UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16 under
the Securities Exchange Act of 1934
For the month of July, 2023
Commission File Number
001-08382
Aktiebolaget Svensk Exportkredit (publ)
Swedish Export Credit Corporation
(Translation of Registrant’s Name into English)
Fleminggatan 20
SE-112 26 Stockholm
Sweden
(Address of Principal Executive Offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ | Form 40-F ☐ |
Incorporation by Reference
This Report on Form 6-K, including the exhibits hereto, is hereby incorporated by reference, in its entirety, into the registration statement on Form F-3 (File No. 333-249829) of Aktiebolaget Svensk Exportkredit (publ) (“SEK”).
This Report comprises the following:
1. |
| Registrant’s report for the second quarter of 2023. |
Exhibit 99.2 | Table of unaudited consolidated capitalization of the Registrant. | |
101.INS | XBRL Instance Document. | |
101.SCH | XBRL Taxonomy Extension Schema Document. | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | |
101.LAB | XBRL Taxonomy Extension Labels Linkbase Document. | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
1
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: July 14, 2023
| AB Svensk Exportkredit (publ) | |
|
| |
| (Swedish Export Credit Corporation) | |
|
| |
| By: | /s/ Magnus Montan |
|
|
|
|
| Magnus Montan, Chief Executive Officer |
3
AB Svensk Exportkredit |
January–June 2023
(Compared to the period January-June 2022)
● | Net interest income Skr 1,357 million (1H22: Skr 990 million) |
● | Operating profit Skr 646 million (1H22: Skr 361 million) |
● | Net profit Skr 513 million (1H22: Skr 287 million) |
● | Lending portfolio growth 5.2 percent (1H22: 10.9 percent) |
● | New lending Skr 35.9 billion (1H22: Skr 69.8 billion) |
● | Basic and diluted earnings per share Skr 129 (1H22: Skr 72) |
● | After-tax return on equity 4.7 percent (1H22: 2.8 percent) |
April–June 2023
(Compared to the period April-June 2022)
● | Net interest income Skr 724 million (2Q22: Skr 505 million) |
● | Operating profit Skr 226 million (2Q22: Skr 213 million) |
● | Net profit Skr 179 million (2Q22: Skr 171 million) |
● | Lending portfolio growth 1.8 percent (2Q22: 6.7 percent) |
● | New lending Skr 22.1 billion (2Q22: Skr 45.4 billion) |
● | Basic and diluted earnings per share Skr 45 (2Q22: Skr 43) |
● | After-tax return on equity 3.3 percent (2Q22: 3.3 percent) |
Equity and balances
(Compared to December 31, 2022)
● | Total capital ratio 20.1 percent (year-end 2022: 20.6 percent) |
● | Total assets Skr 396.7 billion (year-end 2022: Skr 375.5 billion) |
● | Total lending portfolio Skr 287.8 billion (year-end 2022: Skr 273.4 billion) |
–of which green lending 10.2 percent
(year-end 2022: 9.5 percent)
● | Loans, outstanding and undisbursed Skr 346.3 billion (year-end 2022: Skr 348.8 billion) |
● | Outstanding senior debt Skr 348.1 billion (year-end 2022: Skr 326.3 billion) |
–of which green borrowings 6.1 percent
(year-end 2022: 5.9 percent)
High net interest income despite challenging times
Net interest income for the second quarter totaled Skr 724 million, corresponding to an increase of 43 percent year-on-year. For the six-month period net interest income totaled Skr 1,357 million (1H22: Skr 990 million). We noted healthy growth in the lending portfolio of 5.2 percent in the first six months. This was primarily driven by corporate lending to Swedish exporters, which remains high. A growing lending portfolio with a longer average maturity has resulted in a higher and more stable net interest income.
To date, 2023 has been dominated by Russia’s continued war in Ukraine, the resulting considerable human suffering and economic turbulence, geopolitical tensions between China and the United States, inflation and the continued disruptions in supply chains, together creating challenging conditions. As a consequence, we have experienced a decline in new lending to foreign buyers of Swedish goods and to project financing since many companies have chosen to defer investments due to high inflation and high interest rates. As a result, new lending for the second quarter amounted to Skr 22.1 billion, a decrease compared to the corresponding period in 2022 (2Q22: Skr 45.4 billion).
The need to limit global warming necessitates green transition by countries and companies. SEK aims to be a positive force in the transition and during the second quarter SEK increased green and sustainability-linked lending by Skr 4.7 billion, quarter-on-quarter.
Net profit for the second quarter amounted to Skr 179 million (2Q22: Skr 171 million), where the loss allowance for expected credit losses and the net results of financial transactions negatively impacted earnings by Skr 304 million (2Q22: Skr 111 million). A single project accounted for the majority of the increase in expected credit losses and currently we have not noted any strong indications of a need to further increase provisions. Net profit for the six-month period was Skr 513 million (1H22: Skr 287 million). Profitability was 4.7 percent for the first six months, which represented an increase of 1.9 percentage points year-on-year.
SEK’s Export Credit Trends Survey, published in June, found that seven out of ten Swedish exporters plan to invest in measures to reduce climate impact, despite increasingly expensive financing. We view this positively at SEK, both from a climate perspective and due to its contribution to the Swedish companies’ competitiveness. Swedish exporters express optimism and exporters expect to increase their order intake over the next 12 months and to make new recruitments. While the returning optimism of Swedish exporters is gratifying, it is also slightly surprising given that SEK’s autumn Export Credit Trends Survey indicated a poorer outlook.
In the first six months of 2023, SEK has raised borrowings of Skr 80 billion with maturities over 1 year, representing a substantial increase compared to the same period in 2022. The Swedish National Debt Office has decided that there are no grounds for managing SEK through resolution, which means, inter alia, that under the relevant regulations SEK does not need to issue subordinated debt. SEK remains well capitalized and with high liquidity to continue to meet Sweden’s export industry’s financing needs. We are optimistic about SEK’s business outlook for the remainder of the year.
Magnus Montan Chief Executive Officer |
Strong growth in the lending portfolio but postponed projects
Swedish exporters are performing strongly despite concerns regarding Sweden’s economy. SEK continues to experience high demand for financing from Sweden’s export industry and new lending volumes for corporate lending to Swedish exporters were high in the second quarter and for the six-month period in absolute terms, although lending decreased year-on-year taking into account the exceptional lending demand in the same period in 2022. High volumes for corporate lending generated healthy growth in SEK’s lending portfolio. The lending portfolio grew 1.8 percent in the quarter and 5.2 percent in the six-month period.
Nevertheless, higher interest rates are impacting SEK’s lending for domestic and international projects. Demand for export credits and project financing has been muted both in the second quarter and in the six-month period. The economic downturn, together with higher investment costs due to higher interest rates, means that SEK’s clients have had to revise original investment estimates for projects with resultant delays. Overall, SEK posted a year-on-year lower volume of new lending for the quarter and for the six-month period taking into account the exceptional lending demand in the same periods in 2022. New lending was Skr 22.1 billion for the second quarter and totaled Skr 35.9 billion for the six-month period.
Demand for project financing for projects pertaining to climate transition and sustainable energy supply remains robust. SEK has a strong market position and extensive experience with major international projects and sustainable finance. During the quarter, SEK grew its green lending portfolio by Skr 1.6 billion and its portfolio of sustainability-linked loans by Skr 3.1 billion.
SEK’s new lending | ||||||
Skr bn |
| Jan-Jun 2023 |
| Jan-Jun 2022 |
| Jan-Dec 2022 |
Lending to Swedish exporters1 |
| 17.0 |
| 27.5 |
| 50.3 |
Lending to exporters’ customers2 |
| 18.9 |
| 42.3 |
| 82.9 |
Total |
| 35.9 |
| 69.8 |
| 133.2 |
of which CIRR-loans |
| — | 21% | 22% |
1 | Of which Skr 0.0 billion (1H22: Skr 6.1 billion; year-end 2022: Skr 6.2 billion) had not been disbursed at period end. |
2 | Of which Skr 0.9 billion (1H22: Skr 14.1 billion; year-end 2022: Skr 28.6 billion) had not been disbursed at period end. |
Interim report January–June 2023 | Page 4 of 29 |
High borrowing volumes in more stable markets
High levels of uncertainty dominated international capital markets for parts of the first quarter due to sharply rising interest rates and concerns about the United States banking sector. Even if these concerns diminished in the second quarter, uncertainty has prevailed regarding future interest rate hikes and the US debt ceiling, which have contributed to continued, albeit diminishing, volatility in the fixed-income market.
At the same time, supply in the bond market through the first half of the year was higher than during the same period last year. However, due to strong investor demand, borrowing conditions gradually improved over the past quarter compared with the preceding quarter and the market is now more stable. SEK is highly regarded in the global capital markets and has had healthy access to short- and long-term financing.
SEK conducted major benchmark transactions both in EUR and in USD in the second quarter with the aim of increasing its level of diversification. The EUR transaction, conducted in early April, has a maturity of 3 years and a volume of EUR 1.25 billion. Two major USD issues were conducted, the first at the end of April with a maturity of just over 2 years and the second at the beginning of June with a maturity of 5 years. The volumes totaled USD 1.25 billion and USD 1 billion, respectively. Among other actions in the second quarter, the company also carried out a public issuance of an AUD 500 million bond and issued a further tranche of a green bond amounting to Skr 1.6 billion in the second quarter.
To date this year, SEK has raised borrowings of Skr 80 billion with maturities of more than one year, which is more than twice the amount in the same period in 2022, when SEK’s long-term borrowing totaled Skr 30 billion. In the second quarter, SEK raised borrowings of Skr 45.8 billion with maturities of more than one year.
SEK’s borrowing | ||||||
Skr bn |
| Jan-Jun 2023 |
| Jan-Jun 2022 |
| Jan-Dec 2022 |
New long-term borrowing |
| 80.1 |
| 30.0 |
| 88.5 |
New short-term borrowing | 22.0 | 31.3 | 71.3 | |||
Outstanding senior debt |
| 348.1 |
| 315.4 |
| 326.3 |
Repurchase and redemption of own debt |
| 5.9 |
| 1.0 |
| 8.9 |
Interim report January–June 2023 | Page 5 of 29 |
January-June 2023
Operating profit amounted to Skr 646 million (1H22: Skr 361 million). Net profit amounted to Skr 513 million (1H22: Skr 287 million). The increase in net profit compared to the same period in the previous year was primarily the result of higher net interest income and improved net results of financial transactions.
Net interest income
Net interest income amounted to Skr 1,357 million (1H22: Skr 990 million), representing an increase of 37 percent compared to the same period in the previous year. An increased lending portfolio together with rising interest rates in Swedish kronor contributed to higher net interest income.
The table below shows average interest-bearing assets and liabilities.
| Jan-Jun |
| Jan-Jun |
| ||
Skr bn, average | 2023 | 2022 | Change | |||
Total lending portfolio |
| 280.6 |
| 250.1 |
| 12% |
Liquidity investments |
| 79.5 |
| 68.0 |
| 17% |
Interest-bearing assets |
| 370.3 |
| 329.4 |
| 12% |
Interest-bearing liabilities |
| 337.2 |
| 305.2 |
| 10% |
Net results of financial transactions
Net results of financial transactions amounted to Skr -98 million (1H22: Skr -262 million). The results were mainly attributable to unrealized value changes of financial instruments driven by cross-currency basis spreads.
Operating expenses
Operating expenses amounted to Skr -354 million (1H22: Skr -335 million), representing an increase of 6 percent compared to the same period in the previous year. The increase in operating expenses was mainly due to increased personnel expenses. No provision was made for the individual variable remuneration program (1H22: –).
Net credit losses
Net credit losses amounted to Skr -239 million (1H22: Skr -17 million). Net credit losses were mainly attributable to increased provisions for expected credit losses for exposures in stage 3.
Loss allowances as of June 30, 2023, amounted to Skr -471 million compared to Skr -223 million as of December 31, 2022, of which exposures in stage 3 amounted to Skr -322 million (year-end 2022: Skr -70 million). During the second quarter, two exposures linked to the same project were moved to stage 3 and the provision for these exposures amounted to Skr -260 million. The company currently does not see any strong indications of high credit risk in the lending portfolio and therefore does not see any general increased provisioning needs.
The provision ratio amounted to 0.13 percent (year-end 2022: 0.06 percent).
SEK’s IFRS 9 model is based on a business cycle parameter. The business cycle parameter reflects the general risk of default in each probability of default (PD) segment and should reflect the general risk of default in the economy. Due to the current macroeconomic uncertainty, SEK has made an overall adjustment according to management’s assessment, see Note 4.
Taxes
Tax costs amounted to Skr -133 million (1H22: Skr -74 million), and the effective tax rate amounted to 20.6 percent (1H22: 20.5 percent).
Other comprehensive income (OCI)
Other comprehensive income before tax amounted to Skr -7 million (1H22: Skr 110 million). The result is explained by unrealized losses incurred from derivatives in cash flow hedging due to increased interest rates during the first half year of 2023, offset by a positive result related to the changes in own credit risk due to increased credit spreads.
April-June 2023
Operating profit amounted to Skr 226 million (2Q22: Skr 213 million). Net profit amounted to Skr 179 million (2Q22: Skr 171 million). This marginally higher net profit compared to the same period in the previous year was primarily the result of higher net interest income and improved net results of financial transactions, offset by higher net credit losses.
Net interest income
Net interest income amounted to Skr 724 million (2Q22: Skr 505 million), representing an increase of 43 percent compared to the same period in the previous year. An increased lending portfolio together with rising interest rates in Swedish kronor contributed to higher net interest income during the period.
The table below shows average interest-bearing assets and liabilities.
| Apr-Jun |
| Apr-Jun |
| ||
Skr bn, average | 2023 | 2022 | Change | |||
Total lending portfolio |
| 285.3 |
| 254.7 |
| 12% |
Liquidity investments |
| 85.2 |
| 67.4 |
| 26% |
Interest-bearing assets |
| 379.5 |
| 332.4 |
| 14% |
Interest-bearing liabilities |
| 346.5 |
| 305.6 |
| 13% |
Net results of financial transactions
Net results of financial transactions amounted to Skr -48 million (2Q22: Skr -92 million). The results were mainly attributable to unrealized value changes of financial instruments driven by changes in exchange rates.
Operating expenses
Operating expenses amounted to Skr -181 million (2Q22: Skr -173 million), representing an increase of 5 percent compared to the same period in the previous year. The increase in operating expenses is due to increased personnel expenses as well as an increase in other administrative expenses. No provision was made for the individual variable remuneration program (2Q22: –).
Net credit losses
Net credit losses amounted to Skr -256 million (2Q22: Skr -19 million). Net credit losses were mainly attributable to increased provisions for expected credit losses for exposures in stage 3. During the second quarter, two exposures linked to the same project were moved to stage 3 and the provision for these exposures amounted to Skr -260 million. The company currently does not see any strong indications of high credit risk in the lending portfolio and therefore does not see any general increased provisioning needs.
SEK’s IFRS 9 model is based on a business cycle parameter. The business cycle parameter reflects the general risk of default in each probability of default (PD) segment and should reflect the general risk of default in the economy. Due to the current macroeconomic uncertainty, SEK has made an overall adjustment according to management’s assessment, see Note 4.
Taxes
Tax costs amounted to Skr -47 million (2Q22: Skr -42 million), and the effective tax rate amounted to 20.8 percent (2Q22: 19.7 percent).
Other comprehensive income (OCI)
Other comprehensive income before tax amounted to Skr -27 million (2Q22: Skr 10 million). The outcome is mainly explained by unrealized losses incurred from derivatives in cash flow hedging due to increased interest rates during the second quarter of 2023.
Statement of Financial Position
Total assets and liquidity investments
Total assets increased by 6 percent compared to year-end 2022. The company’s increased customer lending, together with an increased
volume of liquidity investments, drove the increase in the company’s assets.
| June 30, |
| December 31, |
| ||
Skr bn | 2023 | 2022 | Change | |||
Total assets |
| 396.7 |
| 375.5 |
| 6% |
Liquidity investments |
| 82.8 |
| 76.3 |
| 9% |
Total lending portfolio |
| 287.8 |
| 273.4 |
| 5% |
of which green | 29.3 | 25.9 | 13% | |||
of which CIRR-loans |
| 101.8 |
| 94.2 |
| 8% |
Liabilities and equity
As of June 30, 2023, the aggregate volume of available funds and shareholders’ equity exceeded the aggregate volume of loans outstanding, and loans committed at all maturities. SEK considers all of its outstanding commitments to be covered through maturity.
SEK has a credit facility in place with the Swedish National Debt Office of up to Skr 175 billion. The credit facility can be utilized when the Swedish export industry’s demand for financing is particularly high.
Capital adequacy
As of June 30, 2023, SEK’s total own funds amounted to Skr 21.5 billion (year-end 2022: Skr 20.8 billion). The total capital ratio was 20.1 percent (year-end 2022: 20.6 percent), representing a margin of 2.8 percentage points above SEK’s estimate of Finansinspektionen’s (the “Swedish FSA”) requirement of 17.3 percent as of June 30, 2023. The corresponding Common Equity Tier 1 capital estimated requirement was 12.2 percent. Given that SEK’s own funds are comprised solely of Common Equity Tier 1 capital, this total capital ratio represents a margin of 7.9 percentage points above the requirement. Overall, SEK is strongly capitalized and has healthy liquidity.
| June 30, |
| December 31, | |
Percent | 2023 | 2022 | ||
Common Equity Tier 1 capital ratio |
| 20.1 |
| 20.6 |
Tier 1 capital ratio |
| 20.1 |
| 20.6 |
Total capital ratio |
| 20.1 |
| 20.6 |
Leverage ratio |
| 8.1 |
| 8.4 |
Liquidity coverage ratio (LCR) |
| 329 |
| 311 |
Net stable funding ratio (NSFR) |
| 128 |
| 119 |
Rating
| Skr |
| Foreign currency | |
Moody’s |
| Aa1/Stable |
| Aa1/Stable |
Standard & Poor’s |
| AA+/Stable |
| AA+/Stable |
Interim report January–June 2023 | Page 7 of 29 |
Other events
At SEK’s annual general meeting held on March 27, 2023, it was resolved that no dividend would be paid for 2022.
During the first quarter 2023, SEK’s new Chief Risk Officer took up his position.
As of 2023, the Head of Compliance became part of the executive management.
At the end of June, the Swedish National Debt Office (the “Debt Office”) communicated its decision that it does not consider there to be grounds for managing SEK through resolution. The decision entails a change to the Debt Office’s previous assessment. The Debt Office has therefore decided on a new resolution plan and that minimum requirement for own funds and eligible liabilities (MREL) is to be limited to a loss absorption amount, i.e., the sum of SEK’s Pillar 1 and Pillar 2 requirements.
The macro environment
In the first quarter of 2023, Sweden’s GDP increased 0.6 percent quarter-on-quarter. Exports rose 1.2 percent. Unemployment amounted to 7.2 percent at the end of the first quarter of 2023, which was a decrease of 0.3 percentage points from the fourth quarter of 2022. The rate of inflation in May 2023 was 6.7 percent, which was a decrease from April 2023 when the rate of inflation was 7.6 percent. Essentially stable food prices contributed to the current decline in inflation compared with the previous upward trend.
The Riksbank (Sweden’s Central Bank) raised the policy rate on three occasions in 2023 from 2.50 percent to 3.75 percent and at least one further hike is expected later this year. A higher policy rate positively impacts SEK’s net interest income. The company anticipates that higher market interest rates will have limited impact on the company’s compiled credit risk.
Russia’s war in Ukraine has a limited direct financial effect on SEK since the company has very low lending in Russia and no lending in Ukraine or Belarus. However, the high level of uncertainty in the financial markets may have a more long-term effect on SEK’s customers and, thereby, on SEK. The Western world has gradually escalated sanctions against Russia and continues to support Ukraine with military and protective equipment as well as provide direct economic support to Ukraine’s armed forces. The long-term humanitarian and socioeconomic effects of Russia’s war in Ukraine are expected to be extensive and the prevailing geopolitical security tension caused by the conflict could continue for a long time.
SEK believes that there is a higher-than-normal level of risk in the financial markets that can affect the company. SEK believes that information security threats, particularly in relation to cyber security, have increased as a consequence of Sweden’s support of Ukraine.
The spread of COVID-19 currently has almost no impact on the global economy.
Risk factors
Various risks arise as part of SEK’s operations, including primarily credit risks, but also market, liquidity, refinancing, operational and sustainability risks. For a more detailed description of these risks, refer to the separate risk report Capital Adequacy and Risk Management Report (Pillar 3) 2022 and Note 30 to the annual financial statements included in SEK’s 2022 Annual Report on Form 20-F, as well as the “Risk Factors” section in SEK’s 2022 Annual Report on Form 20-F.
Interim report January–June 2023 | Page 8 of 29 |
Financial targets
Profitability target | A return on equity after tax of at least 5 percent. | |
Dividend policy | Payment of an ordinary dividend of 20-40 percent of the profit for the year. | |
Capital target | SEK’s total capital ratio is to exceed the Swedish FSA’s requirement by 2 to 4 percentage points and SEK’s Common Equity Tier 1 capital ratio is to exceed the Swedish FSA’s requirement by at least 4 percentage points. Currently, the capital targets mean that the total capital ratio should amount to 19.3-21.3 percent and the Common Equity Tier 1 capital ratio should amount to 16.2 percent, based on SEK’s estimation of the Swedish FSA’s requirements as of June 30, 2023. |
Key performance indicators (unaudited)
| Apr-Jun |
| Jan-Mar |
| Apr-Jun |
| Jan-Jun |
| Jan-Jun |
| Jan-Dec | |
Skr mn (if not otherwise indicated) | 2023 | 2023 | 2022 | 2023 | 2022 | 2022 | ||||||
New lending |
| 22,143 |
| 13,763 |
| 45,403 |
| 35,906 |
| 69,779 |
| 133,181 |
of which to Swedish exporters |
| 11,515 |
| 5,445 |
| 22,223 | 16,960 |
| 27,522 |
| 50,307 | |
of which to exporters’ customers |
| 10,628 |
| 8,318 |
| 23,180 | 18,946 |
| 42,257 |
| 82,874 | |
of which CIRR-loans as a percentage of new lending | — | — | 26% | — | 21% | 22% | ||||||
Total lending portfolio | 287,782 | 282,745 | 263,031 | 287,782 | 263,031 | 273,448 | ||||||
of which green | 10.2% | 9.8% | 8.7% | 10.2% | 8.7% | 9.5% | ||||||
of which social | 0.5% | 0.4% | 0.1% | 0.5% | 0.1% | 0.4% | ||||||
of which sustainability-linked | 4.3% | 3.3% | 1.5% | 4.3% | 1.5% | 2.1% | ||||||
Loans, outstanding and undisbursed |
| 346,288 |
| 342,654 | 330,819 | 346,288 | 330,819 | 348,817 | ||||
Customer growth | 0% | 1% | 4% | 1% | 5% | 14% | ||||||
New long-term borrowings |
| 45,757 |
| 34,310 |
| 9,906 | 80,067 | 30,017 | 88,472 | |||
New short-term borrowings | 1,528 | 20,452 | 10,099 | 21,980 | 31,303 | 71,338 | ||||||
Outstanding senior debt | 348,056 | 344,993 | 315,378 | 348,056 | 315,378 | 326,270 | ||||||
of which green |
| 6.1% |
| 6.0% |
| 6.5% | 6.1% | 6.5% | 5.9% | |||
After-tax return on equity |
| 3.3% | 6.1% | 3.3% | 4.7% | 2.8% | 5.5% | |||||
Common Equity Tier 1 capital ratio |
| 20.1% | 19.7% | 19.7% | 20.1% | 19.7% | 20.6% | |||||
Tier 1 capital ratio |
| 20.1% | 19.7% | 19.7% | 20.1% | 19.7% | 20.6% | |||||
Total capital ratio |
| 20.1% | 19.7% | 19.7% | 20.1% | 19.7% | 20.6% | |||||
Leverage ratio |
| 8.1% | 8.1% | 8.5% | 8.1% | 8.5% | 8.4% | |||||
Liquidity coverage ratio (LCR) |
| 329% | 355% | 597% | 329% | 597% | 311% | |||||
Net stable funding ratio (NSFR) |
| 128% | 118% | 122% | 128% | 122% | 119% | |||||
Risk exposure amount | 106,527 | 107,941 | 101,898 | 106,527 | 101,898 | 100,926 |
See definitions on page 31.
Interim report January–June 2023 | Page 10 of 29 |
Condensed Consolidated Statement of Comprehensive Income (unaudited)
Apr–Jun | Jan–Mar | Apr–Jun | Jan-Jun | Jan-Jun | Jan-Dec | |||||||||
Skr mn |
| Note |
| 2023 |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| 2022 |
Interest income | |
| |
| | | |
| | |||||
Interest expenses | - |
| - |
| - | - | - |
| - | |||||
Net interest income |
| 2 | |
| |
| | | |
| | |||
Net fee and commission expense |
| - |
| - |
| - | - | - |
| - | ||||
Net results of financial transactions |
| 3 | - |
| - |
| - | - | - |
| | |||
Total operating income | |
| |
| | | |
| | |||||
Personnel expenses |
| - |
| - |
| - | - | - |
| - | ||||
Other administrative expenses |
| - |
| - |
| - | - | - |
| - | ||||
Depreciation and impairment of non-financial assets |
| - |
| - |
| - | - | - |
| - | ||||
Total operating expenses | - |
| - |
| - | - | - |
| - | |||||
Operating profit before credit losses | |
| |
| | | |
| | |||||
Net credit losses |
| 4 | - |
| |
| - | - | - |
| - | |||
Operating profit | |
| |
| | | |
| | |||||
Tax expenses |
| - |
| - |
| - | - | - |
| - | ||||
Net profit1 | |
| |
| | | |
| | |||||
Other comprehensive income related to: | ||||||||||||||
Items to be reclassified to profit or loss | ||||||||||||||
Derivatives in cash flow hedges | - | | — | - | — | - | ||||||||
Tax on items to be reclassified to profit or loss |
| | - | — | | — | | |||||||
Net items to be reclassified to profit or loss | - | | — | - | — | - | ||||||||
Items not to be reclassified to profit or loss | ||||||||||||||
Own credit risk | | | - | | | | ||||||||
Revaluation of defined benefit plans | |
| |
| | | |
| | |||||
Tax on items not to be reclassified to profit or loss |
| - |
| - |
| - | - | - |
| - | ||||
Net items not to be reclassified to profit or loss | |
| |
| | | |
| | |||||
Total other comprehensive income | - |
| |
| | - | |
| | |||||
Total comprehensive income1 | |
| |
| | | |
| |
Skr |
|
|
|
|
|
|
|
| ||||||
Basic and diluted earnings per share2 | | | | | | |
1 |
2 |
Consolidated Statement of Financial Position (unaudited)
June 30, | December 31, | |||||
Skr mn |
| Note |
| 2023 |
| 2022 |
Assets | ||||||
Cash and cash equivalents |
| 5 |
| |
| |
Treasuries/government bonds |
| 5 |
| |
| |
Other interest-bearing securities except loans |
| 5 |
| |
| |
Loans in the form of interest-bearing securities |
| 4, 5 |
| |
| |
Loans to credit institutions |
| 4, 5 |
| |
| |
Loans to the public |
| 4, 5 |
| |
| |
Derivatives |
| 5, 6 |
| |
| |
Tangible and intangible assets |
|
| |
| | |
Deferred tax asset | | | ||||
Other assets |
|
| |
| | |
Prepaid expenses and accrued revenues |
|
| |
| | |
Total assets |
| |
| | ||
Liabilities and equity | ||||||
Borrowing from credit institutions |
| 5 |
| |
| |
Debt securities issued |
| 5 |
| |
| |
Derivatives |
| 5, 6 |
| |
| |
Other liabilities |
|
| |
| | |
Accrued expenses and prepaid revenues |
|
| |
| | |
Provisions |
|
| |
| | |
Total liabilities |
| |
| | ||
Share capital |
| |
| | ||
Reserves |
| - |
| - | ||
Retained earnings |
| |
| | ||
Total equity |
|
| |
| | |
Total liabilities and equity |
| |
| |
Interim report January–June 2023 | Page 12 of 29 |
Condensed Consolidated Statement of Changes in Equity (unaudited)
Reserves | |||||||||||||
Hedge | Own | Defined | Retained | ||||||||||
Skr mn |
| Equity |
| Share capital |
| reserve |
| credit risk |
| benefit plans |
| earnings | |
Opening balance of equity January 1, 2022 |
| | | — | - | - | | ||||||
Net profit Jan-Jun 2022 | | — | — | — | — | | |||||||
Other comprehensive income Jan-Jun 2022 |
| | — | — | | |
| — | |||||
Total comprehensive income Jan-Jun 2022 | | — | — | | | | |||||||
Dividend |
| - | — | — |
| — |
| — |
| - | |||
Closing balance of equity June 30, 20221 |
| | | — | - | |
| | |||||
Opening balance of equity January 1, 2022 |
| |
| |
| — |
| - |
| - |
| | |
Net profit Jan-Dec 2022 | | — | — | — | — | | |||||||
Other comprehensive income Jan-Dec 2022 | | — | - | | | — | |||||||
Total comprehensive income Jan-Dec 2022 |
| | — | - | | |
| | |||||
Dividend | - | — | — | — | — | - | |||||||
Closing balance of equity December 31, 20221 |
| | | - |
| - |
| |
| | |||
Opening balance of equity January 1, 2023 |
| | | - | - | |
| | |||||
Net profit Jan-Jun 2023 |
| | — | — | — | — |
| | |||||
Other comprehensive income Jan-Jun 2023 | - | — | - | | | — | |||||||
Total comprehensive income Jan-Jun 2023 |
| | — | - |
| |
| |
| | |||
Dividend |
| — | — | — | — | — |
| — | |||||
Closing balance of equity June 30, 20231 |
| |
| |
| - |
| - |
| |
| |
1 |
Interim report January–June 2023 | Page 13 of 29 |
Condensed Statement of Cash Flows in the Consolidated Group (unaudited)
Jan-Jun | Jan-Jun | Jan-Dec | ||||
Skr mn |
| 2023 |
| 2022 |
| 2022 |
Operating activities | ||||||
Operating profit |
| |
| |
| |
Adjustments for non-cash items in operating profit | | | | |||
Income tax paid |
| - |
| - |
| - |
Changes in assets and liabilities from operating activities |
| - |
| - |
| - |
Cash flow from operating activities |
| - |
| - |
| - |
Investing activities | ||||||
Capital expenditures |
| - |
| - |
| - |
Cash flow from investing activities |
| - |
| - |
| - |
Financing activities | ||||||
Change in senior debt |
| |
| |
| |
Derivatives, net |
| |
| |
| |
Dividend paid |
| — |
| - |
| - |
Payment of lease liability | - | - | - | |||
Cash flow from financing activities |
| |
| |
| |
Cash flow for the period |
| |
| |
| - |
Cash and cash equivalents at beginning of the period |
| |
| |
| |
Cash flow for the period | | | - | |||
Exchange-rate differences on cash and cash equivalents |
| - |
| |
| |
Cash and cash equivalents at end of the period1 | |
| |
| |
1 |
Interim report January–June 2023 | Page 14 of 29 |
Notes
Note 1. Accounting policies
Note 2. Net interest income
Note 3. Net results of financial transactions
Note 4. Impairments
Note 5. Financial assets and liabilities at fair value
Note 6. Derivatives
Note 7. CIRR-system
Note 8. Pledged assets and contingent liabilities
Note 9. Capital adequacy
Note 10. Exposures
Note 11. Reference interest rate reform
Note 12. Transactions with related parties
Note 13. Events after the reporting period
References to “SEK” or the “Parent Company” are to AB Svensk Exportkredit. References to “Consolidated Group” are to SEK and its consolidated subsidiary. All amounts are in Skr million, unless otherwise indicated. All figures relate to the Consolidated Group, unless otherwise indicated.
Note 1. Accounting policies
This condensed interim report is presented in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting. The Consolidated Group’s consolidated accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), together with the interpretations from IFRS Interpretations Committee (IFRS IC). The IFRS standards applied by SEK are all endorsed by the European Union (EU). The accounting also follows the additional standards imposed by the Annual Accounts Act for Credit Institutions and Securities Companies (1995:1559) (ÅRKL) and the regulation and general guidelines issued by Finansinspektionen (the Swedish FSA), “Annual Reports in Credit Institutions and Securities Companies” (FFFS 2008:25). In addition to this, the supplementary accounting rules for groups (RFR 1) issued by the Swedish Financial Reporting Board have been applied. SEK also follows the state’s principles for external reporting in accordance with its State Ownership Policy and principles for state-owned enterprises.
The accounting policies, methods of computation and presentation of the Consolidated Group are, in all material aspects, the same as those used for the 2022 annual financial statements included in SEK’s 2022 Annual Report on Form 20-F, except for the changes described below. SEK analyzes and assesses the application and impact of changes in financial reporting standards that are applied within the Group. Changes that are not mentioned are either not applicable to SEK or have been determined to not have a material impact on SEK’s financial reporting.
Amendments to IAS 12 Income Taxes for deferred tax, which became effective for annual reporting periods beginning on or after January 1, 2023, relate to assets and liabilities arising from a single transaction. The amendments require companies to recognize deferred tax on particular transactions that, upon initial recognition, give rise to taxable and deductible temporary differences of equal amounts, for example a lease liability and its corresponding right-of-use asset at the commencement of the lease. The change affects SEK’s accounting principles, but has no material impact on SEK’s financial statements, capital adequacy or large exposure ratios. The transition effect for opening balances as of 2023 was insignificant.
There are no IFRS or IFRS Interpretations Committee interpretations that are not yet applicable that are expected to have a material impact on SEK’s financial statements, capital adequacy or large exposure ratios.
Interim report January–June 2023 | Page 15 of 29 |
Note 2. Net interest income
Apr-Jun | Jan–Mar | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | |||||||
Skr mn |
| 2023 |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| 2022 |
Interest income | ||||||||||||
Loans to credit institutions | |
| |
| | | |
| | |||
Loans to the public | |
| |
| | | |
| | |||
Loans in the form of interest-bearing securities | | |
| | | |
| | ||||
Interest-bearing securities excluding loans in the form of interest-bearing securities | | | | | | | ||||||
Derivatives | |
| |
| - | | - |
| - | |||
Administrative remuneration CIRR-system | | | | | | | ||||||
Other assets | | |
| | | |
| | ||||
Total interest income1 | |
| |
| | | |
| | |||
Interest expenses |
| |||||||||||
Interest expenses | - | - | - | - | - | - | ||||||
Resolution fee | - | - | - | - | - | - | ||||||
Risk tax | - | - | - | - | - | - | ||||||
Total interest expenses | - |
| - |
| - | - | - |
| - | |||
Net interest income | |
| |
| | | |
| |
1 | Interest income calculated using the effective interest method amounted to Skr |
Note 3. Net results of financial transactions
Apr-Jun | Jan–Mar | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | |||||||
Skr mn |
| 2023 |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| 2022 |
Derecognition of financial instruments not measured at fair value through profit or loss | | | | | | | ||||||
Financial assets or liabilities at fair value through profit or loss | - | - | - | - | - | - | ||||||
Financial instruments under fair-value hedge accounting | | - | | - | | | ||||||
Currency exchange-rate effects on all assets and liabilities excl. currency exchange-rate effects related to revaluation at fair value |
|
| |
| - |
| | - |
| - | ||
Total net results of financial transactions |
| - |
| - |
| - |
| - | - |
| |
Note 4. Impairments
Apr-Jun | Jan–Mar | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | |||||||
Skr mn |
| 2023 |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
| 2022 |
Expected credit losses, stage 1 | - | | - | | - | - | ||||||
Expected credit losses, stage 2 | | | | | | | ||||||
Expected credit losses, stage 3 | - | | - | - | - | - | ||||||
Established losses |
| — |
| — |
| — | — | — | — | |||
Reserves applied to cover established credit losses | — | — | — | — | — | — | ||||||
Recovered credit losses |
| |
| |
| | | |
| | ||
Net credit losses |
| - |
| |
| - | - | - |
| - |
June 30, 2023 | December 31, 2022 | |||||||||
Skr mn |
| Stage 1 |
| Stage 2 |
| Stage 3 |
| Total |
| Total |
Loans, before expected credit losses |
| |
| |
| |
| |
| |
Off-balance sheet exposures, before expected credit losses |
| |
| |
| |
| |
| |
Total, before expected credit losses |
| |
| |
| |
| |
| |
Loss allowance, loans |
| - |
| - |
| - |
| - |
| - |
Loss allowance, off-balance sheet exposures1 |
| - |
| - |
| |
| - |
| - |
Total loss allowance |
| - |
| - |
| - |
| - |
| - |
Provision ratio (in percent) |
| | | | | |
1 | Recognized under provision in Consolidated Statement of Financial Position. Off-balance sheet exposures consist of guarantee commitments, committed undisbursed loans and binding offers, see Note 8. |
Interim report January–June 2023 | Page 16 of 29 |
The table above shows the book value of loans and nominal amounts for off-balance sheet exposures before expected credit losses for each stage as well as related loss allowance amounts, in order to place expected credit losses in relation to credit exposures. Overall, the credit portfolio has an extremely high credit quality and SEK often uses risk mitigation measures, primarily through guarantees from the Swedish Export Credit Agency (EKN) and other government export credit agencies in the Organisation for Economic Co-operation and Development (OECD), which explains the low provision ratio.
Loss Allowance
June 30, 2023 | December 31, 2022 | |||||||||
Skr mn |
| Stage 1 |
| Stage 2 |
| Stage 3 |
| Total |
| Total |
Opening balance January 1 | - |
| - | - | - | - | ||||
Increases due to origination and acquisition | - |
| - |
| | - |
| - | ||
Net remeasurement of loss allowance | |
| |
| |
| |
| | |
Transfer to stage 1 | |
| — |
|
| | ||||
Transfer to stage 2 | |
| - |
| — |
| - |
| - | |
Transfer to stage 3 | |
| |
| - |
| - |
| - | |
Decreases due to derecognition | |
| |
| |
| |
| | |
Decrease in allowance account due to write-offs | — |
| — |
| — |
| — |
| — | |
Exchange-rate differences1 | - |
| - |
| - |
| - |
| - | |
Closing balance | - |
| - |
| - |
| - |
| - |
1 | Recognized under net results of financial transactions in Statement of Comprehensive Income. |
Provisions for expected credit losses (ECLs) are calculated using quantitative models based on inputs, assumptions and methods that are highly reliant on assessments. In particular, the following could heavily impact the level of provisions: the establishment of a material increase in credit risk, allowing for forward-looking macroeconomic scenarios, and the measurement of both ECLs over the next 12 months and lifetime ECLs. ECLs are based on objective assessments of what SEK expects to lose on the exposures given what was known on the reporting date and taking into account possible future events. The ECL is a probability-weighted amount that is determined by evaluating the outcome of several possible scenarios and where the data taken into consideration comprises information from previous conditions, current conditions and projections of future economic conditions. SEK’s method entails
Due to the current macroeconomic uncertainty, SEK has made an overall adjustment according to management’s overall assessment. This resulted in an increase of expected credit losses, which was calculated pursuant to SEK’s IFRS 9 model as of June 30, 2023.
Note 5. Financial assets and liabilities at fair value
June 30, 2023 | ||||||
Surplus value (+)/ | ||||||
Skr mn |
| Book value |
| Fair value |
| Deficit value (–) |
Cash and cash equivalents |
| |
| |
| — |
Treasuries/governments bonds |
| |
| |
| — |
Other interest-bearing securities except loans |
| |
| |
| — |
Loans in the form of interest-bearing securities |
| |
| |
| |
Loans to credit institutions |
| |
| |
| - |
Loans to the public |
| |
| |
| - |
Derivatives |
| |
| |
| — |
Total financial assets |
| |
| |
| - |
Borrowing from credit institutions |
| |
| |
| — |
Debt securities issued |
| |
| |
| |
Derivatives |
| |
| |
| — |
Total financial liabilities |
| |
| |
| |
Interim report January–June 2023 | Page 17 of 29 |
December 31, 2022 | ||||||
|
|
| Surplus value (+)/ | |||
Skr mn | Book value | Fair value | Deficit value (–) | |||
Cash and cash equivalents |
| |
| |
| — |
Treasuries/governments bonds |
| |
| |
| — |
Other interest-bearing securities except loans |
| |
| |
| — |
Loans in the form of interest-bearing securities |
| |
| |
| |
Loans to credit institutions |
| |
| |
| - |
Loans to the public |
| |
| |
| - |
Derivatives |
| |
| |
| — |
Total financial assets |
| |
| |
| - |
Borrowing from credit institutions |
| |
| |
| — |
Debt securities issued |
| |
| |
| - |
Derivatives |
| |
| |
| — |
Total financial liabilities |
| |
| |
| - |
Determination of fair value
The determination of fair value is described in the annual financial statements included in SEK’s 2022 Annual Report on Form 20-F, see Note 1 (h) (viii) Principles for determination of fair value of financial instruments and (ix) Determination of fair value of certain types of financial instruments.
Financial assets in fair value hierarchy
Financial assets at fair value | ||||||||
Skr mn |
| Level 1 |
| Level 2 |
| Level 3 |
| Total |
Treasuries/governments bonds |
| |
| |
| — |
| |
Other interest-bearing securities except loans |
| |
| |
| — |
| |
Derivatives |
| — |
| |
| |
| |
Total, June 30, 2023 | | | | | ||||
Total, December 31, 2022 |
| | | | |
Financial liabilities in fair value hierarchy
Financial liabilities at fair value | ||||||||
Skr mn |
| Level 1 |
| Level 2 |
| Level 3 |
| Total |
Debt securities issued |
| — |
| — |
| |
| |
Derivatives | — | | | | ||||
Total, June 30, 2023 | — | | | | ||||
Total, December 31, 2022 |
| — |
| |
| |
| |
A transfer of Skr
Financial assets and liabilities at fair value in Level 3, 2023
Gains (+) and | ||||||||||||||||||
Gains (+) and | losses (–) in | |||||||||||||||||
Transfers | losses (–) | Other | Exchange- | |||||||||||||||
January 1, | Settlements & | Transfers | from | through profit | comprehensive | rate | June 30, | |||||||||||
Skr mn |
| 2023 |
| Purchases |
| sales |
| to Level 3 |
| Level 3 |
| or loss1 |
| income |
| differences |
| 2023 |
Debt securities issued |
| - |
| - |
| |
| - |
| — |
| - |
| | |
| - | |
Derivatives, net |
| - |
| — |
| |
| — |
| — |
| |
| — | - |
| - | |
Net assets and liabilities |
| - |
| - |
| |
| - |
| — |
| - |
| | - |
| - |
Interim report January–June 2023 | Page 18 of 29 |
Financial assets and liabilities at fair value in Level 3, 2022
Gains (+) and | ||||||||||||||||||
Gains (+) and | losses (–) in | |||||||||||||||||
Transfers | losses (–) | Other | Exchange- | |||||||||||||||
January 1, | Settlements & | Transfers | from | through profit | comprehensive | rate | December 31, | |||||||||||
Skr mn |
| 2022 |
| Purchases |
| sales |
| to Level 3 |
| Level 3 |
| or loss1 |
| income |
| differences |
| 2022 |
Debt securities issued |
| - |
| - |
| |
| — |
| — |
| |
| - |
| - | - | |
Derivatives, net |
| - |
| |
| |
| — |
| — |
| - |
| — |
| - | - | |
Net assets and liabilities |
| - |
| - |
| |
| — |
| — |
| |
| - |
| - | - |
1 | Gains and losses through profit or loss, including the impact of exchange rates, is reported as net interest income and net results of financial transactions. The unrealized fair value changes for assets and liabilities, including the impact of exchange rates, held as of June 30, 2023, amounted to a Skr |
Uncertainty of valuation of Level 3 instruments
As the estimation of parameters included in the models used to calculate the market value of Level 3 instruments is associated with subjectivity and uncertainty, SEK has conducted an analysis of the difference in fair value of Level 3 instruments using other established parameter values. Option models and discounted cash flows are used to value the Level 3 instruments. For the Level 3 instruments that are significantly affected by different types of correlations, which are not based on observable market data, a revaluation has been made by shifting the correlations. The correlation is expressed as a value between 1 and -1, where 0 indicates no relationship,
Sensitivity analysis – level 3 assets and liabilities
Assets and liabilities | June 30, 2023 | |||||||||||
Range of estimates | ||||||||||||
Unobservable | for unobservable | Sensitivity | Sensitivity | |||||||||
Skr mn |
| Fair Value |
| input |
| input |
| Valuation method |
| max |
| min |
Equity |
| - |
| Correlation |
|
| Option Model |
| - | | ||
Interest rate |
| |
| Correlation |
|
| Option Model |
| | | ||
FX |
| - |
| Correlation |
|
| Option Model |
| - | | ||
Other |
| - |
| Correlation |
|
| Option Model |
| | | ||
Sum derivatives, net |
| - |
|
| - | | ||||||
Equity |
| - |
| Correlation |
|
| Option Model |
| | - | ||
|
| Credit spreads |
|
| Discounted cash flow |
| | - | ||||
Interest rate |
| - |
| Correlation |
|
| Option Model |
| | | ||
|
| Credit spreads |
|
| Discounted cash flow |
| | - | ||||
FX |
| - |
| Correlation |
|
| Option Model |
| | - | ||
|
| Credit spreads |
|
| Discounted cash flow |
| | - | ||||
Other |
| - |
| Correlation |
|
| Option Model |
| | | ||
|
|
| Credit spreads |
|
| Discounted cash flow |
| | - | |||
Sum debt securities issued |
| - |
|
| | - | ||||||
Total effect on total comprehensive income | | - | ||||||||||
Derivatives, net, December 31, 2022 | - | - | | |||||||||
Debt securities issued, December 31, 2022 | - | | - | |||||||||
Total effect on total comprehensive income, December 31, 2022 |
|
|
|
|
|
|
|
| |
| - |
The sensitivity analysis shows the effect that a shift in correlations or SEK’s own credit spread has on Level 3 instruments. The table presents maximum positive and negative change in fair value when correlations or SEK’s own credit is +/–
Interim report January–June 2023 | Page 19 of 29 |
Fair value related to credit risk
Fair value originating from credit risk | The period’s change in fair value originating | |||||||
(- liabilities increase/ + liabilities decrease) | from credit risk (+ income/ - loss) | |||||||
June 30, | December 31, | Jan-Jun | Jan-Jun | |||||
Skr mn |
| 2023 |
| 2022 |
| 2023 |
| 2022 |
CVA/DVA, net1 | - | - | - | - | ||||
OCA2 | - | - | | |
1 | Credit value adjustment (CVA) and Debt value adjustment (DVA) reflects how the counterparties’ credit risk as well as SEK’s own credit rating affects the fair value of derivatives. |
2 | Own credit adjustment (OCA) reflects how the changes in SEK’s credit rating affects the fair value of financial liabilities measured at fair value through profit and loss. |
Note 6. Derivatives
Derivatives by category
June 30, 2023 | December 31, 2022 | |||||||||||
Assets | Liabilities | Nominal | Assets | Liabilities | Nominal | |||||||
Skr mn |
| Fair value |
| Fair value |
| amounts |
| Fair value |
| Fair value |
| amounts |
Interest rate-related contracts |
| |
| |
| |
| |
| |
| |
Currency-related contracts |
| |
| |
| |
| |
| |
| |
Equity-related contracts |
| |
| |
| |
| |
| |
| |
Contracts related to commodities, credit risk, etc. |
| — |
| |
| |
| — |
| |
| |
Total derivatives |
| |
| |
| |
| |
| |
| |
In accordance with SEK’s policies with regard to counterparty, interest rate, currency exchange, and other exposures, SEK uses, and is a party to, different kinds of derivative instruments, mostly various interest rate-related and currency exchange-related contracts, primarily to hedge risk exposure inherent in financial assets and liabilities. These contracts are carried at fair value in the statements of financial position on a contract-by-contract basis.
Note 7. CIRR-system
Pursuant to the company’s assignment as stated in its owner instruction issued by the Swedish government, SEK administers credit granting in the Swedish system for officially supported export credits (CIRR-system). SEK receives compensation from the Swedish government in the form of an administrative compensation, which is calculated based on the principal amount outstanding.
The administrative compensation paid by the state to SEK is recognized in the CIRR-system as administrative remuneration to SEK. Refer to the following tables of the statement of comprehensive income and statement of financial positions for the CIRR-system, presented as reported to the owner. Interest expenses includes interest expenses for loans between SEK and the CIRR-system which reflects the borrowing cost for the CIRR-system. Interest expenses for derivatives hedging CIRR-loans are also recognized as interest expenses, which differs from SEK’s accounting principles. Arrangement fees to SEK are recognized together with other arrangement fees as interest expenses.
In addition to the CIRR-system, SEK administers the Swedish government’s previous concessionary credit program according to the same principles as the CIRR-system. No new lending is being offered under the concessionary credit program. As of June 30, 2023, concessionary loans outstanding amounted to Skr
Statement of Comprehensive Income for the CIRR-system
Apr-Jun | Jan–Mar | Apr-Jun | Jan-Jun | Jan-Jun | Jan-Dec | |||||||
Skr mn |
| 2023 |
| 2023 | 2022 | 2023 |
| 2022 |
| 2022 | ||
Interest income |
| |
| | | |
| |
| | ||
Interest expenses |
| - |
| - | - | - |
| - |
| - | ||
Interest compensation |
| — |
| — | | — |
| |
| | ||
Exchange-rate differences |
| |
| | | |
| |
| | ||
Profit before compensation to SEK | | | | | | | ||||||
Administrative remuneration to SEK | - | - | - | - | - | - | ||||||
Operating profit CIRR-system | | | - | | - | - | ||||||
Reimbursement to (–) / from (+) the State |
| - |
| - | | - |
| |
| |
Interim report January–June 2023 | Page 20 of 29 |
Statement of Financial Position for the CIRR-system
June 30, | December 31, | |||
Skr mn |
| 2023 |
| 2022 |
Cash and cash equivalents |
| |
| |
Loans |
| |
| |
Derivatives |
| |
| |
Other assets |
| |
| |
Prepaid expenses and accrued revenues |
| |
| |
Total assets |
| |
| |
Liabilities |
| |
| |
Derivatives |
| — |
| — |
Accrued expenses and prepaid revenues |
| |
| |
Total liabilities |
| |
| |
Commitments |
|
| ||
Committed undisbursed loans |
| |
| |
Binding offers |
| — |
| — |
Note 8. Pledged assets and contingent liabilities
June 30, | December 31, | |||
Skr mn |
| 2023 |
| 2022 |
Collateral provided |
|
|
|
|
Cash collateral under the security agreements for derivative contracts |
| |
| |
Contingent liabilities1 |
|
|
|
|
Guarantee commitments |
| |
| |
Commitments1 |
|
|
|
|
Committed undisbursed loans |
| |
| |
Binding offers |
| — |
| — |
1 | For expected credit losses in guarantee commitments, committed undisbursed loans and binding offers, see Note 4. |
Note 9. Capital adequacy
The capital adequacy analysis relates to the parent company AB Svensk Exportkredit. The information is disclosed according to FFFS 2014:12 and FFFS 2008:25. For further information on capital adequacy and risks, see Note 30 to the annual financial statements included in SEK’s 2022 Annual Report on Form 20-F and see SEK’s 2022 Capital Adequacy and Risk Management (Pillar 3) Report.
Capital Adequacy Analysis
| June 30, 2023 |
| December 31, 2022 | |
Capital ratios |
| percent1 |
| percent1 |
Common Equity Tier 1 capital ratio |
| | | |
Tier 1 capital ratio |
| | | |
Total capital ratio |
| | |
1 | Capital ratios exclusive of buffer requirements are the quotients of the relevant capital measure and the total risk exposure amount. See tables Own funds – adjusting items and Minimum capital requirements exclusive of buffer. |
Interim report January–June 2023 | Page 21 of 29 |
June 30, 2023 | December 31, 2022 | |||||||
Total risk-based capital requirement |
| Skr mn |
| percent1 |
| Skr mn |
| percent1 |
Capital base requirement of 8 percent2 | | | | | ||||
of which Tier 1 requirement of 6 percent | | | | | ||||
of which minimum requirement of 4.5 percent | | | | | ||||
Pillar 2 capital requirements3 | | | | | ||||
Common Equity Tier 1 capital available to meet buffer requirements4 | | | | | ||||
Capital buffer requirements | | | | | ||||
of which Capital conservation buffer |
| |
| | |
| | |
of which Countercyclical buffer |
| |
| | |
| | |
Pillar 2 guidance5 | | | | | ||||
Total risk-based capital requirement including Pillar 2 guidance |
| |
| | |
| |
1 | Expressed as a percentage of total risk exposure amount. |
2 | The minimum requirements according to CRR (Regulation (EU) No 575/2013 of the European Parliament and of the Council of June 26, 2013, on prudential requirements for credit institutions and investment firms). |
3 | Individual Pillar 2 requirement of |
4 | Common Equity Tier 1 capital available to meet buffer requirement after |
5 | The Swedish FSA notified SEK on September 29, 2021, within the latest SREP, that in addition to the capital requirements according to Regulation (EU) no 575/2013 on prudential requirements, SEK should hold additional capital (Pillar 2 guidance) of |
| June 30, 2023 |
| December 31, 2022 | |
Leverage ratio1 | Skr mn | Skr mn | ||
On-balance sheet exposures |
| |
| |
Off-balance sheet exposures |
| |
| |
Total exposure measure |
| |
| |
Leverage ratio2 |
|
1 | The leverage ratio reflects the full impact of IFRS 9 as no transitional rules were utilized. |
2 | Defined by CRR as the quotient of the Tier 1 capital and an exposure measure. |
| June 30, 2023 |
| December 31, 2022 | |||||
Total Leverage ratio requirement |
| Skr mn |
| percent1 |
| Skr mn |
| percent1 |
Capital base requirement of | | | | | ||||
Pillar 2 guidance2 | | | | | ||||
Total capital requirement relating to Leverage ratio including Pillar 2 guidance | | | | |
1 | Expressed as a percentage of total exposure amount. |
2 | The Swedish FSA has on September 29, 2021, notified SEK, within the latest SREP, that SEK may hold additional capital (Pillar 2 guidance) of |
Own funds – Adjusting items
June 30, | December 31, | |||
Skr mn |
| 2023 |
| 2022 |
Share capital |
| |
| |
Retained earnings |
| |
| |
Accumulated other comprehensive income and other reserves |
| |
| |
Independently reviewed profit net of any foreseeable charge or dividend |
| |
| |
Common Equity Tier 1 (CET1) capital before regulatory adjustments |
| |
| |
Additional value adjustments due to prudent valuation |
| - |
| - |
Intangible assets |
| - |
| - |
Fair value reserves related to gains or losses on cash flow hedges |
| |
| |
Gains or losses on liabilities valued at fair value resulting from changes in own credit standing |
| - |
| |
Negative amounts resulting from the calculation of expected loss amounts | - | - | ||
Insufficient coverage for non-performing exposures | - | — | ||
Total regulatory adjustments to Common Equity Tier 1 capital |
| - |
| - |
Total Common Equity Tier 1 capital |
| |
| |
Total Own funds |
| |
| |
Interim report January–June 2023 | Page 22 of 29 |
Minimum capital requirements exclusive of buffer
June 30, 2023 | December 31, 2022 | |||||||||||
Minimum | Minimum | |||||||||||
|
| Risk exposure |
| capital |
|
| Risk exposure |
| capital | |||
Skr mn | EAD1 | amount | requirement | EAD1 | amount | requirement | ||||||
Credit risk standardized method |
|
|
|
|
|
|
| |||||
Corporates |
| |
| |
| |
| |
| |
| |
Exposures in default | | | | | | | ||||||
Total credit risk standardized method |
| |
| |
| |
| |
| |
| |
Credit risk IRB method |
| |||||||||||
Central Governments | | | | | | | ||||||
Financial institutions2 |
| |
| |
| |
| |
| |
| |
Corporates3 |
| |
| |
| |
| |
| |
| |
Assets without counterparty | | | | | | | ||||||
Total credit risk IRB method |
| |
| |
| |
| |
| |
| |
Credit valuation adjustment risk |
| n.a. |
| |
| |
| n.a. |
| |
| |
Foreign exchange risk |
| n.a. |
| |
| |
| n.a. |
| |
| |
Commodities risk |
| n.a. |
| |
| |
| n.a. |
| |
| |
Operational risk |
| n.a. |
| |
| |
| n.a. |
| |
| |
Total |
| |
| |
| |
| |
| |
| |
1 | Exposure at default (EAD) shows the size of the outstanding exposure at default. |
2 | Of which counterparty risk in derivatives: EAD Skr |
3 | Of which related to specialized lending: EAD Skr |
Credit risk
For classification and quantification of credit risk, SEK uses the internal ratings-based (IRB) approach. Specifically, SEK applies the Foundation Approach. Under the Foundation Approach, the company determines the PD within one year for each of its counterparties, while the remaining parameters are established in accordance with CRR. Application of the IRB approach requires the Swedish FSA’s permission and is subject to ongoing supervision. Certain exposures are, by permission from the Swedish FSA, exempted from application of the IRB approach, and, instead, the standardized approach is applied. Counterparty risk exposure amounts in derivatives are calculated in accordance with the standardized approach for counterparty credit risk.
Credit valuation adjustment risk
Credit valuation adjustment risk is calculated for all over-the-counter derivative contracts, except for credit derivatives used as credit protection and transactions with a qualifying central counterparty. SEK calculates this capital requirement according to the standardized approach.
Foreign exchange risk
Foreign exchange risk is calculated according to the standardized approach, whereas the scenario approach is used for calculating the gamma and volatility risks.
Commodities risk
Capital requirements for commodity risk are calculated in accordance with the simplified approach under the standardized approach. The scenario approach is used for calculating the gamma and volatility risks.
Operational risk
Capital requirement for operational risk is calculated according to the standardized approach. The company’s operations are divided into business areas as defined in the CRR. The capital requirement for each area is calculated by multiplying a factor depending on the business area by an income indicator. The factors applicable for SEK are
Transitional rules
The capital adequacy ratios reflect the full impact of IFRS 9 as no transitional rules for IFRS 9 were utilized.
Interim report January–June 2023 | Page 23 of 29 |
Capital buffer requirements
SEK expects to meet capital buffer requirements with Common Equity Tier 1 capital. The mandatory capital conservation buffer is
Pillar 2 guidance
The Swedish FSA will in connection with the Supervisory Review and Evaluation Process (“SREP”) determine appropriate levels for the institution’s own funds. The Swedish FSA will then inform the institution of the differences between the appropriate levels and requirements under the Supervisory Regulation, the Buffer Act and the Pillar 2 requirements. These notifications are called Pillar 2 guidance. The Pillar 2 guidance covers both the risk-based capital requirement and the leverage ratio requirement.
Internally assessed economic capital
June 30, | December 31, | |||
Skr mn |
| 2023 |
| 2022 |
Credit risk |
| |
| |
Operational risk |
| |
| |
Market risk |
| |
| |
Other risks |
| |
| |
Capital planning buffer | | | ||
Total |
| |
| |
SEK regularly conducts an internal capital adequacy assessment process, during which the company determines how much capital is needed in order to cover its risks. The result of SEK’s assessment of capital adequacy is presented above. For more information regarding the internal capital adequacy assessment process and its methods, see Note 30 to the annual financial statements included in SEK’s 2022 Annual Report on Form 20-F.
Liquidity coverage
June 30, | December 31, | |||
Skr bn, 12-month average |
| 2023 |
| 2022 |
Total liquid assets |
| |
| |
Net liquidity outflows1 |
| |
| |
Liquidity outflows | | | ||
Liquidity inflows |
| |
| |
Liquidity Coverage Ratio |
|
1 | Net liquidity outflows are calculated as the net of liquidity outflows and capped liquidity inflows. Capped liquidity inflows are calculated in accordance with article 425 of CRR (EU 575/2013) and article 33 of the Commission Delegated Regulation (EU) 2015/61. |
Information on Liquidity Coverage Ratio (LCR) in accordance with article 447 of the CRR (EU 575/2013), calculated in accordance with the Commission Delegated Regulation (EU) 2015/61.
Net stable funding
| June 30, |
| December 31, | |
Skr bn | 2023 | 2022 | ||
Available stable funding |
| |
| |
Requiring stable funding |
| |
| |
Net Stable Funding Ratio |
|
Information on Net Stable Funding Ratio (NSFR) in accordance with article 447 of the CRR (EU 575/2013), calculated in accordance with the Commission Delegated Regulation (EU) 2015/61.
Interim report January–June 2023 | Page 24 of 29 |
Note 10. Exposures
Net exposures are reported after taking into consideration effects of guarantees and credit default swaps. Amounts are calculated in accordance with capital adequacy calculations, but before the application of credit conversion factors.
Total net exposures by exposure class
Credits & interest-bearing | Committed undisbursed loans, | |||||||||||||||||||||||
securities | derivatives, etc. | Total | ||||||||||||||||||||||
June 30, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||
Skr bn |
| Amount |
| % |
| Amount |
| % |
| Amount |
| % |
| Amount |
| % |
| Amount |
| % |
| Amount |
| % |
Central governments |
| |
| |
| |
| |
| |
| |
|
| |
| |
| |
| |
| | |
Regional governments |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Multilateral development banks |
| |
| |
| |
| |
| — |
| — |
| |
| |
| |
| |
| |
| |
Public Sector Entity | | | | | — | — | — | — | | | | | ||||||||||||
Financial institutions |
| |
| |
| |
| |
| |
| |
|
| |
| |
| |
| |
| | |
Corporates |
| |
| |
| |
| |
| |
| |
|
| |
| |
| |
| |
| | |
Total |
| |
| |
| |
| |
| |
| |
|
| |
| |
| |
| |
| |
Net exposure by region and exposure class, as of June 30, 2023
West | ||||||||||||||||||
European | Central- | |||||||||||||||||
Middle | countries | and East | ||||||||||||||||
East/ | Asia excl. | North | Latin | excl. | European | |||||||||||||
Skr bn |
| Africa |
| Japan |
| Japan |
| America |
| America |
| Sweden |
| Sweden |
| countries |
| Total |
Central governments |
|
|
|
|
| — |
|
|
|
| ||||||||
Regional governments |
| — |
| — |
| — |
| — |
| — |
|
|
| — |
| |||
Multilateral development banks |
| — |
|
| — |
| — |
| — |
| — |
|
| — |
| |||
Public Sector Entity | — | — | — | — | — | — | — | |||||||||||
Financial institutions |
| |
| — |
|
|
| — |
|
|
|
| ||||||
Corporates |
| |
|
|
|
| |
|
|
|
| |||||||
Total |
| |
|
|
|
|
|
|
|
Net exposure by region and exposure class, as of December 31, 2022
West |
| |||||||||||||||||
European | Central- | |||||||||||||||||
Middle | countries | and East | ||||||||||||||||
East/ | Asia excl. | North | Latin | excl. | European |
| ||||||||||||
Skr bn |
| Africa |
| Japan |
| Japan |
| America |
| America |
| Sweden |
| Sweden |
| countries |
| Total |
Central governments |
|
|
|
|
| — |
|
|
|
| ||||||||
Regional governments |
| — |
| — |
| — |
| — |
| — |
|
|
| — |
| |||
Multilateral development banks |
| — |
|
| — |
|
| — |
| — |
|
| — |
| ||||
Public Sector Entity | — | — | — | — | — | — | — | |||||||||||
Financial institutions |
|
| — |
|
|
| — |
|
|
|
| |||||||
Corporates |
|
|
|
|
|
|
|
|
| |||||||||
Total |
|
|
|
|
|
|
|
|
Interim report January–June 2023 | Page 25 of 29 |
Net exposure to European countries, excluding Sweden
| June 30, |
| December 31, | |
Skr bn | 2023 | 2022 | ||
Germany |
| |
| |
France |
| |
| |
Finland | | | ||
Luxembourg |
| |
| |
United Kingdom |
| |
| |
Denmark |
| |
| |
Norway |
| |
| |
The Netherlands |
| |
| |
Belgium | | | ||
Poland |
| |
| |
Austria |
| |
| |
Spain |
| |
| |
Ireland |
| |
| |
Portugal |
| |
| |
Switzerland |
| |
| |
Serbia | | | ||
Lithuania |
| |
| |
Italy | | | ||
Czech Republic | | | ||
Estonia |
| |
| |
Latvia |
| |
| |
Iceland |
| |
| |
Slovakia |
| |
| |
Total |
| |
| |
Note 11. Reference interest rate reform
Since the 2010s, there has been an ongoing reform to replace or amend benchmark interest rates such as LIBOR and other interbank offered rates (“IBOR”). SEK has been directly affected by the reference interest rate reform primarily from its lending contracts with floating interest rates, its lending and borrowing contracts at fixed interest rates that are hedged to floating interest rates as well as swaps to floating interest rates. All LIBORs, except for certain USD LIBOR settings, ceased to exist by the end of 2021 and were replaced by alternative reference rates. The final LIBOR maturities ceased to exist following June 30, 2023. Nordic IBORs such as STIBOR, CIBOR and NIBOR are expected to continue to exist. SEK has lending contracts maturing after June 30, 2023, in USD LIBOR with a nominal amount of USD
Note 12. Transactions with related parties
Transactions with related parties are described in Note 27 to the annual financial statements in SEK’s 2022 Annual Report on Form 20-F. No material changes have taken place in relation to transactions with related parties compared to the description in SEK’s 2022 Annual Report on Form 20-F.
Note 13. Events after the reporting period
No events with significant impact on the information in this report have occurred after the end of the reporting period.
Interim report January–June 2023 | Page 26 of 29 |
The Board of Directors and the Chief Executive Officer confirm that this interim report provides a fair overview of the Consolidated Group’s operations and financial position and results, and describes material risks and uncertainties facing the Consolidated Group.
Stockholm, July 14, 2023
AB SVENSK EXPORTKREDIT
SWEDISH EXPORT CREDIT CORPORATION
Lennart Jacobsen |
| Håkan Berg |
| |
| Chairman of the Board |
| Director of the Board |
|
Anna Brandt |
| Paula da Silva |
| Reinhold Geijer |
Director of the Board |
| Director of the Board |
| Director of the Board |
Hanna Lagercrantz | Katarina Ljungqvist | Eva Nilsagård | ||
Director of the Board | Director of the Board | Director of the Board |
Magnus Montan |
Chief Executive Officer |
SEK has established the following expected dates for the publication of financial information and other related matters:
October 18, 2023 |
| Interim report for the period January 1, 2023 - September 30, 2023 |
January 23, 2024 |
| Interim report for the period January 1, 2023 - December 31, 2023 |
The report contains information that SEK will disclose pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on July 14, 2023, 15:00 (CEST).
Additional information about SEK, including investor presentations and SEK’s 2022 Annual Report on Form 20-F, is available at www.sek.se. Information available on or accessible through SEK’s website is not incorporated herein by reference.
Alternative performance measures (see *)
Alternative performance measures (APMs) are key performance indicators that are not defined under IFRS or in the Capital Requirements Directive IV (CRD IV) or in regulation (EU) No. 575/2013 on prudential requirements for credit institutions and investment firms (CRR). SEK has presented these, either because they are in common use within the industry or because they comply with SEK’s assignment from the Swedish government. The APMs are used internally to monitor and manage operations, and are not considered to be directly comparable with similar key performance indicators presented by other companies. For additional information regarding the APMs, refer to www.sek.se.
*After-tax return on equity
Net profit, expressed as a percentage per annum of the current year’s average equity (calculated using the opening and closing balances for the report period).
*Average interest-bearing assets
This item includes cash and cash equivalents, treasuries/government bonds, other interest-bearing securities except loans, loans in the form of interest-bearing securities, loans to credit institutions and loans to the public, and is calculated using the opening and closing balances for the reporting period.
*Average interest-bearing liabilities
This item includes borrowing from credit institutions, borrowing from the public and debt securities issued and is calculated using the opening and closing balances for the reporting period.
Basic and diluted earnings per share (Skr)
Net profit divided by the average number of shares, which amounted to 3,990,000 for each period.
*CIRR loans as percentage of new lending
The proportion of officially supported export credits (CIRR) of new lending.
CIRR-system
The CIRR-system comprises of the system of -officially supported export credits (CIRR).
Common Equity Tier 1 capital ratio
The capital ratio is the quotient of total common equity tier 1 capital and the total risk exposure amount.
Green bond
A green bond is a bond where the capital is earmarked for various forms of environmental projects.
Green lending and green loans
SEK’s green lending comprises green loans that promote the transition to a low-carbon economy. The classification is performed by sustainability analysts at SEK. The effects that the loan will give rise to, such as reduced emissions of greenhouse gases, are monitored and reported. Green loans are categorized under SEK’s framework for green bonds and green loans finance products or services that lead to significant and demonstrable progress toward the goal of sustainable development.
Leverage ratio
Tier 1 capital expressed as a percentage of the exposure measured under CRR (refer to Note 9).
Liquidity coverage ratio (LCR)
The liquidity coverage ratio is a liquidity metric that shows SEK’s highly liquid assets in relation to the company’s net cash outflows for the next 30 calendar days. An LCR of 100 percent means that the company’s liquidity reserve is of sufficient size to enable the company to manage stressed liquidity outflows over a period of 30 days. Unlike the Swedish FSA’s rules, the EU rules take into account the outflows that correspond to the need to pledge collateral for derivatives that would arise as a result of the effects of a negative market scenario.
Loans
Lending pertains to all credit facilities provided in the form of interest-bearing securities, and credit facilities granted by traditional documentation. SEK considers these amounts to be useful measurements of SEK’s lending volumes. Accordingly, comments on lending volumes in this report pertain to amounts based on this definition.
*Loans, outstanding and undisbursed
The total of loans in the form of interest-bearing securities, loans to credit institutions, loans to the public and loans, outstanding and undisbursed. Deduction is made for cash collateral under the security agreements for derivative contracts and deposits with time to maturity exceeding three months (see the Statement of Financial Position and Note 8).
Net stable funding ratio (NSFR)
This ratio measures stable funding in relation to the company’s illiquid assets over a one-year, stressed scenario in accordance with CRRII.
*New lending
New lending includes all new committed loans, irrespective of tenor. Not all new lending is reported in the Consolidated Statement of Financial Position and the Consolidated Statement of Cash Flows since certain portions comprise committed undisbursed loans (see Note 8). The amounts reported for committed undisbursed loans may change when presented in the Consolidated Statement of Financial Position due to changes in exchange rates, for example.
*New long-term borrowings
New borrowings with maturities exceeding one year, for which the amounts are based on the trade date.
*Outstanding senior debt
The total of borrowing from credit institutions, borrowing from the public and debt securities issued.
Own credit risk
Net fair value change due to credit risk on financial liabilities designated as at fair value through profit or loss.
Repurchase and redemption of own debt
The amounts are based on the trade date.
Social loans
Social loans are offered to exporters and suppliers for projects, often in developing countries, whose aim is to improve social conditions.
Sustainability-linked loans
Sustainability-linked loans concern working capital connected to the borrower’s sustainability targets, for example, energy-efficiency enhancements, reduced transportation or reduced number of accidents. If the borrower reaches their targets, they are rewarded with a lower interest rate.
Swedish exporters
SEK’s clients that directly or indirectly promote Swedish export.
Tier 1 capital ratio
The capital ratio is the quotient of total tier 1 capital and the total risk exposure amount.
Total capital ratio
The capital ratio is the quotient of total Own funds and the total risk exposure amount.
Unless otherwise stated, amounts in this report are in millions (mn) of Swedish kronor (Skr), abbreviated “Skr mn” and relate to the group consisting of the Parent Company and its consolidated subsidiary (together, the “Group” or the “Consolidated Group”). AB Svensk Exportkredit (SEK), is a Swedish corporation with the identity number 556084-0315, and with its registered office in Stockholm, Sweden. SEK is a public limited liability company as defined in the Swedish Companies Act. In some instances, under Swedish law, a public company is obliged to add “(publ.)” to its company name.
Interim report January–June 2023 | Page 28 of 29 |
About Swedish Export Credit Corporation (SEK)
SEK is owned by the Swedish state, and since 1962 has enabled growth for thousands of Swedish companies. To expand their production, make acquisitions, employ more people and enable selling goods and services to customers worldwide.
SEK’s mission | Our mission is to ensure access to financial solutions for the Swedish export industry on commercial and sustainable terms. The mission includes making available fixed-interest export credits within the officially supported CIRR-system.
|
SEK’s vision | Our vision is a sustainable world through increased Swedish exports.
|
SEK’s core values | We are professionals, make the difficult easy and build sustainable relationships.
|
SEK’s clients | We finance exporters, their subcontractors and foreign clients. The target group is companies with annual sales exceeding Skr 500 million and that are linked to Swedish interests and exports.
|
SEK’s partnerships | Through Team Sweden, we have close partnerships with other export promotion agencies in Sweden such as Business Sweden and The Swedish Export Credit Agency (EKN). Our international network is substantial and we also work with numerous Swedish and international banks. |
Interim report January–June 2023 | Page 29 of 29 |