Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document and Entity Information | |
Entity Registrant Name | SWEDISH EXPORT CREDIT CORP /SWED/ |
Entity Central Index Key | 352,960 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2018 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 3,990,000 |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | FY |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - SEK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Consolidated Statement of Comprehensive Income | ||||
Interest income calculated using effective interest method | kr 4,390 | kr 3,276 | kr 2,610 | |
Other interest income | 763 | 620 | 578 | |
Interest expenses | (3,711) | (2,213) | (1,441) | |
Net interest income | 1,442 | 1,683 | 1,747 | |
Net fee and commission expense | (32) | (28) | (29) | |
Net results of financial transactions | 19 | (102) | (110) | |
Other operating income | (2) | |||
Total operating income | 1,427 | 1,553 | 1,608 | |
Personnel expenses | (311) | (320) | (308) | |
Other administrative expenses | (231) | (232) | (236) | |
Depreciation and impairment of non-financial assets | (40) | (45) | (46) | |
Total operating expenses | (582) | (597) | (590) | |
Operating profit before credit losses | 845 | 956 | 1,018 | |
Net credit losses | 51 | (16) | ||
Net credit losses for IFRS 9 | 7 | |||
Operating profit | 852 | 1,007 | 1,002 | |
Tax expenses | (204) | (235) | (222) | |
Net profit | [1] | 648 | 772 | 780 |
Items to be reclassified to profit or loss | ||||
Available-for-sale securities | [2] | (33) | 46 | |
Derivatives in cash-flow hedges | [2] | (25) | (91) | (169) |
Tax on items to be reclassified to profit or loss | 6 | 27 | 27 | |
Net items to be reclassified to profit or loss | (19) | (97) | (96) | |
Items not to be reclassified to profit or loss | ||||
Own credit risk | 374 | |||
Revaluation of defined benefit plans | (48) | (4) | (26) | |
Tax on items not to be reclassified to profit or loss | (72) | 1 | 6 | |
Net items not to be reclassified to profit or loss | 254 | (3) | (20) | |
Total other comprehensive income | 235 | (100) | (116) | |
Total comprehensive income | [1] | kr 883 | kr 672 | kr 664 |
Basic earnings per share (in SEK per share) | [3] | kr 162 | kr 193 | kr 195 |
Diluted earnings per share (in SEK per share) | [3] | kr 162 | kr 193 | kr 195 |
[1] | The entire profit is attributable to the shareholder of the Parent Company. | |||
[2] | See the Consolidated Statement of Changes in Equity | |||
[3] | The average number of shares in 2018 amounts to 3,990,000 (2017: 3,990,000; 2016: 3,990,000) |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Consolidated Statement of Comprehensive Income | |||
Weighted average number of shares (in shares) | 3,990,000 | 3,990,000 | 3,990,000 |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets | |||
Cash and cash equivalents | [1] | kr 2,416 | kr 1,231 |
Treasuries/government bonds | 11,117 | 4,382 | |
Other interest-bearing securities except loans | 48,665 | 39,807 | |
Loans in the form of interest-bearing securities | 36,781 | 41,125 | |
Loans to credit institutions | 27,725 | 23,198 | |
Loans to the public | 161,094 | 141,111 | |
Derivatives | 6,529 | 7,803 | |
Tangible and intangible assets | 69 | 88 | |
Other assets | 4,980 | 3,556 | |
Prepaid expenses and accrued revenues | 2,657 | 2,091 | |
Total assets | 302,033 | 264,392 | |
Liabilities and equity | |||
Borrowing from credit institutions | 2,247 | 2,317 | |
Debt securities issued | 255,600 | 222,516 | |
Derivatives | 21,934 | 16,480 | |
Other liabilities | 1,069 | 826 | |
Accrued expenses and prepaid revenues | 2,583 | 2,063 | |
Deferred tax liabilities | 276 | 531 | |
Provisions | 85 | 45 | |
Subordinated liabilities | 2,040 | ||
Total liabilities | 283,794 | 246,818 | |
Share capital | 3,990 | 3,990 | |
Reserves | (153) | 30 | |
Retained earnings | 14,402 | 13,554 | |
Total equity | [2],[3] | 18,239 | 17,574 |
Total liabilities and equity | kr 302,033 | kr 264,392 | |
[1] | Cash and cash equivalents include, in this context, cash at banks that can be immediately converted into cash and short-term deposits for which the time to maturity does not exceed three months from trade date. See Note 11. | ||
[2] | See Note 23. | ||
[3] | The entire equity is attributable to the shareholder of the Parent Company. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - SEK (kr) kr in Millions | Share capital | Hedge reserve | Fair value reserve | Own Credit risk | Defined benefit plans | Retained earnings | Total | ||
Balance at the beginning of the year at Dec. 31, 2015 | kr 3,990 | kr 228 | kr (1) | kr 19 | kr 12,592 | kr 16,828 | |||
Net profit for the year | 780 | 780 | [1] | ||||||
Items to be reclassified to profit or loss | |||||||||
Available-for-sale securities | 46 | 46 | [2] | ||||||
Derivatives in cash-flow hedges | (169) | (169) | [2] | ||||||
Tax on items to be reclassified to profit or loss | 37 | (10) | 27 | ||||||
Items not to be reclassified to profit or loss | |||||||||
Revaluation of defined benefit plans | (26) | (26) | |||||||
Tax on items not to be reclassified to profit or loss | 6 | 6 | |||||||
Total other comprehensive income | (132) | 36 | (20) | (116) | |||||
Total comprehensive income | (132) | 36 | (20) | 780 | 664 | [1] | |||
Dividend | (356) | (356) | |||||||
Balance at the end of the year at Dec. 31, 2016 | [3],[4] | 3,990 | 96 | 35 | (1) | 13,016 | 17,136 | ||
Net profit for the year | 772 | 772 | [1] | ||||||
Items to be reclassified to profit or loss | |||||||||
Available-for-sale securities | (33) | (33) | [2] | ||||||
Derivatives in cash-flow hedges | (91) | (91) | [2] | ||||||
Tax on items to be reclassified to profit or loss | 20 | 7 | 27 | ||||||
Items not to be reclassified to profit or loss | |||||||||
Revaluation of defined benefit plans | (4) | (4) | |||||||
Tax on items not to be reclassified to profit or loss | 1 | 1 | |||||||
Total other comprehensive income | (71) | (26) | (3) | (100) | |||||
Total comprehensive income | (71) | (26) | (3) | 772 | 672 | [1] | |||
Dividend | (234) | (234) | |||||||
Balance at the end of the year at Dec. 31, 2017 | [3],[4] | 3,990 | 25 | 9 | (4) | 13,554 | 17,574 | ||
Effects of the implementation of IFRS 9 | kr (9) | kr (409) | 432 | 14 | |||||
Adjusted opening balance of equity | 3,990 | 25 | (409) | (4) | 13,986 | 17,588 | |||
Net profit for the year | 648 | 648 | [1] | ||||||
Items to be reclassified to profit or loss | |||||||||
Derivatives in cash-flow hedges | (25) | (25) | [2] | ||||||
Tax on items to be reclassified to profit or loss | 6 | 6 | |||||||
Items not to be reclassified to profit or loss | |||||||||
Own credit risk | 374 | 374 | |||||||
Revaluation of defined benefit plans | (48) | (48) | |||||||
Tax on items not to be reclassified to profit or loss | (82) | 10 | (72) | ||||||
Total other comprehensive income | (19) | 292 | (38) | 235 | |||||
Total comprehensive income | (19) | 292 | (38) | 648 | 883 | [1] | |||
Dividend | (232) | (232) | |||||||
Balance at the end of the year at Dec. 31, 2018 | [3],[4] | kr 3,990 | kr 6 | kr (117) | kr (42) | kr 14,402 | kr 18,239 | ||
[1] | The entire profit is attributable to the shareholder of the Parent Company. | ||||||||
[2] | See the Consolidated Statement of Changes in Equity | ||||||||
[3] | See Note 23. | ||||||||
[4] | The entire equity is attributable to the shareholder of the Parent Company. |
Statement of Cash Flows in the
Statement of Cash Flows in the Consolidated Group - SEK (kr) kr in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Operating activities | ||||||
Operating profit | kr 852 | kr 1,007 | kr 1,002 | |||
Adjustments for non-cash items in operating profit | ||||||
Provision for credit losses, net | (7) | (51) | 16 | |||
Depreciation and impairment of non-financial assets | 40 | 45 | 46 | |||
Exchange-rate differences | 5 | 0 | 0 | |||
Unrealized changes in fair value | (40) | 110 | 195 | |||
Other | 16 | 170 | 30 | |||
Total adjustments for non-cash items in operating profit | 14 | 274 | 287 | |||
Income tax paid | (366) | (365) | (276) | |||
Increase (-)/decrease (+) in lending | (9,016) | 3,394 | 10,864 | |||
Increase (-)/decrease (+) in bonds and securities held | (13,782) | 6,738 | (9,041) | |||
Other changes in assets and liabilities - net | (1,347) | (1,598) | (54) | |||
Cash flow from operating activities | (23,645) | 9,450 | 2,782 | |||
Investing activities | ||||||
Investments | (21) | (10) | (39) | |||
Cash flow from investing activities | (21) | (10) | (39) | |||
Financing activities | ||||||
Senior debt | 92,045 | 115,040 | 87,989 | |||
Repayments of debt | (59,390) | (86,266) | (70,829) | |||
Repurchase and early redemption of own long-term debt | (7,553) | (38,693) | (14,523) | |||
Change in subordinated debt | (2,322) | |||||
Derivatives | 1,830 | (4,931) | (182) | |||
Dividend paid | (232) | (234) | (356) | |||
Cash flow from financing activities | 24,378 | (15,084) | 2,099 | |||
Net cash flow for the period | 712 | (5,644) | 4,842 | |||
Cash and cash equivalents at beginning of the year | 1,231 | [1] | 7,054 | [1] | 2,258 | |
Exchange-rate differences on cash and cash equivalents | 473 | (179) | (46) | |||
Cash and cash equivalents at end of the year | [1] | 2,416 | 1,231 | 7,054 | ||
Cash and cash equivalents of which cash at banks | 374 | 600 | 916 | |||
Cash and cash equivalents of which cash equivalents | 2,042 | 631 | 6,138 | |||
Interest payments received and expenses paid | ||||||
Interest payments received | 4,586 | 3,965 | 2,975 | |||
Interest expenses paid | kr 3,192 | kr 2,139 | kr 1,229 | |||
[1] | Cash and cash equivalents include, in this context, cash at banks that can be immediately converted into cash and short-term deposits for which the time to maturity does not exceed three months from trade date. See Note 11. |
Significant accounting policies
Significant accounting policies | 12 Months Ended |
Dec. 31, 2018 | |
Significant accounting policies | |
Significant accounting policies | Note 1. Significant accounting policies The accounting policies set out below have been applied consistently to all periods presented in these consolidated Financial Statements, unless otherwise stated. Table of contents: (a) Reporting entity (b) Basis of presentation (c) Changes to accounting policies and presentation (d) Basis of consolidation (e) Segment reporting (f) Recognition of operating income (g) Foreign currency transactions (h) Financial instruments (i) Tangible assets (j) Intangible assets (k) Employee benefits (l) Equity (m) Taxes (n) Earnings per share (o) Statement of cash flows (p) Critical accounting policies, assumptions and estimates (q) New standards and amendments to standards and interpretations not yet adopted and considered relevant to SEK (a) Reporting entity AB Svensk Exportkredit (“SEK” or “the Parent Company”) is domiciled in Sweden. The address of the Company’s registered office is Klarabergsviadukten 61–63, P.O. Box 194, SE-101 23 Stockholm, Sweden. The Consolidated Group as of December 31, 2018 consists of SEK and its wholly owned, non-active subsidiary, SEKETT AB. These are jointly referred to as the “Consolidated Group” or the “Group”. During 2018,the winding-down of the subsidiary Venantius AB, including the latter’s wholly owned subsidiary VF Finans AB, was completed. (b) Basis of presentation (i) Statement of compliance The consolidated accounts have been compiled in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The IFRS standards applied by SEK are all endorsed by the European Union (EU). Additional standards, consistent with IFRS, are imposed by the Swedish Annual Accounts Act for Credit Institutions and Securities Companies (1995:1559) (ÅRKL), Recommendation RFR 1, Supplementary Accounting Principles for Groups, issued by the Swedish Financial Reporting Board (RFR), and the accounting regulations of the Swedish FSA (FFFS 2008:25), all of which have been complied with in preparing the Consolidated Financial Statements, of which these notes form a part. SEK also follows the Swedish Government’s general guidelines regarding external reporting in accordance with the State’s ownership policy and guidelines for state-owned companies. The accounting policies of the Parent Company match those used in the preparation of the Consolidated Financial Statements, except as stated in Note 1, section (q) below. The Parent Company’s results and total assets represent most of the results and total assets of the Consolidated Group. The information in these notes relates to both the Consolidated Group and the Parent Company, unless otherwise are stated. Certain additional disclosures required by applicable regulations or legislation are included in the notes, i.e Note 30 to the Consolidated Financial Statements. Such information is deemed to be incorporated herein by reference. The Consolidated Financial Statements and the Parent Company’s annual report were approved for issuance by SEK’s Board of Directors on February 21, 2019. The Group’s Statements of Comprehensive Income and Financial Position and the Parent Company’s income statement and balance sheet will be subject to approval by SEK’s shareholder at the Annual General Meeting to be held on March 28, 2019. (ii) Basis of measurement The Consolidated Financial Statements have been prepared on an amortized cost basis, subject to the following exceptions: all derivatives are measured at fair value, financial instruments — measured at fair value through profit or loss — are measured at fair value, available-for-sale financial assets, are measured at fair value, (historical values according to IAS 39), and when applying hedge accounting at fair value, amortized cost is adjusted in the Consolidated Financial Statements based on the underlying hedged item to reflect changes in fair value with regard to the hedged risk. (iii) Functional and presentation currency SEK has determined that the Swedish krona (Skr) is the Parent Company’s functional and presentation currency under IFRS. Significant factors are that SEK’s equity is denominated in Swedish kronor, its performance is evaluated based on a result expressed in Swedish kronor, and that a large portion of SEK’s expenses, especially personnel expenses, other expenses and taxes, are denominated in Swedish kronor. SEK manages its foreign currency risk by hedging exposures between the Swedish kronor and other currencies. (iv) Going concern SEK’s Board of Directors and management have made an assessment of SEK’s ability to continue as a going concern and are satisfied that SEK has the resources to continue operations for the foreseeable future. The Board of Directors and management are not aware of any material uncertainties that could cast significant doubt upon SEK’s ability to continue as a going concern. Therefore, the Financial Statements continue to be prepared on a going-concern basis. (c) Changes to accounting policies and presentation In all significant respects, the accounting policies, bases of calculation and presentation are unchanged compared with the 2017 Annual Report, except for the application of the new and amended standards from IASB that entered into force beginning January 1, 2018 and the offset of derivative assets and derivative liabilities in relation to central clearing counterparties. In addition to the above changes, certain amounts reported in prior periods have been restated to conform to the current presentation. SEK analyzes and assesses the application and impact of changes in financial reporting standards that are applied within the Group. Changes that have not been named are either not applicable to SEK or have been adjudged to not have a material impact on SEK’s financial reporting. (i) IFRS 9 Financial instrument As of January 1, 2018, SEK began applying IFRS 9 Financial Instruments, which replaced the previous regulatory framework IAS 39 Financial Instruments: Recognition and Measurement. The impact of the transition to IFRS 9 on SEK is summarized as follows: As of January 1, 2018, SEK assessed its liquidity investments, which were previously classified as available-for-sale assets. The conclusion of the assessment was that liquidity investments are included in a portfolio where the business model entails measurement at fair value and, accordingly, they are recognized at fair value through profit or loss (FVTPL). Liquidity investments that were previously classified at fair value pursuant to the fair value option (FVO) are also classified at FVTPL. Certain fixed-rate liquidity investments were previously subject to hedge accounting and, as of January 1, 2018, these hedge accounting relationships have been terminated since liquidity investments are now measured at FVTPL. SEK’s lending meets the conditions for the solely payments of principal and interest (SPPI) tests and uses a business model that aims to collect contractual cash flows, which means SEK’s lending is measured at amortized cost. Gains and losses that arise from changes in SEK’s own credit risk on liabilities designated at fair value are recognized in the reserve for own credit risk under Other comprehensive income and are not reclassified to profit or loss in the Financial Statements of the Group. In the Financial Statements of the Parent Company, these gains and losses continue to be recognized under Net results of financial transactions in Net profit, consistent with past practice. The principle applied for the impairment of exposures has changed from an approach based on incurred credit loss events under IAS 39 to an approach based on expected credit losses (ECL). IFRS 9 requires that all assets measured at amortized cost, including credit commitments and financial guarantees, are to be tested for any impairment, which differs from IAS 39, where collective provisions are not made for off-balance-sheet items or available-for-sale financial assets. Loss allowances (ECL) are expected to mean lower initial impairment amounts but higher volatility over time. As of January 1, 2018, the transition to IFRS 9 had a total impact on the Group’s equity of Skr 14 million. IFRS 9 had no material impact on the Group’s capital adequacy and large exposure ratios. SEK is not restating comparative periods. Comparative information for 2017 is reported pursuant to IAS 39 and is not comparable with the information presented for 2018 under IFRS 9. Differences arising from the introduction of IFRS 9 are recognized directly in retained earnings as of January 1, 2018. Changes in the classification and measurement of financial assets and liabilities. While the existing categories for financial assets are being removed, the three valuation approaches are being kept: fair value through profit or loss (FVTPL), fair value through other comprehensive income (FVOCI), and amortized cost. To determine what to recognize and how to do so, a new evaluation model is being introduced, based on the business model, which is assessed at portfolio level, and type of cash flows, which is assessed at instrument level. The option remains on initial recognition of a transaction, to recognize financial instruments at FVTPL in cases where it eliminates or significantly reduces inconsistencies in valuations and accounting (FVO). The rules under IAS 39 are essentially transferred for the recognition of financial liabilities, with the exception of gains and losses arising from changes in SEK’s own credit risk on liabilities classified in accordance with FVO. Under IFRS 9, these value changes are recognized in other comprehensive income. Recognition of embedded derivatives in financial liabilities remains unchanged. From January 1, 2018, SEK is classifying financial assets on the basis of the business model and type of cash flow (the asset’s terms and conditions) as either: · Financial assets at amortized cost (AMC) or · Financial assets at fair value through profit or loss (FVTPL) Financial liabilities are measured at amortized cost or, if the liability is a derivative or when FVO is used, at FVTPL. The previous category Other financial liabilities has changed its name to Financial liabilities measured at amortized cost (AMC), in other words, a financial liability is classified either as: · Financial liabilities at amortized cost (AMC) or · Financial liabilities measured at fair value through profit or loss (FVTPL) From January 1, 2018, SEK is not reclassifying financial assets, apart from exceptional cases that would change SEK’s fundamental business model. Changes in the impairment of financial assets. IFRS 9 entails a general change in the approach to the recognition of impairment of financial assets, since the principle applied for the impairment of exposures has changed from the approach based on incurred credit loss events under IAS 39 to instead be based on expected credit losses. SEK’s calculation of the collectively-assessed credits reserve under IAS 39 was also based on a method using expected credit losses. IFRS 9 states that all assets measured at amortized cost, including credit commitments and financial guarantees, are to be tested for any impairment need, which differs from IAS 39, where collective provisions are not made for off-balance- sheet items or available-for-sale financial assets. Changes in hedge accounting. The new rules on hedge accounting allow entities to better reflect risk management activities in financial reporting. IFRS 9 opens opportunities to improve and simplify hedge accounting, which primarily impacts the administrative process for hedge accounting at SEK. The standard expands possibilities for hedging the risk components of non-financial items and allows the inclusion of more types of instruments in a hedge relationship. Moreover, the previous quantitative requirement of 80–125 percent in effect is removed. The three types of hedge relationships set out in IAS 39 (fair-value hedges, cash-flow hedges and hedges of net investment in a foreign operation) are unchanged in IFRS 9. The accounting for each type of hedge is also the same as in IAS 39. SEK only uses fair-value hedges. A hedging relationship qualifies for hedge accounting only if all of the following criteria are met: the hedging relationship consists only of eligible hedging instruments and eligible hedged items; at its inception there is formal designation and documentation of the hedging relationship and the entity’s risk management objective and strategy for undertaking the hedge; and the relationship meets all of the hedge effectiveness requirements. (ii) IFRS 15 Revenue from Contracts with Customers As of January 1, 2018, SEK also applied the new standard IFRS 15, which describes a comprehensive model for the recognition of revenue from contracts with customers and which replaces current IFRS standards and interpretations for revenue recognition, such as IAS 18 Revenue. The standard is a five-step model, including accounting and measurement requirements, as well as new disclosures. The standard does not apply to financial instruments or leasing contracts. The major part of the revenues classified as commission earned constitutes revenue from contracts with customers according to IFRS 15. SEK adopted the standard with retroactive application, and comparative figures are not recalculated. The adoption of IFRS 15 has not resulted in any changed accounting principles, and therefore does not affect equity. The standard will not have any material impact on SEK’s Financial Statements, capital adequacy or large exposures. (iii) IAS 1.82 Interest income calculated using the effective interest method As of December 31, 2018, SEK presented interest income calculated using the effective interest method separately in the Consolidated Statement of Comprehensive Income and Parent Company Income Statement due to changes in IAS 1.82. Comparatives are recalculated. (iv) Changes in Swedish regulations Amendments have been made in the Swedish Annual Accounts Act for Credit Institutions and Securities Companies (1995:1559). These amendments were implemented January 1, 2018 but have not had any significant impact on SEK’s Financial Statements. In addition, the Swedish Financial Supervisory Authority has amended the accounting regulation FFFS 2008:25 by issuing FFFS 2017:18 and the Swedish Financial Reporting Board has amended the accounting recommendation for groups by issuing “RFR 1 Supplementary Accounting Rules for Groups – January 2018”. SEK implemented those amendments on January 1, 2018 but they have not had any significant impact on SEK’s Financial Statements. (v) Offset of derivative assets and derivative liabilities As of December 31, 2018 derivative assets and derivative liabilities in relation to central clearing counterparties are offset in the Consolidated Statement of Financial Position and the Parent Company Balance sheet. Comparatives are recalculated. (vi) Transition information The following tables illustrate the effect of implementing IFRS 9 in the Statement of Financial Position and retained earnings, including the effect of replacing IAS 39’s impairment model with an ECL model pursuant to IFRS 9. The following table summarizes the effect on the classification and measurement of SEK’s financial assets and liabilities as of January 1, 2018: Skr mn Financial assets Measurement category under IAS 39 Carrying amount Reclassification ECL Carrying amount Measurement Cash and cash equivalents Loans and accounts receivable 1,231 — 0 1,231 AMC Treasuries/government bonds(1) Available-for-sale assets 4,382 4,382 — 4,382 FVTPL Other interest-bearing securities except loans(1) Available-for-sale assets 39,694 39,694 — 39,694 FVTPL Assets at fair value through profit or loss (FVO) 113 113 — 113 FVTPL Loans in the form of interest-bearing securities Loans and accounts receivable 41,125 — -17 41,108 AMC Loans to credit institutions Loans and accounts receivable 23,198 — -2 23,196 AMC Loans to the public Loans and accounts receivable 141,111 — 40 141,151 AMC Derivatives(2) Assets at fair value through profit or loss 7,803 — — 7,803 FVTPL Total financial assets 258,657 44,189 21 258,678 Borrowings from credit institutions Other financial liabilities 2,317 — — 2,317 AMC Borrowings from credit institutions Other financial liabilities 0 — — 0 AMC Debt securities issued Financial liabilities at fair value through profit or loss (FVO) 63,421 — — 63,421 FVTPL Other financial liabilities 159,095 — — 159,095 AMC Derivatives Financial liabilities at fair value through profit or loss 16,480 — — 16,480 FVTPL Subordinated liabilities Other financial liabilities 2,040 — — 2,040 AMC Provisions(2) 45 — 3 48 Total financial liabilities 243,398 — 3 243,401 (1) As of January 1, 2018, SEK has made an assessment of the liquidity investments that were previously classified as available-for-sale assets. The conclusion was that these are included in a portfolio where the business model entails measurement at fair value and, accordingly, they are recognized at fair value through profit or loss (FVTPL). Those liquidity investments that were previously classified at fair value pursuant to the fair-value option are also classified at FVTPL due to the portfolio’s business model. Certain fixed-rate liquidity investments were already subject to hedge accounting and, from January 1, 2018, these hedge accounting relationships have been terminated since liquidity investments are now measured at FVTPL. (2) Accumulated expected credit losses for off-balance sheet items are reported under provisions in the Statement of Financial Position. The following table illustrates the effect of IFRS on reserves and retained earnings: Reserves and Skr mn retained earnings Reserve for changes in own credit risk Closing balance under IAS 39 (December 31, 2017) — The impact of transferring value changes due to changes in credit risk to the Reserve for changes in own credit risk -524 Tax 115 Opening balance under IFRS 9 (January 1, 2018) -409 Fair-value reserve Closing balance under IAS 39 (December 31, 2017) 9 Reclassification of instruments from AFS to FVTPL -12 Tax 3 — Retained earnings Closing balance under IAS 39 (December 31, 2017) 13,554 The impact of transferring value changes due to changes in credit risk to the Reserve for changes in own credit risk 409 Reclassification of instruments from AFS to FVTPL 9 Effect of IFRS 9 – ECL 18 Tax -4 Opening balance under IFRS 9 (January 1, 2018) 13,986 Total changes in equity on introduction of IFRS 9 14 The following table is a reconciliation of the closing balance for accumulated impairments under IAS 39 and the opening balance for accumulated impairments under IFRS 9. Impairment reserve under ECL IFRS 9 IAS 39 as per as per Skr mn 31 December 2017 Revaluation 1 January 2018 Loans and receivables under IAS 39/financial assets at amortized cost under IFRS 9 155 -21 134 Available-for-sale assets under IAS 39/FVTPL pursuant to IFRS 9 — — — Total 155 -21 134 Collateral provided and contingent liabilities — 3 3 Total 155 -18 137 (d) Basis of consolidation The Consolidated Financial Statements encompass the Parent Company and all subsidiaries, meaning companies over which the Parent Company has control and that are impacted by the Company’s results. The Consolidated Financial Statements have been prepared using the purchase method. The Financial Statements of the subsidiary are included in the Consolidated Financial Statements from the date that control commences until the date that control ceases. The accounting policies of subsidiary are consistent with Group policies. Intra-group transactions and balances, and any unrealized gains and losses arising from intra-group transactions, are eliminated in preparing the Consolidated Financial Statements. Unless otherwise stated or when it is clear from the context, the information in these notes relates to the Consolidated Group and the Parent Company. Consolidation of SEK pursuant to the supervisory regulations does differ from the consolidation made in the Consolidated Financial Statements for 2018, as SEKETT AB is not a financial company and no consolidation of SEK pursuant to the supervisory regulation was made. Since no subsidiary is an institute pursuant to the CRR definition, no subsidiary is subject to the supervisory regulations on an individual basis. No current or anticipated material restrictions to prompt transfer of own funds or repayment of liabilities among the parent or its subsidiary have been identified. (e) Segment reporting Segments are identified based on internal reporting to the CEO who serves as the chief operating decision maker. SEK has one segment, lending, based partly on the Company’s assignment from the owner, which is to ensure access to financial solutions for the Swedish export industry on commercial and sustainable terms, and partly on how governance and earnings monitoring of the business are conducted. Accordingly, no segment reporting has been prepared. Disclosures regarding the geographic breakdown and revenue per product group are presented in Note 2. (f) Recognition of operating income (i) Net interest income Interest revenue and interest expense related to all financial assets and liabilities, regardless of classification, are recognized in net interest income. Interest revenue and interest expense are recognized on a gross basis, with the exception of interest revenue and interest expenses related to derivatives, which are reported on a net basis. Interest for derivatives used to hedge borrowing is recognized as interest expense and interest on all derivatives used to hedge assets is recognized as interest revenue, regardless of whether the contracts’ net interest is positive or negative. This reflects the real interest expense of borrowing after taking economic hedges into account. Negative interest rates on assets are recognized as interest expense and negative interest rates on liabilities are recognized as interest revenue. Interest income calculated using the effective interest method presented in SEK’s Financial Statements applies only to those assets that are subsequently measured at amortized cost and the interest for hedging instruments related to those assets as the effective interest method is a measurement technique whose purpose is to calculate amortized cost and allocate interest revenue over the relevant time period. This interest income and corresponding interest expense are calculated and recognized based on the effective interest rate method or based on a method that results in interest revenue or interest expense that is a reasonable approximation of the result that would be obtained using the effective interest method as the basis for the calculation. The effective interest rate is regarded as an integral part of the effective interest rate of a financial instrument (usually fees received as compensation for risk). The effective interest rate is equivalent to the rate used to discount contractual future cash flows to the carrying amount of the financial asset or liability. The item Other interest income covers interest income of financial assets at fair value through profit or loss and the administrative remuneration for the CIRR-system, as defined below. In addition to interest revenue and interest expense, net interest income, where these are recognized as interest expense, includes the resolution fee (formerly called the stability fund fee) and guarantee commissions that are comparable to interest. Pursuant to the Company’s assignment as stated in its owner instruction issued by the Swedish government, SEK administers credit granting in the Swedish system for officially supported export credits (CIRR-system). SEK receives compensation from the Swedish government in the form of an administration fee, which is calculated based on the principal amount outstanding. SEK has determined that the CIRR-system should be considered an assignment whereby SEK acts as an agent on behalf of the Swedish government, rather than being the principal in individual transactions. Accordingly, interest revenue, interest expense and other costs pertaining to CIRR-system assets and liabilities are not recognized in SEK’s Statement of Comprehensive Income. The administrative compensation received by SEK from the Swedish government is recognized as part of interest income in SEK’s Statement of Comprehensive Income since the commission received in compensation is equivalent to interest. Any income for SEK that arises from its credit arranger role is recognized in SEK’s Statement of Comprehensive Income under net interest income. All assets and liabilities related to the CIRR-system are respectively included in the Consolidated Statement of Financial Position and in the Parent Company’s balance sheet since SEK bears the credit risk for the lending and acts as the counterparty for lending and borrowing. Unrealized revaluation effects on derivatives related to the CIRR-system are recognized net under other assets. (ii) Net fee and commission expense Commissions earned and commissions incurred are recognized as net fee and commission expense in SEK’s Statement of Comprehensive Income. The gross amounts of commissions earned and commissions incurred are disclosed in the notes to the Financial Statements. The major part of the revenues classified as commission earned constitutes revenue from contracts with customers according to IFRS 15. The recognition of commissions earned depends on the purpose for which the fee is charged. Fees are either recognized as revenue when services are performed or accrued over the period of a specific business transaction. Lending fees that are not part of the effective interest of a financial instrument are recognised at a point of time, such as when the transaction has been performed. Commissions incurred are transaction-based, and are recognized in the period in which the services are received. Guarantee commissions that are comparable to interest and fees that comprise integrated components of financial instruments, and therefore included in the effective interest rate, are not recognized as commissions and are instead included under net interest income. (iii) Net results of financial transactions Net results of financial transactions include realized gains and losses related to all financial instruments and unrealized gains and losses on all financial instruments measured at fair value, except for the types of financial instruments for which the change is to be recognized in other comprehensive income. Gains and losses include gains and losses related to currency exchange effects, interest-rate changes, changes in basis-spreads and changes in the credit rating of the counterparty to the financial contract. The item also includes the hedge ineffectiveness, i.e. market value changes attributable to hedged risks and derivatives in fair-value hedges. Realized gains and losses from financial instruments measured at amortized cost, such as interest rate compensation received and realized gains/losses from the repurchase of issued own debt, are recognized as they arise directly under net results of financial transactions. (g) Foreign currency transactions Monetary assets and liabilities in foreign currencies have been translated into the functional currency (Swedish krona) at the exchange rates applicable on the last day of each reporting period. Revenues and costs in foreign currencies are translated into Swedish kronor at the exchange rate prevailing on the dates that they arise. Any changes in the exchange rates between the relevant currencies and the Swedish krona relating to the period between the dates that they arise and the date of settlement are recognized as currency exchange effects. Currency exchange effects on the nominal amounts of financial assets and liabilities measured at fair value are recognized as currency exchange effects, although the currency exchange effect on the change in fair value that arises due to other components is not separated. Currency exchange effects are included as a component of net results of financial transactions. (h) Financial instruments (i) Recognition and derecognition in the Statement of Financial Position When recognizing financial instruments, trade date accounting is applied for the recognition and derecognition of securities bought, securities issued and derivatives. Other financial instruments are recognized in the Statement of Financial Position and derecognized from this on the relevant settlement date. The difference between the carrying amount of a financial liability or an asset (or part of a financial liability or an asset) that is extinguished or transferred to another party and the consideration paid is recognized in the Statement of Comprehensive Income under net results of financial transactions. A financial asset or liability is recognized in the Statement of Financial Position only when SEK becomes a party to the contractual provisions of the instrument. A financial asset is derecognized from the Statement of Financial Position when the contractual rights to receive the cash flows from the asset cease or when the asset is transferred and the transfer qualifies for derecognition. A financial liability (or part of a financial liability) is derecognized from the Statement of Financial Position only when it is extinguished, such as when the obligation specified in the contract is discharged, canceled or expires. In the case of renegotiated financial assets, such as lending, the asset is derecognized from the Statement of Financial Position when the terms of the loan are deemed to be substantially different. The terms are deemed to be substantially different when the present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective interest rate, differs by not less than 10 percent from the discounted present value of the remaining cash flows for the original debt instrument. A change of currency or counterparty are deemed substantially different terms. Should the renegotiated loan entail terms that are substantially different, it is recognized as a new loan. (ii) Measurement on initial recognition When financial instruments are initially recognized, they are measured at fair value plus, in the case of financial assets or financial liabilities not carried at fair value through profit or loss, any transaction costs that are directly attributable to the acquisition or issuance of the financial asset or financial liability. (iii) Offsetting Financial assets and liabilities are offset and presented in the Statement of Financial Position when the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. Derivative assets and derivatives liabilities in relation to central clearing counterparties are offset in the Consolidated Statement of Financial Position, but cash collateral received or paid is accounted for separately as paid or received cash collaterals. Refer to Note 14 for further information about the offsetting of financial assets and financial liabilities. (iv) Classification of financial assets and liabilities Financial assets and liabilities are categorized in two categories for valuation purposes: amortized cost (AMC) and fair value through profit or loss (FVTPL). Financial assets at amortized cost (AMC). Prior to January 1, 2018, the balance sheet items Cash and cash equivalents, Loans to credit institutions, Loans to the public and Loans in the form of interest-bearing securities were recognized in the loans and receivables category if the transaction was not listed in an active market and was accordingly measured at amortized cost pursuant to the effective interest rate method. From January 1, 2018, the balance sheet items Cash and cash equivalents, Loans to credit institutions, Loans to the public and Loans in the form of interest-bearing securities are recognized at amortized cost, provided that the following criteria are met by all assets: The financial asset is included in a portfolio where the business model aims to collect contractual cash flows and The terms and conditions for the financial asset entail that the cash flows received comprise solely payments of principal and interest (SPPI) on nominal amounts outstanding. The business model is based on SEK’s overriding portfolio objective and on how the Company manages, monitors and evaluates the financial assets in the portfolio from both a business and a risk perspective. The business model is establ |
Net interest income
Net interest income | 12 Months Ended |
Dec. 31, 2018 | |
Net interest income | |
Net interest income | Note 2. Net interest income Skr mn 2018 2017 2016 Interest income Loans to credit institutions 1,475 789 546 Loans to the public 2,534 2,265 1,992 Loans in the form of interest-bearing securities 672 629 722 Interest-bearing securities excluding loans in the form of interest-bearing securities 523 458 364 Derivatives -210 -372 -552 Administrative remuneration CIRR-system(1) 157 125 116 Other assets 2 2 0 Total interest income 5,153 3,896 3,188 Interest expenses Interest expenses excl. resolution fee -3,445 -2,020 -1,339 Resolution fee -266 -193 -102 Total interest expenses -3,711 -2,213 -1,441 Net interest income 1,442 1,683 1,747 Skr mn 2018 2017 2016 Interest income were related to: Available-for-sale financial assets(2) — 426 292 Financial assets at fair value through profit or loss 574 253 93 Derivatives used for hedge accounting -261 -253 -379 Financial assets at amortized cost(3) 4,840 3,470 3,182 Total interest income 5,153 3,896 3,188 Interest expenses were related to: Available-for-sale financial assets(2) — -93 -46 Financial liabilities at fair value through profit or loss 704 278 12 Financial assets measured at fair value through profit or loss – negative interest on income -104 — — Financial assets measured at amortized cost - negative interest income -27 -37 -61 Derivatives used for hedge accounting 106 1,479 2,452 Financial liabilities at amortized cost(4) -4,390 -3,840 -3,798 Total interest expenses -3,711 -2,213 -1,441 Net interest income 1,442 1,683 1,747 Interest income geographical areas Skr mn 2018 2017 2016 Sweden 2,458 1,724 1,358 Europe except Sweden 932 723 681 Countries outside of Europe 1,763 1,449 1,149 Total interest income(2) 5,153 3,896 3,188 Interest income per product group Skr mn 2018 2017 2016 Lending to Swedish exporters 1,709 1,398 1,500 Lending to exporters’ customers(5) 1,452 1,251 1,042 Liquidity 1,992 1,247 646 Total interest income (2) 5,153 3,896 3,188 (1) Including administrative remuneration for concessionary loans by Skr 2 million (2017: Skr 2 million; 2016: Skr 2 million). (2) From January 1, 2018, SEK applies IFRS 9 Financial Instruments, which replaces IAS 39 Financial Instruments. The category Available-for-sale was applied until 2017. These assets, liquidity investments, are from 2018 classified at fair value through profit or loss (FVTPL). (3) In conjunction with the transition to IFRS 9 the name on the category changed from Loans and receivables. (4) In conjunction with the transition to IFRS 9 the name on the category changed from Other financial liabilities. (5) In interest income for Lending to exporters’ customers, Skr 155 million (2017: Skr 123 million; 2016: Skr 114 million) represent remuneration from the CIRR-system (see Note 25). |
Net fee and commissions expense
Net fee and commissions expense | 12 Months Ended |
Dec. 31, 2018 | |
Net fee and commissions expense | |
Net fee and commissions expense | Note 3. Net fee and commissions expense Skr mn 2018 2017 2016 Fee and commissions earned were related to(1): Lending 5 3 3 Total 5 3 3 Commissions incurred were related to (1): Depot and bank fees -7 -6 -7 Brokerage -4 -4 -4 Other commissions incurred -26 -21 -21 Total -37 -31 -32 Net fee and commissions expense -32 -28 -29 (1) Skr -28 million (2017: Skr-24 million; 2016: Skr -26 million) includes financial assets and liabilities not measured at fair value through profit or loss. |
Net results of financial transa
Net results of financial transactions | 12 Months Ended |
Dec. 31, 2018 | |
Net results of financial transactions | |
Net results of financial transactions | Note 4. Net results of financial transactions Skr mn 2018 2017 2016 Derecognition of financial instruments not measured at fair value through profit or loss: Available-for-sale financial assets(1) — -17 — Financial assets at amortized cost(2) 24 16 4 Financial assets or liabilities at fair value through profit or loss: Designated upon initial recognition (FVO)(3) 7,315 -326 -2,779 Mandatorily(4) -7,360 278 2,699 Financial instruments under fair-value hedge accounting: Net results of the hedging instrument -192 -999 -693 Net results of the hedged item 235 946 661 Currency exchange-rate effects on all assets and liabilities excl. currency exchange-rate effects related to revaluation at fair value -3 0 -2 Total net results of financial -transactions 19 -102 -110 (1) From January 1, 2018, SEK applies IFRS 9 Financial Instruments, which replaces IAS 39 Financial Instruments. The category Available-for-sale was applied until 2017. These assets, liquidity investments, are from 2018 classified at fair value through profit or loss (FVTPL). (2) In conjunction with the transition to IFRS 9 the category Loans and receivables changed name to Financial assets at amortized cost. (3) Difference between Parent Company and Consolidated Group for 2018 is due to different accounting principles regarding changes in SEK's own credit risk, see Note 1. (4) In conjunction with the transition to IFRS 9 the category Held-for-trading changed name to Financial assets at amortized cost. SEK’s general business model is to hold financial instruments measured at fair value to maturity. The net fair value changes that occur, mainly relate to changes in credit spreads on SEK’s own debt, which due to IFRS 9, are reported in other comprehensive income from 2018 compared to net results of financial transactions prior to IFRS 9, and basis spreads, which are recognized in net results of financial transactions. The changes could be significant in a single reporting period, but will not affect earnings over time since the lifetime cumulative changes in the instrument’s market value will be zero if it is held to maturity and is a performing instrument. When financial instruments are not held to maturity, realized gains and losses can occur, for example when SEK repurchases its own debt, or if lending is repaid early and the related hedging instruments are terminated prematurely. These are effects presented under “Derecognition of financial instruments not measured at fair value through profit or loss”, “Financial assets or liabilities at fair value through profit or loss” and “Financial instruments under fair-value hedge accounting”. “Financial assets or liabilities at fair value through profit or loss” and “Financial instruments under fair-value hedge accounting” include realized as well as unrealized changes in fair value. |
Personnel expenses
Personnel expenses | 12 Months Ended |
Dec. 31, 2018 | |
Personnel expense | |
Personnel expenses | Note 5. Personnel expenses Skr mn 2018 2017 2016 Salaries and remuneration to the Board of Directors and the CEO -7 -7 -6 Salaries and remuneration to Senior Executives -21 -20 -18 Salaries and remuneration to other employees -158 -162 -160 Pensions -52 -58 -57 Social insurance -59 -61 -58 Other personnel expenses -14 -12 -9 Total personnel expenses -311 -320 -308 The combined total of the remuneration to senior executives, excluding the CEO of the Parent Company, amounted to Skr 21 million (2017: Skr 20 million; 2016: Skr 18 million). Of the remuneration to senior executives, Skr 21 million (2017: Skr 20 million; 2016: Skr 17 million) is pensionable. Of the remuneration to the CEO of the Parent Company, Skr 5 million (2017: Skr 5 million; 2016: Skr 4 million) is pensionable. For all employees, excluding the CEO, SEK follows collective agreements between the Banking Institution Employers’ Organization (BAO) and trade unions. Remuneration and other benefits to the Board of Directors and Senior Fee, Executives in the Consolidated Group includes 2018 committee Fixed Other Skr thousand fee remuneration(1) benefits(2) Pension fee(3) Total Chairman of the Board of Directors: Lars Linder-Aronson(4) -612 — — — -612 Other members of the Board of Directors: Cecilia Ardström(4) -287 — — — -287 Anna Brandt — — — — — Reinhold Geijer(4) -269 — — — -269 Hans Larsson(4) -250 — — — -250 Eva Nilsagård, from April 24, 2018 -182 — — — -182 Susanne Lithander, resigned April 24, 2018 -74 — — — -74 Lotta Mellström resigned April 24, 2018(5) — — — — — Ulla Nilsson -287 — — — -287 Hélène Westholm, from April 24, 2018 — — — — — Senior Executives: Catrin Fransson, Chief Executive Officer (CEO)(6) — -4,743 -88 -1,418 -6,249 Per Åkerlind, Head of Treasury and Capital Management and Executive Vice President — -3,339 -85 -1,307 -4,731 Karl Johan Bernerfalk, General Counsel — -1,414 -33 -505 -1,952 Andreas Ericson, Head of Mid Corporates, from October 15, 2018 — -410 -6 -146 -562 Stefan Friberg, Chief Risk Officer (CRO) — -2,930 -25 -483 -3,438 Teresa Hamilton Burman, Chief Credit Officer (CCO) — -2,326 -16 -493 -2,835 Jens Hedar, Head of Large Corporates, from October 15, 2018 — -461 -5 -157 -623 Johan Henningsson, Head of Sustainability — -1,261 -27 -466 -1,754 Petra Könberg, Head of Marketing & Business Development — -1,143 -28 -384 -1,555 Jane Lundgren Ericsson, Head of Lending, resigned October 12, 2018 — -1,943 -75 -610 -2,628 Ingela Nachtweij, Acting Chief Information Officer (CIO), resigned January 31, 2018 — -128 -2 -36 -166 Sirpa Rusanen, Chief Human Resources Officer (CHRO) — -1,471 -106 -556 -2,133 Susanna Rystedt, Chief Administrative Officer (CAO) — -2,255 -108 -733 -3,096 Madeleine Widaeus, IT-Chief, from February 1, 2018 — -1,360 -11 -405 -1,776 Total -1,961 -25,184 -615 -7,699 -35,459 (1) Predetermined salary or other compensation such as holiday pay and allowances. (2) Other benefits consist of, for example, car allowances and subsistence benefits. (3) Includes premiums for insurance covering sickness benefit for prolonged illness and other public risk insurance as a result of collective pension agreements. (4) Remuneration was invoiced from their private companies in accordance with the state guidelines up to the Annual General Meeting on April 24, 2018. (5) Remuneration is not paid from the Company to the representatives on the Board of Directors, who are employed by the owner, the Swedish Government. (6) The retirement age of the CEO, Catrin Fransson, is 65 years and the pension fee is 30 percent of her fixed salary. Remuneration and other benefits to the Board of Directors and Senior Fee, Executives in the Consolidated Group includes 2017 committee Fixed Other Skr thousand fee remuneration(1) benefits(2) Pension fee(3) Total Chairman of the Board of Directors: Lars Linder-Aronson(4) -745 — — — -745 Other members of the Board of Directors: Cecilia Ardström(4) -344 — — — -344 Jan Belfrage, resigned March 22, 2017 -72 — — — -72 Anna Brandt, from November 21, 2017 — — — — — Reinhold Geijer, from March 22, 2017 (4) -213 — — — -213 Hans Larsson, from March 22, 2017 (4) -212 — — — -212 Susanne Lithander -263 — — — -263 Lotta Mellström(5) — — — — — Ulla Nilsson -273 — — — -273 Teppo Tauriainen, resigned November 21, 2017(5) — — — — — Magnus Uggla, resigned March 22, 2017(4) -46 — — — -46 Senior Executives: Catrin Fransson, Chief Executive Officer (CEO)(6) — -4,638 -97 -1,372 -6,107 Per Åkerlind, Head of Treasury and Capital Management and Executive Vice President — -3,278 -92 -1,159 -4,529 Karl Johan Bernerfalk, General Counsel — -1,372 -18 -447 -1,837 Stefan Friberg, Chief Risk Officer (CRO) — -2,908 -19 -465 -3,392 Teresa Hamilton Burman, Chief Credit Officer (CCO) — -2,252 -11 -485 -2,748 Johan Henningsson, Head of Sustainability — -1,191 -30 -435 -1,656 Petra Könberg, Head of Marketing & Business Development, from April 18, 2017 — -830 -20 -220 -1,070 Jane Lundgren Ericsson, Head of Lending — -2,410 -98 -720 -3,228 Ingela Nachtweij, Acting Chief Information Officer (CIO), from January 10, 2017 — -1,520 -27 -414 -1,961 Sirpa Rusanen, Chief Human Resources Officer (CHRO) — -1,415 -105 -536 -2,056 Susanna Rystedt, Chief Administrative Officer (CAO) — -2,191 -112 -720 -3,023 Edvard Unsgaard, Head of Communication, resigned April 18, 2017 — -314 -8 -102 -424 Total -2,168 -24,319 -637 -7,075 -34,199 (1) Predetermined salary or other compensation such as holiday pay and allowances. (2) Other benefits consist of, for example, car allowances and subsistence benefits. (3) Includes premiums for insurance covering sickness benefit for prolonged illness and other public risk insurance as a result of collective pension agreements. (4) Remuneration is invoiced from their private companies in accordance with the state guidelines. (5) Remuneration is not paid from the Company to the representatives on the Board of Directors, who are employed by the owner, the Swedish Government. (6) The retirement age of the CEO, Catrin Fransson, is 65 years and the pension fee is 30 percent of her fixed salary. Remuneration and other benefits to the Board of Directors and Senior Fee, Executives in the Consolidated Group includes 2016 committee Fixed Other Skr thousand fee remuneration(1) benefits(2) Pension fee 3 Total Chairman of the Board of Directors: Lars Linder-Aronson(4) -669 — — — -669 Other members of the Board of Directors: Cecilia Ardström -216 — — — -216 Jan Belfrage -225 — — — -225 Susanne Lithander -240 — — — -240 Lotta Mellström(5) — — — — — Ulla Nilsson -244 — — — -244 Jan Roxendal, resigned April 26, 2016(4) -109 — — — -109 Teppo Tauriainen(5) — — — — — Magnus Uggla, from April 26, 2016(4) -186 — — — -186 Senior Executives: Catrin Fransson, Chief Executive Officer (CEO)(6) — -4,487 -86 -1,332 -5,905 Per Åkerlind, Head of Treasury and Capital Management and Executive Vice President — -3,207 -86 -1,112 -4,405 Karl Johan Bernerfalk, General Counsel — -1,281 -11 -405 -1,697 Stefan Friberg, Chief Risk Officer (CRO) — -2,769 -12 -467 -3,248 Teresa Hamilton Burman, Chief Credit Officer (CCO) — -2,253 -12 -460 -2,725 Johan Henningsson, Head of Sustainability — -1,124 -12 -379 -1,515 Jane Lundgren Ericsson, Head of Lending — -2,355 -81 -616 -3,052 Sirpa Rusanen, Chief Human Resources Officer (CHRO) — -1,360 -91 -487 -1,938 Susanna Rystedt, Chief Administrative Officer (CAO) — -2,164 -41 -676 -2,881 Edvard Unsgaard, Head of Communication — -995 -11 -333 -1,339 Total -1,889 -21,995 -443 -6,267 -30,594 (1) Predetermined salary or other compensation such as holiday pay and allowances. (2) Other benefits consist of, for example, car allowances and subsistence benefits. (3) Includes premiums for insurance covering sickness benefit for prolonged illness and other public risk insurance as a result of collective pension agreements. (4) Remuneration is invoiced from their private companies in accordance with the state guidelines. (5) Remuneration is not paid from the Company to the representatives on the Board of Directors, who are employed by the owner, the Swedish Government. (6) The retirement age of the CEO, Catrin Fransson is 65 years and the pension fee is 30 percent of her fixed salary. Finansinspektionens (the Swedish FSA’s) regulations (FFFS 2011:1) regarding remuneration structures in credit institutions, investment firms and fund management companies licensed to conduct discretionary portfolio management apply to SEK. Moreover, SEK applies the government’s guidelines on terms of employment for senior executives at state-owned companies. In accordance with these regulations, SEK’s Board has prepared a proposal for a set of guidelines for the remuneration of senior executives at SEK, which was adopted at the 2018 Annual General Meeting. The guidelines stipulate that salary and remuneration to the senior executives of SEK should be fair and reasonable. They should also be competitive, capped and appropriate as well as contribute to good ethical principles and corporate culture. Remuneration should not be higher than at comparable companies, and should be reasonable. Remuneration to senior executives consists of fixed salary, pension and other benefits. Pension terms for senior executives should be in the form of defined contribution plans. SEK's remuneration system is designed to promote sound and effective risk management and restrict excessive risk-taking. Remuneration to employees is mainly determined at fixed amounts. SEK’s Board of Directors’ Remuneration Committee (the “Remuneration Committee”) prepares proposals for decision by the Board relating to remuneration policy for the Company, on total remuneration for the CEO, for other members of the executive management, for the Head of Compliance, and for other employees reporting directly to the CEO, as well as on the terms and conditions for and the outcome of the Company’s remuneration system. The Remuneration Committee also prepares and handles overall issues relating to remuneration (salaries, pension and other benefits), measures aimed at applying SEK’s remuneration policy, and issues relating to succession planning. Further, the Remuneration Committee prepares overall instructions for remuneration issues that it deems necessary. The Remuneration Committee also ensures that the relevant oversight department, together with the Remuneration Committee, annually reviews and evaluates the Company’s remuneration systems and also reviews whether such systems comply with the Company’s remuneration policy and relevant instructions regarding remuneration. The outcome is presented to the Board in a separate report on the same day as the annual report is submitted. The Remuneration Committee has met seven times in 2018. Since 2011, the Company has had only one system for variable remuneration, the EIS. The EIS applies to all permanent employees, with the exception of the executive management (except for three newly appointed senior executives, where deferred remuneration related to 2014 is included according to the agreement at that time), and employees within the Risk Department and employees within the Compliance Department. The aim of the EIS was to contribute to attracting and retaining staff, promote the achievement of the Company’s long-term objectives, and encourage cooperation between different parts of the organization in order to progress toward shared objectives. If the resulting return, after adjustment for any non-operational items and risk assumption, exceeded the budgeted return, those employees encompassed by EIS received a share of the excess return, however this was capped at an amount equal to two months’ salary, including payroll taxes. The terms and conditions entailed that the variable remuneration never exceeded 16.67 percent of the fixed remuneration. The final decision on the result and the amount to be paid out under the EIS was taken by the Board. In autumn 2016, the Board decided that the EIS would cease to apply from the end of 2016. Any remaining payments under the EIS attributable to results up until 2016 will be subject to the same rules that applied in the respective vesting years. In parallel, the Board decided that permanent employees should be offered certain benefits related to wellness, healthcare and medical care. Moreover, the Board decided to implement a system, over a three-year trial period (2017-2019), whereby it will be possible to offer permanent employees with customer or business responsibility, with the exception of members of the executive management, the possibility of individual variable remuneration (IVR). IVR will be evaluated on an ongoing basis. The results of the evaluation will be referred to the Remuneration Committee. Following the trial period, a more extensive evaluation will be performed. In the areas where IVR is applicable, the corresponding EIS rules apply. This includes the discretionary nature of the system, that all outcomes are subject to deferred payment and that the Board takes all decisions regarding results and payments. Before an individual receives any IVR payment, the payment is subject to testing at three different levels: the Company level, the Department level and the Individual level. The test at the Company level is the basis for any IVR outcome. The outcome at the Company level is conditional on the actual return, following any applicable adjustment for the impact of non-operational items and increases in the Company’s total risk assumption compared with the target risk assumption, exceeding a predetermined target. Of the profit that corresponds to any excess return, a percentage accrues to the IVR at the Company level. The outcome at the Company level is capped at a maximum of two months’ salary, calculated on the basis of all Company employees entitled to IVR. In the case of a positive outcome at the Company level, the next step is to test at the Department level. This test assesses the outcome at the Department level in relation to the department’s quantitative targets. If the targets have not been reached, the outcome at the Company level is reduced for all members of the department. The remainder after this test comprises the outcome at the Department level, which is capped at a maximum of two months’ salary, calculated on the basis of all department’s employees entitled to IVR. The final test is at the Individual level. This test assesses the behavior and performance of individuals. For each individual, the outcome following the test at the Individual level is subject to a floor of zero and a ceiling of 1.5 times the amount at the Department level. Accordingly, the maximum outcome for any individual is three months’ salary. The total outcome for all employees encompassed by IVR in a department must be within the outcome at the Department level. The Company pays payroll taxes on any IVR paid, which also carries pension entitlements. SEK’s remuneration policy is designed in such a way that the Company may decide that remuneration that is subject to deferred disbursement may be withheld, in part or full, if it subsequently transpires that the performance criteria have not been fulfilled or if the employee has breached certain internal rules. The same applies if disbursement would not be justifiable by the Company’s financial situation. Moreover, the outcome may also be adjusted if credit losses, or recoveries of credit losses, have occurred after the relevant income year, but are deemed to be attributable to the said income year. For all employees encompassed by IVR, the disbursement plan states that 40 percent of the outcome will be disbursed in April in the year following the income year to which the remuneration relates, and 20 percent will be disbursed in April in each of the three subsequent years. As part of its strategic analysis and planning, the Company undertakes an annual process for internal capital and liquidity assessment. As part of this assessment, an analysis is conducted with the aim of identifying employees, whose work duties have a material impact on SEK’s risk profile, including risks related to the Company’s remuneration policy and remuneration system. The outcome of this analysis is taken into account when designing the remuneration systems in order to promote sound and efficient risk management and to restrict excessive risk-taking. The number of employees that receive remuneration of EUR 1 million or more per fiscal year is zero. No new agreements containing variable remunerations have been established during the year. The CEO’s, Catrin Fransson’s, terms of employment comply with the Guidelines for Terms of Employment for Senior Executives in State-owned Companies (adopted April 20, 2009). SEK pays a defined contribution pension insurance amounting to 30 percent of the CEO’s pensionable salary. The retirement age for the CEO is 65. For the CEO, SEK pays premiums for insurance for sickness benefits for prolonged illness, other collective risk insurance corresponding to those applicable under the BTP plan as well as healthcare insurance under Skandia Privatvård Plus and travel insurance. Other benefits payable to the CEO include car and per diem allowances. The CEO is entitled to six months’ notice prior to termination initiated by SEK and severance pay corresponding to 18 months’ salary. A deduction is made for any income arising from new employment. The retirement age is 65 for all senior executives. The pension terms, conditions for termination of employment and other terms of employment for the senior executives follow the current Guidelines for Terms of Employment for Senior Executives in State-owned Companies (adopted April 20, 2009), where the BTP plan is included as an approved, collectively bargained, defined-benefit and defined-contribution pension plan. Since the 2017 Annual General Meeting, the new guidelines apply when appointing new senior executives at SEK. Pension provisions for senior executives in SEK are limited to 30 percent of pensionable income for retirement and survivors’ pension. Due to SEK’s implementation of a defined-benefit pension plan, the BTP plan, resulting from a collective agreement between the BAO and the Financial Sector Union of Sweden, covering employees in the banking and finance industries, the contribution for retirement and survivors’ pension can exceed 30 percent. For the senior executives, SEK pays premiums for insurance for sickness benefits for prolonged illness, other collective risk insurance arising out of applicable collective agreements as well as travel insurance and health insurance. Other benefits include car and per diem allowances. Per Åkerlind and Sven-Olof Söderlund have notice periods of six months should termination be initiated by SEK and are entitled to severance pay corresponding to 18 months’ salary. A deduction is made for any income arising from new employment. For other senior executives, the notice period upon termination initiated by SEK follows collective agreements. Upon resignation by the employee, the notice period is three or six months. Pensions The employees at SEK have a collectively bargained pension plan through the BTP plan, which is the most significant pension plan for salaried bank employees in Sweden. The BTP plan is funded by means of insurance with the insurance companies SPP and SEB. The total pension cost for defined benefit and defined contribution obligations are shown below Skr mn 2018 2017 2016 Service cost -4 -5 -4 Regulation of pension obligations 5 Interest cost, net -1 -1 0 Pension cost for defined benefit pensions, incl. payroll tax 0 -6 -4 Pension cost for defined contribution pension cost incl. payroll tax -52 -52 -53 Pension cost recognized in personnel costs -52 -58 -57 Actuarial gains and (losses) on defined benefit obligation during period -48 -7 -35 Return above expected return, gains and (losses) on plan assets 0 3 5 Change in the effect of the asset ceiling excluding interest — — 4 Revaluation of defined benefit plans -48 -4 -26 The following table specifies the net value of defined benefit pension obligations Skr mn 2018 2017 2016 Defined benefit obligations 253 263 254 Plan assets -173 -223 -216 Restriction to net defined benefit asset due to the asset ceiling 0 0 0 Provision for pensions, net obligation (see Note 21) 80 40 38 The following table shows the development of defined benefit obligations Skr mn 2018 2017 2016 Defined benefit obligation, opening balance 263 254 215 Service cost 4 5 4 Interest cost 6 7 8 Pension Payments incl. special payroll tax -9 -10 -9 Other -59 — — Actuarial (gains) and losses, effect due to changed demographic assumptions — — — Actuarial (gains) and losses, effect due to changed financial assumptions 46 9 38 Actuarial (gains) and losses, effect due to experience based outcome 2 -2 -2 Defined benefit obligation, closing balance 253 263 254 The following table shows the development of plan assets related to defined benefit obligation Skr mn 2018 2017 2016 Fair value of plan assets, opening balance 223 216 202 Expected return on plan assets 5 6 7 Contributions by the employer(1) 7 7 8 Benefits paid(2) -8 -8 -7 Other(3) -54 — — Return on plan assets excluding interest income 0 2 6 Fair value of plan assets, closing balance 173 223 216 (1) Expected contribution from the employer in the following year is Skr 6 million (2017: Skr 7 million; 2016: Skr 8 million) excluding payroll tax. (2) Expected compensation paid in the following year is Skr 8 million (2017: Skr 9 million ; 2016: Skr 9 million). (3) Regulation of pension obligations related to Venantius AB and its subsidiaries, which were liquidated in 2018. The following table shows the distribution of plan assets related to defined benefit obligation Skr mn 2018 2017 2016 Domestic equity investments 3 4 4 Foreign equity investments 12 16 4 Domestic government bonds 43 63 69 Domestic corporate bonds 26 40 69 Mortgage bonds 49 76 52 Other Investments 19 — — Properties 21 24 18 Total 173 223 216 The following table displays principal actuarial assumptions used end of year % 2018 2017 2016 Discount rate 2.1 2.5 2.7 Assumption of early pension withdrawal 20.0 20.0 20.0 Expected salary increase 2.0 2.0 2.0 Expected inflation 2.0 1.6 1.6 Expected lifetime DUS14 DUS14 DUS14 Expected turnover 5.0 5.0 5.0 Sensitivity analysis of essential assumptions Negative outcome Positive outcome Discount rate -1 % 1.1 % +1 % 3.1 % Defined benefit obligation 324 202 Service cost 8 4 Interest cost 4 6 Expected lifetime +1 year -1 year Defined benefit obligation 266 242 Service cost 6 5 Interest cost 6 5 Net reconciliation of pension liabilities Skr mn 2018 2017 2016 Pension liabilities, opening balance 40 38 17 Net periodic pension cost 0 6 4 Contributions by the employer -7 -7 -8 Net pension payments -1 -1 -1 Revaluations recognized in other comprehensive income 48 4 26 Pension liabilities, closing balance 80 40 38 Reconciliation of provisions for pensions Net interest is calculated using the discount rate of pension obligations, based on the net surplus or net deficit in the defined benefit plan. Pension expense in 2018 for defined benefit pensions amounts to Skr 0 million (2017: Skr 6 million; 2016: Skr 4 million). As of December 31, 2018, the expected weighted average remaining service time for active employees was 16.66 years, (2017: 17.58 years; 2016: 19.07 years) the expected weighted average duration for the present value was 19.37 years (2017: 17.38 years; 2016: 20.7 years) and the average salary for active employees was Skr 0.8 million (2017: Skr 0.8 million; 2016: Skr 0.8 million). Discount rate Swedish government bonds were previously used as the basis for calculating pension liabilities. Since January 1, 2013 the calculation has instead been based on the estimated interest curve of Swedish mortgage bonds, as this market is regarded as liquid enough to be used for this purpose. The discount rate is based on market expectations at the end of the accounting period, using bonds with the same duration as the pension liability. Expected early retirement According to the transitional rule for § 8 in the BTP-plan, the calculation includes the assumption that 20 percent of the employees use the possibility for early retirement. The earliest retirement age is 61 for employees born 1956 or earlier. Employees born 1967 or later have no right to retire before age 65. Expected return on plan assets Expected return on plan assets is equal to the discount rate as regulated in IAS 19. Expected salary increase The assumption of salary increase is based on SEK’s assessment. Expected inflation The expected inflation is in line with Swedish inflation-linked bonds. Expected employee turnover Expected employee turnover is based on SEK’s assessment of the long-term expected Company staff attrition during one year. Average number of employees 2018 2017 2016 Women 117 121 122 Men 126 131 138 Total average number of employees 243 252 260 Number of employees at year-end 2018 2017 2016 Women 118 122 122 Men 120 128 134 Total number of employees(1) 238 250 256 of which full-time employees 230 243 250 Allocation of women/men 49/51 48/52 47/53 of which part-time employees 8 7 6 Allocation of women/men 75/25 86/14 83/17 of which permanent employees 236 246 251 Allocation of women/men 50/50 49/51 48/52 of which temporary employees 2 4 5 Allocation of women/men 50/50 50/50 20/80 of which managers 29 31 33 of which non-management 209 219 223 (1) In addition to its employees, SEK had 32 consultants (FTEs) engaged at year-end 2018. Employees by age distribution 2018 2017 2016 Total number of employees 238 250 256 of which under the age of 30 years 13 16 16 of which between 30 and 50 years 127 142 153 of which over 50 years 98 92 87 Employee turnover 2018 2017 2016 Number of employees who left employment 32 31 26 of which women 12 12 9 of which men 20 19 17 of which under the age of 30 years 3 4 2 of which between 30 and 50 years 20 20 17 of which over 50 years 9 7 7 Health, % 2018 2017 2016 Absence due to sickness 3.1 3.3 4.0 Percentage of employees that use SEK’s fitness allowance 91 92 84 Equality and diversity 2018 2017 2016 Allocation of women/men on the Board of Directors 62/38 60/40 50/50 Allocation of women/men in SEK’s executive management 50/50 64/36 50/50 Allocation of women/men in management positions 41/59 42/58 36/64 Allocation of women/men at SEK in total 51/49 49/51 48/52 Allocation of employees with foreign/Swedish background(1) 33/67 33/67 30/70 (1) Foreign background is defined as “I was raised in a country other than Sweden (wholly or in part)”, “I was born in another country but raised in Sweden” and “I myself was born and raised in Sweden but have a parent/parents born and raised in another country”. The survey is conducted at least once every three years. Employee development 2018 2017 2016 Percentage of employees who had a performance review (percent) 96 95 98 Average number of training days per employee (all employees are white-collar workers) 3 2 3 |
Other administrative expenses
Other administrative expenses | 12 Months Ended |
Dec. 31, 2018 | |
Other administrative expenses | |
Other administrative expenses | Note 6. Other administrative expenses Skr mn 2018 2017 2016 Travel expenses and marketing -7 -8 -10 IT and information system (fees incl.) -151 -144 -141 Other fees -34 -38 -47 Premises(1) -33 -32 -28 Other -6 -10 -10 Total other administrative expenses -231 -232 -236 (1) SEK is a partner in rental agreements of office space in Stockholm and Gothenburg. Cost of operating leases Skr mn 2018 2017 2016 Leases -32 -31 -27 The primary cost relates to SEK’s office premises. Future minimum rentals payable under non-cancellable operating leases are as follows December 31, December 31, December 31, Skr mn 2018 2017 2016 Within 1 year -32 -32 -31 Between 1 and 5 years -60 -88 -120 More than 5 years — — — Total future minimum rentals payable under non-cancellable operating leases -92 -120 -151 Remuneration to auditors Skr mn 2018 2017 2016 Öhrlings PricewaterhouseCoopers AB: Audit fees(1) -8 -8 -10 Audit related fees(2) 0 0 0 Tax related fees(3) — 0 0 Other fees(4) -2 -1 -1 Total -10 -9 -11 (1) Fees related to audit of annual financial statements and reviews of interim financial statements. (2) Fees charged for assurance and related services that are related to the performance of audit or review of the financial statements and are not reported under Audit fees. (3) Fees for professional services rendered by the principal independent auditors for tax compliance and tax advice. (4) Fees for products and services rendered by the principal independent auditors, other than the services reported in Audit fees through Tax related fees above. In the financial statements remuneration to auditors is mainly included in Other administrative expenses. |
Tangible and intangible assets
Tangible and intangible assets | 12 Months Ended |
Dec. 31, 2018 | |
Tangible and intangible assets | |
Tangible and intangible assets | Note 7. Tangible and intangible assets Skr mn December 31, 2018 December 31, 2017 December 31, 2016 Net book value Tangible assets 26 22 22 Intangible assets(1) 43 66 101 Total net book value 69 88 123 Depreciation and impairment during the year according to the Consolidated Statement of Comprehensive Income -40 -45 -46 (1) Intangible assets consist of the capitalized portion of investments in IT systems. The average useful life for intangible assets is 5 years. |
Leasing
Leasing | 12 Months Ended |
Dec. 31, 2018 | |
Leasing | |
Leasing | Note 8. Leasing All SEK’s leasing transactions, where SEK is the lessor, are classified as financial leases. When making such classification all aspects regarding the leasing contract, including third party guarantees, are taken into account. A reconciliation between the gross investment in the leases and the present value of minimum lease payments receivable at the end of the reporting period can be found below. Future lease payments receivable will mature in the following periods. December 31, 2018 December 31, 2017 Present value of Present value of Gross minimum lease Gross minimum lease Skr mn investment payments investment payments No later than one year 117 113 124 107 Later than one year and no later than five years 182 156 246 226 Later than five years 8 5 — — Total 307 274 370 333 Unearned finance income — 33 — 37 Unguaranteed residual value — — — — The leases are included in the line item “Loans to the public” in the Statement of Financial Position. |
Impairments
Impairments | 12 Months Ended |
Dec. 31, 2018 | |
Impairments | |
Impairments | Note 9. Impairments Skr mn 2018(1) 2017(2) 2016(2) Expected credit losses, stage 1 6 n.a. n.a. Expected credit losses, stage 2 14 n.a. n.a. Expected credit losses, stage 3 -13 n.a. n.a. Impairment of financial assets n.a. -59 -23 Reversals of previous write-downs — 110 7 Established credit losses — -47 — Reserves applied to cover established credit losses — 46 — Recovered credit losses 0 1 0 Net credit losses 7 51 -16 (1) Expected credit losses according to IFRS 9 (2) Impairments according to IAS 39 December 31, 2018 December 31, 2017 Skr mn Stage 1 Stage 2 Stage 3 Total Total Loans, before expected credit losses Loans in the form of interest-bearing securities 34,112 2,686 — 36,798 41,125 Loans to credit institutions 10,188 1,164 — 11,352 12,884 Loans to the public 134,117 25,405 1,424 160,946 141,266 Off balance, before expected credit losses Guarantees 2,818 1,246 1 4,065 3,360 Committed undisbursed loans 21,348 30,177 — 51,525 74,125 Total, before expected credit losses 202,583 60,678 1,425 264,686 272,760 of which guaranteed 60.4 % 85.4 % 94.3 % 64.1 % Loss allowance, loans Loans in the form of interest-bearing securities -9 -3 — -12 — Loans to credit institutions -1 -1 — -2 — Loans to the public -24 -17 -82 -123 -155 Loss allowance, off balance (1) Guarantees 0 0 -2 -2 — Committed undisbursed loans 0 0 — 0 — Total, loss allowance -34 -21 -84 -139 -155 Provision ratio 0.02 % 0.03 % 5.89 % 0.05 % 0.06 % (1) Recognized under provision in Consolidated Statement of Financial Position Loans and off balance, before Loss Allowance December 31, 2018 Skr mn Stage 1 Stage 2 Stage 3 Total Opening balance(1) 209,232 62,286 1,242 272,760 Increase due to origination and acquisition 37,594 768 3 38,365 Transfer to stage 1 2,490 — — 2,490 Transfer to stage 2 — 5,431 — 5,431 Transfer to stage 3 — — 466 466 Decrease due to derecognition -46,733 -7,807 -286 -54,826 Closing balance 202,583 60,678 1,425 264,686 (1) Effect on opening balance after implementation of IFRS 9 Skr 18 million. Loss Allowance December 31, 2018 31 december, 2017(3) Skr mn Stage 1 Stage 2 Stage 3 Total Total Opening balance(1) -38 -33 -66 -137 -254 Increases due to origination and acquisition -12 -2 -1 -15 n.a. Net remeasurement of loss allowance 12 9 -14 7 51 Transfer to stage 1 0 0 — 0 n.a. Transfer to stage 2 1 -1 — 0 n.a. Transfer to stage 3 0 -2 2 0 n.a. Decreases due to derecognition 5 10 0 15 n.a. Decrease in allowance account due to write-offs — — — — 46 Exchange-rate differences(2) -2 -2 -5 -9 2 Closing balance -34 -21 -84 -139 -155 (1) Effect on opening balance after implementation of IFRS 9 Skr 18 million. (2) Recognized under Net results of financial transactions in the Statement of Comprehensive Income. (3) According to IAS 39 Loan credit quality , before expected credit losses, allocated by stage December 31, 2018 Skr mn Stage 1 Stage 2 Stage 3 Total AAA 1,204 — — 1,204 AA+ to A- 25,635 51 — 25,686 BBB+ to BBB- 107,289 1,161 — 108,450 BB+ to BB- 28,055 18,972 28 47,055 B+ to B- 16,234 8,869 — 25,103 CCC to D — 202 1,396 1,598 Total, before expected credit losses 178,417 29,255 1,424 209,096 Past-due receivables, historic amounts, according to IAS 39 Past-due receivables have been recorded at the amounts expected to actually be received at settlement. Skr mn December 31, 2017 Past-due receivables: Aggregate amount of principal and interest less than, or equal to, 90 days past-due 136 Aggregate amount of principal and interest more than 90 days past due (1) 10 Principal amount not past-due on such receivables 494 Total Past-due receivables 640 (1) Of the aggregate amount of principal and interest past due, Skr 3 million was due for payment more than three but less than, or equal to, six months before the end of the reporting period, Skr 3 million was due for payment more than six but less than, or equal to, nine months before the end of the reporting period, and Skr 5 million was due for payment more than nine months before the end of the reporting period. More information regarding SEK’s Credit Policy is found in Note 27. Risk information and in Note 30. Risk and capital management. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Taxes | |
Taxes | Note 10. Taxes Consolidated Group Skr mn 2018 2017 2016 Income tax Adjustment previous year -1 0 4 Current tax -448 -262 -382 Deferred tax 245 27 156 Total income tax -204 -235 -222 Income tax related to other comprehensive income Tax on items to be reclassified to profit or loss Current tax 6 27 27 Deferred tax — — — Tax on items not to be reclassified to profit or loss Current tax -82 — — Deferred tax 10 1 6 Income tax related to other comprehensive income -66 28 33 Reconciliation of effective tax rate The Swedish corporate tax rate, % 22.0 22.0 22.0 Profit before taxes 852 1,007 1,002 National tax based on profit before taxes -187 -222 -220 Tax effects of: Non-taxable income 0 1 0 Non-deductible expenses -14 -15 -1 Imputed interest on tax allocation reserve -2 -2 -3 Dividend received — — — Other -1 3 2 Total tax -204 -235 -222 Effective tax expense in % 24.0 23.3 22.2 Deferred taxes Skr mn 2018 2017 Deferred tax assets concerning: Temporary differences, related to pensions 15 7 Other temporary differences — — Total deferred tax assets 15 7 Deferred tax liabilities concerning: Untaxed reserves 291 538 Total deferred tax liabilities 291 538 Net deferred tax liabilities (+) / tax assets (-) 276 531 No deductible loss carry forwards existed as of December 31, 2018, or December 31, 2017. Change in deferred taxes Skr mn 2018 2017 Opening balance 531 559 Change through profit or loss -245 -27 Change in other comprehensive income -10 -1 Total 276 531 No deferred taxes accounted for in the Parent Company as of December 31, 2018, or December 31, 2017. In June 2018, the Swedish Parliament introduced, among other things, reduced corporate tax and general interest deduction restrictions. The new rules came into force on January 1, 2019. The corporate tax is reduced in two stages - first to 21.4% (from January 1, 2019) and later to 20.6% (from January 1, 2021). The change has not had any significant impact on SEK’s deferred taxes. |
Loans and liquidity investments
Loans and liquidity investments | 12 Months Ended |
Dec. 31, 2018 | |
Loans and liquidity investments. | |
Loans and liquidity investments | Note 11. Loans and liquidity investments December 31, December 31, Skr mn 2018 2017 Loans: Loans in the form of interest-bearing securities 36,781 41,125 Loans to credit institutions 27,725 23,198 Loans to the public 161,094 141,111 Less: Cash collateral under the security agreements for derivative contracts(1) -16,374 -10,314 Deposits with time to maturity exceeding three months — — Total loans 209,226 195,120 Liquidity investments: Cash and cash equivalents 2,416 1,231 Cash collateral under the security agreements for derivative contracts 16,374 10,314 Deposits with time to maturity exceeding three months — — Treasuries/government bonds 11,117 4,382 Other interest-bearing securities except loans 48,665 39,807 Total liquidity investments 78,572 55,734 of which issued by public authorities 15,110 9,309 of which quoted on an exchange 24,505 22,396 (1) Included in Loans to credit institutions. Difference between book value amount and amount contractually required to be paid at maturity for interest-bearing securities not carried at fair value Skr mn 2018 2017 Sum of amounts exceeding nominal 143 4 Sum of amounts falling below nominal -39 -57 Volume Development, Lending of which the CIRR-system Skr mn 2018 2017 2018 2017 Offers of long-term loans accepted 57,015 89,305 4,916 36,909 Undisbursed loans at year-end 50,814 72,914 47,664 69,161 Loans outstanding at year-end 209,226 (1) 195,120 (1) 69,922 49,124 (1) Including concessionary loans by Skr 663 million (year-end 2017: Skr 754 million) . Outstanding loans as per business area of which the CIRR-system December 31, December 31, December 31, December 31, Skr mn 2018 2017 2018 2017 Lending to Swedish exporters 89,759 93,060 — — Lending to exporters’ customers 119,467 102,060 69,922 49,124 Total lending 209,226 (1) 195,120 (1) 69,922 49,124 (1) Includ ing concessionary loans by Skr 663 million (year-end 2017: Skr 754 million). |
Classification of financial ass
Classification of financial assets and liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Classification of financial assets and liabilities | |
Classification of financial assets and liabilities | Note 12. Classification of financial assets and liabilities Financial assets by accounting category: December 31, 2018 Financial assets at fair value through profit or loss Amortized cost Total Derivatives used for hedge Skr mn Mandatorily accounting Cash and cash equivalents — — 2,416 2,416 Treasuries/government bonds 11,117 — — 11,117 Other interest-bearing securities except loans 48,665 — — 48,665 Loans in the form of interest-bearing securities — — 36,781 36,781 Loans to credit institutions — — 27,725 27,725 Loans to the public — — 161,094 161,094 Derivatives 4,565 1,964 — 6,529 Total financial assets 64,347 1,964 228,016 294,327 Financial liabilities by accounting category: December 31, 2018 Financial liabilities at fair value through profit or loss Amortized cost Total Designated upon Derivatives initial used for recognition hedge Skr mn Mandatorily (FVO) accounting Borrowing from credit institutions — — — 2,247 2,247 Debt securities issued — 64,687 — 190,913 255,600 Derivatives 15,652 — 6,282 — 21,934 Total financial liabilities 15,652 64,687 6,282 193,160 279,781 Financial assets by accounting category according to IAS 39: December 31, 2017 Derivatives used Financial assets at fair value through for hedge Available- Loans and profit or loss accounting for-sale receivables Total Designated upon initial recognition Skr mn Held-for-trading (FVO) Cash and cash equivalents — — — — 1,231 1,231 Treasuries/government bonds — — — 4,382 — 4,382 Other interest-bearing securities except loans — 113 — 39,694 — 39,807 Loans in the form of interest-bearing securities — — — — 41,125 41,125 Loans to credit institutions — — — — 23,198 23,198 Loans to the public — — — — 141,111 141,111 Derivatives 4,356 — 3,447 — — 7,803 Total financial assets 4,356 113 3,447 44,076 206,665 258,657 Financial liabilities by accounting category according to IAS 39: December 31, 2017 Derivatives used for Financial liabilities at fair value hedge Other financial through profit or loss accounting liabilities Total Designated upon initial Held-for- recognition Skr mn trading (FVO) Borrowing from credit institutions — — — 2,317 2,317 Debt securities issued — 63,421 — 159,095 222,516 Derivatives 10,864 — 5,616 — 16,480 Subordinated liabilities — — — 2,040 2,040 Total financial liabilities 10,864 63,421 5,616 163,452 243,353 |
Financial assets and liabilitie
Financial assets and liabilities at fair value | 12 Months Ended |
Dec. 31, 2018 | |
Financial assets and liabilities at fair value | |
Financial assets and liabilities at fair value | Note 13. Financial assets and liabilities at fair value December 31, 2018 Surplus value (+) Skr mn Book value Fair value /Deficit value (-) Cash and cash equivalents 2,416 2,416 — Treasuries/governments bonds 11,117 11,117 — Other interest-bearing securities except loans 48,665 48,665 — Loans in the form of interest-bearing securities 36,781 37,666 885 Loans to credit institutions 27,725 27,709 -16 Loans to the public 161,094 164,734 3,640 Derivatives 6,529 6,529 — Total financial assets 294,327 298,836 4,509 Borrowing from credit institutions 2,247 2,247 — Debt securities issued 255,600 256,619 1,019 Derivatives 21,934 21,934 — Total financial liabilities 279,781 280,800 1,019 December 31, 2017 Surplus value (+) Skr mn Book value Fair value /Deficit value (-) Cash and cash equivalents 1,231 1,231 — Treasuries/governments bonds 4,382 4,382 — Other interest-bearing securities except loans 39,807 39,807 — Loans in the form of interest-bearing securities 41,125 42,352 1,227 Loans to credit institutions 23,198 23,451 253 Loans to the public 141,111 144,935 3,824 Derivatives 7,803 7,803 — Total financial assets 258,657 263,961 5,304 Borrowing from credit institutions 2,317 2,317 — Debt securities issued 222,516 223,465 949 Derivatives 16,480 16,480 — Subordinated liabilities 2,040 2,047 7 Total financial liabilities 243,353 244,309 956 The majority of financial liabilities and some of the financial assets in the Statement of Financial Position are accounted for at full fair value or at a value that represents fair value for the components hedged in a hedging relationship. Lending and borrowing not classified as hedge accounting or FVO are accounted for at amortized cost. Determining fair value of financial instruments The best evidence of fair value is quoted prices in an active market. The majority of SEK’s financial instruments are not publicly traded, and quoted market values are not readily available. Fair value measurements are categorized using a fair value hierarchy. The financial instruments have been categorized under the three levels of the IFRS fair value hierarchy that reflects the significance of inputs. The categorization of these instruments is based on the lowest level of input that is significant to the fair value measurement in its entirety. SEK uses the following hierarchy for determining and disclosing the fair value of financial instruments based on valuation techniques: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities; Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly; and Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data. For more information on determining the fair value of financial transactions, see Note 1. In the process of estimating or deriving fair values for items accounted for at amortized cost, certain assumptions have been made. In those cases where quoted market values for the relevant items are available, such market values have been used. The tables below show the fair values of the items carried at amortized cost or fair value. They are distributed according to the fair value hierarchy. Financial assets reported at amortized cost in fair value hierarchy December 31, 2018 Fair value Book value Skr mn Level 1 Level 2 Level 3 Total Total Cash and cash equivalents 2,416 — — 2,416 2,416 Loans in the form of interest-bearing securities 287 37,379 — 37,666 36,781 Loans to credit institutions — 27,709 — 27,709 27,725 Loans to the public — 164,722 — 164,722 161,094 Total financial assets in fair value hierarchy 2,703 229,810 — 232,513 228,016 Financial liabilities reported at amortized cost in fair value hierarchy December 31, 2018 Fair value Book value Skr mn Level 1 Level 2 Level 3 Total Total Borrowing from credit institutions — 2,247 — 2,247 2,247 Debt securities issued — 191,932 — 191,932 190,913 Total financial liabilities in fair value hierarchy — 194,179 — 194,179 193,160 Financial assets reported at amortized cost in fair value hierarchy December 31, 2017 Loans and accounts receivable Fair value Book value Skr mn Level 1 Level 2 Level 3 Total Total Cash and cash equivalents 1,231 — — 1,231 1,231 Loans in the form of interest-bearing securities 550 41,802 — 42,352 41,125 Loans to credit institutions — 23,451 — 23,451 23,198 Loans to the public — 144,935 — 144,935 141,111 Total financial assets in fair value hierarchy 1,781 210,188 — 211,969 206,665 Financial liabilities reported at amortized cost in fair value hierarchy December 31, 2017 Other financial liabilities Fair value Book value Skr mn Level 1 Level 2 Level 3 Total Total Borrowing from credit institutions — 2,317 — 2,317 2,317 Debt securities issued — 160,044 — 160,044 159,095 Subordinated liabilities — 2,047 — 2,047 2,040 Total financial liabilities in fair value hierarchy — 164,408 — 164,408 163,452 Financial assets reported at fair value in fair value hierarchy December 31, 2018 Financial assets at fair value through profit or loss Available-for-sale(1) Skr mn Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Treasuries/governments bonds — 11,117 — 11,117 — — — — Other interest-bearing securities except loans — 48,665 — 48,665 — — — — Derivatives — 4,596 1,933 6,529 — — — — Total financial assets in fair value hierarchy — 64,378 1,933 66,311 — — — — (1) Due to the transition to IFRS 9, the financial assets classified as available-for-sale under IAS 39 are now classified as “Financial assets at fair value through profit or loss” Financial liabilities reported at fair value in fair value hierarchy December 31, 2018 Financial liabilities at fair value through profit or loss Skr mn Level 1 Level 2 Level 3 Total Debt securities issued — 16,789 47,898 64,687 Derivatives — 15,414 6,520 21,934 Total financial liabilities in fair value hierarchy — 32,203 54,418 86,621 Transfers were made between level 2 and level 3 during 2018 which amounted to Skr -2,124 million (year-end 2017: Skr – million). The transfers were due to improved classification. Financial assets reported at fair value in fair value hierarchy December 31, 2017 Financial assets at fair value through profit or loss Available-for-sale Skr mn Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Treasuries/governments bonds — — — — 4,382 — — 4,382 Other interest-bearing securities except loans — 113 — 113 — 39,694 — 39,694 Derivatives — 5,829 1,974 7,803 — — — — Total financial assets in fair value hierarchy — 5,942 1,974 7,916 4,382 39,694 — 44,076 Financial liabilities reported at fair value in fair value hierarchy December 31, 2017 Financial liabilities at fair value through profit or loss Skr mn Level 1 Level 2 Level 3 Total Debt securities issued — 20,426 42,995 63,421 Derivatives — 13,660 2,820 16,480 Total financial liabilities in fair value hierarchy — 34,086 45,815 79,901 There were no transfers made between levels during 2017. Financial assets and liabilities at fair value in Level 3, December 31, 2018 Gains (+) and Gains (+) and losses (-) losses (-) Currency Jan 1, Settlements Transfers to Transfers through profit or through other exchange-rate Dec 31, Skr mn 2018 Purchases & sales Level 3 from Level 3 loss(1) comprehensive income effects 2018 Debt securities issued -42,995 -13,199 9,490 -2,486 425 4,091 250 -3,474 -47,898 Derivatives, net -846 3 -43 -57 -6 -3,913 — 275 -4,587 Net assets and liabilities -43,841 -13,196 9,447 -2,543 419 178 250 -3,199 -52,485 Financial assets and liabilities at fair value in Level 3, December 31, 2017 Gains (+) and losses (-) Currency Jan 1, Settlements Transfers to Transfers through profit or exchange-rate Dec 31, Skr mn 2017 Purchases & sales Level 3 from Level 3 loss(1) effects 2017 Other interest-bearing securities except loans 257 — -250 — — -6 -1 — Debt securities issued -48,217 -19,077 24,627 — — 1,044 -1,372 -42,995 Derivatives, net -2,404 3 -4,342 — — -1,202 7,099 -846 Net assets and liabilities -50,364 -19,074 20,035 — — -164 5,726 -43,841 (1) Gains and losses through profit or loss, including the impact of exchange-rates, are reported as net interest income and net results of financial transactions. The unrealized fair value changes for assets and liabilities, including the impact of exchange-rates, held as of December 31, 2018, amounted to a Skr 157 million gain (year-end 2017: Skr 768 million loss) and are reported as net results of financial transaction Uncertainty of valuation of Level 3-instruments As the estimation of the parameters included in the models to calculate the market value of Level 3‑instruments is associated with subjectivity and uncertainty, SEK has, in accordance with IFRS 13, conducted an analysis of the difference in fair value of Level 3‑instruments using other established parameter values. Option models and discounted cash flows are used to value the Level 3‑instruments. For Level 3‑instruments with a longer duration where extrapolated discount curves are used, a sensitivity analysis has been conducted with regards to the interest. The revaluation of the portfolio is made using an interest rate shift of +/--10 basis points. For the Level 3‑instruments that are significantly affected by different types of correlations, which are not based on observable market data, a revaluation has been made by shifting the correlations. The basis for this sensitivity analysis is therefore the revaluation of the relevant part of the portfolio, where the correlations have been adjusted by +/--10 percentage points. After the revaluation is performed, the max/min value for each transaction is identified. For Level 3‑instruments that are significantly affected by non-observable market data, such as SEK’s own creditworthiness, a revaluation has been made by shifting the credit curve. The revaluation is made by shifting the credit spreads by +/‑10 basis points, which has been assessed as a reasonable change of SEK’s credit spread. The analysis shows the impact of the non-observable market data on the market value. In addition, the market value will be affected by observable market data. The result of the analysis corresponds with SEK’s business model where issued securities are linked with a matched hedging derivative. The underlying market data is used to evaluate the issued security as well as to evaluate the fair value of the derivative. This means that a change in fair value of the issued security, excluding SEK’s own credit spread, is offset by an equally large change in the fair value of the derivative. Sensitivity analysis -- level 3 December 31, 2018 Assets and liabilities Unobservable Range of estimates for Skr mn Fair value input unobservable input (1) Valuation method Sensitivity Max Sensitivity Min Equity -2,417 Correlation 0.70 - 0.07 Option Model 6 -6 Interest rate 972 Correlation 0.21 - (0.12) Option Model -95 90 FX -2,971 Correlation 0.84 - (0.94) Option Model 22 -19 Other -171 Correlation 0.53 - (0.01) Option Model 1 -1 Sum derivatives,net -4,587 -66 64 Equity -680 Correlation 0.70 - 0.07 Option Model -7 6 Credit spreads 10BP - (10BP) Discounted cash flow 28 -28 Interest rate -47,090 Correlation 0.21 - (0.12) Option Model 97 -94 Credit spreads 10BP - (10BP) Discounted cash flow 116 -113 FX -32 Correlation 0.84 - (0.94) Option Model -23 20 Credit spreads 10BP - (10BP) Discounted cash flow 95 -96 Other -96 Correlation 0.53 - (0.01) Option Model -1 1 Credit spreads 10BP - (10BP) Discounted cash flow 3 -3 Sum debt securities issued -47,898 308 -307 Total effect on total comprehensive income(2) 242 -243 Sensitivity analysis -- level 3 December 31, 2017 Assets and liabilities Unobservable Range of estimates for Skr mn Fair value input unobservable input (1) Valuation method Sensitivity Max Sensitivity Min Equity -171 Correlation 0.78 - (0.02) Option Model 1 -1 Interest rate 1,001 Correlation 0.19 - (0.37) Option Model -192 178 FX -1,512 Correlation 0.89 - (0.81) Option Model 24 -22 Other -164 Correlation 0.63 - (0.05) Option Model 0 0 Sum derivatives,net -846 -167 155 Equity -680 Correlation 0.78 - (0.02) Option Model -1 1 Credit spreads 10BP - (10BP) Discounted cash flow 11 -11 Interest rate -42,168 Correlation 0.19 - (0.37) Option Model 195 -181 Credit spreads 10BP - (10BP) Discounted cash flow 106 -103 FX -34 Correlation 0.89 - (0.81) Option Model -25 23 Credit spreads 10BP - (10BP) Discounted cash flow 92 -92 Other -113 Correlation 0.63 - (0.05) Option Model 0 0 Credit spreads 10BP - (10BP) Discounted cash flow 3 -3 Sum debt securities issued -42,995 381 -366 Total effect on total comprehensive income(2) 214 -211 (1) Represents the range of correlations that SEK has determined market participants would use when pricing the instruments. The structures are represented both in the security and the derivative hedging the bond. The sensitivity analysis is based on a shift in the interval for correlation between 0.1 and -0.1. The correlation is expressed as a value between 1 and -1, where 0 indicates no relationship, 1 indicates maximum positive relationship and -1 indicates maximum negative relationship. The maximum correlation in the range of unobservable inputs can thus be from 1 to -1. The table presents the scenario analysis of the effect on Level 3‑instruments, with maximum positive and negative changes. (2) Of the total impact on total comprehensive income, the sensitivity effect of SEK’s own credit spread was Skr 242 million (year-end 2017: Skr 211 million) under a maximum scenario and Skr -240 million (year-end 2017: Skr -208 million) under a minimum scenario. Fair value related to credit risk Fair value originating from credit risk The period's change in fair value origination (- liabilities increase/ + liabilities decrease) from credit risk (+income/ - loss) Skr mn December 31, 2018 December 31, 2017 2018 2017 2016 CVA/DVA, net(1) -29 -8 -21 6 9 OCA(2) -150 -578 374 -195 1 (1) Credit value adjustment (CVA) and Debt value adjustment (DVA) reflects how the counterparties’ credit risk as well as SEK’s own credit rating affects the fair value of derivatives. (2) Own credit adjustment (OCA) reflects how the changes in SEK’s credit rating affects the fair value of financial liabilities measured at fair value through profit and loss. |
Derivatives and hedge accountin
Derivatives and hedge accounting | 12 Months Ended |
Dec. 31, 2018 | |
Derivatives and hedge accounting | |
Derivatives and hedge accounting | Note 14. Derivatives and hedge accounting Derivatives by categories December 31, 2018 December 31, 2017 Assets Liabilities Nominal Assets Liabilities Nominal Skr mn Fair value Fair value amounts Fair value Fair value amounts Interest rate-related contracts 3,842 10,207 280,808 3,781 9,132 245,788 Currency-related contracts 2,630 8,799 162,870 3,772 6,879 139,614 Equity-related contracts 57 2,755 16,014 250 303 13,246 Contracts related to commodities, credit risk, etc. — 173 -1,920 — 166 -1,183 Total derivatives 6,529 21,934 457,772 7,803 16,480 397,465 of which derivatives used for economic hedges, December 31, 2018 December 31, 2017 accounted for as held-for-trading under IFRS 9 (2017: IAS39) Assets Liabilities Nominal Assets Liabilities Nominal Skr mn Fair value Fair value amounts Fair value Fair value amounts Interest rate-related contracts 2,767 7,479 129,470 2,603 6,358 119,239 Currency-related contracts 1,728 5,177 132,611 1,501 4,003 92,133 Equity-related contracts 57 2,755 16,014 250 303 13,246 Contracts related to commodities, credit risk, etc. — 173 -1,920 — 166 -1,183 Total derivatives 4,552 15,584 276,175 4,354 10,830 223,435 December 31, 2018 December 31, 2017 of which derivatives in fair-value hedges Assets Liabilities Nominal Assets Liabilities Nominal Skr mn Fair value Fair value amounts Fair value Fair value amounts Interest rate-related contracts 1,075 2,728 151,338 1,178 2,774 126,549 Currency-related contracts 902 3,622 30,260 2,271 2,876 47,481 Total derivatives 1,977 6,350 181,598 3,449 5,650 174,030 Maturity analysis of the nominal amounts(1) of hedging instruments December 31, 2018 1 month 3 months 1 year Skr mn < 1 month < 3 months < 1 year < 5 years > 5 years Interest rate-related contracts Hedge of fixed rate assets 40 40 220 6,769 6,234 Hedge of fixed rate liabilities 10 8,967 34,248 100,167 3,798 Currency-related contracts Hedge of fixed rate assets 3 12 545 2,195 191 Hedge of fixed rate liabilities — 3,317 3,672 13,936 5,990 (1) Nominal amounts before off-set. Derivatives used as fair value hedge December 31, 2018 1 month < 3 months < 1 year < Skr mn < 1 month 3 months 1 year 5 years > 5 years Cash inflows (assets) 261 518 1,138 2,311 1,858 Cash outflows (liabilities) -99 -1,064 -1,095 -4,721 -343 Net cash inflow 162 -546 43 -2,410 1,515 Derivatives used as fair value hedge December 31, 2017 1 month < 3 months < 1 year < Skr mn < 1 month 3 months 1 year 5 years > 5 years Cash inflows (assets) 47 238 700 3,428 459 Cash outflows (liabilities) 8 56 -977 -1,526 -869 Net cash inflow 55 294 -277 1,902 -410 The carrying amount of hedged items in fair value hedge relationships, and the accumulated amount of fair value hedge adjustments included in these carrying amounts . December 31, 2018 Assets Fair value hedge Skr mn Book value adjustments Loans in the form of interest-bearing securities 4,244 499 Loans to credit institutions 206 3 Loans to the public 12,904 648 Total 17,354 1,150 December 31, 2018 Liabilities Fair value hedge Skr mn Book value adjustments Debt securities issued 163,172 1,000 Subordinated liabilities — — Total 163,172 1,000 Cash-flow hedges reclassified to profit or loss during the year Skr mn 2018 2017 Interest income 25 91 Interest expense — — Total(1) 25 91 (1) Relates to previously terminated cash flow hedges where comprehensive income is allocated over the previously hedged item’s remaining maturity. It is SEK’s risk management strategy and objective to identify its material foreign currency and interest rate exposures and to manage those exposures with appropriate derivative instruments or non-derivative alternatives. SEK has the intention to, as much as possible, achieve fair value hedge accounting for transactions entered into for economic hedging purposes. SEK primarily sets interest rate terms based on the various needs and preferences of customers and counterparties. Consequently, assets and liabilities can to some extent have different fixed interest periods, which leads to interest rate risk. Using different derivatives, the original interest rate risk in assets and liabilities are normally transformed from fixed to floating interest terms in currencies with well functioning markets. EUR, USD and Skr are preferably used. It is SEK’s objective to mitigate the risk of changes in fair value of the underlying hedged item due to changes in benchmark interest rates, i.e. to convert a fixed interest rate in a financial asset or liability into a floating rate. For that SEK uses interest rate swaps, or a proportion of interest rate swaps, swapping fixed to floating interest rates. SEK’s granting of credits and a large portion of its borrowing can take place in the currency of the borrower’s and investor’s choice. It is therefore seldom that borrowing and lending are made in the same currency and therefore directly balance each other. Differences in exposures to individual currencies that exist between different transactions are fully matched with the aid of various derivatives, primarily currency swaps. It is SEK’s objective to mitigate the risk of changes in fair value due to changes in FX- and interest rates. For example, converting a fixed interest rate in a financial asset or liability into a variable rate financial asset or liability denominated in SEK’s functional currency Skr. For that, SEK uses cross currency interest rate swap or a proportion of these swaps, swapping fixed to floating interest rates in Skr. For more disclosures regarding SEK’s hedge accounting, see Consolidated Statement of Changes in Equity, Note 1 Significant accounting policies, Note 4 Net results of financial transactions and Note 30 Risk and Capital Management. In accordance with SEK’s policies with regard to counterparty, interest rate, currency exchange-rate, and other exposures, SEK uses, and is a party to, differ-ent kinds of derivative instruments, mostly various interest rate-related and currency exchange-rate-related contracts. These contracts are carried at fair value in the statements of financial position on a contract-by-contract basis. SEK uses derivatives to hedge risk exposure inherent in financial assets and liabilities. Derivatives are measured at fair value by using market quoted rates where available. If market quotes are not available, valuation models are used. SEK uses models to adjust the net exposure fair value for changes in counter-parties’ credit quality. The models used include both directly observable and non-observable market parameters. The majority of SEK’s derivative contracts are what are known as OTC (over the counter) derivatives, i.e. derivative contracts that are not transacted on an exchange. SEK’s derivative transactions that are not transacted on an exchange are entered into under ISDA Master Netting Agreements. In general, under such agreements the amounts owed by each counterparty in respect of all transactions outstanding in the same currency under the agreement are aggregated into a single net amount payable by one party to the other. In certain circumstances, for example when a credit event such as a default occurs and all outstanding transactions under the agreement are terminated, the termination value is assessed and only a single net amount is due or payable in settlement of all transactions. SEK endeavors to only enter into derivatives transactions with counterparties in jurisdictions where such netting is enforceable when such events occur. The above ISDA arrangements do not meet the criteria for offsetting in the Statement of Financial Position. This is because such agreements create a right of set-off of recognized amounts that is enforceable only following an event of default, insolvency or bankruptcy of SEK or the counterparties. In addition, SEK and its counterparties do not intend to settle on a net basis or to realize the assets and settle the liabilities simultaneously. The ISDA Master Netting Agreements are complemented by supplementary agreements providing for the collateralization of counterparty exposure. SEK receives and accepts collateral in the form of cash. Such collateral is subject to the standard industry terms of an ISDA Credit Support Annex (CSA). The disclosures set out in the tables below include financial assets and financial liabilities that are subject to an enforceable master netting arrangement or similar agreement that cover similar financial instruments. SEK only enters into derivative transactions that are subject to enforceable master netting agreements or similar agreements. Derivative assets and derivative liabilities in relation to central clearing counterparties are offset in the Statement of Financial Position. Financial assets subject to offsetting, enforceable master netting arrangements and similar agreements December 31, 2018 December 31, 2017 Skr mn Derivatives Derivatives Gross amounts of recognized financial assets 7,200 7,803 Amounts offset in the Statement of Financial Position -671 — Net amounts of financial assets presented in the Statement of Financial Position 6,529 7,803 Amounts subject to an enforceable master netting arrangement or similar agreement not offset in the Statement of Financial Position related to: Financial instruments -4,324 -5,713 Cash collateral received -1,805 -1,784 Net amount 400 306 Financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements December 31, 2018 December 31, 2017 Skr mn Derivatives Derivatives Gross amounts of recognized financial liabilities 22,648 16,480 Amounts offset in the Statement of Financial Position -714 — Net amounts of financial liabilities presented in the Statement of Financial Position 21,934 16,480 Amounts subject to an enforceable master netting arrangement or similar agreement not offset in the Statement of Financial Position related to: Financial instruments -4,324 -5,713 Cash collateral paid -15,537 -9,031 Net amount 2,073 1,736 |
Shares
Shares | 12 Months Ended |
Dec. 31, 2018 | |
Shares | |
Shares | Note 15. Shares Venantius AB, domiciled in Stockholm, Sweden and wholly owned by AB Svensk Exportkredit, was wound down in April 2018. The wind down resulted in a loss amounting to Skr 2 million. The Parent Company in 2017 gave a contribution to Venantius AB. The net profit for Venantius AB for the year 2017 amounted to Skr 10 million. Dividend to Parent Company amounted 2017 to Skr 1 million Since March 2018 SEKETT AB is a wholly owned, non-active, subsidiary to AB Svensk Exportkredit with a share capital of Skr 50 thousand. Shares in subsidaries December 31, 2018 December 31, 2017 Skr mn Book value Number of shares Book value Number of shares Venantius AB (reg.no 556449-5116) — — 24 5,000,500 SEKETT AB (reg.no 559132-9668) 0 50 — — |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2018 | |
Other assets. | |
Other assets | Note 16. Other assets Skr mn Dec 31, 2018 Dec 31, 2017 Claim against the State for CIRR loans and concessionary loans 3,915 3,309 Cash receivables, funding operations 960 198 Other 105 49 Total 4,980 3,556 |
Prepaid expenses and accrued re
Prepaid expenses and accrued revenues | 12 Months Ended |
Dec. 31, 2018 | |
Prepaid expenses and accrued revenues | |
Prepaid expenses and accrued revenues | Note 17. Prepaid expenses and accrued revenues Skr mn Dec 31, 2018 Dec 31, 2017 Interest income accrued 2,643 2,075 Prepaid expenses and other accrued revenues 14 16 Total 2,657 2,091 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt | |
Debt | Note 18. Debt December 31, 2018 Total debt excluding debt Total debt Skr mn securities issued securities — issued Total Exchange-rate related contracts — 2,097 2,097 Interest rate related contracts 2,247 252,624 254,871 Equity related contracts — 783 783 Contracts related to raw materials, credit risk etc — 96 96 Total debt outstanding 2,247 255,600 257,847 of which denominated in: Skr 2,098 USD 166,827 JPY 34,929 EUR 21,188 Other currencies 32,805 December 31, 2017 Total debt excluding debt Total debt Skr mn securities issued securities — issued Total Exchange-rate related contracts — 33,016 33,016 Interest rate related contracts 2,317 188,607 190,924 Equity related contracts — 779 779 Contracts related to raw materials, credit risk etc — 114 114 Total debt outstanding 2,317 222,516 224,833 of which denominated in: Skr 1,116 USD 119,112 JPY 32,988 EUR 29,191 Other currencies 42,426 SEK has the following major Borrowing programs in place: Value outstanding (1) Skr mn December 31, 2018 December 31, 2017 Medium-term note program: Unlimited Euro Medium-Term Note Programme 99,710 98,189 Unlimited SEC-registered U.S. Medium-Term Note Programme 143,109 111,444 Unlimited Swedish Medium-Term Note Programme 261 256 Unlimited MTN/STN AUD Debt Issuance Programme 3,875 3,607 Commercial paper program: USD 3,000,000,000 U.S. Commercial Paper Programme 4,723 1,637 USD 4,000,000,000 Euro-Commercial Paper Programme 1,961 — (1) Amortized cost excluding fair value adjustments. Liabilities in financing activities Non-cash items Exchange-rate Unrealized changes in fair Skr mn December 31, 2017 Cash flow difference value December 31, 2018 Senior debt 224,833 25,102 15,997 -8,085 257,847 Subordinated debt 2,040 -2,322 220 62 — Derivatives - net 8,677 1,830 -3,173 8,039 15,373 Total liabilities in financing activities 235,550 24,610 13,044 16 273,220 |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Other liabilities | |
Other liabilities | Note 19. Other liabilities Skr mn Dec 31, 2018 Dec 31, 2017 Cash payables, debt purchases 682 668 Other 387 158 Total 1,069 826 |
Accrued expenses and prepaid re
Accrued expenses and prepaid revenues | 12 Months Ended |
Dec. 31, 2018 | |
Accrued expenses and prepaid revenues. | |
Accrued expenses and prepaid revenues | Note 20. Accrued expenses and prepaid revenues Skr mn Dec 31, 2018 Dec 31, 2017 Interest expenses accrued 2,542 2,023 Other accrued expenses and prepaid revenues 41 40 Total 2,583 2,063 |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2018 | |
Provisions | |
Provisions | Note 21. Provisions Consolidated Group Skr mn Dec 31, 2018 Dec 31, 2017 Pension liabilities (see Note 5) 80 40 Long term employee benefit 3 4 Off balance, expected credit losses(1) 2 — Termination reserve — 1 Total 85 45 (1) Provisions for expected credit losses are on the off-balance-sheet, in accordance with IFRS 9. See Note 9. |
Subordinated debt securities
Subordinated debt securities | 12 Months Ended |
Dec. 31, 2018 | |
Subordinated debt securities | |
Subordinated debt securities | Note 22. Subordinated liabilities December 31, December 31, Skr mn 2018 2017 Fixed Rate Resettable Dated Subordinated Instruments(1) — 2,040 Total subordinated liabilities outstanding — 2,040 of which denominated in: Swedish kronor — — Foreign currencies — 2,040 2018 2017 Total interest expense 54 61 of which accrued interest(2) — 8 (1) SEK´s fixed rate resettable dated subordinated debt totaling USD 250 million was redeemed on the “optional redemption date” November 14, 2018 in accordance with the loan terms and under specific consent to do so from the Swedish Financial Supervisory Authority. (2) The accrued interest is attributable to subordinated borrowing and is included in ”Accrued expenses and prepaid revenues”. Subordinated debt means debt for which, in the event of the obligor being declared bankrupt, the holder would be repaid after other creditors, but before shareholders. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity | |
Equity | Note 23. Equity Consolidated Group December 31, December 31, Skr mn 2018 2017 Share capital 3,990 3,990 Legal reserve — — Fund for internally developed software — — Reserves/Fair value reserve Hedge reserve 6 25 Fair value reserve — 9 Own credit risk -117 — Defined benefit plans -42 -4 Retained earnings 14,402 13,554 Total equity 18,239 17,574 The total number of shares is 3,990,000 with a quota value of Skr 1,000. The hedge reserve comprises the cumulative effective portion of hedging derivatives in connection with cash-flow hedges and is reported in other comprehensive income. The hedge reserve is reported net after tax. Own credit risk consists of gains and losses that arise from changes in SEK´s own credit risk on liabilities designated at fair value. These are recognized in Other comprehensive income under the reserve for own credit risk and are not reclassified to profit or loss in the financial statements of the Group. In the financial statement for the Parent Company, these gains and losses continue to be recognized under Net results of financial transactions. Fund for internally developed software represents expenses that are directly attributable to large investments in the development of IT systems. The entire equity is attributable to the shareholder of the Parent Company. Consolidated Group December 31, December 31, Skr mn 2018 2017 Restricted equity 5,240 6,122 Unrestricted equity 12,999 11,452 Total equity 18,239 17,574 The Legal reserve reported in the Parent Company represents previous demands for statutory provision to non-distributable capital. The requirement was abolished January 1, 2006, and prior provisions remain. For information on the objectives, policies and processes for managing capital, see Note 30. Proposal for the distribution of profits The results of the Consolidated Group’s and the Parent Company’s operations during the year and its financial position at December 31, 2018, can be seen in the Statement of Comprehensive Income, Statement of Financial Position and Statement of Cash Flows for the Consolidated Group as well as the income statement, balance sheet and statement of cash flows for the Parent Company and related Notes. The Board has decided to propose to the Annual General Meeting the payment of a dividend of Skr 194 million (2017: Skr 232 million), in accordance with the company’s dividend policy. The following proposal regarding distribution of profits relates to the Parent Company. At the disposal of the Annual General Meeting 13,054 The Board of Directors proposes that the Annual General Meeting dispose of these funds as follows: - dividend to the shareholder of Skr 48.70 per share, amounting to 194 - remaining disposable funds to be carried forward 12,860 |
Pledged assets and contingent l
Pledged assets and contingent liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Pledged assets and contingent liabilities | |
Pledged assets and contingent liabilities | Note 24. Pledged assets and contingent liabilities Skr mn Dec 31, 2018 Dec 31, 2017 Collateral provided Cash collateral under the security agreements for derivative contracts 16,374 10,314 Contingent liabilities Guarantee commitments 4,032 3,360 Commitments Committed undisbursed loans 50,814 72,914 Binding offers 744 1,211 |
CIRR-system
CIRR-system | 12 Months Ended |
Dec. 31, 2018 | |
CIRR-system | |
CIRR-system | Note 25. CIRR-system Pursuant to the Company’s assignment as stated in its owner instruction issued by the Swedish government, SEK administers credit granting in the Swedish officially supported system for export credits (CIRR-system). SEK receives compensation from the Swedish government in the form of an administrative fee, which is calculated based on the principal amount outstanding. All assets and liabilities related to the CIRR-system are included in the Consolidated Statement of Financial Position and in the Parent Company’s balance sheet since SEK bears the credit risk for the lending and acts as the counterparty for lending and borrowing. Unrealized revaluation effects on derivatives related to the CIRR-system are recognized on a net basis under Note 16 Other Assets in the item Claim against the State for CIRR-loans and concessionary loans. SEK has determined that the CIRR-system should be considered an assignment whereby SEK acts as an agent on behalf of the Swedish government, rather than being the principal in individual transactions. Accordingly, interest income, interest expense and other costs pertaining to CIRR-system assets and liabilities are not recognized in SEK’s Statement of Comprehensive Income. The administrative compensation received by SEK from the Swedish government is recognized as part of interest income in SEK’s Statement of Comprehensive Income since the commission received in compensation is equivalent to interest. Any income for SEK that arises from its credit arranger role is recognized in SEK’s Statement of Comprehensive Income under net interest income. Refer also to Note 1 (f). The administrative fee paid by the state to SEK as compensation is recognized in the CIRR-system as administrative compensation to SEK. Arrangement fees to SEK are recognized together with other arrangement fees such as interest expenses. Refer to the following tables. In addition to the CIRR-system, SEK administers the Swedish government’s previous concessionary credit program according to the same principles as the CIRR-system. No new lending is being offered under the concessionary credit program. As of December 31, 2018, loans outstanding amounted to Skr 663 million (year-end 2017: Skr 754 million) and the government noted a negative result of Skr -42 million (2017: Skr -48 million; 2016: Skr 53 million). Administrative compensation to SEK amounted to Skr-2 million (2017: Skr -2 million; 2016: Skr-2 million). Statement of comprehensive income for the CIRR-system Skr mn 2018 2017 2016 Interest income 1,624 1,343 1,185 Interest expenses -1,480 -1,115 -961 Net interest income 144 228 224 Interest compensation 20 26 121 Foreign exchange effects 9 -6 4 Profit before compensation to SEK 173 248 349 Administrative remuneration to SEK -155 -123 -114 Operating profit CIRR-system 18 125 235 Reimbursement to (-) / from (+) the State -18 -125 -235 Statement of Financial Position for the CIRR-system (included in SEK’s statement of financial position) December 31, December 31, Skr mn 2018 2017 Cash and cash equivalents — 10 Loans 69,922 49,124 Derivatives 502 522 Other assets 4,090 3,472 Prepaid expenses and accrued revenues 561 364 Total assets 75,075 53,492 Liabilities 70,144 49,252 Derivatives 4,408 3,789 Accrued expenses and prepaid revenues 523 451 Total liabilities and equity 75,075 53,492 Commitments Committed undisbursed loans 47,664 69,161 Binding offers 616 628 |
Capital adequacy
Capital adequacy | 12 Months Ended |
Dec. 31, 2018 | |
Capital adequacy. | |
Capital adequacy | Note 26. Capital adequacy Capital adequacy analysis In 2018, the subsidiary Venantius AB has been liquidated, which means that capital requirements are calculated at the Parent Company level and no longer on a consolidated level. The capital situation comprises the Parent Company AB Svensk Exportkredit. Parent Company December 31, 2018 December 31, 2017 Capital ratios excl. buffer requirements(1) Common Equity Tier 1 ratio 20.1 % 20.6 % Tier 1 capital ratio 20.1 % 20.6 % Total capital ratio(2) 20.1 % 23.0 % Institution specific Common Equity Tier 1 capital requirement incl. buffers(3) 8.5 % 8.4 % of which Common Equity Tier 1 capital requirement 4.5 % 4.5 % of which capital conservation buffer 2.5 % 2.5 % of which countercyclical buffer 1.5 % 1.4 % of which systemic risk buffer — — Common Equity Tier 1 capital available as a buffer(4) 12.1 % 14.6 % Total capital ratio according to Basel I floor n.a. 21.9 % (1) Capital ratios excluding buffer requirements are the quotients of the relevant capital metric and the total Risk exposure amount. The minimum requirements, which were implemented in Sweden without a transitional period, are 4.5 percent, 6.0 percent and 8.0 percent for Common Equity Tier 1 capital, Tier 1 capital and total own funds, respectively. The minimum requirements apply in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council of June 26, 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (CRR). (2) The reduction in Total capital ratio in 2018 is mainly due to the fact that SEK has exercised its right to call the Tier 2 eligible subordinated debt instrument. See footnote in the table “Own funds - Adjusting items” below. (3) Expressed as a percentage of the total Risk exposure amount. (4) The Common Equity Tier 1 capital ratio as reported less its minimum requirement of 4.5 percent plus an additional 3.5 percent. The latter component consists of Common Equity Tier 1 capital used to meet the minimum requirement for total own funds of 8.0 percent, since SEK does not have any Additional Tier 1 other than Common Equity Tier 1 capital and nor any Tier 2 capital. Parent Company December 31, December 31, Own funds – adjusting items - Skr mn 2018 2017(5) Share capital(1) 3,990 3,990 Retained earnings 11,239 12,782 Accumulated other comprehensive income and other reserves(2) 1,256 30 Independently reviewed profit net of any foreseeable charge or dividend 1,615 540 Common Equity Tier 1 (CET1) capital before regulatory adjustments 18,100 17,342 Additional value adjustments due to prudent valuation -496 -396 Intangible assets -43 -66 Fair-value reserves related to gains or losses on cash-flow hedges -6 -25 Gains or losses on liabilities valued at fair value resulting from changes in own credit standing 112 446 Negative amounts resulting from the calculation of expected loss amounts -136 -65 Total regulatory adjustments to Common Equity Tier 1 capital -569 -106 Total Common Equity Tier 1 capital 17,531 17,236 Additional Tier 1 capital — — Total Tier 1 capital 17,531 17,236 Tier 2-eligible subordinated debt(3) — 2,049 Credit risk adjustments(4) — — Total Tier 2 capital — 2,049 Total Own funds 17,531 19,285 Total Own funds according to Basel I floor n.a. 19,350 (1) For a detailed description of the instruments constituting share capital, see Note 23. (2) The equty-portions of untaxed reserves is included in the line “Accumulated other comprehensive income and other reserves”. (3) In June 2018, SEK received permission from its competent authority (Swedish FSA) to call its Tier 2 eligible subordinated debt instrument in accordance with its terms. As a result of the permission from Swedish FSA, SEK was required to reduce the level of own funds by the outstanding principal amount of the instrument. The Board of Directors of SEK in September 2018 decided that SEK would exercise its right to call the instrument ( see Note 22) and the instrument was redeemed on November 14, 2018. (4) The expected loss amount calculated under the IRB approach is a gross deduction from own funds. The gross deduction is decreased by impairment related to exposures for which expected loss is calculated. Excess amounts of such impairment will increase own funds. This increase is limited to 0.6 percent of SEK’s risk exposure amount under the IRB approach related to exposures to central governments, corporates and financial institutions. As of December 31, 2018, the limitation rule had no effect, as in 2017. (5) Comparative figures are shown at the level of the Consolidated Group, since a consolidated level of the capital situation was in effect in 2017. Minimum capital requirements exclusive of buffers Parent Company December 31, 2018 December 31, 2017 Risk Min. Risk Min. exposure capital exposure capital Skr mn EAD(1) amount requirement EAD(1) amount requirement Credit risk, standardized approach Central governments — — — — — — Regional governments — — — — — — Multilateral development banks — — — — — — Corporates 1,701 1,701 136 1,316 1,316 105 Total credit risk, standardized approach 1,701 1,701 136 1,316 1,316 105 Credit risk, IRB approach Central governments 171,572 9,905 792 161,429 9,331 747 Financial institutions(2) 33,953 9,880 790 38,163 12,688 1,015 Corporates(3) 113,987 59,486 4,760 104,630 53,763 4,301 Non-credit-obligation assets 90 90 7 121 121 10 Total credit risk IRB approach 319,602 79,361 6,349 304,343 75,903 6,073 Credit valuation adjustment risk n.a. 2,037 163 n.a. 1,989 159 Foreign exchange risk n.a. 879 70 n.a. 1,326 106 Commodity risk n.a. 10 1 n.a. 13 1 Operational risk n.a. 3,066 245 n.a. 3,284 263 Total 321,303 87,054 6,964 305,659 83,831 6,707 Adjustment according to Basel I floor n.a. n.a. n.a. n.a. 4,503 360 Total incl. Basel I floor n.a. n.a. n.a. n.a. 88,334 7,067 (1) Exposure at default (EAD) shows the size of the outstanding exposure at default. (2) Of which counterparty risk in derivative contracts: EAD 4,525 million (year-end 2017: Skr 4,131 million), Risk exposure amount of Skr 1,668 million (year-end 2017: Skr 1,574 million) and Capital requirement of Skr 133 million (year-end 2017: Skr 126 million) (3) Of which related to Specialized lending: EAD 3,400 million (year-end 2017: Skr 2,478 million), Risk exposure amount of Skr 2,157 million (year-end 2017: Skr 1,643 million) and Capital requirement of Skr 173 million (year-end 2017:Skr 131 million). Credit risk by PD grade The tables illustrate the exposure at default (EAD), the portion of the exposure that will be lost in the event of a default (LGD) and the probability of default or cancellation of payments by a counterparty (PD) for the exposure classes where PD is estimated internally. Average PD is calculated without consideration of PD floors. Average PD and LGD are weighted by EAD,the average risk weight is the quotient of risk exposure amount and EAD. December 31, 2018 December 31, 2017 AAA A+ A+ BBB+ to AA- to A– BBB+ BB+ to B– CCC to D AAA to AA- to A– to BBB– BB+ to B– CCC to D 0.003– 0.02– to BBB– 0.54– 27.27– 0.003– 0.03– 0.12– 0.53– 25.29– Skr mn 0.01% 0.07% 0.12–0.32% 6.80% 100% 0.02% 0.07% 0.32% 6.47% 100% Central governments EAD 163,603 7,064 — 906 — 153,496 7,107 — 826 — Average PD in % 0.004 0.04 — 1.5 — 0.004 0.04 — 0.9 — Average LGD in % 45.0 45.0 — 45.0 — 45.0 45.0 — 45.0 — Average risk weight in % 4.6 18.8 — 112.1 — 4.7 19.0 — 93.6 — December 31, 2018 December 31, 2017 A+ A+ AAA to A– BBB+ BB+ to B– CCC to D to A– BBB+ BB+ to B– CCC to D to AA- 0.01- 0.06– to BBB– 0.54– 28.60– AAA to AA- 0.06– to BBB– 0.54– 28.60– Skr mn 0.04% 0.12% 0.17–0.34% 8.40% 100% 0.01–0.04% 0.12% 0.17–0.34% 8.40% 100% Financial institutions EAD 10,323 21,926 1,345 359 — 9,368 25,926 1,722 1,149 — Average PD in % 0.04 0.08 0.23 1.31 — 0.04 0.08 0.23 0.84 — Average LGD in % 43.8 44.2 45.0 45.0 — 41.6 44.3 45.0 45.0 — Average risk weight in % 20.1 29.3 66.0 135.5 — 22.3 31.3 65.1 117.8 — Corporates EAD 7,154 22,379 60,943 20,072 39 7,871 18,515 59,574 16,153 40 Average PD in % 0.03 0.10 0.25 0.79 63.11 0.03 0.10 0.25 0.81 65.59 Average LGD in % 45.0 45.0 45.0 45.0 45.0 45.0 45.0 45.0 45.0 45.0 Average risk weight in % 18.6 33.0 51.5 85.5 136.2 18.5 33.6 51.3 85.6 127.1 Credit risks For risk classification and quantification of credit risk, SEK uses an internal ratings-based (IRB) approach. The Swedish FSA has approved SEK’s IRB approach. Specifically, SEK applies the foundation IRB approach. Under the foundation IRB approach, the company determines the PD within one year of each of its counterparties, while the remaining parameters are established in accordance with the CRR. Certain exposures are, by permission from the Swedish FSA, exempted from application of the IRB approach and, instead, the standardized approach is applied for calculating the capital requirement. For further information regarding these exposures see the Risk measurement section in Note 27.Counterparty risk exposure amounts in derivative contracts are calculated in accordance with the mark-to-market approach. Credit valuation adjustment risk A capital requirement for credit valuation adjustment risk is calculated for all OTC derivatives, except for credit derivatives used as credit-risk hedges and transactions with a qualifying central counterparty. SEK calculates this capital requirement using the standardized approach. Foreign exchange risk Foreign exchange risk is calculated with the standardized approach, whereas the scenario approach is used for calculating the gamma and volatility risks. Commodity risk Own funds requirements for commodity risk are calculated using the simplified approach under the standardized approach, and where the scenario approach is used for calculating the gamma and volatility risks. Operational risk The capital requirement for operational risk is calculated with the standardized approach, whereby the company’s operations are divided into business areas as defined in the CRR. The capital requirement for each area is calculated by multiplying a factor, depending on the business area, by an income indicator. The factors applicable for SEK are 15 percent and 18 percent. The income indicators consist of the average operating income for the past three fiscal years for each business area. Transitional rules On January 1, 2018, capital requirements and reporting applicable to the Basel I floor ceased to apply. The Basel I floor constituted a minimum capital requirement introduced as a transitional rule in 2007 that was valid until 2017. The capital adequacy ratios reflect the full impact of IFRS 9 as no transitional rules for IFRS9 are utilized. Capital buffer requirements SEK is to meet capital buffer requirements with Common Equity Tier 1 capital. SEK has not been classified as a systemically important institution. Accordingly, the capital buffer requirements for systemically important institutions that entered into force on January 1, 2016 do not apply to SEK. There is no systemic risk buffer applicable for SEK that is active at the moment. A countercyclical capital buffer rate of 2.0 percent is applied to exposures located in Sweden as of March 19, 2017. In September 2018, the Swedish FSA (FI) decided to raise the countercyclical buffer rate from 2.0 to 2.5 per cent. The amendments will enter into force on September 19, 2019. At December 31, 2018, the capital requirement related to credit-risk exposures in Sweden was 70 percent (year-end 2017: 67 percent) of the total capital requirement regardless of location, this fraction is also the weight applied to the Swedish buffer rate when calculating SEK’s countercyclical capital buffer. Buffer rates activated in other countries may impact SEK, but as most capital requirements from relevant credit exposures are related to Sweden, the potential effect is limited. At December 31, 2018, the contribution to SEK’s countercyclical capital buffer from buffer rates in other countries was 0.08 percentage points (year-end 2017: 0.05 percentage points). Leverage ratio December 31, December 31, Skr mn 2018 2017 Exposure measure for the leverage ratio On-balance-sheet exposures 281,529 249,244 Off-balance-sheet exposures 33,159 42,168 Total exposure measure 314,688 291,412 Leverage ratio 5.6 % 5.9 % The leverage ratio is a metric introduced in 2015. Currently, there is no minimum requirement. The leverage ratio is defined in the CRR as the quotient of the Tier 1 capital and an exposure measure. The exposure measure consists of assets, with special treatment of derivatives among other items, and off-balance-sheet credit-risk exposures that have been weighted with a factor depending on the type of exposure. The leverage ratio reflects the full impact of IFRS 9 as no transitional rules are utilized. Internally assessed capital adequacy December 31, December 31, Skr mn 2018 2017 Credit risk 7,008 6,898 Operational risk 239 142 Market risk 1,094 1,573 Other risks 163 170 Capital planning buffer 1,966 2,005 Total 10,470 10,788 SEK regularly conducts an internal capital adequacy assessment process (ICAAP), during which the Company determines how much capital is needed to cover its risks. The result of SEK’s capital adequacy assessment is presented above. For more information regarding the ICAAP and its methods, please see Note 30. |
Risk information
Risk information | 12 Months Ended |
Dec. 31, 2018 | |
Risk information | |
Risk information | Note 27. Risk information For further information on SEK’s risk management, see Note 30. Consolidation of SEK pursuant to the supervisory regulations does differ from the consolidation made in the Consolidated Financial Statements for 2018, as SEKETT AB is not a financial company and no consolidation of SEK pursuant to the supervisory regulation was made. Since no subsidiary is an institute pursuant to the CRR definition, subsidiaries are not subject to the supervisory regulations on an individual basis. The table of credit quality as per category in the Statement of Financial Position and the table illustrating the link between the Statement of Financial Position categories and exposures under the CRR contain carrying amounts. Other tables show amounts in accordance with the capital requirements calculations, however before application of conversion factors. Credit risk Credit risk is defined as the risk of losses due to the failure of a credit or an arrangement similar to that of a credit to be fulfilled. Credit risk is divided into issuer risk, counterparty risk, concentration risk, settlement risk and country risk (including transfer risk). SEK’s credit risks are limited using a risk-based selection of counterparties and are further mitigated by the use of guarantees, netting agreements, collateral and other forms of collateral. SEK’s appetite for credit risk is significantly greater than its appetite for other risks. Risk management The Risk policy and the Credit Policy The Risk Policy and the Credit Policy issued by the Board, and the Credit Instruction issued by the Board’s Credit Committee are the foundations upon which SEK’s credit risk management is based. These policy documents constitute the framework for the level of credit risk that SEK can accept and describe the decision-making structure and credit-decision mandate as well as the credit norm. The underlying methodological working papers clarify the credit process, fundamental principles for credit limits and the management of problem loans. The credit norm is a core concept for SEK’s credit granting and clarifies expectations in terms of credit quality. For a business transaction to be considered to fall within the credit norm, it is necessary for the proposition to satisfy the requirements for all of the following areas: 1. Norm for risk level 2. Norm for lending terms 3. Norm for know your customer (KYC) 4. Norm for sustainability risk The Board determines the risk strategy, including the credit strategy and risk appetite, and the overall limits within which the Company is to operate. All credit decisions are to be made in line with the decision-making mandate structure established by the Board for delegated decision-making. SEK’s credit-decision structure and established mandates is built on a decision-making structure based on the duality principle, thus ensuring thorough analysis and assessment of all credit propositions. Risk reduction Credit risk is reduced through the use of various credit-risk hedges, in the form of guarantees, netting agreements and other forms of collateral. The guarantors, particularly with regard to end-customer financing, are predominantly government export credit agencies in the OECD, of which the Swedish Export Credits Guarantee Board (EKN) is the largest. Since the credit risk is allocated to a guarantor, SEK’s guaranteed credit-risk exposure in reports of its net credit risk exposure largely consists of exposure to government counterparties. Guarantees are also received from financial institutions and, to a lesser extent, non-financial corporations and insurance companies. The counterparty risk associated with derivative contracts is always documented using ISDA Master Agreements, which also entail a netting agreement, with the support of collateral agreements in the form of a CSA. Approved collateral under the CSAs signed by SEK always takes the form of liquid assets. SEK also uses various types of collateral to reduce credit risks pertaining to certain types of credit granting. While collateral is significant for individual transactions, it has limited impact on the total lending portfolio. Limit setting SEK utilizes limits to restrict credit risks to a specified level. Limits express the highest permissible exposure to a counterparty for specific tenors and for various types of exposures, such as corporate lending, guarantees, counterparty risk in derivative contracts or liquidity investments. Exposures must be encompassed within the limits that have been decided for the particular counterparties. The overall limits are set by the Board. All limits are reviewed at least once annually. Testing provisions Starting on January 1, 2018, SEK applies IFRS 9 for the impairment of financial instruments. Impairment is based on the model for expected credit losses (ECL). The assets being impairment tested are divided into three scenarios: scenario 1, scenario 2 and scenario 3. Initially, all exposures are in scenario 1. Exposures where there is a significant increase in credit risk are placed in scenario 2 and scenario 3 encompasses exposures in default. Scenario 3 impairments are calculated through individual testing based on an expert assessment. Individual testing provisions are made when objective conditions exist that indicate a possible need for the financial asset to be impaired according to scenario 3. The Credit Committee prepares provision proposals from the account managers and credit analysts, which are thereafter determined by the Board’s Credit Committee. The Board adopts the accounts and thereby the provisions. Refer to Note 1 for more information on the calculation of expected credit losses under IFRS 9. Risk measurement With the exception of a few counterparties, SEK uses, and has permission to use, a foundation IRB approach for measuring the credit risk inherent in exposures to a majority of SEK’s counterparties. This means that for these exposures SEK uses its own estimates of the probability of default (PD) risk parameter which, per counterparty, reflects the assigned internal risk rating. Other risk parameters, including loss given default (LGD) and credit conversion factors (CCF), are determined by the Capital Requirements Regulation (CRR). All of SEK’s counterparties are assigned an internal risk rating. SEK’s permission from the Swedish FSA to use a foundation IRB approach encompasses exposures to central governments, regional governments, county councils, multilateral development banks, and companies, including insurance companies and financial institutions. The Swedish FSA has permitted SEK to apply exceptions from the IRB approach for certain exposures. For these exposures, SEK uses the standardized approach and external ratings when calculating risk exposure amounts (when no external rating is available, the exposure is assigned a risk weight of 100 percent).(1) The exempted exposures, for which the standardized approach is used instead, are as follows: Exposures in the Customer Finance business area (exception valid as long as these exposures are of minor importance in terms of scope and risk profile) Guarantees for the benefit of small and medium-sized enterprises (exception valid as long as these exposures are of minor importance in terms of scope and risk profile) Counterparty risk in derivative contracts Counterparty risk in derivative contracts — which is a type of credit risk — arises when derivatives are used to manage risks. To limit this risk, SEK enters into such transactions solely with counterparties with strong credit ratings. Risk is further reduced by SEK’s entering into ISDA Master Agreements (ISDAs), together with associated CSAs, with its counterparties before entering into derivative contracts. These bilateral CSAs mean that the maximum permissible risk levels for ISDA and CSA agreements are reviewed continuously to be able to renegotiate the terms as necessary. For counterparty exposures that exceed the threshold amounts under the relevant CSAs due to market value changes, settlement is demanded so that the counterparty exposure is reduced to the pre-agreed level. All interest derivative contracts are subject to central clearing according to the EU’s regulation on OTC derivatives, central clearing counterparties and trade repositories (EMIR) since the end of 2016. Risk monitoring SEK’s exposures are analyzed, reported and followed up regularly in respect of credit portfolio risk concentration and the credit quality of individual debtors. The analysis encompasses, among other things, (i) the size of individual commitments, (ii) domicile and (iii) sector. The analysis refers to both direct exposure and indirect exposure. The concentration risks mentioned above are reflected in SEK’s calculation of economic capital for credit risks, which leads to a higher capital requirement compared with the minimum capital requirement. When calculating capital requirements, the minimum capital requirement does not take concentration risks into account. For the purpose of monitoring and checking large exposures, SEK has defined internal limits, which impose further limitations on the size of such exposures in addition to those stated in the CRR. Exposures assessed as problem loans, meaning those for which SEK assesses that there is a high probability that the undertaking according to the original agreement will not be fulfilled, are analyzed in greater detail and more frequently. The term “problem loans” encompasses (1) In the capital adequacy, those counterparties using external ratings are assigned an internal rating under IFRS 9. forborne exposures, non-performing receivables and non-performing exposures. The intention is to identify, at an early stage, credits with an elevated risk. This is to adapt the exposure, reduce credit losses and ensure that the risk rating reflects the actual risk associated with the particular counterparty. The credit portfolio is subject to regular stress tests. The results of the scenario analyses and stress tests are reported to the Board or the Risk Committee on a regular basis. The Company’s risk and product rating, and risk estimates, comprise a central feature of the reporting of credit risk to the Board, the Risk and Compliance Committee and the Credit Committee. The Chief Executive Officer and the Chief Risk Officer inform the Board of all significant changes concerning SEK’s IRB system. SEK’s IRB system is validated by Risk at least once annually. Risk information, credit risk The table below shows the maximum credit exposure. Nominal amounts are shown, apart from cash and cash equivalents and derivatives, which are recognized at the carrying amount. December 31, 2018 Maximum credit-risk exposure Assets at fair value through Amortized Skr mn profit or loss costs Cash and cash equivalents — 2,686 Treasuries/government bonds 11,124 — Other interest-bearing securities except loans 48,577 — Loans in the form of interest-bearing securities — 36,303 Loans to credit institutions — 12,543 Loans to the public — 215,504 Derivatives 4,525 — Total financial assets 64,226 267,036 December 31, 2017 Maximum credit-risk exposure Assets at fair value through Available-for-sale Loans and Skr mn profit or loss assets accounts receivable Cash and cash equivalents — — 1,231 Treasuries/government bonds — 4,376 — Other interest-bearing securities except loans 133 39,592 — Loans in the form of interest-bearing securities — — 40,558 Loans to credit institutions — — 23,209 Loans to the public — — 213,549 Derivatives 7,803 — — Total financial assets 7,936 43,968 278,547 Maximum credit-risk exposure for loans to credit institutions and loans to the public includes committed but undisbursed loans at year end, which are recognized in nominal amounts. The table below shows the credit quality following risk mitigation (net) per row in the Statement of Financial Position.The figures pertain to carrying amounts. SEK uses guarantees, CDSs and insurance policies as credit-risk hedges; refer also to Note 30 Risk and capital management. December 31, 2018 Skr mn AAA AA+ till A- BBB+ till BBB- BB+ till B- CCC till D Carrying amount Cash and cash equivalents 634 1,782 — — — 2,416 Treasuries/government bonds 2,365 8,752 — — — 11,117 Other interest-bearing securities except loans 10,882 32,331 5,452 — — 48,665 Loans in the form of interest-bearing securities — 8,182 24,488 4,111 — 36,781 Loans to credit institutions 2,663 23,161 1,480 421 — 27,725 Loans to the public 84,766 25,878 32,971 17,430 49 161,094 Derivatives — 5,322 1,207 — — 6,529 Total financial assets 101,310 105,408 65,598 21,962 49 294,327 Committed undisbursed loans 47,644 1,626 1,253 290 1 50,814 December 31, 2017 Skr mn AAA AA+ till A- BBB+ till BBB- BB+ till B- CCC till D Carrying amount Cash and cash equivalents 1,133 98 — — — 1,231 Treasuries/government bonds 401 3,981 — — — 4,382 Other interest-bearing securities except loans 4,396 34,295 1,116 — — 39,807 Loans in the form of interest-bearing securities — 9,636 27,434 4,055 — 41,125 Loans to credit institutions 3,018 15,766 3,229 1,185 — 23,198 Loans to the public 70,043 25,670 32,168 13,164 66 141,111 Derivatives — 6,324 1,479 — — 7,803 Total financial assets 78,991 95,770 65,426 18,404 66 258,657 Committed undisbursed loans 63,922 978 6,452 1,562 — 72,914 The credit quality of financial assets is assessed using internal and external ratings. The table below illustrates the link between the Statement of Financial Position categories and net exposures according to CRR. December 31, 2018 Adjustment to carrying Multilateral Carrying amount from Central Regional development Public sector Skr mdr amount exposure(1) governments governments banks entity Financial institutions Corporates Cash and cash equivalents 2.4 -0.2 0.3 — — — 2.3 — Treasuries/government bonds 11.1 0.0 11.1 — — — — — Other interest-bearing securities except loans 48.7 -0.1 4.8 7.0 — 0.6 15.7 20.7 Loans in the form of interestbearing securities 36.8 -0.1 — — — — 0.7 36.2 Loans to credit institutions including cash and cash equivalents(1) 27.7 16.2 1.4 5.5 — — 4.5 0.1 Loans to the public 161.1 -1.1 99.5 0.9 0.1 — 5.6 56.1 Derivatives 6.5 2.0 — — — — 4.5 0.0 Other assets 5.0 0.9 4.1 — — — — — Total financial assets 299.3 17.6 121.2 13.4 0.1 0.6 33.3 113.1 Contingent liabilities and commitments(2) 55.6 -0.1 48.4 — — 0.0 0.9 6.4 Total 354.9 17.5 169.6 13.4 0.1 0.6 34.2 119.5 December 31, 2017 Adjustment to carrying Multilateral Carrying amount from Central Regional development Public sector Skr mdr amount exposure(1) governments governments banks entity Financial institutions Corporates Cash and cash equivalents 1.2 0.0 0.5 — — — 0.7 — Treasuries/government bonds 4.4 0.0 4.4 — — — — — Other interest-bearing securities except loans 39.8 -0.2 1.3 4.9 — 0.4 20.7 12.7 Loans in the form of interestbearing securities 41.1 -0.2 — — — — 2.1 39.2 Loans to credit institutions including cash and cash equivalents(2) 23.2 10.4 1.9 5.8 — — 4.8 0.3 Loans to the public 141.1 -0.8 85.6 0.7 — 0.0 4.4 51.2 Derivatives 7.8 3.7 — — — — 4.1 0.0 Other assets 3.6 0.1 3.5 — — — — — Total financial assets 262.2 13.0 97.2 11.4 — 0.4 36.8 103.4 Contingent liabilities and commitments(2) 78.0 — 69.9 — — — 1.8 6.3 Total 340.2 13.0 167.1 11.4 — 0.4 38.6 109.7 (1) Skr 16.4 billion (2017: Skr 10.3 billion) of the book value for Loans to credit institutions is cash collateral under the CSAs for derivative contracts. (2) Contingent liabilities and commitments, except cash collateral. Derivative exposure after netting under current ISDA Master Agreements in accordance with the CRR’s management of the counterparty risk in derivative contracts amounts to Skr 3.7 billion (2017: SEK 3.6 billion). For more information on the counterparty risk in derivative contracts under the CRR, refer to Note 30. Total credit exposures in the Group Net exposures are recognized after taking the impact of guarantees and credit derivatives into account. Gross exposures are recognized without taking the impact of guarantees and credit derivatives into account. According to the internal risk follow-up, the amounts agree with the capital requirements calculations, although without the application of conversion factors. In tables showing the geographical breakdown of exposures, North America is shown excluding Central America. Total net exposures Interest-bearing securities Committed undisbursed loans, derivatives, and lending etc. Total Skr mdr December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Exposure class Amount % Amount % Amount % Amount % Amount % Amount % Central governments 121.2 43.8 97.1 39.6 48.4 80.3 70.0 85.1 169.6 50.3 167.1 51.1 Regional governments 13.4 4.8 11.4 4.7 — — — — 13.4 4.0 11.4 3.5 Multilateral development banks 0.1 0.0 0.0 0.0 0.0 0.0 — — 0.1 0.0 0.0 0.0 Public sector entity 0.6 0.2 0.4 0.2 — — — — 0.6 0.2 0.4 0.1 Financial institutions 28.7 10.4 32.7 13.3 5.5 9.1 5.9 7.2 34.2 10.1 38.6 11.8 Corporates 113.1 40.8 103.4 42.2 6.4 10.6 6.3 7.7 119.5 35.4 109.7 33.5 Total 277.1 100.0 245.0 100.0 60.3 100.0 82.2 100.0 337.4 100.0 327.2 100.0 Geographical breakdown of credit exposures by exposure class Geographical breakdown of gross exposures by exposure class, per December 31, 2018 Middle East/ Western Central and Africa/ Asia excl. North Latin Europe excl Eastern Skr mdr Turkey Japan Japan America Oceania America Sweden Sweden Europe Total Central governments 2.8 5.3 4.0 1.9 — 43.7 7.1 8.6 — 73.4 Regional governments 1.7 — — — — — 7.0 0.1 — 8.8 Public sector entity — — — — — — — 0.6 — 0.6 Financial institutions — 2.4 0.5 6.2 1.1 0.4 12.3 9.8 0.3 33.0 Corporates 21.4 12.6 1.2 53.0 — 9.6 83.2 36.0 4.6 221.6 Total 25.9 20.3 5.7 61.1 1.1 53.7 109.6 55.1 4.9 337.4 Geographical breakdown of gross exposures by exposure class, per December 31, 2017 Middle East/ Western Central and Africa/ Asia excl. North Latin Europe excl. Eastern Skr mdr Turkey Japan Japan America Oceania America Sweden Sweden Europe Total Central governments 1.8 5.6 4.0 — — 42.7 7.4 0.2 — 61.7 Regional governments 0.6 — — — — — 4.8 0.1 — 5.5 Public sector entity — — — — — — — 0.4 — 0.4 Financial institutions — 3.1 0.0 9.1 1.1 1.2 11.3 10.8 0.3 36.9 Corporates 23.0 14.6 0.2 53.5 0.1 9.9 74.3 39.9 7.2 222.7 Total 25.4 23.3 4.2 62.6 1.2 53.8 97.8 51.4 7.5 327.2 Geographical breakdown of net exposures by exposure class, per December 31, 2018 Middle East/ Western Central and Africa/ Asia excl. North Latin Europe excl. Eastern Skr mdr Turkey Japan Japan America Oceania America Sweden Sweden Europe Total Central governments — 0.7 4.0 3.9 — 0.9 139.0 18.0 3.1 169.6 Regional governments — — — — — — 13.2 0.2 — 13.4 Multilateral development banks — — — — — — — 0.1 — 0.1 Public sector entity — — — — — — — 0.6 — 0.6 Financial institutions — 2.4 0.9 6.9 1.1 0.3 8.7 13.6 0.3 34.2 Corporates 4.6 3.1 3.1 2.9 — 3.0 80.5 22.2 0.1 119.5 Total 4.6 6.2 8.0 13.7 1.1 4.2 241.4 54.7 3.5 337.4 Geographical breakdown of net exposures by exposure class, per December 31, 2017 Middle East/ Western Central and Africa/ Asia excl. North Latin Europe excl. Eastern Skr mdr Turkey Japan Japan America Oceania America Sweden Sweden Europe Total Central governments — 0.7 4.0 2.4 — 0.9 145.1 10.9 3.1 167.1 Regional governments — — — — — — 11.2 0.2 — 11.4 Multilateral development banks — — — — — — — 0.0 — 0.0 Public sector entity — — — — — — — 0.4 — 0.4 Financial institutions — 3.0 0.5 9.6 1.2 1.1 6.9 16.0 0.3 38.6 Corporates 4.9 3.6 1.7 2.9 — 3.3 72.2 21.0 0.1 109.7 Total 4.9 7.3 6.2 14.9 1.2 5.3 235.4 48.5 3.5 327.2 Impact of credit-risk hedges by exposure class and hedge type The table below shows, on the basis of gross exposure class, a breakdown based on whether or not the amounts are covered by credit-risk hedges in the form of guarantees or credit derivatives that are included in the capital adequacy calculations. Credit insurance issued by insurance companies is thus counted as guarantees. Hedged amounts have been divided in accordance with the hedge issuer’s exposure class and type of hedge. Accordingly, the tables show the hedge types that convert gross exposures to net exposures. Impact of credit-risk hedges, at December 31, 2018 Gross exposures by exposure class wherof Central Regional Public Financial subject to Skr bn government governments Sector Entity institutions Corporates Total IFRS9(1) Amounts related to hedges issued by: Central governments 50.9 1.7 — 0.2 94.3 147.1 147.1 of which, guarantees issued by the EKN 49.9 1.7 — 0.1 80.1 131.8 131.8 of which, guarantees issued by other 1.0 — — 0.1 10.9 12.0 12.0 of which, other guarantees — — — — 3.3 3.3 3.3 Regional governments — — — 5.5 0.8 6.3 6.3 Multilateral development banks — — — — 0.1 0.1 0.1 Financial institutions — — — — 6.9 6.9 6.9 of which, credit default swaps — — — — — — — of which, guarantees — — — — 6.9 6.9 6.9 Corporates — — — — 2.7 2.7 2.7 of which, credit insurance from insurance companies — — — — 1.8 1.8 1.8 of which, other guarantees — — — — 0.9 0.9 0.9 Total hedged exposures 50.9 1.7 — 5.7 104.8 163.1 163.1 Unhedged exposures(2) 22.5 7.1 0.6 27.3 116.8 174.3 105.3 Total 73.4 8.8 0.6 33.0 221.6 337.4 268.4 (1) Assets valued at accrued acquisition value, which are subject to the write-down requirements in IFRS 9. (2) Exposures whereby the hedge issuer belongs to the same group as the counterparty in the unhedged exposure have been reported as “Unhedged exposures.” The amounts for these were Skr 25.8 billion for corporates and Skr 0.2 billion for central governments. Impact of credit-risk hedges, at December 31, 2017 Gross exposures by exposure class Central Regional Public Financial Skr bn government governments Sector Entity institutions Corporates Total Amounts related to hedges issued by: Central governments 49.3 0.5 — 0.4 104.4 154.6 of which, guarantees issued by the EKN 48.2 0.5 — 0.2 88.6 137.5 of which, guarantees issued by other 1.1 — — 0.2 12.5 13.8 of which, other guarantees — — — — 3.3 3.3 Regional governments — 0.0 — 5.9 0.6 6.5 Financial institutions 0.0 — — 0.0 8.0 8.0 of which, credit default swaps — — — — 1.0 1.0 of which, guarantees 0.0 — — 0.0 7.0 7.0 Corporates — — — 0.0 3.1 3.1 of which, credit insurance from insurance companies — — — — 2.5 2.5 of which, other guarantees — — — 0.0 0.6 0.6 Total hedged exposures 49.3 0.5 — 6.3 116.1 172.2 Unhedged exposures(1) 12.4 5.0 0.4 30.6 106.6 155.0 Total 61.7 5.5 0.4 36.9 222.7 327.2 (1) Exposures whereby the hedge issuer belongs to the same group as the counterparty in the unhedged exposure have been reported as “Unhedged exposures.” The amounts for these were Skr 22.4 billion for corporates and Skr 0.2 billion for central governments. Gross exposures Europe, excluding Sweden, breakdown by exposure class, at December 31, 2018 Central Regional Public sector Financial Skr bn governments governments entity institutions Corporates Total Spain — — — 0.1 9.8 9.9 Norway — — — 2.4 4.1 6.5 Finland 0.1 0.1 — 0.2 5.4 5.8 United Kingdom — — — 2.6 2.6 5.2 Denmark — — — 1.7 3.2 4.9 Austria 2.9 — — 1.7 — 4.6 Italy — — — — 4.2 4.2 Germany 3.1 — 0.6 0.3 — 4.0 The Netherlands 1.7 — — 0.1 1.6 3.4 Poland — — — — 3.1 3.1 France — — — 0.6 2.1 2.7 Luxembourg 0.8 — — — 1.2 2.0 Russian Federation — — — — 1.4 1.4 Switzerland — — — 0.1 0.8 0.9 Belgium — — — 0.0 0.6 0.6 Ireland — — — — 0.4 0.4 Latvia — — — 0.2 — 0.2 Iceland — — — — 0.2 0.2 Portugal — — — — 0.1 0.1 Estonia — — — 0.0 — 0.0 Ukraine — — — — 0.0 0.0 Hungary — — — — 0.0 0.0 Greece — — — — 0.0 0.0 Total 8.6 0.1 0.6 10.0 40.8 60.1 Gross exposures Europe, excluding Sweden, breakdown by exposure class, at December 31, 2017 Central Regional Public sector Financial Skr bn governments governments entity institutions Corporates Total Spain — — — 0.1 12.4 12.5 Finland 0.2 0.1 — — 7.1 7.4 Norway — — — 3.3 2.5 5.8 United Kingdom — — — 2.2 3.1 5.3 The Netherlands — — — 2.2 2.1 4.3 Italy — — — — 4.2 4.2 France — — — 1.6 2.5 4.1 Russia — — — — 4.0 4.0 Denmark — — — 1.1 2.8 3.9 Poland — — — — 3.1 3.1 Luxembourg — — — 0.0 1.2 1.2 Switzerland — — — — 0.9 0.9 Germany — — 0.4 0.3 — 0.7 Iceland — — — — 0.5 0.5 Ireland — — — — 0.4 0.4 Belgium — — — 0.0 0.3 0.3 Latvia — — — 0.2 — 0.2 Estonia — — — 0.1 — 0.1 Greece — — — — 0.0 0.0 Hungary — — — — 0.0 0.0 Ukraine — — — — 0.0 0.0 Total 0.2 0.1 0.4 11.1 47.1 58.9 Net exposures Europe, excluding Sweden, breakdown by exposure class, at December 31, 2018 Multilateral Central Regional development Public sector Financial Skr bn governments governments banks entity institution Corporates Total France 7.3 — — — 1.7 0.0 9.0 Germany 3.9 — — 0.6 1.4 1.6 7.5 United Kingdom 0.3 — — — 1.6 4.9 6.8 Norway 0.4 — — — 2.4 4.0 6.8 Denmark 0.2 — — — 2.4 3.2 5.8 Finland 0.4 0.2 — — 0.3 4.6 5.5 Austria 2.9 — — — 1.7 — 4.6 Poland 3.1 — — — — 0.0 3.1 The Netherlands 1.7 — — — 0.4 0.7 2.8 Luxembourg 0.8 — 0.1 — — 1.0 1.9 Spain — — — — 0.9 0.5 1.4 Belgium — — — — 0.6 0.5 1.1 Switzerland — — — — 0.3 0.5 0.8 Ireland — — — — — 0.4 0.4 Latvia — — — — 0.2 — 0.2 Italy — — — — — 0.2 0.2 Iceland — — — — — 0.2 0.2 Portugal — — — — — 0.1 0.1 Estonia — — — — 0.0 — 0.0 Hungary — — — — — 0.0 0.0 Russian Federation — — — — — 0.0 0.0 Total 21.0 0.2 0.1 0.6 13.9 22.4 58.2 Net exposures Europe, excluding Sweden, breakdown by exposure class, at December 31, 2017 Multilateral Central Regional development Public sector Financial Skr bn governments governments banks entity institution Corporates Total France 7.8 — — — 2.5 0.0 10.3 United Kingdom 0.5 — — — 1.7 5.5 7.7 Finland 0.5 0.3 — — — 6.3 7.1 Norway 0.5 — — — 3.4 2.3 6.2 Denmark 0.2 — — — 2.2 2.4 4.8 Germany 1.4 — — 0.4 2.0 0.9 4.7 Poland 3.1 — — — — — 3.1 The Netherlands — — — — 2.4 0.2 2.6 Spain — — — — 0.9 1.7 2.6 Belgium — — — — 0.7 0.2 0.9 Switzerland — — — — 0.2 0.3 0.5 Luxembourg 0.0 — 0.0 — 0.0 0.4 0.4 Ireland — — — — — 0.4 0.4 Latvia — — — — 0.2 — 0.2 Iceland — — — — — 0.2 0.2 Italy — — — — — 0.1 0.1 Russia — — — — — 0.1 0.1 Estonia — — — — 0.1 — 0.1 Austria — — — — 0.0 — 0.0 Hungary — — — — — 0.0 0.0 Total 14.0 0.3 0.0 0.4 16.3 21.0 52.0 Corporate exposures, broken down by industry (GICS) December 31, 2018 December 31, 2017 Skr mdr Gross exposure Net exposure Gross exposure Net exposure IT and telecom 79.6 13.0 88.4 12.9 Industry 46.9 41.0 41.9 36.4 Finance 27.6 16.6 32.2 19.9 Commodities 24.5 19.0 21.9 16.8 Consumer goods 21.8 20.4 18.3 15.9 Electricity, water and gas 15.0 5.6 14.1 4.4 Healthcare 3.5 3.2 3.0 2.7 Energy 2.5 0.5 2.9 0.7 Other 0.2 0.2 — — Total 221.6 119.5 222.7 109.7 Market risk Market risk is the risk of loss or changes in future NII due to changes in, for example, interest rates, exchange rates, commodity prices or share prices. Market risk includes price risk in connection with sales of assets or the closing of exposures. Risk management SEK’s Board establishes SEK’s market risk appetite and its strategy. In addition, instructions established by the CEO regulate SEK’s management of market risks. The Board’s Finance and Risk Committee makes decisions on limit structures, which clearly define and limit the permissible exposure to net market risk. The Chief Risk Officer decides on the method for determining how market risks are to be calculated and proposes changes in limit structures in connection with reviews of risk appetite and limits. All instructions are re-established annually. Market risk exposures are measured and reported on a daily basis to the CEO, and the Board’s Finance and Risk Committee at scheduled meetings. Cases where limits are exceeded are escalated without delay to the CEO, and the Board’s Finance and Risk Committee. SEK borrows funds by issuing bonds or other debt instruments which, regardless of the market risk exposures in the bonds, are hedged by being swapped via derivatives to a floating interest rate. The Company’s risk appetite for market risk resulting from unmatched cash flows is low. Borrowed funds are used either immediately for lending, mainly at floating interest rates, or alternatively through derivatives at a floating rate, or to ensure that SEK has adequate liquidity in the form of liquidity investments and liquidity reserves. The aim is to hold assets and liabilities to maturity. The duration of available borrowing matches that of lending and the maturity profile of liquidity investments is adapted to ensure that funds are available for all accepted but as yet undisbursed lending. Unrealized changes in fair value affect the value of SEK’s assets and liabilities and impact the volatility of both earnings and SEK’s own funds. SEK’s largest net exposures are to changes in spread risk, mainly to credit spreads associated with assets and liabilities and to cross-currency basis swap spreads. Spread risks are managed by having established limits and daily limit monitoring. Risk measurement The following describes how SEK calculates and limits market risk internally. For the impact on earnings and other comprehensive income due to the interest-rate risk, see the table on page 117. Additional factors, such as different sensitivity calculations regarding the impact on economic value, earnings, equity and own funds, as well as a number of stress tests, are measured and reported but are not subject to limits. The CIRR-system has been excluded since the government compensates SEK for all interest-rate differentials, borrowing costs and net foreign-exchange losses within the CIRR-system (see Note 1). Value at Risk SEK’s primary market risk metric is Value at Risk (VaR). VaR is a statistical market risk metric that estimates the potential loss with a defined level of likelihood. In other words, for a given period of time and confidence level the VaR states a loss threshold value that will not be exceeded as a result of changes in the financial markets. The VaR model is based on historical simulations in which historic market movements are applied to current holdings to simulate possible outcomes of value changes. Market parameters used as risk factors are interest rates, cross-currency basis spreads, credit spreads, currencies, equities, indices and commodities as well as volatilities of swaptions, caps/floors, equities, commodities and currencies. The VaR calculation is based on two years of historic daily market movements. Further historical data from December 2006 is used to calculate stressed VaR, in which several periods with extreme market movements are included, and a worst-case VaR outcome for the entire period can be identified. Stressed VaR is based on one year of historical daily data. VaR is calculated for SEK’s portfolio and separately for the liquidity portfolio for positions recognized at fair value in the balance sheet that impact own funds, with the exception of changes due to credit spreads on SEK’s own debt. Currency positions are also included for all of these positions. At year-end, VaR for own funds amounted to Skr 14 million (year-end 2017: 20) and for the liquidity portfolio VaR was Skr 8 million (year-end 2017: 9). The risk appetite for corresponding exposures is Skr 100 million and Skr 50 million respectively. Aggregated risk measure The aggregated risk measure is based on analyses of historical scenarios with a monthly risk horizon. The scenarios are updated each month and comprise historical movements in risk factors from the entire period from the end of 2006 until today. The aggregated risk measure estimates the impact on SEK’s equity by applying historically observed movements in the market factors that affect the volatility of SEK’s equity. The exposure, which is based on the worst case scenario, is evaluated using SEK’s portfolio sensitivities to interest-rate risk, cross-currency basis swap risk, credit spread risk in assets and currency risk. The limit is also based on the worst case scenario, which at the close of 2018 was a scenario based on market movements from October 2008. The risk at year-end 2018 amounted to Skr 742 million (year-end 2017: Skr 582 million). The risk appetite is set at Skr 1,100 million (year-end 2017: Skr 1,100 million). Risk-specific measures The VaR, aggregated risk measure and stress tests are complemented with risk-specific measures, including specific interest-rate-risk measures, spread-risk measures, currency-risk measures, etc. The measurement and limiting of interest-rate risk in SEK is divided into two categories: Interest-rate risk regarding changes in the economic value of SEK’s portfolio (EVE) Interest-rate risk regarding changes in future net interest income (NII). Market risk, type Definition Risk profile Value at Risk VaR measures a potential negative impact on SEK’s equity, in the form of unrealized gains or losses, as a result of value changes from hist |
Transactions with related parti
Transactions with related parties | 12 Months Ended |
Dec. 31, 2018 | |
Transactions with related parties | |
Transactions with related parties | Note 28. Transactions with related parties SEK defines related parties to the Parent Company as: the shareholder, i.e. the Swedish government companies and organizations that are controlled through a common owner, the Swedish government subsidiaries key management personnel other related parties SEK defines related parties to the Group as: the shareholder, i.e. the Swedish government companies and organizations that are controlled through a common owner, the Swedish government senior executives other related parties The Swedish government owns 100 percent of the Company’s share capital. By means of direct guarantees extended by the Swedish National Debt Office and the Swedish Export Credits Guarantee Board, EKN, 40 percent (Year-end 2017: 35 percent) of the Company’s loans outstanding on December 31, 2018 were guaranteed by the Swedish government. The remuneration to EKN for the guarantees paid by SEK during 2018 amounted to Skr 0 million (2017: Skr 2 million). SEK administers, in return for compensation, the Swedish government’s system for officially supported export credits (CIRR system), and the government’s previous concessionary credits system, refer to Note 1 and Note 25. In 2018, SEK had a Skr 125 billion (2017: Skr 125 billion) credit facility with the Swedish National Debt Office which was entirely related to the CIRR-system. In December 2018, the credit facility was extended for 2019. SEK has not yet utilized the credit facility. SEK enters into transactions in the ordinary course of business with entities that are partially or wholly owned or controlled by the State. SEK also extends export credits (in the form of direct or pass-through loans) to entities related to the State. Transactions with such counterparties are conducted on the same terms (including interest rates and repayment schedules) as transactions with unrelated parties. The Group’s and the Parent Company’s transactions do not differ significantly. Internal transactions between the Parent Company and the subsidiaries amount to Skr - million (2016: Skr - million) for interest expenses from the Parent Company’s point of view. For further information see Note 1 (b), Basis of consolidation and Note 15, Shares. Key management personnel include the following positions: The Board of Directors The Chief Executive Officer Other executive directors For information about remuneration and other benefits to key management personnel see Note 5, Personnel expenses. Other related parties include close family members of key management personnel as well as companies which are controlled by key management personnel of SEK or controlled by close family members to key management personnel. The following tables further summarize the Group’s transactions with its related parties: 2018 Companies and organizations controlled The shareholder, through a common owner, the Swedish government the Swedish government Total Interest Interest Interest income/ income/ income/ Assets/ Interest Assets/ Interest Assets/ Interest Skr mn liabilities expense liabilities expense liabilities expense Treasuries/government bonds 103 0 — — 103 0 Other interest-bearing securities except loans — — 6,847 -24 6,847 -24 Loans in the form of interestbearing securities — — 1,699 19 1,699 19 Loans to credit institutions — — 2,623 77 2,623 77 Loans to the public — — 2,582 53 2,582 53 Settlement claim against State(1) 3,915 — — — 3,915 — Total 4,018 0 13,751 125 17,769 125 Debt securities issued — — — 1 — 1 Other liabilities 18 — — — 18 — Total 18 — — 1 18 1 2017 Companies and organizations controlled through a The shareholder, common owner, the the Swedish government Swedish government Total Interest Interest Interest income/ income/ income/ Assets/ Interest Assets/ Interest Assets/ Interest Skr mn liabilities expense liabilities expense liabilities expense Treasuries/government bonds 401 4 — — 401 4 Other interest-bearing securities except loans — — 5,933 -27 5,933 -27 Loans in the form of interestbearing securities — — 2,198 18 2,198 18 Loans to credit institutions — — 2,607 52 2,607 52 Loans to the public — — 2,989 37 2,989 37 Settlement claim against State(1) 3,309 — — — 3,309 — Total 3,710 4 13,727 80 17,437 84 Other liabilities 125 — — — 125 — Total 125 — — — 125 — (1) For information about “Settlement claim against State,” see Note 16 Other assets and Note 25 CIRR system. |
Events after the reporting peri
Events after the reporting period | 12 Months Ended |
Dec. 31, 2018 | |
Events after the reporting period | |
Events after the reporting period | Note 29. Events after the reporting period In order to increase the focus on customers, SEK has made certain organizational changes. Three new roles were created: Executive Vice President, Strategic Partnerships and Relationships; Chief Financial Officer (CFO); and Head of Business Development, Business Support and Transformation. This stage of organizational changes became effective on January 1, 2019. Hélène Westholm chose to leave the Board after approximately one year of service, effective January 31, 2019. On January 31, 2019, the Board determined that Hanna Lagercrantz will be a Board observer (Sw: adjungerad ledamot) until her election to the Board, which is expected to occur at the next Annual General Meeting on March 28, 2019. |
Risk and capital management
Risk and capital management | 12 Months Ended |
Dec. 31, 2018 | |
Risk and capital management | |
Risk and capital management | Note 30. Risk and capital management Note 30 addresses significant aspects of SEK’s risk and capital management. For detailed descriptions, including quantitative information on SEK’s capital adequacy and its risk and capital management, refer to Note 26 Capital adequacy and Note 27 Risk information, respectively. For supplementary and expanded information, refer to the separate risk report, “Capital Adequacy and Risk Management Report — Pillar 3 2018,” available at www.sek.se. Events in 2018 In 2018, several events in the external environment affected the macro scenario, such as Brexit, political turbulence in Italy, the US-China trade dispute and interest-rate hikes in the US. Although these events have led to some political concern, the markets have been largely stable and the world economy has thus far been affected marginally. In Sweden, lengthy government negotiations have ensued following the election in September. At the end of the year, SEK’s Export Credit Trends Survey showed a slightly more pessimistic view of the export climate. The consequences of the new regulations for the financial sector remain considerable in the form of adaptation costs, new fees and stricter capital requirements. To some extent, there still exists uncertainty regarding the impact of the new regulations moving forward. SEK’s capital adequacy has decreased slightly in 2018. At the end of the year, the total capital ratio was 20.1 percent (2017: 23.0 percent), of which the Tier 1 capital ratio and the Common Equity Tier 1 ratio both amounted to 20.1 percent (2017: 20.6 percent). The primary reason for the decrease in capital adequacy is early redemption by SEK in November of Tier 2 instruments amounting to USD 250 million. SEK’s total exposures have marginally decreased since the end of 2017. SEK’s largest financial risks are credit risk (Skr 7.0 billion (2017: Skr 6.9 billion) in allocated capital), market risk (Skr 1.1 billion (2017: Skr 1.6 billion) in allocated capital) and operational risk (Skr 0.2 billion (2017: Skr 0.1 billion) in allocated capital) in line with internally assessed capital adequacy. The leverage ratio amounted to 5.6 percent (2017: 5.9) at year end. The minimum requirement for own funds and eligible liabilities (MREL) is 8.3 percent (2017: 7.1) of total liabilities and own funds. This corresponds to a minimum requirement of 25.3 percent (2017: 28.0) of risk-weighted assets. SEK meets these requirements since a portion of the senior debt can be included at present. Until 2022, SEK needs to issue separate MREL capital. SEK’s liquidity was stable during the year. Capacity for managing operational and structural liquidity risk has been good. This was confirmed by new lending capacity, which has been at a high level and amounted to 5 months (2017: 15 months), and by the liquidity coverage ratio (LCR), which was 266 percent (2017: 169) at year end. The VaR for all positions at fair value amounted to Skr 14 million (2017: Skr 20 million) at year end. In its preparations for Brexit, SEK has assumed that the UK will leave the EU on March 29, 2019 without an agreement, a so-called “hard Brexit.” Primarily, the preparations include ensuring that SEK can continue to conduct transactions with financial counterparties domiciled in the UK. SEK is also affected by new rules for reference interest rates that entail IBOR-based rates being gradually replaced with new reference rates. Capital target The Company’s capital target, which is one of the Board’s principal control instruments, is established by the owner at a general meeting of shareholders. The capital target is designed to ensure that SEK has sufficient capital to support its strategy and that capital adequacy always exceeds the regulatory requirements, even in the event of deep economic declines. Under normal conditions, SEK’s capital target is for its total capital ratio to exceed the capital adequacy requirement communicated by the Swedish FSA by 1 to 3 percentage points. The point of departure for this is the Swedish FSA’s estimated capital requirement for SEK or SEK’s own assessment. In addition, SEK’s own funds must also cover the volatility that may be expected under normal conditions. As a result of the Swedish FSA’s review and evaluation process, SEK was required to have a total capital ratio of 16.7 percent, based on SEK’s balance sheet at September 30, 2018 (September 30, 2017: 15.9). At December 31, 2018, the total capital ratio was 20.1 percent (year-end 2017: 23.0). Core risk management principles SEK must be selective in its choice of counterparties and clients in order to ensure a strong credit rating. SEK only lends funds to clients who have successfully undergone SEK’s procedure for gaining understanding of the customer and its business relations (know your customer), and have a business structure that complies with SEK’s mission of promoting the Swedish export industry. The business operations are limited to financial solutions and positions that the Company has approved and has procedures for, whose risks can be measured and evaluated and where the Company complies with international sustainability risk guidelines. SEK’s liquidity strategy entails that the Company secures financing that, at the very least, has the same maturities as the funds that it lends. Risk appetite The Board decides on the Company’s risk appetite, which is to encompass all of the Company’s significant risk classes and to express the outer limits for the business operations. The risk appetite must specify the risk measurements that, in the opinion of the Board, provide information that is sufficient for the members of the Board to be well versed in the type and scope of the Company’s risks. The risk appetite is strongly connected to the Company’s loss capacity and thus to its equity. At least on a quarterly basis, the Board is provided with a comprehensive update of the risk exposures’ relationship to the risk appetite. Refer also to the “SEK’s risks and risk management” section, where the risk appetite by risk class is described in detail. SEK’s risk framework Effective risk management and control in SEK are based on a sound risk culture, a shared approach and a well-functioning control environment. SEK emphasizes the importance of high risk awareness among personnel and an understanding of the importance of preventive risk management to, thereby, keep risk exposure within the determined level. SEK also has a risk framework (see the Risk Framework illustration on the preceding page). The structure of the risk framework is ultimately governed by SEK’s mission from its owner, the Swedish government, and SEK’s business model. The capital target constitutes the outer boundary for SEK’s strategy. Within the restrictions of the capital target, risk appetite is stated, which is expressed by risk class and comprises the risk to which the Board is prepared to expose SEK in order to achieve its strategic objectives. Risk governance is specified in the form of a risk strategy, a risk policy, in SEK’s risk culture, and in instructions, processes and limits. These policy documents describe the risk management process and define what activities and operations are included in the process, and how they should be performed. The policy documents also indicate how responsibility is structured in terms of the execution, monitoring of and compliance with risk management. Risk governance The Board of Directors has ultimate responsibility for governing and monitoring risk exposure and risk management, and for ensuring satisfactory internal control. The Board determines the overall risk governance by taking decisions on such matters as risk appetite and risk strategy. The Board also decides on risk policies and on matters of considerable importance to credit granting. For a detailed description of the Board of Directors’ rules of procedure, refer to the Corporate Governance Report. SEK has organized risk management and risk control in accordance with the principle of three lines of defense in the form of clear-cut separation of responsibility between the commercial and support operations that own the risks, the control functions that independently identify and monitor the risks and an internal audit, which reviews these matters and reports directly to the Board; see diagram below. Risk management process The Company’s risk management process encompasses: identification, measurement, management, reporting, control and monitoring of those risks with which the business is associated and for which SEK has formulated internal controls with this purpose in mind. SEK’s risk management process consists of the following key elements: Risk identification — at any given time, SEK must be aware of the risks to which it is exposed. Risks are identified, primarily in new transactions, in external changes in SEK’s operating environment or internally in, for example, products, processes, systems and through annual risk analyses that include all aspects of SEK. Both forward-looking and historical analyses and testing are performed. Measurement — the size of the risks is measured on a daily basis in respect of significant measurable risks or are assessed qualitatively as frequently as necessary. For those risks that are not directly measurable, SEK evaluates the risk according to models that are based on SEK’s risk appetite for the respective risk class, specifying appropriate scales of probability and consequence. Governance — SEK aims to oversee the development of business, actively utilize risk-reduction capabilities and control the development of risks over time to ensure that the business activities are kept within the risk appetite and limits. SEK also plans and draws up documentation to ensure the continuity of business-critical processes and systems and that planning is carried out for crisis management. Exercises and training regarding the management of situations that require crisis and/or continuity planning are performed continuously. Reporting — the Company reports on the current risk situation, on the use of capital and on related matters to the CEO, the Finance and Risk Committee and the Board, at least once each quarter. Control and monitoring — SEK checks and monitors compliance with limits, risk appetite, capital targets, risk management and internal and external regulations to ensure that risk exposures are kept at an acceptable level for SEK and that risk management is effective and appropriate. Internal capital and liquidity assessment processes The internal capital adequacy assessment process is an integral part of SEK’s strategic planning, whereby the Board determines SEK’s risk appetite and approves the capital target. The purposes of the internal capital adequacy assessment process are to ensure that SEK has sufficient capital to meet the regulatory requirements under both normal and stressed financial conditions and to support SEK’s high credit rating. The capital kept by SEK must be sufficient in relation to the risks that SEK has, or can be exposed to. The capital adequacy assessment is based on SEK’s internal assessments of the risks and their development, as well as assessments of risk measurement models, risk governance and risk management. It is integrated into business planning and forms the foundation for SEK’s strategy for maintaining an adequate level of capital. Capital adequacy assessments are conducted at least for the forthcoming three-year period. In addition to the internal capital adequacy assessment process, an in-depth liquidity analysis is performed. During the planning period, the liquidity requirement and its composition in terms of liquidity requirements for different currencies, among other items, are evaluated to ensure the Company has adequate liquidity to implement the business plan and meet regulatory requirements. To arrive at an adequate capitalization level that also applies under stressed financial conditions, an analysis is conducted of how the capitalization is affected by stress in global financial markets, as well as of other factors that impact SEK’s business model and net risk exposure. When SEK performs the internal capital adequacy assessment, it applies methods other than those used for the Swedish FSA’s capital requirement. The assessment is based on SEK’s internal calculation of economic capital, which captures all of the specific risks to which SEK’s operations are exposed, even risks over and above those included in the Swedish FSA’s capital requirement. For example, for credit risk, economic capital is based on a quantitative approach whereby Value at Risk (VaR) is calculated at a confidence level of 99.9 percent. This quantitative estimate is performed using a simulation-based tool that produces a probability distribution of the value of the credit portfolio over a defined time horizon (usually one year). The methodology used in the VaR quantification is based on the Credit Metrics model. In addition to the internal capital adequacy assessment, SEK also estimates the total capital requirement as set for SEK by the Swedish FSA in its annual review and evaluation process. The capital adequacy assessment estimated by the Swedish FSA is a minimum requirement for SEK’s own funds. In SEK’s assessment, SEK has own funds that comfortably exceed both the internally estimated need of own funds and the total capital requirement calculated by the Swedish FSA. For supplementary and expanded information, refer to the separate risk report, “Capital Adequacy and Risk Management Report — Pillar 3 2017”, available at www.sek.se. Division of responsibility for risk, liquidity and capital management First line of defense Business and support operations. Day-to-day management of risk, capital and liquidity in compliance with risk appetite and strategy as well as applicable laws and rules. Credit and sustainability analyses. Daily control and follow-up of credit, Second line of defense Independent risk control and compliance functions. Identification, quantification, monitoring and control of risks and risk management. Risk, liquidity and capital Maintain an efficient risk management framework and internal control framework. Compliance monitoring and reporting. Third line of defense Independent internal audit. Review and evaluation of the efficiency and integrity of risk management. Performance of audit activities in line with the audit plan confirmed by the Board. Direct reporting to the Board. Detailed risk statement Risk class Risk profile Risk appetite metrics Risk management Liquidity and refinancing risk Liquidity and refinancing risk is the risk, of the Company not being able to refinance its existing assets or being unable to meet increased demands for liquid funds. Liquidity risk also includes the risk of the Company having to borrow at an unfavorable interest rate or needing to sell assets at unfavorable prices in order to meet its payment commitments. SEK has secured funding for all its credit commitments, including those agreed but not yet disbursed. In addition, the size of SEK’s liquidity investments allow new lending to continue at a normal pace, even during times of stress. As a consequence of SEK having secured funding for all its credit commitments, the remaining term to maturity for available funding is longer than the remaining term to maturity for lending. All lending transactions are to be funded on a portfolio basis using at least the same maturity. Equity capital is included here as funding with perpetual maturity. The Company is to have contingencies in a stressed scenario for new lending (including CIRR) of at least two months, without access to the credit facility. The maturity profile of the liquidity investments must reflect the anticipated net maturity of borrowing and lending. Under normal circumstances, the assets should be held until maturity. LCR assets are calculated to mature within two days. The Company is to operate with an LCR for the entire balance sheet, and in EUR and USD, of not less than 110 percent. The Company is to operate with a Net Stable Funding Ratio (NSFR) exceeding 100 percent. SEK must have diversified funding to ensure that funding is available through maturity for all credit commitments — credits outstanding as well as agreed but undisbursed credits. The size of SEK’s liquidity investments must ensure that new lending can take place even during times of financial stress. Credit risk Credit risk is the risk of loss that could occur if a borrower or a counterpart can not meet its obligations. Counterparty risk, concentration risk and settlement risk are certain subsets of credit risk. SEK’s lending portfolio is of a high credit quality. The Company’s mission naturally entails certain concentration risks, such as geographical concentration risk against Sweden. The net risk is principally limited to counterparties with high creditworthiness, such as export credit agencies (ECAs), major Swedish exporters, banks and insurers. SEK invests its liquidity in high credit quality securities, primarily with short maturities. Individual and collectively limited exposures must not exceed 20 percent of SEK’s own funds. The Company’s expected loss within one year must not exceed two percent, and the total portfolio maturity must not exceed eight percent of the Common Equity Tier 1 capital. The average risk weight for SEK’s credit-risk exposures to corporates and institutions may not exceed 55 percent. Credit-risk-related concentration risk must not exceed 30 percent of the Swedish FSA’s assessed total capital requirement for credit risk. The Company’s net exposures to counterparties in the segment <= BB- must not exceed 80 percent of SEK’s Tier 1 capital. Lending must be based on in-depth knowledge of SEK’s counterparties as well as counterparties’ repayment capacity. Lending must also be aligned with SEK’s mission based on its owner instruction. SEK’s credit risks are mitigated through a risk-based selection of counterparties and managed through the use of guarantees and other types of collateral. Furthermore, SEK’s lending is guided by the use of a normative credit policy, specifying principles for risk levels and lending terms. Concentrations that occur naturally as a result of the Company’s mission are accepted, but the Company continuously works towards reducing the risk of concentration where this is possible. Market risk Market risk is the risk of loss or reduction of future net income following changes in prices and volatilities on financial markets including price risk in connection with the sale of assets or closing of positions. SEK’s business model leads to exposure mainly to spread risks, interest-rate risk and currency risk. SEK’s largest net exposures are to changes in spread risk, mainly to credit spreads associated with assets and liabilities and to cross-currency basis spreads. SEK’s aggregated market risk measure for all the exposures at fair value must not exceed Skr 1,100 million. Value-at-Risk for exposures at fair value must not exceed Skr 100 million. VaR for the liquidity portfolio must not exceed Skr 50 million. Total interest rate sensitivity to a 100 bps parallel shift of all yield curves, comprising the entire balance sheet, must not exceed Skr 500 million. Net interest income risk, 1 year, meaning the impact on SEK’s future earnings margin resulting from a change in interest rates (100 bps parallel shift) and a change in basis spreads (20 bps parallel shift), must not exceed Skr 350 million. The Company must hedge at least 75 percent of interest-rate risk in loans outstanding in the CIRR system. SEK conducts no active trading. The core of SEK’s market risk strategy is to borrow funds in the form of bonds which, regardless of the market risk exposures in the bonds, are hedged by being swapped to a floating interest rate. Borrowed funds are used either immediately for lending, mainly at a floating rate of interest, or swapped to a floating rate, or to ensure that SEK has sufficient liquidity. The aim is to hold assets and liabilities to maturity. Operational risk Operational risk is the risk of losses resulting from inadequate or faulty internal processes, systems, human error or from external events. Operational risks arise in all parts of the business. The vast majority of incidents that have occurred are minor events that are rectified promptly within the respective functions. Overall operational risk is low as a result of effective internal control measures and a focus on continuous improvement. Measures are to be taken without delay to minimize the likelihood of possible losses in excess of Skr 150 million as estimated by the Company. In the event that adequate measures cannot be taken within two months, the CEO must inform the Finance and Risk Committee. Measures are to be taken without delay to reduce an expected loss exceeding Skr 2 million to an amount of less than Skr 2 million within six months. The risk appetite for expected losses due to operational risk is limited to Skr 20 million over a one-year period. Critical internal audit remarks must be mitigated without delay, but no later than within six months. Critical external audit remarks must be mitigated without delay, but no later than within two months. SEK manages the operational risk on an ongoing basis through mainly efficient internal control procedures, performing risk analysis before changes, focus on continuous improvements and business continuity management. Costs to reduce risk exposures must be in proportion to the effect that such measures have. Compliance risk Compliance risk is the risk of breaches of relevant legislation and ordinances (external regulations), internal regulations or industry practices that apply to the operations requiring permits. Compliance risk includes the risk of money laundering and financing of terrorism. SEK’s operations lead to exposure to the risk of failing to comply with current regulatory requirements and ordinances in markets in which the Company operates. The Company does not accept material or systematic non-compliance with legislation, ordinances and other regulations, or internal regulations. SEK works continuously to develop tools and knowledge to help identify the Company’s compliance risks. The company analyzes and monitors compliance risks with the intention of continuously reducing the risk of non-compliance with regulations pertaining to operations requiring permits. Business and strategic risk Strategic risk is the risk of lower revenue because strategic initiatives fail to achieve the pursued results, inefficient organizational changes, improper implementation of decisions, unwanted impact of outsourcing, or the lack of adequate response to changes in the business environment. Business risk is the risk of an unexpected decline in revenue resulting from, for example, changes to competitive conditions, a decrease in volumes and/or falling margins. SEK’s strategic risks mainly arise through changes in the external operating environment, such as market conditions, which could result in limited lending opportunities for SEK, and regulatory reforms from two perspectives: (1) the impact of these reforms on SEK’s business model; and (2) the requirements on the organization resulting from increased regulatory complexity. SEK’s appetite for business and strategic risk is derived from the mission which is expressed in the owner instruction and is implemented strategically and operatively in the Company’s business plan. SEK’s executive management is responsible for identifying and managing the strategic risks and monitoring the external business environment and developments in the markets in which SEK conducts operations and for proposing the strategic direction to the Board. A risk analysis in the form of a self-assessment concerning strategic risk is to be conducted each year. Sustainability risk Sustainability risk is the risk of SEK directly or indirectly, negatively affects externalities within the areas of environmental and climate considerations, anti-corruption, human rights, labor conditions or business ethics. SEK is indirectly exposed to sustainability risks in connection to its lending activities. High sustainability risks could occur in financing of large projects or of businesses in countries with high risk of corruption or human rights violations. In project-related financing, the Company must comply with the Equator Principles or the OECD’s Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence. When lending in complex markets, the exporters or other market participants covered by the financing must have the capacity to manage sustainability risks in line with international guidelines. Lending for coal-fired power is not permitted. In exceptional cases, loans may be offered for measures aimed at improving the environment. Gross lending to fossil operations (coal, oil and gas) should be less than 5 percent of SEK’s total lending. For existing transactions that no longer align with SEK’s risk appetite, SEK will based on the opportunities available take measures to influence and to report deviations to the Board. Lending is not permitted for business transactions where the main purpose is to withhold tax. Sustainability risks are managed according to a risk-based approach. In cases of heightened sustainability risk, a detailed sustainability review is performed and measures could be required in order to mitigate environmental and social risks. Requirements are based on national and international regulations and guidelines within the areas of environment and climate, anti-corruption, human rights including labor conditions and business ethics including tax. |
Significant accounting polici_2
Significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Significant accounting policies | |
Basis of presentation | (b) Basis of presentation (i) Statement of compliance The consolidated accounts have been compiled in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The IFRS standards applied by SEK are all endorsed by the European Union (EU). Additional standards, consistent with IFRS, are imposed by the Swedish Annual Accounts Act for Credit Institutions and Securities Companies (1995:1559) (ÅRKL), Recommendation RFR 1, Supplementary Accounting Principles for Groups, issued by the Swedish Financial Reporting Board (RFR), and the accounting regulations of the Swedish FSA (FFFS 2008:25), all of which have been complied with in preparing the Consolidated Financial Statements, of which these notes form a part. SEK also follows the Swedish Government’s general guidelines regarding external reporting in accordance with the State’s ownership policy and guidelines for state-owned companies. The accounting policies of the Parent Company match those used in the preparation of the Consolidated Financial Statements, except as stated in Note 1, section (q) below. The Parent Company’s results and total assets represent most of the results and total assets of the Consolidated Group. The information in these notes relates to both the Consolidated Group and the Parent Company, unless otherwise are stated. Certain additional disclosures required by applicable regulations or legislation are included in the notes, i.e Note 30 to the Consolidated Financial Statements. Such information is deemed to be incorporated herein by reference. The Consolidated Financial Statements and the Parent Company’s annual report were approved for issuance by SEK’s Board of Directors on February 21, 2019. The Group’s Statements of Comprehensive Income and Financial Position and the Parent Company’s income statement and balance sheet will be subject to approval by SEK’s shareholder at the Annual General Meeting to be held on March 28, 2019. (ii) Basis of measurement The Consolidated Financial Statements have been prepared on an amortized cost basis, subject to the following exceptions: all derivatives are measured at fair value, financial instruments — measured at fair value through profit or loss — are measured at fair value, available-for-sale financial assets, are measured at fair value, (historical values according to IAS 39), and when applying hedge accounting at fair value, amortized cost is adjusted in the Consolidated Financial Statements based on the underlying hedged item to reflect changes in fair value with regard to the hedged risk. (iii) Functional and presentation currency SEK has determined that the Swedish krona (Skr) is the Parent Company’s functional and presentation currency under IFRS. Significant factors are that SEK’s equity is denominated in Swedish kronor, its performance is evaluated based on a result expressed in Swedish kronor, and that a large portion of SEK’s expenses, especially personnel expenses, other expenses and taxes, are denominated in Swedish kronor. SEK manages its foreign currency risk by hedging exposures between the Swedish kronor and other currencies. (iv) Going concern SEK’s Board of Directors and management have made an assessment of SEK’s ability to continue as a going concern and are satisfied that SEK has the resources to continue operations for the foreseeable future. The Board of Directors and management are not aware of any material uncertainties that could cast significant doubt upon SEK’s ability to continue as a going concern. Therefore, the Financial Statements continue to be prepared on a going-concern basis. |
Changes to accounting policies and presentation | (c) Changes to accounting policies and presentation In all significant respects, the accounting policies, bases of calculation and presentation are unchanged compared with the 2017 Annual Report, except for the application of the new and amended standards from IASB that entered into force beginning January 1, 2018 and the offset of derivative assets and derivative liabilities in relation to central clearing counterparties. In addition to the above changes, certain amounts reported in prior periods have been restated to conform to the current presentation. SEK analyzes and assesses the application and impact of changes in financial reporting standards that are applied within the Group. Changes that have not been named are either not applicable to SEK or have been adjudged to not have a material impact on SEK’s financial reporting. (i) IFRS 9 Financial instrument As of January 1, 2018, SEK began applying IFRS 9 Financial Instruments, which replaced the previous regulatory framework IAS 39 Financial Instruments: Recognition and Measurement. The impact of the transition to IFRS 9 on SEK is summarized as follows: As of January 1, 2018, SEK assessed its liquidity investments, which were previously classified as available-for-sale assets. The conclusion of the assessment was that liquidity investments are included in a portfolio where the business model entails measurement at fair value and, accordingly, they are recognized at fair value through profit or loss (FVTPL). Liquidity investments that were previously classified at fair value pursuant to the fair value option (FVO) are also classified at FVTPL. Certain fixed-rate liquidity investments were previously subject to hedge accounting and, as of January 1, 2018, these hedge accounting relationships have been terminated since liquidity investments are now measured at FVTPL. SEK’s lending meets the conditions for the solely payments of principal and interest (SPPI) tests and uses a business model that aims to collect contractual cash flows, which means SEK’s lending is measured at amortized cost. Gains and losses that arise from changes in SEK’s own credit risk on liabilities designated at fair value are recognized in the reserve for own credit risk under Other comprehensive income and are not reclassified to profit or loss in the Financial Statements of the Group. In the Financial Statements of the Parent Company, these gains and losses continue to be recognized under Net results of financial transactions in Net profit, consistent with past practice. The principle applied for the impairment of exposures has changed from an approach based on incurred credit loss events under IAS 39 to an approach based on expected credit losses (ECL). IFRS 9 requires that all assets measured at amortized cost, including credit commitments and financial guarantees, are to be tested for any impairment, which differs from IAS 39, where collective provisions are not made for off-balance-sheet items or available-for-sale financial assets. Loss allowances (ECL) are expected to mean lower initial impairment amounts but higher volatility over time. As of January 1, 2018, the transition to IFRS 9 had a total impact on the Group’s equity of Skr 14 million. IFRS 9 had no material impact on the Group’s capital adequacy and large exposure ratios. SEK is not restating comparative periods. Comparative information for 2017 is reported pursuant to IAS 39 and is not comparable with the information presented for 2018 under IFRS 9. Differences arising from the introduction of IFRS 9 are recognized directly in retained earnings as of January 1, 2018. Changes in the classification and measurement of financial assets and liabilities. While the existing categories for financial assets are being removed, the three valuation approaches are being kept: fair value through profit or loss (FVTPL), fair value through other comprehensive income (FVOCI), and amortized cost. To determine what to recognize and how to do so, a new evaluation model is being introduced, based on the business model, which is assessed at portfolio level, and type of cash flows, which is assessed at instrument level. The option remains on initial recognition of a transaction, to recognize financial instruments at FVTPL in cases where it eliminates or significantly reduces inconsistencies in valuations and accounting (FVO). The rules under IAS 39 are essentially transferred for the recognition of financial liabilities, with the exception of gains and losses arising from changes in SEK’s own credit risk on liabilities classified in accordance with FVO. Under IFRS 9, these value changes are recognized in other comprehensive income. Recognition of embedded derivatives in financial liabilities remains unchanged. From January 1, 2018, SEK is classifying financial assets on the basis of the business model and type of cash flow (the asset’s terms and conditions) as either: · Financial assets at amortized cost (AMC) or · Financial assets at fair value through profit or loss (FVTPL) Financial liabilities are measured at amortized cost or, if the liability is a derivative or when FVO is used, at FVTPL. The previous category Other financial liabilities has changed its name to Financial liabilities measured at amortized cost (AMC), in other words, a financial liability is classified either as: · Financial liabilities at amortized cost (AMC) or · Financial liabilities measured at fair value through profit or loss (FVTPL) From January 1, 2018, SEK is not reclassifying financial assets, apart from exceptional cases that would change SEK’s fundamental business model. Changes in the impairment of financial assets. IFRS 9 entails a general change in the approach to the recognition of impairment of financial assets, since the principle applied for the impairment of exposures has changed from the approach based on incurred credit loss events under IAS 39 to instead be based on expected credit losses. SEK’s calculation of the collectively-assessed credits reserve under IAS 39 was also based on a method using expected credit losses. IFRS 9 states that all assets measured at amortized cost, including credit commitments and financial guarantees, are to be tested for any impairment need, which differs from IAS 39, where collective provisions are not made for off-balance- sheet items or available-for-sale financial assets. Changes in hedge accounting. The new rules on hedge accounting allow entities to better reflect risk management activities in financial reporting. IFRS 9 opens opportunities to improve and simplify hedge accounting, which primarily impacts the administrative process for hedge accounting at SEK. The standard expands possibilities for hedging the risk components of non-financial items and allows the inclusion of more types of instruments in a hedge relationship. Moreover, the previous quantitative requirement of 80–125 percent in effect is removed. The three types of hedge relationships set out in IAS 39 (fair-value hedges, cash-flow hedges and hedges of net investment in a foreign operation) are unchanged in IFRS 9. The accounting for each type of hedge is also the same as in IAS 39. SEK only uses fair-value hedges. A hedging relationship qualifies for hedge accounting only if all of the following criteria are met: the hedging relationship consists only of eligible hedging instruments and eligible hedged items; at its inception there is formal designation and documentation of the hedging relationship and the entity’s risk management objective and strategy for undertaking the hedge; and the relationship meets all of the hedge effectiveness requirements. (ii) IFRS 15 Revenue from Contracts with Customers As of January 1, 2018, SEK also applied the new standard IFRS 15, which describes a comprehensive model for the recognition of revenue from contracts with customers and which replaces current IFRS standards and interpretations for revenue recognition, such as IAS 18 Revenue. The standard is a five-step model, including accounting and measurement requirements, as well as new disclosures. The standard does not apply to financial instruments or leasing contracts. The major part of the revenues classified as commission earned constitutes revenue from contracts with customers according to IFRS 15. SEK adopted the standard with retroactive application, and comparative figures are not recalculated. The adoption of IFRS 15 has not resulted in any changed accounting principles, and therefore does not affect equity. The standard will not have any material impact on SEK’s Financial Statements, capital adequacy or large exposures. (iii) IAS 1.82 Interest income calculated using the effective interest method As of December 31, 2018, SEK presented interest income calculated using the effective interest method separately in the Consolidated Statement of Comprehensive Income and Parent Company Income Statement due to changes in IAS 1.82. Comparatives are recalculated. (iv) Changes in Swedish regulations Amendments have been made in the Swedish Annual Accounts Act for Credit Institutions and Securities Companies (1995:1559). These amendments were implemented January 1, 2018 but have not had any significant impact on SEK’s Financial Statements. In addition, the Swedish Financial Supervisory Authority has amended the accounting regulation FFFS 2008:25 by issuing FFFS 2017:18 and the Swedish Financial Reporting Board has amended the accounting recommendation for groups by issuing “RFR 1 Supplementary Accounting Rules for Groups – January 2018”. SEK implemented those amendments on January 1, 2018 but they have not had any significant impact on SEK’s Financial Statements. (v) Offset of derivative assets and derivative liabilities As of December 31, 2018 derivative assets and derivative liabilities in relation to central clearing counterparties are offset in the Consolidated Statement of Financial Position and the Parent Company Balance sheet. Comparatives are recalculated. (vi) Transition information The following tables illustrate the effect of implementing IFRS 9 in the Statement of Financial Position and retained earnings, including the effect of replacing IAS 39’s impairment model with an ECL model pursuant to IFRS 9. The following table summarizes the effect on the classification and measurement of SEK’s financial assets and liabilities as of January 1, 2018: Skr mn Financial assets Measurement category under IAS 39 Carrying amount Reclassification ECL Carrying amount Measurement Cash and cash equivalents Loans and accounts receivable 1,231 — 0 1,231 AMC Treasuries/government bonds(1) Available-for-sale assets 4,382 4,382 — 4,382 FVTPL Other interest-bearing securities except loans(1) Available-for-sale assets 39,694 39,694 — 39,694 FVTPL Assets at fair value through profit or loss (FVO) 113 113 — 113 FVTPL Loans in the form of interest-bearing securities Loans and accounts receivable 41,125 — -17 41,108 AMC Loans to credit institutions Loans and accounts receivable 23,198 — -2 23,196 AMC Loans to the public Loans and accounts receivable 141,111 — 40 141,151 AMC Derivatives(2) Assets at fair value through profit or loss 7,803 — — 7,803 FVTPL Total financial assets 258,657 44,189 21 258,678 Borrowings from credit institutions Other financial liabilities 2,317 — — 2,317 AMC Borrowings from credit institutions Other financial liabilities 0 — — 0 AMC Debt securities issued Financial liabilities at fair value through profit or loss (FVO) 63,421 — — 63,421 FVTPL Other financial liabilities 159,095 — — 159,095 AMC Derivatives Financial liabilities at fair value through profit or loss 16,480 — — 16,480 FVTPL Subordinated liabilities Other financial liabilities 2,040 — — 2,040 AMC Provisions(2) 45 — 3 48 Total financial liabilities 243,398 — 3 243,401 (1) As of January 1, 2018, SEK has made an assessment of the liquidity investments that were previously classified as available-for-sale assets. The conclusion was that these are included in a portfolio where the business model entails measurement at fair value and, accordingly, they are recognized at fair value through profit or loss (FVTPL). Those liquidity investments that were previously classified at fair value pursuant to the fair-value option are also classified at FVTPL due to the portfolio’s business model. Certain fixed-rate liquidity investments were already subject to hedge accounting and, from January 1, 2018, these hedge accounting relationships have been terminated since liquidity investments are now measured at FVTPL. (2) Accumulated expected credit losses for off-balance sheet items are reported under provisions in the Statement of Financial Position. The following table illustrates the effect of IFRS on reserves and retained earnings: Reserves and Skr mn retained earnings Reserve for changes in own credit risk Closing balance under IAS 39 (December 31, 2017) — The impact of transferring value changes due to changes in credit risk to the Reserve for changes in own credit risk -524 Tax 115 Opening balance under IFRS 9 (January 1, 2018) -409 Fair-value reserve Closing balance under IAS 39 (December 31, 2017) 9 Reclassification of instruments from AFS to FVTPL -12 Tax 3 — Retained earnings Closing balance under IAS 39 (December 31, 2017) 13,554 The impact of transferring value changes due to changes in credit risk to the Reserve for changes in own credit risk 409 Reclassification of instruments from AFS to FVTPL 9 Effect of IFRS 9 – ECL 18 Tax -4 Opening balance under IFRS 9 (January 1, 2018) 13,986 Total changes in equity on introduction of IFRS 9 14 The following table is a reconciliation of the closing balance for accumulated impairments under IAS 39 and the opening balance for accumulated impairments under IFRS 9. Impairment reserve under ECL IFRS 9 IAS 39 as per as per Skr mn 31 December 2017 Revaluation 1 January 2018 Loans and receivables under IAS 39/financial assets at amortized cost under IFRS 9 155 -21 134 Available-for-sale assets under IAS 39/FVTPL pursuant to IFRS 9 — — — Total 155 -21 134 Collateral provided and contingent liabilities — 3 3 Total 155 -18 137 |
Basis of consolidation | (d) Basis of consolidation The Consolidated Financial Statements encompass the Parent Company and all subsidiaries, meaning companies over which the Parent Company has control and that are impacted by the Company’s results. The Consolidated Financial Statements have been prepared using the purchase method. The Financial Statements of the subsidiary are included in the Consolidated Financial Statements from the date that control commences until the date that control ceases. The accounting policies of subsidiary are consistent with Group policies. Intra-group transactions and balances, and any unrealized gains and losses arising from intra-group transactions, are eliminated in preparing the Consolidated Financial Statements. Unless otherwise stated or when it is clear from the context, the information in these notes relates to the Consolidated Group and the Parent Company. Consolidation of SEK pursuant to the supervisory regulations does differ from the consolidation made in the Consolidated Financial Statements for 2018, as SEKETT AB is not a financial company and no consolidation of SEK pursuant to the supervisory regulation was made. Since no subsidiary is an institute pursuant to the CRR definition, no subsidiary is subject to the supervisory regulations on an individual basis. No current or anticipated material restrictions to prompt transfer of own funds or repayment of liabilities among the parent or its subsidiary have been identified. |
Segment reporting | (e) Segment reporting Segments are identified based on internal reporting to the CEO who serves as the chief operating decision maker. SEK has one segment, lending, based partly on the Company’s assignment from the owner, which is to ensure access to financial solutions for the Swedish export industry on commercial and sustainable terms, and partly on how governance and earnings monitoring of the business are conducted. Accordingly, no segment reporting has been prepared. Disclosures regarding the geographic breakdown and revenue per product group are presented in Note 2. |
Recognition of operating income | (f) Recognition of operating income (i) Net interest income Interest revenue and interest expense related to all financial assets and liabilities, regardless of classification, are recognized in net interest income. Interest revenue and interest expense are recognized on a gross basis, with the exception of interest revenue and interest expenses related to derivatives, which are reported on a net basis. Interest for derivatives used to hedge borrowing is recognized as interest expense and interest on all derivatives used to hedge assets is recognized as interest revenue, regardless of whether the contracts’ net interest is positive or negative. This reflects the real interest expense of borrowing after taking economic hedges into account. Negative interest rates on assets are recognized as interest expense and negative interest rates on liabilities are recognized as interest revenue. Interest income calculated using the effective interest method presented in SEK’s Financial Statements applies only to those assets that are subsequently measured at amortized cost and the interest for hedging instruments related to those assets as the effective interest method is a measurement technique whose purpose is to calculate amortized cost and allocate interest revenue over the relevant time period. This interest income and corresponding interest expense are calculated and recognized based on the effective interest rate method or based on a method that results in interest revenue or interest expense that is a reasonable approximation of the result that would be obtained using the effective interest method as the basis for the calculation. The effective interest rate is regarded as an integral part of the effective interest rate of a financial instrument (usually fees received as compensation for risk). The effective interest rate is equivalent to the rate used to discount contractual future cash flows to the carrying amount of the financial asset or liability. The item Other interest income covers interest income of financial assets at fair value through profit or loss and the administrative remuneration for the CIRR-system, as defined below. In addition to interest revenue and interest expense, net interest income, where these are recognized as interest expense, includes the resolution fee (formerly called the stability fund fee) and guarantee commissions that are comparable to interest. Pursuant to the Company’s assignment as stated in its owner instruction issued by the Swedish government, SEK administers credit granting in the Swedish system for officially supported export credits (CIRR-system). SEK receives compensation from the Swedish government in the form of an administration fee, which is calculated based on the principal amount outstanding. SEK has determined that the CIRR-system should be considered an assignment whereby SEK acts as an agent on behalf of the Swedish government, rather than being the principal in individual transactions. Accordingly, interest revenue, interest expense and other costs pertaining to CIRR-system assets and liabilities are not recognized in SEK’s Statement of Comprehensive Income. The administrative compensation received by SEK from the Swedish government is recognized as part of interest income in SEK’s Statement of Comprehensive Income since the commission received in compensation is equivalent to interest. Any income for SEK that arises from its credit arranger role is recognized in SEK’s Statement of Comprehensive Income under net interest income. All assets and liabilities related to the CIRR-system are respectively included in the Consolidated Statement of Financial Position and in the Parent Company’s balance sheet since SEK bears the credit risk for the lending and acts as the counterparty for lending and borrowing. Unrealized revaluation effects on derivatives related to the CIRR-system are recognized net under other assets. (ii) Net fee and commission expense Commissions earned and commissions incurred are recognized as net fee and commission expense in SEK’s Statement of Comprehensive Income. The gross amounts of commissions earned and commissions incurred are disclosed in the notes to the Financial Statements. The major part of the revenues classified as commission earned constitutes revenue from contracts with customers according to IFRS 15. The recognition of commissions earned depends on the purpose for which the fee is charged. Fees are either recognized as revenue when services are performed or accrued over the period of a specific business transaction. Lending fees that are not part of the effective interest of a financial instrument are recognised at a point of time, such as when the transaction has been performed. Commissions incurred are transaction-based, and are recognized in the period in which the services are received. Guarantee commissions that are comparable to interest and fees that comprise integrated components of financial instruments, and therefore included in the effective interest rate, are not recognized as commissions and are instead included under net interest income. (iii) Net results of financial transactions Net results of financial transactions include realized gains and losses related to all financial instruments and unrealized gains and losses on all financial instruments measured at fair value, except for the types of financial instruments for which the change is to be recognized in other comprehensive income. Gains and losses include gains and losses related to currency exchange effects, interest-rate changes, changes in basis-spreads and changes in the credit rating of the counterparty to the financial contract. The item also includes the hedge ineffectiveness, i.e. market value changes attributable to hedged risks and derivatives in fair-value hedges. Realized gains and losses from financial instruments measured at amortized cost, such as interest rate compensation received and realized gains/losses from the repurchase of issued own debt, are recognized as they arise directly under net results of financial transactions. |
Foreign currency transactions | (g) Foreign currency transactions Monetary assets and liabilities in foreign currencies have been translated into the functional currency (Swedish krona) at the exchange rates applicable on the last day of each reporting period. Revenues and costs in foreign currencies are translated into Swedish kronor at the exchange rate prevailing on the dates that they arise. Any changes in the exchange rates between the relevant currencies and the Swedish krona relating to the period between the dates that they arise and the date of settlement are recognized as currency exchange effects. Currency exchange effects on the nominal amounts of financial assets and liabilities measured at fair value are recognized as currency exchange effects, although the currency exchange effect on the change in fair value that arises due to other components is not separated. Currency exchange effects are included as a component of net results of financial transactions. |
Financial instruments | (h) Financial instruments (i) Recognition and derecognition in the Statement of Financial Position When recognizing financial instruments, trade date accounting is applied for the recognition and derecognition of securities bought, securities issued and derivatives. Other financial instruments are recognized in the Statement of Financial Position and derecognized from this on the relevant settlement date. The difference between the carrying amount of a financial liability or an asset (or part of a financial liability or an asset) that is extinguished or transferred to another party and the consideration paid is recognized in the Statement of Comprehensive Income under net results of financial transactions. A financial asset or liability is recognized in the Statement of Financial Position only when SEK becomes a party to the contractual provisions of the instrument. A financial asset is derecognized from the Statement of Financial Position when the contractual rights to receive the cash flows from the asset cease or when the asset is transferred and the transfer qualifies for derecognition. A financial liability (or part of a financial liability) is derecognized from the Statement of Financial Position only when it is extinguished, such as when the obligation specified in the contract is discharged, canceled or expires. In the case of renegotiated financial assets, such as lending, the asset is derecognized from the Statement of Financial Position when the terms of the loan are deemed to be substantially different. The terms are deemed to be substantially different when the present value of the cash flows under the new terms, including any fees paid net of any fees received and discounted using the original effective interest rate, differs by not less than 10 percent from the discounted present value of the remaining cash flows for the original debt instrument. A change of currency or counterparty are deemed substantially different terms. Should the renegotiated loan entail terms that are substantially different, it is recognized as a new loan. (ii) Measurement on initial recognition When financial instruments are initially recognized, they are measured at fair value plus, in the case of financial assets or financial liabilities not carried at fair value through profit or loss, any transaction costs that are directly attributable to the acquisition or issuance of the financial asset or financial liability. (iii) Offsetting Financial assets and liabilities are offset and presented in the Statement of Financial Position when the Group has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle the liability simultaneously. Derivative assets and derivatives liabilities in relation to central clearing counterparties are offset in the Consolidated Statement of Financial Position, but cash collateral received or paid is accounted for separately as paid or received cash collaterals. Refer to Note 14 for further information about the offsetting of financial assets and financial liabilities. (iv) Classification of financial assets and liabilities Financial assets and liabilities are categorized in two categories for valuation purposes: amortized cost (AMC) and fair value through profit or loss (FVTPL). Financial assets at amortized cost (AMC). Prior to January 1, 2018, the balance sheet items Cash and cash equivalents, Loans to credit institutions, Loans to the public and Loans in the form of interest-bearing securities were recognized in the loans and receivables category if the transaction was not listed in an active market and was accordingly measured at amortized cost pursuant to the effective interest rate method. From January 1, 2018, the balance sheet items Cash and cash equivalents, Loans to credit institutions, Loans to the public and Loans in the form of interest-bearing securities are recognized at amortized cost, provided that the following criteria are met by all assets: The financial asset is included in a portfolio where the business model aims to collect contractual cash flows and The terms and conditions for the financial asset entail that the cash flows received comprise solely payments of principal and interest (SPPI) on nominal amounts outstanding. The business model is based on SEK’s overriding portfolio objective and on how the Company manages, monitors and evaluates the financial assets in the portfolio from both a business and a risk perspective. The business model is established at a level (homogenous portfolio) that reflects how the asset is treated in relation to the objective/business goal. The following parameters have been evaluated in relation to the liquidity portfolio: Internal targets and governance of the liquidity portfolio, and documentation thereof; Administration and commercial follow-up; Risk management, follow-up and reporting; Frequency, objective and volume in terms of noted sales; and Remuneration models, and how these are impacted by valuation methods. IFRS 9 requires that SEK categorize financial assets based on the properties of the contractual cash flows, where the financial asset is held in a business model with the objective of holding assets to collect contractual cash flows (hold to collect). The assessment of the properties of the contractual cash flows aims to identify if the contractual cash flows comprise solely payments of principal and interest, which is an SPPI test. Contractual cash flows that solely payments of principal and interest qualify as a basic lending arrangement, which is a prerequisite for measuring the instrument at amortized cost. SEK has prepared a tool for the implementation and documentation of evaluations and assessments of financial assets in the lending portfolios, whereby relevant factors are taken into consideration, such as the tenor of the interest rate in relation the interest-rate setting period, interest-rate cap/floor, index-linked coupon/interest, payment trigger, currency mismatch, government interest rates and early repayment. Financial assets measured at fair value through profit or loss (FVTPL). Prior to January 1, 2018, financial assets were irrevocably categorized to recognition at fair value through profit or loss, and assets held for trading were recognized in the category financial assets measured at fair value through profit or loss. When two or more derivatives hedge both interest-rate and credit exposures in an asset, such transactions were sometimes previously classified irrevocably as a financial asset at fair value through profit or loss (FVO), since making such designations eliminates or significantly reduces an accounting mismatch that would otherwise arise from measuring assets or liabilities or recognizing the gains or losses on them on different bases. Derivatives are always classified as financial assets or liabilities at fair value through profit or loss, except when they are subject to hedge accounting. From January 1, 2018, SEK does not use FVO for financial assets, and the financial assets are measured at FVTPL because it is mandatory. Derivatives are always measured at FVTPL. Interest-bearing securities included in SEK’s liquidity investments, consisting of the balance-sheet items Treasuries/government bonds and Other interest-bearing securities except loans, are measured at fair value (FVTPL) and, accordingly, they are included in a portfolio, where the business model entails measurement at fair value. Liquidity investments were recognized under IAS 39 in the available-for-sale financial assets category and were measured at fair value with unrealized changes in fair value recognized in other comprehensive income. Financial assets measured at fair value through profit or loss (FVTPL) are recognized at fair value in the Statement of Financial Position. Changes in fair value are recognized in profit or loss under the item Net results of financial transactions. Financial liabilities measured at fair value through profit or loss (FVTPL). There are two main subcategories in the category of financial liabilities at fair value through profit or loss: financial liabilities designated upon initial recognition at fair value through profit or loss (FVO) and financial liabilities mandatorily measured at fair value. Securities issued by SEK containing embedded derivatives are in their entirety irrevocably classified as financial liabilities at fair value through profit or loss. Derivatives are always measured at FVTPL. Financial liabilities measured at fair value through profit and loss are recognized at fair value in the Statement of Financial Position. Changes in fair value are recognized in profit or loss under the item Net results of financial transactions with the exception of gains and losses that arise from changes in SEK’s own credit risk on liabilities classified in accordance with FVO. Such changes are recognized in the Reserve for changes in own credit risk under Other comprehensive income and are not reclassified to profit or loss. Financial liabilities at amortized cost (AMC). All debt securities issued by SEK other than those classified as financial liabilities at fair value through profit or loss are measured at amortized cost, using the effective interest rate method. Where one or more derivative is used to hedge currency, interest rate and/or other exposures, fair-value hedge accounting is applied. Subordinated debt is classified as other financial liabilities and is subject to fair-value hedge accounting. When applying fair-value hedge accounting on subordinated debt, hedging is applied to the subordinated debt for the period corresponding to the derivative’s time to maturity, when the maturities do not coincide. For more information regarding the classification of financial assets and liabilities under IAS 39 (applicable prior to January 1, 2018), please see SEK’s Annual Report 2017, Note 1 Section (h). (v) Presentation of certain financial instruments in the Statement of Financial Position The presentation of financial instruments in the Statement of Financial Position differs in certain respects from the categorization of financial instruments made for valuation purposes. Loans in the form of interest-bearing securities comprise loans granted to customers that are contractually documented in the form of interest-bearing securities, as opposed to bilateral loan agreements, which are classified in the Statement of Financial Position either as loans to credit institutions or loans to the public. All other financial assets that are not classified in the Statement of Financial Position as loans in the form of interest-bearing securities are presented as cash and cash equivalents, treasuries/government bonds, other interest-bearing securities except loans or derivatives. (vi) Presentation of certain financial instruments Derivatives. In the ordinary course of its business, SEK uses various types of derivatives for the purpose of hedging or eliminating SEK’s interest-rate, currency-exchange-rate or other exposures. Derivatives are always classified as financial assets or liabilities at fair value through profit or loss. Where SEK decides to categorize a financial liability at fair value through profit or loss (FVO), the purpose is always to avoid the mismatch that would otherwise arise from the fact that the changes in the value of the derivative, measured at fair value, would not match the changes in value of the underlying liability, measured at amortized cost. Guarantees. SEK holds financial guarantees in connection with certain loans. Such guarantees are ordinarily accounted for as guarantees in accordance with SEK’s established accounting policy and are therefore not recognized in the Consolidated Statement of Financial Position (except for the deferred costs of related guarantee fees paid in advance for future periods). When SEK classifies a risk-mitigating instrument as a financial guarantee, SEK always owns the specific asset whose risk the financial guarantee mitigates and the potential amount that SEK can receive from the counterparty under the guarantee represents only the actual loss incurred by SEK related to its holding. Premiums on financial guarantees are accrued and recognized as interest expense in net interest income. Credit default swaps are recognized at fair value at fair value through profit or loss. Embedded derivatives. In the ordinary course of its business, SEK issues financial liabilities that frequently contain embedded derivatives. When financial liabilities contain embedded derivatives, where the financial characteristics and risks of the instrument’s unique components are not related, the entire instrument is irrevocably classified as financial liabilities measured at fair value through profit or loss (FVO), and thus does not separate the embedded derivatives. Leasing assets. In the ordinary course of its business, SEK acquires leases that are classified as finance leases (as opposed to operating leases). When making such a classification, all aspects of the leasing contract, including third-party guarantees, are taken into account. Any lease payment that is received from a lessee is divided into two components for the purposes of measurement: one component constituting a repayment of the loan and the other component recognized as interest income. Committed undisbursed loans and binding offers. Committed undisbursed loans and binding offers, disclosed under the heading “Commitments” in Note 24 are measured as the undiscounted future cash flows concerning loan disbursements related to loans committed but not yet disbursed at the reporting period end date, as well as binding offers. Repurchased debt. SEK repurchases its own debt from time to time. Gains or losses that SEK realizes when repurchasing own debt instruments are recognized in the Statement of Comprehensive Income as a component of Net results of financial transactions. (vii) Hedge accounting SEK applies hedge accounting in cases where derivatives are used to create economic hedging and the hedge relationship is eligible for hedge accounting, with the exception of lending within the CIRR-system, for which hedge accounting is not applied. The method used for hedge accounting is either fair-value hedge accounting or cash-flow hedge accounting. In order to be able to apply hedge accounting in accordance with IFRS 9, the hedge relationship must meet the hedge effectiveness criteria at the beginning of each hedged period which requires that: there is an economic relationship between the hedged item and the hedging instrument; the effect of credit risk does not dominate the value changes that result from that economic relationship; and the hedge ratio of the hedging relationship is the same as that actually used in the economic hedge. Fair-value hedge accounting. Fair-value hedge accounting is used for transactions in which one or several derivatives are used to hedge the interest-rate risk that has arisen from a fixed-rate financial asset or liability. When applying fair-value hedging, the hedged item is revalued at fair value with regard to the risk being hedged. SEK defines the risk being hedged in fair-value hedge accounting as the risk of a change in fair value with regard to a chosen reference rate (referred to as interest-rate risk). The hedged item may be a component of the financial asset or liability, i.e. comprises less than the entire fair value change for the financial asset or liability. That could be a component of the nominal amount or the tenor of the item. The hedging instrument may consist of one or several derivatives that exchange fixed interest for floating interest in the same currency (interest-rate derivatives) or one or several instruments that exchange fixed interest in one currency for floating interest in another currency (interest and currency derivatives), in which case the currency risk is a part of the fair value hedge. Both at inception of the hedge and on an ongoing basis, SEK’s hedging relationships are expected to be highly effective in achieving offsetting changes in fair values attributable to the hedged risk. An assessment of effectiveness is performed by comparing critical terms for the hedged item and the hedging transaction. If they are identical, but reversed, the hedge relationship is regarded 100% effective. The hedge ratio is 1:1 other than in specific circumstances where SEK may choose a hedge ratio other than 1:1 in order to improve the effectiveness. Potential sources of ineffectiveness in the hedge relationship are: changes in timing of the payment of the hedged item, use of an existing derivative with a non-zero fair value, changes in timing of the trade date of the derivative and the validation of the hedge relationship, the different treatment of currency basis in calculating changes in the fair value of the hedging instrument and hedged item and a significant change in the credit risk of either party to the hedge relationship. The credit risk of the entities is monitored by the Credit Department on an ongoing basis. The risk associated with SEK and the counterparty at the inception of the hedge relationship is considered minimal and does not dominate the value changes that result from the economic relationship. This will be reassessed in cases where there is a significant change in either party’s circumstances, for example if the counterparty is in default. In addition, the hedging instruments used by SEK consist of derivatives subject to margining, clearing and cash collateralization, which significantly reduced the credit risk for both parties involved. Therefore, the credit risk is unlikely to dominate the change in fair value of the hedging instrument. Ineffectiveness is defined as the difference between the fair value change relating to the hedged risk of the hedged item and the fair value change relating to the hedging instrument. Any ineffectiveness is recognised automatically in profit or loss as a result of separately remeasuring the hedged item and the hedging instrument. If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the risk management objective for that designated hedging relationship remains the same, the hedge ratio of the hedging relationship must be adjusted (i.e. rebalances the hedge) so that it meets the qualifying criteria again. Hedge accounting is discontinued prospectively only when the hedging relationship (or a part of a hedging relationship) ceases to meet the qualifying criteria (after any rebalancing). This includes instances when the hedging instrument expires or is sold, terminated or exercised. If a fair-value hedge relationship no longer fulfills the requirements for hedge accounting, that component of the hedged item ceases to be measured at fair value and is measured at amortized cost, and the previously recognized fair-value changes for the hedged item are amortized over the remaining tenor of the previously hedged item. Cash flow hedges. Cash flow hedge accounting is used for transactions in which one or several derivatives hedge risk for variability in the cash flows from a floating-rate financial asset or liability. When hedging cash flows, the hedged asset or liability is measured at amortized cost and changes in fair value in the hedging instrument are recognized in other comprehensive income. When the hedged cash flow is recognized in profit or loss, the value changes in the hedging instrument in the Statement of Comprehensive Income are reclassified from other comprehensive income to profit or loss. SEK defines the risk hedged in a cash flow hedge as the risk of variability of cash flows with regard to a chosen reference rate (referred to as cash flow risk). The hedging instrument may consist of one or several derivatives that exchange floating interest for fixed interest in the same currency (interest-rate derivatives) or one or several derivatives that exchange floating interest in one currency for fixed interest in another currency (interest and currency derivatives). If a cash flow hedge relationship no longer fulfills the requirements for hedge accounting, and accumulated gains or losses related to the hedge have been recorded in equity, such gains or losses remain in equity and are amortized through other comprehensive income to net interest income over the remaining tenor of the hedged item. A description of the differences between IFRS 9 and IAS 39 are found below. For more information regarding the accounting policies for hedge accounting under IAS 39, please see SEK’s Annual Report 2017, Note 1 Section (h). Aggregated exposures. IFRS 9 permits an aggregated exposure that includes a derivative to be an eligible hedged item. This is a change from IAS 39 which explicitly prohibits a derivative from being designated as a hedged item (unless it is a written option designated as an offset to a purchased option). Hedge effectiveness. The qualifying criteria in the IFRS 9 hedge accounting model significantly differ from those in IAS 39. To qualify for hedge accounting under IAS 39, the hedging instrument must be highly effective at achieving offsetting changes in fair value or cash flows attributable to the hedged risk both prospectively and retrospectively. To be highly effective, the level of offset must be between 80 percent and 125 percent. Entities must perform quantitative effectiveness tests on an ongoing basis to demonstrate that the hedging relationship qualifies for hedge accounting. The IFRS 9 hedge accounting model employs a more principles-based approach. To qualify for hedge accounting, the hedge relationship must meet the hedge effectiveness criteria at the beginning of each hedged period which requires that: there is an economic relationship between the hedged item and the hedging instrument; the effect of credit risk does not dominate the value changes that result from that economic relationship; and the hedge ratio of the hedging relationship is the same as that actually used in the economic hedge. Rebalancing and discontinuation of hedge accounting. If a hedging relationship ceases to meet the hedge effectiveness requirement relating to the hedge ratio but the risk management objective for that designated hedging relationship remains the same, the hedge ratio of the hedging relationship must be adjusted (i.e. rebalance the hedge) so that it meets the qualifying criteria again. Hedge accounting is discontinued prospectively only when the hedging relationship (or a part of a hedging relationship) ceases to meet the qualifying criteria (after any rebalancing). This includes instances when the hedging instrument expires or is sold, terminated or exercised. Discontinuing hedge accounting can either affect a hedging relationship in its entirety or only a part of it (in which case hedge accounting continues for the remainder of the hedging relationship). Unlike under IAS 39, hedge accounting may not be voluntarily discontinued if the criteria for discontinuation are not met, in other words, the possibility for voluntarily discontinuing the hedging relationship is removed. (viii) Principles for determination of fair value of financial instruments The best evidence of fair value is prices in an active market. Fair-value measurements are categorized using a fair-value hierarchy. The financial instruments carried at fair value in the Statement of Financial Position have been categorized under the three levels of the fair-value hierarchy according to IFRS that reflect the significance of inputs. The categorization of these instruments is based on the lowest level of input that is significant to the fair value measurement in its entirety. SEK uses the following hierarchy for determining and disclosing the fair value of financial instruments, based on valuation techniques: Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities; Level 2: valuation models for which all inputs with a significant effect on the recorded fair value are observable, either directly or indirectly; and Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on observable market data. SEK recognizes transfers between levels of the fair-value hierarchy in the beginning of the reporting period in which the change has occurred. For all classes of financial instruments (assets and liabilities), fair value is established by using internally established valuation models, externally established valuation models or observable market prices. If the market for a financial instrument is not active, fair value is established by using a valuation technique. The objective of using a valuation technique is to establish what the transaction price would have been at the measurement date in an arm’s length exchange based on normal business terms and conditions. Valuation techniques include using recent arm’s length market transactions between knowledgeable, willing parties, if available. Reference to the current fair value of another instrument that is substantially the same can also be used. If the aforementioned are not available, discounted cash flow analysis or option pricing models may be used for assessing the instrument’s value. Periodically, the valuation techniques are calibrated and tested for validity using prices from observable current market transactions in the same instruments, or based on any available observable market data, or compared with the counterparty’s prices. In calculating fair value with valuation models, SEK seeks to use liquid, observable market quotes (market data) as far as possible, to best reflect the market’s view on prices. These market quotes are used, directly or indirectly, for the calculation of fair value. Examples of the indirect use of market data are: the derivation of discount curves from observable market data, which is then interpolated to calculate the non-observable data points; and model parameters in quantitative models, which are used to calculate the fair value of a structured product, where the model is calibrated so that available market data can be used to recreate observable market prices on similar instruments. In some cases, due to low liquidity in the market, there is no access to observable market data. In these cases, SEK follows market practice by basing its valuations on similar observable market data. One example is if there are no observable market prices for a bond it can be valued through a credit curve based on observable prices for instruments with the same credit risk. For observable market data, SEK uses third-party information based on purchased contracts (such as Reuters and Bloomberg). This type of information can be divided into two groups, with the first group consisting of directly observable prices and the second of market data calculated from the observed prices. Examples from the first group are — for various currencies and maturities — currency rates, stock prices, share index levels, swap prices, future prices, basis spreads and bond prices. The discount curves that SEK uses, which are a cornerstone of valuation at fair value, are constructed from observable market data. Examples from the second group are the standard forms of quotes, such as call options in the foreign exchange market quoted through volatility, which is calculated so that the “Black-Scholes model” recreates observable prices. Further examples from this group are — for various currencies and maturities — currency volatility, swap volatility, cap/ floor volatilities, stock volatility, dividend schedules for equities and credit derivative spreads. SEK continuously assures the high quality of market data, and a thorough validation of market data is exercised quarterly in connection with the financial reporting. For transactions that cannot be valued based on observable market data, the use of non-observable market data is necessary. Examples of non-observable market data are discount curves created using observable market data that are then extrapolated to calculate non-observable interest rates, correlations between different underlying market parameters and volatilities at long maturities. Correlations that are non-observable market data are calculated from time-series of observable market data. When extrapolated market data such as interest rates are used they are calculated by setting the last observable node as a constant for longer maturities. Non-observable market data, such as SEK’s own credit rating, are assessed based on recently completed emissions by SEK, or if no continuous flow of new transactions exist, spreads against other issuers, in those cases in which observable prices in the secondary market are unavailable. The valuation models applied by SEK comply with accepted methods for pricing financial instruments. Fair value adjustments are applied by SEK when there are additional factors that market participants take into account and that are not captured by the valuation model. The independent risk function assesses the level of fair-value adjustments to reflect counterparty risk, SEK’s own credit rating and other non-observable parameters, where relevant. Significant models for the valuation of financial instruments must receive approval from the Board’s Finance and Risk Committee. Other models are approved by the CFO. New models for valuation are reported to the Board’s Finance and Risk Committee annually, together with the applicable validation. The use of a valuation model demands a validation and thereafter an approval. Validation is conducted by the independent risk function. Analysis of significant non-observable market data, fair-value adjustments and significant changes in fair values of level 3-instruments are reviewed on quarterly basis by plausibility checks. The valuation result is analyzed and approved by persons responsible for valuation and accounting, and discussed with the Audit Committee quarterly in connection with SEK’s interim reports. (ix) Determination of fair value of certain types of financial instruments Derivatives. Derivatives are recognized at fair value, and fair value is calculated based on internally established valuation models, external valuation models, prices furnished by external parties or market prices. When calculating fair value for derivative instruments, the impact on the fair value of the instrument related to credit risk (own or counterparty) is based on publicly quoted prices on credit default swaps of the counterparty or SEK, if such prices are available. Issued debt instruments. When calculating the fair value of issued debt instruments, the effect on the fair value of SEK’s own credit risk is assessed based on internally established models founded on observations from different markets. The models used include both observable and non-observable parameters for valuation. Issued debt instruments that are compound financial instruments with embedded derivatives. SEK issues debt instruments in many financial markets. A large portion of these are compound financial instruments with embedded derivatives. SEK’s policy is to hedge the risks in these instruments using derivatives in order to obtain effective financial hedges. The entire compound financial instruments are irrevocably classified as financial liabilities measured at fair value through profit or loss, and accordingly derivatives are not separated. As there are no quoted market prices for these instruments, valuation models are used to calculate fair value. The method applied for calculating gains and losses that arise from changes in SEK’s own credit risk (OCA) is based on the change in the credit risk for the financial liability from initial recognition. In practice, this means that OCA incorporates market movements not related to changes in benchmark rates or the embedded derivatives. (x) Impairment of financial assets With IFRS 9, the principle applied for the impairment of exposures has changed from an approach based on incurred credit loss events under IAS 39 to an approach based on expected credit losses (ECL). IFRS 9 requires that all assets measured at amortized cost, including credit commitments and financial guarantees, are to be tested for any impairment, which differs from IAS 39, where collective provisions are not made for off-balance-sheet items or available-for-sale financial assets. The model for calculating ECL is based on an exposure being at one of three different stages. Initially, all exposures where at stage 1. Stage 1 also includes exposures where the credit risk is no longer significan |
Tangible assets | (i) Tangible assets Items of tangible assets are measured at cost, less accumulated depreciation and accumulated impairment losses. Cost includes expenditures that are directly attributable to the acquisition of the asset. Tangible assets are depreciated using the straight-line method over their estimated useful lives. Average useful lives, depreciation methods and residual values are evaluated and tested annually. No depreciation is carried out from the time that an asset is classified as an asset held-for- sale. |
Intangible assets | (j) Intangible assets Intangible assets comprise mainly the capitalized portion of investments in IT systems. Expenses that are directly attributable to large investments in the development of IT systems are recognized as intangible assets if they are expected to generate future economic benefits. The capitalized portion of investments in IT systems includes expenses related to the intangible asset, such as consulting fees and expenses for Group personnel who have contributed to producing the intangible asset. Each intangible asset is amortized using the straight-line method over an estimated useful life from the date the asset is available for use. Average useful lives are evaluated and reconsidered on a yearly basis. An annual impairment test is performed on intangible assets not yet used. |
Employee benefits | (k) Employee benefits SEK sponsors both defined-benefit and defined-contribution pension plans. (i) Defined-contribution plans A defined-contribution pension means that the size of the premium is predetermined, such as is the case with the BTP1 and BTPK plans. A defined-contribution plan is a post-employment benefit plan under which an entity pays fixed contributions into a separate legal entity and has no legal or constructive obligation to pay further amounts. Obligations for contributions to defined-contribution pension plans are recognized as an employee benefit expense in profit or loss at the rate at which they are accrued by employees providing services to the entity during a period. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available. (ii) Defined-benefit plans Defined-benefit pension plans means that the pension benefit is predetermined, such as is the case with the BTP2 plan. Defined-benefit plans are post-employment benefit plans other than defined-contribution plans. The present value of the net obligation for defined-benefit plans is calculated separately for each plan by estimating the amount of future benefits that employees have earned in return for their service in the current and prior periods. The net obligation is recognized in the balance sheet at its present value less the fair value of any plan assets. The cost for defined-benefit plans is allocated over the employee’s service period. The calculation is performed annually by independent actuaries. The obligations are valued at the present value of the expected future disbursements, taking into consideration assumptions such as expected future pay increases, rate of inflation and mortality rates. The discount rate used is the equivalent of the interest rate on the reporting date for Swedish mortgage bonds, with a remaining term approximating that of the actual commitments. Changes in actuarial assumptions and experience-based adjustments to obligations may result in actuarial gains or losses. These actuarial gains and losses are reported together with the difference between the actual and expected return on pension assets in other comprehensive income as incurred. Service cost, gains/losses from changes in plans, and the interest net of pension assets and liabilities are recognized in profit or loss. The companies of the Group participate in various collective pension plans covering all employees. Sufficient information is available to allow the calculation of SEK’s proportionate share in the defined-benefit liabilities, assets and the costs for these plans. The future costs of the plans may change accordingly if the underlying assumptions of the plans change. |
Equity | (l) Equity Equity in the Consolidated Group consists of the following items: share capital; reserves; retained earnings; and net profit for the year. Reserves consist of the following items: the reserve for fair-value changes in respect of available-for-sale assets (fair-value reserve, applicable prior to January 1, 2018); the reserve for fair-value changes in respect of derivatives in cash-flow hedges (hedge reserve); the reserve for fair-value changes with respect to changes in SEK’s credit risk (own credit risk reserve, applicable after January 1, 2018) and the reserve for remeasurement in respect of defined-benefit pension plans (reserve for defined-benefit pension plans). |
Taxes | (m) Taxes Income tax on the profit or loss for the year comprises current and deferred taxes. Current tax is tax expected to be payable on taxable income for the fiscal year. Deferred tax includes deferred tax in the untaxed reserves of the individual Group companies and deferred taxes on other temporary fiscal differences. Deferred tax is calculated with an expected tax rate of 22.0 percent (2017: 22.0 percent). Deferred tax is calculated on all taxable temporary differences, regardless of whether a given temporary difference is recognized in profit or loss, or through other comprehensive income. A temporary difference is the difference between the recognized and fiscal values of an asset or a liability. |
Earnings per share | (n) Earnings per share Earnings per share are calculated as net profit divided by the average number of shares. There is no dilution of shares. |
Statement of cash flows | (o) Statement of Cash Flows The Statement of Cash Flows shows inflows and outflows of cash and cash equivalents during the year. SEK’s Statement of Cash Flows has been prepared in accordance with the indirect method, whereby operating profit is adjusted for effects of non-cash transactions such as depreciation and credit losses. The cash flows are classified under operating, investing and financing activities. Cash and cash equivalents include cash at banks where amounts can be immediately converted into cash and short-term deposits where the time to maturity does not exceed three months from the acquisition date. |
Critical accounting policies, assumptions and estimates | (p) Critical accounting policies, assumptions and estimates When adopting and applying the Group’s accounting policies, in certain cases, the management makes judgments and estimates that have a significant effect on the amounts recognized in the Financial Statements. These estimates are based on past experience and assumptions that the Company believes are fair and reasonable. These estimates and the judgments behind them affect the reported amounts of assets, liabilities, income and expenses as well as disclosures. Actual outcomes can later differ from the estimates and the assumptions made. SEK assesses that the judgments made related to the following critical accounting policies are the most significant: Functional currency of the Parent Company; and That SEK should be regarded as an agent with respect to the CIRR-system. Furthermore, SEK has identified the following key sources of estimation uncertainty when applying IFRS: Fair value assessments of certain financial instruments; and Provisions for probable (under IAS 39) and expected (under IFRS 9) credit losses. (i) Functional currency of the Parent Company SEK has established that the Swedish krona (Skr) is its functional currency under IFRS. Large portions of its assets, liabilities and related derivatives are denominated in foreign currencies. Under IFRS, both assets and liabilities are translated at closing exchange rates and the differences between historical book values and current values are recognized as currency exchange effects in the Statement of Comprehensive Income. These differences largely offset each other, causing the net result not to be of a material amount in relation to total assets and liabilities in foreign currency. This reflects the economic substance of SEK’s policy of holding assets financed by liabilities denominated in, or hedged into, the same currency. See Note 27 for information on SEK’s positions in foreign currency. (ii) That SEK should be regarded as an agent with respect to the CIRR -system. SEK has determined that the CIRR-system should be considered to be an assignment whereby SEK acts as an agent on behalf of the Swedish government rather than being the principal in the individual transactions. This assessment has been made based on a number of factors, such as: (i) although it does in form, SEK does not in substance bear the risks and benefits associated with ownership; (ii) SEK does not have discretion in establishing prices; and (iii) SEK receives compensation in the form of a fixed commission. SEK has consequently presented the economic activities of the CIRR-system on a net basis in profit or loss, rather than the gross amounts collected, in accordance with the owner instruction from the State. If SEK were regarded as a principal with respect to the CIRR-system, all revenues and expenses in the CIRR- system would be regarded as revenues and expenses of SEK. However, the net effect on SEK’s operating profit would be unchanged. For information on the CIRR-system, refer to Note 25. (iii) Fair value assessments of certain financial instruments SEK recognizes a large part of the balance sheet at fair value, primarily interest-bearing securities recognized on the lines Treasuries/Government bonds and Other interest-bearing securities except loans, derivatives and issued debt. When financial instruments are recognized at fair value, these amounts are calculated on the basis of market prices, valuation models, valuations conducted by external parties and discounted cash flows. SEK’s financial instruments are predominantly not subject to public trading and quoted market prices are not available. When recognizing the amounts for assets, liabilities and derivatives, as well as income and expenses, it is necessary to make assumptions and assessments regarding the fair value of financial instruments and derivatives, particularly if they comprise unquoted or illiquid securities or other instruments of debt. Should the conditions underlying these assumptions and assessments change, the recognized amounts would also change. Refer to Note 27 for further information about the impact on the value of financial assets and liabilities of a one percentage point movement in the market interest rate. Other valuation models or assumptions could produce different valuation results. SEK makes judgments regarding what the most appropriate valuation techniques are for the different financial instruments based on their categories. In all cases, the decision is based on a professional assessment pursuant to SEK’s accounting and valuation policies. The use of a valuation model demands a validation and thereafter an approval, in addition to approval of all models at least annually. The valuation models applied by SEK comply with accepted methods for pricing financial instruments. Fair- value adjustments are applied when there are additional factors that market participants take into account and that are not captured by the valuation model. A CVA (Credit Value Adjustment) and DVA (Debt Value Adjustment) are made to reflect the counterparty’s credit risk and SEK’s own credit rating, which affects the fair value of the derivatives (see Note 13, for fair value changes related to credit risk.) When financial assets or liabilities are recognized at fair value, the instruments are recognized at their full fair value, including any credit spreads. When quoted market prices are not available for such instruments, certain assumptions must be made about the credit spread of either the counterparty or one’s own credit spread, depending on whether the instrument is an asset or a liability. Developments in the financial markets have to some extent affected the prices at which SEK’s debt is issued. These changes, which are different in different markets, have been included in the calculation of fair value for these liabilities. SEK issues debt instruments in many financial markets. A large portion of these are compound financial instruments with embedded derivatives. SEK’s policy is to hedge the risks in these instruments using derivatives with corresponding structures in order to obtain effective economic hedges. Such compound financial instruments are classified as financial liabilities measured at fair value. As there mostly are no market quotes for this group of transactions, valuation models are used to calculate fair value. The gross value of these instruments and derivatives, which effectively hedge each other, requires complex judgments regarding the most appropriate valuation technique, assumptions and estimates. If other valuation models or assumptions are used, or if assumptions are changed, this could produce other valuation results. Excluding the impact on the valuation of credit spreads on SEK’s own debt and basis spreads, such changes in fair value would generally offset each other. SEK uses derivative instruments to mitigate and reduce risks attributable to financial assets and liabilities. In order to mitigate counterparty risk, i.e. the form of credit risk generated from derivative transactions, SEK enters into such transactions only with counterparties with good credit ratings. Moreover, SEK endeavors to enter into ISDA Master Agreements with Credit Support Annexes (CSAs) with its counterparties. This means that the highest allowed risk level is established in advance, regardless of what changes in market value may occur. Derivatives are measured at fair value with reference to listed market prices where available. If market prices are not available, valuation models are used instead. SEK uses a model to adjust the fair value of the net exposure for changes in SEK’s or the counterparty’s credit quality. The models use directly observable market parameters if such are available. As of December 31, 2018, financial assets and liabilities for which valuation models had been used, and where market inputs with a significant effect on the recoded fair value are observable (level 2) amounted to Skr 64 billion (2017: Skr 46 billion) and Skr 32 billion (2017: Skr 34 billion) 22 percent and (2017: 18 percent) 12 percent (2017: 14 percent) of total financial assets and total financial liabilities respectively). Financial assets and liabilities for which valuation included significant non-observable parameters (level 3) amounted to Skr 2 billion (2017: Skr 2 billion) and Skr 54 billion (2017: Skr 46 billion) 1 percent and (2017: 1 percent) 19 percent (2017: 19 percent) of total financial assets and total financial liabilities respectively). The assessment of non-observable parameters included in models for assessing market value are associated with subjectivity and uncertainty, which can impact the results recognized for specific positions. Despite SEK using appropriate valuation models which are consistent with those used in the market, other models and assumptions for determining the fair value of financial instruments could result in other fair value estimates on the reporting date. At December 31, 2018, the total minimum and maximum effects of changing one or more non-observable parameters to reflect the assumptions under other reasonable circumstances for level 3-instruments amounted to Skr -243 million (2017: Skr -211 million) and Skr 242 million (2017: Skr 214 million) respectively. Refer to Note 13 for information regarding value changes for assets and liabilities if non-observable market parameters are changed and section (h) (viii) above for the Principles for determination of fair value of financial instruments. (iv) Provisions for probable (under IAS 39) and expected (under IFRS 9) credit losses Provisions for expected credit losses (under IFRS 9). Provisions are estimated using quantitative models, which incorporate inputs, assumptions and methodologies that involve a high degree of management judgement. In particular, the following can have a significant impact on the level of impairment provisions: determination of a significant increase in credit risk, incorporation of forward-looking macroeconomic scenarios and measurement of both 12-month and lifetime expected credit losses. A significant increase in credit risk is defined by SEK based on a deterioration by a number of steps from the initial rating. On December 31, 2018 if the definition of significant increase in credit risk had been one less step of deterioration the impairments would have been Skr 29 million higher, and if the definition had been one more step of deterioration the impairments would have been Skr 1 million lower. SEK’s method of calculating probability of default entails three scenarios being prepared for each PD curve. The three scenarios are defined by a weight allocated to each scenario. On December 31, 2018, if the probability of a downturn scenario, or respectively an upturn scenario, would have been weighted with 100% probability the impairments would have been Skr 10 million higher or lower, respectively. On December 31, 2018, SEK’s total lending amounted to Skr 209 billion and the related impairment reserve amounted to Skr 137 million. If, for example, the actual amount of total future cash flow were to have been 10 percent higher or lower than the estimate, this would have affected operating profit for the fiscal year ended December 31, 2018 by an additional approximately Skr 14 million and equity at the same date by approximately Skr 11 million. A higher total future cash flow would affect operating profit and equity positively, while a lower total future cash flow would affect operating profit and equity negatively. Provisions for probable credit losses (under IAS 39). Provisions for probable credit losses were recorded if and when SEK determined that it was probable that the obligation under a loan agreement or another asset from the counterparty and/or guarantees held and/or through calling up other collateral held, would fail to cover SEK’s full claim. A change in the underlying assumptions for these internal models, could result in a material change in provisions for probable credit losses. Impairment was recognized as the difference between the carrying value of a loan and the discounted value of SEK’s best estimate of future cash flows. This estimate took into account a number of factors related to the borrower. The actual amounts of future cash flows and the dates they are received may differ from these estimates and consequently actual losses incurred may differ from those previously recognized. On December 31, 2017, SEK’s total lending amounted to Skr 195 billion and the related impairment reserve amounted to Skr 155 million, of which the individual reserve accounted for Skr 65 million. If, for example, the actual amount of total future cash flow were to be 10 percent higher or lower than the estimate, this would affect operating profit for the fiscal year ended December 31, 2017 by an additional approximately Skr 15 million and equity at the same date by approximately Skr 12 million. A higher total future cash flow would affect operating profit and equity positively, while a lower total future cash flow would affect operating profit and equity negatively. See Note 9 and Section h (x) above for additional information. |
New standards and amendments to standards and interpretations not yet adopted | (q) New standards and amendments to standards and interpretations not yet adopted and considered relevant to SEK (i) IFRS 16 Leasing In 2016, the IASB issued the new accounting standard IFRS 16 Leases, with changes for lessees. All leases (with the exception of short-term and low-value leases) are to be recognized as right-of-use assets subject to depreciation with corresponding liabilities in the lessee’s balance sheet, and the lease payments recognized as repayments and interest expenses. Lessor accounting remains essentially unchanged. Additional disclosures are also required. SEK’s assessment is that the standard will primarily affect SEK’s recognition of operational leases for rental premises, as the lease definition and lease criteria will not result in other agreements being regarded as leases. SEK has also decided to apply the exceptions for short-term and low-value leases. Right-of-use assets, leasing liabilities, depreciations and interest expenses are not expected to have any material impact on SEK’s Financial Statements or capital adequacy or large exposure ratios. The standard became applicable January 1, 2019. SEK will apply the simplified approach during the transition to IFRS 16. There are no other IFRS or IFRS IC interpretations that are not yet applicable that are expected to have a material impact on SEK’s Financial Statements, capital adequacy or large exposure ratios |
Significant accounting polici_3
Significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Significant accounting policies | |
Explanation of initial application of IFRS 9 | The following table summarizes the effect on the classification and measurement of SEK’s financial assets and liabilities as of January 1, 2018: Skr mn Financial assets Measurement category under IAS 39 Carrying amount Reclassification ECL Carrying amount Measurement Cash and cash equivalents Loans and accounts receivable 1,231 — 0 1,231 AMC Treasuries/government bonds(1) Available-for-sale assets 4,382 4,382 — 4,382 FVTPL Other interest-bearing securities except loans(1) Available-for-sale assets 39,694 39,694 — 39,694 FVTPL Assets at fair value through profit or loss (FVO) 113 113 — 113 FVTPL Loans in the form of interest-bearing securities Loans and accounts receivable 41,125 — -17 41,108 AMC Loans to credit institutions Loans and accounts receivable 23,198 — -2 23,196 AMC Loans to the public Loans and accounts receivable 141,111 — 40 141,151 AMC Derivatives(2) Assets at fair value through profit or loss 7,803 — — 7,803 FVTPL Total financial assets 258,657 44,189 21 258,678 Borrowings from credit institutions Other financial liabilities 2,317 — — 2,317 AMC Borrowings from credit institutions Other financial liabilities 0 — — 0 AMC Debt securities issued Financial liabilities at fair value through profit or loss (FVO) 63,421 — — 63,421 FVTPL Other financial liabilities 159,095 — — 159,095 AMC Derivatives Financial liabilities at fair value through profit or loss 16,480 — — 16,480 FVTPL Subordinated liabilities Other financial liabilities 2,040 — — 2,040 AMC Provisions(2) 45 — 3 48 Total financial liabilities 243,398 — 3 243,401 (1) As of January 1, 2018, SEK has made an assessment of the liquidity investments that were previously classified as available-for-sale assets. The conclusion was that these are included in a portfolio where the business model entails measurement at fair value and, accordingly, they are recognized at fair value through profit or loss (FVTPL). Those liquidity investments that were previously classified at fair value pursuant to the fair-value option are also classified at FVTPL due to the portfolio’s business model. Certain fixed-rate liquidity investments were already subject to hedge accounting and, from January 1, 2018, these hedge accounting relationships have been terminated since liquidity investments are now measured at FVTPL. (2) Accumulated expected credit losses for off-balance sheet items are reported under provisions in the Statement of Financial Position. |
Summary effect of IFRS 9 on reserves and retained earnings | Reserves and Skr mn retained earnings Reserve for changes in own credit risk Closing balance under IAS 39 (December 31, 2017) — The impact of transferring value changes due to changes in credit risk to the Reserve for changes in own credit risk -524 Tax 115 Opening balance under IFRS 9 (January 1, 2018) -409 Fair-value reserve Closing balance under IAS 39 (December 31, 2017) 9 Reclassification of instruments from AFS to FVTPL -12 Tax 3 — Retained earnings Closing balance under IAS 39 (December 31, 2017) 13,554 The impact of transferring value changes due to changes in credit risk to the Reserve for changes in own credit risk 409 Reclassification of instruments from AFS to FVTPL 9 Effect of IFRS 9 – ECL 18 Tax -4 Opening balance under IFRS 9 (January 1, 2018) 13,986 Total changes in equity on introduction of IFRS 9 14 |
Schedule of reconciliation of the closing balance for accumulated impairments under IAS 39 and the opening balance for accumulated impairments under IFRS 9 | Impairment reserve under ECL IFRS 9 IAS 39 as per as per Skr mn 31 December 2017 Revaluation 1 January 2018 Loans and receivables under IAS 39/financial assets at amortized cost under IFRS 9 155 -21 134 Available-for-sale assets under IAS 39/FVTPL pursuant to IFRS 9 — — — Total 155 -21 134 Collateral provided and contingent liabilities — 3 3 Total 155 -18 137 |
Net interest income (Tables)
Net interest income (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Net interest income | |
Schedule of net interest income | Skr mn 2018 2017 2016 Interest income Loans to credit institutions 1,475 789 546 Loans to the public 2,534 2,265 1,992 Loans in the form of interest-bearing securities 672 629 722 Interest-bearing securities excluding loans in the form of interest-bearing securities 523 458 364 Derivatives -210 -372 -552 Administrative remuneration CIRR-system(1) 157 125 116 Other assets 2 2 0 Total interest income 5,153 3,896 3,188 Interest expenses Interest expenses excl. resolution fee -3,445 -2,020 -1,339 Resolution fee -266 -193 -102 Total interest expenses -3,711 -2,213 -1,441 Net interest income 1,442 1,683 1,747 Skr mn 2018 2017 2016 Interest income were related to: Available-for-sale financial assets(2) — 426 292 Financial assets at fair value through profit or loss 574 253 93 Derivatives used for hedge accounting -261 -253 -379 Financial assets at amortized cost(3) 4,840 3,470 3,182 Total interest income 5,153 3,896 3,188 Interest expenses were related to: Available-for-sale financial assets(2) — -93 -46 Financial liabilities at fair value through profit or loss 704 278 12 Financial assets measured at fair value through profit or loss – negative interest on income -104 — — Financial assets measured at amortized cost - negative interest income -27 -37 -61 Derivatives used for hedge accounting 106 1,479 2,452 Financial liabilities at amortized cost(4) -4,390 -3,840 -3,798 Total interest expenses -3,711 -2,213 -1,441 Net interest income 1,442 1,683 1,747 |
Schedule of interest income by geographical areas | Interest income geographical areas Skr mn 2018 2017 2016 Sweden 2,458 1,724 1,358 Europe except Sweden 932 723 681 Countries outside of Europe 1,763 1,449 1,149 Total interest income(2) 5,153 3,896 3,188 |
Schedule of interest income by product group | Interest income per product group Skr mn 2018 2017 2016 Lending to Swedish exporters 1,709 1,398 1,500 Lending to exporters’ customers(5) 1,452 1,251 1,042 Liquidity 1,992 1,247 646 Total interest income (2) 5,153 3,896 3,188 (1) Including administrative remuneration for concessionary loans by Skr 2 million (2017: Skr 2 million; 2016: Skr 2 million). (2) From January 1, 2018, SEK applies IFRS 9 Financial Instruments, which replaces IAS 39 Financial Instruments. The category Available-for-sale was applied until 2017. These assets, liquidity investments, are from 2018 classified at fair value through profit or loss (FVTPL). (3) In conjunction with the transition to IFRS 9 the name on the category changed from Loans and receivables. (4) In conjunction with the transition to IFRS 9 the name on the category changed from Other financial liabilities. (5) In interest income for Lending to exporters’ customers, Skr 155 million (2017: Skr 123 million; 2016: Skr 114 million) represent remuneration from the CIRR-system (see Note 25). |
Net fee and commissions expen_2
Net fee and commissions expense (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Net fee and commissions expense | |
Schedule of fees and commissions expenses | Skr mn 2018 2017 2016 Fee and commissions earned were related to(1): Lending 5 3 3 Total 5 3 3 Commissions incurred were related to (1): Depot and bank fees -7 -6 -7 Brokerage -4 -4 -4 Other commissions incurred -26 -21 -21 Total -37 -31 -32 Net fee and commissions expense -32 -28 -29 (1) Skr -28 million (2017: Skr-24 million; 2016: Skr -26 million) includes financial assets and liabilities not measured at fair value through profit or loss. |
Net results of financial tran_2
Net results of financial transactions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Net results of financial transactions | |
Schedule of net results of financial transactions | Skr mn 2018 2017 2016 Derecognition of financial instruments not measured at fair value through profit or loss: Available-for-sale financial assets(1) — -17 — Financial assets at amortized cost(2) 24 16 4 Financial assets or liabilities at fair value through profit or loss: Designated upon initial recognition (FVO)(3) 7,315 -326 -2,779 Mandatorily(4) -7,360 278 2,699 Financial instruments under fair-value hedge accounting: Net results of the hedging instrument -192 -999 -693 Net results of the hedged item 235 946 661 Currency exchange-rate effects on all assets and liabilities excl. currency exchange-rate effects related to revaluation at fair value -3 0 -2 Total net results of financial -transactions 19 -102 -110 (1) From January 1, 2018, SEK applies IFRS 9 Financial Instruments, which replaces IAS 39 Financial Instruments. The category Available-for-sale was applied until 2017. These assets, liquidity investments, are from 2018 classified at fair value through profit or loss (FVTPL). (2) In conjunction with the transition to IFRS 9 the category Loans and receivables changed name to Financial assets at amortized cost. (3) Difference between Parent Company and Consolidated Group for 2018 is due to different accounting principles regarding changes in SEK's own credit risk, see Note 1. (4) In conjunction with the transition to IFRS 9 the category Held-for-trading changed name to Financial assets at amortized cost. |
Personnel expenses - (Tables)
Personnel expenses - (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Personnel expense | |
Summary of total personnel expenses | Skr mn 2018 2017 2016 Salaries and remuneration to the Board of Directors and the CEO -7 -7 -6 Salaries and remuneration to Senior Executives -21 -20 -18 Salaries and remuneration to other employees -158 -162 -160 Pensions -52 -58 -57 Social insurance -59 -61 -58 Other personnel expenses -14 -12 -9 Total personnel expenses -311 -320 -308 |
Summary of remuneration and other benefits to Board of Directors and Senior Executives | Remuneration and other benefits to the Board of Directors and Senior Fee, Executives in the Consolidated Group includes 2018 committee Fixed Other Skr thousand fee remuneration(1) benefits(2) Pension fee(3) Total Chairman of the Board of Directors: Lars Linder-Aronson(4) -612 — — — -612 Other members of the Board of Directors: Cecilia Ardström(4) -287 — — — -287 Anna Brandt — — — — — Reinhold Geijer(4) -269 — — — -269 Hans Larsson(4) -250 — — — -250 Eva Nilsagård, from April 24, 2018 -182 — — — -182 Susanne Lithander, resigned April 24, 2018 -74 — — — -74 Lotta Mellström resigned April 24, 2018(5) — — — — — Ulla Nilsson -287 — — — -287 Hélène Westholm, from April 24, 2018 — — — — — Senior Executives: Catrin Fransson, Chief Executive Officer (CEO)(6) — -4,743 -88 -1,418 -6,249 Per Åkerlind, Head of Treasury and Capital Management and Executive Vice President — -3,339 -85 -1,307 -4,731 Karl Johan Bernerfalk, General Counsel — -1,414 -33 -505 -1,952 Andreas Ericson, Head of Mid Corporates, from October 15, 2018 — -410 -6 -146 -562 Stefan Friberg, Chief Risk Officer (CRO) — -2,930 -25 -483 -3,438 Teresa Hamilton Burman, Chief Credit Officer (CCO) — -2,326 -16 -493 -2,835 Jens Hedar, Head of Large Corporates, from October 15, 2018 — -461 -5 -157 -623 Johan Henningsson, Head of Sustainability — -1,261 -27 -466 -1,754 Petra Könberg, Head of Marketing & Business Development — -1,143 -28 -384 -1,555 Jane Lundgren Ericsson, Head of Lending, resigned October 12, 2018 — -1,943 -75 -610 -2,628 Ingela Nachtweij, Acting Chief Information Officer (CIO), resigned January 31, 2018 — -128 -2 -36 -166 Sirpa Rusanen, Chief Human Resources Officer (CHRO) — -1,471 -106 -556 -2,133 Susanna Rystedt, Chief Administrative Officer (CAO) — -2,255 -108 -733 -3,096 Madeleine Widaeus, IT-Chief, from February 1, 2018 — -1,360 -11 -405 -1,776 Total -1,961 -25,184 -615 -7,699 -35,459 (1) Predetermined salary or other compensation such as holiday pay and allowances. (2) Other benefits consist of, for example, car allowances and subsistence benefits. (3) Includes premiums for insurance covering sickness benefit for prolonged illness and other public risk insurance as a result of collective pension agreements. (4) Remuneration was invoiced from their private companies in accordance with the state guidelines up to the Annual General Meeting on April 24, 2018. (5) Remuneration is not paid from the Company to the representatives on the Board of Directors, who are employed by the owner, the Swedish Government. (6) The retirement age of the CEO, Catrin Fransson, is 65 years and the pension fee is 30 percent of her fixed salary. Remuneration and other benefits to the Board of Directors and Senior Fee, Executives in the Consolidated Group includes 2017 committee Fixed Other Skr thousand fee remuneration(1) benefits(2) Pension fee(3) Total Chairman of the Board of Directors: Lars Linder-Aronson(4) -745 — — — -745 Other members of the Board of Directors: Cecilia Ardström(4) -344 — — — -344 Jan Belfrage, resigned March 22, 2017 -72 — — — -72 Anna Brandt, from November 21, 2017 — — — — — Reinhold Geijer, from March 22, 2017 (4) -213 — — — -213 Hans Larsson, from March 22, 2017 (4) -212 — — — -212 Susanne Lithander -263 — — — -263 Lotta Mellström(5) — — — — — Ulla Nilsson -273 — — — -273 Teppo Tauriainen, resigned November 21, 2017(5) — — — — — Magnus Uggla, resigned March 22, 2017(4) -46 — — — -46 Senior Executives: Catrin Fransson, Chief Executive Officer (CEO)(6) — -4,638 -97 -1,372 -6,107 Per Åkerlind, Head of Treasury and Capital Management and Executive Vice President — -3,278 -92 -1,159 -4,529 Karl Johan Bernerfalk, General Counsel — -1,372 -18 -447 -1,837 Stefan Friberg, Chief Risk Officer (CRO) — -2,908 -19 -465 -3,392 Teresa Hamilton Burman, Chief Credit Officer (CCO) — -2,252 -11 -485 -2,748 Johan Henningsson, Head of Sustainability — -1,191 -30 -435 -1,656 Petra Könberg, Head of Marketing & Business Development, from April 18, 2017 — -830 -20 -220 -1,070 Jane Lundgren Ericsson, Head of Lending — -2,410 -98 -720 -3,228 Ingela Nachtweij, Acting Chief Information Officer (CIO), from January 10, 2017 — -1,520 -27 -414 -1,961 Sirpa Rusanen, Chief Human Resources Officer (CHRO) — -1,415 -105 -536 -2,056 Susanna Rystedt, Chief Administrative Officer (CAO) — -2,191 -112 -720 -3,023 Edvard Unsgaard, Head of Communication, resigned April 18, 2017 — -314 -8 -102 -424 Total -2,168 -24,319 -637 -7,075 -34,199 (1) Predetermined salary or other compensation such as holiday pay and allowances. (2) Other benefits consist of, for example, car allowances and subsistence benefits. (3) Includes premiums for insurance covering sickness benefit for prolonged illness and other public risk insurance as a result of collective pension agreements. (4) Remuneration is invoiced from their private companies in accordance with the state guidelines. (5) Remuneration is not paid from the Company to the representatives on the Board of Directors, who are employed by the owner, the Swedish Government. (6) The retirement age of the CEO, Catrin Fransson, is 65 years and the pension fee is 30 percent of her fixed salary. Remuneration and other benefits to the Board of Directors and Senior Fee, Executives in the Consolidated Group includes 2016 committee Fixed Other Skr thousand fee remuneration(1) benefits(2) Pension fee 3 Total Chairman of the Board of Directors: Lars Linder-Aronson(4) -669 — — — -669 Other members of the Board of Directors: Cecilia Ardström -216 — — — -216 Jan Belfrage -225 — — — -225 Susanne Lithander -240 — — — -240 Lotta Mellström(5) — — — — — Ulla Nilsson -244 — — — -244 Jan Roxendal, resigned April 26, 2016(4) -109 — — — -109 Teppo Tauriainen(5) — — — — — Magnus Uggla, from April 26, 2016(4) -186 — — — -186 Senior Executives: Catrin Fransson, Chief Executive Officer (CEO)(6) — -4,487 -86 -1,332 -5,905 Per Åkerlind, Head of Treasury and Capital Management and Executive Vice President — -3,207 -86 -1,112 -4,405 Karl Johan Bernerfalk, General Counsel — -1,281 -11 -405 -1,697 Stefan Friberg, Chief Risk Officer (CRO) — -2,769 -12 -467 -3,248 Teresa Hamilton Burman, Chief Credit Officer (CCO) — -2,253 -12 -460 -2,725 Johan Henningsson, Head of Sustainability — -1,124 -12 -379 -1,515 Jane Lundgren Ericsson, Head of Lending — -2,355 -81 -616 -3,052 Sirpa Rusanen, Chief Human Resources Officer (CHRO) — -1,360 -91 -487 -1,938 Susanna Rystedt, Chief Administrative Officer (CAO) — -2,164 -41 -676 -2,881 Edvard Unsgaard, Head of Communication — -995 -11 -333 -1,339 Total -1,889 -21,995 -443 -6,267 -30,594 (1) Predetermined salary or other compensation such as holiday pay and allowances. (2) Other benefits consist of, for example, car allowances and subsistence benefits. (3) Includes premiums for insurance covering sickness benefit for prolonged illness and other public risk insurance as a result of collective pension agreements. (4) Remuneration is invoiced from their private companies in accordance with the state guidelines. (5) Remuneration is not paid from the Company to the representatives on the Board of Directors, who are employed by the owner, the Swedish Government. (6) The retirement age of the CEO, Catrin Fransson is 65 years and the pension fee is 30 percent of her fixed salary. |
Summary of information about pension plans | The total pension cost for defined benefit and defined contribution obligations are shown below Skr mn 2018 2017 2016 Service cost -4 -5 -4 Regulation of pension obligations 5 Interest cost, net -1 -1 0 Pension cost for defined benefit pensions, incl. payroll tax 0 -6 -4 Pension cost for defined contribution pension cost incl. payroll tax -52 -52 -53 Pension cost recognized in personnel costs -52 -58 -57 Actuarial gains and (losses) on defined benefit obligation during period -48 -7 -35 Return above expected return, gains and (losses) on plan assets 0 3 5 Change in the effect of the asset ceiling excluding interest — — 4 Revaluation of defined benefit plans -48 -4 -26 The following table specifies the net value of defined benefit pension obligations Skr mn 2018 2017 2016 Defined benefit obligations 253 263 254 Plan assets -173 -223 -216 Restriction to net defined benefit asset due to the asset ceiling 0 0 0 Provision for pensions, net obligation (see Note 21) 80 40 38 |
Summary of development of defined benefit obligations and assets | The following table shows the development of defined benefit obligations Skr mn 2018 2017 2016 Defined benefit obligation, opening balance 263 254 215 Service cost 4 5 4 Interest cost 6 7 8 Pension Payments incl. special payroll tax -9 -10 -9 Other -59 — — Actuarial (gains) and losses, effect due to changed demographic assumptions — — — Actuarial (gains) and losses, effect due to changed financial assumptions 46 9 38 Actuarial (gains) and losses, effect due to experience based outcome 2 -2 -2 Defined benefit obligation, closing balance 253 263 254 The following table shows the development of plan assets related to defined benefit obligation Skr mn 2018 2017 2016 Fair value of plan assets, opening balance 223 216 202 Expected return on plan assets 5 6 7 Contributions by the employer(1) 7 7 8 Benefits paid(2) -8 -8 -7 Other(3) -54 — — Return on plan assets excluding interest income 0 2 6 Fair value of plan assets, closing balance 173 223 216 (1) Expected contribution from the employer in the following year is Skr 6 million (2017: Skr 7 million; 2016: Skr 8 million) excluding payroll tax. (2) Expected compensation paid in the following year is Skr 8 million (2017: Skr 9 million ; 2016: Skr 9 million). (3) Regulation of pension obligations related to Venantius AB and its subsidiaries, which were liquidated in 2018. |
Summary of plan assets | The following table shows the distribution of plan assets related to defined benefit obligation Skr mn 2018 2017 2016 Domestic equity investments 3 4 4 Foreign equity investments 12 16 4 Domestic government bonds 43 63 69 Domestic corporate bonds 26 40 69 Mortgage bonds 49 76 52 Other Investments 19 — — Properties 21 24 18 Total 173 223 216 |
Summary of principal actuarial assumptions used end of year | % 2018 2017 2016 Discount rate 2.1 2.5 2.7 Assumption of early pension withdrawal 20.0 20.0 20.0 Expected salary increase 2.0 2.0 2.0 Expected inflation 2.0 1.6 1.6 Expected lifetime DUS14 DUS14 DUS14 Expected turnover 5.0 5.0 5.0 |
Summary of sensitivity analysis of essential assumptions | Negative outcome Positive outcome Discount rate -1 % 1.1 % +1 % 3.1 % Defined benefit obligation 324 202 Service cost 8 4 Interest cost 4 6 Expected lifetime +1 year -1 year Defined benefit obligation 266 242 Service cost 6 5 Interest cost 6 5 |
Summary of net reconciliation of pension liabilities | Skr mn 2018 2017 2016 Pension liabilities, opening balance 40 38 17 Net periodic pension cost 0 6 4 Contributions by the employer -7 -7 -8 Net pension payments -1 -1 -1 Revaluations recognized in other comprehensive income 48 4 26 Pension liabilities, closing balance 80 40 38 |
Summary of information about employees | Average number of employees 2018 2017 2016 Women 117 121 122 Men 126 131 138 Total average number of employees 243 252 260 Number of employees at year-end 2018 2017 2016 Women 118 122 122 Men 120 128 134 Total number of employees(1) 238 250 256 of which full-time employees 230 243 250 Allocation of women/men 49/51 48/52 47/53 of which part-time employees 8 7 6 Allocation of women/men 75/25 86/14 83/17 of which permanent employees 236 246 251 Allocation of women/men 50/50 49/51 48/52 of which temporary employees 2 4 5 Allocation of women/men 50/50 50/50 20/80 of which managers 29 31 33 of which non-management 209 219 223 (1) In addition to its employees, SEK had 32 consultants (FTEs) engaged at year-end 2018. Employees by age distribution 2018 2017 2016 Total number of employees 238 250 256 of which under the age of 30 years 13 16 16 of which between 30 and 50 years 127 142 153 of which over 50 years 98 92 87 Employee turnover 2018 2017 2016 Number of employees who left employment 32 31 26 of which women 12 12 9 of which men 20 19 17 of which under the age of 30 years 3 4 2 of which between 30 and 50 years 20 20 17 of which over 50 years 9 7 7 Health, % 2018 2017 2016 Absence due to sickness 3.1 3.3 4.0 Percentage of employees that use SEK’s fitness allowance 91 92 84 Equality and diversity 2018 2017 2016 Allocation of women/men on the Board of Directors 62/38 60/40 50/50 Allocation of women/men in SEK’s executive management 50/50 64/36 50/50 Allocation of women/men in management positions 41/59 42/58 36/64 Allocation of women/men at SEK in total 51/49 49/51 48/52 Allocation of employees with foreign/Swedish background(1) 33/67 33/67 30/70 (1) Foreign background is defined as “I was raised in a country other than Sweden (wholly or in part)”, “I was born in another country but raised in Sweden” and “I myself was born and raised in Sweden but have a parent/parents born and raised in another country”. The survey is conducted at least once every three years. Employee development 2018 2017 2016 Percentage of employees who had a performance review (percent) 96 95 98 Average number of training days per employee (all employees are white-collar workers) 3 2 3 |
Other administrative expenses (
Other administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other administrative expenses | |
Schedule of other administrative expenses | Skr mn 2018 2017 2016 Travel expenses and marketing -7 -8 -10 IT and information system (fees incl.) -151 -144 -141 Other fees -34 -38 -47 Premises(1) -33 -32 -28 Other -6 -10 -10 Total other administrative expenses -231 -232 -236 (1) SEK is a partner in rental agreements of office space in Stockholm and Gothenburg. |
Schedule of operating leases | Cost of operating leases Skr mn 2018 2017 2016 Leases -32 -31 -27 The primary cost relates to SEK’s office premises. Future minimum rentals payable under non-cancellable operating leases are as follows December 31, December 31, December 31, Skr mn 2018 2017 2016 Within 1 year -32 -32 -31 Between 1 and 5 years -60 -88 -120 More than 5 years — — — Total future minimum rentals payable under non-cancellable operating leases -92 -120 -151 |
Schedule of remuneration to auditors | Skr mn 2018 2017 2016 Öhrlings PricewaterhouseCoopers AB: Audit fees(1) -8 -8 -10 Audit related fees(2) 0 0 0 Tax related fees(3) — 0 0 Other fees(4) -2 -1 -1 Total -10 -9 -11 (1) Fees related to audit of annual financial statements and reviews of interim financial statements. (2) Fees charged for assurance and related services that are related to the performance of audit or review of the financial statements and are not reported under Audit fees. (3) Fees for professional services rendered by the principal independent auditors for tax compliance and tax advice. (4) Fees for products and services rendered by the principal independent auditors, other than the services reported in Audit fees through Tax related fees above. |
Tangible and intangible assets
Tangible and intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Tangible and intangible assets | |
Schedule of reconciliation of changes in tangible and intangible assets. | Skr mn December 31, 2018 December 31, 2017 December 31, 2016 Net book value Tangible assets 26 22 22 Intangible assets(1) 43 66 101 Total net book value 69 88 123 Depreciation and impairment during the year according to the Consolidated Statement of Comprehensive Income -40 -45 -46 (1) Intangible assets consist of the capitalized portion of investments in IT systems. The average useful life for intangible assets is 5 years. |
Leasing (Tables)
Leasing (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leasing | |
Schedule of reconciliation between gross investment and present value of minimum lease payments | December 31, 2018 December 31, 2017 Present value of Present value of Gross minimum lease Gross minimum lease Skr mn investment payments investment payments No later than one year 117 113 124 107 Later than one year and no later than five years 182 156 246 226 Later than five years 8 5 — — Total 307 274 370 333 Unearned finance income — 33 — 37 Unguaranteed residual value — — — — |
Impairments (Tables)
Impairments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Impairments | |
Schedule of impairment | Skr mn 2018(1) 2017(2) 2016(2) Expected credit losses, stage 1 6 n.a. n.a. Expected credit losses, stage 2 14 n.a. n.a. Expected credit losses, stage 3 -13 n.a. n.a. Impairment of financial assets n.a. -59 -23 Reversals of previous write-downs — 110 7 Established credit losses — -47 — Reserves applied to cover established credit losses — 46 — Recovered credit losses 0 1 0 Net credit losses 7 51 -16 (1) Expected credit losses according to IFRS 9 (2) Impairments according to IAS 39 |
Schedule of balances and reconciliation of changes in balances and loss allowances by stages | December 31, 2018 December 31, 2017 Skr mn Stage 1 Stage 2 Stage 3 Total Total Loans, before expected credit losses Loans in the form of interest-bearing securities 34,112 2,686 — 36,798 41,125 Loans to credit institutions 10,188 1,164 — 11,352 12,884 Loans to the public 134,117 25,405 1,424 160,946 141,266 Off balance, before expected credit losses Guarantees 2,818 1,246 1 4,065 3,360 Committed undisbursed loans 21,348 30,177 — 51,525 74,125 Total, before expected credit losses 202,583 60,678 1,425 264,686 272,760 of which guaranteed 60.4 % 85.4 % 94.3 % 64.1 % Loss allowance, loans Loans in the form of interest-bearing securities -9 -3 — -12 — Loans to credit institutions -1 -1 — -2 — Loans to the public -24 -17 -82 -123 -155 Loss allowance, off balance (1) Guarantees 0 0 -2 -2 — Committed undisbursed loans 0 0 — 0 — Total, loss allowance -34 -21 -84 -139 -155 Provision ratio 0.02 % 0.03 % 5.89 % 0.05 % 0.06 % (1) Recognized under provision in Consolidated Statement of Financial Position Loans and off balance, before Loss Allowance December 31, 2018 Skr mn Stage 1 Stage 2 Stage 3 Total Opening balance(1) 209,232 62,286 1,242 272,760 Increase due to origination and acquisition 37,594 768 3 38,365 Transfer to stage 1 2,490 — — 2,490 Transfer to stage 2 — 5,431 — 5,431 Transfer to stage 3 — — 466 466 Decrease due to derecognition -46,733 -7,807 -286 -54,826 Closing balance 202,583 60,678 1,425 264,686 (1) Effect on opening balance after implementation of IFRS 9 Skr 18 million. Loss Allowance December 31, 2018 31 december, 2017(3) Skr mn Stage 1 Stage 2 Stage 3 Total Total Opening balance(1) -38 -33 -66 -137 -254 Increases due to origination and acquisition -12 -2 -1 -15 n.a. Net remeasurement of loss allowance 12 9 -14 7 51 Transfer to stage 1 0 0 — 0 n.a. Transfer to stage 2 1 -1 — 0 n.a. Transfer to stage 3 0 -2 2 0 n.a. Decreases due to derecognition 5 10 0 15 n.a. Decrease in allowance account due to write-offs — — — — 46 Exchange-rate differences(2) -2 -2 -5 -9 2 Closing balance -34 -21 -84 -139 -155 (1) Effect on opening balance after implementation of IFRS 9 Skr 18 million. (2) Recognized under Net results of financial transactions in the Statement of Comprehensive Income. (3) According to IAS 39 |
Summary of loan credit quality, before expected credit losses, allocated by stage | December 31, 2018 Skr mn Stage 1 Stage 2 Stage 3 Total AAA 1,204 — — 1,204 AA+ to A- 25,635 51 — 25,686 BBB+ to BBB- 107,289 1,161 — 108,450 BB+ to BB- 28,055 18,972 28 47,055 B+ to B- 16,234 8,869 — 25,103 CCC to D — 202 1,396 1,598 Total, before expected credit losses 178,417 29,255 1,424 209,096 |
Schedule of past due receivables | Past-due receivables have been recorded at the amounts expected to actually be received at settlement. Skr mn December 31, 2017 Past-due receivables: Aggregate amount of principal and interest less than, or equal to, 90 days past-due 136 Aggregate amount of principal and interest more than 90 days past due (1) 10 Principal amount not past-due on such receivables 494 Total Past-due receivables 640 (1) Of the aggregate amount of principal and interest past due, Skr 3 million was due for payment more than three but less than, or equal to, six months before the end of the reporting period, Skr 3 million was due for payment more than six but less than, or equal to, nine months before the end of the reporting period, and Skr 5 million was due for payment more than nine months before the end of the reporting period. |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Taxes | |
Schedule of components of income taxes | Consolidated Group Skr mn 2018 2017 2016 Income tax Adjustment previous year -1 0 4 Current tax -448 -262 -382 Deferred tax 245 27 156 Total income tax -204 -235 -222 |
Schedule of income tax related to other comprehensive income | Income tax related to other comprehensive income Tax on items to be reclassified to profit or loss Current tax 6 27 27 Deferred tax — — — Tax on items not to be reclassified to profit or loss Current tax -82 — — Deferred tax 10 1 6 Income tax related to other comprehensive income -66 28 33 |
Schedule of reconciliation of effective tax rate | Reconciliation of effective tax rate The Swedish corporate tax rate, % 22.0 22.0 22.0 Profit before taxes 852 1,007 1,002 National tax based on profit before taxes -187 -222 -220 Tax effects of: Non-taxable income 0 1 0 Non-deductible expenses -14 -15 -1 Imputed interest on tax allocation reserve -2 -2 -3 Dividend received — — — Other -1 3 2 Total tax -204 -235 -222 Effective tax expense in % 24.0 23.3 22.2 |
Schedule of deferred taxes | Skr mn 2018 2017 Deferred tax assets concerning: Temporary differences, related to pensions 15 7 Other temporary differences — — Total deferred tax assets 15 7 Deferred tax liabilities concerning: Untaxed reserves 291 538 Total deferred tax liabilities 291 538 Net deferred tax liabilities (+) / tax assets (-) 276 531 |
Schedule of changes in deferred taxes | Skr mn 2018 2017 Opening balance 531 559 Change through profit or loss -245 -27 Change in other comprehensive income -10 -1 Total 276 531 |
Loans and liquidity investmen_2
Loans and liquidity investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Loans and liquidity investments. | |
Schedule of loans and liquidity investments | December 31, December 31, Skr mn 2018 2017 Loans: Loans in the form of interest-bearing securities 36,781 41,125 Loans to credit institutions 27,725 23,198 Loans to the public 161,094 141,111 Less: Cash collateral under the security agreements for derivative contracts(1) -16,374 -10,314 Deposits with time to maturity exceeding three months — — Total loans 209,226 195,120 Liquidity investments: Cash and cash equivalents 2,416 1,231 Cash collateral under the security agreements for derivative contracts 16,374 10,314 Deposits with time to maturity exceeding three months — — Treasuries/government bonds 11,117 4,382 Other interest-bearing securities except loans 48,665 39,807 Total liquidity investments 78,572 55,734 of which issued by public authorities 15,110 9,309 of which quoted on an exchange 24,505 22,396 (1) Included in Loans to credit institutions. |
Schedule of difference between book value amount and amount contractually required to be paid at maturity for interest-bearing securities not carried at fair value | Skr mn 2018 2017 Sum of amounts exceeding nominal 143 4 Sum of amounts falling below nominal -39 -57 |
Schedule of volume development, lending | of which the CIRR-system Skr mn 2018 2017 2018 2017 Offers of long-term loans accepted 57,015 89,305 4,916 36,909 Undisbursed loans at year-end 50,814 72,914 47,664 69,161 Loans outstanding at year-end 209,226 (1) 195,120 (1) 69,922 49,124 (1) Including concessionary loans by Skr 663 million (year-end 2017: Skr 754 million) . |
Schedule of outstanding loans as per business area | of which the CIRR-system December 31, December 31, December 31, December 31, Skr mn 2018 2017 2018 2017 Lending to Swedish exporters 89,759 93,060 — — Lending to exporters’ customers 119,467 102,060 69,922 49,124 Total lending 209,226 (1) 195,120 (1) 69,922 49,124 (1) Includ ing concessionary loans by Skr 663 million (year-end 2017: Skr 754 million). |
Classification of financial a_2
Classification of financial assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Classification of financial assets and liabilities | |
Schedule of financial assets by accounting category | December 31, 2018 Financial assets at fair value through profit or loss Amortized cost Total Derivatives used for hedge Skr mn Mandatorily accounting Cash and cash equivalents — — 2,416 2,416 Treasuries/government bonds 11,117 — — 11,117 Other interest-bearing securities except loans 48,665 — — 48,665 Loans in the form of interest-bearing securities — — 36,781 36,781 Loans to credit institutions — — 27,725 27,725 Loans to the public — — 161,094 161,094 Derivatives 4,565 1,964 — 6,529 Total financial assets 64,347 1,964 228,016 294,327 December 31, 2017 Derivatives used Financial assets at fair value through for hedge Available- Loans and profit or loss accounting for-sale receivables Total Designated upon initial recognition Skr mn Held-for-trading (FVO) Cash and cash equivalents — — — — 1,231 1,231 Treasuries/government bonds — — — 4,382 — 4,382 Other interest-bearing securities except loans — 113 — 39,694 — 39,807 Loans in the form of interest-bearing securities — — — — 41,125 41,125 Loans to credit institutions — — — — 23,198 23,198 Loans to the public — — — — 141,111 141,111 Derivatives 4,356 — 3,447 — — 7,803 Total financial assets 4,356 113 3,447 44,076 206,665 258,657 |
Schedule of financial liabilities by accounting category | December 31, 2018 Financial liabilities at fair value through profit or loss Amortized cost Total Designated upon Derivatives initial used for recognition hedge Skr mn Mandatorily (FVO) accounting Borrowing from credit institutions — — — 2,247 2,247 Debt securities issued — 64,687 — 190,913 255,600 Derivatives 15,652 — 6,282 — 21,934 Total financial liabilities 15,652 64,687 6,282 193,160 279,781 December 31, 2017 Derivatives used for Financial liabilities at fair value hedge Other financial through profit or loss accounting liabilities Total Designated upon initial Held-for- recognition Skr mn trading (FVO) Borrowing from credit institutions — — — 2,317 2,317 Debt securities issued — 63,421 — 159,095 222,516 Derivatives 10,864 — 5,616 — 16,480 Subordinated liabilities — — — 2,040 2,040 Total financial liabilities 10,864 63,421 5,616 163,452 243,353 |
Financial assets and liabilit_2
Financial assets and liabilities at fair value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Sub-classifications of financial information | |
Financial assets and liabilities at fair value | December 31, 2018 Surplus value (+) Skr mn Book value Fair value /Deficit value (-) Cash and cash equivalents 2,416 2,416 — Treasuries/governments bonds 11,117 11,117 — Other interest-bearing securities except loans 48,665 48,665 — Loans in the form of interest-bearing securities 36,781 37,666 885 Loans to credit institutions 27,725 27,709 -16 Loans to the public 161,094 164,734 3,640 Derivatives 6,529 6,529 — Total financial assets 294,327 298,836 4,509 Borrowing from credit institutions 2,247 2,247 — Debt securities issued 255,600 256,619 1,019 Derivatives 21,934 21,934 — Total financial liabilities 279,781 280,800 1,019 December 31, 2017 Surplus value (+) Skr mn Book value Fair value /Deficit value (-) Cash and cash equivalents 1,231 1,231 — Treasuries/governments bonds 4,382 4,382 — Other interest-bearing securities except loans 39,807 39,807 — Loans in the form of interest-bearing securities 41,125 42,352 1,227 Loans to credit institutions 23,198 23,451 253 Loans to the public 141,111 144,935 3,824 Derivatives 7,803 7,803 — Total financial assets 258,657 263,961 5,304 Borrowing from credit institutions 2,317 2,317 — Debt securities issued 222,516 223,465 949 Derivatives 16,480 16,480 — Subordinated liabilities 2,040 2,047 7 Total financial liabilities 243,353 244,309 956 |
Schedule of fair value measurement of assets | December 31, 2018 Fair value Book value Skr mn Level 1 Level 2 Level 3 Total Total Cash and cash equivalents 2,416 — — 2,416 2,416 Loans in the form of interest-bearing securities 287 37,379 — 37,666 36,781 Loans to credit institutions — 27,709 — 27,709 27,725 Loans to the public — 164,722 — 164,722 161,094 Total financial assets in fair value hierarchy 2,703 229,810 — 232,513 228,016 December 31, 2017 Loans and accounts receivable Fair value Book value Skr mn Level 1 Level 2 Level 3 Total Total Cash and cash equivalents 1,231 — — 1,231 1,231 Loans in the form of interest-bearing securities 550 41,802 — 42,352 41,125 Loans to credit institutions — 23,451 — 23,451 23,198 Loans to the public — 144,935 — 144,935 141,111 Total financial assets in fair value hierarchy 1,781 210,188 — 211,969 206,665 December 31, 2018 Financial assets at fair value through profit or loss Available-for-sale(1) Skr mn Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Treasuries/governments bonds — 11,117 — 11,117 — — — — Other interest-bearing securities except loans — 48,665 — 48,665 — — — — Derivatives — 4,596 1,933 6,529 — — — — Total financial assets in fair value hierarchy — 64,378 1,933 66,311 — — — — 1 Due to the transition to IFRS 9, the financial assets classified as available-for-sale under IAS 39 are now classified as “Financial assets at fair value through profit or loss” December 31, 2017 Financial assets at fair value through profit or loss Available-for-sale Skr mn Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Treasuries/governments bonds — — — — 4,382 — — 4,382 Other interest-bearing securities except loans — 113 — 113 — 39,694 — 39,694 Derivatives — 5,829 1,974 7,803 — — — — Total financial assets in fair value hierarchy — 5,942 1,974 7,916 4,382 39,694 — 44,076 |
Schedule of fair value measurement of liabilities | December 31, 2018 Fair value Book value Skr mn Level 1 Level 2 Level 3 Total Total Borrowing from credit institutions — 2,247 — 2,247 2,247 Debt securities issued — 191,932 — 191,932 190,913 Total financial liabilities in fair value hierarchy — 194,179 — 194,179 193,160 December 31, 2017 Other financial liabilities Fair value Book value Skr mn Level 1 Level 2 Level 3 Total Total Borrowing from credit institutions — 2,317 — 2,317 2,317 Debt securities issued — 160,044 — 160,044 159,095 Subordinated liabilities — 2,047 — 2,047 2,040 Total financial liabilities in fair value hierarchy — 164,408 — 164,408 163,452 December 31, 2018 Financial liabilities at fair value through profit or loss Skr mn Level 1 Level 2 Level 3 Total Debt securities issued — 16,789 47,898 64,687 Derivatives — 15,414 6,520 21,934 Total financial liabilities in fair value hierarchy — 32,203 54,418 86,621 December 31, 2017 Financial liabilities at fair value through profit or loss Skr mn Level 1 Level 2 Level 3 Total Debt securities issued — 20,426 42,995 63,421 Derivatives — 13,660 2,820 16,480 Total financial liabilities in fair value hierarchy — 34,086 45,815 79,901 |
Schedule of fair value related to credit risk | Fair value originating from credit risk The period's change in fair value origination (- liabilities increase/ + liabilities decrease) from credit risk (+income/ - loss) Skr mn December 31, 2018 December 31, 2017 2018 2017 2016 CVA/DVA, net(1) -29 -8 -21 6 9 OCA(2) -150 -578 374 -195 1 (1) Credit value adjustment (CVA) and Debt value adjustment (DVA) reflects how the counterparties’ credit risk as well as SEK’s own credit rating affects the fair value of derivatives. (2) Own credit adjustment (OCA) reflects how the changes in SEK’s credit rating affects the fair value of financial liabilities measured at fair value through profit and loss. |
Level 3 | |
Sub-classifications of financial information | |
Schedule of financial assets and liabilities at fair value | Gains (+) and Gains (+) and losses (-) losses (-) Currency Jan 1, Settlements Transfers to Transfers through profit or through other exchange-rate Dec 31, Skr mn 2018 Purchases & sales Level 3 from Level 3 loss(1) comprehensive income effects 2018 Debt securities issued -42,995 -13,199 9,490 -2,486 425 4,091 250 -3,474 -47,898 Derivatives, net -846 3 -43 -57 -6 -3,913 — 275 -4,587 Net assets and liabilities -43,841 -13,196 9,447 -2,543 419 178 250 -3,199 -52,485 Financial assets and liabilities at fair value in Level 3, December 31, 2017 Gains (+) and losses (-) Currency Jan 1, Settlements Transfers to Transfers through profit or exchange-rate Dec 31, Skr mn 2017 Purchases & sales Level 3 from Level 3 loss(1) effects 2017 Other interest-bearing securities except loans 257 — -250 — — -6 -1 — Debt securities issued -48,217 -19,077 24,627 — — 1,044 -1,372 -42,995 Derivatives, net -2,404 3 -4,342 — — -1,202 7,099 -846 Net assets and liabilities -50,364 -19,074 20,035 — — -164 5,726 -43,841 (1) Gains and losses through profit or loss, including the impact of exchange-rates, are reported as net interest income and net results of financial transactions. The unrealized fair value changes for assets and liabilities, including the impact of exchange-rates, held as of December 31, 2018, amounted to a Skr 157 million gain (year-end 2017: Skr 768 million loss) and are reported as net results of financial transaction |
Schedule of sensitivity analysis - level 3 | December 31, 2018 Assets and liabilities Unobservable Range of estimates for Skr mn Fair value input unobservable input (1) Valuation method Sensitivity Max Sensitivity Min Equity -2,417 Correlation 0.70 - 0.07 Option Model 6 -6 Interest rate 972 Correlation 0.21 - (0.12) Option Model -95 90 FX -2,971 Correlation 0.84 - (0.94) Option Model 22 -19 Other -171 Correlation 0.53 - (0.01) Option Model 1 -1 Sum derivatives,net -4,587 -66 64 Equity -680 Correlation 0.70 - 0.07 Option Model -7 6 Credit spreads 10BP - (10BP) Discounted cash flow 28 -28 Interest rate -47,090 Correlation 0.21 - (0.12) Option Model 97 -94 Credit spreads 10BP - (10BP) Discounted cash flow 116 -113 FX -32 Correlation 0.84 - (0.94) Option Model -23 20 Credit spreads 10BP - (10BP) Discounted cash flow 95 -96 Other -96 Correlation 0.53 - (0.01) Option Model -1 1 Credit spreads 10BP - (10BP) Discounted cash flow 3 -3 Sum debt securities issued -47,898 308 -307 Total effect on total comprehensive income(2) 242 -243 Sensitivity analysis -- level 3 December 31, 2017 Assets and liabilities Unobservable Range of estimates for Skr mn Fair value input unobservable input (1) Valuation method Sensitivity Max Sensitivity Min Equity -171 Correlation 0.78 - (0.02) Option Model 1 -1 Interest rate 1,001 Correlation 0.19 - (0.37) Option Model -192 178 FX -1,512 Correlation 0.89 - (0.81) Option Model 24 -22 Other -164 Correlation 0.63 - (0.05) Option Model 0 0 Sum derivatives,net -846 -167 155 Equity -680 Correlation 0.78 - (0.02) Option Model -1 1 Credit spreads 10BP - (10BP) Discounted cash flow 11 -11 Interest rate -42,168 Correlation 0.19 - (0.37) Option Model 195 -181 Credit spreads 10BP - (10BP) Discounted cash flow 106 -103 FX -34 Correlation 0.89 - (0.81) Option Model -25 23 Credit spreads 10BP - (10BP) Discounted cash flow 92 -92 Other -113 Correlation 0.63 - (0.05) Option Model 0 0 Credit spreads 10BP - (10BP) Discounted cash flow 3 -3 Sum debt securities issued -42,995 381 -366 Total effect on total comprehensive income(2) 214 -211 (1) Represents the range of correlations that SEK has determined market participants would use when pricing the instruments. The structures are represented both in the security and the derivative hedging the bond. The sensitivity analysis is based on a shift in the interval for correlation between 0.1 and -0.1. The correlation is expressed as a value between 1 and -1, where 0 indicates no relationship, 1 indicates maximum positive relationship and -1 indicates maximum negative relationship. The maximum correlation in the range of unobservable inputs can thus be from 1 to -1. The table presents the scenario analysis of the effect on Level 3‑instruments, with maximum positive and negative changes. (2) Of the total impact on total comprehensive income, the sensitivity effect of SEK’s own credit spread was Skr 242 million (year-end 2017: Skr 211 million) under a maximum scenario and Skr -240 million (year-end 2017: Skr -208 million) under a minimum scenario. |
Derivatives and hedge account_2
Derivatives and hedge accounting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivatives and hedge accounting | |
Schedule of derivatives | Derivatives by categories December 31, 2018 December 31, 2017 Assets Liabilities Nominal Assets Liabilities Nominal Skr mn Fair value Fair value amounts Fair value Fair value amounts Interest rate-related contracts 3,842 10,207 280,808 3,781 9,132 245,788 Currency-related contracts 2,630 8,799 162,870 3,772 6,879 139,614 Equity-related contracts 57 2,755 16,014 250 303 13,246 Contracts related to commodities, credit risk, etc. — 173 -1,920 — 166 -1,183 Total derivatives 6,529 21,934 457,772 7,803 16,480 397,465 of which derivatives used for economic hedges, December 31, 2018 December 31, 2017 accounted for as held-for-trading under IFRS 9 (2017: IAS39) Assets Liabilities Nominal Assets Liabilities Nominal Skr mn Fair value Fair value amounts Fair value Fair value amounts Interest rate-related contracts 2,767 7,479 129,470 2,603 6,358 119,239 Currency-related contracts 1,728 5,177 132,611 1,501 4,003 92,133 Equity-related contracts 57 2,755 16,014 250 303 13,246 Contracts related to commodities, credit risk, etc. — 173 -1,920 — 166 -1,183 Total derivatives 4,552 15,584 276,175 4,354 10,830 223,435 December 31, 2018 December 31, 2017 of which derivatives in fair-value hedges Assets Liabilities Nominal Assets Liabilities Nominal Skr mn Fair value Fair value amounts Fair value Fair value amounts Interest rate-related contracts 1,075 2,728 151,338 1,178 2,774 126,549 Currency-related contracts 902 3,622 30,260 2,271 2,876 47,481 Total derivatives 1,977 6,350 181,598 3,449 5,650 174,030 Maturity analysis of the nominal amounts(1) of hedging instruments December 31, 2018 1 month 3 months 1 year Skr mn < 1 month < 3 months < 1 year < 5 years > 5 years Interest rate-related contracts Hedge of fixed rate assets 40 40 220 6,769 6,234 Hedge of fixed rate liabilities 10 8,967 34,248 100,167 3,798 Currency-related contracts Hedge of fixed rate assets 3 12 545 2,195 191 Hedge of fixed rate liabilities — 3,317 3,672 13,936 5,990 (1) Nominal amounts before off-set. Derivatives used as fair value hedge December 31, 2018 1 month < 3 months < 1 year < Skr mn < 1 month 3 months 1 year 5 years > 5 years Cash inflows (assets) 261 518 1,138 2,311 1,858 Cash outflows (liabilities) -99 -1,064 -1,095 -4,721 -343 Net cash inflow 162 -546 43 -2,410 1,515 Derivatives used as fair value hedge December 31, 2017 1 month < 3 months < 1 year < Skr mn < 1 month 3 months 1 year 5 years > 5 years Cash inflows (assets) 47 238 700 3,428 459 Cash outflows (liabilities) 8 56 -977 -1,526 -869 Net cash inflow 55 294 -277 1,902 -410 |
Schedule of carrying amount of hedge items in fair value hedge and its adjustments | December 31, 2018 Assets Fair value hedge Skr mn Book value adjustments Loans in the form of interest-bearing securities 4,244 499 Loans to credit institutions 206 3 Loans to the public 12,904 648 Total 17,354 1,150 December 31, 2018 Liabilities Fair value hedge Skr mn Book value adjustments Debt securities issued 163,172 1,000 Subordinated liabilities — — Total 163,172 1,000 |
Schedule of cash flow hedges reclassified to profit or loss | Skr mn 2018 2017 Interest income 25 91 Interest expense — — Total(1) 25 91 (1) Relates to previously terminated cash flow hedges where comprehensive income is allocated over the previously hedged item’s remaining maturity. |
Schedule of financial assets subject to offsetting, enforceable master netting arrangements and similar agreements | December 31, 2018 December 31, 2017 Skr mn Derivatives Derivatives Gross amounts of recognized financial assets 7,200 7,803 Amounts offset in the Statement of Financial Position -671 — Net amounts of financial assets presented in the Statement of Financial Position 6,529 7,803 Amounts subject to an enforceable master netting arrangement or similar agreement not offset in the Statement of Financial Position related to: Financial instruments -4,324 -5,713 Cash collateral received -1,805 -1,784 Net amount 400 306 |
Schedule of financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements | December 31, 2018 December 31, 2017 Skr mn Derivatives Derivatives Gross amounts of recognized financial liabilities 22,648 16,480 Amounts offset in the Statement of Financial Position -714 — Net amounts of financial liabilities presented in the Statement of Financial Position 21,934 16,480 Amounts subject to an enforceable master netting arrangement or similar agreement not offset in the Statement of Financial Position related to: Financial instruments -4,324 -5,713 Cash collateral paid -15,537 -9,031 Net amount 2,073 1,736 |
Shares (Tables)
Shares (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Shares | |
Schedule of shares in subsidiaries | Shares in subsidaries December 31, 2018 December 31, 2017 Skr mn Book value Number of shares Book value Number of shares Venantius AB (reg.no 556449-5116) — — 24 5,000,500 SEKETT AB (reg.no 559132-9668) 0 50 — — |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other assets. | |
Schedule of other assets | Skr mn Dec 31, 2018 Dec 31, 2017 Claim against the State for CIRR loans and concessionary loans 3,915 3,309 Cash receivables, funding operations 960 198 Other 105 49 Total 4,980 3,556 |
Prepaid expenses and accrued _2
Prepaid expenses and accrued revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Prepaid expenses and accrued revenues | |
Schedule of prepaid expenses and accrued revenues | Skr mn Dec 31, 2018 Dec 31, 2017 Interest income accrued 2,643 2,075 Prepaid expenses and other accrued revenues 14 16 Total 2,657 2,091 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt | |
Schedule of debt as per categories | December 31, 2018 Total debt excluding debt Total debt Skr mn securities issued securities — issued Total Exchange-rate related contracts — 2,097 2,097 Interest rate related contracts 2,247 252,624 254,871 Equity related contracts — 783 783 Contracts related to raw materials, credit risk etc — 96 96 Total debt outstanding 2,247 255,600 257,847 of which denominated in: Skr 2,098 USD 166,827 JPY 34,929 EUR 21,188 Other currencies 32,805 December 31, 2017 Total debt excluding debt Total debt Skr mn securities issued securities — issued Total Exchange-rate related contracts — 33,016 33,016 Interest rate related contracts 2,317 188,607 190,924 Equity related contracts — 779 779 Contracts related to raw materials, credit risk etc — 114 114 Total debt outstanding 2,317 222,516 224,833 of which denominated in: Skr 1,116 USD 119,112 JPY 32,988 EUR 29,191 Other currencies 42,426 |
Schedule of major borrowing programs | Value outstanding (1) Skr mn December 31, 2018 December 31, 2017 Medium-term note program: Unlimited Euro Medium-Term Note Programme 99,710 98,189 Unlimited SEC-registered U.S. Medium-Term Note Programme 143,109 111,444 Unlimited Swedish Medium-Term Note Programme 261 256 Unlimited MTN/STN AUD Debt Issuance Programme 3,875 3,607 Commercial paper program: USD 3,000,000,000 U.S. Commercial Paper Programme 4,723 1,637 USD 4,000,000,000 Euro-Commercial Paper Programme 1,961 — (1) Amortized cost excluding fair value adjustments. |
Schedule of liabilities in financing activities | Non-cash items Exchange-rate Unrealized changes in fair Skr mn December 31, 2017 Cash flow difference value December 31, 2018 Senior debt 224,833 25,102 15,997 -8,085 257,847 Subordinated debt 2,040 -2,322 220 62 — Derivatives - net 8,677 1,830 -3,173 8,039 15,373 Total liabilities in financing activities 235,550 24,610 13,044 16 273,220 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other liabilities | |
Schedule of other liabilities | Skr mn Dec 31, 2018 Dec 31, 2017 Cash payables, debt purchases 682 668 Other 387 158 Total 1,069 826 |
Accrued expenses and prepaid _2
Accrued expenses and prepaid revenues (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued expenses and prepaid revenues. | |
Schedule of accrued expenses and prepaid revenues | Skr mn Dec 31, 2018 Dec 31, 2017 Interest expenses accrued 2,542 2,023 Other accrued expenses and prepaid revenues 41 40 Total 2,583 2,063 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Provisions | |
Schedule of provisions | Consolidated Group Skr mn Dec 31, 2018 Dec 31, 2017 Pension liabilities (see Note 5) 80 40 Long term employee benefit 3 4 Off balance, expected credit losses(1) 2 — Termination reserve — 1 Total 85 45 (1) Provisions for expected credit losses are on the off-balance-sheet, in accordance with IFRS 9. See Note 9. |
Subordinated debt securities (T
Subordinated debt securities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Subordinated debt securities | |
Schedule of subordinated debt securities | December 31, December 31, Skr mn 2018 2017 Fixed Rate Resettable Dated Subordinated Instruments(1) — 2,040 Total subordinated liabilities outstanding — 2,040 of which denominated in: Swedish kronor — — Foreign currencies — 2,040 2018 2017 Total interest expense 54 61 of which accrued interest(2) — 8 (1) SEK´s fixed rate resettable dated subordinated debt totaling USD 250 million was redeemed on the “optional redemption date” November 14, 2018 in accordance with the loan terms and under specific consent to do so from the Swedish Financial Supervisory Authority. (2) The accrued interest is attributable to subordinated borrowing and is included in ”Accrued expenses and prepaid revenues”. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity | |
Schedule of components of equity | Consolidated Group December 31, December 31, Skr mn 2018 2017 Share capital 3,990 3,990 Legal reserve — — Fund for internally developed software — — Reserves/Fair value reserve Hedge reserve 6 25 Fair value reserve — 9 Own credit risk -117 — Defined benefit plans -42 -4 Retained earnings 14,402 13,554 Total equity 18,239 17,574 |
Restricted and unrestricted equity | Consolidated Group December 31, December 31, Skr mn 2018 2017 Restricted equity 5,240 6,122 Unrestricted equity 12,999 11,452 Total equity 18,239 17,574 |
Proposal for the distribution of profits | At the disposal of the Annual General Meeting 13,054 The Board of Directors proposes that the Annual General Meeting dispose of these funds as follows: - dividend to the shareholder of Skr 48.70 per share, amounting to 194 - remaining disposable funds to be carried forward 12,860 |
Pledged assets and contingent_2
Pledged assets and contingent liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Pledged assets and contingent liabilities | |
Schedule of pledged assets and contingent liabilities | Skr mn Dec 31, 2018 Dec 31, 2017 Collateral provided Cash collateral under the security agreements for derivative contracts 16,374 10,314 Contingent liabilities Guarantee commitments 4,032 3,360 Commitments Committed undisbursed loans 50,814 72,914 Binding offers 744 1,211 |
CIRR-system (Tables)
CIRR-system (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
CIRR-system | |
The disclosure of information about CIRR-systems. | Statement of comprehensive income for the CIRR-system Skr mn 2018 2017 2016 Interest income 1,624 1,343 1,185 Interest expenses -1,480 -1,115 -961 Net interest income 144 228 224 Interest compensation 20 26 121 Foreign exchange effects 9 -6 4 Profit before compensation to SEK 173 248 349 Administrative remuneration to SEK -155 -123 -114 Operating profit CIRR-system 18 125 235 Reimbursement to (-) / from (+) the State -18 -125 -235 Statement of Financial Position for the CIRR-system (included in SEK’s statement of financial position) December 31, December 31, Skr mn 2018 2017 Cash and cash equivalents — 10 Loans 69,922 49,124 Derivatives 502 522 Other assets 4,090 3,472 Prepaid expenses and accrued revenues 561 364 Total assets 75,075 53,492 Liabilities 70,144 49,252 Derivatives 4,408 3,789 Accrued expenses and prepaid revenues 523 451 Total liabilities and equity 75,075 53,492 Commitments Committed undisbursed loans 47,664 69,161 Binding offers 616 628 |
Capital adequacy (Tables)
Capital adequacy (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Capital adequacy. | |
Schedule of capital adequacy | Parent Company December 31, 2018 December 31, 2017 Capital ratios excl. buffer requirements(1) Common Equity Tier 1 ratio 20.1 % 20.6 % Tier 1 capital ratio 20.1 % 20.6 % Total capital ratio(2) 20.1 % 23.0 % Institution specific Common Equity Tier 1 capital requirement incl. buffers(3) 8.5 % 8.4 % of which Common Equity Tier 1 capital requirement 4.5 % 4.5 % of which capital conservation buffer 2.5 % 2.5 % of which countercyclical buffer 1.5 % 1.4 % of which systemic risk buffer — — Common Equity Tier 1 capital available as a buffer(4) 12.1 % 14.6 % Total capital ratio according to Basel I floor n.a. 21.9 % (1) Capital ratios excluding buffer requirements are the quotients of the relevant capital metric and the total Risk exposure amount. The minimum requirements, which were implemented in Sweden without a transitional period, are 4.5 percent, 6.0 percent and 8.0 percent for Common Equity Tier 1 capital, Tier 1 capital and total own funds, respectively. The minimum requirements apply in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council of June 26, 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (CRR). (2) The reduction in Total capital ratio in 2018 is mainly due to the fact that SEK has exercised its right to call the Tier 2 eligible subordinated debt instrument. See footnote in the table “Own funds - Adjusting items” below. (3) Expressed as a percentage of the total Risk exposure amount. (4) The Common Equity Tier 1 capital ratio as reported less its minimum requirement of 4.5 percent plus an additional 3.5 percent. The latter component consists of Common Equity Tier 1 capital used to meet the minimum requirement for total own funds of 8.0 percent, since SEK does not have any Additional Tier 1 other than Common Equity Tier 1 capital and nor any Tier 2 capital. |
Schedule of own funds | Parent Company December 31, December 31, Own funds – adjusting items - Skr mn 2018 2017(5) Share capital(1) 3,990 3,990 Retained earnings 11,239 12,782 Accumulated other comprehensive income and other reserves(2) 1,256 30 Independently reviewed profit net of any foreseeable charge or dividend 1,615 540 Common Equity Tier 1 (CET1) capital before regulatory adjustments 18,100 17,342 Additional value adjustments due to prudent valuation -496 -396 Intangible assets -43 -66 Fair-value reserves related to gains or losses on cash-flow hedges -6 -25 Gains or losses on liabilities valued at fair value resulting from changes in own credit standing 112 446 Negative amounts resulting from the calculation of expected loss amounts -136 -65 Total regulatory adjustments to Common Equity Tier 1 capital -569 -106 Total Common Equity Tier 1 capital 17,531 17,236 Additional Tier 1 capital — — Total Tier 1 capital 17,531 17,236 Tier 2-eligible subordinated debt(3) — 2,049 Credit risk adjustments(4) — — Total Tier 2 capital — 2,049 Total Own funds 17,531 19,285 Total Own funds according to Basel I floor n.a. 19,350 (1) For a detailed description of the instruments constituting share capital, see Note 23. (2) The equty-portions of untaxed reserves is included in the line “Accumulated other comprehensive income and other reserves”. (3) In June 2018, SEK received permission from its competent authority (Swedish FSA) to call its Tier 2 eligible subordinated debt instrument in accordance with its terms. As a result of the permission from Swedish FSA, SEK was required to reduce the level of own funds by the outstanding principal amount of the instrument. The Board of Directors of SEK in September 2018 decided that SEK would exercise its right to call the instrument ( see Note 22) and the instrument was redeemed on November 14, 2018. (4) The expected loss amount calculated under the IRB approach is a gross deduction from own funds. The gross deduction is decreased by impairment related to exposures for which expected loss is calculated. Excess amounts of such impairment will increase own funds. This increase is limited to 0.6 percent of SEK’s risk exposure amount under the IRB approach related to exposures to central governments, corporates and financial institutions. As of December 31, 2018, the limitation rule had no effect, as in 2017. (5) Comparative figures are shown at the level of the Consolidated Group, since a consolidated level of the capital situation was in effect in 2017. |
Schedule of minimum capital requirements exclusive of buffers | Parent Company December 31, 2018 December 31, 2017 Risk Min. Risk Min. exposure capital exposure capital Skr mn EAD(1) amount requirement EAD(1) amount requirement Credit risk, standardized approach Central governments — — — — — — Regional governments — — — — — — Multilateral development banks — — — — — — Corporates 1,701 1,701 136 1,316 1,316 105 Total credit risk, standardized approach 1,701 1,701 136 1,316 1,316 105 Credit risk, IRB approach Central governments 171,572 9,905 792 161,429 9,331 747 Financial institutions(2) 33,953 9,880 790 38,163 12,688 1,015 Corporates(3) 113,987 59,486 4,760 104,630 53,763 4,301 Non-credit-obligation assets 90 90 7 121 121 10 Total credit risk IRB approach 319,602 79,361 6,349 304,343 75,903 6,073 Credit valuation adjustment risk n.a. 2,037 163 n.a. 1,989 159 Foreign exchange risk n.a. 879 70 n.a. 1,326 106 Commodity risk n.a. 10 1 n.a. 13 1 Operational risk n.a. 3,066 245 n.a. 3,284 263 Total 321,303 87,054 6,964 305,659 83,831 6,707 Adjustment according to Basel I floor n.a. n.a. n.a. n.a. 4,503 360 Total incl. Basel I floor n.a. n.a. n.a. n.a. 88,334 7,067 (1) Exposure at default (EAD) shows the size of the outstanding exposure at default. (2) Of which counterparty risk in derivative contracts: EAD 4,525 million (year-end 2017: Skr 4,131 million), Risk exposure amount of Skr 1,668 million (year-end 2017: Skr 1,574 million) and Capital requirement of Skr 133 million (year-end 2017: Skr 126 million) (3) Of which related to Specialized lending: EAD 3,400 million (year-end 2017: Skr 2,478 million), Risk exposure amount of Skr 2,157 million (year-end 2017: Skr 1,643 million) and Capital requirement of Skr 173 million (year-end 2017:Skr 131 million). |
Schedule of credit risk by PD grade | December 31, 2018 December 31, 2017 AAA A+ A+ BBB+ to AA- to A– BBB+ BB+ to B– CCC to D AAA to AA- to A– to BBB– BB+ to B– CCC to D 0.003– 0.02– to BBB– 0.54– 27.27– 0.003– 0.03– 0.12– 0.53– 25.29– Skr mn 0.01% 0.07% 0.12–0.32% 6.80% 100% 0.02% 0.07% 0.32% 6.47% 100% Central governments EAD 163,603 7,064 — 906 — 153,496 7,107 — 826 — Average PD in % 0.004 0.04 — 1.5 — 0.004 0.04 — 0.9 — Average LGD in % 45.0 45.0 — 45.0 — 45.0 45.0 — 45.0 — Average risk weight in % 4.6 18.8 — 112.1 — 4.7 19.0 — 93.6 — December 31, 2018 December 31, 2017 A+ A+ AAA to A– BBB+ BB+ to B– CCC to D to A– BBB+ BB+ to B– CCC to D to AA- 0.01- 0.06– to BBB– 0.54– 28.60– AAA to AA- 0.06– to BBB– 0.54– 28.60– Skr mn 0.04% 0.12% 0.17–0.34% 8.40% 100% 0.01–0.04% 0.12% 0.17–0.34% 8.40% 100% Financial institutions EAD 10,323 21,926 1,345 359 — 9,368 25,926 1,722 1,149 — Average PD in % 0.04 0.08 0.23 1.31 — 0.04 0.08 0.23 0.84 — Average LGD in % 43.8 44.2 45.0 45.0 — 41.6 44.3 45.0 45.0 — Average risk weight in % 20.1 29.3 66.0 135.5 — 22.3 31.3 65.1 117.8 — Corporates EAD 7,154 22,379 60,943 20,072 39 7,871 18,515 59,574 16,153 40 Average PD in % 0.03 0.10 0.25 0.79 63.11 0.03 0.10 0.25 0.81 65.59 Average LGD in % 45.0 45.0 45.0 45.0 45.0 45.0 45.0 45.0 45.0 45.0 Average risk weight in % 18.6 33.0 51.5 85.5 136.2 18.5 33.6 51.3 85.6 127.1 |
Schedule of leverage ratio | December 31, December 31, Skr mn 2018 2017 Exposure measure for the leverage ratio On-balance-sheet exposures 281,529 249,244 Off-balance-sheet exposures 33,159 42,168 Total exposure measure 314,688 291,412 Leverage ratio 5.6 % 5.9 % |
Schedule of internally assessed economic capital excluding buffer | December 31, December 31, Skr mn 2018 2017 Credit risk 7,008 6,898 Operational risk 239 142 Market risk 1,094 1,573 Other risks 163 170 Capital planning buffer 1,966 2,005 Total 10,470 10,788 |
Risk information (Tables)
Risk information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Risk information | |
Schedule of credit risk exposure | December 31, 2018 Maximum credit-risk exposure Assets at fair value through Amortized Skr mn profit or loss costs Cash and cash equivalents — 2,686 Treasuries/government bonds 11,124 — Other interest-bearing securities except loans 48,577 — Loans in the form of interest-bearing securities — 36,303 Loans to credit institutions — 12,543 Loans to the public — 215,504 Derivatives 4,525 — Total financial assets 64,226 267,036 December 31, 2017 Maximum credit-risk exposure Assets at fair value through Available-for-sale Loans and Skr mn profit or loss assets accounts receivable Cash and cash equivalents — — 1,231 Treasuries/government bonds — 4,376 — Other interest-bearing securities except loans 133 39,592 — Loans in the form of interest-bearing securities — — 40,558 Loans to credit institutions — — 23,209 Loans to the public — — 213,549 Derivatives 7,803 — — Total financial assets 7,936 43,968 278,547 The table below illustrates the link between the statement of financial position categories and net exposures according to CRR. December 31, 2018 Adjustment to carrying Multilateral Carrying amount from Central Regional development Public sector Skr mdr amount exposure(1) governments governments banks entity Financial institutions Corporates Cash and cash equivalents 2.4 -0.2 0.3 — — — 2.3 — Treasuries/government bonds 11.1 0.0 11.1 — — — — — Other interest-bearing securities except loans 48.7 -0.1 4.8 7.0 — 0.6 15.7 20.7 Loans in the form of interestbearing securities 36.8 -0.1 — — — — 0.7 36.2 Loans to credit institutions including cash and cash equivalents(1) 27.7 16.2 1.4 5.5 — — 4.5 0.1 Loans to the public 161.1 -1.1 99.5 0.9 0.1 — 5.6 56.1 Derivatives 6.5 2.0 — — — — 4.5 0.0 Other assets 5.0 0.9 4.1 — — — — — Total financial assets 299.3 17.6 121.2 13.4 0.1 0.6 33.3 113.1 Contingent liabilities and commitments(2) 55.6 -0.1 48.4 — — 0.0 0.9 6.4 Total 354.9 17.5 169.6 13.4 0.1 0.6 34.2 119.5 December 31, 2017 Adjustment to carrying Multilateral Carrying amount from Central Regional development Public sector Skr mdr amount exposure(1) governments governments banks entity Financial institutions Corporates Cash and cash equivalents 1.2 0.0 0.5 — — — 0.7 — Treasuries/government bonds 4.4 0.0 4.4 — — — — — Other interest-bearing securities except loans 39.8 -0.2 1.3 4.9 — 0.4 20.7 12.7 Loans in the form of interestbearing securities 41.1 -0.2 — — — — 2.1 39.2 Loans to credit institutions including cash and cash equivalents(2) 23.2 10.4 1.9 5.8 — — 4.8 0.3 Loans to the public 141.1 -0.8 85.6 0.7 — 0.0 4.4 51.2 Derivatives 7.8 3.7 — — — — 4.1 0.0 Other assets 3.6 0.1 3.5 — — — — — Total financial assets 262.2 13.0 97.2 11.4 — 0.4 36.8 103.4 Contingent liabilities and commitments(2) 78.0 — 69.9 — — — 1.8 6.3 Total 340.2 13.0 167.1 11.4 — 0.4 38.6 109.7 1 Skr 16.4 billion (2017: Skr 10.3 billion) of the book value for Loans to credit institutions is cash collateral under the CSAs for derivative contracts. 2 Contingent liabilities and commitments, except cash collateral. Total net exposures Interest-bearing securities Committed undisbursed loans, derivatives, and lending etc. Total Skr mdr December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 December 31, 2018 December 31, 2017 Exposure class Amount % Amount % Amount % Amount % Amount % Amount % Central governments 121.2 43.8 97.1 39.6 48.4 80.3 70.0 85.1 169.6 50.3 167.1 51.1 Regional governments 13.4 4.8 11.4 4.7 — — — — 13.4 4.0 11.4 3.5 Multilateral development banks 0.1 0.0 0.0 0.0 0.0 0.0 — — 0.1 0.0 0.0 0.0 Public sector entity 0.6 0.2 0.4 0.2 — — — — 0.6 0.2 0.4 0.1 Financial institutions 28.7 10.4 32.7 13.3 5.5 9.1 5.9 7.2 34.2 10.1 38.6 11.8 Corporates 113.1 40.8 103.4 42.2 6.4 10.6 6.3 7.7 119.5 35.4 109.7 33.5 Total 277.1 100.0 245.0 100.0 60.3 100.0 82.2 100.0 337.4 100.0 327.2 100.0 Geographical breakdown of gross exposures by exposure class, at December 31, 2018 Middle East/ Western Central and Africa/ Asia excl. North Latin Europe excl Eastern Skr mdr Turkey Japan Japan America Oceania America Sweden Sweden Europe Total Central governments 2.8 5.3 4.0 1.9 — 43.7 7.1 8.6 — 73.4 Regional governments 1.7 — — — — — 7.0 0.1 — 8.8 Public sector entity — — — — — — — 0.6 — 0.6 Financial institutions — 2.4 0.5 6.2 1.1 0.4 12.3 9.8 0.3 33.0 Corporates 21.4 12.6 1.2 53.0 — 9.6 83.2 36.0 4.6 221.6 Total 25.9 20.3 5.7 61.1 1.1 53.7 109.6 55.1 4.9 337.4 Geographical breakdown of gross exposures by exposure class, at December 31, 2017 Middle East/ Western Central and Africa/ Asia excl. North Latin Europe excl. Eastern Skr mdr Turkey Japan Japan America Oceania America Sweden Sweden Europe Total Central governments 1.8 5.6 4.0 — — 42.7 7.4 0.2 — 61.7 Regional governments 0.6 — — — — — 4.8 0.1 — 5.5 Public sector entity — — — — — — — 0.4 — 0.4 Financial institutions — 3.1 0.0 9.1 1.1 1.2 11.3 10.8 0.3 36.9 Corporates 23.0 14.6 0.2 53.5 0.1 9.9 74.3 39.9 7.2 222.7 Total 25.4 23.3 4.2 62.6 1.2 53.8 97.8 51.4 7.5 327.2 Geographical breakdown of net exposures by exposure class, at December 31, 2018 Middle East/ Western Central and Africa/ Asia excl. North Latin Europe excl. Eastern Skr mdr Turkey Japan Japan America Oceania America Sweden Sweden Europe Total Central governments — 0.7 4.0 3.9 — 0.9 139.0 18.0 3.1 169.6 Regional governments — — — — — — 13.2 0.2 — 13.4 Multilateral development banks — — — — — — — 0.1 — 0.1 Public sector entity — — — — — — — 0.6 — 0.6 Financial institutions — 2.4 0.9 6.9 1.1 0.3 8.7 13.6 0.3 34.2 Corporates 4.6 3.1 3.1 2.9 — 3.0 80.5 22.2 0.1 119.5 Total 4.6 6.2 8.0 13.7 1.1 4.2 241.4 54.7 3.5 337.4 Geographical breakdown of net exposures by exposure class, at December 31, 2017 Middle East/ Western Central and Africa/ Asia excl. North Latin Europe excl. Eastern Skr mdr Turkey Japan Japan America Oceania America Sweden Sweden Europe Total Central governments — 0.7 4.0 2.4 — 0.9 145.1 10.9 3.1 167.1 Regional governments — — — — — — 11.2 0.2 — 11.4 Multilateral development banks — — — — — — — 0.0 — 0.0 Public sector entity — — — — — — — 0.4 — 0.4 Financial institutions — 3.0 0.5 9.6 1.2 1.1 6.9 16.0 0.3 38.6 Corporates 4.9 3.6 1.7 2.9 — 3.3 72.2 21.0 0.1 109.7 Total 4.9 7.3 6.2 14.9 1.2 5.3 235.4 48.5 3.5 327.2 Gross exposures Europe, excluding Sweden, breakdown by exposure class, at December 31, 2018 Central Regional Public sector Financial Skr bn governments governments entity institutions Corporates Total Spain — — — 0.1 9.8 9.9 Norway — — — 2.4 4.1 6.5 Finland 0.1 0.1 — 0.2 5.4 5.8 United Kingdom — — — 2.6 2.6 5.2 Denmark — — — 1.7 3.2 4.9 Austria 2.9 — — 1.7 — 4.6 Italy — — — — 4.2 4.2 Germany 3.1 — 0.6 0.3 — 4.0 The Netherlands 1.7 — — 0.1 1.6 3.4 Poland — — — — 3.1 3.1 France — — — 0.6 2.1 2.7 Luxembourg 0.8 — — — 1.2 2.0 Russian Federation — — — — 1.4 1.4 Switzerland — — — 0.1 0.8 0.9 Belgium — — — 0.0 0.6 0.6 Ireland — — — — 0.4 0.4 Latvia — — — 0.2 — 0.2 Iceland — — — — 0.2 0.2 Portugal — — — — 0.1 0.1 Estonia — — — 0.0 — 0.0 Ukraine — — — — 0.0 0.0 Hungary — — — — 0.0 0.0 Greece — — — — 0.0 0.0 Total 8.6 0.1 0.6 10.0 40.8 60.1 Gross exposures Europe, excluding Sweden, breakdown by exposure class, at December 31, 2017 Central Regional Public sector Financial Skr bn governments governments entity institutions Corporates Total Spain — — — 0.1 12.4 12.5 Finland 0.2 0.1 — — 7.1 7.4 Norway — — — 3.3 2.5 5.8 United Kingdom — — — 2.2 3.1 5.3 The Netherlands — — — 2.2 2.1 4.3 Italy — — — — 4.2 4.2 France — — — 1.6 2.5 4.1 Russia — — — — 4.0 4.0 Denmark — — — 1.1 2.8 3.9 Poland — — — — 3.1 3.1 Luxembourg — — — 0.0 1.2 1.2 Switzerland — — — — 0.9 0.9 Germany — — 0.4 0.3 — 0.7 Iceland — — — — 0.5 0.5 Ireland — — — — 0.4 0.4 Belgium — — — 0.0 0.3 0.3 Latvia — — — 0.2 — 0.2 Estonia — — — 0.1 — 0.1 Greece — — — — 0.0 0.0 Hungary — — — — 0.0 0.0 Ukraine — — — — 0.0 0.0 Total 0.2 0.1 0.4 11.1 47.1 58.9 Net exposures Europe, excluding Sweden, breakdown by exposure class, at December 31, 2017 Multilateral Central Regional development Public sector Financial Skr bn governments governments banks entity institution Corporates Total France 7.3 — — — 1.7 0.0 9.0 Germany 3.9 — — 0.6 1.4 1.6 7.5 United Kingdom 0.3 — — — 1.6 4.9 6.8 Norway 0.4 — — — 2.4 4.0 6.8 Denmark 0.2 — — — 2.4 3.2 5.8 Finland 0.4 0.2 — — 0.3 4.6 5.5 Austria 2.9 — — — 1.7 — 4.6 Poland 3.1 — — — — 0.0 3.1 The Netherlands 1.7 — — — 0.4 0.7 2.8 Luxembourg 0.8 — 0.1 — — 1.0 1.9 Spain — — — — 0.9 0.5 1.4 Belgium — — — — 0.6 0.5 1.1 Switzerland — — — — 0.3 0.5 0.8 Ireland — — — — — 0.4 0.4 Latvia — — — — 0.2 — 0.2 Italy — — — — — 0.2 0.2 Iceland — — — — — 0.2 0.2 Portugal — — — — — 0.1 0.1 Estonia — — — — 0.0 — 0.0 Hungary — — — — — 0.0 0.0 Russian Federation — — — — — 0.0 0.0 Total 21.0 0.2 0.1 0.6 13.9 22.4 58.2 Net exposures Europe, excluding Sweden, breakdown by exposure class, at December 31, 2017 Multilateral Central Regional development Public sector Financial Skr bn governments governments banks entity institution Corporates Total France 7.8 — — — 2.5 0.0 10.3 United Kingdom 0.5 — — — 1.7 5.5 7.7 Finland 0.5 0.3 — — — 6.3 7.1 Norway 0.5 — — — 3.4 2.3 6.2 Denmark 0.2 — — — 2.2 2.4 4.8 Germany 1.4 — — 0.4 2.0 0.9 4.7 Poland 3.1 — — — — — 3.1 The Netherlands — — — — 2.4 0.2 2.6 Spain — — — — 0.9 1.7 2.6 Belgium — — — — 0.7 0.2 0.9 Switzerland — — — — 0.2 0.3 0.5 Luxembourg 0.0 — 0.0 — 0.0 0.4 0.4 Ireland — — — — — 0.4 0.4 Latvia — — — — 0.2 — 0.2 Iceland — — — — — 0.2 0.2 Italy — — — — — 0.1 0.1 Russia — — — — — 0.1 0.1 Estonia — — — — 0.1 — 0.1 Austria — — — — 0.0 — 0.0 Hungary — — — — — 0.0 0.0 Total 14.0 0.3 0.0 0.4 16.3 21.0 52.0 Corporate exposures, broken down by industry (GICS) December 31, 2018 December 31, 2017 Skr mdr Gross exposure Net exposure Gross exposure Net exposure IT and telecom 79.6 13.0 88.4 12.9 Industry 46.9 41.0 41.9 36.4 Finance 27.6 16.6 32.2 19.9 Commodities 24.5 19.0 21.9 16.8 Consumer goods 21.8 20.4 18.3 15.9 Electricity, water and gas 15.0 5.6 14.1 4.4 Healthcare 3.5 3.2 3.0 2.7 Energy 2.5 0.5 2.9 0.7 Other 0.2 0.2 — — Total 221.6 119.5 222.7 109.7 |
Schedule of credit quality | December 31, 2018 Skr mn AAA AA+ till A- BBB+ till BBB- BB+ till B- CCC till D Carrying amount Cash and cash equivalents 634 1,782 — — — 2,416 Treasuries/government bonds 2,365 8,752 — — — 11,117 Other interest-bearing securities except loans 10,882 32,331 5,452 — — 48,665 Loans in the form of interest-bearing securities — 8,182 24,488 4,111 — 36,781 Loans to credit institutions 2,663 23,161 1,480 421 — 27,725 Loans to the public 84,766 25,878 32,971 17,430 49 161,094 Derivatives — 5,322 1,207 — — 6,529 Total financial assets 101,310 105,408 65,598 21,962 49 294,327 Committed undisbursed loans 47,644 1,626 1,253 290 1 50,814 December 31, 2017 Skr mn AAA AA+ till A- BBB+ till BBB- BB+ till B- CCC till D Carrying amount Cash and cash equivalents 1,133 98 — — — 1,231 Treasuries/government bonds 401 3,981 — — — 4,382 Other interest-bearing securities except loans 4,396 34,295 1,116 — — 39,807 Loans in the form of interest-bearing securities — 9,636 27,434 4,055 — 41,125 Loans to credit institutions 3,018 15,766 3,229 1,185 — 23,198 Loans to the public 70,043 25,670 32,168 13,164 66 141,111 Derivatives — 6,324 1,479 — — 7,803 Total financial assets 78,991 95,770 65,426 18,404 66 258,657 Committed undisbursed loans 63,922 978 6,452 1,562 — 72,914 |
Schedule of impact of credit risk hedges | Impact of credit-risk hedges, at December 31, 2018 Gross exposures by exposure class wherof Central Regional Public Financial subject to Skr bn government governments Sector Entity institutions Corporates Total IFRS9(1) Amounts related to hedges issued by: Central governments 50.9 1.7 — 0.2 94.3 147.1 147.1 of which, guarantees issued by the EKN 49.9 1.7 — 0.1 80.1 131.8 131.8 of which, guarantees issued by other 1.0 — — 0.1 10.9 12.0 12.0 of which, other guarantees — — — — 3.3 3.3 3.3 Regional governments — — — 5.5 0.8 6.3 6.3 Multilateral development banks — — — — 0.1 0.1 0.1 Financial institutions — — — — 6.9 6.9 6.9 of which, credit default swaps — — — — — — — of which, guarantees — — — — 6.9 6.9 6.9 Corporates — — — — 2.7 2.7 2.7 of which, credit insurance from insurance companies — — — — 1.8 1.8 1.8 of which, other guarantees — — — — 0.9 0.9 0.9 Total hedged exposures 50.9 1.7 — 5.7 104.8 163.1 163.1 Unhedged exposures(2) 22.5 7.1 0.6 27.3 116.8 174.3 105.3 Total 73.4 8.8 0.6 33.0 221.6 337.4 268.4 (1) Assets valued at accrued acquisition value, which are subject to the write-down requirements in IFRS 9. (2) Exposures whereby the hedge issuer belongs to the same group as the counterparty in the unhedged exposure have been reported as “Unhedged exposures.” The amounts for these were Skr 25.8 billion for corporates and Skr 0.2 billion for central governments. Impact of credit-risk hedges, at December 31, 2017 Gross exposures by exposure class Central Regional Public Financial Skr bn government governments Sector Entity institutions Corporates Total Amounts related to hedges issued by: Central governments 49.3 0.5 — 0.4 104.4 154.6 of which, guarantees issued by the EKN 48.2 0.5 — 0.2 88.6 137.5 of which, guarantees issued by other 1.1 — — 0.2 12.5 13.8 of which, other guarantees — — — — 3.3 3.3 Regional governments — 0.0 — 5.9 0.6 6.5 Financial institutions 0.0 — — 0.0 8.0 8.0 of which, credit default swaps — — — — 1.0 1.0 of which, guarantees 0.0 — — 0.0 7.0 7.0 Corporates — — — 0.0 3.1 3.1 of which, credit insurance from insurance companies — — — — 2.5 2.5 of which, other guarantees — — — 0.0 0.6 0.6 Total hedged exposures 49.3 0.5 — 6.3 116.1 172.2 Unhedged exposures(1) 12.4 5.0 0.4 30.6 106.6 155.0 Total 61.7 5.5 0.4 36.9 222.7 327.2 (1) Exposures whereby the hedge issuer belongs to the same group as the counterparty in the unhedged exposure have been reported as “Unhedged exposures.” The amounts for these were Skr 22.4 billion for corporates and Skr 0.2 billion for central governments. |
Schedule of risk specific measures | Market risk, type Definition Risk profile Value at Risk VaR measures a potential negative impact on SEK’s equity, in the form of unrealized gains or losses, as a result of value changes from historical market movements. Daily historic movements with a two-year horizon are applied to current holdings to simulate possible outcomes. The fifth worst outcome is reported as VaR. The risk factors that primarily drive VaR at total level are cross-currency basis spreads and interest rates. In SEK’s liquidity portfolio, the primary driver is the bond portfolio credit spread risk. VaR for SEK and the liquidity portfolio amounted to Skr 14 million (year-end 2017: Skr 20 million) and Skr 8 million (year-end 2017: Skr 9 million) at the end of 2018. Risk appetite were Skr 100 million and Skr 50 million respectively. Aggregated risk measure The aggregated risk measure measures a potential negative impact on SEK’s equity as a result of value changes from historical market movements. Monthly market movements dating back as far as 2006 are applied to current holdings to simulate possible outcomes. The worst outcome is reported as the aggregated risk measure. The risk factors primarily driving aggregated risk measures are credit spreads and interest rates followed by cross-currency basis spreads and exchange rates. Since aggregated risk measures are based on historical market data from 2006, the measure is not comparable with VaR but is comparable with stressed VaR (see above). At the end of 2018, the aggregated risk measure amounted to Skr 742 million (year-end 2017: 582). Risk appetite was Skr 1100 million (year-end 2017: 1100). Interest-rate risk regarding changes in the economic value of SEK’s portfolio (EVE) The interest-rate risk regarding changes in economic value is calculated by means of a 100 basis-point parallel shift in all yield curves. Positive and negative exposures are measured separated and whichever is largest, in absolute terms, comprises the exposure. The risk pertains to SEK’s overall business profile, particularly the balance between interest-bearing assets and liabilities in terms of volume and fixed interest terms. The risk measurement captures the long-term impact of changes in interest rates. At the end of 2018, the risk amounted to Skr 188 million (year-end 2017: Skr 223 million). Risk appetite were Skr 500 million (year-end 2017: Skr 500 million). Interest-rate risk regarding changes in future net interest income (NII) The net interest income risk within one year is calculated as the impact on net interest income for the coming year if new financing and investment must take place following a positive interest-rate shift of 100 basis points. For each stress test, the risk per currency is totaled in absolute terms. The risk pertains to SEK’s overall business profile, particularly the balance between interest-bearing assets and liabilities in terms of volume and fixed interest terms for the next year. The risk measurement captures the short-term impact of changes in interest rates. A shared limit of Skr 350 million is set for NII risk together with risk to NII from cross-currency basis swaps and, at the end of 2018, the combined exposure for NII risk including risk to NII from cross-currency basis swaps was Skr 237 million. Risk to NII from cross-currency basis swaps The 12 ‑month risk to NII from cross-currency basis swaps is measured as the impact on SEK’s future earnings resulting from an assumed cost increase for transfers between currencies for which cross-currency basis swaps are used. For each stress test, the risk per currency is totaled in absolute terms. The risk is attributable to cases where borrowing and lending are not matched in terms of currency and, therefore, the future cost (change in the cross-currency basis spread) of converting borrowing to the desired currency is dependent on cross-currency basis swaps. The risk is primarily attributable to Swedish kronor, because SEK has a deficit of Swedish kronor and borrows funds in other currencies, which are swapped into Swedish kronor. A shared limit of Skr 350 million is set for risk to NII from cross-currency basis swaps together with NII risk and, at the end of 2018, the combined exposure for NII risk including risk to NII from cross-currency basis swaps was Skr 237 million. Credit spread risk in assets Credit spread risk in assets is calculated as a potential impact on SEK’s equity, in the form of unrealized gains or losses, as a result of a 100 basis-point shift in the credit spreads for those assets measured at fair value. The risk is attributable to bonds in liquidity investments, including liquidity reserves, credit derivatives that hedge the credit risk in a number of bonds, and securitizations. At the end of 2018, the credit spread risk in assets was negative Skr 297 million (year-end 2017: negative Skr 210 million) and the credit spread risk limit in assets amounted to Skr 500 million (year-end 2017: Skr 500 million). Credit spread risk in own debt Credit spread risk in own debt can have a potential impact on SEK’s equity, in the form of unrealized gains or losses, as a result of changes in present value after all of SEK’s credit spreads have been reduced by 20 basis points. The risk is attributable to SEK’s structured debt measured at fair value. At year-end 2018, the credit spread risk in own debt amounted to Skr 606 million (year-end 2017: Skr 601 million) and the credit spread risk in own debt limit was Skr 1,000 million (year-end 2017: Skr 1,000 million). Cross-currency basis spread risk. The cross-currency basis spread risk measures the potential impact on SEK’s equity, in the form of unrealized gains or losses, as a result of changes in cross-currency basis spreads. The risk is attributable to cross-currency basis swaps used by SEK to hedge the currency risk in the portfolio. At year-end 2018, the cross-currency basis swap risk amounted to Skr 212 million (year-end 2017: Skr 161 million) and the cross-currency basis swap risk limit amounted to Skr 450 million (year-end 2017: Skr 450 million). Currency risk The risk is calculated as the change in value of all foreign currency positions at an assumed 10 percentage-point change in the exchange rate between the respective currency and the Swedish krona. The foreign exchange position excluding unrealized changes in fair value is reported separately since SEK’s hedging strategy entails that only foreign exchange positions excluding unrealized changes in fair value are to be hedged. The foreign exchange position mainly arises on an ongoing basis due to differences between revenues and costs (net interest margins) in foreign currency. Currency risk excluding unrealized changes in fair value is kept low by matching assets and liabilities in terms of currencies or through the use of derivatives. In addition, accrued gains and losses in foreign currency are regularly converted to Swedish kronor. At the end of 2018, the risk amounted to Skr 8 million (year-end 2017: Skr 2 million) and the limit for currency risk was Skr 15 million (year-end 2017: Skr 15 million). Other risks (equities, commodity and volatility risks) These are attributable to structured borrowing and are calculated with the aid of stress tests of underlying equity indices or volatility. SEK’s equities and commodity risks, as well as FX volatility risks, only arise from structured borrowing. The structured borrowing is hedged by being swapped to floating interest rates. While all structured cash flows are matched through a hedging swap, there could be an impact on earnings. This is because measurement of the bond takes account of SEK’s own credit spread, while the swap is not affected and also because of changes in expected maturity for the structured borrowing. Interest-rate volatility risk also arises from other transactions with early redemption options. These risks are calculated and limited. At the end of 2018, these risks and limits were low. |
Schedule of change in the market interest rate | Change in value should the market interest rate rise by one percentage point Impact on the value of assets and liabilities, including derivatives, should the market interest rate rise by one percentage point (+1%). 2018 2017 of which, financial instruments of which, financial instruments of which, financial instruments of which, financial instruments measured at fair measured at fair value measured at fair measured at fair value through profit or through other comprehensive value value through other Skr mn Total loss income Total through profit or loss comprehensive income Foreign currency 59 258 0 17 326 -21 Swedish kronor -174 95 0 -188 109 -1 -115 353 0 -171 435 -22 Change in value should the market interest rate decline by one percentage point Impact on the value of assets and liabilities, including derivatives, should the market interest rate decline by one percentage point (‑1%). 2018 2017 of which, financial instruments of which, financial instruments of which, financial instruments of which, financial instruments measured at fair measured at fair value measured at fair measured at fair value through profit or through other comprehensive value value through other Skr mn Total loss income Total through profit or loss comprehensive income Foreign currency -29 -272 0 -4 -348 22 Swedish kronor 216 -92 0 274 -110 18 187 -364 0 270 -458 40 |
Schedule of assets and liabilities denominated in foreign currency | December 31, 2018 December 31, 2017 Share at Share at Exchange year end, Currency positions Exchange year end, Currency positions Currency rate % at year end (Skr mn) rate % at year end (Skr mn) SKR 1 94 n.a. 1 93 n.a. EUR 10.2626 1 -165 9.8255 2 -429 USD 8.9674 1 188 8.1950 1 289 JPY 0.08120 1 -185 0.07281 1 -216 GBP 11.3683 1 -133 11.0704 1 -133 CHF 0.4167 MXN 1 -137 THB 0.2755 1 -120 Other 1 282 1 -168 Total foreign currency position 100 -133 100 -794 Currency risk is limited to accrued net income and is hedged regularly. In accordance with SEK’s rules for risk management, currency positions attributable to unrealized changes in fair value are not hedged. Currency positions excluding unrealized changes in fair value amounted to Skr 0 million (year-end 2017: Skr 6 million) at year end. Assets and liabilities denominated in foreign currency are included in the total volumes of assets and liabilities in the following amounts (in millions of Swedish kronor). Skr mn December 31, 2018 December 31, 2017 Total assets, 302,033 264,392 of which, denominated in foreign currencies 216,355 201,371 Total liabilities, 283,794 246,818 of which, denominated in foreign currencies 229,880 202,166 |
Summary of liquidity reserve | Skr bn Total SKR EUR USD Other Securities issued or guaranteed by sovereigns, central banks or multilateral development banks 12.2 1.5 3.8 6.5 0.4 Securities issued or guaranteed by municipalities or other public entities 7.8 5.3 2.5 — — Covered bonds issued by other institutions 3.0 3.0 — — — Balances with other banks and National Debt Office, overnight 0.3 0.3 — — — Total Liquidity Reserve 23.3 10.1 6.3 6.5 0.4 (1) The liquidity reserve is a part of SEK’s liquidity investments. |
Schedule of liquidity investments by remaining maturity | December 31, 2018 December 31, 2017 M < 1 year 74 % 84 % 1 year < M < 3 years 26 % 16 % M > 3 years 0 % 0 % |
Schedule of key figures for liquidity risk | Key figures for liquidity risk December 31, 2018 December 31, 2017 LCR under Swedish FSA rules Total n.a. 505 % EUR n.a. 3,064 % USD n.a. 557 % LCR under EU Commission’s delegated act Total 266 % 169 % NFSR 144 % 140 % |
Schedule of contractual flows | December 31, 2018 Due Due Due Due 1 month < 3 3 months < 1 1 year < 5 Due > 5 Discounting Carrying Skr mn < 1 month months year years years Total cash flow effect amount Financial assets Cash and cash equivalents 2,042 — — — — 2,042 374 2,416 Treasuries/government bonds 1,444 6,613 1,717 1,357 — 11,131 -14 11,117 Other interest-bearing securities except loans 9,262 16,699 8,340 14,818 — 49,119 -454 48,665 Loans in the form of interestbearing securities -492 646 3,165 27,835 8,668 39,822 -3,041 36,781 Loans to credit institutions 124 3,096 15,458 7,843 1,996 28,517 -792 27,725 Loans to the public 3,999 9,963 27,271 87,564 48,718 177,515 -16,421 161,094 Derivatives 261 518 1,138 2,311 1,858 6,086 443 6,529 Total 16,640 37,535 57,089 141,728 61,240 314,232 -19,905 294,327 of which derivatives in hedge relationship 429 594 2,912 9,782 5,601 19,318 -1,964 17,354 December 31, 2018 Due 1 Due 3 Due 1 Due < 1 1 month < 3 3 months < 1 1 year< 5 Due > 5 Discounting Carrying Skr mn month months year years years Total cash flow effect amount Financial liabilities Borrowings from credit institutions 1 -567 -1,690 — — -2,256 9 -2,247 Debt securities issued -6,946 -33,541 -66,570 -145,134 -26,565 -278,756 23,156 -255,600 Derivatives -99 -1,064 -1,095 -4,721 -343 -7,322 -14,612 -21,934 Subordinated liabilities — — — — — — — — Total -7,044 -35,172 -69,355 -149,855 -26,908 -288,334 8,553 -279,781 of which derivatives in hedge relationship -14 -2,934 -41,276 -119,575 -11,799 -175,598 12,426 -163,172 Obligations Committed undisbursed loans -142 -2,743 -15,177 -20,279 38,340 — — — Liquidity surplus (+)/deficit (-) 9,454 -380 -27,443 -28,406 72,672 25,897 — — Accumulated liquidity surplus (+)/deficit (-) 9,454 9,074 -18,369 -46,775 25,897 25,897 — — December 31, 2017 Due Due Due Due 1 month < 3 months 1 year < 5 Due Discounting Carring Skr mn < 1 month 3 months < 1 year years > 5 years Total cash flow effect amount Financial assets Cash and cash equivalents 1,231 — — — — 1,231 — 1,231 Treasuries/government bonds 767 1,093 985 1,536 — 4,381 1 4,382 Other interest-bearing securities except loans 3,305 8,670 22,630 5,547 — 40,152 -345 39,807 Loans in the form of interestbearing securities 314 1,451 6,789 24,151 11,574 44,279 -3,154 41,125 Loans to credit institutions 210 9,973 3,479 7,417 2,907 23,986 -788 23,198 Loans to the public 4,764 7,230 24,147 76,541 43,362 156,044 -14,933 141,111 Derivatives 309 1,069 1,165 2,801 2,687 8,031 -228 7,803 Total 10,900 29,486 59,195 117,993 60,530 278,104 -19,447 258,657 December 31, 2017 Due Due Due Due 1 month < 3 months 1 year < 5 Due Discounting Carrying Skr million < 1 month 3 months < 1 year years > 5 years Total cash flow effect amount Financial liabilities Borrowings from credit institutions 40 -2,368 — — — -2,328 11 -2,317 Debt securities issued -1,832 -24,648 -48,126 -136,112 -34,095 -244,813 22,297 -222,516 Derivatives -70 -1,227 -667 -658 236 -2,386 -14,094 -16,480 Subordinated liabilities — — -2,049 — — -2,049 9 -2,040 Total -1,862 -28,243 -50,842 -136,770 -33,859 -251,576 8,223 -243,353 Obligations Committed undisbursed loans -696 -3,649 -17,753 -14,013 36,111 — — — Liquidity surplus (+)/deficit (-) 8,342 -2,406 -9,400 -32,790 62,782 26,528 — — Accumulated liquidity surplus (+)/deficit (-) 8,342 5,936 -3,464 -36,254 26,528 26,528 — — |
Transactions with related par_2
Transactions with related parties (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Transactions with related parties | |
Schedule of consolidated Group's transactions with its related parties | 2018 Companies and organizations controlled The shareholder, through a common owner, the Swedish government the Swedish government Total Interest Interest Interest income/ income/ income/ Assets/ Interest Assets/ Interest Assets/ Interest Skr mn liabilities expense liabilities expense liabilities expense Treasuries/government bonds 103 0 — — 103 0 Other interest-bearing securities except loans — — 6,847 -24 6,847 -24 Loans in the form of interestbearing securities — — 1,699 19 1,699 19 Loans to credit institutions — — 2,623 77 2,623 77 Loans to the public — — 2,582 53 2,582 53 Settlement claim against State(1) 3,915 — — — 3,915 — Total 4,018 0 13,751 125 17,769 125 Debt securities issued — — — 1 — 1 Other liabilities 18 — — — 18 — Total 18 — — 1 18 1 2017 Companies and organizations controlled through a The shareholder, common owner, the the Swedish government Swedish government Total Interest Interest Interest income/ income/ income/ Assets/ Interest Assets/ Interest Assets/ Interest Skr mn liabilities expense liabilities expense liabilities expense Treasuries/government bonds 401 4 — — 401 4 Other interest-bearing securities except loans — — 5,933 -27 5,933 -27 Loans in the form of interestbearing securities — — 2,198 18 2,198 18 Loans to credit institutions — — 2,607 52 2,607 52 Loans to the public — — 2,989 37 2,989 37 Settlement claim against State(1) 3,309 — — — 3,309 — Total 3,710 4 13,727 80 17,437 84 Other liabilities 125 — — — 125 — Total 125 — — — 125 — (1) For information about “Settlement claim against State,” see Note 16 Other assets and Note 25 CIRR system. |
Risk and capital management (Ta
Risk and capital management (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Risk and capital management | |
Schedule of division of responsibility for risk, liquidity and capital management | Division of responsibility for risk, liquidity and capital management First line of defense Business and support operations. Day-to-day management of risk, capital and liquidity in compliance with risk appetite and strategy as well as applicable laws and rules. Credit and sustainability analyses. Daily control and follow-up of credit, Second line of defense Independent risk control and compliance functions. Identification, quantification, monitoring and control of risks and risk management. Risk, liquidity and capital Maintain an efficient risk management framework and internal control framework. Compliance monitoring and reporting. Third line of defense Independent internal audit. Review and evaluation of the efficiency and integrity of risk management. Performance of audit activities in line with the audit plan confirmed by the Board. Direct reporting to the Board. |
Detailed risk statement | Risk class Risk profile Risk appetite metrics Risk management Liquidity and refinancing risk Liquidity and refinancing risk is the risk, of the Company not being able to refinance its existing assets or being unable to meet increased demands for liquid funds. Liquidity risk also includes the risk of the Company having to borrow at an unfavorable interest rate or needing to sell assets at unfavorable prices in order to meet its payment commitments. SEK has secured funding for all its credit commitments, including those agreed but not yet disbursed. In addition, the size of SEK’s liquidity investments allow new lending to continue at a normal pace, even during times of stress. As a consequence of SEK having secured funding for all its credit commitments, the remaining term to maturity for available funding is longer than the remaining term to maturity for lending. All lending transactions are to be funded on a portfolio basis using at least the same maturity. Equity capital is included here as funding with perpetual maturity. The Company is to have contingencies in a stressed scenario for new lending (including CIRR) of at least two months, without access to the credit facility. The maturity profile of the liquidity investments must reflect the anticipated net maturity of borrowing and lending. Under normal circumstances, the assets should be held until maturity. LCR assets are calculated to mature within two days. The Company is to operate with an LCR for the entire balance sheet, and in EUR and USD, of not less than 110 percent. The Company is to operate with a Net Stable Funding Ratio (NSFR) exceeding 100 percent. SEK must have diversified funding to ensure that funding is available through maturity for all credit commitments — credits outstanding as well as agreed but undisbursed credits. The size of SEK’s liquidity investments must ensure that new lending can take place even during times of financial stress. Credit risk Credit risk is the risk of loss that could occur if a borrower or a counterpart can not meet its obligations. Counterparty risk, concentration risk and settlement risk are certain subsets of credit risk. SEK’s lending portfolio is of a high credit quality. The Company’s mission naturally entails certain concentration risks, such as geographical concentration risk against Sweden. The net risk is principally limited to counterparties with high creditworthiness, such as export credit agencies (ECAs), major Swedish exporters, banks and insurers. SEK invests its liquidity in high credit quality securities, primarily with short maturities. Individual and collectively limited exposures must not exceed 20 percent of SEK’s own funds. The Company’s expected loss within one year must not exceed two percent, and the total portfolio maturity must not exceed eight percent of the Common Equity Tier 1 capital. The average risk weight for SEK’s credit-risk exposures to corporates and institutions may not exceed 55 percent. Credit-risk-related concentration risk must not exceed 30 percent of the Swedish FSA’s assessed total capital requirement for credit risk. The Company’s net exposures to counterparties in the segment <= BB- must not exceed 80 percent of SEK’s Tier 1 capital. Lending must be based on in-depth knowledge of SEK’s counterparties as well as counterparties’ repayment capacity. Lending must also be aligned with SEK’s mission based on its owner instruction. SEK’s credit risks are mitigated through a risk-based selection of counterparties and managed through the use of guarantees and other types of collateral. Furthermore, SEK’s lending is guided by the use of a normative credit policy, specifying principles for risk levels and lending terms. Concentrations that occur naturally as a result of the Company’s mission are accepted, but the Company continuously works towards reducing the risk of concentration where this is possible. Market risk Market risk is the risk of loss or reduction of future net income following changes in prices and volatilities on financial markets including price risk in connection with the sale of assets or closing of positions. SEK’s business model leads to exposure mainly to spread risks, interest-rate risk and currency risk. SEK’s largest net exposures are to changes in spread risk, mainly to credit spreads associated with assets and liabilities and to cross-currency basis spreads. SEK’s aggregated market risk measure for all the exposures at fair value must not exceed Skr 1,100 million. Value-at-Risk for exposures at fair value must not exceed Skr 100 million. VaR for the liquidity portfolio must not exceed Skr 50 million. Total interest rate sensitivity to a 100 bps parallel shift of all yield curves, comprising the entire balance sheet, must not exceed Skr 500 million. Net interest income risk, 1 year, meaning the impact on SEK’s future earnings margin resulting from a change in interest rates (100 bps parallel shift) and a change in basis spreads (20 bps parallel shift), must not exceed Skr 350 million. The Company must hedge at least 75 percent of interest-rate risk in loans outstanding in the CIRR system. SEK conducts no active trading. The core of SEK’s market risk strategy is to borrow funds in the form of bonds which, regardless of the market risk exposures in the bonds, are hedged by being swapped to a floating interest rate. Borrowed funds are used either immediately for lending, mainly at a floating rate of interest, or swapped to a floating rate, or to ensure that SEK has sufficient liquidity. The aim is to hold assets and liabilities to maturity. Operational risk Operational risk is the risk of losses resulting from inadequate or faulty internal processes, systems, human error or from external events. Operational risks arise in all parts of the business. The vast majority of incidents that have occurred are minor events that are rectified promptly within the respective functions. Overall operational risk is low as a result of effective internal control measures and a focus on continuous improvement. Measures are to be taken without delay to minimize the likelihood of possible losses in excess of Skr 150 million as estimated by the Company. In the event that adequate measures cannot be taken within two months, the CEO must inform the Finance and Risk Committee. Measures are to be taken without delay to reduce an expected loss exceeding Skr 2 million to an amount of less than Skr 2 million within six months. The risk appetite for expected losses due to operational risk is limited to Skr 20 million over a one-year period. Critical internal audit remarks must be mitigated without delay, but no later than within six months. Critical external audit remarks must be mitigated without delay, but no later than within two months. SEK manages the operational risk on an ongoing basis through mainly efficient internal control procedures, performing risk analysis before changes, focus on continuous improvements and business continuity management. Costs to reduce risk exposures must be in proportion to the effect that such measures have. Compliance risk Compliance risk is the risk of breaches of relevant legislation and ordinances (external regulations), internal regulations or industry practices that apply to the operations requiring permits. Compliance risk includes the risk of money laundering and financing of terrorism. SEK’s operations lead to exposure to the risk of failing to comply with current regulatory requirements and ordinances in markets in which the Company operates. The Company does not accept material or systematic non-compliance with legislation, ordinances and other regulations, or internal regulations. SEK works continuously to develop tools and knowledge to help identify the Company’s compliance risks. The company analyzes and monitors compliance risks with the intention of continuously reducing the risk of non-compliance with regulations pertaining to operations requiring permits. Business and strategic risk Strategic risk is the risk of lower revenue because strategic initiatives fail to achieve the pursued results, inefficient organizational changes, improper implementation of decisions, unwanted impact of outsourcing, or the lack of adequate response to changes in the business environment. Business risk is the risk of an unexpected decline in revenue resulting from, for example, changes to competitive conditions, a decrease in volumes and/or falling margins. SEK’s strategic risks mainly arise through changes in the external operating environment, such as market conditions, which could result in limited lending opportunities for SEK, and regulatory reforms from two perspectives: (1) the impact of these reforms on SEK’s business model; and (2) the requirements on the organization resulting from increased regulatory complexity. SEK’s appetite for business and strategic risk is derived from the mission which is expressed in the owner instruction and is implemented strategically and operatively in the Company’s business plan. SEK’s executive management is responsible for identifying and managing the strategic risks and monitoring the external business environment and developments in the markets in which SEK conducts operations and for proposing the strategic direction to the Board. A risk analysis in the form of a self-assessment concerning strategic risk is to be conducted each year. Sustainability risk Sustainability risk is the risk of SEK directly or indirectly, negatively affects externalities within the areas of environmental and climate considerations, anti-corruption, human rights, labor conditions or business ethics. SEK is indirectly exposed to sustainability risks in connection to its lending activities. High sustainability risks could occur in financing of large projects or of businesses in countries with high risk of corruption or human rights violations. In project-related financing, the Company must comply with the Equator Principles or the OECD’s Common Approaches for Officially Supported Export Credits and Environmental and Social Due Diligence. When lending in complex markets, the exporters or other market participants covered by the financing must have the capacity to manage sustainability risks in line with international guidelines. Lending for coal-fired power is not permitted. In exceptional cases, loans may be offered for measures aimed at improving the environment. Gross lending to fossil operations (coal, oil and gas) should be less than 5 percent of SEK’s total lending. For existing transactions that no longer align with SEK’s risk appetite, SEK will based on the opportunities available take measures to influence and to report deviations to the Board. Lending is not permitted for business transactions where the main purpose is to withhold tax. Sustainability risks are managed according to a risk-based approach. In cases of heightened sustainability risk, a detailed sustainability review is performed and measures could be required in order to mitigate environmental and social risks. Requirements are based on national and international regulations and guidelines within the areas of environment and climate, anti-corruption, human rights including labor conditions and business ethics including tax. |
Significant accounting polici_4
Significant accounting policies - Changes to accounting policies and presentation (Details) kr in Millions | Dec. 31, 2017SEK (kr) |
Significant accounting policies | |
Impact of the implementation of IFRS 9 on Group's equity | kr 14 |
Significant accounting polici_5
Significant accounting policies - Effect of IFRS 9 on classification and measurement of SEK's financial assets and liabilities (Details) kr in Millions | Dec. 31, 2017SEK (kr) |
Classification and measurement of financial instruments | |
Carrying amount under IAS 39, assets | kr 258,657 |
Reclassification, assets | 44,189 |
ECL, assets | 21 |
Carrying amount under IFRS 9, assets | 258,678 |
Carrying amount under IAS 39, liabilities | 243,398 |
ECL, liabilities | 3 |
Carrying amount under IFRS 9, liabilities | 243,401 |
Borrowings from credit institutions | Financial liabilities at amortized cost / Other financial liabilities | |
Classification and measurement of financial instruments | |
Carrying amount under IAS 39, liabilities | 2,317 |
Carrying amount under IFRS 9, liabilities | 2,317 |
Borrowing from the public | Financial liabilities at amortized cost / Other financial liabilities | |
Classification and measurement of financial instruments | |
Carrying amount under IAS 39, liabilities | 0 |
Carrying amount under IFRS 9, liabilities | 0 |
Debt securities issued | Financial liabilities at amortized cost / Other financial liabilities | |
Classification and measurement of financial instruments | |
Carrying amount under IAS 39, liabilities | 159,095 |
Carrying amount under IFRS 9, liabilities | 159,095 |
Debt securities issued | Financial liabilities at fair value through profit or loss (FVO) | |
Classification and measurement of financial instruments | |
Carrying amount under IAS 39, liabilities | 63,421 |
Debt securities issued | Financial liabilities at fair value through profit or loss | |
Classification and measurement of financial instruments | |
Carrying amount under IFRS 9, liabilities | 63,421 |
Derivatives | Financial liabilities at fair value through profit or loss. | |
Classification and measurement of financial instruments | |
Carrying amount under IAS 39, liabilities | 16,480 |
Derivatives | Financial liabilities at fair value through profit or loss | |
Classification and measurement of financial instruments | |
Carrying amount under IFRS 9, liabilities | 16,480 |
Subordinated securities issued | Financial liabilities at amortized cost / Other financial liabilities | |
Classification and measurement of financial instruments | |
Carrying amount under IAS 39, liabilities | 2,040 |
Carrying amount under IFRS 9, liabilities | 2,040 |
Provisions | |
Classification and measurement of financial instruments | |
Carrying amount under IAS 39, liabilities | 45 |
ECL, liabilities | 3 |
Carrying amount under IFRS 9, liabilities | 48 |
Cash and cash equivalents | |
Classification and measurement of financial instruments | |
ECL, assets | 0 |
Cash and cash equivalents | Loans and receivable | |
Classification and measurement of financial instruments | |
Carrying amount under IAS 39, assets | 1,231 |
Cash and cash equivalents | Financial assets at amortized cost | |
Classification and measurement of financial instruments | |
Carrying amount under IFRS 9, assets | 1,231 |
Treasuries/government bonds | |
Classification and measurement of financial instruments | |
Reclassification, assets | 4,382 |
Treasuries/government bonds | Available-for-sale assets | |
Classification and measurement of financial instruments | |
Carrying amount under IAS 39, assets | 4,382 |
Treasuries/government bonds | Financial assets at fair value through profit or loss | |
Classification and measurement of financial instruments | |
Carrying amount under IFRS 9, assets | 4,382 |
Other interest-bearing securities except loans | Available-for-sale assets | |
Classification and measurement of financial instruments | |
Carrying amount under IAS 39, assets | 39,694 |
Reclassification, assets | 39,694 |
Other interest-bearing securities except loans | Assets at fair value through profit or loss (FVO) | |
Classification and measurement of financial instruments | |
Carrying amount under IAS 39, assets | 113 |
Reclassification, assets | 113 |
Other interest-bearing securities except loans | Financial assets at fair value through profit or loss | |
Classification and measurement of financial instruments | |
Carrying amount under IFRS 9, assets | 39,694 |
Other interest-bearing securities except loans | Financial assets at fair value through profit or loss. | |
Classification and measurement of financial instruments | |
Carrying amount under IFRS 9, assets | 113 |
Loans in the form of interest-bearing securities | |
Classification and measurement of financial instruments | |
ECL, assets | (17) |
Loans in the form of interest-bearing securities | Loans and receivable | |
Classification and measurement of financial instruments | |
Carrying amount under IAS 39, assets | 41,125 |
Loans in the form of interest-bearing securities | Financial assets at amortized cost | |
Classification and measurement of financial instruments | |
Carrying amount under IFRS 9, assets | 41,108 |
Loans to credit institutions | |
Classification and measurement of financial instruments | |
ECL, assets | (2) |
Loans to credit institutions | Loans and receivable | |
Classification and measurement of financial instruments | |
Carrying amount under IAS 39, assets | 23,198 |
Loans to credit institutions | Financial assets at amortized cost | |
Classification and measurement of financial instruments | |
Carrying amount under IFRS 9, assets | 23,196 |
Loans to the public | |
Classification and measurement of financial instruments | |
ECL, assets | 40 |
Loans to the public | Loans and receivable | |
Classification and measurement of financial instruments | |
Carrying amount under IAS 39, assets | 141,111 |
Loans to the public | Financial assets at amortized cost | |
Classification and measurement of financial instruments | |
Carrying amount under IFRS 9, assets | 141,151 |
Derivatives | Assets at fair value through profit or loss | |
Classification and measurement of financial instruments | |
Carrying amount under IAS 39, assets | 7,803 |
Derivatives | Financial assets at fair value through profit or loss | |
Classification and measurement of financial instruments | |
Carrying amount under IFRS 9, assets | kr 7,803 |
Significant accounting polici_6
Significant accounting policies - Effect of IFRS 9 on reserves and retained earnings (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1],[2] | Dec. 31, 2015 | |||
Disclosure of initial application of standards or interpretations | ||||||||
Equity | kr 18,239 | [1],[2] | kr 17,574 | [1],[2] | kr 17,136 | kr 16,828 | ||
Impact of the implementation of IFRS 9 on Group's equity | 14 | |||||||
Own Credit risk | ||||||||
Disclosure of initial application of standards or interpretations | ||||||||
Equity | [1],[2] | (117) | ||||||
Impact of the implementation of IFRS 9 on Group's equity | (409) | |||||||
Own Credit risk | Increase (decrease) due to transfer of value changes in credit risk | ||||||||
Disclosure of initial application of standards or interpretations | ||||||||
Equity | (524) | |||||||
Own Credit risk | Increase (decrease) due to tax impact | ||||||||
Disclosure of initial application of standards or interpretations | ||||||||
Equity | 115 | |||||||
Own Credit risk | Opening balance under IFRS 9 | ||||||||
Disclosure of initial application of standards or interpretations | ||||||||
Equity | (409) | |||||||
Fair value reserve | ||||||||
Disclosure of initial application of standards or interpretations | ||||||||
Equity | 9 | [1],[2] | 35 | (1) | ||||
Impact of the implementation of IFRS 9 on Group's equity | (9) | |||||||
Fair value reserve | Increase (decrease) due to reclassification of instruments from AFS to FVTPL | ||||||||
Disclosure of initial application of standards or interpretations | ||||||||
Equity | (12) | |||||||
Fair value reserve | Increase (decrease) due to tax impact | ||||||||
Disclosure of initial application of standards or interpretations | ||||||||
Equity | 3 | |||||||
Retained earnings | ||||||||
Disclosure of initial application of standards or interpretations | ||||||||
Equity | kr 14,402 | [1],[2] | 13,554 | [1],[2] | kr 13,016 | kr 12,592 | ||
Impact of the implementation of IFRS 9 on Group's equity | 432 | |||||||
Retained earnings | Increase (decrease) due to transfer of value changes in credit risk | ||||||||
Disclosure of initial application of standards or interpretations | ||||||||
Equity | 409 | |||||||
Retained earnings | Increase (decrease) due to reclassification of instruments from AFS to FVTPL | ||||||||
Disclosure of initial application of standards or interpretations | ||||||||
Equity | 9 | |||||||
Retained earnings | Increase (decrease) due to effect of IFRS 9 - ECL | ||||||||
Disclosure of initial application of standards or interpretations | ||||||||
Equity | 18 | |||||||
Retained earnings | Increase (decrease) due to tax impact | ||||||||
Disclosure of initial application of standards or interpretations | ||||||||
Equity | (4) | |||||||
Retained earnings | Opening balance under IFRS 9 | ||||||||
Disclosure of initial application of standards or interpretations | ||||||||
Equity | kr 13,986 | |||||||
[1] | See Note 23. | |||||||
[2] | The entire equity is attributable to the shareholder of the Parent Company. |
Significant accounting polici_7
Significant accounting policies - Reconciliation of the closing balance for accumulated impairments under IAS 39 and the opening balance for accumulated impairments under IFRS 9 (Details) - Accumulated impairment - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of initial application of standards or interpretations | |||
Accumulated impairment | kr 139 | kr 155 | kr 254 |
Financial assets | |||
Disclosure of initial application of standards or interpretations | |||
Accumulated impairment | 155 | ||
Financial assets | Loans and receivable | |||
Disclosure of initial application of standards or interpretations | |||
Accumulated impairment | 155 | ||
Increase (decrease) due to revaluation | |||
Disclosure of initial application of standards or interpretations | |||
Accumulated impairment | (18) | ||
Increase (decrease) due to revaluation | Financial assets | |||
Disclosure of initial application of standards or interpretations | |||
Accumulated impairment | (21) | ||
Increase (decrease) due to revaluation | Financial assets | Financial assets at amortized cost | |||
Disclosure of initial application of standards or interpretations | |||
Accumulated impairment | (21) | ||
Increase (decrease) due to revaluation | Contingent liabilities and commitments | |||
Disclosure of initial application of standards or interpretations | |||
Accumulated impairment | 3 | ||
Opening balance under IFRS 9 | |||
Disclosure of initial application of standards or interpretations | |||
Accumulated impairment | 137 | ||
Opening balance under IFRS 9 | Financial assets | |||
Disclosure of initial application of standards or interpretations | |||
Accumulated impairment | 134 | ||
Opening balance under IFRS 9 | Financial assets | Financial assets at amortized cost | |||
Disclosure of initial application of standards or interpretations | |||
Accumulated impairment | 134 | ||
Opening balance under IFRS 9 | Contingent liabilities and commitments | |||
Disclosure of initial application of standards or interpretations | |||
Accumulated impairment | kr 3 |
Significant accounting polici_8
Significant accounting policies - Segment reporting (Details) | 12 Months Ended |
Dec. 31, 2018segment | |
Significant accounting policies | |
Number of reportable segments | 1 |
Significant accounting polici_9
Significant accounting policies - Financial instruments (Details) | 12 Months Ended |
Dec. 31, 2018item | |
Significant accounting policies | |
Minimum difference between original and new remaining cash flows for terms to be deemed substantially different | 10.00% |
Number of scenarios prepared for each PD curve | 3 |
Number of credit conversion factors | 2 |
Significant accounting polic_10
Significant accounting policies - Taxes (Details) | Jan. 01, 2021 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2020 |
Significant accounting policies | |||||
Expected tax rate for calculation of deferred tax | 20.60% | 22.00% | 22.00% | 22.00% | 21.40% |
Significant accounting polic_11
Significant accounting policies - Fair value measurement (Details) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of fair value measurement of assets | ||
Financial assets at fair value | kr 298,836 | kr 263,961 |
Financial liabilities at fair value | 280,800 | 244,309 |
Level 3 | Maximum | ||
Disclosure of fair value measurement of assets | ||
Effect of changing the non-observable parameters | 242 | 214 |
Level 3 | Minimum | ||
Disclosure of fair value measurement of assets | ||
Effect of changing the non-observable parameters | (243) | (211) |
Fair value | Level 2 | ||
Disclosure of fair value measurement of assets | ||
Financial assets at fair value | 64,000 | 46,000 |
Financial liabilities at fair value | kr 32,000 | kr 34,000 |
Percentage of total financial assets | 22.00% | 18.00% |
Percentage of total financial liabilities | 12.00% | 14.00% |
Fair value | Level 3 | ||
Disclosure of fair value measurement of assets | ||
Financial assets at fair value | kr 2,000 | kr 2,000 |
Financial liabilities at fair value | kr 54,000 | kr 46,000 |
Percentage of total financial assets | 1.00% | 1.00% |
Percentage of total financial liabilities | 19.00% | 19.00% |
Significant accounting polic_12
Significant accounting policies - Provisions for probable credit losses (Details) kr in Millions | 12 Months Ended | |
Dec. 31, 2018SEK (kr)item | Dec. 31, 2017SEK (kr) | |
Sensitivity analysis | ||
Decrease in number of steps of deterioration for sensitivity analysis | item | 1 | |
Increase (decrease) in impairment of financial instruments if significant increase in credit risk had been one step of deterioration less | kr 29 | |
Increase in number of steps of deterioration for sensitivity analysis | item | 1 | |
Increase (decrease) in impairment of financial instruments if significant increase in credit risk had been one step of deterioration more | kr (1) | |
Number of scenarios prepared for each PD curve | item | 3 | |
Weight of downturn scenario for sensitivity analysis | 100.00% | |
Increase (decrease) in impairment of financial instruments if downturn scenario weighted 100 percent | kr 10 | |
Weight of upturn scenario for sensitivity analysis | 100.00% | |
Increase (decrease) in impairment of financial instruments if upturn scenario weighted 100 percent | kr (10) | |
Total loans | kr 209,226 | kr 195,120 |
Increase in future cash flows for sensitivity analysis | 10.00% | 10.00% |
Increase (decrease) in operating profit due to increase in future cash flows | kr 14 | kr 15 |
Increase (decrease) in equity due to increase in future cash flows | kr 11 | kr 12 |
Decrease in future cash flows for sensitivity analysis | 10.00% | 10.00% |
Increase (decrease) in operating profit due to decrease in future cash flows | kr (14) | kr (15) |
Increase (decrease) in equity due to decrease in future cash flows | (11) | (12) |
Gross carrying amount | ||
Sensitivity analysis | ||
Total loans | 209,000 | 195,000 |
Accumulated impairment | ||
Sensitivity analysis | ||
Total loans | kr (137) | (155) |
Accumulated impairment | Individual reserve | ||
Sensitivity analysis | ||
Total loans | kr (65) |
Net interest income (Details)
Net interest income (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Interest income were related to: | |||
Interest income | kr 5,153 | kr 3,896 | kr 3,188 |
Interest expenses | |||
Interest expenses excl. resolution fee | (3,445) | (2,020) | (1,339) |
Resolution fee | (266) | (193) | (102) |
Total interest expenses | (3,711) | (2,213) | (1,441) |
Net interest income | 1,442 | 1,683 | 1,747 |
Financial liabilities at fair value through profit or loss | |||
Interest expenses | |||
Total interest expenses | 704 | 278 | 12 |
Derivative used for hedge accounting, liabilities | |||
Interest expenses | |||
Total interest expenses | 106 | 1,479 | 2,452 |
Financial liabilities at amortized cost / Other financial liabilities | |||
Interest expenses | |||
Total interest expenses | (4,390) | (3,840) | (3,798) |
Available-for-sale assets | |||
Interest income were related to: | |||
Interest income | 426 | 292 | |
Interest expenses | |||
Total interest expenses | (93) | (46) | |
Financial assets at fair value through profit or loss | |||
Interest income were related to: | |||
Interest income | 574 | 253 | 93 |
Interest expenses | |||
Total interest expenses | (104) | ||
Derivatives used for hedge accounting, assets | |||
Interest income were related to: | |||
Interest income | (261) | (253) | (379) |
Financial assets at amortized cost | |||
Interest income were related to: | |||
Interest income | 4,840 | 3,470 | 3,182 |
Interest expenses | |||
Total interest expenses | (27) | (37) | (61) |
Loans to credit institutions | |||
Interest income were related to: | |||
Interest income | 1,475 | 789 | 546 |
Loans to the public | |||
Interest income were related to: | |||
Interest income | 2,534 | 2,265 | 1,992 |
Loans in the form of interest-bearing securities | |||
Interest income were related to: | |||
Interest income | 672 | 629 | 722 |
Interest-bearing securities excluding loans in the form of interest-bearing securities | |||
Interest income were related to: | |||
Interest income | 523 | 458 | 364 |
Derivatives | |||
Interest income were related to: | |||
Interest income | (210) | (372) | (552) |
Administrative remuneration CIRR-system | |||
Interest income were related to: | |||
Interest income | 157 | 125 | 116 |
Administrative remuneration for concessionary loans | 2 | 2 | 2 |
Other assets | |||
Interest income were related to: | |||
Interest income | kr 2 | kr 2 | kr 0 |
Net interest income - Geographi
Net interest income - Geographical areas and product group (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net interest income | |||
Interest income | kr 5,153 | kr 3,896 | kr 3,188 |
Lending to Swedish exporters | |||
Net interest income | |||
Interest income | 1,709 | 1,398 | 1,500 |
Lending to exporters' customers | |||
Net interest income | |||
Interest income | 1,452 | 1,251 | 1,042 |
Remuneration from the CIRR-system | 155 | 123 | 114 |
Liquidity | |||
Net interest income | |||
Interest income | 1,992 | 1,247 | 646 |
Sweden | |||
Net interest income | |||
Interest income | 2,458 | 1,724 | 1,358 |
European countries excl. Sweden | |||
Net interest income | |||
Interest income | 932 | 723 | 681 |
Countries outside of Europe | |||
Net interest income | |||
Interest income | kr 1,763 | kr 1,449 | kr 1,149 |
Net fee and commissions expen_3
Net fee and commissions expense (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fee and commissions earned were related to: | |||
Lending | kr 5 | kr 3 | kr 3 |
Total fee and commissions earned | 5 | 3 | 3 |
Commissions incurred were related to: | |||
Depot and bank fees | (7) | (6) | (7) |
Brokerage | (4) | (4) | (4) |
Other commissions incurred | (26) | (21) | (21) |
Total fee and commission expenses | (37) | (31) | (32) |
Net fee and commissions income (expense) | (32) | (28) | (29) |
Commissions income (expense) on financial assets and liabilities not measured at fair value through profit or loss | kr (28) | kr (24) | kr (26) |
Net results of financial tran_3
Net results of financial transactions (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net results of financial transactions | |||
Currency exchange-rate effects on all assets and liabilities excl. currency exchange-rate effects related to revaluation at fair value | kr (3) | kr 0 | kr (2) |
Total net results of financial transactions | 19 | (102) | (110) |
Hedging instrument | |||
Net results of financial transactions | |||
Financial instruments under fair-value hedge accounting | (192) | (999) | (693) |
Hedged item | |||
Net results of financial transactions | |||
Financial instruments under fair-value hedge accounting | 235 | 946 | 661 |
Designated upon initial recognition (FVO) | |||
Net results of financial transactions | |||
Financial assets or liabilities at fair value through profit or loss | 7,315 | (326) | (2,779) |
Mandatorily measured at fair value | |||
Net results of financial transactions | |||
Financial assets or liabilities at fair value through profit or loss | (7,360) | 278 | 2,699 |
Available-for-sale assets | |||
Net results of financial transactions | |||
Derecognition of financial instruments not measured at fair value through profit or loss | (17) | ||
Financial assets at amortized cost | |||
Net results of financial transactions | |||
Derecognition of financial instruments not measured at fair value through profit or loss | kr 24 | kr 16 | kr 4 |
Personnel expenses - (Details)
Personnel expenses - (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Personnel expenses | |||
Pensions | kr (52) | kr (58) | kr (57) |
Social insurance | (59) | (61) | (58) |
Other personnel expenses | (14) | (12) | (9) |
Total personnel expenses | (311) | (320) | (308) |
Board of Directors and the CEO | |||
Personnel expenses | |||
Salaries and remuneration | (7) | (7) | (6) |
Senior Executives | |||
Personnel expenses | |||
Salaries and remuneration | (21) | (20) | (18) |
Pensionable remuneration | 21 | 20 | 17 |
Other employees | |||
Personnel expenses | |||
Salaries and remuneration | (158) | (162) | (160) |
Chief Executive Officer (Catrin Fransson) | |||
Personnel expenses | |||
Pensionable remuneration | kr 5 | kr 5 | kr 4 |
Personnel expenses - Remunerati
Personnel expenses - Remuneration and other benefits (Details) kr in Thousands | 12 Months Ended | 72 Months Ended | ||
Dec. 31, 2018SEK (kr)Yemployeeitem | Dec. 31, 2017SEK (kr) | Dec. 31, 2016SEK (kr) | Dec. 31, 2016employeeitem | |
Personnel expenses | ||||
Fee, includes committee fee | kr (1,961) | kr (2,168) | kr (1,889) | |
Fixed remuneration | (25,184) | (24,319) | (21,995) | |
Other benefits | (615) | (637) | (443) | |
Pension fee | (7,699) | (7,075) | (6,267) | |
Total | kr (35,459) | (34,199) | (30,594) | |
Number of systems for variable remuneration | item | 1 | |||
Senior executives included in EIS | employee | 3 | |||
Number of months salary considered for employee incentive scheme | 2 | |||
Variable remuneration maximum percentage on fixed remuneration | 16.67% | |||
Trial period for employee incentive scheme | 3 years | |||
Number of levels of testing individual variable remuneration | item | 3 | |||
Number of months salary maximum at Company level | 2 | |||
Number of months salary maximum based on department's quantitative targets | 2 | |||
Individual variable remuneration test outcome lower limit (in relation to department level amount) | 0 | |||
Individual variable remuneration test outcome upper limit (in relation to department level amount) | 1.5 | |||
Number of months salary maximum outcome for individual variable remuneration | 3 | |||
Disbursement percentage under employee incentive scheme year one | 40.00% | |||
Disbursement percentage under employee incentive scheme subsequent years | 20.00% | |||
Disbursement under employee incentive scheme number of subsequent years | Y | 3 | |||
Number of employees that receive remuneration greater than one million Euro per fiscal year | employee | 0 | |||
Lars Linder Aronson | ||||
Personnel expenses | ||||
Fee, includes committee fee | kr (612) | (745) | (669) | |
Total | (612) | (745) | (669) | |
Cecilia Ardstrom | ||||
Personnel expenses | ||||
Fee, includes committee fee | (287) | (344) | (216) | |
Total | (287) | (344) | (216) | |
Jan Belfrage, resigned March 22, 2017 | ||||
Personnel expenses | ||||
Fee, includes committee fee | (72) | (225) | ||
Total | (72) | (225) | ||
Reinhold Geijer, from March 22, 2017 | ||||
Personnel expenses | ||||
Fee, includes committee fee | (269) | (213) | ||
Total | (269) | (213) | ||
Hans Larsson, from March 22, 2017 | ||||
Personnel expenses | ||||
Fee, includes committee fee | (250) | (212) | ||
Total | (250) | (212) | ||
Eva Nilsagrd, from April 24, 2018 | ||||
Personnel expenses | ||||
Fee, includes committee fee | (182) | |||
Total | (182) | |||
Susanne Lithander, resigned April 24, 2018 | ||||
Personnel expenses | ||||
Fee, includes committee fee | (74) | (263) | (240) | |
Total | (74) | (263) | (240) | |
Ulla Nilsson | ||||
Personnel expenses | ||||
Fee, includes committee fee | (287) | (273) | (244) | |
Total | (287) | (273) | (244) | |
Jan Roxendal, resigned April 26, 2016 | ||||
Personnel expenses | ||||
Fee, includes committee fee | (109) | |||
Total | (109) | |||
Magnus Uggla, from April 26, 2016, resigned March 22, 2017 | ||||
Personnel expenses | ||||
Fee, includes committee fee | (46) | (186) | ||
Total | (46) | (186) | ||
Chief Executive Officer (Catrin Fransson) | ||||
Personnel expenses | ||||
Fixed remuneration | (4,743) | (4,638) | (4,487) | |
Other benefits | (88) | (97) | (86) | |
Pension fee | (1,418) | (1,372) | (1,332) | |
Total | kr (6,249) | kr (6,107) | kr (5,905) | |
Retirement age | 65 years | 65 years | 65 years | |
Pension fee on fixed salary (in percent) | 30.00% | 30.00% | 30.00% | |
Notice period | 6 months | |||
Severance pay period limit | 18 months | |||
Per Akerlind, Head of Treasury and Capital Management and Executive Vice President | ||||
Personnel expenses | ||||
Fixed remuneration | kr (3,339) | kr (3,278) | kr (3,207) | |
Other benefits | (85) | (92) | (86) | |
Pension fee | (1,307) | (1,159) | (1,112) | |
Total | kr (4,731) | (4,529) | (4,405) | |
Notice period | 6 months | |||
Severance pay period limit | 18 months | |||
Karl Johan Bernerfalk, General Counsel | ||||
Personnel expenses | ||||
Fixed remuneration | kr (1,414) | (1,372) | (1,281) | |
Other benefits | (33) | (18) | (11) | |
Pension fee | (505) | (447) | (405) | |
Total | (1,952) | (1,837) | (1,697) | |
Andreas Ericson, Head of Mid Corporates, from October 15, 2018 | ||||
Personnel expenses | ||||
Fixed remuneration | (410) | |||
Other benefits | (6) | |||
Pension fee | (146) | |||
Total | (562) | |||
Stefan Friberg, Chief Risk Officer (CRO) | ||||
Personnel expenses | ||||
Fixed remuneration | (2,930) | (2,908) | (2,769) | |
Other benefits | (25) | (19) | (12) | |
Pension fee | (483) | (465) | (467) | |
Total | (3,438) | (3,392) | (3,248) | |
Teresa Hamilton Burman, Chief Credit Officer (CCO) | ||||
Personnel expenses | ||||
Fixed remuneration | (2,326) | (2,252) | (2,253) | |
Other benefits | (16) | (11) | (12) | |
Pension fee | (493) | (485) | (460) | |
Total | (2,835) | (2,748) | (2,725) | |
Jens Hedar, Head of Large Corporates, from October 15, 2018 | ||||
Personnel expenses | ||||
Fixed remuneration | (461) | |||
Other benefits | (5) | |||
Pension fee | (157) | |||
Total | (623) | |||
Johan Henningsson, Head of Sustainability | ||||
Personnel expenses | ||||
Fixed remuneration | (1,261) | (1,191) | (1,124) | |
Other benefits | (27) | (30) | (12) | |
Pension fee | (466) | (435) | (379) | |
Total | (1,754) | (1,656) | (1,515) | |
Petra Konberg, Head Of Marketing and Business Development, from April 18, 2017 | ||||
Personnel expenses | ||||
Fixed remuneration | (1,143) | (830) | ||
Other benefits | (28) | (20) | ||
Pension fee | (384) | (220) | ||
Total | (1,555) | (1,070) | ||
Jane Lundgren Ericsson, Head of Lending, resigned October 12, 2018 | ||||
Personnel expenses | ||||
Fixed remuneration | (1,943) | (2,410) | (2,355) | |
Other benefits | (75) | (98) | (81) | |
Pension fee | (610) | (720) | (616) | |
Total | (2,628) | (3,228) | (3,052) | |
Ingela Nachweij, Acting Chief Information Officer (CIO), from January 10, 2017, resigned January 31, 2018 | ||||
Personnel expenses | ||||
Fixed remuneration | (128) | (1,520) | ||
Other benefits | (2) | (27) | ||
Pension fee | (36) | (414) | ||
Total | (166) | (1,961) | ||
Sirpa Rusanen, Chief Human Resources Officer (CHRO) | ||||
Personnel expenses | ||||
Fixed remuneration | (1,471) | (1,415) | (1,360) | |
Other benefits | (106) | (105) | (91) | |
Pension fee | (556) | (536) | (487) | |
Total | (2,133) | (2,056) | (1,938) | |
Susanna Rystedt, Chief Administrative Officer (CAO) | ||||
Personnel expenses | ||||
Fixed remuneration | (2,255) | (2,191) | (2,164) | |
Other benefits | (108) | (112) | (41) | |
Pension fee | (733) | (720) | (676) | |
Total | (3,096) | (3,023) | (2,881) | |
Edvard Unsgaard, Head of Communication, resigned April 18, 2017 | ||||
Personnel expenses | ||||
Fixed remuneration | (314) | (995) | ||
Other benefits | (8) | (11) | ||
Pension fee | (102) | (333) | ||
Total | kr (424) | kr (1,339) | ||
Madeleine Widaeus, IT-chief, from February 1, 2018 | ||||
Personnel expenses | ||||
Fixed remuneration | (1,360) | |||
Other benefits | (11) | |||
Pension fee | (405) | |||
Total | kr (1,776) | |||
Senior Executives | ||||
Personnel expenses | ||||
Retirement age | 65 years | |||
Pension fee on fixed salary (in percent) | 30.00% | |||
Senior Executives | Maximum | ||||
Personnel expenses | ||||
Notice period | 6 months | |||
Senior Executives | Minimum | ||||
Personnel expenses | ||||
Notice period | 3 months | |||
Sven-Olof Sderlund | ||||
Personnel expenses | ||||
Notice period | 6 months | |||
Severance pay period limit | 18 months |
Personnel expenses - Pension (D
Personnel expenses - Pension (Details) - SEK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of net defined benefit liability (asset) | ||||
Service cost | kr (4) | kr (5) | kr (4) | |
Regulation of pension obligations | 5 | |||
Interest cost | (1) | (1) | 0 | |
Pension cost for defined benefit pensions, incl. payroll tax | 0 | (6) | (4) | |
Pension cost for defined contribution pension cost incl. payroll tax | (52) | (52) | (53) | |
Pension cost recognized in personnel costs | (52) | (58) | (57) | |
Revaluation of defined benefit plans | (48) | (4) | (26) | |
Provision for pensions | 80 | 40 | 38 | kr 17 |
Present value of defined benefit obligation | ||||
Disclosure of net defined benefit liability (asset) | ||||
Revaluation of defined benefit plans | (48) | (7) | (35) | |
Provision for pensions | 253 | 263 | 254 | 215 |
Plan assets | ||||
Disclosure of net defined benefit liability (asset) | ||||
Revaluation of defined benefit plans | 0 | 3 | 5 | |
Provision for pensions | (173) | (223) | (216) | kr (202) |
Effect of asset ceiling | ||||
Disclosure of net defined benefit liability (asset) | ||||
Revaluation of defined benefit plans | 4 | |||
Provision for pensions | kr 0 | kr 0 | kr 0 |
Personnel expenses - Defined be
Personnel expenses - Defined benefit pension (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of net defined benefit liability (asset) | |||
Balance at beginning of the period | kr 40 | kr 38 | kr 17 |
Pension Payments incl. special payroll tax / Benefits paid | (1) | (1) | (1) |
Contributions by the employer | (7) | (7) | (8) |
Balance at end of the period | 80 | 40 | 38 |
Present value of defined benefit obligation | |||
Disclosure of net defined benefit liability (asset) | |||
Balance at beginning of the period | 263 | 254 | 215 |
Service cost | 4 | 5 | 4 |
Interest cost / Expected return on plan assets | 6 | 7 | 8 |
Pension Payments incl. special payroll tax / Benefits paid | (9) | (10) | (9) |
Other | (59) | ||
Actuarial (gains) and losses, effect due to changed financial assumptions | 46 | 9 | 38 |
Actuarial (gains) and losses, effect due to experience based outcome | 2 | (2) | (2) |
Balance at end of the period | 253 | 263 | 254 |
Plan assets | |||
Disclosure of net defined benefit liability (asset) | |||
Balance at beginning of the period | (223) | (216) | (202) |
Interest cost / Expected return on plan assets | (5) | (6) | (7) |
Pension Payments incl. special payroll tax / Benefits paid | 8 | 8 | 7 |
Other | 54 | ||
Contributions by the employer | (7) | (7) | (8) |
Return on plan assets excluding interest income | 0 | (2) | (6) |
Balance at end of the period | (173) | (223) | (216) |
Expected contribution from the employer | 6 | 7 | 8 |
Expected compensation paid | kr 8 | kr 9 | kr 9 |
Personnel expenses - Plan asset
Personnel expenses - Plan assets (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of net defined benefit liability (asset) | |||
Other Investments | kr 19 | ||
Properties | 21 | kr 24 | kr 18 |
Plan assets | 173 | 223 | 216 |
Mortgage bonds | |||
Disclosure of net defined benefit liability (asset) | |||
Debt instruments | 49 | 76 | 52 |
Sweden | |||
Disclosure of net defined benefit liability (asset) | |||
Equity investments | 3 | 4 | 4 |
Sweden | Government bonds | |||
Disclosure of net defined benefit liability (asset) | |||
Debt instruments | 43 | 63 | 69 |
Sweden | Loans to the public | |||
Disclosure of net defined benefit liability (asset) | |||
Debt instruments | 26 | 40 | 69 |
Foreign countries | |||
Disclosure of net defined benefit liability (asset) | |||
Equity investments | kr 12 | kr 16 | kr 4 |
Personnel expenses - Actuarial
Personnel expenses - Actuarial assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Personnel expense | |||
Discount rate | 2.10% | 2.50% | 2.70% |
Assumption of early pension withdrawal | 20.00% | 20.00% | 20.00% |
Expected salary increase | 2.00% | 2.00% | 2.00% |
Expected inflation | 2.00% | 1.60% | 1.60% |
Expected lifetime | DUS14 | DUS14 | DUS14 |
Expected turnover | 5.00% | 5.00% | 5.00% |
Personnel expenses - Sensitivit
Personnel expenses - Sensitivity analysis of essential assumptions (Details) kr in Millions | 12 Months Ended |
Dec. 31, 2018SEK (kr) | |
Discount rate | |
Disclosure of sensitivity analysis for actuarial assumptions | |
Increase in actuarial assumption (as a percent) | 1.00% |
Actuarial assumption after reasonable increase (as a percent) | 3.10% |
Decrease in actuarial assumption (as a percent) | 1.00% |
Actuarial assumption after reasonable decrease (as a percent) | 1.10% |
Defined benefit obligation after reasonable increase in actuarial assumption | kr 202 |
Defined benefit obligation after reasonable decrease in actuarial assumption | 324 |
Service cost after reasonable increase in actuarial assumption | 4 |
Service cost after reasonable decrease in actuarial assumption | 8 |
Interest cost on defined benefit obligation after reasonable increase in actuarial assumption | 6 |
Interest cost on defined benefit obligation after reasonable decrease in actuarial assumption | kr 4 |
Expected lifetime | |
Disclosure of sensitivity analysis for actuarial assumptions | |
Increase in actuarial assumption (in years) | 1 year |
Decrease in actuarial assumption (in years) | 1 year |
Defined benefit obligation after reasonable increase in actuarial assumption | kr 266 |
Defined benefit obligation after reasonable decrease in actuarial assumption | 242 |
Service cost after reasonable increase in actuarial assumption | 6 |
Service cost after reasonable decrease in actuarial assumption | 5 |
Interest cost on defined benefit obligation after reasonable increase in actuarial assumption | 6 |
Interest cost on defined benefit obligation after reasonable decrease in actuarial assumption | kr 5 |
Personnel expenses - Reconcilia
Personnel expenses - Reconciliation of pension liabilities (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Personnel expense | |||
Balance at beginning of the period | kr 40 | kr 38 | kr 17 |
Net periodic pension cost | 0 | 6 | 4 |
Contributions by the employer | (7) | (7) | (8) |
Net pension payments | (1) | (1) | (1) |
Revaluations recognized in other comprehensive income | 48 | 4 | 26 |
Balance at end of the period | kr 80 | kr 40 | kr 38 |
Personnel expenses - Pensions (
Personnel expenses - Pensions (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Personnel expense | |||
Pension expense | kr 0 | kr 6 | kr 4 |
Expected weighted average remaining service time for active employees | 16 years 7 months 28 days | 17 years 6 months 29 days | 19 years 26 days |
Expected weighted average duration for the present value | 19 years 4 months 13 days | 17 years 4 months 17 days | 20 years 8 months 12 days |
Average salary for active employees | kr 0.8 | kr 0.8 | kr 0.8 |
Percentage of employees early retirement | 20.00% | ||
Retirement age for employees born on or before 1956 | 61 years | ||
Retirement age for employees born on or after 1967 | 65 years |
Personnel expenses - Average nu
Personnel expenses - Average number of employees (Details) - employee | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Personnel expense | |||
Average number employees, women | 117 | 121 | 122 |
Average number employees, men | 126 | 131 | 138 |
Total average number of employees | 243 | 252 | 260 |
Personnel expenses - Number of
Personnel expenses - Number of employees at year-end (Details) | 12 Months Ended | ||
Dec. 31, 2018employeeitem | Dec. 31, 2017employee | Dec. 31, 2016employee | |
Personnel expense | |||
Number of women employees | 118 | 122 | 122 |
Number of men employees | 120 | 128 | 134 |
Number of employees | 238 | 250 | 256 |
Number of full time employees | 230 | 243 | 250 |
Percentage of allocation of women in full-time employees | 49.00% | 48.00% | 47.00% |
Percentage of allocation of men in full-time employees | 51.00% | 52.00% | 53.00% |
Number of part time employees | 8 | 7 | 6 |
Percentage of allocation of women in part-time employees | 75.00% | 86.00% | 83.00% |
Percentage of allocation of men in part-time employees | 25.00% | 14.00% | 17.00% |
Number of permanent employees | 236 | 246 | 251 |
Percentage of allocation of women in permanent employees | 50.00% | 49.00% | 48.00% |
Percentage of allocation of men in permanent employees | 50.00% | 51.00% | 52.00% |
Number of temporary employees | 2 | 4 | 5 |
Percentage of allocation of women in temporary employees | 50.00% | 50.00% | 20.00% |
Percentage of allocation of men in temporary employees | 50.00% | 50.00% | 80.00% |
Number of managers | 29 | 31 | 33 |
Number of non-management employees | 209 | 219 | 223 |
Number of consultants | item | 32 |
Personnel expenses - Employees
Personnel expenses - Employees by age distribution (Details) - employee | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Personnel expense | |||
Number of employees | 238 | 250 | 256 |
Number of employees under the age of 30 years | 13 | 16 | 16 |
Number of employees between 30 and 50 years | 127 | 142 | 153 |
Number of employees over 50 years | 98 | 92 | 87 |
Personnel expenses - Employee t
Personnel expenses - Employee turnover (Details) - employee | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Personnel expense | |||
Number of employees who left employment | 32 | 31 | 26 |
Number of women employees who left employment | 12 | 12 | 9 |
Number of men employees who left employment | 20 | 19 | 17 |
Number of employees who left employment under the age of 30 years | 3 | 4 | 2 |
Number of employees who left employment between 30 and 50 years | 20 | 20 | 17 |
Number of employees who left employment over 50 years | 9 | 7 | 7 |
Personnel expenses - Employee_2
Personnel expenses - Employees by health percentage (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Personnel expense | |||
Percentage of employees absence due to sickness | 3.10% | 3.30% | 4.00% |
Percentage of employees that use fitness allowance | 91.00% | 92.00% | 84.00% |
Personnel expenses - Employee e
Personnel expenses - Employee equality and diversity (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Personnel expense | |||
Percentage of allocation of women on the Board of Directors | 62.00% | 60.00% | 50.00% |
Percentage of allocation of men on the Board of Directors | 38.00% | 40.00% | 50.00% |
Percentage of allocation of women in executive management | 50.00% | 64.00% | 50.00% |
Percentage of allocation of men in executive management | 50.00% | 36.00% | 50.00% |
Percentage of allocation of women in management positions | 41.00% | 42.00% | 36.00% |
Percentage of allocation of men in management positions | 59.00% | 58.00% | 64.00% |
Percentage of allocation of women employees in total | 51.00% | 49.00% | 48.00% |
Percentage of allocation of men employees in total | 49.00% | 51.00% | 52.00% |
Percentage of allocation of employees with foreign background | 33.00% | 33.00% | 30.00% |
Percentage of allocation of employees with Swedish background | 67.00% | 67.00% | 70.00% |
Frequency of survey (in years) | 3 years | 3 years | 3 years |
Personnel expenses - Employee d
Personnel expenses - Employee development (Details) - D | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Personnel expense | |||
Percentage of employees who had a performance review | 96.00% | 95.00% | 98.00% |
Average number of training days per employee | 3 | 2 | 3 |
Other administrative expenses_2
Other administrative expenses (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other administrative expenses | |||
Travel expenses and marketing | kr (7) | kr (8) | kr (10) |
IT and information system (fees incl.) | (151) | (144) | (141) |
Other fees | (34) | (38) | (47) |
Premises | (33) | (32) | (28) |
Other | (6) | (10) | (10) |
Total other administrative expenses | kr (231) | kr (232) | kr (236) |
Other administrative expenses -
Other administrative expenses - Operating leases (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cost of operating leases | |||
Leases | kr (32) | kr (31) | kr (27) |
Future minimum rentals payable under non-cancellable operating leases | |||
Future minimum rentals payable under non-cancellable operating leases | (92) | (120) | (151) |
Within 1 year | |||
Future minimum rentals payable under non-cancellable operating leases | |||
Future minimum rentals payable under non-cancellable operating leases | (32) | (32) | (31) |
Between 1 and 5 years | |||
Future minimum rentals payable under non-cancellable operating leases | |||
Future minimum rentals payable under non-cancellable operating leases | kr (60) | kr (88) | kr (120) |
Other administrative expenses_3
Other administrative expenses - Remuneration to auditors (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Auditor's remuneration details | |||
Audit fee | kr (8) | kr (8) | kr (10) |
Audit related fee | 0 | 0 | 0 |
Tax related fee | 0 | 0 | |
Other fees | (2) | (1) | (1) |
Total | kr (10) | kr (9) | kr (11) |
Tangible and intangible asset_2
Tangible and intangible assets (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Tangible and intangible assets | |||
Tangible assets | kr 26 | kr 22 | kr 22 |
Intangible assets | 43 | 66 | 101 |
Total net book value | 69 | 88 | 123 |
Depreciation and impairment during the year according to the Consolidated Statement of Comprehensive Income | kr (40) | kr (45) | kr (46) |
Average useful life for intangible assets | 5 years |
Leasing (Details)
Leasing (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Leasing | ||
Gross investment | kr 307 | kr 370 |
Present value of minimum lease payments | 274 | 333 |
Unearned finance income | 33 | 37 |
Within 1 year | ||
Leasing | ||
Gross investment | 117 | 124 |
Present value of minimum lease payments | 113 | 107 |
Between 1 and 5 years | ||
Leasing | ||
Gross investment | 182 | 246 |
Present value of minimum lease payments | 156 | kr 226 |
More than 5 years | ||
Leasing | ||
Gross investment | 8 | |
Present value of minimum lease payments | kr 5 |
Impairments (Details)
Impairments (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of changes in allowance account for credit losses of financial assets | |||
Impairment of financial assets | kr (59) | kr (23) | |
Reversal of previous write-downs | 110 | 7 | |
Established losses | (47) | ||
Reserves applied to cover established credit losses | 46 | ||
Recovered credit losses | kr 0 | 1 | 0 |
Net credit losses | kr 51 | kr (16) | |
Net credit losses for IFRS 9 | 7 | ||
12-month expected credit losses | |||
Reconciliation of changes in allowance account for credit losses of financial assets | |||
Net credit losses for IFRS 9 | 6 | ||
Lifetime expected credit losses | Financial instruments not credit-impaired | |||
Reconciliation of changes in allowance account for credit losses of financial assets | |||
Net credit losses for IFRS 9 | 14 | ||
Lifetime expected credit losses | Financial instruments credit-impaired | |||
Reconciliation of changes in allowance account for credit losses of financial assets | |||
Net credit losses for IFRS 9 | kr (13) |
Impairments - Loss Allowance (D
Impairments - Loss Allowance (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans and off balance | |||
Provision ratio | 0.05% | 0.06% | |
12-month expected credit losses | |||
Loans and off balance | |||
Provision ratio | 0.02% | ||
Lifetime expected credit losses | Financial instruments not credit-impaired | |||
Loans and off balance | |||
Provision ratio | 0.03% | ||
Lifetime expected credit losses | Financial instruments credit-impaired | |||
Loans and off balance | |||
Provision ratio | 5.89% | ||
Gross carrying amount | |||
Loans and off balance | |||
Loans and off balance | kr 264,686 | kr 272,760 | |
Of which guaranteed | 64.10% | ||
Gross carrying amount | Loans in the form of interest-bearing securities | |||
Loans and off balance | |||
Loans and off balance | kr 36,798 | 41,125 | |
Gross carrying amount | Loans to credit institutions | |||
Loans and off balance | |||
Loans and off balance | 11,352 | 12,884 | |
Gross carrying amount | Loans to the public | |||
Loans and off balance | |||
Loans and off balance | 160,946 | 141,266 | |
Gross carrying amount | Guarantees | |||
Loans and off balance | |||
Loans and off balance | 4,065 | 3,360 | |
Gross carrying amount | Committed undisbursed loans | |||
Loans and off balance | |||
Loans and off balance | 51,525 | 74,125 | |
Gross carrying amount | 12-month expected credit losses | |||
Loans and off balance | |||
Loans and off balance | kr 202,583 | 209,232 | |
Of which guaranteed | 60.40% | ||
Gross carrying amount | 12-month expected credit losses | Loans in the form of interest-bearing securities | |||
Loans and off balance | |||
Loans and off balance | kr 34,112 | ||
Gross carrying amount | 12-month expected credit losses | Loans to credit institutions | |||
Loans and off balance | |||
Loans and off balance | 10,188 | ||
Gross carrying amount | 12-month expected credit losses | Loans to the public | |||
Loans and off balance | |||
Loans and off balance | 134,117 | ||
Gross carrying amount | 12-month expected credit losses | Guarantees | |||
Loans and off balance | |||
Loans and off balance | 2,818 | ||
Gross carrying amount | 12-month expected credit losses | Committed undisbursed loans | |||
Loans and off balance | |||
Loans and off balance | 21,348 | ||
Gross carrying amount | Lifetime expected credit losses | Financial instruments not credit-impaired | |||
Loans and off balance | |||
Loans and off balance | kr 60,678 | 62,286 | |
Of which guaranteed | 85.40% | ||
Gross carrying amount | Lifetime expected credit losses | Financial instruments not credit-impaired | Loans in the form of interest-bearing securities | |||
Loans and off balance | |||
Loans and off balance | kr 2,686 | ||
Gross carrying amount | Lifetime expected credit losses | Financial instruments not credit-impaired | Loans to credit institutions | |||
Loans and off balance | |||
Loans and off balance | 1,164 | ||
Gross carrying amount | Lifetime expected credit losses | Financial instruments not credit-impaired | Loans to the public | |||
Loans and off balance | |||
Loans and off balance | 25,405 | ||
Gross carrying amount | Lifetime expected credit losses | Financial instruments not credit-impaired | Guarantees | |||
Loans and off balance | |||
Loans and off balance | 1,246 | ||
Gross carrying amount | Lifetime expected credit losses | Financial instruments not credit-impaired | Committed undisbursed loans | |||
Loans and off balance | |||
Loans and off balance | 30,177 | ||
Gross carrying amount | Lifetime expected credit losses | Financial instruments credit-impaired | |||
Loans and off balance | |||
Loans and off balance | kr 1,425 | 1,242 | |
Of which guaranteed | 94.30% | ||
Gross carrying amount | Lifetime expected credit losses | Financial instruments credit-impaired | Loans to the public | |||
Loans and off balance | |||
Loans and off balance | kr 1,424 | ||
Gross carrying amount | Lifetime expected credit losses | Financial instruments credit-impaired | Guarantees | |||
Loans and off balance | |||
Loans and off balance | 1 | ||
Accumulated impairment | |||
Loans and off balance | |||
Loans and off balance | (139) | (155) | kr (254) |
Accumulated impairment | Loans in the form of interest-bearing securities | |||
Loans and off balance | |||
Loans and off balance | (12) | ||
Accumulated impairment | Loans to credit institutions | |||
Loans and off balance | |||
Loans and off balance | (2) | ||
Accumulated impairment | Loans to the public | |||
Loans and off balance | |||
Loans and off balance | (123) | (155) | |
Accumulated impairment | Guarantees | |||
Loans and off balance | |||
Loans and off balance | (2) | ||
Accumulated impairment | Committed undisbursed loans | |||
Loans and off balance | |||
Loans and off balance | 0 | ||
Accumulated impairment | 12-month expected credit losses | |||
Loans and off balance | |||
Loans and off balance | (34) | ||
Accumulated impairment | 12-month expected credit losses | Loans in the form of interest-bearing securities | |||
Loans and off balance | |||
Loans and off balance | (9) | ||
Accumulated impairment | 12-month expected credit losses | Loans to credit institutions | |||
Loans and off balance | |||
Loans and off balance | (1) | ||
Accumulated impairment | 12-month expected credit losses | Loans to the public | |||
Loans and off balance | |||
Loans and off balance | (24) | ||
Accumulated impairment | 12-month expected credit losses | Guarantees | |||
Loans and off balance | |||
Loans and off balance | 0 | ||
Accumulated impairment | 12-month expected credit losses | Committed undisbursed loans | |||
Loans and off balance | |||
Loans and off balance | 0 | ||
Accumulated impairment | Lifetime expected credit losses | Financial instruments not credit-impaired | |||
Loans and off balance | |||
Loans and off balance | (21) | ||
Accumulated impairment | Lifetime expected credit losses | Financial instruments not credit-impaired | Loans in the form of interest-bearing securities | |||
Loans and off balance | |||
Loans and off balance | (3) | ||
Accumulated impairment | Lifetime expected credit losses | Financial instruments not credit-impaired | Loans to credit institutions | |||
Loans and off balance | |||
Loans and off balance | (1) | ||
Accumulated impairment | Lifetime expected credit losses | Financial instruments not credit-impaired | Loans to the public | |||
Loans and off balance | |||
Loans and off balance | (17) | ||
Accumulated impairment | Lifetime expected credit losses | Financial instruments not credit-impaired | Guarantees | |||
Loans and off balance | |||
Loans and off balance | 0 | ||
Accumulated impairment | Lifetime expected credit losses | Financial instruments not credit-impaired | Committed undisbursed loans | |||
Loans and off balance | |||
Loans and off balance | 0 | ||
Accumulated impairment | Lifetime expected credit losses | Financial instruments credit-impaired | |||
Loans and off balance | |||
Loans and off balance | (84) | ||
Accumulated impairment | Lifetime expected credit losses | Financial instruments credit-impaired | Loans to the public | |||
Loans and off balance | |||
Loans and off balance | (82) | ||
Accumulated impairment | Lifetime expected credit losses | Financial instruments credit-impaired | Guarantees | |||
Loans and off balance | |||
Loans and off balance | (2) | ||
Accumulated impairment | Expected credit losses individually assessed | |||
Loans and off balance | |||
Loans and off balance | (139) | (137) | |
Accumulated impairment | Expected credit losses individually assessed | 12-month expected credit losses | |||
Loans and off balance | |||
Loans and off balance | (34) | (38) | |
Accumulated impairment | Expected credit losses individually assessed | Lifetime expected credit losses | Financial instruments not credit-impaired | |||
Loans and off balance | |||
Loans and off balance | (21) | (33) | |
Accumulated impairment | Expected credit losses individually assessed | Lifetime expected credit losses | Financial instruments credit-impaired | |||
Loans and off balance | |||
Loans and off balance | kr (84) | kr (66) |
Impairments - Reconciliations (
Impairments - Reconciliations (Details) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Gross carrying amount | ||
Changes in loss allowance | ||
Loans and off balance at beginning of period | kr 272,760 | |
Increase through origination or purchase, financial assets | 38,365 | |
Transfer to stage 1 | 2,490 | |
Transfer to stage 2 | 5,431 | |
Transfer to stage 3 | 466 | |
Decreases due to derecognition | (54,826) | |
Loans and off balance at end of period | 264,686 | kr 272,760 |
Effect on opening balance after implementation of IFRS 9 | (18) | |
Gross carrying amount | 12-month expected credit losses | ||
Changes in loss allowance | ||
Loans and off balance at beginning of period | 209,232 | |
Increase through origination or purchase, financial assets | 37,594 | |
Transfer to stage 1 | 2,490 | |
Decreases due to derecognition | (46,733) | |
Loans and off balance at end of period | 202,583 | 209,232 |
Gross carrying amount | Lifetime expected credit losses | Financial instruments not credit-impaired | ||
Changes in loss allowance | ||
Loans and off balance at beginning of period | 62,286 | |
Increase through origination or purchase, financial assets | 768 | |
Transfer to stage 2 | 5,431 | |
Decreases due to derecognition | (7,807) | |
Loans and off balance at end of period | 60,678 | 62,286 |
Gross carrying amount | Lifetime expected credit losses | Financial instruments credit-impaired | ||
Changes in loss allowance | ||
Loans and off balance at beginning of period | 1,242 | |
Increase through origination or purchase, financial assets | 3 | |
Transfer to stage 3 | 466 | |
Decreases due to derecognition | (286) | |
Loans and off balance at end of period | 1,425 | 1,242 |
Accumulated impairment | ||
Changes in loss allowance | ||
Loans and off balance at beginning of period | (155) | (254) |
Net remeasurement of loss allowance | 51 | |
Decrease in allowance account due to write-offs | 46 | |
Exchange-rate differences | 2 | |
Loans and off balance at end of period | (139) | (155) |
Effect on opening balance after implementation of IFRS 9 | 18 | |
Accumulated impairment | 12-month expected credit losses | ||
Changes in loss allowance | ||
Loans and off balance at end of period | (34) | |
Accumulated impairment | Lifetime expected credit losses | Financial instruments not credit-impaired | ||
Changes in loss allowance | ||
Loans and off balance at end of period | (21) | |
Accumulated impairment | Lifetime expected credit losses | Financial instruments credit-impaired | ||
Changes in loss allowance | ||
Loans and off balance at end of period | (84) | |
Accumulated impairment | Expected credit losses individually assessed | ||
Changes in loss allowance | ||
Loans and off balance at beginning of period | (137) | |
Increase through origination or purchase, financial assets | (15) | |
Net remeasurement of loss allowance | 7 | |
Transfer to stage 1 | 0 | |
Transfer to stage 2 | 0 | |
Transfer to stage 3 | 0 | |
Decreases due to derecognition | 15 | |
Exchange-rate differences | (9) | |
Loans and off balance at end of period | (139) | (137) |
Accumulated impairment | Expected credit losses individually assessed | 12-month expected credit losses | ||
Changes in loss allowance | ||
Loans and off balance at beginning of period | (38) | |
Increase through origination or purchase, financial assets | (12) | |
Net remeasurement of loss allowance | 12 | |
Transfer to stage 1 | 0 | |
Transfer to stage 2 | 1 | |
Transfer to stage 3 | 0 | |
Decreases due to derecognition | 5 | |
Exchange-rate differences | (2) | |
Loans and off balance at end of period | (34) | (38) |
Accumulated impairment | Expected credit losses individually assessed | Lifetime expected credit losses | Financial instruments not credit-impaired | ||
Changes in loss allowance | ||
Loans and off balance at beginning of period | (33) | |
Increase through origination or purchase, financial assets | (2) | |
Net remeasurement of loss allowance | 9 | |
Transfer to stage 1 | 0 | |
Transfer to stage 2 | (1) | |
Transfer to stage 3 | (2) | |
Decreases due to derecognition | 10 | |
Exchange-rate differences | (2) | |
Loans and off balance at end of period | (21) | (33) |
Accumulated impairment | Expected credit losses individually assessed | Lifetime expected credit losses | Financial instruments credit-impaired | ||
Changes in loss allowance | ||
Loans and off balance at beginning of period | (66) | |
Increase through origination or purchase, financial assets | (1) | |
Net remeasurement of loss allowance | (14) | |
Transfer to stage 3 | 2 | |
Decreases due to derecognition | 0 | |
Exchange-rate differences | (5) | |
Loans and off balance at end of period | kr (84) | kr (66) |
Impairments - Loan credit quali
Impairments - Loan credit quality (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of credit risk exposure | ||
Financial assets. | kr 294,327 | kr 258,657 |
AAA | ||
Disclosure of credit risk exposure | ||
Financial assets. | 101,310 | 78,991 |
AA+ to A- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 105,408 | 95,770 |
BBB+ to BBB- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 65,598 | 65,426 |
CCC to D | ||
Disclosure of credit risk exposure | ||
Financial assets. | 49 | kr 66 |
Gross carrying amount | Loans | ||
Disclosure of credit risk exposure | ||
Financial assets. | 209,096 | |
Gross carrying amount | Loans | AAA | ||
Disclosure of credit risk exposure | ||
Financial assets. | 1,204 | |
Gross carrying amount | Loans | AA+ to A- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 25,686 | |
Gross carrying amount | Loans | BBB+ to BBB- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 108,450 | |
Gross carrying amount | Loans | BB+ to BB- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 47,055 | |
Gross carrying amount | Loans | B+ to B- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 25,103 | |
Gross carrying amount | Loans | CCC to D | ||
Disclosure of credit risk exposure | ||
Financial assets. | 1,598 | |
Gross carrying amount | 12-month expected credit losses | Loans | ||
Disclosure of credit risk exposure | ||
Financial assets. | 178,417 | |
Gross carrying amount | 12-month expected credit losses | Loans | AAA | ||
Disclosure of credit risk exposure | ||
Financial assets. | 1,204 | |
Gross carrying amount | 12-month expected credit losses | Loans | AA+ to A- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 25,635 | |
Gross carrying amount | 12-month expected credit losses | Loans | BBB+ to BBB- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 107,289 | |
Gross carrying amount | 12-month expected credit losses | Loans | BB+ to BB- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 28,055 | |
Gross carrying amount | 12-month expected credit losses | Loans | B+ to B- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 16,234 | |
Gross carrying amount | Lifetime expected credit losses | Financial instruments not credit-impaired | Loans | ||
Disclosure of credit risk exposure | ||
Financial assets. | 29,255 | |
Gross carrying amount | Lifetime expected credit losses | Financial instruments not credit-impaired | Loans | AA+ to A- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 51 | |
Gross carrying amount | Lifetime expected credit losses | Financial instruments not credit-impaired | Loans | BBB+ to BBB- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 1,161 | |
Gross carrying amount | Lifetime expected credit losses | Financial instruments not credit-impaired | Loans | BB+ to BB- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 18,972 | |
Gross carrying amount | Lifetime expected credit losses | Financial instruments not credit-impaired | Loans | B+ to B- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 8,869 | |
Gross carrying amount | Lifetime expected credit losses | Financial instruments not credit-impaired | Loans | CCC to D | ||
Disclosure of credit risk exposure | ||
Financial assets. | 202 | |
Gross carrying amount | Lifetime expected credit losses | Financial instruments credit-impaired | Loans | ||
Disclosure of credit risk exposure | ||
Financial assets. | 1,424 | |
Gross carrying amount | Lifetime expected credit losses | Financial instruments credit-impaired | Loans | BB+ to BB- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 28 | |
Gross carrying amount | Lifetime expected credit losses | Financial instruments credit-impaired | Loans | CCC to D | ||
Disclosure of credit risk exposure | ||
Financial assets. | kr 1,396 |
Impairments - Past due impairme
Impairments - Past due impairment (Details) kr in Millions | Dec. 31, 2017SEK (kr) |
Past due receivables | |
Past-due receivables | kr 640 |
Not later than 3 months / 90 days | |
Past due receivables | |
Past-due receivables | 136 |
Aggregate amount of principal and interest more than 90 days past-due | |
Past due receivables | |
Past-due receivables | 10 |
More than three but less than six months | |
Past due receivables | |
Past-due receivables | 3 |
More than six months bur less than nine months | |
Past due receivables | |
Past-due receivables | 3 |
More than nine months | |
Past due receivables | |
Past-due receivables | 5 |
Principal amount not past-due on such receivables | |
Past due receivables | |
Past-due receivables | kr 494 |
Taxes (Details)
Taxes (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Taxes | |||
Adjustment previous year | kr (1) | kr 0 | kr 4 |
Current tax | (448) | (262) | (382) |
Deferred tax | 245 | 27 | 156 |
Total tax expense (income) | (204) | (235) | (222) |
Income tax related to other comprehensive income | |||
Tax on items to be reclassified to profit or loss - Current tax | 6 | 27 | 27 |
Tax on items not to be reclassified to profit or loss - Current tax | (82) | ||
Tax on items not to be reclassified to profit or loss - Deferred tax | 10 | 1 | 6 |
Income tax related to other comprehensive income | kr (66) | kr 28 | kr 33 |
Taxes - Reconciliation of effec
Taxes - Reconciliation of effective tax rate (Details) - SEK (kr) kr in Millions | Jan. 01, 2021 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2020 |
Reconciliation of effective tax rate | |||||
The Swedish corporate tax rate, % | 20.60% | 22.00% | 22.00% | 22.00% | 21.40% |
Profit before taxes | kr 852 | kr 1,007 | kr 1,002 | ||
National tax based on profit before taxes | (187) | (222) | (220) | ||
Tax effects of: Non-taxable income | 0 | 1 | 0 | ||
Tax effects of: Non-deductible expenses | (14) | (15) | (1) | ||
Tax effects of: Imputed interest on tax allocation reserve | (2) | (2) | (3) | ||
Tax effects of: Other | (1) | 3 | 2 | ||
Total tax expense (income) | kr (204) | kr (235) | kr (222) | ||
Effective tax expense in % | 24.00% | 23.30% | 22.20% |
Taxes -Deferred tax assets and
Taxes -Deferred tax assets and liabilities (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets and liabilities net | |||
Deferred tax assets | kr 15 | kr 7 | |
Deferred tax liabilities | 291 | 538 | |
Net deferred tax liabilities (+) / tax assets (-) | 276 | 531 | kr 559 |
Deductible loss carry forwards | 0 | 0 | |
Pensions | |||
Deferred tax assets and liabilities net | |||
Deferred tax assets | 15 | 7 | |
Untaxed reserves | |||
Deferred tax assets and liabilities net | |||
Deferred tax liabilities | kr 291 | kr 538 |
Taxes - Change in deferred taxe
Taxes - Change in deferred taxes (Details) - SEK (kr) kr in Millions | Jan. 01, 2021 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2020 |
Change in deferred taxes | |||||
Opening balance | kr 531 | kr 559 | kr 276 | ||
Change through profit or loss | (245) | (27) | kr (156) | ||
Change in other comprehensive income | (10) | (1) | |||
Total | kr 276 | kr 531 | kr 559 | ||
The Swedish corporate tax rate, % | 20.60% | 22.00% | 22.00% | 22.00% | 21.40% |
Loans and liquidity investmen_3
Loans and liquidity investments (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1] | Dec. 31, 2015 | ||
Loans: | |||||||
Loans in the form of interest-bearing securities | kr 36,781 | kr 41,125 | |||||
Loans to credit institutions | 27,725 | 23,198 | |||||
Loans to the public | 161,094 | 141,111 | |||||
Cash collateral under the security agreements for derivative contracts | (16,374) | (10,314) | |||||
Total loans | 209,226 | 195,120 | |||||
Liquidity investments: | |||||||
Cash and cash equivalents | 2,416 | [1] | 1,231 | [1] | kr 7,054 | kr 2,258 | |
Cash collateral under the security agreements for derivative contracts | 16,374 | 10,314 | |||||
Treasuries/government bonds | 11,117 | 4,382 | |||||
Other interest-bearing securities except loans | 48,665 | 39,807 | |||||
Total liquidity investments | 78,572 | 55,734 | |||||
issued by public authorities | 15,110 | 9,309 | |||||
quoted on an exchange | kr 24,505 | kr 22,396 | |||||
[1] | Cash and cash equivalents include, in this context, cash at banks that can be immediately converted into cash and short-term deposits for which the time to maturity does not exceed three months from trade date. See Note 11. |
Loans and liquidity investmen_4
Loans and liquidity investments - Difference between book value and amount required to be paid at maturity (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Difference between book value and amount required to be paid at maturity | ||
Sum of amounts exceeding nominal | kr 143 | kr 4 |
Sum of amounts falling below nominal | kr (39) | kr (57) |
Loans and liquidity investmen_5
Loans and liquidity investments - Volume Development, Lending (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Volume Development, Lending | ||
Offers of long-term loans accepted during the year | kr 57,015 | kr 89,305 |
Undisbursed loans at year end | 50,814 | 72,914 |
Loans outstanding | 209,226 | 195,120 |
Concessionary loans outstanding | 663 | 754 |
CIRR-System | ||
Volume Development, Lending | ||
Offers of long-term loans accepted during the year | 4,916 | 36,909 |
Undisbursed loans at year end | 47,664 | 69,161 |
Loans outstanding | kr 69,922 | kr 49,124 |
Loans and liquidity investmen_6
Loans and liquidity investments - Outstanding loans as per business area (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Outstanding loans as per product type | ||
Total loans | kr 209,226 | kr 195,120 |
Concessionary loans outstanding | 663 | 754 |
CIRR-System | ||
Outstanding loans as per product type | ||
Total loans | 69,922 | 49,124 |
Lending to Swedish exporters | ||
Outstanding loans as per product type | ||
Total loans | 89,759 | 93,060 |
Lending to exporters' customers | ||
Outstanding loans as per product type | ||
Total loans | 119,467 | 102,060 |
Lending to exporters' customers | CIRR-System | ||
Outstanding loans as per product type | ||
Total loans | kr 69,922 | kr 49,124 |
Classification of financial a_3
Classification of financial assets and liabilities - Financial assets (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets at fair value through profit or loss | ||
Mandatorily | kr 64,347 | |
Derivatives used for hedge accounting | 1,964 | |
Held-for-trading | kr 4,356 | |
Designated upon initial recognition (FVO) | 113 | |
Derivatives used for hedge accounting | 3,447 | |
Available-for-sale | 44,076 | |
Loans and receivables | 206,665 | |
Amortized cost | 228,016 | |
Total financial assets | 294,327 | 258,657 |
Cash and cash equivalents | ||
Financial assets at fair value through profit or loss | ||
Loans and receivables | 1,231 | |
Amortized cost | 2,416 | |
Total financial assets | 2,416 | 1,231 |
Treasuries/government bonds | ||
Financial assets at fair value through profit or loss | ||
Mandatorily | 11,117 | |
Available-for-sale | 4,382 | |
Total financial assets | 11,117 | 4,382 |
Other interest-bearing securities except loans | ||
Financial assets at fair value through profit or loss | ||
Mandatorily | 48,665 | |
Designated upon initial recognition (FVO) | 113 | |
Available-for-sale | 39,694 | |
Total financial assets | 48,665 | 39,807 |
Loans in the form of interest-bearing securities | ||
Financial assets at fair value through profit or loss | ||
Loans and receivables | 41,125 | |
Amortized cost | 36,781 | |
Total financial assets | 36,781 | 41,125 |
Loans to credit institutions | ||
Financial assets at fair value through profit or loss | ||
Loans and receivables | 23,198 | |
Amortized cost | 27,725 | |
Total financial assets | 27,725 | 23,198 |
Loans to the public | ||
Financial assets at fair value through profit or loss | ||
Loans and receivables | 141,111 | |
Amortized cost | 161,094 | |
Total financial assets | 161,094 | 141,111 |
Derivatives | ||
Financial assets at fair value through profit or loss | ||
Mandatorily | 4,565 | |
Derivatives used for hedge accounting | 1,964 | |
Held-for-trading | 4,356 | |
Derivatives used for hedge accounting | 3,447 | |
Total financial assets | kr 6,529 | kr 7,803 |
Classification of financial a_4
Classification of financial assets and liabilities - Financial liabilities (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financial liabilities at fair value through profit or loss | ||
Mandatorily measured at fair value through profit or loss / Held-for-trading | kr 15,652 | kr 10,864 |
Designated upon initial recognition (FVO) | 64,687 | 63,421 |
Derivatives used for hedge accounting | 6,282 | |
Derivatives used for hedge accounting | 5,616 | |
Amortized cost / Other financial liabilities | 193,160 | 163,452 |
Total financial liabilities | 279,781 | 243,353 |
Borrowing from credit institutions | ||
Financial liabilities at fair value through profit or loss | ||
Amortized cost / Other financial liabilities | 2,247 | 2,317 |
Total financial liabilities | 2,247 | 2,317 |
Debt securities issued | ||
Financial liabilities at fair value through profit or loss | ||
Designated upon initial recognition (FVO) | 64,687 | 63,421 |
Amortized cost / Other financial liabilities | 190,913 | 159,095 |
Total financial liabilities | 255,600 | 222,516 |
Derivatives | ||
Financial liabilities at fair value through profit or loss | ||
Mandatorily measured at fair value through profit or loss / Held-for-trading | 15,652 | 10,864 |
Derivatives used for hedge accounting | 6,282 | |
Derivatives used for hedge accounting | 5,616 | |
Total financial liabilities | kr 21,934 | 16,480 |
Subordinated securities issued | ||
Financial liabilities at fair value through profit or loss | ||
Amortized cost / Other financial liabilities | 2,040 | |
Total financial liabilities | kr 2,040 |
Financial assets and liabilit_3
Financial assets and liabilities at fair value (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments | ||
Book value of financial assets | kr 294,327 | kr 258,657 |
Book value of financial liabilities | 279,781 | 243,353 |
Fair value of financial assets | 298,836 | 263,961 |
Fair value of financial liabilities | 280,800 | 244,309 |
Surplus value (+) /Deficit value (-), financial assets | 4,509 | 5,304 |
Surplus value (+) /Deficit value (-) financial liabilities | 1,019 | 956 |
Borrowing from credit institutions | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial liabilities | 2,247 | 2,317 |
Fair value of financial liabilities | 2,247 | 2,317 |
Debt securities issued | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial liabilities | 255,600 | 222,516 |
Fair value of financial liabilities | 256,619 | 223,465 |
Surplus value (+) /Deficit value (-) financial liabilities | 1,019 | 949 |
Derivatives | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial liabilities | 21,934 | 16,480 |
Fair value of financial liabilities | 21,934 | 16,480 |
Subordinated securities issued | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial liabilities | 2,040 | |
Fair value of financial liabilities | 2,047 | |
Surplus value (+) /Deficit value (-) financial liabilities | 7 | |
Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial assets | 2,416 | 1,231 |
Fair value of financial assets | 2,416 | 1,231 |
Treasuries/government bonds | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial assets | 11,117 | 4,382 |
Fair value of financial assets | 11,117 | 4,382 |
Other interest-bearing securities except loans | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial assets | 48,665 | 39,807 |
Fair value of financial assets | 48,665 | 39,807 |
Loans in the form of interest-bearing securities | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial assets | 36,781 | 41,125 |
Fair value of financial assets | 37,666 | 42,352 |
Surplus value (+) /Deficit value (-), financial assets | 885 | 1,227 |
Loans to credit institutions | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial assets | 27,725 | 23,198 |
Fair value of financial assets | 27,709 | 23,451 |
Surplus value (+) /Deficit value (-), financial assets | (16) | 253 |
Loans to the public | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial assets | 161,094 | 141,111 |
Fair value of financial assets | 164,734 | 144,935 |
Surplus value (+) /Deficit value (-), financial assets | 3,640 | 3,824 |
Derivatives | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial assets | 6,529 | 7,803 |
Fair value of financial assets | kr 6,529 | kr 7,803 |
Financial assets and liabilit_4
Financial assets and liabilities at fair value - Financial assets & liabilities reported at amortized cost in fair value hierarchy (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments | ||
Fair value of financial assets | kr 298,836 | kr 263,961 |
Book value of financial assets | 294,327 | 258,657 |
Fair value of financial liabilities | 280,800 | 244,309 |
Book value of financial liabilities | 279,781 | 243,353 |
Borrowing from credit institutions | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial liabilities | 2,247 | 2,317 |
Book value of financial liabilities | 2,247 | 2,317 |
Debt securities issued | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial liabilities | 256,619 | 223,465 |
Book value of financial liabilities | 255,600 | 222,516 |
Subordinated securities issued | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial liabilities | 2,047 | |
Book value of financial liabilities | 2,040 | |
Financial liabilities at amortized cost / Other financial liabilities | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial liabilities | 194,179 | 164,408 |
Book value of financial liabilities | 193,160 | 163,452 |
Financial liabilities at amortized cost / Other financial liabilities | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial liabilities | 194,179 | 164,408 |
Financial liabilities at amortized cost / Other financial liabilities | Borrowing from credit institutions | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial liabilities | 2,247 | 2,317 |
Book value of financial liabilities | 2,247 | 2,317 |
Financial liabilities at amortized cost / Other financial liabilities | Borrowing from credit institutions | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial liabilities | 2,247 | 2,317 |
Financial liabilities at amortized cost / Other financial liabilities | Debt securities issued | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial liabilities | 191,932 | 160,044 |
Book value of financial liabilities | 190,913 | 159,095 |
Financial liabilities at amortized cost / Other financial liabilities | Debt securities issued | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial liabilities | 191,932 | 160,044 |
Financial liabilities at amortized cost / Other financial liabilities | Subordinated securities issued | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial liabilities | 2,047 | |
Book value of financial liabilities | 2,040 | |
Financial liabilities at amortized cost / Other financial liabilities | Subordinated securities issued | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial liabilities | 2,047 | |
Financial assets at amortized cost | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial assets | 232,513 | 211,969 |
Book value of financial assets | 228,016 | 206,665 |
Financial assets at amortized cost | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial assets | 2,703 | 1,781 |
Financial assets at amortized cost | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial assets | 229,810 | 210,188 |
Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial assets | 2,416 | 1,231 |
Book value of financial assets | 2,416 | 1,231 |
Cash and cash equivalents | Financial assets at amortized cost | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial assets | 2,416 | 1,231 |
Book value of financial assets | 2,416 | 1,231 |
Cash and cash equivalents | Financial assets at amortized cost | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial assets | 2,416 | 1,231 |
Loans in the form of interest-bearing securities | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial assets | 37,666 | 42,352 |
Book value of financial assets | 36,781 | 41,125 |
Loans in the form of interest-bearing securities | Financial assets at amortized cost | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial assets | 37,666 | 42,352 |
Book value of financial assets | 36,781 | 41,125 |
Loans in the form of interest-bearing securities | Financial assets at amortized cost | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial assets | 287 | 550 |
Loans in the form of interest-bearing securities | Financial assets at amortized cost | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial assets | 37,379 | 41,802 |
Loans to credit institutions | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial assets | 27,709 | 23,451 |
Book value of financial assets | 27,725 | 23,198 |
Loans to credit institutions | Financial assets at amortized cost | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial assets | 27,709 | 23,451 |
Book value of financial assets | 27,725 | 23,198 |
Loans to credit institutions | Financial assets at amortized cost | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial assets | 27,709 | 23,451 |
Loans to the public | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial assets | 164,734 | 144,935 |
Book value of financial assets | 161,094 | 141,111 |
Loans to the public | Financial assets at amortized cost | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial assets | 164,722 | 144,935 |
Book value of financial assets | 161,094 | 141,111 |
Loans to the public | Financial assets at amortized cost | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Fair value of financial assets | kr 164,722 | kr 144,935 |
Financial assets and liabilit_5
Financial assets and liabilities at fair value - Financial assets & liabilities reported at fair value in fair value hierarchy (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | kr 298,836 | kr 263,961 |
Financial liabilities at fair value | 280,800 | 244,309 |
Debt securities issued | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities at fair value | 256,619 | 223,465 |
Derivatives | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities at fair value | 21,934 | 16,480 |
Financial liabilities at fair value through profit or loss | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities at fair value | 86,621 | 79,901 |
Financial liabilities at fair value through profit or loss | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities at fair value | 32,203 | 34,086 |
Financial liabilities at fair value through profit or loss | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities at fair value | 54,418 | 45,815 |
Financial liabilities at fair value through profit or loss | Debt securities issued | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities at fair value | 64,687 | 63,421 |
Financial liabilities at fair value through profit or loss | Debt securities issued | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities at fair value | 16,789 | 20,426 |
Financial liabilities at fair value through profit or loss | Debt securities issued | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities at fair value | 47,898 | 42,995 |
Financial liabilities at fair value through profit or loss | Derivatives | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities at fair value | 21,934 | 16,480 |
Financial liabilities at fair value through profit or loss | Derivatives | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities at fair value | 15,414 | 13,660 |
Financial liabilities at fair value through profit or loss | Derivatives | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial liabilities at fair value | 6,520 | 2,820 |
Financial assets at fair value through profit or loss | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 66,311 | 7,916 |
Financial assets at fair value through profit or loss | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 64,378 | 5,942 |
Financial assets at fair value through profit or loss | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 1,933 | 1,974 |
Available-for-sale assets | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 44,076 | |
Available-for-sale assets | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 4,382 | |
Available-for-sale assets | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 39,694 | |
Treasuries/government bonds | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 11,117 | 4,382 |
Treasuries/government bonds | Financial assets at fair value through profit or loss | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 11,117 | |
Treasuries/government bonds | Financial assets at fair value through profit or loss | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 11,117 | |
Treasuries/government bonds | Available-for-sale assets | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 4,382 | |
Treasuries/government bonds | Available-for-sale assets | Level 1 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 4,382 | |
Other interest-bearing securities except loans | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 48,665 | 39,807 |
Other interest-bearing securities except loans | Financial assets at fair value through profit or loss | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 48,665 | 113 |
Other interest-bearing securities except loans | Financial assets at fair value through profit or loss | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 48,665 | 113 |
Other interest-bearing securities except loans | Available-for-sale assets | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 39,694 | |
Other interest-bearing securities except loans | Available-for-sale assets | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 39,694 | |
Derivatives | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 6,529 | 7,803 |
Derivatives | Financial assets at fair value through profit or loss | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 6,529 | 7,803 |
Derivatives | Financial assets at fair value through profit or loss | Level 2 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | 4,596 | 5,829 |
Derivatives | Financial assets at fair value through profit or loss | Level 3 | ||
Disclosure of detailed information about financial instruments | ||
Financial assets at fair value | kr 1,933 | kr 1,974 |
Financial assets and liabilit_6
Financial assets and liabilities at fair value - Transfers made between both assets and liabilities (Details) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Financial assets and liabilities at fair value | ||
Transfer from Level 1 to 2 of financial assets | kr 0 | kr 0 |
Transfer from Level 2 to 1 of financial assets | 0 | 0 |
Transfer from Level 1 to 2 of financial liabilities | 0 | 0 |
Transfer from Level 2 to 1 of financial liabilities | 0 | 0 |
Transfers Into Level 3 of financial assets | 0 | |
Transfers Out of Level 3 of financial assets | 0 | |
Transfers Into Level 3 of financial liabilities | 0 | |
Transfers Out of Level 3 of financial liabilities | 0 | |
Transfers between level 2 and level 3 | kr (2,124) | kr 0 |
Financial assets and liabilit_7
Financial assets and liabilities at fair value - Financial assets and liabilities at fair value in level 3 (Details) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in fair value measurement, assets | ||
Financial assets at beginning of period | kr 263,961 | |
Transfers to level 3 | kr 0 | |
Transfers from level 3 | 0 | |
Financial assets at end of period | 298,836 | 263,961 |
Reconciliation of changes in fair value measurement, liabilities | ||
Financial liabilities at beginning of period | (244,309) | |
Transfers to level 3 | 0 | |
Transfers from level 3 | 0 | |
Financial liabilities at end of period | (280,800) | (244,309) |
Level 3 | ||
Financial assets and liabilities at fair value in level 3 | ||
Financial assets and liabilities at fair value in level 3, at the beginning of period | (43,841) | (50,364) |
Purchases | (13,196) | (19,074) |
Settlements & sales | 9,447 | 20,035 |
Transfers to level 3 | (2,543) | |
Transfers from level 3 | 419 | |
Gains (+) and losses (-) through profit or loss | 178 | (164) |
Gains (+) and losses (-) in other comprehensive income | 250 | |
Currency exchange-rate effects assets and liabilities | (3,199) | 5,726 |
Financial assets and liabilities at fair value in level 3, at the end of period | (52,485) | (43,841) |
Unrealized fair value changes | 157 | (768) |
Debt securities issued | Level 3 | ||
Reconciliation of changes in fair value measurement, liabilities | ||
Financial liabilities at beginning of period | (42,995) | (48,217) |
Purchases | (13,199) | (19,077) |
Settlements & sales | 9,490 | 24,627 |
Transfers to level 3 | (2,486) | |
Transfers from level 3 | 425 | |
Gains (+) and losses (-) through profit or loss | 4,091 | 1,044 |
Gains (+) and losses (-) in other comprehensive income | 250 | |
Currency exchange-rate effects liabilities | (3,474) | (1,372) |
Financial liabilities at end of period | (47,898) | (42,995) |
Derivatives | Level 3 | ||
Financial assets and liabilities at fair value in level 3 | ||
Financial assets and liabilities at fair value in level 3, at the beginning of period | (846) | (2,404) |
Purchases | 3 | 3 |
Settlements & sales | (43) | (4,342) |
Transfers to level 3 | (57) | |
Transfers from level 3 | (6) | |
Gains (+) and losses (-) through profit or loss | (3,913) | (1,202) |
Currency exchange-rate effects assets and liabilities | 275 | 7,099 |
Financial assets and liabilities at fair value in level 3, at the end of period | kr (4,587) | (846) |
Other interest-bearing securities except loans | Level 3 | ||
Reconciliation of changes in fair value measurement, assets | ||
Financial assets at beginning of period | 257 | |
Settlements & sales | (250) | |
Gains (+) and losses (-) through profit or loss | (6) | |
Currency exchange-rate effects assets | kr (1) |
Financial assets and liabilit_8
Financial assets and liabilities at fair value - Assets and liabilities Sensitivity analysis - level 3 (Details) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018SEK (kr) | Dec. 31, 2017SEK (kr) | Dec. 31, 2016SEK (kr) | |
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity, interest rate appreciation basis points | 10 | ||
Sensitivity, interest rate depreciation basis points | (10) | ||
Sensitivity, correlations appreciation | 10.00% | ||
Sensitivity, correlations depreciation | (10.00%) | ||
Sensitivity, credit spreads appreciation basis points | 10 | ||
Sensitivity, credit spreads depreciation basis points | (10) | ||
Financial liabilities at fair value | kr (280,800) | kr (244,309) | |
Sensitivity, correlations maximum positive relationship | 1 | ||
Sensitivity, correlations maximum negative relationship | (1) | ||
Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Shift in interval for correlation | 0.1 | ||
Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Shift in interval for correlation | (0.1) | ||
Level 3 | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Net assets (liabilities) | kr (52,485) | (43,841) | kr (50,364) |
Level 3 | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity impact on total comprehensive income | 242 | 214 | |
Level 3 | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity impact on total comprehensive income | (243) | (211) | |
Level 3 | Own credit spread | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity impact on total comprehensive income | 242 | 211 | |
Level 3 | Own credit spread | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity impact on total comprehensive income | (240) | (208) | |
Level 3 | Derivatives | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Net assets (liabilities) | (4,587) | (846) | (2,404) |
Level 3 | Derivatives | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity impact on total comprehensive income | (66) | (167) | |
Level 3 | Derivatives | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity impact on total comprehensive income | 64 | 155 | |
Level 3 | Derivatives | Equity risk | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Net assets (liabilities) | kr (2,417) | kr (171) | |
Level 3 | Derivatives | Equity risk | Option Model | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | 0.70 | 0.78 | |
Sensitivity impact on total comprehensive income | kr 6 | kr 1 | |
Level 3 | Derivatives | Equity risk | Option Model | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | 0.07 | (0.02) | |
Sensitivity impact on total comprehensive income | kr (6) | kr (1) | |
Level 3 | Derivatives | Interest rate | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Net assets (liabilities) | kr 972 | kr 1,001 | |
Level 3 | Derivatives | Interest rate | Option Model | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | 0.21 | 0.19 | |
Sensitivity impact on total comprehensive income | kr (95) | kr (192) | |
Level 3 | Derivatives | Interest rate | Option Model | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | (0.12) | (0.37) | |
Sensitivity impact on total comprehensive income | kr 90 | kr 178 | |
Level 3 | Derivatives | Currency risk | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Net assets (liabilities) | kr (2,971) | kr (1,512) | |
Level 3 | Derivatives | Currency risk | Option Model | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | 0.84 | 0.89 | |
Sensitivity impact on total comprehensive income | kr 22 | kr 24 | |
Level 3 | Derivatives | Currency risk | Option Model | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | (0.94) | (0.81) | |
Sensitivity impact on total comprehensive income | kr (19) | kr (22) | |
Level 3 | Derivatives | Other | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Net assets (liabilities) | kr (171) | kr (164) | |
Level 3 | Derivatives | Other | Option Model | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | 0.53 | 0.63 | |
Sensitivity impact on total comprehensive income | kr 1 | kr 0 | |
Level 3 | Derivatives | Other | Option Model | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | (0.01) | (0.05) | |
Sensitivity impact on total comprehensive income | kr (1) | kr 0 | |
Level 3 | Debt securities issued | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Financial liabilities at fair value | (47,898) | (42,995) | kr (48,217) |
Level 3 | Debt securities issued | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity impact on total comprehensive income | 308 | 381 | |
Level 3 | Debt securities issued | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity impact on total comprehensive income | (307) | (366) | |
Level 3 | Debt securities issued | Equity risk | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Financial liabilities at fair value | kr (680) | kr (680) | |
Level 3 | Debt securities issued | Equity risk | Discounted cash flow | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Credit spreads liabilities (in basis points) | 10 | 10 | |
Sensitivity impact on total comprehensive income | kr 28 | kr 11 | |
Level 3 | Debt securities issued | Equity risk | Discounted cash flow | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Credit spreads liabilities (in basis points) | (10) | (10) | |
Sensitivity impact on total comprehensive income | kr (28) | kr (11) | |
Level 3 | Debt securities issued | Equity risk | Option Model | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | 0.70 | 0.78 | |
Sensitivity impact on total comprehensive income | kr (7) | kr (1) | |
Level 3 | Debt securities issued | Equity risk | Option Model | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | 0.07 | (0.02) | |
Sensitivity impact on total comprehensive income | kr 6 | kr 1 | |
Level 3 | Debt securities issued | Interest rate | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Financial liabilities at fair value | kr (47,090) | kr (42,168) | |
Level 3 | Debt securities issued | Interest rate | Discounted cash flow | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Credit spreads liabilities (in basis points) | 10 | 10 | |
Sensitivity impact on total comprehensive income | kr 116 | kr 106 | |
Level 3 | Debt securities issued | Interest rate | Discounted cash flow | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Credit spreads liabilities (in basis points) | (10) | (10) | |
Sensitivity impact on total comprehensive income | kr (113) | kr (103) | |
Level 3 | Debt securities issued | Interest rate | Option Model | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | 0.21 | 0.19 | |
Sensitivity impact on total comprehensive income | kr 97 | kr 195 | |
Level 3 | Debt securities issued | Interest rate | Option Model | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | (0.12) | (0.37) | |
Sensitivity impact on total comprehensive income | kr (94) | kr (181) | |
Level 3 | Debt securities issued | Currency risk | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Financial liabilities at fair value | kr (32) | kr (34) | |
Level 3 | Debt securities issued | Currency risk | Discounted cash flow | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Credit spreads liabilities (in basis points) | 10 | 10 | |
Sensitivity impact on total comprehensive income | kr 95 | kr 92 | |
Level 3 | Debt securities issued | Currency risk | Discounted cash flow | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Credit spreads liabilities (in basis points) | (10) | (10) | |
Sensitivity impact on total comprehensive income | kr (96) | kr (92) | |
Level 3 | Debt securities issued | Currency risk | Option Model | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | 0.84 | 0.89 | |
Sensitivity impact on total comprehensive income | kr (23) | kr (25) | |
Level 3 | Debt securities issued | Currency risk | Option Model | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | (0.94) | (0.81) | |
Sensitivity impact on total comprehensive income | kr 20 | kr 23 | |
Level 3 | Debt securities issued | Other | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Financial liabilities at fair value | kr (96) | kr (113) | |
Level 3 | Debt securities issued | Other | Discounted cash flow | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Credit spreads liabilities (in basis points) | 10 | 10 | |
Sensitivity impact on total comprehensive income | kr 3 | kr 3 | |
Level 3 | Debt securities issued | Other | Discounted cash flow | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Credit spreads liabilities (in basis points) | (10) | (10) | |
Sensitivity impact on total comprehensive income | kr (3) | kr (3) | |
Level 3 | Debt securities issued | Other | Option Model | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | 0.53 | 0.63 | |
Sensitivity impact on total comprehensive income | kr (1) | kr 0 | |
Level 3 | Debt securities issued | Other | Option Model | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | (0.01) | (0.05) | |
Sensitivity impact on total comprehensive income | kr 1 | kr 0 |
Financial assets and liabilit_9
Financial assets and liabilities at fair value - Fair value related to credit risk (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CVA/DVA, net | |||
Fair value related to credit risk | |||
Fair value originating from credit risk (- liabilities increase/ + liabilities decrease) | kr (29) | kr (8) | |
The period's change in fair value originating from credit risk (+ income/ - loss) | (21) | 6 | kr 9 |
OCA | |||
Fair value related to credit risk | |||
Fair value originating from credit risk (- liabilities increase/ + liabilities decrease) | (150) | (578) | |
The period's change in fair value originating from credit risk (+ income/ - loss) | kr 374 | kr (195) | kr 1 |
Derivatives and hedge account_3
Derivatives and hedge accounting - Categories (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Sub-classifications of financial information | ||
Assets Fair value | kr 6,529 | kr 7,803 |
Liabilities Fair value | 21,934 | 16,480 |
Economic hedges | ||
Sub-classifications of financial information | ||
Assets Fair value | 4,552 | 4,354 |
Liabilities Fair value | 15,584 | 10,830 |
Fair-value hedges | ||
Sub-classifications of financial information | ||
Assets Fair value | 1,977 | 3,449 |
Liabilities Fair value | 6,350 | 5,650 |
Derivatives | ||
Sub-classifications of financial information | ||
Nominal amounts | 457,772 | 397,465 |
Derivatives | Economic hedges | ||
Sub-classifications of financial information | ||
Nominal amounts | 276,175 | 223,435 |
Derivatives | Fair-value hedges | ||
Sub-classifications of financial information | ||
Nominal amounts | 181,598 | 174,030 |
Interest rate-related contracts | ||
Sub-classifications of financial information | ||
Assets Fair value | 3,842 | 3,781 |
Liabilities Fair value | 10,207 | 9,132 |
Interest rate-related contracts | Economic hedges | ||
Sub-classifications of financial information | ||
Assets Fair value | 2,767 | 2,603 |
Liabilities Fair value | 7,479 | 6,358 |
Interest rate-related contracts | Fair-value hedges | ||
Sub-classifications of financial information | ||
Assets Fair value | 1,075 | 1,178 |
Liabilities Fair value | 2,728 | 2,774 |
Interest rate-related contracts | Derivatives | ||
Sub-classifications of financial information | ||
Nominal amounts | 280,808 | 245,788 |
Interest rate-related contracts | Derivatives | Economic hedges | ||
Sub-classifications of financial information | ||
Nominal amounts | 129,470 | 119,239 |
Interest rate-related contracts | Derivatives | Fair-value hedges | ||
Sub-classifications of financial information | ||
Nominal amounts | 151,338 | 126,549 |
Currency-related contracts | ||
Sub-classifications of financial information | ||
Assets Fair value | 2,630 | 3,772 |
Liabilities Fair value | 8,799 | 6,879 |
Currency-related contracts | Economic hedges | ||
Sub-classifications of financial information | ||
Assets Fair value | 1,728 | 1,501 |
Liabilities Fair value | 5,177 | 4,003 |
Currency-related contracts | Fair-value hedges | ||
Sub-classifications of financial information | ||
Assets Fair value | 902 | 2,271 |
Liabilities Fair value | 3,622 | 2,876 |
Currency-related contracts | Derivatives | ||
Sub-classifications of financial information | ||
Nominal amounts | 162,870 | 139,614 |
Currency-related contracts | Derivatives | Economic hedges | ||
Sub-classifications of financial information | ||
Nominal amounts | 132,611 | 92,133 |
Currency-related contracts | Derivatives | Fair-value hedges | ||
Sub-classifications of financial information | ||
Nominal amounts | 30,260 | 47,481 |
Equity-related contracts | ||
Sub-classifications of financial information | ||
Assets Fair value | 57 | 250 |
Liabilities Fair value | 2,755 | 303 |
Equity-related contracts | Economic hedges | ||
Sub-classifications of financial information | ||
Assets Fair value | 57 | 250 |
Liabilities Fair value | 2,755 | 303 |
Equity-related contracts | Derivatives | ||
Sub-classifications of financial information | ||
Nominal amounts | 16,014 | 13,246 |
Equity-related contracts | Derivatives | Economic hedges | ||
Sub-classifications of financial information | ||
Nominal amounts | 16,014 | 13,246 |
Contracts related to commodities, credit risk, etc. | ||
Sub-classifications of financial information | ||
Liabilities Fair value | 173 | 166 |
Contracts related to commodities, credit risk, etc. | Economic hedges | ||
Sub-classifications of financial information | ||
Liabilities Fair value | 173 | 166 |
Contracts related to commodities, credit risk, etc. | Derivatives | ||
Sub-classifications of financial information | ||
Nominal amounts | (1,920) | (1,183) |
Contracts related to commodities, credit risk, etc. | Derivatives | Economic hedges | ||
Sub-classifications of financial information | ||
Nominal amounts | kr (1,920) | kr (1,183) |
Derivatives and hedge account_4
Derivatives and hedge accounting - Maturity analysis (Details) kr in Millions | Dec. 31, 2018SEK (kr) | Dec. 31, 2017SEK (kr) |
Fair-value hedges | Not later than one month | ||
Derivatives used as fair-value hedge | ||
Cash inflows (assets) | kr 261 | kr 47 |
Cash outflows (liabilities) | (99) | 8 |
Net cash inflows | 162 | 55 |
Fair-value hedges | Later than one month and not later than three months | ||
Derivatives used as fair-value hedge | ||
Cash inflows (assets) | 518 | 238 |
Cash outflows (liabilities) | (1,064) | 56 |
Net cash inflows | (546) | 294 |
Fair-value hedges | Later than three months and not later than one year | ||
Derivatives used as fair-value hedge | ||
Cash inflows (assets) | 1,138 | 700 |
Cash outflows (liabilities) | (1,095) | (977) |
Net cash inflows | 43 | (277) |
Fair-value hedges | Between 1 and 5 years | ||
Derivatives used as fair-value hedge | ||
Cash inflows (assets) | 2,311 | 3,428 |
Cash outflows (liabilities) | (4,721) | (1,526) |
Net cash inflows | (2,410) | 1,902 |
Fair-value hedges | More than 5 years | ||
Derivatives used as fair-value hedge | ||
Cash inflows (assets) | 1,858 | 459 |
Cash outflows (liabilities) | (343) | (869) |
Net cash inflows | kr 1,515 | kr (410) |
Interest rate-related contracts | Hedge of fixed rate assets | Not later than one month | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 40 | |
Interest rate-related contracts | Hedge of fixed rate assets | Later than one month and not later than three months | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 40 | |
Interest rate-related contracts | Hedge of fixed rate assets | Later than three months and not later than one year | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 220 | |
Interest rate-related contracts | Hedge of fixed rate assets | Between 1 and 5 years | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 6,769 | |
Interest rate-related contracts | Hedge of fixed rate assets | More than 5 years | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 6,234 | |
Interest rate-related contracts | Hedge of fixed rate liabilities | Not later than one month | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 10 | |
Interest rate-related contracts | Hedge of fixed rate liabilities | Later than one month and not later than three months | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 8,967 | |
Interest rate-related contracts | Hedge of fixed rate liabilities | Later than three months and not later than one year | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 34,248 | |
Interest rate-related contracts | Hedge of fixed rate liabilities | Between 1 and 5 years | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 100,167 | |
Interest rate-related contracts | Hedge of fixed rate liabilities | More than 5 years | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 3,798 | |
Currency-related contracts | Hedge of fixed rate assets | Not later than one month | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 3 | |
Currency-related contracts | Hedge of fixed rate assets | Later than one month and not later than three months | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 12 | |
Currency-related contracts | Hedge of fixed rate assets | Later than three months and not later than one year | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 545 | |
Currency-related contracts | Hedge of fixed rate assets | Between 1 and 5 years | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 2,195 | |
Currency-related contracts | Hedge of fixed rate assets | More than 5 years | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 191 | |
Currency-related contracts | Hedge of fixed rate liabilities | Later than one month and not later than three months | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 3,317 | |
Currency-related contracts | Hedge of fixed rate liabilities | Later than three months and not later than one year | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 3,672 | |
Currency-related contracts | Hedge of fixed rate liabilities | Between 1 and 5 years | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 13,936 | |
Currency-related contracts | Hedge of fixed rate liabilities | More than 5 years | ||
Derivatives used as fair-value hedge | ||
Nominal amount of hedging instrument | 5,990 |
Derivatives and hedge account_5
Derivatives and hedge accounting - Carrying amount of hedged items in fair value hedges (Details) - Fair-value hedges kr in Millions | Dec. 31, 2018SEK (kr) |
Carrying amounts of hedge items | |
Book value assets | kr 17,354 |
Fair value hedge adjustments, assets | 1,150 |
Book value liabilities | 163,172 |
Fair value hedge adjustments, liabilities | 1,000 |
Loans in the form of interest-bearing securities | |
Carrying amounts of hedge items | |
Book value assets | 4,244 |
Fair value hedge adjustments, assets | 499 |
Loans to credit institutions | |
Carrying amounts of hedge items | |
Book value assets | 206 |
Fair value hedge adjustments, assets | 3 |
Loans to the public | |
Carrying amounts of hedge items | |
Book value assets | 12,904 |
Fair value hedge adjustments, assets | 648 |
Debt securities issued | |
Carrying amounts of hedge items | |
Book value liabilities | 163,172 |
Fair value hedge adjustments, liabilities | kr 1,000 |
Derivatives and hedge account_6
Derivatives and hedge accounting - Cash-flow hedges reclassified to profit or loss (Details) - Cash-flow hedges - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash-flow hedges reclassified to profit or loss during the year | ||
Interest income | kr 25 | kr 91 |
Total | kr 25 | kr 91 |
Derivatives and hedge account_7
Derivatives and hedge accounting - Offsetting (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets subject to offsetting, enforceable master netting arrangements and similar agreements | ||
Gross amounts of recognized financial assets | kr 7,200 | kr 7,803 |
Amounts offset in the statement of financial position | (671) | |
Net amounts of financial assets presented in the statement of financial position | 6,529 | 7,803 |
Amounts subject to an enforceable master netting arrangement or similar agreement not offset in the statement of financial position related to: | ||
Financial instruments | (4,324) | (5,713) |
Cash collateral received | (1,805) | (1,784) |
Net amount | 400 | 306 |
Financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements | ||
Gross amounts of recognized financial liabilities | 22,648 | 16,480 |
Amounts offset in the statement of financial position | (714) | |
Net amounts of financial liabilities presented in the statement of financial position | 21,934 | 16,480 |
Amounts subject to an enforceable master netting arrangement or similar agreement not offset in the statement of financial position related to: | ||
Financial instruments | (4,324) | (5,713) |
Cash collateral paid | (15,537) | (9,031) |
Net amount | kr 2,073 | kr 1,736 |
Shares (Details)
Shares (Details) - SEK (kr) kr in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Shares | |||||
Net profit for the year | [1] | kr 648,000 | kr 772,000 | kr 780,000 | |
Share capital | 3,990,000 | 3,990,000 | |||
Venantius AB | |||||
Shares | |||||
Losses on wind down of subsidiary | kr 2,000 | ||||
Net profit for the year | 10,000 | ||||
Dividends to parent company | 1,000 | ||||
Book value | kr 24,000 | ||||
Number of shares | 5,000,500 | ||||
SEKETT AB | |||||
Shares | |||||
Share capital | 50 | ||||
Book value | kr 0 | ||||
Number of shares | 50 | ||||
[1] | The entire profit is attributable to the shareholder of the Parent Company. |
Other assets (Details)
Other assets (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Other assets. | ||
Claim against the State for CIRR loans and concessionary loans | kr 3,915 | kr 3,309 |
Cash receivables, funding operations | 960 | 198 |
Other | 105 | 49 |
Total | kr 4,980 | kr 3,556 |
Prepaid expenses and accrued _3
Prepaid expenses and accrued revenues (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Prepaid expenses and accrued revenues | ||
Interest income accrued | kr 2,643 | kr 2,075 |
Prepaid expenses and other accrued revenues | 14 | 16 |
Total | kr 2,657 | kr 2,091 |
Debt (Details)
Debt (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Debt | ||
Total debt excluding debt securities issued | kr 2,247 | kr 2,317 |
Total debt securities issued | 255,600 | 222,516 |
Total | 257,847 | 224,833 |
SKR | ||
Debt | ||
Total | 2,098 | 1,116 |
USD | ||
Debt | ||
Total | 166,827 | 119,112 |
JPY | ||
Debt | ||
Total | 34,929 | 32,988 |
EUR | ||
Debt | ||
Total | 21,188 | 29,191 |
Other | ||
Debt | ||
Total | 32,805 | 42,426 |
Exchange-rate related contracts | ||
Debt | ||
Total debt securities issued | 2,097 | 33,016 |
Total | 2,097 | 33,016 |
Interest rate related contracts | ||
Debt | ||
Total debt excluding debt securities issued | 2,247 | 2,317 |
Total debt securities issued | 252,624 | 188,607 |
Total | 254,871 | 190,924 |
Equity related contracts | ||
Debt | ||
Total debt securities issued | 783 | 779 |
Total | 783 | 779 |
Contracts related to raw materials, credit risk etc | ||
Debt | ||
Total debt securities issued | 96 | 114 |
Total | kr 96 | kr 114 |
Debt - Major borrowing programs
Debt - Major borrowing programs (Details) kr in Millions | Dec. 31, 2018USD ($) | Dec. 31, 2018SEK (kr) | Dec. 31, 2017SEK (kr) |
Unlimited Euro Medium-Term Note Programme | |||
Debt | |||
Value outstanding | kr 99,710 | kr 98,189 | |
Unlimited SEC-registered U.S. Medium-Term Note Programme | |||
Debt | |||
Value outstanding | 143,109 | 111,444 | |
Unlimited Swedish Medium-Term Note Programme | |||
Debt | |||
Value outstanding | 261 | 256 | |
Unlimited MTN/STN AUD Debt Issuance Programme | |||
Debt | |||
Value outstanding | 3,875 | 3,607 | |
USD 3,000,000,000 U.S. Commercial Paper Programme | |||
Debt | |||
Value outstanding | 4,723 | kr 1,637 | |
Principal amount | $ | $ 3,000,000,000 | ||
USD 4,000,000,000 Euro-Commercial Paper Programme | |||
Debt | |||
Value outstanding | kr 1,961 | ||
Principal amount | $ | $ 4,000,000,000 |
Debt - Liabilities in financing
Debt - Liabilities in financing activities (Details) kr in Millions | 12 Months Ended |
Dec. 31, 2018SEK (kr) | |
Liabilities in financing activities | |
Liabilities in financing activities at beginning of year | kr 235,550 |
Changes in liabilities arising from financing activities | |
Cash flow | 24,610 |
Exchange-rate difference | 13,044 |
Unrealized changes in fair value | 16 |
Liabilities in financing activities at end of year | 273,220 |
Senior debt | |
Liabilities in financing activities | |
Liabilities in financing activities at beginning of year | 224,833 |
Changes in liabilities arising from financing activities | |
Cash flow | 25,102 |
Exchange-rate difference | 15,997 |
Unrealized changes in fair value | (8,085) |
Liabilities in financing activities at end of year | 257,847 |
Subordinated securities issued | |
Liabilities in financing activities | |
Liabilities in financing activities at beginning of year | 2,040 |
Changes in liabilities arising from financing activities | |
Cash flow | (2,322) |
Exchange-rate difference | 220 |
Unrealized changes in fair value | 62 |
Derivatives | |
Liabilities in financing activities | |
Liabilities in financing activities at beginning of year | 8,677 |
Changes in liabilities arising from financing activities | |
Cash flow | 1,830 |
Exchange-rate difference | (3,173) |
Unrealized changes in fair value | 8,039 |
Liabilities in financing activities at end of year | kr 15,373 |
Other liabilities (Details)
Other liabilities (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Other liabilities | ||
Cash payables, debt purchases | kr 682 | kr 668 |
Other | 387 | 158 |
Total | kr 1,069 | kr 826 |
Accrued expenses and prepaid _3
Accrued expenses and prepaid revenues (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accrued expenses and prepaid revenues. | ||
Interest expenses accrued | kr 2,542 | kr 2,023 |
Other accrued expenses and prepaid revenues | 41 | 40 |
Total | kr 2,583 | kr 2,063 |
Provisions (Details)
Provisions (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Provisions | ||||
Pension liabilities (see Note 5) | kr 80 | kr 40 | kr 38 | kr 17 |
Long term employee benefit | 3 | 4 | ||
Off balance, expected credit losses | 2 | |||
Termination reserve | 1 | |||
Total | kr 85 | kr 45 |
Subordinated debt securities (D
Subordinated debt securities (Details) kr in Millions, $ in Millions | Nov. 14, 2018USD ($) | Nov. 30, 2018USD ($) | Dec. 31, 2018SEK (kr) | Dec. 31, 2017SEK (kr) |
Subordinated debt securities | ||||
Subordinated liabilities | kr 2,040 | |||
Interest expenses accrued | kr 2,542 | 2,023 | ||
Redemption of subordinated liabilities | $ | $ 250 | |||
Foreign currencies | ||||
Subordinated debt securities | ||||
Subordinated liabilities | 2,040 | |||
Resettable Dated Subordinated Instruments | Fixed interest rate | ||||
Subordinated debt securities | ||||
Subordinated liabilities | 2,040 | |||
Interest expense | kr 54 | 61 | ||
Interest expenses accrued | kr 8 | |||
Redemption of subordinated liabilities | $ | $ 250 |
Equity - Components of Equity (
Equity - Components of Equity (Details) - SEK (kr) kr / shares in Units, kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1],[2] | Dec. 31, 2015 | ||
Equity | |||||||
Share capital | kr 3,990 | kr 3,990 | |||||
Reserves | |||||||
Hedge reserve | 6 | 25 | |||||
Fair value reserve | 9 | ||||||
Own credit risk | (117) | ||||||
Defined benefit plans | (42) | (4) | |||||
Retained earnings | 14,402 | 13,554 | |||||
Total equity | kr 18,239 | [1],[2] | kr 17,574 | [1],[2] | kr 17,136 | kr 16,828 | |
Total number of shares | 3,990,000 | ||||||
Quota value | kr 1,000 | ||||||
[1] | See Note 23. | ||||||
[2] | The entire equity is attributable to the shareholder of the Parent Company. |
Equity - Restricted and unrestr
Equity - Restricted and unrestricted equity (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | [1],[2] | Dec. 31, 2015 | ||
Equity | kr 18,239 | [1],[2] | kr 17,574 | [1],[2] | kr 17,136 | kr 16,828 | |
Restricted equity | |||||||
Equity | 5,240 | 6,122 | |||||
Unrestricted equity | |||||||
Equity | kr 12,999 | kr 11,452 | |||||
[1] | See Note 23. | ||||||
[2] | The entire equity is attributable to the shareholder of the Parent Company. |
Equity - Proposal for distribut
Equity - Proposal for distribution of profits (Details) - SEK (kr) kr / shares in Units, kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Equity | ||
Profit at the disposal of the annual general meeting | kr 13,054 | |
Proposed dividends | 194 | kr 232 |
Remaining disposable funds to be carried forward | kr 12,860 | |
Proposed dividends per share | kr 48.70 |
Pledged assets and contingent_3
Pledged assets and contingent liabilities (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Collateral provided | ||
Cash collateral under the security agreements for derivative contracts | kr 16,374 | kr 10,314 |
Contingent liabilities | ||
Guarantee commitments | 4,032 | 3,360 |
Commitments | ||
Committed undisbursed loans | 50,814 | 72,914 |
Binding offers | kr 744 | kr 1,211 |
CIRR-system - Subclassification
CIRR-system - Subclassifications of financial information (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||||
Sub-classifications of financial information | |||||||
Concessionary loans outstanding | kr 663 | kr 754 | |||||
Result of previous concessionary credit program | (42) | (48) | kr 53 | ||||
Administrative remuneration for concessionary loans | (2) | (2) | (2) | ||||
Comprehensive income | |||||||
Interest income | 5,153 | 3,896 | 3,188 | ||||
Interest expenses | (3,711) | (2,213) | (1,441) | ||||
Net interest income | 1,442 | 1,683 | 1,747 | ||||
Foreign exchange effects | (3) | 0 | (2) | ||||
Financial position for CIRR-system | |||||||
Cash and cash equivalents | 2,416 | [1] | 1,231 | [1] | 7,054 | [1] | kr 2,258 |
Derivatives | 6,529 | 7,803 | |||||
Other assets | 4,980 | 3,556 | |||||
Prepaid expenses and accrued revenues | 2,657 | 2,091 | |||||
Total assets | 302,033 | 264,392 | |||||
Derivatives | 21,934 | 16,480 | |||||
Accrued expenses and prepaid revenues | 2,583 | 2,063 | |||||
Total liabilities and equity | 302,033 | 264,392 | |||||
Committed undisbursed loans | 50,814 | 72,914 | |||||
Binding offers | 744 | 1,211 | |||||
CIRR-System | |||||||
Comprehensive income | |||||||
Interest income | 1,624 | 1,343 | 1,185 | ||||
Interest expenses | (1,480) | (1,115) | (961) | ||||
Net interest income | 144 | 228 | 224 | ||||
Interest compensation | 20 | 26 | 121 | ||||
Foreign exchange effects | 9 | (6) | 4 | ||||
Profit before compensation to SEK | 173 | 248 | 349 | ||||
Administrative remuneration to SEK | (155) | (123) | (114) | ||||
Operating profit CIRR-system | 18 | 125 | 235 | ||||
Reimbursement to (-) / from (+) the State | (18) | (125) | kr (235) | ||||
Financial position for CIRR-system | |||||||
Cash and cash equivalents | 10 | ||||||
Loans | 69,922 | 49,124 | |||||
Derivatives | 502 | 522 | |||||
Other assets | 4,090 | 3,472 | |||||
Prepaid expenses and accrued revenues | 561 | 364 | |||||
Total assets | 75,075 | 53,492 | |||||
Liabilities | 70,144 | 49,252 | |||||
Derivatives | 4,408 | 3,789 | |||||
Accrued expenses and prepaid revenues | 523 | 451 | |||||
Total liabilities and equity | 75,075 | 53,492 | |||||
Committed undisbursed loans | 47,664 | 69,161 | |||||
Binding offers | kr 616 | kr 628 | |||||
[1] | Cash and cash equivalents include, in this context, cash at banks that can be immediately converted into cash and short-term deposits for which the time to maturity does not exceed three months from trade date. See Note 11. |
Capital adequacy - Capital adeq
Capital adequacy - Capital adequacy (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Capital adequacy | ||
Common Equity Tier 1 ratio | 20.10% | 20.60% |
Tier 1 capital ratio | 20.10% | 20.60% |
Total capital ratio | 20.10% | 23.00% |
Minimum requirement of Common Equity Tier 1 capital | 4.50% | 4.50% |
Minimum requirement of Tier 1 capital | 6.00% | |
Minimum requirement of total Own Funds | 8.00% | |
Addition to Common Equity Tier 1 capital ratio | 3.50% | |
Parent Company | ||
Capital adequacy | ||
Common Equity Tier 1 ratio | 20.10% | 20.60% |
Tier 1 capital ratio | 20.10% | 20.60% |
Total capital ratio | 20.10% | 23.00% |
Institution specific Common Equity Tier 1 capital requirement incl. of buffers | 8.50% | 8.40% |
Institution specific Common Equity Tier 1 capital requirement incl. of buffers, of which Common Equity Tier 1 capital requirement | 4.50% | 4.50% |
Institution specific Common Equity Tier 1 capital requirement incl. of buffers, of which capital conservation buffer | 2.50% | 2.50% |
Institution specific Common Equity Tier 1 capital requirement incl. of buffers, of which countercyclical buffer | 1.50% | 1.40% |
Common Equity Tier 1 capital available as a buffer | 12.10% | 14.60% |
Total capital ratio according to Basel I-floor | 21.90% |
Capital adequacy - Own funds (D
Capital adequacy - Own funds (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of objectives, policies and processes for managing capital | ||
Common Equity Tier 1 (CET1) capital before regulatory adjustments | kr 17,342 | |
Total regulatory adjustments to Common Equity Tier 1 capital | (106) | |
Total Common Equity Tier-1 capital | 17,236 | |
Total Tier-1 capital | 17,236 | |
Tier 2-eligible subordinated debt | 2,049 | |
Total Tier 2 capital | 2,049 | |
Own funds | 19,285 | |
Total Own funds according to Basel I floor | 19,350 | |
IRB approach | ||
Disclosure of objectives, policies and processes for managing capital | ||
Threshold percentage to increase own funds | 0.60% | |
Parent Company | ||
Disclosure of objectives, policies and processes for managing capital | ||
Common Equity Tier 1 (CET1) capital before regulatory adjustments | kr 18,100 | |
Total regulatory adjustments to Common Equity Tier 1 capital | (569) | |
Total Common Equity Tier-1 capital | 17,531 | |
Total Tier-1 capital | 17,531 | |
Own funds | 17,531 | |
Share capital | ||
Disclosure of objectives, policies and processes for managing capital | ||
Common Equity Tier 1 (CET1) capital before regulatory adjustments | 3,990 | |
Share capital | Parent Company | ||
Disclosure of objectives, policies and processes for managing capital | ||
Common Equity Tier 1 (CET1) capital before regulatory adjustments | 3,990 | |
Retained earnings | ||
Disclosure of objectives, policies and processes for managing capital | ||
Common Equity Tier 1 (CET1) capital before regulatory adjustments | 12,782 | |
Retained earnings | Parent Company | ||
Disclosure of objectives, policies and processes for managing capital | ||
Common Equity Tier 1 (CET1) capital before regulatory adjustments | 11,239 | |
Accumulated other comprehensive income and other reserves | ||
Disclosure of objectives, policies and processes for managing capital | ||
Common Equity Tier 1 (CET1) capital before regulatory adjustments | 30 | |
Accumulated other comprehensive income and other reserves | Parent Company | ||
Disclosure of objectives, policies and processes for managing capital | ||
Common Equity Tier 1 (CET1) capital before regulatory adjustments | 1,256 | |
Independently reviewed profit net of any foreseeable charge or dividend | ||
Disclosure of objectives, policies and processes for managing capital | ||
Common Equity Tier 1 (CET1) capital before regulatory adjustments | 540 | |
Independently reviewed profit net of any foreseeable charge or dividend | Parent Company | ||
Disclosure of objectives, policies and processes for managing capital | ||
Common Equity Tier 1 (CET1) capital before regulatory adjustments | 1,615 | |
Additional value adjustments due to prudent valuation | ||
Disclosure of objectives, policies and processes for managing capital | ||
Total regulatory adjustments to Common Equity Tier 1 capital | (396) | |
Additional value adjustments due to prudent valuation | Parent Company | ||
Disclosure of objectives, policies and processes for managing capital | ||
Total regulatory adjustments to Common Equity Tier 1 capital | (496) | |
Intangible assets | ||
Disclosure of objectives, policies and processes for managing capital | ||
Total regulatory adjustments to Common Equity Tier 1 capital | (66) | |
Intangible assets | Parent Company | ||
Disclosure of objectives, policies and processes for managing capital | ||
Total regulatory adjustments to Common Equity Tier 1 capital | (43) | |
Hedge reserve | ||
Disclosure of objectives, policies and processes for managing capital | ||
Total regulatory adjustments to Common Equity Tier 1 capital | (25) | |
Hedge reserve | Parent Company | ||
Disclosure of objectives, policies and processes for managing capital | ||
Total regulatory adjustments to Common Equity Tier 1 capital | (6) | |
Own Credit risk | ||
Disclosure of objectives, policies and processes for managing capital | ||
Total regulatory adjustments to Common Equity Tier 1 capital | 446 | |
Own Credit risk | Parent Company | ||
Disclosure of objectives, policies and processes for managing capital | ||
Total regulatory adjustments to Common Equity Tier 1 capital | 112 | |
Negative amounts resulting from the calculation of expected loss amounts | ||
Disclosure of objectives, policies and processes for managing capital | ||
Total regulatory adjustments to Common Equity Tier 1 capital | kr (65) | |
Negative amounts resulting from the calculation of expected loss amounts | Parent Company | ||
Disclosure of objectives, policies and processes for managing capital | ||
Total regulatory adjustments to Common Equity Tier 1 capital | kr (136) |
Capital adequacy - Minimum capi
Capital adequacy - Minimum capital requirements exclusive of buffers (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of credit risk exposure | ||
EAD | kr 321,303 | kr 305,659 |
Risk exposure amount | 87,054 | 83,831 |
Minimum capital requirements | 6,964 | 6,707 |
Risk exposure amount adjustment according to Basel I floor | 4,503 | |
Minimum capital requirement adjustment according to Basel I floor | 360 | |
Total risk exposure amount including Basel I floor | 88,334 | |
Total minimum capital requirement including Basel I floor | 7,067 | |
Credit valuation adjustment risk | ||
Disclosure of credit risk exposure | ||
Risk exposure amount | 2,037 | 1,989 |
Minimum capital requirements | 163 | 159 |
Currency risk | ||
Disclosure of credit risk exposure | ||
Risk exposure amount | 879 | 1,326 |
Minimum capital requirements | 70 | 106 |
Commodities risk | ||
Disclosure of credit risk exposure | ||
Risk exposure amount | 10 | 13 |
Minimum capital requirements | 1 | 1 |
Operational risk | ||
Disclosure of credit risk exposure | ||
Risk exposure amount | 3,066 | 3,284 |
Minimum capital requirements | 245 | 263 |
Standardized approach | Credit risk | ||
Disclosure of credit risk exposure | ||
EAD | 1,701 | 1,316 |
Risk exposure amount | 1,701 | 1,316 |
Minimum capital requirements | 136 | 105 |
Standardized approach | Credit risk | Corporates | ||
Disclosure of credit risk exposure | ||
EAD | 1,701 | 1,316 |
Risk exposure amount | 1,701 | 1,316 |
Minimum capital requirements | 136 | 105 |
IRB approach | Credit risk | ||
Disclosure of credit risk exposure | ||
EAD | 319,602 | 304,343 |
Risk exposure amount | 79,361 | 75,903 |
Minimum capital requirements | 6,349 | 6,073 |
IRB approach | Credit risk | Central governments | ||
Disclosure of credit risk exposure | ||
EAD | 171,572 | 161,429 |
Risk exposure amount | 9,905 | 9,331 |
Minimum capital requirements | 792 | 747 |
IRB approach | Credit risk | Financial institutions | ||
Disclosure of credit risk exposure | ||
EAD | 33,953 | 38,163 |
Risk exposure amount | 9,880 | 12,688 |
Minimum capital requirements | 790 | 1,015 |
IRB approach | Credit risk | Corporates | ||
Disclosure of credit risk exposure | ||
EAD | 113,987 | 104,630 |
Risk exposure amount | 59,486 | 53,763 |
Minimum capital requirements | 4,760 | 4,301 |
IRB approach | Credit risk | Non-credit-obligation assets | ||
Disclosure of credit risk exposure | ||
EAD | 90 | 121 |
Risk exposure amount | 90 | 121 |
Minimum capital requirements | 7 | 10 |
IRB approach | Counterparty risk in derivatives | Financial institutions | ||
Disclosure of credit risk exposure | ||
EAD | 4,525 | 4,131 |
Risk exposure amount | 1,668 | 1,574 |
Minimum capital requirements | 133 | 126 |
IRB approach | Specialized lending | Corporates | ||
Disclosure of credit risk exposure | ||
EAD | 3,400 | 2,478 |
Risk exposure amount | 2,157 | 1,643 |
Minimum capital requirements | kr 173 | kr 131 |
Capital adequacy - Credit risk
Capital adequacy - Credit risk by PD grade (Details) - SEK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Sep. 19, 2019 | Dec. 31, 2017 | Mar. 19, 2017 | |
Disclosure of credit risk exposure | ||||
EAD | kr 321,303 | kr 305,659 | ||
AAA to AA- | Central governments | ||||
Disclosure of credit risk exposure | ||||
EAD | 163,603 | 153,496 | ||
AAA to AA- | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
EAD | 10,323 | 9,368 | ||
AAA to AA- | Corporates | ||||
Disclosure of credit risk exposure | ||||
EAD | 7,154 | 7,871 | ||
A+ to A- | Central governments | ||||
Disclosure of credit risk exposure | ||||
EAD | 7,064 | 7,107 | ||
A+ to A- | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
EAD | 21,926 | 25,926 | ||
A+ to A- | Corporates | ||||
Disclosure of credit risk exposure | ||||
EAD | 22,379 | 18,515 | ||
BBB+ to BBB- | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
EAD | 1,345 | 1,722 | ||
BBB+ to BBB- | Corporates | ||||
Disclosure of credit risk exposure | ||||
EAD | 60,943 | 59,574 | ||
BB+ to B- | Central governments | ||||
Disclosure of credit risk exposure | ||||
EAD | 906 | 826 | ||
BB+ to B- | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
EAD | 359 | 1,149 | ||
BB+ to B- | Corporates | ||||
Disclosure of credit risk exposure | ||||
EAD | 20,072 | 16,153 | ||
CCC to D | Corporates | ||||
Disclosure of credit risk exposure | ||||
EAD | kr 39 | kr 40 | ||
Sweden | ||||
Disclosure of credit risk exposure | ||||
Countercyclical buffer | 2.50% | 2.00% | ||
Capital requirement exposure | 70.00% | 67.00% | ||
Foreign countries | ||||
Disclosure of credit risk exposure | ||||
Countercyclical buffer | 0.08% | 0.05% | ||
Standardized approach | Operational risk | ||||
Disclosure of credit risk exposure | ||||
Fiscal years for each business area to calculate income indicators | 3 years | |||
Minimum | AAA to AA- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.003% | 0.003% | ||
Minimum | AAA to AA- | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.01% | 0.01% | ||
Minimum | A+ to A- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.02% | 0.03% | ||
Minimum | A+ to A- | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.06% | 0.06% | ||
Minimum | BBB+ to BBB- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.12% | 0.12% | ||
Minimum | BBB+ to BBB- | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.17% | 0.17% | ||
Minimum | BB+ to B- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.54% | 0.53% | ||
Minimum | BB+ to B- | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.54% | 0.54% | ||
Minimum | CCC to D | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 27.27% | 25.29% | ||
Minimum | CCC to D | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 28.60% | 28.60% | ||
Minimum | Standardized approach | Operational risk | ||||
Disclosure of credit risk exposure | ||||
Capital requirement multiple factor | 15.00% | |||
Maximum | AAA to AA- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.01% | 0.02% | ||
Maximum | AAA to AA- | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.04% | 0.04% | ||
Maximum | A+ to A- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.07% | 0.07% | ||
Maximum | A+ to A- | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.12% | 0.12% | ||
Maximum | BBB+ to BBB- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.32% | 0.32% | ||
Maximum | BBB+ to BBB- | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.34% | 0.34% | ||
Maximum | BB+ to B- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 6.80% | 6.47% | ||
Maximum | BB+ to B- | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 8.40% | 8.40% | ||
Maximum | CCC to D | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 100.00% | 100.00% | ||
Maximum | CCC to D | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 100.00% | 100.00% | ||
Maximum | Standardized approach | Operational risk | ||||
Disclosure of credit risk exposure | ||||
Capital requirement multiple factor | 18.00% | |||
Average | AAA to AA- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.004% | 0.004% | ||
Average LGD in % | 45.00% | 45.00% | ||
Average risk weight in % | 4.60% | 4.70% | ||
Average | AAA to AA- | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.04% | 0.04% | ||
Average LGD in % | 43.80% | 41.60% | ||
Average risk weight in % | 20.10% | 22.30% | ||
Average | AAA to AA- | Corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.03% | 0.03% | ||
Average LGD in % | 45.00% | 45.00% | ||
Average risk weight in % | 18.60% | 18.50% | ||
Average | A+ to A- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.04% | 0.04% | ||
Average LGD in % | 45.00% | 45.00% | ||
Average risk weight in % | 18.80% | 19.00% | ||
Average | A+ to A- | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.08% | 0.08% | ||
Average LGD in % | 44.20% | 44.30% | ||
Average risk weight in % | 29.30% | 31.30% | ||
Average | A+ to A- | Corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.10% | 0.10% | ||
Average LGD in % | 45.00% | 45.00% | ||
Average risk weight in % | 33.00% | 33.60% | ||
Average | BBB+ to BBB- | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.23% | 0.23% | ||
Average LGD in % | 45.00% | 45.00% | ||
Average risk weight in % | 66.00% | 65.10% | ||
Average | BBB+ to BBB- | Corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.25% | 0.25% | ||
Average LGD in % | 45.00% | 45.00% | ||
Average risk weight in % | 51.50% | 51.30% | ||
Average | BB+ to B- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 1.50% | 0.90% | ||
Average LGD in % | 45.00% | 45.00% | ||
Average risk weight in % | 112.10% | 93.60% | ||
Average | BB+ to B- | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
PD in % | 1.31% | 0.84% | ||
Average LGD in % | 45.00% | 45.00% | ||
Average risk weight in % | 135.50% | 117.80% | ||
Average | BB+ to B- | Corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.79% | 0.81% | ||
Average LGD in % | 45.00% | 45.00% | ||
Average risk weight in % | 85.50% | 85.60% | ||
Average | CCC to D | Corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 63.11% | 65.59% | ||
Average LGD in % | 45.00% | 45.00% | ||
Average risk weight in % | 136.20% | 127.10% |
Capital adequacy - Leverage rat
Capital adequacy - Leverage ratio (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Capital adequacy. | ||
On-balance sheet exposures | kr 281,529 | kr 249,244 |
Off-balance sheet exposures | 33,159 | 42,168 |
Total exposure measure | kr 314,688 | kr 291,412 |
Leverage ratio | 5.60% | 5.90% |
Capital adequacy - Internally a
Capital adequacy - Internally assessed economic capital excl. buffer (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of credit risk exposure | ||
Capital requirements | kr 19,285 | |
Internal credit grades | ||
Disclosure of credit risk exposure | ||
Capital requirements | kr 10,470 | 10,788 |
Credit risk | Internal credit grades | ||
Disclosure of credit risk exposure | ||
Capital requirements | 7,008 | 6,898 |
Operational risk | Internal credit grades | ||
Disclosure of credit risk exposure | ||
Capital requirements | 239 | 142 |
Market risk | Internal credit grades | ||
Disclosure of credit risk exposure | ||
Capital requirements | 1,094 | 1,573 |
Other | Internal credit grades | ||
Disclosure of credit risk exposure | ||
Capital requirements | 163 | 170 |
Capital planning buffer | Internal credit grades | ||
Disclosure of credit risk exposure | ||
Capital requirements | kr 1,966 | kr 2,005 |
Risk information - Maximum expo
Risk information - Maximum exposure to credit risk (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Risk information | ||
Risk weight for standardized approach when no external rating is available | 100.00% | |
Financial assets at fair value through profit or loss | ||
Risk information | ||
Maximum exposure to credit risk | kr 64,226 | kr 7,936 |
Financial assets at amortized cost | ||
Risk information | ||
Maximum exposure to credit risk | 267,036 | |
Available-for-sale assets | ||
Risk information | ||
Maximum exposure to credit risk | 43,968 | |
Loans and receivable | ||
Risk information | ||
Maximum exposure to credit risk | 278,547 | |
Cash and cash equivalents | Financial assets at amortized cost | ||
Risk information | ||
Maximum exposure to credit risk | 2,686 | |
Cash and cash equivalents | Loans and receivable | ||
Risk information | ||
Maximum exposure to credit risk | 1,231 | |
Treasuries/government bonds | Financial assets at fair value through profit or loss | ||
Risk information | ||
Maximum exposure to credit risk | 11,124 | |
Treasuries/government bonds | Available-for-sale assets | ||
Risk information | ||
Maximum exposure to credit risk | 4,376 | |
Other interest-bearing securities except loans | Financial assets at fair value through profit or loss | ||
Risk information | ||
Maximum exposure to credit risk | 48,577 | 133 |
Other interest-bearing securities except loans | Available-for-sale assets | ||
Risk information | ||
Maximum exposure to credit risk | 39,592 | |
Loans in the form of interest-bearing securities | Financial assets at amortized cost | ||
Risk information | ||
Maximum exposure to credit risk | 36,303 | |
Loans in the form of interest-bearing securities | Loans and receivable | ||
Risk information | ||
Maximum exposure to credit risk | 40,558 | |
Loans to credit institutions | Financial assets at amortized cost | ||
Risk information | ||
Maximum exposure to credit risk | 12,543 | |
Loans to credit institutions | Loans and receivable | ||
Risk information | ||
Maximum exposure to credit risk | 23,209 | |
Loans to the public | Financial assets at amortized cost | ||
Risk information | ||
Maximum exposure to credit risk | 215,504 | |
Loans to the public | Loans and receivable | ||
Risk information | ||
Maximum exposure to credit risk | 213,549 | |
Derivatives | Financial assets at fair value through profit or loss | ||
Risk information | ||
Maximum exposure to credit risk | kr 4,525 | kr 7,803 |
Risk information - Credit expos
Risk information - Credit exposure (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Risk information | ||
Financial assets. | kr 294,327 | kr 258,657 |
Committed undisbursed loans | 50,814 | 72,914 |
AAA | ||
Risk information | ||
Financial assets. | 101,310 | 78,991 |
Committed undisbursed loans | 47,644 | 63,922 |
AA+ to A- | ||
Risk information | ||
Financial assets. | 105,408 | 95,770 |
Committed undisbursed loans | 1,626 | 978 |
BBB+ to BBB- | ||
Risk information | ||
Financial assets. | 65,598 | 65,426 |
Committed undisbursed loans | 1,253 | 6,452 |
BB+ to B- | ||
Risk information | ||
Financial assets. | 21,962 | 18,404 |
Committed undisbursed loans | 290 | 1,562 |
CCC to D | ||
Risk information | ||
Financial assets. | 49 | 66 |
Committed undisbursed loans | 1 | |
Cash and cash equivalents | ||
Risk information | ||
Financial assets. | 2,416 | 1,231 |
Cash and cash equivalents | AAA | ||
Risk information | ||
Financial assets. | 634 | 1,133 |
Cash and cash equivalents | AA+ to A- | ||
Risk information | ||
Financial assets. | 1,782 | 98 |
Treasuries/government bonds | ||
Risk information | ||
Financial assets. | 11,117 | 4,382 |
Treasuries/government bonds | AAA | ||
Risk information | ||
Financial assets. | 2,365 | 401 |
Treasuries/government bonds | AA+ to A- | ||
Risk information | ||
Financial assets. | 8,752 | 3,981 |
Other interest-bearing securities except loans | ||
Risk information | ||
Financial assets. | 48,665 | 39,807 |
Other interest-bearing securities except loans | AAA | ||
Risk information | ||
Financial assets. | 10,882 | 4,396 |
Other interest-bearing securities except loans | AA+ to A- | ||
Risk information | ||
Financial assets. | 32,331 | 34,295 |
Other interest-bearing securities except loans | BBB+ to BBB- | ||
Risk information | ||
Financial assets. | 5,452 | 1,116 |
Loans in the form of interest-bearing securities | ||
Risk information | ||
Financial assets. | 36,781 | 41,125 |
Loans in the form of interest-bearing securities | AA+ to A- | ||
Risk information | ||
Financial assets. | 8,182 | 9,636 |
Loans in the form of interest-bearing securities | BBB+ to BBB- | ||
Risk information | ||
Financial assets. | 24,488 | 27,434 |
Loans in the form of interest-bearing securities | BB+ to B- | ||
Risk information | ||
Financial assets. | 4,111 | 4,055 |
Loans to credit institutions | ||
Risk information | ||
Financial assets. | 27,725 | 23,198 |
Loans to credit institutions | AAA | ||
Risk information | ||
Financial assets. | 2,663 | 3,018 |
Loans to credit institutions | AA+ to A- | ||
Risk information | ||
Financial assets. | 23,161 | 15,766 |
Loans to credit institutions | BBB+ to BBB- | ||
Risk information | ||
Financial assets. | 1,480 | 3,229 |
Loans to credit institutions | BB+ to B- | ||
Risk information | ||
Financial assets. | 421 | 1,185 |
Loans to the public | ||
Risk information | ||
Financial assets. | 161,094 | 141,111 |
Loans to the public | AAA | ||
Risk information | ||
Financial assets. | 84,766 | 70,043 |
Loans to the public | AA+ to A- | ||
Risk information | ||
Financial assets. | 25,878 | 25,670 |
Loans to the public | BBB+ to BBB- | ||
Risk information | ||
Financial assets. | 32,971 | 32,168 |
Loans to the public | BB+ to B- | ||
Risk information | ||
Financial assets. | 17,430 | 13,164 |
Loans to the public | CCC to D | ||
Risk information | ||
Financial assets. | 49 | 66 |
Derivatives | ||
Risk information | ||
Financial assets. | 6,529 | 7,803 |
Derivatives | AA+ to A- | ||
Risk information | ||
Financial assets. | 5,322 | 6,324 |
Derivatives | BBB+ to BBB- | ||
Risk information | ||
Financial assets. | kr 1,207 | kr 1,479 |
Risk information - Net exposure
Risk information - Net exposure (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Sub-classifications of financial information | ||
Carrying amount of financial assets | kr 294,327 | kr 258,657 |
Cash collateral under the security agreements for derivative contracts | 16,374 | 10,314 |
Cash and cash equivalents | ||
Sub-classifications of financial information | ||
Carrying amount of financial assets | 2,416 | 1,231 |
Treasuries/government bonds | ||
Sub-classifications of financial information | ||
Carrying amount of financial assets | 11,117 | 4,382 |
Other interest-bearing securities except loans | ||
Sub-classifications of financial information | ||
Carrying amount of financial assets | 48,665 | 39,807 |
Loans in the form of interest-bearing securities | ||
Sub-classifications of financial information | ||
Carrying amount of financial assets | 36,781 | 41,125 |
Loans to credit institutions | ||
Sub-classifications of financial information | ||
Carrying amount of financial assets | 27,725 | 23,198 |
Loans to the public | ||
Sub-classifications of financial information | ||
Carrying amount of financial assets | 161,094 | 141,111 |
Derivatives | ||
Sub-classifications of financial information | ||
Carrying amount of financial assets | 6,529 | 7,803 |
Credit risk | ||
Sub-classifications of financial information | ||
Net exposure | 337,400 | 327,200 |
Adjustment to carrying amount from exposure | 17,500 | 13,000 |
Carrying amount | 354,900 | 340,200 |
Derivative exposure after netting | 3,700 | 3,600 |
Credit risk | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 169,600 | 167,100 |
Credit risk | Regional governments | ||
Sub-classifications of financial information | ||
Net exposure | 13,400 | 11,400 |
Credit risk | Multilateral development banks | ||
Sub-classifications of financial information | ||
Net exposure | 100 | 0 |
Credit risk | Public sector entity | ||
Sub-classifications of financial information | ||
Net exposure | 600 | 400 |
Credit risk | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | 34,200 | 38,600 |
Credit risk | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | 119,500 | 109,700 |
Credit risk | Financial assets | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | 17,600 | 13,000 |
Carrying amount of financial assets | 299,300 | 262,200 |
Credit risk | Financial assets | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 121,200 | 97,200 |
Credit risk | Financial assets | Regional governments | ||
Sub-classifications of financial information | ||
Net exposure | 13,400 | 11,400 |
Credit risk | Financial assets | Multilateral development banks | ||
Sub-classifications of financial information | ||
Net exposure | 100 | |
Credit risk | Financial assets | Public sector entity | ||
Sub-classifications of financial information | ||
Net exposure | 600 | 400 |
Credit risk | Financial assets | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | 33,300 | 36,800 |
Credit risk | Financial assets | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | 113,100 | 103,400 |
Credit risk | Cash and cash equivalents | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | (200) | 0 |
Carrying amount of financial assets | 2,400 | 1,200 |
Credit risk | Cash and cash equivalents | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 300 | 500 |
Credit risk | Cash and cash equivalents | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | 2,300 | 700 |
Credit risk | Treasuries/government bonds | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | 0 | 0 |
Carrying amount of financial assets | 11,100 | 4,400 |
Credit risk | Treasuries/government bonds | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 11,100 | 4,400 |
Credit risk | Other interest-bearing securities except loans | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | (100) | (200) |
Carrying amount of financial assets | 48,700 | 39,800 |
Credit risk | Other interest-bearing securities except loans | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 4,800 | 1,300 |
Credit risk | Other interest-bearing securities except loans | Regional governments | ||
Sub-classifications of financial information | ||
Net exposure | 7,000 | 4,900 |
Credit risk | Other interest-bearing securities except loans | Public sector entity | ||
Sub-classifications of financial information | ||
Net exposure | 600 | 400 |
Credit risk | Other interest-bearing securities except loans | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | 15,700 | 20,700 |
Credit risk | Other interest-bearing securities except loans | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | 20,700 | 12,700 |
Credit risk | Loans in the form of interest-bearing securities | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | (100) | (200) |
Carrying amount of financial assets | 36,800 | 41,100 |
Credit risk | Loans in the form of interest-bearing securities | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | 700 | 2,100 |
Credit risk | Loans in the form of interest-bearing securities | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | 36,200 | 39,200 |
Credit risk | Loans to credit institutions | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | 16,200 | 10,400 |
Carrying amount of financial assets | 27,700 | 23,200 |
Cash collateral under the security agreements for derivative contracts | 16,400 | 10,300 |
Credit risk | Loans to credit institutions | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 1,400 | 1,900 |
Credit risk | Loans to credit institutions | Regional governments | ||
Sub-classifications of financial information | ||
Net exposure | 5,500 | 5,800 |
Credit risk | Loans to credit institutions | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | 4,500 | 4,800 |
Credit risk | Loans to credit institutions | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | 100 | 300 |
Credit risk | Loans to the public | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | (1,100) | (800) |
Carrying amount of financial assets | 161,100 | 141,100 |
Credit risk | Loans to the public | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 99,500 | 85,600 |
Credit risk | Loans to the public | Regional governments | ||
Sub-classifications of financial information | ||
Net exposure | 900 | 700 |
Credit risk | Loans to the public | Multilateral development banks | ||
Sub-classifications of financial information | ||
Net exposure | 100 | |
Credit risk | Loans to the public | Public sector entity | ||
Sub-classifications of financial information | ||
Net exposure | 0 | |
Credit risk | Loans to the public | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | 5,600 | 4,400 |
Credit risk | Loans to the public | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | 56,100 | 51,200 |
Credit risk | Derivatives | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | 2,000 | 3,700 |
Carrying amount of financial assets | 6,500 | 7,800 |
Credit risk | Derivatives | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | 4,500 | 4,100 |
Credit risk | Derivatives | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | 0 | 0 |
Credit risk | Other assets | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | 900 | 100 |
Carrying amount of financial assets | 5,000 | 3,600 |
Credit risk | Other assets | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 4,100 | 3,500 |
Credit risk | Contingent liabilities and commitments | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | (100) | |
Contingent liabilities and commitments | 55,600 | 78,000 |
Credit risk | Contingent liabilities and commitments | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 48,400 | 69,900 |
Credit risk | Contingent liabilities and commitments | Public sector entity | ||
Sub-classifications of financial information | ||
Net exposure | 0 | |
Credit risk | Contingent liabilities and commitments | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | 900 | 1,800 |
Credit risk | Contingent liabilities and commitments | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | kr 6,400 | kr 6,300 |
Risk information - Total net ex
Risk information - Total net exposure (Details) - Credit risk - SEK (kr) kr in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Sub-classifications of financial information | ||
Net exposure | kr 337.4 | kr 327.2 |
Percentage of net exposures | 100.00% | 100.00% |
Central governments | ||
Sub-classifications of financial information | ||
Net exposure | kr 169.6 | kr 167.1 |
Percentage of net exposures | 50.30% | 51.10% |
Regional governments | ||
Sub-classifications of financial information | ||
Net exposure | kr 13.4 | kr 11.4 |
Percentage of net exposures | 4.00% | 3.50% |
Multilateral development banks | ||
Sub-classifications of financial information | ||
Net exposure | kr 0.1 | kr 0 |
Percentage of net exposures | 0.00% | 0.00% |
Public sector entity | ||
Sub-classifications of financial information | ||
Net exposure | kr 0.6 | kr 0.4 |
Percentage of net exposures | 0.20% | 0.10% |
Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | kr 34.2 | kr 38.6 |
Percentage of net exposures | 10.10% | 11.80% |
Corporates | ||
Sub-classifications of financial information | ||
Net exposure | kr 119.5 | kr 109.7 |
Percentage of net exposures | 35.40% | 33.50% |
Interest-bearing securities and lending | ||
Sub-classifications of financial information | ||
Net exposure | kr 277.1 | kr 245 |
Percentage of net exposures | 100.00% | 100.00% |
Interest-bearing securities and lending | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | kr 121.2 | kr 97.1 |
Percentage of net exposures | 43.80% | 39.60% |
Interest-bearing securities and lending | Regional governments | ||
Sub-classifications of financial information | ||
Net exposure | kr 13.4 | kr 11.4 |
Percentage of net exposures | 4.80% | 4.70% |
Interest-bearing securities and lending | Multilateral development banks | ||
Sub-classifications of financial information | ||
Net exposure | kr 0.1 | kr 0 |
Percentage of net exposures | 0.00% | 0.00% |
Interest-bearing securities and lending | Public sector entity | ||
Sub-classifications of financial information | ||
Net exposure | kr 0.6 | kr 0.4 |
Percentage of net exposures | 0.20% | 0.20% |
Interest-bearing securities and lending | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | kr 28.7 | kr 32.7 |
Percentage of net exposures | 10.40% | 13.30% |
Interest-bearing securities and lending | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | kr 113.1 | kr 103.4 |
Percentage of net exposures | 40.80% | 42.20% |
Undisbursed loans, derivatives, etc. | ||
Sub-classifications of financial information | ||
Net exposure | kr 60.3 | kr 82.2 |
Percentage of net exposures | 100.00% | 100.00% |
Undisbursed loans, derivatives, etc. | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | kr 48.4 | kr 70 |
Percentage of net exposures | 80.30% | 85.10% |
Undisbursed loans, derivatives, etc. | Multilateral development banks | ||
Sub-classifications of financial information | ||
Net exposure | kr 0 | |
Percentage of net exposures | 0.00% | |
Undisbursed loans, derivatives, etc. | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | kr 5.5 | kr 5.9 |
Percentage of net exposures | 9.10% | 7.20% |
Undisbursed loans, derivatives, etc. | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | kr 6.4 | kr 6.3 |
Percentage of net exposures | 10.60% | 7.70% |
Risk information - Gross exposu
Risk information - Gross exposure by region and class (Details) - Credit risk - SEK (kr) kr in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Risk information | ||
Gross exposure | kr 337.4 | kr 327.2 |
Central governments | ||
Risk information | ||
Gross exposure | 73.4 | 61.7 |
Regional governments | ||
Risk information | ||
Gross exposure | 8.8 | 5.5 |
Public sector entity | ||
Risk information | ||
Gross exposure | 0.6 | 0.4 |
Financial institutions | ||
Risk information | ||
Gross exposure | 33 | 36.9 |
Corporates | ||
Risk information | ||
Gross exposure | 221.6 | 222.7 |
Middle East/ Africa/Turkey | ||
Risk information | ||
Gross exposure | 25.9 | 25.4 |
Middle East/ Africa/Turkey | Central governments | ||
Risk information | ||
Gross exposure | 2.8 | 1.8 |
Middle East/ Africa/Turkey | Regional governments | ||
Risk information | ||
Gross exposure | 1.7 | 0.6 |
Middle East/ Africa/Turkey | Corporates | ||
Risk information | ||
Gross exposure | 21.4 | 23 |
Asia excl. Japan | ||
Risk information | ||
Gross exposure | 20.3 | 23.3 |
Asia excl. Japan | Central governments | ||
Risk information | ||
Gross exposure | 5.3 | 5.6 |
Asia excl. Japan | Financial institutions | ||
Risk information | ||
Gross exposure | 2.4 | 3.1 |
Asia excl. Japan | Corporates | ||
Risk information | ||
Gross exposure | 12.6 | 14.6 |
Japan | ||
Risk information | ||
Gross exposure | 5.7 | 4.2 |
Japan | Central governments | ||
Risk information | ||
Gross exposure | 4 | 4 |
Japan | Financial institutions | ||
Risk information | ||
Gross exposure | 0.5 | 0 |
Japan | Corporates | ||
Risk information | ||
Gross exposure | 1.2 | 0.2 |
North America | ||
Risk information | ||
Gross exposure | 61.1 | 62.6 |
North America | Central governments | ||
Risk information | ||
Gross exposure | 1.9 | |
North America | Financial institutions | ||
Risk information | ||
Gross exposure | 6.2 | 9.1 |
North America | Corporates | ||
Risk information | ||
Gross exposure | 53 | 53.5 |
Oceania | ||
Risk information | ||
Gross exposure | 1.1 | 1.2 |
Oceania | Financial institutions | ||
Risk information | ||
Gross exposure | 1.1 | 1.1 |
Oceania | Corporates | ||
Risk information | ||
Gross exposure | 0.1 | |
Latin America | ||
Risk information | ||
Gross exposure | 53.7 | 53.8 |
Latin America | Central governments | ||
Risk information | ||
Gross exposure | 43.7 | 42.7 |
Latin America | Financial institutions | ||
Risk information | ||
Gross exposure | 0.4 | 1.2 |
Latin America | Corporates | ||
Risk information | ||
Gross exposure | 9.6 | 9.9 |
Sweden | ||
Risk information | ||
Gross exposure | 109.6 | 97.8 |
Sweden | Central governments | ||
Risk information | ||
Gross exposure | 7.1 | 7.4 |
Sweden | Regional governments | ||
Risk information | ||
Gross exposure | 7 | 4.8 |
Sweden | Financial institutions | ||
Risk information | ||
Gross exposure | 12.3 | 11.3 |
Sweden | Corporates | ||
Risk information | ||
Gross exposure | 83.2 | 74.3 |
West Europe excl. Sweden | ||
Risk information | ||
Gross exposure | 55.1 | 51.4 |
West Europe excl. Sweden | Central governments | ||
Risk information | ||
Gross exposure | 8.6 | 0.2 |
West Europe excl. Sweden | Regional governments | ||
Risk information | ||
Gross exposure | 0.1 | 0.1 |
West Europe excl. Sweden | Public sector entity | ||
Risk information | ||
Gross exposure | 0.6 | 0.4 |
West Europe excl. Sweden | Financial institutions | ||
Risk information | ||
Gross exposure | 9.8 | 10.8 |
West Europe excl. Sweden | Corporates | ||
Risk information | ||
Gross exposure | 36 | 39.9 |
Central and East European countries | ||
Risk information | ||
Gross exposure | 4.9 | 7.5 |
Central and East European countries | Financial institutions | ||
Risk information | ||
Gross exposure | 0.3 | 0.3 |
Central and East European countries | Corporates | ||
Risk information | ||
Gross exposure | kr 4.6 | kr 7.2 |
Risk information - Net exposu_2
Risk information - Net exposure by region and class (Details) - Credit risk - SEK (kr) kr in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Risk information | ||
Net exposure | kr 337.4 | kr 327.2 |
Central governments | ||
Risk information | ||
Net exposure | 169.6 | 167.1 |
Regional governments | ||
Risk information | ||
Net exposure | 13.4 | 11.4 |
Multilateral development banks | ||
Risk information | ||
Net exposure | 0.1 | 0 |
Public sector entity | ||
Risk information | ||
Net exposure | 0.6 | 0.4 |
Financial institutions | ||
Risk information | ||
Net exposure | 34.2 | 38.6 |
Corporates | ||
Risk information | ||
Net exposure | 119.5 | 109.7 |
Middle East/ Africa/Turkey | ||
Risk information | ||
Net exposure | 4.6 | 4.9 |
Middle East/ Africa/Turkey | Corporates | ||
Risk information | ||
Net exposure | 4.6 | 4.9 |
Asia excl. Japan | ||
Risk information | ||
Net exposure | 6.2 | 7.3 |
Asia excl. Japan | Central governments | ||
Risk information | ||
Net exposure | 0.7 | 0.7 |
Asia excl. Japan | Financial institutions | ||
Risk information | ||
Net exposure | 2.4 | 3 |
Asia excl. Japan | Corporates | ||
Risk information | ||
Net exposure | 3.1 | 3.6 |
Japan | ||
Risk information | ||
Net exposure | 8 | 6.2 |
Japan | Central governments | ||
Risk information | ||
Net exposure | 4 | 4 |
Japan | Financial institutions | ||
Risk information | ||
Net exposure | 0.9 | 0.5 |
Japan | Corporates | ||
Risk information | ||
Net exposure | 3.1 | 1.7 |
North America | ||
Risk information | ||
Net exposure | 13.7 | 14.9 |
North America | Central governments | ||
Risk information | ||
Net exposure | 3.9 | 2.4 |
North America | Financial institutions | ||
Risk information | ||
Net exposure | 6.9 | 9.6 |
North America | Corporates | ||
Risk information | ||
Net exposure | 2.9 | 2.9 |
Oceania | ||
Risk information | ||
Net exposure | 1.1 | 1.2 |
Oceania | Financial institutions | ||
Risk information | ||
Net exposure | 1.1 | 1.2 |
Latin America | ||
Risk information | ||
Net exposure | 4.2 | 5.3 |
Latin America | Central governments | ||
Risk information | ||
Net exposure | 0.9 | 0.9 |
Latin America | Financial institutions | ||
Risk information | ||
Net exposure | 0.3 | 1.1 |
Latin America | Corporates | ||
Risk information | ||
Net exposure | 3 | 3.3 |
Sweden | ||
Risk information | ||
Net exposure | 241.4 | 235.4 |
Sweden | Central governments | ||
Risk information | ||
Net exposure | 139 | 145.1 |
Sweden | Regional governments | ||
Risk information | ||
Net exposure | 13.2 | 11.2 |
Sweden | Financial institutions | ||
Risk information | ||
Net exposure | 8.7 | 6.9 |
Sweden | Corporates | ||
Risk information | ||
Net exposure | 80.5 | 72.2 |
West Europe excl. Sweden | ||
Risk information | ||
Net exposure | 54.7 | 48.5 |
West Europe excl. Sweden | Central governments | ||
Risk information | ||
Net exposure | 18 | 10.9 |
West Europe excl. Sweden | Regional governments | ||
Risk information | ||
Net exposure | 0.2 | 0.2 |
West Europe excl. Sweden | Multilateral development banks | ||
Risk information | ||
Net exposure | 0.1 | 0 |
West Europe excl. Sweden | Public sector entity | ||
Risk information | ||
Net exposure | 0.6 | 0.4 |
West Europe excl. Sweden | Financial institutions | ||
Risk information | ||
Net exposure | 13.6 | 16 |
West Europe excl. Sweden | Corporates | ||
Risk information | ||
Net exposure | 22.2 | 21 |
Central and East European countries | ||
Risk information | ||
Net exposure | 3.5 | 3.5 |
Central and East European countries | Central governments | ||
Risk information | ||
Net exposure | 3.1 | 3.1 |
Central and East European countries | Financial institutions | ||
Risk information | ||
Net exposure | 0.3 | 0.3 |
Central and East European countries | Corporates | ||
Risk information | ||
Net exposure | kr 0.1 | kr 0.1 |
Risk information - Effect of cr
Risk information - Effect of credit risk mitigation (Details) - Credit risk - SEK (kr) kr in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Risk information | ||
Hedged exposures | kr 163.1 | kr 172.2 |
Unhedged exposures | 174.3 | 155 |
Gross exposure | 337.4 | 327.2 |
Subject to IFRS 9 impairment requrements | ||
Risk information | ||
Hedged exposures | 163.1 | |
Unhedged exposures | 105.3 | |
Gross exposure | 268.4 | |
Central governments | ||
Risk information | ||
Hedged exposures | 147.1 | 154.6 |
Central governments | Subject to IFRS 9 impairment requrements | ||
Risk information | ||
Hedged exposures | 147.1 | |
Central governments | Guarantee | Guarantees by the Swedish Export Credit Agency | ||
Risk information | ||
Hedged exposures | 131.8 | 137.5 |
Central governments | Guarantee | Guarantees by the Swedish Export Credit Agency | Subject to IFRS 9 impairment requrements | ||
Risk information | ||
Hedged exposures | 131.8 | |
Central governments | Guarantee | Guarantees by other export credit agencies | ||
Risk information | ||
Hedged exposures | 12 | 13.8 |
Central governments | Guarantee | Guarantees by other export credit agencies | Subject to IFRS 9 impairment requrements | ||
Risk information | ||
Hedged exposures | 12 | |
Central governments | Guarantee | Other guarantees | ||
Risk information | ||
Hedged exposures | 3.3 | 3.3 |
Central governments | Guarantee | Other guarantees | Subject to IFRS 9 impairment requrements | ||
Risk information | ||
Hedged exposures | 3.3 | |
Regional governments | ||
Risk information | ||
Hedged exposures | 6.3 | 6.5 |
Regional governments | Subject to IFRS 9 impairment requrements | ||
Risk information | ||
Hedged exposures | 6.3 | |
Multilateral development banks | ||
Risk information | ||
Hedged exposures | 0.1 | |
Multilateral development banks | Subject to IFRS 9 impairment requrements | ||
Risk information | ||
Hedged exposures | 0.1 | |
Financial institutions | ||
Risk information | ||
Hedged exposures | 6.9 | 8 |
Financial institutions | Subject to IFRS 9 impairment requrements | ||
Risk information | ||
Hedged exposures | 6.9 | |
Financial institutions | Credit default swap | ||
Risk information | ||
Hedged exposures | 1 | |
Financial institutions | Guarantee | ||
Risk information | ||
Hedged exposures | 6.9 | 7 |
Financial institutions | Guarantee | Subject to IFRS 9 impairment requrements | ||
Risk information | ||
Hedged exposures | 6.9 | |
Corporates | ||
Risk information | ||
Hedged exposures | 2.7 | 3.1 |
Corporates | Subject to IFRS 9 impairment requrements | ||
Risk information | ||
Hedged exposures | 2.7 | |
Corporates | Credit insurance from insurance companies | ||
Risk information | ||
Hedged exposures | 1.8 | 2.5 |
Corporates | Credit insurance from insurance companies | Subject to IFRS 9 impairment requrements | ||
Risk information | ||
Hedged exposures | 1.8 | |
Corporates | Guarantee | Other guarantees | ||
Risk information | ||
Hedged exposures | 0.9 | 0.6 |
Corporates | Guarantee | Other guarantees | Subject to IFRS 9 impairment requrements | ||
Risk information | ||
Hedged exposures | 0.9 | |
Central governments | ||
Risk information | ||
Hedged exposures | 50.9 | 49.3 |
Unhedged exposures | 22.5 | 12.4 |
Gross exposure | 73.4 | 61.7 |
Unhedged exposures - hedge issuer in same group as counterparty | 0.2 | 0.2 |
Central governments | Central governments | ||
Risk information | ||
Hedged exposures | 50.9 | 49.3 |
Central governments | Central governments | Guarantee | Guarantees by the Swedish Export Credit Agency | ||
Risk information | ||
Hedged exposures | 49.9 | 48.2 |
Central governments | Central governments | Guarantee | Guarantees by other export credit agencies | ||
Risk information | ||
Hedged exposures | 1 | 1.1 |
Central governments | Financial institutions | ||
Risk information | ||
Hedged exposures | 0 | |
Central governments | Financial institutions | Guarantee | ||
Risk information | ||
Hedged exposures | 0 | |
Regional governments | ||
Risk information | ||
Hedged exposures | 1.7 | 0.5 |
Unhedged exposures | 7.1 | 5 |
Gross exposure | 8.8 | 5.5 |
Regional governments | Central governments | ||
Risk information | ||
Hedged exposures | 1.7 | 0.5 |
Regional governments | Central governments | Guarantee | Guarantees by the Swedish Export Credit Agency | ||
Risk information | ||
Hedged exposures | 1.7 | 0.5 |
Regional governments | Regional governments | ||
Risk information | ||
Hedged exposures | 0 | |
Public sector entity | ||
Risk information | ||
Unhedged exposures | 0.6 | 0.4 |
Gross exposure | 0.6 | 0.4 |
Financial institutions | ||
Risk information | ||
Hedged exposures | 5.7 | 6.3 |
Unhedged exposures | 27.3 | 30.6 |
Gross exposure | 33 | 36.9 |
Financial institutions | Central governments | ||
Risk information | ||
Hedged exposures | 0.2 | 0.4 |
Financial institutions | Central governments | Guarantee | Guarantees by the Swedish Export Credit Agency | ||
Risk information | ||
Hedged exposures | 0.1 | 0.2 |
Financial institutions | Central governments | Guarantee | Guarantees by other export credit agencies | ||
Risk information | ||
Hedged exposures | 0.1 | 0.2 |
Financial institutions | Regional governments | ||
Risk information | ||
Hedged exposures | 5.5 | 5.9 |
Financial institutions | Financial institutions | ||
Risk information | ||
Hedged exposures | 0 | |
Financial institutions | Financial institutions | Guarantee | ||
Risk information | ||
Hedged exposures | 0 | |
Financial institutions | Corporates | ||
Risk information | ||
Hedged exposures | 0 | |
Financial institutions | Corporates | Guarantee | Other guarantees | ||
Risk information | ||
Hedged exposures | 0 | |
Corporates | ||
Risk information | ||
Hedged exposures | 104.8 | 116.1 |
Unhedged exposures | 116.8 | 106.6 |
Gross exposure | 221.6 | 222.7 |
Unhedged exposures - hedge issuer in same group as counterparty | 25.8 | 22.4 |
Corporates | Central governments | ||
Risk information | ||
Hedged exposures | 94.3 | 104.4 |
Corporates | Central governments | Guarantee | Guarantees by the Swedish Export Credit Agency | ||
Risk information | ||
Hedged exposures | 80.1 | 88.6 |
Corporates | Central governments | Guarantee | Guarantees by other export credit agencies | ||
Risk information | ||
Hedged exposures | 10.9 | 12.5 |
Corporates | Central governments | Guarantee | Other guarantees | ||
Risk information | ||
Hedged exposures | 3.3 | 3.3 |
Corporates | Regional governments | ||
Risk information | ||
Hedged exposures | 0.8 | 0.6 |
Corporates | Multilateral development banks | ||
Risk information | ||
Hedged exposures | 0.1 | |
Corporates | Financial institutions | ||
Risk information | ||
Hedged exposures | 6.9 | 8 |
Corporates | Financial institutions | Credit default swap | ||
Risk information | ||
Hedged exposures | 1 | |
Corporates | Financial institutions | Guarantee | ||
Risk information | ||
Hedged exposures | 6.9 | 7 |
Corporates | Corporates | ||
Risk information | ||
Hedged exposures | 2.7 | 3.1 |
Corporates | Corporates | Credit insurance from insurance companies | ||
Risk information | ||
Hedged exposures | 1.8 | 2.5 |
Corporates | Corporates | Guarantee | Other guarantees | ||
Risk information | ||
Hedged exposures | kr 0.9 | kr 0.6 |
Risk information - Gross expo_2
Risk information - Gross exposures European countries, excluding Sweden by exposure classes (Details) - Credit risk - SEK (kr) kr in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Risk information | ||
Gross exposure | kr 337.4 | kr 327.2 |
Spain | ||
Risk information | ||
Gross exposure | 9.9 | 12.5 |
Norway | ||
Risk information | ||
Gross exposure | 6.5 | 5.8 |
Finland | ||
Risk information | ||
Gross exposure | 5.8 | 7.4 |
United Kingdom | ||
Risk information | ||
Gross exposure | 5.2 | 5.3 |
Denmark | ||
Risk information | ||
Gross exposure | 4.9 | 3.9 |
Austria | ||
Risk information | ||
Gross exposure | 4.6 | |
Italy | ||
Risk information | ||
Gross exposure | 4.2 | 4.2 |
Germany | ||
Risk information | ||
Gross exposure | 4 | 0.7 |
The Netherlands | ||
Risk information | ||
Gross exposure | 3.4 | 4.3 |
Poland | ||
Risk information | ||
Gross exposure | 3.1 | 3.1 |
France | ||
Risk information | ||
Gross exposure | 2.7 | 4.1 |
Luxembourg | ||
Risk information | ||
Gross exposure | 2 | 1.2 |
Russian Federation | ||
Risk information | ||
Gross exposure | 1.4 | 4 |
Switzerland | ||
Risk information | ||
Gross exposure | 0.9 | 0.9 |
Belgium | ||
Risk information | ||
Gross exposure | 0.6 | 0.3 |
Ireland | ||
Risk information | ||
Gross exposure | 0.4 | 0.4 |
Latvia | ||
Risk information | ||
Gross exposure | 0.2 | 0.2 |
Iceland | ||
Risk information | ||
Gross exposure | 0.2 | 0.5 |
Portugal | ||
Risk information | ||
Gross exposure | 0.1 | |
Estonia | ||
Risk information | ||
Gross exposure | 0 | 0.1 |
Ukraine | ||
Risk information | ||
Gross exposure | 0 | 0 |
Hungary | ||
Risk information | ||
Gross exposure | 0 | 0 |
Greece | ||
Risk information | ||
Gross exposure | 0 | 0 |
European countries excl. Sweden | ||
Risk information | ||
Gross exposure | 60.1 | 58.9 |
Central governments | ||
Risk information | ||
Gross exposure | 73.4 | 61.7 |
Central governments | Finland | ||
Risk information | ||
Gross exposure | 0.1 | 0.2 |
Central governments | Austria | ||
Risk information | ||
Gross exposure | 2.9 | |
Central governments | Germany | ||
Risk information | ||
Gross exposure | 3.1 | |
Central governments | The Netherlands | ||
Risk information | ||
Gross exposure | 1.7 | |
Central governments | Luxembourg | ||
Risk information | ||
Gross exposure | 0.8 | |
Central governments | European countries excl. Sweden | ||
Risk information | ||
Gross exposure | 8.6 | 0.2 |
Regional governments | ||
Risk information | ||
Gross exposure | 8.8 | 5.5 |
Regional governments | Finland | ||
Risk information | ||
Gross exposure | 0.1 | 0.1 |
Regional governments | European countries excl. Sweden | ||
Risk information | ||
Gross exposure | 0.1 | 0.1 |
Public sector entity | ||
Risk information | ||
Gross exposure | 0.6 | 0.4 |
Public sector entity | Germany | ||
Risk information | ||
Gross exposure | 0.6 | 0.4 |
Public sector entity | European countries excl. Sweden | ||
Risk information | ||
Gross exposure | 0.6 | 0.4 |
Financial institutions | ||
Risk information | ||
Gross exposure | 33 | 36.9 |
Financial institutions | Spain | ||
Risk information | ||
Gross exposure | 0.1 | 0.1 |
Financial institutions | Norway | ||
Risk information | ||
Gross exposure | 2.4 | 3.3 |
Financial institutions | Finland | ||
Risk information | ||
Gross exposure | 0.2 | |
Financial institutions | United Kingdom | ||
Risk information | ||
Gross exposure | 2.6 | 2.2 |
Financial institutions | Denmark | ||
Risk information | ||
Gross exposure | 1.7 | 1.1 |
Financial institutions | Austria | ||
Risk information | ||
Gross exposure | 1.7 | |
Financial institutions | Germany | ||
Risk information | ||
Gross exposure | 0.3 | 0.3 |
Financial institutions | The Netherlands | ||
Risk information | ||
Gross exposure | 0.1 | 2.2 |
Financial institutions | France | ||
Risk information | ||
Gross exposure | 0.6 | 1.6 |
Financial institutions | Luxembourg | ||
Risk information | ||
Gross exposure | 0 | |
Financial institutions | Switzerland | ||
Risk information | ||
Gross exposure | 0.1 | |
Financial institutions | Belgium | ||
Risk information | ||
Gross exposure | 0 | 0 |
Financial institutions | Latvia | ||
Risk information | ||
Gross exposure | 0.2 | 0.2 |
Financial institutions | Estonia | ||
Risk information | ||
Gross exposure | 0 | 0.1 |
Financial institutions | European countries excl. Sweden | ||
Risk information | ||
Gross exposure | 10 | 11.1 |
Corporates | ||
Risk information | ||
Gross exposure | 221.6 | 222.7 |
Corporates | Spain | ||
Risk information | ||
Gross exposure | 9.8 | 12.4 |
Corporates | Norway | ||
Risk information | ||
Gross exposure | 4.1 | 2.5 |
Corporates | Finland | ||
Risk information | ||
Gross exposure | 5.4 | 7.1 |
Corporates | United Kingdom | ||
Risk information | ||
Gross exposure | 2.6 | 3.1 |
Corporates | Denmark | ||
Risk information | ||
Gross exposure | 3.2 | 2.8 |
Corporates | Italy | ||
Risk information | ||
Gross exposure | 4.2 | 4.2 |
Corporates | The Netherlands | ||
Risk information | ||
Gross exposure | 1.6 | 2.1 |
Corporates | Poland | ||
Risk information | ||
Gross exposure | 3.1 | 3.1 |
Corporates | France | ||
Risk information | ||
Gross exposure | 2.1 | 2.5 |
Corporates | Luxembourg | ||
Risk information | ||
Gross exposure | 1.2 | 1.2 |
Corporates | Russian Federation | ||
Risk information | ||
Gross exposure | 1.4 | 4 |
Corporates | Switzerland | ||
Risk information | ||
Gross exposure | 0.8 | 0.9 |
Corporates | Belgium | ||
Risk information | ||
Gross exposure | 0.6 | 0.3 |
Corporates | Ireland | ||
Risk information | ||
Gross exposure | 0.4 | 0.4 |
Corporates | Iceland | ||
Risk information | ||
Gross exposure | 0.2 | 0.5 |
Corporates | Portugal | ||
Risk information | ||
Gross exposure | 0.1 | |
Corporates | Ukraine | ||
Risk information | ||
Gross exposure | 0 | 0 |
Corporates | Hungary | ||
Risk information | ||
Gross exposure | 0 | 0 |
Corporates | Greece | ||
Risk information | ||
Gross exposure | 0 | 0 |
Corporates | European countries excl. Sweden | ||
Risk information | ||
Gross exposure | kr 40.8 | kr 47.1 |
Risk information - Net exposu_3
Risk information - Net exposures European countries, excluding Sweden by exposure classes (Details) - Credit risk - SEK (kr) kr in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Risk information | ||
Net exposure | kr 337.4 | kr 327.2 |
France | ||
Risk information | ||
Net exposure | 9 | 10.3 |
Germany | ||
Risk information | ||
Net exposure | 7.5 | 4.7 |
United Kingdom | ||
Risk information | ||
Net exposure | 6.8 | 7.7 |
Norway | ||
Risk information | ||
Net exposure | 6.8 | 6.2 |
Denmark | ||
Risk information | ||
Net exposure | 5.8 | 4.8 |
Finland | ||
Risk information | ||
Net exposure | 5.5 | 7.1 |
Austria | ||
Risk information | ||
Net exposure | 4.6 | 0 |
Poland | ||
Risk information | ||
Net exposure | 3.1 | 3.1 |
The Netherlands | ||
Risk information | ||
Net exposure | 2.8 | 2.6 |
Luxembourg | ||
Risk information | ||
Net exposure | 1.9 | 0.4 |
Spain | ||
Risk information | ||
Net exposure | 1.4 | 2.6 |
Belgium | ||
Risk information | ||
Net exposure | 1.1 | 0.9 |
Switzerland | ||
Risk information | ||
Net exposure | 0.8 | 0.5 |
Ireland | ||
Risk information | ||
Net exposure | 0.4 | 0.4 |
Latvia | ||
Risk information | ||
Net exposure | 0.2 | 0.2 |
Italy | ||
Risk information | ||
Net exposure | 0.2 | 0.1 |
Iceland | ||
Risk information | ||
Net exposure | 0.2 | 0.2 |
Portugal | ||
Risk information | ||
Net exposure | 0.1 | |
Estonia | ||
Risk information | ||
Net exposure | 0 | 0.1 |
Hungary | ||
Risk information | ||
Net exposure | 0 | 0 |
Russian Federation | ||
Risk information | ||
Net exposure | 0 | 0.1 |
European countries excl. Sweden | ||
Risk information | ||
Net exposure | 58.2 | 52 |
Central governments | ||
Risk information | ||
Net exposure | 169.6 | 167.1 |
Central governments | France | ||
Risk information | ||
Net exposure | 7.3 | 7.8 |
Central governments | Germany | ||
Risk information | ||
Net exposure | 3.9 | 1.4 |
Central governments | United Kingdom | ||
Risk information | ||
Net exposure | 0.3 | 0.5 |
Central governments | Norway | ||
Risk information | ||
Net exposure | 0.4 | 0.5 |
Central governments | Denmark | ||
Risk information | ||
Net exposure | 0.2 | 0.2 |
Central governments | Finland | ||
Risk information | ||
Net exposure | 0.4 | 0.5 |
Central governments | Austria | ||
Risk information | ||
Net exposure | 2.9 | |
Central governments | Poland | ||
Risk information | ||
Net exposure | 3.1 | 3.1 |
Central governments | The Netherlands | ||
Risk information | ||
Net exposure | 1.7 | |
Central governments | Luxembourg | ||
Risk information | ||
Net exposure | 0.8 | 0 |
Central governments | European countries excl. Sweden | ||
Risk information | ||
Net exposure | 21 | 14 |
Regional governments | ||
Risk information | ||
Net exposure | 13.4 | 11.4 |
Regional governments | Finland | ||
Risk information | ||
Net exposure | 0.2 | 0.3 |
Regional governments | European countries excl. Sweden | ||
Risk information | ||
Net exposure | 0.2 | 0.3 |
Multilateral development banks | ||
Risk information | ||
Net exposure | 0.1 | 0 |
Multilateral development banks | Luxembourg | ||
Risk information | ||
Net exposure | 0.1 | 0 |
Multilateral development banks | European countries excl. Sweden | ||
Risk information | ||
Net exposure | 0.1 | 0 |
Public sector entity | ||
Risk information | ||
Net exposure | 0.6 | 0.4 |
Public sector entity | Germany | ||
Risk information | ||
Net exposure | 0.6 | 0.4 |
Public sector entity | European countries excl. Sweden | ||
Risk information | ||
Net exposure | 0.6 | 0.4 |
Financial institutions | ||
Risk information | ||
Net exposure | 34.2 | 38.6 |
Financial institutions | France | ||
Risk information | ||
Net exposure | 1.7 | 2.5 |
Financial institutions | Germany | ||
Risk information | ||
Net exposure | 1.4 | 2 |
Financial institutions | United Kingdom | ||
Risk information | ||
Net exposure | 1.6 | 1.7 |
Financial institutions | Norway | ||
Risk information | ||
Net exposure | 2.4 | 3.4 |
Financial institutions | Denmark | ||
Risk information | ||
Net exposure | 2.4 | 2.2 |
Financial institutions | Finland | ||
Risk information | ||
Net exposure | 0.3 | |
Financial institutions | Austria | ||
Risk information | ||
Net exposure | 1.7 | 0 |
Financial institutions | The Netherlands | ||
Risk information | ||
Net exposure | 0.4 | 2.4 |
Financial institutions | Luxembourg | ||
Risk information | ||
Net exposure | 0 | |
Financial institutions | Spain | ||
Risk information | ||
Net exposure | 0.9 | 0.9 |
Financial institutions | Belgium | ||
Risk information | ||
Net exposure | 0.6 | 0.7 |
Financial institutions | Switzerland | ||
Risk information | ||
Net exposure | 0.3 | 0.2 |
Financial institutions | Latvia | ||
Risk information | ||
Net exposure | 0.2 | 0.2 |
Financial institutions | Estonia | ||
Risk information | ||
Net exposure | 0 | 0.1 |
Financial institutions | European countries excl. Sweden | ||
Risk information | ||
Net exposure | 13.9 | 16.3 |
Corporates | ||
Risk information | ||
Net exposure | 119.5 | 109.7 |
Corporates | France | ||
Risk information | ||
Net exposure | 0 | 0 |
Corporates | Germany | ||
Risk information | ||
Net exposure | 1.6 | 0.9 |
Corporates | United Kingdom | ||
Risk information | ||
Net exposure | 4.9 | 5.5 |
Corporates | Norway | ||
Risk information | ||
Net exposure | 4 | 2.3 |
Corporates | Denmark | ||
Risk information | ||
Net exposure | 3.2 | 2.4 |
Corporates | Finland | ||
Risk information | ||
Net exposure | 4.6 | 6.3 |
Corporates | Poland | ||
Risk information | ||
Net exposure | 0 | |
Corporates | The Netherlands | ||
Risk information | ||
Net exposure | 0.7 | 0.2 |
Corporates | Luxembourg | ||
Risk information | ||
Net exposure | 1 | 0.4 |
Corporates | Spain | ||
Risk information | ||
Net exposure | 0.5 | 1.7 |
Corporates | Belgium | ||
Risk information | ||
Net exposure | 0.5 | 0.2 |
Corporates | Switzerland | ||
Risk information | ||
Net exposure | 0.5 | 0.3 |
Corporates | Ireland | ||
Risk information | ||
Net exposure | 0.4 | 0.4 |
Corporates | Italy | ||
Risk information | ||
Net exposure | 0.2 | 0.1 |
Corporates | Iceland | ||
Risk information | ||
Net exposure | 0.2 | 0.2 |
Corporates | Portugal | ||
Risk information | ||
Net exposure | 0.1 | |
Corporates | Hungary | ||
Risk information | ||
Net exposure | 0 | 0 |
Corporates | Russian Federation | ||
Risk information | ||
Net exposure | 0 | 0.1 |
Corporates | European countries excl. Sweden | ||
Risk information | ||
Net exposure | kr 22.4 | kr 21 |
Risk information - Corporate ex
Risk information - Corporate exposures by industry (GICS) (Details) - Credit risk - SEK (kr) kr in Billions | Dec. 31, 2018 | Dec. 31, 2017 |
Risk information | ||
Gross exposure | kr 337.4 | kr 327.2 |
Net exposure | 337.4 | 327.2 |
Corporates | ||
Risk information | ||
Gross exposure | 221.6 | 222.7 |
Net exposure | 119.5 | 109.7 |
Corporates | IT and telecom | ||
Risk information | ||
Gross exposure | 79.6 | 88.4 |
Net exposure | 13 | 12.9 |
Corporates | Industry | ||
Risk information | ||
Gross exposure | 46.9 | 41.9 |
Net exposure | 41 | 36.4 |
Corporates | Finance | ||
Risk information | ||
Gross exposure | 27.6 | 32.2 |
Net exposure | 16.6 | 19.9 |
Corporates | Commodities | ||
Risk information | ||
Gross exposure | 24.5 | 21.9 |
Net exposure | 19 | 16.8 |
Corporates | Consumer goods | ||
Risk information | ||
Gross exposure | 21.8 | 18.3 |
Net exposure | 20.4 | 15.9 |
Corporates | Electricity, water and gas | ||
Risk information | ||
Gross exposure | 15 | 14.1 |
Net exposure | 5.6 | 4.4 |
Corporates | Healthcare | ||
Risk information | ||
Gross exposure | 3.5 | 3 |
Net exposure | 3.2 | 2.7 |
Corporates | Energy | ||
Risk information | ||
Gross exposure | 2.5 | 2.9 |
Net exposure | 0.5 | kr 0.7 |
Corporates | Other | ||
Risk information | ||
Gross exposure | 0.2 | |
Net exposure | kr 0.2 |
Risk information - Market risk
Risk information - Market risk (Details) kr in Millions | 12 Months Ended | |
Dec. 31, 2018SEK (kr)item | Dec. 31, 2017SEK (kr) | |
Risk information | ||
VAR horizon period (in years) | 2 years | |
Stressed VAR horizon period (in years) | 1 year | |
Market risk | ||
Risk information | ||
Number of measurement and limiting interest rate risk categories | item | 2 | |
VAR for own funds | ||
Risk information | ||
Market risk amount | kr 14 | kr 20 |
Market risk appetite | 100 | |
VAR for liquidity portfolio | ||
Risk information | ||
Market risk amount | 8 | 9 |
Market risk appetite | 50 | |
Aggregated risk measure | ||
Risk information | ||
Market risk amount | 742 | 582 |
Market risk appetite | 1,100 | 1,100 |
Interest rate risk regarding changes in the economic value of SEK's portfolio (EVE) | ||
Risk information | ||
Market risk amount | 188 | 223 |
Market risk appetite | kr 500 | 500 |
Risk change (in basis points) | 100 | |
NII risk together with risk to NII from cross-currency basis swaps | ||
Risk information | ||
Market risk amount | kr 237 | |
Market risk exposure limit | kr 350 | |
Interest rate risk regarding changes in future net interest income (NII) | ||
Risk information | ||
Net interest risk period (in years) | 1 year | |
Risk change (in basis points) | 100 | |
Risk to NII from cross-currency basis swaps | ||
Risk information | ||
Risk period to NII from cross-currency basis swaps (in months) | 12 months | |
Credit spread risk in assets | ||
Risk information | ||
Market risk amount | kr (297) | (210) |
Market risk exposure limit | kr 500 | 500 |
Risk change (in basis points) | 100 | |
Credit spread risk in own debt | ||
Risk information | ||
Market risk amount | kr 606 | 601 |
Market risk exposure limit | kr 1,000 | 1,000 |
Risk change (in basis points) | 20 | |
Cross-currency basis spread risk | ||
Risk information | ||
Market risk amount | kr 212 | 161 |
Market risk exposure limit | 450 | 450 |
Currency risk | ||
Risk information | ||
Market risk amount | 8 | 2 |
Market risk exposure limit | kr 15 | kr 15 |
Assumed change in all foreign currency positions | 10.00% |
Risk information - Impact of on
Risk information - Impact of one percentage point change in market interest rate (Details) - Market risk - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Risk information | ||
Percentage of increase in market interest rate | 1.00% | 1.00% |
Impact from one percentage point increase in market interest rate | kr (115) | kr (171) |
Impact from one percentage point increase in market interest rate for instruments measured at fair value through profit or loss | 353 | 435 |
Impact from one percentage point increase in market interest rate for instruments measured at fair value through other comprehensive income | kr 0 | kr (22) |
Percentage of decrease in market interest rate | 1.00% | 1.00% |
Impact from one percentage point decrease in market interest rate | kr 187 | kr 270 |
Impact from one percentage point decrease in market interest rate for instruments measured at fair value through profit or loss | (364) | (458) |
Impact from one percentage point decrease in market interest rate for instruments measured at fair value through other comprehensive income | 0 | 40 |
Foreign currencies | ||
Risk information | ||
Impact from one percentage point increase in market interest rate | 59 | 17 |
Impact from one percentage point increase in market interest rate for instruments measured at fair value through profit or loss | 258 | 326 |
Impact from one percentage point increase in market interest rate for instruments measured at fair value through other comprehensive income | 0 | (21) |
Impact from one percentage point decrease in market interest rate | (29) | (4) |
Impact from one percentage point decrease in market interest rate for instruments measured at fair value through profit or loss | (272) | (348) |
Impact from one percentage point decrease in market interest rate for instruments measured at fair value through other comprehensive income | 0 | 22 |
SKR | ||
Risk information | ||
Impact from one percentage point increase in market interest rate | (174) | (188) |
Impact from one percentage point increase in market interest rate for instruments measured at fair value through profit or loss | 95 | 109 |
Impact from one percentage point increase in market interest rate for instruments measured at fair value through other comprehensive income | 0 | (1) |
Impact from one percentage point decrease in market interest rate | 216 | 274 |
Impact from one percentage point decrease in market interest rate for instruments measured at fair value through profit or loss | (92) | (110) |
Impact from one percentage point decrease in market interest rate for instruments measured at fair value through other comprehensive income | kr 0 | kr 18 |
Risk information - Foreign curr
Risk information - Foreign currency position (Details) - Currency risk kr in Millions | Dec. 31, 2018SEK (kr)฿ / kr$ / kritem¥ / kr£ / kr€ / kr | Dec. 31, 2017SEK (kr)$ / kritem¥ / kr£ / kr€ / krSFr / kr |
SKR | ||
Risk information | ||
Exchange rate | item | 1 | 1 |
Share at year-end (as a %) | 94.00% | 93.00% |
EUR | ||
Risk information | ||
Exchange rate | € / kr | 10.2626 | 9.8255 |
Share at year-end (as a %) | 1.00% | 2.00% |
Currency position | kr (165) | kr (429) |
USD | ||
Risk information | ||
Exchange rate | $ / kr | 8.9674 | 8.1950 |
Share at year-end (as a %) | 1.00% | 1.00% |
Currency position | kr 188 | kr 289 |
JPY | ||
Risk information | ||
Exchange rate | ¥ / kr | 0.08120 | 0.07281 |
Share at year-end (as a %) | 1.00% | 1.00% |
Currency position | kr (185) | kr (216) |
GBP | ||
Risk information | ||
Exchange rate | £ / kr | 11.3683 | 11.0704 |
Share at year-end (as a %) | 1.00% | 1.00% |
Currency position | kr (133) | kr (133) |
CHF | ||
Risk information | ||
Exchange rate | SFr / kr | 0.4167 | |
MXN | ||
Risk information | ||
Share at year-end (as a %) | 1.00% | |
Currency position | kr (137) | |
THB | ||
Risk information | ||
Exchange rate | ฿ / kr | 0.2755 | |
Share at year-end (as a %) | 1.00% | |
Currency position | kr (120) | |
Other | ||
Risk information | ||
Share at year-end (as a %) | 1.00% | 1.00% |
Currency position | kr 282 | kr (168) |
Foreign currencies | ||
Risk information | ||
Share at year-end (as a %) | 100.00% | 100.00% |
Currency position | kr (133) | kr (794) |
Currency positions excluding unrealized changes in fair value | kr 0 | kr 6 |
Risk information - Assets and l
Risk information - Assets and liabilities in foreign currencies (Details) - SEK (kr) kr in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Risk information | ||
Assets | kr 302,033 | kr 264,392 |
Liabilities | 283,794 | 246,818 |
Currency risk | ||
Risk information | ||
Assets | 302,033 | 264,392 |
Liabilities | 283,794 | 246,818 |
Currency risk | Foreign currencies | ||
Risk information | ||
Assets | 216,355 | 201,371 |
Liabilities | kr 229,880 | kr 202,166 |
Risk information - Liquidity re
Risk information - Liquidity reserve (Details) - Liquidity risk and refinancing risk - SEK (kr) kr in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | |
Risk information | |||
New lending capacity, target | 4 months | ||
Maximum remaining maturity for commercial paper and corporate bonds with BBB minus rating to be permissible | 1 year | ||
Maturity term of revolving borrowing programs | 1 year | ||
Maturity term of swingline facility | 1 year | ||
Period of monitoring the liquidity coverage ratio | 30 days | ||
Period of cashflow forecast | 1 year | ||
Period of estimated net stable funding ratio | 1 year | ||
Liquidity Reserve | kr 23.3 | ||
Credit facility with the Swedish National Debt Office | |||
Risk information | |||
Credit facility, granted by the government | 125 | kr 125 | kr 125 |
SKR | |||
Risk information | |||
Liquidity Reserve | 10.1 | ||
EUR | |||
Risk information | |||
Liquidity Reserve | 6.3 | ||
USD | |||
Risk information | |||
Liquidity Reserve | 6.5 | ||
Other | |||
Risk information | |||
Liquidity Reserve | 0.4 | ||
Securities issued or guaranteed by sovereigns, central banks or multilateral development banks | |||
Risk information | |||
Liquidity Reserve | 12.2 | ||
Securities issued or guaranteed by sovereigns, central banks or multilateral development banks | SKR | |||
Risk information | |||
Liquidity Reserve | 1.5 | ||
Securities issued or guaranteed by sovereigns, central banks or multilateral development banks | EUR | |||
Risk information | |||
Liquidity Reserve | 3.8 | ||
Securities issued or guaranteed by sovereigns, central banks or multilateral development banks | USD | |||
Risk information | |||
Liquidity Reserve | 6.5 | ||
Securities issued or guaranteed by sovereigns, central banks or multilateral development banks | Other | |||
Risk information | |||
Liquidity Reserve | 0.4 | ||
Securities issued or guaranteed by municipalities or other public entities | |||
Risk information | |||
Liquidity Reserve | 7.8 | ||
Securities issued or guaranteed by municipalities or other public entities | SKR | |||
Risk information | |||
Liquidity Reserve | 5.3 | ||
Securities issued or guaranteed by municipalities or other public entities | EUR | |||
Risk information | |||
Liquidity Reserve | 2.5 | ||
Covered bonds issued by other institutions | |||
Risk information | |||
Liquidity Reserve | 3 | ||
Covered bonds issued by other institutions | SKR | |||
Risk information | |||
Liquidity Reserve | 3 | ||
Balances with other banks and National Debt Office, overnight | |||
Risk information | |||
Liquidity Reserve | 0.3 | ||
Balances with other banks and National Debt Office, overnight | SKR | |||
Risk information | |||
Liquidity Reserve | kr 0.3 |
Risk information - Liquidity in
Risk information - Liquidity investments - Remaining maturity (Details) - Liquidity risk and refinancing risk | Dec. 31, 2018 | Dec. 31, 2017 |
Within 1 year | ||
Risk information | ||
Percentage of liquidity investments | 74.00% | 84.00% |
Later than one year and not later than three years | ||
Risk information | ||
Percentage of liquidity investments | 26.00% | 16.00% |
Later than three years | ||
Risk information | ||
Percentage of liquidity investments | 0.00% | 0.00% |
Risk information - Key figures
Risk information - Key figures for liquidity risk (Details) | Dec. 31, 2018 | Dec. 31, 2017 |
Risk information | ||
LCR under EU Commission's delegated act | 266.00% | 169.00% |
Liquidity risk and refinancing risk | ||
Risk information | ||
LCR under Swedish FSA rules | 505.00% | |
LCR under EU Commission's delegated act | 266.00% | 169.00% |
NSFR | 144.00% | 140.00% |
Liquidity risk and refinancing risk | EUR | ||
Risk information | ||
LCR under Swedish FSA rules | 3064.00% | |
Liquidity risk and refinancing risk | USD | ||
Risk information | ||
LCR under Swedish FSA rules | 557.00% |
Risk Information - Liquidity _2
Risk Information - Liquidity investments - By exposure type (Details) - Liquidity risk and refinancing risk | Dec. 31, 2018 | Dec. 31, 2017 |
States and local governments | ||
Risk information | ||
Percentage of liquidity investments | 39.00% | 38.00% |
Financial institutions | ||
Risk information | ||
Percentage of liquidity investments | 23.00% | 36.00% |
Corporates | ||
Risk information | ||
Percentage of liquidity investments | 33.00% | 23.00% |
Covered bonds | ||
Risk information | ||
Percentage of liquidity investments | 5.00% | 3.00% |
Multilateral development banks | ||
Risk information | ||
Percentage of liquidity investments | 0.00% | 0.00% |
CDS covered corporates | ||
Risk information | ||
Percentage of liquidity investments | 0.00% | 0.00% |
Risk Information - Liquidity _3
Risk Information - Liquidity investments - By region (Details) - Liquidity risk and refinancing risk | Dec. 31, 2018 | Dec. 31, 2017 |
Sweden | ||
Risk information | ||
Percentage of liquidity investments | 36.00% | 43.00% |
North America | ||
Risk information | ||
Percentage of liquidity investments | 11.00% | 15.00% |
West Europe excl. Sweden | ||
Risk information | ||
Percentage of liquidity investments | 30.00% | 15.00% |
Asia excl. Japan | ||
Risk information | ||
Percentage of liquidity investments | 8.00% | 10.00% |
Japan | ||
Risk information | ||
Percentage of liquidity investments | 8.00% | 8.00% |
Middle East/ Africa/Turkey | ||
Risk information | ||
Percentage of liquidity investments | 5.00% | 7.00% |
Australia | ||
Risk information | ||
Percentage of liquidity investments | 2.00% | 2.00% |
Risk information - Contractual
Risk information - Contractual flows (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | |
Risk information | |||
Total financial assets | kr 294,327 | kr 258,657 | |
Financial liabilities | (279,781) | (243,353) | |
Binding offers | 744 | 1,211 | |
Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 314,232 | 278,104 | |
Financial assets, discounting effect | (19,905) | (19,447) | |
Total financial assets | 294,327 | 258,657 | |
Financial liabilities, cash flow | (288,334) | (251,576) | |
Financial liabilities, discounting effect | 8,553 | 8,223 | |
Financial liabilities | (279,781) | (243,353) | |
Liquidity surplus (+) / deficit (-) | 25,897 | 26,528 | |
Binding offers | kr 700 | ||
Liquidity risk and refinancing risk | Minimum | |||
Risk information | |||
Maturity of cash flow in deficit | 3 months | ||
Liquidity risk and refinancing risk | Maximum | |||
Risk information | |||
Maturity of cash flow in deficit | 5 years | ||
Liquidity risk and refinancing risk | Credit facility with the Swedish National Debt Office | |||
Risk information | |||
Additional available funds under credit facility | kr 125,000 | kr 125,000 | 125,000 |
Not later than one month | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 16,640 | 10,900 | |
Financial liabilities, cash flow | (7,044) | (1,862) | |
Committed undisbursed loans cash flows | (142) | (696) | |
Liquidity surplus (+) / deficit (-) | 9,454 | 8,342 | |
Later than one month and not later than three months | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 37,535 | 29,486 | |
Financial liabilities, cash flow | (35,172) | (28,243) | |
Committed undisbursed loans cash flows | (2,743) | (3,649) | |
Liquidity surplus (+) / deficit (-) | (380) | (2,406) | |
Later than three months and not later than one year | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 57,089 | 59,195 | |
Financial liabilities, cash flow | (69,355) | (50,842) | |
Committed undisbursed loans cash flows | (15,177) | (17,753) | |
Liquidity surplus (+) / deficit (-) | (27,443) | (9,400) | |
Between 1 and 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 141,728 | 117,993 | |
Financial liabilities, cash flow | (149,855) | (136,770) | |
Committed undisbursed loans cash flows | (20,279) | (14,013) | |
Liquidity surplus (+) / deficit (-) | (28,406) | (32,790) | |
More than 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 61,240 | 60,530 | |
Financial liabilities, cash flow | (26,908) | (33,859) | |
Committed undisbursed loans cash flows | 38,340 | 36,111 | |
Liquidity surplus (+) / deficit (-) | 72,672 | 62,782 | |
Not later than 3 months / 90 days | Liquidity risk and refinancing risk | |||
Risk information | |||
Liquidity surplus (+) / deficit (-) | 9,074 | 5,936 | |
Within 1 year | Liquidity risk and refinancing risk | |||
Risk information | |||
Liquidity surplus (+) / deficit (-) | (18,369) | (3,464) | |
Not later than five years | Liquidity risk and refinancing risk | |||
Risk information | |||
Liquidity surplus (+) / deficit (-) | (46,775) | (36,254) | |
Cash and cash equivalents | |||
Risk information | |||
Total financial assets | 2,416 | 1,231 | |
Cash and cash equivalents | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 2,042 | 1,231 | |
Financial assets, discounting effect | 374 | ||
Total financial assets | 2,416 | 1,231 | |
Cash and cash equivalents | Not later than one month | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 2,042 | 1,231 | |
Treasuries/government bonds | |||
Risk information | |||
Total financial assets | 11,117 | 4,382 | |
Treasuries/government bonds | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 11,131 | 4,381 | |
Financial assets, discounting effect | (14) | 1 | |
Total financial assets | 11,117 | 4,382 | |
Treasuries/government bonds | Not later than one month | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 1,444 | 767 | |
Treasuries/government bonds | Later than one month and not later than three months | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 6,613 | 1,093 | |
Treasuries/government bonds | Later than three months and not later than one year | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 1,717 | 985 | |
Treasuries/government bonds | Between 1 and 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 1,357 | 1,536 | |
Other interest-bearing securities except loans | |||
Risk information | |||
Total financial assets | 48,665 | 39,807 | |
Other interest-bearing securities except loans | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 49,119 | 40,152 | |
Financial assets, discounting effect | (454) | (345) | |
Total financial assets | 48,665 | 39,807 | |
Other interest-bearing securities except loans | Not later than one month | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 9,262 | 3,305 | |
Other interest-bearing securities except loans | Later than one month and not later than three months | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 16,699 | 8,670 | |
Other interest-bearing securities except loans | Later than three months and not later than one year | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 8,340 | 22,630 | |
Other interest-bearing securities except loans | Between 1 and 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 14,818 | 5,547 | |
Loans in the form of interest-bearing securities | |||
Risk information | |||
Total financial assets | 36,781 | 41,125 | |
Loans in the form of interest-bearing securities | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 39,822 | 44,279 | |
Financial assets, discounting effect | (3,041) | (3,154) | |
Total financial assets | 36,781 | 41,125 | |
Loans in the form of interest-bearing securities | Not later than one month | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | (492) | 314 | |
Loans in the form of interest-bearing securities | Later than one month and not later than three months | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 646 | 1,451 | |
Loans in the form of interest-bearing securities | Later than three months and not later than one year | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 3,165 | 6,789 | |
Loans in the form of interest-bearing securities | Between 1 and 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 27,835 | 24,151 | |
Loans in the form of interest-bearing securities | More than 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 8,668 | 11,574 | |
Loans to credit institutions | |||
Risk information | |||
Total financial assets | 27,725 | 23,198 | |
Loans to credit institutions | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 28,517 | 23,986 | |
Financial assets, discounting effect | (792) | (788) | |
Total financial assets | 27,725 | 23,198 | |
Loans to credit institutions | Not later than one month | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 124 | 210 | |
Loans to credit institutions | Later than one month and not later than three months | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 3,096 | 9,973 | |
Loans to credit institutions | Later than three months and not later than one year | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 15,458 | 3,479 | |
Loans to credit institutions | Between 1 and 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 7,843 | 7,417 | |
Loans to credit institutions | More than 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 1,996 | 2,907 | |
Loans to the public | |||
Risk information | |||
Total financial assets | 161,094 | 141,111 | |
Loans to the public | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 177,515 | 156,044 | |
Financial assets, discounting effect | (16,421) | (14,933) | |
Total financial assets | 161,094 | 141,111 | |
Loans to the public | Not later than one month | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 3,999 | 4,764 | |
Loans to the public | Later than one month and not later than three months | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 9,963 | 7,230 | |
Loans to the public | Later than three months and not later than one year | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 27,271 | 24,147 | |
Loans to the public | Between 1 and 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 87,564 | 76,541 | |
Loans to the public | More than 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 48,718 | 43,362 | |
Derivatives | |||
Risk information | |||
Total financial assets | 6,529 | 7,803 | |
Derivatives | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 6,086 | 8,031 | |
Financial assets, discounting effect | 443 | (228) | |
Total financial assets | 6,529 | 7,803 | |
Derivatives | Not later than one month | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 261 | 309 | |
Derivatives | Later than one month and not later than three months | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 518 | 1,069 | |
Derivatives | Later than three months and not later than one year | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 1,138 | 1,165 | |
Derivatives | Between 1 and 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 2,311 | 2,801 | |
Derivatives | More than 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 1,858 | 2,687 | |
Derivatives | Hedging instrument | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 19,318 | ||
Financial assets, discounting effect | (1,964) | ||
Total financial assets | 17,354 | ||
Derivatives | Hedging instrument | Not later than one month | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 429 | ||
Derivatives | Hedging instrument | Later than one month and not later than three months | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 594 | ||
Derivatives | Hedging instrument | Later than three months and not later than one year | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 2,912 | ||
Derivatives | Hedging instrument | Between 1 and 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 9,782 | ||
Derivatives | Hedging instrument | More than 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial assets, cash flow | 5,601 | ||
Borrowing from credit institutions | |||
Risk information | |||
Financial liabilities | (2,247) | (2,317) | |
Borrowing from credit institutions | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (2,256) | (2,328) | |
Financial liabilities, discounting effect | 9 | 11 | |
Financial liabilities | (2,247) | (2,317) | |
Borrowing from credit institutions | Not later than one month | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | 1 | 40 | |
Borrowing from credit institutions | Later than one month and not later than three months | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (567) | (2,368) | |
Borrowing from credit institutions | Later than three months and not later than one year | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (1,690) | ||
Debt securities issued | |||
Risk information | |||
Financial liabilities | (255,600) | (222,516) | |
Debt securities issued | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (278,756) | (244,813) | |
Financial liabilities, discounting effect | 23,156 | 22,297 | |
Financial liabilities | (255,600) | (222,516) | |
Debt securities issued | Not later than one month | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (6,946) | (1,832) | |
Debt securities issued | Later than one month and not later than three months | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (33,541) | (24,648) | |
Debt securities issued | Later than three months and not later than one year | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (66,570) | (48,126) | |
Debt securities issued | Between 1 and 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (145,134) | (136,112) | |
Debt securities issued | More than 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (26,565) | (34,095) | |
Derivatives | |||
Risk information | |||
Financial liabilities | (21,934) | (16,480) | |
Derivatives | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (7,322) | (2,386) | |
Financial liabilities, discounting effect | (14,612) | (14,094) | |
Financial liabilities | (21,934) | (16,480) | |
Derivatives | Not later than one month | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (99) | (70) | |
Derivatives | Later than one month and not later than three months | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (1,064) | (1,227) | |
Derivatives | Later than three months and not later than one year | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (1,095) | (667) | |
Derivatives | Between 1 and 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (4,721) | (658) | |
Derivatives | More than 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (343) | 236 | |
Derivatives | Hedging instrument | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (175,598) | ||
Financial liabilities, discounting effect | 12,426 | ||
Financial liabilities | (163,172) | ||
Derivatives | Hedging instrument | Not later than one month | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (14) | ||
Derivatives | Hedging instrument | Later than one month and not later than three months | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (2,934) | ||
Derivatives | Hedging instrument | Later than three months and not later than one year | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (41,276) | ||
Derivatives | Hedging instrument | Between 1 and 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (119,575) | ||
Derivatives | Hedging instrument | More than 5 years | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | kr (11,799) | ||
Subordinated securities issued | |||
Risk information | |||
Financial liabilities | (2,040) | ||
Subordinated securities issued | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | (2,049) | ||
Financial liabilities, discounting effect | 9 | ||
Financial liabilities | (2,040) | ||
Subordinated securities issued | Later than three months and not later than one year | Liquidity risk and refinancing risk | |||
Risk information | |||
Financial liabilities, cash flow | kr (2,049) |
Risk information - Operational
Risk information - Operational risk and sustainability risk (Details) | 12 Months Ended |
Dec. 31, 2018item | |
Operational risk | |
Risk information | |
Number of quarters scope of losses due to incidents is assessed | 4 |
Sustainability risk | Europe | |
Risk information | |
Number of A projects to which loans were granted | 1 |
Number of B projects to which loans were granted | 2 |
Sustainability risk | America | |
Risk information | |
Number of B projects to which loans were granted | 3 |
Transactions with related par_3
Transactions with related parties (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Transactions with related parties | |||
Interest expense | kr 1 | ||
Swedish government | |||
Transactions with related parties | |||
Ownership interest in reporting company | 100.00% | ||
Companies and organizations that are controlled through a common owner | |||
Transactions with related parties | |||
Percentage of company's outstanding loan guaranteed | 40.00% | 35.00% | |
Interest expense | kr 1 | ||
Swedish National Debt Office | |||
Transactions with related parties | |||
Credit facility | 125,000 | kr 125,000 | |
EKN | |||
Transactions with related parties | |||
Remuneration to EKN for the guarantees paid | 0 | kr 2 | |
Subsidiaries | |||
Transactions with related parties | |||
Interest expense | kr 0 | kr 0 |
Transactions with related par_4
Transactions with related parties - Summarizes Consolidated Group's transactions with related parties (Details) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Transactions with related parties | ||
Assets | kr 17,769 | kr 17,437 |
Liabilities | 18 | 125 |
Interest income | 125 | 84 |
Interest expense | 1 | |
Swedish government | ||
Transactions with related parties | ||
Assets | 4,018 | 3,710 |
Liabilities | 18 | 125 |
Interest income | 0 | 4 |
Companies and organizations that are controlled through a common owner | ||
Transactions with related parties | ||
Assets | 13,751 | 13,727 |
Interest income | 125 | 80 |
Interest expense | 1 | |
Debt securities issued | ||
Transactions with related parties | ||
Interest expense | 1 | |
Debt securities issued | Companies and organizations that are controlled through a common owner | ||
Transactions with related parties | ||
Interest expense | 1 | |
Other liabilities | ||
Transactions with related parties | ||
Liabilities | 18 | 125 |
Other liabilities | Swedish government | ||
Transactions with related parties | ||
Liabilities | 18 | 125 |
Treasuries/government bonds | ||
Transactions with related parties | ||
Assets | 103 | 401 |
Interest income | 0 | 4 |
Treasuries/government bonds | Swedish government | ||
Transactions with related parties | ||
Assets | 103 | 401 |
Interest income | 0 | 4 |
Other interest-bearing securities except loans | ||
Transactions with related parties | ||
Assets | 6,847 | 5,933 |
Interest income | (24) | (27) |
Other interest-bearing securities except loans | Companies and organizations that are controlled through a common owner | ||
Transactions with related parties | ||
Assets | 6,847 | 5,933 |
Interest income | (24) | (27) |
Loans in the form of interest-bearing securities | ||
Transactions with related parties | ||
Assets | 1,699 | 2,198 |
Interest income | 19 | 18 |
Loans in the form of interest-bearing securities | Companies and organizations that are controlled through a common owner | ||
Transactions with related parties | ||
Assets | 1,699 | 2,198 |
Interest income | 19 | 18 |
Loans to credit institutions | ||
Transactions with related parties | ||
Assets | 2,623 | 2,607 |
Interest income | 77 | 52 |
Loans to credit institutions | Companies and organizations that are controlled through a common owner | ||
Transactions with related parties | ||
Assets | 2,623 | 2,607 |
Interest income | 77 | 52 |
Loans to the public | ||
Transactions with related parties | ||
Assets | 2,582 | 2,989 |
Interest income | 53 | 37 |
Loans to the public | Companies and organizations that are controlled through a common owner | ||
Transactions with related parties | ||
Assets | 2,582 | 2,989 |
Interest income | 53 | 37 |
Settlement claim against State | ||
Transactions with related parties | ||
Assets | 3,915 | 3,309 |
Settlement claim against State | Swedish government | ||
Transactions with related parties | ||
Assets | kr 3,915 | kr 3,309 |
Events after the reporting pe_2
Events after the reporting period (Details) - Organizational changes - item | Jan. 31, 2019 | Jan. 01, 2019 |
Events after the reporting period | ||
Number of new roles created | 3 | |
Helene Westholm, from April 24, 2018 | ||
Events after the reporting period | ||
Length of service | 1 year |
Risk and capital management (De
Risk and capital management (Details) kr in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2018USD ($) | Dec. 31, 2018SEK (kr)item | Dec. 31, 2017SEK (kr) | Sep. 30, 2018 | Sep. 30, 2017 | |
Risk and capital management | |||||
Capital ratio | 20.10% | 23.00% | |||
Tier 1 capital ratio | 20.10% | 20.60% | |||
Common Equity Tier 1 ratio | 20.10% | 20.60% | |||
Redemption of subordinated liabilities | $ | $ 250 | ||||
Leverage ratio | 5.60% | 5.90% | |||
Minimum requirement for own funds and eligible liabilities (MREL) | 8.30% | 7.10% | |||
Minimum requirement of risk-weighted assets | 25.30% | 28.00% | |||
New lending capacity | 5 months | 15 months | |||
LCR | 266.00% | 169.00% | |||
VAR | kr 14 | kr 20 | |||
Total capital ratio requirement | 16.70% | 15.90% | |||
Number of lines of defense for risk management and risk control | item | 3 | ||||
Period for capital adequacy assessments | 3 years | ||||
Confidence level for VAR calculation | 99.90% | ||||
Time horizon for probability distribution of value of credit portfolio | 1 year | ||||
Maximum | |||||
Risk and capital management | |||||
Total capital ratio excess over capital adequacy requirement, target | 3.00% | ||||
Minimum | |||||
Risk and capital management | |||||
Total capital ratio excess over capital adequacy requirement, target | 1.00% | ||||
Credit risk | |||||
Risk and capital management | |||||
Risk (in terms of allocated capital) | kr 7,000 | 6,900 | |||
Market risk | |||||
Risk and capital management | |||||
Risk (in terms of allocated capital) | 1,100 | 1,600 | |||
Operational risk | |||||
Risk and capital management | |||||
Risk (in terms of allocated capital) | kr 200 | kr 100 |
Risk and capital management- Ri
Risk and capital management- Risk descriptions (Details) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Risk and capital management | ||
LCR | 266.00% | 169.00% |
Liquidity risk and refinancing risk | ||
Risk and capital management | ||
Maturity of LCR assets | 2 days | |
LCR | 266.00% | 169.00% |
NSFR | 144.00% | 140.00% |
Liquidity risk and refinancing risk | Minimum | ||
Risk and capital management | ||
Period of contingencies for new lending without access to credit facility | 2 months | |
LCR | 110.00% | |
NSFR | 100.00% | |
Liquidity risk and refinancing risk | Minimum | EUR | ||
Risk and capital management | ||
LCR | 110.00% | |
Liquidity risk and refinancing risk | Minimum | USD | ||
Risk and capital management | ||
LCR | 110.00% | |
Credit risk | Maximum | ||
Risk and capital management | ||
Percentage of individual and collectively limited exposures in relation to own funds | 20.00% | |
Percentage of expected loss within one year in relation to Common Equity Tier 1 capital | 2.00% | |
Percentage of total portfolio maturity in relation to Common Equity Tier 1 capital | 8.00% | |
Average risk weight for exposures to corporates and institutions | 55.00% | |
Concentration risk in relation to the Swedish FSA's assessed capital requirement for credit risk | 30.00% | |
Net exposure to counterparties in segments of less or equal to BB minus in relation to Tier One capital | 80.00% | |
Market risk | ||
Risk and capital management | ||
Parallel shift of all yield curves (in basis points) | 100 | |
Parallel shift of interest rates (in basis points) | 100 | |
Parallel shift of basis spreads (in basis points) | 20 | |
Market risk | Minimum | ||
Risk and capital management | ||
Percentage of hedged interest-rate risk in loans outstanding in CIRR system | 75.00% | |
Market risk | Maximum | ||
Risk and capital management | ||
Interest rate sensitivity to 100 basis points parallel shift of all yield curves | kr 500 | |
Impact on future earnings margin resulting from change in interest rates of 100 basis points and change in basis spreads of 20 basis points | 350 | |
Aggregated risk measure | ||
Risk and capital management | ||
Market risk exposure | 742 | kr 582 |
Aggregated risk measure | Maximum | ||
Risk and capital management | ||
Market risk exposure | 1,100 | |
VAR for own funds | ||
Risk and capital management | ||
Market risk exposure | 14 | 20 |
VAR for own funds | Maximum | ||
Risk and capital management | ||
Market risk exposure | 100 | |
VAR for liquidity portfolio | ||
Risk and capital management | ||
Market risk exposure | 8 | kr 9 |
VAR for liquidity portfolio | Maximum | ||
Risk and capital management | ||
Market risk exposure | 50 | |
Operational risk | ||
Risk and capital management | ||
Possible losses for which measures to minimize are to be taken without delay | 150 | |
Expected losses for which measures to reduce are to be taken without delay | kr 2 | |
Operational risk | Maximum | ||
Risk and capital management | ||
Period for measures to minimize possible losses to be taken before Finance and Risk Committee is to be informed | 2 months | |
Period to reduce expected loss | 6 months | |
Risk appetite for expected losses | kr 20 | |
Period to mitigate critical internal audit remarks | 6 months | |
Period to mitigate critical external audit remarks | 2 months | |
Sustainability risk | Maximum | ||
Risk and capital management | ||
Gross lending to fossil operations | 5.00% |