21 October 2010
EKF issued new guarantees totalling DKK 6.6 billion in first half-year of 2010, taking its total exposure to DKK 44.5 billion. To this should be added DKK 5.4 billion under managed schemes. The large number of new guarantees issued in first half-year of 2010 generated premium income of almost DKK 600 million and a profit of DKK 278 million - EKF’s best-ever interim results.
EKF’s exposure has never been greater and has increased by almost 60% since the end of first half-year of 2009, at which time it was DKK 28.3 billion. The strong activity at EKF during second half-year of 2009 and first half-year of 2010 follows in the wake of the international financial crisis, which put a serious damper on the risk appetite of private investors.
The need for backing from EKF for export transactions has been especially great and although the situation is looking up, the market still has not recovered from the financial crisis. This is clearly evidenced by the large number of guarantees issued in first half-year of 2010, although the level of activity has decreased slightly since second half-year of 2009.
“We are pleased that we have been able to continue assisting Danish business and industry when it comes to financing export orders from all over the world in 2010. In first half-year of 2010, EKF has been involved in a range of both large and small export transactions – transactions that, more often than not, would have been impossible without EKF”, says Anette Eberhard, EKF CEO.
At this point, there are no indications that the demand for export credit facilities is decreasing, and EKF expects the strong demand to continue for the remainder of 2010 and probably into 2011.
So far, EKF has not suffered any significant losses due to the economic crisis. This is highly satisfactory, but EKF expects the loss ratio to increase at some point.
The impressive interim results of DKK 278 million are driven by premium income from the large number of new guarantees issued and a solid return on EKF’s funds.
The press: CEO Anette Eberhard via Director of Communications Mogens Agger Tang on telephone +45 20 18 39 76.
Companies and organisations: Senior Director, Erling Frandsen on telephone +45 35 46 61 85.