Kommuninvest full year 2013: Operating profit SEK 757.6 (249.1) million

Kommuninvest’s operating profit for 2013 was SEK 757.6 (249.1) million. Lending amounted to SEK 208.6 (201.0) billion and the capital adequacy ratio was 59.5 (30.4) percent.

Tomas Werngren, Kommuninvest’s President and CEO, comments the annual accounts:

– The operating profit reflects the work to strengthen the capital base ahead of the EU’s introduction of a leverage ratio requirement for credit institutes effective from 2018. This work goes better than expected, providing Kommuninvest with the right conditions to fulfil its vision: to be the world’s best organisation for local government financial administration.

– We continue to be the first choice for local government loan financing. However, the competitive situation is getting tougher, which has contributed to Kommuninvest’s lending growth becoming more subdued over the year.

– Our general cost level is low and declining. For 2013, the cost level was 7.0 basis points, measured in terms of administration costs as a share of the lending portfolio excluding the statutory Swedish stability fee. This can be compared with an average of 8.8 basis points for the period 2010 to 2012.

The Kommuninvest Cooperative Society grew with four (seven) new member municipalities during 2013: the municipalities of Uppsala, Tibro, Järfälla and Svalöv. By year-end, the Society had 278 (274) members, of which 270 (266) were municipalities and 8 (8) were county councils.

Summary of the year

• Balance sheet total SEK 277.5 (283.3) billion

• Lending SEK 208.6 (201.0) billion

• Net interest income SEK 969.5 (771.7) million

• Operating profit SEK 757.6 (249.1) million

• Operating profit, excluding the effect of unrealised market value changes SEK 740.0 (510.0) million

• Total capital base SEK 2,650.8 (1,732.6) million

• Capital adequacy ratio 59.5 (30.4) %

• Leverage ratio 0.96 (0.68) %

• Market share in percent of the local government sector’s total borrowing 44 (46) percent

 

For further information

Tomas Werngren, President and CEO, tel. +46 70 645 06 69

Maria Viimne, Deputy CEO, tel. +46 70 333 69 02

Björn Bergstrand, Head of Media Relations, tel. +46 70 886 94 76 alt. bjorn.bergstrand@kommuninvest.se

 

About Kommuninvest

Kommuninvest i Sverige AB is owned by Swedish municipalities and county councils with the purpose of supporting their financial operations through secure and cost-efficient financing, skills development and cooperation. With approximately SEK 210 billion in lending, Kommuninvest is the largest lender to Swedish local governments.