Interim Report 2020: Stable growth in turbulent times

Kommuninvest i Sverige AB today publishes its Interim Report for 2020. In a first half of the year which was marked by the Covid-19 pandemic, but where Kommuninvest showed significant stability, the strong growth that has characterized the operations for several years continued.

Kommuninvest’s lending, in nominal terms, as of 30 June 2020 amounted to SEK 438,1 (406,5) billion. This corresponded to a growth rate, on an annual basis, of 16 (9) per cent. The trend of growing investment and borrowing needs, which has been a long-time reality of municipalities and regions, was reinforced in March and April by a temporary surge in demand due to market turbulence in the first phase of the Covid-19 pandemic. Among other things, a number of Members with their own programmes then chose to transfer some of their borrowing operations to Kommuninvest.

In line with this, Kommuninvest estimates that the market share increased slightly. 58 (56) per cent of the local government sector’s total borrowing was as of 30 June 2020 financed via Kommuninvest.

An important part of the lending growth continues to happen in the area of sustainability. The share of Green loans in relation to total lending, on the basis of volumes disbursed, increased in this period by just over one percentage point to 11,2 (10,1) per cent.

The operating profit for the first half of the year amounted to SEK –159,6 (359,4) million. The negative outcome is mainly explained by unrealised changes in market value of SEK –405,6 (38,3) million. These primarily have to do with the fact that borrowing in USD has in relative terms become less costly than borrowing in SEK. Since Kommuninvest intends to hold its assets and liabilities to maturity, these values are not normally realized.

The operating profit for this period amounted to SEK 239,0 (308,6) million. For a couple of years now, Kommuninvest has had a pricing strategy which aims to trim down lending prices by reducing the margin between borrowing and lending prices. One consequence of this is that Kommuninvest now generally works at lower levels of profit than before.

Kommuninvest meets all internal and external capital requirements. The total capital ratio as of 30 June 2020 was 153,4 (126,8) per cent. The leverage ratio was 1,35 (1,58) percent. At the Annual General Meeting in April, Kommuninvest Cooperative Society adopted a bold plan for the implementation of a gradual build-up of capital. The capitalization period extends until 2024. The intention is that both internal and statutory capital requirements shall consistently be met by a wide margin.

– During this rather exceptional spring, it once again became clear what strength there is in Kommuninvest’s business model. Particularly in the first phase of the covid-19 pandemic, we acted as a safe haven. We were one of very few actors who consistently had good access to the credit market. We made sure that municipalities and regions got the loans they needed. At the same time, it should be made clear that the crisis is not yet over. Kommuninvest is ready and well prepared to face the tougher times that municipalities and regions now seem to have ahead of them, says Tomas Werngren, CEO of Kommuninvest.

Comparative figures for the income statement refer to the previous year (1 January – 30 June 2019). Comparative figures for the balance sheet and risk and capital-related data refer to 31 December 2019.

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Summary of the report




For further information

Tomas Werngren, CEO, tel: 070-645 06 69, e-mail:

Patrick Nimander, CFO, tel: 072-254 94 60, e-mail:

David Ljung, Head of Communications, tel: 073-068 45 45, e-mail: