25.05.2012
The Finnvera Group’s Interim Report for 1 January–31 March 2012
Key figures for the first quarter of 2012
During the period under review, demand for export credit guarantees and special guarantees rose to EUR 1.5 billion, which was 65 per cent more than during the corresponding period in 2011. In contrast, demand for SME financing was 18 per cent lower than during the first quarter of 2011.
“Seasonal variation and some individual large export projects under negotiation had an impact on the demand for export financing. In SME financing, the sluggish economy and the low level of investments reduced demand and the volumes of financing granted. From the perspective of SMEs, bank financing is working well in Finland, but when it comes to export financing, banks are more cautious and hope that Finnvera would increasingly often participate in financing projects to share the risk with banks. The new model for financing export credits will also be put into use during the current year,” says CEO Pauli Heikkilä.
The total value of offers pertaining to exports was more or less at the same level as during the corresponding period the year before. The total value of loans and domestic guarantees granted was 11 per cent less than during the first quarter of 2011.
The volume of venture capital investments was at the same level as the year before. In contrast, the business angel network expanded markedly during the period under review.
Financial trend
The Finnvera Group’s profit came to EUR 23 million, or EUR 13 million more than during the first quarter of 2011. The parent company’s profit was EUR 23 million (11 million). The main factors contributing to the better result were smaller impairment losses on receivables in SME financing and decreased guarantee losses.
Export financing accounted for EUR 14 million of the profit. In export financing, no major losses were recorded and no major increases were made in provisions for losses. The profit from domestic credit and guarantee operations was EUR 9.0 million.
Future prospects and impending risks
Demand for SME financing is likely to remain at a low level throughout the year. The focus will probably still be on financing for working capital and for the needs of export trading. SMEs have expressed more interest in financing services for export trade; one factor contributing to this trend is Finnvera’s SME Export Finance Programme.
The outlook for the world economy includes many uncertainties. However, demand for export financing is estimated to continue brisk.
According to the current estimate, Finnvera’s financial performance for this year is likely to remain at the same level as in 2011. If more risks materialise at the same time as the economy dips, the estimated profit may diminish considerably.
Interim Report 1 January - 31 March 2012 (PDF)
Additional information:
Pauli Heikkilä, Chief Executive Officer, tel. +358 29 460 2400
Topi Vesteri, Executive Vice President, tel. +358 29 460 2676
Annamarja Paloheimo, Senior Vice President, tel. +358 29 460 2539
Ulla Hagman, Senior Vice President, Finances and IT, tel. +358 29 460 2458
Finnvera's customers can submit applications for business financing safely and securely by using Finnvera plc's Online Services.
Telephone service is available from Monday to Friday between 8:00 a.m. and 4:15 p.m.
Finnvera provides financing for the start, growth and internationalisation of enterprises and guarantees against risks arising from exports. Finnvera strengthens the operating potential and competitiveness of Finnish enterprises by offering loans, domestic guarantees, venture capital investments, export credit guarantees and other services associated with the financing of exports. The risks included in financing are shared between Finnvera and other providers of financing.
Finnvera is a specialised financing company owned by the State of Finland and it is the official Export Credit Agency (ECA) of Finland.
