Report of the
Board of Directors
and Financial
Statements
2024
Finnvera Group
Finnvera Group’s Report of the Board of
Directors and Financial Statements 2024
Level of financing reduced from previous year, expectations
of future demand positive – Result EUR 228 million
Finnvera Group, summary 2024 (vs. 2023)
-
Result 228 MEUR (433) – The result for the period under review was
strong for all business operations. Net interest income grew by 20% and
net fee and commission income by 12%. During the period under review,
Finnvera was able to partially reverse loss provisions for export credit
guarantees and special guarantees, which have had a significant impact
on the company’s result in recent years, especially those relating to cruise
shipping companies. The reference period saw larger reversals of loss
provisions than the period under review.
-
Result by business operations: Result of parent company Finnvera plc’s
SME and midcap business stood at 23 MEUR (55) and that of Large Cor-
porates business at 173 MEUR (351). The impact of Finnvera’s subsidiary,
Finnish Export Credit Ltd, on the Group’s result was 32 MEUR (27).
-
The cumulative self-sustainability target set for Finnvera’s operations was
achieved.
-
The balance sheet total EUR 14.8 bn (14.3) increased by 3%.
-
Contingent liabilities decreased by 9% and stood at EUR 14.9 bn (16.4).
-
Non-restricted equity and the assets of the State Guarantee Fund,
which provide the Group’s reserves for covering potential future losses,
increased by 12% and totalled EUR 2.1 bn (1.9).
-
Expected credit losses on the balance sheet were reduced by 4% to
EUR 1.1 bn (1.2).
-
The NPS index (Net Promoter Score) used to measure client satisfaction
improved by 15 points to 79 (64).
-
Outlook for 2025: The business outlook for cruise shipping companies
continued to improve in 2024. The credit loss risk of export financing
liabilities remains high, however, which causes uncertainty concerning the
Finnvera Group’s financial performance in 2025.
Comments from CEO Juuso Heinilä:
”Year 2024 was challenging for the Finnish economy, even if a cautious
improvement could be observed in the early part of the year. Finland’s key
export markets were also affected by a downturn, which dampened Finnish
export companies’ prospects. While interest rates dropped and inflation
decreased, geopolitical uncertainty persisted.
Finnvera granted EUR 0.9 billion (1.8) in domestic loans and guarantees in
2024. The significant decrease in financing from the previous year is due to a
major individual amount of working capital financing granted to a large corpo-
rate in the reference period. The level of SME and midcap financing was similar
to the reference period. The largest share of funding by sector was granted
to industry, and the regional drivers were the Helsinki Metropolitan Area and
Lapland. Financing for investments did not reach the previous year’s level. The
level of financing for corporate acquisitions and transfers of ownership was
also lower than in previous years.
A total of EUR 73 million (36) was granted in climate and digitalisation loans
intended for green transition and digitalisation projects under the InvestEU
guarantee programme. These loans were first granted in June 2023. To ensure
that companies of all sizes have access to financing, we launched loans for
micro-enterprises’ growth as a pilot project at the beginning of October 2024.
Over three months, EUR 6 million in these loans was granted to micro-enter-
prises. The pilot project will continue until the end of March 2025, after which
we will reassess the availability of financing for small companies.
In accordance with Finnvera’s strategy, 92% of domestic financing was allo-
cated to start-ups, SMEs seeking growth and internationalisation, investments,
transfers of ownership, export and delivery projects, and SME guarantee
projects. The long period of economic uncertainty eroded SMEs’ liquidity
and increased the number of applications for corporate restructuring and
bankruptcy.
Finnvera granted export credit guarantees, export guarantees and special guar-
antees amounting to EUR 2.9 billion (5.4). The lower amount of export financ-
ing reflected the post-cyclical nature of Finnish exports and reduced demand
for exports. Annual fluctuations are also always influenced by the timing of
large individual export transactions. In particular, financing was granted to
companies in the telecommunications, cruise shipping and mining sectors.
FINNVERA GROUP
YEAR 2024 (VS. 2023)
79
(64), change 15 points
NPS INDEX
(NET PROMOTER SCORE)
228
(433), change -47%
MEUR
RESULT
14.8
(14.3), change 3%
EUR bn
BALANCE SHEET TOTAL
17.3
(19.4), change -2,1 pp.
%
EXPENSE-INCOME RATIO
14.9
(16.4), change -9 %
EUR bn
CONTINGENT
LIABILITIES
2.1
(1.9), change 12%
EUR bn
NON-RESTRICTED EQUITY AND
THE ASSETS OF THE STATE
GUARANTEE FUND
2
Finnvera Group, Stock Exchange Release, 21 February 2025
Largest export credit guarantee agreement related to telecommunications
sector in Finnvera’s history was signed in April concerning Nokia’s deliveries for
the Indian 5G network worth USD 1.5 billion. In the mining sector, we financed
Sibanye-Stillwater’s Keliber lithium project with a Finance Guarantee, which can
be granted for domestic investments that support exports. In the energy sector,
we financed Wärtsilä’s deliveries of energy storage systems for solar and
wind power projects in the United States and Chile. These mining and energy
projects, whose total value was approx. EUR 500 million, were the first export
financing projects compliant with Finnvera’s climate criteria. Towards the end
of the year, Finnvera participated in Meyer Turku’s construction financing that
amounted to around EUR 1 billion for the Icon 3 ship.
Finnish Export Credit Ltd, which is Finnvera’s subsidiary, granted EUR 0.6 billion
in export credits (0.5) in 2024. While the demand for export credits increased
slightly, it remains significantly lower than in pre-pandemic years. An increasing
number of export transactions are financed by a bank to which Finnvera grants
a guarantee.
2024 was a successful year for Finnvera. The Finnvera Group’s result was
EUR 228 million (433). The SME and midcap business, export credit guarantee
and special guarantee operations, and subsidiary Finnish Export Credit Ltd
turned a profit. Finnvera also built up its reserves for possible future losses.
The business outlook for the cruise shipping sector, which is important for
Finnvera’s export credit guarantee exposure, has continued to improve. Repay-
ments have also helped to reduce exposure relating to Russia. In recent years,
Finnvera has been able to partially reverse loss provisions for export financing,
which have had a significant impact on the Group’s financial performance
since 2020. The reversal of loss provisions has especially impacted the good
results for the last two financial periods.
As a result of crises affecting the global economy, the difficulties faced by
some companies around the world and in various sectors have built up to form
an insurmountable obstacle. During the period under review, Finnvera incurred
major export credit guarantee losses in two cases. Our mission is to bear the
risks of export companies. Our core business enjoys a high level of profitability,
building up our reserves and creating preconditions for enabling companies’
growth and exports. However, the credit loss risks of exposure relating to
export financing remain high, which may affect Finnvera’s future financial
performance and reserves.
We continued to develop our operations and services in line with our strategy
in 2024. The ongoing upgrade of our basic information systems supports the
digitalisation of services and a good client experience. Our client satisfaction
reached an exceptionally high level, as did our personnel satisfaction. We
invested in accelerating the growth of midcap enterprises in close cooperation
with the European Investment Bank and the Tesi Group, and worked together
with the Team Finland network and Business Finland to promote exports. We
maintained export financing expertise, especially in SMEs and midcap enter-
prises, and we brought out new export financing instruments to ensure the
availability of financing. The overhaul of the legislation applicable to Finnvera,
which is included in the Government Programme and which is extremely
important in terms of developing Finnvera’s operations and the competitive-
ness of export financing, was circulated for comments.
We advanced our sustainability measures based on our goals in 2024. We
joined the Net-Zero ECA Alliance of export credit agencies, which enables
us to focus on the sustainability theme and enhance our impact through
international cooperation. We developed Finnvera’s sustainability reporting as
planned.
In 2025–2028, our new strategy adopted by the company’s Board of Directors
at the end of the year will emphasise increasing the volume of Finnish exports
and the number of exporters as well as enabling growth and new business.
The achievement of these goals will be supported by our competent personnel
Finnvera Group
Financing granted, EUR bn 2024 2023 Change, %
Domestic loans and guarantees 0.9 1.8 -51%
Export credit guarantees,
export guarantees and
special guarantees
2.9 5.4 -47%
Export credits 0.6 0.5 15%
Exposure, EUR bn 31 Dec 2024 31 Dec 2023 Change, %
Domestic loans and guarantees 2.9 3.0 -4%
Export credit guarantees,
export guarantees and
special guarantees
21.1 23.4 -10%
- Drawn exposure 14.3 14.2 1%
- Undrawn exposure 4.4 4.5 -2%
- Binding offers 2.4 4.7 -49%
Parent company's total exposure 24.0 26.4 -9%
Contract portfolio of
export credits
10.2 11.0 -8%
- Drawn exposure 6.5 7.3 -11%
- Undrawn exposure 3.7 3.7 -2%
3
Finnvera Group, Stock Exchange Release, 21 February 2025
and management as well as client-oriented digitalisation. Finnvera contributes
to ensuring that Finnish companies are able to invest, develop their products
and get their products out around the world. This is a prerequisite for ensuring
that we can continue to look after our welfare in Finland in the future.”
Financial performance
The Finnvera Group’s result for 2024 was EUR 228 million (433). Finnvera’s
result was strong for all business operations. EUR 46 million of the total result
was generated in the last quarter of the year, and EUR 182 million between
January and September. Compared to the year before, the result was most
significantly affected by the changes in the amount of expected losses, or
loss provisions. Loss provisions have had a significant impact on the Group’s
result in recent years. Finnvera was able to partially reverse its loss provisions
for export credit guarantees and special guarantees in 2024, especially those
relating to cruise shipping companies. In the reference period, Finnvera was
able to reverse more loss provisions than in the review period, which led to an
exceptionally good result in 2023. The result for the review period was also
significantly affected by higher net interest income and fee and commission
income as well as changes in the value of items recognised at fair value
through profit or loss.
The Group’s realised credit losses and change in expected losses totalled
EUR 49 million during the review period, whereas the corresponding item was
positive with a value of EUR 210 million during the reference period. The real-
ised credit losses of EUR 121 million (128) were slightly lower than in the refer-
ence period. During the period under review, two larger individual export credit
guarantee compensations were paid. Expected losses, or loss provisions,
decreased by EUR 51 million (320), of which the reversal of loss provisions
for export credit guarantee and special guarantee operations accounted for
EUR 74 million (376). Credit loss compensation from the State covering losses
in domestic financing totalled EUR 20 million (18).
Compared to the year before, the Group’s net interest income increased by
20% to EUR 139 million (115) and net fee and commission income by 12%
to EUR 198 million (177). The higher level of market interest rates was a
particularly important factor affecting the increased net interest income. The
most significant factors increasing the net fee and commission income were
recognition of guarantee premiums for reimbursed export and special guar-
antees and prepayments of individual liabilities as well as the reimbursement
of insurance premiums received as a result of the cancellation of reinsurance
contracts. 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 8 million (-9).
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 1,878 million (1,676) at the end of December. 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 432 million (405) as
well as the reserve for export credit guarantees and special guarantees and
the assets of the State Guarantee Fund for covering losses, totalling EUR 1,446
million (1,272). 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 230 million (198) at the end of December.
Outlook for financing
The worst of the recession is behind us, and the Finnish economy is forecast to
start growing in 2025. Great expectations are currently placed on the improved
outlook for exports as well as the growth and renewal of the entire business
sector.
We expect that the demand for Finnvera’s domestic financing will increase,
including more and more financing for investments, as the economic upturn
drives a need for more production capacity. Due to the long-standing uncer-
tainty, the economic position of many companies is weak. Finnvera’s role is
stressed in arranging financing and sharing the risk with other providers of
financing.
Finnvera Group
Financial performance
2024
MEUR
2023
MEUR
Change
%
Q4/2024
MEUR
Q4/2023
MEUR
Change
%
Net interest income 139 115 20% 37 33 10%
Net fee and commission income 198 177 12% 50 40 24%
through P&L and foreign exchange gains and losses
8 -9 - -2 -5 -54%
Net income from investments and other operating income 0 1 -95% 0 0 -23%
Operational expenses -53 -50 6% -16 -14 12%
Other operating expenses, depreciation and amortisation -7 -5 35% -3 -1 118%
Realised credit losses and change in expected credit losses, net -49 210 - -19 209 -
Operating result 236 439 -46% 47 262 -82%
Income tax -8 -6 45% -1 -1 4%
Result 228 433 -47% 46 261 -82%
4
Finnvera Group, Stock Exchange Release, 21 February 2025
We encourage companies to grasp the growth opportunities created by the
green transition with the help of our climate and digitalisation loans and
other incentives for sustainable financing. We will continue piloting loans
for micro-enterprises’ growth projects until the end of March 2025. While we
expect the high demand for the loans to continue, we will reassess small com-
panies’ access to financing after the conclusion of the pilot. Finnvera strives to
be active wherever our input is needed to arrange access to financing.
We expect that the demand for export credit guarantees will start growing in
2025 and that this growth will continue in 2026. Exportation of investment
goods, which is vital for Finland’s exports, is post-cyclical and the increase
in demand will be reflected in export credit guarantees granted by Finnvera
with a delay. Positive signs can already be seen in several sectors, however.
Finnvera plays an important role in granting guarantees for long-term trade. We
encourage export companies to seek growth in emerging and new markets
and to rely on Finnvera for financing export transactions and risk hedging. We
will continue to grant export credit guarantees to Ukraine as part of Finland’s
national reconstruction programme for the country.
Finnvera, the Tesi Group and Business Finland will step up their cooperation
with the goal of boosting companies’ growth, exports, and the impact of financ-
ing. We will continue to work actively together with Team Finland and promote
the growth and internationalisation of companies, also while the renewal of
public export functions is underway. Finnvera’s Trade Facilitators strive to bring
together foreign buyers and Finnish exporters and to promote trade using
Finnvera’s export financing together with Business Finland. The aims also
include increasing the number of midcap enterprises in Finland.
Outlook for 2025
The business outlook for cruise shipping companies continued to improve in
2024. The credit loss risk of export financing liabilities remains high, however,
which causes uncertainty concerning the Finnvera Group’s financial perfor-
mance in 2025.
Further information:
Juuso Heinilä, CEO, tel. +358 29 460 2576
Ulla Hagman, CFO, tel. +358 29 460 2458
Finnvera publishes the Report of the Board of Directors and its financial state-
ments as an XHTML file compliant with the European Single Electronic Format
(ESEF) requirements. Auditor Ernst & Young Ltd has issued an independent
assurance report that provides reasonable assurance concerning Finnvera’s
ESEF financial statements. The XHTML file is available in Finnish and English.
Finnvera additionally publishes the report and financial statements in PDF
format.
Finnvera Group’s Report of the Board of Directors and Financial Statements
1 January – 31 December 2024 (PDF)
Distribution:
NASDAQ Helsinki Ltd, London Stock Exchange, key media,
www.finnvera.fi
The report is available in Finnish and English at
www.finnvera.fi/financial_reports
5
Finnvera Group, Stock Exchange Release, 21 February 2025
6
Report of the
Board of Directors
CEO’s review
Financial
Statements
Sustainability
Business
operations
Governance
Notes to the
financial statements
ANNUAL REPORT 2024
Report of the Board of Directors
and Financial Statements
-
Report of the Board of Directors .................................................. 7
-
Board of Directors’ proposal for measures
concerning the result for the financial period ........................... 21
-
Key figures ................................................................................... 22
-
Financial Statements .................................................................. 24
-
Consolidated comprehensive income statement ..................... 25
-
Balance sheet .............................................................................. 26
-
Contingent liabilities ................................................................... 27
-
Change in equity .......................................................................... 28
-
Statement of cash flows ............................................................ 30
-
Notes to the financial statements ............................................. 32
• A Accounting principles .......................................................... 32
• B Risk management ................................................................ 42
• C Segment information ........................................................... 50
• D Notes to the income statement .......................................... 55
• E Notes to the balance sheet .................................................. 60
• F Personnel and management ............................................... 79
• G Shares and holdings ............................................................ 81
• H Key financial performance indicators ................................83
-
Signatures.................................................................................... 84
-
Auditor’s Report........................................................................... 85
-
Statement by the Supervisory Board ......................................... 90
14.8
0.62.90.9
14.9 2.1
(14.3) (16.4)
(5.4)(1.8) (0.5)
(1.9)
FINNVERA GROUP
EUR bn
Mrd. eMrd. eMrd. e
EUR bn EUR bn
BALANCE SHEET TOTAL
LOANS AND GUARANTEES
RESULT
EXPORT CREDIT GUARANTEES,
EXPORT GUARANTEES AND
SPECIAL GUARANTEES
EXPORT CREDITS
CONTINGENT
LIABILITIES
NON-RESTRICTED EQUITY AND
THE ASSETS OF THE STATE
GUARANTEE FUND
RESERVES FOR DOMESTIC
FINANCING, MEUR*
RESERVES FOR EXPORT
FINANCING, MEUR*
31 Dec 2024
31 Dec 2024
* includes the result for the period
* includes the result for the period
432
405
31 Dec 2023
31 Dec 2023
500
400
300
200
100
0
1,500
1,200
900
600
300
0
(24.3)
%
25.5
DOMESTIC FINANCING
5.7
(5.6)
CAPITAL ADEQUACY RATIO, TIER 1
%
EXPORT FINANCING
Report of the
Board of Directors
Finnvera’s goal is, by means of
financing, to promote the operations
and growth of enterprises as well as
the internationalisation and export.
228
MEUR
(433)
Reserve for export credit
guarantees and special guarantees
State Guarantee Fund (SGF)
FINANCING GRANTED
767
760
679
511
7
Report of the
Board of Directors
CEO’s review
Financial
Statements
Sustainability
Business
operations
Governance
Notes to the
financial statements
ANNUAL REPORT 2024
Report of the Board of Directors
While the economy started to grow cautiously in early 2024,
the year was challenging for the Finnish economy. Finland’s
key export markets were also aected by a downturn, which
dampened Finnish export companies’ prospects. While
interest rates dropped and inflation decreased, geopolitical
uncertainty persisted. The amounts of Finnvera’s domestic
and export financing were lower than in 2023. Nevertheless,
as in the previous year, in year 2024 Finnvera had strong
financial performance, and loss provisions could be partially
reversed. Finnvera brought out new financing products,
especially for micro-enterprises and export transactions,
and continued to grant loans for solutions for climate
change mitigation and digitalisation. Finnvera systematically
developed its sustainability work and goals as well as
sustainability reporting and granted the first export credit
guarantees compliant with its climate criteria in the energy,
mining and metal sectors. In domestic financing, credit risk
indicators deteriorated and the credit losses increased in
2024, and the numerous global crises also resulted in losses
in export credit guarantee operations. The Finnish economy
and exports as well as demand for Finnvera’s financing are
expected to see a growth in 2025.
Total exposure decreased while risk levels increased in both
domestic and export financing in 2024
The parent company’s total exposure at year end was EUR 24.0 billion
(26.4), including binding credit commitments, as well as recovery and
guarantee receivables. The total exposure decreased by 9% during the
review period.
The domestic loan and guarantee exposure decreased by 4% to EUR 2.9
billion during the review period. The export credit guarantee and special
guarantee exposure was reduced by 10% to EUR 21.1 billion. Export credit
guarantees and export guarantees accounted for EUR 20.7 billion and spe-
cial guarantees for EUR 0.4 billion of this amount. The contract portfolio of
export credits decreased by 8% to EUR 10.2 billion. The subsidiary’s credit
risk relating to export credits is covered by the parent company’s export
credit guarantee. The maximum exposure and its calculation principles are
laid down in the legislation on Finnvera.
Finnvera Group
Authorisations and exposures 31 Dec 2024, EUR bn
Authority
Authority
used Exposure
Loans and guarantees 12.0 2.5 2.9
Export credit guarantees
and export guarantees
38.0 16.7 20.7
Special guarantees 3.15 0.3 0.4
Export credits 33.0 10.0 10.2
Economic uncertainty continued in 2024, and an increasing number of
SMEs have encountered payment difficulties. Significant credit losses
have been avoided in domestic financing, however. As a result of crises
affecting the global economy, the difficulties faced by some companies
around the world and in various sectors have built up to form an insur-
mountable obstacle. During the period under review, two major export
credit guarantee losses were realised.
The Group turned a profit and achieved cumulative
self-sustainability
As in 2023, Finnvera had a strong financial performance in 2024. The
Finnvera Group’s result for 2024 was EUR 228 million (433). The parent
company’s result was EUR 168 million (377) for export credit guarantee
and special guarantee operations and EUR 28 million (30) for domestic
financing, whereas the result of the subsidiary, Finnish Export Credit Ltd,
was EUR 32 million (27).
The business outlook for cruise shipping sector, which is important in
terms of export credit guarantee exposure, has continued to improve in
2024. At the end of 2024, Finnvera’s exposure in Russia stood at EUR 64
million (97). Over three years, the exposure in Russia has decreased from
nearly EUR 1 billion by more than 93%. Loss provisions for export financing
have had a significant impact on the Group’s results since 2020. In recent
years, Finnvera has been able to partially reverse these loss provisions,
which has had a significant impact on the Group’s good results especially
in last two years.
Finnvera is expected to attain financial self-sustainability in its operations.
This means that in the long term, the company must be able to cover its
operating expenses with income from the operations, taking into account
the assets of the State Guarantee Fund accumulated from the activities of
Finnvera’s predecessor organisations. This cumulative self-sustainability
has been achieved.
By the previous profitable results, Finnvera has strengthened the compa-
ny’s reserves for counteracting possible future losses. However, the credit
loss risk of export financing-related liabilities remains high, which causes
uncertainty about Finnvera’s future performance and reserves.
8
Report of the
Board of Directors
CEO’s review
Financial
Statements
Sustainability
Business
operations
Governance
Notes to the
financial statements
ANNUAL REPORT 2024
Exceptionally high client satisfaction
At year end, Finnvera had around 21,100 clients (23,100). Finnvera’s client
satisfaction was record high in 2024, and the NPS (Net Promoter Score)
was 79. This score went up by 15 points from the previous year. The NPS
score was up in all client categories. Finnvera’s personnel satisfaction,
which is reflected in the client experience, also reached a very high level in
2024.
The upgrade of Finnvera’s online service introduced in 2024 significantly
improved the client experience. During the year, the new service was made
available for all companies as well as our financing partners. Client-centric
digitalisation will also be an important part of Finnvera’s strategy going
forward. The work on updating Finnvera’s financing systems also conti-
nued according to plan.
Clients were highly satisfied with the information they received through
Finnvera about the growth and internationalisation services offered by
the Team Finland network. Finnvera continued to develop and step up its
cooperation with Team Finland. We will also work closely with the actors
in the Team Finland network in the future, and we believe that the forthco-
ming changes will improve the services for our clients further.
Domestic financing in total decreased, especially for transfers of
ownership
Finnvera granted a total of EUR 0.9 billion (1.8) in domestic loans and gua-
rantees in 2024. The amount of financing granted was EUR 1.2 billion (2.1),
including export credit guarantees and export guarantees for SMEs and
midcap enterprises. The amount of domestic financing decreased from
the previous year, as a single large amount of working capital financing
was granted to a large corporate during the reference period. The share of
investments out of all financed projects was 31% (25). The level of SME
and midcap financing was similar to the year before. Companies seeking
growth and internationalisation, which are crucial for boosting economic
growth, accounted for 58% (60) of the SME and midcap financing granted
by Finnvera.
Uncertainty in the economic operating environment was reflected in
financing for corporate acquisitions and transfers of ownership, which
was at a lower level in 2024 than in previous years. Finnvera’s financing for
transfers of ownership decreased to EUR 105 million (121). Finnvera was
involved in 599 (685) transfers of ownership. Both the amount of financing
and the number of companies financed were the lowest in five years.
Transfers of ownership are vital for the renewal of the corporate structure
and business sector vitality, and financing for them is expected to start
growing again as the economic outlook improves.
Over a normal business cycle, Finnvera’s long-term strategic goal has
been to allocate at least 80% of our domestic financing to to start-ups,
SMEs seeking growth and internationalisation, investments, transfers of
ownership, export and delivery projects, and SME guarantee projects. This
goal was again attained in 2024, as 92% of the financing was allocated in
keeping with the strategy.
New products and services brought out to diversify
financial markets and promote exports
The SME Guarantee intended for SMEs that have been operating for more
than three years was updated from the beginning of 2024 as the period for
granting European Investment Fund’s COSME counter-guarantees expired.
The maximum amount of the SME Guarantee was increased and access
to it was expanded, and EUR 60 million (37) in these guarantees was
granted in 2024. As before, the SME Guarantee requires no collateral from
borrowers and is suitable for domestic investments, product development,
and use as working capital.
The SME Barometer surveys commissioned by Finnvera, the Federation of
Finnish Enterprises and the Ministry of Economic Affairs and Employment
have for some time now indicated deteriorated access to financing, espe-
cially for growth-oriented SMEs. To ensure that new growth companies
can be created, Finnvera launched loans for micro-enterprises with fewer
than 10 employees and ambitions to grow and expand their operations
as a pilot project in October 2024. Enterprises can apply for this loan to
finance investments and development measures that will significantly
improve their operations and competitiveness over a six-month period
extending until the end of March 2025. A total of EUR 6 million in these
loans was granted in 2024.
A total of EUR 73 million was granted in 2024 in climate and environment
loans as well as digitalisation and innovation loans intended for internatio-
nalisation and green transition projects under the European Commission’s
InvestEU Guarantee Programme. These loans provided in cooperation with
the European Investment Fund will continue to be granted in 2025.
In particular to finance small export transactions worth less than EUR 2
million, bill of exchange financing was brought out as a new instrument
that complements Finnvera’s other export financing instruments.
Finnvera’s strategic objective is to increase exports and the number of
export companies in Finland. The goal of the Trade Facilitators, who were
appointed by Finnvera at the start of 2024, is to bring together foreign
buyers and Finnish exporters and to promote trade using Finnvera’s export
financing in close collaboration with Business Finland.
The collaboration agreement that Finnvera signed with the European
Investment Bank (EIB) in May 2024 will accelerate midcap enterprises’
projects that promote employment, growth and the clean transition. The
EIB grants Linked Risk-Sharing (LRS) guarantees for Finnvera’s direct loans
or credit limits to midcap enterprises with fewer than 3,000 employees as
new financing. The EIB guarantee has an impact on the loan terms.
Finnvera also diversified its financing offering options by seeking out new
partners that can grant financing to companies with a Finnvera guarantee.
9
Report of the
Board of Directors
CEO’s review
Financial
Statements
Sustainability
Business
operations
Governance
Notes to the
financial statements
ANNUAL REPORT 2024
The overhaul of legislation on Finnvera, which is included in the Govern-
ment Programme, was circulated for comments in late 2024. The legisla-
tive reform is highly important for Finnvera and will enable the appropriate
development of Finnvera’s financing and ensure the competitiveness of
export financing.
Export financing decreased - telecommunications,
cruise shipping and mining the most prominent sectors
Finnvera granted export credit guarantees and special guarantees
amounting to a total of EUR 2.9 billion (5.4), mainly for large corporates’
export transactions. To finance export transactions, Finnvera gives gua-
rantees for loans granted by banks to Finnish companies’ foreign buyers.
Some of the export transactions are financed with export credits granted
by Finnish Export Credit Ltd and guaranteed by Finnvera. In 2024, EUR 0.6
billion (0.5) was granted in export credits. While the demand for export
credits increased slightly, it remains significantly lower than in pre-pande-
mic years. An increasing number of export transactions are financed by a
bank to which Finnvera gives a guarantee.
The annual volume of export financing is also influenced by the timing
of individual major transactions, and large annual fluctuations are
possible. Export credit guarantees were granted particularly for the
telecommunication, cruise shipping, and mining sectors in 2024. Finnvera
signed the largest export credit guarantee agreement of its history for the
telecommunications sector with Nokia to finance the company’s deliveries
worth USD 1.5 billion for India’s 5G network. In the mining sector, Finnvera
was involved in financing Sibanye-Stillwater’s Keliber lithium project
with a Finance Guarantee that can be granted for domestic investments
that support exports. In the energy sector, Finnvera financed Wärtsilä’s
deliveries of energy storage systems for solar and wind power projects in
the United States and Chile. These mining and energy projects, whose total
value was approx. EUR 500 million, were also the first export financing
projects compliant with Finnvera’s climate criteria. Towards the end of the
year, Finnvera participated in Meyer Turku’s construction financing that
amounted to around EUR 1 billion for the Icon 3 ship.
At the end of 2024, Finnvera had exposure for export credit guarantees
and special guarantees in 81 countries. The exposure exceeded EUR 100
million in 17 countries, including offers given. As part of the national
reconstruction programme for Ukraine, Finnvera was able to relaunch
the granting of export credit guarantees for this country at the beginning
of 2024. This arrangement will apply particularly to financing options
for short-term trade, including Letter of Credit Guarantees and Credit
Insurance, which are particularly important for securing SME exports.
The granting of these guarantees will continue in 2025, and the Ministry
of Economic Affairs and Employment can provide Finnvera with up to
EUR 100 million in compensation for losses sustained in connection with
export credit guarantees granted in 2025 for promoting exports to and
investments in Ukraine.
Geographically, approx. 41% of the total exposure for export credit gua-
rantees and special guarantees was in the United States. Other significant
countries in terms of foreign risk-taking are Brazil, Germany, India and
Türkiye.
Reinsurance helps manage large and concentrated risks
Finnvera covers some of its liabilities through reinsurance from private
markets and bilateral agreements with other export credit agencies. Indivi-
dual insurance solutions are put in place to manage large or concentrated
risks. To secure reinsurance cover, Finnvera requires strong creditwor-
thiness of its counterparties. Significant cooperation between Finnvera
and the US export credit agency, Export-Import Bank, found a concrete
expression in 2024 as Exim and Finnvera signed a co-financing agreement
on Nokia’s 5G deliveries to Reliance Jio in India.
The maximum indemnity amount of Finnvera’s reinsurance arrangements
at the end of 2024 was EUR 1.5 (1.3) billion, or approx. 7% (6) of total
exposure and 8% (9) of drawn exposure. The value of new reinsurance
cover was approx. EUR 445 million in 2024.
Long-term funding carried out according to plans,
Finnvera updated EMTN debt programme
The goal of Finnvera’s funding is to make competitive financing available
for Finnish export companies’ clients. The plan for long-term funding
for 2024 amounted to approx. EUR 1–2 billion. In May, Finnvera issued a
EUR 1 billion bond. This bond with a maturity of slightly over 5 years was
Finnvera’s first euro-denominated issue since 2022. The final order book
exceeded EUR 2.5 billion and the issuance attracted almost 70 investors,
mostly Central European and Nordic institutional investors. The active
demand indicates that investors have strong confidence in Finnvera’s
creditworthiness and the Finnish government guarantee.
Finnvera issues debt within the EMTN (Euro Medium Term Note) pro-
gramme. The amount of bonds issued under the EMTN debt programme
was EUR 10.8 billion (10.6) at the end of 2024. On 20 December 2024,
Finnvera updated the debt programme from EUR 15 billion to EUR 17
billion, and the State confirmed the debt programme guarantee and increa-
sed its maximum amount to EUR 17 billion. The credit rating of the debt
programme corresponds to the rating of the State of Finland.
Financial performance
Economic outlook and the Finnvera Group in 2024
The Finnish economy is reaching a turning point. Recovery from the
recession has progressed slowly, however, and the GDP was lower in 2024
than in the previous year. Economic growth is believed to begin in 2025,
and exports are expected to pick up as the export markets grow stronger
and global interest rates drop, boosting the demand for investment goods.
The growth of Finnish exports is dampened by sluggish growth of the euro
area’s economy, however.
10
Report of the
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Financial
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Sustainability
Business
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Governance
Notes to the
financial statements
ANNUAL REPORT 2024
The amount of Finnvera’s expected credit losses, or loss provisions, is
partially influenced by changes in economic development forecasts.
According to the IMF’s forecast published in October 2024, the economy
is projected to grow by 3.2% globally and by 1.8% in developed countries
in 2025. According to the economic review published by the Ministry of
Finance in December 2024, GDP is expected to grow by 1.6% in 2025 and
by 1.5% in 2026 and 2027.
The Finnvera Group’s result for 2024 was EUR 228 million (433). Finnvera’s
result was strong for all business operations, especially in the Large
Corporates business. EUR 46 million of the total result was generated in
the last quarter of the year, and EUR 182 million between January and
September. Compared to the year before, the result was most significantly
affected by the changes in the amount of expected losses, or loss provi-
sions. Loss provisions have had a significant impact on the Group’s result
in recent years. Finnvera was able to partially reverse its loss provisions
for export credit guarantees and special guarantees in 2024, especially
those relating to cruise shipping companies. In the reference period,
Finnvera was able to reverse more loss provisions than in the review
period, which led to an exceptionally good result in 2023. Compared to
the reference period, the result for the review period was also significantly
affected by higher net interest income and fee and commission income
as well as changes in the value of items recognised at fair value through
profit or loss.
Result of Finnvera plc and its subsidiary, Finnish Export Credit Ltd
The result of the parent company Finnvera plc for 2024 was EUR 195
million (406), and the impact of Finnvera’s subsidiary, Finnish Export Credit
Ltd, on the Group’s result was EUR 32 million (27).
The Large Corporates business accounted for EUR 173 million (351) of the
parent company’s result. EUR 38 million of the total result was generated
in the last quarter and EUR 135 million in the first three quarters of the
year. The sizeable loss provisions of the Large Corporates business have
had a significant impact on the Group’s result in recent years, and the
company was able to reverse some of them during both the review period
and the reference period. During the review period, loss provisions were
reduced by EUR 61 million (295), while realised credit losses were EUR 76
million (91). The net interest income of the Large Corporates business inc-
reased to EUR 68 million (47) due to higher interest rates, in particular. The
net fee and commission income was EUR 133 million (114). In 2024, two
major export credit guarantee losses were realised and one prepayment of
individual liability was made. Therefore, the related unrecognised portion
of the guarantee premiums received in advance was recognised for the
review period. Operational expenses grew by 13%, totalling EUR 16 million
(14).
The SME and midcap business accounted for EUR 23 million (55) of the
parent company’s result. EUR 4 million of the result was generated in the
last quarter and EUR 18 million in the first three quarters of the year. The
result of the SME and midcap business was also significantly affected by
changes in the loss provisions. In the review period, the loss provisions
increased by EUR 11 million, whereas they had decreased by EUR 25
million in the reference period. The realised credit losses amounted to
EUR 44 million (38) and the State’s credit loss compensation totalled
EUR 20 million (18). The SME and midcap business consists of three
segments: locally operating small companies, companies focusing on the
domestic market and enterprises seeking growth and internationalisation.
The result of the local small companies segment was EUR -2 million (2),
that of companies focusing on the domestic market EUR 13 million (18),
and that of growing and internationalising enterprises EUR 12 million (36)
in the review period.
The subsidiary Finnish Export Credit Ltd had an impact of EUR 32 million
(27) on the Group’s profit. In particular, this increase was due to changes
in the fair value of financial assets and liabilities. The net interest income
was EUR 29 million (32). Export credit commitments decreased during
the review period, contributing to a reduction in commitment fees and,
consequently, in net fee and commission income by 25 % to EUR 11 million
(14). Changes in items recognised at fair value through profit or loss and
net income from foreign currency operations totalled EUR 5 million, whe-
reas this figure in the reference period was EUR -9 million. The company’s
income tax was EUR 8 million (6). While the parent company Finnvera plc
is exempt, its subsidiary Finnish Export Credit is liable to pay income tax.
Results of domestic and export financing
The result of the domestic operations of the parent company Finnvera
plc was EUR 27 million (30), while the separate result of its export credit
guarantee and special guarantee operations subject to the Act on the State
Guarantee Fund was EUR 168 million (377).
Analysis of financial performance in January–December 2024
Interest income and expenses
The Group’s net interest income during the period under review was
EUR 139 million (115). Improved especially by a higher level of market
interest rates, the net interest income was 20% higher than in the reference
period.
Compared to the reference period, interest income increased by 26% to
EUR 1,069 million (848). The most significant item increasing the interest
income was interest income from derivatives and debt securities as well
as interest from loans passed on to clients. At the end of December, the
loan portfolio of export credits granted by Finnish Export Credit Ltd stood
at EUR 6,519 million (7,315), which is 11% less than at the end of the pre-
vious year. The loan portfolio of the parent company’s domestic financing
was 35% higher than at the end of the previous year, totalling EUR 941
million (696) on 31 December.
Interest expenses increased by 27% from the reference period to EUR 930
million (733), the most significant factor in which was interest expenses
generated by derivatives and debt securities in issue. The carrying amount
11
Report of the
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Financial
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Notes to the
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ANNUAL REPORT 2024
of debt securities in issue was EUR 10,830 million (10,585) at the end of
December.
Fee and commission income and expenses
The Group’s net fee and commission income increased by 12% from the
reference period to EUR 198 million (177).
The fee and commission income was EUR 203 million (189), or 7% higher
than in the reference period. The share of parent company Finnvera plc’s
export credit guarantee and special guarantee operations in the Group’s
fee and commission income was 73% (69). Domestic loans and gua-
rantees accounted for 21% (23). Export credits of the subsidiary Finnish
Export Credit Ltd accounted for 6% (8) of the fee and commission income.
Fee and commission income from export credit guarantees, export gua-
rantees and special guarantees increased by 15% to EUR 149 million (130).
The most significant factor in this growth was recognition of individual
guarantee premiums received in advance due to reimbursed guarantees
and prepayment of liabilities. Fee and commission income from domestic
guarantees decreased by 3% to EUR 40 million (42), which was affected by
a reduction in the guarantee exposure by 8% compared to the year before.
Fee and commission income from loans decreased by 24% to EUR 14 mil-
lion (18), as the reduction in the export credit exposure resulted in fewer
commitment fees for the period under review. Finnish Export Credit Ltd’s
contract portfolio totalled EUR 10.2 billion (11.0) at the end of 2024.
Fee and commission expenses totalled EUR 5 million (12), showing a
decrease of 59% from the reference period. The fee and commission
expenses mainly consisted of the costs of reinsurance taken out by the
parent company, which included refunds of insurance premiums received
as reinsurance contracts were cancelled during the review period. At the
end of December, the maximum indemnity amount of reinsurance arrange-
ments was EUR 1,505 million (1,306).
Gains and losses from financial instruments carried at fair value
through profit and loss and foreign exchange gains and losses
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 8 million (-9), of which the change in the fair value of liabilities, debt
securities and interest rate and currency swaps was EUR 4 million (-6) and
the net income from foreign currency operations was EUR 5 million (-4).
Finnvera applies hedge accounting in the valuation of liabilities when
hedge accounting is applicable. At the end of December, the book value of
these liabilities was EUR 9,553 million (9,113). The liabilities are hedged
against changes caused by market interest rates. Credit risk changes are
not part of the hedging relation.
The fair value option is applied to the valuation of liabilities that fall
outside hedge accounting when they are hedged with derivative contracts.
The valuation of the liabilities is based on market quotes. The share of
the credit risk in the value change of liabilities is presented in other comp-
rehensive income. At the end of December, the carrying amount of these
liabilities was EUR 1,277 million (1,237).
In addition to derivatives that are used in hedging liabilities, Finnvera has
taken out individual long-term cross currency swaps to cover foreign
currency commitments. Finnvera applies cash flow hedge accounting
practices to these contracts. Finnvera additionally applies fair value hedge
accounting to some of the debt securities that are covered with interest
rate swaps.
Operational expenses, other operating expenses,
and depreciation and amortisation
The Group’s operational expenses, other operating expenses and deprecia-
tion and amortisation totalled EUR 60 million (55), having increased by 9%
from the previous year.
The operational expenses amounted to EUR 53 million (50), of which per-
sonnel expenses accounted for EUR 33 million (32) and other operational
expenses for EUR 20 million (17). The 1% growth in personnel expenses
from the previous year was influenced by an increase in the salary level.
Other operational expenses increased by 14%, particularly as a result of
an increase in external services. Voluntary personnel costs, IT costs and
travel expenses were also clearly higher than in the reference year.
Depreciation and amortisation amounted to EUR 5 million (5) and other
operating expenses to EUR 2 million (0). Other operating expenses inclu-
ded a non-recurring item related to phasing out venture capital financing
and returning assets subject to the repayment obligation to the State.
Realised and expected credit losses
The Group’s realised losses and change in expected losses totalled EUR 49
million, whereas the corresponding item was positive with a value of
EUR 210 million in the reference year.
Expected losses, or loss provisions, decreased by EUR 51 million (320).
In the third quarter of 2024, Finnvera was able to partially reverse its loss
provisions, especially regarding cruise shipping companies. The reversal
of loss provisions in export credit guarantee and special guarantee
operations reduced the provisions by EUR 74 million (376). The calculation
of expected credit losses is influenced in particular by macroeconomic
forecasts and a significant change in credit risk between the reporting
date and the initial granting date. Factors affecting the credit risk include
the client’s financial situation, risk classification, payment behaviour and
the financial instrument used by them. The expected losses in domestic
financing are also affected by changes in the State’s credit and guarantee
loss compensation level. The State’s loss compensation rate is 50%, and in
financing granted on special industrial policy grounds, the loss compensa-
tion rate can be 80% if so decided by the Ministry of Economic Affairs and
Employment.
12
Report of the
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CEO’s review
Financial
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Sustainability
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Governance
Notes to the
financial statements
ANNUAL REPORT 2024
Realised credit losses amounted to EUR 121 million (128), which was
6% less than in the reference year. During the period under review, two
larger individual export credit guarantee compensations were paid. Credit
loss compensation from the State covering losses in domestic financing
totalled EUR 20 million (18).
Loss provisions for domestic loans and guarantees increased by 11%, or
EUR 15 million in total in 2024. Loss provisions stood at EUR 146 million
(132) at the end of December, including the loss provisions of guarantee
receivables. The amount of loss provisions was increased especially by
the growth of the loan portfolio.
Loss provisions for export credit guarantees, export guarantees and spe-
cial guarantees were partially reversed during the review period, especially
for cruise shipping companies. The loss provisions stood at EUR 999 mil-
lion (1 063) at year end, including the guarantee receivables. The amount
of export credit guarantee and special guarantee operations accounted
for EUR 905 million (979). While the credit risk of Finnvera’s liabilities is
estimated to have decreased, significant risks nevertheless persist.
Non-performing exposure
At the end of December, the amount of non-performing exposure
in domestic financing stood at EUR 168 million (157), calculated in
accordance with the EU-level harmonised calculation method. When the
loss provisions made are taken into account, non-performing exposure
accounted for 6.1% (6.0) of total exposure. The ratio of non-performing
exposure to total exposure was approximately 3.1% (3.0) when the com-
pensation for credit losses Finnvera received from the State is taken into
account.
The amount of non-performing exposure in export financing stood at
EUR 110 million at the end of December (178). The ratio of non-performing
exposure to total exposure was 0.5 per cent (0.8).
Long-term economic self-sustainability
Finnvera is expected to attain financial self-sustainability in its operations.
This means that in the long term and over a period exceeding the business
cycle, the company’s operating expenses must be covered by the income
from its operations.
The objectives for the self-sustainability of domestic operations and
export credit guarantee and special guarantee operations have been
realised when the result is calculated cumulatively to the end of December
2024. The self-sufficiency calculation for export credit guarantee and
special guarantee operations has taken into account the assets of the
State Guarantee Fund.
The company’s risk-based pricing and the extent and risk level of
Finnvera’s total exposure will have a significant impact on the company’s
financial performance and long-term economic self-sustainability in the
years to come.
Balance sheet and contingent liabilities 31 December 2024
At the end of December, the consolidated balance sheet total was
EUR 14,756 million (14,302). The balance sheet total increased by 3%, or
EUR 454 million, during the year. The balance sheet total of the parent
company Finnvera plc stood at EUR 14,787 million (14,390) at year end,
and that of Finnvera’s subsidiary, Finnish Export Credit Ltd, at EUR 6,849
million (7,827). The Group’s contingent liabilities totalled EUR 14,933
million (16,441) on 31 December.
At the end of December, the Group’s outstanding credits came to
EUR 7,197 million (7,761), or 7% less than at the end of the previous year.
The outstanding credits of the parent company came to EUR 7,366 million
(8,103), of which receivables from subsidiaries totalled EUR 6,511 million
(7,473).
The parent company’s outstanding guarantees in domestic financing
decreased by 8% in 2024 and were EUR 1,483 million (1,617) at the end of
December.
The liabilities calculated according to the Act on the State’s Export Credit
Guarantees, which includes all commitments and half of the offers given
at the exchange rate of the closing date, were EUR 16,708 million (17,735)
at the end of December. The total exposure of the parent company arising
from export credit guarantees and special guarantees (commitments
and offers given, including export guarantees) totalled EUR 21,084 million
(23,379), of which drawn guarantees amounted to EUR 14,278 million
(14,152). The maximum indemnity amount of reinsurance arrangements
valid at the end of the year was EUR 1,505 million (1,306), or around 11%
of drawn guarantees.
The Group’s long-term liabilities on 31 December totalled EUR 10,934
million (10,713), of which EUR 10,830 million (10,585) consisted of bonds.
At the end of December, the Group’s non-restricted equity amounted to
EUR 1,343 million (1,115), of which the reserve for domestic operations
accounted for EUR 405 million (375), the reserve for export credit guaran-
tees and special guarantees for EUR 511 million (135), and the retained
earnings for EUR 427 million (606).
After the result of the period under review, the parent company’s reserves
for domestic operations as well as export credit guarantees and special
guarantees for covering potential future losses amounted to a total of
EUR 1,878 million (1,676) at the end of December. These reserves, which
also cover the credit risk of export credits granted by the subsidiary,
consisted of the following: the reserve for domestic operations after the
result of the review period EUR 432 million (405) as well as the reserve
for export credit guarantees and special guarantees and the assets of the
State Guarantee Fund for covering losses of EUR 1,446 million (1,272).
13
Report of the
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Financial
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Sustainability
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Governance
Notes to the
financial statements
ANNUAL REPORT 2024
The State Guarantee Fund is an off-budget fund whose assets include the
assets accumulated from the activities of Finnvera’s predecessor organi-
sations. 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 230 million (198) at the end of December.
Finnvera Group 31 Dec 2024 31 Dec 2023 Change
MEUR MEUR %
Assets 14,756 14,302 3%
- Loans to and receivables
from credit institutions
579 1,357 -57%
- Loans to and receivables from customers 7,388 7,924 -7%
- Investments 5,296 3,554 49%
- Other assets 1,493 1,467 2%
Liabilities 13,214 12,969 2%
- Debt securities in issue 10,830 10,585 2%
- Provisions 893 902 -1%
- Other liabilities 1,490 1,482 1%
Equity 1,542 1,333 16%
- Reserve for domestic operations 405 375 8%
- Reserve for export credit guarantees
and special guarantees
511 135 280%
- Retained earnings 427 606 -30%
- Other equity items 199 218 -8%
Funding
During the period under review, the Group’s long-term funding under the
EMTN debt programme was EUR 1,000 million (1,870) due to the bond
issued by Finnvera in May. In 2024, EUR 929 million in long-term debt was
repaid (913). The short-term funding acquired under the Euro Commercial
Paper debt programme totalled EUR 412 million (1,448), and short-term
debt was repaid by EUR 651 million (1,759).
Capital adequacy
The Act on Finnvera (443/1998) stipulates that domestic operations must
be kept separate from export credit guarantee and special guarantee
operations. In consequence, losses from domestic operations are covered
from the reserve for domestic operations, while losses from export credit
guarantees and special guarantees are covered from the reserve for export
credit guarantee and special guarantee operations. According to the Act
on the State Guarantee Fund (444/1998), the State is responsible for
export credit guarantees and special guarantees. Should the reserve for
export credit guarantee and special guarantee operations lack sufficient
assets to cover the losses incurred in the respective operations, the losses
are covered from assets in the State Guarantee Fund, which are supple-
mented, whenever necessary, by an appropriation from the State Budget.
The State Guarantee Fund is an off-budget fund whose assets include
assets accumulated from the activities of Finnvera’s predecessor
organisations.
The above separation prescribed by law and the State’s responsibility
for export credit guarantees explain why Finnvera assesses its capital
adequacy, i.e. the ratio between its exposure and assets, separately for
domestic operations and export credit guarantee and special guarantee
operations.
Capital adequacy in domestic financing
According to the goal set by the State of Finland, the owner of Finnvera,
the Group’s capital adequacy ratio for domestic operations should be
at least 15.0%. Finnvera’s capital adequacy is calculated in accordance
with the principles of the Basel III standard method. The Group’s capital
adequacy ratio for domestic operations, Tier 1, stood at 25.5% (24.3) and
the leverage ratio was 24.3% (21.9) at year end. The risk-weighted items in
the Group’s domestic operations totalled EUR 2,635 million (2,650) and the
capital for calculating capital adequacy was EUR 671 million (645) at year
end.
31 Dec 2024 31 Dec 2023 Change
Capital for calculating capital adequacy MEUR MEUR %
683 655 4%
Intangible assets -12 -10 -23%
Total 671 645 4%
Risk-weighted items MEUR MEUR %
Receivables from credit institutions 1 3 -68%
Receivables from clients 2,131 2,018 6%
Investments and derivatives 21 21 1%
Interest receivables, other receivables,
prepayments, other assets
16 18 -8%
Binding credit commitments 206 335 -39%
Operational risk 259 255 2%
Total 2,635 2,650 -1%
Capital adequacy ratio, Tier 1 25.5% 24.3%
Capital adequacy in export financing
No specific requirement has been set for the capital adequacy of
Finnvera’s export financing because, ultimately, the State is responsible for
any major export credit guarantee losses that the equities accumulated
from operations and the assets of the State Guarantee Fund cannot
cover. Calculating capital adequacy in a manner applied to banking is
not a suitable option for Finnvera, considering its special industrial policy
purpose as a promoter of exports. However, if the capital adequacy is
calculated using a similar method as in domestic financing and the assets
in the reserve for export credit guarantee and special guarantee operations
and the State Guarantee Fund are taken into account, the estimated capital
adequacy of export financing in accordance with Tier 1 was 5.7% (5.6).
14
Report of the
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ANNUAL REPORT 2024
31 Dec 2024 31 Dec 2023 Change
Capital for calculating capital adequacy MEUR MEUR %
1,395 1,240 13%
Total 1,395 1,240 13%
Risk-weighted items MEUR MEUR %
Export credit guarantees, export
guarantees and special guarantees
21,520 18,995 13%
Investments, derivatives and
receivables from credit institutions
1,696 1,699 0%
Other receivables, prepayments,
other assets
1,124 1,247 -10%
Operational risk 305 241 27%
Total 24,646 22,182 11%
Capital adequacy ratio, Tier 1 5.7% 5.6%
Risk position
At the end of the period under review, the exposure for domestic loans and
guarantees was EUR 2,912 million (3,045), which was EUR 133 million less
than at the end of 2023. The economy has remained uncertain in 2024,
and client payment difficulties are still at a high level. In 2024, the amount
of bankruptcies in Finland was at its highest level in the 21st century. The
expected loss (EL) amounted to 5.59% (4.07) of the exposure at the end of
the review period due to individual factors.
Altogether, 68% (81) of Finnvera’s exposure fell into the credit rating
category B- or better. Finnvera applies the insolvency definition set by the
European Banking Authority (EBA). During the period under review, the
realised credit and guarantee losses and the change in loss provisions in
domestic operations amounted to EUR 57 million (51).
At the end of the period under review, the exposure arising from export
credit guarantees, export guarantees and special guarantees was
EUR 21,084 million (23,379), which is EUR 2,295 million less than at the
end of 2023. The greatest share of the outstanding guarantees totalling
EUR 18,683 million (18,636) and binding offers totalling EUR 2,401 million
(4,743) was associated with transactions in EU Member States and OECD
countries. The main sectors were cruise shipping, telecommunications,
and pulp and paper, which accounted for 79% (82) of total exposure. Alto-
gether, 32% (32) of the liabilities were in risk category BBB-, which reflects
investment grade, or in better risk categories.
The amount of export credit and special guarantee losses was higher
than average, mainly due to two larger loss compensations. Calculated
expected credit loss (ECL) has decreased significantly from the high level
caused by the pandemic due to the gradual recovery of cruise shipping
industry. However, the risk level remains slightly more elevated than usual.
The contract portfolio related to the export credit financing of Finnvera’s
subsidiary, Finnish Export Credit Ltd, totalled EUR 10,174 million (11,038),
representing a reduction of EUR 864 million from the turn of the year. The
exposure includes outstanding credits and binding credit commitments.
Offers amounted to EUR 485 million (401). The credit risks for export
credits are covered by means of export credit guarantees granted by the
parent company Finnvera plc, which are included in the above-mentioned
total exposure for export financing.
The asset management liquidity portfolio consisting of deposits in banks
and investments in liquid assets stood at EUR 5,736 million (4,689) at
the end of the review period. All investments were at minimum in risk
category BBB- (Finnvera’s risk category), which reflects investment
grade, or in better risk categories, and all long-term (exceeding 12
months) investments are made in assets with a minimum credit rating of
A- (S&P and Fitch) or A3 (Moody’s). A total of 99% (97) of assets were in
investments or account banks with a minimum rating of A- (Finnvera’s risk
category). Expected credit loss (EL) for deposits and investments was
EUR 1.2 million (1.0), or 0.02% (0.02).
The company hedges interest rate and currency risks using derivatives,
the nominal value of which was EUR 19,041 million (18,078) at the end of
December. The minimum credit rating for all derivative contract counter-
parties was A3 (Moody’s) or A- (S&P and Fitch). The derivative-related
counterparty risk is mitigated with collateral agreements, the collateral
premiums of which are agreed on a daily basis.
At the end of the review period, the market risks related to asset manage-
ment were in line with the risk limits set by the Board of Directors. Of the
most significant risks, the funding-related cost risk due to structural under-
funding was EUR 32 million and the market value risk of the investment
portfolio was EUR 122 million. The balance sheet’s interest rate sensitivity
was EUR -2 million for a 200-basis-point change, and the open foreign
exchange position was EUR 1 million.
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Sustainability
Business
operations
Governance
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financial statements
ANNUAL REPORT 2024
Sustainability in Finnvera
Sustainability management and sustainability strategy
Sustainability is the foundation of Finnvera’s operations, and as a
responsible provider of financing, our work is underpinned by risk-based
assessments and internationally recognised standards. Sustainability,
responsibility and impact are integrated comprehensively in Finnvera’s
strategy and operations.
Finnvera’s Board of Directors makes decisions on the sustainability
strategy as part of the company’s overall strategy and in keeping with
the ownership steering policies determined by the Ministry of Economic
Affairs and Employment. The principles guiding the company’s operations
stress responsible action in dealings with all stakeholders as well
as compliance with laws, regulations, official recommendations and
international commitments. The areas of the sustainability strategy are
environmental and climate responsibility, social responsibility, good
corporate governance, financial responsibility and risk management, and
active sustainability communication. Finnvera’s sustainability policies
are prepared by the Management Group, the Credit Committee and Asset
Management and approved by the Board of Directors.
The Board of Directors sets annual goals for sustainability, and the Audit
Committee and the Board monitor their attainment actively. Among
other things, progress towards the sustainability goals is monitored by
means of an ISO 9001-certified quality/operation system that relies on
internal and external audits, management reviews and similar. The overall
responsibility for achieving the goals rests with the Board of Directors and
CEO. Finnvera’s Management Group is responsible for achieving the goals
in different units. The Board of Directors discusses sustainability reviews
twice a year and actively monitors other sustainability-related issues as
well as reports annually to the State owner on corporate responsibility and
its indicators at the Annual General Meeting.
Finnvera incorporates the impacts of climate change in the financing
decisions as well as in asset and risk management. The company sets
targets for as well as measures and reports on the climate and biodiversity
impacts of financing and the company’s own operations. Finnvera fosters
good corporate governance and comprehensive quality control and ensu-
res long-term self-sustainability through risk management.
Finnvera continued to develop its sustainability
measures and reporting
In 2024, Finnvera continued to develop its sustainability measures and
reporting in keeping with both legislative requirements and stakeholder
expectations.
While the EU Corporate Sustainability Reporting Directive (CSRD) does not
apply to Finnvera, the company advanced its CSRD reporting capabilities
following guidelines agreed upon with the Ministry of Economic Affairs
and Employment. As a state-owned specialised financing company,
Finnvera is not subject to the EU Credit Institutions Directive, the national
Act on Credit Institutions or the EU Corporate Sustainability Reporting
Directive. However, Finnvera finds it important to develop its reporting and
improves its CSRD compliant reporting capabilities in line with stakeholder
expectations. Finnvera will gradually introduce partial CSRD reporting in
financial years 2024–2026.
In 2023, Finnvera carried out a sustainability-related materiality asses-
sment for the first time in keeping with the double materiality principle
laid down in the CSRD. In this assessment, the impacts of different
sustainability themes were examined from the perspectives of people and
the environment as well as their economic impacts, risks and opportuni-
ties for Finnvera. In particular, the assessment focused on sustainability
aspects of financing as well as the weightings of sustainability impacts
and responsibilities in different sectors. The assessment identified as
Finnvera’s key sustainability themes impacts on communities (added value
for society generated by the financing), climate change (emissions and
energy consumption) and the environment (biodiversity and pollution). The
analysis results have guided Finnvera’s sustainability reporting since 2024.
Finnvera’s sustainability report 2024 and cooperation
across organisational boundaries
Finnvera’s sustainability report for financial year 2024 was drawn up in
reference to the requirements of the Global Reporting Initiative (GRI)
2021 standard. The report can be found in the Annual Report’s section on
Sustainability, which describes Finnvera’s sustainability measures in more
detail. The report covers the economic, social and environmental impacts
of the Finnvera Group. Finnvera reports on sustainability by calendar year.
There has been no external assurance of the sustainability report 2024.
Finnvera assesses climate risks as part of the environmental and social
risk management process following the Task Force of Climate Disclosures
(TCFD) guidelines. Finnvera must address the climate change risk in
all key risk types as part of the Internal Capital Adequacy Assessment
Process (ICAAP).
Finnvera participates actively in international cooperation aiming to pro-
mote climate-friendly export financing and to find effective CO
2
calculation
rules. Finnvera is part of the EU Export Credit Agencies (ECA) cooperation
organisation. The State of Finland also participates in the Export Finance
for Future (E3F) coalition, which has put an end to export financing for
fossil fuel projects, with some carefully specified exceptions.
In connection with the UN Climate Change Conference held in Baku in
November 2024, Finnvera joined export credit institutions’ international
forum, Net-Zero Export Credit Alliance. It brings together export credit
agencies prepared to pursue the emission targets laid down in the Paris
Agreement by 2050. Its other objectives include creating a measurement
16
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ANNUAL REPORT 2024
method for setting emission targets as well as reporting on and monito-
ring their achievement and building a common view of the net-zero target
in export financing.
In addition, Finnvera participates actively in the OECD Arrangement and
the Berne Union Climate Change Working Group.
Sustainable development as part of Finnvera’s operations is one of the
company’s strategic competence areas. Finnvera’s membership in the
FIBS corporate responsibility network (Finnish Business & Society) means
that the entire personnel has access to an extensive offer of sustainability
training.
Biodiversity and biodiversity loss management strategies were
defined to accompany the climate strategy
Climate change mitigation has up till now been prioritised in the sustaina-
bility strategy. For climate risks Finnvera has a climate strategy in place,
the aim of which is to mitigate climate change and reduce emissions
through six areas: incentives, measuring, risk management, exclusions,
engagement and competence. These measures are aimed at mitigating
climate change and reducing greenhouse gas emissions. From 2025, bio-
diversity and a biodiversity loss management strategies will be the second
priority of the sustainability strategy.
Finnvera’s Code of Conduct brings together the legal rules, internal sustai-
nability policies and ethical principles that apply to all personnel members
and members of the governing bodies at Finnvera. The Code of Conduct is
reviewed and its content is updated annually. In 2024, Finnvera prepared
a Supplier Code of Conduct for the supply chain, which will be included in
procurements Finnvera puts out to tender from the beginning of 2025. This
will ensure that the products and services to be procured are produced
under socially responsible and environmentally sustainable conditions.
The policies guiding financing determine Finnvera’s participation in
financing projects. The Environmental and social risk management policy
is a key tool for controlling the impacts of Finnvera’s financing. As Finnvera
makes financing decisions, it identifies projects with the greatest environ-
mental risks. Action plans are drawn up with clients to reduce the risks.
Finnvera’s oil and gas policy restricts the granting of export credit guaran-
tees to these sectors. In 2024, Finnvera updated its policy by combining
all fossil fuel exclusion policies in a single document and adding detail to
the guidelines for assessing compliance and exceptions with the Paris
Agreement. Finnvera has set a long-term climate goal for its operations:
promoting the attainment of the Paris Climate Agreement goal of limiting
global warming to 1.5 degrees.
Finnvera exceeded its ESG targets in its investments
Finnvera’s Asset Management uses a framework for sustainable
investments that meets investors’ information needs relating to sustaina-
bility requirements and ESG indicators as well as defines the criteria for
sustainable investing as part of Asset Management’s investment plan.
At the beginning of 2024, a document explaining this framework was
published openly on the company’s website. The idea is to integrate sus-
tainability and corporate responsibility as elemental parts into investment
operations and decision-making relating to them. Asset Management
is committed to sustanaibility principles set at the company level,
compliance with which is also required by the State owner. The principles
of sustainable investment complement the company-level policies. In
addition to striving to assess sustainability and responsibility risks at
issuer level, increasing the share of thematic investments in long-term
bond investments has been one of the company’s concrete goals.
The goal for the investment operations of Finnvera’s Asset Management
in 2024 was that 15% to 20% of long-term investments are thematic
investments that meet the Asset Management’s ESG criteria. This goal
was exceeded and, at the end of 2024, 24% of long-term investments were
thematic investments meeting the ESG criteria. Slightly less than two
thirds of them were green bonds. Thematic investments will be continued
within the framework of the company’s risk-taking policy and investment
plan. The planned share of thematic investments for the following year is
25% to 30% of long-term investments.
Sector-specific climate criteria and incentives introduced
Finnvera has significant environmental and social impacts through the
projects it finances. Finnvera’s key environmental and climate impacts
arise from export financing projects.
Emission-intensive industrial sectors, including forestry, mining and pulp
and paper predominate in Finnish exports. On the other hand, Finnvera
also finances leading-edge Finnish technology that helps reduce envi-
ronmental loading and climate impacts. Projects may also have impacts
on biodiversity. Negative impacts of the financed projects are managed
through detailed environmental, social and governance (ESG) risk assess-
ments and monitoring in each project.
Finnvera strives to actively channel financing to projects that have
positive climate impacts while reducing the share of projects that harm
the climate. In early 2024, Finnvera introduced sector-specific criteria for
export financing projects in which climate-friendly features are identified.
These criteria are based on internationally recognised frames of reference,
including the EU taxonomy and Climate Bond Initiative (CBI) criteria. Proje-
cts that meet the criteria may be eligible for Finnvera’s financing incentives
aimed at promoting Finland’s low-emission technology exports. In 2024,
Finnvera granted guarantees worth approx. EUR 500 million to projects
that meet the criteria.
In the OECD Arrangement, export credit agencies agree on ways of encou-
raging investments and export projects that meet the climate criteria to go
ahead through export financing, for example by offering longer repayment
periods for loans. The climate criteria of the Arrangement are known
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ANNUAL REPORT 2024
as the Climate Change Sector Understanding (CCSU). In 2024, Finnvera
financed projects that meet the OECD CCSU criteria with EUR 286 million
in total.
SMEs’ climate-friendly projects are supported with climate and digitalisa-
tion loans. A total of EUR 73 million was granted in these loans in coope-
ration with the European Investment Fund and backed by the European
Commission’s InvestEU guarantee programme in 2024.
Total carbon footprint decreased, emissions from own operations
grew – Carbon handprint calculated for the first time
In 2024, Finnvera calculated its emissions for the third time following
the GHG protocol and PCAF calculation standards. The latest calculation
is based on data from 2023. On the basis of the emission calculations,
Finnvera developed an emission pathway extending to 2050. Finnvera
started monitoring emissions generated from its financing portfolio as
the volume of carbon dioxide emissions per euro of financing (CO
2
/EUR)
in relation to the selected emission pathway. In 2024, emissions related
to Finnvera’s financing portfolio were below the set emission target. This
result was influenced by a decrease in Finnvera’s total emissions.
The total CO
2
emissions from Finnvera’s financing were 4.9 MtCO
2
e (5.7).
Emissions from Finnvera’s own operations were 1,339 tCO
2
e (639), or
0.03% of total emissions. Emissions from financed projects decreased by
15% and accounted for 99.97% of the carbon footprint. The accuracy of
the calculation improved further as Finnvera was able to collect more data
concerning individual companies and projects. Compared to the previous
calculation, Finnvera’s total emissions decreased by 15%.
Finnvera calculated its carbon handprint for the first time in 2024. This cal-
culation is based on data from 2023. The handprint of renewable energy
projects financed by Finnvera, in other words avoided emissions, totalled
0.2 MtCO
2
in 2023. The handprint is expected to increase as the share of
renewable energy projects is growing in the energy production sector.
ESG reporting used to assess sustainability in domestic financing
To assess sustainability in domestic financing, Finnvera uses Suomen
Asiakastieto Oy’s ESG reports to support the processing of financing app-
lications. These reports can be used to identify risks related to applicant
companies’ business based on non-financial information. This includes
information on emissions into air, energy consumption and environmental
taxes of the relevant sector as well as any quality, occupational safety and
environmental certificates issued to the company. In the future, Finnvera
will use information produced by Asiakastieto to monitor the development
of corporate responsibility among clients.
Strategy highlights the significance of good corporate governance
Good corporate governance and risk management are highly significant in
Finnvera’s strategy. The aim is to ensure transparency at all levels of the
organisation.
Finnvera’s Code of Conduct brings together the legal rules, internal sustai-
nability policies and ethical principles that apply to all personnel members
and members of the governing bodies at Finnvera. The Code of Conduct is
reviewed and its content is updated annually. In 2024, Finnvera prepared
a Supplier Code of Conduct for the supply chain, which will be included in
procurements Finnvera puts out to tender from the beginning of 2025. This
will ensure that the products and services to be procured are produced
under socially responsible and environmentally sustainable conditions.
Finnvera applies anti-corruption principles in all operations and also
expects its clients and business partners to take anti-corruption measures.
Finnvera is committed to complying with the OECD’s Anti-Bribery Recom-
mendation for export financing. As a public provider of financing and
an intermediary of EU funds, Finnvera requires clients to take extensive
measures against tax evasion. Finnvera complies with practices that
prevent money laundering and the financing of terrorism in its financing
as well as applies the client identification and KYC (Know Your Customer)
obligations recommended by the Financial Supervisory Authority and
internal procedures.
Ethical conduct of business in Finnvera is monitored, and the company’s
Board of Directors is regularly informed of any concerns raised by stake-
holders, for example in client and stakeholder feedback.
Social impacts: Attention to human rights in financed
projects – high satisfaction among Finnvera’s personnel
Finnvera plays an important role in society by facilitating and boosting
Finnish enterprising and exports. Issues related to the terms of emplo-
yment and conditions of people working in projects to be financed are an
important part of Finnvera’s social responsibility.
Projects to be financed with export credit guarantees are often carried out
in countries with shortcomings in their human rights legislation and the
realisation of human rights. This is why assessing human rights, social
impacts and risks in export projects is a key part of financing decisions,
and a team that focuses on the social and environmental impacts of the
project is involved in financing projects. The UN Guiding Principles on
Business and Human Rights (UNGP), IFC Performance Standards on Envi-
ronmental and Social Sustainability, and Finnvera’s ES risk management
policy are taken into account in the assessment.
Striving and competent personnel are also at the core of social responsi-
bility. In 2024, more than 90% of Finnvera’s employees responded to the
company’s extensive Easy Flow personnel survey. The overall index of
the survey reached 78.8 points (2021: 76.8), which means that Finnvera
ranked as one of the most inspiring workplaces in Finland. Finnvera’s Emp-
loyer Net Promoter Score (eNPS) also improved compared to the previous
survey, reaching 40 points (2023: 35).
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Sustainability
Business
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Governance
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financial statements
ANNUAL REPORT 2024
Administration
Personnel
At the end of the financial period, the Group had 374 employees (368), of
whom 351 (353) held a permanent post and 23 (15) a fixed-term post. The
Group’s average number of employees during the period under review was
372 (369), and the personnel expenses totalled EUR 33 million (EUR 32
million).
Changes in senior management
Juuso Heinilä, M.Sc. (Tech.), M.Sc. (Econ.), took on the role of Finnvera’s
CEO on 1 June 2024. His appointment was decided by the Board of Direc-
tors of Finnvera plc in April. Heinilä has worked at Finnvera since 2016 and
has previously served as Executive Vice President responsible for SME
and midcap financing.
The previous CEO, Pauli Heikkilä, served as a special advisor to Finnvera’s
Board of Directors until the end of November 2024.
The Board of Directors of Finnvera plc appointed Juha Ketola, M.Sc.
(Tech.), as Executive Vice President for SME and midcap financing and
a member of the company’s Management Group from 1 January 2025.
Ketola substituted for Executive Vice President from the beginning of June
2024, before which he held the role of Regional Director for a long period,
most recently in the Central Finland region.
From 1 June 2024, the tasks of the Regional Director for Central Finland
were carried out by Regional Manager Kari Hytönen in addition to his other
duties.
Supervisory Board, Board of Directors and auditor
The State of Finland as the sole shareholder of Finnvera plc, and the
Ministry of Economic Affairs and Employment as the State’s representa-
tive, modified the composition of the company’s Board of Directors from 4
December 2024. LL.M. Jan Vapaavuori was appointed Chair of the Board,
and Pia Santavirta, L.L.M. and CEO of Finnish Industry Investment Ltd, was
appointed a new Board member.
Director General, LL.M. with court training Jan Hjelt from the Ministry
of Economic Affairs and Employment continued as First Vice Chair, and
Director General, Lic. Sc. (Econ.) Mikko Spolander from the Ministry of
Finance continued as Second Vice Chair of the Board. Hannu Jaatinen,
M.Sc. (Econ.), eMBA; Eila Kreivi, M.S. Sc.; Anne Nurminen, Entrepreneur;
and Elina Piispanen, M.Sc. (Econ.) continued as members of the Board.
The Board’s term of office extends until the end of the Annual General
Meeting in 2025. Three committees assist the Board in managing its
tasks: the Audit Committee, the Risk Committee and the Remuneration
and Nomination Committee.
Members of the Board of Directors 2024
Members
Membership
2024
Chair Petri Ekman 1 Jan.–4 Dec.
Chair Jan Vapaavuori 4 Dec.–31 Dec.
I Vice Chair Elise Pekkala 1 Jan.–21 Mar.
I Vice Chair Jan Hjelt 21 Mar.–31 Dec.
II Vice Chair Mikko Spolander 1 Jan.–31 Dec.
Hannu Jaatinen 1 Jan.–31 Dec.
Ritva Laukkanen 1 Jan.–21 Mar.
Eila Kreivi 21 Mar.–31 Dec.
Anne Nurminen 1 Jan.–31 Dec.
Elina Piispanen 1 Jan.–31 Dec.
Petri Viertiö 1 Jan.–4 Dec.
Pia Santavirta 4 Dec.–31 Dec.
On 21 March 2024, Finnvera’s Annual General Meeting appointed
Hanna-Maija Kiviranta, First Vice Chair of Business School Graduates in
Finland, to Finnvera’s Supervisory Board as a new member, and Johanna
Reinikainen, Regional Manager, was appointed to the Board as Finnvera’s
personnel representative.
Sofia Vikman, Member of Parliament, continued to serve as Chair of the
Supervisory Board, and Seppo Eskelinen, Member of Parliament, as its
Vice Chair. Members of Parliament Hilkka Kemppi, Rami Lehtinen, Aki
Lindén, Onni Rostila, Hanna Sarkkinen, Mari-Leena Talvitie, Sofia Virta and
Ville Väyrynen continued as members of the Supervisory Board, as did
Mari Laaksonen, Chair of the Council of Federation of Finnish Enterprises;
Kari Luoto, Managing Director (Finnish Grocery Trade Association);
Veli-Matti Mattila, Director, Chief Economist (Finance Finland); Seppo
Nevalainen, Economist (Finnish Confederation of Professionals STTK);
Katja Syvärinen, Director (Central Organisation of Finnish Trade Unions
SAK); and Tommi Toivola, Director (Confederation of Finnish Industries).
Ernst & Young Ltd was elected as Finnvera’s regular auditor, with Miikka
Hietala, Authorised Public Accountant, as the principal auditor.
Other events during the period under review
Finnvera, Tesi and Business Finland to step up their cooperation
Finnvera, Tesi and Business Finland are also stepping up their cooperation
on bolstering the Finnish economy through the work of their Boards
of Directors. Pia Santavirta, CEO of Tesi, was appointed a member of
Finnvera’s Board of Directors and Lassi Noponen, CEO of Business Finland,
was appointed a member of Tesi’s Board of Directors on 4 December
2024.
Replacing Board members is part of a more extensive rearrangement in
the Ministry of Economic Affairs and Employment’s administrative branch
aiming to raise the strategic level of specialised financing institutions’ role
in industrial policy and cooperation between the companies.
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ANNUAL REPORT 2024
Export credit agencies’ financing supports
EU Global Gateway strategy
Finland and Finnvera are involved in implementing the strategy, and
Finnvera has agreed with European export credit agencies that Finnvera’s
export financing and export credit guarantees can be used in Global
Gateway compliant export projects. Twenty European export credit
agencies, including Finnvera, from 19 Member States signed a letter of
intent on financing opportunities for transactions offered under the Global
Gateway programme.
Finnvera accepted as an issuer in Nasdaq Helsinki
Finnvera was accepted as an issuer in Nasdaq Helsinki on 20 December
2024. Finnvera aims to list new bonds issued under the EMTN programme
on Nasdaq Helsinki as a Finnish issuer.
Long-term funding amount for 2025
In 2024, Finnvera issued one EUR 1 billion bond with a term to maturity of
slightly over 5 years. Finnvera will use the funds to finance its export cre-
dits. The goal of the funding is to make competitive financing available for
the clients of Finnish export companies. The planned amount of long-term
funding for 2025 is EUR 1 to 2 billion.
Industrial and ownership policy goals guide Finnvera’s operations
The Ministry of Employment and the Economy sets the industrial and
ownership policy goals for Finnvera. When determining these goals, the
Finnish Government Programme, the ministry’s corporate strategy, the
policy objectives for the ministry’s branch of administration, and the
goals of EU programmes were taken into consideration. The goals of the
industrial and ownership policy and Finnvera’s strategy support each other
and are examined in parallel. The issues to be monitored regarding the
industrial and ownership policy goals included the overhaul of the legis-
lation governing Finnvera together with the Ministry of Economic Affairs
and Employment, domestic financing, EU financing, export financing,
impact, climate change and corporate responsibility, self-sustainability and
Finnvera’s risk management. All goals set for 2024 were achieved.
Outlook for financing
The worst of the recession is behind us, and the Finnish economy is
forecast to start growing in 2025. Great expectations are currently placed
on the improved outlook for exports as well as the growth and renewal of
the entire business sector.
We expect that the demand for Finnvera’s domestic financing will increase,
including financing for investments, as the economic upturn drives a
need for more production capacity. Due to the long-standing uncertainty,
the economic position of many companies is weak. Finnvera’s role is
stressed in arranging financing and sharing the risk with other providers of
financing.
We encourage companies to grasp the growth opportunities created by the
green transition with the help of our climate and digitalisation loans and
other incentives for sustainable financing. We will continue piloting loans
for micro-enterprises’ growth projects until the end of March 2025. While
we expect the high demand for the loans to continue, we will reassess
small companies’ access to financing after the conclusion of the pilot.
Finnvera strives to be active wherever our input is needed to arrange
access to financing.
We expect that the demand for export credit guarantees will start
growing in 2025 and that this growth will continue in 2026. Exportation
of investment goods, which is vital for Finland’s exports, is post-cyclical
and the increase in demand will be reflected in export credit guarantees
granted by Finnvera with a delay. Positive signs can already be seen in
several sectors, however. Finnvera plays an important role in granting
guarantees for long-term trade. We encourage export companies to seek
growth in emerging and new markets and to rely on Finnvera for financing
export transactions and risk hedging. We will continue to grant export
credit guarantees to Ukraine as part of Finland’s national reconstruction
programme for the country.
Finnvera, the Tesi Group and Business Finland will step up their coopera-
tion with the goal of boosting companies’ growth, exports, and the impact
of financing. We will continue to work actively together with Team Finland
and promote the growth and internationalisation of companies, also
while the renewal of public export functions is underway. Finnvera’s Trade
Facilitators strive to bring together foreign buyers and Finnish exporters
and to promote trade using Finnvera’s export financing together with
Business Finland. The aims also include increasing the number of midcap
enterprises in Finland.
Outlook for 2025
The business outlook for cruise shipping companies continued to improve
in 2024. The credit loss risk of export financing liabilities remains high,
however, which causes uncertainty about the Finnvera Group’s financial
performance in 2025.
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ANNUAL REPORT 2024
Board of Director’s proposal for measures
concerning the result for the financial period
The parent company’s profit for the financial period was EUR 195,383,571.53.
The Board of Directors proposes that, by virtue of Section 4 of the Act on the State-Owned Specialised Financing
Company, the result of the financial period be transferred to the non-restricted equity funds as follows:
To the reserve for export credit guarantee and special guarantee operations; the share of export credit guarantee
and special guarantee operations EUR 167,828,630.50
To the reserve for domestic operations; the share of domestic operations EUR 27,554,941.03
The gains from revaluation of defined benefit pension plans, EUR -120,717.00, were entered directly into retained
earnings during the financial period. The Board of Directors proposes that this amount be transferred to the
reserve for domestic operations.
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Sustainability
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ANNUAL REPORT 2024
Key figures
Finnvera Group 2020 2021 2022 2023 2024
Net interest income, MEUR 51 55 69 115 139
Net fee and commission income, MEUR 143 167 204 177 198
Other operating income, MEUR 349 4 0 0 0
- of which fund payment from The State Guarantee Fund, MEUR 349 - - - -
Operational expenses, MEUR -44 -46 -49 -50 -53
- of which personnel expenses including
social security costs, MEUR
-29 -30 -30 -32 -33
Realised credit losses and change in
expected credit losses (net), MEUR
-1,233 -11 -148 210 -49
- Realised credit losses and change in
expected credit losses total, MEUR
-1,269 -46 -176 192 -70
- Credit loss compensations from the State, MEUR 36 35 29 18 20
Operating result, MEUR -740 164 64 439 236
Result, MEUR -748 153 55 433 228
Loans to and receivables from customers, MEUR 7,088 7,404 6,979 7,924 7,388
Investments, MEUR 3,474 3,323 3,165 3,554 5,296
Liabilities, MEUR 11,946 11,356 11,726 12,969 13,214
- of which debt securities in issue, MEUR 10,379 10,285 9,663 10,585 10,830
Shareholders’ equity, MEUR 727 863 909 1,333 1,542
- of which non-restricted equity, MEUR 473 626 682 1,115 1,343
Balance sheet total, MEUR 12,673 12,220 12,635 14,302 14,756
1
Return on equity, ROE, % -68.3 19.2 6.3 38.7 15.8
Return on assets, ROA, % -5.9 1.2 0.4 3.2 1.6
Equity ratio, % 5.7 7.1 7.2 9.3 10.5
25.1 23.9 25.7 24.3 25.5
2
1.3 3.4 3.2 5.6 5.7
Expense-income ratio, % 26.4 23.5 20.7 19.4 17.3
Average number of employees 360 366 368 369 372
Finnvera plc
Financing granted, domestic loans and guarantees, EUR bn 1.4 1.5 1.0 1.8 0.9
Exposure, domestic loans and guarantees, EUR bn 2.6 3.0 2.7 3.0 2.9
Financing granted, export credit guarantees, export
guarantees and special guarantees, EUR bn
3.2 4.6 5.9 5.4 2.9
Exposure, export credit guarantees, export
guarantees and special guarantees, EUR bn
22.4 22.7 23.4 23.4 21.1
Number of clients 26,463 25,771 24,430 23,113 21,149
NPS index (net promoter score) 56 67 72 64 79
1 Formulas for the key indicators are presented in the Note H2.
2 The capital adequacy ratio Tier 1 is calculated according to Basel III standard method. No minimum requirement has been set for the capital
Result, MEUR
2020 2021 2022 2023 2024
500
250
0
-250
-500
-750
Net fee and commission income,
MEUR
2020 2021 2022 2023 2024
240
200
160
120
80
40
0
Realised credit losses
and change in expected
credit losses (net), MEUR
2020 2021 2022 2023 2024
250
0
-250
-500
-750
-1,000
-1, 250
Expense-income ratio, %
2020 2021 2022 2023 2024
30
25
20
15
10
5
0
Net interest income, MEUR
2020 2021 2022 2023 2024
140
120
100
80
60
40
20
0
Equity ratio, %
2020 2021 2022 2023 2024
12
10
8
6
4
2
0
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Total exposure from business operations
Finnvera Group Finnvera plc
(EUR 1,000) 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023
Contingent liabilities, drawn 1,482,714 1,617,006 1,482,714 1,617,006
Loans included in the balance sheet, gross 910,441 666,257 910,441 666,257
included in the balance sheet
30,130 30,046 30,130 30,046
Guarantee receivables included in the balance sheet 77,483 61,761 77,483 61,761
2,500,768 2,375,070 2,500,768 2,375,070
Contingent liabilities, undrawn 411,634 670,247 411,634 670,247
2,912,402 3,045,317 2,912,402 3,045,317
Contingent liabilities, drawn
2
6,710,783 5,520,371 14,085,070 13,984,310
Items included in the balance sheet, gross
1, 2
6,518,873 7,315,186 - -
Recovery receivables included in the balance sheet 192,501 167,865 192,501 167,865
13,422,156 13,003,422 14,277,571 14,152,175
Contingent liabilities, undrawn 6,328,168 8,633,814 6,806,196 9,226,709
19,750,325 21,637,236 21,083,767 23,378,884
22,662,727 24,682,553 23,996,169 26,424,200
Contingent liabilities, drawn
Loans included in the balance sheet, gross
Contingent liabilities, undrawn
Guarantee receivables included in the balance sheet
Investments in domestic financing bonds included in the balance sheet
Contingent liabilities, drawn
Contingent liabilities, undrawn
Recovery receivables included in the balance sheet
Total exposure, domestic operations 31 Dec 2024
Finnvera plc
Total exposure, export credit and special guarantee
operations 31 Dec 2024
Finnvera plc
2.9 EUR bn
21.1 EUR bn
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Financial Statements
Finnvera Group
The financial statements include
both the consolidated and the parent
company’s financial statements.
The financial statements are prepared
in accordance with the International
Financial Reporting Standards (IFRS).
Notes to the financial statements also
comply with the currently valid
requirements of the Finnish Accounting
and Limited Liability Companies Acts.
EXPECTED CREDIT LOSS BASED ON THE BALANCE SHEET ITEMS
31 DEC 2024, MEUR
1
LOANS AND GUARANTEES
OPERATIONAL EXPENSES
EXPORT CREDIT GUARANTEES,
EXPORT GUARANTEES AND
SPECIAL GUARANTEES
1
Expected credit losses (ECL) according to IFRS 9 standard.
Includes expected credit losses from guarantee recovery receivables.
139
MEUR
(115)
NET INTEREST INCOME
228
MEUR
(433)
RESULT
198
MEUR
(177)
NET FEE AND COMMISSION INCOME
Realised credit losses and change in expected credit losses, net (MEUR)
2024 2023
Realised credit losses -121 -128
Credit loss compensations from the State 20 18
Change in expected credit losses 51 320
Total -49 210
Personnel expenses, 33 MEUR
IT expenses, 8 MEUR
Other, 12 MEUR
53 MEUR
Locally operating small companies, 24 MEUR
SMEs focusing on the domestic
markets, 43 MEUR
SMEs seeking growth and
internationalisation, 44 MEUR
Large corporates, 35 MEUR
SMEs focusing on the domestic markets, 1 MEUR
SMEs seeking growth and internationalisation, 24 MEUR
Large corporates, 973 MEUR
999 MEUR146 MEUR
| Consolidated comprehensive income statement | |||||||
Finnvera Group | Finnvera plc | ||||||
(EUR 1,000) | Note | 1–12/2024 | 1–12/2023 | 1–12/2024 | 1–12/2023 | ||
| Interest income | D1 | ||||||
| - Interest from loans | |||||||
| passed on to customers | |||||||
- Other interest income | |||||||
Total interest income | |||||||
| Interest expense | D1 | - | - | - | - | ||
Net interest income | |||||||
| Net fee and commission income | D2 | ||||||
| | D3 | - | - | ||||
instruments carried at fair value | |||||||
| exchange gains and losses | |||||||
| Net income from investments | D4 | - | - | ||||
| Other operating income | D5 | ||||||
| Total operational expenses | D6 | - | - | - | - | ||
- Personnel expenses | - | - | - | - | |||
- Other operational expenses | - | - | - | - | |||
| Depreciation and amortisation | D7 | - | - | - | - | ||
| Other operating expenses | D8 | - | - | - | - | ||
| Realised credit losses and change | E4 | - | - | ||||
| in expected credit losses, net | |||||||
- Realised credit losses | - | - | - | - | |||
- Credit loss compensa - tions from the State | |||||||
| - Change in expected | |||||||
| credit losses | |||||||
Operating result | |||||||
| Income tax | D9 | - | - | ||||
Result |
Finnvera Group | Finnvera plc | ||||
(EUR 1,000) | Note | 1–12/2024 | 1–12/2023 | 1–12/2024 | 1–12/2023 |
| Other comprehensive income | |||||
Items that will not be reclas - | |||||
| | F5 | - | - | ||
| | |||||
| - Change in credit risk | |||||
| associated with liabilities | |||||
| carried at fair value | |||||
| | |||||
| | |||||
- Change in fair value of invest - ments recognised at fair value through comprehensive income | - | - | - | - | |
| - Change in ECL of investments | |||||
recognised at fair value through comprehensive income | |||||
| - | - | - | - | |
Total other comprehensive income | - | - | - | - | |
Total comprehensive income | |||||
| Distribution of the result | |||||
| attributable to equity holders | |||||
| of the parent company | |||||
| Distribution of the total | |||||
| comprehensive income | |||||
| attributable to equity holders | |||||
| of the parent company |
25
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| Balance sheet | |||||
Finnvera Group | Finnvera plc | ||||
(EUR 1,000) | Note | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
| ASSETS | |||||
| Loans to and receivables from credit institutions | E1 | ||||
- Payable on demand | |||||
- Investment accounts and deposits | |||||
- Other | |||||
| Loans to and receivables from customers | E2 | ||||
- Loans | |||||
- Debt Securities | |||||
- Guarantee receivables | |||||
- Receivables from export credit and special guarantee operations | |||||
| Investments | E3 | ||||
- Debt securities | |||||
- Investments in group companies | |||||
- Other shares and participations | |||||
| Derivatives | E11 | ||||
| Intangible assets | E5 | ||||
| Tangible assets | E5 | ||||
| Other Assets | E6 | ||||
- Credit loss receivables from the state | |||||
- Other | |||||
| Prepayments and accrued income | E7 | ||||
| Tax assets | E8 | ||||
Assets |
Finnvera Group | Finnvera plc | ||||
(EUR 1,000) | Note | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
| LIABILITIES | |||||
| Liabilities to other institutions | E9 | ||||
| Debt securities in issue | E10 | ||||
| Derivatives | E11 | ||||
| Provisions | E13 | ||||
| Other liabilities | E12 | ||||
| Accruals and deferred income | E14 | ||||
| Tax liabilities | E8 | ||||
Liabilities | |||||
| EQUITY | E19 | ||||
| Equity attributable to the parent | |||||
| company's shareholders | |||||
Share capital | |||||
Share premium | |||||
Fair value reserve | - | - | - | - | |
| Non-restricted reserves | |||||
- Reserve for domestic operations | |||||
- Reserve for export credit guaran - tees and special guarantees | |||||
Retained earnings | |||||
Non-restricted equity | |||||
Total equity, equity attributable to the parent company's shareholders | |||||
Total liabilities and equity |
26
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| Table 1: Contingent liabilities according to the status of commitments | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
8,193,497 | 7,137,377 | 15,567,784 | 15,601,316 | |
4,286,246 | 4,499,594 | 4,764,273 | 5,092,488 | |
2,453,557 | 4,804,467 | 2,453,557 | 4,804,467 | |
Contingent liabilities total | 14,933,299 | 16,441,438 | 22,785,614 | 25,498,272 |
| Table 2: Contingent liabilities by business area | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
| Domestic operations | ||||
1,482,714 | 1,617,006 | 1,482,714 | 1,617,006 | |
359,249 | 608,662 | 359,249 | 608,662 | |
52,385 | 61,585 | 52,385 | 61,585 | |
Domestic operations total | 1,894,348 | 2,287,253 | 1,894,348 | 2,287,253 |
| Export credit guarantees, special guarantees and export credit commitments | ||||
6,031,039 | 4,888,066 | 6,031,039 | 4,888,066 | |
2,093,712 | 1,589,096 | 2,093,712 | 1,589,096 | |
- | - | 3,729 | 11,188 | |
- | - | 6,511,415 | 7,292,811 | |
1,697,167 | 2,150,018 | 1,697,167 | 2,150,018 | |
679,743 | 632,306 | 1,538,887 | 1,792,246 | |
136,118 | 151,817 | 614,145 | 744,711 | |
| Offers given | ||||
2,401,171 | 4,742,883 | 2,401,171 | 4,742,883 | |
Export credit guarantees, special guarantees and export credit commitments total | 13,038,951 | 14,154,186 | 20,891,266 | 23,211,019 |
Contingent liabilities total 1 | 14,933,299 | 16,441,438 | 22,785,614 | 25,498,272 |
| Table 3: Liability for export credit guarantees calculated according | ||
to the Act on the State’s Export Credit Guarantees 2 | ||
| Finnvera plc | ||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 |
Liability according to the Act on the State’s Export Credit Guarantees | 16,707,992 | 17,735,482 |
| Table 4: Possible obligations according to IAS 37 | ||||
| Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
| Possible obligation arising to cover losses of fund payment | 349,023 | 349,023 | 349,023 | 349,023 |
| in accordance with The State Guarantee Fund Act |
27
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| Change in equity | |||||||||
| Fair value through OCI | |||||||||
| Change in | Reserve for | ||||||||
| the credit risk | export credit | ||||||||
| associated with | Reserve for | guarantees | |||||||
| Share premium | Fair value | | liabilities carried | domestic | and special | Retained | |||
(EUR 1,000) | Share capital | reserve | through OCI | hedging | at fair value | operations | guarantees | earnings | Total equity |
| 31 Dec 2024 | |||||||||
| Finnvera Group's equity, equity attributable to the parent company's shareholders | |||||||||
| - | - | - | ||||||
| - | ||||||||
| | - | - | |||||||
| at fair value through comprehensive income | |||||||||
Change in credit risk associated with liabilities carried at fair value | |||||||||
| - | - | |||||||
Change in fair value of investments recognised at fair value through comprehensive income | - | - | |||||||
Change in ECL of investments recognised at fair value through comprehensive income | |||||||||
Result | |||||||||
Total equity at 31 Dec | - | - | |||||||
| 31 Dec 2023 | |||||||||
| Finnvera Group's equity, equity attributable to the parent company's shareholders | |||||||||
| - | - | - | ||||||
| - | - | |||||||
| | |||||||||
| at fair value through comprehensive income | |||||||||
Change in credit risk associated with liabilities carried at fair value | |||||||||
| - | - | |||||||
| Change in fair value of investments recognised | - | - | |||||||
| at fair value through comprehensive income | |||||||||
Change in ECL of investments recognised at fair value through comprehensive income | |||||||||
Result | |||||||||
Total equity at 31 Dec | - | - | - |
28
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| Fair value through OCI | |||||||||
| Change in | Reserve for | ||||||||
| the credit risk | export credit | ||||||||
| associated with | Reserve for | guarantees | |||||||
| Share premium | Fair value | | liabilities carried | domestic | and special | ||||
(EUR 1,000) | Share capital | reserve | through OCI | hedging | at fair value | operations | guarantees Retained earnings | Total equity | |
| 31 Dec 2024 | |||||||||
| Finnvera plc's equity, Equity attributable to the parent company's shareholders | |||||||||
| - | - | |||||||
| - | ||||||||
| | - | - | |||||||
| at fair value through comprehensive income | |||||||||
Change it the credit risk associated with liabilities carried at fair value | |||||||||
| - | - | |||||||
| Change in the fair value of investments recognised | - | - | |||||||
| at fair value through comprehensive income | |||||||||
Change in the ECL of investments recognised at fair value through comprehensive income | |||||||||
Result | |||||||||
Total equity at 31 Dec | - | - | |||||||
| 31 Dec 2023 | |||||||||
| Finnvera plc's equity, Equity attributable to the parent company's shareholders | |||||||||
| - | - | |||||||
| - | - | |||||||
| | |||||||||
| at fair value through comprehensive income | |||||||||
Change it the credit risk associated with liabilities carried at fair value | |||||||||
| - | - | |||||||
| Change in the fair value of investments recognised | - | - | |||||||
| at fair value through comprehensive income | |||||||||
Change in the ECL of investments recognised at fair value through comprehensive income | |||||||||
Result | |||||||||
Total equity at 31 Dec | - | - |
29
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| Statement of cash flows | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
| | ||||
Withdrawal of loans granted | - | - | - | - |
Repayments of loans granted | ||||
Interest received | ||||
Interest paid | - | - | - | - |
| | ||||
| commission income and expense | ||||
Payments received from other operating income | ||||
Payments for operating expenses | - | - | - | - |
| - | - | - | - |
Net credit loss compensation from the State | ||||
Net taxes paid | - | - | ||
Net cash used in (-) / from (+) operating activities (A) | - | |||
| | ||||
Purchase of property and equipment and intangible assets | - | - | - | - |
Short-term and other liquid investments made | - | - | - | - |
| Proceeds and maturities of short-term | ||||
| and other liquid investments | ||||
Proceeds from other investments | ||||
Net cash used in (-) / from (+) investing activities (B) | - | - | - | - |
| | ||||
Proceeds from long-term loans | ||||
Repayment of long-term loans | - | - | - | - |
| - | - | - | - |
Payments of lease liabilities | - | - | ||
| ||||
| - | - | ||
| Net change in cash and cash equivalents | - | - | ||
| (A+B+C) increase (+) / decrease (-) | ||||
| Cash and cash equivalents at the beginning of the period | ||||
Translation differences | - | - | ||
Cash and cash equivalents at the end of the period 1 |
1 Cash and cash equivalents comprise of cash and investment accounts held in credit institutions. Cash and cash equivalents are included in
| Changes in liabilities arising from financing activities | |||||||
| Finnvera Group 2024 | |||||||
| Cash | Cash | ||||||
| Opening | from | from | Foreign | Closing | |||
| balance | Fair value | exchange | Other | balance | |||
| (EUR 1,000) | 1 Jan | activities | activities | changes | differences | changes | 31 Dec |
| Long-term liabilities to credit | 128,525 | 72,631 | -102,585 | - | 4,956 | - | 103,527 |
| and other institutions | |||||||
| Short-term liabilities to credit | - | - | - | - | - | - | - |
| and other institutions | |||||||
Debt securities in issue | 10,584,813 | 1,403,338 | -1,579,350 | 197,862 | 212,521 | 10,926 | 10,830,110 |
Security given for derivatives 1 | -735,170 | - | 45,680 | - | - | - | -689,490 |
Security received for derivatives 2 | 41,550 | - | 21,060 | - | - | - | 62,610 |
Total | 10,019,718 | 1,475,970 | -1,615,195 | 197,862 | 217,477 | 10,926 | 10,306,758 |
| Finnvera plc 2024 | |||||||
| Cash | Cash | ||||||
| Opening | from | from | Foreign | Closing | |||
| balance | Fair value | exchange | Other | balance | |||
| (EUR 1,000) | 1 Jan | activities | activities | changes | differences | changes | 31 Dec |
| Long-term liabilities to credit | 286,150 | 492,631 | -472,668 | - | 4,956 | - | 311,069 |
| and other institutions | |||||||
| Short-term liabilities to credit | - | - | - | - | - | - | - |
| and other institutions | |||||||
Debt securities in issue | 10,584,813 | 1,403,338 | -1,579,350 | 197,862 | 212,521 | 10,926 | 10,830,110 |
Security given for derivatives 1 | -735,170 | - | 45,680 | - | - | - | -689,490 |
Security received for derivatives 2 | 41,550 | - | 21,060 | - | - | - | 62,610 |
Total | 10,177,343 | 1,895,970 | -1,985,278 | 197,862 | 217,477 | 10,926 | 10,514,299 |
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| Finnvera Group 2023 | |||||||
| Cash | Cash | ||||||
| Opening | from | from | Foreign | Closing | |||
| balance | Fair value | exchange | Other | balance | |||
| (EUR 1,000) | 1 Jan | activities | activities | changes | differences | changes | 31 Dec |
| Long-term liabilities to credit | 37,292 | 119,547 | -26,961 | - | -1,353 | - | 128,525 |
| and other institutions | |||||||
| Short-term liabilities to credit | - | - | - | - | - | - | - |
| and other institutions | |||||||
Debt securities in issue | 9,662,606 | 3,296,577 | -2,672,577 | 451,152 | -169,653 | 16,707 | 10,584,813 |
Security given for derivatives 1 | -1,094,350 | 359,180 | - | - | - | - | -735,170 |
Security received for derivatives 2 | 62,270 | - | -20,720 | - | - | - | 41,550 |
Total | 8,667,818 | 3,775,304 | -2,720,258 | 451,152 | -171,006 | 16,707 | 10,019,718 |
| Finnvera plc 2023 | |||||||
| Cash | Cash | ||||||
| Opening | from | from | Foreign | Closing | |||
| balance | Fair value | exchange | Other | balance | |||
| (EUR 1,000) | 1 Jan | activities | activities | changes | differences | changes | 31 Dec |
| Long-term liabilities to credit | 175,000 | 485,374 | -372,893 | - | -1,332 | - | 286,150 |
| and other institutions | |||||||
| Short-term liabilities to credit | - | - | - | - | - | - | - |
| and other institutions | |||||||
Debt securities in issue | 9,662,606 | 3,296,577 | -2,672,577 | 451,152 | -169,653 | 16,707 | 10,584,813 |
Security given for derivatives 1 | -1,094,350 | 359,180 | - | - | - | - | -735,170 |
Security received for derivatives 2 | 62,270 | - | -20,720 | - | - | - | 41,550 |
Total | 8,805,526 | 4,141,131 | -3,066,190 | 451,152 | -170,985 | 16,707 | 10,177,343 |
31
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Notes to the financial statements
A Accounting principles
| Basic information | |
Name of the reporting entity | |
Domicile | Kuopio, |
Legal form | |
Home country | |
Registered address | |
Main place of business | |
| Description of the nature | |
| and main functions of | |
| the entity's operations | |
Name of parent company |
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C
E
G
B
D
F
H
A
A5 Principles for recognising income and expenses
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C
E
G
B
D
F
H
A
A6 Intangible and tangible assets
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C
E
G
B
D
F
H
A
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C
E
G
B
D
F
H
A
| Table 1: Classification of financial assets | |
| Cash deposits, investment | Amortised cost |
Loan receivables from clients | Amortised cost |
| Amortised cost | |
| papers and commercial papers | |
Investments in bonds | At fair value through other com - |
| prehensive income items or at fair | |
Derivative contracts | |
| or loss (mandatory) | |
Shares and participations |
| Table 2: Classification of financial liabilities | |
Liabilities to others | Amortised cost |
| Debt securities in issue | Debt securities in issue included in hedge |
| (EMTN programme) | accounting are measured at amortised cost |
| and fair value with regard to the hedged risk | |
| Debt securities in issue | Not included in hedge accounting; measured at |
| (EMTN programme) | |
| Debt securities in issue | Amortised cost |
| (ECP programme) | |
Derivative contracts |
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C
E
G
B
D
F
H
A
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C
E
G
B
D
F
H
A
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C
E
G
B
D
F
H
A
| Table 3: Determination of ECL calculation stages, domestic financing | |||
Factor determining the stage | Stage 1 | Stage 2 | Stage 3 |
| x | |||
| granted to the moment the situation is reviewed | |||
Zero-interest loans and subordinated loans | x | ||
Payment behaviour: receivable that is more than 30 days overdue | x | ||
Payment behaviour: receivable that is more than 90 days overdue | x | ||
x | x | ||
Guarantee receivables | x | ||
Client’s legal status (bankruptcy etc.) | x | ||
Other clients in the risk category D | x | ||
Debt holidays | x |
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C
E
G
B
D
F
H
A
| Table 4: Determination of ECL calculation stages, export financing | |||
Factor determining the stage | Stage 1 | Stage 2 | Stage 3 |
| x | |||
| granted to the moment the situation is reviewed | |||
x | x | ||
Receivables from export credit and special guarantee operations | x | ||
Client’s legal status (bankruptcy etc.) | x | ||
Other clients in the risk category D | x | ||
Debt holidays | x |
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B Risk management
IFRS consolidated financial statements,
notes to risk management
The principles, role and responsibilities of risk management
Finnvera’s operational objectives in contributing to financing the growth,
internationalisation and exports of enterprises and the strategies to
achieve these objectives form the foundation of risk management.
Finnvera supplements the financial market and at times takes greater
credit risks than providers of financing that operate on commercial
grounds. Credit risk is the principal risk type for the Finnvera Group. Other
key risk types include market and liquidity risks as well as operational risks
associated with the operations.
Risk management is of central importance for maintaining the Finnvera
Group’s ability to take risks and for attaining the company’s long-term goal
of financial self-sustainability. Finnvera’s Board of Directors and executive
management are responsible for arranging and organising internal
control and risk management. The Board of Directors approves Finnvera’s
risk appetite, internal control policy, credit policy and all other key risk
policies and delegates decision-making powers to the CEO and other
decision-making forums regularly.
In internal control and risk management, Finnvera applies a “three lines of
defence” model. In keeping with Finnvera’s internal control and the “three
lines of defence” model, the business units and support functions bear the
primary responsibility for internal control and risk management.
The second line of defence is the Risk Control function, which works
independently of Finnvera’s business areas. It is responsible for monitoring
and evaluating risk management in Finnvera Group and assessing the
Group’s risk position in relation to the risk appetite decided by the Board of
Directors and set out in the strategy. The Risk Control function reports to
the company’s Management Group, the Board of Directors’ Risk Commit-
tee and the Board of Directors.
Additionally, Finnvera has a Compliance function, which is independent
of the business areas and which ensures that the organisation operates
in compliance with key regulations and its internal operating principles.
Compliance monitoring observations are reported to the company’s Man-
agement Group, the Board’s Risk Committee and the Board of Directors.
The third line of defence is internal auditing which reports directly to the
Board of Directors.
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Credit and guarantee risks and risk classification systems
In Finnvera, credit risk arises from a contractual credit or guarantee
counterparty as well as counterparty risks of investments and derivatives.
The reason for a credit loss may be the inability of the enterprise, bank or
sovereign counterparty to fulfil their commitments.
Each counterparty is assigned a credit risk rating corresponding to a
specific insolvency probability (PD). In addition, recovery after possible
insolvency is assessed. Finnvera’s Large Corporates and SME business
areas use symbols corresponding to the S&P scale in risk classifications.
Risk classifications are updated regularly based on the financial state-
ments information or other information at least once a year. In domestic
financing, a risk classification based on an external classification is used
to maintain the risk classification of centralised service production and
other minor liabilities.
Risk-taking is based on an analysis of the counterparty enterprise’s
management, business and finances. In domestic financing, the Credit
Decision Unit is responsible for assessing the credit risk classification, risk
rating and financing proposal. With regard to export financing and in large
projects, a designated analyst is responsible for the risk rating. The export
countries are also classified in accordance with the OECD principles into
eight classes subject to individual five-tier country policies regarding
projects to be financed.
Finnvera uses risk classifications for the following:
-
assessment and pricing of credit risks when credits are granted;
-
definition of credit policies;
-
determination of the authority to make financing decisions;
-
setting and monitoring risk indicators and qualitative objectives for the
credit and financing portfolio;
-
risk reporting on the credit and financing portfolio;
-
assessment of economic capital adequacy and calculation of the
expected loss.
Financing decisions are made by the Board of Directors or by the com-
pany’s decision-making bodies and organisation in accordance with the
decision-making authority delegated by the Board. In both domestic and
export financing, credit policy defines the maximum exposure. Decisions
greater than this limit must be justified separately to the company’s Board
of Directors and, whenever necessary, to the State owner.
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Operational risks
An operational risk is a risk of loss caused by insufficient or inoperable
internal processes, systems, human resources or external events.
Operational risks include risks related to processes, personnel (including
physical safety), and information systems (ICT), as well as model risks,
legal and compliance risks, reputational risks, and information security
and data protection risks. A loss resulting from an operational risk may
materialise as higher costs, lower profits, sanctions or lost reputation, for
instance. The risk control function coordinates the development of oper-
ational risk management. The process teams and units are responsible
for implementing practical measures. Finnvera’s core business operations
and key support units regularly carry out operational risk surveys to assess
the likelihood and severity of the consequences of potential risks and to
assess ways of reducing risks. Continuity management is a key means of
managing operational risks.
The management of operational risks is closely linked to the company’s
quality management. Finnvera has an ISO 9001:2015 quality certificate.
Efforts to protect the company against operational risks include intro-
ducing internal control mechanisms as well as developing processes,
information systems and the quality of operations, and insuring the risks.
Realised operational risk events and near misses are registered in the
management system of operational risks, which is accessible to the entire
personnel. The reasons leading to the events and the measures taken to
prevent the recurrence of similar events are described in the application.
Finnvera’s management and Board of Directors receive regular reports on
realised operational risks.
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| Economic capital by risk type | ||
| Finnvera Group | ||
(MEUR) 31 Dec 2024 | 31 Dec 2023 | |
Credit risks | 2,617 | 2,758 |
Market risks | 236 | 221 |
Operational risks | 45 | 39 |
Total | 2,898 | 3,018 |
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| B1 Credit risks | ||||||
| Finnvera Group | ||||||
31 Dec 2024 | 31 Dec 2023 | |||||
Assets (EUR 1,000) | Gross | ECL | Net | Gross | ECL | Net |
| Receivables | ||||||
| Loans to and receivables from credit | 480,143 | -92 | 480,051 | 1,328,864 | -344 | 1,328,520 |
| institutions – payable on demand | ||||||
Loans to and receivables from credit institutions – other | 98,633 | - | 98,633 | 28,014 | - | 28,014 |
Loans to and receivables from customers | 7,632,535 | -248,383 | 7,388,454 | 8,212,574 | -291,601 | 7,924,390 |
| Loans to and receivables | 7,330,681 | -133,520 | 7,197,160 | 7,953,429 | -191,995 | 7,761,434 |
| from customers | ||||||
30,130 | -4,302 | 25,828 | 30,046 | -3,418 | 26,628 | |
Guarantee receivables | 77,483 | -31,034 | 46,449 | 61,761 | -24,580 | 37,181 |
Fee and recovery receivables, | 194,241 | -79,526 | 114,715 | 167,338 | -71,608 | 95,730 |
Debt securities | 5,282,914 | -168 | 5,282,747 | 3,541,098 | -422 | 3,540,676 |
Derivatives 1 | 14,030 | - | 14,030 | -522 | - | -522 |
| Credit and Guarantee loss | 10,650 | - | 10,650 | 11,744 | - | 11,744 |
| receivables from the State | ||||||
Fund transfer receivables from The State Guarantee Fund | 349,023 | - | 349,023 | 349,023 | - | 349,023 |
Interest receivables | 248,819 | -1,862 | 246,957 | 228,443 | -1,243 | 227,200 |
Fee and commission receivables | 6,119 | -1,058 | 5,061 | 6,335 | -824 | 5,513 |
| Trade receivables of venture | - | - | - | 4,698 | -94 | 4,604 |
| capital investments | ||||||
Total | 14,122,865 | -251,562 | 13,875,606 | 13,710,270 | -294,528 | 13,419,162 |
| Liabilities (EUR 1,000) | ||||||
Off-balance sheet items | 14,933,299 | -893,335 | 16,441,438 | -900,814 | ||
Equity - Fair value | -196 | -362 | ||||
Total | -893,531 | -901,176 |
| Debt securities by credit rating grades and sector | ||||||||
Finnvera Group | Finnvera Group | |||||||
31 Dec 2024 | 31 Dec 2023 | |||||||
| Credit | Governments/ | Credit | Governments/ | |||||
| (EUR 1,000) | institutions | Corporates | Municipalities | Total 1 | institutions | Corporates | Municipalities | Total 1 |
| Risk class | ||||||||
AAA | 2,305,644 | - | 286,499 | 2,592,143 | 1,715,944 | - | 24,166 | 1,740,110 |
AA | 520,421 | - | 1,608,811 | 2,129,233 | 205,977 | - | 1,003,418 | 1,209,395 |
A | 488,106 | - | - | 488,106 | 371,301 | - | - | 371,301 |
BBB | - | 73,265 | - | 73,265 | 108,912 | 110,958 | - | 219,869 |
BB | - | - | - | - | - | - | - | - |
B | - | - | - | - | - | - | - | - |
Total | 3,314,172 | 73,265 | 1,895,310 | 5,282,747 | 2,402,134 | 110,958 | 1,027,584 | 3,540,676 |
| B2 Loans and guarantees by credit rating, gross | ||||
| Finnvera plc | ||||
31 Dec 2024 | 31 Dec 2023 | |||
Credit rating (EUR 1,000) | € | % | € | % |
AAA | - | 0% | - | 0% |
AA | 693 | 0% | 640 | 0% |
A | 7,062 | 0% | 17,499 | 1% |
BBB | 85,885 | 3% | 114,377 | 5% |
BB | 760,162 | 30% | 790,882 | 33% |
B | 847,784 | 34% | 979,521 | 41% |
CCC | 644,582 | 26% | 329,735 | 14% |
D | 154,600 | 6% | 142,416 | 6% |
Total | 2,500,768 | 100% | 2,375,070 | 100% |
| B3 Loans and guarantees by sector, gross | ||
| Finnvera plc | ||
Sector (EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 |
Rural trades | 33,098 | 34,610 |
Industry | 1,370,256 | 1,156,497 |
Tourism | 185,062 | 224,167 |
Services to business | 533,209 | 555,609 |
Trade and consumer services | 379,143 | 404,187 |
Total | 2,500,768 | 2,375,070 |
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| B4 Loans and guarantees, gross and collateral shortage | ||||
| Finnvera plc | ||||
| 31 Dec 2024 | ||||
| Amount of | Amount of | Collateral | Collateral | |
| (EUR 1,000) | commitment | collaterals | shortage | shortage-% |
Total | 2,500,768 | 515,185 | 1,985,583 | 79% |
| Finnvera plc | ||||
| 31 Dec 2023 | ||||
| Amount of | Amount of | Collateral | Collateral | |
| (EUR 1,000) | commitment | collaterals | shortage | shortage-% |
Total | 2,375,070 | 439,500 | 1,935,570 | 81% |
| B5.1 Doubtful receivables | ||
| Finnvera plc | ||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 |
Receivables that are more than 90 days overdue | 115,081 | 98,262 |
39,519 | 44,154 | |
Default receivables, total | 154,600 | 142,416 |
| Finnvera plc | ||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 |
0 interest credits | 10,442 | 12,290 |
Debt holidays for debt repayments | 51,718 | 34,582 |
| B5.2 Ageing of past due receivables | ||
| Finnvera plc | ||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 |
1 days-30 days | 34,837 | 14,852 |
31 days-60 days | 5,393 | 6,662 |
61 days-90 days | 3,038 | 5,556 |
over 90 days | 116,872 | 100,044 |
Total | 160,140 | 127,114 |
| B6 Enterprise, bank and sovereign exposure by credit rating, gross | ||
| Finnvera plc | ||
Credit rating (EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 |
AAA | 824,485 | 585 |
AA | 585,745 | 1,061,220 |
A | 371,419 | 623,692 |
BBB | 4,832,470 | 5,644,862 |
BB | 10,072,731 | 6,891,302 |
B | 1,467,629 | 5,779,039 |
CCC | 2,713,808 | 3,085,502 |
D | 11,147 | 72,979 |
No credit rating | 11,831 | 51,838 |
Total | 20,891,266 | 23,211,019 |
| B7 Enterprise, bank and sovereign exposure by country risk classification, gross | |||
| Finnvera plc | |||
31 Dec 2024 | 31 Dec 2023 | ||
0 - Advanced economy | 16,921,966 | 17,474,739 | |
1 | - Very low risks | - | - |
2 - Low risks | 202,984 | 305,975 | |
3 - Relatively low risks | 697,869 | 2,318,343 | |
4 - Intermediate risks | 1,627,787 | 1,887,418 | |
5 - Relatively high risks | 901,402 | 738,383 | |
6 - High risks | 98,912 | 83,622 | |
7 - Very high risks | 403,120 | 361,386 | |
37,225 | 41,153 | ||
Total | 20,891,266 | 23,211,019 |
| B8 Enterprise, bank and sovereign exposure by sector, gross | ||
| Finnvera plc | ||
Sector (EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 |
Telecommunications | 3,231,716 | 3,987,131 |
Cruise shipping | 10,440,584 | 11,511,848 |
Pulp and paper | 2,746,214 | 3,545,393 |
Mining and metals | 765,794 | 598,673 |
Energy | 939,733 | 823,171 |
Other industries | 581,533 | 685,304 |
Others | 2,185,694 | 2,059,498 |
Total | 20,891,266 | 23,211,019 |
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| B9 Liquidity risk, maturity of assets, liabilities and guarantees | |||||||||||||||
| Finnvera Group | Finnvera Group | ||||||||||||||
| 3–12 | >1–5 | >5–10 | Carrying | 3–12 | >1–5 | >5–10 | Carrying | ||||||||
(EUR 1,000) | <3 months | months | years | years | >10 years | Total | Amount | (EUR 1,000) | <3 months | months | years | years | >10 years | Total | Amount |
| 31 Dec 2024 | 31 Dec 2023 | ||||||||||||||
| Assets | Assets | ||||||||||||||
| Loans to and receivables | 308,887 | - | - | - | - | 308,887 | 308,844 | Loans to and receivables | 1,057,371 | - | - | - | - | 1,057,371 | 1,057,133 |
| from credit institutions – | from credit institutions – | ||||||||||||||
| Payable on demand | Payable on demand | ||||||||||||||
| Loans to and receivables from | 171,850 | - | - | - | - | 171,850 | 171,206 | Loans to and receivables from | 272,075 | - | - | - | - | 272,075 | 271,388 |
| credit institutions – Investment | credit institutions – Investment | ||||||||||||||
| accounts and deposits | accounts and deposits | ||||||||||||||
| Loans to and receivables from | 3,651 | 9,996 | 51,656 | 37,296 | - | 102,598 | 98,633 | Loans to and receivables from | - | 6,507 | 22,822 | 4,907 | - | 34,236 | 28,014 |
| credit institutions – Export credits | credit institutions – Export credits | ||||||||||||||
| Receivables from customers | 325,972 | 1,847,164 | 4,194,627 | 2,078,587 | 209,607 | 8,655,957 | 7,227,290 | Receivables from customers | 442,085 | 1,515,777 | 4,839,994 | 2,338,652 | 345,050 | 9,481,558 | 7,791,480 |
| – Loans and debt securities | – Loans and debt securities | ||||||||||||||
Debt securities | 1,094,868 | 749,615 | 3,199,810 | 630,169 | - | 5,674,463 | 5,282,747 | Debt securities | 763,153 | 374,728 | 2,458,905 | 202,128 | - | 3,798,914 | 3,540,676 |
Total assets | 1,905,228 | 2,606,776 | 7,446,092 | 2,746,052 | 209,607 | 14,913,755 | 13,088,721 | Total assets | 2,534,684 | 1,897,012 | 7,321,720 | 2,545,688 | 345,050 | 14,644,154 | 12,688,690 |
| Liabilities | Liabilities | ||||||||||||||
Liabilities to other institutions | -7,576 | -10,430 | -48,438 | -37,201 | - | -103,645 | -103,527 | Liabilities to credit institutions 3 | -22,299 | -45,080 | -56,617 | -5,231 | - | -129,227 | -128,525 |
Debt securities in issue | -46,416 | -632,325 | -9,236,469 | -2,083,750 | - | -11,998,961 | -10,830,110 | Debt securities in issue | -275,807 | -1,042,791 | -7,499,463 | -3,149,177 | - | -11,967,238 | -10,584,813 |
Total liabilities | -53,992 | -642,755 | -9,284,908 | -2,120,951 | - -12,102,605 | -10,933,638 | Total liabilities | -298,107 | -1,087,871 | -7,556,080 | -3,154,408 | - -12,096,465 | -10,713,338 | ||
| Derivatives | Derivatives | ||||||||||||||
Derivatives – receivables | 36,520 | -14,349 | 88,320 | - | - | 110,491 | 140,459 | Derivatives – receivables | 19,001 | 18,622 | 84,857 | 870 | - | 123,350 | 96,359 |
Derivatives – liabilities | -78,119 | -158,143 | -824,673 | -254,423 | -38,180 | -1,353,538 | -706,311 | Derivatives – liabilities | -89,365 | -241,568 | -778,759 | -261,425 | -25,549 | -1,396,666 | -760,660 |
Derivatives, net | -41,599 | -172,492 | -736,353 | -254,423 | -38,180 | -1,243,047 | -565,852 | Derivatives, net | -70,364 | -222,946 | -693,902 | -260,555 | -25,549 | -1,273,316 | -664,301 |
| Assets, liabilities and | 1,809,637 | 1,791,529 | -2,575,168 | 370,679 | 171,427 | 1,568,103 | 1,589,232 | Assets, liabilities and | 2,166,214 | 586,195 | -928,261 | -869,275 | 319,501 | 1,274,373 | 1,311,051 |
| derivatives, net | derivatives, net | ||||||||||||||
Credit commitments 1 | -180 | -2,413,343 | -1,243,332 | - | - | -3,656,854 | - | Credit commitments 1 | -587,532 | -773,651 | -1,397,498 | - | - | -2,758,681 | - |
| Assets, liabilities, derivatives | 1,809,458 | -621,814 | -3,818,500 | 370,679 | 171,427 | -2,088,751 | 1,589,232 | Assets, liabilities, derivatives | 1,578,682 | -187,456 | -2,325,759 | -869,275 | 319,501 | -1,484,307 | 1,311,051 |
| and credit commitments, net | and credit commitments, net | ||||||||||||||
| Guarantees and export | Guarantees and export | ||||||||||||||
credit guarantees 2 | credit guarantees 2 | ||||||||||||||
Guarantees | -210,425 | -624,017 | -648,251 | - | -21 | -1,482,714 | - | Guarantees | -209,791 | -649,178 | -757,988 | - | -50 | -1,617,006 | - |
| Export credit guarantees | -378,298 | -1,256,103 | -2,519,573 | -4,128,703 | -657,935 | -8,940,612 | - | Export credit guarantees | -103,767 | -976,805 | -2,301,667 | -3,199,820 | -679,328 | -7,261,386 | - |
| and special guarantees | and special guarantees | ||||||||||||||
| Total guarantees and export | -588,723 | -1,880,121 | -3,167,823 | -4,128,703 | -657,956 | -10,423,326 | - | Total guarantees and export | -313,557 | -1,625,983 | -3,059,655 | -3,199,820 | -679,378 | -8,878,392 | - |
| credit guarantees | credit guarantees |
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| B10 Market risk sensitivities | ||
| Finnvera Group | ||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 |
| Interest rate risk | ||
| Market interest increase 1 % | ||
- Change in net interest income during the next 12 months | 10,390 | 12,204 |
- Balance sheet interest sensitivity (excl. Equity) | -1,099 | -5,823 |
| Market interest decrease 1 % | ||
- Change in net interest income during the next 12 months | -10,390 | -12,204 |
- Balance sheet interest sensitivity (excl. Equity) | 1,099 | 5,823 |
| Currency risk | ||
The USD strengthens by 10 % against the euro | -13 | 955 |
The USD weakens by 10 % against the euro | 11 | -1,167 |
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C Segment information
Finnvera’s segment information is based on the company’s division into business areas and on the organisational
structure. Assessment of the profitability of Finnvera’s segments is based on the operating profit.
Client enterprises have been divided into segments according to their size and the need for financing at their
development stage. A service concept has been devised for each segment (business area).
Finnvera’s segments are:
1. Locally operating small companies
2. SMEs focusing on the domestic markets
3. SMEs seeking growth and internationalisation
4. Large corporates
5. Export credits
SME and midcap financing includes segments 1–3 and export financing includes segments 4–5.
The clients of the locally operating small companies segment are locally operating companies that have fewer
than 10 employees. This segment offers financial services for the start-up and development of companies in
cooperation with regional enterprise services and other providers of financing.
The clients of the SMEs focusing on the domestic markets are mainly SMEs. The clientele includes companies
engaged in production and in services. In cooperation with other providers of financing, financial solutions are
provided especially for the development and growth needs of companies and for transfers of business to the next
generation.
The clients of the SMEs seeking growth and internationalisation segment are SMEs and midcap enterprises¹ that
have a growth strategy based on internationalisation. Some clients already engage in exports on the international
market, while others are still starting out on this development path. In general, these companies also use the
services of other organisations providing services for growth enterprises (Business Finland and Centres for
Economic Development, Transport and the Environment) and make use of the services offered by Finnvera for
export financing.
The clients of the large corporates segment are generally exporters operating in Finland, as well as domestic
and foreign providers of financing for these The large corporates segment offers to clients almost exclusively
export credits. However in individual cases, the financing solution can be also comprised of special guaranties or
domestic financing products.
The segment for export credits includes Finnvera’s subsidiary’s Finnish Export Credit Ltd’s operations, including
the parent company Finnvera plc’s funding and asset management related to export credit financing on behalf of
Finnish Export Credit Ltd. The subsidiary provides financing for export credits and export financing based on tax
agreements and administers the interest equalisation system for officially supported export credits and domestic
ship financing in accordance with the OECD Arrangement.
Income and expenses are allocated to each segment when they are deemed to fall within that segment, or
allocation is carried out on the basis of internal accounting rules. All income and expenses have been allocated to
segments. There is no notable intra-segment business.
The assets and liabilities of segments are valued according to the principles for drawing up the financial state-
ments. Income statement and balance sheet items of segments include intra-group eliminations.
The Finnvera Group has operations only in Finland. The Group’s clientele consists of a wide spectrum of clients in
various sectors.
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| C1 Result by segment | ||||||||
Total | ||||||||
| (EUR 1,000) | small companies | domestic markets | internationalisation | Export credits | ||||
| Finnvera Group | ||||||||
| 1–12/2024 | ||||||||
| Net interest income | 5,957 | 21,916 | 13,273 | 68,202 | 29,398 | 138,746 | ||
| Net fee and commission income | 8,699 | 17,939 | 27,613 | 133,121 | 10,600 | 197,971 | ||
- | - | - | 3,490 | 4,757 | 8,247 | |||
| Net income from investments | - | - | - | - | -390 | -390 | ||
| Other operating income | 49 | 93 | 149 | 124 | - | 415 | ||
| Total operational expenses | -7,788 | -12,564 | -12,239 | -15,591 | -4,331 | -52,513 | ||
| Depreciation and amortisation | -853 | -1,606 | -1,563 | -971 | -260 | -5,253 | ||
| Other operating expenses | -123 | -1,532 | -132 | -129 | -38 | -1,954 | ||
| Realised credit losses and change in expected credit losses, net | -8,387 | -10,957 | -15,402 | -15,406 | 672 | -49,480 | ||
| - Realised credit losses | -10,844 | -19,041 | -14,438 | -76,261 | - | -120,584 | ||
| - Credit loss compensations from the State | 4,877 | 8,833 | 6,783 | - | - | 20,493 | ||
| - Change in expected credit losses (increase - / decrease +) | -2,420 | -750 | -7,747 | 60,856 | 672 | 50,611 | ||
| Operating result | -2,446 | 13,289 | 11,699 | 172,841 | 40,407 | 235,791 | ||
| Income tax | - | - | - | - | -8,082 | -8,082 | ||
| Result | -2,446 | 13,289 | 11,699 | 172,841 | 32,326 | 227,709 | ||
| Finnvera Group | ||||||||
| 1–12/2023 | ||||||||
| Net interest income | 5,967 | 18,722 | 12,265 | 46,893 | 31,621 | 115,469 | ||
| Net fee and commission income | 8,952 | 17,951 | 22,030 | 114,437 | 14,051 | 177,421 | ||
- | - | - | -110 | -9,353 | -9,463 | |||
| Net income from investments | - | - | - | - | 330 | 330 | ||
| Other operating income | 7 | 31 | 13 | 126 | - | 176 | ||
| Total operational expenses | -7,495 | -12,436 | -12,090 | -13,845 | -3,816 | -49,682 | ||
| Depreciation and amortisation | -839 | -1,550 | -1,401 | -827 | -248 | -4,865 | ||
| Other operating expenses | -102 | -125 | -109 | -105 | -32 | -472 | ||
| Realised credit losses and change in expected credit losses, net | -4,800 | -4,983 | 15,035 | 204,726 | 41 | 210,020 | ||
| - Realised credit losses | -9,640 | -17,104 | -11,068 | -90,624 | - | -128,436 | ||
| - Credit loss compensations from the State | 4,655 | 8,537 | 5,038 | - | - | 18,230 | ||
| - Change in expected credit losses (increase - / decrease +) | 186 | 3,584 | 21,066 | 295,350 | 41 | 320,227 | ||
| Operating result | 1,691 | 17,611 | 35,744 | 351,295 | 32,594 | 438,934 | ||
| Income tax | - | - | - | - | -5,573 | -5,573 | ||
| Result | 1,691 | 17,611 | 35,744 | 351,295 | 27,022 | 433,361 |
51
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Total | ||||||||
| (EUR 1,000) | small companies | domestic markets | internationalisation | Export credits | ||||
| Finnvera plc | ||||||||
| 1–12/2024 | ||||||||
| Net interest income | 5,957 | 21,916 | 13,273 | 68,202 | -798 | 108,550 | ||
| Net fee and commission income | 8,699 | 17,939 | 27,613 | 133,121 | -674 | 186,697 | ||
- | - | - | 3,490 | -308 | 3,183 | |||
| Net income from investments | - | - | - | - | -390 | -390 | ||
| Other operating income | 49 | 93 | 149 | 124 | 6,053 | 6,468 | ||
| Operational expenses | -7,788 | -12,564 | -12,239 | -15,591 | -4,219 | -52,400 | ||
| Depreciation and amortisation | -853 | -1,606 | -1,563 | -971 | -260 | -5,253 | ||
| Other operating expenses | -123 | -1,532 | -132 | -129 | -38 | -1,954 | ||
| Realised credit losses and change in expected credit losses, net | -8,387 | -10,957 | -15,402 | -15,406 | 634 | -49,518 | ||
| - Realised credit losses | -10,844 | -19,041 | -14,438 | -76,261 | -120,584 | |||
| - Credit loss compensations from the State | 4,877 | 8,833 | 6,783 | - | - | 20,493 | ||
| - Change of expected credit losses (increase - / decrease +) | -2,420 | -750 | -7,747 | 60,856 | 634 | 50,573 | ||
| Operating result | -2,446 | 13,289 | 11,699 | 172,841 | - | 195,384 | ||
| Income tax | - | - | - | - | - | - | ||
| Result | -2,446 | 13,289 | 11,699 | 172,841 | - | 195,384 | ||
| Finnvera plc | ||||||||
| 1–12/2023 | ||||||||
| Net interest income | 5,967 | 18,722 | 12,265 | 46,893 | 325 | 84,173 | ||
| Net fee and commission income | 8,952 | 17,951 | 22,030 | 114,437 | -1,261 | 162,110 | ||
- | - | - | -110 | -2,898 | -3,007 | |||
| Net income from investments | - | - | - | - | 330 | 330 | ||
| Other operating income | 7 | 31 | 13 | 126 | 7,393 | 7,569 | ||
| Operational expenses | -7,495 | -12,436 | -12,090 | -13,845 | -3,692 | -49,558 | ||
| Depreciation and amortisation | -839 | -1,550 | -1,401 | -827 | -248 | -4,865 | ||
| Other operating expenses | -102 | -125 | -109 | -105 | -32 | -472 | ||
| Realised credit losses and change in expected credit losses, net | -4,800 | -4,983 | 15,035 | 204,726 | 82 | 210,061 | ||
| - Realised credit losses | -9,640 | -17,104 | -11,068 | -90,624 | - | -128,436 | ||
| - Credit loss compensations from the State | 4,655 | 8,537 | 5,038 | - | - | 18,230 | ||
| - Change of expected credit losses (increase - / decrease +) | 186 | 3,584 | 21,066 | 295,350 | 82 | 320,267 | ||
| Operating result | 1,691 | 17,611 | 35,744 | 351,295 | - | 406,340 | ||
| Income tax | - | - | - | - | - | - | ||
| Result | 1,691 | 17,611 | 35,744 | 351,295 | - | 406,340 |
52
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| C2 Balance sheet by segment | ||||||
Total | ||||||
| (EUR 1,000) | small companies | domestic markets | internationalisation | Export credits | ||
| Finnvera Group | ||||||
| 31 Dec 2024 | ||||||
Assets | 78,841 | 246,557 | 280,458 | 982,103 | 13,168,415 | 14,756,374 |
- of which loans to and receivables from credit institutions | 10,800 | 31,200 | 18,000 | 100,000 | 418,684 | 578,684 |
- of which loans to and receivables from customers | 55,673 | 164,797 | 251,483 | 496,260 | 6,420,240 | 7,388,454 |
- of which investments | - | 13,687 | - | 20,182 | 5,262,565 | 5,296,434 |
Liabilities | 4,889 | -202,848 | 145,894 | 277,756 | 12,988,196 | 13,213,886 |
- of which debt securities in issue | - | - | - | - | 10,830,110 | 10,830,110 |
- of which provisions | 10,912 | 17,945 | 31,463 | 833,014 | - | 893,335 |
Equity | 73,952 | 449,405 | 134,565 | 704,347 | 180,219 | 1,542,487 |
- of which restricted equity | - | 159,660 | 67,799 | 22,914 | -50,959 | 199,415 |
- of which non-restricted equity | 73,952 | 289,744 | 66,765 | 681,434 | 231,177 | 1,343,073 |
| Finnvera Group | ||||||
| 31 Dec 2023 | ||||||
Assets | 84,772 | 265,523 | 260,514 | 634,126 | 13,057,367 | 14,302,303 |
- of which loans to and receivables from credit institutions | 10,800 | 31,200 | 18,000 | 100,000 | 1,196,534 | 1,356,534 |
- of which loans to and receivables from customers | 61,496 | 179,224 | 232,245 | 164,255 | 7,287,172 | 7,924,390 |
- of which investments | - | 13,723 | - | 20,182 | 3,520,494 | 3,554,398 |
Liabilities | 8,374 | -170,714 | 137,649 | 103,589 | 12,890,334 | 12,969,233 |
- of which debt securities in issue | - | - | - | - | 10,584,813 | 10,584,813 |
- of which provisions | 9,712 | 19,835 | 29,470 | 843,472 | - | 902,490 |
Equity | 76,398 | 436,236 | 122,865 | 530,538 | 167,033 | 1,333,070 |
- of which restricted equity | - | 159,660 | 67,799 | 21,945 | -31,819 | 217,586 |
- of which non-restricted equity | 76,398 | 276,576 | 55,066 | 508,593 | 198,852 | 1,115,484 |
53
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Total | ||||||
| (EUR 1,000) | small companies | domestic markets | internationalisation | Export credits | ||
| Finnvera plc | ||||||
| 31 Dec 2024 | ||||||
Assets | 78,841 | 246,557 | 280,489 | 1,060,203 | 13,121,033 | 14,787,123 |
- of which loans to and receivables from credit institutions | 10,800 | 31,200 | 18,000 | 100,000 | 276,789 | 436,789 |
- of which loans to and receivables from customers | 55,673 | 164,797 | 251,515 | 574,360 | 6,511,415 | 7,557,760 |
- of which investments | - | 13,687 | - | 20,182 | 5,282,747 | 5,316,616 |
Liabilities | 4,489 | -202,848 | 145,925 | 355,856 | 13,174,540 | 13,478,362 |
- of which debt securities in issue | - | - | - | - | 10,830,110 | 10,830,110 |
- of which provisions | 10,912 | 17,945 | 31,494 | 911,114 | - | 971,466 |
Equity | 73,952 | 449,405 | 134,565 | 704,347 | -53,507 | 1,308,761 |
- of which restricted equity | - | 159,660 | 67,799 | 22,914 | -53,507 | 196,866 |
- of which non-restricted equity | 73,952 | 289,744 | 66,765 | 681,434 | - | 1,111,896 |
| Finnvera plc | ||||||
| 31 Dec 2023 | ||||||
Assets | 84,772 | 265,523 | 261,425 | 788,501 | 12,989,758 | 14,389,979 |
- of which loans to and receivables from credit institutions | 10,800 | 31,200 | 18,000 | 100,000 | 933,135 | 1,093,135 |
- of which loans to and receivables from customers | 61,496 | 179,224 | 233,156 | 318,629 | 7,473,358 | 8,265,862 |
- of which investments | - | 13,723 | - | 20,182 | 3,540,676 | 3,574,580 |
Liabilities | 8,374 | -170,714 | 138,560 | 257,963 | 13,019,911 | 13,254,095 |
- of which debt securities in issue | - | - | - | - | 10,584,813 | 10,584,813 |
- of which provisions | 9,712 | 19,835 | 30,382 | 997,846 | - | 1,057,775 |
Equity | 76,398 | 436,236 | 122,865 | 530,538 | -30,153 | 1,135,884 |
- of which restricted equity | - | 159,660 | 67,799 | 21,945 | -30,153 | 219,251 |
- of which non-restricted equity | 76,398 | 276,576 | 55,066 | 508,593 | - | 916,633 |
54
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D Notes to the income statement
| D1 Interest income and expenses | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 1–12/2024 | 1–12/2023 | 1–12/2024 | 1–12/2023 |
| Interest income | ||||
Interests from loans passed on to the customers | 415,594 | 357,452 | 394,013 | 332,175 |
48,815 | 45,406 | 48,815 | 45,406 | |
2,378 | 2,378 | 2,378 | 2,378 | |
364,401 | 309,668 | -199 | 206 | |
- | - | 343,019 | 284,186 | |
Other interest income | 653,502 | 490,585 | 652,119 | 489,660 |
5,779 | 5,009 | 5,779 | 5,009 | |
2,133 | 1,679 | 2,133 | 1,679 | |
- | 66,814 | 61,197 | 65,439 | 60,272 |
55,468 | 23,663 | 55,468 | 23,663 | |
81,305 | 43,660 | 81,305 | 43,660 | |
- | - | - | - | |
- | 3,453 | 3,444 | 3,453 | 3,444 |
205 | 202 | 205 | 202 | |
- | - | - | - | |
207,747 | 182,424 | 207,747 | 182,424 | |
187,263 | 133,264 | 187,263 | 133,264 | |
43,232 | 35,950 | 43,232 | 35,950 | |
102 | 94 | 94 | 94 | |
Total | 1,069,095 | 848,037 | 1,046,132 | 821,836 |
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 1–12/2024 | 1–12/2023 | 1–12/2024 | 1–12/2023 |
| Interest expenses | ||||
On liabilities to credit institutions | -209 | -11 | -209 | -11 |
On liabilities to other institutions | -4,405 | -4,802 | -4,044 | -3,877 |
-4,405 | -4,802 | -4,044 | -3,877 | |
On debt securities in issue and hedges of funding | -921,174 | -721,483 | -921,174 | -721,483 |
-186,637 | -128,999 | -186,637 | -128,999 | |
-22,542 | -22,487 | -22,542 | -22,487 | |
-4,848 | -11,724 | -4,848 | -11,724 | |
-636,365 | -493,766 | -636,365 | -493,766 | |
-70,780 | -64,508 | -70,780 | -64,508 | |
Group internal interest expenses | - | - | -7,600 | -6,020 |
Other interest expenses | -4,561 | -6,272 | -4,556 | -6,272 |
-1,794 | -2,038 | -1,794 | -2,038 | |
- | -17 | - | -17 | |
-2,475 | -4,097 | -2,475 | -4,097 | |
- | - | - | - | |
-292 | -120 | -286 | -120 | |
Total | -930,349 | -732,568 | -937,582 | -737,663 |
Net interest income | 138,746 | 115,469 | 108,550 | 84,173 |
1,747 | 1,230 | 1,747 | 1,230 |
-198,186 | -147,710 | -200,570 | -141,081 | |
-2,475 | -4,097 | -2,475 | -4,097 | |
-729,688 | -580,761 | -734,536 | -592,485 | |
Total interest expenses | -930,349 | -732,568 | -937,582 | -737,663 |
55
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| D2 Fee and commission income and expenses by income statement items | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 1–12/2024 | 1–12/2023 | 1–12/2024 | 1–12/2023 |
| Fee and commission income from guarantees | ||||
148,019 | 127,945 | 148,019 | 127,945 | |
36,273 | 37,745 | 36,273 | 37,745 | |
Sub total | 184,292 | 165,690 | 184,292 | 165,690 |
| Delivery and handling fees | ||||
991 | 2,055 | 991 | 2,055 | |
4,109 | 3,811 | 4,109 | 3,811 | |
Sub total | 5,100 | 5,865 | 5,100 | 5,865 |
| Fee and commission income from loans | ||||
11,170 | 15,121 | - | - | |
2,381 | 2,721 | 2,277 | 2,530 | |
Sub total | 13,551 | 17,842 | 2,277 | 2,530 |
| Other fee and commission income | ||||
3 | 3 | - | - | |
7 | 54 | 7 | 54 | |
Sub total | 10 | 57 | 7 | 54 |
Grand total | 202,953 | 189,454 | 191,676 | 174,139 |
| Other commission expenses | ||||
-2,702 | -9,214 | -2,702 | -9,214 | |
-247 | -937 | -247 | -937 | |
-503 | -396 | -499 | -392 | |
-1,530 | -1,486 | -1,530 | -1,486 | |
Grand total | -4,982 | -12,032 | -4,978 | -12,029 |
Net fee and commission income | 197,971 | 177,421 | 186,697 | 162,110 |
56
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| D3 Gains and losses from financial instruments carried at fair value through profit or loss and foreign exchange gains and losses | ||||||||
Finnvera Group | Finnvera plc | |||||||
| Gains and losses | Changes in | Gains and losses | Changes in | |||||
(EUR 1,000) | Dividends | from sales | fair value | Total | Dividends | from sales | fair value | Total |
| 31 Dec 2024 | ||||||||
- | - | 142,805 | 142,805 | - | - | - | - | |
- | - | -202,077 | -202,077 | - | - | - | - | |
- | - | 62,846 | 62,846 | - | - | - | - | |
- | - | - | - | - | - | - | - | |
- | - | 3,575 | 3,575 | - | - | - | - | |
- | - | -177,186 | -177,186 | - | - | - | - | |
- | - | 62,846 | 62,846 | - | - | - | - | |
- | - | -24,890 | -24,890 | - | - | - | - | |
- | - | 142,805 | 142,805 | - | - | - | - | |
Total | - | - | 3,575 | 3,575 | - | - | - | - |
Foreign exchange gains (+) and losses (-) | 4,672 | 3,183 | ||||||
8,247 | 3,183 | |||||||
Finnvera Group | Finnvera plc | |||||||
| Gains and losses | Changes in | Gains and losses | Changes in | |||||
(EUR 1,000) | Dividends | from sales | fair value | Total | Dividends | from sales | fair value | Total |
| 31 Dec 2023 | ||||||||
- | - | 320,892 | 320,892 | - | - | - | - | |
- | - | -451,773 | -451,773 | - | - | - | - | |
- | - | 125,027 | 125,027 | - | - | - | - | |
- | - | - | - | - | - | - | - | |
- | - | -5,853 | -5,853 | - | - | - | - | |
- | - | -402,875 | -402,875 | - | - | - | - | |
- | - | 125,027 | 125,027 | - | - | - | - | |
- | - | -48,898 | -48,898 | - | - | - | - | |
- | - | 320,892 | 320,892 | - | - | - | - | |
Total | - | - | -5,853 | -5,853 | - | - | - | - |
Foreign exchange gains (+) and losses (-) | -3,609 | -3,007 | ||||||
-9,463 | -3,007 | |||||||
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| D4 Net income from investments | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 1–12/2024 | 1–12/2023 | 1–12/2024 | 1–12/2023 |
| Net gains and losses from investments in debt securities | ||||
-10,936 | -36,483 | -10,936 | -36,483 | |
3 | - | 3 | - | |
| Net gains and losses from derivatives, hedge accounting | ||||
10,543 | 36,812 | 10,543 | 36,812 | |
Total | -390 | 330 | -390 | 330 |
| D5 Other operating income | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 1–12/2024 | 1–12/2023 | 1–12/2024 | 1–12/2023 |
90 | 90 | 90 | 90 | |
10 | 17 | 10 | 17 | |
316 | 69 | 316 | 69 | |
- | - | 6,053 | 7,393 | |
Total | 415 | 176 | 6,468 | 7,569 |
| D6.1 Personnel expenses | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 1–12/2024 | 1–12/2023 | 1–12/2024 | 1–12/2023 |
-27,124 | -26,660 | -27,117 | -26,654 | |
-4,617 | -4,431 | -4,617 | -4,431 | |
-32 | -145 | -32 | -145 | |
-1,075 | -1,249 | -1,075 | -1,249 | |
Total | -32,848 | -32,485 | -32,840 | -32,479 |
| D6.2 Other operational expenses | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 1–12/2024 | 1–12/2023 | 1–12/2024 | 1–12/2023 |
-3,160 | -2,521 | -3,151 | -2,516 | |
-7,681 | -7,412 | -7,667 | -7,399 | |
-1,082 | -1,074 | -1,082 | -1,074 | |
-1,888 | -1,862 | -1,888 | -1,862 | |
-1,161 | -977 | -1,161 | -977 | |
-1,909 | -640 | -1,848 | -585 | |
-323 | -159 | -300 | -151 | |
-2,783 | -2,711 | -2,763 | -2,666 | |
Total | -19,665 | -17,197 | -19,560 | -17,078 |
| D6.2.1 Auditor’s fees | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 1–12/2024 | 1–12/2023 | 1–12/2024 | 1–12/2023 |
-250 | -126 | -228 | -118 | |
-166 | - | -152 | - | |
-84 | -126 | -76 | -118 | |
-73 | -33 | -73 | -33 | |
-61 | - | -61 | - | |
-12 | -33 | -12 | -33 | |
Total | -323 | -159 | -300 | -151 |
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| D8 Other operating expenses | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 1–12/2024 | 1–12/2023 | 1–12/2024 | 1–12/2023 |
-2,093 | -2,166 | -2,093 | -2,166 | |
1,853 | 1,959 | 1,853 | 1,959 | |
-332 | -265 | -332 | -265 | |
-1,381 | - | -1,381 | - | |
Total | -1,954 | -472 | -1,954 | -472 |
| D7.1 Depreciation and amortisation on tangible and intangible assets | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 1–12/2024 | 1–12/2023 | 1–12/2024 | 1–12/2023 |
Intangible assets | -3,164 | -2,723 | -3,164 | -2,723 |
-1,396 | -1,352 | -1,396 | -1,352 | |
-400 | -310 | -400 | -310 | |
-1,368 | -1,062 | -1,368 | -1,062 | |
Tangible assets | -2,089 | -2,142 | -2,089 | -2,142 |
-60 | -65 | -60 | -65 | |
-191 | -74 | -191 | -74 | |
-1,838 | -2,003 | -1,838 | -2,003 | |
Total | -5,253 | -4,865 | -5,253 | -4,865 |
| D7.2 IFRS 16 impact on the income statement | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 1–12/2024 | 1–12/2023 | 1–12/2024 | 1–12/2023 |
| Income statement item | ||||
-56 | -46 | -56 | -46 | |
-3,397 | -3,139 | -3,397 | -3,139 | |
-347 | -322 | -347 | -322 | |
Operating result | -3,800 | -3,507 | -3,800 | -3,507 |
- | - | - | - | |
Result for the period | -3,800 | -3,507 | -3,800 | -3,507 |
-3,068 | -3,230 | -3,068 | -3,230 |
| D9 Income tax expense | ||
| Finnvera Group | ||
(EUR 1,000) | 1–12/2024 | 1–12/2023 |
-7,246 | -7,585 | |
-836 | 2,012 | |
Total | -8,082 | -5,573 |
Finnvera plc | Finnish Export Credit Ltd | |||
1–12/2024 | 1–12/2023 | 1–12/2024 | 1–12/2023 | |
0 | 0 | 20 | 20 |
Finnvera Group | Finnvera plc | Finnish Export Credit Ltd | ||||
(EUR 1,000) | 1–12/2024 | 1–12/2023 | 1–12/2024 | 1–12/2023 | 1–12/2024 | 1–12/2023 |
235,791 | 438,934 | 195,384 | 406,340 | 40,407 | 32,594 | |
-8,081 | -6,519 | - | - | -8,081 | -6,519 | |
-1 | - | - | - | -1 | - | |
- | 946 | - | - | - | 946 | |
Taxes in income statement | -8,082 | -5,573 | - | - | -8,082 | -5,573 |
59
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E Notes to the balance sheet
| E1 Loans to and receivables from credit institutions | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
Payable on demand | 308,844 | 1,057,133 | 265,583 | 821,747 |
Investment accounts and deposits | 171,206 | 271,388 | 171,206 | 271,388 |
Export credits | 98,633 | 28,014 | - | - |
Total | 578,684 | 1,356,534 | 436,789 | 1,093,135 |
| E2 Loans to and receivables from customers | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
Loans | 7,197,160 | 7,761,434 | 7,366,466 | 8,102,906 |
- Subordinated loans | 1,753 | 1,753 | 1,753 | 1,753 |
- Other loans | 7,328,927 | 7,951,676 | 908,688 | 664,504 |
| - Expected credit losses/ | -133,520 | -191,995 | -55,389 | -36,709 |
| Impairment losses | ||||
- Loans to Group companies | - | - | 6,511,415 | 7,473,358 |
Debt securities | 30,130 | 30,046 | 30,130 | 30,046 |
30,130 | 30,046 | 30,130 | 30,046 | |
Guarantee receivables | 46,449 | 37,181 | 46,449 | 37,181 |
- Guarantee receivables, | 77,483 | 61,761 | 77,483 | 61,761 |
- Expected credit losses | -31,034 | -24,580 | -31,034 | -24,580 |
Receivables from export credit and special guarantee operations | 114,715 | 95,730 | 114,715 | 95,730 |
| - Fee and commission | 1,740 | -527 | 1,740 | -527 |
| receivables, IFRS 15 | ||||
| - Book value of recovery | 112,974 | 96,256 | 112,974 | 96,256 |
| receivables on 31 Dec | ||||
- Nominal value of recovery receivables | 192,501 | 167,865 | 192,501 | 167,865 |
- Impairment losses on recovery receivables | -79,526 | -71,608 | -79,526 | -71,608 |
Total | 7,388,454 | 7,924,390 | 7,557,760 | 8,265,862 |
| E3 Investments | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
| Debt securities | ||||
3,314,159 | 2,402,134 | 3,314,159 | 2,402,134 | |
Commercial papers | 73,265 | 110,958 | 73,265 | 110,958 |
Local authority papers | 1,895,323 | 1,027,584 | 1,895,323 | 1,027,584 |
Total | 5,282,747 | 3,540,676 | 5,282,747 | 3,540,676 |
| Investments in Group companies | ||||
Acquisition cost at 31 Dec | - | - | 20,182 | 20,182 |
- Acquisition cost at 1 Jan | - | - | 20,182 | 20,182 |
Accumulated impairment losses at 31 Dec | - | - | - | - |
- Accumulated impairment losses at 1 Jan | - | - | - | - |
- | - | - | - | |
Total | - | - | 20,182 | 20,182 |
| Other shares and participations | ||||
Acquisition cost at 31 Dec | 13,687 | 13,723 | 13,687 | 13,723 |
- Acquisition cost at 1 Jan | 13,687 | 13,723 | 13,687 | 13,723 |
Accumulated fair value adjustments at 31 Dec | - | - | - | - |
- Accumulated fair value adjustments at 1 Jan | - | - | - | - |
- | - | - | - | |
Total | 13,687 | 13,723 | 13,687 | 13,723 |
Investments total | 5,296,434 | 3,554,398 | 5,316,616 | 3,574,580 |
60
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| E4.1 Realised credit losses and change in depreciations | ||||||||
Finnvera Group | Finnvera plc | |||||||
(EUR 1,000) | 1–12/2024 | 1–12/2023 | 1–12/2024 | 1–12/2023 | ||||
Total realised credit losses | -120,584 | -128,436 | -120,584 | -128,436 | ||||
- Loans | -10,104 | -8,665 | -10,104 | -8,665 | ||||
- Guarantees | -33,840 | -27,810 | -33,840 | -27,810 | ||||
-76,640 | -91,962 | -76,640 | -91,962 | |||||
Credit loss compensation from the State | 20,493 | 18,230 | 20,493 | 18,230 | ||||
Change in expected credit losses (ECL) decrease (+) / increase (-) | 50,611 | 320,227 | 50,573 | 320,267 | ||||
1,195,704 | 1,515,930 | 1,195,658 | 1,515,926 | |||||
1,145,092 | 1,195,704 | 1,145,085 | 1,195,658 | |||||
Total, net | -49,480 | 210,020 | -49,518 | 210,061 |
| E4.2 Changes in expected credit losses | |||||||||||||
Finnvera Group 31 Dec 2024 | Finnvera Group 31 Dec 2023 | Finnvera plc 31 Dec 2024 | Finnvera plc 31 Dec 2023 | ||||||||||
| ECL 31 | ECL 31 | Change | ECL | ECL 31 | Change | ECL 31 | ECL 31 | Change | ECL | ECL 31 | Change | ||
| Financial assets (EUR 1,000) | Dec 2023 | Dec 2024 | in ECL | 31.12.2022 | Dec 2023 | in ECL | Financial assets (EUR 1,000) | Dec 2023 | Dec 2024 | in ECL | 31.12.2022 | Dec 2023 | in ECL |
| Loans and receivables from | -238 | -43 | 195 | -156 | -238 | -82 | Loans and receivables from | -193 | -35 | 157 | -152 | -193 | -41 |
| credit institutions | credit institutions | ||||||||||||
Investment accounts and deposits | -105 | -49 | 56 | - | -105 | -105 | Investment accounts and deposits | -105 | -49 | 56 | - | -105 | -105 |
Loans and receivables from customers | -288,183 | -244,081 | 44,103 | -1,179,370 | -288,183 | 891,187 | Loans and receivables from customers | -132,898 | -165,950 | -33,052 | -91,477 | -132,898 | -41,421 |
Debt securities | -422 | -168 | 254 | -544 | -422 | 122 | Debt securities | -422 | -168 | 254 | -544 | -422 | 122 |
Other assets | -94 | - | 94 | -94 | -94 | 0 | Other assets 1 | -94 | - | 94 | -94 | -94 | 0 |
Prepayments and accrued income | -2,067 | -2,920 | -853 | -1,342 | -2,067 | -725 | Prepayments and accrued income | -2,067 | -2,920 | -853 | -1,342 | -2,067 | -725 |
| Change in expected credit losses: | -291,110 | -247,260 | 43,850 | -1,181,506 | -291,110 | 890,396 | Change in expected credit losses: | -135,778 | -169,121 | -33,343 | -93,609 | -135,778 | -42,169 |
| decrease (+) / increase (-) | decrease (+) / increase (-) | ||||||||||||
| Financial liabilities (EUR 1,000) | Financial liabilities (EUR 1,000) | ||||||||||||
Provisions | -900,814 | -893,335 | 7,479 | -332,632 | -900,814 | -568,182 | Provisions | -1,056,100 | -971,466 | 84,634 | -1,420,525 | -1,056,100 | 364,425 |
Equity - Fair value | -3,780 | -4,498 | -718 | -1,792 | -3,780 | -1,988 | Equity - Fair value | -3,780 | -4,498 | -718 | -1,792 | -3,780 | -1,988 |
| Change in expected credit losses: | -904,594 | -897,833 | 6,761 | -334,424 | -904,594 | -570,170 | Change in expected credit losses: | -1,059,880 | -975,964 | 83,916 | -1,422,317 | -1,059,880 | 362,437 |
| decrease (+) / increase (-) | decrease (+) / increase (-) | ||||||||||||
| Change in expected credit losses: | 50,611 | 320,226 | Change in expected credit losses: | 50,573 | 320,268 | ||||||||
| decrease (+) / increase (-), net | decrease (+) / increase (-), net |
61
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| E4.3 Expected credit losses (ECL) distributed to IFRS 9 stages | ||||||||
Finnvera Group | Finnvera Group | |||||||
| Financial assets | 31 Dec 2024 | 31 Dec 2023 | ||||||
| (EUR 1,000) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
Loans and receivables from credit institutions | 43 | - | - | 43 | 238 | - | - | 238 |
| Loans and receivables | 75,142 | 87,182 | 88,978 | 251,302 | 21,690 | 193,150 | 78,922 | 293,762 |
| from customers | ||||||||
Investments | 412 | - | - | 412 | 889 | - | - | 889 |
Off-balance sheet items | 53,317 | 825,740 | 14,279 | 893,335 | 62,399 | 796,662 | 41,754 | 900,814 |
Total | 128,914 | 912,921 | 103,257 | 1,145,092 | 85,216 | 989,812 | 120,676 | 1,195,704 |
Finnvera plc | Finnvera plc | |||||||
| Financial assets | 31 Dec 2024 | 31 Dec 2023 | ||||||
| (EUR 1,000) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
Loans and receivables from credit institutions | 35 | - | - | 35 | 193 | - | - | 193 |
| Loans and receivables | 22,575 | 61,618 | 88,978 | 173,171 | 9,746 | 49,808 | 78,922 | 138,476 |
| from customers | ||||||||
Investments | 412 | - | - | 412 | 889 | - | - | 889 |
Off-balance sheet items | 105,883 | 851,304 | 14,279 | 971,466 | 74,342 | 940,004 | 41,754 | 1,056,100 |
Total | 128,907 | 912,921 | 103,257 | 1,145,085 | 85,170 | 989,812 | 120,676 | 1,195,658 |
| E4.4.1 Loans and receivables from customers | ||||||||
| Loans and receivables from customers include all depreciations of assets excl. loans and receivables from credit | ||||||||
| institutions and investments. | Finnvera Group | Finnvera Group | ||||||
31 Dec 2024 | 31 Dec 2023 | |||||||
(EUR 1,000) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
ECL at the beginning of the period | 21,690 | 193,150 | 78,922 | 293,762 | 5,469 | 1,105,068 | 71,592 | 1,182,130 |
42,764 | -9,157 | -4,916 | 28,691 | 4,753 | -1,077,124 | -3,025 | -1,075,397 | |
- | -100,127 | -128 | -100,254 | - | 266,767 | -3,627 | 263,140 | |
-1,691 | - | -1,422 | -3,113 | -2,035 | - | -1,095 | -3,130 | |
-200 | -1,529 | - | -1,729 | -666 | -4,559 | - | -5,226 | |
- | 6,693 | 2,573 | 9,266 | - | 5,347 | 3,054 | 8,400 | |
127 | - | 4,354 | 4,481 | 9,416 | - | 5,127 | 14,543 | |
80 | 351 | - | 431 | 79 | 208 | - | 287 | |
13,359 | 779 | 17,665 | 31,804 | 12,040 | 157 | 21,202 | 33,398 | |
| Repayments/Expirations | -3,909 | -2,088 | -9,180 | -15,176 | -723 | -18,948 | -14,306 | -33,978 |
2,923 | -893 | 2 | 2,032 | -6,643 | -83,764 | 0 | -90,407 | |
- | 2 | 1,107 | 1,109 | - | - | - | - | |
| compensation rate | ||||||||
ECL at the end of the period | 75,142 | 87,182 | 88,978 | 251,302 | 21,690 | 193,150 | 78,922 | 293,762 |
-42,460 | -888,368 | |||||||
432 | 1,187 | 11,345 | 12,964 | 440 | 1,381 | 9,924 | 11,745 | |
1,465 | 2,013 | 22,563 | 26,040 | 1,508 | 2,685 | 19,207 | 23,400 | |
| domestic markets | ||||||||
3,225 | 3,854 | 29,567 | 36,646 | 2,406 | 2,719 | 25,767 | 30,893 | |
| internationalisation | ||||||||
70,019 | 80,128 | 25,504 | 175,651 | 17,335 | 186,365 | 24,024 | 227,724 | |
Total | 75,142 | 87,182 | 88,978 | 251,302 | 21,690 | 193,150 | 78,922 | 293,762 |
Realised credit losses | 367 | 206 | 9,553 | 10,126 | 166 | 565 | 7,944 | 8,675 |
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Finnvera plc | Finnvera plc | |||||||
31 Dec 2024 | 31 Dec 2023 | |||||||
(EUR 1,000) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
ECL at the beginning of the period | 9,746 | 49,808 | 78,922 | 138,476 | 7,911 | 14,734 | 71,592 | 94,237 |
-625 | 5,634 | -4,916 | 94 | -749 | 35,871 | -3,025 | 32,097 | |
- | -622 | -128 | -750 | - | -1,157 | -3,627 | -4,784 | |
-1,691 | - | -1,422 | -3,113 | -2,035 | - | -1,095 | -3,130 | |
-200 | -1,529 | - | -1,729 | -666 | -4,559 | - | -5,226 | |
- | 6,693 | 2,573 | 9,266 | - | 5,347 | 3,054 | 8,400 | |
127 | - | 4,354 | 4,481 | 243 | - | 5,127 | 5,370 | |
80 | 351 | - | 431 | 79 | 208 | - | 287 | |
13,328 | 779 | 17,665 | 31,772 | 12,040 | 157 | 21,202 | 33,398 | |
| Repayments/Expirations | -1,183 | -449 | -9,180 | -10,811 | -591 | -439 | -14,306 | -15,337 |
2,993 | 950 | 2 | 3,945 | -6,485 | -352 | 0 | -6,837 | |
- | 2 | 1,107 | 1,109 | - | - | - | - | |
| compensation rate | ||||||||
ECL at the end of the period | 22,575 | 61,618 | 88,978 | 173,171 | 9,746 | 49,808 | 78,922 | 138,476 |
34,695 | 44,240 | |||||||
432 | 1,187 | 11,345 | 12,964 | 440 | 1,381 | 9,924 | 11,745 | |
1,465 | 2,013 | 22,563 | 26,040 | 1,508 | 2,685 | 19,207 | 23,400 | |
| domestic markets | ||||||||
3,194 | 3,854 | 29,567 | 36,615 | 2,406 | 1,808 | 25,767 | 29,981 | |
| internationalisation | ||||||||
17,484 | 54,563 | 25,504 | 97,552 | 5,392 | 43,934 | 24,024 | 73,350 | |
Total | 22,575 | 61,618 | 88,978 | 173,171 | 9,746 | 49,808 | 78,922 | 138,476 |
Realised credit losses | 367 | 206 | 9,553 | 10,126 | 166 | 565 | 7,944 | 8,675 |
| E4.4.2 Off balance sheet items | ||||||||
Finnvera Group | Finnvera Group | |||||||
31 Dec 2024 | 31 Dec 2023 | |||||||
(EUR 1,000) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
ECL at the beginning of the period | 62,399 | 796,662 | 41,754 | 900,814 | 55,426 | 240,071 | 37,135 | 332,632 |
-14,533 | -111,173 | -3,273 | -128,979 | -13,693 | 649,209 | 23,072 | 658,588 | |
- | -12,296 | -6 | -12,302 | - | 30,448 | 1,385 | 31,834 | |
-2,717 | - | -522 | -3,239 | -9,007 | - | -30 | -9,037 | |
-333 | -2,890 | - | -3,224 | -551 | -570 | - | -1,122 | |
- | 9,726 | 3,907 | 13,633 | - | 15,107 | 8,034 | 23,141 | |
1,322 | - | 4,471 | 5,793 | 7,728 | - | 1,711 | 9,439 | |
0 | 153 | - | 153 | 26 | 5 | - | 31 | |
15,747 | 76,397 | 714 | 92,859 | 34,253 | 936 | 2,564 | 37,752 | |
| Repayments/Expirations | -12,257 | -89,944 | -32,765 | -134,967 | -17,633 | -125,256 | -20,597 | -163,485 |
3,689 | 159,105 | - | 162,793 | 5,850 | -13,289 | -11,521 | -18,960 | |
- | - | - | - | - | - | - | - | |
| compensation rate | ||||||||
ECL at the end of the period | 53,317 | 825,740 | 14,279 | 893,335 | 62,399 | 796,662 | 41,753 | 900,814 |
-7,479 | 568,182 | |||||||
4,346 | 5,585 | 981 | 10,912 | 3,853 | 4,810 | 1,050 | 9,712 | |
8,199 | 3,887 | 5,859 | 17,945 | 7,391 | 4,395 | 8,049 | 19,835 | |
| domestic markets | ||||||||
20,414 | 6,093 | 4,956 | 31,463 | 18,831 | 3,504 | 7,184 | 29,519 | |
| internationalisation | ||||||||
20,358 | 810,174 | 2,482 | 833,014 | 32,324 | 783,954 | 25,471 | 841,748 | |
Total | 53,317 | 825,740 | 14,279 | 893,335 | 62,399 | 796,662 | 41,754 | 900,814 |
Realised credit losses | 1,302 | 662 | 108,493 | 110,458 | 885 | 1,265 | 117,612 | 119,761 |
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Finnvera plc | Finnvera plc | |||||||
31 Dec 2024 | 31 Dec 2023 | |||||||
(EUR 1,000) | Stage 1 | Stage 2 | Stage 3 | Total | Stage 1 | Stage 2 | Stage 3 | Total |
ECL at the beginning of the period | 74,342 | 940,004 | 41,754 | 1,056,100 | 56,299 | 1,333,721 | 30,506 | 1,420,525 |
28,856 | -125,965 | -3,273 | -100,382 | -11,507 | -467,101 | 29,702 | -448,905 | |
- | -111,801 | -6 | -111,807 | - | 298,373 | 1,385 | 299,758 | |
-2,717 | - | -522 | -3,239 | -9,007 | - | -30 | -9,037 | |
-333 | -2,890 | - | -3,224 | -551 | -570 | - | -1,122 | |
- | 9,726 | 3,907 | 13,633 | - | 15,107 | 8,034 | 23,141 | |
1,322 | - | 4,471 | 5,793 | 16,902 | - | 1,711 | 18,613 | |
0 | 153 | - | 153 | 26 | 5 | - | 31 | |
15,779 | 76,397 | 714 | 92,890 | 34,253 | 936 | 2,564 | 37,752 | |
| Repayments/Expirations | -14,983 | -91,583 | -32,765 | -139,332 | -17,764 | -143,764 | -20,597 | -182,126 |
3,618 | 157,261 | - | 160,880 | 5,692 | -96,702 | -11,521 | -102,531 | |
- | - | - | - | - | - | - | - | |
| compensation rate | ||||||||
ECL at the end of the period | 105,883 | 851,304 | 14,279 | 971,466 | 74,342 | 940,004 | 41,754 | 1,056,100 |
-84,634 | -364,425 | |||||||
4,346 | 5,585 | 981 | 10,912 | 3,853 | 4,810 | 1,050 | 9,712 | |
8,199 | 3,887 | 5,859 | 17,945 | 7,391 | 4,395 | 8,049 | 19,835 | |
| domestic markets | ||||||||
20,445 | 6,093 | 4,956 | 31,494 | 18,831 | 4,415 | 7,184 | 30,430 | |
| internationalisation | ||||||||
72,893 | 835,738 | 2,482 | 911,114 | 44,267 | 926,385 | 25,471 | 996,123 | |
Total | 105,883 | 851,304 | 14,279 | 971,466 | 74,342 | 940,004 | 41,754 | 1,056,100 |
Realised credit losses | 1,302 | 662 | 108,493 | 110,458 | 885 | 1,265 | 117,612 | 119,761 |
E5 Intangible and tangible assets
| E5.1 Intangible assets | |||||
| Finnvera Group/Finnvera plc 2024 | |||||
| IT applications | |||||
| and other | Right-of- | ||||
| intangible | use-assets | Projects in | |||
(EUR 1,000) | Digitalisation | assets | (IFRS 16) | progress | Total |
Carrying amount at 1 Jan | 3,547 | 672 | 3,008 | 2,484 | 9,711 |
- Acquisition cost at 1 Jan | 10,760 | 5,770 | 8,541 | 2,484 | 27,555 |
- Additions | 1,633 | 352 | 2,117 | 1,333 | 5,435 |
- Disposals | - | - | - | - | - |
Acquisition cost at 31 Dec | 12,394 | 6,121 | 10,658 | 3,817 | 32,989 |
- Accumulated amortisation and impairment losses at 1 Jan | -7,213 | -5,097 | -5,533 | - | -17,843 |
- Accumulated amortisation on disposals | - | - | - | - | - |
- Amortisation for the period | -1,396 | -264 | -1,368 | -136 | -3,164 |
Accumulated amortisation and impairment losses at 31 Dec | -8,609 | -5,361 | -6,901 | -136 | -21,008 |
Carrying amount at 31 Dec | 3,784 | 760 | 3,757 | 3,681 | 11,982 |
| Finnvera Group/Finnvera plc 2023 | |||||
| IT applications | |||||
| and other | Right-of- | ||||
| intangible | use-assets | Projects in | |||
(EUR 1,000) | Digitalisation | assets | (IFRS 16) | progress | Total |
Carrying amount at 1 Jan | 2,166 | 854 | 4,069 | 604 | 7,693 |
- Acquisition cost at 1 Jan | 8,027 | 5,642 | 8,541 | 604 | 22,813 |
- Additions | 2,733 | 128 | - | 1,880 | 4,742 |
- Disposals | - | - | - | - | - |
Acquisition cost at 31 Dec | 10,760 | 5,770 | 8,541 | 2,484 | 27,555 |
- Accumulated amortisation and impairment losses at 1 Jan | -5,862 | -4,787 | -4,471 | - | -15,120 |
- Accumulated amortisation on disposals | - | - | - | - | - |
- Amortisation for the period | -1,352 | -310 | -1,062 | - | -2,723 |
Accumulated amortisation and impairment losses at 31 Dec | -7,213 | -5,097 | -5,533 | - | -17,843 |
Carrying amount at 31 Dec | 3,547 | 672 | 3,008 | 2,484 | 9,711 |
64
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| E5.2 Tangible assets | ||||
| Finnvera Group/Finnvera plc 2024 | ||||
| Right-of- | ||||
| Machinery and | use-assets | |||
| (EUR 1,000) | equipment | Cars | (IFRS 16) | Total |
Carrying amount at 1 Jan | 135 | 360 | 2,856 | 3,352 |
- Acquisition cost at 1 Jan | 509 | 434 | 13,216 | 14,159 |
- Additions | 57 | 490 | 3,947 | 4,493 |
- Disposals | - | - | -6,307 | -6,307 |
Acquisition cost at 31 Dec | 566 | 923 | 10,856 | 12,345 |
- Accumulated depreciation and impairment losses at 1 Jan | -374 | -74 | -10,360 | -10,807 |
- Accumulated depreciation on disposals | - | - | - | - |
- Depreciation for the period | -60 | -191 | 4,469 | 4,218 |
Accumulated depreciations and impairment losses at 31 Dec | -434 | -265 | -5,891 | -6,589 |
Carrying amount at 31 Dec | 132 | 659 | 4,965 | 5,756 |
| Finnvera Group/Finnvera plc 2023 | ||||
| Right-of- | ||||
| Machinery and | use-assets | |||
| (EUR 1,000) | equipment | Cars | (IFRS 16) | Total |
Carrying amount at 1 Jan | 145 | 197 | 1,564 | 1,906 |
- Acquisition cost at 1 Jan | 455 | 197 | 10,448 | 11,099 |
- Additions | 55 | 237 | - | 292 |
- Disposals | - | - | 2,768 | 2,768 |
Acquisition cost at 31 Dec | 509 | 434 | 13,216 | 14,159 |
- Accumulated depreciation and impairment losses at 1 Jan | -309 | - | -8,884 | -9,193 |
- Accumulated depreciation on disposals | - | - | - | - |
- Depreciation for the period | -65 | -74 | -1,475 | -1,614 |
Accumulated depreciations and impairment losses at 31 Dec | -374 | -74 | -10,360 | -10,807 |
Carrying amount at 31 Dec | 135 | 360 | 2,856 | 3,352 |
| E5.3 Notes to the tangible and intangible assets according to IFRS 16, | |||
| balance sheet items of the right-of-the-use assets | |||
| Finnvera Group/Finnvera plc | |||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | |
| Right-of-use-asset | |||
- IT Applications | 3,757 | 3,008 | |
Total | 3,757 | 3,008 | |
4,965 | 2,831 | ||
- Lease cars | - | 25 | |
Total | 4,965 | 2,856 | |
| Finnvera Group/Finnvera plc | |||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | |
| Other liabilities | |||
| Lease liabilities | |||
- IT applications | 3,449 | 2,513 | |
4,993 | 2,849 | ||
- Lease cars | - | 48 | |
Total | 8,441 | 5,409 | |
| Finnvera Group/Finnvera plc | ||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 |
| Lease liabilities | ||
8,441 | 5,409 | |
| Maturity based on contract | ||
<1 | 131 | 70 |
1-2 year | 219 | |
| 2-3 year | ||
| 3-4 year | ||
| 4-5 year | ||
over 5 year | 8,310 | 5,120 |
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| E7 Prepayments and accrued income | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
Interest and interest subsidy receivables | 246,957 | 227,200 | 181,486 | 136,967 |
Group internal interest receivables | - | - | 43,707 | 65,400 |
Fee and commission receivables, IFRS 15 | 5,061 | 5,513 | 3,594 | 3,911 |
Reinsurance premiums paid in advance, IFRS 15 | 29,804 | 19,716 | 29,804 | 19,716 |
Cash collateral given for derivatives | 689,490 | 735,170 | 689,490 | 735,170 |
Prepayments and other accrued income | 1,090 | 1,001 | 1,086 | 995 |
Internal prepayments and other accrued income | - | - | - | 1,004 |
Total | 972,402 | 988,599 | 949,168 | 963,163 |
| E8 Tax assets and liabilities | ||
| Finnvera Group | ||
(EUR 1,000) | 2024 | 2023 |
Deferred tax assets at 1 Jan | 2,776 | 764 |
Increase/decrease to income statement during the period | -836 | 2,012 |
Deferred tax assets at 31 Dec | 1,941 | 2,776 |
Current income tax assets | 171 | - |
Total tax assets | 2,112 | 2,776 |
| Finnvera Group | ||
(EUR 1,000) | 2024 | 2023 |
Deferred tax liabilities at 1 Jan | - | - |
Increase/decrease to income statement during the period | - | - |
Deferred tax liabilities at 31 Dec | - | - |
Total deferred tax liabilities | - | - |
Current income tax liabilities | - | 168 |
Total tax liabilities | - | 168 |
Deferred tax, net at 31 Dec | 1,941 | 2,776 |
| E6 Other assets | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
Credit loss receivables from the State 1 | 10,650 | 11,744 | 10,650 | 11,744 |
- | - | 6,053 | 7,393 | |
Internal other receivables from subsidiaries 2 | - | - | 2,452 | 10,241 |
Trade receivables of venture capital investments | - | 4,604 | - | 4,604 |
Fund payment from The State Guarantee Fund | 349,023 | 349,023 | 349,023 | 349,023 |
Other | 418 | 811 | 416 | 811 |
Total | 360,091 | 366,181 | 368,593 | 383,816 |
1 The state and the European Regional Development Fund (ERDF) has granted Finnvera commitments to partially compensate Finnvera for
commercial grounds.
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| EMTN debt programme | |||||||
Issuer and ISIN | Finnvera plc/ | ||||||
| Finnvera Group | |||||||
| Carrying amount | |||||||
| Nominal | Maturity | ||||||
(EUR 1,000) | Interest | (thousands) | Currency | Issue date | date 31 Dec 2024 31 Dec 2023 | ||
Finnvera plc - XS1951364915 | 2.800% | 30,000 | AUD | 14.2.2019 | 14.8.2029 | 16,583 | 16,676 |
Finnvera plc - XS1951364915 | 2.800% | 30,000 | AUD | 13.11.2019 | 14.8.2029 | 16,583 | 16,676 |
Finnvera plc - XS1392927072 | 0.500% | 1,000,000 | EUR | 13.4.2016 | 13.4.2026 | 976,908 | 949,939 |
Finnvera plc - XS1613374559 | 1.125% | 750,000 | EUR | 17.5.2017 | 17.5.2032 | 691,949 | 676,636 |
Finnvera plc - XS1613374559 | 1.125% | 100,000 | EUR | 3.7.2017 | 17.5.2032 | 92,260 | 90,218 |
Finnvera plc - XS1613374559 | 1.125% | 150,000 | EUR | 6.9.2017 | 17.5.2032 | 138,390 | 135,327 |
Finnvera plc - XS1791423178 | 1.250% | 1,000,000 | EUR | 14.3.2018 | 14.7.2033 | 924,837 | 904,942 |
Finnvera plc - XS1904312318 | 0.750% | 500,000 | EUR | 7.11.2018 | 7.8.2028 | 472,063 | 464,220 |
Finnvera plc - XS1979447064 | 0.375% | 1,000,000 | EUR | 9.4.2019 | 9.4.2029 | 927,120 | 901,944 |
Finnvera plc - XS2230845328 | 0.000% | 1,000,000 | EUR | 15.9.2020 | 15.9.2027 | 943,046 | 913,317 |
Finnvera plc - XS2529521283 | 2.125% | 1,000,000 | EUR | 8.9.2022 | 8.3.2028 | 1,000,170 | 990,086 |
Finnvera plc - XS2830098666 | 2.875% | 1,000,000 | EUR | 30.5.2024 | 30.8.2029 | 1,024,092 | |
Finnvera plc - XS1538285807 | 1.910% | 1,500,000 | SEK | 20.12.2016 | 20.12.2028 | 126,386 | 129,689 |
Finnvera plc - XS1538285807 | 1.910% | 1,500,000 | SEK | 23.1.2017 | 20.12.2028 | 126,386 | 129,689 |
Finnvera plc - XS1538285807 | 1.910% | 500,000 | SEK | 23.1.2017 | 20.12.2028 | 42,129 | 43,230 |
Finnvera plc - XS1241947768 | 2.375% | 500,000 | USD | 4.6.2015 | 4.6.2025 | 477,017 | 437,799 |
Finnvera plc - XS2068940753 | 1.625% | 1,000,000 | USD | 23.10.2019 | 23.10.2024 | 878,177 | |
Finnvera Plc - XS2401591800 | 1.125% | 1,000,000 | USD | 27.10.2021 | 27.10.2026 | 909,798 | 836,068 |
Finnvera Plc - XS2636756657 | 4.000% | 1,000,000 | USD | 15.6.2023 | 15.6.2028 | 948,332 | 904331.07 |
Finnvera Plc - XS2708405662 | 5.125% | 1,000,000 | USD | 25.10.2023 | 17.3.2027 | 976,063 | 931885.13 |
Total | 10,830,110 | 10,350,848 | |||||
| E9 Liabilities to credit and other institutions | ||||
Finnvera Group 2024 | Finnvera plc 2024 | |||
| Carrying | Carrying | |||
(EUR 1,000) | Nominal value | amount | Nominal value | amount |
| Liabilities to credit and other institutions | ||||
1 Jan 2024 | 128,525 | 128,525 | 286,150 | 286,150 |
Loans withdrawn | 72,631 | 72,631 | 492,631 | 492,631 |
Repayments | -102,585 | -102,585 | -472,668 | -472,668 |
Net proceeds (+) and repayments (-) of short-term loans 1 | - | - | - | - |
Early repayments | - | - | - | - |
Fair value changes | - | - | ||
Foreign exchange differences | 4,956 | 4,956 | 4,956 | 4,956 |
31 Dec 2024 | 103,527 | 103,527 | 311,069 | 311,069 |
Finnvera Group 2023 | Finnvera plc 2023 | |||
| Carrying | Carrying | |||
(EUR 1,000) | Nominal value | amount | Nominal value | amount |
| Liabilities to credit and other institutions | ||||
1 Jan 2023 | 37,292 | 37,292 | 175,000 | 175,000 |
Loans withdrawn | 119,547 | 119,547 | 485,374 | 485,374 |
Repayments | -26,961 | -26,961 | -372,893 | -372,893 |
Net proceeds (+) and repayments (-) of short-term loans 1 | - | - | - | - |
Early repayments | - | - | - | - |
Fair value changes | - | - | - | |
Foreign exchange differences | -1,353 | -1,353 | -1,332 | -1,332 |
31 Dec 2023 | 128,525 | 128,525 | 286,150 | 286,150 |
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Finnvera Group 2024 | Finnvera plc 2024 | |||
| Nominal | Carrying | Nominal | Carrying | |
| (EUR 1,000) | value | amount | value | amount |
| Debt securities in issue (ECP debt programme) | ||||
1 Jan 2024 | 235,747 | 233,965 | 235,747 | 233,965 |
Debt securities issued | 411,640 | 408,588 | 411,640 | 408,588 |
Repayments at maturity | -650,586 | -650,586 | -650,586 | -650,586 |
Fair value changes | - | - | - | - |
Foreign exchange differences | 3,200 | 3,184 | 3,200 | 3,184 |
Other changes | - | 4,848 | - | 4,848 |
31 Dec 2024 | - | - | - | - |
Finnvera Group 2023 | Finnvera plc 2023 | |||
| Nominal | Carrying | Nominal | Carrying | |
| (EUR 1,000) | value | amount | value | amount |
| Debt securities in issue (ECP debt programme) | ||||
1 Jan 2023 | 556,887 | 555,407 | 556,887 | 555,407 |
Debt securities issued | 1,447,696 | 1,435,552 | 1,447,696 | 1,435,552 |
Repayments at maturity | -1,759,418 | -1,759,418 | -1,759,418 | -1,759,418 |
Fair value changes | - | - | - | - |
Foreign exchange differences | -9,419 | -9,300 | -9,419 | -9,300 |
Other changes | - | 11,724 | - | 11,724 |
31 Dec 2023 | 235,747 | 233,965 | 235,747 | 233,965 |
| ECP debt programme | ||||||
Issuer and ISIN | Finnvera plc/ | |||||
| Finnvera Group | ||||||
| Carrying amount | ||||||
| Nominal | Maturity | |||||
| (EUR 1,000) | (thousands) | Currency | Issue date | date 31 Dec 2024 31 Dec 2023 | ||
Finnvera Plc - XS2702155214 | 50,000 | USD | 6.10.2023 | 6.2.2024 | - | 44,999 |
Finnvera Plc - XS2702828901 | 100,000 | USD | 10.10.2023 | 11.3.2024 | - | 89,531 |
Finnvera Plc - XS2710055802 | 100,000 | EUR | 24.10.2023 | 23.2.2024 | - | 99,435 |
Total | - | 233,965 | ||||
Finnvera Group 2024 | Finnvera plc 2024 | |||
| Nominal | Carrying | Nominal | Carrying | |
| (EUR 1,000) | value | amount | value | amount |
| Debt securities in issue (EMTN debt programme) | ||||
1 Jan 2024 | 10,924,721 | 10,350,848 | 10,924,721 | 10,350,848 |
Debt securities issued | 1,000,000 | 994,750 | 1,000,000 | 994,750 |
Repayments at maturity | -928,764 | -928,764 | -928,764 | -928,764 |
Fair value changes | - | 197,862 | - | 197,862 |
Foreign exchange differences | 214,202 | 209,336 | 214,202 | 209,336 |
Other changes | - | 6,078 | - | 6,078 |
31 Dec 2024 | 11,210,159 | 10,830,110 | 11,210,159 | 10,830,110 |
Average interest rate 1 | 3.7553% | 3.7416% | ||
Finnvera Group 2023 | Finnvera plc 2023 | |||
| Nominal | Carrying | Nominal | Carrying | |
| (EUR 1,000) | value | amount | value | amount |
| Debt securities in issue (EMTN debt programme) | ||||
1 Jan 2023 | 10,134,386 | 9,107,199 | 10,134,386 | 9,107,199 |
Debt securities issued | 1,869,837 | 1,861,025 | 1,869,837 | 1,861,025 |
Repayments at maturity | -913,159 | -913,159 | -913,159 | -913,159 |
Fair value changes | - | 451,152 | - | 451,152 |
Foreign exchange differences | -166,344 | -160,353 | -166,344 | -160,353 |
Other changes | - | 4,983 | - | 4,983 |
31 Dec 2023 | 10,924,721 | 10,350,848 | 10,924,721 | 10,350,848 |
Average interest rate 1 | 4.7150% | 4.7064% | ||
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Hedge ineffectiveness 1 | Finnvera plc/Finnvera Group | |
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 |
Hedging derivatives, debt securities | -62,238 | -122,858 |
Hedging derivatives, debt securities in issue | 182,104 | 395,040 |
Hedging instruments total | 119,866 | 272,181 |
Hedged items, debt securities | 62,846 | 125,027 |
Hedged items, debt securities in issue | -177,186 | -402,875 |
Hedged items total | -114,340 | -277,848 |
Hedge ineffectiveness recognised in the income statement 2 | 5,526 | -5,667 |
Accumulated fair value adjustments on hedged assets | Finnvera plc/Finnvera Group | ||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | |
Debt securities carried at fair value through OCI | 3,647,092 | 2,456,344 | |
Of which accumulated amount of fair value hedge adjustments | 22,282 | -40,564 | |
Accumulated fair value adjustments on liabilities | Finnvera plc/Finnvera Group | ||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | |
Debt securities in issue, carried at amortised cost | 9,863,154 | 9,595,909 | |
Accumulated amount of fair value hedge adjustments | -313,993 | -490,596 | |
Total | 9,549,161 | 9,105,313 | |
| Finnvera plc/Finnvera Group | |||
Fair value | Nominal value | ||
(EUR 1,000) | positive | negative | Total |
| 31 Dec 2024 | |||
| Fair value hedges | |||
- Interest rate swaps | 70,313 | 377,791 | 12,576,113 |
- Cross-currency interest rate swaps | 52,065 | 154,396 | 2,296,659 |
Hedging derivatives not designated in hedge accounting relationships 1 | |||
- Interest rate swaps | - | 6,821 | 2,179,926 |
- Cross-currency interest rate swaps | - | 167,273 | 841,211 |
- Forward rate agreements | - | - | - |
- Forward foreign exchange contracts | 18,082 | 31 | 1,147,085 |
Total | 140,459 | 706,311 | 19,040,994 |
| 31 Dec 2023 | |||
| Fair value hedges | |||
- Interest rate swaps | 94,729 | 498,419 | 11,222,032 |
- Cross-currency interest rate swaps | - | 87,046 | 2,239,080 |
Hedging derivatives not designated in hedge accounting relationships 1 | |||
- Interest rate swaps | 135 | 16,933 | 1,384,729 |
- Cross-currency interest rate swaps | - | 111,783 | 852,323 |
- Forward rate agreements | - | 186 | 300,000 |
- Forward foreign exchange contracts | 1,496 | 46,294 | 2,079,739 |
Total | 96,359 | 760,660 | 18,077,902 |
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Finnvera plc/Finnvera Group | |||
| Hedging | Cost of | ||
| (EUR 1,000) | reserve | hedging | Total |
Balance at 1st Jan 2024 | -2,142 | -17,010 | -19,152 |
Fair value changes during the period | 3,222 | -18,526 | -15,305 |
Balance at 31 Dec 2024 | 1,079 | -35,537 | -34,457 |
Finnvera plc/Finnvera Group | |||
| Hedging | Cost of | ||
| (EUR 1,000) | reserve | hedging | Total |
Balance at 1st Jan 2023 | -4,259 | -3,178 | -7,437 |
Fair value changes during the period | 2,117 | -13,832 | -11,715 |
Balance at 31 Dec 2023 | -2,142 | -17,010 | -19,152 |
| amount of hedging instruments | ||||||
31 Dec 2024 | <3 months 3-12 months | >1-5 years | >5-10 years | >10 years | Total | |
Hegding instruments, interest rate risk | - | - | 431,317 | 699,418 | 203,368 | 1,334,103 |
Total | - | - | 431,317 | 699,418 | 203,368 | 1,334,103 |
| amount of hedging instruments | ||||||
31 Dec 2023 | <3 months 3-12 months | >1-5 years | >5-10 years | >10 years | Total | |
Hegding instruments, interest rate risk | - | - | 431,317 | 699,418 | 203,368 | 1,334,103 |
Total | - | - | 431,317 | 699,418 | 203,368 | 1,334,103 |
| E12 Other liabilities | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
Grants under repayment obligation | - | 4,252 | - | 4,252 |
Accounts payable for investments in debt securities | 1,991 | 6,456 | 1,991 | 6,456 |
Lease liabilities according to IFRS 16 | 8,441 | 5,409 | 8,441 | 5,409 |
Other | 4,526 | 4,936 | 4,516 | 4,935 |
Group internal other liabilities | - | - | 346 | - |
Total | 14,958 | 21,052 | 15,295 | 21,052 |
31 Dec 2024 | <3 months 3-12 months | >1-5 years | >5-10 years | >10 years | Total | |
| Hegding instruments, interest | 43,000 | 159,600 | 2,847,200 | 601,200 | - | 3,651,000 |
| rate risk, debt securities | ||||||
| Hegding instruments, interest rate | - | - | 7,887,670 | 2,000,000 | - | 9,887,670 |
| risk, debt securities in issue | ||||||
Total | 43,000 | 159,600 | 10,734,870 | 2,601,200 | - | 13,538,670 |
31 Dec 2023 | <3 months 3-12 months | >1-5 years | >5-10 years | >10 years | Total | |
| Hegding instruments, interest | 50,000 | 87,000 | 2,173,100 | 197,000 | - | 2,507,100 |
| rate risk, debt securities | ||||||
| Hegding instruments, interest rate | - | 904,977 | 5,714,932 | 3,000,000 | - | 9,619,910 |
| risk, debt securities in issue | ||||||
Total | 50,000 | 991,977 | 7,888,032 | 3,197,000 | - | 12,127,010 |
Hedge ineffectiveness | Finnvera plc/Finnvera Group | |
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 |
Valuation gains and losses during the year | -15,549 | -11,960 |
Cost of hedging portion of the valuation gains and losses | -18,526 | -13,832 |
Valuation gains and lossed excl. Cost of hedging | 2,978 | 1,872 |
Changes in fair value of hedged items used as basis for recognising hedge ineffectiveness | -3,222 | -2,117 |
Hedge ineffectiveness recognised in the income statement 1 | -244 | -244 |
Hedging gains or losses recognised in OCI | -15,305 | -11,715 |
Total | -15,549 | -11,960 |
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E14 Accruals and deferred income
| E14.1 Accruals and deferred income in balance sheet | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
Interest | 247,064 | 227,805 | 228,275 | 203,634 |
Interest liabilities to subsidiaries | - | - | 2,130 | 1,360 |
Advance interest payments received | 192 | 11 | 12 | 11 |
Guarantee premiums paid in advance | 344,440 | 290,236 | 344,440 | 290,236 |
Cash collateral received for derivatives | 62,610 | 41,550 | 62,610 | 41,550 |
Other accruals and deferred income | 11,338 | 11,923 | 6,643 | 6,662 |
Internal advances received and other accrued expenses | - | - | - | 191 |
Total | 665,644 | 571,524 | 644,111 | 543,644 |
| E14.2 Future revenue from guarantee obligations | ||
| Finnvera Group/Finnvera plc | ||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 |
Within one year | 78,947 | 80,788 |
More than one year | 265,493 | 209,448 |
Total | 344,440 | 290,236 |
| E13 Provisions | ||||
Provisions according to IFRS 9 standard | Finnvera Group | Finnvera plc | ||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
836,021 | 280,762 | 991,307 | 1,368,655 | |
Provisions made during the period 1 | 4,808 | 555,259 | - | - |
Reversal of provisions | - | - | -72,347 | -377,348 |
840,829 | 836,021 | 918,959 | 991,307 | |
64,793 | 51,870 | 64,793 | 51,870 | |
Provisions made during the period | - | 12,923 | - | 12,923 |
Reversal of provisions | -12,287 | - | -12,287 | - |
52,506 | 64,793 | 52,506 | 64,793 | |
Total provisions for IFRS 9 at 1 Jan | 900,814 | 332,632 | 1,056,100 | 1,420,525 |
Provisions made during the period | 4,808 | 568,182 | - | 12,923 |
Reversal of provisions | -12,287 | - | -84,634 | -377,348 |
Total provisions for IFRS 9 at 31 Dec | 893,335 | 900,814 | 971,466 | 1,056,100 |
Provisions according to IAS 37 standard | Finnvera Group | Finnvera plc | ||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
Provisions according to IAS37 1 Jan | 1,675 | - | 1,675 | - |
Provisions made during the period | - | 1,675 | - | 1,675 |
Provisions used during the period | - | - | - | - |
Reversal of provisions | -1,675 | - | -1,675 | - |
Provisions according to IAS37 31 Dec | - | 1,675 | - | 1,675 |
Total provisions at 31 Dec | 893,335 | 902,490 | 971,466 | 1,057,775 |
depreciation in balance sheet items Receivables from clients and Receivables from credit institutions.
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| E15 Financial instruments classification and fair values | ||||||
Finnvera Group, IFRS 9 | At fair value | |||||
| fair value through | ||||||
| Fair value | ||||||
| (EUR 1,000) | value option) | through OCI | Total | Fair value 1 | ||
| 31 Dec 2024 | ||||||
| Loans to and receivables | 578,684 | - | - | - | 578,684 | 579,426 |
| from credit institutions | ||||||
| Loans to and receivables | 7,358,324 | - | - | 30,130 | 7,388,454 | 7,530,646 |
| from customers | ||||||
| Investments in debt securities | 1,452,282 | - | - | - | 1,452,282 | 1,452,282 |
| – Short term debt securities | ||||||
| Investments in debt | - | - | - | 3,830,464 | 3,830,464 | 3,830,464 |
| securities – Bonds | ||||||
Derivatives | - | 140,459 | - | - | 140,459 | 140,459 |
Other shares and participations | - | 13,687 | - | - | 13,687 | 13,687 |
1,291,993 | - | - | - | 1,291,993 | 1,291,993 | |
Total | 10,681,284 | 154,147 | - | 3,860,594 | 14,696,025 | 14,838,959 |
| At fair value | ||||||
| fair value through | ||||||
| Fair value | ||||||
| (EUR 1,000) | value option) | through OCI | Total | Fair value 1 | ||
| 31 Dec 2023 | ||||||
| Loans to and receivables | 1,356,534 | - | - | - | 1,356,534 | 1,357,536 |
| from credit institutions | ||||||
| Loans to and receivables | 7,894,345 | - | - | 30,046 | 7,924,390 | 8,071,329 |
| from customers | ||||||
| Investments in debt securities | 828,257 | - | - | - | 828,257 | 828,257 |
| – Short term debt securities | ||||||
| Investments in debt | - | - | - | 2,712,418 | 2,712,418 | 2,712,418 |
| securities – Bonds | ||||||
Derivatives | - | 96,359 | - | - | 96,359 | 96,359 |
Other shares and participations | - | 13,723 | - | - | 13,723 | 13,723 |
1,323,326 | - | - | - | 1,323,326 | 1,323,326 | |
Total | 11,402,462 | 110,082 | - | 2,742,464 | 14,255,008 | 14,402,949 |
Finnvera Group, IFRS 9 | At fair value | ||||
| Fair value | |||||
| (EUR 1,000) | option | Total | Fair value 1 | ||
| 31 Dec 2024 | |||||
Liabilities to other institutions | 103,527 | - | - | 103,527 | 103,528 |
| Debt securities in issue | |||||
- EMTN debt programme | 9,552,964 | - | 1,277,147 | 10,830,110 | 10,741,063 |
- ECP debt programme | - | - | - | ||
Derivatives | - | 706,311 | - | 706,311 | 706,311 |
330,866 | - | - | 330,866 | 330,866 | |
Total | 9,987,357 | 706,311 | 1,277,147 | 11,970,815 | 11,881,768 |
| At fair value | |||||
| Fair value | |||||
| (EUR 1,000) | option | Total | Fair value 1 | ||
| 31 Dec 2023 | |||||
Liabilities to other institutions | 128,525 | - | - | 128,525 | 128,482 |
| Debt securities in issue | |||||
- EMTN debt programme | 9,113,418 | - | 1,237,430 | 10,350,848 | 10,316,649 |
- ECP debt programme | 233,965 | - | - | 233,965 | 233,965 |
Derivatives | - | 760,660 | - | 760,660 | 760,660 |
290,622 | - | - | 290,622 | 290,622 | |
Total | 9,766,530 | 760,660 | 1,237,430 | 11,764,620 | 11,730,379 |
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Finnvera plc, IFRS 9 At fair value
(EUR 1,000)
fair value through
value option)
Fair value
through OCI Total Fair value
1
31 Dec 2024
Loans to and receivables
from credit institutions
436,789 - - - 436,789 436,789
Loans to and receivables
from customers
7,527,630 - - 30,130 7,557,760 7,656,884
Investments in debt securities
– Short term debt securities
1,452,282 - - - 1,452,282 1,452,282
Investments in debt
securities – Bonds
- - - 3,830,464 3,830,464 3,830,464
Derivatives - 140,459 - - 140,459 140,459
Other shares and participations - 13,687 - - 13,687 13,687
1,268,600 - - - 1,268,600 1,268,600
Total 10,685,301 154,147 - 3,860,594 14,700,042 14,799,166
Finnvera plc, IFRS 9 At fair value
(EUR 1,000)
fair value through
value option)
Fair value
through OCI Total Fair value
1
31 Dec 2023
Loans to and receivables
from credit institutions
1,093,135 - - 1,093,135 1,093,135
Loans to and receivables
from customers
8,235,816 - - 30,046 8,265,862 8,376,560
Investments in debt securities
– Short term debt securities
828,257 - - - 828,257 828,257
Investments in debt
securities – Bonds
- - - 2,712,418 2,712,418 2,712,418
Derivatives - 96,359 - - 96,359 96,359
Other shares and participations - 13,723 - - 13,723 13,723
1,297,885 - - - 1,297,885 1,297,885
Total 11,455,094 110,082 - 2,742,464 14,307,640 14,418,338
1 The fair values for receivables that are not measured at fair value in accounting have been determined according to the following principles.
The fair value of short-term receivables has been set at their carrying amount due to their short maturity. The fair value of long-term receivables
Finnvera plc, IFRS 9 At fair value
(EUR 1,000)
Fair value
option Total Fair value
1
31 Dec 2024
Liabilities to other institutions 311,069 - - 311,069 311,069
Debt securities in issue
- EMTN debt programme 9,552,964 - 1,277,147 10,830,110 10,741,063
- ECP debt programme - - -
Derivatives - 706,311 - 706,311 706,311
314,363 - - 314,363 314,363
Total 10,178,396 706,311 1,277,147 12,161,854 12,072,807
At fair value
(EUR 1,000)
Fair value
option Total Fair value
1
31 Dec 2023
Liabilities to other institutions 286,150 - - 286,150 286,150
Debt securities in issue
- EMTN debt programme 9,113,418 - 1,237,430 10,350,848 10,316,649
- ECP debt programme 233,965 - - 233,965 233,965
Derivatives - 760,660 - 760,660 760,660
Subordinated liabilities 268,002 - - 268,002 268,002
Total 9,901,535 760,660 1,237,430 11,899,625 11,865,427
1 The fair values for liability items that are not measured at fair value in accounting have been determined according to the following principles.
The fair value of short-term liabilities has been set at their carrying amount due to their short maturity.The fair value of long-term liabilities is
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| E16 Hierarchy for financial instruments carried at fair value | ||||||||
Finnvera Group | Finnvera plc | |||||||
(EUR 1,000) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total |
Financial instruments carried at fair | ||||||||
- Derivatives | - | 140,459 | - | 140,459 | - | 140,459 | - | 140,459 |
- Other Shares and participations | - | - | 13,687 | 13,687 | - | - | 13,687 | 13,687 |
Financial instruments carried at fair value through other comperehensive income (OCI) | ||||||||
- Loans to and receivables from customers – Debt securities | - | 30,130 | - | 30,130 | - | 30,130 | - | 30,130 |
- Investments in debt securities – Bonds | - | 3,830,464 | - | 3,830,464 | - | 3,830,464 | - | 3,830,464 |
Total | - | 4,001,054 | 13,687 | 4,014,741 | - | 4,001,054 | 13,687 | 4,014,741 |
Financial instruments carried at fair | ||||||||
- Debt securities in issue | - | 1,277,147 | - | 1,277,147 | - | 1,277,147 | - | 1,277,147 |
- Derivatives | - | 706,311 | - | 706,311 | - | 706,311 | - | 706,311 |
Total | - | 1,983,458 | - | 1,983,458 | - | 1,983,458 | - | 1,983,458 |
Financial instruments carried at fair | ||||||||
- Derivatives | - | 96,359 | - | 96,359 | - | 96,359 | - | 96,359 |
- Other Shares and participations | - | - | 13,723 | 13,723 | - | - | 13,723 | 13,723 |
Financial instruments carried at fair value through other comperehensive income (OCI) | ||||||||
- Loans to and receivables from customers – Debt securities | - | 30,046 | - | 30,046 | - | 30,046 | - | 30,046 |
- Investments in debt securities – Bonds | - | 2,712,418 | - | 2,712,418 | - | 2,712,418 | - | 2,712,418 |
Total | - | 2,838,823 | 13,723 | 2,852,546 | - | 2,838,823 | 13,723 | 2,852,546 |
Financial instruments carried at fair | ||||||||
- Debt securities in issue | - | 1,237,430 | - | 1,237,430 | - | 1,237,430 | - | 1,237,430 |
- Derivatives | - | 760,660 | - | 760,660 | - | 760,660 | - | 760,660 |
Total | - | 1,998,090 | - | 1,998,090 | - | 1,998,090 | - | 1,998,090 |
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| E17 Specification of events at hierarchy level 3 | ||
Finnvera Group | ||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 |
Balance at 1 Jan 1 | 13,723 | 13,723 |
- | - | |
Acquisitions | - | - |
Sales | - | - |
Other | -35 | - |
13,687 | 13,723 | |
- | - | |
| for the instruments held by the Group/Finnvera plc |
| E18 Financial instruments set o | |||||||
| Finnvera Group / Finnvera plc | |||||||
| (EUR 1,000) | 1 | 1 | 1 | Net amount 1 | |||
Derivatives | 140,459 | - | 140,459 | -77,029 | - | -62,610 | 821 |
Total | 140,459 | - | 140,459 | -77,029 | - | -62,610 | 821 |
Derivatives | 706,311 | - | 706,311 | -77,029 | - | -689,490 | 60,208 |
Total | 706,311 | - | 706,311 | -77,029 | - | -689,490 | 60,208 |
Derivatives | 96,359 | - | 96,359 | -62,263 | - | -41,550 | -7,454 |
Total | 96,359 | - | 96,359 | -62,263 | - | -41,550 | -7,454 |
Derivatives | 760,660 | - | 760,660 | -62,263 | - | -735,170 | 36,773 |
Total | 760,660 | - | 760,660 | -62,263 | - | -735,170 | 36,773 |
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| E19 Equity | ||||
Finnvera Group | Finnvera plc | |||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2024 | 31 Dec 2023 |
196,605 | 196,605 | 196,605 | 196,605 | |
51,036 | 51,036 | 51,036 | 51,036 | |
-48,226 | -30,055 | -50,775 | -28,390 | |
- Fair value changes in assets carried at fair value through OCI | -20,816 | -13,017 | -20,816 | -13,017 |
- Expected credit losses (ECL) of assets at fair value through OCI | 4,498 | 3,780 | 4,498 | 3,780 |
- Change in the credit risk associated with liabilities carried at fair value | 2,549 | -1,666 | - | - |
1,079 | -2,142 | 1,079 | -2,142 | |
-35,537 | -17,010 | -35,537 | -17,010 | |
199,415 | 217,586 | 196,866 | 219,251 | |
916,129 | 509,306 | 916,129 | 509,306 | |
- Reserve for domestic operations | 404,757 | 374,558 | 404,757 | 374,558 |
- Reserve for export credit guarantees and special guarantees | 511,372 | 134,748 | 511,372 | 134,748 |
426,944 | 606,178 | 195,767 | 407,326 | |
199,355 | 172,334 | 504 | 504 | |
- Result for the period | 227,709 | 433,361 | 195,384 | 406,340 |
- Direct entries to retained earnings | -121 | 483 | -121 | 483 |
1,343,073 | 1,115,484 | 1,111,896 | 916,633 | |
1,542,487 | 1,333,070 | 1,308,761 | 1,135,884 |
31 Dec 2024 | 31 Dec 2023 | |||||
| Share capital | Share capital | |||||
(EUR 1,000) | (EUR 1,000) | |||||
196,605 | 11,565 | 100% | 196,605 | 11,565 | 100% |
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F Personnel and management
| F1 Average number of employees | ||||
Finnvera Group | Finnvera plc | |||
2024 | 2023 | 2024 | 2023 | |
| Average number of employees | ||||
- Permanent | 350 | 351 | 350 | 351 |
- Temporary | 22 | 18 | 22 | 18 |
Total | 372 | 369 | 372 | 369 |
Personnel as person-years | 345 | 342 | 345 | 342 |
| Finnvera plc | ||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 |
2,609 | 2,073 | |
Supplementary pension commitments | 85 | 66 |
Remuneration of the Board of Directors and Supervisory Board members | 281 | 289 |
Total | 2,975 | 2,428 |
| F4 Salaries, remunerations and pension commitments for the key personnel | ||||||
Finnvera plc | 31 Dec 2024 | 31 Dec 2023 | ||||
Pension commitments | Pension commitments | |||||
(EUR 1,000) | Salaries | Voluntary | Statutory | Salaries | Voluntary | Statutory |
| Management salaries (incl. social security costs) | ||||||
| as well as applicable pension commitments | ||||||
CEO Pauli Heikkilä until 31 May 2024 | 256 | 58 | 44 | 462 | 45 | 80 |
CEO Juuso Heinilä as 1 June 2024 | 194 | - | 34 | |||
Deputy CEO Executive Vice President Jussi Haarasilta | 275 | - | 48 | 245 | - | 43 |
Other members of the Management Group | 1,884 | 27 | 253 | 1,366 | 21 | 238 |
Other members of the Management Group, total | 2,609 | 85 | 379 | 2,073 | 66 | 361 |
| Members of the Board of Directors | ||||||
Petri Ekman, chair until 4 December 2024 | 38 | - | - | 42 | - | - |
Jan Vapaavuori, chair as 4 December 2024 | 2 | |||||
Antti Neimala, I vice chair until 17 March 2023 | - | - | - | 9 | - | - |
Elise Pekkala, I vice chair until 21 March 2024 | 7 | - | - | 20 | - | - |
Jan Hjelt, I vice chair as 21 March 2024 | 21 | |||||
Terhi Järvikare, II vice chair until 17 March 2023 | - | - | - | 7 | - | - |
Mikko Spolander, II vice chair | 26 | - | - | 19 | - | - |
Hannu Jaatinen, member | 33 | - | - | 32 | - | - |
Eila Kreivi, member as 21 March 2024 | 19 | |||||
Ritva Laukkanen, member until 21 March 2024 | 7 | - | - | 27 | - | - |
Anne Nurminen, member | 23 | - | - | 24 | - | - |
Elina Piispanen, member | 31 | - | - | 30 | - | - |
Pia Santavirta, member as 4 December 2024 | 1 | - | - | - | - | |
Petri Viertiö, member until 4 December 2024 | 23 | - | - | 24 | - | - |
Board of Directors, total | 229 | - | - | 233 | - | - |
Members of the Supervisory Board, total | 52 | - | - | 55 | - | - |
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F
| Balance sheet items arising from the defined benefit: | |||
| Finnvera Group/Finnvera plc | |||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | |
| Pension obligation | |||
Present value of funded obligations 1 Jan | 723 | 1,250 | |
Total change | -258 | -526 | |
Unrecognised actuarial gains or losses | 15 | 44 | |
Interest on obligation | 23 | 47 | |
-281 | -351 | ||
-23 | 127 | ||
Caused by changes in demographic assumptions | - | - | |
Based on experience | 7 | -394 | |
Present value of funded obligations 31 Dec | 465 | 723 | |
| Fair value of assets | |||
Fair value of plan assets 1 Jan | 1,335 | 1,416 | |
Total change | -670 | -81 | |
Interest income on assets | 43 | 54 | |
-281 | -351 | ||
Return on plan assets, excluding items con - tained in interest expenses or income | -136 | 216 | |
Contributions paid to the plan | -295 | - | |
Fair value of plan assets 31 Dec | 665 | 1,335 | |
| Net liabilities+/Net receivables- (difference | -200 | -612 | |
| between obligations and assets) | |||
| Consolidated comprehensive income | |||
| statement – pension costs | |||
Unrecognised actuarial gains or losses | 15 | 44 | |
- | - | ||
Net interest expenses | -20 | -6 | |
-4 | 38 | ||
Items resulting from revaluation | 121 | -483 |
| The net liabilities of the Group’s defined benefits have changed during the financial period as follows: | |||
| Finnvera Group/Finnvera plc | |||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2023 | |
Pension debt (+) / Pension receivable (-) 1 Jan | -612 | -167 | |
Expenses recognised in the income statement | -4 | 38 | |
Paid pension contributions | 295 | - | |
Other items recognised in the consolidated statement of comprehensive income | 121 | -483 | |
Pension debt (+) / Pension receivable (-) 31 Dec | -200 | -612 | |
| The plan assets include 100 % qualifying insurance policies. | Finnvera Group/Finnvera plc | ||
Actuarial assumptions | 31 Dec 2024 | 31 Dec 2023 | |
Discount rate | 3.35 | 3.20 | |
Future salary increases | 2.45 | 2.60 | |
Future pension increases | 3.50 | 3.60 | |
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G Shares and holdings
| G1 Shares and holdings in group companies | |||||||
| Finnvera plc | |||||||
31 Dec 2024 | 31 Dec 2023 | ||||||
| Holding of all | Share of | Book value | Holding of all | Share of | Book value | ||
Name and domicile of the company | Sector | shares, % | votes, % | (EUR 1,000) | shares, % | votes, % | (EUR 1,000) |
| Subsidiaries (holding over 50%) | |||||||
Finnish Export Credit Ltd, Helsinki | 100.00% | 100.00% | 20,182 | 100.00% | 100.00% | 20,182 |
G2 Related party transactions, loans and receivables
Related parties include the following: the parent company, its subsidiary, the Ministry of Finance and the Ministry of Economic Affairs as well as The State
Guarantee Fund which is under the Ministry of Economic Affairs. Related parties also include the members of the Supervisory Board and the Board of
Directors, the Chief Executive Officer, the Executive Vice President and other members of the Management Group. The employment benefits received by key
management personnel are presented in the Note F3. The pricing of related party transactions is market-based.
| Finnvera Group | ||||
31 Dec 2024 | 31 Dec 2023 | |||
(EUR 1,000) | Internal item | Other | Internal item | Other |
| Relative party transactions, loans and receivables | ||||
Interest subsidies, compensation for losses and other items from the State | - | 20,583 | - | 18,320 |
Interest income | 350,618 | 112,465 | 290,206 | 83,925 |
Interest expenses | 350,618 | 361 | 290,206 | 925 |
Loans | 6,510,595 | - | 7,473,358 | - |
Other long-term receivables | - | 349,023 | - | 349,023 |
Short-term receivables | 268,477 | 45,673 | 265,590 | 61,698 |
Long-term liabilities | 6,510,595 | 7,458 | 7,473,358 | 22,375 |
Short-term liabilities | 268,477 | 18,788 | 265,590 | 24,171 |
Guarantees | 8,212,311 | - | 9,454,017 | - |
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| G3 Separate result of activities referred to in the act on the State Guarantee Fund §4, and it’s share of the total result of Finnvera plc | ||||
| Activities referred to in | Activities referred to in | |||
| the Fund Act and their | the Fund Act and their | |||
(EUR 1,000) | 31 Dec 2024 | 31 Dec 2024 | 31 Dec 2023 | 31 Dec 2023 |
Net interest income | 108,550 | 49,945 | 84,173 | 30,443 |
- Interest income | 1,046,132 | 5,640 | 821,836 | 5,147 |
- Interest expense | -937,582 | 44,304 | -737,663 | 25,296 |
Net fee and commission income | 186,697 | 146,279 | 162,110 | 120,772 |
- Fee and commission income | 191,676 | 149,001 | 174,139 | 130,005 |
- Fee and commission expenses | -4,978 | -2,722 | -12,029 | -9,233 |
3,183 | 3,490 | -3,007 | -110 | |
Net income from investments | -390 | - | 330 | - |
Other operating income | 6,468 | 124 | 7,569 | 126 |
Operational expenses | -52,400 | -18,357 | -49,558 | -16,548 |
- Personnel expenses | -32,840 | -11,166 | -32,479 | -10,818 |
- Other operational expenses | -19,560 | -7,191 | -17,078 | -5,730 |
Depreciation and amortisation | -5,253 | -1,325 | -4,865 | -1,161 |
Other operating expenses | -1,954 | -163 | -472 | -134 |
| Realised credit losses and change | -49,518 | -12,165 | 210,061 | 243,235 |
| in expected credit losses, net | ||||
- Realised credit losses | -120,584 | -76,579 | -128,436 | -91,952 |
| - Credit loss compensations | 20,493 | - | 18,230 | - |
| from the State | ||||
- Change in expected credit losses | 50,573 | 64,414 | 320,267 | 335,187 |
Operating result | 195,384 | 167,829 | 406,340 | 376,624 |
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H Key financial performance indicators
| H1 Key figures | ||||
Finnvera Group | Finnvera plc | |||
2024 | 2023 | 2024 | 2023 | |
Net interest income, MEUR | 139 | 115 | 109 | 84 |
Net fee and commission income, MEUR | 198 | 177 | 187 | 162 |
Operational expenses, MEUR | -53 | -50 | -52 | -50 |
| - of which personnel expenses including | -33 | -32 | -33 | -32 |
| social security costs, MEUR | ||||
Realised credit losses and change in expected credit losses, MEUR | -70 | 192 | -70 | 192 |
Credit loss compensation from the State, MEUR | 20 | 18 | 20 | 18 |
Operating result, MEUR | 236 | 439 | 195 | 406 |
Result, MEUR | 228 | 433 | 195 | 406 |
Loans to and receivables from customers, MEUR | 7,388 | 7,924 | 7,558 | 8,266 |
Investments, MEUR | 5,296 | 3,554 | 5,317 | 3,575 |
Liabilities, MEUR | 13,214 | 12,969 | 13,478 | 13,254 |
- of which debt securities in issue, MEUR | 10,830 | 10,585 | 10,830 | 10,585 |
Shareholders' equity, MEUR | 1,542 | 1,333 | 1,309 | 1,136 |
- of which non-restricted equity, MEUR | 1,343 | 1,115 | 1,112 | 917 |
Balance sheet total, MEUR | 14,756 | 14,302 | 14,787 | 14,390 |
Return on equity, ROE, % | 15.8 | 38.7 | 16.0 | 43.3 |
Return on assets, ROA, % | 1.6 | 3.2 | 1.3 | 2.9 |
Equity ratio, % | 10.5 | 9.3 | 8.9 | 7.9 |
Expense-income ratio, % | 17.3 | 19.4 | 19.6 | 21.9 |
Average number of employees | 372 | 369 | 372 | 369 |
H2 Formulas for the key indicators
result
× 100
equity (as the average of the value at the beginning and the end of the period)
× 100
balance sheet total on average (as the average of the value
at the beginning and at the end of the period)
equity + minority share + accumulated appropriations
deducted by the deferred tax liability
× 100
balance sheet total
operational expenses + depreciation, amortisation and impairment
on tangible and intangible assets + other operating expenses
× 100
net interest income + net fee and commission income + gains
+ net income from investments + other operating income
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Signatures
Helsinki, 20 February 2025
Jan Vapaavuori Jan Hjelt
Chair of the Board of Directors First Vice Chair
Mikko Spolander Hannu Jaatinen
Second Vice Chair
Eila Kreivi Anne Nurminen
Elina Piispanen Pia Santavirta
Juuso Heinilä
CEO
Auditor’s note
A report on the audit conducted was issued today.
Helsinki, 20 February 2025
Ernst & Young Oy
Authorized Public Accountant Firm
Miikka Hietala
Authorized Public Accountant
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Auditor’s Report
To the Annual General Meeting of Finnvera plc
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Finnvera Oyj (business identity code 1484332-4) for the year ended
31 December, 2024. The financial statements comprise both the consolidated and the parent company’s balance
sheet, statement of comprehensive income, statement of changes in equity, statement of cash flows and notes,
including material accounting policy information.
In our opinion the financial statements give a true and fair view of the group’s and the parent company’s
financial position, financial performance and cash flows in accordance with IFRS Accounting Standards as
adopted by the EU and comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good
auditing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report.
We are independent of the parent company and of the group companies in accordance with the ethical
requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that we have provided to the parent company
and group companies are in compliance with laws and regulations applicable in Finland regarding these services,
and we have not provided any prohibited non-audit services referred to in Article 5(1) of regulation (EU) 537/2014.
The non-audit services that we have provided have been disclosed in note D6.2.1 to the consolidated financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report, including in relation to these matters. Accordingly, our audit included the
performance of procedures designed to respond to our assessment of the risks of material misstatement of the
financial statements. The results of our audit procedures, including the procedures performed to address the
matters below, provide the basis for our audit opinion on the accompanying financial statements.
We have also addressed the risk of management override of internal controls. This includes consideration of
whether there was evidence of management bias that represented a risk of material misstatement due to fraud.
This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.
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Report of the
Board of Directors
CEO’s review
Financial
Statements
Sustainability
Business
operations
Governance
Notes to the
financial statements
ANNUAL REPORT 2024
The key audit matter
How our audit addressed
the Key Audit Matter
Recognition of commission income from export credit guarantees and special guarantees
We refer to the notes A Accounting principles and notes to the income statement D2
-
Guarantee fees are accrued over the life of the
contract. Advance payments are recognized as
income based on the accrual criteria entered into
the system during the validity of the guarantee.
Guarantee agreements are drawn up on a
customer-specific basis and may be amended
during the validity of the agreements.
-
Commission income from export credit
guarantees and special guarantees totalled
EUR 148.0 million in the 31.12.2014 financial
statements (31.12.2023: 127.9 million), which
covers approximately 73% of commission income.
Due to the significant amount of commission
income from export credit guarantees and special
guarantee operations and the differences in the
basis for determining the income, the recognition
of commission income is a key audit matter
and a significant risk of material misstatement
as referred to in point (c) of Article 10 (2) of EU
Regulation 527/2014 due to the risk related to the
timely recognition of income.
-
Our audit procedures, which take into account the
risk of material misstatement in the recognition of
commission income, included, among others,
• assessing the appropriateness of the Group’s
accounting policies for recognizing commission
income and comparing it with applicable
accounting standards;
• testing the recognition of commission income,
including reviewing internal controls when
applicable. Our testing included reconciliations
of commission income amounts to customer
contracts and testing of guarantee fees paid in
advance;
• substantive analytical procedures related to
commission income; and
• assessing the adequacy of disclosures related
to commission income.
Expected credit losses on receivables from customers and on contingent liabilities
We refer to the notes A Accounting principles, B Risk management, Contingent liabilities
and notes E2 and E13 on the balance sheet.
-
The model for calculating expected credit losses
uses assumptions, estimates and management
judgement related to, among other things,
determining the probability and amount of
expected credit losses and a significant increase
in credit risk. Management may also amend and
supplement loss provisions generated by the
accounting model with additional entries based on
management judgements.
-
Expected credit losses on receivable from
customers in the 31.12.2024 financial statements
totalled EUR 244.1 million (31.12.2024: 288.2
million) and contingent liabilities EUR 893.3
million (31.12.2023: EUR 902.5 million).
-
Expected credit losses on receivable from
customers and contingent liabilities was
determined to be a key audit matter and a
significant risk of material misstatement referred
to in EU Regulation No 537/2014, point (c) of
Article 10(2) due to significant management
judgement included in the valuation of expected
credit losses.
-
Our audit procedures, which take into account the
material misstatement in estimating expected
credit losses included, among others,
• assessing the appropriateness of expected
credit loss calculation methods and comparing
them with applicable accounting standards
(IFRS 9);
• testing the methods for calculating expected
credit losses, including reviewing internal
controls where applicable;
• assessing the appropriateness and
reasonableness of the key assumptions and
estimates used in the expected credit loss (ECL)
model;
• assessment of the basis and reasonableness of
the formation of additional provisions based on
management judgement;
• assessing the adequacy of disclosures related
to expected credit losses.
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Report of the
Board of Directors
CEO’s review
Financial
Statements
Sustainability
Business
operations
Governance
Notes to the
financial statements
ANNUAL REPORT 2024
Responsibilities of the Board of Directors and the Managing Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation of financial statements that
give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU, and of financial
statements that give a true and fair view in accordance with the laws and regulations governing the preparation of
financial statements in Finland and comply with statutory requirements. The Board of Directors and the Managing
Director are also responsible for such internal control as they determine is necessary to enable the preparation of
financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are responsible for
assessing the parent company’s and the group’s ability to continue as going concern, disclosing, as applicable,
matters relating to going concern and using the going concern basis of accounting. The financial statements are
prepared using the going concern basis of accounting unless there is an intention to liquidate the parent company
or the group or cease operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance on whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with good auditing practice will always detect a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
-
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
-
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
parent company’s or the group’s internal control.
-
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by management.
-
Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going
concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the parent company’s or the group’s ability
to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date
of our auditor’s report. However, future events or conditions may cause the parent company or the group to
cease to continue as a going concern.
-
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events so that the financial
statements give a true and fair view.
-
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the group as a basis for forming an opinion on the group
financial statements. We are responsible for the direction, supervision and review of the audit work performed
for purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were
of most significance in the audit of the financial statements of the current period and are therefore the key
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
87
Report of the
Board of Directors
CEO’s review
Financial
Statements
Sustainability
Business
operations
Governance
Notes to the
financial statements
ANNUAL REPORT 2024
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting on 21.3.2024.
Other information
The Board of Directors and the Managing Director are responsible for the other information. The other information
comprises the report of the Board of Directors and the information included in the Annual Report, but does not
include the financial statements and our auditor’s report thereon. We have obtained the report of the Board of
Directors and the Annual Report prior to the date of this auditor’s report.
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. With
respect to report of the Board of Directors, our responsibility also includes considering whether the report of the
Board of Directors has been prepared in compliance with the applicable provisions.
In our opinion, the information in the report of the Board of Directors is consistent with the information in the
financial statements and the report of the Board of Directors has been prepared in compliance with the applicable
provisions.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Opinions based on assignment of the Audit Committee
We support that the financial statements should be adopted. The proposal by the Board of Directors regarding
the use of the profit for the financial year is in compliance with the Limited Liability Companies Act. We support
that the Members of the Supervisory Board and of the Board of Directors as well as the Managing Director of the
parent company should be discharged from liability for the financial period audited by us.
Helsinki 20.2.2025
Ernst & Young Oy
Authorized Public Accountant Firm
Miikka Hietala
Authorized Public Accountant
88
Report of the
Board of Directors
CEO’s review
Financial
Statements
Sustainability
Business
operations
Governance
Notes to the
financial statements
ANNUAL REPORT 2024
Independent Auditor’s Report on the ESEF Consolidated
Financial Statements of Finnvera Oyj
To the Board of Directors of Finnvera Oyj
(Translation of the Finnish original)
We have performed a reasonable assurance engagement on the financial statements 743700T69OBBJO7TCA15-
2024-12-31-0-fi.zip of Finnvera Oyj (y-identifier: 1484332-4) that have been prepared in accordance with the
Commission’s regulatory technical standard for the financial year ended 31.12.2024.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director are responsible for the preparation of the company’s report of
Board of Directors and financial statements (the ESEF financial statements) in such a way that they comply with
the requirements of the Commission’s regulatory technical standard. This responsibility includes:
-
preparing the ESEF financial statements in XHTML format in accordance with Article 3 of the Commission’s
regulatory technical standard
-
tagging the primary financial statements, notes and company’s identification data in the consolidated
financial statements that are included in the ESEF financial statements with iXBRL tags in accordance with
Article 4 of the Commission’s regulatory technical standard and
-
ensuring the consistency between the ESEF financial statements and the audited financial statements
The Board of Directors and the Managing Director are also responsible for such internal control as they
determine is necessary to enable the preparation of ESEF financial statements in accordance the requirements
of the Commission’s regulatory technical standard.
Auditor’s Independence and Quality Management
We are independent of the company in accordance with the ethical requirements that are applicable in Finland
and are relevant to the engagement we have performed, and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
The firm applies International Standard on Quality Management (ISQM) 1, which requires the firm to design,
implement and operate a system of quality management including policies or procedures regarding compliance
with ethical requirements, professional standards and applicable legal and regulatory requirements.
Auditor’s Responsibilities
Our responsibility is to, in accordance with Chapter 7, Section 8 of the Securities Markets Act, provide assurance
on the financial statements that have been prepared in accordance with the Commission’s technical regulatory
standard. We express an opinion on whether the consolidated financial statements that are included in the ESEF
financial statements have been tagged, in all material respects, in accordance with the requirements of Article 4 of the
Commission’s regulatory technical standard.
Our responsibility is to indicate in our opinion to what extent the assurance has been provided. We conducted a
reasonable assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000.
The engagement includes procedures to obtain evidence on:
-
whether the primary financial statements in the consolidated financial statements that are included in the
ESEF financial statements have been tagged, in all material respects, with iXBRL tags in accordance with the
requirements of Article 4 of the Commission’s regulatory technical standard and
-
whether the notes and company’s identification data in the consolidated financial statements that are included in
the ESEF financial statements have been tagged, in all material respects, with iXBRL tags in accordance with the
requirements of Article 4 of the Commission’s regulatory technical standard and
-
whether there is consistency between the ESEF financial statements and the audited financial statements.
The nature, timing and extent of the selected procedures depend on the auditor’s judgement. This includes an
assessment of the risk of material deviations due to fraud or error from the requirements of the Commission’s
technical regulatory standard.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities Markets Act is that the primary financial statements,
notes and company’s identification data in the consolidated financial statements that are included in the ESEF financial
statements of Finnvera Oyj 743700T69OBBJO7TCA15-2024-12-31-0-fi.zip for the financial year ended 31.12.2024 have
been tagged, in all material respects, in accordance with the requirements of the Commission’s regulatory technical
standard.
Our opinion on the audit of the consolidated financial statements of Finnvera Oyj for the financial year ended
31.12.2024 has been expressed in our auditor’s report dated 20.2.2025. With this report we do not express an opinion
on the audit of the consolidated financial statements nor express another assurance conclusion.
Helsinki 20.2.2025
Ernst & Young Oy
Authorized Public Accountant Firm
Miikka Hietala
Authorized Public Accountant
89
Report of the
Board of Directors
CEO’s review
Financial
Statements
Sustainability
Business
operations
Governance
Notes to the
financial statements
ANNUAL REPORT 2024
Statement by the Supervisory Board
We have reviewed the financial statements of Finnvera plc, including the consolidated financial statements,
for the period 1 January–31 December 2024, as well as the auditors’ report issued on 20 February 2025.
We propose to the Annual General Meeting that the financial statements, in which the consolidated income
statement shows a profit of EUR 227,709,182.71 and the parent company’s income statement shows a profit of
EUR 195,383,571.53, be adopted and that the parent company’s profit be used in accordance with the proposal
made by the Board of Directors.
Helsinki, 20 February 2025
Sofia Vikman Seppo Eskelinen
Hilkka Kemppi Hanna-Maija Kiviranta
Mari Laaksonen Rami Lehtinen
Aki Lindén Kari Luoto
Veli-Matti Mattila Seppo Nevalainen
Johanna Reinikainen Onni Rostila
Hanna Sarkkinen Katja Syvärinen
Mari-Leena Talvitie Tommi Toivola
Sofia Virta Ville Väyrynen
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Report of the
Board of Directors
CEO’s review
Financial
Statements
Sustainability
Business
operations
Governance
Notes to the
financial statements
ANNUAL REPORT 2024
Finnvera improves and diversifies financing
opportunities available for Finnish enterprises by
offering loans, guarantees and export credit financing.
As a State-owned company, Finnvera supplements
thefinancial market and with its operations, promotes
the development of enterprises and exports.
finnvera.fi