2013-11-15 11:00:46 CET
2013-11-15 11:01:48 CET
REGULATED INFORMATION
Finnvera Oyj - Interim report (Q1 and Q3)
The Finnvera Group's Interim Report for January-September 2013
Financing is available - demand is weak
Bank financing in Finland is still functioning reasonably well, but bank
collateral and self-financing requirements and financing prices have increased.
The demand for financing by SMEs was still affected by a lack of investments.
Although in Finnvera there was a great deal done in working capital financing
and the restructuring of previous financing arrangements, euro-currency demand
was weak. The overall decline in Finnish exports was not felt in the demand for
export financing, which was greater than the demand for the same period in the
previous year.
Business operations and financial trend
The value of financing offers given to SMEs in January-September dropped 12 per
cent from the same period in the previous year. More financing applications
involving exports were received than in the previous year, but the number of
offers given was nearly 10 per cent lower. Credit agreements for some of the
applications were still under negotiation.
The Finnvera Group's profit was EUR 71 million, which is significantly better
than for the same period in the previous year (30 million). This improvement in
the Group's profit was mostly due to an increase in the parent company's
(Finnvera plc) fee and commission income as well as a decrease in the net
impairment loss on financial assets. Correspondingly, the improvement in profit
was reduced by a decline in net interest income.
In the parent company Finnvera plc both export financing and SME financing
showed a profit: The profit for export financing was EUR 63 million (45
million) and for domestic credits and guarantees EUR 11 million (-10 million).
The subsidiaries and associated companies had an impact of EUR -3 million on
the Group's profit (-4).
Finnvera Group Q3/201 Q2/201 Q1/201 Q3/201 Change 1-9/20 1-9/20 Change
3 3 3 2 13 12
--------------------------------------------------------------------------------
Financial MEUR MEUR MEUR MEUR % MEUR MEUR %
performance
--------------------------------------------------------------------------------
Net interest 12 14 14 15 -18 40 46 -12
income
--------------------------------------------------------------------------------
Fee and 35 30 32 28 28 97 83 17
commission
income and
expenses (net)
--------------------------------------------------------------------------------
Gains/Losses 0 -2 -1 0 -69 -3 -3 8
from items
carried at fair
value
--------------------------------------------------------------------------------
Administrative -8 -12 -11 -9 -3 -31 -31 2
expenses
--------------------------------------------------------------------------------
Impairment -11 -16 -2 -22 -49 -29 -63 -54
losses on
receivables,
guarantee
losses
--------------------------------------------------------------------------------
Impairment -24 -17 -29 -34 -29 -70 -64 9
losses on loans
and domestic
guarantees
--------------------------------------------------------------------------------
Change in -1 -7 8 -5 -75 0 -26 -101
impairment
losses and
guarantee
provisions
--------------------------------------------------------------------------------
Credit loss 14 8 18 19 -24 41 35 16
compensation
from the State
--------------------------------------------------------------------------------
Losses from 0 0 -2 -6 -99 -2 -11 -83
export credit
guarantees and
special
guarantees
--------------------------------------------------------------------------------
Change in 1 -1 2 6 -91 2 3 -34
provisions for
export credit
and special
guarantees
--------------------------------------------------------------------------------
Operating profit 27 15 30 11 143 71 29 142
--------------------------------------------------------------------------------
Profit for the 27 14 30 11 148 71 30 135
period
--------------------------------------------------------------------------------
The group's key figures on 30 September 2013 (30 September 2012)
-- Capital adequacy 17.3% (15.8)
-- Cost/income ratio 25.1% (27.6)
-- Equity ratio 19.3% (23.4).
Outlooks
Uncertainty in the global economy is dampening the desire to invest, make
growth plans and take risks. This can be seen in the modest demand for SME
financing. Public debate, particularly that concerning the poor availability of
SME financing, further increases the feeling among businesses that investment
conditions are less than ideal. Ensuring the financing of financially viable
projects is Finnvera's primary task, something which is carried out effectively
even in an economically challenging time.
The outlook for an industry concentrated on the export of Finnish capital goods
remains dim. The demand for Finnvera's export credit guarantees and credits
will, however, stay at the currently high level, because, just as is done in
competing countries, businesses are working to win deals by offering
comprehensive solutions, which also include the long-term financing required by
buyers.
According to the current estimate, the Finnvera Group's financial performance
for 2013 is expected to improve over that for 2012. If realised, individual
risks can have a considerably detrimental impact on performance.
CEO Pauli Heikkilä:"Despite a certain degree of uncertainty, the general global economic situation
is showing signs of a gradual recovery. Due to the industrial structure and a
decline in competitiveness, the situation for Finland is not yet as promising.
Although there has not been any growth in Finnish exports this year, the demand
for Finnvera's export credit guarantees and credits has remained high, which is
a result of tighter bank regulations.
Government preparations include several development projects concerning
Finnvera's services. These include the possibility of Finnvera to mark SME
bonds, increase the authorisations for export credit guarantees and export
credits, implement a refinancing guarantee and finance domestic investments
made by major corporations. The decision regarding these will be made at the
end of the year."
Additional information:
Pauli Heikkilä, CEO, tel. +358 29 460 2400
Ulla Hagman, Senior Vice President, Finances and IT, tel. +358 29 460 2458
© 2024 Nasdaq, Inc. All Rights Reserved |