Svensk Exportkredit (SEK) Q2 2024 earnings summary

Executive summary

• Net interest income and net profit reached historic highs in the first half of 2024, driven by increased business volumes and higher margins, especially in working capital finance for Swedish exporters.

• New lending surged to Skr 52.1 billion in 1H24, up from Skr 35.9 billion in 1H23, with significant contributions from new Mid Corporates clients and the defense sector.

• The operating environment remained turbulent due to geopolitical tensions, but Swedish exporters showed a brighter outlook and continued focus on climate transition.

• SEK increased its sustainability classified lending to Skr 49.4 billion, including a notable social loan for a hospital project in Guyana.

• SEK remains well-capitalized, with strong liquidity and a high level of activity expected to support continued positive business development.

Financial highlights

• Net interest income for 1H24 was Skr 1,536 million, up 13% year-over-year; Q2 net interest income was Skr 766 million, up 6% from Q2 2023.

• Operating profit for 1H24 reached Skr 794 million (1H23: Skr 646 million); Q2 operating profit was Skr 578 million (Q2 2023: Skr 226 million).

• Net profit for 1H24 was Skr 630 million (1H23: Skr 513 million); Q2 net profit was Skr 459 million (Q2 2023: Skr 179 million).

• Basic and diluted EPS for 1H24 was Skr 158 (1H23: Skr 129); Q2 EPS was Skr 115 (Q2 2023: Skr 45).

• After-tax return on equity for 1H24 was 5.5% (1H23: 4.7%); Q2 was 8.0% (Q2 2023: 3.3%).

Outlook and guidance

• SEK expects lower interest rates in the second half of 2024 to support the economy and Swedish companies' investment appetite.

• The company is well-capitalized and maintains strong liquidity, positioning it for continued positive development in the remainder of 2024.