SOURCE: AB Svensk Exportkredit

August 31, 2009 10:24 ET

SEK: Record-high lending volumes in the first six months

STOCKHOLM, SWEDEN--(Marketwire - August 31, 2009) -

Continued very strong demand for long-term financing from the Swedish export industry has resulted in record-high lending volumes for SEK in the first half of the year. New lending amounted Skr 58.3 billion during the period, and SEK is now the single most important source of financing for Swedish export credits. SEK's earnings benefited greatly from the high lending volumes and its successful funding operations.

--  The volume of new customer financing was Skr 58.3 billion
--  The volume of outstanding offers amounted to Skr 72.5 billion
    (27.4 billion at the end of 2008)
--  New borrowing amounted to Skr 48.4 billion (51.8)
--  Operating profit (IFRS) for the first half of the year,
    including impairments, was Skr 1,355.8 million (413.3)
--  Adjusted operating profit (Core Earnings) for the first
    quarter, including impairments, was Skr 918.0 million (381.2)

SEK's volume of new customer financing for the first half of the year was very high, amounting to Skr 58.3 billion, which is SEK's highest ever half-year figure and an increase of Skr 27.5 billion on the first half of 2008. This large rise in volumes is primarily due to the significant increase in volumes of export credits and lending to Swedish exporters and their customers. The volume of offers also increased significantly, amounting to Skr 72.5 billion, compared with Skr 27.4 billion at the end of 2008.

The high lending volumes and successful borrowing also resulted in very strong earnings for SEK for the first half of the year. Operating profit (IFRS) amounted to Skr 1,355.8 million, a marked increase on the same period in 2008. Adjusted operating profit, core earnings, amounted to Skr 918.0 million.

"The Swedish export industry continues to show a great need for long-term financing solutions, which is clearly demonstrated by our high volumes of deals and offers. The increased volumes also show that the export industry needs a stable and reliable financial institution like SEK," said SEK President Peter Yngwe.

SEK's funding operations have been successful during the period. The volume of new borrowing amounted to Skr 48.4 billion, despite the continued turmoil and lack of liquidity in the capital markets.

For more information, please contact Johan Winlund, Head of Communications at SEK, +46 8 613 84 88.

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