Interest-rate risk is the risk that fair value or future cash flows will fluctuate due to changes in market interest rates. Under the Group’s financial policy, interest-rate risk is not to be hedged.
The table below, “Sensitivity analysis for market risk”, presents the effects of changes in market interest rates.
Sensitivity analysis for market risk
The sensitivity analysis for currency risk shows the Group’s sensitivity to a 10% increase or decrease respectively in the exchange rate for SEK against the most significant foreign currencies. For transaction exposure, the table shows how the Group’s earnings after tax would have been affected by a change in the exchange rate. This also includes outstanding monetary assets and liabilities in foreign currency on the closing day, including loans between Group companies where the currency effect impacts the Group’s income statement. For translation exposure, the table shows how the Group’s earnings after tax and equity would have been affected by a change in the exchange rate.
The sensitivity analysis for interest-rate risk shows the Group’s sensitivity to a 1% increase in the market interest rate. The interest-rate sensitivity shows the effect on earnings after tax of a change in the market interest rate, as regards both interest income and expense. Since the Group does not report changes in value in other comprehensive income or equity, there is a corresponding effect on equity.
2018 Effect on profit/loss
|18-12-31 Effect on shareholders equity||2017 Effect on profit/loss||
17-12-31 Effect on share-holders equity