Net interest income was NOK 1,105 million in the first nine months of the year, which is NOK 10 million higher than for the same period in 2010. This reflects a continued strong demand for financing from the industries served by Eksportfinans, and especially related to oil and gas projects.
High level of disbursements of export related loans and strong results from operations
New disbursements amounted to NOK 24.8 billion in the first nine months of 2011, compared to NOK 21.2 billion for the corresponding period in 2010. The volume of outstanding export loans was NOK 112.8 billion at September 30, 2011, compared to NOK 99.8 billion at December 31, 2010, and NOK 92.7 billion at September 30, 2010. Net profit according to IFRS totaled NOK 374 million in the first nine months of 2011, compared to NOK 177 million for the same period in 2010. Adjusted for unrealized and realized gains and losses the profit totaled NOK 678 million at September 30, 2011, which was NOK 30 million higher than at the same time last year.
Another one year temporary exemption from EU’s directive
EU’s capital requirement directive (directive 2006/48/EF) was incorporated into Norwegian Law by a regulation in December 2010. The directive implies that the maximum exposure (guaranteed by banks) Eksportfinans is allowed to have per single client is reduced by 80 percent, from NOK 6.5 billion to NOK 1.3 billion (based on the Company’s capital at September 30, 2011). Since January this year Eksportfinans has been subject to a temporary exemption, valid until December 31, 2011.
In a common press release from the Ministry of Finance and Ministry of Trade and Industry dated October 19, 2011, the temporary exemption was extended by one year, until December 31, 2012.
Concurrently, the Authorities announced that they found no grounds for granting Eksportfinans a permanent exemption at the expiration of the temporary exemption period. Eksportfinans will use the temporary exemption period to adapt to the regulations towards December 31, 2012. As requested by the Authorities, a capital increase will be considered among other alternatives. At September 30, 2011, the capital adequacy ratio was 16.5 percent versus 14.4 percent at the same time last year.
Downgrade by Moody’s
On October 28, 2011, Moody’s Investor Services downgraded Eksportfinans with two notches from Aa1 to Aa3. The rating is placed on review for further downgrade. The rating action follows the Norwegian Ministry of Finance’s decision not to grant Eksportfinans a permanent exemption from the regulations on large exposures in the EU’s Capital Requirement Directive.
Key figures:
| First nine months 2011 | First nine months 2010 | |
| New loans disbursed | NOK 24.8 billion | NOK 21.2 billion |
| New bond debt issued | NOK 45.4 billion | NOK 56.2 billion |
| Total assets at end of period | NOK 226.4 billion | NOK 232.2 billion |
| Capital adequacy at end of period | 16.5 % | 14.4 % |
| Net interest income | NOK 1,105 million | NOK 1,095 million |
|
Profit for the period Profit excluding unrealized gains/losses on financial instruments |
NOK 374 million NOK 678 million |
NOK 177 million NOK 648 million |
The complete financial report for the third quarter 2011 is available at www.eksportfinans.no
| Eksportfinans is the Norwegian institute for export financing owned by banks and the Norwegian Government. It offers competitive long term financing to the export industry. |
For further information, please contact:
President and CEO Gisèle Marchand, phone: +47 22 01 23 70,
e-mail: gma@eksportfinans.no
EVP Director of Staff, Elise Lindbæk, mobile: +47 90 51 82 50,
e-mail: el@eksportfinans.no
