Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2019shares | |
Document and Entity Information | |
Entity Registrant Name | SWEDISH EXPORT CREDIT CORP /SWED/ |
Entity Central Index Key | 0000352960 |
Entity Filer Category | Non-accelerated Filer |
Entity Well-known Seasoned Issuer | Yes |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Amendment Flag | false |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2019 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Entity Common Stock, Shares Outstanding | 3,990,000 |
Entity Interactive Data Current | Yes |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - SEK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Consolidated Statement of Comprehensive Income | ||||
Interest income calculated using effective interest method | kr 5,187 | kr 4,390 | kr 3,276 | |
Other interest income | 896 | 763 | 620 | |
Interest expenses | (4,366) | (3,711) | (2,213) | |
Net interest income | 1,717 | 1,442 | 1,683 | |
Net fee and commission expense | (33) | (32) | (28) | |
Net results of financial transactions | 226 | 19 | (102) | |
Other operating income | (2) | |||
Total operating income | 1,910 | 1,427 | 1,553 | |
Personnel expenses | (333) | (311) | (320) | |
Other administrative expenses | (206) | (231) | (232) | |
Depreciation and impairment of non-financial assets | (57) | (40) | (45) | |
Total operating expenses | (596) | (582) | (597) | |
Operating profit before credit losses | 1,314 | 845 | 956 | |
Net credit losses | 51 | |||
Net credit losses for IFRS 9 | (10) | 7 | ||
Operating profit | 1,304 | 852 | 1,007 | |
Tax expenses | (277) | (204) | (235) | |
Net profit | [1] | 1,027 | 648 | 772 |
Items to be reclassified to profit or loss | ||||
Available-for-sale securities | (33) | |||
Derivatives in cash-flow hedges | (8) | (25) | (91) | |
Tax on items to be reclassified to profit or loss | 2 | 6 | 27 | |
Net items to be reclassified to profit or loss | (6) | (19) | (97) | |
Items not to be reclassified to profit or loss | ||||
Own credit risk | 24 | 374 | ||
Revaluation of defined benefit plans | (4) | (48) | (4) | |
Tax on items not to be reclassified to profit or loss | (4) | (72) | 1 | |
Net items not to be reclassified to profit or loss | 16 | 254 | (3) | |
Total other comprehensive income | 10 | 235 | (100) | |
Total comprehensive income | [1] | kr 1,037 | kr 883 | kr 672 |
Basic earnings per share (in SEK per share) | [2] | kr 257 | kr 162 | kr 193 |
Diluted earnings per share (in SEK per share) | [2] | kr 257 | kr 162 | kr 193 |
[1] | The entire profit is attributable to the shareholder of the Parent Company. | |||
[2] | The average number of shares in 2019 amounted to 3,990,000 (2018: 3,990,000) |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Consolidated Statement of Comprehensive Income | ||
Weighted average number of shares (in shares) | 3,990,000 | 3,990,000 |
Consolidated Statement of Finan
Consolidated Statement of Financial Position - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 | |
Assets | |||
Cash and cash equivalents | [1] | kr 1,362 | kr 2,416 |
Treasuries/government bonds | 8,344 | 11,117 | |
Other interest-bearing securities except loans | 53,906 | 48,665 | |
Loans in the form of interest-bearing securities | 43,627 | 36,781 | |
Loans to credit institutions | 27,010 | 27,725 | |
Loans to the public | 163,848 | 161,094 | |
Derivatives | 6,968 | 6,529 | |
Tangible and intangible assets | 134 | 69 | |
Other assets | 9,334 | 4,980 | |
Prepaid expenses and accrued revenues | 2,747 | 2,657 | |
Deferred tax assets | 16 | ||
Total assets | 317,296 | 302,033 | |
Liabilities and equity | |||
Borrowing from credit institutions | 3,678 | 2,247 | |
Debt securities issued | 269,339 | 255,600 | |
Derivatives | 20,056 | 21,934 | |
Other liabilities | 2,466 | 1,069 | |
Accrued expenses and prepaid revenues | 2,582 | 2,583 | |
Deferred tax liabilities | 276 | ||
Provisions | 93 | 85 | |
Total liabilities | 298,214 | 283,794 | |
Share capital | 3,990 | 3,990 | |
Reserves | (143) | (153) | |
Retained earnings | 15,235 | 14,402 | |
Total equity | [2],[3] | 19,082 | 18,239 |
Total liabilities and equity | kr 317,296 | kr 302,033 | |
[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 22. | ||
[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, 2016 | kr 3,990 | kr 96 | kr 35 | kr (1) | kr 13,016 | kr 17,136 | |||
Net profit for the year | 772 | 772 | [1] | ||||||
Items to be reclassified to profit or loss | |||||||||
Available-for-sale securities | (33) | (33) | |||||||
Derivatives in cash-flow hedges | (91) | (91) | |||||||
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 | [2],[3] | 3,990 | 25 | 9 | (4) | 13,554 | 17,574 | ||
Effects of the implementation of IFRS 9 | [2] | 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) | |||||||
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 | [2],[3] | 3,990 | 6 | (117) | (42) | 14,402 | 18,239 | ||
Net profit for the year | 1,027 | 1,027 | [1] | ||||||
Items to be reclassified to profit or loss | |||||||||
Derivatives in cash-flow hedges | (8) | (8) | |||||||
Tax on items to be reclassified to profit or loss | 2 | 2 | |||||||
Items not to be reclassified to profit or loss | |||||||||
Own credit risk | 24 | 24 | |||||||
Revaluation of defined benefit plans | (4) | (4) | |||||||
Tax on items not to be reclassified to profit or loss | (5) | 1 | (4) | ||||||
Total other comprehensive income | (6) | 19 | (3) | 10 | |||||
Total comprehensive income | kr (6) | 19 | (3) | 1,027 | 1,037 | [1] | |||
Dividend | (194) | (194) | |||||||
Balance at the end of the year at Dec. 31, 2019 | [2],[3] | kr 3,990 | kr (98) | kr (45) | kr 15,235 | kr 19,082 | |||
[1] | The entire profit is attributable to the shareholder of the Parent Company. | ||||||||
[2] | See note 22. | ||||||||
[3] | 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Operating activities | ||||||
Operating profit | kr 1,304 | kr 852 | kr 1,007 | |||
Adjustments for non-cash items in operating profit | ||||||
Provision for credit losses, net | 10 | (7) | (51) | |||
Depreciation and impairment of non-financial assets | 57 | 40 | 45 | |||
Exchange-rate differences | 7 | 5 | 0 | |||
Unrealized changes in fair value | (185) | (40) | 110 | |||
Other | (5) | 16 | 170 | |||
Total adjustments for non-cash items in operating profit | (116) | 14 | 274 | |||
Income tax paid | (529) | (366) | (365) | |||
Increase (-)/decrease (+) in lending | (2,540) | (9,016) | 3,394 | |||
Increase (-)/decrease (+) in bonds and securities held | (889) | (13,782) | 6,738 | |||
Other changes in assets and liabilities - net | 1,996 | (1,347) | (1,598) | |||
Cash flow from operating activities | (774) | (23,645) | 9,450 | |||
Investing activities | ||||||
Investments | (40) | (21) | (10) | |||
Cash flow from investing activities | (40) | (21) | (10) | |||
Financing activities | ||||||
Senior debt | 126,412 | 92,045 | 115,040 | |||
Repayments of debt | (112,190) | (59,390) | (86,266) | |||
Repurchase and early redemption of own long-term debt | (18,642) | (7,553) | (38,693) | |||
Change in subordinated debt | (2,322) | |||||
Derivatives | 4,049 | 1,830 | (4,931) | |||
Payment of lease liability | (39) | |||||
Dividend paid | (194) | (232) | (234) | |||
Cash flow from financing activities | (604) | 24,378 | (15,084) | |||
Net cash flow for the period | (1,418) | 712 | (5,644) | |||
Cash and cash equivalents at beginning of the year | 2,416 | [1] | 1,231 | [1] | 7,054 | |
Exchange-rate differences on cash and cash equivalents | 364 | 473 | (179) | |||
Cash and cash equivalents at end of the year | [1] | 1,362 | 2,416 | 1,231 | ||
Cash and cash equivalents of which cash at banks | 651 | 374 | 600 | |||
Cash and cash equivalents of which cash equivalents | 711 | 2,042 | 631 | |||
Interest payments received and expenses paid | ||||||
Interest payments received | 9,057 | 4,586 | 3,965 | |||
Interest expenses paid | kr 4,366 | kr 3,192 | kr 2,139 | |||
[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, 2019 | |
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 (the “Parent Company”, the “Company” or “SEK”) 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, 2019 consists of SEK and its wholly owned, inactive 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 its 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 information in these notes relates to both the Consolidated Group and the Parent Company, unless otherwise stated. Certain additional disclosures required by applicable regulations or legislation are included in the notes. The Consolidated Financial Statements and the Parent Company’s annual report were approved for issuance by SEK’s Board of Directors on February 20, 2020. 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 26, 2020. (ii) Basis of measurement The Consolidated Financial Statements have been prepared on an amortized cost basis, subject to the following exceptions: (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 2018 annual report, except for the changes described below. In addition to the changes below, 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 are not mentioned are either not applicable to SEK or have been determined to not have a material impact on SEK’s financial reporting. (i) IFRS 16 Leasing As of January 1, 2019, SEK began applying IFRS 16 Leases to the Consolidated Group and the Parent Company. The standard replaces IAS 17, and related interpretations with changes for lessees. The standard became applicable January 1, 2019. 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 are to be recognized as repayments and interest expenses. As a result, the straight-line operating lease expense is replaced by an expense for depreciation of the right-of-use lease assets and an interest expense on the lease liability. In the statement of cash flows, payments for the principal portion of the lease liability are presented within financing activities and payments for the interest portion are presented within operating activities. Lessor accounting remains essentially unchanged. IFRS 16 has primarily affected SEK's recognition of operational leases for rental premises, as the lease definition and lease criteria have not resulted in other agreements being regarded as leases as compared to IAS 17. SEK has also decided to apply the exceptions for short-term and low-value leases. The right-of-use asset is accounted for under Tangible and intangible assets and the leasing liability is accounted for under Other liabilities. The lease term is determined as the non-cancellable period of a lease, together with any extension or termination options when SEK is reasonably certain to exercise them. The future cash flows are discounted using SEK's incremental borrowing rate. SEK applied the simplified approach during the transition to IFRS 16, and measured the right-of-use asset at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to the lease. Right-of-use assets, leasing liabilities, depreciation and interest expenses are not expected to have any material impact on SEK's financial statements or capital adequacy or large exposure ratios. The table shows the transition effect of IFRS 16 reconciling the closing balances under IAS 17 as of December 31, 2018, with the opening balances under IFRS 16 as of January 1, 2019. Transition effect from IFRS 16 on Consolidated Statement of Financial Position Skr mn Dec 31, 2018 Effect Jan 1, 2019 Assets Tangible and intangible assets 69 94 163 Total assets 302,033 94 302,127 Liabilities Other liabilities 1,069 95 1,164 Accrued expenses and prepaid revenues 2,583 -1 2,582 Total liabilities 283,794 94 283,888 Reconciliation of lease commitments according to IAS 17 at December 31, 2018 to lease liabilities at January 1, 2019 Skr mn Future minimum lease payments under non-callable leases at December 31, 2018(1) -92 Discounting effect(2) 0 Increase in lease term -2 Deduction for leases reclassified as low value leases 0 Other changes -1 Lease liability at January 1, 2019 -95 (1) According to IAS 17, see note 8. (2) The average incremental borrowing rate is 0.32%. (ii) Changes in IFRS 9 and IFRS 7 - reform for new reference rates SEK has elected early adoption of the amendments to IFRS 9, IAS 39 and IFRS 7 Interest Rate Benchmark Reform issued by IASB in September 2019 (IBOR reform). The amendments have been adopted retrospectively to hedging relationships that existed at the start of the reporting period or were designated thereafter. The amendments provide temporary relief for hedge accounting requirements for hedging relationships directly affected by IBOR reform and allow hedge accounting to continue as before during the relief period. The reliefs that apply to SEK are 1) in assessing the economic relationship between the hedged item and the hedging instrument assume that the interest rate benchmark on which the hedged risk is based on is not altered by IBOR reform, and 2) the risk component only needs to be separately identifiable at initial recognition and not on an ongoing basis. The amendments becomes applicable at January 1, 2020, and must be applied retrospectively. The changes are not expected to have any material impact on SEK's financial statements, capital adequacy or large exposure ratios. (iii) Changes in Swedish regulations FFFS 2008:25 was amended to include new disclosure requirements related to capital requirements and own funds. The new disclosure requirements are included in note 25 Capital adequacy. In addition, the Swedish Financial Reporting Board has amended the accounting recommendation for legal entities by issuing “RFR 2 Supplementary Accounting Rules for Legal Entities – January 2019”. SEK implemented those amendments on January 1, 2019 but they have not had any significant impact on SEK’s Financial Statements. (d) Basis of consolidation The Consolidated Financial Statements encompass the Parent Company and 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 the 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 2019, 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 chief executive officer (“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 income and interest expense related to all financial assets and liabilities, regardless of classification, are recognized in net interest income. Interest income and interest expense are recognized on a gross basis, with the exception of interest income 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 income, 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 income. 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 income 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 income 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 income 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 (the “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 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. All assets and liabilities related to the CIRR-system are respectively included in the Consolidated Statement of Financial Position 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). 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). Derivatives are 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. 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 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. (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 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 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 (SEK as a lessor). 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. Lease liability (SEK as a lessee). 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 are to be recognized as repayments and interest expenses. The leasing liability is accounted for under Other liabilities. The lease term is determined as the non-cancellable period of a lease, together with any extension or termination options when SEK is reasonably certain to exercise them. Reassessments of extensions and terminations options are made upon the occurrence of either a significant event or a significant change in circumstances that is within the control of SEK and will affect the assessment of whether it is reasonably certain to exercise the option. The lease term is revised if there is a change in the non-cancellable period of lease, for example, if an option not previously included in the lease term is exercised. The lease liability consists of the future cash flows, which are discounted using SEK's incremental borrowing rate. SEK has also decided to apply the exceptions for short-term and low-value leases, for example office machinery, which are accounted for as leasing cost under other administrative expenses. SEK has elected not to separate non-lease components from lease components, and accounts for each lease component and any associated non-lease component, except for expenses for real estate tax and non-deductible value added tax, as a single lease. 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 orde |
Net interest income
Net interest income | 12 Months Ended |
Dec. 31, 2019 | |
Net interest income | |
Net interest income | Note 2. Net interest income Skr mn 2019 2018 2017 Interest income Loans to credit institutions 2,005 1,475 789 Loans to the public 2,656 2,534 2,265 Loans in the form of interest-bearing securities 829 672 629 Interest-bearing securities excluding loans in the form of interest-bearing securities 686 523 458 Derivatives -291 -210 -372 Administrative remuneration CIRR-system(1) 194 157 125 Other assets 4 2 2 Total interest income 6,083 5,153 3,896 Interest expenses Interest expenses excl. resolution fee -4,197 -3,445 -2,020 Resolution fee -169 -266 -193 Total interest expenses -4,366 -3,711 -2,213 Net interest income 1,717 1,442 1,683 Skr mn 2019 2018 2017 Interest income were related to: Available-for-sale financial assets — — 426 Financial assets at fair value through profit or loss 700 574 253 Derivatives used for hedge accounting -303 -261 -253 Financial assets at amortized cost 5,686 4,840 3,470 Total interest income 6,083 5,153 3,896 Interest expenses were related to: Available-for-sale financial assets — — -93 Financial liabilities at fair value through profit or loss 1,183 704 278 Financial assets measured at fair value through profit or loss – negative – interest on income -72 -104 — Financial assets measured at amortized cost - negative interest income -9 -27 -37 Derivatives used for hedge accounting -286 106 1,479 Financial liabilities at amortized cost -5,182 -4,390 -3,840 Total interest expenses -4,366 -3,711 -2,213 Net interest income 1,717 1,442 1,683 Interest income geographical areas Skr mn 2019 2018 2017 Sweden 3,172 2,458 1,724 Europe except Sweden 927 932 723 Countries outside of Europe 1,984 1,763 1,449 Total interest income 6,083 5,153 3,896 Interest income per product group Skr mn 2019 2018 2017 Lending to Swedish exporters 1,954 1,709 1,398 Lending to exporters’ customers(2) 1,510 1,452 1,251 Liquidity 2,619 1,992 1,247 Total interest income 6,083 5,153 3,896 (1) Including administrative remuneration for concessionary loans by Skr 2 million (2018: Skr 2 million). (2) In interest income for Lending to exporters’ customers, Skr 192 million (2018: Skr 155 million) represent remuneration from the CIRR-system (see note 24). |
Net fee and commissions expense
Net fee and commissions expense | 12 Months Ended |
Dec. 31, 2019 | |
Net fee and commissions expense | |
Net fee and commissions expense | Note 3. Net fee and commissions expense Skr mn 2019 2018 2017 Fee and commissions earned were -related to(1): Lending 1 5 3 Total 1 5 3 Commissions incurred were -related to(1): Depot and bank fees -8 -7 -6 Brokerage -5 -4 -4 Other commissions incurred -21 -26 -21 Total -34 -37 -31 Net fee and commissions expense -33 -32 -28 (1) Skr -28 million (2018: Skr -28 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, 2019 | |
Net results of financial transactions | |
Net results of financial transactions | Note 4. Net results of financial transactions Skr mn 2019 2018 2017 Derecognition of financial instruments not measured at fair value through profit or loss: Available-for-sale financial assets — — -17 Financial assets at amortized cost 19 24 16 Financial assets or liabilities at fair value through profit or loss: Designated upon initial recognition (FVO) -5,590 7,315 -326 Mandatorily 5,710 -7,360 278 Financial instruments under fair-value hedge accounting: Net results of the hedging instrument 2,846 -192 -999 Net results of the hedged item -2,761 235 946 Currency exchange-rate effects on all assets and liabilities excl. currency exchange-rate effects related to revaluation at fair value 2 -3 0 Total net results of financial -transactions 226 19 -102 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, 2019 | |
Personnel expense | |
Personnel expenses | Note 5. Personnel expenses Skr mn 2019 2018 2017 Salaries and remuneration to the Board of Directors and the CEO -7 -7 -7 Salaries and remuneration to Senior Executives -23 -21 -20 Salaries and remuneration to other employees -161 -158 -162 Pensions -60 -52 -58 Social insurance -63 -59 -61 Other personnel expenses -19 -14 -12 Total personnel expenses -333 -311 -320 The combined total of the remuneration to senior executives, excluding the CEO of the Parent Company, amounted to Skr 23 million (2018: Skr 21 million). Of the remuneration to senior executives, Skr 23 million (2018: Skr 21 million) is pensionable. Of the remuneration to the CEO of the Parent Company, Skr 5 million (2018: Skr 5 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 2019 committee Fixed Other Skr thousand fee remuneration(1) benefits(2) Pension fee(3) Total Chairman of the Board of Directors: Lars Linder-Aronson -603 — — — -603 Other members of the Board of Directors: Cecilia Ardström -308 — — — -308 Anna Brandt(4) — — — — — Reinhold Geijer -275 — — — -275 Hans Larsson -249 — — — -249 Eva Nilsagård -277 — — — -277 Ulla Nilsson -298 — — — -298 Hélène Westholm(4), resigned March 28, 2019 — — — — — Hanna Lagercrantz(4), from March 28, 2019 — — — — — Senior Executives: Catrin Fransson, Chief Executive Officer (CEO)(5) — -5,015 -25 -1,462 -6,502 Per Åkerlind, Head of Treasury and Capital Management and -Executive Vice President — -3,509 -30 -1,123 -4,662 Karl Johan Bernerfalk, General Counsel — -1,507 -23 -529 -2,059 Andreas Ericson, Head of Mid Corporates — -1,978 -28 -607 -2,613 Stefan Friberg, Chief Financial Officer (CFO) — -2,922 -27 -500 -3,449 Teresa Hamilton Burman, Chief Credit Officer (CCO) — -2,353 -18 -508 -2,879 Jens Hedar, Head of Large Corporates — -2,224 -15 -649 -2,888 Petra Könberg, Head of Marketing & Business Development — -1,236 -33 -407 -1,676 Irina Slinko, acting Chief Risk Officer (CRO), resigned August 20, 2019 — -1,159 -12 -365 -1,536 Anna-Lena Söderlund, acting Chief Risk Officer (CRO), from August 21, 2019, resigned October 27, 2019 — -278 -6 -115 -399 Peter Svensén, Chief Risk Officer (CRO), from October 28, 2019 — -471 -3 -80 -554 Sirpa Rusanen, Chief Human Resources Officer (CHRO) — -1,644 -42 -623 -2,309 Susanna Rystedt, Chief Administrative Officer (CAO) — -2,484 -40 -759 -3,283 Madeleine Widaeus, Chief Information Officer (CIO) — -1,574 -16 -463 -2,053 Total -2,010 -28,354 -318 -8,190 -38,872 (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 not paid from the Company to the representatives on the Board of Directors who are employed by the owner, the Swedish Government. (5) 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 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(C) -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 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 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 -344 — — — -344 Jan Belfrage, resigned March 22, 2017 -72 — — — -72 Anna Brandt, from November 21, 2017 — — — — — Reinhold Geijer, from March 22, 2017 -213 — — — -213 Hans Larsson, from March 22, 2017 -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. 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 2019 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 five times in 2019. The company has only one variable remuneration system, individual variable compensation ("IRE"). Within this system, permanent staff that have customer or business responsibility, but are not members of senior management, are offered the opportunity to receive individual variable remuneration . IRE has been around since 2017 and should be evaluated on an ongoing basis. The result of the evaluations shall be reported to the Remuneration Committee The IRE system is discretionary in nature, in that all outcomes are subject to deferred payment and the Board takes all decisions regarding results and payments. Before an individual receives any IRE 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 IRE 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 IRE 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 IRE. 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 IRE. 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 IRE in a department must be within the outcome at the Department level. The Company pays payroll taxes on any IRE 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 that year. For all employees encompassed by IRE, 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. No employees receive remuneration of EUR 1 million or more per fiscal year. 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 has a notice period of six months should termination be initiated by SEK and is 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 2019 2018 2017 Service cost -6 -4 -5 Regulation of pension obligations 0 5 — Interest cost, net -2 -1 -1 Pension cost for defined benefit pensions, incl. payroll tax -8 0 -6 Pension cost for defined contribution pension cost incl. payroll tax -52 -52 -52 Pension cost recognized in personnel costs -60 -52 -58 Actuarial gains and (losses) on defined benefit obligation during period -16 -48 -7 Return above expected return, gains and (losses) on plan assets 12 0 3 Change in the effect of the asset ceiling excluding interest — — — Revaluation of defined benefit plans -4 -48 -4 Net value of defined benefit pension obligations Skr mn 2019 2018 2017 Defined benefit obligations 272 253 263 Plan assets -189 -173 -223 Restriction to net defined benefit asset due to the asset ceiling 0 0 0 Provision for pensions, net obligation(1) 83 80 40 (1) See note 21. Development of defined benefit obligations Skr mn 2019 2018 2017 Defined benefit obligation, opening balance 253 263 254 Service cost 6 4 5 Interest cost 5 6 7 Pension Payments incl. special payroll tax -8 -9 -10 Other 0 -59 — Actuarial (gains) and losses, effect due to changed demographic assumptions — — — Actuarial (gains) and losses, effect due to changed financial assumptions 25 46 9 Actuarial (gains) and losses, effect due to experience based outcome -9 2 -2 Defined benefit obligation, closing balance 272 253 263 Development of plan assets related to defined benefit obligation Skr mn 2019 2018 2017 Fair value of plan assets, opening balance 173 223 216 Expected return on plan assets 4 5 6 Contributions by the employer(1) 7 7 7 Benefits paid(2) -7 -8 -8 Other(3) 0 -54 — Return on plan assets excluding interest income 12 0 2 Fair value of plan assets, closing balance 189 173 223 (1) Expected contribution from the employer in the following year is Skr 6 million (2018: Skr 6 million) excluding payroll tax. (2) Expected compensation paid in the following year is Skr 9 million (2018: Skr 8 million). (3) Regulation of pension obligations related to Venantius AB and its subsidiaries, which were liquidated in 2018. Distribution of plan assets related to defined benefit obligation Skr mn 2019 2018 2017 Domestic equity investments 4 3 4 Foreign equity investments 17 12 16 Domestic government bonds 49 43 63 Domestic corporate bonds 22 26 40 Mortgage bonds 49 49 76 Other Investments 25 19 — Properties 23 21 24 Total 189 173 223 Principal actuarial assumptions used end of year % 2019 2018 2017 Discount rate 1.7 2.1 2.5 Assumption of early pension withdrawal 20.0 20.0 20.0 Expected salary increase 2.0 2.0 2.0 Expected inflation 2.0 2.0 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 % 0.7 % +1 % 2.7 % Defined benefit obligation 351 215 Service cost 8 5 Interest cost 2 6 Expected lifetime +1 year -1 year Defined benefit obligation 286 260 Service cost 6 6 Interest cost 5 4 Net reconciliation of pension liabilities Skr mn 2019 2018 2017 Pension liabilities, opening balance 80 40 38 Net periodic pension cost 7 0 6 Contributions by the employer -7 -7 -7 Net pension payments -1 -1 -1 Revaluations recognized in other comprehensive income 4 48 4 Pension liabilities, closing balance 83 80 40 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 2019 for defined benefit pensions amounts to Skr 8 million (2018: Skr 0 million). As of December 31, 2019, the expected weighted average remaining service time for active employees was 14.89 years (2018: 16.66 years), the expected weighted average duration for the present value was 19.23 years (2018: 19.37 years) and the average salary for active employees was Skr 0.9 million (2018: 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 2019 2018 2017 Women 120 117 121 Men 121 126 131 Total average number of employees 241 243 252 Number of employees at year-end 2019 2018 2017 Women 123 118 122 Men 121 120 128 Total number of employees (1) 244 238 250 of which full-time employees 236 230 243 Allocation of women/men 50/50 49/51 48/52 of which part-time employees 8 8 7 Allocation of women/men 75/25 75/25 86/14 of which permanent employees 236 246 Allocation of women/men 51/49 50/50 49/51 of which temporary employees 1 2 4 Allocation of women/men 0/100 50/50 50/50 of which managers 31 29 31 of which non-management 209 219 (1) In addition to its employees, SEK had 66 consultants (FTEs) engaged at year-end 2019. Employees by age distribution 2019 2018 2017 Total number of employees 244 238 250 of which under the age of 30 years 12 13 16 of which between 30 and 50 years 127 127 142 of which over 50 years 105 98 92 Employee turnover 2019 2018 2017 Number of employees who left employment 30 32 31 of which women 16 12 12 of which men 14 20 19 of which under the age of 30 years 2 3 4 of which between 30 and 50 years 22 20 20 of which over 50 years 6 9 7 Health, % 2019 2018 2017 Absence due to sickness 2.5 3.1 3.3 Percentage of employees that use SEK’s fitness allowance 89 91 92 Equality and diversity 2019 2018 2017 Allocation of women/men on the Board of Directors 62/38 62/38 60/40 Allocation of women/men in SEK’s executive management 50/50 50/50 64/36 Allocation of women/men in-management positions 42/58 41/59 42/58 Allocation of women/men at SEK in total 50/50 51/49 49/51 Allocation of employees with foreign/Swedish background(1) 33/67 33/67 33/67 (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 2019 2018 2017 Percentage of employees who had a performance review (percent) — (1) 96 95 Average number of training days per employee (all employees are white-collar workers) 3 3 2 (1) The question was not asked in 2019, the next measurement will be in 2020. |
Other administrative expenses
Other administrative expenses | 12 Months Ended |
Dec. 31, 2019 | |
Other administrative expenses | |
Other administrative expenses | Note 6. Other administrative expenses Skr mn 2019 2018 2017 Travel expenses and marketing -7 -7 -8 IT and information system (fees incl.) -156 -151 -144 Other fees -34 -34 -38 Premises(1) -3 -33 -32 Other -6 -6 -10 Total other administrative expenses -206 -231 -232 (1) SEK is a party to rental agreements of office space in Stockholm and Gothenburg, Sweden. Since 2019-01-01 leases of premises are accounted for according to IFRS 16, see note 8. Remuneration to auditors Skr mn 2019 2018 2017 Öhrlings PricewaterhouseCoopers AB: Audit fees(1) -10 -8 -8 Audit related fees(2) 0 0 0 Tax related fees(3) 0 — 0 Other fees(4) -2 -2 -1 Total -12 -10 -9 (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, 2019 | |
Tangible and intangible assets | |
Tangible and intangible assets | Note 7. Tangible and intangible assets Skr mn Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Net book value Tangible assets 28 26 22 Right-of-use assets 50 — — Intangible assets(1) 56 43 66 Total net book value 134 69 88 Depreciation and impairment during the year according to the Consolidated Statement of Comprehensive Income -57 -40 -45 (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, 2019 | |
Leasing | |
Leasing | Note 8. Leasing SEK as lessee All leases with the exception of short-term and low-value leases, are recognized as a right-of-use asset with a corresponding lease liability. The right-of-use assets are accounted for under Tangible and intangible assets and the lease liability is accounted for under Other liabilities (see note 7 and note 19). The right-of-use assets and the lease liability relate to rental premises. For further information see note 1 Significant accounting policies. The lease term is determined as the non-callable period of a lease, together with any extension or termination option that SEK is reasonably certain to exercise. SEK has extension options which we are not reasonably certain to exercise. The potential future cash flows related to the extension options amount to Skr 78 million for a period of 3 years. Right-of-use assets Skr mn 2019 Opening balance 94 Depreciation -32 Deduction(1) -12 Closing balance 50 (1) There have been cancelled and new leases during the year. The estimation of lease liability and right-of-use assets also has changed. Future cash flows relating to real estate tax and non-deductible value added tax are no longer included. This change means that lease liability and right-of-use assets have decreased by Skr 13 million. Accounted for in profit or loss Skr mn 2019 Depreciation charge on right-of-use assets -32 Interest expenses on lease liability 0 Expenses relating to short-term leases(1) 0 Expenses relating to low-value leases(1) -1 Variable lease fees(1) -1 Total amount accounted for in profit or loss -34 (1) Accounted for under Other administrative expenses. Lease liability Skr mn 2019 Opening balance 95 Interest expenses accrued 0 Payments of lease liability -39 Deduction(1) -12 Closing balance 44 (1) There have been cancelled and new leases during the year. The estimation of lease liability and right-of-use assets also has changed. Future cash flows relating to real estate tax and non-deductible value added tax are no longer included. This change means that lease liability and right-of-use assets have decreased by Skr 13 million. Contractual flows of lease liability Skr mn 2019 Within 1 year 26 Between 1 and 5 years 18 Discounting effect 0 Closing balance 44 The total cash outflow for leases in 2019 was Skr 41 million. The following tables show disclosures for 2018 according to IAS 17. Cost of operating leases Skr mn 2018 Leases -32 The primary cost relates to SEK’s office premises. Future minimum rentals payable under non-cancellable operating leases are as follows Dec 31, Skr mn 2018 Within 1 year -32 Between 1 and 5 years -60 More than 5 years — Total future minimum rentals payable under non-cancellable operating leases -92 SEK as lessor 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, 2019 December 31, 2018 Present value of Present value of Gross minimum lease Gross minimum lease Skr mn investment payments investment payments Within 1 year 63 61 117 113 Between 1 and 5 years 87 78 182 156 More than 5 years — — 8 5 Total 150 139 307 274 Unearned finance income — 14 — 33 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, 2019 | |
Impairments | |
Impairments | Note 9. Impairments Skr mn 2019 2018 2017 Expected credit losses, stage 1 -19 6 n.a Expected credit losses, stage 2 11 14 n.a Expected credit losses, stage 3 -17 -13 n.a Impairment of financial assets — — -59 Reversals of previous write-downs — — 110 Established credit losses -25 — -47 Reserves applied to cover established credit losses 40 — 46 Recovered credit losses — 0 1 Net credit losses -10 7 51 The table below shows the book value of loans and nominal amounts for off-balance sheet exposures before expected credit losses for each stage as well as related loss allowance amounts, in order to place expected credit losses in relation to credit exposures. Overall, the credit portfolio has an extremely high credit quality and SEK often uses risk mitigation measures, primarily through guarantees from the Swedish Export Credit Agency (EKN) and other government export credit agencies in the Organisation for Economic Co-operation and Development (OECD), which explains the low provision ratio. December 31, 2019 December 31, 2018 Skr mn Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Loans, before expected credit losses Loans in the form of interest-bearing securities 40,909 2,735 — 43,644 34,112 2,686 — 36,798 Loans to credit institutions 9,578 541 — 10,119 10,188 1,164 — 11,352 Loans to the public 132,313 30,326 1,316 163,955 134,117 25,405 1,424 160,946 Off balance, before expected credit losses Guarantees 3,232 1,161 — 4,393 2,818 1,246 1 4,065 Committed undisbursed loans 28,083 26,856 11 54,950 21,348 30,177 — 51,525 Total, before expected credit losses 214,115 61,619 1,327 277,061 202,583 60,678 1,425 264,686 of which guaranteed 56.4 % 92.1 % 95.4 % 62.2 % 60.4 % 85.4 % 94.3 % 64.1 % Loss allowance, loans Loans in the form of interest-bearing securities -14 -2 — -16 -9 -3 — -12 Loans to credit institutions -1 0 — -1 -1 -1 — -2 Loans to the public -36 -7 -64 -107 -24 -17 -82 -123 Loss allowance, off balance (1) Guarantees 0 0 0 0 0 0 -2 -2 Committed undisbursed loans -3 -1 — -4 0 0 — 0 Total, loss allowance -54 -10 -64 -128 -34 -21 -84 -139 Provision ratio 0.03 % 0.02 % 4.82 % 0.05 % 0.02 % 0.03 % 5.89 % 0.05 % (1) Recognized under provision in Consolidated Statement of Financial Position. Loans and off balance, before Loss Allowance December 31, 2019 December 31, 2018 Skr mn Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening balance 202,583 60,678 1,425 264,686 209,232 62,286 1,242 272,760 (1) Increase due to origination and acquisition 73,812 5,633 113 79,558 37,594 768 3 38,365 Transfer to stage 1 13 -16 — -3 2,490 — — 2,490 Transfer to stage 2 -6,752 6,281 — -471 — 5,431 — 5,431 Transfer to stage 3 -97 -199 286 -10 — — 466 466 Decrease due to derecognition -55,444 -10,758 -497 -66,699 -46,733 -7,807 -286 -54,826 Closing balance 214,115 61,619 1,327 277,061 202,583 60,678 1,425 264,686 (1) Effect on opening balance after implementation of IFRS 9 Skr 18 million. Loss Allowance December 31, 2019 December 31, 2018 Skr mn Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening balance -34 -21 -84 -139 -38 -33 -66 -137 (1) Increases due to origination and acquisition -22 -1 0 -23 -12 -2 -1 -15 Net remeasurement of loss allowance -4 7 7 10 12 9 -14 7 Transfer to stage 1 0 0 — 0 0 0 — 0 Transfer to stage 2 0 0 — 0 1 -1 — 0 Transfer to stage 3 0 2 -24 -22 0 -2 2 0 Decreases due to derecognition 6 4 — 10 5 10 0 15 Decrease in allowance account due to write-offs — — 40 40 — — — — Exchange-rate differences(2) 0 -1 -3 -4 -2 -2 -5 -9 Closing balance -54 -10 -64 -128 -34 -21 -84 -139 (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. Loan credit quality, before expected credit losses, allocated by stage December 31, 2019 December 31, 2018 Skr mn Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total AAA 546 — — 546 1,204 — — 1,204 AA+ to A- 31,421 — — 31,421 25,635 51 — 25,686 BBB+ to BBB- 116,040 1,147 — 117,187 107,289 1,161 — 108,450 BB+ to BB- 23,378 20,381 — 43,759 28,055 18,972 28 47,055 B+ to B- 11,411 11,894 — 23,305 16,234 8,869 — 25,103 CCC to D 4 180 1,316 1,500 — 202 1,396 1,598 Total, before expected credit losses 182,800 33,602 1,316 217,718 178,417 29,255 1,424 209,096 More information regarding SEK’s Credit Policy is found in note 26 Risk information and in note 29 Risk and capital management. |
Taxes
Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Taxes | |
Taxes | Note 10. Taxes Skr mn 2019 2018 2017 Income tax Adjustment previous year 2 -1 0 Current tax -570 -448 -262 Deferred tax 291 245 27 Total income tax -277 -204 -235 Income tax related to other comprehensive income Tax on items to be reclassified to profit or loss Current tax 2 6 27 Deferred tax — — — Tax on items not to be reclassified to profit or loss Current tax -5 -82 — Deferred tax 1 10 1 Income tax related to other comprehensive income -2 -66 28 Reconciliation of effective tax rate The Swedish corporate tax rate, % 21.4 22.0 22.0 Profit before taxes 1,304 852 1,007 National tax based on profit before taxes -279 -187 -222 Tax effects of: Non-taxable income 9 0 1 Non-deductible expenses -16 -14 -15 Imputed interest on tax allocation reserve -1 -2 -2 Tax effect of dissolution of untaxed reserves due to changed tax rate 8 — — Other 2 -1 3 Total tax -277 -204 -235 Effective tax expense in % 21.2 24.0 23.3 Deferred taxes Skr mn 2019 2018 Deferred tax assets concerning: Temporary differences, related to -pensions 16 15 Other temporary differences — — Total deferred tax assets 16 15 Deferred tax liabilities concerning: Untaxed reserves — 291 Total deferred tax liabilities — 291 Net deferred tax liabilities (+) / tax -assets (-) -16 276 No deductible loss carry forwards existed as of December 31, 2019, or December 31, 2018. Change in deferred taxes Skr mn 2019 2018 Opening balance 276 531 Change through profit or loss -291 -245 Change in other comprehensive income -1 -10 Total -16 276 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 percent (from January 1, 2019) and later to 20.6 percent (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, 2019 | |
Loans and liquidity investments. | |
Loans and liquidity investments | Note 11. Loans and liquidity investments Dec 31, Dec 31, Skr mn 2019 2018 Loans: Loans in the form of interest-bearing securities 43,627 36,781 Loans to credit institutions 27,010 27,725 Loans to the public 163,848 161,094 Less: Cash collateral under the security agreements for derivative contracts(1) -16,891 -16,374 Total loans 217,594 209,226 Liquidity investments: Cash and cash equivalents 1,362 2,416 Cash collateral under the security agreements for derivative contracts(1) — — Treasuries/government bonds 8,344 11,117 Other interest-bearing securities except loans 53,906 48,665 Total liquidity investments 63,612 62,198 of which issued by public authorities 13,452 15,110 (1) Since 2019, SEK has excluded cash collateral under the security agreements for derivative contracts from the definition of liquidity investments. Comparative figures have been adjusted. 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 2019 2018 Sum of amounts exceeding nominal 350 143 Sum of amounts falling below nominal -39 -39 Volume Development, Lending of which the CIRR-system Skr mn 2019 2018 2019 2018 Offers of long-term loans accepted 74,515 57,015 15,500 4,916 Undisbursed loans at year-end 52,150 50,814 47,868 47,664 Loans outstanding at year-end 217,594 (1) 209,226 (1) 76,120 69,922 (1) Including concessionary loans in the amount of Skr 547 million (year-end 2018: Skr 663 million). Outstanding loans as per business area of which the CIRR-system December 31, December 31, December 31, December 31, Skr mn 2019 2018 2019 2018 Lending to Swedish exporters 96,429 89,759 — — Lending to exporters’ customers 121,165 119,467 76,120 69,922 Total lending 217,594 (1) 209,226 (1) 76,120 69,922 (1) Includ ing concessionary loans in the amount of Skr 547 million (year-end 2018: Skr 663 million). |
Classification of financial ass
Classification of financial assets and liabilities | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 Financial assets at fair value through profit or loss Derivatives used for hedge Skr mn Mandatorily accounting Amortized cost Total Cash and cash equivalents — — 1,362 1,362 Treasuries/government bonds 8,344 — — 8,344 Other interest-bearing securities except loans 53,906 — — 53,906 Loans in the form of interest-bearing securities — — 43,627 43,627 Loans to credit institutions — — 27,010 27,010 Loans to the public — — 163,848 163,848 Derivatives 4,380 2,588 — 6,968 Total financial assets 66,630 2,588 235,847 305,065 December 31, 2018 Financial assets at fair value through profit or loss Derivatives used for hedge Skr mn Mandatorily accounting Amortized cost Total 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, 2019 Financial liabilities at fair value through profit or loss Designated upon Derivatives initial used for recognition hedge Skr mn Mandatorily (FVO) accounting Amortized cost Total Borrowing from credit institutions — — — 3,678 3,678 Debt securities issued — 56,705 — 212,634 269,339 Derivatives 16,954 — 3,102 — 20,056 Total financial liabilities 16,954 56,705 3,102 216,312 293,073 December 31, 2018 Financial liabilities at fair value through profit or loss Designated upon Derivatives initial used for recognition hedge Skr mn Mandatorily (FVO) accounting Amortized cost Total 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 and liabilitie
Financial assets and liabilities at fair value | 12 Months Ended |
Dec. 31, 2019 | |
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, 2019 Surplus value (+) Skr mn Book value Fair value /Deficit value (-) Cash and cash equivalents 1,362 1,362 — Treasuries/governments bonds 8,344 8,344 — Other interest-bearing securities except loans 53,906 53,906 — Loans in the form of interest-bearing securities 43,627 45,054 1,427 Loans to credit institutions 27,010 27,133 123 Loans to the public 163,848 169,612 5,764 Derivatives 6,968 6,968 — Total financial assets 305,065 312,379 7,314 Borrowing from credit institutions 3,678 3,678 — Debt securities issued 269,339 271,549 2,210 Derivatives 20,056 20,056 — Total financial liabilities 293,073 295,283 2,210 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 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, 2019 Loans and accounts receivable Fair value Book value Skr mn Level 1 Level 2 Level 3 Total Total Cash and cash equivalents 1,362 — — 1,362 1,362 Loans in the form of interest-bearing securities 321 44,733 — 45,054 43,627 Loans to credit institutions — 27,133 — 27,133 27,010 Loans to the public — 169,584 — 169,584 163,848 Total financial assets in fair value hierarchy 1,683 241,450 — 243,133 235,847 December 31, 2018 Loans and accounts receivable 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, 2019 Other financial liabilities Fair value Book value Skr mn Level 1 Level 2 Level 3 Total Total Borrowing from credit institutions — 3,669 — 3,669 3,678 Debt securities issued — 213,654 — 213,654 212,634 Total financial liabilities in fair value hierarchy — 217,323 — 217,323 216,312 December 31, 2018 Other financial liabilities 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 fair value in fair value hierarchy December 31, 2019 Financial assets at fair value through profit or loss Skr mn Level 1 Level 2 Level 3 Total Treasuries/governments bonds 7,041 1,303 — 8,344 Other interest-bearing securities except loans 27,409 26,497 — 53,906 Derivatives — 4,483 2,485 6,968 Total financial assets in fair value hierarchy 34,450 32,283 2,485 69,218 December 31, 2018 Financial assets at fair value through profit or loss Skr mn 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 Financial liabilities reported at fair value in fair value hierarchy December 31, 2019 Financial liabilities at fair value through profit or loss Skr mn Level 1 Level 2 Level 3 Total Debt securities issued — 12,953 43,752 56,705 Derivatives — 17,593 2,463 20,056 Total financial liabilities in fair value hierarchy — 30,546 46,215 76,761 Due to an enhancement of the classification method a transfer of Skr 21,461 million was made from level 2 to level 1 during the period January December 2019. A transfer of Skr 1,040 million from level 3 to level 2 has been made for debt securities issued and a transfer of net Skr -30 million from level 3 to level 2 has been made for derivatives (year-end 2018: transfer between level 2 and level 3 of Skr -2,124 million was made). 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 Financial assets and liabilities at fair value in Level 3 December 31, 2019 Gains (+) and Gains (+) and losses (-) losses (-) Cur. Jan 1, Settlements Transfers to Transfers through profit or through other exchange-rate Dec 31, Skr mn 2019 Purchases & sales Level 3 from Level 3 loss(1) comprehensive income effects 2019 Debt securities issued -47,898 -10,702 21,314 — 1,040 -3,408 -43 -4,055 -43,752 Derivatives, net -4,587 -5 -299 1 -31 3,181 — 1,762 22 Net assets and liabilities -52,485 -10,707 21,015 1 1,009 -227 -43 -2,293 -43,730 Financial assets and liabilities at fair value in Level 3 December 31, 2018 Gains (+) and Gains (+) and losses (-) losses (-) Cur. 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 (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, 2019, amounted to a Skr 69 million loss (year-end 2018: Skr 157 million gain) 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 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 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 correlations have been adjusted by +/-10 percentage points, which represents the range of correlations that SEK has determined market participants would use when pricing the instruments. For Level 3 instruments that are significantly affected by nonobservable 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 in SEK’s credit spread. The analysis shows the impact of the nonobservable 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 in 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 fair value in the derivative. Sensitivity analysis - level 3 December 31, 2019 Assets and liabilities Unobservable Range of estimates for Skr mn Fair V alue input unobservable input (1) Valuation method Sensitivity Max Sensitivity Min Equity -345 Correlation 0.73 - 0.02 Option Model 1 -1 Interest rate 1,249 Correlation 0.16 - (0.08) Option Model -64 63 FX -711 Correlation 0.80 - 0.10 Option Model 19 -16 Other -171 Correlation 0.53 - (0.03) Option Model 0 0 Sum derivatives,net 22 -44 46 Equity -524 Correlation 0.73 - 0.02 Option Model -1 1 Credit spreads 10BP - (10BP) Discounted cash flow 14 -14 Interest rate -43,083 Correlation 0.16 - (0.08) Option Model 65 -64 Credit spreads 10BP - (10BP) Discounted cash flow 70 -68 FX -39 Correlation 0.80 - 0.10 Option Model -20 17 Credit spreads 10BP - (10BP) Discounted cash flow 88 -87 Other -106 Correlation 0.53 - (0.03) Option Model 0 0 Credit spreads 10BP - (10BP) Discounted cash flow 3 -3 Sum debt securities issued -43,752 219 -218 Total effect on total comprehensive income(2) 175 -172 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 (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 174 million (year-end 2018: Skr 242 million) under a maximum scenario and Skr -173 million (year-end 2018: Skr -240 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, 2019 December 31, 2018 2019 2018 CVA/DVA, net(1) -12 -29 17 -21 OCA(2) -126 -150 24 374 (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, 2019 | |
Derivatives and hedge accounting | |
Derivatives and hedge accounting | Note 14. Derivatives and hedge accounting Derivatives by categories December 31, 2019 December 31, 2018 Assets Liabilities Nominal Assets Liabilities Nominal Skr mn Fair value Fair value amounts Fair value Fair value amounts Interest rate-related contracts 3,998 12,367 304,242 3,842 10,207 280,808 Currency-related contracts 2,734 6,933 182,668 2,630 8,799 162,870 Equity-related contracts 236 584 16,387 57 2,755 16,014 Contracts related to commodities, credit risk, etc. — 172 1,997 — 173 2,108 Total derivatives 6,968 20,056 505,294 6,529 21,934 461,800 of which derivatives used for economic hedges, December 31, 2019 December 31, 2018 accounted for as held-for-trading under IFRS 9 Assets Liabilities Nominal Assets Liabilities Nominal Skr mn Fair value Fair value amounts Fair value Fair value amounts Interest rate-related contracts 2,568 11,455 140,829 2,767 7,479 129,470 Currency-related contracts 1,544 4,708 153,707 1,728 5,177 132,610 Equity-related contracts 236 584 16,387 57 2,755 16,014 Contracts related to commodities, credit risk, etc. 0 172 1,997 — 173 2,108 Total derivatives 4,348 16,919 312,920 4,552 15,584 280,202 December 31, 2019 December 31, 2018 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 1,430 912 163,413 1,075 2,728 151,338 Currency-related contracts 1,190 2,225 28,961 902 3,622 30,260 Total derivatives 2,620 3,137 192,374 1,977 6,350 181,598 (1) The nominal amount of the instruments directly affected by the IBOR reform amounts to Skr 87,915 million. Maturity analysis of the nominal amounts (1) of hedging instruments December 31, 2019 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 116 225 2,254 4,960 9,296 Hedge of fixed rate liabilities — — 38,724 103,823 3,776 Currency-related contracts Hedge of fixed rate assets 6 26 644 2,030 430 Hedge of fixed rate liabilities — 421 7,920 12,876 4,882 (1) Nominal amounts before off-set. 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 2,195 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, 2019 1 month < 3 months < 1 year < Skr mn < 1 month 3 months 1 year 5 years > 5 years Cash inflows (assets) 109 567 1,214 2,344 2,122 Cash outflows (liabilities) -978 -1,517 -1,492 -3,106 40 Net cash inflow (1) -869 -950 -278 -762 2,162 (1) For derivatives used as hedging instruments, see contractual flows in note 26. 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 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, 2019 December 31, 2018 Assets Fair value hedge Fair value hedge Skr mn Book value adjustments Book value adjustments Loans in the form of interest-bearing securities 6,716 547 4,244 499 Loans to credit institutions 332 5 206 3 Loans to the public 14,353 930 12,904 648 Total 21,401 1,482 17,354 1,150 December 31, 2019 December 31, 2018 Liabilities Fair value hedge Fair value hedge Skr mn Book value adjustments Book value adjustments Debt securities issued 174,477 4,102 163,172 1,000 Total 174,477 4,102 163,172 1,000 Cash flow hedges reclassified to profit or loss during the year Skr mn 2019 2018 Interest income 8 25 Interest expense — — Total (1) 8 25 (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. Since the 2010s, there is an ongoing reform to replace or amend benchmark interest rates such as LIBOR and other interbank offered rates (“IBOR”). There is still some uncertainty around the timing and precise nature of these changes although great progress has been made during the last year. SEK's exposure that is directly affected by the interest rate benchmark reform is mainly its lending contracts with floating interest rates, its lending and borrowing contracts with fixed interest rates that are hedged to floating interest rates as well as currency swaps to floating interest rates. The main floating interest rate exposures relate to USD LIBOR, STIBOR and EURIBOR. The UK Financial Conduct Authority ('FCA') has communicated that LIBOR will no longer be guaranteed after the end of 2021. For EURIBOR and STIBOR, there has been no such end date communicated. The general perception is that these two benchmark interest rates will continue to exist in the years to come. SEK currently has contracts referencing USD LIBOR, EURIBOR and STIBOR which extend beyond 2021. Since 2018, SEK has been preparing the company for the benchmark interest rate reform. To increase focus further SEK has established a transition project which manages changes to systems, processes, contracts, pricing and risk models as well as risk mitigation. SEK continues to monitor the work of relevant associations and working groups as well as of new market conventions to ensure an orderly transition to risk-free rates. In applying the amendments to IFRS 9, SEK has assumed that no fallback clauses will be triggered by the interest rate benchmark reform. For more disclosures regarding SEK’s hedge accounting, see note 29 Risk and Capital Management, Consolidated Statement of Changes in Equity, note 1 Significant accounting policies, and note 4 Net results of financial transactions . 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 Dec 31, 2019 Dec 31, 2018 Skr mn Derivatives Derivatives Gross amounts of recognized financial assets 7,948 7,200 Amounts offset in the Statement of Financial Position -980 -671 Net amounts of financial assets presented in the Statement of Financial Position 6,968 6,529 Amounts subject to an enforceable master netting arrangement or similar agreement not offset in the Statement of Financial Position related to: Financial instruments -3,799 -4,324 Cash collateral received -2,352 -1,805 Net amount 817 400 Financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements Dec 31, 2019 Dec 31, 2018 Skr mn Derivatives Derivatives Gross amounts of recognized financial liabilities 21,036 22,648 Amounts offset in the Statement of Financial Position -980 -714 Net amounts of financial liabilities presented in the Statement of Financial Position 20,056 21,934 Amounts subject to an enforceable master netting arrangement or similar agreement not offset in the Statement of Financial Position related to: Financial instruments -3,799 -4,324 Cash collateral paid -15,871 -15,537 Net amount 386 2,073 |
Shares
Shares | 12 Months Ended |
Dec. 31, 2019 | |
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. 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, 2019 December 31, 2018 Skr mn Book value Number of shares Book value Number of shares SEKETT AB (reg. no 559132-9668) 0 50 0 50 |
Other assets
Other assets | 12 Months Ended |
Dec. 31, 2019 | |
Other assets. | |
Other assets | Note 16. Other assets Skr mn Dec 31, 2019 Dec 31, 2018 Claim against the State for CIRR loans and concessionary loans 9,124 3,915 Cash receivables, funding operations 181 960 Other 29 105 Total 9,334 4,980 |
Prepaid expenses and accrued re
Prepaid expenses and accrued revenues | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid expenses and accrued revenues | |
Prepaid expenses and accrued revenues | Note 17. Prepaid expenses and accrued revenues Skr mn Dec 31, 2019 Dec 31, 2018 Interest income accrued 2,747 2,643 Prepaid expenses and other accrued revenues 0 14 Total 2,747 2,657 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt | |
Debt | Note 18. Debt December 31, 2019 Total debt excluding debt Total debt - Skr mn securities issued securities issued Total Exchange-rate related contracts — 28,215 28,215 Interest rate related contracts 3,678 240,389 244,067 Equity related contracts — 629 629 Contracts related to raw materials, credit risk etc — 106 106 Total debt outstanding 3,678 269,339 273,017 of which denominated in: Skr 2,737 USD 186,021 JPY 32,509 EUR 19,813 Other currencies 31,937 273,017 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 SEK has the following major Borrowing programs in place: Value outstanding(1) Skr mn December 31, 2019 December 31, 2018 Medium-term note program: Unlimited Euro Medium-Term Note Programme 96,930 99,710 Unlimited SEC-registered U.S. Medium-Term Note Programme 151,750 143,109 Unlimited Swedish Medium-Term Note Programme 424 261 Unlimited MTN/STN AUD Debt Issuance Programme 4,598 3,875 Commercial paper program: USD 3,000,000,000 U.S. Commercial Paper Programme 10,644 4,723 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 Skr mn December 31, 2018 Cash Flow Exchange-rate Unrealized Accrued December 31, 2019 Senior debt 257,847 -4,420 10,580 9,010 — 273,017 Lease liability 95 (1) -39 — -12 (2) — 44 Derivatives - net 15,405 4,049 -2,629 -3,737 — 13,088 Total liabilities in financing activities 273,347 -410 7,951 5,261 — 286,149 (1) Refers to the opening balance of the lease liability, see note 1. (2) Refers to a changed estimate of the lease liability, see note 8. Non-cash items Skr mn December 31, 2017 Cash flow Exchange-rate Unrealized Accrued 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 8,071 — 15,405 Total liabilities in financing activities 235,550 24,610 13,044 48 — 273,252 |
Other liabilities
Other liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other liabilities | |
Other liabilities | Note 19. Other liabilities Skr mn Dec 31, 2019 Dec 31, 2018 Cash payables, debt purchases 2,011 682 Other 455 387 Total 2,466 1,069 |
Accrued expenses and prepaid re
Accrued expenses and prepaid revenues | 12 Months Ended |
Dec. 31, 2019 | |
Accrued expenses and prepaid revenues | |
Accrued expenses and prepaid revenues | Note 20. Accrued expenses and prepaid revenues Skr mn Dec 31, 2019 Dec 31, 2018 Interest expenses accrued 2,541 2,542 Other accrued expenses and prepaid revenues 41 41 Total 2,582 2,583 |
Provisions
Provisions | 12 Months Ended |
Dec. 31, 2019 | |
Provisions | |
Provisions | Note 21. Provisions Skr mn Dec 31, 2019 Dec 31, 2018 Pension liabilities(1) 83 80 Long term employee benefit 6 3 Off balance, expected credit losses(2) 4 2 Total 93 85 (1) See note 5. (2) Provisions for expected credit losses are on the off-balance-sheet, in accordance with IFRS 9. See note 9. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity | |
Equity | Note 22. Equity December 31, December 31, Skr mn 2019 2018 Share capital 3,990 3,990 Legal reserve — — Fund for internally developed software — — Reserves/Fair value reserve Hedge reserve — 6 Own credit risk -98 -117 Defined benefit plans -45 -42 Retained earnings 15,235 14,402 Total equity 19,082 18,239 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. 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. December 31, December 31, Skr mn 2019 2018 Restricted equity 4,235 5,240 Unrestricted equity 14,847 12,999 Total equity 19,082 18,239 For information on the objectives, policies and processes for managing capital, see the Report of the directors and note 29 Risk and Capital Management. 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, 2019, 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 308 million (2018: Skr 194 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 14,903 The Board of Directors proposes that the Annual General Meeting dispose of these funds as follows: - dividend to the shareholder of Skr 77.23 per share, amounting to 308 - remaining disposable funds to be carried forward 14,595 |
Pledged assets and contingent l
Pledged assets and contingent liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Pledged assets and contingent liabilities | |
Pledged assets and contingent liabilities | Note 23. Pledged assets and contingent liabilities Skr mn Dec 31, 2019 Dec 31, 2018 Collateral provided Cash collateral under the security agreements for derivative contracts 16,891 16,374 Contingent liabilities Guarantee commitments 4,393 4,032 Commitments Committed undisbursed loans 52,150 50,814 Binding offers 2,800 744 |
CIRR-system
CIRR-system | 12 Months Ended |
Dec. 31, 2019 | |
CIRR-system | |
CIRR-system | Note 24. 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 system for officially supported 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 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, 2019, loans outstanding amounted to Skr 547 million (year-end 2018: Skr 663 million) and the government noted a negative result of Skr -36 million (2018: Skr -42 million). Administrative compensation to SEK amounted to Skr -2 million (2018: Skr -2 million). Statement of comprehensive income for the CIRR-system Skr mn 2019 2018 Interest income 2,074 1,624 Interest expenses -1,912 -1,480 Net interest income 162 144 Interest compensation 1 20 Foreign exchange effects 5 9 Profit before compensation to SEK 168 173 Administrative remuneration to SEK -192 -155 Operating profit CIRR-system -24 18 Reimbursement to (-) / from (+) the State 24 -18 Statement of financial position for the CIRR-system (included in SEK’s Statement of Financial Position) Skr mn Dec 31, 2019 Dec 31, 2018 Cash and cash equivalents 0 — Loans 76,120 69,922 Derivatives 26 502 Other assets 9,307 4,090 Prepaid expenses and accrued revenues 569 561 Total assets 86,022 75,075 Liabilities 76,257 70,144 Derivatives 9,117 4,408 Accrued expenses and prepaid revenues 648 523 Total liabilities and equity 86,022 75,075 Commitments Committed undisbursed loans 47,868 47,664 Binding offers 37 616 |
Capital adequacy
Capital adequacy | 12 Months Ended |
Dec. 31, 2019 | |
Capital adequacy | |
Capital adequacy | Note 25. Capital adequacy Capital Adequacy Analysis December 31, 2019 December 31, 2018 Capital ratios percent(1) percent(1) Common Equity Tier 1 capital ratio 20.6 20.1 Tier 1 capital ratio 20.6 20.1 Total capital ratio 20.6 20.1 (1) Capital ratios excl. of buffer requirements are the quotients of the relevant capital measure and the total risk exposure amount. See tables Own funds - adjusting items and Minimum capital requirements exclusive of buffer. December 31, 2019 December 31, 2018 Buffers requirement Skr mn percent(1) Skr mn percent(1) Institution specific Common -Equity Tier 1 capital requirement incl. of buffers 7,890 8.9 7,380 8.5 of which minimum Common Equity Tier 1 requirements (2) 3,990 4.5 3,917 4.5 of which Capital conservation buffer 2,216 2.5 2,176 2.5 of which Countercyclical buffer 1,684 1.9 1,287 1.5 of which Systemic risk buffer — — — — Common Equity Tier 1 capital available as a buffer (3) 11,171 12.6 10,534 12.1 (1) Expressed as a percentage of total risk exposure amount. (2) The minimum requirements according to CRR (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) have fully come into force in Sweden without regard to the transitional period. The minimum requirements are 4.5 percent, 6.0 percent and 8.0 percent related to Common Equity Tier 1 capital, Tier 1 capital and total Own Funds respectively. (3) Common Equity Tier 1 capital ratio as reported less the minimum requirement of 4.5 percent and less 3.5 percent, consisting of Common Equity Tier 1 capital used to meet the Tier 1 and Tier 2 requirements, since SEK do not have any Additional Tier 1 or Tier 2 capital. December 31, 2019 December 31, 2018 Total capital requirement including buffers Skr mn percent(1) Skr mn percent(1) Total CRR capital requirement(2) 10,993 12.4 10,427 12.0 Total FSA capital requirement (calculated as of September 30, 2019)(3) 15,606 16.4 14,464 16.6 (1) Expressed as a percentage of total risk exposure amount. (2) The requirement includes the minimum requirement of 8 percent, the capital conservation buffer and the countercyclical buffer. Expressed as a percentage of total risk exposure amount. (3) The requirement includes the minimum requirement of 8 percent, the capital conservation buffer and the countercyclical buffer and an additional capital requirement according to the Swedish FSA. See the additional capital requirement in the table below. Current figures calculated with one quarter lag. Comparison figures based on year-end figures. Capital situation per December 31, 2019, calculation based on reported values as of September 30, 2019 December 31, 2018 Additional Capital requirement -according to Swedish FSA Skr mn percent(1) Skr mn percent(1) Credit-related concentration risk 2,089 2.2 2,089 2.4 Interest rate risk in the banking book 844 0.9 844 1.0 Pension risk 11 0.0 11 0.0 Other Pillar 2 capital requirements 936 1.0 936 1.1 Capital planning buffer — — 157 0.2 Total Additional Capital requirement according to Swedish FSA 3,880 4.1 4,037 4.7 (1) Expressed as a percentage of total risk exposure amount. Own funds — adjusting items Parent Company December 31, December 31, Skr mn 2019 2018 Share capital(1) 3,990 3,990 Retained earnings 12,829 11,239 Accumulated other comprehensive income and other reserves(2) 245 1,256 Independently reviewed profit net of any foreseeable charge or dividend 1,766 1,615 Common Equity Tier 1 (CET1) capital before regulatory adjustments 18,830 18,100 Additional value adjustments due to prudent valuation -445 -496 Intangible assets -56 -43 Fair-value reserves related to gains or losses on cash-flow hedges — -6 Gains or losses on liabilities valued at fair value resulting from changes in own credit -standing 93 112 Negative amounts resulting from the calculation of expected loss amounts -115 -136 Total regulatory adjustments to Common Equity Tier 1 capital -523 -569 Total Common Equity Tier 1 capital 18,307 17,531 Additional Tier 1 capital — — Total Tier 1 capital 18,307 17,531 Tier 2-eligible subordinated debt — — Credit risk adjustments(3) — — Total Tier 2 capital — — Total Own funds 18,307 17,531 (1) For a detailed description of the instruments constituting share capital, see note 22. (2) The equity-portions of untaxed reserves is included in the line “Accumulated other comprehensive income and other reserves”. (3) 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, 2019, the limitation rule had no effect (year end 2018: no effect). Minimum capital requirements exclusive of buffers Parent Company December 31, 2019 December 31, 2018 Risk Min. Risk Min. exposure capital exposure capital Skr mn EAD(1) amount requirement EAD(1) amount requirement Credit risk, standardized approach Corporates( 2) 2,367 2,367 189 1,701 1,701 136 Total credit risk, standardized approach 2,367 2,367 189 1,701 1,701 136 Credit risk, IRB approach Central governments 172,148 8,816 705 171,572 9,905 792 Financial institutions(3) 45,437 10,802 864 33,953 9,880 790 Corporates(4) 110,592 60,068 4,806 113,987 59,486 4,760 Non-credit-obligation assets( 5) 152 152 12 90 90 7 Total credit risk IRB approach 328,329 79,838 6,387 319,602 79,361 6,349 Credit valuation adjustment risk n.a. 2,534 203 n.a. 2,037 163 Foreign exchange risk n.a. 695 56 n.a. 879 70 Commodity risk n.a. 9 1 n.a. 10 1 Operational risk n.a. 3,214 257 n.a. 3,066 245 Total 330,696 88,657 7,093 321,303 87,054 6,964 (1) Exposure at default (EAD) shows the size of the outstanding exposure at default. (2) For the small and medium-sized enterprises category, with an annual turnover not exceeding EUR 50 million, the standardized method for calculating the capital requirement is applied from Q1 2019. (3) Of which counterparty risk in derivative contracts: EAD Skr 5,613 million (year-end 2018: Skr 4,525 million), Risk exposure amount of Skr 1,980 million (year-end 2018: Skr 1,668 million) and Capital requirement of Skr 158 million (year-end 2018: Skr 133 million) (4) Of which related to Specialized lending: EAD Skr 3,646 million (year-end 2018: Skr 3,400 million), Risk exposure amount of Skr 2,352 million (year-end 2018: Skr 2,157 million) and Capital requirement of Skr 188 million (year-end 2018:Skr 173 million). (5) As of January 1, 2019, SEK applies the new accounting standard IFRS 16 Leases, which means that leasing contracts are reported as an asset with rights-of-use. At the beginning of 2019, IFRS 16 resulted in increased assets of Skr 94 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, 2019 December 31, 2018 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%– 0.02– 0.12– 0.54– 27.27– Skr mn 0.01% 0.07% 0.12–0.32% 6.80% 100% 0.01% 0.07% 0.32% 6.80% 100% Central governments EAD 166,286 5,862 — — — 163,603 7,064 — — Average PD in % 0.004 0.05 — — — 0.004 0.04 — 1.5 — Average LGD in % 45.0 45.0 — — — 45.0 45.0 — 45.0 — Average risk weight in % 4.6 19.8 — — — 4.6 18.8 — 112.1 — December 31, 2019 December 31, 2018 A+ A+ AAA to A– BBB+ BB+ to B– CCC to D AAA to A– BBB+ BB+ to B– CCC to D to AA- 0.01%- 0.06– to BBB– 0.54– 28.60– 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 16,403 27,651 1,382 1 — 10,323 21,926 1,345 359 — Average PD in % 0.04 0.08 0.22 0.54 — 0.04 0.08 0.23 1.31 — Average LGD in % 35.3 37.1 45.0 45.0 — 43.8 44.2 45.0 45.0 — Average risk weight in % 17.1 25.7 64.6 99.9 — 20.1 29.3 66.0 135.5 — Corporates EAD 5,995 19,438 58,945 22,548 20 7,154 22,379 60,943 20,072 39 Average PD in % 0.04 0.10 0.25 0.83 28.6 0.03 0.10 0.25 0.79 63.11 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 % 19.7 33.1 51.7 86.8 263.7 18.6 33.0 51.5 85.5 136.2 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 for 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 26. 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 The capital adequacy ratios reflect the full impact of IFRS 9 as no transitional rules for IFRS 9 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. The mandatory capital conservation buffer is 2.5 percent. The countercyclical capital buffer rate applied to exposures located in Sweden was increased from 2.0 percent to 2.5 percent as of September 19, 2019. At December 31, 2019, the capital requirement related to credit-risk exposures in Sweden was 70 percent (year-end 2018: 70 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, 2019, the contribution to SEK’s countercyclical capital buffer from buffer rates in other countries was 0.1 percentage points (year-end 2018: 0.1 percentage points). Leverage ratio December 31, December 31, Skr mn 2019 2018 Exposure measure for the leverage ratio On-balance-sheet -exposures 288,146 281,529 Off-balance-sheet -exposures 35,856 33,159 Total exposure measure 324,002 314,688 Leverage ratio 5.7 % 5.6 % The leverage ratio is a metric introduced in 2015. Currently, SEK is not subject to a minimum leverage ratio requirement. However, a leverage ratio requirement of 3 percent will enter into force on June 27, 2021. 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 2019 2018 Credit risk 7,337 7,008 Operational risk 183 239 Market risk 1,109 1,094 Other risks 203 163 Capital planning buffer 992 1,966 Total 9,824 10,470 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 29 Risk and capital management. |
Risk information
Risk information | 12 Months Ended |
Dec. 31, 2019 | |
Risk information | |
Risk information | Note 26. Risk information For further information on SEK’s risk management, see note 29 Risk and capital management. Consolidation of SEK pursuant to the supervisory regulations differs from in the consolidated financial statements, where no consolidation pursuant to the supervisory regulation was conducted, since the wholly owned subsidiary, SEKETT AB, which is the only company in the Group aside from the Parent Company, is not a financial company. 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 and 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 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 stages: Stage 1, Stage 2 and Stage 3. Initially, all exposures are in Stage 1. Exposures where there is a significant increase in credit risk are placed in Stage 2 and Stage 3 encompasses exposures in default. Stage 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 Stage 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, the 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 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 internal ratings. SEK’s permission from the Swedish FSA to use the 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 granted SEK permission 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). The exempted exposures, for which the Standardized approach are used , are as follows (the permissions are valid as long as these exposures are of minor importance in terms of scope and risk profile): Exposures to small and medium-sized companies (with an annual turnover not exceeding 50 million euro) Exposures in the Customer Finance business area Guarantees for the benefit of small and medium-sized enterprises In the assessment of capital adequacy, those counterparties using external ratings are assigned an internal rating under IFRS 9. 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 define the maximum permissible risk levels in form of threshold amounts. 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 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 and the Finance and 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 Management 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 the independent risk function 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, 2019 Maximum credit-risk exposure Assets at fair value through Amortized Skr mn profit or loss costs Cash and cash equivalents — 1,362 Treasuries/government bonds 8,370 — Other interest-bearing securities except loans 54,132 — Loans in the form of interest-bearing securities — 43,793 Loans to credit institutions — 11,235 Loans to the public — 222,814 Derivatives 6,968 — Total financial assets 69,470 279,204 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 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; see also note 29 Risk and Capital Management. December 31, 2019 Skr mn AAA AA+ till A- BBB+ till BBB- BB+ till B- CCC till D Carrying amount Cash and cash equivalents 711 651 — — — 1,362 Treasuries/government bonds 2,191 6,153 — — — 8,344 Other interest-bearing securities except loans 20,092 33,284 530 — — 53,906 Loans in the form of interest-bearing securities — 9,785 29,622 4,220 — 43,627 Loans to credit institutions 2,285 23,455 1,205 65 — 27,010 Loans to the public 85,619 28,503 31,327 18,399 — 163,848 Derivatives — 5,822 1,146 — — 6,968 Total financial assets 110,898 107,653 63,830 22,684 — 305,065 Committed undisbursed loans 48,246 1,307 807 1,790 — 52,150 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 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, 2019 Adjustment to carrying Multilateral Carrying amount from Central Regional development Public sector Financial Skr bn amount exposure governments governments banks entity institutions Corporates Cash and cash equivalents 1.4 -0.1 — — — — 1.5 — Treasuries/government bonds 8.3 -0.1 8.4 — — — — — Other interest-bearing - securities except loans 53.9 0.0 3.3 10.6 2.8 4.0 26.7 6.5 Loans in the form of interestbearing securities 43.6 -0.2 — — — — 0.9 42.9 Loans to credit institutions including cash and cash equivalents(1) 27.0 16.9 0.9 5.1 — — 4.0 0.1 Loans to the public 163.8 -1.0 97.8 0.8 0.3 — 5.8 60.1 Derivatives 7.0 1.4 — — — — 5.6 0.0 Other assets 9.3 9.3 — — — — — — Total financial assets 314.3 26.2 110.4 16.5 3.1 4.0 44.5 109.6 Contingent liabilities and commitments(2) 59.3 0.0 50.8 — — — 1.2 7.3 Total 373.6 26.2 161.3 16.5 3.1 4.0 45.7 116.9 December 31, 2018 Adjustment to carrying Multilateral Carrying amount from Central Regional development Public sector Financial Skr bn amount exposure governments governments banks entity 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 (1) Skr 16.9 billion (2018: Skr 16.4 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 5.6 billion (2018: SEK 3.7 billion). For more information on the counterparty risk in derivative contracts under the CRR, refer to note 29 Risk and capital management. 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 bn Dec 31, 2019 Dec 31, 2018 Dec 31, 2019 Dec 31, 2018 Dec 31, 2019 Dec 31, 2018 Exposure class Amount % Amount % Amount % Amount % Amount % Amount % Central governments 110.4 39.1 121.2 43.8 50.9 78.3 48.4 80.3 161.3 46.4 169.6 50.3 Regional governments 16.5 5.8 13.4 4.8 — — — — 16.5 4.7 13.4 4.0 Multilateral development banks 3.1 1.1 0.1 0.0 — — 0.0 0.0 3.1 0.9 0.1 0.0 Public sector entity 4.0 1.4 0.6 0.2 — — — — 4.0 1.2 0.6 0.2 Financial institutions 38.9 13.8 28.7 10.4 6.8 10.5 5.5 9.1 45.7 13.2 34.2 10.1 Corporates 109.6 38.8 113.1 40.8 7.3 11.2 6.4 10.6 116.9 33.6 119.5 35.4 Total 282.5 100.0 277.1 100.0 65.0 100.0 60.3 100.0 347.5 100.0 337.4 100.0 Geographical breakdown of credit exposures by exposure class Geographical breakdown of gross exposures by exposure class December 31, 2019 Middle East/ Western Central and Africa/ Asia excl. North Latin Europe excl. Eastern Skr bn Turkey Japan Japan America Oceania America Sweden Sweden Europe Total Central governments 4.2 4.8 2.8 1.3 — 42.2 3.0 5.6 — 63.9 Regional governments 1.7 — — — — — 10.5 0.1 — 12.3 Multilateral development banks — — — — — — — 2.8 — 2.8 Public sector entity — — — — — — — 4.0 — 4.0 Financial institutions — 2.7 0.6 5.7 0.9 — 19.7 13.4 0.2 43.2 Corporates 21.1 8.6 1.4 65.1 — 7.6 82.6 31.3 3.6 221.3 Total 27.0 16.1 4.8 72.1 0.9 49.8 115.8 57.2 3.8 347.5 December 31, 2018 Middle East/ Western Central and Africa/ Asia excl. North Latin Europe excl. Eastern Skr bn 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 net exposures by exposure class December 31, 2019 Middle East/ Western Central and Africa/ Asia excl. North Latin Europe excl. Eastern Skr bn Turkey Japan Japan America Oceania America Sweden Sweden Europe Total Central governments — 0.6 2.8 2.8 — — 138.1 13.9 3.1 161.3 Regional governments — — — — — — 16.3 0.2 — 16.5 Multilateral development banks — — — — — — — 3.1 — 3.1 Public sector entity — — — — — — — 4.0 — 4.0 Financial institutions — 2.7 0.9 6.6 0.9 — 16.7 17.7 0.2 45.7 Corporates 4.5 1.7 3.8 4.0 — 2.8 80.1 19.9 0.1 116.9 Total 4.5 5.0 7.5 13.4 0.9 2.8 251.2 58.8 3.4 347.5 December 31, 2018 Middle East/ Western Central and Africa/ Asia excl. North Latin Europe excl. Eastern Skr bn 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 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 December 31, 2019 Gross exposures by exposure class whereof subject Multilateral to the write-down Central Regional development Public Financial requirement in Skr bn government governments banks Sector Entity institutions Corporates Total IFRS9(1) Amounts related to hedges issued by: Central governments 51.3 1.7 — — 0.0 95.7 148.7 148.7 of which, guarantees issued by the EKN 50.4 1.7 — — 0.0 83.0 135.1 135.1 of which, guarantees issued by other 0.9 — — — — 9.5 10.4 10.4 of which, other guarantees — — — — — 3.2 3.2 3.2 Regional governments — — — — 5.1 0.7 5.8 5.8 Multilateral development banks — — — — — 0.3 0.3 0.3 Financial institutions 0.0 — — — 0.0 7.7 7.7 7.7 of which, credit default swaps — — — — — — — — of which, guarantees 0.0 — — — 0.0 7.7 7.7 7.7 Corporates — — — — — 3.1 3.1 3.1 of which, credit insurance from insurance companies — — — — — 1.6 1.6 1.6 of which, other guarantees — — — — — 1.5 1.5 1.5 Total hedged exposures 51.3 1.7 — — 5.1 107.5 165.6 165.6 Unhedged exposures(2) 12.6 10.6 2.8 4.0 38.1 113.8 181.9 119.3 Total 63.9 12.3 2.8 4.0 43.2 221.3 347.5 284.9 (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 23.5 billion for corporates, Skr 4.2 billion for financial institutions and Skr 0.1 billion for central governments. December 31, 2018 Gross exposures by exposure class whereof subject to the write-down Central Regional Public Financial requirement in 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 — 0.0 — 5.5 0.8 6.3 6.3 Multilateral development banks — — — — 0.1 0.1 0.1 Financial institutions 0.0 — — 0.0 6.9 6.9 6.9 of which, credit default swaps — — — — — — — of which, guarantees 0.0 — — 0.0 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(1) 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) 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. Gross exposures Europe, excluding Sweden, breakdown by exposure class December 31, 2019 Central Regional Multilateral Public sector Financial Skr bn governments governments development banks entity institutions Corporates Total Spain — — — — 0.5 8.1 8.6 Germany 2.8 — — 4.0 0.5 — 7.3 Norway — — — — 2.0 5.1 7.1 Finland 0.6 0.1 — — 0.1 6.2 7.0 United Kingdom — — — — 2.4 2.6 5.0 Italy — — — — — 3.6 3.6 France — — — — 2.0 1.5 3.5 The Netherlands — — — — 3.2 0.2 3.4 Luxembourg 0.6 — 2.8 — — — 3.4 Poland — — — — — 3.1 3.1 Denmark — — — — 0.9 1.4 2.3 Belgium 1.6 — — — 0.0 0.2 1.8 Austria — — — — 1.7 — 1.7 Switzerland — — — — — 1.5 1.5 Portugal — — — — — 0.6 0.6 Russian Federation — — — — — 0.4 0.4 Ireland — — — — — 0.3 0.3 Latvia — — — — 0.2 — 0.2 Iceland — — — — — 0.1 0.1 Estonia — — — — 0.1 0.0 0.1 Ukraine — — — — — 0.0 0.0 Total 5.6 0.1 2.8 4.0 13.6 34.9 61.0 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 Net exposures Europe, excluding Sweden, breakdown by exposure class December 31, 2019 Multilateral Central Regional development Public sector Financial Skr bn governments governments banks entity institutions Corporates Total Germany 3.7 — — 4.0 1.0 0.4 9.1 France 6.3 — — — 1.6 0.1 8.0 United Kingdom 0.1 — — — 3.4 4.5 8.0 Norway 0.4 — — — 2.0 4.9 7.3 Finland 0.8 0.2 — — 0.2 5.6 6.8 Luxembourg 0.5 — 3.1 — — 0.8 4.4 The Netherlands 0.3 — — — 3.4 0.2 3.9 Denmark 0.2 — — — 1.8 1.3 3.3 Poland 3.1 — — — — 0.0 3.1 Belgium 1.6 — — — 0.6 0.2 2.4 Spain — — — — 1.7 0.4 2.1 Austria — — — — 1.7 — 1.7 Switzerland — — — — 0.2 0.5 0.7 Portugal — — — — — 0.6 0.6 Ireland — — — — — 0.3 0.3 Latvia — — — — 0.2 — 0.2 Iceland — — — — — 0.1 0.1 Italy — — — — — 0.1 0.1 Estonia — — — — 0.1 0.0 0.1 Total 17.0 0.2 3.1 4.0 17.9 20.0 62.2 December 31, 2018 Multilateral Central Regional development Public sector Financial Skr bn governments governments banks entity institutions 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 Corporate exposures, broken down by industry (1) December 31, 2019 December 31, 2018 Skr bn Gross exposure Net exposure Gross exposure Net exposure IT and telecom 84.6 13.6 79.6 13.0 Industry 46.6 40.7 46.9 41.0 Finance 23.3 12.8 27.6 16.6 Commodities 21.2 16.6 24.5 19.0 Consumer goods 25.1 23.8 21.8 20.4 Electricity, water and gas 13.7 4.4 15.0 5.6 Healthcare 4.8 4.6 3.5 3.2 Energy 1.8 0.2 2.5 0.5 Other 0.2 0.2 0.2 0.2 Total 221.3 116.9 221.6 119.5 (1) In accordance with the reporting standard (GICS). 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. A distinction is made between market risk of non-market valued assets and liabilities and fair valued assets and liabilities. Market risk includes price risk in connection with sales of assets or the closing of exposures. Risk management SEK’s Board establishes SEK’s appetite and strategy for market risk. 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 market risk. The Chief Risk Officer decides on the method for measuring market risks and proposes changes in limit structures in connection with reviews of risk appetite and limits. 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. 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 intention is to hold assets and liabilities to maturity. The duration of available funding 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 both earnings and SEK’s own funds. SEK’s largest net exposures are to changes in spreads, mainly to credit spreads associated with assets and liabilities and to cross-currency basis spreads. Spread risks are managed by having established limits and daily limit monitoring. 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. The Company's risk appetite for market risk resulting from unmatched cash flows is low. Risk measurement The following describes how SEK calculates and limits market risk internally. The government compensates SEK for all interest-rate differentials, borrowing costs and net foreign-exchange losses within the CIRR-system (see note 1). The CIRR-system is therefore reported separately. Value at Risk SEK’s primary market risk metric is Value at Risk (VaR). VaR is a statistical market risk metric which is based on two years of daily market movements and estimates the potential loss over a one-day horizon with a confidence level of 99 percent. Historical simulations 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, FX rates, equities, commodity and equity indices as well as volatilities of swaptions, caps/floors, equities, commodity and equity indices and currencies. VaR is calculated for SEK’s portfolio and separately for the liquidity portfolio for positions on the balance sheet that impact own funds. At year-end, VaR for own funds amounted to Skr 18 million (year-end 2018: Skr 14 million) and for the liquidity portfolio VaR was Skr 10 million (year-end 2018: Skr 8 million). The risk appetite for corresponding exposures is Skr 100 million (year-end 2018: Skr 100 million) and Skr 50 million (year-end 2018: Skr 50 million) respectively. The increase in VaR for own funds can be explained by market movements, especially from cross-currency spreads, combined with new cross-currency swap deals and an increase in the duration of liquid assets. Stressed VaR, Aggregated risk measure and stress tests SEK conducts regular stress tests by applying movements in market factors that have been historically observed in the market (historical scenarios) and movements that could happen in the future (hypothetical or forward-looking scenarios). SEK calculates stressed VaR using the worst one-year period for the company since 2007. At year-end 2019, the calculation was based on the period July 2008 until June 2009. The Aggregated risk measure is based on analyses of historical scenarios with a monthly risk horizon since 2007. The Aggregated risk measure estimates the impact on SEK’s own funds by applying historically observed movements in interest rates, cross-currency basis spreads, FX rates and credit spreads in assets. The exposure is based on the worst case scenario and calculation is done by full revaluation. At year-end 2019, the worst scenario was market movements from October 2008. The risk at year-end 2019 amounted to Skr 452 million (year-end 2018: Skr 742 million). The risk appetite is set at Skr 1,100 million (year-end 2018: Skr 1,100 million). The forward-looking scenarios include interest rate chocks and reversed stress tests. Analyses of this type provide management with insight into the potential impact on SEK's operations of significant movements in risk factors, or of broader market scenarios, and also continuously ensure that the risk measurement is effective. Risk-specific measures The VaR, Aggregated risk measure and stress tests are complemented with risk-specific measures, including interest-rate risk measures, spread-risk measures, and currency-risk measures. Market risk, type Definition Risk profile Total risk: Value at Risk (VaR), stressed VaR (sVaR) VaR measures a potential negative impact on SEK’s own funds, in the form of unrealized gains or losses. The ris |
Transactions with related parti
Transactions with related parties | 12 Months Ended |
Dec. 31, 2019 | |
Transactions with related parties | |
Transactions with related parties | Note 27. Transactions with related parties SEK defines related parties to the Parent Company and the Group as: the shareholder, i.e., the Swedish government The Swedish government owns 100 percent of the Company’s share capital. By means of direct guarantees extended by the Swedish Export Credits Guarantee Board, EKN, 38 percent (Year-end 2018: 40 percent) of the Company’s loans outstanding on December 31, 2019 were guaranteed by the Swedish government. The remuneration to EKN for the guarantees paid by SEK during 2019 amounted to Skr 0 million (2018: Skr 0 million). SEK administers, in return for compensation, the Swedish system for officially supported export credits (CIRR system), and the government’s previous concessionary credits system, refer to note 1 and note 25. During 2019, SEK had a Skr 125 billion (2018: Skr 125 billion) credit facility with the Swedish National Debt Office which was entirely related to the CIRR-system. In December 2019, the credit facility was extended for 2020. 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 (2018: 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: 2019 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 2,191 16 — — 2,191 16 Other interest-bearing securities except loans — — 600 -4 600 -4 Loans in the form of interestbearing securities — — 1,699 21 1,699 21 Loans to credit institutions — — 2,665 87 2,665 87 Loans to the public — — 2,056 53 2,056 53 Settlement claim against the State(1) 9,124 — — — 9,124 Total 11,315 16 7,020 157 18,335 173 Debt securities issued — — — — — — Other liabilities 24 — — — 24 — Total 24 — — — 24 — 2018 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 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 — — — — — — Other liabilities 18 — — — 18 — Total 18 — — — 18 — (1) For information about “Settlement claim against State,” see note 16 Other assets and note 24 CIRR system. |
Events after the reporting peri
Events after the reporting period | 12 Months Ended |
Dec. 31, 2019 | |
Events after the reporting period | |
Events after the reporting period | Note 28. Events after the reporting period No events with significant impact on the information in this report have occurred after the end of the reporting period. |
Risk and capital management
Risk and capital management | 12 Months Ended |
Dec. 31, 2019 | |
Risk and capital management | |
Risk and capital management | Note 29. Risk and capital management The Risk and capital management note 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 25 Capital adequacy and note 26 Risk information, respectively. Events in 2019 2019 was marked by an economic downturn, though occurring after years of strong growth. Conditions stabilized somewhat in the fourth quarter, albeit at a substantially lower level than at the start of the year. Developments in the geopolitical situation have helped stabilize the situation. The first step in this direction appear to have been the trade agreement between the US and China. Remaining uncertainty primarily pertains to developments in the relationship between the US and Iran, and the political unrest in Hong Kong. In 2019, new regulations were introduced which are now subject to implementation. SEK has started preparations for the implementation of the Banking Reform Package. Work with the reference rate framework will intensify during 2020, even if the timetables for the various reference rates have yet to be finalized. Regulations are in place to manage the financial sector over the Brexit transition period. SEK’s capital adequacy has increased slightly in 2019. At the end of the year, the total capital ratio was 20.6 percent (2018: 20.1 percent), of which the Tier 1 capital ratio and the Common Equity Tier 1 ratio both amounted to 20.6 percent (2018: 20.1 percent). The main reason behind the increase in capital adequacy was a lower average risk weight for the liquidity portfolio as a result of a larger share of exposure to government debt. SEK’s total exposure has increased somewhat since the end of 2018 due to the weakening of the Skr against the USD and EUR as well as due to higher lending. SEK’s largest financial risks are credit risk (Skr 7.3 billion (2018: Skr 7.0 billion) in allocated capital), market risk (Skr 1.1 billion (2018: Skr 1.1 billion) in allocated capital) and operational risk (Skr 0.2 billion (2018: Skr 0.2 billion) in allocated capital) in line with internally assessed capital adequacy. The leverage ratio amounted to 5.7 percent (2018: 5.6) at year end. The minimum requirement for own funds and eligible liabilities (MREL) is 7.2 percent for 2020 (for 2019: 8.3) of total liabilities and own funds. Under the applicable Swedish legislation, SEK needs to issue at least Skr 11 billion in senior non-preferred (SNP) debt before 2022, said debt being subordinate to other senior debt (senior preferred). However, current legislation does not take into account the updated Bank Recovery and Resolution Directive (BRRD II) of 2019. The government's review committee has presented proposed legislation to include the changes in the Bank Recovery and Resolution Directive. The proposed legislation would mean that SEK needs to issue a somewhat lower volume of SNP debt. The time frame is proposed to be extended to 1 January 2024, but with a gradual transition period to be decided by the Swedish National Debt Office. 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 (2018: 5 months), and by the liquidity coverage ratio (LCR), which was 620 percent (2018: 266) at year end. The net stable funding ratio (NSFR) amounted to 120 percent (2018: 144) at year end. The decline in the NSFR was partly attributable to the fact that SEK chose to change a calculation method from second quarter of 2019. The VaR for all positions at fair value amounted to Skr 18 million (2018: Skr 14 million) at year end. Capital target The company’s capital target, which is one of the principal control instruments, is established by the Swedish Government at a general meeting of the shareholders. The capital target is designed to ensure that SEK has sufficient capital to support its strategy and that regulatory requirements are met, even in the event of deep economic declines. In addition, SEK’s own funds must also cover the volatility that may be expected under normal conditions. The capital target was changed at the Extraordinary General Meeting in June 2019. The capital target is for SEK's total capital ratio to amount to between two (2) and four (4) percentage points over the requirement communicated by the Swedish FSA. Moreover, SEK's Common Equity Tier 1 ratio is in total at least four (4) percentage points above the requirement communicated by the Swedish FSA. As a result of the Swedish FSA’s review and evaluation process, SEK was required to have a total capital ratio of 16.4 percent (September 30, 2018: 16.7), based on the balance sheet at September 30, 2019 , as compared with a total capital ratio and CET1 ratio on December 31, 2019 of 20.6 percent (December 31,2018: 20.1), which means that SEK meets the capital target. 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). 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 is 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 capital targets, risk appetite, limits, 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 planning1. 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. 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. Liquidity risk encompasses refinancing risk and market liquidity risk. 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 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 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 due to changes in, for example, interest rates, exchange rates, commodity prices or share prices. A distinction should be made between market risk for assets and liabilities not marked to market, and financial assets and liabilities at fair value. Market risk includes price risk in connection with sales of assets or the closing of exposures. 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 inappropriate, inadequate or faulty processes or procedures, systems, human error, or from external events. Operational risk includes legal, IT and information security risk. 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 failure to meet obligations pursuant on the one hand to legislation , ordinances and other regulations , and on the other hand to internal rules..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 Business risk is the risk of an unexpected decline in revenue resulting from, for example, changes to competitive conditions with a consequent decrease in volumes and/or falling margins. 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 effects from outsourcing, or the lack of adequate response to changes in the regulatory and business environment. Strategic risk focuses on large-scale and structural risk factors. 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 that SEK’s operations directly or indirectly impact their surroundings negatively with respect to business ethics, corruption, climate and the environment, human rights and labor conditions. Human rights includes the child rights perspective; labor conditions encompasses gender equality and diversity; and ethics includes tax transparency. 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, 2019 | |
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 information in these notes relates to both the Consolidated Group and the Parent Company, unless otherwise stated. Certain additional disclosures required by applicable regulations or legislation are included in the notes. The Consolidated Financial Statements and the Parent Company’s annual report were approved for issuance by SEK’s Board of Directors on February 20, 2020. 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 26, 2020. (ii) Basis of measurement The Consolidated Financial Statements have been prepared on an amortized cost basis, subject to the following exceptions: (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 2018 annual report, except for the changes described below. In addition to the changes below, 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 are not mentioned are either not applicable to SEK or have been determined to not have a material impact on SEK’s financial reporting. (i) IFRS 16 Leasing As of January 1, 2019, SEK began applying IFRS 16 Leases to the Consolidated Group and the Parent Company. The standard replaces IAS 17, and related interpretations with changes for lessees. The standard became applicable January 1, 2019. 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 are to be recognized as repayments and interest expenses. As a result, the straight-line operating lease expense is replaced by an expense for depreciation of the right-of-use lease assets and an interest expense on the lease liability. In the statement of cash flows, payments for the principal portion of the lease liability are presented within financing activities and payments for the interest portion are presented within operating activities. Lessor accounting remains essentially unchanged. IFRS 16 has primarily affected SEK's recognition of operational leases for rental premises, as the lease definition and lease criteria have not resulted in other agreements being regarded as leases as compared to IAS 17. SEK has also decided to apply the exceptions for short-term and low-value leases. The right-of-use asset is accounted for under Tangible and intangible assets and the leasing liability is accounted for under Other liabilities. The lease term is determined as the non-cancellable period of a lease, together with any extension or termination options when SEK is reasonably certain to exercise them. The future cash flows are discounted using SEK's incremental borrowing rate. SEK applied the simplified approach during the transition to IFRS 16, and measured the right-of-use asset at an amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to the lease. Right-of-use assets, leasing liabilities, depreciation and interest expenses are not expected to have any material impact on SEK's financial statements or capital adequacy or large exposure ratios. The table shows the transition effect of IFRS 16 reconciling the closing balances under IAS 17 as of December 31, 2018, with the opening balances under IFRS 16 as of January 1, 2019. Transition effect from IFRS 16 on Consolidated Statement of Financial Position Skr mn Dec 31, 2018 Effect Jan 1, 2019 Assets Tangible and intangible assets 69 94 163 Total assets 302,033 94 302,127 Liabilities Other liabilities 1,069 95 1,164 Accrued expenses and prepaid revenues 2,583 -1 2,582 Total liabilities 283,794 94 283,888 Reconciliation of lease commitments according to IAS 17 at December 31, 2018 to lease liabilities at January 1, 2019 Skr mn Future minimum lease payments under non-callable leases at December 31, 2018(1) -92 Discounting effect(2) 0 Increase in lease term -2 Deduction for leases reclassified as low value leases 0 Other changes -1 Lease liability at January 1, 2019 -95 (1) According to IAS 17, see note 8. (2) The average incremental borrowing rate is 0.32%. (ii) Changes in IFRS 9 and IFRS 7 - reform for new reference rates SEK has elected early adoption of the amendments to IFRS 9, IAS 39 and IFRS 7 Interest Rate Benchmark Reform issued by IASB in September 2019 (IBOR reform). The amendments have been adopted retrospectively to hedging relationships that existed at the start of the reporting period or were designated thereafter. The amendments provide temporary relief for hedge accounting requirements for hedging relationships directly affected by IBOR reform and allow hedge accounting to continue as before during the relief period. The reliefs that apply to SEK are 1) in assessing the economic relationship between the hedged item and the hedging instrument assume that the interest rate benchmark on which the hedged risk is based on is not altered by IBOR reform, and 2) the risk component only needs to be separately identifiable at initial recognition and not on an ongoing basis. The amendments becomes applicable at January 1, 2020, and must be applied retrospectively. The changes are not expected to have any material impact on SEK's financial statements, capital adequacy or large exposure ratios. (iii) Changes in Swedish regulations FFFS 2008:25 was amended to include new disclosure requirements related to capital requirements and own funds. The new disclosure requirements are included in note 25 Capital adequacy. In addition, the Swedish Financial Reporting Board has amended the accounting recommendation for legal entities by issuing “RFR 2 Supplementary Accounting Rules for Legal Entities – January 2019”. SEK implemented those amendments on January 1, 2019 but they have not had any significant impact on SEK’s Financial Statements. |
Basis of consolidation | (d) Basis of consolidation The Consolidated Financial Statements encompass the Parent Company and 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 the 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 2019, 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 chief executive officer (“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 income and interest expense related to all financial assets and liabilities, regardless of classification, are recognized in net interest income. Interest income and interest expense are recognized on a gross basis, with the exception of interest income 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 income, 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 income. 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 income 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 income 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 income 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 (the “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 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. All assets and liabilities related to the CIRR-system are respectively included in the Consolidated Statement of Financial Position 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). 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). Derivatives are 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. 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 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. (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 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 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 (SEK as a lessor). 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. Lease liability (SEK as a lessee). 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 are to be recognized as repayments and interest expenses. The leasing liability is accounted for under Other liabilities. The lease term is determined as the non-cancellable period of a lease, together with any extension or termination options when SEK is reasonably certain to exercise them. Reassessments of extensions and terminations options are made upon the occurrence of either a significant event or a significant change in circumstances that is within the control of SEK and will affect the assessment of whether it is reasonably certain to exercise the option. The lease term is revised if there is a change in the non-cancellable period of lease, for example, if an option not previously included in the lease term is exercised. The lease liability consists of the future cash flows, which are discounted using SEK's incremental borrowing rate. SEK has also decided to apply the exceptions for short-term and low-value leases, for example office machinery, which are accounted for as leasing cost under other administrative expenses. SEK has elected not to separate non-lease components from lease components, and accounts for each lease component and any associated non-lease component, except for expenses for real estate tax and non-deductible value added tax, as a single lease. 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; the hedge ratio of the hedging relationship is the same as that actually used in the economic hedge; and the effects of the forthcoming reforms to reference rates, as this might have a different impact on the hedged item and the hedging instrument, see note 14 for further information. 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. (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 chief financial officer (“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 established valuation models 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 The impairment of exposures are based on expected credit losses (ECL). All assets measured at amortized cost, including credit commitments and financial guarantees, are to be tested for any impairment. The model for calculating ECL is based on an exposure being at one of three different stages. Initially, all exposures were at stage 1. Stage 1 also includes exposures where the credit risk is no longer significantly higher and which have therefore been reclassified from stage 2. In stage 1, the ECL calculation should correspond to provisions based on expected credit losses for the forthcoming 12-month period (12mECL). Where the credit risk has increased significantly since initial recognition, the exposure is moved to stage 2. Stage 2 also includes exposures where the counterparty/exposure is no longer in default and which have therefore been reclassified from stage 3, as well as a smaller portion of exposures that lack an initial rating and where the rating is below BBB. In stage 2, the provision is based on expected credit losses over the remaining lending period of the asset (LTECL). If the exposure moves into default, it is moved to stage 3, where the ECL calculation continues to be based on LTECL. 12mECL comprises the part of LTECL that arises from expected credit losses based on the probability of default (PD) within 12 months of the reporting date. Both LTECL and 12mECL are calculated on an individual basis. SEK has chosen to use credit rating models for all exposures, in other words, to calculate expected credit losses (ECL) by using the probability of default (PD), loss given default (LGD) and exposure at default (EAD). Significant increase in credit risk. A significant increase in credit risk is a relative assessment, whereby the credit quality at the reporting date is compared with the initial credit quality when the exposure was recognized. The starting point when assessing what should be included as criteria for the assessment of credit risk is the existing process for following up credit risk and credit risk management within SEK. All counterparties are given a risk rating, which means that risk classification forms the basis for follow-up should a significant increase in credit risk have occurred. Moreover, other indicators currently in use to follow up credit risk in exposures and of counterparties, include the number of days past due, forbearance measures and other risk raising factors, such as deviations from covenants. These indicators are applied to assess credit risk and whether a significant increase in credit risk has occurred. Risk classification . A significant increase in credit risk is defined based on a deterioration by a number of steps in the initial rating and where a separation is made between exposures with an initial rating of AAA to A - and others. Number of days past due . SEK applies the presumption specifically stated in IFRS 9 and applies a more than 30-days-past-due criterion for receivables when assessing a significant increase in credit risk. All exposures that are more than 30-days-past-due will therefore be included in stage 2 and the LTECL will be calculated for these exposures. To ensure that there is no longer a significant increase in credit risk, a waiting period is applied following the resumption of payments and all past-due receivables being extinguished for the exposure. Appropriate waiting periods are assessed on an ongoing basis to, at any given time, ensure that a reasonable waiting period is set given SEK’s exposures and payment structures. |
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. The right-of-use assets according to IFRS 16 Leases are accounted for as tangible assets when the underlying assets are tangible assets. SEK account or right-of-use assets for rental premises as tangible assets. |
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 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) 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 21.4 percent (2018: 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 considers the judgments made related to the following critical accounting policies to be 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 expected 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 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 26 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 24. (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 26 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, 2019, financial assets and liabilities for which valuation models were used, and where market inputs with a significant effect on the recoded fair value are observable (level 2) amounted to Skr 32 billion (2018: Skr 64 billion) and Skr 31 billion (2018: Skr 32 billion) 11 percent and (2018: 22 percent) 10 percent (2018: 12 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 (2018: Skr 2 billion) and Skr 46 billion (2018: Skr 54 billion) 1 percent and (2018: 1 percent) 16 percent (2018: 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, 2019, 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 -172 million (2018: Skr -243 million) and Skr 175 million (2018: Skr 242 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 expected credit losses 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, 2019 if the definition of significant increase in credit risk had been one less step of deterioration the impairments would have been Skr 23 million higher (2018: Skr 29 million), and if the definition had been one more step of deterioration the impairments would have been Skr 1 million lower (2018: Skr 1 million). 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, 2019 if the probability of a downturn scenario, or an upturn scenario, would have been weighted with 100% probability the impairments would have been Skr 11 million higher (2018: Skr 10 million) or Skr 16 million lower (2018: Skr 10 million), respectively. On December 31, 2019, SEK’s total lending including off-balance sheet exposures amounted to Skr 277 billion (2018: Skr 265 billion) and the related impairment reserve amounted to Skr 128 million (2018: Skr 139 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, 2019 by an additional approximately Skr 13 million (2018: Skr 14 million) and equity at the same date by approximately Skr 10 million (2018: 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. |
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 IFRS or IFRS IC interpretations that are not yet applicable are not 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, 2019 | |
Significant accounting policies | |
Schedule of effect of IFRS 16 on statement of financial position | Skr mn Dec 31, 2018 Effect Jan 1, 2019 Assets Tangible and intangible assets 69 94 163 Total assets 302,033 94 302,127 Liabilities Other liabilities 1,069 95 1,164 Accrued expenses and prepaid revenues 2,583 -1 2,582 Total liabilities 283,794 94 283,888 |
Schedule of reconciliation of lease commitments according to IAS 17 at December 31, 2018 to lease liabilities at January 1, 2019 | Skr mn Future minimum lease payments under non-callable leases at December 31, 2018(1) -92 Discounting effect(2) 0 Increase in lease term -2 Deduction for leases reclassified as low value leases 0 Other changes -1 Lease liability at January 1, 2019 -95 (1) According to IAS 17, see note 8. (2) The average incremental borrowing rate is 0.32%. |
Net interest income (Tables)
Net interest income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net interest income | |
Schedule of net interest income | Skr mn 2019 2018 2017 Interest income Loans to credit institutions 2,005 1,475 789 Loans to the public 2,656 2,534 2,265 Loans in the form of interest-bearing securities 829 672 629 Interest-bearing securities excluding loans in the form of interest-bearing securities 686 523 458 Derivatives -291 -210 -372 Administrative remuneration CIRR-system(1) 194 157 125 Other assets 4 2 2 Total interest income 6,083 5,153 3,896 Interest expenses Interest expenses excl. resolution fee -4,197 -3,445 -2,020 Resolution fee -169 -266 -193 Total interest expenses -4,366 -3,711 -2,213 Net interest income 1,717 1,442 1,683 Skr mn 2019 2018 2017 Interest income were related to: Available-for-sale financial assets — — 426 Financial assets at fair value through profit or loss 700 574 253 Derivatives used for hedge accounting -303 -261 -253 Financial assets at amortized cost 5,686 4,840 3,470 Total interest income 6,083 5,153 3,896 Interest expenses were related to: Available-for-sale financial assets — — -93 Financial liabilities at fair value through profit or loss 1,183 704 278 Financial assets measured at fair value through profit or loss – negative – interest on income -72 -104 — Financial assets measured at amortized cost - negative interest income -9 -27 -37 Derivatives used for hedge accounting -286 106 1,479 Financial liabilities at amortized cost -5,182 -4,390 -3,840 Total interest expenses -4,366 -3,711 -2,213 Net interest income 1,717 1,442 1,683 |
Schedule of interest income by geographical areas | Interest income geographical areas Skr mn 2019 2018 2017 Sweden 3,172 2,458 1,724 Europe except Sweden 927 932 723 Countries outside of Europe 1,984 1,763 1,449 Total interest income 6,083 5,153 3,896 |
Schedule of interest income by product group | Interest income per product group Skr mn 2019 2018 2017 Lending to Swedish exporters 1,954 1,709 1,398 Lending to exporters’ customers(2) 1,510 1,452 1,251 Liquidity 2,619 1,992 1,247 Total interest income 6,083 5,153 3,896 (1) Including administrative remuneration for concessionary loans by Skr 2 million (2018: Skr 2 million). (2) In interest income for Lending to exporters’ customers, Skr 192 million (2018: Skr 155 million) represent remuneration from the CIRR-system (see note 24). |
Net fee and commissions expen_2
Net fee and commissions expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Net fee and commissions expense | |
Schedule of fees and commissions expenses | Skr mn 2019 2018 2017 Fee and commissions earned were -related to(1): Lending 1 5 3 Total 1 5 3 Commissions incurred were -related to(1): Depot and bank fees -8 -7 -6 Brokerage -5 -4 -4 Other commissions incurred -21 -26 -21 Total -34 -37 -31 Net fee and commissions expense -33 -32 -28 (1) Skr -28 million (2018: Skr -28 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, 2019 | |
Net results of financial transactions | |
Schedule of net results of financial transactions | Skr mn 2019 2018 2017 Derecognition of financial instruments not measured at fair value through profit or loss: Available-for-sale financial assets — — -17 Financial assets at amortized cost 19 24 16 Financial assets or liabilities at fair value through profit or loss: Designated upon initial recognition (FVO) -5,590 7,315 -326 Mandatorily 5,710 -7,360 278 Financial instruments under fair-value hedge accounting: Net results of the hedging instrument 2,846 -192 -999 Net results of the hedged item -2,761 235 946 Currency exchange-rate effects on all assets and liabilities excl. currency exchange-rate effects related to revaluation at fair value 2 -3 0 Total net results of financial -transactions 226 19 -102 |
Personnel expenses (Tables)
Personnel expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Personnel expense | |
Summary of total personnel expenses | Skr mn 2019 2018 2017 Salaries and remuneration to the Board of Directors and the CEO -7 -7 -7 Salaries and remuneration to Senior Executives -23 -21 -20 Salaries and remuneration to other employees -161 -158 -162 Pensions -60 -52 -58 Social insurance -63 -59 -61 Other personnel expenses -19 -14 -12 Total personnel expenses -333 -311 -320 |
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 2019 committee Fixed Other Skr thousand fee remuneration(1) benefits(2) Pension fee(3) Total Chairman of the Board of Directors: Lars Linder-Aronson -603 — — — -603 Other members of the Board of Directors: Cecilia Ardström -308 — — — -308 Anna Brandt(4) — — — — — Reinhold Geijer -275 — — — -275 Hans Larsson -249 — — — -249 Eva Nilsagård -277 — — — -277 Ulla Nilsson -298 — — — -298 Hélène Westholm(4), resigned March 28, 2019 — — — — — Hanna Lagercrantz(4), from March 28, 2019 — — — — — Senior Executives: Catrin Fransson, Chief Executive Officer (CEO)(5) — -5,015 -25 -1,462 -6,502 Per Åkerlind, Head of Treasury and Capital Management and -Executive Vice President — -3,509 -30 -1,123 -4,662 Karl Johan Bernerfalk, General Counsel — -1,507 -23 -529 -2,059 Andreas Ericson, Head of Mid Corporates — -1,978 -28 -607 -2,613 Stefan Friberg, Chief Financial Officer (CFO) — -2,922 -27 -500 -3,449 Teresa Hamilton Burman, Chief Credit Officer (CCO) — -2,353 -18 -508 -2,879 Jens Hedar, Head of Large Corporates — -2,224 -15 -649 -2,888 Petra Könberg, Head of Marketing & Business Development — -1,236 -33 -407 -1,676 Irina Slinko, acting Chief Risk Officer (CRO), resigned August 20, 2019 — -1,159 -12 -365 -1,536 Anna-Lena Söderlund, acting Chief Risk Officer (CRO), from August 21, 2019, resigned October 27, 2019 — -278 -6 -115 -399 Peter Svensén, Chief Risk Officer (CRO), from October 28, 2019 — -471 -3 -80 -554 Sirpa Rusanen, Chief Human Resources Officer (CHRO) — -1,644 -42 -623 -2,309 Susanna Rystedt, Chief Administrative Officer (CAO) — -2,484 -40 -759 -3,283 Madeleine Widaeus, Chief Information Officer (CIO) — -1,574 -16 -463 -2,053 Total -2,010 -28,354 -318 -8,190 -38,872 (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 not paid from the Company to the representatives on the Board of Directors who are employed by the owner, the Swedish Government. (5) 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 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(C) -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 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 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 -344 — — — -344 Jan Belfrage, resigned March 22, 2017 -72 — — — -72 Anna Brandt, from November 21, 2017 — — — — — Reinhold Geijer, from March 22, 2017 -213 — — — -213 Hans Larsson, from March 22, 2017 -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. |
Summary of information about pension plans | The total pension cost for defined benefit and defined contribution obligations are shown below Skr mn 2019 2018 2017 Service cost -6 -4 -5 Regulation of pension obligations 0 5 — Interest cost, net -2 -1 -1 Pension cost for defined benefit pensions, incl. payroll tax -8 0 -6 Pension cost for defined contribution pension cost incl. payroll tax -52 -52 -52 Pension cost recognized in personnel costs -60 -52 -58 Actuarial gains and (losses) on defined benefit obligation during period -16 -48 -7 Return above expected return, gains and (losses) on plan assets 12 0 3 Change in the effect of the asset ceiling excluding interest — — — Revaluation of defined benefit plans -4 -48 -4 Net value of defined benefit pension obligations Skr mn 2019 2018 2017 Defined benefit obligations 272 253 263 Plan assets -189 -173 -223 Restriction to net defined benefit asset due to the asset ceiling 0 0 0 Provision for pensions, net obligation(1) 83 80 40 |
Summary of development of defined benefit obligations and assets | Development of defined benefit obligations Skr mn 2019 2018 2017 Defined benefit obligation, opening balance 253 263 254 Service cost 6 4 5 Interest cost 5 6 7 Pension Payments incl. special payroll tax -8 -9 -10 Other 0 -59 — Actuarial (gains) and losses, effect due to changed demographic assumptions — — — Actuarial (gains) and losses, effect due to changed financial assumptions 25 46 9 Actuarial (gains) and losses, effect due to experience based outcome -9 2 -2 Defined benefit obligation, closing balance 272 253 263 Development of plan assets related to defined benefit obligation Skr mn 2019 2018 2017 Fair value of plan assets, opening balance 173 223 216 Expected return on plan assets 4 5 6 Contributions by the employer(1) 7 7 7 Benefits paid(2) -7 -8 -8 Other(3) 0 -54 — Return on plan assets excluding interest income 12 0 2 Fair value of plan assets, closing balance 189 173 223 (1) Expected contribution from the employer in the following year is Skr 6 million (2018: Skr 6 million) excluding payroll tax. (2) Expected compensation paid in the following year is Skr 9 million (2018: Skr 8 million). (3) Regulation of pension obligations related to Venantius AB and its subsidiaries, which were liquidated in 2018. |
Summary of plan assets | Distribution of plan assets related to defined benefit obligation Skr mn 2019 2018 2017 Domestic equity investments 4 3 4 Foreign equity investments 17 12 16 Domestic government bonds 49 43 63 Domestic corporate bonds 22 26 40 Mortgage bonds 49 49 76 Other Investments 25 19 — Properties 23 21 24 Total 189 173 223 |
Summary of principal actuarial assumptions used end of year | % 2019 2018 2017 Discount rate 1.7 2.1 2.5 Assumption of early pension withdrawal 20.0 20.0 20.0 Expected salary increase 2.0 2.0 2.0 Expected inflation 2.0 2.0 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 % 0.7 % +1 % 2.7 % Defined benefit obligation 351 215 Service cost 8 5 Interest cost 2 6 Expected lifetime +1 year -1 year Defined benefit obligation 286 260 Service cost 6 6 Interest cost 5 4 |
Summary of net reconciliation of pension liabilities | Skr mn 2019 2018 2017 Pension liabilities, opening balance 80 40 38 Net periodic pension cost 7 0 6 Contributions by the employer -7 -7 -7 Net pension payments -1 -1 -1 Revaluations recognized in other comprehensive income 4 48 4 Pension liabilities, closing balance 83 80 40 |
Summary of information about employees | Average number of employees 2019 2018 2017 Women 120 117 121 Men 121 126 131 Total average number of employees 241 243 252 Number of employees at year-end 2019 2018 2017 Women 123 118 122 Men 121 120 128 Total number of employees (1) 244 238 250 of which full-time employees 236 230 243 Allocation of women/men 50/50 49/51 48/52 of which part-time employees 8 8 7 Allocation of women/men 75/25 75/25 86/14 of which permanent employees 236 246 Allocation of women/men 51/49 50/50 49/51 of which temporary employees 1 2 4 Allocation of women/men 0/100 50/50 50/50 of which managers 31 29 31 of which non-management 209 219 (1) In addition to its employees, SEK had 66 consultants (FTEs) engaged at year-end 2019. Employees by age distribution 2019 2018 2017 Total number of employees 244 238 250 of which under the age of 30 years 12 13 16 of which between 30 and 50 years 127 127 142 of which over 50 years 105 98 92 Employee turnover 2019 2018 2017 Number of employees who left employment 30 32 31 of which women 16 12 12 of which men 14 20 19 of which under the age of 30 years 2 3 4 of which between 30 and 50 years 22 20 20 of which over 50 years 6 9 7 Health, % 2019 2018 2017 Absence due to sickness 2.5 3.1 3.3 Percentage of employees that use SEK’s fitness allowance 89 91 92 Equality and diversity 2019 2018 2017 Allocation of women/men on the Board of Directors 62/38 62/38 60/40 Allocation of women/men in SEK’s executive management 50/50 50/50 64/36 Allocation of women/men in-management positions 42/58 41/59 42/58 Allocation of women/men at SEK in total 50/50 51/49 49/51 Allocation of employees with foreign/Swedish background(1) 33/67 33/67 33/67 (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 2019 2018 2017 Percentage of employees who had a performance review (percent) — (1) 96 95 Average number of training days per employee (all employees are white-collar workers) 3 3 2 |
Other administrative expenses (
Other administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other administrative expenses | |
Schedule of other administrative expenses | Skr mn 2019 2018 2017 Travel expenses and marketing -7 -7 -8 IT and information system (fees incl.) -156 -151 -144 Other fees -34 -34 -38 Premises(1) -3 -33 -32 Other -6 -6 -10 Total other administrative expenses -206 -231 -232 (1) SEK is a party to rental agreements of office space in Stockholm and Gothenburg, Sweden. Since 2019-01-01 leases of premises are accounted for according to IFRS 16, see note 8. |
Schedule of remuneration to auditors | Skr mn 2019 2018 2017 Öhrlings PricewaterhouseCoopers AB: Audit fees(1) -10 -8 -8 Audit related fees(2) 0 0 0 Tax related fees(3) 0 — 0 Other fees(4) -2 -2 -1 Total -12 -10 -9 (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, 2019 | |
Tangible and intangible assets | |
Schedule of reconciliation of changes in tangible and intangible assets. | Skr mn Dec 31, 2019 Dec 31, 2018 Dec 31, 2017 Net book value Tangible assets 28 26 22 Right-of-use assets 50 — — Intangible assets(1) 56 43 66 Total net book value 134 69 88 Depreciation and impairment during the year according to the Consolidated Statement of Comprehensive Income -57 -40 -45 (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, 2019 | |
Leasing | |
Schedule of right of use asset | Skr mn 2019 Opening balance 94 Depreciation -32 Deduction(1) -12 Closing balance 50 (1) There have been cancelled and new leases during the year. The estimation of lease liability and right-of-use assets also has changed. Future cash flows relating to real estate tax and non-deductible value added tax are no longer included. This change means that lease liability and right-of-use assets have decreased by Skr 13 million. |
Schedule of leasing amounts accounted for in profit or loss | Skr mn 2019 Depreciation charge on right-of-use assets -32 Interest expenses on lease liability 0 Expenses relating to short-term leases(1) 0 Expenses relating to low-value leases(1) -1 Variable lease fees(1) -1 Total amount accounted for in profit or loss -34 (1) Accounted for under Other administrative expenses. |
Schedule of lease liability | Skr mn 2019 Opening balance 95 Interest expenses accrued 0 Payments of lease liability -39 Deduction(1) -12 Closing balance 44 (1) There have been cancelled and new leases during the year. The estimation of lease liability and right-of-use assets also has changed. Future cash flows relating to real estate tax and non-deductible value added tax are no longer included. This change means that lease liability and right-of-use assets have decreased by Skr 13 million. |
Schedule of contractual flows of lease liability | Skr mn 2019 Within 1 year 26 Between 1 and 5 years 18 Discounting effect 0 Closing balance 44 |
Schedule of cost of operating leases | Skr mn 2018 Leases -32 |
Schedule of future minimum rentals payable under non-cancellable operating leases | Dec 31, Skr mn 2018 Within 1 year -32 Between 1 and 5 years -60 More than 5 years — Total future minimum rentals payable under non-cancellable operating leases -92 |
Schedule of reconciliation between gross investment and present value of minimum lease payments | December 31, 2019 December 31, 2018 Present value of Present value of Gross minimum lease Gross minimum lease Skr mn investment payments investment payments Within 1 year 63 61 117 113 Between 1 and 5 years 87 78 182 156 More than 5 years — — 8 5 Total 150 139 307 274 Unearned finance income — 14 — 33 Unguaranteed residual value — — — — |
Impairments (Tables)
Impairments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Impairments | |
Schedule of impairment | Skr mn 2019 2018 2017 Expected credit losses, stage 1 -19 6 n.a Expected credit losses, stage 2 11 14 n.a Expected credit losses, stage 3 -17 -13 n.a Impairment of financial assets — — -59 Reversals of previous write-downs — — 110 Established credit losses -25 — -47 Reserves applied to cover established credit losses 40 — 46 Recovered credit losses — 0 1 Net credit losses -10 7 51 |
Schedule of balances and reconciliation of changes in balances and loss allowances by stages | December 31, 2019 December 31, 2018 Skr mn Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Loans, before expected credit losses Loans in the form of interest-bearing securities 40,909 2,735 — 43,644 34,112 2,686 — 36,798 Loans to credit institutions 9,578 541 — 10,119 10,188 1,164 — 11,352 Loans to the public 132,313 30,326 1,316 163,955 134,117 25,405 1,424 160,946 Off balance, before expected credit losses Guarantees 3,232 1,161 — 4,393 2,818 1,246 1 4,065 Committed undisbursed loans 28,083 26,856 11 54,950 21,348 30,177 — 51,525 Total, before expected credit losses 214,115 61,619 1,327 277,061 202,583 60,678 1,425 264,686 of which guaranteed 56.4 % 92.1 % 95.4 % 62.2 % 60.4 % 85.4 % 94.3 % 64.1 % Loss allowance, loans Loans in the form of interest-bearing securities -14 -2 — -16 -9 -3 — -12 Loans to credit institutions -1 0 — -1 -1 -1 — -2 Loans to the public -36 -7 -64 -107 -24 -17 -82 -123 Loss allowance, off balance (1) Guarantees 0 0 0 0 0 0 -2 -2 Committed undisbursed loans -3 -1 — -4 0 0 — 0 Total, loss allowance -54 -10 -64 -128 -34 -21 -84 -139 Provision ratio 0.03 % 0.02 % 4.82 % 0.05 % 0.02 % 0.03 % 5.89 % 0.05 % (1) Recognized under provision in Consolidated Statement of Financial Position. Loans and off balance, before Loss Allowance December 31, 2019 December 31, 2018 Skr mn Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening balance 202,583 60,678 1,425 264,686 209,232 62,286 1,242 272,760 (1) Increase due to origination and acquisition 73,812 5,633 113 79,558 37,594 768 3 38,365 Transfer to stage 1 13 -16 — -3 2,490 — — 2,490 Transfer to stage 2 -6,752 6,281 — -471 — 5,431 — 5,431 Transfer to stage 3 -97 -199 286 -10 — — 466 466 Decrease due to derecognition -55,444 -10,758 -497 -66,699 -46,733 -7,807 -286 -54,826 Closing balance 214,115 61,619 1,327 277,061 202,583 60,678 1,425 264,686 (1) Effect on opening balance after implementation of IFRS 9 Skr 18 million. Loss Allowance December 31, 2019 December 31, 2018 Skr mn Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total Opening balance -34 -21 -84 -139 -38 -33 -66 -137 (1) Increases due to origination and acquisition -22 -1 0 -23 -12 -2 -1 -15 Net remeasurement of loss allowance -4 7 7 10 12 9 -14 7 Transfer to stage 1 0 0 — 0 0 0 — 0 Transfer to stage 2 0 0 — 0 1 -1 — 0 Transfer to stage 3 0 2 -24 -22 0 -2 2 0 Decreases due to derecognition 6 4 — 10 5 10 0 15 Decrease in allowance account due to write-offs — — 40 40 — — — — Exchange-rate differences(2) 0 -1 -3 -4 -2 -2 -5 -9 Closing balance -54 -10 -64 -128 -34 -21 -84 -139 (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. |
Summary of loan credit quality, before expected credit losses, allocated by stage | December 31, 2019 December 31, 2018 Skr mn Stage 1 Stage 2 Stage 3 Total Stage 1 Stage 2 Stage 3 Total AAA 546 — — 546 1,204 — — 1,204 AA+ to A- 31,421 — — 31,421 25,635 51 — 25,686 BBB+ to BBB- 116,040 1,147 — 117,187 107,289 1,161 — 108,450 BB+ to BB- 23,378 20,381 — 43,759 28,055 18,972 28 47,055 B+ to B- 11,411 11,894 — 23,305 16,234 8,869 — 25,103 CCC to D 4 180 1,316 1,500 — 202 1,396 1,598 Total, before expected credit losses 182,800 33,602 1,316 217,718 178,417 29,255 1,424 209,096 |
Taxes (Tables)
Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Taxes | |
Schedule of components of income taxes | Skr mn 2019 2018 2017 Income tax Adjustment previous year 2 -1 0 Current tax -570 -448 -262 Deferred tax 291 245 27 Total income tax -277 -204 -235 |
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 2 6 27 Deferred tax — — — Tax on items not to be reclassified to profit or loss Current tax -5 -82 — Deferred tax 1 10 1 Income tax related to other comprehensive income -2 -66 28 |
Schedule of reconciliation of effective tax rate | Reconciliation of effective tax rate The Swedish corporate tax rate, % 21.4 22.0 22.0 Profit before taxes 1,304 852 1,007 National tax based on profit before taxes -279 -187 -222 Tax effects of: Non-taxable income 9 0 1 Non-deductible expenses -16 -14 -15 Imputed interest on tax allocation reserve -1 -2 -2 Tax effect of dissolution of untaxed reserves due to changed tax rate 8 — — Other 2 -1 3 Total tax -277 -204 -235 Effective tax expense in % 21.2 24.0 23.3 |
Schedule of deferred taxes | Skr mn 2019 2018 Deferred tax assets concerning: Temporary differences, related to -pensions 16 15 Other temporary differences — — Total deferred tax assets 16 15 Deferred tax liabilities concerning: Untaxed reserves — 291 Total deferred tax liabilities — 291 Net deferred tax liabilities (+) / tax -assets (-) -16 276 |
Schedule of changes in deferred taxes | Skr mn 2019 2018 Opening balance 276 531 Change through profit or loss -291 -245 Change in other comprehensive income -1 -10 Total -16 276 |
Loans and liquidity investmen_2
Loans and liquidity investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans and liquidity investments. | |
Schedule of loans and liquidity investments | Dec 31, Dec 31, Skr mn 2019 2018 Loans: Loans in the form of interest-bearing securities 43,627 36,781 Loans to credit institutions 27,010 27,725 Loans to the public 163,848 161,094 Less: Cash collateral under the security agreements for derivative contracts(1) -16,891 -16,374 Total loans 217,594 209,226 Liquidity investments: Cash and cash equivalents 1,362 2,416 Cash collateral under the security agreements for derivative contracts(1) — — Treasuries/government bonds 8,344 11,117 Other interest-bearing securities except loans 53,906 48,665 Total liquidity investments 63,612 62,198 of which issued by public authorities 13,452 15,110 (1) Since 2019, SEK has excluded cash collateral under the security agreements for derivative contracts from the definition of liquidity investments. Comparative figures have been adjusted. |
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 2019 2018 Sum of amounts exceeding nominal 350 143 Sum of amounts falling below nominal -39 -39 |
Schedule of volume development, lending | of which the CIRR-system Skr mn 2019 2018 2019 2018 Offers of long-term loans accepted 74,515 57,015 15,500 4,916 Undisbursed loans at year-end 52,150 50,814 47,868 47,664 Loans outstanding at year-end 217,594 (1) 209,226 (1) 76,120 69,922 (1) Including concessionary loans in the amount of Skr 547 million (year-end 2018: Skr 663 million). |
Schedule of outstanding loans as per business area | of which the CIRR-system December 31, December 31, December 31, December 31, Skr mn 2019 2018 2019 2018 Lending to Swedish exporters 96,429 89,759 — — Lending to exporters’ customers 121,165 119,467 76,120 69,922 Total lending 217,594 (1) 209,226 (1) 76,120 69,922 (1) Includ ing concessionary loans in the amount of Skr 547 million (year-end 2018: Skr 663 million). |
Classification of financial a_2
Classification of financial assets and liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Classification of financial assets and liabilities | |
Schedule of financial assets by accounting category | December 31, 2019 Financial assets at fair value through profit or loss Derivatives used for hedge Skr mn Mandatorily accounting Amortized cost Total Cash and cash equivalents — — 1,362 1,362 Treasuries/government bonds 8,344 — — 8,344 Other interest-bearing securities except loans 53,906 — — 53,906 Loans in the form of interest-bearing securities — — 43,627 43,627 Loans to credit institutions — — 27,010 27,010 Loans to the public — — 163,848 163,848 Derivatives 4,380 2,588 — 6,968 Total financial assets 66,630 2,588 235,847 305,065 December 31, 2018 Financial assets at fair value through profit or loss Derivatives used for hedge Skr mn Mandatorily accounting Amortized cost Total 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 |
Schedule of financial liabilities by accounting category | December 31, 2019 Financial liabilities at fair value through profit or loss Designated upon Derivatives initial used for recognition hedge Skr mn Mandatorily (FVO) accounting Amortized cost Total Borrowing from credit institutions — — — 3,678 3,678 Debt securities issued — 56,705 — 212,634 269,339 Derivatives 16,954 — 3,102 — 20,056 Total financial liabilities 16,954 56,705 3,102 216,312 293,073 December 31, 2018 Financial liabilities at fair value through profit or loss Designated upon Derivatives initial used for recognition hedge Skr mn Mandatorily (FVO) accounting Amortized cost Total 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 and liabilit_2
Financial assets and liabilities at fair value (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Sub-classifications of financial information | |
Financial assets and liabilities at fair value | December 31, 2019 Surplus value (+) Skr mn Book value Fair value /Deficit value (-) Cash and cash equivalents 1,362 1,362 — Treasuries/governments bonds 8,344 8,344 — Other interest-bearing securities except loans 53,906 53,906 — Loans in the form of interest-bearing securities 43,627 45,054 1,427 Loans to credit institutions 27,010 27,133 123 Loans to the public 163,848 169,612 5,764 Derivatives 6,968 6,968 — Total financial assets 305,065 312,379 7,314 Borrowing from credit institutions 3,678 3,678 — Debt securities issued 269,339 271,549 2,210 Derivatives 20,056 20,056 — Total financial liabilities 293,073 295,283 2,210 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 |
Schedule of fair value measurement of assets | December 31, 2019 Loans and accounts receivable Fair value Book value Skr mn Level 1 Level 2 Level 3 Total Total Cash and cash equivalents 1,362 — — 1,362 1,362 Loans in the form of interest-bearing securities 321 44,733 — 45,054 43,627 Loans to credit institutions — 27,133 — 27,133 27,010 Loans to the public — 169,584 — 169,584 163,848 Total financial assets in fair value hierarchy 1,683 241,450 — 243,133 235,847 December 31, 2018 Loans and accounts receivable 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, 2019 Financial assets at fair value through profit or loss Skr mn Level 1 Level 2 Level 3 Total Treasuries/governments bonds 7,041 1,303 — 8,344 Other interest-bearing securities except loans 27,409 26,497 — 53,906 Derivatives — 4,483 2,485 6,968 Total financial assets in fair value hierarchy 34,450 32,283 2,485 69,218 December 31, 2018 Financial assets at fair value through profit or loss Skr mn 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 |
Schedule of fair value measurement of liabilities | December 31, 2019 Other financial liabilities Fair value Book value Skr mn Level 1 Level 2 Level 3 Total Total Borrowing from credit institutions — 3,669 — 3,669 3,678 Debt securities issued — 213,654 — 213,654 212,634 Total financial liabilities in fair value hierarchy — 217,323 — 217,323 216,312 December 31, 2018 Other financial liabilities 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, 2019 Financial liabilities at fair value through profit or loss Skr mn Level 1 Level 2 Level 3 Total Debt securities issued — 12,953 43,752 56,705 Derivatives — 17,593 2,463 20,056 Total financial liabilities in fair value hierarchy — 30,546 46,215 76,761 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 |
Schedule of financial assets and liabilities at fair value | Financial assets and liabilities at fair value in Level 3 December 31, 2019 Gains (+) and Gains (+) and losses (-) losses (-) Cur. Jan 1, Settlements Transfers to Transfers through profit or through other exchange-rate Dec 31, Skr mn 2019 Purchases & sales Level 3 from Level 3 loss(1) comprehensive income effects 2019 Debt securities issued -47,898 -10,702 21,314 — 1,040 -3,408 -43 -4,055 -43,752 Derivatives, net -4,587 -5 -299 1 -31 3,181 — 1,762 22 Net assets and liabilities -52,485 -10,707 21,015 1 1,009 -227 -43 -2,293 -43,730 Financial assets and liabilities at fair value in Level 3 December 31, 2018 Gains (+) and Gains (+) and losses (-) losses (-) Cur. 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 (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, 2019, amounted to a Skr 69 million loss (year-end 2018: Skr 157 million gain) and are reported as net results of financial transaction. |
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, 2019 December 31, 2018 2019 2018 CVA/DVA, net(1) -12 -29 17 -21 OCA(2) -126 -150 24 374 (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 sensitivity analysis - level 3 | December 31, 2019 Assets and liabilities Unobservable Range of estimates for Skr mn Fair V alue input unobservable input (1) Valuation method Sensitivity Max Sensitivity Min Equity -345 Correlation 0.73 - 0.02 Option Model 1 -1 Interest rate 1,249 Correlation 0.16 - (0.08) Option Model -64 63 FX -711 Correlation 0.80 - 0.10 Option Model 19 -16 Other -171 Correlation 0.53 - (0.03) Option Model 0 0 Sum derivatives,net 22 -44 46 Equity -524 Correlation 0.73 - 0.02 Option Model -1 1 Credit spreads 10BP - (10BP) Discounted cash flow 14 -14 Interest rate -43,083 Correlation 0.16 - (0.08) Option Model 65 -64 Credit spreads 10BP - (10BP) Discounted cash flow 70 -68 FX -39 Correlation 0.80 - 0.10 Option Model -20 17 Credit spreads 10BP - (10BP) Discounted cash flow 88 -87 Other -106 Correlation 0.53 - (0.03) Option Model 0 0 Credit spreads 10BP - (10BP) Discounted cash flow 3 -3 Sum debt securities issued -43,752 219 -218 Total effect on total comprehensive income(2) 175 -172 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 (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 174 million (year-end 2018: Skr 242 million) under a maximum scenario and Skr -173 million (year-end 2018: Skr -240 million) under a minimum scenario. |
Derivatives and hedge account_2
Derivatives and hedge accounting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivatives and hedge accounting | |
Schedule of derivatives | Derivatives by categories December 31, 2019 December 31, 2018 Assets Liabilities Nominal Assets Liabilities Nominal Skr mn Fair value Fair value amounts Fair value Fair value amounts Interest rate-related contracts 3,998 12,367 304,242 3,842 10,207 280,808 Currency-related contracts 2,734 6,933 182,668 2,630 8,799 162,870 Equity-related contracts 236 584 16,387 57 2,755 16,014 Contracts related to commodities, credit risk, etc. — 172 1,997 — 173 2,108 Total derivatives 6,968 20,056 505,294 6,529 21,934 461,800 of which derivatives used for economic hedges, December 31, 2019 December 31, 2018 accounted for as held-for-trading under IFRS 9 Assets Liabilities Nominal Assets Liabilities Nominal Skr mn Fair value Fair value amounts Fair value Fair value amounts Interest rate-related contracts 2,568 11,455 140,829 2,767 7,479 129,470 Currency-related contracts 1,544 4,708 153,707 1,728 5,177 132,610 Equity-related contracts 236 584 16,387 57 2,755 16,014 Contracts related to commodities, credit risk, etc. 0 172 1,997 — 173 2,108 Total derivatives 4,348 16,919 312,920 4,552 15,584 280,202 December 31, 2019 December 31, 2018 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 1,430 912 163,413 1,075 2,728 151,338 Currency-related contracts 1,190 2,225 28,961 902 3,622 30,260 Total derivatives 2,620 3,137 192,374 1,977 6,350 181,598 (1) The nominal amount of the instruments directly affected by the IBOR reform amounts to Skr 87,915 million. Maturity analysis of the nominal amounts (1) of hedging instruments December 31, 2019 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 116 225 2,254 4,960 9,296 Hedge of fixed rate liabilities — — 38,724 103,823 3,776 Currency-related contracts Hedge of fixed rate assets 6 26 644 2,030 430 Hedge of fixed rate liabilities — 421 7,920 12,876 4,882 (1) Nominal amounts before off-set. 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 2,195 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, 2019 1 month < 3 months < 1 year < Skr mn < 1 month 3 months 1 year 5 years > 5 years Cash inflows (assets) 109 567 1,214 2,344 2,122 Cash outflows (liabilities) -978 -1,517 -1,492 -3,106 40 Net cash inflow (1) -869 -950 -278 -762 2,162 (1) For derivatives used as hedging instruments, see contractual flows in note 26. 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 |
Schedule of carrying amount of hedge items in fair value hedge and its adjustments | December 31, 2019 December 31, 2018 Assets Fair value hedge Fair value hedge Skr mn Book value adjustments Book value adjustments Loans in the form of interest-bearing securities 6,716 547 4,244 499 Loans to credit institutions 332 5 206 3 Loans to the public 14,353 930 12,904 648 Total 21,401 1,482 17,354 1,150 December 31, 2019 December 31, 2018 Liabilities Fair value hedge Fair value hedge Skr mn Book value adjustments Book value adjustments Debt securities issued 174,477 4,102 163,172 1,000 Total 174,477 4,102 163,172 1,000 |
Schedule of cash flow hedges reclassified to profit or loss | Skr mn 2019 2018 Interest income 8 25 Interest expense — — Total (1) 8 25 (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 | Dec 31, 2019 Dec 31, 2018 Skr mn Derivatives Derivatives Gross amounts of recognized financial assets 7,948 7,200 Amounts offset in the Statement of Financial Position -980 -671 Net amounts of financial assets presented in the Statement of Financial Position 6,968 6,529 Amounts subject to an enforceable master netting arrangement or similar agreement not offset in the Statement of Financial Position related to: Financial instruments -3,799 -4,324 Cash collateral received -2,352 -1,805 Net amount 817 400 |
Schedule of financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements | Dec 31, 2019 Dec 31, 2018 Skr mn Derivatives Derivatives Gross amounts of recognized financial liabilities 21,036 22,648 Amounts offset in the Statement of Financial Position -980 -714 Net amounts of financial liabilities presented in the Statement of Financial Position 20,056 21,934 Amounts subject to an enforceable master netting arrangement or similar agreement not offset in the Statement of Financial Position related to: Financial instruments -3,799 -4,324 Cash collateral paid -15,871 -15,537 Net amount 386 2,073 |
Shares (Tables)
Shares (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Shares | |
Schedule of shares in subsidiaries | Shares in subsidaries December 31, 2019 December 31, 2018 Skr mn Book value Number of shares Book value Number of shares SEKETT AB (reg. no 559132-9668) 0 50 0 50 |
Other assets (Tables)
Other assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other assets. | |
Schedule of other assets | Skr mn Dec 31, 2019 Dec 31, 2018 Claim against the State for CIRR loans and concessionary loans 9,124 3,915 Cash receivables, funding operations 181 960 Other 29 105 Total 9,334 4,980 |
Prepaid expenses and accrued _2
Prepaid expenses and accrued revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Prepaid expenses and accrued revenues | |
Schedule of prepaid expenses and accrued revenues | Skr mn Dec 31, 2019 Dec 31, 2018 Interest income accrued 2,747 2,643 Prepaid expenses and other accrued revenues 0 14 Total 2,747 2,657 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt | |
Schedule of debt as per categories | December 31, 2019 Total debt excluding debt Total debt - Skr mn securities issued securities issued Total Exchange-rate related contracts — 28,215 28,215 Interest rate related contracts 3,678 240,389 244,067 Equity related contracts — 629 629 Contracts related to raw materials, credit risk etc — 106 106 Total debt outstanding 3,678 269,339 273,017 of which denominated in: Skr 2,737 USD 186,021 JPY 32,509 EUR 19,813 Other currencies 31,937 273,017 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 |
Schedule of major borrowing programs | Value outstanding(1) Skr mn December 31, 2019 December 31, 2018 Medium-term note program: Unlimited Euro Medium-Term Note Programme 96,930 99,710 Unlimited SEC-registered U.S. Medium-Term Note Programme 151,750 143,109 Unlimited Swedish Medium-Term Note Programme 424 261 Unlimited MTN/STN AUD Debt Issuance Programme 4,598 3,875 Commercial paper program: USD 3,000,000,000 U.S. Commercial Paper Programme 10,644 4,723 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 Skr mn December 31, 2018 Cash Flow Exchange-rate Unrealized Accrued December 31, 2019 Senior debt 257,847 -4,420 10,580 9,010 — 273,017 Lease liability 95 (1) -39 — -12 (2) — 44 Derivatives - net 15,405 4,049 -2,629 -3,737 — 13,088 Total liabilities in financing activities 273,347 -410 7,951 5,261 — 286,149 (1) Refers to the opening balance of the lease liability, see note 1. (2) Refers to a changed estimate of the lease liability, see note 8. Non-cash items Skr mn December 31, 2017 Cash flow Exchange-rate Unrealized Accrued 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 8,071 — 15,405 Total liabilities in financing activities 235,550 24,610 13,044 48 — 273,252 |
Other liabilities (Tables)
Other liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other liabilities | |
Schedule of other liabilities | Skr mn Dec 31, 2019 Dec 31, 2018 Cash payables, debt purchases 2,011 682 Other 455 387 Total 2,466 1,069 |
Accrued expenses and prepaid _2
Accrued expenses and prepaid revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued expenses and prepaid revenues | |
Schedule of accrued expenses and prepaid revenues | Skr mn Dec 31, 2019 Dec 31, 2018 Interest expenses accrued 2,541 2,542 Other accrued expenses and prepaid revenues 41 41 Total 2,582 2,583 |
Provisions (Tables)
Provisions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Provisions | |
Schedule of provisions | Skr mn Dec 31, 2019 Dec 31, 2018 Pension liabilities(1) 83 80 Long term employee benefit 6 3 Off balance, expected credit losses(2) 4 2 Total 93 85 (1) See note 5. (2) Provisions for expected credit losses are on the off-balance-sheet, in accordance with IFRS 9. See note 9. |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity | |
Schedule of components of equity | December 31, December 31, Skr mn 2019 2018 Share capital 3,990 3,990 Legal reserve — — Fund for internally developed software — — Reserves/Fair value reserve Hedge reserve — 6 Own credit risk -98 -117 Defined benefit plans -45 -42 Retained earnings 15,235 14,402 Total equity 19,082 18,239 |
Restricted and unrestricted equity | December 31, December 31, Skr mn 2019 2018 Restricted equity 4,235 5,240 Unrestricted equity 14,847 12,999 Total equity 19,082 18,239 |
Proposal for the distribution of profits | At the disposal of the Annual General Meeting 14,903 The Board of Directors proposes that the Annual General Meeting dispose of these funds as follows: - dividend to the shareholder of Skr 77.23 per share, amounting to 308 - remaining disposable funds to be carried forward 14,595 |
Pledged assets and contingent_2
Pledged assets and contingent liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Pledged assets and contingent liabilities | |
Schedule of pledged assets and contingent liabilities | Skr mn Dec 31, 2019 Dec 31, 2018 Collateral provided Cash collateral under the security agreements for derivative contracts 16,891 16,374 Contingent liabilities Guarantee commitments 4,393 4,032 Commitments Committed undisbursed loans 52,150 50,814 Binding offers 2,800 744 |
CIRR-system (Tables)
CIRR-system (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
CIRR-system | |
The disclosure of information about CIRR-systems. | Statement of comprehensive income for the CIRR-system Skr mn 2019 2018 Interest income 2,074 1,624 Interest expenses -1,912 -1,480 Net interest income 162 144 Interest compensation 1 20 Foreign exchange effects 5 9 Profit before compensation to SEK 168 173 Administrative remuneration to SEK -192 -155 Operating profit CIRR-system -24 18 Reimbursement to (-) / from (+) the State 24 -18 Statement of financial position for the CIRR-system (included in SEK’s Statement of Financial Position) Skr mn Dec 31, 2019 Dec 31, 2018 Cash and cash equivalents 0 — Loans 76,120 69,922 Derivatives 26 502 Other assets 9,307 4,090 Prepaid expenses and accrued revenues 569 561 Total assets 86,022 75,075 Liabilities 76,257 70,144 Derivatives 9,117 4,408 Accrued expenses and prepaid revenues 648 523 Total liabilities and equity 86,022 75,075 Commitments Committed undisbursed loans 47,868 47,664 Binding offers 37 616 |
Capital adequacy (Tables)
Capital adequacy (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Capital adequacy | |
Schedule of capital adequacy | December 31, 2019 December 31, 2018 Capital ratios percent(1) percent(1) Common Equity Tier 1 capital ratio 20.6 20.1 Tier 1 capital ratio 20.6 20.1 Total capital ratio 20.6 20.1 (1) Capital ratios excl. of buffer requirements are the quotients of the relevant capital measure and the total risk exposure amount. See tables Own funds - adjusting items and Minimum capital requirements exclusive of buffer. December 31, 2019 December 31, 2018 Buffers requirement Skr mn percent(1) Skr mn percent(1) Institution specific Common -Equity Tier 1 capital requirement incl. of buffers 7,890 8.9 7,380 8.5 of which minimum Common Equity Tier 1 requirements (2) 3,990 4.5 3,917 4.5 of which Capital conservation buffer 2,216 2.5 2,176 2.5 of which Countercyclical buffer 1,684 1.9 1,287 1.5 of which Systemic risk buffer — — — — Common Equity Tier 1 capital available as a buffer (3) 11,171 12.6 10,534 12.1 (1) Expressed as a percentage of total risk exposure amount. (2) The minimum requirements according to CRR (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) have fully come into force in Sweden without regard to the transitional period. The minimum requirements are 4.5 percent, 6.0 percent and 8.0 percent related to Common Equity Tier 1 capital, Tier 1 capital and total Own Funds respectively. (3) Common Equity Tier 1 capital ratio as reported less the minimum requirement of 4.5 percent and less 3.5 percent, consisting of Common Equity Tier 1 capital used to meet the Tier 1 and Tier 2 requirements, since SEK do not have any Additional Tier 1 or Tier 2 capital. December 31, 2019 December 31, 2018 Total capital requirement including buffers Skr mn percent(1) Skr mn percent(1) Total CRR capital requirement(2) 10,993 12.4 10,427 12.0 Total FSA capital requirement (calculated as of September 30, 2019)(3) 15,606 16.4 14,464 16.6 (1) Expressed as a percentage of total risk exposure amount. (2) The requirement includes the minimum requirement of 8 percent, the capital conservation buffer and the countercyclical buffer. Expressed as a percentage of total risk exposure amount. (3) The requirement includes the minimum requirement of 8 percent, the capital conservation buffer and the countercyclical buffer and an additional capital requirement according to the Swedish FSA. See the additional capital requirement in the table below. Current figures calculated with one quarter lag. Comparison figures based on year-end figures. |
Schedule of additional capital requirement | Capital situation per December 31, 2019, calculation based on reported values as of September 30, 2019 December 31, 2018 Additional Capital requirement -according to Swedish FSA Skr mn percent(1) Skr mn percent(1) Credit-related concentration risk 2,089 2.2 2,089 2.4 Interest rate risk in the banking book 844 0.9 844 1.0 Pension risk 11 0.0 11 0.0 Other Pillar 2 capital requirements 936 1.0 936 1.1 Capital planning buffer — — 157 0.2 Total Additional Capital requirement according to Swedish FSA 3,880 4.1 4,037 4.7 (1) Expressed as a percentage of total risk exposure amount. |
Schedule of own funds | Parent Company December 31, December 31, Skr mn 2019 2018 Share capital(1) 3,990 3,990 Retained earnings 12,829 11,239 Accumulated other comprehensive income and other reserves(2) 245 1,256 Independently reviewed profit net of any foreseeable charge or dividend 1,766 1,615 Common Equity Tier 1 (CET1) capital before regulatory adjustments 18,830 18,100 Additional value adjustments due to prudent valuation -445 -496 Intangible assets -56 -43 Fair-value reserves related to gains or losses on cash-flow hedges — -6 Gains or losses on liabilities valued at fair value resulting from changes in own credit -standing 93 112 Negative amounts resulting from the calculation of expected loss amounts -115 -136 Total regulatory adjustments to Common Equity Tier 1 capital -523 -569 Total Common Equity Tier 1 capital 18,307 17,531 Additional Tier 1 capital — — Total Tier 1 capital 18,307 17,531 Tier 2-eligible subordinated debt — — Credit risk adjustments(3) — — Total Tier 2 capital — — Total Own funds 18,307 17,531 (1) For a detailed description of the instruments constituting share capital, see note 22. (2) The equity-portions of untaxed reserves is included in the line “Accumulated other comprehensive income and other reserves”. (3) 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, 2019, the limitation rule had no effect (year end 2018: no effect). |
Schedule of minimum capital requirements exclusive of buffers | Parent Company December 31, 2019 December 31, 2018 Risk Min. Risk Min. exposure capital exposure capital Skr mn EAD(1) amount requirement EAD(1) amount requirement Credit risk, standardized approach Corporates( 2) 2,367 2,367 189 1,701 1,701 136 Total credit risk, standardized approach 2,367 2,367 189 1,701 1,701 136 Credit risk, IRB approach Central governments 172,148 8,816 705 171,572 9,905 792 Financial institutions(3) 45,437 10,802 864 33,953 9,880 790 Corporates(4) 110,592 60,068 4,806 113,987 59,486 4,760 Non-credit-obligation assets( 5) 152 152 12 90 90 7 Total credit risk IRB approach 328,329 79,838 6,387 319,602 79,361 6,349 Credit valuation adjustment risk n.a. 2,534 203 n.a. 2,037 163 Foreign exchange risk n.a. 695 56 n.a. 879 70 Commodity risk n.a. 9 1 n.a. 10 1 Operational risk n.a. 3,214 257 n.a. 3,066 245 Total 330,696 88,657 7,093 321,303 87,054 6,964 (1) Exposure at default (EAD) shows the size of the outstanding exposure at default. (2) For the small and medium-sized enterprises category, with an annual turnover not exceeding EUR 50 million, the standardized method for calculating the capital requirement is applied from Q1 2019. (3) Of which counterparty risk in derivative contracts: EAD Skr 5,613 million (year-end 2018: Skr 4,525 million), Risk exposure amount of Skr 1,980 million (year-end 2018: Skr 1,668 million) and Capital requirement of Skr 158 million (year-end 2018: Skr 133 million) (4) Of which related to Specialized lending: EAD Skr 3,646 million (year-end 2018: Skr 3,400 million), Risk exposure amount of Skr 2,352 million (year-end 2018: Skr 2,157 million) and Capital requirement of Skr 188 million (year-end 2018:Skr 173 million). (5) As of January 1, 2019, SEK applies the new accounting standard IFRS 16 Leases, which means that leasing contracts are reported as an asset with rights-of-use. At the beginning of 2019, IFRS 16 resulted in increased assets of Skr 94 million. |
Schedule of credit risk by PD grade | December 31, 2019 December 31, 2018 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%– 0.02– 0.12– 0.54– 27.27– Skr mn 0.01% 0.07% 0.12–0.32% 6.80% 100% 0.01% 0.07% 0.32% 6.80% 100% Central governments EAD 166,286 5,862 — — — 163,603 7,064 — — Average PD in % 0.004 0.05 — — — 0.004 0.04 — 1.5 — Average LGD in % 45.0 45.0 — — — 45.0 45.0 — 45.0 — Average risk weight in % 4.6 19.8 — — — 4.6 18.8 — 112.1 — December 31, 2019 December 31, 2018 A+ A+ AAA to A– BBB+ BB+ to B– CCC to D AAA to A– BBB+ BB+ to B– CCC to D to AA- 0.01%- 0.06– to BBB– 0.54– 28.60– 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 16,403 27,651 1,382 1 — 10,323 21,926 1,345 359 — Average PD in % 0.04 0.08 0.22 0.54 — 0.04 0.08 0.23 1.31 — Average LGD in % 35.3 37.1 45.0 45.0 — 43.8 44.2 45.0 45.0 — Average risk weight in % 17.1 25.7 64.6 99.9 — 20.1 29.3 66.0 135.5 — Corporates EAD 5,995 19,438 58,945 22,548 20 7,154 22,379 60,943 20,072 39 Average PD in % 0.04 0.10 0.25 0.83 28.6 0.03 0.10 0.25 0.79 63.11 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 % 19.7 33.1 51.7 86.8 263.7 18.6 33.0 51.5 85.5 136.2 |
Schedule of leverage ratio | December 31, December 31, Skr mn 2019 2018 Exposure measure for the leverage ratio On-balance-sheet -exposures 288,146 281,529 Off-balance-sheet -exposures 35,856 33,159 Total exposure measure 324,002 314,688 Leverage ratio 5.7 % 5.6 % |
Schedule of internally assessed capital adequacy | December 31, December 31, Skr mn 2019 2018 Credit risk 7,337 7,008 Operational risk 183 239 Market risk 1,109 1,094 Other risks 203 163 Capital planning buffer 992 1,966 Total 9,824 10,470 |
Risk information (Tables)
Risk information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risk information | |
Schedule of credit risk exposure | December 31, 2019 Maximum credit-risk exposure Assets at fair value through Amortized Skr mn profit or loss costs Cash and cash equivalents — 1,362 Treasuries/government bonds 8,370 — Other interest-bearing securities except loans 54,132 — Loans in the form of interest-bearing securities — 43,793 Loans to credit institutions — 11,235 Loans to the public — 222,814 Derivatives 6,968 — Total financial assets 69,470 279,204 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, 2019 Adjustment to carrying Multilateral Carrying amount from Central Regional development Public sector Financial Skr bn amount exposure governments governments banks entity institutions Corporates Cash and cash equivalents 1.4 -0.1 — — — — 1.5 — Treasuries/government bonds 8.3 -0.1 8.4 — — — — — Other interest-bearing - securities except loans 53.9 0.0 3.3 10.6 2.8 4.0 26.7 6.5 Loans in the form of interestbearing securities 43.6 -0.2 — — — — 0.9 42.9 Loans to credit institutions including cash and cash equivalents(1) 27.0 16.9 0.9 5.1 — — 4.0 0.1 Loans to the public 163.8 -1.0 97.8 0.8 0.3 — 5.8 60.1 Derivatives 7.0 1.4 — — — — 5.6 0.0 Other assets 9.3 9.3 — — — — — — Total financial assets 314.3 26.2 110.4 16.5 3.1 4.0 44.5 109.6 Contingent liabilities and commitments(2) 59.3 0.0 50.8 — — — 1.2 7.3 Total 373.6 26.2 161.3 16.5 3.1 4.0 45.7 116.9 December 31, 2018 Adjustment to carrying Multilateral Carrying amount from Central Regional development Public sector Financial Skr bn amount exposure governments governments banks entity 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 (1) Skr 16.9 billion (2018: Skr 16.4 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. Interest-bearing securities Committed undisbursed loans, derivatives, and lending etc. Total Skr bn Dec 31, 2019 Dec 31, 2018 Dec 31, 2019 Dec 31, 2018 Dec 31, 2019 Dec 31, 2018 Exposure class Amount % Amount % Amount % Amount % Amount % Amount % Central governments 110.4 39.1 121.2 43.8 50.9 78.3 48.4 80.3 161.3 46.4 169.6 50.3 Regional governments 16.5 5.8 13.4 4.8 — — — — 16.5 4.7 13.4 4.0 Multilateral development banks 3.1 1.1 0.1 0.0 — — 0.0 0.0 3.1 0.9 0.1 0.0 Public sector entity 4.0 1.4 0.6 0.2 — — — — 4.0 1.2 0.6 0.2 Financial institutions 38.9 13.8 28.7 10.4 6.8 10.5 5.5 9.1 45.7 13.2 34.2 10.1 Corporates 109.6 38.8 113.1 40.8 7.3 11.2 6.4 10.6 116.9 33.6 119.5 35.4 Total 282.5 100.0 277.1 100.0 65.0 100.0 60.3 100.0 347.5 100.0 337.4 100.0 December 31, 2019 Middle East/ Western Central and Africa/ Asia excl. North Latin Europe excl. Eastern Skr bn Turkey Japan Japan America Oceania America Sweden Sweden Europe Total Central governments 4.2 4.8 2.8 1.3 — 42.2 3.0 5.6 — 63.9 Regional governments 1.7 — — — — — 10.5 0.1 — 12.3 Multilateral development banks — — — — — — — 2.8 — 2.8 Public sector entity — — — — — — — 4.0 — 4.0 Financial institutions — 2.7 0.6 5.7 0.9 — 19.7 13.4 0.2 43.2 Corporates 21.1 8.6 1.4 65.1 — 7.6 82.6 31.3 3.6 221.3 Total 27.0 16.1 4.8 72.1 0.9 49.8 115.8 57.2 3.8 347.5 December 31, 2018 Middle East/ Western Central and Africa/ Asia excl. North Latin Europe excl. Eastern Skr bn 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 net exposures by exposure class December 31, 2019 Middle East/ Western Central and Africa/ Asia excl. North Latin Europe excl. Eastern Skr bn Turkey Japan Japan America Oceania America Sweden Sweden Europe Total Central governments — 0.6 2.8 2.8 — — 138.1 13.9 3.1 161.3 Regional governments — — — — — — 16.3 0.2 — 16.5 Multilateral development banks — — — — — — — 3.1 — 3.1 Public sector entity — — — — — — — 4.0 — 4.0 Financial institutions — 2.7 0.9 6.6 0.9 — 16.7 17.7 0.2 45.7 Corporates 4.5 1.7 3.8 4.0 — 2.8 80.1 19.9 0.1 116.9 Total 4.5 5.0 7.5 13.4 0.9 2.8 251.2 58.8 3.4 347.5 December 31, 2018 Middle East/ Western Central and Africa/ Asia excl. North Latin Europe excl. Eastern Skr bn 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 Gross exposures Europe, excluding Sweden, breakdown by exposure class December 31, 2019 Central Regional Multilateral Public sector Financial Skr bn governments governments development banks entity institutions Corporates Total Spain — — — — 0.5 8.1 8.6 Germany 2.8 — — 4.0 0.5 — 7.3 Norway — — — — 2.0 5.1 7.1 Finland 0.6 0.1 — — 0.1 6.2 7.0 United Kingdom — — — — 2.4 2.6 5.0 Italy — — — — — 3.6 3.6 France — — — — 2.0 1.5 3.5 The Netherlands — — — — 3.2 0.2 3.4 Luxembourg 0.6 — 2.8 — — — 3.4 Poland — — — — — 3.1 3.1 Denmark — — — — 0.9 1.4 2.3 Belgium 1.6 — — — 0.0 0.2 1.8 Austria — — — — 1.7 — 1.7 Switzerland — — — — — 1.5 1.5 Portugal — — — — — 0.6 0.6 Russian Federation — — — — — 0.4 0.4 Ireland — — — — — 0.3 0.3 Latvia — — — — 0.2 — 0.2 Iceland — — — — — 0.1 0.1 Estonia — — — — 0.1 0.0 0.1 Ukraine — — — — — 0.0 0.0 Total 5.6 0.1 2.8 4.0 13.6 34.9 61.0 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 Net exposures Europe, excluding Sweden, breakdown by exposure class December 31, 2019 Multilateral Central Regional development Public sector Financial Skr bn governments governments banks entity institutions Corporates Total Germany 3.7 — — 4.0 1.0 0.4 9.1 France 6.3 — — — 1.6 0.1 8.0 United Kingdom 0.1 — — — 3.4 4.5 8.0 Norway 0.4 — — — 2.0 4.9 7.3 Finland 0.8 0.2 — — 0.2 5.6 6.8 Luxembourg 0.5 — 3.1 — — 0.8 4.4 The Netherlands 0.3 — — — 3.4 0.2 3.9 Denmark 0.2 — — — 1.8 1.3 3.3 Poland 3.1 — — — — 0.0 3.1 Belgium 1.6 — — — 0.6 0.2 2.4 Spain — — — — 1.7 0.4 2.1 Austria — — — — 1.7 — 1.7 Switzerland — — — — 0.2 0.5 0.7 Portugal — — — — — 0.6 0.6 Ireland — — — — — 0.3 0.3 Latvia — — — — 0.2 — 0.2 Iceland — — — — — 0.1 0.1 Italy — — — — — 0.1 0.1 Estonia — — — — 0.1 0.0 0.1 Total 17.0 0.2 3.1 4.0 17.9 20.0 62.2 December 31, 2018 Multilateral Central Regional development Public sector Financial Skr bn governments governments banks entity institutions 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 Corporate exposures, broken down by industry (1) December 31, 2019 December 31, 2018 Skr bn Gross exposure Net exposure Gross exposure Net exposure IT and telecom 84.6 13.6 79.6 13.0 Industry 46.6 40.7 46.9 41.0 Finance 23.3 12.8 27.6 16.6 Commodities 21.2 16.6 24.5 19.0 Consumer goods 25.1 23.8 21.8 20.4 Electricity, water and gas 13.7 4.4 15.0 5.6 Healthcare 4.8 4.6 3.5 3.2 Energy 1.8 0.2 2.5 0.5 Other 0.2 0.2 0.2 0.2 Total 221.3 116.9 221.6 119.5 (1) In accordance with the reporting standard (GICS). |
Schedule of credit quality | December 31, 2019 Skr mn AAA AA+ till A- BBB+ till BBB- BB+ till B- CCC till D Carrying amount Cash and cash equivalents 711 651 — — — 1,362 Treasuries/government bonds 2,191 6,153 — — — 8,344 Other interest-bearing securities except loans 20,092 33,284 530 — — 53,906 Loans in the form of interest-bearing securities — 9,785 29,622 4,220 — 43,627 Loans to credit institutions 2,285 23,455 1,205 65 — 27,010 Loans to the public 85,619 28,503 31,327 18,399 — 163,848 Derivatives — 5,822 1,146 — — 6,968 Total financial assets 110,898 107,653 63,830 22,684 — 305,065 Committed undisbursed loans 48,246 1,307 807 1,790 — 52,150 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 |
Schedule of impact of credit risk hedges | Impact of credit-risk hedges December 31, 2019 Gross exposures by exposure class whereof subject Multilateral to the write-down Central Regional development Public Financial requirement in Skr bn government governments banks Sector Entity institutions Corporates Total IFRS9(1) Amounts related to hedges issued by: Central governments 51.3 1.7 — — 0.0 95.7 148.7 148.7 of which, guarantees issued by the EKN 50.4 1.7 — — 0.0 83.0 135.1 135.1 of which, guarantees issued by other 0.9 — — — — 9.5 10.4 10.4 of which, other guarantees — — — — — 3.2 3.2 3.2 Regional governments — — — — 5.1 0.7 5.8 5.8 Multilateral development banks — — — — — 0.3 0.3 0.3 Financial institutions 0.0 — — — 0.0 7.7 7.7 7.7 of which, credit default swaps — — — — — — — — of which, guarantees 0.0 — — — 0.0 7.7 7.7 7.7 Corporates — — — — — 3.1 3.1 3.1 of which, credit insurance from insurance companies — — — — — 1.6 1.6 1.6 of which, other guarantees — — — — — 1.5 1.5 1.5 Total hedged exposures 51.3 1.7 — — 5.1 107.5 165.6 165.6 Unhedged exposures(2) 12.6 10.6 2.8 4.0 38.1 113.8 181.9 119.3 Total 63.9 12.3 2.8 4.0 43.2 221.3 347.5 284.9 (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 23.5 billion for corporates, Skr 4.2 billion for financial institutions and Skr 0.1 billion for central governments. December 31, 2018 Gross exposures by exposure class whereof subject to the write-down Central Regional Public Financial requirement in 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 — 0.0 — 5.5 0.8 6.3 6.3 Multilateral development banks — — — — 0.1 0.1 0.1 Financial institutions 0.0 — — 0.0 6.9 6.9 6.9 of which, credit default swaps — — — — — — — of which, guarantees 0.0 — — 0.0 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(1) 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) 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. |
Schedule of risk specific measures | Market risk, type Definition Risk profile Total risk: Value at Risk (VaR), stressed VaR (sVaR) VaR measures a potential negative impact on SEK’s own funds, in the form of unrealized gains or losses. The risk factors that primarily drive VaR are cross-currency basis spreads and interest rates. In SEK’s liquidity portfolio, the primary driver is the bond portfolio credit spread risk. At year-end 2019 VaR for SEK and the liquidity portfolio amounted to Skr 18 million (year-end 2018: Skr 14 million) and Skr 10 million (year-end 2018: Skr 8 million), and sVaR to Skr 123 million (2018: Skr 97 million). Risk appetite were Skr 100 million (year-end 2018: Skr 100 million) and Skr 50 million (year-end 2018: Skr 50 million) respectively. Total risk: Aggregated risk measure The Aggregated risk measure measures a potential negative impact on SEK’s own funds as a result of unrealized value changes from historical market movements. Monthly market movements dating back as far as 2007 are applied to current holdings to simulate possible outcomes. The worst outcome is reported as the Aggregated risk measure. The risk factors primarily driving the Aggregated risk measure are credit spreads and interest rates. Since the Aggregated risk measure is based on historical market data from 2007, the measure is comparable with stressed VaR (see above), although with another horizon. At the end of 2019, the Aggregated risk measure amounted to Skr 452 million (year-end 2018: Skr 742 million). Risk appetite was Skr 1100 million (year-end 2018: Skr 1100 million). Interest-rate risk regarding changes in the economic value of SEK’s port-folio (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 separately 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 2019, the risk amounted to Skr 252 million (year-end 2018: Skr 188 million). Risk appetite was Skr 500 million (year-end 2018: Skr 500 million). Interest-rate risk regarding changes in future net interest income (NII) The net interest income risk is calculated as the impact on net interest income for the coming year if interest-rate fixings, new financing and investment must take place following a positive interest-rate shift of 100 basis points. 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 risk appetite of Skr 350 million is shared between this measure and the risk to NII from cross-currency basis spreads. At the end of 2019, the combined exposure for NII risk including risk to NII from cross-currency basis swaps was Skr 255 million (year-end 2018: Skr 237 million). Risk to NII from cross-currency basis spreads The 12 ‑month risk to NII from cross-currency basis spreads 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. The risk per currency is totaled in absolute terms. The risk is attributable to cases where funding and lending are not matched in terms of currency and, therefore, the future cost of converting funding to the desired currency is dependent on cross-currency basis spreads. The measure is limited together with NII risk, see above. Credit spread risk in assets Credit spread risk in assets is calculated as a potential impact on SEK’s own funds, 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 SEK’s liquidity portfolio. At the end of 2019, the credit spread risk in assets was Skr 357 million (year-end 2018: Skr 297 million) and the credit spread risk limit in assets amounted to Skr 500 million (year-end 2018: 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 shifted by 20 basis points. The risk is attributable to SEK’s structured debt measured at fair value. At year-end 2019, the credit spread risk in own debt amounted to Skr 456 million (year-end 2018: Skr 606 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 2019, the cross-currency basis spread risk amounted to Skr 278 million (year-end 2018:Skr 212 million) and the cross-currency basis spread risk limit amounted to Skr 450 million (year-end 2018: Skr 450 million). Currency risk The risk is calculated as the change in value of all foreign currency positions excluding unrealized changes in fair value at an assumed 10 percentage- point change in the exchange rate between the respective currency and the Swedish krona. The foreign exchange position mainly arises on an ongoing basis due to differences between revenues and costs (net interest margins) in foreign currency. At the end of 2019, the risk amounted to Skr 4 million (year-end 2018: Skr 8 million) and the limit for currency risk was Skr 15 million (year-end 2018: Skr 15 million). Interest-rate volatility risk The risk is measured through a number of positive and negative shifts. The risk per underlying volatility is the most negative outcome of these shifts. The risk per underlying is totaled in absolute terms. The risk is attributable to SEK’s structured debt measured at fair value and interest rate floors in lending transactions. At the end of 2019, the risk amounted to Skr 50 million. The limit for interest-rate volatility risk was Skr 200 million. Tenor basis spread risk Tenor basis spread risk measures the potential impact on SEK’s economic value, in the form of unrealized gains or losses, as a result of ten basis point shifts of interest rate curves of different tenors. Positive and negative exposures are measured separately and whichever is largest, in absolute terms, comprises the exposure. The risk is attributable to lending and borrowing with one and six month tenor which is not swapped to three month tenor. At the end of 2019, the total risk amounted to Skr 87 million. Other risks - (equities, commodity and volatility risks) Measures unrealized gains or losses and are calculated with the aid of stress tests of underlying indices or volatilities. SEK’s equities and commodity risks, as well as FX volatility risks, only arise from structured borrowing. Although all structured cash flows are matched through a hedging swap, there could be an impact on SEK’s result. These risks are low, and arise because valuation of the bond, but not the swap, takes account of SEK’s own credit spread. |
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 percent). 2019 2018 of which, financial instruments of which, financial instruments measured at fair measured at fair value through profit or value Skr mn Total loss Total through profit or loss Foreign currency -87 167 59 258 Swedish kronor -140 128 -174 95 -227 295 -115 353 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 percent). 2019 2018 of which, financial instruments of which, financial instruments measured at fair measured at fair value through profit or value Skr mn Total loss Total through profit or loss Foreign currency 304 -157 -29 -272 Swedish kronor 265 -124 216 -92 569 -281 187 -364 |
Schedule of assets and liabilities denominated in foreign currency | December 31, 2019 December 31, 2018 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) EUR 10.4474 1 -160 10.2626 1 -165 USD 9.3283 2 318 8.9674 1 188 JPY 0.0857 1 -115 0.0812 1 -185 GBP 12.2457 0 -87 11.3683 1 -133 MXN 0.4947 0 -86 — — — THB 0.3118 1 -109 0.2755 1 -120 Other — 0 -16 — 1 282 Total foreign currency position 5 -255 6 -133 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 5 million (year-end 2018: Skr 0 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, 2019 December 31, 2018 Total assets, 302,033 of which, denominated in foreign currencies 216,355 Total liabilities, 283,794 of which, denominated in foreign currencies 229,880 |
Summary of liquidity reserve | December 31, 2019 Skr bn Total SKR EUR USD Other Securities issued or guaranteed by sovereigns, central banks or multilateral development banks 18.0 4.7 4.8 7.1 1.4 Securities issued or guaranteed by municipalities or other public entities 13.3 11.9 0.8 0.6 — Covered bonds issued by other institutions 11.1 11.1 — — — Balances with other banks and National Debt Office, overnight — — — — — Total Liquidity Reserve 42.4 27.7 5.6 7.7 1.4 December 31, 2018 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, 2019 December 31, 2018 M < 1 year 84 % 74 % 1 year < M < 3 years 16 % 26 % M > 3 years 0 % 0 % |
Schedule of key figures for liquidity risk | Key figures for liquidity risk December 31, 2019 December 31, 2018 LCR under EU Commission’s delegated act 620 % 266 % NFSR 120 % 144 % |
Schedule of contractual flows | December 31, 2019 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 651 — — — — 651 711 1,362 Treasuries/government bonds 1,697 1,044 4,289 1,329 — 8,359 -15 8,344 Other interest-bearing securities except loans 6,581 12,417 26,399 8,903 — 54,300 -394 53,906 Loans in the form of interestbearing securities 332 1,379 6,106 26,369 12,478 46,664 -3,037 43,627 Loans to credit institutions 486 17,204 1,928 6,334 1,592 27,544 -534 27,010 Loans to the public 4,583 10,054 33,443 86,241 44,376 178,697 -14,849 163,848 Derivatives 109 566 1,214 2,344 2,122 6,355 613 6,968 Total 14,439 42,664 73,379 131,520 60,568 322,570 -17,505 305,065 of which derivatives in hedge relationship -8 21 432 372 633 1,450 1,171 2,621 December 31, 2019 Due Due Due Due 1 month < 3 months 1 year < 5 Due > 5 Discounting Carrying Skr mn < 1 month 3 months < 1 year years years Total cash flow effect amount Financial liabilities Borrowings from credit -institutions -10 -3,680 — — — -3,690 12 -3,678 Debt securities issued -6,284 -27,985 -72,297 -155,386 -21,909 -283,861 14,522 -269,339 Derivatives -978 -1,517 -1,492 -3,106 40 -7,053 -13,003 -20,056 Total -7,272 -33,182 -73,789 -158,492 -21,869 -294,604 1,531 -293,073 of which derivatives in hedge relationship -8 30 -747 -1,096 -139 -1,960 -1,177 -3,137 Obligations Committed undisbursed loans -7,094 -1,944 -13,733 -4,652 27,424 — — — Liquidity surplus (+)/deficit (-) 73 7,538 -14,143 -31,624 66,123 27,967 — — Accumulated liquidity surplus (+)/deficit (-) 73 7,611 -6,532 -38,156 27,967 27,967 — — December 31, 2018 Due Due Due Due 1 month < 3 months 1 year < 5 Due Discounting Carrying Skr mn < 1 month 3 months < 1 year years > 5 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 Due Due Due 1 month < 3 months 1 year < 5 Due Discounting Carrying Skr mn < 1 month 3 months < 1 year years > 5 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 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 |
Transactions with related par_2
Transactions with related parties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transactions with related parties | |
Schedule of consolidated Group's transactions with its related parties | 2019 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 2,191 16 — — 2,191 16 Other interest-bearing securities except loans — — 600 -4 600 -4 Loans in the form of interestbearing securities — — 1,699 21 1,699 21 Loans to credit institutions — — 2,665 87 2,665 87 Loans to the public — — 2,056 53 2,056 53 Settlement claim against the State(1) 9,124 — — — 9,124 Total 11,315 16 7,020 157 18,335 173 Debt securities issued — — — — — — Other liabilities 24 — — — 24 — Total 24 — — — 24 — 2018 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 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 — — — — — — Other liabilities 18 — — — 18 — Total 18 — — — 18 — For information about “Settlement claim against State,” see note 16 Other assets and note 24 CIRR system. |
Risk and capital management (Ta
Risk and capital management (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Risk and capital management | |
Schedule of division of responsibility for risk, liquidity and capital management | |
Schedule of 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. Liquidity risk encompasses refinancing risk and market liquidity risk. 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 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 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 due to changes in, for example, interest rates, exchange rates, commodity prices or share prices. A distinction should be made between market risk for assets and liabilities not marked to market, and financial assets and liabilities at fair value. Market risk includes price risk in connection with sales of assets or the closing of exposures. 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 inappropriate, inadequate or faulty processes or procedures, systems, human error, or from external events. Operational risk includes legal, IT and information security risk. 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 failure to meet obligations pursuant on the one hand to legislation , ordinances and other regulations , and on the other hand to internal rules..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 Business risk is the risk of an unexpected decline in revenue resulting from, for example, changes to competitive conditions with a consequent decrease in volumes and/or falling margins. 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 effects from outsourcing, or the lack of adequate response to changes in the regulatory and business environment. Strategic risk focuses on large-scale and structural risk factors. 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 that SEK’s operations directly or indirectly impact their surroundings negatively with respect to business ethics, corruption, climate and the environment, human rights and labor conditions. Human rights includes the child rights perspective; labor conditions encompasses gender equality and diversity; and ethics includes tax transparency. 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 - IFRS 16 Leasing (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | |||
Tangible and intangible assets | kr 134 | kr 69 | kr 88 |
Total assets | 317,296 | 302,033 | |
Liabilities | |||
Other liabilities | 2,466 | 1,069 | |
Accruals and deferred income | 2,582 | 2,583 | |
Total liabilities | kr 298,214 | 283,794 | |
Effect of IFRS 16 | |||
Assets | |||
Tangible and intangible assets | 94 | ||
Total assets | 94 | ||
Liabilities | |||
Other liabilities | 95 | ||
Accruals and deferred income | (1) | ||
Total liabilities | 94 | ||
After application of IFRS 16 | |||
Assets | |||
Tangible and intangible assets | 163 | ||
Total assets | 302,127 | ||
Liabilities | |||
Other liabilities | 1,164 | ||
Accruals and deferred income | 2,582 | ||
Total liabilities | kr 283,888 |
Significant accounting polici_5
Significant accounting policies - IFRS 16 reconciliation (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of initial application of standards or interpretations | ||
Future minimum rentals payable under non-cancellable operating leases | kr (92) | |
Lease liabilities | kr (44) | |
Average incremental borrowing rate | 0.32% | |
Effect of IFRS 16 | ||
Disclosure of initial application of standards or interpretations | ||
Future minimum rentals payable under non-cancellable operating leases | kr (92) | |
Discounting effect | 0 | |
Increase in lease term | (2) | |
Deduction for leases reclassified as low value leases | 0 | |
Other changes | (1) | |
Lease liabilities | kr (95) |
Significant accounting polici_6
Significant accounting policies - Segment reporting (Details) | 12 Months Ended |
Dec. 31, 2019segment | |
Significant accounting policies | |
Number of reportable segments | 1 |
Significant accounting polici_7
Significant accounting policies - Financial instruments (Details) | 12 Months Ended |
Dec. 31, 2019item | |
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 polici_8
Significant accounting policies - Taxes (Details) | Jan. 01, 2021 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 |
Significant accounting policies | |||||
Expected tax rate for calculation of deferred tax | 20.60% | 21.40% | 22.00% | 22.00% | 21.40% |
Significant accounting polici_9
Significant accounting policies - Fair value measurement (Details) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of fair value measurement of assets | ||
Financial assets at fair value | kr 312,379 | kr 298,836 |
Financial liabilities at fair value | 295,283 | 280,800 |
Level 3 | Maximum | ||
Disclosure of fair value measurement of assets | ||
Effect of changing the non-observable parameters | 175 | 242 |
Level 3 | Minimum | ||
Disclosure of fair value measurement of assets | ||
Effect of changing the non-observable parameters | (172) | (243) |
Fair value | Level 2 | ||
Disclosure of fair value measurement of assets | ||
Financial assets at fair value | 32,000 | 64,000 |
Financial liabilities at fair value | kr 31,000 | kr 32,000 |
Percentage of total financial assets | 11.00% | 22.00% |
Percentage of total financial liabilities | 10.00% | 12.00% |
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 46,000 | kr 54,000 |
Percentage of total financial assets | 1.00% | 1.00% |
Percentage of total financial liabilities | 16.00% | 19.00% |
Significant accounting polic_10
Significant accounting policies - Provisions for expected credit losses (Details) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019SEK (kr)item | Dec. 31, 2018SEK (kr) | 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 23 | 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) | (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 11 | 10 | |
Weight of upturn scenario for sensitivity analysis | 100.00% | ||
Increase (decrease) in impairment of financial instruments if upturn scenario weighted 100 percent | kr (16) | (10) | |
Increase in future cash flows for sensitivity analysis | 10.00% | ||
Increase (decrease) in operating profit due to increase in future cash flows | kr 13 | 14 | |
Increase (decrease) in equity due to increase in future cash flows | kr 10 | 11 | |
Decrease in future cash flows for sensitivity analysis | 10.00% | ||
Increase (decrease) in operating profit due to decrease in future cash flows | kr (13) | (14) | |
Increase (decrease) in equity due to decrease in future cash flows | (10) | (11) | |
Gross carrying amount | |||
Sensitivity analysis | |||
Lending including off-balance | 277,061 | 264,686 | kr 272,760 |
Accumulated impairment | |||
Sensitivity analysis | |||
Lending including off-balance | kr (128) | kr (139) | kr (137) |
Net interest income (Details)
Net interest income (Details) - SEK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Interest income were related to: | ||||
Interest income | kr 6,083 | kr 5,153 | kr 3,896 | |
Interest expenses | ||||
Interest expenses excl. resolution fee | (4,197) | (3,445) | (2,020) | |
Resolution fee | (169) | (266) | (193) | |
Total interest expenses | (4,366) | (3,711) | (2,213) | |
Net interest income | 1,717 | 1,442 | 1,683 | |
Financial liabilities at fair value through profit or loss | ||||
Interest expenses | ||||
Total interest expenses | 1,183 | 704 | 278 | |
Derivative used for hedge accounting, liabilities | ||||
Interest expenses | ||||
Total interest expenses | (286) | 106 | 1,479 | |
Financial liabilities at amortized cost | ||||
Interest expenses | ||||
Total interest expenses | (5,182) | (4,390) | (3,840) | |
Available-for-sale financial assets | ||||
Interest income were related to: | ||||
Interest income | 426 | |||
Interest expenses | ||||
Total interest expenses | (93) | |||
Financial assets at fair value through profit or loss. | ||||
Interest income were related to: | ||||
Interest income | 700 | 574 | 253 | |
Interest expenses | ||||
Total interest expenses | (72) | (104) | ||
Derivatives used for hedge accounting, assets | ||||
Interest income were related to: | ||||
Interest income | (303) | (261) | (253) | |
Financial assets at amortized cost | ||||
Interest income were related to: | ||||
Interest income | 5,686 | 4,840 | 3,470 | |
Interest expenses | ||||
Total interest expenses | (9) | (27) | (37) | |
Loans to credit institutions | ||||
Interest income were related to: | ||||
Interest income | 2,005 | 1,475 | 789 | |
Loans to the public | ||||
Interest income were related to: | ||||
Interest income | 2,656 | 2,534 | 2,265 | |
Loans in the form of interest-bearing securities | ||||
Interest income were related to: | ||||
Interest income | 829 | 672 | 629 | |
Interest-bearing securities excluding loans in the form of interest-bearing securities | ||||
Interest income were related to: | ||||
Interest income | 686 | 523 | 458 | |
Derivatives | ||||
Interest income were related to: | ||||
Interest income | (291) | (210) | (372) | |
Administrative remuneration CIRR-system | ||||
Interest income were related to: | ||||
Interest income | [1] | 194 | 157 | 125 |
Administrative remuneration for concessionary loans | 2 | 2 | ||
Other assets | ||||
Interest income were related to: | ||||
Interest income | kr 4 | kr 2 | kr 2 | |
[1] | Including administrative remuneration for concessionary loans by Skr 2 million (2018: Skr 2 million). |
Net interest income - Geographi
Net interest income - Geographical areas and product group (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net interest income | |||
Interest income | kr 6,083 | kr 5,153 | kr 3,896 |
Lending to Swedish exporters | |||
Net interest income | |||
Interest income | 1,954 | 1,709 | 1,398 |
Lending to exporters' customers | |||
Net interest income | |||
Interest income | 1,510 | 1,452 | 1,251 |
Remuneration from the CIRR-system | 192 | 155 | |
Liquidity | |||
Net interest income | |||
Interest income | 2,619 | 1,992 | 1,247 |
Sweden | |||
Net interest income | |||
Interest income | 3,172 | 2,458 | 1,724 |
Europe except Sweden | |||
Net interest income | |||
Interest income | 927 | 932 | 723 |
Countries outside of Europe | |||
Net interest income | |||
Interest income | kr 1,984 | kr 1,763 | kr 1,449 |
Net fee and commissions expen_3
Net fee and commissions expense (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fee and commissions earned were related to: | |||
Lending | kr 1 | kr 5 | kr 3 |
Total fee and commissions earned | 1 | 5 | 3 |
Commissions incurred were related to: | |||
Depot and bank fees | (8) | (7) | (6) |
Brokerage | (5) | (4) | (4) |
Other commissions incurred | (21) | (26) | (21) |
Total fee and commission expenses | (34) | (37) | (31) |
Net fee and commissions expense | (33) | (32) | kr (28) |
Commissions income (expense) on financial assets and liabilities not measured at fair value through profit or loss | kr (28) | kr (28) |
Net results of financial tran_3
Net results of financial transactions (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
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 2 | kr (3) | kr 0 |
Total net results of financial transactions | 226 | 19 | (102) |
Hedging instrument | |||
Net results of financial transactions | |||
Financial instruments under fair-value hedge accounting | 2,846 | (192) | (999) |
Hedged item | |||
Net results of financial transactions | |||
Financial instruments under fair-value hedge accounting | (2,761) | 235 | 946 |
Designated upon initial recognition (FVO) | |||
Net results of financial transactions | |||
Financial assets or liabilities at fair value through profit or loss | (5,590) | 7,315 | (326) |
Mandatorily measured at fair value | |||
Net results of financial transactions | |||
Financial assets or liabilities at fair value through profit or loss | 5,710 | (7,360) | 278 |
Available-for-sale financial 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 19 | kr 24 | kr 16 |
Personnel expenses (Details)
Personnel expenses (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Personnel expenses | |||
Pensions | kr (60) | kr (52) | kr (58) |
Social insurance | (63) | (59) | (61) |
Other personnel expenses | (19) | (14) | (12) |
Total personnel expenses | (333) | (311) | (320) |
Board of Directors and the Chief Executive Officer | |||
Personnel expenses | |||
Salaries and remuneration | (7) | (7) | (7) |
Senior Executives | |||
Personnel expenses | |||
Salaries and remuneration | (23) | (21) | (20) |
Pensionable remuneration | 23 | 21 | |
Other employees | |||
Personnel expenses | |||
Salaries and remuneration | (161) | (158) | kr (162) |
Catrin Fransson, Chief Executive Officer (CEO) | |||
Personnel expenses | |||
Pensionable remuneration | kr 5 | kr 5 |
Personnel expenses - Remunerati
Personnel expenses - Remuneration and other benefits (Details) - SEK (kr) kr in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lars Linder Aronson | |||
Personnel expenses | |||
Fee, includes committee fee | kr (603) | kr (612) | kr (745) |
Total | (603) | (612) | (745) |
Cecilia Ardstrom | |||
Personnel expenses | |||
Fee, includes committee fee | (308) | (287) | (344) |
Total | (308) | (287) | (344) |
Jan Belfrage, resigned March 22, 2017 | |||
Personnel expenses | |||
Fee, includes committee fee | (72) | ||
Total | (72) | ||
Reinhold Geijer, from March 22, 2017 | |||
Personnel expenses | |||
Fee, includes committee fee | (275) | (269) | (213) |
Total | (275) | (269) | (213) |
Hans Larsson, from March 22, 2017 | |||
Personnel expenses | |||
Fee, includes committee fee | (249) | (250) | (212) |
Total | (249) | (250) | (212) |
Eva Nilsagard, from April 24, 2018 | |||
Personnel expenses | |||
Fee, includes committee fee | (277) | (182) | |
Total | (277) | (182) | |
Susanne Lithander, resigned April 24, 2018 | |||
Personnel expenses | |||
Fee, includes committee fee | (74) | (263) | |
Total | (74) | (263) | |
Ulla Nilsson | |||
Personnel expenses | |||
Fee, includes committee fee | (298) | (287) | (273) |
Total | (298) | (287) | (273) |
Magnus Uggla, resigned March 22, 2017 | |||
Personnel expenses | |||
Fee, includes committee fee | (46) | ||
Total | (46) | ||
Catrin Fransson, Chief Executive Officer (CEO) | |||
Personnel expenses | |||
Fixed remuneration | (5,015) | (4,743) | (4,638) |
Other benefits | (25) | (88) | (97) |
Pension fee | (1,462) | (1,418) | (1,372) |
Total | kr (6,502) | kr (6,249) | kr (6,107) |
Retirement age | 65 years | 65 years | 65 years |
Pension fee on fixed salary (in percent) | 30.00% | 30.00% | 30.00% |
Per Akerlind, Head of Treasury and Capital Management and Executive Vice President | |||
Personnel expenses | |||
Fixed remuneration | kr (3,509) | kr (3,339) | kr (3,278) |
Other benefits | (30) | (85) | (92) |
Pension fee | (1,123) | (1,307) | (1,159) |
Total | (4,662) | (4,731) | (4,529) |
Karl Johan Bernerfalk, General Counsel | |||
Personnel expenses | |||
Fixed remuneration | (1,507) | (1,414) | (1,372) |
Other benefits | (23) | (33) | (18) |
Pension fee | (529) | (505) | (447) |
Total | (2,059) | (1,952) | (1,837) |
Andreas Ericson, Head of Mid Corporates, from October 15, 2018 | |||
Personnel expenses | |||
Fixed remuneration | (1,978) | (410) | |
Other benefits | (28) | (6) | |
Pension fee | (607) | (146) | |
Total | (2,613) | (562) | |
Stefan Friberg, Chief Financial Officer (CFO), formerly Chief Risk Officer (CRO) | |||
Personnel expenses | |||
Fixed remuneration | (2,922) | (2,930) | (2,908) |
Other benefits | (27) | (25) | (19) |
Pension fee | (500) | (483) | (465) |
Total | (3,449) | (3,438) | (3,392) |
Teresa Hamilton Burman, Chief Credit Officer (CCO) | |||
Personnel expenses | |||
Fixed remuneration | (2,353) | (2,326) | (2,252) |
Other benefits | (18) | (16) | (11) |
Pension fee | (508) | (493) | (485) |
Total | (2,879) | (2,835) | (2,748) |
Jens Hedar, Head of Large Corporates, from October 15, 2018 | |||
Personnel expenses | |||
Fixed remuneration | (2,224) | (461) | |
Other benefits | (15) | (5) | |
Pension fee | (649) | (157) | |
Total | (2,888) | (623) | |
Johan Henningsson, Head of Sustainability | |||
Personnel expenses | |||
Fixed remuneration | (1,261) | (1,191) | |
Other benefits | (27) | (30) | |
Pension fee | (466) | (435) | |
Total | (1,754) | (1,656) | |
Petra Konberg, Head Of Marketing and Business Development, from April 18, 2017 | |||
Personnel expenses | |||
Fixed remuneration | (1,236) | (1,143) | (830) |
Other benefits | (33) | (28) | (20) |
Pension fee | (407) | (384) | (220) |
Total | (1,676) | (1,555) | (1,070) |
Irina Slinko, acting Chief Risk Officer (CRO), resigned August 20, 2019 | |||
Personnel expenses | |||
Fixed remuneration | (1,159) | ||
Other benefits | (12) | ||
Pension fee | (365) | ||
Total | (1,536) | ||
Anna-Lena Soderlund, acting Chief Risk Officer (CRO), from August 21, 2019, resigned October 27, 2019 | |||
Personnel expenses | |||
Fixed remuneration | (278) | ||
Other benefits | (6) | ||
Pension fee | (115) | ||
Total | (399) | ||
Peter Svensen, Chief Risk Officer (CRO), from October 28, 2019 | |||
Personnel expenses | |||
Fixed remuneration | (471) | ||
Other benefits | (3) | ||
Pension fee | (80) | ||
Total | (554) | ||
Jane Lundgren Ericsson, Head of Lending, resigned October 12, 2018 | |||
Personnel expenses | |||
Fixed remuneration | (1,943) | (2,410) | |
Other benefits | (75) | (98) | |
Pension fee | (610) | (720) | |
Total | (2,628) | (3,228) | |
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 (CHRO) | |||
Personnel expenses | |||
Fixed remuneration | (1,644) | (1,471) | (1,415) |
Other benefits | (42) | (106) | (105) |
Pension fee | (623) | (556) | (536) |
Total | (2,309) | (2,133) | (2,056) |
Susanna Rystedt, Chief Administrative Officer (CAO) | |||
Personnel expenses | |||
Fixed remuneration | (2,484) | (2,255) | (2,191) |
Other benefits | (40) | (108) | (112) |
Pension fee | (759) | (733) | (720) |
Total | (3,283) | (3,096) | (3,023) |
Edvard Unsgaard, Head of Communication, resigned April 18, 2017 | |||
Personnel expenses | |||
Fixed remuneration | (314) | ||
Other benefits | (8) | ||
Pension fee | (102) | ||
Total | (424) | ||
Madeleine Widaeus, Chief Information Officer (CIO), from February 1, 2018 | |||
Personnel expenses | |||
Fixed remuneration | (1,574) | (1,360) | |
Other benefits | (16) | (11) | |
Pension fee | (463) | (405) | |
Total | (2,053) | (1,776) | |
Board of Directors and Senior Executives | |||
Personnel expenses | |||
Fee, includes committee fee | (2,010) | (1,961) | (2,168) |
Fixed remuneration | (28,354) | (25,184) | (24,319) |
Other benefits | (318) | (615) | (637) |
Pension fee | (8,190) | (7,699) | (7,075) |
Total | kr (38,872) | kr (35,459) | kr (34,199) |
Personnel expenses - Total expe
Personnel expenses - Total expenditure on remuneration (Details) | 12 Months Ended | ||
Dec. 31, 2019Yemployeeitem | Dec. 31, 2018 | Dec. 31, 2017 | |
Personnel Expenses | |||
Number of systems for variable remuneration | 1 | ||
Number of levels of testing individual variable remuneration | 3 | ||
Number of months salary maximum at Company level | 2 | ||
Number of months salary maximum outcome for individual variable remuneration based on department's quantitative targets | 2 | ||
Individual variable remuneration test out come lower limit | 0 | ||
Individual variable remuneration test out come department level upper limit | 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 | ||
Catrin Fransson, Chief Executive Officer (CEO) | |||
Personnel Expenses | |||
Notice period | 6 months | ||
Severance pay period limit | 18 months | ||
Retirement age | 65 years | 65 years | 65 years |
Pension fee percentage on fixed salary | 30.00% | 30.00% | 30.00% |
Per Akerlind, Head of Treasury and Capital Management and Executive Vice President | |||
Personnel Expenses | |||
Notice period | 6 months | ||
Severance pay period limit | 18 months | ||
Senior Executives | |||
Personnel Expenses | |||
Retirement age | 65 years | ||
Pension fee percentage on fixed salary | 30.00% | ||
Senior Executives | Minimum | |||
Personnel Expenses | |||
Notice period | 3 months | ||
Senior Executives | Maximum | |||
Personnel Expenses | |||
Notice period | 6 months |
Personnel expenses - Pension (D
Personnel expenses - Pension (Details) - SEK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of net defined benefit liability (asset) | ||||
Service cost | kr (6) | kr (4) | kr (5) | |
Regulation of pension obligations | 0 | 5 | ||
Interest cost, net | (2) | (1) | (1) | |
Pension cost for defined benefit pensions, incl. payroll tax | (8) | 0 | (6) | |
Pension cost for defined contribution pension cost incl. payroll tax | (52) | (52) | (52) | |
Pension cost recognized in personnel costs | (60) | (52) | (58) | |
Revaluation of defined benefit plans | (4) | (48) | (4) | |
Provision for pensions | 83 | 80 | 40 | kr 38 |
Present value of defined benefit obligation | ||||
Disclosure of net defined benefit liability (asset) | ||||
Revaluation of defined benefit plans | (16) | (48) | (7) | |
Provision for pensions | 272 | 253 | 263 | 254 |
Plan assets | ||||
Disclosure of net defined benefit liability (asset) | ||||
Revaluation of defined benefit plans | 12 | 0 | 3 | |
Provision for pensions | (189) | (173) | (223) | kr (216) |
Effect of asset ceiling | ||||
Disclosure of net defined benefit liability (asset) | ||||
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure of net defined benefit liability (asset) | |||
Balance at beginning of the period | kr 80 | kr 40 | kr 38 |
Contributions by the employer | (7) | (7) | (7) |
Pension Payments incl. special payroll tax / Benefits paid | (1) | (1) | (1) |
Balance at end of the period | 83 | 80 | 40 |
Present value of defined benefit obligation | |||
Disclosure of net defined benefit liability (asset) | |||
Balance at beginning of the period | 253 | 263 | 254 |
Service cost | 6 | 4 | 5 |
Interest cost / Expected return on plan assets | 5 | 6 | 7 |
Pension Payments incl. special payroll tax / Benefits paid | (8) | (9) | (10) |
Other | 0 | (59) | |
Actuarial (gains) and losses, effect due to changed financial assumptions | 25 | 46 | 9 |
Actuarial (gains) and losses, effect due to experience based outcome | (9) | 2 | (2) |
Balance at end of the period | 272 | 253 | 263 |
Plan assets | |||
Disclosure of net defined benefit liability (asset) | |||
Balance at beginning of the period | (173) | (223) | (216) |
Interest cost / Expected return on plan assets | (4) | (5) | (6) |
Contributions by the employer | (7) | (7) | (7) |
Pension Payments incl. special payroll tax / Benefits paid | 7 | 8 | 8 |
Other | 0 | 54 | |
Return on plan assets excluding interest income | (12) | 0 | (2) |
Balance at end of the period | (189) | (173) | kr (223) |
Expected contribution from the employer | 6 | 6 | |
Expected compensation paid | kr 9 | kr 8 |
Personnel expenses - Plan asset
Personnel expenses - Plan assets (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of net defined benefit liability (asset) | |||
Other Investments | kr 25 | kr 19 | |
Properties | 23 | 21 | kr 24 |
Plan assets | 189 | 173 | 223 |
Mortgage bonds | |||
Disclosure of net defined benefit liability (asset) | |||
Debt instruments | 49 | 49 | 76 |
Sweden | |||
Disclosure of net defined benefit liability (asset) | |||
Equity investments | 4 | 3 | 4 |
Sweden | Government bonds | |||
Disclosure of net defined benefit liability (asset) | |||
Debt instruments | 49 | 43 | 63 |
Sweden | Loans to the public | |||
Disclosure of net defined benefit liability (asset) | |||
Debt instruments | 22 | 26 | 40 |
Foreign countries | |||
Disclosure of net defined benefit liability (asset) | |||
Equity investments | kr 17 | kr 12 | kr 16 |
Personnel expenses - Actuarial
Personnel expenses - Actuarial assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Personnel expense | |||
Discount rate | 1.70% | 2.10% | 2.50% |
Assumption of early pension withdrawal | 20.00% | 20.00% | 20.00% |
Expected salary increase | 2.00% | 2.00% | 2.00% |
Expected inflation | 2.00% | 2.00% | 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, 2019SEK (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) | 2.70% |
Decrease in actuarial assumption (as a percent) | 1.00% |
Actuarial assumption after reasonable decrease (as a percent) | 0.70% |
Defined benefit obligation after reasonable increase in actuarial assumption | kr 215 |
Defined benefit obligation after reasonable decrease in actuarial assumption | 351 |
Service cost after reasonable increase in actuarial assumption | 5 |
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 2 |
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 286 |
Defined benefit obligation after reasonable decrease in actuarial assumption | 260 |
Service cost after reasonable increase in actuarial assumption | 6 |
Service cost after reasonable decrease in actuarial assumption | 6 |
Interest cost on defined benefit obligation after reasonable increase in actuarial assumption | 5 |
Interest cost on defined benefit obligation after reasonable decrease in actuarial assumption | kr 4 |
Personnel expenses - Reconcilia
Personnel expenses - Reconciliation of pension liabilities (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Personnel expense | |||
Balance at beginning of the period | kr 80 | kr 40 | kr 38 |
Net periodic pension cost | 7 | 0 | 6 |
Contributions by the employer | (7) | (7) | (7) |
Net pension payments | (1) | (1) | (1) |
Revaluations recognized in other comprehensive income | 4 | 48 | 4 |
Balance at end of the period | kr 83 | kr 80 | kr 40 |
Personnel expenses - Pensions (
Personnel expenses - Pensions (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Personnel expense | |||
Pension expense | kr 8 | kr 0 | kr 6 |
Expected weighted average remaining service time for active employees | 14 years 10 months 21 days | 16 years 7 months 28 days | |
Expected weighted average duration for the present value | 19 years 2 months 23 days | 19 years 4 months 13 days | |
Average salary for active employees | kr 0.9 | 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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Personnel expense | |||
Average number employees, women | 120 | 117 | 121 |
Average number employees, men | 121 | 126 | 131 |
Total average number of employees | 241 | 243 | 252 |
Personnel expenses - Number of
Personnel expenses - Number of employees at year-end (Details) | 12 Months Ended | ||
Dec. 31, 2019employeeitem | Dec. 31, 2018employee | Dec. 31, 2017employee | |
Personnel expense | |||
Number of women employees | 123 | 118 | 122 |
Number of men employees | 121 | 120 | 128 |
Number of employees | 244 | 238 | 250 |
Number of full time employees | 236 | 230 | 243 |
Percentage of allocation of women in full-time employees | 50.00% | 49.00% | 48.00% |
Percentage of allocation of men in full-time employees | 50.00% | 51.00% | 52.00% |
Number of part time employees | 8 | 8 | 7 |
Percentage of allocation of women in part-time employees | 75.00% | 75.00% | 86.00% |
Percentage of allocation of men in part-time employees | 25.00% | 25.00% | 14.00% |
Number of permanent employees | 243 | 236 | 246 |
Percentage of allocation of women in permanent employees | 51.00% | 50.00% | 49.00% |
Percentage of allocation of men in permanent employees | 49.00% | 50.00% | 51.00% |
Number of temporary employees | 1 | 2 | 4 |
Percentage of allocation of women in temporary employees | 0.00% | 50.00% | 50.00% |
Percentage of allocation of men in temporary employees | 100.00% | 50.00% | 50.00% |
Number of managers | 31 | 29 | 31 |
Number of non-management employees | 213 | 209 | 219 |
Number of consultants | item | 66 |
Personnel expenses - Employees
Personnel expenses - Employees by age distribution (Details) - employee | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Personnel expense | |||
Number of employees | 244 | 238 | 250 |
Number of employees under the age of 30 years | 12 | 13 | 16 |
Number of employees between 30 and 50 years | 127 | 127 | 142 |
Number of employees over 50 years | 105 | 98 | 92 |
Personnel expenses - Employee t
Personnel expenses - Employee turnover (Details) - employee | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Personnel expense | |||
Number of employees who left employment | 30 | 32 | 31 |
Number of women employees who left employment | 16 | 12 | 12 |
Number of men employees who left employment | 14 | 20 | 19 |
Number of employees who left employment under the age of 30 years | 2 | 3 | 4 |
Number of employees who left employment between 30 and 50 years | 22 | 20 | 20 |
Number of employees who left employment over 50 years | 6 | 9 | 7 |
Personnel expenses - Employee_2
Personnel expenses - Employees by health percentage (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Personnel expense | |||
Percentage of employees absence due to sickness | 2.50% | 3.10% | 3.30% |
Percentage of employees that use fitness allowance | 89.00% | 91.00% | 92.00% |
Personnel expenses - Employee e
Personnel expenses - Employee equality and diversity (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Personnel expense | |||
Percentage of allocation of women on the Board of Directors | 62.00% | 62.00% | 60.00% |
Percentage of allocation of men on the Board of Directors | 38.00% | 38.00% | 40.00% |
Percentage of allocation of women in executive management | 50.00% | 50.00% | 64.00% |
Percentage of allocation of men in executive management | 50.00% | 50.00% | 36.00% |
Percentage of allocation of women in management positions | 42.00% | 41.00% | 42.00% |
Percentage of allocation of men in management positions | 58.00% | 59.00% | 58.00% |
Percentage of allocation of women employees in total | 50.00% | 51.00% | 49.00% |
Percentage of allocation of men employees in total | 50.00% | 49.00% | 51.00% |
Percentage of allocation of employees with foreign background | 33.00% | 33.00% | 33.00% |
Percentage of allocation of employees with Swedish background | 67.00% | 67.00% | 67.00% |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Personnel expense | |||
Percentage of employees who had a performance review | 96.00% | 95.00% | |
Average number of training days per employee | 3 | 3 | 2 |
Other administrative expenses_2
Other administrative expenses (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other administrative expenses | |||
Travel expenses and marketing | kr (7) | kr (7) | kr (8) |
IT and information system (fees incl.) | (156) | (151) | (144) |
Other fees | (34) | (34) | (38) |
Premises | (3) | (33) | (32) |
Other | (6) | (6) | (10) |
Total other administrative expenses | kr (206) | kr (231) | kr (232) |
Other administrative expenses -
Other administrative expenses - Remuneration to auditors (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Auditor's remuneration details | |||
Audit fees | kr (10) | kr (8) | kr (8) |
Audit related fees | 0 | 0 | 0 |
Tax related fees | 0 | 0 | |
Other fees | (2) | (2) | (1) |
Total | kr (12) | kr (10) | kr (9) |
Tangible and intangible asset_2
Tangible and intangible assets (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Tangible and intangible assets | |||
Tangible assets | kr 28 | kr 26 | kr 22 |
Right-of-use assets | 50 | ||
Intangible assets | 56 | 43 | 66 |
Total net book value | 134 | 69 | 88 |
Depreciation and impairment during the year according to the Consolidated Statement of Comprehensive Income | kr (57) | kr (40) | kr (45) |
Average useful life for intangible assets | 5 years |
Leasing - Right of use asset (D
Leasing - Right of use asset (Details) kr in Millions | 12 Months Ended |
Dec. 31, 2019SEK (kr) | |
Leasing | |
Potential future cash flows related to lease extension options | kr 78 |
Period of lease extension options | 3 years |
Depreciation | kr (32) |
Deduction | (12) |
Right-of-use asset, closing balance | 50 |
Decrease in right-of-use assets through change in estimation | 13 |
Decrease in lease liability through change in estimation | 13 |
After application of IFRS 16 | |
Leasing | |
Right-of-use asset, opening balance | kr 94 |
Leasing - Accounted for in prof
Leasing - Accounted for in profit or loss (Details) kr in Millions | 12 Months Ended |
Dec. 31, 2019SEK (kr) | |
Leasing | |
Depreciation charge on right-of-use assets | kr (32) |
Interest expenses on lease liability | 0 |
Expenses relating to short-term leases | 0 |
Expenses relating to low-value leases | (1) |
Variable lease fees | (1) |
Total amount accounted for in profit or loss | kr (34) |
Leasing - Lease liability (Deta
Leasing - Lease liability (Details) kr in Millions | 12 Months Ended |
Dec. 31, 2019SEK (kr) | |
Lease liabilities | |
Interest expense accrued | kr 0 |
Payments of lease liability | (39) |
Deduction | (12) |
Lease liabilities, closing balance | 44 |
Decrease in right-of-use assets through change in estimation | 13 |
Decrease in lease liability through change in estimation | 13 |
After application of IFRS 16 | |
Lease liabilities | |
Lease liabilities, opening balance | kr 95 |
Leasing - Contractual flows of
Leasing - Contractual flows of lease liability and costs (Details) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Leases | ||
Discounting effect | kr 0 | |
Lease liabilities | 44 | |
Cash outflow | 41 | |
Cost of operating leases | kr (32) | |
Future minimum rentals payable under non-cancellable operating leases | (92) | |
Within 1 year | ||
Leases | ||
Undiscounted lease payments | 26 | |
Future minimum rentals payable under non-cancellable operating leases | (32) | |
Between 1 and 5 years | ||
Leases | ||
Undiscounted lease payments | kr 18 | |
Future minimum rentals payable under non-cancellable operating leases | kr (60) |
Leasing - Future lease payments
Leasing - Future lease payments receivable (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Leasing | ||
Gross investment | kr 150 | kr 307 |
Present value of minimum lease payments | 139 | 274 |
Unearned finance income | 14 | 33 |
Within 1 year | ||
Leasing | ||
Gross investment | 63 | 117 |
Present value of minimum lease payments | 61 | 113 |
Between 1 and 5 years | ||
Leasing | ||
Gross investment | 87 | 182 |
Present value of minimum lease payments | kr 78 | 156 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of changes in allowance account for credit losses of financial assets | |||
Net credit losses for IFRS 9 | kr (10) | kr 7 | |
Impairment of financial assets | kr (59) | ||
Reversal of previous write-downs | 110 | ||
Established credit losses | (25) | (47) | |
Reserves applied to cover established credit losses | 40 | 46 | |
Recovered credit losses | 0 | 1 | |
Net credit losses | kr 51 | ||
12-month expected credit losses | |||
Reconciliation of changes in allowance account for credit losses of financial assets | |||
Net credit losses for IFRS 9 | (19) | 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 | 11 | 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 (17) | kr (13) |
Impairments - Loss Allowance (D
Impairments - Loss Allowance (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Loans and off balance | |||
Provision ratio | 0.05% | 0.05% | |
12-month expected credit losses | |||
Loans and off balance | |||
Provision ratio | 0.03% | 0.02% | |
Lifetime expected credit losses | Financial instruments not credit-impaired | |||
Loans and off balance | |||
Provision ratio | 0.02% | 0.03% | |
Lifetime expected credit losses | Financial instruments credit-impaired | |||
Loans and off balance | |||
Provision ratio | 4.82% | 5.89% | |
Gross carrying amount | |||
Loans and off balance | |||
Loans and off balance | kr 277,061 | kr 264,686 | kr 272,760 |
Of which guaranteed | 62.20% | 64.10% | |
Gross carrying amount | Loans in the form of interest-bearing securities | |||
Loans and off balance | |||
Loans and off balance | kr 43,644 | kr 36,798 | |
Gross carrying amount | Loans to credit institutions | |||
Loans and off balance | |||
Loans and off balance | 10,119 | 11,352 | |
Gross carrying amount | Loans to the public | |||
Loans and off balance | |||
Loans and off balance | 163,955 | 160,946 | |
Gross carrying amount | Guarantees | |||
Loans and off balance | |||
Loans and off balance | 4,393 | 4,065 | |
Gross carrying amount | Committed undisbursed loans | |||
Loans and off balance | |||
Loans and off balance | 54,950 | 51,525 | |
Gross carrying amount | 12-month expected credit losses | |||
Loans and off balance | |||
Loans and off balance | kr 214,115 | kr 202,583 | 209,232 |
Of which guaranteed | 56.40% | 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 40,909 | kr 34,112 | |
Gross carrying amount | 12-month expected credit losses | Loans to credit institutions | |||
Loans and off balance | |||
Loans and off balance | 9,578 | 10,188 | |
Gross carrying amount | 12-month expected credit losses | Loans to the public | |||
Loans and off balance | |||
Loans and off balance | 132,313 | 134,117 | |
Gross carrying amount | 12-month expected credit losses | Guarantees | |||
Loans and off balance | |||
Loans and off balance | 3,232 | 2,818 | |
Gross carrying amount | 12-month expected credit losses | Committed undisbursed loans | |||
Loans and off balance | |||
Loans and off balance | 28,083 | 21,348 | |
Gross carrying amount | Lifetime expected credit losses | Financial instruments not credit-impaired | |||
Loans and off balance | |||
Loans and off balance | kr 61,619 | kr 60,678 | 62,286 |
Of which guaranteed | 92.10% | 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 2,735 | 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 | 541 | 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 | 30,326 | 25,405 | |
Gross carrying amount | Lifetime expected credit losses | Financial instruments not credit-impaired | Guarantees | |||
Loans and off balance | |||
Loans and off balance | 1,161 | 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 | 26,856 | 30,177 | |
Gross carrying amount | Lifetime expected credit losses | Financial instruments credit-impaired | |||
Loans and off balance | |||
Loans and off balance | kr 1,327 | kr 1,425 | 1,242 |
Of which guaranteed | 95.40% | 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 1,316 | kr 1,424 | |
Gross carrying amount | Lifetime expected credit losses | Financial instruments credit-impaired | Guarantees | |||
Loans and off balance | |||
Loans and off balance | 1 | ||
Gross carrying amount | Lifetime expected credit losses | Financial instruments credit-impaired | Committed undisbursed loans | |||
Loans and off balance | |||
Loans and off balance | 11 | ||
Accumulated impairment | |||
Loans and off balance | |||
Loans and off balance | (128) | (139) | (137) |
Accumulated impairment | Loans in the form of interest-bearing securities | |||
Loans and off balance | |||
Loans and off balance | (16) | (12) | |
Accumulated impairment | Loans to credit institutions | |||
Loans and off balance | |||
Loans and off balance | (1) | (2) | |
Accumulated impairment | Loans to the public | |||
Loans and off balance | |||
Loans and off balance | (107) | (123) | |
Accumulated impairment | Guarantees | |||
Loans and off balance | |||
Loans and off balance | 0 | (2) | |
Accumulated impairment | Committed undisbursed loans | |||
Loans and off balance | |||
Loans and off balance | (4) | 0 | |
Accumulated impairment | 12-month expected credit losses | |||
Loans and off balance | |||
Loans and off balance | (54) | (34) | (38) |
Accumulated impairment | 12-month expected credit losses | Loans in the form of interest-bearing securities | |||
Loans and off balance | |||
Loans and off balance | (14) | (9) | |
Accumulated impairment | 12-month expected credit losses | Loans to credit institutions | |||
Loans and off balance | |||
Loans and off balance | (1) | (1) | |
Accumulated impairment | 12-month expected credit losses | Loans to the public | |||
Loans and off balance | |||
Loans and off balance | (36) | (24) | |
Accumulated impairment | 12-month expected credit losses | Guarantees | |||
Loans and off balance | |||
Loans and off balance | 0 | 0 | |
Accumulated impairment | 12-month expected credit losses | Committed undisbursed loans | |||
Loans and off balance | |||
Loans and off balance | (3) | 0 | |
Accumulated impairment | Lifetime expected credit losses | Financial instruments not credit-impaired | |||
Loans and off balance | |||
Loans and off balance | (10) | (21) | (33) |
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 | (2) | (3) | |
Accumulated impairment | Lifetime expected credit losses | Financial instruments not credit-impaired | Loans to credit institutions | |||
Loans and off balance | |||
Loans and off balance | 0 | (1) | |
Accumulated impairment | Lifetime expected credit losses | Financial instruments not credit-impaired | Loans to the public | |||
Loans and off balance | |||
Loans and off balance | (7) | (17) | |
Accumulated impairment | Lifetime expected credit losses | Financial instruments not credit-impaired | Guarantees | |||
Loans and off balance | |||
Loans and off balance | 0 | 0 | |
Accumulated impairment | Lifetime expected credit losses | Financial instruments not credit-impaired | Committed undisbursed loans | |||
Loans and off balance | |||
Loans and off balance | (1) | 0 | |
Accumulated impairment | Lifetime expected credit losses | Financial instruments credit-impaired | |||
Loans and off balance | |||
Loans and off balance | (64) | (84) | kr (66) |
Accumulated impairment | Lifetime expected credit losses | Financial instruments credit-impaired | Loans to the public | |||
Loans and off balance | |||
Loans and off balance | (64) | (82) | |
Accumulated impairment | Lifetime expected credit losses | Financial instruments credit-impaired | Guarantees | |||
Loans and off balance | |||
Loans and off balance | kr 0 | kr (2) |
Impairments - Reconciliations (
Impairments - Reconciliations (Details) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Gross carrying amount | ||
Changes in loss allowance | ||
Loans and off balance at beginning of period | kr 264,686 | kr 272,760 |
Increase due to origination and acquisition | 79,558 | 38,365 |
Transfer to stage 1 | (3) | 2,490 |
Transfer to stage 2 | (471) | 5,431 |
Transfer to stage 3 | (10) | 466 |
Decrease due to derecognition | (66,699) | (54,826) |
Loans and off balance at end of period | 277,061 | 264,686 |
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 | 202,583 | 209,232 |
Increase due to origination and acquisition | 73,812 | 37,594 |
Transfer to stage 1 | 13 | 2,490 |
Transfer to stage 2 | (6,752) | |
Transfer to stage 3 | (97) | |
Decrease due to derecognition | (55,444) | (46,733) |
Loans and off balance at end of period | 214,115 | 202,583 |
Gross carrying amount | Lifetime expected credit losses | Financial instruments not credit-impaired | ||
Changes in loss allowance | ||
Loans and off balance at beginning of period | 60,678 | 62,286 |
Increase due to origination and acquisition | 5,633 | 768 |
Transfer to stage 1 | (16) | |
Transfer to stage 2 | 6,281 | 5,431 |
Transfer to stage 3 | (199) | |
Decrease due to derecognition | (10,758) | (7,807) |
Loans and off balance at end of period | 61,619 | 60,678 |
Gross carrying amount | Lifetime expected credit losses | Financial instruments credit-impaired | ||
Changes in loss allowance | ||
Loans and off balance at beginning of period | 1,425 | 1,242 |
Increase due to origination and acquisition | 113 | 3 |
Transfer to stage 3 | 286 | 466 |
Decrease due to derecognition | (497) | (286) |
Loans and off balance at end of period | 1,327 | 1,425 |
Accumulated impairment | ||
Changes in loss allowance | ||
Loans and off balance at beginning of period | (139) | (137) |
Increase due to origination and acquisition | (23) | (15) |
Net remeasurement of loss allowance | 10 | 7 |
Transfer to stage 1 | 0 | 0 |
Transfer to stage 2 | 0 | 0 |
Transfer to stage 3 | (22) | 0 |
Decrease due to derecognition | 10 | 15 |
Decrease in allowance account due to write-offs | 40 | |
Exchange-rate differences | (4) | (9) |
Loans and off balance at end of period | (128) | (139) |
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 beginning of period | (34) | (38) |
Increase due to origination and acquisition | (22) | (12) |
Net remeasurement of loss allowance | (4) | 12 |
Transfer to stage 1 | 0 | 0 |
Transfer to stage 2 | 0 | 1 |
Transfer to stage 3 | 0 | 0 |
Decrease due to derecognition | 6 | 5 |
Exchange-rate differences | 0 | (2) |
Loans and off balance at end of period | (54) | (34) |
Accumulated impairment | Lifetime expected credit losses | Financial instruments not credit-impaired | ||
Changes in loss allowance | ||
Loans and off balance at beginning of period | (21) | (33) |
Increase due to origination and acquisition | (1) | (2) |
Net remeasurement of loss allowance | 7 | 9 |
Transfer to stage 1 | 0 | 0 |
Transfer to stage 2 | 0 | (1) |
Transfer to stage 3 | 2 | (2) |
Decrease due to derecognition | 4 | 10 |
Exchange-rate differences | (1) | (2) |
Loans and off balance at end of period | (10) | (21) |
Accumulated impairment | Lifetime expected credit losses | Financial instruments credit-impaired | ||
Changes in loss allowance | ||
Loans and off balance at beginning of period | (84) | (66) |
Increase due to origination and acquisition | 0 | (1) |
Net remeasurement of loss allowance | 7 | (14) |
Transfer to stage 3 | (24) | 2 |
Decrease due to derecognition | 0 | |
Decrease in allowance account due to write-offs | 40 | |
Exchange-rate differences | (3) | (5) |
Loans and off balance at end of period | kr (64) | kr (84) |
Impairments - Loan credit quali
Impairments - Loan credit quality (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of credit risk exposure | ||
Financial assets. | kr 305,065 | kr 294,327 |
AAA | ||
Disclosure of credit risk exposure | ||
Financial assets. | 110,898 | 101,310 |
AA+ to A- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 107,653 | 105,408 |
BBB+ to BBB- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 63,830 | 65,598 |
CCC to D | ||
Disclosure of credit risk exposure | ||
Financial assets. | 49 | |
Gross carrying amount | Loans | ||
Disclosure of credit risk exposure | ||
Financial assets. | 217,718 | 209,096 |
Gross carrying amount | Loans | AAA | ||
Disclosure of credit risk exposure | ||
Financial assets. | 546 | 1,204 |
Gross carrying amount | Loans | AA+ to A- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 31,421 | 25,686 |
Gross carrying amount | Loans | BBB+ to BBB- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 117,187 | 108,450 |
Gross carrying amount | Loans | BB+ to BB- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 43,759 | 47,055 |
Gross carrying amount | Loans | B+ to B- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 23,305 | 25,103 |
Gross carrying amount | Loans | CCC to D | ||
Disclosure of credit risk exposure | ||
Financial assets. | 1,500 | 1,598 |
Gross carrying amount | 12-month expected credit losses | Loans | ||
Disclosure of credit risk exposure | ||
Financial assets. | 182,800 | 178,417 |
Gross carrying amount | 12-month expected credit losses | Loans | AAA | ||
Disclosure of credit risk exposure | ||
Financial assets. | 546 | 1,204 |
Gross carrying amount | 12-month expected credit losses | Loans | AA+ to A- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 31,421 | 25,635 |
Gross carrying amount | 12-month expected credit losses | Loans | BBB+ to BBB- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 116,040 | 107,289 |
Gross carrying amount | 12-month expected credit losses | Loans | BB+ to BB- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 23,378 | 28,055 |
Gross carrying amount | 12-month expected credit losses | Loans | B+ to B- | ||
Disclosure of credit risk exposure | ||
Financial assets. | 11,411 | 16,234 |
Gross carrying amount | 12-month expected credit losses | Loans | CCC to D | ||
Disclosure of credit risk exposure | ||
Financial assets. | 4 | |
Gross carrying amount | Lifetime expected credit losses | Financial instruments not credit-impaired | Loans | ||
Disclosure of credit risk exposure | ||
Financial assets. | 33,602 | 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. | 1,147 | 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. | 20,381 | 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. | 11,894 | 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. | 180 | 202 |
Gross carrying amount | Lifetime expected credit losses | Financial instruments credit-impaired | Loans | ||
Disclosure of credit risk exposure | ||
Financial assets. | 1,316 | 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 1,316 | kr 1,396 |
Taxes (Details)
Taxes (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Taxes | |||
Adjustment previous year | kr 2 | kr (1) | kr 0 |
Current tax | (570) | (448) | (262) |
Deferred tax | 291 | 245 | 27 |
Total income tax | (277) | (204) | (235) |
Income tax related to other comprehensive income | |||
Tax on items to be reclassified to profit or loss - Current tax | 2 | 6 | 27 |
Tax on items not to be reclassified to profit or loss - Current tax | (5) | (82) | |
Tax on items not to be reclassified to profit or loss - Deferred tax | 1 | 10 | 1 |
Income tax related to other comprehensive income | kr (2) | kr (66) | kr 28 |
Taxes - Reconciliation of effec
Taxes - Reconciliation of effective tax rate (Details) - SEK (kr) kr in Millions | Jan. 01, 2021 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 |
Reconciliation of effective tax rate | |||||
The Swedish corporate tax rate, % | 20.60% | 21.40% | 22.00% | 22.00% | 21.40% |
Profit before taxes | kr 1,304 | kr 852 | kr 1,007 | ||
National tax based on profit before taxes | (279) | (187) | (222) | ||
Tax effects of: Non-taxable income | 9 | 0 | 1 | ||
Tax effects of: Non-deductible expenses | (16) | (14) | (15) | ||
Tax effects of: Imputed interest on tax allocation reserve | (1) | (2) | (2) | ||
Tax effect of dissolution of untaxed reserves due to changed tax rate | 8 | ||||
Tax effects of: Other | 2 | (1) | 3 | ||
Total income tax | kr (277) | kr (204) | kr (235) | ||
Effective tax expense in % | 21.20% | 24.00% | 23.30% |
Taxes -Deferred tax assets and
Taxes -Deferred tax assets and liabilities (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets and liabilities net | |||
Deferred tax assets | kr 16 | kr 15 | |
Deferred tax liabilities | 291 | ||
Net deferred tax liabilities (+) / tax assets (-) | (16) | 276 | kr 531 |
Deductible loss carry forwards | 0 | 0 | |
Pensions | |||
Deferred tax assets and liabilities net | |||
Deferred tax assets | kr 16 | 15 | |
Untaxed reserves | |||
Deferred tax assets and liabilities net | |||
Deferred tax liabilities | kr 291 |
Taxes - Change in deferred taxe
Taxes - Change in deferred taxes (Details) - SEK (kr) kr in Millions | Jan. 01, 2021 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2020 |
Change in deferred taxes | |||||
Opening balance | kr 276 | kr 531 | kr 276 | ||
Change through profit or loss | (291) | (245) | kr (27) | ||
Change in other comprehensive income | (1) | (10) | |||
Total | kr (16) | kr 276 | kr 531 | ||
The Swedish corporate tax rate, % | 20.60% | 21.40% | 22.00% | 22.00% | 21.40% |
Loans and liquidity investmen_3
Loans and liquidity investments (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1] | Dec. 31, 2016 | ||
Loans: | |||||||
Loans in the form of interest-bearing securities | kr 43,627 | kr 36,781 | |||||
Loans to credit institutions | 27,010 | 27,725 | |||||
Loans to the public | 163,848 | 161,094 | |||||
Cash collateral under the security agreements for derivative contracts | (16,891) | (16,374) | |||||
Total lending | 217,594 | 209,226 | |||||
Liquidity investments: | |||||||
Cash and cash equivalents | 1,362 | [1] | 2,416 | [1] | kr 1,231 | kr 7,054 | |
Treasuries/government bonds | 8,344 | 11,117 | |||||
Other interest-bearing securities except loans | 53,906 | 48,665 | |||||
Total liquidity investments | 63,612 | 62,198 | |||||
issued by public authorities | kr 13,452 | kr 15,110 | |||||
[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, 2019 | Dec. 31, 2018 |
Difference between book value and amount required to be paid at maturity | ||
Sum of amounts exceeding nominal | kr 350 | kr 143 |
Sum of amounts falling below nominal | kr (39) | kr (39) |
Loans and liquidity investmen_5
Loans and liquidity investments - Volume Development, Lending (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Volume Development, Lending | ||
Offers of long-term loans accepted | kr 74,515 | kr 57,015 |
Undisbursed loans at year end | 52,150 | 50,814 |
Loans outstanding at year-end | 217,594 | 209,226 |
Concessionary loans outstanding | 547 | 663 |
CIRR-System | ||
Volume Development, Lending | ||
Offers of long-term loans accepted | 15,500 | 4,916 |
Undisbursed loans at year end | 47,868 | 47,664 |
Loans outstanding at year-end | kr 76,120 | kr 69,922 |
Loans and liquidity investmen_6
Loans and liquidity investments - Outstanding loans as per business area (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Outstanding loans as per product type | ||
Total lending | kr 217,594 | kr 209,226 |
Concessionary loans outstanding | 547 | 663 |
CIRR-System | ||
Outstanding loans as per product type | ||
Total lending | 76,120 | 69,922 |
Lending to Swedish exporters | ||
Outstanding loans as per product type | ||
Total lending | 96,429 | 89,759 |
Lending to exporters' customers | ||
Outstanding loans as per product type | ||
Total lending | 121,165 | 119,467 |
Lending to exporters' customers | CIRR-System | ||
Outstanding loans as per product type | ||
Total lending | kr 76,120 | kr 69,922 |
Classification of financial a_3
Classification of financial assets and liabilities - Financial assets (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets at fair value through profit or loss | ||
Mandatorily | kr 66,630 | kr 64,347 |
Derivatives used for hedge accounting | 2,588 | 1,964 |
Amortized cost | 235,847 | 228,016 |
Total financial assets | 305,065 | 294,327 |
Cash and cash equivalents | ||
Financial assets at fair value through profit or loss | ||
Amortized cost | 1,362 | 2,416 |
Total financial assets | 1,362 | 2,416 |
Treasuries/government bonds | ||
Financial assets at fair value through profit or loss | ||
Mandatorily | 8,344 | 11,117 |
Total financial assets | 8,344 | 11,117 |
Other interest-bearing securities except loans | ||
Financial assets at fair value through profit or loss | ||
Mandatorily | 53,906 | 48,665 |
Total financial assets | 53,906 | 48,665 |
Loans in the form of interest-bearing securities | ||
Financial assets at fair value through profit or loss | ||
Amortized cost | 43,627 | 36,781 |
Total financial assets | 43,627 | 36,781 |
Loans to credit institutions | ||
Financial assets at fair value through profit or loss | ||
Amortized cost | 27,010 | 27,725 |
Total financial assets | 27,010 | 27,725 |
Loans to the public | ||
Financial assets at fair value through profit or loss | ||
Amortized cost | 163,848 | 161,094 |
Total financial assets | 163,848 | 161,094 |
Derivatives | ||
Financial assets at fair value through profit or loss | ||
Mandatorily | 4,380 | 4,565 |
Derivatives used for hedge accounting | 2,588 | 1,964 |
Total financial assets | kr 6,968 | kr 6,529 |
Classification of financial a_4
Classification of financial assets and liabilities - Financial liabilities (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial liabilities at fair value through profit or loss | ||
Mandatorily measured at fair value through profit or loss | kr 16,954 | kr 15,652 |
Designated upon initial recognition (FVO) | 56,705 | 64,687 |
Derivatives used for hedge accounting | 3,102 | 6,282 |
Amortized cost | 216,312 | 193,160 |
Total financial liabilities | 293,073 | 279,781 |
Borrowing from credit institutions | ||
Financial liabilities at fair value through profit or loss | ||
Amortized cost | 3,678 | 2,247 |
Total financial liabilities | 3,678 | 2,247 |
Debt securities issued | ||
Financial liabilities at fair value through profit or loss | ||
Designated upon initial recognition (FVO) | 56,705 | 64,687 |
Amortized cost | 212,634 | 190,913 |
Total financial liabilities | 269,339 | 255,600 |
Derivatives | ||
Financial liabilities at fair value through profit or loss | ||
Mandatorily measured at fair value through profit or loss | 16,954 | 15,652 |
Derivatives used for hedge accounting | 3,102 | 6,282 |
Total financial liabilities | kr 20,056 | kr 21,934 |
Financial assets and liabilit_3
Financial assets and liabilities at fair value (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of detailed information about financial instruments | ||
Book value of financial assets | kr 305,065 | kr 294,327 |
Book value of financial liabilities | 293,073 | 279,781 |
Fair value of financial assets | 312,379 | 298,836 |
Fair value of financial liabilities | 295,283 | 280,800 |
Surplus value (+) /Deficit value (-), financial assets | 7,314 | 4,509 |
Surplus value (+) /Deficit value (-) financial liabilities | 2,210 | 1,019 |
Borrowing from credit institutions | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial liabilities | 3,678 | 2,247 |
Fair value of financial liabilities | 3,678 | 2,247 |
Debt securities issued | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial liabilities | 269,339 | 255,600 |
Fair value of financial liabilities | 271,549 | 256,619 |
Surplus value (+) /Deficit value (-) financial liabilities | 2,210 | 1,019 |
Derivatives | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial liabilities | 20,056 | 21,934 |
Fair value of financial liabilities | 20,056 | 21,934 |
Cash and cash equivalents | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial assets | 1,362 | 2,416 |
Fair value of financial assets | 1,362 | 2,416 |
Treasuries/government bonds | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial assets | 8,344 | 11,117 |
Fair value of financial assets | 8,344 | 11,117 |
Other interest-bearing securities except loans | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial assets | 53,906 | 48,665 |
Fair value of financial assets | 53,906 | 48,665 |
Loans in the form of interest-bearing securities | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial assets | 43,627 | 36,781 |
Fair value of financial assets | 45,054 | 37,666 |
Surplus value (+) /Deficit value (-), financial assets | 1,427 | 885 |
Loans to credit institutions | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial assets | 27,010 | 27,725 |
Fair value of financial assets | 27,133 | 27,709 |
Surplus value (+) /Deficit value (-), financial assets | 123 | (16) |
Loans to the public | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial assets | 163,848 | 161,094 |
Fair value of financial assets | 169,612 | 164,734 |
Surplus value (+) /Deficit value (-), financial assets | 5,764 | 3,640 |
Derivatives | ||
Disclosure of detailed information about financial instruments | ||
Book value of financial assets | 6,968 | 6,529 |
Fair value of financial assets | kr 6,968 | kr 6,529 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments | |||
Fair value of financial assets | kr 312,379 | kr 298,836 | |
Book value of financial assets | 305,065 | 294,327 | |
Fair value of financial liabilities | 295,283 | 280,800 | |
Book value of financial liabilities | 293,073 | 279,781 | |
Borrowing from credit institutions | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial liabilities | 3,678 | 2,247 | |
Book value of financial liabilities | 3,678 | 2,247 | |
Debt securities issued | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial liabilities | 271,549 | 256,619 | |
Book value of financial liabilities | 269,339 | 255,600 | |
Debt securities issued | Level 3 | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial liabilities | 43,752 | 47,898 | kr 42,995 |
Financial liabilities at amortized cost | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial liabilities | 217,323 | 194,179 | |
Book value of financial liabilities | 216,312 | 193,160 | |
Financial liabilities at amortized cost | Level 2 | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial liabilities | 217,323 | 194,179 | |
Financial liabilities at amortized cost | Borrowing from credit institutions | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial liabilities | 3,669 | 2,247 | |
Book value of financial liabilities | 3,678 | 2,247 | |
Financial liabilities at amortized cost | Borrowing from credit institutions | Level 2 | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial liabilities | 3,669 | 2,247 | |
Financial liabilities at amortized cost | Debt securities issued | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial liabilities | 213,654 | 191,932 | |
Book value of financial liabilities | 212,634 | 190,913 | |
Financial liabilities at amortized cost | Debt securities issued | Level 2 | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial liabilities | 213,654 | 191,932 | |
Financial assets at amortized cost | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial assets | 243,133 | 232,513 | |
Book value of financial assets | 235,847 | 228,016 | |
Financial assets at amortized cost | Level 1 | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial assets | 1,683 | 2,703 | |
Financial assets at amortized cost | Level 2 | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial assets | 241,450 | 229,810 | |
Cash and cash equivalents | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial assets | 1,362 | 2,416 | |
Book value of financial assets | 1,362 | 2,416 | |
Cash and cash equivalents | Financial assets at amortized cost | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial assets | 1,362 | 2,416 | |
Book value of financial assets | 1,362 | 2,416 | |
Cash and cash equivalents | Financial assets at amortized cost | Level 1 | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial assets | 1,362 | 2,416 | |
Loans in the form of interest-bearing securities | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial assets | 45,054 | 37,666 | |
Book value of financial assets | 43,627 | 36,781 | |
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 | 45,054 | 37,666 | |
Book value of financial assets | 43,627 | 36,781 | |
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 | 321 | 287 | |
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 | 44,733 | 37,379 | |
Loans to credit institutions | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial assets | 27,133 | 27,709 | |
Book value of financial assets | 27,010 | 27,725 | |
Loans to credit institutions | Financial assets at amortized cost | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial assets | 27,133 | 27,709 | |
Book value of financial assets | 27,010 | 27,725 | |
Loans to credit institutions | Financial assets at amortized cost | Level 2 | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial assets | 27,133 | 27,709 | |
Loans to the public | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial assets | 169,612 | 164,734 | |
Book value of financial assets | 163,848 | 161,094 | |
Loans to the public | Financial assets at amortized cost | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial assets | 169,584 | 164,722 | |
Book value of financial assets | 163,848 | 161,094 | |
Loans to the public | Financial assets at amortized cost | Level 2 | |||
Disclosure of detailed information about financial instruments | |||
Fair value of financial assets | kr 169,584 | kr 164,722 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Disclosure of detailed information about financial instruments | |||
Financial assets at fair value | kr 312,379 | kr 298,836 | |
Financial liabilities at fair value | 295,283 | 280,800 | |
Debt securities issued | |||
Disclosure of detailed information about financial instruments | |||
Financial liabilities at fair value | 271,549 | 256,619 | |
Debt securities issued | Level 3 | |||
Disclosure of detailed information about financial instruments | |||
Financial liabilities at fair value | 43,752 | 47,898 | kr 42,995 |
Derivatives | |||
Disclosure of detailed information about financial instruments | |||
Financial liabilities at fair value | 20,056 | 21,934 | |
Financial liabilities at fair value through profit or loss | |||
Disclosure of detailed information about financial instruments | |||
Financial liabilities at fair value | 76,761 | 86,621 | |
Financial liabilities at fair value through profit or loss | Level 2 | |||
Disclosure of detailed information about financial instruments | |||
Financial liabilities at fair value | 30,546 | 32,203 | |
Financial liabilities at fair value through profit or loss | Level 3 | |||
Disclosure of detailed information about financial instruments | |||
Financial liabilities at fair value | 46,215 | 54,418 | |
Financial liabilities at fair value through profit or loss | Debt securities issued | |||
Disclosure of detailed information about financial instruments | |||
Financial liabilities at fair value | 56,705 | 64,687 | |
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 | 12,953 | 16,789 | |
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 | 43,752 | 47,898 | |
Financial liabilities at fair value through profit or loss | Derivatives | |||
Disclosure of detailed information about financial instruments | |||
Financial liabilities at fair value | 20,056 | 21,934 | |
Financial liabilities at fair value through profit or loss | Derivatives | Level 2 | |||
Disclosure of detailed information about financial instruments | |||
Financial liabilities at fair value | 17,593 | 15,414 | |
Financial liabilities at fair value through profit or loss | Derivatives | Level 3 | |||
Disclosure of detailed information about financial instruments | |||
Financial liabilities at fair value | 2,463 | 6,520 | |
Financial assets at fair value through profit or loss. | |||
Disclosure of detailed information about financial instruments | |||
Financial assets at fair value | 69,218 | 66,311 | |
Financial assets at fair value through profit or loss. | Level 1 | |||
Disclosure of detailed information about financial instruments | |||
Financial assets at fair value | 34,450 | ||
Financial assets at fair value through profit or loss. | Level 2 | |||
Disclosure of detailed information about financial instruments | |||
Financial assets at fair value | 32,283 | 64,378 | |
Financial assets at fair value through profit or loss. | Level 3 | |||
Disclosure of detailed information about financial instruments | |||
Financial assets at fair value | 2,485 | 1,933 | |
Treasuries/government bonds | |||
Disclosure of detailed information about financial instruments | |||
Financial assets at fair value | 8,344 | 11,117 | |
Treasuries/government bonds | Financial assets at fair value through profit or loss. | |||
Disclosure of detailed information about financial instruments | |||
Financial assets at fair value | 8,344 | 11,117 | |
Treasuries/government bonds | Financial assets at fair value through profit or loss. | Level 1 | |||
Disclosure of detailed information about financial instruments | |||
Financial assets at fair value | 7,041 | ||
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 | 1,303 | 11,117 | |
Other interest-bearing securities except loans | |||
Disclosure of detailed information about financial instruments | |||
Financial assets at fair value | 53,906 | 48,665 | |
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 | 53,906 | 48,665 | |
Other interest-bearing securities except loans | Financial assets at fair value through profit or loss. | Level 1 | |||
Disclosure of detailed information about financial instruments | |||
Financial assets at fair value | 27,409 | ||
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 | 26,497 | 48,665 | |
Derivatives | |||
Disclosure of detailed information about financial instruments | |||
Financial assets at fair value | 6,968 | 6,529 | |
Derivatives | Financial assets at fair value through profit or loss. | |||
Disclosure of detailed information about financial instruments | |||
Financial assets at fair value | 6,968 | 6,529 | |
Derivatives | Financial assets at fair value through profit or loss. | Level 2 | |||
Disclosure of detailed information about financial instruments | |||
Financial assets at fair value | 4,483 | 4,596 | |
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 2,485 | kr 1,933 |
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, 2019 | Dec. 31, 2018 | |
Disclosure of detailed information about financial instruments | ||
Transfer from Level 2 to 1 of financial liabilities | kr 21,461 | |
Transfers between level 2 and level 3 | kr (2,124) | |
Debt securities issued | ||
Disclosure of detailed information about financial instruments | ||
Transfers between level 2 and level 3 | 1,040 | |
Derivatives | ||
Disclosure of detailed information about financial instruments | ||
Transfers between level 2 and level 3 | kr (30) |
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, 2019 | Dec. 31, 2018 | |
Reconciliation of changes in fair value measurement, liabilities | ||
Financial liabilities at beginning of period | kr (280,800) | |
Financial liabilities at end of period | (295,283) | kr (280,800) |
Financial assets and liabilities at fair value in level 3 | ||
Unrealized fair value changes | (69) | 157 |
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 | (52,485) | (43,841) |
Purchases | (10,707) | (13,196) |
Settlements & sales | 21,015 | 9,447 |
Transfers to level 3 | 1 | (2,543) |
Transfers from level 3 | 1,009 | 419 |
Gains (+) and losses (-) through profit or loss | (227) | 178 |
Gains (+) and losses (-) in other comprehensive income | (43) | 250 |
Currency exchange-rate effects assets and liabilities | (2,293) | (3,199) |
Financial assets and liabilities at fair value in level 3, at the end of period | (43,730) | (52,485) |
Debt securities issued | ||
Reconciliation of changes in fair value measurement, liabilities | ||
Financial liabilities at beginning of period | (256,619) | |
Financial liabilities at end of period | (271,549) | (256,619) |
Debt securities issued | Level 3 | ||
Reconciliation of changes in fair value measurement, liabilities | ||
Financial liabilities at beginning of period | (47,898) | (42,995) |
Purchases | (10,702) | (13,199) |
Settlements & sales | 21,314 | 9,490 |
Transfers to level 3 | (2,486) | |
Transfers from level 3 | 1,040 | 425 |
Gains (+) and losses (-) through profit or loss | (3,408) | 4,091 |
Gains (+) and losses (-) in other comprehensive income | (43) | 250 |
Currency exchange-rate effects liabilities | (4,055) | (3,474) |
Financial liabilities at end of period | (43,752) | (47,898) |
Derivatives | ||
Reconciliation of changes in fair value measurement, liabilities | ||
Financial liabilities at beginning of period | (21,934) | |
Financial liabilities at end of period | (20,056) | (21,934) |
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 | (4,587) | (846) |
Purchases | (5) | 3 |
Settlements & sales | (299) | (43) |
Transfers to level 3 | 1 | (57) |
Transfers from level 3 | (31) | (6) |
Gains (+) and losses (-) through profit or loss | 3,181 | (3,913) |
Currency exchange-rate effects assets and liabilities | 1,762 | 275 |
Financial assets and liabilities at fair value in level 3, at the end of period | kr 22 | kr (4,587) |
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, 2019SEK (kr) | Dec. 31, 2018SEK (kr) | Dec. 31, 2017SEK (kr) | |
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Financial liabilities at fair value | kr (295,283) | kr (280,800) | |
Sensitivity, correlations maximum positive relationship | 1 | ||
Sensitivity, correlations maximum negative relationship | (1) | ||
Correlation input | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity, input appreciation, assets | 10.00% | ||
Sensitivity, input depreciation, assets | 10.00% | ||
Sensitivity, input appreciation, liabilities | 10.00% | ||
Sensitivity, input depreciation, liabilities | 10.00% | ||
Credit spread input | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity, input appreciation, assets | 0.10% | ||
Sensitivity, input depreciation, assets | 0.10% | ||
Sensitivity, input appreciation, liabilities | 0.10% | ||
Sensitivity, input depreciation, liabilities | 0.10% | ||
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 (43,730) | (52,485) | kr (43,841) |
Level 3 | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity impact on total comprehensive income | 175 | 242 | |
Level 3 | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity impact on total comprehensive income | (172) | (243) | |
Level 3 | Own credit spread | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity impact on total comprehensive income | 174 | 242 | |
Level 3 | Own credit spread | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity impact on total comprehensive income | (173) | (240) | |
Level 3 | Derivatives | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Net assets (liabilities) | 22 | (4,587) | |
Level 3 | Derivatives | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity impact on total comprehensive income | (44) | (66) | |
Level 3 | Derivatives | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity impact on total comprehensive income | 46 | 64 | |
Level 3 | Derivatives | Equity risk | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Net assets (liabilities) | kr (345) | kr (2,417) | |
Level 3 | Derivatives | Equity risk | Option Model | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | 0.73 | 0.70 | |
Sensitivity impact on total comprehensive income | kr 1 | kr 6 | |
Level 3 | Derivatives | Equity risk | Option Model | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | 0.02 | 0.07 | |
Sensitivity impact on total comprehensive income | kr (1) | kr (6) | |
Level 3 | Derivatives | Interest rate | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Net assets (liabilities) | kr 1,249 | kr 972 | |
Level 3 | Derivatives | Interest rate | Option Model | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | 0.16 | 0.21 | |
Sensitivity impact on total comprehensive income | kr (64) | kr (95) | |
Level 3 | Derivatives | Interest rate | Option Model | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | (0.08) | (0.12) | |
Sensitivity impact on total comprehensive income | kr 63 | kr 90 | |
Level 3 | Derivatives | Currency risk | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Net assets (liabilities) | kr (711) | kr (2,971) | |
Level 3 | Derivatives | Currency risk | Option Model | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | 0.80 | 0.84 | |
Sensitivity impact on total comprehensive income | kr 19 | kr 22 | |
Level 3 | Derivatives | Currency risk | Option Model | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | 0.10 | (0.94) | |
Sensitivity impact on total comprehensive income | kr (16) | kr (19) | |
Level 3 | Derivatives | Other | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Net assets (liabilities) | kr (171) | kr (171) | |
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 | 0.53 | |
Sensitivity impact on total comprehensive income | kr 0 | kr 1 | |
Level 3 | Derivatives | Other | Option Model | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Correlation assets or liabilities | (0.03) | (0.01) | |
Sensitivity impact on total comprehensive income | kr 0 | kr (1) | |
Level 3 | Debt securities issued | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Financial liabilities at fair value | (43,752) | (47,898) | |
Level 3 | Debt securities issued | Maximum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity impact on total comprehensive income | 219 | 308 | |
Level 3 | Debt securities issued | Minimum | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Sensitivity impact on total comprehensive income | (218) | (307) | |
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 (524) | 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 14 | kr 28 | |
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 (14) | kr (28) | |
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 | 0.73 | 0.70 | |
Sensitivity impact on total comprehensive income | kr (1) | kr (7) | |
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 | 0.02 | 0.07 | |
Sensitivity impact on total comprehensive income | kr 1 | kr 6 | |
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 (43,083) | kr (47,090) | |
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 70 | kr 116 | |
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 (68) | kr (113) | |
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 | 0.16 | 0.21 | |
Sensitivity impact on total comprehensive income | kr 65 | kr 97 | |
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 | (0.08) | (0.12) | |
Sensitivity impact on total comprehensive income | kr (64) | kr (94) | |
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 (39) | kr (32) | |
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 88 | kr 95 | |
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 (87) | kr (96) | |
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 | 0.80 | 0.84 | |
Sensitivity impact on total comprehensive income | kr (20) | kr (23) | |
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 | 0.10 | (0.94) | |
Sensitivity impact on total comprehensive income | kr 17 | kr 20 | |
Level 3 | Debt securities issued | Other | |||
Disclosure of significant unobservable inputs used in fair value measurement of assets | |||
Financial liabilities at fair value | kr (106) | kr (96) | |
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 | 0.53 | |
Sensitivity impact on total comprehensive income | kr 0 | kr (1) | |
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 | (0.03) | (0.01) | |
Sensitivity impact on total comprehensive income | kr 0 | kr 1 |
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, 2019 | Dec. 31, 2018 | |
Net CVA/DVA | ||
Fair value related to credit risk | ||
Fair value originating from credit risk (- liabilities increase/ + liabilities decrease) | kr (12) | kr (29) |
The period's change in fair value originating from credit risk (+ income/ - loss) | 17 | (21) |
OCA | ||
Fair value related to credit risk | ||
Fair value originating from credit risk (- liabilities increase/ + liabilities decrease) | (126) | (150) |
The period's change in fair value originating from credit risk (+ income/ - loss) | kr 24 | kr 374 |
Derivatives and hedge account_3
Derivatives and hedge accounting - Categories (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Sub-classifications of financial information | ||
Assets Fair value | kr 6,968 | kr 6,529 |
Liabilities Fair value | 20,056 | 21,934 |
Nominal amount of instruments directly affected by the IBOR reform | 87,915 | |
Economic hedges | ||
Sub-classifications of financial information | ||
Assets Fair value | 4,348 | 4,552 |
Liabilities Fair value | 16,919 | 15,584 |
Fair-value hedges | ||
Sub-classifications of financial information | ||
Assets Fair value | 2,620 | 1,977 |
Liabilities Fair value | 3,137 | 6,350 |
Derivatives | ||
Sub-classifications of financial information | ||
Nominal amounts | 505,294 | 461,800 |
Derivatives | Economic hedges | ||
Sub-classifications of financial information | ||
Nominal amounts | 312,920 | 280,202 |
Derivatives | Fair-value hedges | ||
Sub-classifications of financial information | ||
Nominal amounts | 192,374 | 181,598 |
Interest rate-related contracts | ||
Sub-classifications of financial information | ||
Assets Fair value | 3,998 | 3,842 |
Liabilities Fair value | 12,367 | 10,207 |
Interest rate-related contracts | Economic hedges | ||
Sub-classifications of financial information | ||
Assets Fair value | 2,568 | 2,767 |
Liabilities Fair value | 11,455 | 7,479 |
Interest rate-related contracts | Fair-value hedges | ||
Sub-classifications of financial information | ||
Assets Fair value | 1,430 | 1,075 |
Liabilities Fair value | 912 | 2,728 |
Interest rate-related contracts | Derivatives | ||
Sub-classifications of financial information | ||
Nominal amounts | 304,242 | 280,808 |
Interest rate-related contracts | Derivatives | Economic hedges | ||
Sub-classifications of financial information | ||
Nominal amounts | 140,829 | 129,470 |
Interest rate-related contracts | Derivatives | Fair-value hedges | ||
Sub-classifications of financial information | ||
Nominal amounts | 163,413 | 151,338 |
Currency-related contracts | ||
Sub-classifications of financial information | ||
Assets Fair value | 2,734 | 2,630 |
Liabilities Fair value | 6,933 | 8,799 |
Currency-related contracts | Economic hedges | ||
Sub-classifications of financial information | ||
Assets Fair value | 1,544 | 1,728 |
Liabilities Fair value | 4,708 | 5,177 |
Currency-related contracts | Fair-value hedges | ||
Sub-classifications of financial information | ||
Assets Fair value | 1,190 | 902 |
Liabilities Fair value | 2,225 | 3,622 |
Currency-related contracts | Derivatives | ||
Sub-classifications of financial information | ||
Nominal amounts | 182,668 | 162,870 |
Currency-related contracts | Derivatives | Economic hedges | ||
Sub-classifications of financial information | ||
Nominal amounts | 153,707 | 132,610 |
Currency-related contracts | Derivatives | Fair-value hedges | ||
Sub-classifications of financial information | ||
Nominal amounts | 28,961 | 30,260 |
Equity-related contracts | ||
Sub-classifications of financial information | ||
Assets Fair value | 236 | 57 |
Liabilities Fair value | 584 | 2,755 |
Equity-related contracts | Economic hedges | ||
Sub-classifications of financial information | ||
Assets Fair value | 236 | 57 |
Liabilities Fair value | 584 | 2,755 |
Equity-related contracts | Derivatives | ||
Sub-classifications of financial information | ||
Nominal amounts | 16,387 | 16,014 |
Equity-related contracts | Derivatives | Economic hedges | ||
Sub-classifications of financial information | ||
Nominal amounts | 16,387 | 16,014 |
Contracts related to commodities, credit risk, etc. | ||
Sub-classifications of financial information | ||
Liabilities Fair value | 172 | 173 |
Contracts related to commodities, credit risk, etc. | Economic hedges | ||
Sub-classifications of financial information | ||
Assets Fair value | 0 | |
Liabilities Fair value | 172 | 173 |
Contracts related to commodities, credit risk, etc. | Derivatives | ||
Sub-classifications of financial information | ||
Nominal amounts | 1,997 | 2,108 |
Contracts related to commodities, credit risk, etc. | Derivatives | Economic hedges | ||
Sub-classifications of financial information | ||
Nominal amounts | kr 1,997 | kr 2,108 |
Derivatives and hedge account_4
Derivatives and hedge accounting - Maturity analysis (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair-value hedges | Not later than one month | ||
Derivatives used as fair-value hedge | ||
Cash inflows (assets) | kr 109 | kr 261 |
Cash outflows (liabilities) | (978) | (99) |
Net cash inflows | (869) | 162 |
Fair-value hedges | Later than one month and not later than three months | ||
Derivatives used as fair-value hedge | ||
Cash inflows (assets) | 567 | 518 |
Cash outflows (liabilities) | (1,517) | (1,064) |
Net cash inflows | (950) | (546) |
Fair-value hedges | Later than three months and not later than one year | ||
Derivatives used as fair-value hedge | ||
Cash inflows (assets) | 1,214 | 1,138 |
Cash outflows (liabilities) | (1,492) | (1,095) |
Net cash inflows | (278) | 43 |
Fair-value hedges | Between 1 and 5 years | ||
Derivatives used as fair-value hedge | ||
Cash inflows (assets) | 2,344 | 2,311 |
Cash outflows (liabilities) | (3,106) | (4,721) |
Net cash inflows | (762) | (2,410) |
Fair-value hedges | More than 5 years | ||
Derivatives used as fair-value hedge | ||
Cash inflows (assets) | 2,122 | 1,858 |
Cash outflows (liabilities) | 40 | (343) |
Net cash inflows | kr 2,162 | kr 1,515 |
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 | 116 | 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 | 225 | 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 | 2,254 | 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 | 4,960 | 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 | 9,296 | 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 | 38,724 | 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 | 103,823 | 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 | 3,776 | 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 | 6 | 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 | 26 | 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 | 644 | 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 | 2,030 | 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 | 430 | 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 | 421 | 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 | 7,920 | 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 | 12,876 | 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 | 4,882 | 5,990 |
Derivatives and hedge account_5
Derivatives and hedge accounting - Carrying amount of hedged items in fair value hedges (Details) - Fair-value hedges - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Carrying amounts of hedge items | ||
Book value assets | kr 21,401 | kr 17,354 |
Fair value hedge adjustments, assets | 1,482 | 1,150 |
Book value liabilities | 174,477 | 163,172 |
Fair value hedge adjustments, liabilities | 4,102 | 1,000 |
Loans in the form of interest-bearing securities | ||
Carrying amounts of hedge items | ||
Book value assets | 6,716 | 4,244 |
Fair value hedge adjustments, assets | 547 | 499 |
Loans to credit institutions | ||
Carrying amounts of hedge items | ||
Book value assets | 332 | 206 |
Fair value hedge adjustments, assets | 5 | 3 |
Loans to the public | ||
Carrying amounts of hedge items | ||
Book value assets | 14,353 | 12,904 |
Fair value hedge adjustments, assets | 930 | 648 |
Debt securities issued | ||
Carrying amounts of hedge items | ||
Book value liabilities | 174,477 | 163,172 |
Fair value hedge adjustments, liabilities | kr 4,102 | 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, 2019 | Dec. 31, 2018 | |
Cash-flow hedges reclassified to profit or loss during the year | ||
Interest income | kr 8 | kr 25 |
Total | kr 8 | kr 25 |
Derivatives and hedge account_7
Derivatives and hedge accounting - Offsetting (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets subject to offsetting, enforceable master netting arrangements and similar agreements | ||
Gross amounts of recognized financial assets | kr 7,948 | kr 7,200 |
Amounts offset in the Statement of Financial Position | (980) | (671) |
Net amounts of financial assets presented in the Statement of Financial Position | 6,968 | 6,529 |
Amounts subject to an enforceable master netting arrangement or similar agreement not offset in the Statement of Financial Position related to: | ||
Financial instruments | (3,799) | (4,324) |
Cash collateral received | (2,352) | (1,805) |
Net amount | 817 | 400 |
Financial liabilities subject to offsetting, enforceable master netting arrangements and similar agreements | ||
Gross amounts of recognized financial liabilities | 21,036 | 22,648 |
Amounts offset in the Statement of Financial Position | (980) | (714) |
Net amounts of financial liabilities presented in the Statement of Financial Position | 20,056 | 21,934 |
Amounts subject to an enforceable master netting arrangement or similar agreement not offset in the Statement of Financial Position related to: | ||
Financial instruments | (3,799) | (4,324) |
Cash collateral paid | (15,871) | (15,537) |
Net amount | kr 386 | kr 2,073 |
Shares (Details)
Shares (Details) - SEK (kr) kr in Thousands | 1 Months Ended | |||
Apr. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Shares | ||||
Share capital | kr 3,990,000 | kr 3,990,000 | ||
Venantius AB | ||||
Shares | ||||
Losses on wind down of subsidiary | kr 2,000 | |||
SEKETT AB | ||||
Shares | ||||
Share capital | kr 50 | |||
Book value | kr 0 | kr 0 | ||
Number of shares | 50 | 50 |
Other assets (Details)
Other assets (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other assets. | ||
Claim against the State for CIRR loans and concessionary loans | kr 9,124 | kr 3,915 |
Cash receivables, funding operations | 181 | 960 |
Other | 29 | 105 |
Total | kr 9,334 | kr 4,980 |
Prepaid expenses and accrued _3
Prepaid expenses and accrued revenues (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Prepaid expenses and accrued revenues | ||
Interest income accrued | kr 2,747 | kr 2,643 |
Prepaid expenses and other accrued revenues | 0 | 14 |
Total | kr 2,747 | kr 2,657 |
Debt (Details)
Debt (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Debt | ||
Total debt excluding debt securities issued | kr 3,678 | kr 2,247 |
Total debt - securities issued | 269,339 | 255,600 |
Total | 273,017 | 257,847 |
SKR | ||
Debt | ||
Total | 2,737 | 2,098 |
USD | ||
Debt | ||
Total | 186,021 | 166,827 |
JPY | ||
Debt | ||
Total | 32,509 | 34,929 |
EUR | ||
Debt | ||
Total | 19,813 | 21,188 |
Other currency | ||
Debt | ||
Total | 31,937 | 32,805 |
Exchange-rate related contracts | ||
Debt | ||
Total debt - securities issued | 28,215 | 2,097 |
Total | 28,215 | 2,097 |
Interest rate related contracts | ||
Debt | ||
Total debt excluding debt securities issued | 3,678 | 2,247 |
Total debt - securities issued | 240,389 | 252,624 |
Total | 244,067 | 254,871 |
Equity related contracts | ||
Debt | ||
Total debt - securities issued | 629 | 783 |
Total | 629 | 783 |
Contracts related to raw materials, credit risk etc | ||
Debt | ||
Total debt - securities issued | 106 | 96 |
Total | kr 106 | kr 96 |
Debt - Major borrowing programs
Debt - Major borrowing programs (Details) kr in Millions | Dec. 31, 2019USD ($) | Dec. 31, 2019SEK (kr) | Dec. 31, 2018SEK (kr) |
Unlimited Euro Medium-Term Note Programme | |||
Debt | |||
Value outstanding | kr 96,930 | kr 99,710 | |
Unlimited SEC-registered U.S. Medium-Term Note Programme | |||
Debt | |||
Value outstanding | 151,750 | 143,109 | |
Unlimited Swedish Medium-Term Note Programme | |||
Debt | |||
Value outstanding | 424 | 261 | |
Unlimited MTN/STN AUD Debt Issuance Programme | |||
Debt | |||
Value outstanding | 4,598 | 3,875 | |
USD 3,000,000,000 U.S.Commercial Paper Programme | |||
Debt | |||
Value outstanding | kr 10,644 | 4,723 | |
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) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Liabilities in financing activities | ||
Liabilities in financing activities at beginning of year | kr 273,252 | kr 235,550 |
Changes in liabilities arising from financing activities | ||
Cash flow | (410) | 24,610 |
Exchange-rate difference | 7,951 | 13,044 |
Unrealized changes in fair value | 5,261 | 48 |
Liabilities in financing activities at end of year | 286,149 | 273,252 |
After application of IFRS 16 | ||
Liabilities in financing activities | ||
Liabilities in financing activities at beginning of year | 273,347 | |
Changes in liabilities arising from financing activities | ||
Liabilities in financing activities at end of year | 273,347 | |
Senior debt | ||
Liabilities in financing activities | ||
Liabilities in financing activities at beginning of year | 257,847 | 224,833 |
Changes in liabilities arising from financing activities | ||
Cash flow | (4,420) | 25,102 |
Exchange-rate difference | 10,580 | 15,997 |
Unrealized changes in fair value | 9,010 | (8,085) |
Liabilities in financing activities at end of year | 273,017 | 257,847 |
Senior debt | After application of IFRS 16 | ||
Liabilities in financing activities | ||
Liabilities in financing activities at beginning of year | 257,847 | |
Changes in liabilities arising from financing activities | ||
Liabilities in financing activities at end of year | 257,847 | |
Lease liability | ||
Changes in liabilities arising from financing activities | ||
Cash flow | (39) | |
Unrealized changes in fair value | (12) | |
Liabilities in financing activities at end of year | 44 | |
Lease liability | After application of IFRS 16 | ||
Liabilities in financing activities | ||
Liabilities in financing activities at beginning of year | 95 | |
Changes in liabilities arising from financing activities | ||
Liabilities in financing activities at end of year | 95 | |
Subordinated liabilities | ||
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 | 15,405 | 8,677 |
Changes in liabilities arising from financing activities | ||
Cash flow | 4,049 | 1,830 |
Exchange-rate difference | (2,629) | (3,173) |
Unrealized changes in fair value | (3,737) | 8,071 |
Liabilities in financing activities at end of year | 13,088 | 15,405 |
Derivatives | After application of IFRS 16 | ||
Liabilities in financing activities | ||
Liabilities in financing activities at beginning of year | kr 15,405 | |
Changes in liabilities arising from financing activities | ||
Liabilities in financing activities at end of year | kr 15,405 |
Other liabilities (Details)
Other liabilities (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other liabilities | ||
Cash payables, debt purchases | kr 2,011 | kr 682 |
Other | 455 | 387 |
Total | kr 2,466 | kr 1,069 |
Accrued expenses and prepaid _3
Accrued expenses and prepaid revenues (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued expenses and prepaid revenues | ||
Interest expenses accrued | kr 2,541 | kr 2,542 |
Other accrued expenses and prepaid revenues | 41 | 41 |
Total | kr 2,582 | kr 2,583 |
Provisions (Details)
Provisions (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Provisions | ||||
Pension liabilities | kr 83 | kr 80 | kr 40 | kr 38 |
Long term employee benefit | 6 | 3 | ||
Off balance, expected credit losses | 4 | 2 | ||
Total | kr 93 | kr 85 |
Equity - Components of Equity (
Equity - Components of Equity (Details) - SEK (kr) kr / shares in Units, kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1],[2] | Dec. 31, 2016 | ||
Equity | |||||||
Share capital | kr 3,990 | kr 3,990 | |||||
Reserves | |||||||
Hedge reserve | 6 | ||||||
Own credit risk | (98) | (117) | |||||
Defined benefit plans | (45) | (42) | |||||
Retained earnings | 15,235 | 14,402 | |||||
Total equity | kr 19,082 | [1],[2] | kr 18,239 | [1],[2] | kr 17,574 | kr 17,136 | |
Total number of shares | 3,990,000 | ||||||
Quota value | kr 1,000 | ||||||
[1] | See note 22. | ||||||
[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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | [1],[2] | Dec. 31, 2016 | ||
Equity | kr 19,082 | [1],[2] | kr 18,239 | [1],[2] | kr 17,574 | kr 17,136 | |
Restricted equity | |||||||
Equity | 4,235 | 5,240 | |||||
Unrestricted equity | |||||||
Equity | kr 14,847 | kr 12,999 | |||||
[1] | See note 22. | ||||||
[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, 2019 | Dec. 31, 2018 | |
Equity | ||
Profit at the disposal of the annual general meeting | kr 14,903 | |
Proposed dividends | 308 | kr 194 |
Remaining disposable funds to be carried forward | kr 14,595 | |
Proposed dividends per share | kr 77.23 |
Pledged assets and contingent_3
Pledged assets and contingent liabilities (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Collateral provided | ||
Cash collateral under the security agreements for derivative contracts | kr 16,891 | kr 16,374 |
Contingent liabilities | ||
Guarantee commitments | 4,393 | 4,032 |
Commitments | ||
Committed undisbursed loans | 52,150 | 50,814 |
Binding offers | kr 2,800 | kr 744 |
CIRR-system - Subclassification
CIRR-system - Subclassifications of financial information (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||||
Sub-classifications of financial information | |||||||
Concessionary loans outstanding | kr 547 | kr 663 | |||||
Result of previous concessionary credit program | (36) | (42) | |||||
Administrative remuneration for concessionary loans | (2) | (2) | |||||
Comprehensive income | |||||||
Interest income | 6,083 | 5,153 | kr 3,896 | ||||
Interest expenses | (4,366) | (3,711) | (2,213) | ||||
Net interest income | 1,717 | 1,442 | 1,683 | ||||
Foreign exchange effects | 2 | (3) | 0 | ||||
Financial position for CIRR-system | |||||||
Cash and cash equivalents | 1,362 | [1] | 2,416 | [1] | kr 1,231 | [1] | kr 7,054 |
Derivatives | 6,968 | 6,529 | |||||
Other assets | 9,334 | 4,980 | |||||
Prepaid expenses and accrued revenues | 2,747 | 2,657 | |||||
Total assets | 317,296 | 302,033 | |||||
Derivatives | 20,056 | 21,934 | |||||
Accrued expenses and prepaid revenues | 2,582 | 2,583 | |||||
Total liabilities and equity | 317,296 | 302,033 | |||||
Committed undisbursed loans | 52,150 | 50,814 | |||||
Binding offers | 2,800 | 744 | |||||
CIRR-System | |||||||
Comprehensive income | |||||||
Interest income | 2,074 | 1,624 | |||||
Interest expenses | (1,912) | (1,480) | |||||
Net interest income | 162 | 144 | |||||
Interest compensation | 1 | 20 | |||||
Foreign exchange effects | 5 | 9 | |||||
Profit before compensation to SEK | 168 | 173 | |||||
Administrative remuneration to SEK | (192) | (155) | |||||
Operating profit CIRR-system | (24) | 18 | |||||
Reimbursement to (-) / from (+) the State | 24 | (18) | |||||
Financial position for CIRR-system | |||||||
Cash and cash equivalents | 0 | ||||||
Loans | 76,120 | 69,922 | |||||
Derivatives | 26 | 502 | |||||
Other assets | 9,307 | 4,090 | |||||
Prepaid expenses and accrued revenues | 569 | 561 | |||||
Total assets | 86,022 | 75,075 | |||||
Liabilities | 76,257 | 70,144 | |||||
Derivatives | 9,117 | 4,408 | |||||
Accrued expenses and prepaid revenues | 648 | 523 | |||||
Total liabilities and equity | 86,022 | 75,075 | |||||
Committed undisbursed loans | 47,868 | 47,664 | |||||
Binding offers | kr 37 | kr 616 | |||||
[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) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Capital adequacy | ||
Common Equity Tier 1 capital ratio | 20.60% | 20.10% |
Tier 1 capital ratio | 20.60% | 20.10% |
Total capital ratio | 20.60% | 20.10% |
Institution specific Common Equity Tier 1 capital requirement incl. of buffers, of which minimum Common Equity Tier 1 requirement | 4.50% | |
Institution specific Common Equity Tier 1 capital requirement incl. of buffers, of which capital conservation buffer | 2.50% | |
Minimum requirement of Common Equity Tier 1 capital | 4.50% | |
Minimum requirement of Tier 1 capital | 6.00% | |
Minimum requirement of total Own Funds | 8.00% | |
Parent Company | ||
Capital adequacy | ||
Common Equity Tier 1 capital ratio | 20.60% | 20.10% |
Tier 1 capital ratio | 20.60% | 20.10% |
Total capital ratio | 20.60% | 20.10% |
Institution specific Common Equity Tier 1 capital requirement incl. of buffers | kr 7,890 | kr 7,380 |
Institution specific Common Equity Tier 1 capital requirement incl. of buffers, of which minimum Common Equity Tier 1 requirement | 3,990 | 3,917 |
Institution specific Common Equity Tier 1 capital requirement incl. of buffers, of which capital conservation buffer | 2,216 | 2,176 |
Institution specific Common Equity Tier 1 capital requirement incl. of buffers, of which countercyclical buffer | 1,684 | 1,287 |
Common Equity Tier 1 capital available as a buffer | kr 11,171 | kr 10,534 |
Institution specific Common Equity Tier 1 capital requirement incl. of buffers | 8.90% | 8.50% |
Institution specific Common Equity Tier 1 capital requirement incl. of buffers, of which minimum Common Equity Tier 1 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 | 1.90% | 1.50% |
Common Equity Tier 1 capital available as a buffer | 12.60% | 12.10% |
Minimum requirement of Common Equity Tier 1 capital | 4.50% | 4.50% |
Addition to minimum Common Equity Tier 1 capital ratio to calculate capital available as a buffer | 3.50% |
Capital adequacy - Capital requ
Capital adequacy - Capital requirement (Details) - Parent Company - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Total capital requirement including buffers | ||
Total CRR capital requirement | kr 10,993 | kr 10,427 |
Total FSA capital requirement (for December 31, 2019 calculated as of September 30, 2019) | kr 15,606 | kr 14,464 |
Total CRR capital requirement (as a percent) | 12.40% | 12.00% |
Total FSA capital requirement (as a percent, for December 31, 2019 calculated as of September 30, 2019) | 16.40% | 16.60% |
Minimum CRR capital requirement | 8.00% | |
Minimum FSA capital requirement | 8.00% | |
Additional Capital requirement according to Swedish FSA | ||
Credit-related concentration risk (for December 31, 2019 calculated as of September 30, 2019) | kr 2,089 | kr 2,089 |
Interest rate risk in the banking book (for December 31, 2019 calculated as of September 30, 2019) | 844 | 844 |
Pension risk (for December 31, 2019 calculated as of September 30, 2019) | 11 | 11 |
Other pillar 2 capital requirements (for December 31, 2019 calculated as of September 30, 2019) | 936 | 936 |
Capital planning buffer (for December 31, 2019 calculated as of September 30, 2019) | 157 | |
Total Additional Capital requirement according to Swedish FSA (for December 31, 2019 calculated as of September 30, 2019) | kr 3,880 | kr 4,037 |
Credit-related concentration risk (as a percent, for December 31, 2019 calculated as of September 30, 2019) | 2.20% | 2.40% |
Interest rate risk in the banking book (as a percent, for December 31, 2019 calculated as of September 30, 2019) | 0.90% | 1.00% |
Pension risk (as a percent, for December 31, 2019 calculated as of September 30, 2019) | 0.00% | 0.00% |
Other Pillar 2 capital requirements (as a percent, for December 31, 2019 calculated as of September 30, 2019) | 1.00% | 1.10% |
Capital planning buffer (as a percent, for December 31, 2019 calculated as of September 30, 2019) | 0.20% | |
Total Additional Capital requirement according to Swedish FSA (as a percent, for December 31, 2019 calculated as of September 30, 2019) | 4.10% | 4.70% |
Capital adequacy - Own funds (D
Capital adequacy - Own funds (Details) - Parent Company - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of objectives, policies and processes for managing capital | ||
Common Equity Tier 1 (CET1) capital before regulatory adjustments | kr 18,830 | kr 18,100 |
Regulatory adjustments to Common Equity Tier 1 capital | (523) | (569) |
Total Common Equity Tier-1 capital | 18,307 | 17,531 |
Total Tier-1 capital | 18,307 | 17,531 |
Own funds | kr 18,307 | 17,531 |
IRB approach | ||
Disclosure of objectives, policies and processes for managing capital | ||
Threshold percentage to increase own funds | 0.60% | |
Share capital | ||
Disclosure of objectives, policies and processes for managing capital | ||
Common Equity Tier 1 (CET1) capital before regulatory adjustments | kr 3,990 | 3,990 |
Retained earnings | ||
Disclosure of objectives, policies and processes for managing capital | ||
Common Equity Tier 1 (CET1) capital before regulatory adjustments | 12,829 | 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 | 245 | 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 | 1,766 | 1,615 |
Additional value adjustments due to prudent valuation | ||
Disclosure of objectives, policies and processes for managing capital | ||
Regulatory adjustments to Common Equity Tier 1 capital | (445) | (496) |
Intangible assets | ||
Disclosure of objectives, policies and processes for managing capital | ||
Regulatory adjustments to Common Equity Tier 1 capital | (56) | (43) |
Hedge reserve | ||
Disclosure of objectives, policies and processes for managing capital | ||
Regulatory adjustments to Common Equity Tier 1 capital | (6) | |
Own credit risk | ||
Disclosure of objectives, policies and processes for managing capital | ||
Regulatory adjustments to Common Equity Tier 1 capital | 93 | 112 |
Negative amounts resulting from the calculation of expected loss amounts | ||
Disclosure of objectives, policies and processes for managing capital | ||
Regulatory adjustments to Common Equity Tier 1 capital | kr (115) | kr (136) |
Capital adequacy - Minimum capi
Capital adequacy - Minimum capital requirements exclusive of buffers (Details) € in Millions, kr in Millions | 12 Months Ended | |||
Dec. 31, 2019EUR (€) | Dec. 31, 2019SEK (kr) | Dec. 31, 2018SEK (kr) | Dec. 31, 2017SEK (kr) | |
Disclosure of credit risk exposure | ||||
Annual turnover limit for classification as small or medium-sized enterprise | € | € 50 | |||
Tangible and intangible assets | kr 134 | kr 69 | kr 88 | |
Effect of IFRS 16 | ||||
Disclosure of credit risk exposure | ||||
Tangible and intangible assets | 94 | |||
Parent Company | ||||
Disclosure of credit risk exposure | ||||
EAD | 330,696 | 321,303 | ||
Risk exposure amount | 88,657 | 87,054 | ||
Minimum capital requirements | 7,093 | 6,964 | ||
Parent Company | Credit risk | Standardized approach | ||||
Disclosure of credit risk exposure | ||||
EAD | 2,367 | 1,701 | ||
Risk exposure amount | 2,367 | 1,701 | ||
Minimum capital requirements | 189 | 136 | ||
Parent Company | Credit risk | Standardized approach | Corporates | ||||
Disclosure of credit risk exposure | ||||
EAD | 2,367 | 1,701 | ||
Risk exposure amount | 2,367 | 1,701 | ||
Minimum capital requirements | 189 | 136 | ||
Parent Company | Credit risk | IRB approach | ||||
Disclosure of credit risk exposure | ||||
EAD | 328,329 | 319,602 | ||
Risk exposure amount | 79,838 | 79,361 | ||
Minimum capital requirements | 6,387 | 6,349 | ||
Parent Company | Credit risk | IRB approach | Central governments | ||||
Disclosure of credit risk exposure | ||||
EAD | 172,148 | 171,572 | ||
Risk exposure amount | 8,816 | 9,905 | ||
Minimum capital requirements | 705 | 792 | ||
Parent Company | Credit risk | IRB approach | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
EAD | 45,437 | 33,953 | ||
Risk exposure amount | 10,802 | 9,880 | ||
Minimum capital requirements | 864 | 790 | ||
Parent Company | Credit risk | IRB approach | Corporates | ||||
Disclosure of credit risk exposure | ||||
EAD | 110,592 | 113,987 | ||
Risk exposure amount | 60,068 | 59,486 | ||
Minimum capital requirements | 4,806 | 4,760 | ||
Parent Company | Credit risk | IRB approach | Non-credit-obligation assets | ||||
Disclosure of credit risk exposure | ||||
EAD | 152 | 90 | ||
Risk exposure amount | 152 | 90 | ||
Minimum capital requirements | 12 | 7 | ||
Parent Company | Counterparty risk in derivatives | IRB approach | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
EAD | 5,613 | 4,525 | ||
Risk exposure amount | 1,980 | 1,668 | ||
Minimum capital requirements | 158 | 133 | ||
Parent Company | Specialized lending | IRB approach | Corporates | ||||
Disclosure of credit risk exposure | ||||
EAD | 3,646 | 3,400 | ||
Risk exposure amount | 2,352 | 2,157 | ||
Minimum capital requirements | 188 | 173 | ||
Parent Company | Credit valuation adjustment risk | ||||
Disclosure of credit risk exposure | ||||
Risk exposure amount | 2,534 | 2,037 | ||
Minimum capital requirements | 203 | 163 | ||
Parent Company | Currency risk | ||||
Disclosure of credit risk exposure | ||||
Risk exposure amount | 695 | 879 | ||
Minimum capital requirements | 56 | 70 | ||
Parent Company | Commodities risk | ||||
Disclosure of credit risk exposure | ||||
Risk exposure amount | 9 | 10 | ||
Minimum capital requirements | 1 | 1 | ||
Parent Company | Operational risk | ||||
Disclosure of credit risk exposure | ||||
Risk exposure amount | 3,214 | 3,066 | ||
Minimum capital requirements | kr 257 | kr 245 |
Capital adequacy - Credit risk
Capital adequacy - Credit risk by PD grade (Details) - SEK (kr) kr in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Sep. 19, 2019 | Dec. 31, 2018 | Sep. 18, 2018 | |
Disclosure of credit risk exposure | ||||
Capital conservation buffer | 2.50% | |||
Sweden | ||||
Disclosure of credit risk exposure | ||||
Countercyclical buffer | 2.50% | 2.00% | ||
Parent Company | ||||
Disclosure of credit risk exposure | ||||
EAD | kr 330,696 | kr 321,303 | ||
Capital conservation buffer | 2.50% | 2.50% | ||
Countercyclical buffer | 1.90% | 1.50% | ||
Parent Company | AAA to AA- | Central governments | ||||
Disclosure of credit risk exposure | ||||
EAD | kr 166,286 | kr 163,603 | ||
Parent Company | AAA to AA- | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
EAD | 16,403 | 10,323 | ||
Parent Company | AAA to AA- | Corporates | ||||
Disclosure of credit risk exposure | ||||
EAD | 5,995 | 7,154 | ||
Parent Company | A+ to A- | Central governments | ||||
Disclosure of credit risk exposure | ||||
EAD | 5,862 | 7,064 | ||
Parent Company | A+ to A- | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
EAD | 27,651 | 21,926 | ||
Parent Company | A+ to A- | Corporates | ||||
Disclosure of credit risk exposure | ||||
EAD | 19,438 | 22,379 | ||
Parent Company | BBB+ to BBB- | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
EAD | 1,382 | 1,345 | ||
Parent Company | BBB+ to BBB- | Corporates | ||||
Disclosure of credit risk exposure | ||||
EAD | 58,945 | 60,943 | ||
Parent Company | BB+ to B- | Central governments | ||||
Disclosure of credit risk exposure | ||||
EAD | 906 | |||
Parent Company | BB+ to B- | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
EAD | 1 | 359 | ||
Parent Company | BB+ to B- | Corporates | ||||
Disclosure of credit risk exposure | ||||
EAD | 22,548 | 20,072 | ||
Parent Company | CCC to D | Corporates | ||||
Disclosure of credit risk exposure | ||||
EAD | kr 20 | kr 39 | ||
Parent Company | Sweden | ||||
Disclosure of credit risk exposure | ||||
Capital requirement exposure | 70.00% | 70.00% | ||
Parent Company | Foreign countries | ||||
Disclosure of credit risk exposure | ||||
Countercyclical buffer | 0.10% | 0.10% | ||
Parent Company | Standardized approach | Operational risk | ||||
Disclosure of credit risk exposure | ||||
Fiscal years for each business area to calculate income indicators | 3 years | |||
Parent Company | Minimum | AAA to AA- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.003% | 0.003% | ||
Parent Company | Minimum | AAA to AA- | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.01% | 0.01% | ||
Parent Company | Minimum | A+ to A- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.02% | 0.02% | ||
Parent Company | Minimum | A+ to A- | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.06% | 0.06% | ||
Parent Company | Minimum | BBB+ to BBB- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.12% | 0.12% | ||
Parent Company | Minimum | BBB+ to BBB- | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.17% | 0.17% | ||
Parent Company | Minimum | BB+ to B- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.54% | 0.54% | ||
Parent Company | Minimum | BB+ to B- | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.54% | 0.54% | ||
Parent Company | Minimum | CCC to D | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 27.27% | 27.27% | ||
Parent Company | Minimum | CCC to D | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 28.60% | 28.60% | ||
Parent Company | Minimum | Standardized approach | Operational risk | ||||
Disclosure of credit risk exposure | ||||
Capital requirement multiple factor | 15.00% | |||
Parent Company | Maximum | AAA to AA- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.01% | 0.01% | ||
Parent Company | Maximum | AAA to AA- | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.04% | 0.04% | ||
Parent Company | Maximum | A+ to A- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.07% | 0.07% | ||
Parent Company | Maximum | A+ to A- | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.12% | 0.12% | ||
Parent Company | Maximum | BBB+ to BBB- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.32% | 0.32% | ||
Parent Company | Maximum | BBB+ to BBB- | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.34% | 0.34% | ||
Parent Company | Maximum | BB+ to B- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 6.80% | 6.80% | ||
Parent Company | Maximum | BB+ to B- | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 8.40% | 8.40% | ||
Parent Company | Maximum | CCC to D | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 100.00% | 100.00% | ||
Parent Company | Maximum | CCC to D | Financial institutions and corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 100.00% | 100.00% | ||
Parent Company | Maximum | Standardized approach | Operational risk | ||||
Disclosure of credit risk exposure | ||||
Capital requirement multiple factor | 18.00% | |||
Parent Company | 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% | 4.60% | ||
Parent Company | Average | AAA to AA- | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.04% | 0.04% | ||
Average LGD in % | 35.30% | 43.80% | ||
Average risk weight in % | 17.10% | 20.10% | ||
Parent Company | Average | AAA to AA- | Corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.04% | 0.03% | ||
Average LGD in % | 45.00% | 45.00% | ||
Average risk weight in % | 19.70% | 18.60% | ||
Parent Company | Average | A+ to A- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.05% | 0.04% | ||
Average LGD in % | 45.00% | 45.00% | ||
Average risk weight in % | 19.80% | 18.80% | ||
Parent Company | Average | A+ to A- | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.08% | 0.08% | ||
Average LGD in % | 37.10% | 44.20% | ||
Average risk weight in % | 25.70% | 29.30% | ||
Parent Company | 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 % | 33.10% | 33.00% | ||
Parent Company | Average | BBB+ to BBB- | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.22% | 0.23% | ||
Average LGD in % | 45.00% | 45.00% | ||
Average risk weight in % | 64.60% | 66.00% | ||
Parent Company | 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 % | 51.70% | 51.50% | ||
Parent Company | Average | BB+ to B- | Central governments | ||||
Disclosure of credit risk exposure | ||||
PD in % | 1.50% | |||
Average LGD in % | 45.00% | |||
Average risk weight in % | 112.10% | |||
Parent Company | Average | BB+ to B- | Financial institutions | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.54% | 1.31% | ||
Average LGD in % | 45.00% | 45.00% | ||
Average risk weight in % | 99.90% | 135.50% | ||
Parent Company | Average | BB+ to B- | Corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 0.83% | 0.79% | ||
Average LGD in % | 45.00% | 45.00% | ||
Average risk weight in % | 86.80% | 85.50% | ||
Parent Company | Average | CCC to D | Corporates | ||||
Disclosure of credit risk exposure | ||||
PD in % | 28.60% | 63.11% | ||
Average LGD in % | 45.00% | 45.00% | ||
Average risk weight in % | 263.70% | 136.20% |
Capital adequacy - Leverage rat
Capital adequacy - Leverage ratio (Details) - SEK (kr) kr in Millions | Jun. 27, 2021 | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of credit risk exposure | |||
Leverage ratio | 5.70% | 5.60% | |
Parent Company | |||
Disclosure of credit risk exposure | |||
On-balance sheet exposures | kr 288,146 | kr 281,529 | |
Off-balance sheet exposures | 35,856 | 33,159 | |
Total exposure measure | kr 324,002 | kr 314,688 | |
Leverage ratio | 5.70% | 5.60% | |
Leverage ratio requirement | 3.00% |
Capital adequacy - Internally a
Capital adequacy - Internally assessed economic capital excl. buffer (Details) - Parent Company - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Disclosure of credit risk exposure | ||
Capital requirements | kr 18,307 | kr 17,531 |
Internal credit grades | ||
Disclosure of credit risk exposure | ||
Capital requirements | 9,824 | 10,470 |
Credit risk | Internal credit grades | ||
Disclosure of credit risk exposure | ||
Capital requirements | 7,337 | 7,008 |
Operational risk | Internal credit grades | ||
Disclosure of credit risk exposure | ||
Capital requirements | 183 | 239 |
Market risk | Internal credit grades | ||
Disclosure of credit risk exposure | ||
Capital requirements | 1,109 | 1,094 |
Other | Internal credit grades | ||
Disclosure of credit risk exposure | ||
Capital requirements | 203 | 163 |
Capital planning buffer | Internal credit grades | ||
Disclosure of credit risk exposure | ||
Capital requirements | kr 992 | kr 1,966 |
Risk information - Maximum expo
Risk information - Maximum exposure to credit risk (Details) € in Millions, kr in Millions | 12 Months Ended | ||
Dec. 31, 2019EUR (€) | Dec. 31, 2019SEK (kr) | Dec. 31, 2018SEK (kr) | |
Risk information | |||
Risk weight for standardized approach when no external rating is available | 100.00% | ||
Annual turnover limit for classification as small or medium-sized enterprise | € | € 50 | ||
Financial assets at fair value through profit or loss. | |||
Risk information | |||
Maximum exposure to credit risk | kr 69,470 | kr 64,226 | |
Financial assets at amortized cost | |||
Risk information | |||
Maximum exposure to credit risk | 279,204 | 267,036 | |
Cash and cash equivalents | Financial assets at amortized cost | |||
Risk information | |||
Maximum exposure to credit risk | 1,362 | 2,686 | |
Treasuries/government bonds | Financial assets at fair value through profit or loss. | |||
Risk information | |||
Maximum exposure to credit risk | 8,370 | 11,124 | |
Other interest-bearing securities except loans | Financial assets at fair value through profit or loss. | |||
Risk information | |||
Maximum exposure to credit risk | 54,132 | 48,577 | |
Loans in the form of interest-bearing securities | Financial assets at amortized cost | |||
Risk information | |||
Maximum exposure to credit risk | 43,793 | 36,303 | |
Loans to credit institutions | Financial assets at amortized cost | |||
Risk information | |||
Maximum exposure to credit risk | 11,235 | 12,543 | |
Loans to the public | Financial assets at amortized cost | |||
Risk information | |||
Maximum exposure to credit risk | 222,814 | 215,504 | |
Derivatives | Financial assets at fair value through profit or loss. | |||
Risk information | |||
Maximum exposure to credit risk | kr 6,968 | kr 4,525 |
Risk information - Credit expos
Risk information - Credit exposure (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Risk information | ||
Financial assets. | kr 305,065 | kr 294,327 |
Committed undisbursed loans | 52,150 | 50,814 |
AAA | ||
Risk information | ||
Financial assets. | 110,898 | 101,310 |
Committed undisbursed loans | 48,246 | 47,644 |
AA+ to A- | ||
Risk information | ||
Financial assets. | 107,653 | 105,408 |
Committed undisbursed loans | 1,307 | 1,626 |
BBB+ to BBB- | ||
Risk information | ||
Financial assets. | 63,830 | 65,598 |
Committed undisbursed loans | 807 | 1,253 |
BB+ to B- | ||
Risk information | ||
Financial assets. | 22,684 | 21,962 |
Committed undisbursed loans | 1,790 | 290 |
CCC to D | ||
Risk information | ||
Financial assets. | 49 | |
Committed undisbursed loans | 1 | |
Cash and cash equivalents | ||
Risk information | ||
Financial assets. | 1,362 | 2,416 |
Cash and cash equivalents | AAA | ||
Risk information | ||
Financial assets. | 711 | 634 |
Cash and cash equivalents | AA+ to A- | ||
Risk information | ||
Financial assets. | 651 | 1,782 |
Treasuries/government bonds | ||
Risk information | ||
Financial assets. | 8,344 | 11,117 |
Treasuries/government bonds | AAA | ||
Risk information | ||
Financial assets. | 2,191 | 2,365 |
Treasuries/government bonds | AA+ to A- | ||
Risk information | ||
Financial assets. | 6,153 | 8,752 |
Other interest-bearing securities except loans | ||
Risk information | ||
Financial assets. | 53,906 | 48,665 |
Other interest-bearing securities except loans | AAA | ||
Risk information | ||
Financial assets. | 20,092 | 10,882 |
Other interest-bearing securities except loans | AA+ to A- | ||
Risk information | ||
Financial assets. | 33,284 | 32,331 |
Other interest-bearing securities except loans | BBB+ to BBB- | ||
Risk information | ||
Financial assets. | 530 | 5,452 |
Loans in the form of interest-bearing securities | ||
Risk information | ||
Financial assets. | 43,627 | 36,781 |
Loans in the form of interest-bearing securities | AA+ to A- | ||
Risk information | ||
Financial assets. | 9,785 | 8,182 |
Loans in the form of interest-bearing securities | BBB+ to BBB- | ||
Risk information | ||
Financial assets. | 29,622 | 24,488 |
Loans in the form of interest-bearing securities | BB+ to B- | ||
Risk information | ||
Financial assets. | 4,220 | 4,111 |
Loans to credit institutions | ||
Risk information | ||
Financial assets. | 27,010 | 27,725 |
Loans to credit institutions | AAA | ||
Risk information | ||
Financial assets. | 2,285 | 2,663 |
Loans to credit institutions | AA+ to A- | ||
Risk information | ||
Financial assets. | 23,455 | 23,161 |
Loans to credit institutions | BBB+ to BBB- | ||
Risk information | ||
Financial assets. | 1,205 | 1,480 |
Loans to credit institutions | BB+ to B- | ||
Risk information | ||
Financial assets. | 65 | 421 |
Loans to the public | ||
Risk information | ||
Financial assets. | 163,848 | 161,094 |
Loans to the public | AAA | ||
Risk information | ||
Financial assets. | 85,619 | 84,766 |
Loans to the public | AA+ to A- | ||
Risk information | ||
Financial assets. | 28,503 | 25,878 |
Loans to the public | BBB+ to BBB- | ||
Risk information | ||
Financial assets. | 31,327 | 32,971 |
Loans to the public | BB+ to B- | ||
Risk information | ||
Financial assets. | 18,399 | 17,430 |
Loans to the public | CCC to D | ||
Risk information | ||
Financial assets. | 49 | |
Derivatives | ||
Risk information | ||
Financial assets. | 6,968 | 6,529 |
Derivatives | AA+ to A- | ||
Risk information | ||
Financial assets. | 5,822 | 5,322 |
Derivatives | BBB+ to BBB- | ||
Risk information | ||
Financial assets. | kr 1,146 | kr 1,207 |
Risk information - Net exposure
Risk information - Net exposure (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Sub-classifications of financial information | ||
Carrying amount of financial assets | kr 305,065 | kr 294,327 |
Cash collateral under the security agreements for derivative contracts | 16,891 | 16,374 |
Cash and cash equivalents | ||
Sub-classifications of financial information | ||
Carrying amount of financial assets | 1,362 | 2,416 |
Treasuries/government bonds | ||
Sub-classifications of financial information | ||
Carrying amount of financial assets | 8,344 | 11,117 |
Other interest-bearing securities except loans | ||
Sub-classifications of financial information | ||
Carrying amount of financial assets | 53,906 | 48,665 |
Loans in the form of interest-bearing securities | ||
Sub-classifications of financial information | ||
Carrying amount of financial assets | 43,627 | 36,781 |
Loans to credit institutions | ||
Sub-classifications of financial information | ||
Carrying amount of financial assets | 27,010 | 27,725 |
Loans to the public | ||
Sub-classifications of financial information | ||
Carrying amount of financial assets | 163,848 | 161,094 |
Derivatives | ||
Sub-classifications of financial information | ||
Carrying amount of financial assets | 6,968 | 6,529 |
Credit risk | ||
Sub-classifications of financial information | ||
Net exposure | 347,500 | 337,400 |
Adjustment to carrying amount from exposure | 26,200 | 17,500 |
Carrying amount | 373,600 | 354,900 |
Derivative exposure after netting | 5,600 | 3,700 |
Credit risk | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 161,300 | 169,600 |
Credit risk | Regional governments | ||
Sub-classifications of financial information | ||
Net exposure | 16,500 | 13,400 |
Credit risk | Multilateral development banks | ||
Sub-classifications of financial information | ||
Net exposure | 3,100 | 100 |
Credit risk | Public sector entity | ||
Sub-classifications of financial information | ||
Net exposure | 4,000 | 600 |
Credit risk | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | 45,700 | 34,200 |
Credit risk | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | 116,900 | 119,500 |
Credit risk | Financial assets | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | 26,200 | 17,600 |
Carrying amount of financial assets | 314,300 | 299,300 |
Credit risk | Financial assets | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 110,400 | 121,200 |
Credit risk | Financial assets | Regional governments | ||
Sub-classifications of financial information | ||
Net exposure | 16,500 | 13,400 |
Credit risk | Financial assets | Multilateral development banks | ||
Sub-classifications of financial information | ||
Net exposure | 3,100 | 100 |
Credit risk | Financial assets | Public sector entity | ||
Sub-classifications of financial information | ||
Net exposure | 4,000 | 600 |
Credit risk | Financial assets | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | 44,500 | 33,300 |
Credit risk | Financial assets | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | 109,600 | 113,100 |
Credit risk | Cash and cash equivalents | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | (100) | (200) |
Carrying amount of financial assets | 1,400 | 2,400 |
Credit risk | Cash and cash equivalents | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 300 | |
Credit risk | Cash and cash equivalents | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | 1,500 | 2,300 |
Credit risk | Treasuries/government bonds | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | (100) | 0 |
Carrying amount of financial assets | 8,300 | 11,100 |
Credit risk | Treasuries/government bonds | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 8,400 | 11,100 |
Credit risk | Other interest-bearing securities except loans | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | 0 | (100) |
Carrying amount of financial assets | 53,900 | 48,700 |
Credit risk | Other interest-bearing securities except loans | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 3,300 | 4,800 |
Credit risk | Other interest-bearing securities except loans | Regional governments | ||
Sub-classifications of financial information | ||
Net exposure | 10,600 | 7,000 |
Credit risk | Other interest-bearing securities except loans | Multilateral development banks | ||
Sub-classifications of financial information | ||
Net exposure | 2,800 | |
Credit risk | Other interest-bearing securities except loans | Public sector entity | ||
Sub-classifications of financial information | ||
Net exposure | 4,000 | 600 |
Credit risk | Other interest-bearing securities except loans | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | 26,700 | 15,700 |
Credit risk | Other interest-bearing securities except loans | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | 6,500 | 20,700 |
Credit risk | Loans in the form of interest-bearing securities | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | (200) | (100) |
Carrying amount of financial assets | 43,600 | 36,800 |
Credit risk | Loans in the form of interest-bearing securities | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | 900 | 700 |
Credit risk | Loans in the form of interest-bearing securities | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | 42,900 | 36,200 |
Credit risk | Loans to credit institutions | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | 16,900 | 16,200 |
Carrying amount of financial assets | 27,000 | 27,700 |
Cash collateral under the security agreements for derivative contracts | 16,900 | 16,400 |
Credit risk | Loans to credit institutions | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 900 | 1,400 |
Credit risk | Loans to credit institutions | Regional governments | ||
Sub-classifications of financial information | ||
Net exposure | 5,100 | 5,500 |
Credit risk | Loans to credit institutions | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | 4,000 | 4,500 |
Credit risk | Loans to credit institutions | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | 100 | 100 |
Credit risk | Loans to the public | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | (1,000) | (1,100) |
Carrying amount of financial assets | 163,800 | 161,100 |
Credit risk | Loans to the public | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 97,800 | 99,500 |
Credit risk | Loans to the public | Regional governments | ||
Sub-classifications of financial information | ||
Net exposure | 800 | 900 |
Credit risk | Loans to the public | Multilateral development banks | ||
Sub-classifications of financial information | ||
Net exposure | 300 | 100 |
Credit risk | Loans to the public | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | 5,800 | 5,600 |
Credit risk | Loans to the public | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | 60,100 | 56,100 |
Credit risk | Derivatives | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | 1,400 | 2,000 |
Carrying amount of financial assets | 7,000 | 6,500 |
Credit risk | Derivatives | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | 5,600 | 4,500 |
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 | 9,300 | 900 |
Carrying amount of financial assets | 9,300 | 5,000 |
Credit risk | Other assets | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 4,100 | |
Credit risk | Contingent liabilities and commitments | ||
Sub-classifications of financial information | ||
Adjustment to carrying amount from exposure | 0 | (100) |
Contingent liabilities and commitments | 59,300 | 55,600 |
Credit risk | Contingent liabilities and commitments | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | 50,800 | 48,400 |
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 | 1,200 | 900 |
Credit risk | Contingent liabilities and commitments | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | kr 7,300 | kr 6,400 |
Risk information - Total net ex
Risk information - Total net exposures (Details) - Credit risk - SEK (kr) kr in Billions | Dec. 31, 2019 | Dec. 31, 2018 |
Sub-classifications of financial information | ||
Net exposure | kr 347.5 | kr 337.4 |
Percentage of net exposures | 100.00% | 100.00% |
Central governments | ||
Sub-classifications of financial information | ||
Net exposure | kr 161.3 | kr 169.6 |
Percentage of net exposures | 46.40% | 50.30% |
Regional governments | ||
Sub-classifications of financial information | ||
Net exposure | kr 16.5 | kr 13.4 |
Percentage of net exposures | 4.70% | 4.00% |
Multilateral development banks | ||
Sub-classifications of financial information | ||
Net exposure | kr 3.1 | kr 0.1 |
Percentage of net exposures | 0.90% | 0.00% |
Public sector entity | ||
Sub-classifications of financial information | ||
Net exposure | kr 4 | kr 0.6 |
Percentage of net exposures | 1.20% | 0.20% |
Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | kr 45.7 | kr 34.2 |
Percentage of net exposures | 13.20% | 10.10% |
Corporates | ||
Sub-classifications of financial information | ||
Net exposure | kr 116.9 | kr 119.5 |
Percentage of net exposures | 33.60% | 35.40% |
Interest-bearing securities and lending | ||
Sub-classifications of financial information | ||
Net exposure | kr 282.5 | kr 277.1 |
Percentage of net exposures | 100.00% | 100.00% |
Interest-bearing securities and lending | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | kr 110.4 | kr 121.2 |
Percentage of net exposures | 39.10% | 43.80% |
Interest-bearing securities and lending | Regional governments | ||
Sub-classifications of financial information | ||
Net exposure | kr 16.5 | kr 13.4 |
Percentage of net exposures | 5.80% | 4.80% |
Interest-bearing securities and lending | Multilateral development banks | ||
Sub-classifications of financial information | ||
Net exposure | kr 3.1 | kr 0.1 |
Percentage of net exposures | 1.10% | 0.00% |
Interest-bearing securities and lending | Public sector entity | ||
Sub-classifications of financial information | ||
Net exposure | kr 4 | kr 0.6 |
Percentage of net exposures | 1.40% | 0.20% |
Interest-bearing securities and lending | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | kr 38.9 | kr 28.7 |
Percentage of net exposures | 13.80% | 10.40% |
Interest-bearing securities and lending | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | kr 109.6 | kr 113.1 |
Percentage of net exposures | 38.80% | 40.80% |
Committed undisbursed loans, derivatives, etc. | ||
Sub-classifications of financial information | ||
Net exposure | kr 65 | kr 60.3 |
Percentage of net exposures | 100.00% | 100.00% |
Committed undisbursed loans, derivatives, etc. | Central governments | ||
Sub-classifications of financial information | ||
Net exposure | kr 50.9 | kr 48.4 |
Percentage of net exposures | 78.30% | 80.30% |
Committed undisbursed loans, derivatives, etc. | Multilateral development banks | ||
Sub-classifications of financial information | ||
Net exposure | kr 0 | |
Percentage of net exposures | 0.00% | |
Committed undisbursed loans, derivatives, etc. | Financial institutions | ||
Sub-classifications of financial information | ||
Net exposure | kr 6.8 | kr 5.5 |
Percentage of net exposures | 10.50% | 9.10% |
Committed undisbursed loans, derivatives, etc. | Corporates | ||
Sub-classifications of financial information | ||
Net exposure | kr 7.3 | kr 6.4 |
Percentage of net exposures | 11.20% | 10.60% |
Risk information - Gross exposu
Risk information - Gross exposure by region and class (Details) - Credit risk - SEK (kr) kr in Billions | Dec. 31, 2019 | Dec. 31, 2018 |
Risk information | ||
Gross exposure | kr 347.5 | kr 337.4 |
Central governments | ||
Risk information | ||
Gross exposure | 63.9 | 73.4 |
Regional governments | ||
Risk information | ||
Gross exposure | 12.3 | 8.8 |
Multilateral development banks | ||
Risk information | ||
Gross exposure | 2.8 | |
Public sector entity | ||
Risk information | ||
Gross exposure | 4 | 0.6 |
Financial institutions | ||
Risk information | ||
Gross exposure | 43.2 | 33 |
Corporates | ||
Risk information | ||
Gross exposure | 221.3 | 221.6 |
Middle East/ Africa/Turkey | ||
Risk information | ||
Gross exposure | 27 | 25.9 |
Middle East/ Africa/Turkey | Central governments | ||
Risk information | ||
Gross exposure | 4.2 | 2.8 |
Middle East/ Africa/Turkey | Regional governments | ||
Risk information | ||
Gross exposure | 1.7 | 1.7 |
Middle East/ Africa/Turkey | Corporates | ||
Risk information | ||
Gross exposure | 21.1 | 21.4 |
Asia excl. Japan | ||
Risk information | ||
Gross exposure | 16.1 | 20.3 |
Asia excl. Japan | Central governments | ||
Risk information | ||
Gross exposure | 4.8 | 5.3 |
Asia excl. Japan | Financial institutions | ||
Risk information | ||
Gross exposure | 2.7 | 2.4 |
Asia excl. Japan | Corporates | ||
Risk information | ||
Gross exposure | 8.6 | 12.6 |
Japan | ||
Risk information | ||
Gross exposure | 4.8 | 5.7 |
Japan | Central governments | ||
Risk information | ||
Gross exposure | 2.8 | 4 |
Japan | Financial institutions | ||
Risk information | ||
Gross exposure | 0.6 | 0.5 |
Japan | Corporates | ||
Risk information | ||
Gross exposure | 1.4 | 1.2 |
North America | ||
Risk information | ||
Gross exposure | 72.1 | 61.1 |
North America | Central governments | ||
Risk information | ||
Gross exposure | 1.3 | 1.9 |
North America | Financial institutions | ||
Risk information | ||
Gross exposure | 5.7 | 6.2 |
North America | Corporates | ||
Risk information | ||
Gross exposure | 65.1 | 53 |
Oceania | ||
Risk information | ||
Gross exposure | 0.9 | 1.1 |
Oceania | Financial institutions | ||
Risk information | ||
Gross exposure | 0.9 | 1.1 |
Latin America | ||
Risk information | ||
Gross exposure | 49.8 | 53.7 |
Latin America | Central governments | ||
Risk information | ||
Gross exposure | 42.2 | 43.7 |
Latin America | Financial institutions | ||
Risk information | ||
Gross exposure | 0.4 | |
Latin America | Corporates | ||
Risk information | ||
Gross exposure | 7.6 | 9.6 |
Sweden | ||
Risk information | ||
Gross exposure | 115.8 | 109.6 |
Sweden | Central governments | ||
Risk information | ||
Gross exposure | 3 | 7.1 |
Sweden | Regional governments | ||
Risk information | ||
Gross exposure | 10.5 | 7 |
Sweden | Financial institutions | ||
Risk information | ||
Gross exposure | 19.7 | 12.3 |
Sweden | Corporates | ||
Risk information | ||
Gross exposure | 82.6 | 83.2 |
West European countries excl. Sweden | ||
Risk information | ||
Gross exposure | 57.2 | 55.1 |
West European countries excl. Sweden | Central governments | ||
Risk information | ||
Gross exposure | 5.6 | 8.6 |
West European countries excl. Sweden | Regional governments | ||
Risk information | ||
Gross exposure | 0.1 | 0.1 |
West European countries excl. Sweden | Multilateral development banks | ||
Risk information | ||
Gross exposure | 2.8 | |
West European countries excl. Sweden | Public sector entity | ||
Risk information | ||
Gross exposure | 4 | 0.6 |
West European countries excl. Sweden | Financial institutions | ||
Risk information | ||
Gross exposure | 13.4 | 9.8 |
West European countries excl. Sweden | Corporates | ||
Risk information | ||
Gross exposure | 31.3 | 36 |
Central-East European countries | ||
Risk information | ||
Gross exposure | 3.8 | 4.9 |
Central-East European countries | Financial institutions | ||
Risk information | ||
Gross exposure | 0.2 | 0.3 |
Central-East European countries | Corporates | ||
Risk information | ||
Gross exposure | kr 3.6 | kr 4.6 |
Risk information - Net exposu_2
Risk information - Net exposure by region and class (Details) - Credit risk - SEK (kr) kr in Billions | Dec. 31, 2019 | Dec. 31, 2018 |
Risk information | ||
Net exposure | kr 347.5 | kr 337.4 |
Central governments | ||
Risk information | ||
Net exposure | 161.3 | 169.6 |
Regional governments | ||
Risk information | ||
Net exposure | 16.5 | 13.4 |
Multilateral development banks | ||
Risk information | ||
Net exposure | 3.1 | 0.1 |
Public sector entity | ||
Risk information | ||
Net exposure | 4 | 0.6 |
Financial institutions | ||
Risk information | ||
Net exposure | 45.7 | 34.2 |
Corporates | ||
Risk information | ||
Net exposure | 116.9 | 119.5 |
Middle East/ Africa/Turkey | ||
Risk information | ||
Net exposure | 4.5 | 4.6 |
Middle East/ Africa/Turkey | Corporates | ||
Risk information | ||
Net exposure | 4.5 | 4.6 |
Asia excl. Japan | ||
Risk information | ||
Net exposure | 5 | 6.2 |
Asia excl. Japan | Central governments | ||
Risk information | ||
Net exposure | 0.6 | 0.7 |
Asia excl. Japan | Financial institutions | ||
Risk information | ||
Net exposure | 2.7 | 2.4 |
Asia excl. Japan | Corporates | ||
Risk information | ||
Net exposure | 1.7 | 3.1 |
Japan | ||
Risk information | ||
Net exposure | 7.5 | 8 |
Japan | Central governments | ||
Risk information | ||
Net exposure | 2.8 | 4 |
Japan | Financial institutions | ||
Risk information | ||
Net exposure | 0.9 | 0.9 |
Japan | Corporates | ||
Risk information | ||
Net exposure | 3.8 | 3.1 |
North America | ||
Risk information | ||
Net exposure | 13.4 | 13.7 |
North America | Central governments | ||
Risk information | ||
Net exposure | 2.8 | 3.9 |
North America | Financial institutions | ||
Risk information | ||
Net exposure | 6.6 | 6.9 |
North America | Corporates | ||
Risk information | ||
Net exposure | 4 | 2.9 |
Oceania | ||
Risk information | ||
Net exposure | 0.9 | 1.1 |
Oceania | Financial institutions | ||
Risk information | ||
Net exposure | 0.9 | 1.1 |
Latin America | ||
Risk information | ||
Net exposure | 2.8 | 4.2 |
Latin America | Central governments | ||
Risk information | ||
Net exposure | 0.9 | |
Latin America | Financial institutions | ||
Risk information | ||
Net exposure | 0.3 | |
Latin America | Corporates | ||
Risk information | ||
Net exposure | 2.8 | 3 |
Sweden | ||
Risk information | ||
Net exposure | 251.2 | 241.4 |
Sweden | Central governments | ||
Risk information | ||
Net exposure | 138.1 | 139 |
Sweden | Regional governments | ||
Risk information | ||
Net exposure | 16.3 | 13.2 |
Sweden | Financial institutions | ||
Risk information | ||
Net exposure | 16.7 | 8.7 |
Sweden | Corporates | ||
Risk information | ||
Net exposure | 80.1 | 80.5 |
West European countries excl. Sweden | ||
Risk information | ||
Net exposure | 58.8 | 54.7 |
West European countries excl. Sweden | Central governments | ||
Risk information | ||
Net exposure | 13.9 | 18 |
West European countries excl. Sweden | Regional governments | ||
Risk information | ||
Net exposure | 0.2 | 0.2 |
West European countries excl. Sweden | Multilateral development banks | ||
Risk information | ||
Net exposure | 3.1 | 0.1 |
West European countries excl. Sweden | Public sector entity | ||
Risk information | ||
Net exposure | 4 | 0.6 |
West European countries excl. Sweden | Financial institutions | ||
Risk information | ||
Net exposure | 17.7 | 13.6 |
West European countries excl. Sweden | Corporates | ||
Risk information | ||
Net exposure | 19.9 | 22.2 |
Central-East European countries | ||
Risk information | ||
Net exposure | 3.4 | 3.5 |
Central-East European countries | Central governments | ||
Risk information | ||
Net exposure | 3.1 | 3.1 |
Central-East European countries | Financial institutions | ||
Risk information | ||
Net exposure | 0.2 | 0.3 |
Central-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, 2019 | Dec. 31, 2018 |
Risk information | ||
Hedged exposures | kr 165.6 | kr 163.1 |
Unhedged exposures | 181.9 | 174.3 |
Gross exposure | 347.5 | 337.4 |
Subject to the write-down requirement in IFRS 9 | ||
Risk information | ||
Hedged exposures | 165.6 | 163.1 |
Unhedged exposures | 119.3 | 105.3 |
Gross exposure | 284.9 | 268.4 |
Central governments | ||
Risk information | ||
Hedged exposures | 148.7 | 147.1 |
Unhedged exposures - hedge issuer in same group as counterparty | 0.1 | 0.2 |
Central governments | Subject to the write-down requirement in IFRS 9 | ||
Risk information | ||
Hedged exposures | 148.7 | 147.1 |
Central governments | Guarantee | Guarantees by the Swedish Export Credit Agency | ||
Risk information | ||
Hedged exposures | 135.1 | 131.8 |
Central governments | Guarantee | Guarantees by the Swedish Export Credit Agency | Subject to the write-down requirement in IFRS 9 | ||
Risk information | ||
Hedged exposures | 135.1 | 131.8 |
Central governments | Guarantee | Guarantees by other export credit agencies | ||
Risk information | ||
Hedged exposures | 10.4 | 12 |
Central governments | Guarantee | Guarantees by other export credit agencies | Subject to the write-down requirement in IFRS 9 | ||
Risk information | ||
Hedged exposures | 10.4 | 12 |
Central governments | Guarantee | Other guarantees | ||
Risk information | ||
Hedged exposures | 3.2 | 3.3 |
Central governments | Guarantee | Other guarantees | Subject to the write-down requirement in IFRS 9 | ||
Risk information | ||
Hedged exposures | 3.2 | 3.3 |
Regional governments | ||
Risk information | ||
Hedged exposures | 5.8 | 6.3 |
Regional governments | Subject to the write-down requirement in IFRS 9 | ||
Risk information | ||
Hedged exposures | 5.8 | 6.3 |
Multilateral development banks | ||
Risk information | ||
Hedged exposures | 0.3 | 0.1 |
Multilateral development banks | Subject to the write-down requirement in IFRS 9 | ||
Risk information | ||
Hedged exposures | 0.3 | 0.1 |
Financial institutions | ||
Risk information | ||
Hedged exposures | 7.7 | 6.9 |
Unhedged exposures - hedge issuer in same group as counterparty | 4.2 | |
Financial institutions | Subject to the write-down requirement in IFRS 9 | ||
Risk information | ||
Hedged exposures | 7.7 | 6.9 |
Financial institutions | Guarantee | ||
Risk information | ||
Hedged exposures | 7.7 | 6.9 |
Financial institutions | Guarantee | Subject to the write-down requirement in IFRS 9 | ||
Risk information | ||
Hedged exposures | 7.7 | 6.9 |
Corporates | ||
Risk information | ||
Hedged exposures | 3.1 | 2.7 |
Unhedged exposures - hedge issuer in same group as counterparty | 23.5 | 25.8 |
Corporates | Subject to the write-down requirement in IFRS 9 | ||
Risk information | ||
Hedged exposures | 3.1 | 2.7 |
Corporates | Credit insurance from insurance companies | ||
Risk information | ||
Hedged exposures | 1.6 | 1.8 |
Corporates | Credit insurance from insurance companies | Subject to the write-down requirement in IFRS 9 | ||
Risk information | ||
Hedged exposures | 1.6 | 1.8 |
Corporates | Guarantee | Other guarantees | ||
Risk information | ||
Hedged exposures | 1.5 | 0.9 |
Corporates | Guarantee | Other guarantees | Subject to the write-down requirement in IFRS 9 | ||
Risk information | ||
Hedged exposures | 1.5 | 0.9 |
Central governments | ||
Risk information | ||
Hedged exposures | 51.3 | 50.9 |
Unhedged exposures | 12.6 | 22.5 |
Gross exposure | 63.9 | 73.4 |
Central governments | Central governments | ||
Risk information | ||
Hedged exposures | 51.3 | 50.9 |
Central governments | Central governments | Guarantee | Guarantees by the Swedish Export Credit Agency | ||
Risk information | ||
Hedged exposures | 50.4 | 49.9 |
Central governments | Central governments | Guarantee | Guarantees by other export credit agencies | ||
Risk information | ||
Hedged exposures | 0.9 | 1 |
Central governments | Financial institutions | ||
Risk information | ||
Hedged exposures | 0 | 0 |
Central governments | Financial institutions | Guarantee | ||
Risk information | ||
Hedged exposures | 0 | 0 |
Regional governments | ||
Risk information | ||
Hedged exposures | 1.7 | 1.7 |
Unhedged exposures | 10.6 | 7.1 |
Gross exposure | 12.3 | 8.8 |
Regional governments | Central governments | ||
Risk information | ||
Hedged exposures | 1.7 | 1.7 |
Regional governments | Central governments | Guarantee | Guarantees by the Swedish Export Credit Agency | ||
Risk information | ||
Hedged exposures | 1.7 | 1.7 |
Regional governments | Regional governments | ||
Risk information | ||
Hedged exposures | 0 | |
Multilateral development banks | ||
Risk information | ||
Unhedged exposures | 2.8 | |
Gross exposure | 2.8 | |
Public sector entity | ||
Risk information | ||
Unhedged exposures | 4 | 0.6 |
Gross exposure | 4 | 0.6 |
Financial institutions | ||
Risk information | ||
Hedged exposures | 5.1 | 5.7 |
Unhedged exposures | 38.1 | 27.3 |
Gross exposure | 43.2 | 33 |
Financial institutions | Central governments | ||
Risk information | ||
Hedged exposures | 0 | 0.2 |
Financial institutions | Central governments | Guarantee | Guarantees by the Swedish Export Credit Agency | ||
Risk information | ||
Hedged exposures | 0 | 0.1 |
Financial institutions | Central governments | Guarantee | Guarantees by other export credit agencies | ||
Risk information | ||
Hedged exposures | 0.1 | |
Financial institutions | Regional governments | ||
Risk information | ||
Hedged exposures | 5.1 | 5.5 |
Financial institutions | Financial institutions | ||
Risk information | ||
Hedged exposures | 0 | 0 |
Financial institutions | Financial institutions | Guarantee | ||
Risk information | ||
Hedged exposures | 0 | 0 |
Corporates | ||
Risk information | ||
Hedged exposures | 107.5 | 104.8 |
Unhedged exposures | 113.8 | 116.8 |
Gross exposure | 221.3 | 221.6 |
Corporates | Central governments | ||
Risk information | ||
Hedged exposures | 95.7 | 94.3 |
Corporates | Central governments | Guarantee | Guarantees by the Swedish Export Credit Agency | ||
Risk information | ||
Hedged exposures | 83 | 80.1 |
Corporates | Central governments | Guarantee | Guarantees by other export credit agencies | ||
Risk information | ||
Hedged exposures | 9.5 | 10.9 |
Corporates | Central governments | Guarantee | Other guarantees | ||
Risk information | ||
Hedged exposures | 3.2 | 3.3 |
Corporates | Regional governments | ||
Risk information | ||
Hedged exposures | 0.7 | 0.8 |
Corporates | Multilateral development banks | ||
Risk information | ||
Hedged exposures | 0.3 | 0.1 |
Corporates | Financial institutions | ||
Risk information | ||
Hedged exposures | 7.7 | 6.9 |
Corporates | Financial institutions | Guarantee | ||
Risk information | ||
Hedged exposures | 7.7 | 6.9 |
Corporates | Corporates | ||
Risk information | ||
Hedged exposures | 3.1 | 2.7 |
Corporates | Corporates | Credit insurance from insurance companies | ||
Risk information | ||
Hedged exposures | 1.6 | 1.8 |
Corporates | Corporates | Guarantee | Other guarantees | ||
Risk information | ||
Hedged exposures | kr 1.5 | kr 0.9 |
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, 2019 | Dec. 31, 2018 |
Risk information | ||
Gross exposure | kr 347.5 | kr 337.4 |
Spain | ||
Risk information | ||
Gross exposure | 8.6 | 9.9 |
Germany | ||
Risk information | ||
Gross exposure | 7.3 | 4 |
Norway | ||
Risk information | ||
Gross exposure | 7.1 | 6.5 |
Finland | ||
Risk information | ||
Gross exposure | 7 | 5.8 |
United Kingdom | ||
Risk information | ||
Gross exposure | 5 | 5.2 |
Italy | ||
Risk information | ||
Gross exposure | 3.6 | 4.2 |
France | ||
Risk information | ||
Gross exposure | 3.5 | 2.7 |
The Netherlands | ||
Risk information | ||
Gross exposure | 3.4 | 3.4 |
Luxembourg | ||
Risk information | ||
Gross exposure | 3.4 | 2 |
Poland | ||
Risk information | ||
Gross exposure | 3.1 | 3.1 |
Denmark | ||
Risk information | ||
Gross exposure | 2.3 | 4.9 |
Belgium | ||
Risk information | ||
Gross exposure | 1.8 | 0.6 |
Austria | ||
Risk information | ||
Gross exposure | 1.7 | 4.6 |
Switzerland | ||
Risk information | ||
Gross exposure | 1.5 | 0.9 |
Portugal | ||
Risk information | ||
Gross exposure | 0.6 | 0.1 |
Russian Federation | ||
Risk information | ||
Gross exposure | 0.4 | 1.4 |
Ireland | ||
Risk information | ||
Gross exposure | 0.3 | 0.4 |
Latvia | ||
Risk information | ||
Gross exposure | 0.2 | 0.2 |
Iceland | ||
Risk information | ||
Gross exposure | 0.1 | 0.2 |
Estonia | ||
Risk information | ||
Gross exposure | 0.1 | 0 |
Ukraine | ||
Risk information | ||
Gross exposure | 0 | 0 |
Hungary | ||
Risk information | ||
Gross exposure | 0 | |
Greece | ||
Risk information | ||
Gross exposure | 0 | |
Europe except Sweden | ||
Risk information | ||
Gross exposure | 61 | 60.1 |
Central governments | ||
Risk information | ||
Gross exposure | 63.9 | 73.4 |
Central governments | Germany | ||
Risk information | ||
Gross exposure | 2.8 | 3.1 |
Central governments | Finland | ||
Risk information | ||
Gross exposure | 0.6 | 0.1 |
Central governments | The Netherlands | ||
Risk information | ||
Gross exposure | 1.7 | |
Central governments | Luxembourg | ||
Risk information | ||
Gross exposure | 0.6 | 0.8 |
Central governments | Belgium | ||
Risk information | ||
Gross exposure | 1.6 | |
Central governments | Austria | ||
Risk information | ||
Gross exposure | 2.9 | |
Central governments | Europe except Sweden | ||
Risk information | ||
Gross exposure | 5.6 | 8.6 |
Regional governments | ||
Risk information | ||
Gross exposure | 12.3 | 8.8 |
Regional governments | Finland | ||
Risk information | ||
Gross exposure | 0.1 | 0.1 |
Regional governments | Europe except Sweden | ||
Risk information | ||
Gross exposure | 0.1 | 0.1 |
Multilateral development banks | ||
Risk information | ||
Gross exposure | 2.8 | |
Multilateral development banks | Luxembourg | ||
Risk information | ||
Gross exposure | 2.8 | |
Multilateral development banks | Europe except Sweden | ||
Risk information | ||
Gross exposure | 2.8 | |
Public sector entity | ||
Risk information | ||
Gross exposure | 4 | 0.6 |
Public sector entity | Germany | ||
Risk information | ||
Gross exposure | 4 | 0.6 |
Public sector entity | Europe except Sweden | ||
Risk information | ||
Gross exposure | 4 | 0.6 |
Financial institutions | ||
Risk information | ||
Gross exposure | 43.2 | 33 |
Financial institutions | Spain | ||
Risk information | ||
Gross exposure | 0.5 | 0.1 |
Financial institutions | Germany | ||
Risk information | ||
Gross exposure | 0.5 | 0.3 |
Financial institutions | Norway | ||
Risk information | ||
Gross exposure | 2 | 2.4 |
Financial institutions | Finland | ||
Risk information | ||
Gross exposure | 0.1 | 0.2 |
Financial institutions | United Kingdom | ||
Risk information | ||
Gross exposure | 2.4 | 2.6 |
Financial institutions | France | ||
Risk information | ||
Gross exposure | 2 | 0.6 |
Financial institutions | The Netherlands | ||
Risk information | ||
Gross exposure | 3.2 | 0.1 |
Financial institutions | Denmark | ||
Risk information | ||
Gross exposure | 0.9 | 1.7 |
Financial institutions | Belgium | ||
Risk information | ||
Gross exposure | 0 | 0 |
Financial institutions | Austria | ||
Risk information | ||
Gross exposure | 1.7 | 1.7 |
Financial institutions | Switzerland | ||
Risk information | ||
Gross exposure | 0.1 | |
Financial institutions | Latvia | ||
Risk information | ||
Gross exposure | 0.2 | 0.2 |
Financial institutions | Estonia | ||
Risk information | ||
Gross exposure | 0.1 | 0 |
Financial institutions | Europe except Sweden | ||
Risk information | ||
Gross exposure | 13.6 | 10 |
Corporates | ||
Risk information | ||
Gross exposure | 221.3 | 221.6 |
Corporates | Spain | ||
Risk information | ||
Gross exposure | 8.1 | 9.8 |
Corporates | Norway | ||
Risk information | ||
Gross exposure | 5.1 | 4.1 |
Corporates | Finland | ||
Risk information | ||
Gross exposure | 6.2 | 5.4 |
Corporates | United Kingdom | ||
Risk information | ||
Gross exposure | 2.6 | 2.6 |
Corporates | Italy | ||
Risk information | ||
Gross exposure | 3.6 | 4.2 |
Corporates | France | ||
Risk information | ||
Gross exposure | 1.5 | 2.1 |
Corporates | The Netherlands | ||
Risk information | ||
Gross exposure | 0.2 | 1.6 |
Corporates | Luxembourg | ||
Risk information | ||
Gross exposure | 1.2 | |
Corporates | Poland | ||
Risk information | ||
Gross exposure | 3.1 | 3.1 |
Corporates | Denmark | ||
Risk information | ||
Gross exposure | 1.4 | 3.2 |
Corporates | Belgium | ||
Risk information | ||
Gross exposure | 0.2 | 0.6 |
Corporates | Switzerland | ||
Risk information | ||
Gross exposure | 1.5 | 0.8 |
Corporates | Portugal | ||
Risk information | ||
Gross exposure | 0.6 | 0.1 |
Corporates | Russian Federation | ||
Risk information | ||
Gross exposure | 0.4 | 1.4 |
Corporates | Ireland | ||
Risk information | ||
Gross exposure | 0.3 | 0.4 |
Corporates | Iceland | ||
Risk information | ||
Gross exposure | 0.1 | 0.2 |
Corporates | Estonia | ||
Risk information | ||
Gross exposure | 0 | |
Corporates | Ukraine | ||
Risk information | ||
Gross exposure | 0 | 0 |
Corporates | Hungary | ||
Risk information | ||
Gross exposure | 0 | |
Corporates | Greece | ||
Risk information | ||
Gross exposure | 0 | |
Corporates | Europe except Sweden | ||
Risk information | ||
Gross exposure | kr 34.9 | kr 40.8 |
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, 2019 | Dec. 31, 2018 |
Risk information | ||
Net exposure | kr 347.5 | kr 337.4 |
Germany | ||
Risk information | ||
Net exposure | 9.1 | 7.5 |
France | ||
Risk information | ||
Net exposure | 8 | 9 |
United Kingdom | ||
Risk information | ||
Net exposure | 8 | 6.8 |
Norway | ||
Risk information | ||
Net exposure | 7.3 | 6.8 |
Finland | ||
Risk information | ||
Net exposure | 6.8 | 5.5 |
Luxembourg | ||
Risk information | ||
Net exposure | 4.4 | 1.9 |
The Netherlands | ||
Risk information | ||
Net exposure | 3.9 | 2.8 |
Denmark | ||
Risk information | ||
Net exposure | 3.3 | 5.8 |
Poland | ||
Risk information | ||
Net exposure | 3.1 | 3.1 |
Belgium | ||
Risk information | ||
Net exposure | 2.4 | 1.1 |
Spain | ||
Risk information | ||
Net exposure | 2.1 | 1.4 |
Austria | ||
Risk information | ||
Net exposure | 1.7 | 4.6 |
Switzerland | ||
Risk information | ||
Net exposure | 0.7 | 0.8 |
Portugal | ||
Risk information | ||
Net exposure | 0.6 | 0.1 |
Ireland | ||
Risk information | ||
Net exposure | 0.3 | 0.4 |
Latvia | ||
Risk information | ||
Net exposure | 0.2 | 0.2 |
Iceland | ||
Risk information | ||
Net exposure | 0.1 | 0.2 |
Italy | ||
Risk information | ||
Net exposure | 0.1 | 0.2 |
Estonia | ||
Risk information | ||
Net exposure | 0.1 | 0 |
Hungary | ||
Risk information | ||
Net exposure | 0 | |
Russian Federation | ||
Risk information | ||
Net exposure | 0 | |
Europe except Sweden | ||
Risk information | ||
Net exposure | 62.2 | 58.2 |
Central governments | ||
Risk information | ||
Net exposure | 161.3 | 169.6 |
Central governments | Germany | ||
Risk information | ||
Net exposure | 3.7 | 3.9 |
Central governments | France | ||
Risk information | ||
Net exposure | 6.3 | 7.3 |
Central governments | United Kingdom | ||
Risk information | ||
Net exposure | 0.1 | 0.3 |
Central governments | Norway | ||
Risk information | ||
Net exposure | 0.4 | 0.4 |
Central governments | Finland | ||
Risk information | ||
Net exposure | 0.8 | 0.4 |
Central governments | Luxembourg | ||
Risk information | ||
Net exposure | 0.5 | 0.8 |
Central governments | The Netherlands | ||
Risk information | ||
Net exposure | 0.3 | 1.7 |
Central governments | Denmark | ||
Risk information | ||
Net exposure | 0.2 | 0.2 |
Central governments | Poland | ||
Risk information | ||
Net exposure | 3.1 | 3.1 |
Central governments | Belgium | ||
Risk information | ||
Net exposure | 1.6 | |
Central governments | Austria | ||
Risk information | ||
Net exposure | 2.9 | |
Central governments | Europe except Sweden | ||
Risk information | ||
Net exposure | 17 | 21 |
Regional governments | ||
Risk information | ||
Net exposure | 16.5 | 13.4 |
Regional governments | Finland | ||
Risk information | ||
Net exposure | 0.2 | 0.2 |
Regional governments | Europe except Sweden | ||
Risk information | ||
Net exposure | 0.2 | 0.2 |
Multilateral development banks | ||
Risk information | ||
Net exposure | 3.1 | 0.1 |
Multilateral development banks | Luxembourg | ||
Risk information | ||
Net exposure | 3.1 | 0.1 |
Multilateral development banks | Europe except Sweden | ||
Risk information | ||
Net exposure | 3.1 | 0.1 |
Public sector entity | ||
Risk information | ||
Net exposure | 4 | 0.6 |
Public sector entity | Germany | ||
Risk information | ||
Net exposure | 4 | 0.6 |
Public sector entity | Europe except Sweden | ||
Risk information | ||
Net exposure | 4 | 0.6 |
Financial institutions | ||
Risk information | ||
Net exposure | 45.7 | 34.2 |
Financial institutions | Germany | ||
Risk information | ||
Net exposure | 1 | 1.4 |
Financial institutions | France | ||
Risk information | ||
Net exposure | 1.6 | 1.7 |
Financial institutions | United Kingdom | ||
Risk information | ||
Net exposure | 3.4 | 1.6 |
Financial institutions | Norway | ||
Risk information | ||
Net exposure | 2 | 2.4 |
Financial institutions | Finland | ||
Risk information | ||
Net exposure | 0.2 | 0.3 |
Financial institutions | The Netherlands | ||
Risk information | ||
Net exposure | 3.4 | 0.4 |
Financial institutions | Denmark | ||
Risk information | ||
Net exposure | 1.8 | 2.4 |
Financial institutions | Belgium | ||
Risk information | ||
Net exposure | 0.6 | 0.6 |
Financial institutions | Spain | ||
Risk information | ||
Net exposure | 1.7 | 0.9 |
Financial institutions | Austria | ||
Risk information | ||
Net exposure | 1.7 | 1.7 |
Financial institutions | Switzerland | ||
Risk information | ||
Net exposure | 0.2 | 0.3 |
Financial institutions | Latvia | ||
Risk information | ||
Net exposure | 0.2 | 0.2 |
Financial institutions | Estonia | ||
Risk information | ||
Net exposure | 0.1 | 0 |
Financial institutions | Europe except Sweden | ||
Risk information | ||
Net exposure | 17.9 | 13.9 |
Corporates | ||
Risk information | ||
Net exposure | 116.9 | 119.5 |
Corporates | Germany | ||
Risk information | ||
Net exposure | 0.4 | 1.6 |
Corporates | France | ||
Risk information | ||
Net exposure | 0.1 | 0 |
Corporates | United Kingdom | ||
Risk information | ||
Net exposure | 4.5 | 4.9 |
Corporates | Norway | ||
Risk information | ||
Net exposure | 4.9 | 4 |
Corporates | Finland | ||
Risk information | ||
Net exposure | 5.6 | 4.6 |
Corporates | Luxembourg | ||
Risk information | ||
Net exposure | 0.8 | 1 |
Corporates | The Netherlands | ||
Risk information | ||
Net exposure | 0.2 | 0.7 |
Corporates | Denmark | ||
Risk information | ||
Net exposure | 1.3 | 3.2 |
Corporates | Poland | ||
Risk information | ||
Net exposure | 0 | 0 |
Corporates | Belgium | ||
Risk information | ||
Net exposure | 0.2 | 0.5 |
Corporates | Spain | ||
Risk information | ||
Net exposure | 0.4 | 0.5 |
Corporates | Switzerland | ||
Risk information | ||
Net exposure | 0.5 | 0.5 |
Corporates | Portugal | ||
Risk information | ||
Net exposure | 0.6 | 0.1 |
Corporates | Ireland | ||
Risk information | ||
Net exposure | 0.3 | 0.4 |
Corporates | Iceland | ||
Risk information | ||
Net exposure | 0.1 | 0.2 |
Corporates | Italy | ||
Risk information | ||
Net exposure | 0.1 | 0.2 |
Corporates | Estonia | ||
Risk information | ||
Net exposure | 0 | |
Corporates | Hungary | ||
Risk information | ||
Net exposure | 0 | |
Corporates | Russian Federation | ||
Risk information | ||
Net exposure | 0 | |
Corporates | Europe except Sweden | ||
Risk information | ||
Net exposure | kr 20 | kr 22.4 |
Risk information - Corporate ex
Risk information - Corporate exposures by industry (GICS) (Details) - Credit risk - SEK (kr) kr in Billions | Dec. 31, 2019 | Dec. 31, 2018 |
Risk information | ||
Gross exposure | kr 347.5 | kr 337.4 |
Net exposure | 347.5 | 337.4 |
Corporates | ||
Risk information | ||
Gross exposure | 221.3 | 221.6 |
Net exposure | 116.9 | 119.5 |
Corporates | IT and telecom | ||
Risk information | ||
Gross exposure | 84.6 | 79.6 |
Net exposure | 13.6 | 13 |
Corporates | Industry | ||
Risk information | ||
Gross exposure | 46.6 | 46.9 |
Net exposure | 40.7 | 41 |
Corporates | Finance | ||
Risk information | ||
Gross exposure | 23.3 | 27.6 |
Net exposure | 12.8 | 16.6 |
Corporates | Commodities | ||
Risk information | ||
Gross exposure | 21.2 | 24.5 |
Net exposure | 16.6 | 19 |
Corporates | Consumer goods | ||
Risk information | ||
Gross exposure | 25.1 | 21.8 |
Net exposure | 23.8 | 20.4 |
Corporates | Electricity, water and gas | ||
Risk information | ||
Gross exposure | 13.7 | 15 |
Net exposure | 4.4 | 5.6 |
Corporates | Healthcare | ||
Risk information | ||
Gross exposure | 4.8 | 3.5 |
Net exposure | 4.6 | 3.2 |
Corporates | Energy | ||
Risk information | ||
Gross exposure | 1.8 | 2.5 |
Net exposure | 0.2 | 0.5 |
Corporates | Other | ||
Risk information | ||
Gross exposure | 0.2 | 0.2 |
Net exposure | kr 0.2 | kr 0.2 |
Risk information - Market risk
Risk information - Market risk (Details) kr in Millions | 12 Months Ended | |
Dec. 31, 2019SEK (kr) | Dec. 31, 2018SEK (kr) | |
Risk information | ||
VAR horizon period (in years) | 2 years | |
Market risk | ||
Risk information | ||
Confidence level for VAR calculation | 99.00% | |
VAR for own funds | ||
Risk information | ||
Market risk amount | kr 18 | kr 14 |
Market risk appetite | 100 | 100 |
VAR for own funds | Maximum | ||
Risk information | ||
Market risk amount | 100 | |
VAR for liquidity portfolio | ||
Risk information | ||
Market risk amount | 10 | 8 |
Market risk appetite | 50 | 50 |
VAR for liquidity portfolio | Maximum | ||
Risk information | ||
Market risk amount | 50 | |
sVaR | ||
Risk information | ||
Market risk amount | 123 | 97 |
Aggregated risk measure | ||
Risk information | ||
Market risk amount | 452 | 742 |
Market risk appetite | 1,100 | 1,100 |
Aggregated risk measure | Maximum | ||
Risk information | ||
Market risk amount | 1,100 | |
Interest rate risk regarding changes in the economic value of SEK's portfolio (EVE) | ||
Risk information | ||
Market risk amount | 252 | 188 |
Market risk appetite | kr 500 | 500 |
Risk change (in basis points) | 100 | |
NII risk together with risk to NII from cross-currency basis spreads | ||
Risk information | ||
Market risk amount | kr 255 | 237 |
Market risk appetite | kr 350 | |
Interest rate risk regarding changes in future net interest income (NII) | ||
Risk information | ||
Risk change (in basis points) | 100 | |
Risk to NII from cross currency basis spreads | ||
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 357 | 297 |
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 456 | 606 |
Risk change (in basis points) | 20 | |
Cross currency basis spread risk | ||
Risk information | ||
Market risk amount | kr 278 | 212 |
Market risk exposure limit | 450 | 450 |
Currency risk | ||
Risk information | ||
Market risk amount | 4 | 8 |
Market risk exposure limit | kr 15 | kr 15 |
Assumed change in all foreign currency positions | 10.00% | |
Interest-rate volatility risk | ||
Risk information | ||
Market risk amount | kr 50 | |
Market risk exposure limit | 200 | |
Tenor basis spread risk | ||
Risk information | ||
Market risk amount | kr 87 | |
Risk change (in basis points) | 10 | |
Tenor basis spread risk | Minimum | ||
Risk information | ||
Lending and borrowing which is not swapped to three month tenor (in months) | 1 month | |
Tenor basis spread risk | Maximum | ||
Risk information | ||
Lending and borrowing which is not swapped to three month tenor (in months) | 6 months |
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, 2019 | Dec. 31, 2018 |
Risk information | ||
Percentage of increase in market interest rate | 1.00% | 1.00% |
Impact from one percentage point increase in market interest rate | kr (227) | kr (115) |
Impact from one percentage point increase in market interest rate for instruments measured at fair value through profit or loss | kr 295 | kr 353 |
Percentage of decrease in market interest rate | 1.00% | 1.00% |
Impact from one percentage point decrease in market interest rate | kr 569 | kr 187 |
Impact from one percentage point decrease in market interest rate for instruments measured at fair value through profit or loss | (281) | (364) |
Foreign currencies | ||
Risk information | ||
Impact from one percentage point increase in market interest rate | (87) | 59 |
Impact from one percentage point increase in market interest rate for instruments measured at fair value through profit or loss | 167 | 258 |
Impact from one percentage point decrease in market interest rate | 304 | (29) |
Impact from one percentage point decrease in market interest rate for instruments measured at fair value through profit or loss | (157) | (272) |
SKR | ||
Risk information | ||
Impact from one percentage point increase in market interest rate | (140) | (174) |
Impact from one percentage point increase in market interest rate for instruments measured at fair value through profit or loss | 128 | 95 |
Impact from one percentage point decrease in market interest rate | 265 | 216 |
Impact from one percentage point decrease in market interest rate for instruments measured at fair value through profit or loss | kr (124) | kr (92) |
Risk information - Foreign curr
Risk information - Foreign currency position (Details) - Currency risk kr in Millions | Dec. 31, 2019SEK (kr)$ / kr$ / kr฿ / kr¥ / kr£ / kr€ / kr | Dec. 31, 2018SEK (kr)$ / kr฿ / kr¥ / kr£ / kr€ / kr |
EUR | ||
Risk information | ||
Exchange rate | € / kr | 10.4474 | 10.2626 |
Share at year-end (as a %) | 1.00% | 1.00% |
Currency position | kr (160) | kr (165) |
USD | ||
Risk information | ||
Exchange rate | $ / kr | 9.3283 | 8.9674 |
Share at year-end (as a %) | 2.00% | 1.00% |
Currency position | kr 318 | kr 188 |
JPY | ||
Risk information | ||
Exchange rate | ¥ / kr | 0.0857 | 0.0812 |
Share at year-end (as a %) | 1.00% | 1.00% |
Currency position | kr (115) | kr (185) |
GBP | ||
Risk information | ||
Exchange rate | £ / kr | 12.2457 | 11.3683 |
Share at year-end (as a %) | 0.00% | 1.00% |
Currency position | kr (87) | kr (133) |
MXN | ||
Risk information | ||
Exchange rate | $ / kr | 0.4947 | |
Share at year-end (as a %) | 0.00% | |
Currency position | kr (86) | |
THB | ||
Risk information | ||
Exchange rate | ฿ / kr | 0.3118 | 0.2755 |
Share at year-end (as a %) | 1.00% | 1.00% |
Currency position | kr (109) | kr (120) |
Other currency | ||
Risk information | ||
Share at year-end (as a %) | 0.00% | 1.00% |
Currency position | kr (16) | kr 282 |
Foreign currencies | ||
Risk information | ||
Share at year-end (as a %) | 5.00% | 6.00% |
Currency position | kr (255) | kr (133) |
Currency positions excluding unrealized changes in fair value | kr 5 | kr 0 |
Risk information - Assets and l
Risk information - Assets and liabilities in foreign currencies (Details) - SEK (kr) kr in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Risk information | ||
Assets | kr 317,296 | kr 302,033 |
Liabilities | 298,214 | 283,794 |
Currency risk | ||
Risk information | ||
Assets | 317,296 | 302,033 |
Liabilities | 298,214 | 283,794 |
Currency risk | Foreign currencies | ||
Risk information | ||
Assets | 204,840 | 216,355 |
Liabilities | kr 205,117 | kr 229,880 |
Risk information - Liquidity re
Risk information - Liquidity reserve (Details) - Liquidity risk - SEK (kr) kr in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | |
Risk information | |||
New lending capacity, target | 2 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 42.4 | kr 23.3 | |
Credit facility with the Swedish National Debt Office | |||
Risk information | |||
Credit facility, granted by the government | 125 | kr 125 | 125 |
SKR | |||
Risk information | |||
Liquidity Reserve | 27.7 | 10.1 | |
EUR | |||
Risk information | |||
Liquidity Reserve | 5.6 | 6.3 | |
USD | |||
Risk information | |||
Liquidity Reserve | 7.7 | 6.5 | |
Other currency | |||
Risk information | |||
Liquidity Reserve | 1.4 | 0.4 | |
Securities issued or guaranteed by sovereigns, central banks or multilateral development banks | |||
Risk information | |||
Liquidity Reserve | 18 | 12.2 | |
Securities issued or guaranteed by sovereigns, central banks or multilateral development banks | SKR | |||
Risk information | |||
Liquidity Reserve | 4.7 | 1.5 | |
Securities issued or guaranteed by sovereigns, central banks or multilateral development banks | EUR | |||
Risk information | |||
Liquidity Reserve | 4.8 | 3.8 | |
Securities issued or guaranteed by sovereigns, central banks or multilateral development banks | USD | |||
Risk information | |||
Liquidity Reserve | 7.1 | 6.5 | |
Securities issued or guaranteed by sovereigns, central banks or multilateral development banks | Other currency | |||
Risk information | |||
Liquidity Reserve | 1.4 | 0.4 | |
Securities issued or guaranteed by municipalities or other public entities | |||
Risk information | |||
Liquidity Reserve | 13.3 | 7.8 | |
Securities issued or guaranteed by municipalities or other public entities | SKR | |||
Risk information | |||
Liquidity Reserve | 11.9 | 5.3 | |
Securities issued or guaranteed by municipalities or other public entities | EUR | |||
Risk information | |||
Liquidity Reserve | 0.8 | 2.5 | |
Securities issued or guaranteed by municipalities or other public entities | USD | |||
Risk information | |||
Liquidity Reserve | 0.6 | ||
Covered bonds issued by other institutions | |||
Risk information | |||
Liquidity Reserve | 11.1 | 3 | |
Covered bonds issued by other institutions | SKR | |||
Risk information | |||
Liquidity Reserve | kr 11.1 | 3 | |
Balances with other banks and National Debt Office | |||
Risk information | |||
Liquidity Reserve | 0.3 | ||
Balances with other banks and National Debt Office | SKR | |||
Risk information | |||
Liquidity Reserve | kr 0.3 |
Risk information - Liquidity in
Risk information - Liquidity investments - Remaining maturity (Details) - Liquidity risk | Dec. 31, 2019 | Dec. 31, 2018 |
Within 1 year | ||
Risk information | ||
Percentage of liquidity investments | 84.00% | 74.00% |
Later than one year and not later than three years | ||
Risk information | ||
Percentage of liquidity investments | 16.00% | 26.00% |
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, 2019 | Dec. 31, 2018 |
Risk information | ||
LCR under EU Commission's delegated act | 620.00% | 266.00% |
NSFR | 120.00% | 144.00% |
Liquidity risk | ||
Risk information | ||
LCR under EU Commission's delegated act | 620.00% | 266.00% |
NSFR | 120.00% | 144.00% |
Risk Information - Liquidity _2
Risk Information - Liquidity investments - By exposure type (Details) - Liquidity risk | Dec. 31, 2019 | Dec. 31, 2018 |
States and local governments | ||
Risk information | ||
Percentage of liquidity investments | 48.00% | 44.00% |
Financial institutions | ||
Risk information | ||
Percentage of liquidity investments | 26.00% | 27.00% |
Corporates | ||
Risk information | ||
Percentage of liquidity investments | 4.00% | 24.00% |
Covered bonds | ||
Risk information | ||
Percentage of liquidity investments | 18.00% | 5.00% |
Multilateral development banks | ||
Risk information | ||
Percentage of liquidity investments | 4.00% | 0.00% |
Risk Information - Liquidity _3
Risk Information - Liquidity investments - By region (Details) - Liquidity risk | Dec. 31, 2019 | Dec. 31, 2018 |
Sweden | ||
Risk information | ||
Percentage of liquidity investments | 39.00% | 36.00% |
North America | ||
Risk information | ||
Percentage of liquidity investments | 10.00% | 11.00% |
West European countries excl. Sweden | ||
Risk information | ||
Percentage of liquidity investments | 34.00% | 30.00% |
Asia excl. Japan | ||
Risk information | ||
Percentage of liquidity investments | 6.00% | 8.00% |
Japan | ||
Risk information | ||
Percentage of liquidity investments | 5.00% | 8.00% |
Middle East/ Africa/Turkey | ||
Risk information | ||
Percentage of liquidity investments | 4.00% | 5.00% |
Australia | ||
Risk information | ||
Percentage of liquidity investments | 1.00% | 2.00% |
Risk information - Contractual
Risk information - Contractual flows (Details) - SEK (kr) kr in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2018 | |
Risk information | |||
Total financial assets | kr 305,065 | kr 294,327 | |
Financial liabilities | (293,073) | (279,781) | |
Binding offers | 2,800 | 744 | |
Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 322,570 | 314,232 | |
Financial assets, discounting effect | (17,505) | (19,905) | |
Total financial assets | 305,065 | 294,327 | |
Financial liabilities, cash flow | (294,604) | (288,334) | |
Financial liabilities, discounting effect | 1,531 | 8,553 | |
Financial liabilities | (293,073) | (279,781) | |
Liquidity surplus (+) / deficit (-) | 27,967 | 25,897 | |
Binding offers | kr 2,800 | ||
Liquidity risk | Minimum | |||
Risk information | |||
Maturity of cash flow in deficit | 3 months | ||
Liquidity risk | Maximum | |||
Risk information | |||
Maturity of cash flow in deficit | 5 years | ||
Liquidity 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 | |||
Risk information | |||
Financial assets, cash flow | 14,439 | 16,640 | |
Financial liabilities, cash flow | (7,272) | (7,044) | |
Committed undisbursed loans cash flows | (7,094) | (142) | |
Liquidity surplus (+) / deficit (-) | 73 | 9,454 | |
Later than one month and not later than three months | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 42,664 | 37,535 | |
Financial liabilities, cash flow | (33,182) | (35,172) | |
Committed undisbursed loans cash flows | (1,944) | (2,743) | |
Liquidity surplus (+) / deficit (-) | 7,538 | (380) | |
Later than three months and not later than one year | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 73,379 | 57,089 | |
Financial liabilities, cash flow | (73,789) | (69,355) | |
Committed undisbursed loans cash flows | (13,733) | (15,177) | |
Liquidity surplus (+) / deficit (-) | (14,143) | (27,443) | |
Between 1 and 5 years | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 131,520 | 141,728 | |
Financial liabilities, cash flow | (158,492) | (149,855) | |
Committed undisbursed loans cash flows | (4,652) | (20,279) | |
Liquidity surplus (+) / deficit (-) | (31,624) | (28,406) | |
More than 5 years | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 60,568 | 61,240 | |
Financial liabilities, cash flow | (21,869) | (26,908) | |
Committed undisbursed loans cash flows | 27,424 | 38,340 | |
Liquidity surplus (+) / deficit (-) | 66,123 | 72,672 | |
Not later than 3 months / 90 days | Liquidity risk | |||
Risk information | |||
Liquidity surplus (+) / deficit (-) | 7,611 | 9,074 | |
Within 1 year | Liquidity risk | |||
Risk information | |||
Liquidity surplus (+) / deficit (-) | (6,532) | (18,369) | |
Not later than five years | Liquidity risk | |||
Risk information | |||
Liquidity surplus (+) / deficit (-) | (38,156) | (46,775) | |
Cash and cash equivalents | |||
Risk information | |||
Total financial assets | 1,362 | 2,416 | |
Cash and cash equivalents | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 651 | 2,042 | |
Financial assets, discounting effect | 711 | 374 | |
Total financial assets | 1,362 | 2,416 | |
Cash and cash equivalents | Not later than one month | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 651 | 2,042 | |
Treasuries/government bonds | |||
Risk information | |||
Total financial assets | 8,344 | 11,117 | |
Treasuries/government bonds | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 8,359 | 11,131 | |
Financial assets, discounting effect | (15) | (14) | |
Total financial assets | 8,344 | 11,117 | |
Treasuries/government bonds | Not later than one month | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 1,697 | 1,444 | |
Treasuries/government bonds | Later than one month and not later than three months | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 1,044 | 6,613 | |
Treasuries/government bonds | Later than three months and not later than one year | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 4,289 | 1,717 | |
Treasuries/government bonds | Between 1 and 5 years | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 1,329 | 1,357 | |
Other interest-bearing securities except loans | |||
Risk information | |||
Total financial assets | 53,906 | 48,665 | |
Other interest-bearing securities except loans | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 54,300 | 49,119 | |
Financial assets, discounting effect | (394) | (454) | |
Total financial assets | 53,906 | 48,665 | |
Other interest-bearing securities except loans | Not later than one month | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 6,581 | 9,262 | |
Other interest-bearing securities except loans | Later than one month and not later than three months | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 12,417 | 16,699 | |
Other interest-bearing securities except loans | Later than three months and not later than one year | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 26,399 | 8,340 | |
Other interest-bearing securities except loans | Between 1 and 5 years | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 8,903 | 14,818 | |
Loans in the form of interest-bearing securities | |||
Risk information | |||
Total financial assets | 43,627 | 36,781 | |
Loans in the form of interest-bearing securities | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 46,664 | 39,822 | |
Financial assets, discounting effect | (3,037) | (3,041) | |
Total financial assets | 43,627 | 36,781 | |
Loans in the form of interest-bearing securities | Not later than one month | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 332 | (492) | |
Loans in the form of interest-bearing securities | Later than one month and not later than three months | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 1,379 | 646 | |
Loans in the form of interest-bearing securities | Later than three months and not later than one year | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 6,106 | 3,165 | |
Loans in the form of interest-bearing securities | Between 1 and 5 years | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 26,369 | 27,835 | |
Loans in the form of interest-bearing securities | More than 5 years | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 12,478 | 8,668 | |
Loans to credit institutions | |||
Risk information | |||
Total financial assets | 27,010 | 27,725 | |
Loans to credit institutions | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 27,544 | 28,517 | |
Financial assets, discounting effect | (534) | (792) | |
Total financial assets | 27,010 | 27,725 | |
Loans to credit institutions | Not later than one month | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 486 | 124 | |
Loans to credit institutions | Later than one month and not later than three months | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 17,204 | 3,096 | |
Loans to credit institutions | Later than three months and not later than one year | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 1,928 | 15,458 | |
Loans to credit institutions | Between 1 and 5 years | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 6,334 | 7,843 | |
Loans to credit institutions | More than 5 years | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 1,592 | 1,996 | |
Loans to the public | |||
Risk information | |||
Total financial assets | 163,848 | 161,094 | |
Loans to the public | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 178,697 | 177,515 | |
Financial assets, discounting effect | (14,849) | (16,421) | |
Total financial assets | 163,848 | 161,094 | |
Loans to the public | Not later than one month | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 4,583 | 3,999 | |
Loans to the public | Later than one month and not later than three months | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 10,054 | 9,963 | |
Loans to the public | Later than three months and not later than one year | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 33,443 | 27,271 | |
Loans to the public | Between 1 and 5 years | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 86,241 | 87,564 | |
Loans to the public | More than 5 years | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 44,376 | 48,718 | |
Derivatives | |||
Risk information | |||
Total financial assets | 6,968 | 6,529 | |
Derivatives | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 6,355 | 6,086 | |
Financial assets, discounting effect | 613 | 443 | |
Total financial assets | 6,968 | 6,529 | |
Derivatives | Not later than one month | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 109 | 261 | |
Derivatives | Later than one month and not later than three months | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 566 | 518 | |
Derivatives | Later than three months and not later than one year | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 1,214 | 1,138 | |
Derivatives | Between 1 and 5 years | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 2,344 | 2,311 | |
Derivatives | More than 5 years | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 2,122 | 1,858 | |
Derivatives | Hedging instrument | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 1,450 | 19,318 | |
Financial assets, discounting effect | 1,171 | (1,964) | |
Total financial assets | 2,621 | 17,354 | |
Derivatives | Hedging instrument | Not later than one month | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | (8) | 429 | |
Derivatives | Hedging instrument | Later than one month and not later than three months | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 21 | 594 | |
Derivatives | Hedging instrument | Later than three months and not later than one year | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 432 | 2,912 | |
Derivatives | Hedging instrument | Between 1 and 5 years | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 372 | 9,782 | |
Derivatives | Hedging instrument | More than 5 years | Liquidity risk | |||
Risk information | |||
Financial assets, cash flow | 633 | 5,601 | |
Borrowing from credit institutions | |||
Risk information | |||
Financial liabilities | (3,678) | (2,247) | |
Borrowing from credit institutions | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (3,690) | (2,256) | |
Financial liabilities, discounting effect | 12 | 9 | |
Financial liabilities | (3,678) | (2,247) | |
Borrowing from credit institutions | Not later than one month | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (10) | 1 | |
Borrowing from credit institutions | Later than one month and not later than three months | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (3,680) | (567) | |
Borrowing from credit institutions | Later than three months and not later than one year | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (1,690) | ||
Debt securities issued | |||
Risk information | |||
Financial liabilities | (269,339) | (255,600) | |
Debt securities issued | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (283,861) | (278,756) | |
Financial liabilities, discounting effect | 14,522 | 23,156 | |
Financial liabilities | (269,339) | (255,600) | |
Debt securities issued | Not later than one month | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (6,284) | (6,946) | |
Debt securities issued | Later than one month and not later than three months | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (27,985) | (33,541) | |
Debt securities issued | Later than three months and not later than one year | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (72,297) | (66,570) | |
Debt securities issued | Between 1 and 5 years | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (155,386) | (145,134) | |
Debt securities issued | More than 5 years | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (21,909) | (26,565) | |
Derivatives | |||
Risk information | |||
Financial liabilities | (20,056) | (21,934) | |
Derivatives | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (7,053) | (7,322) | |
Financial liabilities, discounting effect | (13,003) | (14,612) | |
Financial liabilities | (20,056) | (21,934) | |
Derivatives | Not later than one month | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (978) | (99) | |
Derivatives | Later than one month and not later than three months | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (1,517) | (1,064) | |
Derivatives | Later than three months and not later than one year | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (1,492) | (1,095) | |
Derivatives | Between 1 and 5 years | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (3,106) | (4,721) | |
Derivatives | More than 5 years | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | 40 | (343) | |
Derivatives | Hedging instrument | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (1,960) | (175,598) | |
Financial liabilities, discounting effect | (1,177) | 12,426 | |
Financial liabilities | (3,137) | (163,172) | |
Derivatives | Hedging instrument | Not later than one month | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (8) | (14) | |
Derivatives | Hedging instrument | Later than one month and not later than three months | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | 30 | (2,934) | |
Derivatives | Hedging instrument | Later than three months and not later than one year | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (747) | (41,276) | |
Derivatives | Hedging instrument | Between 1 and 5 years | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | (1,096) | (119,575) | |
Derivatives | Hedging instrument | More than 5 years | Liquidity risk | |||
Risk information | |||
Financial liabilities, cash flow | kr (139) | kr (11,799) |
Transactions with related par_3
Transactions with related parties (Details) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
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 | 38.00% | 40.00% |
Swedish National Debt Office | ||
Transactions with related parties | ||
Credit facility | kr 125,000 | kr 125,000 |
EKN | ||
Transactions with related parties | ||
Remuneration to EKN for the guarantees paid | 0 | 0 |
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, 2019 | Dec. 31, 2018 | |
Transactions with related parties | ||
Assets | kr 18,335 | kr 17,769 |
Liabilities | 24 | 18 |
Interest income | 173 | 125 |
Swedish government | ||
Transactions with related parties | ||
Assets | 11,315 | 4,018 |
Liabilities | 24 | 18 |
Interest income | 16 | 0 |
Companies and organizations that are controlled through a common owner | ||
Transactions with related parties | ||
Assets | 7,020 | 13,751 |
Interest income | 157 | 125 |
Other liabilities | ||
Transactions with related parties | ||
Liabilities | 24 | 18 |
Other liabilities | Swedish government | ||
Transactions with related parties | ||
Liabilities | 24 | 18 |
Treasuries/government bonds | ||
Transactions with related parties | ||
Assets | 2,191 | 103 |
Interest income | 16 | 0 |
Treasuries/government bonds | Swedish government | ||
Transactions with related parties | ||
Assets | 2,191 | 103 |
Interest income | 16 | 0 |
Other interest-bearing securities except loans | ||
Transactions with related parties | ||
Assets | 600 | 6,847 |
Interest income | (4) | (24) |
Other interest-bearing securities except loans | Companies and organizations that are controlled through a common owner | ||
Transactions with related parties | ||
Assets | 600 | 6,847 |
Interest income | (4) | (24) |
Loans in the form of interest-bearing securities | ||
Transactions with related parties | ||
Assets | 1,699 | 1,699 |
Interest income | 21 | 19 |
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 | 1,699 |
Interest income | 21 | 19 |
Loans to credit institutions | ||
Transactions with related parties | ||
Assets | 2,665 | 2,623 |
Interest income | 87 | 77 |
Loans to credit institutions | Companies and organizations that are controlled through a common owner | ||
Transactions with related parties | ||
Assets | 2,665 | 2,623 |
Interest income | 87 | 77 |
Loans to the public | ||
Transactions with related parties | ||
Assets | 2,056 | 2,582 |
Interest income | 53 | 53 |
Loans to the public | Companies and organizations that are controlled through a common owner | ||
Transactions with related parties | ||
Assets | 2,056 | 2,582 |
Interest income | 53 | 53 |
Settlement claim against the State | ||
Transactions with related parties | ||
Assets | 9,124 | 3,915 |
Settlement claim against the State | Swedish government | ||
Transactions with related parties | ||
Assets | kr 9,124 | kr 3,915 |
Risk and capital management (De
Risk and capital management (Details) kr in Millions | 12 Months Ended | 24 Months Ended | ||||
Dec. 31, 2019SEK (kr)item | Dec. 31, 2018SEK (kr) | Dec. 31, 2021SEK (kr) | Dec. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2018 | |
Risk and capital management | ||||||
Capital ratio | 20.60% | 20.10% | ||||
Tier 1 capital ratio | 20.60% | 20.10% | ||||
Common Equity Tier 1 capital ratio | 20.60% | 20.10% | ||||
Leverage ratio | 5.70% | 5.60% | ||||
Minimum requirement for own funds and eligible liabilities (MREL) | 8.30% | 7.20% | ||||
New lending capacity | 5 months | 5 months | ||||
LCR | 620.00% | 266.00% | ||||
NSFR | 120.00% | 144.00% | ||||
VAR | kr 18 | kr 14 | ||||
Total capital ratio requirement | 16.40% | 16.70% | ||||
Number of lines of defense for risk management and risk control | item | 3 | |||||
Period for capital adequacy assessments | 3 years | |||||
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 | 4.00% | |||||
Minimum | ||||||
Risk and capital management | ||||||
Senior non-preferred debt to be issued | kr 11,000 | |||||
Total capital ratio excess over capital adequacy requirement, target | 2.00% | |||||
Common Equity Tier I ratio excess over capital adequacy requirement, target | 4.00% | |||||
Credit risk | ||||||
Risk and capital management | ||||||
Risk (in terms of allocated capital) | kr 7,300 | 7,000 | ||||
Confidence level for VAR calculation | 99.90% | |||||
Market risk | ||||||
Risk and capital management | ||||||
Risk (in terms of allocated capital) | kr 1,100 | 1,100 | ||||
Confidence level for VAR calculation | 99.00% | |||||
Operational risk | ||||||
Risk and capital management | ||||||
Risk (in terms of allocated capital) | kr 200 | kr 200 |
Risk and capital management - R
Risk and capital management - Risk descriptions (Details) - SEK (kr) kr in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Risk and capital management | ||
LCR | 620.00% | 266.00% |
NSFR | 120.00% | 144.00% |
Liquidity risk | ||
Risk and capital management | ||
Maturity of LCR assets | 2 days | |
LCR | 620.00% | 266.00% |
NSFR | 120.00% | 144.00% |
Liquidity 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 | Minimum | EUR | ||
Risk and capital management | ||
LCR | 110.00% | |
Liquidity 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 | 452 | kr 742 |
Aggregated risk measure | Maximum | ||
Risk and capital management | ||
Market risk exposure | 1,100 | |
VAR for own funds | ||
Risk and capital management | ||
Market risk exposure | 18 | 14 |
VAR for own funds | Maximum | ||
Risk and capital management | ||
Market risk exposure | 100 | |
VAR for liquidity portfolio | ||
Risk and capital management | ||
Market risk exposure | 10 | kr 8 |
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% |