OTTAWA, April 1, 2015 /CNW/ - As Canadian exports grew by
an estimated 5.7% in 2014, more than 7,400 Canadian exporters and
investors used EDC's products and services to undertake
$98.9 billion in international
business.
In line with Canada's export
growth, EDC's customers increased 3.7% and business facilitated
increased 3.6% compared to 2013. The commercial Crown Corporation
is the leading provider of financing and insurance for Canadian
companies engaging in international trade, and with approximately
25% of Canada's export trade
supported by its services, EDC's business results reflect the pulse
of the nation's international business.
EDC released highlights of its 2014 corporate results today
following the first meeting of the Board of Directors of 2015. A
complete Annual Report will be released in the second quarter.
"The upward turn we saw in Canadian trade and EDC business in
2013 has continued into 2014 and we are cautiously optimistic that
we are seeing the start of the next export growth cycle in
Canada. Even amidst the recent
drop in oil prices, we continue to see positive signs and believe
that the underlying trends remain solid," said Benoit Daignault, President and CEO, EDC.
The services that EDC provides to Canadian exporters are an
important contributor to the trade objectives of the Global Markets
Action Plan.
"Trade accounts for nearly 60% of Canadian GDP, so the Canadian
exporter figures prominently in the national economy," Daignault
said. "Despite a still-muddled global business climate, Canadian
exporters and investors have proven themselves very adept at
finding new business amid continued global economic
challenges."
Central to EDC's business focus are the following four key areas
that bring the greatest value to Canadian exporters and
investors:
- providing a broad financial toolkit for small- and
medium-sized exporters
- 4.5% increase in new SME customers, reaching 6,110
- 4.7% increase in small business transactions, reaching
2,762
- 12.4% increase in total business facilitated for SME customers,
reaching $14 billion
- 23.8% of that business was in emerging markets
- enabling Canadian business in emerging markets
- 6% increase in business facilitated, reaching $28.9 billion
- Canadian companies access 146 emerging markets using EDC's
services
- facilitating Canadian direct investment abroad, and
- 14.3% increase in the total volume of Canadian foreign
investment that EDC helped facilitate, reaching $7.5 billion
- creating opportunities to connect Canadian companies with
foreign buyers.
- EDC led 11 matchmaking events in 2014 that resulted in 846
introductions between foreign buyers and 395 Canadian
suppliers
- EDC develops relationships with large foreign companies with
supply chain opportunities that match up well with Canadian
capabilities. These relationships supported procurement from more
than 1,800 Canadian exporters in 2014, 91% of whom were SMEs.
In addition, EDC also provides financial services to large
Canadian and foreign companies with significant supply chains
inside Canada. In so doing, EDC
looks to leverage the presence of these anchor companies towards
bringing along with them their smaller Canadian suppliers into new
markets.
"With a 21% increase in total transactions, 17% increase in
financing and a 14% increase in support for foreign investments,
we're seeing more Canadian companies getting into the trade game
with a longer-term plan," added Daignault. "We see this as a
positive sign for Canada's future
prosperity."
Key Performance and Financial Results
"We had record new loan signings of $21.6
billion in 2014, and we facilitated $77 billion of activity in our insurance
programs, indicating growing trade activity among Canadian
companies and their international customers," said Ken Kember, Chief Financial Officer and Senior
Vice-President, Finance, EDC. "From a financial performance
perspective, 2014 was a solid year with $1.1
billion in income."
- EDC customers protected more than $56
billion of their international sales with our credit
insurance ($56 billion in 2013), more
than $11.4 billion in insurance
products used by financial institutions ($10.6 billion in 2013), $7.2 billion in bonding ($7.5 billion in 2013), and more than $2.6 billion in political risk insurance
($2.7 billion in 2013) to help
protect their foreign investments.
- EDC's financing customers, of which 60% were SMEs, signed 1,084
financing transactions with a value of $21.6
billion, an increase of 18% over 2013. More than 90% of
these transactions were undertaken in partnership with
private-sector financial institutions.
- More than 5,200 Canadian companies insured over $77 billion in export contracts with EDC,
covering nearly 78,000 buyers, obligors and banks in nearly 190
foreign markets.
- EDC finished the year with net income of $1.1 billion, an increase of $312 million over 2013. While our net revenue
from operations remained stable with 2013, we saw additional income
in 2014 mainly as a result of the volatility associated with our
financial instruments carried at fair value. Also, upward credit
migration in our loan portfolio led to a reversal of provision for
credit losses in 2014, whereas in 2013 we experienced downward
credit migration and a provision charge.
- EDC's Board of Directors approved the payment of a $1.129 billion dividend to the Government of
Canada during the 2014 calendar
year. The payment was made under EDC's Capital Adequacy Policy,
which allows the Board of Directors to consider a dividend payment
when the Corporation's capital exceeds its forecasted needs.
Dividends paid by EDC to the Government of Canada now total $4.139
billion against the Government's total historical investment
of $1.33 billion.
- The trade and investment facilitated by EDC in 2014 supported
the equivalent of $68.0 billion in
Canadian GDP and 719,200 jobs. This represents 3.9% of total
Canadian GDP and 4.0% of national employment. For every
$1 of income earned in Canada during 2014, $.039 (or 4 cents)
is attributable to EDC's trade and investment facilitation.
All figures are CAD unless otherwise noted.
About EDC
EDC is Canada's trade finance
agency, providing financing and insurance solutions locally and
around the world to help Canadian companies of any size respond to
international business opportunities. As a profitable Crown
corporation that operates on commercial principles, EDC works
together with private- and public-sector financial institutions to
create greater capacity for Canadian companies to engage in trade
and investment.
For more information about how EDC can help your company, visit
www.edc.ca
SOURCE Export Development Canada