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Finnvera Group Report of the Board of Directors and Financial Statements 2021

Published date

Finnvera Group, Stock Exchange Release, 16 February 2022

Report of the Board of Directors and Financial Statements 2021

Domestic financing remained at a high level while export financing grew – Finnvera Group made a profit of EUR 153 million

Finnvera Group, summary

  • Result 153 MEUR (-748) – no new significant loss provisions had to be made, and no material final losses were realised – however, there were no grounds for decreasing the credit loss provisions made in 2020.
  • Profit by segment: profit of the parent company Finnvera plc’s SME and midcap business stood at 34 MEUR (87) and that of Large Corporates business at 73 MEUR (-848); the subsidiaries’ impact on the Group’s result was 45 MEUR (13).
  • Separate result for export credit guarantee and special guarantee operations: 79 MEUR (-829).
  • Balance sheet total: EUR 12.2 bn (12.7) – the -4% change was mainly due to the change in fair value of interest rate and currency swaps.
  • Contingent liabilities stood at EUR 15.9 bn (15.4) – the most significant factor in this increase of 3% was increased exposure of domestic as well as export credit and special guarantees.
  • Parent company Finnvera plc’s total exposure increased by 2% to EUR 25.6 bn (25.0).
  • As a result of the profitable result and recapitalisation, the non-restricted equity and the State Guarantee Fund (buffer reserves) increased to EUR 1.4 bn (0.8).
  • Expected credit losses based on the balance sheet items remained at EUR 1.4 bn, or the same level as at year end 2020 (1.4).
  • Equity ratio went up by 1.3 pp to 7.1% (5.7).
  • The expense-income ratio improved by 2.8 pp to 23.5% (26.4).
  • The NPS index (net promoter score) measuring customer satisfaction was 67 (56); the index was increased by improvement in Locally operating small companies and Large Corporates segments.

Finnvera Group, year 2021 (vs. 2020)

Result for the period

153 MEUR


Balance sheet total

EUR 12.2 bn

(12.7), change −4%

Total exposure, the parent

company’s domestic, export 

credit guarantee and special

guarantee operations

EUR 25.6 bn

(25.0), change 2%

Non-restricted equity

and The State Guarantee

Fund after result for

the period

EUR 1.4 bn

(0.8), change 68%

Expense-income ratio


(26.4), change −2.8 pp

Equity ratio


(5.7), change 1.3 pp

NPS index

(net promoter score)


(56), change 11 points

Expected credit losses based

on the balance sheet items

EUR 1.4 bn

(1.4), change 0%

CEO Pauli Heikkilä:

“The global economy and Finland’s national economy returned to a growth track in 2021. Domestic financing remained at a high level, and Finnvera granted domestic loans and guarantees amounting to EUR 1.5 billion (1.4). The financing was targeted at those priority areas we consider the key to companies’ renewal and investments: start-up business, growth, internationalisation and transfers of ownership. In addition, Finnvera exceptionally financed large corporates in Finland, which was made possible by the European Investment Bank’s EGF facility.

We granted EUR 4.6 billion (3.2) in export credit guarantees and special guarantees and EUR 0.7 billion (1.1) in export credits. While no large individual projects went ahead, including ship orders, there was a high number of export financing projects in many other sectors.

The Finnvera Group made a profitable result of EUR 153 million (-748) in 2021. Once the preliminary result became clear, we issued a positive profit warning on 19 January 2022. While no new significant credit loss provisions had to be made for export credit guarantee operations and no major final losses were realised, neither were there grounds for reversing the extensive loss provisions made in 2020. Cumulative self-sustainability has been achieved, despite the loss-making year in 2020, taking into account the assets in the State Guarantee Fund that were accumulated from the operations of Finnvera’s predecessor organisations. By turning a profit in 2021, Finnvera accumulated reserves for potential future losses.

To ensure that Finnvera’s export financing will remain stable and internationally competitive, the Government decided in December to recapitalise Finnvera’s export guarantee and special guarantee operations by EUR 400 million. A provision for this had been made in June in the third supplementary budget for the year.

The pandemic has not impacted all sectors in the same way. Of key export financing sectors, telecommunications and the pulp and paper sector were able to operate steadily and make new investments, whereas in domestic financing, especially tourism and the event industry continued to suffer greatly. The outlook for cruise shipping plays a key role for Finnvera.

Our new strategy deliberately looks beyond the pandemic. In addition to assuring the competitiveness of export financing, we will diversify our financing solutions, especially to facilitate business growth. Corporate responsibility and climate change mitigation are important elements of the strategy. The uncertainty caused by the coronavirus pandemic has unfortunately not been eliminated. Our mission is to compensate for uncertainties related to financing by diversifying the financing solutions available for companies together with other providers of financing and our partners.”

Finnvera Group, financing granted and exposure

2021 (vs. 2020)

  • Domestic loans and guarantees granted: 1,452 MEUR (1,425), change 2%
  • Export credit guarantees and special guarantees granted, incl. SME and midcap export credit guarantees: 4,612 MEUR (3,214), change 43%
  • Export credits granted: 658 MEUR (1,089), change -40%
    • The credit risk for Finnish Export Credit Ltd.’s export credits is covered by the parent company Finnvera plc.’s export credit guarantee.
    • The fluctuation in the amount of export credit guarantees and export credits is influenced by the timing of individual major export transactions.

31 Dec 2021 (vs. 31 Dec 2020)

  • Exposure, drawn domestic loans and guarantees: 2,649 MEUR (2,430), change 9%
  • Exposure, export credit guarantees and special guarantees, incl. SME and midcap export credit guarantees: 22,637 MEUR (22,408), change 1%
    • Drawn exposure: 12,136 MEUR (11,762), change 3%, of which Large Corporates’ cruise shipping exposure in total 5,387 MEUR (4,427)
    • Undrawn exposure 7,365 MEUR (7,749) and binding offers 3,137 MEUR (2,896), in total 10,502 MEUR (10,646), change -1%, of which Large Corporates’ cruise shipping exposure in total 6,372 MEUR (7,089).
  • Exposure, export credits drawn: 7,942 MEUR (7,561), change 5%.


Finnvera Group

Financial performance









Net interest income








Net fee and commission income








Gains and losses from financial instruments carried at fair

value through P&L and foreign exchange gains and losses








Other operating income








Operational expenses








Other operating expenses and depreciations








Realised credit losses and change in expected credit losses, net








Operating profit/loss








Profit/loss for the period








Financial performance

The Finnvera Group turned a profitable result of EUR 153 million (-748) in 2021. The amount of loss provisions, which were clearly less substantial than in 2020, contributed to the positive result. No significant new loss provisions had to be made for export credit guarantees in 2021, and no essential final losses were realised. Neither were there grounds for reserving the substantial loss provisions made in 2020, however. Although the world economy and the Finnish economy turned into growth in 2021, no significant recovery took place in the business operations of the major risk subjects during the year. Neither did the credit risk of guarantee commitments decrease substantially.

Compared to 2020 and also the pre-pandemic years, the result for 2021 was additionally improved by increases in the net interest income and net fee and commission income. The Group’s net interest income was 9 per cent higher than in 2020, and the net interest income from asset management was improved especially by the gains made by the interest and investment positions. The net fee and commission income grew by 17 per cent year on year. The fee and commission income increased by 12 per cent, which was influenced by an increase in the outstanding guarantees in domestic financing particularly due to working capital financing granted to large corporates and an increase in outstanding export credit guarantees and special guarantees.

After the profit made in 2021 and the recapitalisation of the export guarantee and special guarantee operations from the Government, the parent company Finnvera’s domestic and export financing reserves for covering potential future losses amounted to a total of EUR 1,224 million (693). The reserves consisted of non-restricted equity for domestic financing of EUR 399 million (351), non-restricted equity for export credit and special guarantee financing as well as assets in the State Guarantee Fund, EUR 825 million (342) in total, for covering a loss-making result.

Outlook for financing

Steady demand for Finnvera’s domestic financing is expected to continue in 2022, and in addition to working capital financing required for growth, the company expects financing for SMEs’ investments to be in high demand. Banks have access to a higher number of guarantee programmes granted by the European Investment Bank group than before, which may reduce the demand for Finnvera’s financing, especially in the first six months of the year.

Finnvera can grant working capital financing to large corporates within the framework of the European Investment Bank’s EGF facility, which was extended until the end of June 2022.

Working closely together with private financing providers, Finnvera will continue to meet the shortfall in the financial market. We will diversify our financing solutions to enable Finnish companies to launch their business and to seek growth and internationalisation. Finnvera is preparing to provide direct lending for export transactions of less than EUR 20 million, direct domestic lending in certain situations, and financing solutions for projects related to climate change mitigation.

The prolonged coronavirus pandemic affects the demand for export credit and special guarantees. The pandemic reduces the demand for new export credit guarantees for cruise shipping companies, in particular. In other industries, including telecommunications and the pulp and paper sector, the year is expected to be normal in terms of demand. As in previous years, the realisation and timing of individual major projects will influence the overall demand. Other factors that affect the demand for Finnvera’s export financing include good access to financing from other sources internationally and fiscal stimuli in other countries.

The coronavirus pandemic will continue to cause significant uncertainty regarding financial performance in 2022. If the economy and the business of Finnvera’s large risk subjects develop positively, thus limiting or reducing significant loss provisions and loss entries, Finnvera Group may turn a profit in 2022.

Further information:

Pauli Heikkilä, CEO, tel. +358 29 460 2400

Ulla Hagman, CFO, tel. +358 29 460 2458

Finnvera Group’s Report of the Board of Directors and Financial Statements 1 January–31 December 2021 (PDF)


NASDAQ Helsinki Ltd, London Stock Exchange, the principal media,

The Annual Report is available in Finnish and English at

From the beginning of 2022, Finnvera will release interim reports quarterly.


ESEF-report 2021 (in Finnish, zip)

Group Report of the Board of Directors and Financial Statements 2021 (PDF)

Finnvera Annual Review and Corporate Responsibility 2021 (PDF)

Corporate Governance and Steering System 2021 (PDF)

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