Svensk Exportkredit (SEK) Q3 2024 earnings summary

Executive summary

• Net interest income for Jan–Sep 2024 rose 7% year-over-year to Skr 2,280 million, with new lending up to Skr 68.2 billion from Skr 51.1 billion.

• Operating profit for Jan–Sep 2024 increased to Skr 1,419 million, and net profit reached Skr 1,127 million, both up from the prior year.

• Lending portfolio declined by 3.8% year-over-year, despite higher new lending volumes; after-tax return on equity was 6.4% for the period.

• Third quarter saw continued client base growth, with three new clients added, all in the Mid Corporates segment.

• The business environment remains cautious due to interest rate cuts and a weaker Swedish economy, but export finance demand is rising.

Financial highlights

• Q3 2024 net interest income was Skr 744 million, down 3% year-over-year; operating profit was Skr 625 million, and net profit Skr 497 million.

• Basic and diluted EPS for Jan–Sep 2024 was Skr 282 (up from Skr 257); Q3 EPS was Skr 124 (down from Skr 128 year-over-year).

• Operating expenses for Jan–Sep 2024 increased 9% to Skr 550 million, mainly due to higher personnel costs.

• Net credit losses for Jan–Sep 2024 were Skr -212 million, up from Skr -193 million, mainly due to increased provisions for two exposures.

• Other comprehensive income before tax for Jan–Sep 2024 was Skr 174 million, mainly from positive credit risk and hedging results.

Outlook and guidance

• Further interest rate cuts are expected in autumn 2024, with economic recovery anticipated in 2025.

• Lower financing costs may boost customer activity, but weak demand continues to delay investments and acquisitions.

• SEK enters Q4 with strong liquidity and capitalization, aiming to support Swedish exporters with sustainable finance.