First quarter 2017

·                   Basic and diluted earnings per share Skr 49 (3M16: Skr 62)

·                   After-tax return on equity 4.6 percent (3M16: 5.8 percent)

Equity and balances

·                   Total capital ratio 21.5 percent (year-end 2016: 25.1 percent)

·                   Total assets Skr 298.8 billion (year-end 2016: Skr 299.4 billion)

·                   Loans, outstanding and undisbursed Skr 263.1 billion (year-end 2016: Skr 263.5 billion)

Healthy new lending

SEK’s first quarter was characterized by a high level of activity. Although new lending was slightly lower than in the first quarter of 2016 the number of transactions was higher. New lending during the first quarter was Skr 17.5 billion (3M16: Skr 21.1 billion). SEK’s new lending often varies between quarters, mainly due to a portion of the lending consisting of large export credits that may affect the individual quarters. The initiative to attract new customers continues according to plan and SEK has attracted new customers in both customer groups, large and medium-sized companies. SEK’s contribution to the realization of the government’s export strategy involves an increased focus on export financing to emerging countries and closer cooperation with the other export promotion agencies in Team Sweden.

During the quarter, one of the transactions that SEK participated in financing in 2016 received a Best Deals 2016 award from the trade finance magazine Global Trade Review (GTR). The transaction was for deliveries by ASEA Brown Boveri (ABB) to the 720 km subsea interconnector, the North Sea Link, between the UK and Norway. SEK’s part of the financing totaled approximately USD 230 million.

New lending

1                    Of which Skr 0.8 billion (3M16: Skr 0.4 billion; year-end 2016: Skr 0.1 billion) had not been disbursed at period end.

2                    Of which Skr 1.0 billion (3M16: 11.2 billion; year-end 2016: Skr 8.3 billion) had not been disbursed at period end.

Successful issuances

In the first quarter of 2017, the financial market posted a stable trend despite a certain level of political hesitancy resulting from uncertainties surrounding how the UK will handle the Brexit process and the forthcoming national elections in several large European countries. SEK completed the issuance of a five-year, USD 1.4 billion benchmark bond. SEK also issued additional notes of an existing Floating Rate Note series totaling USD 300 million with a remaining maturity of approximately 1.5 years and issued a Fixed Rate Note of GBP 250 million with a tenor of approximately 3.5 years. All of the transactions were well-received by the market.

SEK maintains a healthy capacity for new lending and believes it is well prepared to withstand the potential consequences that a turbulent financial and political macro environment may have for the Swedish export industry’s ability to secure favorable long-term financing.

SEK’s borrowing

First quarter of 2017

Operating profit for the first quarter amounted to Skr 257 million (3M16: Skr 310 million). Net profit was Skr 196 million (3M16: Skr 245 million).

Net interest revenues

Net interest revenues for the first quarter amounted to Skr 430 million (3M16: Skr 429 million), which was in line with the previous year. Net interest revenues were affected negatively by a higher resolution fee of Skr 49 million (3M16: Skr 13 million), which SEK is required to pay to a fund to support the recovery of credit institutions. The higher resolution fee was offset by lower borrowing costs and increased interest revenue from credit. Average interest-bearing assets increased compared to the corresponding period the previous year, which also had a positive impact on net interest revenues.

Net results of financial transactions

Net results of financial transactions for the first quarter amounted to Skr 6 million (3M16: Skr 36 million), mainly due to unrealized gains related to the fair value of currency swaps which was offset by unrealized losses related to the fair value of the credit spreads on SEK’s own debt.

Operating expenses

The operating expenses for the first quarter were in line with the corresponding period the previous year. Beginning in 2017, SEK has introduced a system for individual variable remuneration for permanent employees with customer or business responsibility, with the exception of members of the executive management. The remuneration at the Company level is capped at a maximum of two months’ salary for those who qualify. For the first quarter, a provision of Skr 3 million was made for the remuneration in the system.

Net credit losses

Net credit losses for the first quarter totaled Skr -23 million (3M16: Skr 1 million). In the first quarter, a provision of Skr -17 million was made for expected credit losses relative to individually-assessed counterparties. A Skr -10 million provision for expected credit losses to the reserve for collectively-assessed credits was also made as a result of a new method for calculating sovereign risk (see Note 10). A review of earlier impaired credits corresponding to Skr 49 million has now been concluded, and has resulted in a realized loss of Skr 47 million and a recovery of Skr 2 million. The collectively-assessed credits reserve amounted to Skr 180 million at March 31, 2017 (year-end 2016: Skr 170 million).

Other comprehensive income

A major part of the items to be reclassified to operating profit were related to cash flow hedges. The effect was related to reclassification from other comprehensive income to net interest revenues due to the fact that hedging instruments previously were included in cash flow hedges.

Items not to be reclassified to operating profit were related to revaluation of defined benefit pensions. The positive impact in fair value was caused by the higher discount rate.

Statement of Financial Position

Total assets and liquidity investments

Total assets were unchanged but the proportion of outstanding loans increased during the first quarter compared to the end of the year. This was explained by increased lending and also to some extent by a stronger US dollar as compared to Skr.

No significant change has taken place in the composition of SEK’s counterparty exposure (see Note 11). Total exposures amounted to Skr 338.0 billion on March 31, 2017 (year-end 2016: Skr 340.7 billion).

Liabilities and equity

As of March 31, 2017, 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 2017, 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 21.5 percent (year-end 2016: 25.1 percent) and healthy liquidity. The change in capital ratios compared to the year-end 2016 is primarily due to SEK applying the internal ratings-based (IRB) approach to exposures to central and regional governments and to multilateral development banks beginning in the first quarter of 2017 (see Note 10).

Rating

Risk factors and the macro environment

Various risks arise as part of SEK’s operations. SEK’s primary exposure is to credit risk, but SEK 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 2016 Annual Report.

The Swedish economy started 2017 with a continued upswing after a strong growth rate in the fourth quarter of 2016.

The main reason for the increase in GDP in the fourth quarter of 2016 was a strong export performance and that increase has continued so far in 2017. The annualized rate of Swedish gross domestic product growth was approximately 2.3 percent in the fourth quarter of 2016 and the unemployment rate was 6.8 percent as of February 2017. The consumer price index rose by 1.3 percent on an annualized basis as of March 2017, and the repo rate remains fixed at -0.5 percent. According to Statistics Sweden (SCB), in the fourth quarter of 2016, Swedish exports increased by 1.8 percent compared to the prior quarter. Exports of goods increased by 1.6 percent and exports of services increased by 2.0 percent.

Financial markets have been stable in the first quarter of 2017, despite political uncertainty as a result of Brexit, US policy and national elections in several big European countries. European cooperation faces major challenges and political uncertainty risks ultimately affecting the real economy and the financial system.

Change in External Auditor and Board of Directors

At SEK’s Annual General Meeting on March 22, 2017 (2017 Annual Meeting), the Board of Directors of SEK proposed, in accordance with the Audit Committee’s recommendation, that Öhrlings PricewaterhouseCoopers AB (PwC) serve as external auditors of SEK for a period of one year until the end of SEK’s next Annual General Meeting in 2018.  Accordingly, the engagement of SEK’s prior auditors, Ernst & Young AB (EY), was not renewed. The change was made pursuant to corporate governance guidelines recommending periodic rotation of independent registered public accounting firms and was not the result of EY’s resignation, dismissal or refusal to stand for re-election. In addition, at the 2017 Annual Meeting, Reinhold Geijer and Hans Larsson were each elected to the Board of Directors of SEK as Directors to replace Jan Belfrage and

Magnus Uggla.  For more information, see SEK’s report on Form 6-K/A filed with the U.S. Securities and Exchange Commission on March 31, 2017.

Financial targets

This condensed Interim Report is presented in accordance with 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) 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 Consolidated Group’s and the Parent Company’s accounting policies, methods of computation and presentation are, in all material aspects, the same as those used for the 2016 annual financial statements. 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, 2016.

Future changes to IFRS

IFRS 9 Financial instruments covering classification and measurement, impairment and general hedge accounting was adopted by IASB in 2014. The adoption of IFRS 9 becomes mandatorily effective beginning January 1, 2018, with early adoption permitted.

In 2015, SEK set up a project with members from Risk, Credit, Lending, Finance, Accounting and IT to prepare for IFRS 9 implementation. The project has entered the implementation phase, with a parallel run planned for the second half of 2017, and adoption in 2018. From a classification and measurement perspective SEK anticipates a limited impact on its lending portfolio, as most of it will be measured at amortized cost under IFRS 9. Financial assets and liabilities at fair value through profit or loss are expected to continue to be measured at fair value through profit or loss. The majority of debt securities classified as available for sale under IAS 39, SEK’s liquidity investments, are expected to be measured at amortized cost or fair value through other comprehensive income. Some securities, however, will be classified at fair value through profit or loss, either because of their contractual cash flow characteristics or the business model within which they are held. For financial liabilities, the policies have essentially been transferred from IAS 39. A material change for SEK is that when SEK’s own debt is measured at fair value through profit or loss, changes in value due to the company’s own credit risk will no longer affect profit or loss but will be separated and recognized directly through other comprehensive income, which will probably result in reduced profit volatility for SEK. The new general rules on hedge accounting give the opportunity to improve and simplify hedge accounting, and the changes will primarily have an effect on the administrative process for hedge accounting. SEK plans for an adoption of IFRS 9 hedge accounting from January 1, 2018. IFRS 9 will also fundamentally change the loan loss impairment methodology by replacing IAS 39’s incurred loss approach with a forward-looking expected loss approach, which is expected to be the greatest impact of IFRS 9. IFRS 9 requires an allowance for expected losses for all financial assets measured at amortized cost or fair value through other

comprehensive income, together with loan commitments and financial guarantee contracts. This is a change from IAS 39 where the allowance for incurred but not yet identified impairment does not include off-balance sheet items or financial assets classified as available for sale. The allowance is based on the expected credit losses associated with the probability of default in the next twelve months unless there has been a significant increase in credit risk since origination, in which case, the allowance is based on the probability of default over the life of the asset.

SEK is in the process of evaluating the effects from IFRS 9, and in line with the parameters established in accordance with IFRS 9, the simulated expected loss amount will be closer to the expected loss amount. For now, no conclusions have been reached as to any effects on SEK’s financial statements,

capital adequacy or large exposures. The magnitude of the effect on capital adequacy, will depend, among other things, on whether the capital rules are amended to reflect IFRS 9.

The IASB has also adopted IFRS 15 Revenue from Contracts with Customers, which is applicable from January 1, 2018. IFRS 15 is not applicable for financial instruments or leasing agreements.  IFRS 15 is not expected to have any material effects on SEK’s financial statements, capital adequacy or large exposures.

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 exposures.

SEK’s general business model is to hold financial instruments measured at fair value to maturity. The net fair value changes that occur, mainly related to changes in credit spreads on SEK’s own debt and basis-spreads, and recognized in net results of financial transactions, which could be significant in a single reporting period, 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.

These effects are presented in the table above under the line items “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”.