January–March 2024

 

(Compared to the period January-March 2023)

 

●	Net interest income Skr 770 million (3M23: Skr 633 million)
●	Operating profit Skr 216 million (3M23: Skr 420 million)
●	Net profit Skr 171 million (3M23: Skr 334 million)
●	Lending portfolio growth 0.1 percent (3M23: 3.4 percent)
●	New lending Skr 14.1 billion (3M23: Skr 13.8 billion)
●	Basic and diluted earnings per share Skr 43 (3M23: Skr 84)
●	After-tax return on equity 3.0 percent (3M23: 6.1 percent)

 

Equity and balances

 

(Compared to December 31, 2023)

 

●	Total capital ratio 20.8 percent (year-end 2023: 21.3 percent)
●	Total assets Skr 374.7 billion (year-end 2023: Skr 365.9 billion)
●	Total lending portfolio Skr 283.5 billion (year-end 2023: Skr 283.3 billion)
	– of which sustainability classified lending Skr 45.2 billion (year-end 2023: Skr 44.6 billion)
●	Loans, outstanding and undisbursed Skr 339.8 billion (year-end 2023: Skr 338.3 billion)
●	Outstanding senior debt Skr 329.8 billion (year-end 2023: Skr 317.7 billion)
	– of which green borrowings Skr 25.3 billion (year-end 2023: Skr 23.7 billion)

 

 

 

High levels of activity

 

SEK experienced high levels of activity during the first quarter of 2024 with existing and potential customers. The fact that SEK acquired several new customers during the period, all mid corporates, demonstrates SEK’s strength and growth in this customer segment. Several of them have joined via SEK’s fairly recently opened office in Malmö.

During the quarter, SEK participated in a delegation and state visit to Mexico together with approximately 30 Swedish companies and it also sponsored GigaEurope, Europe’s leading trade fair for battery value chains.

Many customers took advantage of active capital markets, which impacted pricing and demand for credits. Similar to 2023, SEK has noticed some remaining caution among customers who are affected by the current geopolitical situation and therefore delaying investment decisions.

Sweden is facing uncertain economic conditions and even if inflation is slowing, interest rates are still high. In the two most recent quarters, SEK noted an increase in confirmed credit losses and in provisions for expected credit losses. This increase was against the backdrop of a downturn in the state of the economy combined with the fact that some projects aimed to manage climate change show both delays and price increases. SEK still has a very high credit rating and stable lending portfolio.

 

SEK’s lending
Skr bn	Jan-Mar 2024	Jan-Mar 2023	Jan-Dec 2023
New lending to Swedish exporters1	5.1	5.4	29.8
New lending to exporters’ customers2	9.0	8.3	50.4
Total new lending	14.1	13.8	80.2
of which CIRR-loans	1.5	–	5.5
Total lending portfolio	283.5	282.7	283.3

 

1

Of which Skr 1.1 billion (3M23: Skr 0.9 billion; year-end 2023: Skr 1.2 billion) had not been disbursed at period end.

2	Of which Skr 1.6 billion (3M23: Skr 0.0 billion; year-end 2023: Skr 9.5 billion) had not been disbursed at period end.

 

 

 

Strong demand in capital markets

 

Despite continued uncertainty and a worrying geopolitical situation, in the first quarter of 2024 markets focused on the fact that the majority of central banks stopped increasing interest rates. The question is now when the first interest rate cuts will be implemented and how significant they will be over time.

Strong demand in capital markets resulted in record-high order books and volumes during the first quarter. SEK successfully issued a USD 1 billion five-year bond at the start of February 2024. Additionally, SEK issued green bonds denominated in Swedish krona for a total of Skr 2 billion.

A number of smaller transactions were completed in various currencies and maturities during the quarter. In the first quarter of 2024, SEK raised borrowings of approximately Skr 17 billion with maturities of more than one year compared with approximately Skr 34 billion in the first quarter of 2023.

 

SEK’s borrowing
Skr bn	Jan-Mar 2024	Jan-Mar 2023	Jan-Dec 2023
New long-term borrowing	16.8	34.3	126.2
New short-term borrowing	21.3	20.5	50.1
Outstanding senior debt	329.8	345.0	317.7
Repurchase and redemption of own debt	4.1	1.4	12.4

 

 

 

 

 

January–March 2024

 

Operating profit amounted to Skr 216 million (3M23: Skr 420 million). Net profit amounted to Skr 171 million (3M23: Skr 334 million). The decrease in net profit compared to the same period in the previous year was primarily the result of higher net credit losses, offset in part by higher net interest income.

 

Net interest income

Net interest income amounted to Skr 770 million (3M23: Skr 633 million), representing an increase of 22 percent compared to the same period in the previous year. Higher margins in the 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.

 

Skr bn, average	Jan-Mar 2024	Jan-Mar 2023	Change
Total lending portfolio	283.4	278.1	2%
Liquidity investments	63.1	81.9	-23%
Interest-bearing assets	354.4	369.7	-4%
Interest-bearing liabilities	323.8	335.6	-4%

 

Net results of financial transactions

Net results of financial transactions amounted to Skr -35 million (3M23: Skr -50 million). The results were primarily explained by unrealised value changes of financial instruments caused by changes in cross-currency basis spreads.

 

Operating expenses

Operating expenses amounted to Skr -181 million (3M23: Skr -173 million), representing an increase of 5 percent compared to the same period in the previous year. The increase is primarily due to personnel expenses that have increased by Skr 7 million. No provision was made for the individual variable remuneration program (3M23: –).

 

Net credit losses

Net credit losses amounted to Skr -327 million (3M23: Skr 17 million). Net credit losses were mainly attributable to increased provisions for expected credit losses for two individual exposures in stage 3. During the first quarter of 2024 SEK had established losses amounting to Skr 113 million attributable to one exposure that had previously been fully reserved. The loss was established in connection with a restructuring process. SEK assesses that the credit quality of its lending portfolio remains high.

Loss allowances as of March 31, 2024, amounted to Skr -1,034 million compared to Skr -795 million as of December 31, 2023, of which exposures in stage 3 amounted to Skr -890 million (year-end 2023: Skr -567 million). The provision ratio amounted to 0.30 percent (year-end 2023: 0.23 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 -45 million (3M23: Skr -86 million), and the effective tax rate amounted to 20.8 percent (3M23: 20.5 percent).

 

Other comprehensive income (OCI)

Other comprehensive income before tax amounted to Skr 68 million (3M23: Skr 20 million). The result is mainly explained by a positive result related to changes in own credit risk due to increased credit spreads on long maturities in euro.

 

Statement of Financial Position

 

Total assets and liquidity investments

Total assets increased by 2 percent compared to year-end 2023. An increased volume of liquidity investments drove the increase in the company’s assets.

 

Skr bn	March 31, 2024	December 31, 2023	Change
Total assets	374.7	365.9	2%
Liquidity investments	69.6	56.6	23%
Total lending portfolio	283.5	283.3	0%
of which sustainability classified	45.2	44.6	1%
of which CIRR-loans	102.1	101.4	1%

 

Liabilities and equity

As of March 31, 2024, 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 125 billion. The credit facility can be utilized when the Swedish export industry’s demand for financing is particularly high.

 

 

Capital adequacy

As of March 31, 2024, SEK’s total own funds amounted to Skr 22.4 billion (year-end 2023: Skr 22.3 billion). The total capital ratio was 20.8 percent (year-end 2023: 21.3 percent), representing a margin of 3.5 percentage points above SEK’s estimate of Finansinspektionen’s (the “Swedish FSA”) requirement of 17.3 percent as of March 31, 2024. 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 8.6 percentage points above the requirement. Overall, SEK is strongly capitalized.

 

Percent	March 31, 2024	December 31, 2023
Common Equity Tier 1 capital ratio	20.8	21.3
Tier 1 capital ratio	20.8	21.3
Total capital ratio	20.8	21.3
Leverage ratio	8.8	9.3
Liquidity coverage ratio (LCR)	509	494
Net stable funding ratio (NSFR)	136	131

 

Rating

 

	Skr	Foreign currency
Moody’s	Aa1/Stable	Aa1/Stable
Standard & Poor’s	AA+/Stable	AA+/Stable

 

Other events

 

At SEK’s annual general meeting held on March 26, 2024, after six years of service, Anna Brandt stepped down from her position as a member of the Board of Directors of SEK (the “Board”), and Carl Mellander was elected as a new member of the Board. A resolution was passed at the annual general meeting to adopt the income statement and balance sheet in the Annual and Sustainability Report 2023, and to appropriate distributable funds pursuant to the Board’s proposal.

 

Risk factors and
the macro environment

 

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) 2023 and the Risk and Capital Management section in SEK’s 2023 Annual and Sustainability Report.

In the fourth quarter of 2023, Sweden’s GDP decreased 0.1 percent quarter-on-quarter. Exports decreased 0.1 percent. Unemployment amounted to 8.0 percent at the end of February 2024, which was an increase compared to the end of November 2023. The rate of inflation in February 2024 was 2.5 percent, which was a decrease from January 2024, when the rate of inflation was 3.3 percent. Food prices contributed to the continued decline in inflation, which is now slowly approaching the Riksbank’s (Sweden’s Central Bank) target of 2 percent.

The Riksbank raised the policy rate on four occasions in 2023 from 2.50 percent to 4.00 percent, but the hiking cycle has now ended. Focus has shifted to when the first interest rate cut will occur. A higher policy rate has positively impacted SEK’s net interest income.

SEK believes that there is a higher-than-normal level of risk in the financial markets that can affect the company. Russia’s war in Ukraine has a limited direct financial effect on SEK. The Company has a gross exposure of Skr 88 million to one Russian counterparty, which is 100 percent risk-covered, 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. The armed conflict between Israel and Hamas has also contributed to the uncertainty. Iran’s attack on Israel shows that further escalation cannot be ruled out. Furthermore, the Houthi militia’s attacks on commercial ships in the Red Sea had a negative effect on trade flows with higher freight rates and shipping delays.

SEK believes that information security threats, particularly in relation to cybersecurity, have increased and continues to be higher than before as a consequence of Sweden’s membership in NATO and support of Ukraine.

 

 

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 2023 annual financial statements included in SEK’s 2023 Annual Report on Form 20-F. 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.

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.

 

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.

 

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 three scenarios being prepared for each probability of default curve: a base scenario, a downturn scenario, and an upturn scenario, where the scenarios are expressed in a business

cycle parameter. The business cycle parameter reflects the general risk of default in each geographic segment. The parameter is standard normally distributed where zero indicates a neutral economy as the economy has been on average, historically. The business cycle parameters for the base scenario are between -0.1 and 0.5 for the various probability of default (PD) segments. The base scenarios have been weighted at between 70 and 80 percent, the downturn scenarios have been weighted at between 20 and 30 percent, and the upturn scenarios have been weighted at zero percent between the different PD-segments.

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 March 31, 2024.

 

Determination of fair value

The determination of fair value is described in the annual financial statements included in SEK’s 2023 Annual Report on Form 20-F, see Note 1 (f) (vii) Principles for determination of fair value of financial instruments and (viii) Determination of fair value of certain types of financial instruments.

 

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, 1 indicates a maximum positive relationship and -1 indicates a maximum negative relationship. The maximum correlation in the range of unobservable inputs can thus be from 1 to –1. In the analysis, the correlations have been adjusted by +/– 0.12, which represents the level SEK uses within its prudent valuation framework. For Level 3 instruments that are significantly

 

 

affected by non-observable market data in the form of SEK’s own creditworthiness, a revaluation has been made by shifting the credit curve. The revaluation is made by shifting the credit spreads by +/– 10 basis points, which has been assessed as a reasonable change in SEK’s credit spread. The analysis shows the impact of the non-observable market data on the market value. In addition, the market value will be affected by observable market data. The result of the analysis corresponds with SEK’s business model where issued securities are linked with a matched hedging derivative. The underlying market data is used to evaluate the issued security as well as to evaluate the fair value in the derivative. This means that a change in fair value of the issued security, excluding SEK’s own credit spread, is offset by an equally large change in fair value in the derivative.

 

 

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 spread is shifted by +/– 0.12 and +/– 10 basis points,

 

respectively. When determining the total maximum/minimum effect on total comprehensive income the most adverse/favorable shift is chosen, considering the net exposure arising from the issued securities and the derivatives, for each correlation.

 

 

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 8. 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 March 31, 2024, concessionary loans outstanding amounted to Skr 185 million (year-end 2023: Skr 174 million) and operating profit for the program amounted to Skr -2 million (3M23: Skr -5 million) for the period January-March 2024. SEK’s administrative compensation for administrating the concessionary credit program amounted to Skr 0 million (3M23: Skr 0 million).

 

 

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 15 percent and 18 percent. The income indicators consist of the average operating income for the past three financial years for each business area.

 

Transitional rules

The capital adequacy ratios reflect the full impact of IFRS 9 as no transitional rules for IFRS 9 were utilized.

 

Capital buffer requirements

SEK expects to meet capital buffer requirements with Common Equity Tier 1 capital. The mandatory capital conservation buffer is 2.5 percent. The countercyclical buffer rate that is applied to exposures located in Sweden was increased from 1 percent to 2 percent as of June 22, 2023. As of March 31, 2024, the capital requirement related to relevant exposures in Sweden was 73 percent (year-end 2023: 73 percent) of the total relevant capital requirement regardless of location; this fraction is also the weight applied on the Swedish buffer rate when calculating SEK’s countercyclical capital buffer. Buffer rates applicable in other countries may have effects on SEK, but as most capital requirements for SEK’s relevant credit exposures are related to Sweden, the potential effect is limited. As of March 31, 2024, the contribution to SEK’s countercyclical buffer from buffer rates in other countries was 0.14 percentage points (year-end 2023: 0.13 percentage points). SEK has not been classified as a systemically important institution by the Swedish FSA. The capital buffer requirements for systemically important institutions that came into force on January 1, 2016, therefore do not apply to SEK.

 

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

 

Skr mn	March 31, 2024	December 31, 2023
Credit risk	7,278	7,350
Operational risk	434	434
Market risk	1,135	1,065
Other risks	180	199
Capital planning buffer	1,700	1,700
Total	10,727	10,748

 

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 2023 Annual Report on Form 20-F.

 

Liquidity Coverage Ratio

 

Skr bn, 12-month average	March 31, 2024	December 31, 2023
Total liquid assets	71.5	73.9
Net liquidity outflows1	16.4	16.4
Liquidity outflows	28.7	29.3
Liquidity inflows	13.4	13.9
Liquidity Coverage Ratio	574%	605%

 

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 Ratio

 

Skr bn	March 31, 2024	December 31, 2023
Available stable funding	285.5	276.3
Requiring stable funding	210.4	210.5
Net Stable Funding Ratio	136%	131%

 

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.

 

Net exposure to European countries, excluding Sweden

 

Skr bn	March 31, 2024	December 31, 2023
France	17.0	16.1
Luxembourg	12.0	12.2
United Kingdom	10.1	7.1
Germany	8.7	9.4
Denmark	8.4	6.9
Finland	6.4	11.4
Norway	4.8	5.7
Belgium	3.7	3.7
The Netherlands	3.5	0.6
Poland	2.3	2.2
Spain	2.2	2.6
Ireland	2.0	2.2
Portugal	1.0	1.3
Switzerland	0.6	0.6
Serbia	0.4	0.4
Austria	0.3	3.3
Italy	0.2	0.2
Lithuania	0.2	0.1
Estonia	0.1	0.1
Latvia	0.1	0.1
Czech Republic	0.1	0.1
Iceland	0.1	0.1
Slovakia	0.1	0.1
Total	84.3	86.5

Note 12. Transactions with related parties

 

Transactions with related parties are described in Note 27 to the annual financial statements in SEK’s 2023 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 2023 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.

 

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 loans

 

SEK offers green loans that promote the transition to a climate-smart and environmentally sustainable economy. Green loans are categorized under SEK’s framework for green bonds. The purpose is to stimulate green investments that are environmentally sustainable and contribute to one or more of the six environmental objectives in the EU taxonomy.

 

Leverage ratio

 

Tier 1 capital expressed as a percentage of the exposure measured under CRR (refer to Note 10).

 

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 9).

 

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 9).

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 categorized according to SEK’s framework for sustainable bonds. The purpose is to stimulate investments that are socially sustainable, such as in healthcare, education, basic infrastructure, or food security.

 

 Sustainability classified loans

Sustainability classified loans refer to green, social and sustainability-linked loans.

 

Sustainability-linked loans

 

Sustainability-linked loans consist of working capital finance that promote the borrower’s sustainability efforts, which in turn support environmental and socially sustainable economic activities and growth. SEK’s sustainability-linked loans are based on International Loan Market Association’s (LMA) Sustainability-Linked Loan Principles.

 

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.