STOCKHOLM, Sweden, Aug. 28, 2003 (PRIMEZONE) --Svensk Exportkredit (NYSE:SEP_p) (NYSE:SEP_pa) ("SEK"):
Business Activities Market
Despite continued weak demand in many markets, the volume of SEK's customer-related financial transactions remained at a stable level of Skr 9.6 billion (9.5), of which long-term credits represented Skr 7.5 billion (7.3) and syndicated customer transactions represented Skr 2.1 billion (2.2). Of long-term credits, the largest portion, Skr 3.0 billion (0.7), represented export credits. Such credits included, i.a., a credit granted for part of the financing of an important Mexican deal for Volvo and the first credit granted under the improved CIRR-system. The volume of credits granted to municipalities continued to develop positively and represented Skr 1.9 billion (1.0). Other direct lending to customers amounted to Skr 2.6 billion (5.5). Such lending included, in addition to lending to Nordic corporations, i.a., a participation in the first ever project financing of a highway in Norway and credits to the Baltic region, where also several advisory assignments have been achieved.
Borrowings
New long-term borrowings during the period amounted to Skr 31.6 billion (24.0). Among others, a number of bonds issues in different dollar-currencies have been launched in the European markets and in the Japanese Uridashi market. Further, a number of structured bonds have been issued in the Japanese as well as the U.S. and the European market.
In connection with the change in ownership (see below) SEK issued USD 200 million of Hybrid Capital at advantageous terms. The coupon was the lowest that any issuer has ever obtained for an issue of such character.
INCOME STATEMENT
Results Operating profit amounted to Skr 323.7 million (344.6). The decrease in profit compared with the same period in the previous year was due mainly to a decline in average total assets. The average volume of total assets was Skr 133.6 billion (144.5).
Commissions earned amounted to Skr 4.3 million (12.2). The decrease was due mainly to lower demand for commission-generating business.
Administrative expenses amounted to Skr 90.2 million (80.6). The increase was related to higher personnel expenses, due mainly to the widening of the business activities, which was established already in the second half of year 2002. No credit losses have been made.
Margins
Net interest earnings were Skr 393.3 million (408.9). The contribution to net interest earnings from debt-financed assets was Skr 228.9 million (240.8). The underlying average volume of such debt-financed assets was Skr 109.3 billion (114.0), with an unchanged average margin of 0.42 percent p.a. (0.42). SEK has experienced increased margins on new credits, which have been offset by increased margins on borrowed funds. After the change in ownership (see below), SEK has experienced improved funding levels. The contribution to net interest earnings from the investment portfolio, which represents the investment of SEK's equity, was Skr 164.4 million (168.1).
Return on Equity
The annualized return on equity was 17.2 percent (19.6) before taxes, and 12.4 percent (14.1) after taxes, respectively.
The full report including tables can be downloaded from the enclosed link. http://reports.huginonline.com/915510/122411.pdf