Eksportfinans ASA - Fourth Quarter Results

RNS Number:1363O
Eksportfinans ASA
15 February 2008

Fourth quarter results for Eksportfinans ASA

PRESS RELEASE
February 15, 2008

Eksportfinans 2007:

STRONG GROWTH IN LENDING

Eksportfinans experienced growth in demand and disbursements of new export
related loans as well as loans to the public sector in Norway in 2007. Total
lending from the Group reached NOK 124.7 billion at December 31, 2007 , compared
to NOK 99.1 billion at year-end in 2006.

The Group's total lending as of December 31, 2007 was distributed with NOK 56.4
billion in export related loans and NOK 68.3 billion to the public sector in
Norway through Eksportfinans' subsidiary Kommunekreditt Norge AS.

Export lending

New export related lending reached NOK 22.8 billion at December 31, 2007, and
is particularly related to projects within shipping, oil and gas. Total growth
in export related lending was NOK 14.4 billion in 2007, which is an increase of
34.4 percent compared to 2006.

Local government lending

Kommunekreditt disbursed NOK 16.4 billion in new loans in 2007, corresponding
to NOK 12.3 billion at year-end in 2006. Total growth in loans to the public
sector amounted to NOK 11.2 billion in 2007. This equals an increase of 19.6
percent since year-end 2006.

Funding

In 2007, Eksportfinans borrowed a total of NOK 80.7 billion through 889
individual funding transactions, compared with NOK 56.5 billion and 669 trades
in 2006.

Results

The turmoil in the international capital markets throughout the third and fourth
quarter of 2007 has been challenging to Eksportfinans and led to unrealized
losses in Eksportfinans' liquidity portfolio.

The portfolio consists of highly rated bonds with strong creditworthiness. The
losses in the liquidity portfolio are likely to be reversed gradually, based on
the bonds' maturity. However, the unrealized losses do affect Eksportfinans'
results for 2007. Eksportfinans is not exposed to mortgage loans or sub-prime
loans in the United States.

Due to the situation in the international capital markets, the Group experienced
a loss of NOK 149 million for the year 2007 compared to a profit of NOK 159
million in 2006. Profit excluding unrealized gains and losses on financial
instruments amounted to NOK 294 million in 2007, compared to NOK 243 million in
2006.

In December 2007, Eksportfinans announced an issuance of NOK 1.2 billion in new
share capital from existing owners. To this date, 85 percent of the shareholders
have signed a guarantee agreement for the issuance, for the 15 percent ownership
share held by The Norwegian State, the Government has presented a Bill before
the Norwegian Parliament with a recommendation that the Government participates
with its relative share of the emission. The unrealized losses in the liquidity
portfolio in the second half year of 2007 coupled with the large growth in
export related loans served as the background for the issuance. The increase in
capital is expected to be paid in the first quarter of 2008.

Statements from the Board of Directors

The Board of Directors is satisfied with the Group's strong underlying results
from the core business areas in 2007. Chair person Erik Borgen says:

"The results for the fourth quarter are unfortunately influenced by the
unrealized losses in the Group's liquidity portfolio. In addition to the
increase in equity through the issuance, the Board is determined to strengthen
the Group's position regarding liquidity, results, and capital adequacy ratio
going forward. The actions are founded in the goals of maintaining strong credit
ratings and a core capital adequacy ratio of approximately 8 percent in the time
to come. The Board is also looking into different ways of stopping potential
unrealized losses in the future. There will be no further investments in bonds
that are exposed to credit spread risk for the time being. The Group has a
constructive and proactive dialogue with its owners regarding the Group's
situation."

Key Figures 2007 2006

New export lending NOK 22.8 billion NOK 23.6 billion
New loans to Norwegian public
sector NOK 16.4 billion NOK 12.3 billion
New funding NOK 80.7 billion NOK 56.5 billion
Total assets NOK 218.7 billion NOK 172.4 billion
Capital adequacy 9.6% 12.2%

Profit for the year excluding
unrealized gains/ (losses) on
financial instruments NOK 294 million NOK 243 million
Profit/(loss) for the year (NOK 149 million ) NOK 159 million
Loan losses 0 0

The complete fourth quarter report is published on www.eksportfinans.no

For more information, please contact:

President and CEO Gisele Marchand , ph +47 41 51 74 89,
e-mail gma@eksportfinans.no

Head of Communications Elise Lindbaek, ph +47 90 51 82 50,
e-mail el@eksportfinans.no

Eksportfinans is the Norwegian institute for the financing of exports - the
banks' and the Norwegian state's joint institution for developing and offering
competitive, long-term financing services to the export and municipal sectors.
For more information about Eksportfinans, www.eksportfinans.no

This information is provided by RNS
The company news service from the London Stock Exchange

END

FR EASASFFNPEFE