2016-02-26 12:01:15 CET
2016-02-26 12:01:15 CET
REGULATED INFORMATION
Finnvera Oyj - Financial Statement Release
Q4 and Financial Statements for the Finnvera Group 1 January–31 December 2015
A variable and record-breaking year
Compared against the previous year, the world economy gained a little momentum
in 2015. However, the economy did not develop steadily; instead, situations and
divergent estimates varied throughout the year. The subdued outlook for exports
and low spirits on the domestic market kept the demand for SME financing for
investments modest. In contrast, financing for working capital and credits for
changes of ownership were in great demand. In exports, shipbuilding orders were
the biggest single factor increasing the demand for financing. Finnvera’s
contribution was also needed in some other large export projects.
Business operations and the financial trend
In 2015, Finnvera’s offers for export credit guarantees increased by 28 per
cent, while offers to finance export credits rose by 46 per cent on the
previous year. The volume of loans and guarantees granted to SMEs and
enterprises larger than the SME definition applied by the EU was 19 per cent
greater than the year before.
Finnvera Group
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1 Jan–31 1 Jan–31 Change %
Dec 2015 Dec 2014
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Offered financing
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Loans and guarantees 906 MEUR 763 MEUR 19%
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Export credit guarantees and special 6 760 MEUR 5 274 MEUR 28%
guarantees
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Export credits 4 131 MEUR 2 829 MEUR 46%
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31 Dec 2015 31 Dec 2014 Change
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Outstanding commitments
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Loans and guarantees 2 285 MEUR 2 378 MEUR -4%
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Export credit guarantees and special 17 436 MEUR 12 600 MEUR 38%
guarantees
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Export credits 4 240 MEUR 3 330 MEUR 27%
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1 Jan–31 1 Jan–31 Change %
Dec 2015 Dec 2014
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Net interest income and fee and commission 197 MEUR 189 MEUR 4%
income and expenses (net)
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Operating profit 114 MEUR 101 MEUR 13%
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Profit for the period 111 MEUR 100 MEUR 11%
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31 Dec 2015 31 Dec 2014 Change
%-point
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Equity ratio 13.3% 15.2% -1.9%
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Capital adequacy, Tier 2 19.6% 18.6% 1%
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Cost-income ratio 28.3% 25.9% 2.4%
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The profit for the last quarter of 2015 was EUR 5 million. The figure was two
thirds, or EUR 46 million, less than the profit for the previous quarter (51
million). The main factors affecting the smaller profit were the impairment
losses on receivables and guarantee losses, which doubled and were EUR 33
million more than in the previous quarter. The increase in the impairment
losses on receivables and guarantee losses between the two quarters was partly
due to the reversal and reduction of impairment losses and provisions for
losses, which took place in the previous quarter.
The profit for the Group in 2015 was EUR 111 million (100 million). This was 11
per cent better than the year before. The main factor improving the financial
performance was the decrease of 57 per cent, or EUR 19 million, in impairment
losses on
receivables and guarantee losses. In addition, the increase of 8 per cent in
the net interest income and the rise of 3 per cent in the net value of fee and
commission income and expenses improved the financial performance.
The profit of the parent company, Finnvera plc, in 2015 stood at EUR 95 million
(92 million). This was 3 per cent more than the year before. When divided
between the business areas, the parent company’s financial performance was as
follows: the
profit for export financing was EUR 82 million (96 million) and that for SME
financing EUR 38 million (6 million). In addition, the impairment losses
recognised on investments, EUR 25 million (9 million), had an impact on the
parent company’s profit.
Finnvera Group Q4/201 Q3/201 Change Q4/201 Change *2015 *2014 Change
5 5 4
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Profit for the MEUR MEUR % MEUR % MEUR MEUR %
period
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Net interest 13 15 -12 10 35 56 52 8
income
------------------- ---------------- -------
Fee and commission 34 34 -1 35 -4 141 137 3
income and
expenses (net)
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Gains/losses from -13 -2 - 4 - -21 -10 108
items carried at
fair velue
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Other operating 2 0 - 0 - 2 2 43
income
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Administrative -12 -9 32 -11 9 -44 -41 8
expenses
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Impairment losses, -17 16 201 -9 84 -15 -34 -57
guarantee losses
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Loans and -21 6 444 -26 -22 -87 -105 -18
guarantees
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Credit loss 13 9 42 18 -28 83 64 30
compensation from
the State
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Export credit -9 1 927 -1 - -10 8 232
guarantees and
special
guarantees
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Operating profit 5 53 -90 27 -81 114 101 13
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Profit for the 5 51 -90 25 -80 111 100 11
period
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Outlook for financing
Economic growth and investments are likely to remain at a low level in 2016,
and SME financing continues to focus on working capital needs. However, it is
expected that the increase in changes of ownership and the investments
disclosed by large corporations will have a positive effect on the demand for
SME financing. In addition, Finnvera’s new mandates and financing products
support the rise in the volume of SME financing.
Financing solutions offered to buyers will continue to play a pivotal role in
exports of capital goods sold by large corporations.
It is expected that the demand for export credit guarantees and export credits
will decline slightly from the previous year if no individual major orders are
placed in 2016. Ships, telecommunications and the forest industry are still
anticipated to account for the bulk of demand associated with large
corporations’ exports.
According to the current estimate, the Finnvera Group’s financial performance
for 2016 is likely to fall below that for 2015. The uncertainty factors
associated with economic trends make it difficult to predict financial
performance. If more risks materialise than has been anticipated, the situation
may weaken considerably from what is projected.
CEO Pauli Heikkilä:
“The new tasks assigned to us added momentum to the year and increased the
demand for our financing. We granted markedly more financing to SMEs than the
year before. This rise was mainly attributable to our new mandates and to a
positive trend
in changes of ownership. However, investments did not pick up yet; instead, SME
financing continued to be needed mainly for working capital.
The total value of offers pertaining to exports was record high. The orders for
ships that followed the ownership arrangements of the Turku shipyard, an event
important from the point of view of industrial history, were the absolute
highlight of the year and were also visible in our export financing. To provide
financing for the buyer, export credit guarantees or, possibly, pre-delivery
financing are needed in practice almost always for major shipbuilding projects.
In consequence, ship financing will account for an exceptionally large share,
or about one third, of our current commitments. The shipyard is an important
employer in the Turku region and also has several hundreds of sub-contractors
giving work to tens of thousands of people.”
Additional information:
Pauli Heikkilä, Chief Executive Officer, tel. +358 29 460 2400
Ulla Hagman, Senior Vice President, CFO, tel. +358 29 460 2458
Distribution
NASDAQ OMX Helsinki Oy
London Stock Exchange
The principal media
www.finnvera.fi
Finnvera publishes its Annual Report for 2015 as an electronic document on the
company’s website
in Finnish and English during week 10. The Annual Report also includes the
Corporate Responsibility Report. The half year report 1 Jan–31 June of the
company will be published on 11 August 2016.
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