Halfway into 2016 Eksportfinans’ operations are stable, the capital base is strong and the liquidity situation is good. Profit was positively affected by the sale of the company’s office property.
Net interest income was NOK 132 million for the first half-year of 2016, compared to NOK 224 million for the same period in 2015. The reduction was primarily due to the lower level of interest generating assets.
Profit, excluding unrealized gains and losses on financial instruments, amounted to NOK 171 million for the first six months in 2016, compared to NOK 114 million for the corresponding period in 2015. The result is affected by the sale of Eksportfinans’ office property in Oslo. This positive effect was partly offset by provisions made in connection with the judgment rendered by the court of arbitration in the dispute between the company and the Ministry of Trade, Industry and Fisheries regarding the 108 agreement.
Comprehensive income according to IFRS was negative NOK 104 million for the first half-year of 2016, compared to negative NOK 486 million for the first half-year of 2015. The negative figures were primarily due to the reversal of previously unrealized gains on Eksportfinans’ own debt. This effect has decreased in 2016 due to lower remaining volumes of previously unrealized gains.
Total assets amounted to NOK 41 billion at June 30, 2016, compared to NOK 65 billion at December 31, 2015. The reduction was in line with expectations and is due to scheduled repayments of debt.
The core capital ratio was 43.9 percent at June 30, 2016, compared to 36.5 percent at December 31, 2015. At the end of the second quarter 2016 the company had liquidity reserves totaling NOK 12 billion.
Facts about Eksportfinans ASA
Eksportfinans manages a solid portfolio of loans to the Norwegian export industry and foreign buyers of Norwegian capital goods. The loans are guaranteed by GIEK (The Norwegian Guarantee Institute for Export Credits) and/or banks. The company also manages a substantial portfolio of international securities. The business is funded through bonds and commercial paper issued in the international capital markets. Eksportfinans was established in 1962 and is owned by banks operating in Norway and the Ministry of Trade, Industry and Fisheries on behalf of the Norwegian government. Entering 2016 total assets amounted to approximately NOK 65 billion. The company is staffed by highly skilled individuals and is located in Dronning Maud’s gate (Vika) in central Oslo.
Some of the information herein constitutes "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended and Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These forward-looking statements rely on a number of assumptions concerning future events. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are outside of Eksportfinans' control, which may cause actual results to differ materially from any future results expressed or implied from the forward-looking statements. As a result, any forward-looking statements included herein should not be regarded as a representation that the plans, objectives, results or other actions discussed will be achieved. Please see the Company's Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission for a discussion of certain factors that may cause actual results, performance or events to be materially different from those referred to herein. Eksportfinans disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.