Press release -
Year-end report 2022: Steady growth in turbulent year
Kommuninvest i Sverige AB today publishes its year-end report for 2022. In a turbulent year characterized by high inflation, rising interest rates, volatile markets and the Russian war against Ukraine, Kommuninvest continued to grow in a stable and efficient way.
The operating profit for 2022 was SEK –53.1 (476.1) million. The negative outcome is mainly explained by the risk tax, at a cost of SEK 257.3 million, and by unrealized changes in market value of SEK –209.5 (43.9) million. Because Kommuninvest intends to hold its assets and liabilities to maturity, these values are not normally realized. The operating income, excluding the risk tax, amounted to SEK 419.6 (425.9) million.
Kommuninvest's lending at year’s end stood at SEK 482.5 (460.7) billion. This corresponded to an annual growth rate of 4.7 (4.0) percent for 2022. That was, compared to the last 10-year period, a relatively low figure. Lending growth was held back by, among other things, good liquidity in the local government sector as well as a reduced pace of investment due to rising interest and construction costs.
Kommuninvest’s market share increased slightly. Around 59 (58) percent of the total borrowing of the local government sector was at the end of 2022 financed via Kommuninvest.
The sustainable lending products continued to develop. The share of Green loans in relation to total lending, on the basis of volumes disbursed, increased so that it at year’s end amounted to 14 (13) per cent. Social Sustainability Loans by the end of the year had reached 16 granted investment projects with a total loan volume of SEK 1.7 billion.
Kommuninvest continued to meet, by some margin, all internal and external capital requirements. The total capital ratio at year's end was 454.1 (397.1) per cent. The leverage ratio was 14.23 (15.36) per cent.
– I am happy to conclude that we, despite the turbulence in 2022, managed to continue the development of Kommuninvest. We were stable and consistent in our work. Progress was made in the funding operations, within sustainability and in the restructuring programme aimed at making our operations more long-term efficient, says Tomas Werngren, CEO of Kommuninvest.
The comparative figures in brackets above refer to 2021 or the turn of the year 2021/2022.
The report: Kommuninvest Year-end report 2022
For further information
Tomas Werngren, CEO, tel: 070-645 06 69, e-mail: tomas.werngren@kommuninvest.se
Patrick Nimander, CFO, tel: 072-254 94 60, e-mail: patrick.nimander@kommuninvest.se
David Ljung, Head of Communications, tel: 073-068 45 45, e-mail: david.ljung@kommuninvest.se
Topics
Kommuninvest is a municipal cooperation for efficient and sustainable financing of housing, infrastructure, schools, hospitals etc. Together we get better loan terms than each one individually. Since the start in 1986, the Kommuninvest collaboration has helped reduce the local government sector’s borrowing costs by many billion SEK. Currently, 294 municipalities and regions are members of this voluntary cooperation. With a balance sheet total of approx. SEK 550 billion (USD ~53 billion), Kommuninvest is the largest lender to the local government sector and one of the ten largest credit institutions in Sweden. The head office is located in Örebro.
