Year-end report 2016: Several new clients during 2016
The fourth quarter of 2016 marked the end of a year with a more diversified lending portfolio and where the client base has had a, for SEK, significant increase. In the last quarter of the year, SEK’s new lending amounted to Skr 9.6 billion (4Q15: Skr 21.6 billion). For the full-year 2016, SEK posted lending of Skr 54.8 billion (12M15: Skr 104.6 billion). The decline compared to the prior year pertains mainly to SEK’s financing of Brazil’s purchase of Saab’s Gripen aircraft in 2015 amounting to Skr 41.9 billion.
”During the year, SEK continued its efforts to reach new clients and to broaden its business with existing clients. Solicitation of new clients has been successful and SEK has concluded deals with new clients among large and medium-sized companies, the latter being a relatively new customer group” says SEK’s CEO Catrin Fransson.
The work with the Government’s initiative Team Sweden and the export promotion agencies with improving the Swedish export’s competiveness continues. “We also work with other government export promoters to develop our communications towards the companies, to improve the information on the Swedish export credit system” says SEK’s CEO Catrin Fransson.
Operating profit for 2016 amounted to Skr 1,002 million (2015: Skr 1,535 million). This decline in earnings was mainly due to lower net results of financial transactions related to unrealized changes in market value, which were offset by the fact that net interest income rose to Skr 1,747 million (2015: Skr 1,662 million), corresponding to an increase of 5 percent. SEK has a strong capitalization with a total capital ratio of 25.1 percent and healthy liquidity. Currently, SEK exceeds the capital target set by the owner, but forthcoming regulations will balance the situation. SEK’s Board of Directors proposes that the dividend to the owner should amount to Skr 234 millions, equivalent to 30 percent of earnings, which is in line with the target. However, the return was below the target for 2016. SEK maintains a good capacity to offer financing solutions to the Swedish export industry and thereby contribute to strengthen the continued competitiveness of Swedish exports.
Results full year 2016
- Net interest revenue was Skr 1,747 million (2015; Skr 1,662 million).
- Operating profit was Skr 1,002 million (2015: Skr 1,535 million).
- Net profit was Skr 780 million (2015: Skr 1,187 million)
- New lending amounted to Skr 54.8 billion (2015: Skr 104.6 billion).
- The return on equity amounted to 4.6 percent (Year-end 2015: 7.2 percent).
- The total capital ratio was 25.1 percent at the end of the period (Year-end 2015: 24.5 percent).
- Earnings per share before and after dilution amounted to Skr 195 (2015: Skr 297)
For more information, please read the attached report.
Contacts: Edvard Unsgaard, Head of Communication, + 46-8-613 84 88