SEK’s interim Report January-March 2022: High demand for export credits
The quarter is largely marked by Russia’s invasion of Ukraine, which is creating substantial human suffering, streams of refugees and geopolitical concern. The direct economic effect of the war on Sweden and SEK is limited, but the Swedish export industry is impacted through higher energy prices, component shortages and sharply rising inflation.
SEK reach a high level of new lending during the first quarter of the year, Skr 24.4 billion, significantly higher compared with the same period in the previous year, Skr 14.9 billion, mainly as a result of high demand for export credits to foreign buyers of Swedish goods.
Net interest income is strong and amounts to Skr 485 million, where the risk tax has a negative effect of Skr 27 million. Net interest income is still in line with the same period in the previous year when the risk tax had not yet been introduced. The operating profit for the period amounts to Skr 148 million, which is significantly lower compared with the same period in the previous year (3M21: Skr 291 million) and the net profit amounts to Skr 116 million (3M21: Skr 231 million). The lower result is explained by unrealized valuation effects of derivatives and liquidity assets which have a negative effect on the net result of financial transactions.
“We reach a high new lending volume, primarily due to high demand for export credits. We financed projects such as a major maternity clinic at a hospital in Ghana. The financing is a result of Team Sweden’s investments for Engineering, Procurement and Construction (EPC) transactions, which in this case, led to some 40 Swedish exporters being contracted. However, the result is weighed down by a negative net result from financial transactions,” says Magnus Montan, CEO of SEK.
Results January–March 2022 (compared with January–March 2021)
• New lending Skr 24.4 billion (3M21: Skr 14.9 billion)
• Net interest income Skr 485 million (3M21: Skr 485 million)
• Operating profit Skr 148 million (3M21: Skr 291 million)
• Net profit Skr 116 million (3M21: Skr 231 million)
• New green lending Skr 0.9 million (3M21: -)
• New green borrowing Skr 1.5 billion (3M21: Skr 2.4 billion)
• After-tax return on equity was 2.3 percent (3M21: 4.6 percent)
• The total capital ratio amounted to 21.2 percent (year-end 2021: 21.6 percent)
• Basic and diluted earnings per share Skr 29 (3M21: Skr 58)
Press contact
Catharina Henriksson
+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.
