Eksportfinans ASA performed in line with expectations in the third quarter of 2014. Liquidity is good and the capital base remains solid. The reductions in the capital adequacy ratios are due to new capital regulations implemented as of September 30, 2014.
Net interest income was NOK 341 million for the first nine months of 2014, compared to NOK 525 million for the same period in 2013. The change was a result of the lower level of interest generating assets combined with reduced return on investments.
Comprehensive income according to IFRS was negative NOK 4,219 million for the first nine months of 2014, compared to negative NOK 3,234 million for the same period of 2013. The negative figures were primarily due to the reversal of previously unrealized gains on Eksportfinans’ own debt.
Profit excluding unrealized gains and losses on financial instruments amounted to NOK 113 million for the first three quarters of 2014, compared to NOK 305 million for the first three quarters of 2013. The decrease is mainly due to lower net interest income.
Total assets amounted to NOK 91 billion at September 30, 2014, compared to NOK 101 billion at December 31, 2013. The reduction was in line with expectations and due to the limitations on new lending business since 2011 as well as repayments on the current debt portfolios.
New capital regulations reflecting the EU’s Capital Requirements Directive IV were implemented in Norway as of September 30, 2014. Due to changed risk weights on financial institutions and the credit valuation adjustment (CVA) charge on derivatives, the core capital adequacy ratio decreased from 36.8 percent at December 31, 2013 to 23.9 percent at September 30, 2014. The capital adequacy ratios are still well above regulatory requirements. At the end of the first nine months of 2014 the company had liquidity reserves totaling NOK 38.9 billion.
As previously announced, as from August 2014 Eksportfinans is scheduling investor calls on a semi-annual basis. The next call will be held in connection with the release of the fourth quarter report 2014, on February 13, 2015.
Facts about Eksportfinans ASA
Eksportfinans forvalter en solid portefølje med utlån til norsk eksportnæring og utenlandske kjøpere av norske kapitalvarer. Lånene er garantert av GIEK (Garanti-instituttet for Eksportkreditt) og/eller banker. Selskapet forvalter også en betydelig portefølje med internasjonale verdipapirer. Virksomheten er finansiert gjennom obligasjoner utstedt i de internasjonale kapitalmarkedene. Eksportfinans ble etablert i 1962 og eies av banker som opererer i Norge og staten ved Nærings- og fiskeridepartementet. Ved inngangen av 2014 var forvaltningskapitalen omtrent 100 milliarder kroner. Selskapet har en erfaren og kompetent organisasjon med ca 50 medarbeidere, og holder til i Dronning Mauds gate i Vika, sentralt i 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 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 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.