OTTAWA, March 6, 2013 /CNW/ - Overall demand for Export Development
Canada's (EDC) services from Canadian exporters and investors tapered
off from last year's record highs. Still, the corporation saw demand
rise in key areas of its business.
"EDC's overall results reflect the low export growth that Canada
experienced in 2012 coupled with increased commercial financial
capacity being available for Canadian companies," said Stephen Poloz,
President and CEO of EDC. "The increasing financial market strength is
a good news story for the Canadian economy, and for Canadian
A core indicator by which EDC measures its operational success is its
Net Promoter Score (NPS), which assesses the degree of EDC's customer
satisfaction and loyalty. The NPS is determined by collecting data on
how well EDC is meeting the needs of Canadian exporters and investors
that use its services, with a focus on key indicators related to
referrals, loyalty and retention.
In 2012, EDC's NPS score was 72 (up from 71.2 in 2011), which places EDC
well above most business-to-business financial institutions and
demonstrates that the majority of customers would be likely to refer
EDC to partners and associates.
EDC also measures its operational success through the revenues it earns
for its products and services. EDC earned more than $1.2 billion in
revenue from its loans, investments, and loan guarantee fees in 2012
(up from $1.1 billion in 2011). On the insurance side, EDC earned $196
million in premiums and insurance guarantee fees (down from $234
million in 2011) and paid out $358 million in claims, in contrast to
$55 million in 2011. The increase in claims was mainly in our political
risk insurance program due to turmoil in North Africa and the Middle
"We were especially pleased to see that Canadian exporters are
continuing to grow their foreign investments and taking on more
business in emerging markets that required financing, and that EDC was
able to help them do more of it in 2012," said Mr. Poloz. "This trend
also holds true for SME exporters, who used EDC's services to do even
more export business in 2012 despite counting fewer of them as
customers this year. At 78 per cent of EDC's customer base, they
remain a critical part of Canada's export growth potential, and an
important priority for EDC."
Key Performance and Financial Results
Overall, EDC reported that more than 7,400 Canadian exporters used EDC
services to facilitate $87 billion of their international business
activities in 2012, compared to the record high of $102.5 billion in
By business line, EDC customers used almost $54 billion of credit
insurance to protect their international sales ($63 billion in 2011),
$14.6 billion in financing ($14.6 billion in 2011), more than $9.2
billion in financial institutions insurance ($13.9 billion in 2011),
nearly $6.6 billion in bonding ($8.2 billion in 2011), and more than
$2.8 billion in political risk insurance ($2.8 billion in 2011) to help
protect their foreign investments.
EDC's customers signed 892 financing transactions with a value of $14.6
billion, consistent with 2011, with 90 per cent of these transactions
undertaken in partnership with private-sector financial institutions.
More than 5,700 Canadian companies insured over $72 billion in export
contracts with EDC, covering nearly 75,000 buyers in nearly 190 foreign
A key area of mandate focus, providing Canadian companies with a variety
of financial and insurance services that help them develop, protect
and/or grow their foreign operations, increased by 12 per cent in 2012,
reaching nearly $6.6 billion.
Lending that facilitated Canadian business in emerging markets reached
$4.4 billion in 2012, a 30 per cent increase.
One of EDC's operating principles is a partnership-preferred philosophy,
whereby it seeks to collaborate with private-sector financial
institutions to share risk and create greater capacity for Canadian
trade transactions. Partnership business remained relatively stable
compared to its 4-year average, declining to approximately $36 billion
in 2012 from a record high of nearly $43 billion last year.
Under EDC's temporary domestic powers, EDC provided $2.2 billion in
commercial solutions in Canada for 316 Canadian exporting companies in
2012; including $1.7 billion in direct financing, more than $238
million in domestic bonding and $283 million in domestic credit
insurance. We continued to participate as a reinsurer to private
insurers, bringing additional capacity to the market for more than 233
small Canadian companies. This brings the total amount of business
facilitated by EDC in Canada to $11.2 billion since March 2009, working
with 819 Canadian exporting companies.
Overall, EDC's 2012 financial results were virtually a repeat of 2011
with income of $943 million when excluding the impact of EDC's
provision for credit losses and claims-related expenses. After taking
into account these two items, EDC finished the year with net income of
$1.3 billion, an increase of $676 million over 2011. EDC recorded
reversals of provision for credit losses and claims-related recoveries
of $378 million in 2012, as opposed to a provision charge and
claims-related expenses totaling $372 million in 2011.
EDC's Board of Directors approved the payment of a $500 million dividend
to the Government of Canada during the 2012 calendar year based on the
2011 results. 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 forecast needs. Dividends paid by
EDC to the Government of Canada now total $1.57 billion.
All figures are CAD unless otherwise noted.
EDC is Canada's export credit agency, offering innovative commercial
solutions to help Canadian exporters and investors expand their
international business. EDC's knowledge and partnerships are used by
more than 7,400 Canadian companies and their global customers in nearly
190 markets worldwide each year. EDC is financially self-sustaining and
a recognized leader in financial reporting and economic analysis.
SOURCE: Export Development Canada
For further information:
Export Development Canada
Tel: (613) 598-2904