The company's fourth quarter 2017 report was approved by Eksportfinans' board on Thursday February 15, 2018.
Net interest income was NOK 191 million for the year 2017, compared to NOK 260 million for the year 2016. The decrease was expected and a result of a lower level of interest generating assets.
Profit, excluding unrealized gains and losses on financial instruments and excluding realized losses hedged by the Portfolio Hedge Agreement, was negative NOK 13 million for 2017, compared to NOK 177 million for 2016. The loss is explained by a termination fee of NOK 55 million incurred when terminating the Portfolio Hedge Agreement on Eksportfinans’ request with effect from December 31, 2017. Furthermore, the 2016 figures include a gain related to the sale of Eksportfinans’ office property, partly offset by provisions made in connection with the now settled dispute with the Ministry of Trade, Industry and Fisheries regarding the 108-agreement.
Comprehensive income according to IFRS was negative NOK 261 million for 2017, compared to negative NOK 345 million for 2016. The negative figures were primarily due to the reversal of previously unrealized gains on Eksportfinans’ own debt.
Total assets amounted to NOK 22 billion at December 31, 2017, compared to NOK 33 billion at December 31, 2016. The reduction was in line with expectations and due to the limitations on new lending business as well as repayments on the current debt portfolios.
The core capital ratio was 94.2 percent at December 31, 2017, compared to 61.0 percent at December 31, 2016. At year-end 2017 the company had liquidity reserves totaling NOK 6.8 billion.
Facts about Eksportfinans ASA
Eksportfinans manages a solid 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 GIEK (The Norwegian Export Credit Guarantee Agency) and/or banks. The company also manages a substantial 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. Entering 2017 total assets amounted to approximately NOK 33 billion. The company is staffed by highly skilled individuals and is located in Dronning Mauds gate (Vika) in central Oslo.
Some of the information herein constitutes "forward‐looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward‐looking statements rely on a number of assumptions concerning future events. These forward‐looking statements involve known and unknown risks, uncertainties and other factors, many of which are outside of Eksportfinans’ control, which may cause actual results to differ materially from any future results expressed or implied from the forward‐looking statements. As a result, any forwardlooking statements included herein should not be regarded as a representation that the plans, objectives, results or other actions discussed will be achieved. Please see the company's Annual Report on Form 20‐F filed with the U.S. Securities and Exchange Commission for a discussion of certain factors that may cause actual results, performance or events to be materially different from those referred to herein. Eksportfinans disclaims any intention or obligation to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise.