SEK’s year-end report 2022: Strong growth despite a challenging year
New lending in the fourth quarter amounted to Skr 34.8 billion, and Skr 133.2 billion for the full year, which was the highest ever new lending volume in the space of one year.
Russia’s war in Ukraine continued in the fourth quarter resulting in challenging markets for corporate bonds and high demand for financing from SEK. SEK’s mission to provide financing to Sweden’s export industry becomes increasingly important in times of great uncertainty.
New lending for the fourth quarter amounted to Skr 34.8 billion and Skr 133.2 billion during the full year. The company achieved growth of 15 percent in 2022 with regard to total lending portfolio. The share of green assets in the loan portfolio increased from 7.5 percent to 9.5 percent year-on-year. SEK continues to develop its offerings, skills and working methods to increase the share of green assets.
“The high level of new lending mainly stems from high demand for working capital finance from Swedish exporters as well as from two major export credits to foreign customers. We have also witnessed higher lending to clients in the defense industry,” says Magnus Montan, CEO of SEK.
SEK posted profitability of 9.2 percent for the fourth quarter, a year-on-year increase of 4.6 percentage points, driven by very strong net interest income. Net interest income for the quarter totaled Skr 648 million, reflecting an increase of 34 percent year-on-year. The company posted net profit of Skr 491 million for the quarter, reflecting
a year-on-year increase of 108 percent.
The high volatility in the financial markets during the year has increased the effect that unrealized value changes of financial instruments has on profit. The net results of financial transactions is neutral over time, but during the fourth quarter we have a positive effect on profit from net results of financial transactions of Skr 223 million.
SEK’s focus on increasing the client portfolio and offering more companies access to Sweden’s export credit system has been highly successful. The number of clients increased 14 percent during the year following very strong growth in the fourth quarter.
To meet the increased demand for financing, in the fourth quarter, SEK issued a EUR 1 billion five-year fixed-rate bond and a USD 1.75 billion three-year fixed-rate bond. The latter comprised the largest borrowing transaction SEK has completed since April 2020.
“We enter 2023 well capitalized and with high liquidity to continue to meet Sweden’s export industry’s financing needs, even during highly uncertain times with highly volatile financial markets and reduced market liquidity,” says Magnus Montan.
Results January–December 2022 (compared with January–December 2021)
• New lending Skr 133.2 billion (2021: Skr 77.0 billion)
• Net interest income Skr 2,179 million (2021: Skr 1,907 million)
• Operating profit Skr 1,471 million (2021: Skr 1,305 million)
• Net profit Skr 1,166 million (2021: Skr 1,034 million)
• New green lending Skr 7.4 billion (2021: Skr 11.5 billion)
• New green borrowing Skr 9.0 billion (2021: Skr 6.1 billion)
• After-tax return on equity 5.5 percent (2021: 5.1 percent)
• Total capital ratio 20.6 percent (year-end 2021: 21.6 percent)
• Basic and diluted earnings per share Skr 292 (2021: Skr 259)
For more information, please contact
Stefan Friberg, CFO Mob: +46 72 717 88 05. stefan.friberg@sek.se
Catharina Henriksson, Head of press. Mob +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.
