Announcement of the financial results 2019
EUROFIMA has closed the financial year 2019 with a sound increase of its loan book and a significantly higher net profit. In that year EUROFIMA also introduced the EUR as new functional currency.
EUROFIMA’s balance sheet total has increased from EUR 15.8 bn to EUR 16.1 bn (+1.9%). The balance sheet increase was driven by a net increase of the loan book by EUR 155 mn representing the first increase in the loan book since the financial crisis and the start of the former deleveraging strategy in 2008. Derivative financial instruments and liquid assets rose along with the loan book.
EUROFIMA’s net profit for the financial year amounted to EUR 22.7 mn, which is 63.3% higher than the level of 2018 (EUR 13.9 mn). Main reasons for the increase were the higher net interest income (+EUR 2.0 mn), valuation effects on financial instruments (+EUR 3.3 mn) and a one-time effect from the sale of the office building (+EUR 4.1 mn).
No impairments were recognized during the year. As at December 31, 2019, all assets were fully performing. This represents the 63rd consecutive year in which EUROFIMA has not experienced any losses due to railways not meeting their obligations.
“Financially 2019 was a very successful year for EUROFIMA. The year also marked a turning point from a 10 year long deleveraging strategy towards a healthy expansion of the lending activities. For the coming years we are determined to support the European railway sector and to win new shareholders and customers for EUROFIMA”, stated Alfred Buder, Chief Executive Officer.
In 2019, EUROFIMA concluded nine finance contracts with six shareholders, or their affiliates, for the financing of railway equipment in the amount of more than EUR 1.3 billion. With most of the funds dedicated to electric trains and passenger cars, 2019 marked another example of EUROFIMA’s commitment to fulfilling its public mission for sustainable mobility. EUROFIMA managed to raise part of these funds through its second Green Bond, which was issued in October 2019 as an EUR 500 million 15-year benchmark transaction in the Euro market.
EUROFIMA has further strengthened its focus on sustainability as a key principle. After having set-up its Green Bond Framework in 2018 it officially became a signatory of the UN Principles for Responsible Investment (PRI) on 3rd of January 2020. For 2020 a set of measures, among these further adoptions of UN standards, are planned.
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 2019 have been approved by the 63rd Annual General Assembly on 31st March 2019.
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+/negative (Standard & Poor's) and Aa2/stable (Moody's)
Link to the Annual Report 2019: https://www.eurofima.org/investor-relations/financial-information/ For more information, please do not hesitate to contact Alfred Buder, Chief Executive Officer, email@example.com