SWEDEN, February 27, 2002 (PRIMEZONE) -- Svensk Exportkredit AB (SEK):
Results
Profit before taxes for the year was Skr 729.0 million (2000: 829.9). The return on equity was 22.5% (22.0%) before taxes, and 16.2% (15.9 %) after taxes, respectively.
The state-supported export credits contributed to the State-support-system results with a surplus of Skr 168.8 million (93.1). The accumulated surplus during the period 1990 through 2001 amounts to approximately Skr 1.6 billion.
Business Activities
SEK extended a record volume of customer-related financial transactions, amounting to Skr 24.9 billion (22.3). These transactions include new long-term credits accepted during the year, amounting to Skr 20.2 billion (20.7), and customer related transactions other than credits, amounting to Skr 4.7 billion (1.6).
Of new long-term credits, amounting to Skr 20.2 billion, Skr 10.6 billion (18.7) represented traditional export credits and Skr 9.6 billion (2.0) represented credits granted against documentation in the form of interest-bearing securities.
SEK's outstanding offers for long-term credits increased considerably and reached Skr 53.9 billion (20.4) at year-end.
SEK has strengthened its organization and its capabilities to provide a wider range of financial solutions. Leasing and renting are examples of solutions that SEK can offer its customers. The range of ECA-guarantees accepted as security for export credits has been extended. SEK has further strengthened its capacity regarding regional and local authorities. A number of credits as well as advisory services have been extended.
Even if the capital markets have been volatile during the year, SEK's borrowing activities have been successful. New borrowings with maturities one year or longer during the year amounted to USD 4.0 billion (4.4). SEK was awarded "Best Euro-MTN Borrower 2001" by the business magazine MTN Week.
Balance Sheet
At year-end, total assets amounted to Skr 149.5 billion (169.8). Of total assets, credits outstanding represented Skr 70.4 billion (60.9) --exclusive of committed credits amounting to Skr 16.4 billion (19.1) -- while interest-bearing securities represented Skr 68.5 billion (97.7). The aggregate volume of funds borrowed and shareholders' funds, i.e., funds available, on the one hand, exceeds at all maturities the aggregate volume of lending commitments, on the other hand.
Counterparty Risk Exposures
The quality of SEK's assets remains high. Of the total counterparty risk exposures, 21% (20%) was against the Swedish State and 17% (26%) was against other (highly creditworthy) OECD States; accordingly, the total risk exposure against OECD-states was 38% (46%) of total exposures. Further, of the total risk exposures, 50% (44%) was against banks and other financial institutions, while 12% (10%) was against corporations, etc.
Capital Adequacy
SEK's generally conservative policy with regard to credit, interest rate, and currency exchange exposures remains the same. At year-end, SEK's adjusted total capital adequacy ratio (including in the Tier-1 capital base guarantee fund capital of Skr 600 million) was 20.4% (20.0%), of which 13.8% (13.0%) represented adjusted Tier-1. The regulatory total capital adequacy ratio was 18.5% (18.2 %), of which 11.9 % (11.1 %) represented the Tier-1 ratio.
Dividend
The Board of Directors has decided to propose to the Annual General Meeting a dividend of Skr 360.4 million, an amount that approximately equals two thirds of the net profit for the year. The dividend proposed has been taken into account when determining the capital adequacy ratios.
Annual General Meeting of Shareholders
The Annual General Meeting of Shareholders will be held on April 22, 2002.
Annual Report
The Company's Annual Report will be distributed in March and will also be available at the Company's offices at Vaestra Traedgardsgatan 11 B in Stockholm. Income Statements, Balance Sheets, and Statements of Cash Flows in summary are included in this press release.
The full Interim Report including tables is available to download from the enclosed link: http://reports.huginonline.com/850171/100188.pdf
SEK is owned by the Swedish State (approximately 65%) and the global technology company ABB (approximately 35%). SEK's objective is to engage in financing activities and in connection therewith primarily promote the development of Swedish commerce and industry and Swedish export industry as well as otherwise engaging in Swedish and international financing activities on commercial grounds. Credits are granted at fixed or floating interest rates. SEK funds its activities primarily by issues in the international capital markets. SEK's balance sheet and assets are of high quality. SEK's long-term debt rating from Standard & Poor's and Moody's, respectively, is AA+/Aa2.