Record numbers of export transactions guaranteed by EKN in 2016

Press release - 24 FEB 2017

Annual report 2016: EKN’s guarantees have been used for more export transactions than ever before. Small and medium sized companies account for a third of the increase. The number of countries to which EKN guarantees exports also increased - from 119 to 130

EKN’s total guarantee volume increased to SEK 43.6 billion in 2016, an increase of about 5 per cent over the previous year, excluding Saab’s Gripen transaction with Brazil in 2015, which was the largest transaction ever guaranteed by EKN.

The number of export transactions guaranteed by EKN in 2016 was 1,821, an increase of 17 per cent compared with 2015.

“In an uncertain world, demand for EKN’s guarantees continues to be high,” says Director General Anna-Karin Jatko. “When companies and banks need to increase their risk capacity, EKN is there as a long-term guarantee of Swedish export success.”

EKN has continued its focus on reaching small and medium sized enterprice during the year by means of increased marketing and a further strengthened regional presence. Among other things, EKN participates in the government’s regional export centre initiative: these have been launched in six regions.

“2016 was yet another year of increase in the number of small and medium sized enterprise customers and high guarantee volume to this target group - evidence that EKN’s initiatives favour the small companies’ export business, says Anna-Karin Jatko.

The number of problem transactions and claims has increased and has had a negative effect on the year’s financial results.

“Exporters and banks that have insured themselves with EKN against default on payments receive compensation for claims and can thus continue to create growth with new business.

Years of falling commodity prices on world markets is just one of many underlying factors for the increase in claims at many of the world’s export credit institutions.”

 “EKN has developed a strong financial position over the years, which has enabled us to handle these losses with our own resources. It is often possible for EKN to recover all or part of the debts we have taken on as a result of claims.”

New transactions and profit/loss SEK million)

2016

2015

 

 

 

New offers

52,031

81,105

New guarantees

43,610

90,056*

Earned premiums

1,534

1,516

Claims paid

1,529

476

Profit/Loss

-1,057

194

 

 

 

 

Outstanding exposure and accumulated earnings

(SEK million)

31/12/2016

31/12/2015

 

 

 

Offers outstanding

63,672

72,986

Guarantees outstanding

201,502

214,134

Provisions

11,623

9,833

Outstanding claims, nominal

8,924

6,897

Outstanding claims, calculated net value

1,523

2,055

Equity

21,434

22,737

*) including guarantee for Saab’s Gripen transaction with Brazil.