Finnvera Group, Stock Exchange Release 15 May 2025
Interim Management Statement 1 January–31 March 2025
Volume of domestic and export financing granted by Finnvera increased – Finnvera Group’s result was EUR 50 million
Finnvera Group, summary Q1/2025 (vs. Q1/2024 or 31 December 2024)
- Result 50 MEUR (54) – All business operations made profit during the period under review, even though at the Group level net interest income and net fee and commission income were lower than in the previous year. During the period under review, loss provisions for domestic operations increased slightly. Loss provisions for export credit guarantee and special guarantee operations could be partially reversed during the period under review.
- Results by business operations: Result of parent company Finnvera plc’s SME and midcap business stood at 3 MEUR (6) and that of Large Corporates business at 39 MEUR (34). The impact of Finnvera’s subsidiary, Finnish Export Credit Ltd, on the Group’s result was 9 MEUR (13).
- The cumulative self-sustainability target set for Finnvera’s operations was achieved.
- Balance sheet total EUR 14.9 bn (14.8) increased by 1%.
- Contingent liabilities EUR 17.0 bn (14.9) increased by 14%.
- Non-restricted equity and the assets of the State Guarantee Fund, i.e., the reserves available for covering the Group’s potential losses EUR 2.2 bn (2.1) increased by 2%.
- Expected credit losses based on the balance sheet items, standing at EUR 1.1 bn (1.1) were at the same level as at the end of 2024, change 0%.
- At 78 points, the NPS index (net promoter score), measuring customer satisfaction, remained at a high level but still 12 points below the record level for the comparison period (90).
- Outlook for 2025 remains unchanged: The business outlook for cruise shipping companies has continued to improve, and the Group’s exposure in Russia has decreased. However, in accordance with the outlook of the report of the board of directors and financial statements 2024 published in February, the credit loss risk of export financing liabilities remains high, which causes uncertainty about Finnvera Group’s financial performance in 2025.
Finnvera Group Q1/2025 (Vs. Q1/2024 or 31 Dec 2024)
Result
50 MEUR
(54), change -6%
Balance sheet total
14.9 EUR bn
(14.8), change 1%
Contingent liabilities
17.0 EUR bn
(14.9), change 14%
Non-restricted equity and the assets of
the State Guarantee Fund2.2 EUR bn(2.1), change 2%
Expense-income ratio
22.3%
(18.2), change 4.2 pp.
NPS index(Net Promoter Score)
78
(90), change -12 points
Comments from CEO Juuso Heinilä:
”As we expected, the year 2025 has started positively. Finnvera’s financing for SMEs and midcap enterprises increased in January–March, as we anticipated at the end of last year. We monitor closely how the US tariff decisions, the counter-tariffs imposed on them and the prospect of a trade war affect the courage of Finnish companies to seek growth. We hope that uncertainty or rapid changes will not cut growth or undermine the courage of companies to enter new markets.
In January–March, Finnvera granted domestic loans and guarantees amounting to EUR 0.3 billion (0.2). Financing increased from the comparison period both in terms of the number of companies financed and in euros. In particular, the six-month loan pilot for micro-enterprises’ growth projects, which ended at the end of March, increased the number of financing decisions. We received a total of about one thousand loan applications, on about half of which we made a positive financing decision. A total of EUR 13 million was granted in loans by the end of March. In January–March, we granted EUR 23 million (15) of Climate and Digital Loans, drawing on the InvestEU facility, developed in cooperation with the European Investment Fund.
Of the domestic financing granted by Finnvera, 94 per cent was allocated to the focus areas in accordance with the company strategy to start-ups, growing and internationalising companies and their growth, investment, transfer of ownership and export projects. Although the number of bankruptcies in Finland was at a high level during the beginning of the year, the growth in Finnvera’s payment delays levelled off, and the situation of companies in financial difficulties seems to be stabilising gradually.
In January–March, Finnvera granted export credit guarantees, export guarantees and special guarantees amounting to EUR 2.7 billion (1.6). Large enterprises have more export transactions in the preparation process, which anticipates that the current year will be stronger than the previous year for leading export companies and sectors. Export financing typically targets the export trade of capital goods, and the volume of financing is always affected by the timing of individual large export transactions. The outlook for the cruise shipping sector, which is significant in terms of Finnvera’s liabilities, has continued to improve. The granting of export credits started to grow, and Finnish Export Credit Ltd granted EUR 2.3 billion (0.0) in export credits during the period under review.
Finnvera Group made a strong profit in January–March. The Group’s result was EUR 50 million (54), and all business operations also made profitable results. The Group’s net interest income and net fee and commission income decreased from the comparison period and loss provisions for domestic financing increased slightly, but the loss provisions for export credit guarantee and special guarantee operations could be partially reversed.
In 2025–2028, our strategy will place even stronger emphasis on increasing the volume of Finnish exports and the number of exporters as well as enabling growth and new business. The achievement of these goals will be supported by our competent personnel and management as well as client-oriented digitalisation. The implementation of the strategy progressed well during the period under review. Among other things, we will strengthen the operations specialised in the international growth of SME business and Finnvera’s role in promoting export transactions.
Overall, our customer satisfaction rating was at an excellent level of 78 points even though the high proportion of negative loan decisions for micro-enterprises was reflected to some extent in the NPS ratings given by the clients. The Finnish Government Programme includes the overhaul of the legislation applicable to Finnvera, which is extremely important in terms of developing Finnvera’s operations and the competitiveness of export financing. The aim is to submit a Government proposal for a new law to Parliament in May.
The turbulence of the global operating environment will affect the prospects of Finnish companies in 2025. Tariff decisions will have a negative impact on the Finnish economy, but they are not estimated to turn the economic growth in a negative direction. We anticipate that the current year will be more active for Finnvera both in the SME and midcap business and in Large Corporates business than the previous year.”
Finnvera Group Financing granted, EUR bn
Jan–Mar/2025
Jan–Mar/2024
Change, %
Domestic loans and guarantees
0.3
0.2
26%
Export credit guarantees, export guarantees and special guarantees
2.7
1.6
74%
Export credits
2.3
0.0
-
The fluctuation in the amount of granted financing is influenced by the timing of individual
major financing cases.
The credit risk for the subsidiary Finnish Export Credit Ltd’s export credits is covered by the
parent company Finnvera plc’s export credit guarantee.
Exposure, EUR bn
31 Mar 2025
31 Dec 2024
Change, %
Domestic loans and guarantees
2.9
2.9
0%
Export credit guarantees, export guarantees and special guarantees
22.9
21.1
9%
- Drawn exposure
14.9
14.3
4%
- Undrawn exposure
4.1
4.4
-7%
- Binding offers
4.0
2.4
65%
Parent company's total exposure
25.8
24.0
8%
The cruise shipping sector's share
of parent company's total exposure
13.5
11.1
21%
- Drawn exposure
7.8
7.6
2%
- Undrawn exposure
2.3
2.5
-8%
- Binding offers
3.4
1.0
238%
Export credits, contract portfolio
and offers in total
12.6
10.7
18%
- Drawn exposure
6.2
6.5
-5%
- Undrawn exposure
3.6
3.7
0%
- Binding offers
2.8
0.5
472%
The exposure includes binding credit commitments as well as recovery and guarantee receivables.
Financial performance
Finnvera Group’s financial result for January–March 2025 was EUR 50 million (54). The results of all business operations, i.e. SME and midcap business, Large Corporates business and Finnvera’s subsidiary Finnish Export Credit Ltd, showed a profit. The Group’s result decreased by 6 per cent from the comparison period, which was particularly due to lower net interest income and lower net fee and commission income. Changes in loss provisions, which have had a significant impact on the Group’s result in recent years, improved the result.
The Group’s realised credit losses and change in expected credit losses totalled EUR 4 million (12) in the period under review. Realised credit losses totalled EUR 16 million (16). Credit losses from domestic loans and guarantees increased by 28 per cent to EUR 19 million (15), which was due to higher individual losses than in the comparison period. The credit losses from export credit guarantee and special guarantee operations were EUR 3 million positive, whereas the realised losses during the comparison period were approximately EUR 1 million. Positive credit losses were due to valuation changes in recovery receivables. Expected losses, or loss provisions, decreased by EUR 2 million, whereas in the comparison period they increased by EUR 3 million. Loss provisions for export credit guarantee and special guarantee operations could be partially reversed as the exposure in Russia decreased and the business outlook for the cruise shipping sector improved. This had a positive impact on the result. At the end of March, the exposure in Russia totalled EUR 24 million, compared with EUR 64 million at the end of 2024. On the other hand, loss provisions for domestic financing increased slightly during the period under review. Credit loss compensation from the State covering losses in domestic financing totalled EUR 10 million (7).
The Group’s net interest income decreased by 14 per cent from the comparison period to EUR 30 million (35), which was particularly due to the lower market interest rate. Net fee and commission income decreased by 12 per cent, totalling EUR 38 million (43). The decrease in net fee and commission income was mostly due to an individual refund of guarantee premiums and a reinsurance premium settlement accrual deriving from early repayments in export credit guarantee and special guarantee operations.
The changes in the Group’s value of items carried at fair value through profit or loss and net income from foreign currency operations amounted to EUR 5 million (6).
After the result of the period under review the parent company’s reserves for domestic operations and export credit guarantee and special guarantee operations for covering potential future losses amounted to a total of EUR 1,919 million (1,878) at the end of March. These reserves, which also cover the credit risk of export credits granted by the subsidiary, consisted of the following: the reserve for domestic operations, EUR 431 million (432) as well as the reserve for export credit guarantee and special guarantee operations and assets of the State Guarantee Fund for covering losses, totalling EUR 1,488 million (1,446). The State Guarantee Fund is an off-budget fund whose assets include the assets accumulated from the activities of Finnvera’s predecessor organisations. Under the Act on the State Guarantee Fund, the Fund covers the result showing a loss in the export credit guarantee and special guarantee operations if the reserve funds in the company’s balance sheet are not sufficient. The non-restricted equity of the subsidiary Finnish Export Credit Ltd amounted to EUR 239 million (230) at the end of March.
At the end of March, non-performing exposure totalled EUR 263 million (168) in domestic financing and EUR 102 million (110) in export financing. Non-performing exposure in domestic financing accounted for 9.2 per cent (6.1) of the total exposure and in export financing for 0.4 per cent (0.5) of the total exposure.
At the end of March, the capital adequacy ratio, Tier 1, stood at 24.4 per cent (25.5) in domestic financing and at 6.6 per cent (6.4) in export financing, taking into account the company’s reserve for export credit guarantee and special guarantee operations and the assets of the State Guarantee Fund. Capital adequacy calculation related to export financing has been revised during the period under review. Calculating capital adequacy in a manner applied to banking is not a suitable option for export financing, considering Finnvera’s special industrial policy purpose as a promoter of exports and the fact that the State is responsible for any export financing losses that the reserve on the company’s balance sheet and the assets of the State Guarantee Fund cannot cover.
Finnvera Group
Financial performance
Jan–Mar/2025MEUR
Jan–Mar /2024MEUR
ChangeMEUR
Change%
2024MEUR
Net interest income
30
35
-5
-14%
139
Net fee and commission income
38
43
-5
-12%
198
Gains and losses from financial instruments carried at fair value through P&L and foreign exchange gains and losses
5
6
-1
-21%
8
Net income from investments and other operating income
0
0
1
-125%
0
Operational expenses
-15
-14
-1
8%
-53
Other operating expenses, depreciation and amortisation
-2
-1
0
4%
-7
Realised credit losses and change in expected credit losses, net
-4
-12
7
-64%
-49
Operating result
53
57
-4
-8%
236
Income tax
-2
-3
1
-32%
-8
Result
50
54
-3
-6%
228
Risk position of financing
At the end of March, the exposure for domestic loans and guarantees amounted to EUR 2,908 million (2,912), decreasing by EUR 5 million from the turn of the year. The general deterioration in the economic situation has affected the quality of the credit portfolio, but so far substantial credit losses have been avoided. Risks pertaining to individual clients have remained at a reasonable level, although payment delays in euros have continued to grow compared to the turn of the year. Of the exposure, 61 per cent fall within the intermediate credit risk categories B- – BB+.
At the end of March, the total exposure arising from export credit guarantees, export guarantees and special guarantees was EUR 22,941 million (21,084). Approximately 80 per cent of the outstanding export credit guarantees and special guarantees totalling EUR 18,990 million (18,683) and binding offers totalling EUR 3,950 million (2,401) were associated with transactions in EU Member States and OECD countries. Altogether, 27 per cent of the exposure was in risk category BBB-, which reflects investment grade, or in better risk categories. There were no significant changes in the risk distribution of export credit guarantees compared to the end of 2024. The greatest risks are still related to the cruise shipping and shipyard sector.
Other events during the period under review
New members to Finnvera’s Board of Directors and Supervisory Board
On 26 March 2025, Finnvera’s Annual General Meeting elected Licentiate of Technology Hannu Kemppainen, Executive Director at Business Finland, as the new member of Finnvera’s Board of Directors. Jan Vapaavuori, LL.M., will continue as the chair of Finnvera’s Board of Directors.
The new members elected to Finnvera’s Supervisory Board were Member of Parliament Henrik Vuornos, Economist Tatu Knuutila from SAK, Director Petri Vuorio from Confederation of Finnish Industries (EK) and Development Specialist Arja Parkkinen as representative of Finnvera’s personnel. Sofia Vikman, Member of Parliament, continues to chair the Supervisory Board.
Outlook for 2025 remains unchanged
The business outlook for cruise shipping companies has continued to improve, and the Group’s exposure in Russia has decreased. However, in accordance with the outlook of the report of the board of directors and financial statements 2024 published in February, the credit loss risk of export financing liabilities remains high, which causes uncertainty about Finnvera Group’s financial performance in 2025.
Further information:
Juuso Heinilä, CEO, tel. +358 29 460 2576
Ulla Hagman, CFO, tel. +358 29 460 2458
The Interim Management Statement Q1/2025 is available as a PDF file on the company’s website at www.finnvera.fi/financial_reports in Finnish and English.
The Interim Management Statement is unaudited.
Distribution:
NASDAQ Helsinki Ltd, London Stock Exchange, the principal media, www.finnvera.fi
The report is available in Finnish and English at www.finnvera.fi/financial_reports
About Finnvera Oyj
Finnvera provides financing for the start, growth and internationalisation of enterprises and guarantees against risks arising from exports. Finnvera strengthens the operating potential and competitiveness of Finnish enterprises by offering loans, guarantees and other services associated with the financing of exports. The risks included in financing are shared between Finnvera and other providers of financing. Finnvera is a specialised financing company owned by the State of Finland and it is the official Export Credit Agency (ECA) of Finland. www.finnvera.fi/eng
Attachments
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Finnvera-Group-Interim-Management-Statement-1-January-31-March-2025.pdf
