On November 8, 2022 the board of directors in Eksportfinans approved the financial results for the first three quarters of 2022.
Eksportfinans´ overall objective is to maintain company value by managing existing loan portfolios and other commitments. The balance sheet decreases in line with maturing loans, investments and debt according to plan.
The new EU banking package including the CRD V Capital Requirement Directive was implemented in Norwegian law on June 1, 2022. These new regulations led to an increase in risk weighted assets related to Eksportfinans’ derivatives exposure even though the underlying portfolio remained unchanged. Therefore Eksportfinans´ core capital ratio was reduced from 148.9 percent at September 30, 2021 to 126.7 percent at September 30, 2022. Eksportfinans is still substantially over-capitalized, and this remains a key issue for the board.
Net interest income was NOK 37 million in the third quarter of 2022, compared to NOK 20 million in the same period of 2021. In the first nine months of 2022 net interest income amounted to NOK 94 million, compared to NOK 66 million in the first nine months of 2021. The increase in net interest income was mainly due to higher floating interest rates in Norwegian kroner (NIBOR).
The result for the third quarter of 2022 was negative NOK 16 million, compared to positive NOK 9 million in the same period of 2021. The result for the first nine months of 2022 was negative NOK 55 million, compared to positive NOK 20 million in the same period of 2021. The key driver for the negative results in the first nine months of 2022 was unrealized losses on Eksportfinans’ securities and lending portfolio due to the volatility in the financial markets.
Total assets amounted to NOK 9.5 billion at September 30, 2022, compared to NOK 11.0 billion at September 30, 2021. The reduction was due to repayments of debt.
On September 30, 2022, Eksportfinans held liquidity reserves totaling NOK 6.1 billion.
Eksportfinans’ financial reports and other information are available on www.eksportfinans.com.
Facts about Eksportfinans ASA
Eksportfinans manages a portfolio of loans to the Norwegian export industry and foreign buyers of Norwegian capital goods. The company has not granted new loans since the government established a fully state owned entity responsible for new officially supported export loans in 2012. Eksportfinans’ loans are guaranteed by Eksfin (Export Financing Norway) and/or banks. The company also manages a portfolio of international securities. The business is funded through bonds and commercial paper issued in the international capital markets. Eksportfinans was established in 1962 and is owned by banks operating in Norway and the Ministry of Trade, Industry and Fisheries on behalf of the Norwegian government. For more information about Eksportfinans, please see www.eksportfinans.com