Kommuninvest i Sverige AB today publishes its year-end report for 2021. In a pandemic year characterized by gradual economic recovery, Kommuninvest secured steady and sustainable growth in its lending.
The operating profit for 2021 was SEK 476.1 (228.0) million. It was enhanced by unrealized changes in market value of SEK 43.9 (–245.3) million. The operating income amounted to SEK 425.9 (462.2) million. The decrease in comparison with the previous year is linked to Kommuninvest’s strategy, adopted in 2018, of trimming down lending prices by reducing the margin between funding and lending prices.
Kommuninvest’s lending increased by 4 (9) per cent during 2021 to reach SEK 460.7 (442.8) billion at the end of the year. This was a lower growth rate than in previous years. The extensive government subsidies added during the pandemic created, in combination with the rapid economic recovery, a situation where many municipalities and regions showed strong results and dampened borrowing needs.
The market share remained unchanged. Around 58 (58) per cent of the total borrowing of the local government sector was at the end of 2021 financed via Kommuninvest.
The green financing continued to grow. At year’s end, a total of SEK 83.5 (74.7) billion in Green loans had been approved, linked to 513 (431) projects and 181 (167) municipalities and regions. The share of Green loans in relation to total lending, on the basis of volumes disbursed, increased during the year by just over a percentage point to 13.1 (12.0) per cent.
Following a successful pilot phase, Social Sustainability Loans were launched to all members in March. This innovative product was made for municipalities and regions, including their companies, that aim to strengthen and make visible their efforts within social sustainability. At the end of the year, seven customers, including the five pilot customers, had been granted loans for a total of SEK 614 million.
Kommuninvest continued to live up to all internal and external capital requirements. The total capital ratio at year’s end was 397.1 (302.5) per cent. The leverage ratio was 15.36 (10.60) per cent.
Throughout the year, Kommuninvest put a lot of effort into advocacy, analysis and preparatory work linked to the so-called risk tax for banks and other credit institutions that was introduced on 1 January 2022. Kommuninvest is fully targeted by the tax during 2022. The Riksdag has in a declaration stated that Kommuninvest shall thereafter be exempted.
– I am glad to conclude that we during a relatively challenging year managed to push forward in developing our operations. Given the significant strength of the economy of the municipal sector, our ledning continued to show stable growth – but at a lower pace than before. We made great progress within sustainability, in particular by launching our new Social Sustainability Loans. Extensive preparations, including with a focus on forward-looking efficiencies, were carried out in order to be able to handle the new risk tax. All in all, we are now well equipped to meet the challenges of the future, says Tomas Werngren, CEO of Kommuninvest.
The comparative figures in brackets above refer to 2020 or the turn of the year 2020/2021.
The report: Kommuninvest Year-end report 2021
For further information
Tomas Werngren
CEO
Tel: 070-645 06 69
E-mail: tomas.werngren@kommuninvest.se
Patrick Nimander
CFO
Tel: 072-254 94 60
E-mail: patrick.nimander@kommuninvest.se
David Ljung
Head of Communications
Tel: 073-068 45 45
E-mail: david.ljung@kommuninvest.se
