SEK Q2 2022: SEK plays an important role in times of economic turbulence
Russia’s war in Ukraine is creating considerable uncertainty and a deteriorating macroeconomic outlook. In times of economic turbulence, borrowers seek stable, long-term financiers. This strengthens SEK’s business. The second quarter resulted in high new lending and stronger net interest income. In addition, SEK issued EUR 700 million in a green bond.
For Q2 2022, new lending was Skr 45.4 billion, which was higher year-on-year (1H21: Skr 23.2 billion). Despite the new risk tax having a negative effect of Skr 27 million on net interest income in the second quarter, net interest income still increased 8 percent year-on-year.
“We have experienced strong demand both for working capital finance from Swedish exporters and for export credits from foreign buyers,” says Magnus Montan, CEO of Swedish Export Credit Corporation.
For the second quarter, the company posted a return on equity after tax of 3.3 percent and a net profit of Skr 171 million. The lower net profit compared to the first six months of the previous year is the result of unrealized valuation effects, which have had a negative impact on the net result of financial transactions.
“In troubled times, SEK’s role comes to the forefront since borrowers want stable, long-term financiers. Our mission is to secure financing for the Swedish export industry even during times of increased uncertainty and volatile capital markets,” says Magnus Montan.
In June, SEK conducted a public offering of a EUR 700 million five-year fixed-rate green bond. The bond was issued under the company’s new sustainability bond framework, which is an umbrella framework for green, social and sustainability bonds linked to the UN Sustainable Development Goals.
SEK is strongly capitalized with very good liquidity and the company remain ready to continue to meet Sweden’s export industry’s financing needs.
Results January–June 2022 (compared with January–June 2021)
• New lending Skr 69.8 billion (1H21: Skr 38.1 billion)
• Net interest income Skr 990 million (1H21: Skr 953 million)
• Operating profit Skr 361 million (1H21: Skr 603 million)
• Net profit Skr 287 million (1H21: Skr 479 million)
• New green lending Skr 6.4 million (1H21: -)
• New green borrowing Skr 9.0 billion (1H21: Skr 4.0 billion)
• After-tax return on equity 2.8 percent (1H21: 4.8 percent)
• Total capital ratio 19.7 percent (year-end 2021: 21.6 percent)
• Basic and diluted earnings per share Skr 72 (1H21: Skr 120)
For more information, please contact
Stefan Friberg, CFO
+46 72 717 88 05
stefan.friberg@sek.se
Catharina Henriksson, Head of press
+46 76-677 59 09
catharina.henriksson@sek.se
About SEK
The Swedish Export Credit Corporation (SEK) is a state-owned company that finances Swedish exporters, their suppliers, and international buyers of Swedish products and services. Sustainability is central to SEK's operations, and therefore it is a natural step to finance the industry's transition to a fossil-free society; a development that also creates new export opportunities. With lending in 60 countries, SEK has substantial knowledge of international transactions and is a natural business partner in export financing.
