NIB publishes Interim Financial Report January-June 2020
On 27 August, the Nordic Investment Bank (NIB) published its interim financial report for January-June 2020. The Bank’s lending increased significantly year-on-year because of lending to alleviate the effects of the COVID-19 crisis to member countries and sustainable businesses in the region.
“The COVID-19 pandemic has caused a sharp decline in global economic activity, threatening growth and employment also in the Nordic and Baltic countries. The Nordic-Baltic ministers, who are the Governors of NIB, invited the Bank already at the end of March to take swift action to help alleviate the effects of the COVID-19 crisis; thus our mission is more relevant than ever”, says Henrik Normann, NIB president & CEO.
During the six-month period ending 30 June, a total of EUR 3,449 million in new loans were agreed and EUR 2,836 million was disbursed, compared to EUR 1,339 million and EUR 1,484 million respectively in the corresponding period one year ago.
The net profit for January–June was EUR 80 million lower than in the same period last year. The coronavirus outbreak has affected financial markets, causing significant volatility. This has resulted in unrealised losses of EUR 26 million on financial instruments held by NIB to hedge its interest rate risks and in its liquidity portfolio. The Bank intends to hold the related financial instruments to maturity and there will be no long-term adverse impact as they settle. The Bank has also increased its expected credit loss provision by EUR 38 million due to the negative market sentiment.
NIB raised EUR 5 billion in new funding during the first six months of 2020, up from EUR 3 billion in the corresponding period one year ago. In March, NIB issued its first Response Bond, a three-year EUR 1 billion bond, which will finance projects alleviating the social and economic impact of the pandemic in the Bank’s member countries, supporting their recovery process.
In April, the Bank issued a seven-year EUR 500 million NIB Environmental Bond to finance selected projects that benefit the environment and contribute to resilience and climate change mitigation in NIB's member countries.
“It is of the utmost importance that long-term challenges such as climate change shall not be forgotten during this crisis. NIB’s mission is to provide long-term financing to projects that ensure sustainable growth and lasting impact on the productivity and environment of the Nordic-Baltic region”, says Mr Normann.
Key figures and ratios
|Key figures and ratios|
|(in EUR million unless otherwise specified)||Jan-Jun 2020||Jan-Jun 2019||Jan-Dec 2019|
|Net interest income||99||107||212|
|Profit before net loan losses||53||91||183|
|Mandate fulfilment (%)||100%||100%||98%|
|New debt issues||5,047||2,895||4,909|
|Debts evidenced by certificates||29,617||25,598||26,674|
|Equity/total assets (%)||10.3%||11.5%||11.4%|
|Profit/average equity (%)||0.8%||5.2%||5.0%|
|Number of employees at period end||228||229||229|
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.
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