Eksportfinans performed well in the first nine months of 2012. Both net interest income and liquidity developed as expected.
Business activities
The third quarter of 2012 was the first period of operations after Eksportfinans, on July 1, 2012, finalized the process of adapting to the situation where the state-owned company Export Credit Norway (Eksportkreditt Norge AS) took over the Norwegian export financing scheme that had been handled by Eksportfinans since 1978. Eksportfinans is now managing its operations based on the existing portfolio of assets, liabilities and other commitments.
"The last months have demonstrated that we have secured the necessary expertise and skills to manage the business going forward. Approximately 55 employees are currently taking care of the interests of the Company and its stakeholders,"
President and CEO Gisèle Marchand
Results
Net interest income was NOK 986 million for the first nine months of 2012, compared to NOK 1,105 million for the first nine months of 2011. Comprehensive income was negative NOK 12,926 million due to a significant market price increase of Eksportfinans' own debt. This led to a reduction of the related accumulated unrealized gains in the balance sheet, which in turn resulted in a corresponding unrealized loss in the income statement. Comprehensive income for the first nine months of last year was NOK 374 million.
Profit excluding unrealized gains and losses and losses hedged by the Portfolio Hedge Agreement amounted to NOK 650 million in the first nine months of 2012, compared to NOK 678 million for the same period of 2011.
The capital adequacy ratio was 25.4 percent at September 30, 2012, compared to 16.5 percent at the same time last year and 19.4 percent at December 31, 2011.
Purported declaration of default
Eksportfinans has received a purported declaration of default, with possible proceedings, from a holder of the institution's Japanese bonds on November 6, 2012. The sender of the purported declaration is the same investor who sent a similar declaration received by Eksportfinans on December 19, 2011.
Eksportfinans will vigorously resist on the basis that there is no default, and the Company is therefore of the opinion that this declaration is of no affect. This opinion is supported by analysis from external counsel. Eksportfinans has therefore also concluded that such purported declaration does not constitute a cross default under Eksportfinans' other financial obligations.
Investor conference call
On Wednesday November 7, 2012, at 10 am New York / 3 pm London / 4 pm CET, Eksportfinans will hold a conference call following the release of the third quarter report. See below for dial-in options.
Key figures
| First nine months 2012 | First nine months 2011 | |
| New loans disbursed | NOK 0.9 billion | NOK 24.8 billion |
| New bond debt issued | NOK 0.0 billion | NOK 45.4 billion |
| Total assets at end of period | NOK 171.3 billion | NOK 226.4 billion |
|
Core capital adequacy at end of period |
21.5 % |
12.8 % |
| Capital adequacy at end of period | 25.4 % | 16.5 % |
| Net interest income | NOK 986 million | NOK 1,105 million |
| Profit/(loss) for the period |
NOK(12,926) million |
NOK 374 million |
|
Profit excluding unrealized gains/losses on financial instruments and excluding losses covered by PHA |
NOK 650 million | NOK 678 million |
Facts about Eksportfinans ASA
Eksportfinans manages a solid portfolio of loans to the Norwegian export industry and foreign buyers of Norwegian capital goods. The loans are guaranteed by GIEK (The Norwegian Guarantee Institute for Export Credits) 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 and Industry on behalf of the Norwegian government. Entering 2012 total assets amounted to almost NOK 200 billion. The company is staffed by highly skilled individuals, around 55 in total, and is located in Dronning Maud's gate (Vika) in central Oslo.
Forward-looking statements
Some of the information we are giving 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 our 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 forward-looking 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 US 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.