The determination of fair value is described in the annual
financial statements included in SEK’s 2022 Annual Report on Form 20-F, see Note 1 (h) (viii) Principles for determination of
fair value of financial instruments and (ix) Determination of fair value of certain types of financial instruments.
Note 8. Pledged assets and
contingent liabilities
Skr
mn |
March
31,
2023 |
December
31,
2022 |
Collateral
provided |
|
|
Cash
collateral under the security agreements for derivative contracts |
8,567 |
10,691 |
Contingent
liabilities1 |
|
|
Guarantee
commitments |
4,961 |
4,802 |
Commitments1 |
|
|
Committed
undisbursed loans |
59,909 |
75,369 |
Binding
offers |
– |
– |
1 For
expected credit losses in guarantee commitments, committed undisbursed loans and binding offers, see Note 4. |
Interim report January–March 2023 | Page 20 of 28 |
Note 9. Capital adequacy
The capital adequacy analysis relates to the parent company AB Svensk
Exportkredit. The information is disclosed according to FFFS 2014:12 and FFFS 2008:25. For further information on capital adequacy and
risks, see Note 30 to the annual financial statements included in SEK’s 2022 Annual Report on Form 20-F and see SEK’s 2022
Capital Adequacy and Risk Management (Pillar 3) Report.
Capital Adequacy Analysis
|
March
31, 2023 |
December
31, 2022 |
Capital
ratios |
percent1 |
percent1 |
Common
Equity Tier 1 capital ratio |
19.7 |
20.6 |
Tier
1 capital ratio |
19.7 |
20.6 |
Total
capital ratio |
19.7 |
20.6 |
| 1 | Capital
ratios exclusive of buffer requirements are the quotients of the relevant capital measure
and the total risk exposure amount. |
| | See
tables Own funds – adjusting items and Minimum capital requirements exclusive of buffer. |
|
March
31, 2023 |
December
31, 2022 |
Total
risk-based capital requirement |
Skr
mn |
percent1 |
Skr
mn |
percent1 |
Capital
base requirement of 8 percent2 |
8,635 |
8.0 |
8,074 |
8.0 |
of
which Tier 1 requirement of 6 percent |
6,476 |
6.0 |
6,056 |
6.0 |
of
which minimum requirement of 4.5 percent |
4,857 |
4.5 |
4,542 |
4.5 |
Pillar
2 capital requirements3 |
3,962 |
3.7 |
3,704 |
3.7 |
Common
Equity Tier 1 capital available to meet buffer requirements4 |
8,668 |
8.0 |
9,013 |
8.9 |
Capital
buffer requirements |
3,605 |
3.3 |
3,330 |
3.3 |
of
which Capital conservation buffer |
2,698 |
2.5 |
2,523 |
2.5 |
of
which Countercyclical buffer |
907 |
0.8 |
807 |
0.8 |
Pillar
2 guidance5 |
1,619 |
1.5 |
1,514 |
1.5 |
Total
risk-based capital requirement including Pillar 2 guidance |
17,821 |
16.5 |
16,622 |
16.5 |
| 1 | Expressed
as a percentage of total risk exposure amount. |
| 2 | The
minimum requirements according to CRR (Regulation (EU) No 575/2013 of the European Parliament
and of the Council of June 26, 2013 on prudential requirements for credit institutions and
investment firms). |
| 3 | Individual
Pillar 2 requirement of 3.67 percent calculated on the total risk exposure amount, according
to the decision from the latest Swedish FSA Supervisory Review and Evaluation Process (“SREP”)
on September 29, 2021. |
| 4 | Common
Equity Tier 1 capital available to meet buffer requirement after 8 percent minimum capital
requirement (SEK covers all minimum requirements with CET1 capital, that is 4.5 percent,
1.5 percent and 2 percent) and after the Pillar 2 requirements (3.67 percent). |
| 5 | The
Swedish FSA notified SEK on September 29, 2021, within the latest SREP, that in addition
to the capital requirements according to Regulation (EU) no 575/2013 on prudential requirements,
SEK should hold additional capital (Pillar 2 guidance) of 1.50 percent of the total risk-weighted
exposure amount. The Pillar 2 guidance is not a binding requirement. |
|
March
31, 2023 |
December
31, 2022 |
Leverage
ratio1 |
Skr
mn |
Skr
mn |
On-balance
sheet exposures |
256,810 |
241,239 |
Off-balance
sheet exposures |
5,356 |
7,357 |
Total
exposure measure |
262,166 |
248,596 |
Leverage
ratio2 |
8.1% |
8.4% |
| 1 | The
leverage ratio reflects the full impact of IFRS 9 as no transitional rules were utilized. |
| 2 | Defined
by CRR as the quotient of the Tier 1 capital and an exposure measure. |
|
March
31, 2023 |
December
31, 2022 |
Total
Leverage ratio requirement |
Skr
mn |
percent1 |
Skr
mn |
percent1 |
Capital
base requirement of 3 percent |
7,865 |
3.0 |
7,458 |
3.0 |
Pillar
2 guidance2 |
393 |
0.2 |
373 |
0.2 |
Total
capital requirement relating to Leverage ratio including Pillar 2 guidance |
8,258 |
3.2 |
7,831 |
3.2 |
| 1 | Expressed
as a percentage of total exposure amount. |
| 2 | The
Swedish FSA has on September 29, 2021 notified SEK, within the latest SREP, that SEK may
hold additional capital (Pillar 2 guidance) of 0.15 percent calculated on the total Leverage
ratio exposure measure. The Pillar 2 guidance is not a binding requirement. |
Interim report January–March 2023 | Page 21 of 28 |
Own funds – Adjusting items
Skr
mn |
March
31,
2023 |
December
31,
2022 |
Share
capital |
3,990 |
3,990 |
Retained
earnings |
17,374 |
16,133 |
Accumulated
other comprehensive income and other reserves |
222 |
212 |
Independently
reviewed profit net of any foreseeable charge or dividend |
206 |
1,009 |
Common
Equity Tier 1 (CET1) capital before regulatory adjustments |
21,792 |
21,344 |
Additional
value adjustments due to prudent valuation |
-459 |
-474 |
Intangible
assets1 |
-44 |
-44 |
Fair
value reserves related to gains or losses on cash flow hedges |
88 |
97 |
Gains
or losses on liabilities valued at fair value resulting from changes in own credit standing |
5 |
9 |
Negative
amounts resulting from the calculation of expected loss amounts |
-108 |
-94 |
Insufficient
coverage for non-performing exposures |
-5 |
– |
Total
regulatory adjustments to Common Equity Tier 1 capital |
-523 |
-506 |
Total
Common Equity Tier 1 capital |
21,269 |
20,838 |
Total
Own funds |
21,269 |
20,838 |
Minimum capital requirements exclusive of buffer
Skr
mn |
March
31, 2023 |
December
31, 2022 |
EAD1 |
Risk
exposure
amount |
Minimum
capital
requirement |
EAD1 |
Risk
exposure
amount |
Minimum
capital
requirement |
Credit
risk standardized method |
|
|
|
|
|
|
Corporates |
2,973 |
2,949 |
236 |
3,012 |
2,987 |
239 |
Exposures
in default |
100 |
100 |
8 |
102 |
102 |
8 |
Total
credit risk standardized method |
3,073 |
3,049 |
244 |
3,114 |
3,089 |
247 |
Credit
risk IRB method |
|
|
|
|
|
|
Central
Governments |
235,073 |
10,658 |
853 |
242,609 |
11,018 |
882 |
Financial
institutions2 |
49,481 |
10,980 |
878 |
33,299 |
6,356 |
508 |
Corporates3 |
139,363 |
74,548 |
5,964 |
136,849 |
72,779 |
5,822 |
Assets
without counterparty |
500 |
500 |
40 |
351 |
351 |
28 |
Total
credit risk IRB method |
424,417 |
96,686 |
7,735 |
413,108 |
90,504 |
7,240 |
Credit
valuation adjustment risk |
n.a. |
3,312 |
265 |
n.a. |
2,565 |
205 |
Foreign
exchange risk |
n.a. |
933 |
74 |
n.a. |
800 |
64 |
Commodities
risk |
n.a. |
12 |
1 |
n.a. |
19 |
2 |
Operational
risk |
n.a. |
3,949 |
316 |
n.a. |
3,949 |
316 |
Total |
427,490 |
107,941 |
8,635 |
416,222 |
100,926 |
8,074 |
| 1 | Exposure
at default (EAD) shows the size of the outstanding exposure at default. |
| 2 | Of
which counterparty risk in derivatives: EAD Skr 7,559 million (year-end 2022: Skr 6,355 million),
Risk exposure amount of Skr 2,409 million (year-end 2022: Skr 2,022 million) and Capital requirement of Skr 193 million (year-end
2022: Skr 162 million). |
| 3 | Of
which related to specialized lending: EAD Skr 6,043 million (year-end 2022: 6,112 million),
Risk exposure amount of Skr 4,313 million (year-end 2022: Skr 4,412 million) and Capital requirement of Skr 345 million (year-end 2022:
Skr 353 million). |
Credit risk
For classification and quantification of credit risk, SEK uses
the internal ratings-based (IRB) approach. Specifically, SEK applies the Foundation Approach. Under the Foundation Approach, the
company determines the PD within one year for each of its counterparties, while the remaining parameters are established in accordance
with CRR. Application of the IRB approach requires the Swedish FSA’s permission and is subject to ongoing supervision. Certain
exposures are, by permission from the Swedish FSA, exempted from application of the IRB approach, and, instead, the standardized
approach is applied. Counterparty risk exposure amounts in derivatives are calculated in accordance with the standardized approach
for counterparty credit risk.
Credit valuation adjustment risk
Credit valuation adjustment risk is calculated for all over-the-counter
derivative contracts, except for credit derivatives used as credit protection and transactions with a qualifying central counterparty.
SEK calculates this capital requirement according to the standardized approach.
Foreign exchange risk
Foreign exchange risk is calculated according to the standardized
approach, whereas the scenario approach is used for calculating the gamma and volatility risks.
Interim report January–March 2023 | Page 22 of 28 |
Commodities risk
Capital requirements for commodity risk are calculated in accordance
with the simplified approach under the standardized approach. The scenario approach is used for calculating
the gamma and volatility risks.
Operational risk
Capital requirement for operational risk is calculated according
to the standardized approach. The company’s operations are divided into business areas as defined in the CRR. The
capital requirement for each area is calculated by multiplying a factor depending on the business area by an income indicator.
The factors applicable for SEK are 15 percent and 18 percent. The income indicators consist of the average operating income for
the past three financial years for each business area.
Transitional rules
The capital adequacy ratios reflect the full impact of IFRS
9 as no transitional rules for IFRS 9 were utilized.
Capital buffer requirements
SEK expects to meet capital buffer requirements with Common
Equity Tier 1 capital. The mandatory capital conservation buffer is 2.5 percent. The countercyclical buffer rate that is applied
to exposures located in Sweden was increased from 0 percent to 1 percent as of September 29, 2022. As of March 31, 2023, the capital
requirement related to relevant exposures in Sweden was 73 percent (year-end 2022: 71 percent) of the total relevant capital requirement
regardless of location; this fraction is also the weight applied on the Swedish buffer rate when calculating SEK’s countercyclical
capital buffer. On June 21, 2022, the Swedish FSA decided to further increase the countercyclical buffer rate to 2 percent, which
will take effect on June 22, 2023. Buffer rates applicable in other countries may have effects on SEK, but as most capital requirements
for SEK’s relevant credit exposures are related to Sweden, the potential effect is limited. As of March 31, 2023, the contribution
to SEK’s countercyclical buffer from buffer rates in other countries was 0.1 percentage points (year-end 2022: 0.09 percentage
points). SEK has not been classified as a systemically important institution by the Swedish FSA. The capital buffer requirements
for systemically important institutions that came into force January 1, 2016, therefore do not apply to SEK.
Pillar 2 guidance
The Swedish FSA will in connection with the Supervisory Review
and Evaluation Process (”SREP”) determine appropriate levels for the institution’s own funds. The Swedish FSA
will then inform the institution of the differences between the appropriate levels and requirements under the Supervisory Regulation,
the Buffer Act and the Pillar 2 requirements. These notifications are called Pillar 2 guidance. The Pillar 2 guidance covers both
the risk-based capital requirement and the leverage ratio requirement.
Internally assessed economic capital
Skr
mn |
March
31,
2023 |
December
31,
2022 |
Credit
risk |
7,395 |
7,202 |
Operational
risk |
311 |
311 |
Market
risk |
1,222 |
1,466 |
Other
risks |
265 |
205 |
Capital
planning buffer |
2,697 |
2,697 |
Total |
11,890 |
11,881 |
SEK regularly conducts an internal capital adequacy assessment process,
during which the company determines how much capital is needed in order to cover its risks. The result of SEK’s assessment of capital
adequacy is presented above. For more information regarding the internal capital adequacy assessment process and its methods, see Note
30 to the annual financial statements included in SEK’s 2022 Annual Report on Form 20-F.
Liquidity coverage
Skr
bn, 12 month average |
March
31,
2023 |
December
31,
2022 |
Total
liquid assets |
63.3 |
58.4 |
Net
liquidity outflows1 |
14.8 |
10.9 |
Liquidity
outflows |
28.5 |
25.0 |
Liquidity
inflows |
15.1 |
15.7 |
Liquidity
Coverage Ratio |
578% |
784% |
| 1 | Net
liquidity outflows is calculated as the net of liquidity outflows and capped liquidity inflows.
Capped liquidity inflows is calculated in accordance with article 425 of CRR (EU 575/2013)
and article 33 of the Commission Delegated Regulation (EU) 2015/61. |
Information on Liquidity Coverage Ratio (LCR) in accordance
with article 447 of the CRR (EU 575/2013), calculated in accordance with the Commission Delegated Regulation (EU) 2015/61.
Net stable funding
Skr
bn |
March
31,
2023 |
December
31,
2022 |
Available
stable funding |
247.6 |
235.2 |
Requiring
stable funding |
210.7 |
198.2 |
Net
Stable Funding Ratio |
118% |
119% |
Information on Net Stable Funding Ratio (NSFR) in accordance
with article 447 of the CRR (EU 575/2013), calculated in accordance with the Commission Delegated Regulation (EU) 2015/61.
Interim report January–March 2023 | Page 23 of 28 |
Note 10. Exposures
Net
exposures are reported after taking into consideration effects of guarantees and credit default swaps. Amounts are calculated
in accordance with capital adequacy calculations, but before the application of credit conversion factors.
Total
net exposures by exposure class
|
Credits
& interest-bearing
securities |
Committed
undisbursed loans,
derivatives, etc. |
Total |
|
March
31, 2023 |
December
31, 2022 |
March
31, 2023 |
December
31, 2022 |
March
31, 2023 |
December
31, 2022 |
Skr
bn |
Amount |
% |
Amount |
% |
Amount |
% |
Amount |
% |
Amount |
% |
Amount |
% |
Central
governments |
161.8 |
43.4 |
162.3 |
46.2 |
53.1 |
73.2 |
65.0 |
75.0 |
214.9 |
48.2 |
227.3 |
51.9 |
Regional
governments |
19.7 |
5.3 |
22.5 |
6.4 |
0.9 |
1.2 |
0.8 |
0.9 |
20.6 |
4.6 |
23.3 |
5.3 |
Multilateral
development banks |
10.4 |
2.8 |
6.1 |
1.7 |
– |
– |
0.4 |
0.5 |
10.4 |
2.3 |
6.5 |
1.5 |
Public
Sector Entity |
2.6 |
0.7 |
2.1 |
0.6 |
– |
– |
– |
– |
2.6 |
0.6 |
2.1 |
0.5 |
Financial
institutions |
41.4 |
11.1 |
26.1 |
7.4 |
8.3 |
11.5 |
7.5 |
8.6 |
49.7 |
11.2 |
33.6 |
7.6 |
Corporates |
137.1 |
36.7 |
132.4 |
37.7 |
10.2 |
14.1 |
13.0 |
15.0 |
147.3 |
33.1 |
145.4 |
33.2 |
Total |
373.0 |
100.0 |
351.5 |
100.0 |
72.5 |
100.0 |
86.7 |
100.0 |
445.5 |
100.0 |
438.2 |
100.0 |
Net
exposure by region and exposure class, as of March 31, 2023
Skr
bn |
Middle
East/ Africa |
Asia
excl. Japan |
Japan |
North
America |
Latin
America |
Sweden |
West
European countries excl. Sweden |
Central-
and East European countries |
Total |
Central
governments |
0.0 |
0.3 |
1.7 |
0.7 |
– |
189.1 |
20.8 |
2.3 |
214.9 |
Regional
governments |
– |
– |
– |
– |
– |
17.2 |
3.4 |
– |
20.6 |
Multilateral
development banks |
– |
0.3 |
– |
3.3 |
– |
– |
6.8 |
– |
10.4 |
Public
Sector Entity |
– |
– |
– |
– |
– |
– |
2.6 |
– |
2.6 |
Financial
institutions |
0.1 |
– |
2.3 |
2.8 |
– |
23.0 |
21.4 |
0.1 |
49.7 |
Corporates |
0.2 |
0.8 |
1.4 |
4.7 |
3.9 |
101.1 |
34.0 |
1.2 |
147.3 |
Total |
0.3 |
1.4 |
5.4 |
11.5 |
3.9 |
330.4 |
89.0 |
3.6 |
445.5 |
Net
exposure by region and exposure class, as of December 31, 2022
Skr
bn |
Middle
East/ Africa |
Asia
excl. Japan |
Japan |
North
America |
Latin
America |
Sweden |
West
European countries excl. Sweden |
Central-
and East European countries |
Total |
Central
governments |
0.0 |
0.3 |
2.4 |
0.8 |
– |
191.3 |
30.3 |
2.2 |
227.3 |
Regional
governments |
– |
– |
– |
– |
– |
19.2 |
4.1 |
– |
23.3 |
Multilateral
development banks |
– |
0.3 |
– |
1.1 |
– |
– |
5.1 |
– |
6.5 |
Public
Sector Entity |
– |
– |
– |
– |
– |
– |
2.1 |
– |
2.1 |
Financial
institutions |
0.1 |
– |
0.2 |
1.3 |
– |
16.0 |
15.9 |
0.1 |
33.6 |
Corporates |
0.2 |
1.0 |
1.3 |
6.5 |
3.8 |
97.0 |
34.4 |
1.2 |
145.4 |
Total |
0.3 |
1.6 |
3.9 |
9.7 |
3.8 |
323.5 |
91.9 |
3.5 |
438.2 |
Interim report January–March 2023 | Page 24 of 28 |
Net
exposure to European countries, excluding Sweden
Skr
bn |
March
31,
2023 |
December
31,
2022 |
France |
17.2 |
16.2 |
Germany |
14.1 |
13.1 |
United
Kingdom |
10.5 |
10.5 |
Finland |
10.3 |
11.6 |
Luxembourg |
10.3 |
10.6 |
Denmark |
6.1 |
5.6 |
Norway |
5.2 |
5.4 |
The
Netherlands |
4.8 |
4.0 |
Spain |
4.1 |
2.3 |
Belgium |
3.2 |
3.2 |
Poland |
2.4 |
2.3 |
Ireland |
1.4 |
1.5 |
Portugal |
1.0 |
1.0 |
Switzerland |
0.5 |
0.6 |
Serbia |
0.5 |
0.5 |
Czech
Republic |
0.2 |
0.2 |
Lithuania |
0.2 |
0.2 |
Italy |
0.2 |
0.2 |
Estonia |
0.1 |
0.1 |
Iceland |
0.1 |
0.1 |
Latvia |
0.1 |
0.1 |
Slovakia |
0.1 |
0.1 |
Austria |
– |
5.9 |
Total |
92.6 |
95.3 |
Note
11. Reference interest rate reform
Since
the 2010s, there has been an ongoing reform to replace or amend benchmark interest rates such as LIBOR and other interbank offered
rates (“IBOR”). SEK’s exposure that is directly affected by the reference interest rate reform is primarily
its lending contracts with floating interest rates, its lending and borrowing contracts at fixed interest rates that are hedged
to floating interest rates as well as swaps to floating interest rates. The main floating interest rate exposures relate to USD
LIBOR, STIBOR and EURIBOR. LIBOR is the group of benchmark interest rates that currently has a timed settlement plan. GBP LIBOR,
CHF LIBOR, EUR LIBOR, JPY LIBOR and USD LIBOR 1W and USD LIBOR 2M ceased on December 31, 2021. For USD LIBOR, the rest of the
maturities will expire after June 30, 2023. Outstanding exposures with a reference interest rate of USD LIBOR and a maturity after
June 2023 will be converted during the period up to June 30, 2023. Change of reference interest rate during the reform will be
carried out with the intention that the change shall be financially neutral for each party. SEK has lending contracts and derivative
contracts maturing after June 30, 2023 in USD LIBOR with a nominal amount of USD 1,588 million and USD 19,000 million, respectively.
SEK has adhered to the 2020 ISDA Fallback Protocol, which sets a market standard for handling between counterparties the conversion
of derivatives to a new reference interest rate during the reference interest rate reform. For lending contracts, conversion is
handled by agreement. SEK has applied the relief under IFRS 9 Reform for new reference rates.
Note
12. Transactions with related parties
Transactions with related parties are described in Note 27 to the annual financial statements in SEK’s 2022 Annual Report on Form
20-F. No material changes have taken place in relation to transactions with related parties compared to the description in SEK’s
2022 Annual Report on Form 20-F.
Note
13. Events after the reporting period
No
events with significant impact on the information in this report have occurred after the end of the reporting period.
Interim report January–March 2023 | Page 25 of 28 |
The
Board of Directors and the Chief Executive Officer confirm that this interim report provides a fair overview of the Consolidated
Group’s operations and financial position and results, and describes material risks and uncertainties facing the Consolidated
Group.
Stockholm,
April 24, 2023
AB
SVENSK EXPORTKREDIT
SWEDISH
EXPORT CREDIT CORPORATION
Lennart
Jacobsen |
Håkan
Berg |
Chairman
of the Board |
Director
of the Board |
|
|
|
Anna
Brandt |
Paula
da Silva |
Reinhold
Geijer |
Director
of the Board |
Director
of the Board |
Director
of the Board |
|
|
|
|
Hanna
Lagercrantz |
Katarina
Ljungqvist |
Eva
Nilsagård |
Director
of the Board |
Director
of the Board |
Director
of the Board |
|
|
|
|
Magnus
Montan |
|
|
Chief
Executive Officer |
|
SEK
has established the following expected dates for the publication of financial information and other related matters:
July 14, 2023 |
|
Interim report for the period January 1, 2023 –
June 30, 2023 |
October 18, 2023 |
|
Interim report for the period January 1, 2023 –
September 30, 2023 |
January 23, 2024 |
|
Interim report for the period January 1, 2023 –
December 31, 2023 |
The
report contains information that SEK will disclose pursuant to the Securities Markets Act and/or the Financial Instruments Trading
Act. The information was submitted for publication on April 24, 2023, 15:00 (CEST).
Additional information about SEK, including investor presentations
and SEK’s 2022 Annual Report on Form 20-F, is available at www.sek.se. Information available on or accessible through SEK’s
website is not incorporated herein by reference.
Interim report January–March 2023 | Page 26 of 28 |
Alternative
performance measures (see *)
Alternative
performance measures (APMs) are key performance indicators that are not defined under IFRS or in the Capital Requirements Directive IV
(CRD IV) or in regulation (EU) No. 575/2013 on prudential requirements for credit institutions and investment firms (CRR). SEK has presented
these, either because they are in common use within the industry or because they comply with SEK’s assignment from the Swedish
government. The APMs are used internally to monitor and manage operations, and are not considered to be directly comparable with
similar key performance indicators presented by other companies. For additional information regarding the APMs, refer to www.sek.se.
* After-tax
return on equity
Net
profit, expressed as a percentage per annum of the current year’s average equity (calculated using the opening and closing balances
for the report period).
* Average
interest-bearing assets
This
item includes cash and cash equivalents, treasuries/government bonds, other interest-bearing securities except loans, loans in the form
of interest-bearing securities, loans to credit institutions and loans to the public, and is calculated using the opening and closing
balances for the reporting period.
* Average
interest-bearing liabilities
This
item includes borrowing from credit institutions, borrowing from the public and debt securities issued and is calculated using the opening
and closing balances for the reporting period.
Basic
and diluted earnings per share (Skr)
Net
profit divided by the average number of shares, which amounted to 3,990,000 for each period.
* CIRR
loans as percentage of new lending
The
proportion of officially supported export credits (CIRR) of new lending.
CIRR-system
The
CIRR-system comprises of the system of officially supported export credits (CIRR).
Common
Equity Tier 1 capital ratio
The
capital ratio is the quotient of total common equity tier 1 capital and the total risk exposure amount.
Green
bond
A
green bond is a bond where the capital is earmarked for various forms of environmental projects.
Green
lending and green loans
SEK’s
green lending comprises green loans that promote the transition to a low-carbon economy. The classification is performed by sustainability
analysts at SEK. The effects that the loan will give rise to, such as reduced emissions of greenhouse gases, are monitored and reported.
Green loans are categorized under SEK’s framework for green bonds and green loans finance products or services that lead to significant
and demonstrable progress toward the goal of sustainable development.
Leverage
ratio
Tier
1 capital expressed as a percentage of the exposure measured under CRR (refer to Note 9).
Liquidity
coverage ratio (LCR)
The
liquidity coverage ratio is a liquidity metric that shows SEK’s highly liquid assets in relation to the company’s net
cash outflows for the next 30 calendar days. An LCR of 100 percent means that the company’s liquidity reserve is of sufficient
size to enable the company to manage stressed liquidity outflows over a period of 30 days. Unlike the Swedish FSA’s rules, the
EU rules take into account the outflows that correspond to the need to pledge collateral for derivatives that would arise as a result
of the effects of a negative market scenario.
Loans
Lending
pertains to all credit facilities provided in the form of interest-bearing securities, and credit facilities granted by traditional documentation.
SEK considers these amounts to be useful measurements of SEK’s lending volumes. Accordingly, comments on lending volumes in this
report pertain to amounts based on this definition.
* Loans,
outstanding and undisbursed
The
total of loans in the form of interest-bearing securities, loans to credit institutions, loans to the public and loans, outstanding and
undisbursed. Deduction is made for cash collateral under the security agreements for derivative contracts and deposits with time to maturity
exceeding three months (see the Statement of Financial Position and Note 8).
Net
stable funding ratio (NSFR)
This
ratio measures stable funding in relation to the company’s illiquid assets over a one-year, stressed scenario in accordance with
CRRII.
* New
lending
New
lending includes all new committed loans, irrespective of tenor. Not all new lending is reported in the Consolidated Statement of
Financial Position and the Consolidated Statement of Cash Flows since certain portions comprise committed undisbursed loans (see Note
8). The amounts reported for committed undisbursed loans may change when presented in the Consolidated Statement of Financial Position
due to changes in exchange rates, for example.
* New
long-term borrowings
New
borrowings with maturities exceeding one year, for which the amounts are based on the trade date.
* Outstanding
senior debt
The
total of borrowing from credit institutions, borrowing from the public and debt securities issued.
Own
credit risk
Net
fair value change due to credit risk on financial liabilities designated as at fair value through profit or loss.
Repurchase
and redemption of own debt
The
amounts are based on the trade date.
Social
loans
Social
loans are offered to exporters and suppliers for projects, often in developing countries, whose aim is to improve social conditions.
Sustainability-linked
loans
Sustainability-linked
loans concern working capital connected to the borrower’s sustainability targets, for example, energy-efficiency enhancements,
reduced transportation or reduced number of accidents. If the borrower reaches their targets, they are rewarded with a lower interest
rate.
Swedish
exporters
SEK’s
clients that directly or indirectly promote Swedish export.
Tier
1 capital ratio
The
capital ratio is the quotient of total tier 1 capital and the total risk exposure amount.
Total
capital ratio
The
capital ratio is the quotient of total Own funds and the total risk exposure amount.
Unless
otherwise stated, amounts in this report are in millions (mn) of Swedish kronor (Skr), abbreviated “Skr mn” and relate to
the group consisting of the Parent Company and its consolidated subsidiary (together, the “Group” or the “Consolidated
Group”). AB Svensk Exportkredit (SEK), is a Swedish corporation with the identity number 556084-0315, and with its registered office
in Stockholm, Sweden. SEK is a public limited liability company as defined in the Swedish Companies Act. In some instances, under Swedish
law, a public company is obliged to add “(publ.)” to its company name.
Interim report January–March 2023 | Page 27 of 28 |
About
Swedish Export Credit Corporation (SEK)
SEK
is owned by the Swedish state, and since 1962 has enabled growth for thousands of Swedish companies. To expand their
production, make acquisitions, employ more people and enable selling goods and services to customers
worldwide.
SEK’s
mission |
Our
mission is to ensure access to financial solutions for the Swedish export industry on commercial and sustainable terms. The
mission includes making available fixed-interest export credits within the officially supported CIRR-system. |
SEK’s
vision |
Our
vision is a sustainable world through increased Swedish exports. |
SEK’s
core values |
We
are professionals, make the difficult easy and build sustainable relationships. |
SEK’s
clients |
We
finance exporters, their subcontractors and foreign clients. The target group is companies with annual sales exceeding
Skr 500 million and that are linked to Swedish interests and exports. |
SEK’s
partnerships |
Through
Team Sweden, we have close partnerships with other export promotion agencies in Sweden such as Business Sweden and The Swedish
Export Credit Agency (EKN). Our international network is substantial and we also work with numerous Swedish and international
banks. |
Interim report January–March 2023 | Page 28 of 28 |