21.8.2025 11:00:00 EEST | Finnvera Oyj | Half Year financial report
Finnvera Group, Stock Exchange Release 21 August 2025
Finnvera Group's Half-Year Report 1 January-30 June 2025
Positive economic outlook at the start of the year, the volume of domestic and export financing granted by Finnvera increased - Finnvera Group's result EUR 150 million
Finnvera Group, summary H1/2025 (vs. H1/2024 or 31 December 2024)
- The result for the period under review was a solid EUR 150 million (85) - The reduced loss provisions for export credit guarantee and special guarantee operations in particular contributed to a better result than in the comparison period. The Group's net interest income was 10% lower and net fee and commission income 18% lower than in the comparison period. Loss provisions for domestic loans and guarantees increased by EUR 10 million between January and June, most significantly due to the increase in loss provisions for large individual exposures. A total of EUR 60 million in loss provisions for export credit guarantee and special guarantee operations could be reversed, especially in relation in cruise shipping companies and exposures in Russia.
- The results of all business operations were profitable: The result of the SME and midcap business of the parent company, Finnvera plc, was EUR 9 million (9), while the result of the Large Corporates business was EUR 123 million (53). The result of Finnvera's subsidiary, Finnish Export Credit Ltd, was EUR 17 million (23).
- The self-sustainability target set for Finnvera's activities was achieved both for the period under review and cumulatively.
- Balance sheet total EUR 15.6 billion (14.8) increased by 5% during the period under review.
- Contingent liabilities EUR 16.9 bn (14.9) increased by 13%.
- Non-restricted equity and the assets of the State Guarantee Fund, i.e., the reserves available for covering the Group's potential losses totalled EUR 2.3 billion (2.1) increased by 7%.
- Expected credit losses based on the balance sheet items were reduced by 4% to EUR 1.1 billion (1.1).
- The NPS (net promoter score) index measuring customer satisfaction was still very high at 77 points, even though 9 points below the comparison period level (86).
- Outlook for 2025 remains unchanged: The business outlook for cruise shipping companies has improved, while exposures in Russia have decreased further. According to the Interim Management Report for Q1/2025 published in May, the credit loss risk of export financing liabilities remains high, which causes uncertainty about Finnvera Group's financial performance in 2025.
Finnvera Group H1/2025 (Vs. H1/2024 or 31 Dec 2024) | |
Result 150 MEUR (H1/2024: 85) change 76% | Balance sheet total 15.6 EUR bn (31 Dec 2024: 14.8) change 5% |
Contingent liabilities 16.9 EUR bn (31 Dec 2024: 14.9) change 13% | Non-restricted equity the State Guarantee Fund |
Cost/income ratio 22.5% (H1/2024: 16.4) change 6.1 pp. | NPS index 77 (H1/2024: 86) change -9 points |
Comments from CEO Juuso Heinilä
"As we expected, the economic outlook at the start of 2025 proved better than in the previous year, and Finnvera's financing for SMEs, midcap enterprises, and export projects increased. Although the economy's outlook remains positive, the uncertainty created by geopolitics and trade-related disputes continues to increase. This instability has hindered the progress of some investments and impacted the demand for products and services provided by Finnish export companies as well as domestic orders.
In January-June, Finnvera granted domestic loans and guarantees amounting to EUR 0.6 billion (0.5). Guarantees for loans granted by banks accounted for nearly 80% of this financing. Finnvera's six-month pilot loan programme, which concluded at the end of March, granted a total of EUR 20 million to micro-enterprise growth projects. This loan pilot was a successful experiment. We are considering the continuation of the pilot and looking for ways to increase the supply by commercial financing providers for small companies as well. Between January and June, EUR 53 million (34) was granted in Climate and Digital Loans, developed in cooperation with the European Investment Fund. We aim to allocate loans that utilise the InvestEU guarantee to strongly growth-oriented companies, and we work closely with banks to secure the financing needed by growth companies.
In accordance with Finnvera's strategy, 91% of domestic financing was allocated to start-ups, growing and internationalising companies and their growth, investment, transfer of ownership and export projects. There has been a high number of bankruptcies in Finland during the first half of the year. The situation of Finnvera's client companies who are experiencing financial difficulties seems to have gradually stabilised, and the growth in their payment delays has levelled off as well - although this level remains slightly higher than average. However, the situation is not expected to threaten the self-sustainability of domestic operations.
Large corporates were in the process of preparing more export transactions in different sectors than during the comparison period. Between January and June, Finnvera granted EUR 3.7 billion (1.8) in export credit guarantees, export guarantees and special guarantees. The outlook for the cruise shipping sector, which is significant in terms of Finnvera's liabilities, has continued to improve. I am very pleased that we were able to arrange the necessary financing arrangement for the Icon 4 vessel ordered from Meyer Turku Shipyard - this will create sustainable conditions for the construction of vessels in Finland, both now and in the future, and it will also stabilise the prospects of the Finnish maritime industry from a financing perspective. With the new guarantee arrangement signed by Finnvera and the European Investment Fund (EIF), Finnvera can now grant additional export credit guarantees to Ukraine. During the period under review, the amount of export credits granted by Finnish Export Credit Ltd increased as a result of large individual financing arrangements - Finnvera's subsidiary granted export credits amounting to EUR 3.1 billion (0.0) in total.
The Finnvera Group's financial result was a solid EUR 150 million (85), and all of its business areas also made profitable results. The Group's cost/income ratio remains at a very good level, and we have been able to boost Finnish exports and growth through our efficiently tuned operations. 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.
During the period under review, our clients' willingness to recommend us stood at a high 77 points, even though the high proportion of rejected micro-enterprise loan applications, among other things, had some impact on our NPS score. Client satisfaction is a very important indicator for us. Our clients' and key stakeholders' trust was also reflected in the stellar results that Finnvera received in the reputation survey carried out in the spring, which we were very satisfied with.
We will continue to implement our strategy as planned and focus on strengthening various areas, such as our operations specialising in the growth and internationalisation of SME business and Finnvera's role in promoting export transactions. In terms of operational development and the competitiveness of export financing, the very important Government proposal on the overall reform of legislation concerning Finnvera was submitted to Parliament at the beginning of June. This legislative reform will strengthen Finnvera's ability to act as a provider of financing for exports and growth. At the same time, the supervision of Finnvera's operations will be transferred to the Financial Supervisory Authority.
Despite the turbulence in our global operating environment, we anticipate that Finnvera will be more active this year than in the previous year in both the SME and midcap business as well as in Large Corporates business."
Finnvera Group, Financing granted and Exposure
Financing granted, EUR bn | H1/2025 | H1/2024 | Change, % |
Domestic loans and guarantees | 0.6 | 0.5 | 14% |
Export credit guarantees, export guarantees and special guarantees | 3.7 | 1.8 | 101% |
Export credits | 3.1 | 0.0 | - |
The fluctuation in the amount of granted financing is influenced by the timing of individual major financing cases. | |||
Exposure, EUR bn | 30 Jun 2025 | 31 Dec 2024 | Change, % |
Domestic loans and guarantees | 2.9 | 2.9 | 1% |
Export credit guarantees, export guarantees and special guarantees | 22.2 | 21.1 | 5% |
- Drawn exposure | 14.1 | 14.3 | -1% |
- Undrawn exposure | 3.8 | 4.4 | -14% |
- Binding offers | 4.3 | 2.4 | 80% |
Parent company's total exposure | 25.1 | 24.0 | 5% |
Of which the share of cruise shipping sector | 12.6 | 11.1 | 13% |
- Drawn exposure | 7.4 | 7.6 | -3% |
- Undrawn exposure | 2.6 | 2.5 | 1% |
- Binding offers | 2.7 | 1.0 | 168% |
Export credits, contract portfolio and offers in total | 12.6 | 10.7 | 18% |
- Drawn exposure | 5.6 | 6.5 | -14% |
- Undrawn exposure | 3.8 | 3.7 | 4% |
- Binding offers | 3.2 | 0.5 | 550% |
The exposure includes binding credit commitments as well as recovery and guarantee receivables. 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. | |||
Financial performance
The Finnvera Group's result for January-June 2025 was a solid EUR 150 million (85). EUR 50 million of the result was generated in the first quarter of the year and EUR 99 million during the second quarter. The Group's result for January-June increased by 76% from the comparison period, particularly due to the decrease in loss provisions for export credit guarantee and special guarantee operations. During the period under review, the Group was able to reverse the loss provisions for export credit guarantee and special guarantee operations by EUR 60 million as the business outlook for the cruise industry improved and the exposures in Russia continued to decrease. Net interest income, net fee and commission income, and the changes in the value of items recognised at fair value through profit or loss were at a lower level than in the comparison period.
The results of all business areas, i.e. the SME and midcap business, Large Corporates business and Finnvera's subsidiary Finnish Export Credit Ltd, were profitable during the period under review.
The Group's net interest income decreased by 10 per cent from the comparison period to EUR 62 million (69), which was particularly due to the lower market interest rate. Net fee and commission income decreased by 18 per cent, totalling EUR 83 million (101). The decrease in net fee and commission income in the period under review was mostly due to an individual refund of guarantee premiums and the adjustment of reinsurance premium settlement accruals, both deriving from early repayments in export credit guarantee and special guarantee operations.
The changes in the Group's value of items recognised at fair value through profit or loss and net income from foreign currency operations amounted to EUR 3 million (10).
The Group's realised credit losses and change in expected losses were EUR 39 million positive during the review period, whereas the corresponding item was EUR 60 million negative during the comparison period.
Expected losses, or loss provisions, decreased by EUR 50 million, whereas in the comparison period they increased by EUR 16 million. This was particularly due to the reversal in loss provisions for export credit guarantee and special guarantee operations and the improved outlook on corporate insolvencies. Realised credit losses, EUR 24 million (54), were 55 per cent lower than in the comparison period. Credit losses from domestic loans and guarantees increased by 23 per cent to EUR 28 million (23), which was due to individual losses realised during the period under review that were higher than the losses in the comparison period. The credit losses from export credit guarantee and special guarantee operations were EUR 3 mil-lion positive, whereas the realised losses during the comparison period were EUR 31 million. The positive net credit losses during the period under review were due to valuation changes in receivables from export credit and special guarantee operations. One larger, individual credit loss was realised in export financing during the comparison period. Credit loss compensation from the State covering losses in domestic financing totalled EUR 14 million (10).
After the result of the period under review, the parent company's reserves for domestic operations as well as export credit guarantee and special guarantee operations for covering potential future losses amounted to a total of EUR 2,010 million (1,878). 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 441 million (432), and the reserve for export credit guarantee and special guarantee operations as well as the assets of the State Guarantee Fund for covering losses, totalling EUR 1,569 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 248 million (230) at the end of June.
At the end of June, non-performing exposure totalled EUR 258 million (168) in domestic financing and EUR 97 million (110) in export financing. Non-performing exposure in domestic financing accounted for 8.8 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 June, the Group's Tier 1 capital adequacy ratio stood at 24.1% (25.5) for domestic financing and 6.2% (6.4) for 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. The capital adequacy calculation of export financing was revised during the period under review. Calculating capital adequacy in a manner similar to that 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 | H1/2025 | H1/2024 | Change | Q2/2025 | Q1/2025 | Change % | 2024 |
Net interest income | 61 | 69 | -10% | 32 | 30 | 6% | 139 |
Net fee and commission income | 83 | 101 | -18% | 45 | 38 | 19% | 198 |
Gains and losses from financial instruments carried at fair value through P&L and foreign exchange gains and losses | 3 | 10 | -67% | -2 | 5 | - | 8 |
Net income from investments and other operating income | 0 | 0 | 8% | 0 | 0 | - | 0 |
Operational expenses | -30 | -27 | 11% | -15 | -15 | -1% | -53 |
Other operating expenses, depreciation and amortisation | -4 | -3 | 33% | -2 | -2 | 54% | -7 |
Realised credit losses and change in expected credit losses, net | 39 | -60 | - | 44 | -4 | - | -49 |
Operating result | 154 | 91 | 70% | 102 | 53 | 93% | 236 |
Income tax | -4 | -6 | -25% | -2 | -2 | -6% | -8 |
Result | 150 | 85 | 76% | 99 | 50 | 98% | 228 |
Outlook for financing
Currently, the outlook for financing-related demand in 2025 remains positive for Finnvera's domestic financing and especially for its export financing. However, the uncertainty in Finnvera's international operating environment has increased, which affects large investments and can also be seen in the operations of the entire business sector. This may also be reflected in the demand for financing.
Despite this uncertainty, we encourage companies to continue their growth investments and enter new markets. We complement the financial markets with guarantees to banks and other financing partners and, if necessary, with our loans. An evaluation of the loan pilot for enabling the growth of micro-enterprises, which concluded at the end of March, will be made to determine the availability of financing and its impacts on business development. This evaluation is carried out by the VATT Institute for Economic Research.
We encourage companies to strive for the growth opportunities presented by the clean transition and digitalisation with the help of our climate and digital loans and other incentives for sustainable financing. In accordance with the renewed and expanded agreement with the European Investment Fund, Finnvera has the opportunity to finance corporate investments by providing around EUR 400 million in climate and digital loans that fall within the scope of the InvestEU guarantee. We also aim to increase the number of medium-sized midcap enterprises in Finland, in cooperation with the Tesi Group.
We expect the demand for export financing to increase among several sectors. Based on the ongoing financing negotiations for export transactions, there will be more transactions in both 2025 and 2026 than in the previous year. We will continue to enable exports to Ukraine with broader authorisation as part of Finland's national reconstruction plan for Ukraine. The goal of Finnvera's Trade Facilitators is to actively bring together foreign buyers and Finnish exporters and promote trade with export financing, in close collaboration with Business Finland.
Outlook for 2025 remains unchanged
The business outlook for cruise shipping companies has improved, while exposures in Russia have decreased further. According to the Interim Management Report for Q1/2025 published in May, Finnvera's credit loss risk for export financing liabilities remains high, leading to uncertainty concerning the 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
This stock exchange release is a summary of the essential points of the Finnvera Group's half-year report for January-June 2025. The half-year report has been attached in its entirety as a PDF file to this release, and it is also available in Finnish and English on the company's website at www.finnvera.fi/financial_reports.
Half-year report 1 January-30 June 2025 (PDF)
Distribution:
NASDAQ Helsinki Ltd, London Stock Exchange, the principal media, www.finnvera.fi
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
