KredEx earned a profit of EUR 1.2 million


According to the annual report approved by the Supervisory Board of KredEx today, KredEx earned a profit of EUR 1.2 million last year (EUR 900,000 in 2013).

In 2014, the volume of KredEx loan guarantees increased. Guarantees for entrepreneurship were issued in the record amount of EUR 68 million. Compared to the previous year, growth was 30%. Moreover, the volume of housing loan guarantees increased to EUR 16 million, exceeding last year's indicator by 27%. Thirteen per cent of all housing loans issued in Estonia were granted with a KredEx guarantee. The increase in volumes was facilitated by the improvement of overall economic confidence, especially in the first half of the year when companies showed increased interest in investments. On the other hand, the second half of the year brought about a perceivable decline in investment activities due to the growth of risks in the economic environment, and the main focus was primarily on strengthening the principal activity. “The housing market grew throughout the year, increasing steadily; the number of transactions increased, and real estate prices increased slightly,” said Andrus Treier, CEO of KredEx.

Gross operating revenue for KredEx amounted to EUR 6.1 million, down 6.1% from 2013. That includes revenue related to guaranteeing loans, which reached EUR 3.1 million, and revenue from interest on loans, which amounted to EUR 2.2 million.

To cover losses, there were appropriations of EUR 1.8 million in 2014 (EUR 2.3 million in 2013). Indemnified losses totalled EUR 3.1 million in 2014 (EUR 2.5 million in 2013), with the majority accounted for by losses resulting from guarantees for business loans. Over the course of its entire existence, KredEx has indemnified losses of EUR 25.3 million.

In providing financial services, KredEx is, above all, guided by public interest, assisting companies and residents where the market is not functioning. To accomplish its mission, KredEx has to take sufficient risks yet break even when several years are averaged. That said, considerable profits or losses may be earned or incurred in individual years. Since its founding in 2000, KredEx has earned a total profit of EUR 6.2 million.

In the area of entrepreneurship, KredEx provided guarantees and financing in the sum of EUR 73.0 million to 422 companies in 2014. In addition, valid guarantee agreements with 207 companies were amended. The support of KredEx made it possible for companies to include additional financing from banks and KredEx in the amount of EUR 121.4 million. Supported enterprises had 9,506 employees. As a result of the projects, 1,104 new jobs are going to be created.

In addition to supporting the companies, last year KredEx helped 1,975 young families, entry-level specialists and military veterans to purchase homes and to take out a total of EUR 106.9 million in home loans from banks, using EUR 16.2 million in guarantees from KredEx to that end. Last year, KredEx issued 69 loan guarantees for apartment buildings, totalling EUR 4.1 million. In 2014, 25 apartment associations used long-term loans at attractive interest rates for renovations, totalling EUR 4.3 million. A total of EUR 9.1 million was allocated in reconstruction grants for 97 apartment buildings. Since 2001, KredEx home loan guarantees have been used by 26,826 households, with loan guarantees to renovate apartment buildings used on 760 occasions.

As at the end of last year, KredEx had an endowment of EUR 71.8 million, a balance sheet total of EUR 176.5 million and a guarantee portfolio totalling EUR 168.3 million.