2024

Amounts in SEK thousands

Lending in SEK

114,316,459

4,626,594

113,505,746

5,984,226

Swedish households excl. sole proprietors

Swedish sole proprietors

28,742,607

30,972,248

Swedish non-ﬁnancial companies

147,685,660

150,462,220

Total

Reservation for expected loan impairment charges in SEK

-135,347

-19,680

-168,848

-28,549

Swedish households excl. sole proprietors

Swedish sole proprietors

-163,169

-124,895

Swedish non-ﬁnancial companies

-318,196

-322,292

Total

147,685,660

-318,196

150,462,220

-322,292

Lending at accrued acquisition value, gross

Reservation for expected loan impairment charges (credit stage 1-3)

Lending at amortised cost, net

147,367,464

148,576,858

150,139,928

145,310,747

Average balance, lending to the public

Danske Hypotek AB / Annual Report 2025

27

Note 15. Lending to the public per credit stage

31 Dec.

2025

31 Dec.

2024

Amounts in SEK thousands

Credit stage 1

138,156,354

-31,685

Recognised gross amount

142,274,992

-40,645

Reserve for expected credit losses

Book value

138,124,669

142,234,347

Credit stage 2

9,038,720

-207,600

8,831,120

Recognised gross amount

6,961,733

-158,011

6,803,722

Reserve for expected credit losses

Book value

Credit stage 3

761,353

-78,913

Recognised gross amount

1,225,496

-123,637

Reserve for expected credit losses

Book value

682,440

1,101,858

Recognised gross amount (credit stage 1-3)

Reserve for expected credit losses (credit stage 1-3)

Total

147,956,427

-318,198

150,462,221

-322,293

147,638,229

150,139,928

Credit stage 1: Refers to expected loan impairment losses on possible defaults within the next 12 months.

Credit stage 2: Refers to expected loan impairment losses on possible defaults during the remaining lifetime. Refers to loans where there has been

a signiﬁcant increase of the credit risk since initial recognition.

Credit stage 3: Refers to expected loan impairment losses on possible defaults during the remaining lifetime. Refers to loans where repayment and

interest have not been paid in more than 90 days, and loans deemed to be in default. Factors, individually or combined, such as the

borrower’s clear ﬁnancial problems, breach of contract, or that it is probable that the borrower will enter bankruptcy also entail that

the loan is transferred to stage 3.

2025

Amounts in SEK thousands

Credit stage 1

Credit stage 2

Credit stage 3

Total

Opening balance January 1, 2025 lending to the public gross

142 274 992

6 961 733

1 225 496

150 462 221

Transferred to credit stage 1

Transferred to credit stage 2

Transferred to credit stage 3

New assets

2 775 289

-3 547 700

-92 607

-2 737 229

3 728 734

-316 303

3 186 498

-1 703 639

-

-38 060

-181 034

408 910

16 577

-664 740

-

30 608 650

-32 049 386

-

33 811 725

-34 417 765

-

Assets derecognised

Changes assignable to modiﬁed assets

Other changes*

-1 812 885

-81 074

-5 796

-1 899 755

Closiing balance December 31, 2025 gross

138 156 353

9 038 720

761 353

147 956 426

*) Includes loan repayments

2024

Amounts in SEK thousands

Credit stage 1

Credit stage 2

Credit stage 3

Total

Opening balance January 1, 2024 lending to the public gross

137 490 807

4 566 670

306 188

142 363 665

Transferred to credit stage 1

Transferred to credit stage 2

Transferred to credit stage 3

New assets

1 390 589

-3 410 131

-428 897

39 624 692

-25 232 779

-

-1 364 080

3 435 681

-120 904

1 967 761

-1 263 207

-

-26 509

-25 550

549 801

522 391

-79 475

-

42 114 844

-26 575 461

-

Assets derecognised

Changes assignable to modiﬁed assets

Other changes*

-7 159 289

-260 188

-21 350

-7 440 827

Closiing balance December 31, 2024 gross

142 274 992

6 961 733

1 225 495

150 462 222

*) Includes loan repayments

Danske Hypotek AB / Annual Report 2025

28

2025

Amounts in SEK thousands

Credit stage 1

Credit stage 2

Credit stage 3

Total

Opening balance for credit reservations, 1 January 2025

40,645

158,011

123,637

322,293

Transferred to credit stage 1

56,615

-7,008

-727

-51,949

18,342

-3,486

84,777

-2,028

-4,666

-11,334

4,213

-

Transferred to credit stage 2

-

Transferred to credit stage 3

Impairment charges for new loan receivables

Impairment charges for removed loan receivables

-91,924

-5,125

7,013

-134

-6,241

-13,394

Impact of net remeasurement of exprected credit losses

Write offs debited to the allowance account

Impact of modiﬁed allowance account

Foreigh exchange adjustments

-39,822

-53,439

-32,047

-125,308

-

Other changes

79,031

57,371

-1,661

134,741

Total impairment charges, 31 december 2024

31,685

207,599

78,914

318,198

“Impact of net remeasurement of expected credit losses” includes changes due to adjusted assumptions and macro scenarios. No material model changes or during 2024.

“Other changes” relates to expected credit losses at the time of purchase, for loans acquired during the year.

During 2025 it was decided to make expert adjustments (post-model adjustments). These amounted to SEK 125 million (0).

2024

Amounts in SEK thousands

Credit stage 1

Credit stage 2

Credit stage 3

Total

Opening balance for credit reservations, 1 January 2024

47,914

152,026

51,200

251,140

Transferred to credit stage 1

41,226

-3,099

-38,095

6,672

-3,131

-3,573

17,866

1,006

-

Transferred to credit stage 2

-

Transferred to credit stage 3

-1,388

-16,478

21,954

-42,568

Impairment charges for new loan receivables

Impairment charges for removed loan receivables

-53,601

-35,575

-30,641

-89,000

-10,857

Impact of net remeasurement of exprected credit losses

Write offs debited to the allowance account

Impact of modiﬁed allowance account

Foreigh exchange adjustments

-94,992

61,588

58,264

24,860

-

Other changes

140,160

12,912

12,862

165,934

Total impairment charges, 31 december 2024

40,645

158,011

123,637

322,293

“Impact of net remeasurement of exprected credit losses” includes changes due to adjusted assumptions and macro scenarios.

No model changes during 2024.

“Other changes” relates to expected credit losses at the time of purchase, for loans acquired during the year.

Amounts in SEK thousands

31 Dec. 2025

31 Dec. 2024

Loan-to-value ratio (LTV)

Gross amount

Impairment charge

Gross amount

Impairment charge

Less than 50%

51 - 70%

71 - 90%

140 118 708

5 211 904

995 665

2 455

123 591 759

19 089 866

4 936 904

444 176

3 011

13

4

-

29

4

-

91 - 100%

122 109

More than 100%

1 237 274

315 724

2 399 516

319 249

Total

147 685 660

318 196

150 462 221

322 293

At the time of loan origination, a maximum loan to value of 85% is applied. If the value of the collateral decreases, the loan to value can exceed 85%.

The table shows the distribution of lending to the public

Danske Hypotek AB / Annual Report 2025

29

Note 16. Bonds and other interest-bearing securities

31 Dec.

2025

31 Dec.

2024

Amounts in SEK thousands

2,046,911

1,330,333

Swedish municipalities and county councils

Other Swedish ﬁnancial companies

2,439,129

750,189

2,312,114

1,100,774

Other foreign issuers

Total

5,236,229

4,743,221

Fair value

Nominal value

Fair value

Nominal value

2,046,911

2,075,000

1,330,333

1,375,000

Swedish municipalities and county councils

Other Swedish ﬁnancial companies

Other foreign issuers

2,439,129

750,189

2,425,000

750,000

2,312,114

1,100,774

2,325,000

1,100,000

Total

5,236,229

5,250,000

4,743,221

4,800,000

Danske Hypotek AB / Annual Report 2025

30

Note 17. Financial instruments

Carrying amount of

hedging derivative

Carrying amount of

hedging derivative

Positive

market values

Negative

market

Positive

market values

Negative

market

Nominal

amount 2025

Nominal

amount 2024

Amounts in SEK thousands

2025 values 2025

2024 values 2024

Interest swaps

Other

262,257,400

-

1,198,354

490,277

-

259,263,454

-

1,469,601

1,177,872

-

1,198,354

-

1,469,601

Total

262,257,400

490,277

259,263,454

1,177,872

Currency distribution of market values SEK

490,577

1,177,872

Hedge accounting

Change in fair value

for the calculation of the

hedging efﬁciency

Carrying amount of the hedging derivative

Hedging derivative

Interest swaps, 2025

Interest swaps, 2024

Nominal amount

164,466,453

165,466,966

Assets

1,133,719

1,378,999

Liabilities

402,728

-417,955

-656,461

1,095,611

Change in fair value included in book

value of the hedged items

Carrying amount of hedged items

Change in fair value

for the calculation of the

hedging efﬁciency

Fixed interest-rate risk that has been

hedged

Assets

Liabilities

Assets

Liabilities

2025

Loan

40,253,607

-

-6,845

-

171,408

-546,257

Issued bonds

114,670,501

-

776,501

Total, 2024

40,253,607

114,670,501

-6,845

776,501

-374,849

2024

Loan

44,492,712

-

-178,253

-

936,017

Issued bonds

107,538,244

230,244

-1,618,179

Total, 2023

44,492,712

107,538,244

-178,253

230,244

-682,162

Effect on proﬁt of interest rate hedging

Jan.-Dec. 2025

Jan.-Dec. 2024

Effect of ﬁxed-rate assets hedging on proﬁt

Hedged loans

171,409

-171,472

936,017

-921,419

Hedging derivatives

Total

-64

14,598

Effect of ﬁxed-rate liability hedging on proﬁt

Hedged issued bonds

-546,257

589,427

-1,618,179

1,577,880

Hedging derivatives

43,170

-40,299

Total

The nominal value of the underlying instruments

<1 years

1-5 years

< 5 years

Remaining maturity 2025

,33,006,000,

,103,666,925,

,27,793,528,

Interest-rate risk arises in the lending portfolio for loans with ﬁxed interest for 1-5 years. Interest-rate risk for issued bonds arises when the interest on the bonds is ﬁxed. Hedge accounting takes

place at fair value through interest-rate swaps. Hedging pertains to interest-rate risk in the lending portfolio where ﬁxed interest of 1-5 years is swapped to 3-month stibor, and issued bonds

where ﬁxed interest is swapped to 3-months stibor. The effectiveness of the hedge accounting is measured on multiple occasions to ensure that changes in fair value of the hedged instruments

are within an interval of 80-125% of the change in fair value of the hedging derivative. The hedge effectiveness is affected by a change in fair value of the hedged instruments being measured

in accordance with the relevant interest rate curve for the hedged instruments, while changes in fair value of the hedging derivatives are based on a swap curve. Adjustment of the portfolio with

hedging instruments does not take place immediately, in connection with changes in the hedged items, which means that some inefﬁciency can arise in the hedge accounting.

Danske Hypotek AB / Annual Report 2025

31

Note 18. Other assets

Note 19. Prepaid expenses and

accrued income

Amounts in SEK thousands

31 Dec. 2025

31 Dec. 2024

Amounts in SEK thousands

31 Dec. 2025

31 Dec. 2024

Derivatives

1,198,354

9,023

1,469,601

115

Other receivables

Tax account

Interest

75,076

178

96,475

147

133,839

117,589

Personnel costs

Total

1,341,216

1,587,305

Total

75,254

96,622

Note 20. Due to credit institutions

Amounts in SEK thousands

31 Dec. 2025

31 Dec. 2024

Liabilities in SEK

Foreign credit institutions, Group companies

30,300,000

40,600,000

Foreign currency liabilities (EUR)

,

Foreign credit institutions, Group companies

1,076

2,253

Total

30,301,076

40,602,253

Average balance, due to credit institutions

29,903,235

27,063,974

Danske Hypotek AB / Annual Report 2025

32

Note 21. Issued bonds, etc.

31 Dec.

2025

31 Dec .

2024

Amounts in SEK thousands

113,894,000

114,910,336

114,133,835

118,948,203

107,308,000

107,059,409

106,730,033

116,852,151

Bonds in SEK

Total nominal value

Bonds in SEK

Total carrying amount

of which at amortised cost

Average balance issued bonds in SEK

107,059,409

30,050,000

-23,464,000

817,802

105,082,447

27,200,000

-27,502,000

561,651

Issued bonds at the end of the period

Issued nominal value

Buy backs

Premium/discount

447,125

1,717,311

Hedging of interest-rate risk at market value

114,910,336

107,059,409

Issued bonds at the end of the period

Bond list, covered bonds in SEK

31 Dec. 2025

Outstanding amount,

SEK 000s

Loan no.

Coupon rate, %

Loan date

Interest date

Maturity date

DH2612

0,50 %

3,50 %

3,25 %

3,00 %

2021-06-02

2022-09-09

2023-05-10

2024-04-16

2025-05-06

16 December

15 December

20 December

19 December

18 December

2026-12-16

2027-12-15*

2028-12-20*

2029-12-19*

2030-12-18*

22,694,000

22,200,000

27,250,000

29,450,000

12,300,000

113,894,000

DH2712

DH2812

DH2912

DH3012

* Extendable maturity

31 Dec. 2024

Loan no.

Outstanding amount,

SEK 000s

Coupon rate, %

Loan date

Interest date

Maturity date

DH2512

1,00 %

0,50 %

3,50 %

3,25 %

2020-05-12

2021-06-02

2022-09-09

2023-05-10

2024-04-16

17 December

16 December

15 December

20 December

19 December

2025-12-17

2026-12-16

2027-12-15*

2028-12-20*

2029-12-19*

18,308,000

27,850,000

18,900,000

26,250,000

16,000,000

107,308,000

DH2612

DH2712

DH2812

DH2912

* Extendable maturity

Note 22. Other liabilities

Note 23. Accrued expenses and

deferred income

Amounts in SEK thousands

31 Dec. 2025

31 Dec. 2024

Amounts in SEK thousands

31 Dec. 2025

31 Dec. 2024

Derivatives

VAT

490,277

2,103

215

1,177,872

2,501

Interest

Bank tax

Fee expenses

Personnel costs

Auditing expenses

Other

134,064

64,384

28,161

2,250

600

132,339

63,180

27,264

2,287

600

Personnel costs

Other

227

50

12,964

Total

492,645

1,193,564

1

Total

229,460

225,671

Danske Hypotek AB / Annual Report 2025

33

Note 24. Pledged assets, contingent liabilities and commitments

Amounts in SEK thousands

31 Dec. 2025

31 Dec. 2024

Pledged assets

Assets pledged for own liabilities

Other pledged assets and equivalent collateral

143,955,821

Inga

143,434,601

Inga

Contingency

Contingent liabilities

Commitments

Inga

Lending to the public have been provide as collateral for the issued covered bonds.

Note 25. Classiﬁcation of ﬁnancial assets and liabilities

Fair value through

proﬁt and loss

Amounts in SEK thousands

31 Dec. 2025

Amortised cost

Liabilities

Financial assets held to collect

Fair value

Hedge

Total

Assets

Due from credit institutions

Lending to the public

599,463

147,368,309

-

599,463

147,361,464

-6,845

Bonds and other

interest-bearing securities

-

5,236,229

-

5,236,229

1,198,354

Derivative

1,198,354

Total assets

147,967,772

-

5,236,229

1,191,509

154,395,510

Liabilities

Due to credit institutions

Issued bonds

Derivative

-

30,301,076

114,133,835

-

776,501

490,277

30,301,076

114,910,336

490,277

Total liabilities

-

144,434,911

-

1,266,778

145,701,689

Fair value through

proﬁt and loss

Amounts in SEK thousands

31 Dec. 2024

Amortised cost

Liabilities

Financial assets held to collect

Fair value

Hedge

Total

Assets

Due from credit institutions

Lending to the public

774,667

150,318,181

-

774,667

150,139,928

-178,253

Bonds and other

interest-bearing securities

-

4,743,221

-

4,743,221

1,469,601

Derivative

1,469,601

Total assets

151,092,848

-

4,743,221

1,291,348

157,127,417

Liabilities

Due to credit institutions

Issued bonds

Derivative

-

40,602,253

106,730,033

-

329,376

1,177,872

40,602,253

107,059,409

1,177,872

Total liabilities

-

147,332,286

-

1,507,248

148,839,534

Danske Hypotek AB / Annual Report 2025

34

Note 26. Fair value

Determination of fair value of ﬁnancial instruments

Danske Hypotek sets fair values for ﬁnancial instruments using different methods depending on the degree of observability of market data on

the valuation and activity on the market. An active market is considered to be either a regulated or reliable trading place where prices recor-

ded are readily available and show a regularity. An ongoing assessment of the activity is carried out by analysing factors such as differences

in purchase and sales rates. The methods are divided into three different valuation levels:

Level 1: Unadjusted price, consists of ﬁnancial instruments that are listed on an active market. The company uses the price recorded on the

main market.

Level 2: Valuation based on observable inputs consists of ﬁnancial instruments that are valued on the basis of observable inputs but which

are not a recorded price for the instrument itself. If a ﬁnancial instrument is listed on a market that is not active, the company bases its value

on the latest transaction price. Adjustments are made for subsequent changes in market conditions, e.g. by including transactions with simi-

lar ﬁnancial instruments. For a number of ﬁnancial assets and liabilities there is no market. In such cases, the company uses recent transac-

tions with similar instruments and discounted cash ﬂows or other generally accepted assessment and valuation techniques based on market

conditions at the balance sheet date to calculate an estimated value.

Level 3: Valuation model based on signiﬁcant non-observable input. Valuation of certain ﬁnancial instruments where signiﬁcant valuation

parameters are not observable is based on internal assumptions. Such instruments include unlisted shares and unlisted bonds.

Below is how the ﬁnancial instruments reported at fair value are distributed among the three different valuation levels.

Level 1 contains own issued securities traded on an active market and holdings of bonds. These instruments are valued at unadjusted quoted

market prices.

Level 2 contains interest rate derivatives. Its fair value is determined by using discounted cash ﬂows. Cash ﬂows are discounted to the

relevant valuation curve based on observable input.

Danske Hypotek has no ﬁnancial instruments valued at fair value at level 3.

There has not been any transactions of ﬁnacial intruments between the different levers during 2025.

Amounts in SEK thousands

31 Dec. 2025

Assets

Level 1

Level 2

Level 3

Total

Lending to the public

-

-6,845

-

-6,845

Bonds and other interest-bearing securities

Derivative

5,236,229

-

5,236,229

1,198,354

Total assets

5,236,229

1,191,509

-

6,427,738

Liabilities

Issued bonds

Derivative

-

776,501

490,277

-

776,501

490,277

Total liabilities

-

1,266,778

-

1,266,778

Amounts in SEK thousands

31 Dec. 2024

Assets

Level 1

Level 2

Level 3

Total

Lending to the public

-

-178,253

-

-178,253

Bonds and other interest-bearing securities

Derivative

4,743,221

-

4,743,221

1,469,601

Total assets

4,743,221

1,291,348

-

6,034,569

Liabilities

Issued bonds

Derivative

-

329,376

1,177,872

-

329,376

1,177,872

Total liabilities

-

1,507,248

-

1,507,248

Danske Hypotek AB / Annual Report 2025

35

Note 27. Transactions with related parties

Danske Bankkoncernen består av ett ﬂertal självständiga juridiska verksamheter. Vid handel mellan koncernens verksamheter, eller när en

verksamhet utför arbete åt en annan verksamhet, sker avräkning på marknadsbaserade villkor. Handel sker efter kontraktsbaserat avtal

mellan verksamheterna, om inte transaktionerna är av obetydlig storlek.

Purchases and sale within the Group

-

Of Danske Hypotek interest income, 2 percent (18) related to companies within the Danske Bank Group.

Of Danske Hypotek interest expenses, 21 percent (59) related to companies within the Danske Bank Group.

Of Danske Hypotek fee expenses, 20 percent (26) related to companies within the Danske Bank Group.

Of Danske Hypotek total purchases, 47 percent (49) related to companies within the Danske Bank Group.

Assets and liabilies within the Group

-

Of Danske Hypotek´s due from credit institutions, 55 percent (100) related to companies within the Group.

Of Danske Hypotek´s Other assets, 89 percent (93) related to companies within the Group.

Of Danske Hypotek´s due to credit institutions, 100 percent (100) related to companies within the Group.

Of Danske Hypotek´s other liabilities, 100 percent (99) related to companies within the Group.

Of Danske Hypotek´s daccrued expenses and deferred income, 11 percent (21) related to companies within the Group.

Note 28. Signiﬁcant events after the end of the ﬁnancial year

At the beginning of 2026, two extra AGMs were held. In one, Nicklas Ilebrand was elected as the new chair of the board, succeeding

Anna-Lena Axberger, and Justin Fox was elected as a board member. At the other general meeting, Kim Borau resigned as a board

member. The decisions were registered with Bolagsverket in January and February.

Note 29. Group information

The company is a wholly owned subsidiary of Danske Bank A/S, corp. ID no. 61126228 with its registered ofﬁce in Copenhagen, Denmark.

The foreign Parent Company’s ﬁnancial statements are available from Danske Hypotek AB.

Note 30. Deﬁnitions of KPIs and APMs

Exposure at default

(EAD)

Total outstanding exposed value of a loan in the event of the loan’s default

CET1 capital

CET1 capital is a subcomponent of the capital base and consists primarily of equity. Deduc-

tions are made for earned dividend, goodwill and other intangible assets and the difference

between anticipated losses and impairment charges made for probable credit losses.

CET1 capital ratio

CET1 capital in relation to the risk exposure amount.

Liquidity coverage ratio

(LCR)

This ratio describes the ability of the company’s qualiﬁed liquid assets to ﬁnance the com-

pany’s liquid outﬂow in the upcoming 30 days.

Loss given default

(LGD)

What percentage of the loans granted that the company is expected to lose in the event of

the counterparty’s default.

Average weighted loan-to-value in the

Size of loans in relation to the market value of underlying assets

cover pool, %

(LTV)

Probability of default

(PD)

Ratio that shows the probability of payment cancellation at the customer in accordance

with the internal risk model.

Alternative performance measures

Danske Hypotek AB prepares the annual report in accordance with International Financial Reporting Standards (IFRS) issued by the International

Accounting Standards Board (IASB), as in Note 1. The annual report contains a number of alternative performance measures that the manage-

ment deems provides valuable information to the reader since they are used by the management for internal governance and results follow-up

and also for comparisons between periods. The APMs below are calculated from the ﬁnancial statements without adjustment.

Danske Hypotek AB / Annual Report 2025

36

Proportion of impaired loans

Return on total assets

Leverage ratio

Carrying amounts of impaired loans, gross, in relation to the carrying amount of amounts

due from credit institutions and the public excluding reservations.

Operating proﬁt/loss after tax in relation to average total assets. The average value is the

sum of the year’s opening and closing value divided by two.

Tier 1 capital in relation to the total exposure measurement, where the exposure measure-

ment includes both assets and items outside the balance sheet.

Average loan

The cover pool in relation to the number of loans.

Average weighted loan-to-value ratio

For every loan: Loan amounts (plus loans with better internal position) in relation to the

market value of underlying collateral. The portfolio’s loan-to-value ratio is then calculated

as a weighted average.

E/I ratio

The total operating expenses before loan impairment charges in relation to total

operating income.

Loan impairment charge level

Investment margin

Loan impairment charges in relation to total lending (closing balance)

Net interest in relation to average total assets. The average value is the sum of the year’s

opening and closing value divided by two.

Loan Impairment charges as %

of impaired loans

All impairment charges in relation to impaired loans gross.

Return on equity

Operating proﬁt/loss after tax in relation to average equity. The average value is the sum of

the year’s opening and closing value divided by two.

Danske Hypotek AB / Annual Report 2025

37

Signatures

The annual report is dated March 26, 2026.

Stockholm on

Nicklas Ilebrand

Justin Fox

Chairman of the Board

Jacob Carlstedt

Kamilla Hammerich Skytte

Kristian Bentzer

Per Tunestam

Chief Executive Ofﬁcer

Our auditor’s report was submitted on

Deloitte AB

Johan Stenbäck

Authorised Public Accountant

Danske Hypotek AB / Annual Report 2025

38

Auditor’s report

To the general meeting of the shareholders of Danske Hypotek AB (publ) corporate identity

number 516401-9852

Assessments and estimates regarding measurement of loan

receivables

Report on the annual accounts

Recognition and measurement of loan receivables are an area

that largely affects Danske Hypotek’s ﬁnancial position and

Opinions

We have audited the annual accounts of Danske Hypotek AB

performance. IFRS 9 is a complex accounting framework that

(publ) for the ﬁnancial year 2025 with the exception of the cor-

requires signiﬁcant assessments by the bank’s management to

porate governance report on pages 9-10. The company’s annual

determine the size of the reserve for expected credit losses.

report is included on pages 4-38 in this document.

Signiﬁcant assessments include:

In our opinion, the annual accounts have been prepared in accor-

dance with the Annual Accounts Act for Credit Institutions and

•

Interpretation of the requirements to establish the size of the

reserve for expected credit losses according to IFRS 9, which is

reﬂected in the bank’s model for the calcula¬tion of expected

credit losses.

Identiﬁcation of exposures with signiﬁcant deterioration of

credit quality.

Assumptions applied in the model for calculation of expected

credit losses, such as the counterparty’s ﬁnan¬cial position,

expected future cash ﬂows and prospective macroeconomic

factors.

Securities Companies and present fairly, in all material respects,

the ﬁnancial position of Danske Hypotek AB (publ) as of 31

December 2025 and its ﬁnancial performance and cash ﬂow for

the year then ended in accordance with the Annual Accounts Act

for Credit Institutions and Securities Companies. Our opinions do

not cover the corporate governance statement on pages 9-10.

The statutory administration report is consistent with the other

parts of the annual accounts.

•

We therefore recommend that the general meeting of sharehol-

ders adopts the income statement and balance sheet.

Our opinions in this report on the annual accounts and consoli-

dated accounts are consistent with the content of the additional

report that has been submitted to the parent company’s Board

of Directors in accordance with the Audit Regulation (537/2014)

Article 11.

At 31 December 2025, lending to the public amounted to 147

367 MSEK with a reserve for expected credit losses of 318 MSEK.

Given the lending’s substantial share of the total assets, the

impact the inherent uncerta¬inty and subjectivity involved in the

assessment of credit losses, and that the disclosure require¬-

ments under IFRS9 are substantial, we believe that this is a key

audit matter in our audit.

Basis for Opinions

We conducted our audit in accordance with International

Standards on Auditing (ISA) and generally accepted auditing

standards in Sweden. Our responsibilities under those standards

are further described in the Auditor’s Responsibilities section.

We are independent of Danske Hypotek AB (publ) in accordance

with professional ethics for accountants in Sweden and have

otherwise fulﬁlled our ethical responsibilities in accordance with

these requirements. This includes that, based on the best of our

knowledge and belief, no prohibited services referred to in the

Audit Regulation (537/2014) Article 5.1 have been provided to the

audited company or, where applicable, its parent company or its

controlled companies within the EU.

Our audit measures have comprised, but not consisted solely of:

•

We have evaluated that key controls in the credit loss process

have been appropriately designed and effective during the

year; including key controls for approval, registration and fol-

low-up of loan receivables and key controls over input data and

assumptions used in the models for calculation of the reserve

for expected credit losses.

•

We have evaluated, with the support of specialists, the

modelling techniques and the model methods against the

requirements in IFRS 9. We have examined the appropriate-

ness of a selection of the underlying models, which have been

developed for the calculation of the reserve for expected

credit losses. We have evaluated signiﬁcant assumptions that

formed the basis of an assessment of signiﬁcant deterioration

of credit quality, probability of default and loss given default.

We have involved our IT specialists and formulated auditing

procedures to test that identiﬁed key controls are effective

during the year for the IT applications used in the calculation of

the reserve for expected credit losses.

We believe that the audit evidence we have obtained is sufﬁcient

and appropriate to provide a basis for our opinions.

Key audit matters

•

Key audit matters of the audit are those matters that, in our

professional judgment, were of most signiﬁcance in our audit

of the annual accounts of the current period. These matters

were addressed in the context of our audit of, and in forming our

opinion thereon, the annual accounts as a whole, but we do not

provide a separate opinion on these matters.

Lastly, we have examined the completeness and relia¬bility of

the disclosures for the reserves for expected credit losses to

assess compliance with the disclosure requirements in accor-

dance with IFRS.

Danske Hypotek AB / Annual Report 2025

39

Other information than the annual accounts and consolidated

accounts

year 2025 and the proposed appropriations of the company’s

proﬁt or loss.

This document also contains other information than the annual

accounts and is found on pages 1-3. The Board of Directors and

the Managing Director are responsible for this other information.

Our opinion on the annual accounts does not cover this other

information and we do not express any form of assurance con-

clusion regarding this other information.

We recommend to the general meeting of shareholders that the

proﬁt to be appropriated in accordance with the proposal in the

statutory administration report and that the members of the

Board of Directors and the Managing Director be discharged from

liability for the ﬁnancial year.

In connection with our audit of the annual accounts, our respon-

sibility is to read the information identiﬁed above and consider

whether the information is materially inconsistent with the

annual accounts. In this procedure we also take into account our

knowledge otherwise obtained in the audit and assess whether

the information otherwise appears to be materially misstated.

Basis for Opinions

We conducted the audit in accordance with generally accepted

auditing standards in Sweden. Our responsibilities under those

standards are further described in the Auditor’s Responsibilities

section. We are independent of Danske Hypotek AB (publ) in

accordance with professional ethics for accountants in Sweden

and have otherwise fulﬁlled our ethical responsibilities in accor-

dance with these requirements.

If we, based on the work performed concerning this information,

conclude that there is a material misstatement of this other

information, we are required to report that fact. We have nothing

to report in this regard.

We believe that the audit evidence we have obtained is sufﬁcient

and appropriate to provide a basis for our opinions.

Responsibilities of the Board of Directors and

the Managing Director

Responsibilities of the Board of Directors and

the Managing Director

The Board of Directors and the Managing Director are respon-

sible for the preparation of the annual accounts and that they

give a fair presentation in accordance with the Annual Accounts

Act for Credit Institutions and Securities Companies. The Board

of Directors and the Managing Director are also responsible for

such internal control as they determine is necessary to enable

the preparation of annual accounts that are free from material

misstatement, whether due to fraud or error.

The Board of Directors is responsible for the proposal for app-

ropriations of the company’s proﬁt or loss. At the proposal of a

dividend, this includes an assessment of whether the dividend

is justiﬁable considering the requirements which the company’s

type of operations, size and risks place on the size of the compa-

ny’s equity, consolidation requirements, liquidity and position in

general.

The Board of Directors is responsible for the company’s orga-

nization and the administration of the company’s affairs. This

includes among other things continuous assessment of the

company’s ﬁnancial situation and ensuring that the company’s

organization is designed so that the accounting, management of

assets and the company’s ﬁnancial affairs otherwise are control-

led in a reassuring manner. The Managing Director shall manage

the ongoing administration according to the Board of Directors’

guidelines and instructions and among other matters take mea-

sures that are necessary to fulﬁll the company’s accounting in

accordance with law and handle the management of assets in a

reassuring manner.

In preparing the annual accounts, The Board of Directors and

the Managing Director are responsible for the assessment of the

company’s ability to continue as a going concern. They disclose,

as applicable, matters related to going concern and using the

going concern basis of accounting. The going concern basis of

accounting is however not applied if the Board of Directors and

the Managing Director intends to liquidate the company, to cease

operations, or has no realistic alternative but to do so.

Auditor’s responsibility

Our objectives are to obtain reasonable assurance about whether

the annual accounts as a whole are free from material missta-

tement, whether due to fraud or error, and to issue an auditor’s

report that includes our opinions. Reasonable assurance is a high

level of assurance but is not a guarantee that an audit condu-

cted in accordance with ISAs and generally accepted auditing

standards in Sweden will always detect a material misstatement

when it exists. Misstatements can arise from fraud or error and

are considered material if, individually or in the aggregate, they

could reasonably be expected to inﬂuence the economic deci-

sions of users taken on the basis of these annual accounts.

A further description of our responsibility for the audit of the

administration can be found on the Auditors’ Inspectorate’s

website: www.revisorsinspektionen.se/revisornsansvar. This

description is part of the auditor’s report

Auditor’s responsibility

Our objective concerning the audit of the administration, and

thereby our opinion about discharge from liability, is to obtain

audit evidence to assess with a reasonable degree of assurance

whether any member of the Board of Directors or the Managing

Director in any material respect:

•

has undertaken any action or been guilty of any omission

which can give rise to liability to the company, or

in any other way has acted in contravention of the Companies

Act, the Annual Accounts Act for Credit Institutions and Securi-

ties Companies or the Articles of Association

Our objective concerning the audit of the proposed appropri-

ations of the company’s proﬁt or loss, and thereby our opinion

about this, is to assess with reasonable degree of assurance

whether the proposal is in accordance with the Companies Act.

Report on other legal and regulatory requirements

Opinions

In addition to our audit of the annual accounts, we have also

audited the administration of the Board of Directors and the

Managing Director of Danske Hypotek AB (publ) for the ﬁnancial

Reasonable assurance is a high level of assurance, but is not a

guarantee that an audit conducted in accordance with gener-

Danske Hypotek AB / Annual Report 2025

40

ally accepted auditing standards in Sweden will always detect

actions or omissions that can give rise to liability to the company,

or that the proposed appropriations of the company’s proﬁt or

loss are not in accordance with the Companies Act.

national Standards on Auditing and good auditing practice in

Sweden. We believe that this review provides us with a sufﬁcient

basis for our statements.

A corporate governance report has been prepared. Information

in accordance with ch. 6 Section 6, second paragraph, items 2–6

of the Annual Accounts Act and Chapter 7 Section 31, second

paragraph, of the same Act is compatible with the other parts of

the annual report and is in accordance with the Annual Accounts

Act for Credit Institutions and Securities Companies.

A further description of our responsibility for the audit of the

administration can be found on the Auditors’ Inspectorate’s

website: www.revisorsinspektionen.se/revisornsansvar. This

description is part of the auditor’s report.

The auditor’s review of the corporate

governance report

Deloitte AB, was appointed auditor of Danske Hypotek AB (publ)

by the Annual General Meeting on March 27, 2025 and has been

the company’s auditor since May 5, 2016.

The Board of Directors is responsible for the corporate gover-

nance report on pages 9-10 and for preparing it in accordance

with the Annual Accounts Act.

Stockholm, date according to the digital signature

Deloitte AB

Our review has taken place in accordance with FAR’s statement

RevR 16 Auditor’s review of the corporate governance report.

This means that our review of the corporate governance report

has a different focus and a signiﬁcantly smaller scope compared

with the focus and scope of an audit in accordance with Inter-

Signature on Swedish original

Johan Stenbäck

Authorized auditor

Danske Hypotek AB / Annual Report 2025

41

Danske Hypotek AB (publ)

Box 7523

Norrmalmstorg 1

S-103 92 STOCKHOLM

Org nr: 559001-4154

LEI kod: 549300R24NNCTGT7CW53

danskehypotek.se