High lending and satisfied customers – in 2015 we aim to do even more for the customers

Our new lending to Swedish exporters and their customers in 2014 amounted to Skr 57.1 billion (2013: Skr 55.7 billion). The slight increase in lending is due partly to a need for long-term export finance. We have also to a large amount refinanced customers loan at maturity. The company also broadened the customer base. The outstanding volume of offers for loans at the end of the period were up and amounted to Skr 78.4 billion (Skr 65.5 billion at year-end 2013).

The volume of new end-customer finance for the full year was Skr 33.9 billion (2013: Skr 39.0 billion). The volume of new corporate lending was Skr 23.2 billion (2013: Skr 16.7 billion). Operating profit was good and amounted to Skr 1,629 million (12M13: Skr 1,408 million) and return on equity amounted to 8.1 percent (12M13: 7.4 percent), which exceeded the owner's profitability

The development of the Swedish export during 2014 has been effected by weaker economic performance in the European Union, which accounts for 60 percent of Swedish exports. Swedish exporters are being affected by the current global unrest. Two out of three of the companies responding to our Export Credit Trends Survey from December say their business has been adversely affected by increased geopolitical turmoil. However, the Export Credit Trends Survey showed that Swedish exporters are well positioned should geopolitical risks decrease. They generally have a healthy financial position and positive funding opportunities, and large companies in particular have good access to borrowing on the capital market. The favorable interest rate environment and weaker krona are also positive for Swedish export opportunities.

Conditions on our funding market are good. The market is strong and stable, and borrowing costs have fallen.

Our strategic challenge going forward is how to generate greater client value for Swedish exporters with improved profitability. We have started a number of initiatives to improve both organizational efficiency and capital efficiency. We have simplified the structure of our organization so that it has fewer levels of management and have created clearer decision-making procedures. Client-facing departments have been more closely coordinated and we have added a new unit working solely with medium-sized companies.

- In summary, the changes we are introducing will allow us to assist Sweden’s exporters even more in 2015, by offering existing clients more products and reach new clients. This will enable us to realize our vision of strengthening the competitiveness of Swedish exporters and helping to create employment and sustainable growth in Sweden, says SEK´s CEO Catrin Fransson.

January-December 2014

• New lending amounted to Skr 57.1 billion (12M13: Skr 55.7 billion)
• Net interest revenues amounted to Skr 1,578 million (12M13: Skr 1,555 million)
• Operating profit amounted to Skr 1,629 million (12M13: Skr 1,408 million)
• Net profit amounted to Skr 1,260 million (12M13: Skr 1,090 million)
• Return on equity amounted to 8.1 percent (12M13: 7.4 percent)
• The outstanding volume of offers for loans at the end of the period amounted to Skr 78.4 billion (Skr 65.5 billion at year-end 2013)
• The Common Equity Tier 1 capital ratio was 16.9 percent at the end of the period according to CRR (19.5 percent at year-end 2013 according to Basel II)