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EKF: Business beyond expectations

by dbdh

Small and medium-sized enterprises (SMEs) constitute a larger share than ever of EKF´s interim report. An increased risk in Russia and Ukraine, however, no actual loss.

EKF issued new guarantees worth almost DKK 10 billion during the first half year of 2014. The largest guarantee of all during the half year was worth approximately DKK 3 billion and covered Gemini, an offshore wind farm to be established outside the coast of the Netherlands using wind turbines from Siemens Wind Power.

The result for the half year amounted to DKK 406 million which was slightly higher than expected. The positive result was due to a combination of higher premium income and lower provisions than expected.

”For the first half year almost all key figures were slightly above budget. Nothing dramatic but an improvement nevertheless. We are pleased because this means that EKF contributes to generating growth and creating jobs in Danish export companies”, says Anette Eberhard, CEO at EKF.

So far EKF has not suffered any loss as a consequence of Ukraine´s poor economy and the sanctions towards Russia. The risk related to a number of business transactions in the two countries has, however, increased during the year. EKF has therefore decided to make an additional provision worth approximately DKK 80 million to cover potential losses.

A substantial increase in the number of SMEs
Three out of four customers in EKF are small and medium-sized companies. The most popular solution among SMEs is the Working Capital Guarantee which helps the companies secure working capital. By the end of the half year EKF had issued Working Capital Guarantees worth a total of DKK 1,8 billion – the highest amount ever.