Eksportfinans ASA
Good third quarter results for Eksportfinans

Eksportfinans ASA 

07.11.2012 15:22
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Eksportfinans performed well in the first nine months of 2012. Both net
interest income and liquidity developed as expected. 

PRESS RELEASE

November 7, 2012



Good third quarter results for Eksportfinans

Eksportfinans performed well in the first nine months of 2012. Both net
interest income and liquidity developed as expected. 



Business activities

The third quarter of 2012 was the first period of operations after
Eksportfinans, on July 1, 2012, finalized the process of adapting to the
situation where the state-owned company Export Credit Norway (Eksportkreditt
Norge AS) took over the Norwegian export financing scheme that had been handled
by Eksportfinans since 1978. Eksportfinans is now managing its operations based
on the existing portfolio of assets, liabilities and other commitments. 



'The last months have demonstrated that we have secured the necessary expertise
and skills to manage the business going forward. Approximately 55 employees are
currently taking care of the interests of the Company and its stakeholders,'
comments President and CEO Gisèle Marchand. 



Results

Net interest income was NOK 986 million for the first nine months of 2012,
compared to NOK 1,105 million for the first nine months of 2011. Comprehensive
income was negative NOK 12,926 million due to a significant market price
increase of Eksportfinans' own debt. This led to a reduction of the related
accumulated unrealized gains in the balance sheet, which in turn resulted in a
corresponding unrealized loss in the income statement. Comprehensive income for
the first nine months of last year was NOK 374 million. 



Profit excluding unrealized gains and losses and losses hedged by the Portfolio
Hedge Agreement amounted to NOK 650 million in the first nine months of 2012,
compared to NOK 678 million for the same period of 2011. 



The capital adequacy ratio was 25.4 percent at September 30, 2012, compared to
16.5 percent at the same time last year and 19.4 percent at December 31, 2011. 



Purported declaration of default

Eksportfinans has received a purported declaration of default, with possible
proceedings, from a holder of the institution's Japanese bonds on November 6,
2012. The sender of the purported declaration is the same investor who sent a
similar declaration received by Eksportfinans on December 19, 2011. 



Eksportfinans will vigorously resist on the basis that there is no default, and
the Company is therefore of the opinion that this declaration is of no affect. 
This opinion is supported by analysis from external counsel. Eksportfinans has
therefore also concluded that such purported declaration does not constitute a
cross default under Eksportfinans' other financial obligations. 



Investor conference call

On Wednesday November 7, 2012, at 10 am New York / 3 pm London / 4 pm CET,
Eksportfinans will hold a conference call following the release of the third
quarter report. See below for dial-in options. 





Facts about Eksportfinans ASA

Eksportfinans manages a solid portfolio of loans to the Norwegian export
industry and foreign buyers of Norwegian capital goods. The loans are
guaranteed by GIEK (The Norwegian Guarantee Institute for Export Credits)
and/or banks. The company also manages a substantial portfolio of international
securities. The business is funded through bonds and commercial paper issued in
the international capital markets. Eksportfinans was established in 1962 and is
owned by banks operating in Norway and the Ministry of Trade and Industry on
behalf of the Norwegian government. Entering 2012 total assets amounted to
almost NOK 200 billion. The company is staffed by highly skilled individuals,
around 55 in total, and is located in Dronning Maud's gate (Vika) in central
Oslo. 



Key figures:

                                                                             
First nine months 2012 First nine months 2011 

New loans disbursed                                    NOK 0.9 billion         
 NOK 24.8 billion 

New bond debt issued                                NOK 0.0 billion          
NOK 45.4 billion 

Total assets at end of period                     NOK 171.3 billion            
         NOK 226.4 billion 

Core capital adequacy at end of period                21.5 %                   
              12.8 % 

Capital adequacy at end of period                   25.4 %                     
                   16.5 % 

Net interest income                                      986 million           
       NOK 1,105 million 

Profit/(loss) for the period                         NOK (12,926) million     
NOK 374 million 

Profit excluding unrealized

gains/losses on financial instruments

and excluding losses covered by PHA             NOK 650 million                
     NOK 678 million 



Eksportfinans' third quarter report 2012 and other financial reports are
available at www.eksportfinans.no. 



Investor conference call dial-in options:

Wednesday November 7, 2012, at 10am NY / 3pm London / 4pm CET



Please join by calling:



Local - Japan: +81 (0)3 5767 9607

Local - Norway: +47 2156 9640

Local - Singapore: +65 3158 1127

Local - Switzerland: +41 (0)22 592 7552

Local - UK: +44 (0)20 3147 4971

Local - USA: +1 212 444 0889



Participant Passcode: 622372



The call will be recorded and a replay made available.



For further information, please contact:



President and CEO Gisèle Marchand,

tel: +47 22 01 23 70 / +47 415 17 489,

e-mail: gma@eksportfinans.no



EVP Direcor of Staff Elise Lindbæk,

tel: +47 22 01 22 64 / +47 905 18 250,

e-mail: el@eksportfinans.no



EVP Chief Financial Officer Geir Ove Olsen,

tel: +47 22 01 23 05 / +47 900 92 326,

e-mail: goo@eksportfinans.no



For more information on Eksportfinans, please go to www.eksportfinans.no.



Forward-looking statements

The statements contained herein constitute 'forward-looking statements' within
the meaning of Section 27A of the U.S. Securities Act of 1933, as amended and
Section 21E of the U.S. Securities Exchange Act of 1934, as amended. These
forward-looking statements rely on a number of assumptions concerning future
events. These forward-looking statements involve known and unknown risks,
uncertainties and other factors, many of which are outside of our control, that
may cause actual results to differ materially from any future results expressed
or implied from the forward-looking statements. As a result, the
forward-looking statements included herein should not be regarded as a
representation that the plans and objectives discussed herein will be achieved.
Eksportfinans disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
News Source: NASDAQ OMX



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Language:     English
Company:      Eksportfinans ASA
              
               
              Denmark
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ISIN:         DK0003440287
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