KredEx grew its operating volumes and earned EUR 1.2 million in profit


According to the 2016 annual report approved by the Supervisory Board of KredEx, KredEx earned a profit of EUR 1.2 million last year. Thanks to KredEx, the funding opportunities of 706 enterprises and the living conditions of 6684 families improved.


According to Chief Executive Officer Lehar Kütt, the past year was a year of growing operating volumes for KredEx. “The volumes of guarantees increased significantly in relation to enterprise loans (44%), housing loans (42%) as well as apartment building loans (80%). At the same time, the guarantee volumes issued during the year in the said lines of business were the highest since the foundation of KredEx in 2001. During the year, KredEx issued guarantees in these target groups for the loans of a total of 3115 enterprises/private individuals/apartment buildings in total sum of EUR 124.4 million. This made it possible for them to include EUR 358 million of additional funding from banks,” said Kütt.

Gross operating revenue for KredEx amounted to EUR 7.1 million, growing by around a million euros when compared to 2015. That includes revenue related to guaranteeing loans, which reached EUR 4.1 million, and revenue from interest on loans, which amounted to EUR 1.9 million. As at the end of last year, KredEx had an endowment of EUR 74 million; a balance sheet total of EUR 191.4 million; a guarantee portfolio totalling EUR 207.6 million; and a loan portfolio of EUR 59.1 million.

To cover credit losses, there were appropriations of EUR 3.9 million in 2016. Losses were covered in the amount of EUR 1.8 million during the year. When compared to 2015, losses were smaller in both the enterprise and housing sector. Over the course of its entire existence, KredEx has indemnified losses of EUR 29.9 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,” Kütt reflected. Since its founding in 2001, KredEx has earned a total profit of EUR 8.4 million.

KredEx is a state-owned financial institution helping to improve the financing options of Estonian enterprises, managing credit risks and helping people to build or renovate their homes.