| Capital adequacy and liquidity situation |
Note 10. Capital adequacy and liquidity situation The capital adequacy analysis relates to the parent company AB Svensk Exportkredit. The information is disclosed according to FFFS 2014:12, FFFS 2008:25 and FFFS 2010:7. For further information on capital adequacy and risks, see Note 29 to the annual financial statements included in SEK’s 2024 Annual Report on Form 20-F and see SEK’s Capital Adequacy and Risk Management (Pillar 3) Report 2024. Capital Adequacy Analysis | | | | | | | | | | | | June 30, 2025 | | December 31, 2024 | Capital ratios | | percent1 | | percent1 | Common Equity Tier 1 capital ratio | | 23.5 | | 22.2 | Tier 1 capital ratio | | 23.5 | | 22.2 | Total capital ratio | | 23.5 | | 22.2 |
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. |
| | | | | | | | | | | June 30, 2025 | | December 31, 2024 | Total risk-based capital requirement | | Skr mn | | percent1 | | Skr mn | | percent1 | Capital base requirement of 8 percent2 | | 7,769 | | 8.0 | | 8,437 | | 8.0 | of which Tier 1 requirement of 6 percent | | 5,827 | | 6.0 | | 6,328 | | 6.0 | of which minimum requirement of 4.5 percent | | 4,370 | | 4.5 | | 4,746 | | 4.5 | Pillar 2 capital requirements3 | | 3,564 | | 3.7 | | 3,871 | | 3.7 | Common Equity Tier 1 capital available to meet buffer requirements4 | | 11,535 | | 11.9 | | 11,106 | | 10.5 | Capital buffer requirements | | 3,945 | | 4.0 | | 4,317 | | 4.1 | of which Capital conservation buffer | | 2,428 | | 2.5 | | 2,637 | | 2.5 | of which Countercyclical buffer | | 1,517 | | 1.5 | | 1,680 | | 1.6 | Pillar 2 guidance5 | | 1,457 | | 1.5 | | 1,582 | | 1.5 | Total risk-based capital requirement including Pillar 2 guidance | | 16,735 | | 17.2 | | 18,207 | | 17.3 |
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 and amending Regulation (EU) No 648/2012). |
3 | Individual Pillar 2 requirement of 3.67 percent calculated on the total risk exposure amount, according to the decision from the latest Swedish FSA Supervisory Review and Evaluation Process (“SREP”) on September 29, 2021. |
4 | Common Equity Tier 1 capital available to meet buffer requirement after 8 percent minimum capital requirement (SEK covers all minimum requirements with CET1 capital, that is 4.5 percent, 1.5 percent and 2 percent) and after the Pillar 2 requirements (3.67 percent). |
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 1.50 percent of the total risk-weighted exposure amount. The Pillar 2 guidance is not a binding requirement. |
| | | | | | | June 30, 2025 | | December 31, 2024 | Leverage ratio1 | | Skr mn | | Skr mn | On-balance sheet exposures | | 227,318 | | 234,139 | Off-balance sheet exposures | | 6,571 | | 8,775 | Total exposure measure | | 233,889 | | 242,914 | Leverage ratio2 | | 9.8% | | 9.6% |
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, 2025 | | December 31, 2024 | Total Leverage ratio requirement | | Skr mn | | percent1 | | Skr mn | | percent1 | Capital base requirement of 3 percent | | 7,016 | | 3.0 | | 7,288 | | 3.0 | Pillar 2 guidance2 | | 351 | | 0.2 | | 365 | | 0.2 | Total capital requirement relating to Leverage ratio including Pillar 2 guidance | | 7,367 | | 3.2 | | 7,653 | | 3.2 |
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 0.15 percent calculated on the total Leverage ratio exposure measure. The Pillar 2 guidance is not a binding requirement. |
Own funds – Adjusting items | | | | | | | June 30, | | December 31, | Skr mn | | 2025 | | 2024 | Share capital | | 3,990 | | 3,990 | Retained earnings | | 18,459 | | 18,413 | Accumulated other comprehensive income and other reserves | | 495 | | 241 | Independently reviewed profit net of any foreseeable charge or dividend | | 441 | | 1,255 | Common Equity Tier 1 (CET1) capital before regulatory adjustments | | 23,385 | | 23,899 | Additional value adjustments due to prudent valuation | | -95 | | -84 | Intangible assets | | -24 | | -22 | Fair value reserves related to gains or losses on cash flow hedges | | – | | 3 | Gains or losses on liabilities valued at fair value resulting from changes in own credit standing | | -260 | | -217 | Negative amounts resulting from the calculation of expected loss amounts | | -144 | | -180 | Insufficient coverage for non-performing exposures | | -2 | | -2 | Total regulatory adjustments to Common Equity Tier 1 capital | | -525 | | -502 | Total Common Equity Tier 1 capital | | 22,860 | | 23,397 | Total Own funds | | 22,860 | | 23,397 |
Minimum capital requirements exclusive of buffer | | | | | | | | | | | | | | | June 30, 2025 | | December 31, 2024 | | | | | | | Minimum | | | | | | Minimum | | | | | Risk exposure | | capital | | | | Risk exposure | | capital | Skr mn | | EAD1 | | amount | | requirement | | EAD1 | | amount | | requirement | Credit risk standardized method | | | | | | | | | | | | | Corporates | | 5,250 | | 5,224 | | 418 | | 5,532 | | 5,528 | | 442 | Equity exposures | | 5 | | 8 | | 1 | | 20 | | 30 | | 2 | Exposures in default | | 2 | | 2 | | 0 | | 6 | | 6 | | 1 | Total credit risk standardized method | | 5,257 | | 5,234 | | 419 | | 5,558 | | 5,564 | | 445 | Credit risk IRB method | | | | | | | | | | | | | Central Governments | | 222,570 | | 9,490 | | 759 | | 211,834 | | 9,159 | | 733 | Financial institutions2 | | 34,696 | | 6,790 | | 543 | | 34,067 | | 6,153 | | 492 | Corporates3 | | 152,042 | | 67,103 | | 5,368 | | 147,820 | | 75,541 | | 6,043 | Assets without counterparty | | 374 | | 374 | | 30 | | 213 | | 213 | | 17 | Total credit risk IRB method | | 409,682 | | 83,757 | | 6,700 | | 393,934 | | 91,066 | | 7,285 | Credit valuation adjustment risk | | n.a. | | 2,051 | | 164 | | n.a. | | 1,936 | | 154 | Foreign exchange risk | | n.a. | | 1,703 | | 136 | | n.a. | | 1,498 | | 120 | Commodities risk | | n.a. | | 8 | | 1 | | n.a. | | 7 | | 1 | Operational risk | | n.a. | | 4,362 | | 349 | | n.a. | | 5,395 | | 432 | Total | | 414,939 | | 97,115 | | 7,769 | | 399,492 | | 105,466 | | 8,437 |
1 | Exposure at default (EAD) shows the size of the outstanding exposure at default. |
2 | Of which counterparty risk in derivatives: EAD Skr 5,244 million (year-end 2024: Skr 5,899 million), Risk exposure amount of Skr 1,072 million (year-end 2024: Skr 1,513 million) and Capital requirement of Skr 86 million (year-end 2024: Skr 121 million). |
3 | Of which related to specialized lending: EAD Skr 7,347 million (year-end 2024: Skr 7,322 million), Risk exposure amount of Skr 5,247 million (year-end 2024: Skr 5,019 million) and Capital requirement of Skr 420 million (year-end 2024: Skr 402 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 June 30, 2025, the capital requirement related to relevant exposures in Sweden was 70 percent (year-end 2024: 74 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 June 30, 2025, the contribution to SEK’s countercyclical buffer from buffer rates in other countries was 0.15 percentage points (year-end 2024: 0.12 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. Liquidity Coverage Ratio | | | | | | | June 30, | | December 31, | Skr bn, 12-month average | | 2025 | | 2024 | Total liquid assets | | 60.0 | | 64.1 | Net liquidity outflows1 | | 12.1 | | 14.9 | Liquidity outflows | | 24.5 | | 26.0 | Liquidity inflows | | 13.1 | | 11.2 | Liquidity Coverage Ratio | | 633% | | 518% |
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 | | | | | | | June 30, | | December 31, | Skr bn | | 2025 | | 2024 | Available stable funding | | 260.1 | | 272.5 | Requiring stable funding | | 204.8 | | 211.0 | Net Stable Funding Ratio | | 127% | | 129% |
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. Liquidity reserve1 | | | | | | | | | | | | | | | | | | | | | | | June 30, 2025 | | December 31, 2024 | Skr bn | | Total | | Skr | | EUR | | USD | | Other | | Total | | Skr | | EUR | | USD | | Other | Securities issued or guaranteed by sovereigns, central banks or multilateral development banks | | 26.5 | | 7.0 | | 6.4 | | 13.1 | | – | | 25.3 | | 11.0 | | 8.0 | | 6.3 | | – | Securities issued or guaranteed by municipalities or other public entities | | 21.0 | | 4.8 | | 3.9 | | 12.3 | | – | | 18.3 | | 7.1 | | 3.8 | | 7.4 | | – | Covered bonds issued by other institutions | | 13.4 | | 12.6 | | 0.8 | | – | | – | | 13.1 | | 13.1 | | – | | – | | – | Balances with National Debt Office | | 2.5 | | 2.5 | | – | | – | | – | | 1.0 | | 1.0 | | – | | – | | – | Total liquidity reserve | | 63.4 | | 26.9 | | 11.1 | | 25.4 | | – | | 57.7 | | 32.2 | | 11.8 | | 13.7 | | – |
1 | The liquidity reserve is a part of SEK's liquidity investments. |
Information on Liquidity reserve is included in accordance with the Commission Delegated Regulation (EU) 2015/61.
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