Strong underlying business performance: Eksportfinans had a record high net interest income of NOK 1.1 billion in the first nine months of 2009. Disbursements of new export credits were NOK 9.4 billion in the third quarter alone.
Eksportfinans experienced a net profit excluding unrealized gains and losses of NOK 803 million in the first nine months of 2009, compared to NOK 9.0 million in the corresponding period in 2008.
Export Lending
The comparatively strong demand for new export financing continued during the first nine months of 2009. The volume of outstanding export loans was NOK 78.1 billion at September 30, 2009 compared to NOK 71.0 billion at the end of the first nine months of 2008. New disbursements of export-related loans were NOK 21.3 billion during the first nine months of 2009, compared to NOK 17.9 billion during the same period in 2008.
Funding
Eksportfinans successfully returned to the Swiss Franc market on October 1, 2009 with a CHF 225 million, 9.5 year public benchmark. New funding in the first nine months of 2009 amounted to NOK 43.4 billion through 888 individual trades, compared with NOK 69.2 billion and 710 trades for the same period in 2008.
Local Government Lending
On June 24, 2009, Eksportfinans’ subsidiary Kommunekreditt Norge AS (now KLP Kreditt AS) was sold to Kommunal Landspensjonskasse (KLP). At the same time, NOK 11 billion of loans from Kommunekreditt to Norwegian municipalities were transferred to Eksportfinans ASA at market value. Eksportfinans expects to hold this portfolio of municipal loans to maturity.
Results
The total comprehensive income was negative NOK 1.0 billion in the first nine months of 2009 according to the international accounting standard IRFS. This negative result was due to the reversal of unrealized gains on Eksportfinans’ debt which can be explained as follows: The normalization in the international financial markets led do a decline in international credit spreads in the third quarter. This is turn led to a reversal of the net unrealized gains in the fair value of Eksportfinans’ own debt which was booked in 2008 and the beginning of 2009. While Eksportfinans booked unrealized gains of NOK 4.9 billion of the company’s debt net of derivatives for the year 2008, the corresponding figure for the first nine months of 2009 is an unrealized loss of NOK 2.9 billion. As of September 30 2009, there are still NOK 2.7 billion of unrealized gains which will be reversed as unrealized losses in future periods. These unrealized losses do not in any material way affect the company’s core capital.
Key Figures:
All figures are for Eksportfinans ASA. This also applies for comparative figures, which are for the parent company of the former Eksportfinans Group (Kommunekreditt Norge AS is not consolidated). The comparable financial ratios are for the parent company Eksportfinans ASA and have not previously been publicly presented.
|
First nine months 2009 |
First nine months 2008 |
|
|
New export lending |
NOK 21.3 billion |
NOK 17.6 billion |
|
New funding |
NOK 43.4 billion |
NOK 69.2 billion |
|
Total assets |
NOK 234,334 million |
NOK 253,634 million |
|
Capital adequacy |
13.5% |
9.6% |
|
Net interest income |
NOK 1,093 million |
NOK 490 million |
|
Total comprehensive income* |
(NOK 1,029 million) |
(NOK 127 million) |
|
Profit/(loss) for the period from continuing operations |
(NOK 1,370 million) |
(NOK 191 million) |
*Comprehensive income includes all non-owner changes in equity, both those recognized in profit or loss and those recorded directly to equity.
Download Third quarter report 2009 (pdf)
Download press release Third quarter 2009 (pdf)