Insights into the 2024 Financial Statement of Local Loan Fund
Overview of the Local Loan Fund's Financial Success in 2024
The Local Loan Fund has reported a remarkable profit of 2.070 billion krónur for the year 2024, showcasing a positive increase compared to the previous year's profit of 1.866 billion. This growth reflects the fund's commitment to maintaining its financial health and supporting local municipalities.
Key Financial Figures and Trends
Despite a decrease in net interest income by 4%, attributed to lower inflation, the fund's total assets showed a significant rise. The total assets reached 211 billion krónur by the end of 2024, up from 200 billion krónur at the end of 2023, marking an impressive 5% increase. Likewise, the total loans granted by the fund amounted to 200 billion krónur, compared to 191 billion the previous year.
Asset Valuation and Financial Health
The market value of the bond issuance dropped to 13.9 billion krónur from 18.8 billion in 2023. The equity at year-end reached 24.8 billion krónur, a rise from 22.7 billion krónur in the previous year. The weighted capital ratio under financial sector regulations stands at 361% with full mitigation, which is lower than the 416% reported in 2023. This adjustment considers the fund's lending to municipalities in krónur secured by municipal revenues.
Dividend Policy and Future Prospects
The governing board has recommended withholding dividends to shareholders for 2025, aiming to strengthen the fund's position and support further capital growth. The fund anticipates that the demand for loans in the coming year will remain consistent with 2024's performance.
Operational Highlights of 2024
Throughout the year, net interest income totaled 1.499 billion krónur, a decline from the previous year's 1.559 billion. Other operational revenue showed notable growth, reaching 879 million krónur compared to 588 million krónur in 2023. The overall operating expenses also increased, amounting to 308 million krónur, reflecting ongoing investments in operational efficiency.
Asset Management Strategies
The fund has actively managed its assets, including investments in government bonds and market securities, achieving significant returns. Handheld cash at year's end showed a reduction to 558 million krónur, down from 846 million krónur in the prior year. Investments in government bonds and bills amounted to 7.435 billion krónur, signifying a strong commitment to secure and stable investments.
Future Directions and Innovations
Looking forward, the Local Loan Fund is set to enhance its service delivery to municipalities by leveraging its solid credit profile. The focus remains on fulfilling its primary mission of supporting local development with strategic loan disbursements, ensuring well-supported growth in the municipal sector.
Frequently Asked Questions
What was the profit of the Local Loan Fund in 2024?
The Local Loan Fund reported a profit of 2.070 billion krónur in 2024.
How much did the total loans granted amount to?
Total loans granted by the fund amounted to 200 billion krónur at the end of 2024.
What future plans does the Local Loan Fund have?
The fund plans to continue its operational strategy while withholding dividends to strengthen its capital position for future growth.
How have the fund's assets changed over the past year?
The fund's total assets increased from 200 billion krónur in 2023 to 211 billion krónur by the end of 2024.
What is the significance of the capital ratio reported?
The capital ratio is an indicator of the fund's financial health, with a current ratio of 361% reflecting its stability in securing loans to municipalities.
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