NIB delivers a strong financial result with a record-high mandate fulfilment
During the first six months of 2023, the Nordic Investment Bank (NIB) signed a total of EUR 1,242 million in new lending and disbursed EUR 1,670 million, compared to EUR 2,203 million and EUR 2,142 million respectively in the same period in 2022.
The high demand for NIB lending has allowed the Bank to prioritise high impact projects. During the first half of 2023, new loans were signed to build new wind power capacity and strengthen the electricity distribution networks in the region, for example.
In his commentary on the financial results, NIB President and CEO André Küüsvek addresses the challenging external environment, describing it as a “perfect storm”. Russia’s unjustified war in Ukraine continues, which contributed to inflation, higher interest rates and financial market volatility. At the same time, we are constantly reminded of the escalating climate threats, extreme weather events and biodiversity loss.
“However, despite these dark clouds, there are also some reasons to be optimistic. In particular, policymakers and businesses have not just witnessed the events without taking action. To foster a brighter future, many steps have been taken to support Ukraine and to accelerate the green transition in our region. This is also the area where we are seeing strong demand for NIB’s long-term loans,” says André Küüsvek, NIB President and CEO.
To meet the demand for financing, NIB raised EUR 4.7 billion in new funding in the first half of 2023, including a five-year USD 1.5 billion global benchmark bond with the largest ever final orderbook for NIB of more than USD 4 billion.
The net profit for the period from January to June was strong and amounted to EUR 127 million, compared to EUR 39 million in 2022. The increase in net profit is mainly due to higher net interest income and unrealised profits on financial operations. Earnings from NIB’s core operations increased, and the net interest income for the first six months was EUR 139 million, compared to EUR 104 million in 2022.
“In addition to our strong financial performance, I am very pleased to see NIB’s environmental mandate fulfilment at historic highs for NIB. This proves we are on the right track, and supporting the green transition remains high on our agenda. The productivity mandate fulfilment also remains above target,” says Küüsvek. During the first half of 2023, projects achieving a “good” or “excellent” mandate rating accounted for 99.8% of the total amount of loans disbursed.
The Bank is in a strong financial position as confirmed by our Triple-A rating, which was reaffirmed by both Standard & Poor’s and Moody’s during the spring. NIB’s credit rating, the highest possible from rating agencies, reflects its high asset quality, solid liquidity and capital adequacy, strong balance sheet, and ownership.
Key figures and ratios
| In millions of euro unless otherwise specified | Jan–Jun 2023 | Jan–Jun 2022 | Jan–Dec 2022 |
| Net interest income | 139 | 104 | 219 |
| Profit before net loan losses | 123 | 31 | 136 |
| Net profit | 127 | 39 | 139 |
| Lending disbursed | 1,670 | 2,142 | 3,705 |
| New signed lending | 1,242 | 2,203 | 4,114 |
| % of loans achieving good or above mandate* | 99.8% | 98.0% | 99.2% |
| Lending outstanding | 21,326 | 22,616 | 22,195 |
| Total assets | 39,102 | 39,884 | 39,280 |
| New debt issues | 4,689 | 5,540 | 9,630 |
| Debts evidenced by certificates | 31,022 | 32,898 | 31,595 |
| Total equity | 4,206 | 3,976 | 4,101 |
| Equity/total assets ** | 10.8% | 10.0% | 10.4% |
| Net profit/average equity ** | 6.2% | 1.9% | 3.4% |
| Cost/income ** | 18.5% | 47.6% | 27.9% |
| Number of employees at period end | 237 | 226 | 228 |
* See page 9 of the report for an explanation of mandate fulfilment
** See page 26 of the report ratio definitions
NIB is an international financial institution owned by eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden. The Bank finances private and public projects in and outside the member countries. NIB has the highest possible credit rating, AAA/Aaa, with the leading rating agencies Standard & Poor’s and Moody’s.
For further information, please contact
André Küüsvek, President & CEO, at +358 10 618 001, info@nib.int
Kim Skov Jensen, Vice President & CFO, at +358 10 618 0209, kim.jensen@nib.int
Jukka Ahonen, Senior Director, Head of Communications, at +358 10 618 0295, jukka.ahonen@nib.int