Finnvera reports positive future demand despite financing drop

HELSINKI - Finnvera Group, Finland’s official Export Credit Agency, has released its 2024 financial statements indicating a decrease in financing levels compared to the previous year, but maintaining a positive outlook on future demand. The company’s 2024 result was EUR 228 million, a decline from EUR 433 million in 2023.

Finnvera’s net interest income grew by 20%, and net fee and commission income by 12%. The balance sheet total increased by 3% to EUR 14.8 billion, while contingent liabilities decreased by 9% to EUR 14.9 billion. The Group’s non-restricted equity and the State Guarantee Fund’s assets, which cover potential future losses, rose by 12% to EUR 2.1 billion.

The company saw a reduction in expected credit losses on the balance sheet by 4% to EUR 1.1 billion. Client satisfaction, measured by the Net Promoter Score, improved significantly, reaching 79, a 15-point increase from the previous year.

In 2024, Finnvera granted EUR 0.9 billion in domestic loans and guarantees, which is less than half of the EUR 1.8 billion in the previous year. The largest share of funding went to industry, with significant regional contributions from the Helsinki Metropolitan Area and Lapland. Financing for green transition and digitalization projects under the InvestEU guarantee program totaled EUR 73 million.

Export credit guarantees, export guarantees, and special guarantees amounted to EUR 2.9 billion, a 47% decrease from the previous year. The largest export credit guarantee agreement in Finnvera’s history was signed in April 2024, concerning Nokia (HE:NOKIA)’s deliveries for the Indian 5G network worth USD 1.5 billion.

The subsidiary Finnish Export Credit Ltd granted EUR 0.6 billion in export credits, a slight increase from EUR 0.5 billion in 2023. The report highlighted a successful year for Finnvera despite the economic challenges, with part of the positive result attributed to the partial reversal of loss provisions, primarily related to cruise shipping companies.

Looking forward, the Finnish economy is expected to grow in 2025, with a forecasted increase in demand for Finnvera’s domestic financing and export credit guarantees. Finnvera’s new strategy for 2025–2028 focuses on increasing the volume of Finnish exports and the number of exporters, as well as enabling growth and new business.

This analysis is based on a press release statement from Finnvera Group, which detailed its financial performance and outlook. Finnvera’s role in supporting Finnish enterprises and sharing risks in export financing remains critical for the nation’s economic development.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.