Swedish Export Credit Corp /Swed (GRU) 6-K 2018 Q1 Current report (foreign)

FORM 6-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Report of Foreign Private Issuer

Dated April 24, 2018

Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934

Aktiebolaget Svensk Exportkredit (publ)

Swedish Export Credit Corporation

(Translation of Registrant’s Name into English)

Klarabergsviadukten

61-63

SE-101 23 Stockholm

Sweden

(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

Form 20-F   x Form 40-F   o

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):   N/A

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):   N/A

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes   o No   x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):  N/A

Incorporation by Reference

This report on Form 6-K, including the exhibits hereto, is hereby incorporated by reference, in its entirety, into the registration statement on Form F-3 (File No. 333-221336) of Aktiebolaget Svensk Exportkredit (publ) (“SEK”).

This Report comprises the following:

1.  Registrant’s report for the first quarter of 2018.

2.  Table of unaudited consolidated capitalization of the Registrant at March 31, 2018 (attached as Exhibit 99.2 hereto).

3.  Announcement of new members of the Board of Directors of SEK (the “Board”).

At SEK’s Annual General Meeting held on April 24, 2018, Eva Nilsagård and Hélène Westholm were each elected to the Board as Directors. Eva Nilsagård and Hélène Westholm replace Lotta Mellström and Susanne Lithander, who each chose to leave the Board after seven years and three years of service, respectively.

The Board now consists of the following eight directors:

Name	Age(1)	Position
Lars-Linder Aronson	64	Chairman of the Board and Director
Cecilia Ardström	52	Director
Anna Brandt	56	Director
Reinhold Geijer	64	Director
Hans Larsson	56	Director
Eva Nilsagård	54	Director
Ulla Nilsson	70	Director
Hélène Westholm	47	Director

(1) As of December 31, 2017

Each of the new directors was elected to serve for a term of one year, which will expire at the end of SEK’s next Annual General Meeting in 2019.

Brief biographies of each of the new directors follow below.

Ms. Nilsagård is currently a Director and the Chairman of the Audit Committee of AddLife AB and a Director of Bufab AB. She also serves as Founder and CEO of Nilsagård Consulting. She previously served as CFO of Plastal Industri and Vitrolife AB, SVP of Strategy & Business Development of Volvo Trucks (EMEA) and VP of Finance & IT of Volvo Penta.

Ms. Westholm is currently a Director of AB Svensk Bilprovning and AB Svenska Spel. She previously held positions in Corporate Finance at Erik Penser Bankaktiebolag and as Investment Director at Nordstjernan AB.

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AB Svensk Exportkredit

Swedish Export Credit Corporation

Interim Report January-March 2018

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dated: April 24, 2018

AB Svensk Exportkredit
(Swedish Export Credit Corporation)
By:	/s/ Catrin Fransson
	Catrin Fransson, Chief Executive Officer

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AB Svensk Exportkredit Swedish Export Credit Corporation

Summary

Net interest revenues, quarterly

Operating profit, quarterly

After-tax return on equity, quarterly

Total capital ratio, quarterly

January-March 2018

(Compared to January-March 2017)

·Net interest revenues Skr 382 million (3M17: Skr 430 million)

·Operating profit Skr 180 million (3M17: Skr 257 million)

·Net profit Skr 136 million (3M17: Skr 196 million)

·New lending Skr 13.0 billion (3M17: Skr 17.5 billion)

·Basic and diluted earnings per share Skr 34 (3M17: Skr 49)

·After-tax return on equity 3.1 percent (3M17: 4.6 percent)

Equity and balances

(Compared to December 2017)

·Total capital ratio 22.3 percent (year-end 2017: 23.0 percent)

·Total assets Skr 284.1 billion (year-end 2017: Skr 264.4 billion)

·Loans, outstanding and undisbursed Skr 267.7 billion (year-end 2017: Skr 268.0 billion)

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Statement by the CEO

SEK is well-positioned to meet increased demand for export finance

Swedish exports continued to perform strongly in the first quarter of the year. According to Business Sweden’s Export Managers’ Index, the proportion of exporters expecting to meet strong market demand has risen significantly. However, this trend does vary between the different regions. An increased demand is expected for Western Europe and North America, while the index declined for Asia and Oceania.

The need for financing in connection with export businesses remained stable for both large and medium-sized enterprises. Healthy access to market finance impacted SEK’s new lending in the first quarter, which was down year-on-year and amounted to Skr 13.0 billion (3M17: Skr 17.5 billion).

We have established a sustainability forum at SEK comprised of representatives from various parts of the company as part of discharging our assignment to conduct sustainable financing. The forum will focus on UN’s global goals for sustainable development. The forum is tasked with contributing to sustainable urban development through lending, to Agenda 2030 via borrowing and increasing transparency of climate-related risks.

During the quarter, SEK has both increased and broadened its competence. On February 1, Madeleine Widaeus took up her post as Chief Information Officer (CIO), and joined the executive management team. Our lending operations have been strengthened by a number of new recruitments, mainly to the team that focuses on Medium-sized Companies.

Operating profit for the period was Skr 180 million (3M17: Skr 257 million). A stable profit from our lending operation was offset by a higher resolution fee, effects from a divested investment portfolio and unrealized losses in fair value. SEK has continued strong capitalization and healthy liquidity.

“Companies’ expectations of increased export demand are noticeable. SEK has both the skills and the preparedness necessary to meet their financing needs”

Catrin Fransson, CEO

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Operations

New lending, quarterly

SEK’s markets for new lending

Jan-Mar 2018

Many new clients

In the first quarter of 2018, efforts to solicit new clients were successful and resulted in business with many new clients from both large and medium-sized companies. Business with new clients included export credit transactions in Africa. There is healthy access to finance in the market, from both financial institutions and the capital markets. This impacted total new lending in the first quarter, which was down year-on-year and amounted to Skr 13.0 billion (3M17: Skr 17.5 billion).

New lending

Skr bn	Jan-Mar 2018		Jan-Mar 2017		Jan-Dec 2017
Lending to Swedish exporters1	4.6		7.3		21.6
Lending to exporters’ customers2	8.4		10.2		67.7
Total	13.0		17.5		89.3
CIRR loan as percentage of new financial transactions	8	%	3	%	41	%

1Of which Skr 0.0 billion (3M17: Skr 0.8 billion; year-end 2017: Skr 0.7 billion) had not been disbursed at period end.

2Of which Skr 1.3 billion (3M17: Skr 1.0 billion; year-end 2017: Skr 35.1 billion) had not been disbursed at period end.

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New borrowing, quarterly

Long-term borrowing

SEK’s markets for new borrowing

Jan-Mar 2018

Competitive borrowing

In the fourth quarter of 2017, an unusually high volume of Nikkei index-linked structured debt was redeemed as a consequence of the continued strong performance of the Japanese stock market, which led to a reduction in liquidity investments. Liquidity investment increased again in the first quarter of 2018, when SEK completed several public financing transactions, including a five-year, USD 1.25 billion benchmark bond at advantageous terms.

As a consequence of ongoing efforts to adapt to the new MiFID II regulations, SEK did not issue any structured debt in the Japanese Uridashi market in the first quarter. SEK continues to maintain high liquidity for new lending and remains well-prepared to meet the future financing needs of the Swedish export industry.

SEK’s borrowing

Skr bn	Jan-Mar 2018	Jan-Mar 2017	Jan-Dec 2017
New long-term borrowings	14.3	24.2	82.4
Outstanding senior debt	242.7	256.9	224.8
Repurchase and redemption of own debt	3.7	9.7	38.7

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Comments on the consolidated financial accounts

January-March 2018

Operating profit for the first three months amounted to Skr 180 million (3M17: Skr 257 million). Net profit amounted to Skr 136 million (3M17: Skr 196 million).

Net interest revenues

Net interest revenues amounted to Skr 382 million (3M17:

Skr 430 million), a decrease of 11 percent compared to the same period in the previous year. Net interest revenues were affected negatively by a higher resolution fee of Skr 70 million (3M17: Skr 49 million), which SEK is required to pay to a fund to support the recovery of credit institutions, effects from a divested investment portfolio, as well as by higher borrowing costs and lower average interest-bearing assets. In 2018, the resolution fee amounts to 0.125 percent (2017: 0.09 percent) of the calculation basis, which essentially corresponds to SEK’s debt-financed assets less the CIRR-loans. In 2019, the resolution fee will go back to 0.09 percent.

Skr bn, average	Jan-Mar 2018	Jan-Mar 2017	Change
Total loans	197.6	210.9	-6	%
Liquidity investments	61.8	70.8	-13	%
Interest-bearing assets	259.4	281.7	-8	%
Interest-bearing liabilities	235.8	257.2	-8	%

Net results of financial transactions

Net results of financial transactions amounted to Skr -59 million (3M17: Skr 6 million), mainly due to unrealized changes in fair value of assets in the liquidity portfolio and on derivatives.

Operating expenses

Skr mn	Jan-Mar 2018	Jan-Mar 2017	Change
Personnel expenses	-79	-79	—
Other administrative expenses	-56	-60	-7	%
Depreciation and impairment of non- financial assets	-8	-11	-27	%
Total operating expenses	-143	-150	-5	%

Operating expenses decreased somewhat compared to the same period in the previous year, due to decreased other administrative expenses and depreciation and impairment of non-financial assets. No provision was made for the individual

variable remuneration (3M17: Skr 3 million). Beginning in 2017, SEK introduced a system for individual variable remuneration for permanent employees with customer or business responsibility, with the exception of members of the executive management team. In 2018, the cost for this remuneration could amount to a maximum of Skr 12 million.

Net credit losses

Net credit losses amounted to Skr 5 million (3M17: Skr -23 million). Loss allowances as of March 31, 2018 amounted to Skr -135 million compared to Skr -137 million as of January 1, 2018, of which exposures in stage 3 amounted to Skr -64 million (January 1, 2018 Skr -66 million). The reserve decreased due to lower expected credit losses which was offset by negative currency exchange-rate effects. See Note 4.

Other comprehensive income

Other comprehensive income before tax amounted to Skr 54 million (3M17: Skr -33 million), mainly due to changed assessments of unrealized changes in fair value of credit spreads on SEK’s own debt. In accordance with IFRS 9 unrealized changes in fair value of credit spreads on SEK’s own debt is recognized in other comprehensive income under Items to be reclassified to operating profit.

Statement of Financial Position

Total assets and liquidity investments

Liquidity investments and outstanding loans increased compared to the end of 2017. Liquidity investments decreased during the fourth quarter of 2017 due to early redemption of structured debt related to the Nikkei Index and the strong performance of the Japanese stock market. In the first quarter of 2018, SEK issued senior bonds, which increased the liquidity investments.

Skr bn	March 31, 2018	December 31, 2017	Change
Total assets	284.1	264.4	7	%
Liquidity investments	67.9	55.7	22	%
Outstanding loans	200.1	195.1	3	%
of which loans in the CIRR-system	54.7	49.1	11	%

Total exposures amounted to Skr 339.4 billion on March 31, 2018 (year-end 2017: Skr 327.2 billion). SEK’s exposures to all types of counterparties have increased except to financial

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institutions which exposure is in line with year-end 2017. See Note 10.

Liabilities and equity

As of March 31, 2018, the aggregate volume of available funds and shareholders’ equity exceeded the aggregate volume of loans outstanding and loans committed at all maturities. Accordingly, SEK considers all of its outstanding commitments to be covered through maturity.

In 2018, SEK has a credit facility in place with the Swedish National Debt Office of up to Skr 125 billion. To date, SEK has not utilized the credit facility. The credit facility can only be utilized for loans covered by the officially supported export credits system (CIRR).

Capital adequacy

SEK maintains strong capitalization, with a total capital ratio of 22.3 percent (year-end 2017: 23.0 percent) and healthy liquidity. The change in total capital ratio is mainly due to the increased liquidity investments during the first quarter of 2018.

Percent	March 31, 2018	December 31, 2017
Common Equity Tier 1 capital ratio	19.9	20.6
Tier 1 capital ratio	19.9	20.6
Total capital ratio	22.3	23.0
Leverage ratio	5.6	5.9
Liquidity coverage ratio (LCR)	241	169
Net stable funding ratio (NSFR)	147	140

Rating

	Skr	Foreign currency
Moody’s	Aa1/Stable	Aa1/Stable
Standard & Poor’s	AA+/Stable	AA+/Stable

Other events

The Annual General Meeting is held on April 24, 2018. At the Annual General Meeting Eva Nilsagård and Hélène Westholm were elected as new Board members of SEK to replace Lotta Mellström and Susanne Lithander, who each declined re-election after seven years and three years of service, respectively. The other members of the Board and SEK’s external auditors, Öhrlings PricewaterhouseCooper AB (PwC) were re-elected.

Also at the Annual General Meeting the Board of Directors’ proposal of the payment of a dividend of Skr 232 million

(2016: Skr 234 million) was approved. The dividend corresponds to SEK’s dividend policy of 30 percent of the profit for the year.

Risk factors and the macro environment

Various risks arise as part of SEK’s operations. SEK’s primary exposure is to credit risk, but the company is also exposed to market, liquidity, refinancing, operational and sustainability risks. For a more detailed description of SEK’s risk factors, refer to the Risk and Capital Management section in SEK’s 2017 Annual Report.

The annualized rate of Swedish GDP growth was 3.3 percent in the fourth quarter of 2017 and the unemployment rate was 5.9 percent as of February 2018.

The consumer price index rose 1.6 percent on an annualized basis as of February 2018 and the repo rate remained fixed at negative 0.5 percent. According to Statistics Sweden (SCB), in the fourth quarter of 2017, Swedish exports grew 2.4 percent compared with the third quarter of 2017. During the fourth quarter of 2017, exports of goods increased 3.2 percent and exports of services rose 0.7 percent.

The Swedish economy remains strong. The threat of an international trade war increased in March 2018 following the US decision to impose tariffs on steel and aluminum imports. However, many countries have received temporary exemptions, including countries in the European Union. The US President has also indicated an intention to introduce tariffs on Chinese goods. In response, China has proposed tariffs on a number of US goods, on a much smaller scale for the time being, but this trend could impact all global trade moving forward. Whether or not this leads to permanent exemptions, these events have increased uncertainty and volatility in the markets. Otherwise, the strong economy coincided with an upswing in global trade at the end of 2017, and the trend continued through the beginning of 2018.

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Financial targets

Profitability target	A return on equity of at least 6 percent over time.
Dividend policy	Payment of an ordinary dividend of 30 percent of the profit for the year.
Capital target	Under normal conditions, SEK’s total capital ratio is to exceed the Swedish FSA’s total capital adequacy requirement by 1 to 3 percentage points. Currently, the capital target means that the total capital ratio should amount to 17-19 percent.

Key performance indicators (Unaudited except for Jan-Dec 2017)

Skr mn (if not otherwise indicated)	Jan–Mar 2018		Oct-Dec 2017		Jan–Mar 2017		Jan-Dec 2017
New lending	13,033		11,517		17,540		89,305
of which to Swedish exporters	4,633		6,436		7,315		21,643
of which to exporters’ customers	8,400		5,081		10,225		67,662
CIRR-loans as a percentage of new lending	8	%	11	%	3	%	41	%
Loans, outstanding and undisbursed	267,670		268,034		263,065		268,034
New long-term borrowings	14,294		11,819		24,202		82,441
Outstanding senior debt	242,653		224,833		256,938		224,833
After-tax return on equity	3.1	%	6.0	%	4.6	%	4.5	%
Common Equity Tier 1 capital ratio	19.9	%	20.6	%	19.0	%	20.6	%
Tier 1 capital ratio	19.9	%	20.6	%	19.0	%	20.6	%
Total capital ratio	22.3	%	23.0	%	21.5	%	23.0	%
Leverage ratio	5.6	%	5.9	%	5.4	%	5.9	%
Liquidity coverage ratio (LCR)	241	%	169	%	438	%	169	%
Net stable funding ratio (NSFR)	147	%	140	%	137	%	140	%

See definitions on page 29.

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME IN SUMMARY

(Unaudited except for Jan-Dec 2017)

Skr mn	Note	Jan–Mar 2018	Oct-Dec 2017	Jan–Mar 2017	Jan-Dec 2017
Interest revenues		1,056	1,019	886	3,896
Interest expenses		-674	-614	-456	-2,213
Net interest revenues	2	382	405	430	1,683
Net fee and commission expense		-5	-7	-6	-28
Net results of financial transactions	3	-59	41	6	-102
Total operating income		318	439	430	1,553
Personnel expenses		-79	-85	-79	-320
Other administrative expenses		-56	-61	-60	-232
Depreciation and impairment of non-financial assets		-8	-10	-11	-45
Total operating expenses		-143	-156	-150	-597
Operating profit before net credit losses		175	283	280	956
Net credit losses	4	5	58	-23	51
Operating profit		180	341	257	1,007
Tax expenses		-44	-78	-61	-235
Net profit1		136	263	196	772
Other comprehensive income related to:
Items to be reclassified to profit or loss
Available-for-sale securities2		—	-5	-8	-33
Derivatives in cash flow hedges2		-6	-12	-29	-91
Tax on items to be reclassified to profit or loss		1	3	8	27
Net items to be reclassified to profit or loss		-5	-14	-29	-97
Items not to be reclassified to profit or loss
Own credit risk2		71	—	—	—
Revaluation of defined benefit plans2		-11	-9	4	-4
Tax on items not to be reclassified to profit or loss		-13	2	-1	1
Net items not to be reclassified to profit or loss		47	-7	3	-3
Total other comprehensive income		42	-21	-26	-100
Total comprehensive income1		178	242	170	672

1The entire profit is attributable to the shareholder of the Parent Company.

2See the Consolidated Statement of Changes in Equity.

Skr
Basic and diluted earnings per share3	34	66	49	193

3Net profit divided by average number of shares, which amounts to 3,990,000 for each period.

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CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Unaudited except for December 31, 2017)

Skr mn	Note	March 31, 2018	December 31, 2017
Assets
Cash and cash equivalents	5	3,667	1,231
Treasuries/government bonds	5	4,406	4,382
Other interest-bearing securities except loans	5	50,012	39,807
Loans in the form of interest-bearing securities	4, 5	41,059	41,125
Loans to credit institutions	4, 5	21,698	23,198
Loans to the public	4, 5	147,129	141,111
Derivatives	5, 6	10,117	7,803
Property, plant, equipment and intangible assets		87	88
Other assets		3,642	3,556
Prepaid expenses and accrued revenues		2,260	2,091
Total assets		284,077	264,392
Liabilities and equity
Borrowing from credit institutions	5	2,783	2,317
Senior securities issued	5	239,870	222,516
Derivatives	5, 6	16,915	16,480
Other liabilities		1,607	826
Accrued expenses and prepaid revenues		2,462	2,063
Deferred tax liabilities		532	531
Provisions		59	45
Subordinated securities issued	5	2,083	2,040
Total liabilities		266,311	246,818
Share capital		3,990	3,990
Reserves		-346	30
Retained earnings		14,122	13,554
Total equity		17,766	17,574
Total liabilities and equity		284,077	264,392

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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY IN SUMMARY

(Unaudited except for Jan-Dec 2017)

			Reserves
Skr mn	Equity	Share capital	Hedge reserve	Fair value reserve	Own credit risk	Defined benefit plans	Retained earnings
Opening balance of equity January 1, 2017	17,136	3,990	96	35		-1	13,016
Net profit Jan-Mar, 2017	196						196
Other comprehensive income Jan-Mar, 2017	-26		-23	-6		3
Total comprehensive income Jan-Mar, 2017	170		-23	-6		3	196
Dividend	-234						-234
Closing balance of equity March 31, 20171	17,072	3,990	73	29		2	12,978
Opening balance of equity January 1, 2017	17,136	3,990	96	35		-1	13,016
Net profit Jan-Dec, 2017	772						772
Other comprehensive income Jan-Dec, 2017	-100		-71	-26		-3
Total comprehensive income Jan-Dec, 2017	672		-71	-26		-3	772
Dividend	-234						-234
Closing balance of equity December 31, 20171	17,574	3,990	25	9		-4	13,554
Effects of the implementation of IFRS 92	14			-9	-409		432
Adjusted opening balance of equity January 1, 2018	17,588	3,990	25	—	-409	-4	13,986
Net profit Jan-Mar, 2018	136						136
Other comprehensive income Jan-Mar, 2018	42		-5		56	-9
Total comprehensive income Jan-Mar, 2018	178		-5		56	-9	136
Closing balance of equity March 31, 20181	17,766	3,990	20	—	-353	-13	14,122

1The entire equity is attributable to the shareholder of the Parent Company.

2The effects of IFRS 9 differ from the effects presented in Note 1b in the Annual Report. The difference is related to the calculation of accumulated gains and losses that arise from changes in SEK’s own credit risk, and do not have any net effect on equity.

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STATEMENT OF CASH FLOWS IN THE CONSOLIDATED GROUP IN SUMMARY

(Unaudited except for Jan-Dec 2017)

Skr mn	Jan-Mar 2018	Jan-Mar 2017	Jan-Dec 2017
Operating activities
Operating profit	180	257	1,007
Adjustments for non-cash items in operating profit	378	50	274
Income tax paid	-92	-90	-365
Changes in assets and liabilities from operating activities	-8,081	712	8,534
Cash flow from operating activities	-7,615	929	9,450
Investing activities
Capital expenditures	-7	—	-10
Cash flow from investing activities	-7	—	-10
Financing activities
Change in senior debt	6,861	5,482	-9,919
Derivatives, net	3,053	-1,465	-4,931
Dividend paid	—	-234	-234
Cash flow from financing activities	9,914	3,783	-15,084
Cash flow for the period	2,292	4,712	-5,644
Cash and cash equivalents at beginning of the period	1,231	7,054	7,054
Cash flow for the period	2,292	4,712	-5,644
Exchange-rate differences on cash and cash equivalents	144	-133	-179
Cash and cash equivalents at end of the period1	3,667	11,633	1,231

1Cash and cash equivalents include, in this context, cash at banks that can be immediately converted into cash and short-term deposits for which the time to maturity does not exceed three months from trade date.

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NOTES

1.	Applied accounting principles and impacts from changes in accounting principles
2.	Net interest revenues
3.	Net results of financial transactions
4.	Impairments
5.	Financial assets and liabilities at fair value
6.	Derivatives
7.	CIRR-system
8.	Pledged assets and contingent liabilities
9.	Capital adequacy
10.	Exposures
11.	Transactions with related parties
12.	Events after the reporting period

All amounts are in Skr million, unless otherwise indicated. All figures concern the Consolidated Group, unless otherwise indicated.

Note 1. Applied accounting principles and impacts from changes in accounting principles

This condensed interim report is presented in accordance with International Accounting Standard (IAS) 34, Interim Financial Reporting. The Group’s consolidated accounts have been prepared in accordance with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) together with the interpretations from IFRS Interpretations Committee (IFRS IC). The IFRS standards applied by SEK are all endorsed by the European Union (EU). The accounting also follows the additional standards imposed by the Annual Accounts Act for Credit Institutions and Securities Companies (1995:1559) (ÅRKL) and the regulation and general guidelines issued by the Swedish Financial Supervisory Authority, “Annual Reports in Credit Institutions and Securities Companies” (FFFS 2008:25). In addition to this, the supplementary accounting rules for groups (RFR 1) issued by the Swedish Financial Reporting Board have been applied. SEK also follows the state’s general guidelines regarding external reporting in accordance with its corporate governance policy and guidelines for state-owned companies.

The accounting policies, methods of computation and presentation of the Consolidated Groupare, in all material aspects, the same as those used for the 2017, annual financial statements except for the application of the new and amended standards from IASB that entered into force beginning January 1, 2018. The interim report does not include all the disclosures required in the annual financial statements, and should be read in conjunction with the company’s annual financial statements as of December 31, 2017.

As of January 1, 2018, SEK began applying IFRS 9 Financial Instruments, which replaced the previous regulatory framework

IAS 39 Financial Instruments: Recognition and Measurement. The impact of the transition to IFRS 9 on SEK is summarized as follows:

·As of January 1, 2018, SEK assessed its liquidity investments, which were previously classified as available-for-sale assets. The conclusion of the assessment was that liquidity investments are included in a portfolio where the business model entails measurement at fair value and, accordingly, they are recognized at fair value through profit or loss (FVTPL). Liquidity investments that were previously classified at fair value pursuant to the fair value option (FVO) are also classified at FVTPL. Certain fixed-rate liquidity investments were previously subject to hedge accounting and, as of January 1, 2018, these hedge accounting relationships have been terminated since liquidity investments are now measured at FVTPL.

·SEK’s lending meets the conditions for the solely payments of principal and interest (SPPI) tests and uses a business model that aims to collect contractual cash flows, which means SEK’s lending is measured at amortized cost.

·Gains and losses that arise from changes in SEK’s own credit risk on liabilities designated at fair value are recognized in the reserve for own credit risk under Other comprehensive income and are not reclassified to profit or loss in the financial statements of the Group.

·The principle applied for the impairment of exposures has changed from an approach based on incurred credit loss events under IAS 39 to an approach based on expected credit losses (ECL). IFRS 9 requires that all assets measured at amortized cost, including credit commitments and financial guarantees, are to be tested for any impairment, which differs from IAS 39, where collective provisions are not made for off-balance-sheet items or available-for-sale financial assets. Loss allowances (ECL) is expected to mean lower initial impairment amounts but higher volatility over time.

·As of December 31, 2017, the transition to IFRS 9 had a total impact on the Group’s equity of Skr 14 million. IFRS 9 has no material impact on the Group’s capital adequacy

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and large exposure ratios. SEK is not restating comparative periods. Comparative information for 2017 is reported pursuant to IAS 39 and is not comparable with the information presented for 2018 under IRS 9. Differences arising from the introduction of IFRS 9 are recognized directly in retained earnings as of January 1, 2018. Beginning January 1, 2018, SEK has also begun applying IFRS 9 for hedge accounting. Additional information on new accounting policies associated with IFRS 9 and quantitative transition information can be found in Note 1b to the Consolidated Financial Statements in SEK’s 2017 Annual Report.

As of January 1, 2018, SEK began applying the new standard IFRS 15 Revenue from Contracts with Customers. IFRS 15 is not applicable to financial instruments or leasing agreements. IFRS 15 had a minor effect on SEK’s financial reporting during the first quarter of 2018.

Future changes to IFRS

In January 2016, the IASB issued the new accounting standard IFRS 16 Leases, with changes for lessees. All leases (with the exception of short-term and low-value leases) are to be recognized as right-of-use assets subject to depreciation with corresponding liabilities in the lessee’s balance sheet, and the lease payments recognized as repayments and interest expenses. Lessor accounting remains essentially unchanged. Additional disclosures are also required. SEK’s preliminary assessment is that the standard will primarily affect SEK’s recognition of operational leases for rental premises, which is not expected to have any material impact on SEK’s financial statements or capital adequacy or large exposure ratios. The standard will be applicable beginning January 1, 2019. There are no other IFRS or IFRS IC interpretations that are not yet applicable that are expected to have a material impact on SEK’s financial statements, capital adequacy or large exposure ratios.

Note 2. Net interest revenues

Skr mn	Jan–Mar 2018	Oct-Dec 2017	Jan–Mar 2017	Jan-Dec 2017
Interest revenues
Loans to credit institutions	242	222	162	789
Loans to the public	572	576	536	2,265
Loans in the form of interest-bearing securities	159	146	165	629
Interest-bearing securities excluding loans in the form of interest-bearing securities	124	125	106	458
Derivatives	-74	-81	-117	-372
Administrative remuneration CIRR-system1	32	30	32	125
Other assets	1	1	2	2
Total interest revenues2	1,056	1,019	886	3,896
Interest expenses
Interest expenses	-604	-566	-407	-2,020
Resolution fee	-70	-48	-49	-193
Total interest expenses	-674	-614	-456	-2,213
Net interest revenues	382	405	430	1,683

1Including administrative remuneration for concessionary loans of Skr 0 million during the period January-March 2018 (3M17:Skr 1 million).

2Interest revenues calculated using the effective interest method amounted to Skr 888 million during the period January-March 2018 (3M17: Skr 746 million).

Note 3. Net results of financial transactions

Skr mn	Jan–Mar 2018	Oct-Dec 2017	Jan–Mar 2017	Jan-Dec 2017
Derecognition of financial instruments not measured at fair value through profit or loss	0	-13	0	-1
Financial assets or liabilities at fair value through profit or loss	-39	102	-13	-48
Financial instruments under fair-value hedge accounting1	-21	-46	20	-53
Currency exchange-rate effects on all assets and liabilities excl. currency exchange-rate effects related to revaluation at fair value	1	-2	-1	0
Total net results of financial transactions	-59	41	6	-102

1SEK classifies IFRS 9 liquidity investments as financial assets valued at fair value, which means that unrealized gains and losses are also recognized in net results of financial transactions. Due to IFRS 9 market value changes, arising from changes in credit spread on SEK’s own debt, are not reported in net results of financial transactions, but in other comprehensive income.

14

SEK’s general business model is to hold financial instruments measured at fair value to maturity. The net market value changes are mainly attributable to changes in credit spread on own debt, which, due to IFRS 9, are reported in other comprehensive income, and base spreads, which is reported in net results of financial transactions. The changes could be significant in a single reporting period, but will not affect earnings over time since the lifetime cumulative changes in the instrument’s market value will net to zero if it is held to maturity and is a performing instrument. When financial instruments are not held to maturity, realized gains and losses can occur, as in

cases where SEK repurchases its own debt, or where lending is repaid early and the related hedging instruments are terminated prematurely. The effects reported in the following line items of net results of financial transactions in the table above include realized as well as unrealized changes in fair value: “Derecognition of financial instruments not measured at fair value through profit or loss”, “Financial assets or liabilities at fair value through profit or loss” and “Financial instruments under fair-value hedge accounting”. “Financial assets or liabilities at fair value through profit or loss” and “Financial instruments under fair-value hedge accounting”.

Note 4. Impairments

Skr mn	Jan–Mar 2018	Oct-Dec 2017	Jan–Mar 2017	Jan-Dec 2017
Impairment of financial assets	5	-5	-27	-59
Reversal of previous write-downs	—	63	4	110
Net impairment and reversals	5	58	-23	51
Established losses	—	—	-47	-47
Reserves applied to cover established credit losses	—	—	47	46
Recovered credit losses	0	0	—	1
Net credit losses	5	58	-23	51
Loss Allowance
Opening balance	-155	-212	-254	-254
Adjustments to opening balance due to IFRS 91	18
Reserves applied to cover established credit losses	—	—	47	46
Net impairment and reversals	5	58	-23	51
Exchange-rate differences	-3	-1	0	2
Closing balance	-135	-155	-230	-155

1The transition to IFRS 9 as of January 1, 2018 resulted in a positive effect that amounted to Skr 18 million reported directly in retained earnings.

Loss Allowance, January-March 2018

	Stage 1	Stage 2	Stage 3
Skr mn	Individually measured allowances			Total
Opening balance	-38	-33	-66	-137
Increases due to origination and acquisition	-4	0	—	-4
Net remeasurement of loss allowance	0	4	3	7
Transfer to stage 1	0	0	—	0
Transfer to stage 2	0	0	—	0
Transfer to stage 3	—	—	—	—
Decreases due to derecognition	1	1	—	2
Decrease in allowance account due to write-offs	—	—	—	—
Exchange-rate differences	-1	-1	-1	-3
Closing balance	-42	-29	-64	-135
of which lending	-42	-28	-62	-132
of which off balance	0	-1	-2	-3

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Note 5. Financial assets and liabilities at fair value

	March 31, 2018
Skr mn	Book value	Fair value	Surplus value (+)/ Deficit value (–)
Cash and cash equivalents	3,667	3,667	—
Treasuries/governments bonds	4,406	4,406	—
Other interest-bearing securities except loans	50,012	50,012	—
Loans in the form of interest-bearing securities	41,059	42,160	1,101
Loans to credit institutions	21,698	21,938	240
Loans to the public	147,129	147,814	685
Derivatives	10,117	10,117	—
Total financial assets	278,088	280,114	2,026
Borrowing from credit institutions	2,783	2,783	—
Senior securities issued	239,870	241,288	1,418
Derivatives	16,915	16,915	—
Subordinated securities issued	2,083	2,105	22
Total financial liabilities	261,651	263,091	1,440

	December 31, 2017
Skr mn	Book value	Fair value	Surplus value (+)/ Deficit value (–)
Cash and cash equivalents	1,231	1,231	—
Treasuries/governments bonds	4,382	4,382	—
Other interest-bearing securities except loans	39,807	39,807	—
Loans in the form of interest-bearing securities	41,125	42,352	1,227
Loans to credit institutions	23,198	23,451	253
Loans to the public	141,111	144,935	3,824
Derivatives	7,803	7,803	—
Total financial assets	258,657	263,961	5,304
Borrowing from credit institutions	2,317	2,317	—
Senior securities issued	222,516	223,465	949
Derivatives	16,480	16,480	—
Subordinated securities issued	2,040	2,047	7
Total financial liabilities	243,353	244,309	956

Determination of fair value

The determination of fair value is described in the Annual Report for 2017, see Note 1a (h) (viii) Principles for determination of fair value of financial instruments and (ix) Determination of fair value of certain types of financial instruments.

Financial assets in fair value hierarchy

	Financial assets at fair value through profit or loss				Available-for-sale under IAS 391
Skr mn	Level 1	Level 2	Level 3	Total	Level 1	Level 2	Level 3	Total
Treasuries/governments bonds	—	4,406	—	4,406
Other interest-bearing securities except loans	—	50,012	—	50,012
Loans in the form of interest-bearing securities	—	—	—	—
Loans to credit institutions	—	—	—	—
Loans to the public	—	—	—	—
Derivatives	—	7,662	2,455	10,117
Total, March 31, 2018	—	62,080	2,455	64,535
Total, December 31, 2017	—	5,942	1,974	7,916	4,382	39,694	—	44,076

1 Due to the transition to IFRS 9, IAS 39 is no longer applicable, and the relevant available-for-sale data are now reported under "Financial assets at fair value through profit or loss" in the adjacent column.

16

Financial liabilities in fair value hierarchy

	Financial liabilities at fair value through profit or loss
Skr mn	Level 1	Level 2	Level 3	Total
Senior securities issued	—	20,715	40,572	61,287
Derivatives	—	13,884	3,031	16,915
Subordinated securities issued	—	—	—	—
Total, March 31, 2018	—	34,599	43,603	78,202
Total, December 31, 2017	—	34,086	45,815	79,901

There were no transfers made between levels during the period January-March 2018 (year-end 2017: Skr - million).

Financial assets and liabilities at fair value in Level 3, March 31, 2018

Skr mn	January 1, 2018	Purchases	Settlements & sales	Transfers to Level 3	Transfers from Level 3	Gains (+) and losses (–) through profit or loss1	Gains (+) and losses (–) in Other comprehensive income	Exchange- rate differences	March 31, 2018
Other interest-bearing securities except loans	—	—	—	—	—	—	—	—	—
Senior securities issued	-42,995	—	3,857	—	—	1,382	53	-2,869	-40,572
Derivatives, net	-846	—	-13	—	—	-1,249	—	1,532	-576
Net assets and liabilities, 2018	-43,841	—	3,844	—	—	133	53	-1,337	-41,148

Financial assets and liabilities at fair value in Level 3, December 31, 2017

						Gains (+)
						and losses
					Transfers	(–) through	Exchange-
	January 1,		Settlements	Transfers	from	profit	rate	December 31,
Skr mn	2017	Purchases	& sales	to Level 3	Level 3	or loss1	differences	2017
Other interest-bearing securities except loans	257	—	-250	—	—	-6	-1	—
Senior securities issued	-48,217	-19,077	24,627	—	—	1,044	-1,372	-42,995
Derivatives, net	-2,404	3	-4,342	—	—	-1,202	7,099	-846
Net assets and liabilities, 2017	-50,364	-19,074	20,035	—	—	-164	5,726	-43,841

1Gains and losses through profit or loss, including the impact of exchange-rates, is reported as interest net revenue and results of financial transactions. The unrealized fair value changes for assets and liabilities, including the impact of exchange-rates, held as of March 31, 2018, amounted to a Skr 139 million gain (year-end 2017: Skr 768 million loss) and are reported as net results of financial transactions.

Uncertainty of valuation of Level 3 instruments

As the estimation of the parameters included in the models to calculate the market value of Level 3 instruments is associated with subjectivity and uncertainty, SEK has, in accordance with IFRS 13, conducted an analysis of the difference in fair value of Level 3 instruments using other established parameter values. Option models and discounted cash flows are used to value the Level 3 instruments. For Level 3 instruments with a longer duration where extrapolated discount curves are used, a sensitivity analysis has been conducted with regards to the interest. The revaluation of the portfolio is made using an interest rate shift of +/– 10 basis points. For the Level 3 instruments that are significantly affected by different types of correlations, which are not based on observable market data, a revaluation has been made by shifting the correlations. The basis for this sensitivity analysis is therefore the revaluation of the relevant part of the portfolio, where the correlations have been

adjusted by +/– 10 percentage points. After the revaluation is performed, the max/min value for each transaction is identified. For Level 3 instruments that are significantly affected by non-observable market data, such as SEK’s own creditworthiness, a revaluation has been made by shifting the credit curve. The revaluation is made by shifting the credit spreads by +/– 10 basis points, which has been assessed as a reasonable change in SEK’s credit spread. The analysis shows the impact of the non-observable market data on the market value. In addition, the market value will be affected by observable market data.

The result of the analysis corresponds with SEK’s business model where issued securities are linked with a matched hedging derivative. The underlying market data is used to evaluate the issued security as well as to evaluate the fair value in the derivative. This means that a change in fair value of the issued security, excluding SEK’s own credit spread, is offset by an equally large change in fair value in the derivative.

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Sensitivity analysis — level 3 assets and liabilities

	March 31, 2018
Assets and liabilities Skr mn	Fair Value	Unobservable input	Range of estimates for unobservable input1	Valuation method	Sensitivity max	Sensitivity min
Interest rate	0	Credit spreads	10BP - (10BP)	Discounted cash flow	0	0
Sum other interest-bearing securities except loans	0				0	0
Equity	2	Correlation	0.76 - (0.02)	Option Model	1	-1
Interest rate	959	Correlation	0.22 - (0.21)	Option Model	-93	91
FX	-1,364	Correlation	0.91 - (0.82)	Option Model	27	-23
Other	-173	Correlation	0.63 - (0.05)	Option Model	1	0
Sum derivatives, net	-576				-64	67
Equity	-706	Correlation	0.76 - (0.02)	Option Model	-1	1
				Discounted cash
		Credit spreads	10BP - (10BP)	flow	10	-10
Interest rate	-39,723	Correlation	0.22 - (0.21)	Option Model	96	-93
				Discounted cash
		Credit spreads	10BP - (10BP)	flow	106	-103
FX	-32	Correlation	0.91 - (0.82)	Option Model	-29	24
				Discounted cash
		Credit spreads	10BP - (10BP)	flow	101	-101
Other	-111	Correlation	0.63 - (0.05)	Option Model	-1	0
				Discounted cash
		Credit spreads	10BP - (10BP)	flow	3	-3
Sum senior securities issued	-40,572				285	-285
Total effect on total comprehensive income2
					221	-218
Other interest-bearing securities except loans, December 31, 2017	0				0	0
Derivatives, net, December 31, 2017	-846				-167	155
Senior securities issued, December 31, 2017	-42,995				381	-366
Total effect on total comprehensive income, December 31, 20172					214	-211

1Represents the range of correlations that SEK has determined market participants would use when pricing the instruments. The structures are represented both in the security and the derivative hedging the bond. The sensitivity analysis is based on a shift in the interval for correlation between 0.1 and -0.1. The correlation is expressed as a value between 1 and -1, where 0 indicates no relationship, 1 indicates maximum positive relationship and -1 indicates maximum negative relationship. The maximum correlation in the range of unobservable inputs can thus be from 1 to -1. The table presents the scenario analysis of the effect on Level 3 instruments, with maximum positive and negative changes.

2Of the total impact on total comprehensive income, the sensitivity effect of SEK’s own credit spread was Skr 218 million (year-end 2017: Skr 211 million) under a maximum scenario and Skr -216 million (year-end 2017: Skr -208 million) under a minimum scenario.

Fair value related to credit risk

	Fair value originating from credit risk (- liabilities increase/ + liabilities decrease)		The period’s change in fair value originating from credit risk (+ income/ - loss)
Skr mn	March 31, 2018	December 31, 2017	Jan–Mar 2018	Jan–Mar 2017
CVA/DVA, net1	-13	-8	-5	3
OCA2	-453	-578	71	-89

1Credit value adjustment (CVA) and Debt value adjustment (DVA) reflects how the counterparties’ credit risk as well as SEK’s own credit rating affects the fair value of derivatives.

2Own credit adjustment (OCA) reflects how the changes in SEK’s credit rating affects the fair value of financial liabilities measured at fair value through profit and loss. Changes in creditworthiness is, as of January 1, 2018 presented in other comprehensive income according to IFRS 9. The effect of IFRS 9 differs from the closing balance as of December 31, 2017. The difference is related to the calculation of accumulated gains and losses that arise from changes in SEK’s own credit risk, and do not have any net effect on equity.

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Note 6. Derivatives

Derivatives by categories

	March 31, 2018			December 31, 2017
Skr mn	Assets Fair value	Liabilities Fair value	Nominal amounts	Assets Fair value	Liabilities Fair value	Nominal amounts
Interest rate-related contracts	4,613	10,312	274,855	3,781	9,132	245,788
Currency-related contracts	5,157	6,103	146,078	3,772	6,879	139,614
Equity-related contracts	347	327	9,257	250	303	13,246
Contracts related to commodities, credit risk, etc.	—	173	-2,201	—	166	-1,183
Total derivatives	10,117	16,915	427,989	7,803	16,480	397,465

In accordance with SEK’s policies with regard to counterparty, interest rate, currency exchange, and other exposures, SEK uses, and is a party to, different kinds of derivative instruments, mostly various interest rate-related and currency

exchange-related contracts primarily to hedge risk exposure inherent in financial assets and liabilities. These contracts are carried at fair value in the statements of financial position on a contract-by-contract basis.

Note 7. CIRR-system

Pursuant to the company’s assignment as stated in its owner instruction issued by the Swedish government, SEK administers credit granting in the Swedish system for officially supported export credits (CIRR-system). SEK receives compensation from the Swedish government in the form of an administrative fee, which is calculated based on the principal amount outstanding.

All assets and liabilities related to the CIRR-system are included in the consolidated statement of financial position and in the Parent Company’s balance sheet since SEK bears the credit risk for the lending and acts as the counterparty for lending and borrowing. Unrealized revaluation effects on derivatives related to the CIRR-system are recognized on a net basis under Other assets.

SEK has determined that the CIRR-system should be considered an assignment whereby SEK acts as an agent on behalf of the Swedish government, rather than being the principal in individual transactions. Accordingly, interest income, interest expense and other costs pertaining to CIRR-system assets and liabilities are not recognized in SEK’s statement of comprehensive income.

The administrative compensation received by SEK from the Swedish government is recognized as part of interest income

in SEK’s statement of comprehensive income since the commission received in compensation is equivalent to interest. Any income for SEK that arises from its credit arranger role is recognized in SEK’s statement of comprehensive income under net interest revenues. Net credit losses are shown in the statement of comprehensive income for SEK as SEK bears the credit risk for the lending. Refer also to Note 1a (f) in the 2017 Annual Report.

The administrative fee paid by the state to SEK as compensation is recognized in the CIRR-system as administrative compensation to SEK. Arrangement fees to SEK are recognized together with other arrangement fees as interest expenses. Refer to the following tables.

In addition to the CIRR-system, SEK administers the Swedish government’s previous concessionary credit program according to the same principles as the CIRR-system. No new lending is being offered under the concessionary credit program. As of March 31, 2018, concessionary loans outstanding amounted to Skr 762 million (year-end 2017: Skr 754 million) and operating profit amounted to Skr -10 million for the first quarter of 2018 (3M17: Skr -13 million). The administrative compensation to SEK amounted to Skr 0 million (3M17: Skr 1 million).

Statement of Comprehensive Income for the CIRR-system

Skr mn	Jan–Mar 2018	Oct-Dec 2017	Jan–Mar 2017	Jan-Dec 2017
Interest revenues	338	353	332	1,343
Interest expenses	-316	-309	-264	-1,115
Net interest revenues	22	44	68	228
Interest compensation	0	0	2	26
Exchange-rate differences	2	0	-1	-6
Profit before compensation to SEK	24	44	69	248
Administrative remuneration to SEK	-32	-30	-32	-123
Operating profit CIRR-system	-8	14	37	125
Reimbursement to (–) / from (+) the State	8	-14	-37	-125

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Statement of Financial Position for the CIRR-system (included in SEK’s statement of financial position)

Skr mn	March 31, 2018	December 31, 2017
Cash and cash equivalents	-57	10
Loans	54,725	49,124
Derivatives	1,317	522
Other assets	2,950	3,472
Prepaid expenses and accrued revenues	370	364
Total assets	59,305	53,492
Liabilities	54,839	49,252
Derivatives	4,069	3,789
Accrued expenses and prepaid revenues	397	451
Total liabilities	59,305	53,492
Commitments
Committed undisbursed loans	64,295	69,166
Binding offers	642	628

Note 8. Pledged assets and contingent liabilities

Skr mn	March 31, 2018	December 31, 2017
Collateral provided
Cash collateral under the security agreements for derivative contracts	9,828	10,314
Contingent assets1
Guarantee commitments	3,225	3,360
Commitments1
Committed undisbursed loans	67,612	72,914
Binding offers	1,239	1,211

1For expected credit losses in guarantee commitments, committed undisbursed loans and binding offers see Note 4.

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Note 9. Capital adequacy

Capital adequacy analysis

	March 31, 2018		December 31, 2017
Capital ratios excl. of buffer requirements1
Common Equity Tier 1 capital ratio	19.9	%	20.6	%
Tier 1 capital ratio	19.9	%	20.6	%
Total capital ratio	22.3	%	23.0	%
Institution-specific Common Equity Tier 1 capital requirement incl. buffers2	8.5	%	8.4	%
of which minimum Common Equity Tier 1 requirement	4.5	%	4.5	%
of which Capital conservation buffer	2.5	%	2.5	%
of which Countercyclical Buffer	1.5	%	1.4	%
of which Systemic Risk Buffer	—		—
Common Equity Tier 1 capital available to meet buffers3	13.9	%	14.6	%
Total capital ratio according to Basel I floor	n.a.	4	21.9	%

1Capital ratios excl. of buffer requirements are the quotients of the relevant capital measure and the total risk exposure amount. The minimum requirements according to CRR (Regulation (EU) No 575/2013 of the European Parliament and of the Council of June 26, 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012) have fully come into force in Sweden without regard to the transitional period. The minimum requirements are 4.5 percent, 6.0 percent and 8.0 percent related to Common Equity Tier 1 capital, Tier 1 capital and total Own Funds respectively.

2Expressed as a percentage of total risk exposure amount.

3Common Equity Tier 1 capital ratio as reported less minimum requirement of 4.5 percent (excluding buffer requirements) and less 1.5 percent, consisting of Common Equity Tier 1 used to meet the Tier 1 requirements, since SEK does not have any Additional Tier 1 capital.

4  This is no longer required to be reported.  See "Transitional rules" in this Note 9.

For further information on capital adequacy and risks, see the section entitled “Risk and capital management” in SEK’s Annual Report for 2017.

Own funds — Adjusting items

Skr mn	March 31, 2018		December 31, 2017
Share capital	3,990		3,990
Retained earnings	13,754		12,782
Accumulated other comprehensive income and other reserves	-346		30
Independently reviewed profit net of any foreseeable charge or dividend	95		540
Common Equity Tier 1 (CET1) capital before regulatory adjustments	17,493		17,342
Additional value adjustments due to prudent valuation	-484		-396
Intangible assets	-60		-66
Fair value reserves related to gains or losses on cash flow hedges	-20		-25
Gains or losses on liabilities valued at fair value resulting from changes in own credit standing	348		446
Negative amounts resulting from the calculation of expected loss amounts	-110		-65
Total regulatory adjustments to Common Equity Tier 1 capital	-326		-106
Total Common Equity Tier 1 capital	17,167		17,236
Additional Tier 1 capital	—		—
Total Tier 1 capital	17,167		17,236
Tier 2-eligible subordinated debt	2,096		2,049
Credit risk adjustments1	—		—
Total Tier 2 capital	2,096		2,049
Total Own funds	19,263		19,285
Total Own funds according to Basel I floor	n.a.	2	19,350

1Expected loss amount calculated according to the IRB approach is a gross deduction from Own funds. The gross deduction is decreased by impairment related to exposure ratios for which expected loss is calculated. Excess amounts of such impairment will increase Own funds. This increase is limited to 0.6 percent of SEK’s risk exposure amount according to the IRB approach related to exposures to central governments, corporates and financial institutions. As of March 31, 2018, the limitation rule has not had any effect (year-end 2017: no effect).

2  This is no longer required to be reported.  See "Transitional rules" in this Note 9.

21

Minimum capital requirements exclusive of buffer

	March 31, 2018			December 31, 2017
Skr mn	EAD1	Risk exposure amount	Minimum capital requirement	EAD1	Risk exposure amount	Minimum capital requirement
Credit risk standardized method
Corporates	1,329	1,329	106	1,316	1,316	105
Total credit risk standardized method	1,329	1,329	106	1,316	1,316	105
Credit risk IRB method
Central governments	172,488	9,820	787	161,429	9,331	747
Financial institutions2	38,210	12,031	962	38,163	12,688	1,015
Corporates 3	107,521	56,147	4,492	104,630	53,763	4,301
Assets without counterparty	106	106	8	121	121	10
Total credit risk IRB method	318,325	78,104	6,249	304,343	75,903	6,073
Credit valuation adjustment risk	n.a.	2,398	191	n.a.	1,989	159
Foreign exchange risk	n.a.	1,108	89	n.a.	1,326	106
Commodities risk	n.a.	13	1	n.a.	13	1
Operational risk	n.a.	3,284	263	n.a.	3,284	263
Total	319,654	86,236	6,899	305,659	83,831	6,707
Adjustment according to Basel I floor	n.a.	n.a.	n.a.	n.a.	4,503	360
Total incl. Basel I floor4	n.a.	n.a.	n.a.	n.a.	88,334	7,067

1Exposure at default (EAD) shows the size of the outstanding exposure at default.

2Of which counterparty risk in derivatives: EAD Skr 4,808 million (year-end 2017: Skr 4,131 million), Risk exposure amount of Skr 1,824 million (year-end 2017: Skr 1,574 million) and Capital requirement of Skr 146 million (year-end 2017: Skr 126 million).

3Of which related to specialized lending: EAD Skr 2,539 million (year-end 2017: Skr 2,478 million), Risk exposure amount of Skr 1,741 million (year-end 2017: Skr 1,643 million) and Capital requirement of Skr 139 million (year-end 2017: Skr 131 million).

4 This is no longer required to be reported.  See "Transitional rules" in this Note 9.

Credit risk

For risk classification and quantification of credit risk, SEK uses the IRB approach. Specifically, SEK applies the Foundation Approach. Under the Foundation Approach, the company determines the probability of default within one year (PD) for each of its counterparties, while the remaining parameters are established in accordance with CRR. The Swedish Financial Supervisory Authority has approved SEK’s IRB approach. Certain exposures are, by permission from the Swedish Financial Supervisory Authority, exempted from application of the IRB approach, and, instead, the standardized approach is applied. Counterparty risk exposure amounts in derivatives are calculated in accordance with the mark-to-market method.

Credit valuation adjustment risk

Credit valuation adjustment risk is calculated for all over-the-counter derivative contracts, except for credit derivatives used as credit protection and transactions with a qualifying central counterparty. SEK calculates this capital requirement according to the standardized method.

Foreign exchange risk

Foreign exchange risk is calculated according to the standardized approach, whereas the scenario approach is used for calculating the gamma and volatility risks.

Commodities risk

Capital requirements for commodity risk are calculated in accordance with the simplified approach under the standardized approach. The scenario approach is used for calculating the gamma and volatility risks.

Operational risk

Capital requirement for operational risk is calculated according to the standardized approach. The company’s operations are divided into business areas as defined in the CRR. The capital requirement for each area is calculated by multiplying a factor depending on the business area by an income indicator. The factors applicable for SEK are 15 percent and 18 percent. The income indicators consist of the average operating income for the past three financial years for each business area.

Transitional rules

On January 1, 2018, capital requirements and reporting applicable to the Basel I floor ceased to apply. The Basel I floor constituted a minimum capital requirement introduced as a transitional rule in 2007 that was valid until 2017.

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Capital buffer requirements

SEK expects to meet capital buffer requirements with Common Equity Tier 1 capital. The mandatory capital conservation buffer is 2.5 percent. The countercyclical buffer rate that is applied to exposures located in Sweden was increased from 1.5 percent to 2.0 percent as of March 19, 2017. As of March 31, 2018, the capital requirement related to relevant exposures in Sweden is 71 percent (year-end 2017: 67 percent) of the total relevant capital requirement regardless of location; this fraction is also the weight applied on the Swedish buffer rate when calculating SEK’s countercyclical capital buffer. Buffer rates applicable in other countries may have effects on SEK, but as most capital requirements for SEK’s relevant credit exposures are related to Sweden, the potential effect is limited. As of March 31, 2018, the contribution to SEK’s countercyclical buffer from buffer rates in other countries was 0.04 percentage points (year-end 2017: 0.05 percentage points). SEK has not been classified as a systemically important institution by any financial regulatory authority. The capital buffer requirements for systemically important institutions that came into force January 1, 2016 therefore do not apply to SEK.

Leverage Ratio

Skr mn	March 31, 2018		December 31, 2017
Exposure measure for the leverage ratio
On-balance sheet exposures	267,126		249,244
Off-balance sheet exposures	41,229		42,168
Total exposure measure	308,355		291,412
Leverage ratio	5.6	%	5.9	%

The leverage ratio is defined by CRR as the quotient of the Tier 1 capital and an exposure measure. Currently there is no minimum requirement for the leverage ratio.

Internally assessed economic capital excl. buffer

Skr mn	March 31, 2018	December 31, 2017
Credit risk	7,014	6,898
Operational risk	142	142
Market risk	1,161	1,573
Other risks	203	170
Capital planning buffer	1,966	2,005
Total	10,486	10,788

SEK regularly conducts an internal capital adequacy assessment process, during which the company determines how much capital is needed in order to cover its risks. The result of SEK’s assessment of capital adequacy is presented above. For more information regarding the internal capital adequacy assessment process and its methods, please see the Risk and Capital management section of SEK’s Annual Report for 2017.

Note 10. Exposures

Net exposures are reported after taking into consideration effects of guarantees and credit default swaps. Amounts are calculated in accordance with capital adequacy calculations, but before the application of credit conversion factors.

Total net exposures

Skr bn	Credits & interest-bearing securitites				Undisbursed credits, derivatives, etc				Total
Classified by type of	March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017		March 31, 2018		December 31, 2017
counterparty	Amount	%	Amount	%	Amount	%	Amount	%	Amount	%	Amount	%
Central governments	105.9	40.4	97.1	39.6	65.2	84.7	70.0	85.1	171.1	50.4	167.1	51.1
Regional governments	13.5	5.1	11.4	4.7	—	—	—	—	13.5	4.0	11.4	3.5
Multilateral development banks	2.8	1.1	0.0	0.0	—	—	—	—	2.8	0.8	0.0	0.0
Public Sector Entity	1.4	0.5	0.4	0.2	—	—	—	—	1.4	0.4	0.4	0.1
Financial institutions	32.2	12.3	32.7	13.3	6.4	8.3	5.9	7.2	38.6	11.4	38.6	11.8
Corporates	106.6	40.6	103.4	42.2	5.4	7.0	6.3	7.7	112.0	33.0	109.7	33.5
Total	262.4	100.0	245.0	100.0	77.0	100.0	82.2	100.0	339.4	100.0	327.2	100.0

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Net exposure by region and exposure class, as of March 31, 2018

Skr bn	Middle East/ Africa/ Turkey	Asia excl. Japan	Japan	North America	Oceania	Latin America	Sweden	West European countries excl. Sweden	Central- and East European countries	Total
Central governments	—	0.7	2.7	2.3	—	0.8	148.4	12.9	3.3	171.1
Regional governments	—	—	—	—	—	—	13.2	0.3	—	13.5
Multilateral development banks	—	—	—	—	—	—	—	2.8	—	2.8
Public Sector Entity	—	—	—	—	—	—	—	1.4	—	1.4
Financial institutions	—	2.9	0.5	8.0	1.1	0.3	9.1	16.4	0.3	38.6
Corporates	5.0	3.7	2.1	2.7	—	3.4	76.2	18.8	0.1	112.0
Total	5.0	7.3	5.3	13.0	1.1	4.5	246.9	52.6	3.7	339.4

Net exposure by region and exposure class, as of December 31, 2017

Skr bn	Middle East/ Africa/ Turkey	Asia excl. Japan	Japan	North America	Oceania	Latin America	Sweden	West European countries excl. Sweden	Central- and East European countries	Total
Central governments	—	0.7	4.0	2.4	—	0.9	145.1	10.9	3.1	167.1
Regional governments	—	—	—	—	—	—	11.2	0.2	—	11.4
Multilateral development banks	—	—	—	—	—	—	—	0.0	—	0.0
Public Sector Entity	—	—	—	—	—	—	—	0.4	—	0.4
Financial institutions	—	3.0	0.5	9.6	1.2	1.1	6.9	16.0	0.3	38.6
Corporates	4.9	3.6	1.7	2.9	—	3.3	72.2	21.0	0.1	109.7
Total	4.9	7.3	6.2	14.9	1.2	5.3	235.4	48.5	3.5	327.2

Net exposure European countries, excluding Sweden

Skr bn	March 31, 2018	December 31, 2017
France	10.4	10.3
United Kingdom	7.4	7.7
Norway	6.5	6.2
Finland	6.4	7.1
Denmark	4.2	4.8
Luxembourg	3.7	0.4
Germany	3.7	4.7
Poland	3.3	3.1
The Netherlands	3.1	2.6
Belgium	2.5	0.9
Spain	2.4	2.6
Austria	1.2	0.1
Ireland	0.4	0.4
Switzerland	0.4	0.5
Latvia	0.2	0.2
Iceland	0.2	0.2
Italy	0.1	0.1
Russia	0.1	0.1
Estonia	0.1	0.1
Hungary	0.0	0.0
Total	56.3	52.1

Note 11. Transactions with related parties

Transactions with related parties are described in Note 28 in SEK’s Annual Report for 2017. No material changes have taken place in relation to transactions with related parties compared to the descriptions in the Annual Report for 2017, except that SEK made short term liquidity investments in interest-bearing securities issued by the Riksbank during the first quarter of 2018.

Note 12. Events after the reporting period

No events with significant impact on the information in this report have occurred after the end of the reporting period.

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The Board of Directors and the Chief Executive Officer confirm that this Interim report provides a fair overview of the Parent Company’s and the Consolidated Group’s operations and their respective financial position and results, and describes material risks and uncertainties facing the Parent Company and other companies in the Consolidated Group.

Stockholm, April 24, 2018

AB SVENSK EXPORTKREDIT

SWEDISH EXPORT CREDIT CORPORATION

Lars Linder-Aronson	Cecilia Ardström	Anna Brandt
Chairman of the Board	Director of the Board	Director of the Board

Reinhold Geijer	Hans Larsson	Susanne Lithander
Director of the Board	Director of the Board	Director of the Board

Lotta Mellström	Ulla Nilsson
Director of the Board	Director of the Board

Catrin Fransson

Chief Executive Officer

SEK has established the following expected dates for the publication of financial information and other related matters:

July 17, 2018	Interim Report for the period January 1, 2018 – June 30, 2018
October 23, 2018	Interim Report for the period January 1, 2018 – September 30, 2018
January 31, 2019	Year-end Report for the period January 1, 2018 – December 31, 2018

The report contains information that SEK will disclose pursuant to the Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication on April 24, 2018 13:00 (CEST).

Additional information about SEK, including investor presentations and the Annual Report for the financial year 2017, is available at www.sek.se. Information available on or accessible through SEK’s website is not incorporated herein by reference.

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Definitions

Alternative performance measures (see *)

Alternative performance measures (APMs) are key performance indicators that are not defined under IFRS or in the Capital Requirements Directive IV (CRD IV) or in regulation (EU) No. 575/2013 on prudential requirements for credit institutions and investment firms (CRR). SEK has chosen to present these, either because they are in common use within the industry or because they accord with SEK’s assignment from the Swedish government. The APMs are used internally to monitor and manage operations, and are not considered to be directly comparable with similar key performance indicators presented by other companies. For additional information regarding the APMs, refer to www.sek.se.

*After-tax return on equity

Net profit, expressed as a percentage per annum of the current year’s average equity (calculated using the opening and closing balances for the report period).

*Average interest-bearing assets

The total of cash and cash equivalents, treasuries/government bonds, other interest-bearing securities except loans, loans in the form of interest-bearing securities, loans to credit institutions and loans to the public. Calculated using the opening and closing balances for the report period.

*Average interest-bearing liabilities

The total of outstanding senior debt and subordinated securities issued. Calculated using the opening and closing balances for the report period.

Basic and diluted earnings per share (Skr)

Net profit divided by the average number of shares, which amounted to 3,990,000 for each period.

*CIRR loans as percentage of new lending

The proportion of officially supported export credits (CIRR) of new lending.

CIRR-system

The CIRR-system comprises of the system of officially supported export credits (CIRR).

Common Equity Tier 1 capital ratio

The capital ratio is the quotient of total common equity tier 1 capital and the total risk exposure amount.

Large companies

Companies with an annual turnover of more than Skr 5 billion.

Leverage ratio

Tier 1 capital expressed as a percentage of the exposure measured under CRR (refer to Note 9).

Liquidity coverage ratio (LCR)

The liquidity coverage ratio is a liquidity metric that shows SEK’s highly liquid assets in relation to the company’s net cash outflows for the next 30 calendar days. An LCR of 100 percent means that the company’s liquidity reserve is of sufficient size to enable the company to manage stressed liquidity outflows over a period of 30 days. Unlike the Swedish FSA’s rules, the EU rules take into account the outflows that correspond to the need to pledge collateral for derivatives that would arise as a result of the effects of a negative market scenario.

Loans

Lending pertains to all credit facilities provided in the form of interest-bearing securities, and credit facilities granted by traditional documentation. SEK considers these amounts to be useful measurements of SEK’s lending volumes. Accordingly, comments on lending volumes in this report pertain to amounts based on this definition.

*Loans, outstanding and undisbursed

The total of loans in the form of interest-bearing securities, loans to credit institutions, loans to the public and loans, outstanding and undisbursed. Deduction is made for cash collateral under the security agreements for derivative contracts and deposits with time to maturity exceeding three months (see the Statement of Financial Position and Note 8).

Medium-sized companies

Companies with an annual turnover between Skr 500 million and Skr 5 billion, inclusive.

Net stable funding ratio (NSFR)

This ratio measures stable funding in relation to the company’s illiquid assets over a one-year, stressed scenario in accordance with Basel III.

*New lending

New lending includes all new committed loans, irrespective of tenor. Not all new lending is reported in the Consolidated Statement of Financial Position and the Consolidated Statement of Cash Flows since certain portions comprise committed undisbursed loans (see Note 8). The amounts reported for committed undisbursed loans may change when presented in the Consolidated Statement of Financial Position due to changes in exchange rates, for example.

*New long-term borrowings

New borrowings with maturities exceeding one year, for which the amounts are based on the trade date.

*Outstanding senior debt

The total of borrowing from credit institutions, borrowing from the public and senior securities issued.

Own credit risk

Net fair value change due to credit risk on financial liabilities designated as at fair value through profit or loss.

Repurchase and redemption of own debt

The amounts are based on the trade date.

Swedish exporters

SEK’s clients that directly or indirectly promote Swedish export.

Tier 1 capital ratio

The capital ratio is the quotient of total tier 1 capital and the total risk exposure amount.

Total capital ratio

The capital ratio is the quotient of total Own funds and the total risk exposure amount.

Unless otherwise stated, amounts in this report are in millions (mn) of Swedish kronor (Skr), abbreviated “Skr mn” and relate to the group consisting of the Parent Company and its consolidated subsidiaries (together, the “Group” or the “Consolidated Group”). AB Svensk Exportkredit (SEK), is a Swedish corporation with the identity number 556084-0315, and with its registered office in Stockholm, Sweden. SEK is a public limited liability company as defined in the Swedish Companies Act. In some instances, under Swedish law, a public company is obliged to add “(publ.)” to its company name.

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About SEK

About SEK, AB Svensk Exportkredit

SEK was founded back in 1962 and is currently owned by the Swedish state. Around 260 employees are based at the head office in Stockholm. In addition, SEK has an  office in Gothenburg that is shared with the Swedish Export Credits Guarantee Board (EKN) and Business Sweden.

SEK’s mission	Our mission is to ensure access to financial solutions for the Swedish export industry on commercial and sustainable terms. The mission includes making available the officially supported CIRR system, in other words, fixed-interest export credits.
SEK’s vision	Our vision is to strengthen the competitiveness of the Swedish export industry and, thereby to help create employment and sustainable growth in Sweden.
SEK’s core values	We are governed by our core values: Solution orientation, Collaboration and Professionalism.
SEK’s clients	Our clients can be found in the Swedish export industry. We finance companies with operations that are linked to Swedish interests and exports. Clients are found among large to medium-sized companies and their foreign buyers of Swedish products and services.
SEK’s partnerships	Through Team Sweden, we have close partnerships with other export promotion agencies in Sweden such as EKN, Business Sweden, Almi and Swedfund. Our international network is substantial and we also work together with numerous Swedish and international banks.

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