Announcement of financial results 2020
EUROFIMA has closed the financial year 2020 with a sound increase of its loan book and a higher net profit compared to the previous financial year.
EUROFIMA’s balance sheet total has increased from EUR 16.1 bn to EUR 17.0 bn (+5.6%). The balance sheet increase was driven by a net increase of the loan book by EUR 733 mn representing the second consecutive increase in the loan book since the financial crisis and the start of the former deleveraging strategy in 2008.
EUROFIMA’s net profit for the financial year amounted to EUR 24.5 mn, which is 7.9% higher than the level of 2019 (EUR 22.7 mn). The growth in lending and the strong performance of treasury assets contributed to the increase of net profit.
No impairments were recognized during the year. As at December 31, 2020, all assets were fully performing. This represents the 64th consecutive year in which EUROFIMA has not experienced any losses due to railways not meeting their obligations.
“2020 has been an extraordinary year. Despite the restrictions caused by the COVID 19 pandemic, EUROFIMA has remained fully operational and has been able to provide the required liquidity to their Railway customers for Rolling Stock financing, continuing the healthy expansion of the lending activities. At the same time, sound risk policies and a structured investment approach ensured another financially successful year. For the coming years we are determined to continue supporting the European railway sector and to win new shareholders and customers for EUROFIMA”, stated Harry Müller, Chief Executive Officer.
In 2020, EUROFIMA concluded 33 finance contracts with eight shareholders, or their affiliates, for the financing of railway equipment in the amount of more than EUR 2.92 billion. With most of the funds dedicated to electric trains and passenger cars, 2020 marked another example of EUROFIMA’s commitment to fulfilling its public mission for sustainable mobility.
EUROFIMA managed to raise a majority of these funds under the Green Bond Framework through increasing its outstanding November 2034 (EUR 880 million) and five new green bonds maturing in May 2030 (EUR 750 million), July 2026 (EUR 300 million), November 2028 (SEK 1.5 billion), December 2025 (SEK 1 billion), and December 2024 (SEK 550 million).
EUROFIMA is fully operational with its staff working from home during the weeks of the COVID-19 restrictions. Liquidity management and risk management remain considerate and prudent. A robust liquidity position, assets of highest quality, and a sound business plan ensure that the supranational organization goes through these challenging times safely.
The financial results 2020 have been approved by the 64th Annual General Assembly on 16th March 2021.
EUROFIMA in brief:
- Established in 1956 by a State Treaty signed by 25 European member States so far
- Public mission to support rail transport by financing investments in railway rolling stock
- Rated AA (Standard & Poor's) and Aa2/stable (Moody's)
Link to the Annual Report 2020: https://www.eurofima.org/investor-relations/financial-information/For more information, please do not hesitate to contact Harry Müller, Chief Executive Officer, email@example.com