Kommuninvest i Sverige AB today publishes its Interim Report for 2023. For Kommuninvest, the economic trends during the first half of the year have been two parallel stories. While there have been positive tendencies in the world economy, with falling inflation and growth forecasts that look brighter than before, the economic conditions for the municipal sector have significantly deteriorated. Many municipalities and regions find it difficult to make the financial equation work. In this environment, Kommuninvest has delivered good stability and positive steps forward not least in the area of sustainability.
The operating profit for the first half of the year amounted to SEK 195.7 (–346.5) million. The positive result includes costs for the risk tax of SEK 162.9 (128.7) million. The operating income came in at SEK 365.8 (178.7) million.
Lending, in nominal terms, amounted on 2023-06-30 to SEK 495.2 (482.5) billion. This corresponded to a first half of the year growth of three per cent. Although the difficult economic situation is putting pressure on customers’ investment plans, there is fundamentally an extensive need for investment within the municipal sector.
Kommuninvest’s competitiveness was maintained. The estimate is that the market share now amounts to 60 (59) per cent.
Despite a period of bank turbulence in the spring, Kommuninvest’s funding was consistently stable. Long-term funding, with maturities longer than one year, in the first half of the year summed up at SEK 76.1 (86.3) billion. The green funding was successful. Three green issues, where two were carried out in EUR and one in SEK, were met by strong interest from investors.
Green Loans in the first halv of the year passed two important milestones: SEK 100 billion in Green Loans committed and 600 eligible investment projects. The share of Green loans in relation to total lending, on the basis of volumes disbursed, increased to 15.0 (14.0) per cent.
Regarding Social Sustainability Loans, the public housing company Botkyrkabyggen was in June granted a total of SEK 3.8 billion for a large-scale and long-term social program focused on the areas of Alby, Fittja and Norsborg. This resulted in a significant increase in the volume of committed loans. As of 2022-06-30, a total of 18 (16) investment projects had been granted loans with a combined volume of SEK 5.6 (1.7) billion.
All internal and external capital requirements were met by a wide margin. The total capital ratio as of 2023-06-30 was 481.9 (454.1) per cent. The leverage ratio was 9,2 (14,2) per cent.
– Kommuninvest is built to be able to stand firm ”in any weather”. Even in the complex situation that now prevails, the construction has proven to work excellently. Our stable and cost-efficient financing is of great importance for a municipal sector put under financial pressure. It is particularly gratifying that we have managed to make such good progress in the area of sustainability. On the green as well as on the social side, there is a clearly positive development, says Katarina Ljungqvist, CEO of Kommuninvest.
Comparative figures for the income statement refer to the previous year (1 January – 30 June 2022). Comparative figures for the balance sheet and for risk and capital-related data refer to 31 December 2022.
The Interim Report is available here.
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