NIB’s third quarter results: Strong earnings and focus on green transition
During the first nine months of 2023, the Nordic Investment Bank (NIB) delivered net profits of EUR 195 million (EUR 84 million in the same period in 2022) and disbursed EUR 2,050 million (EUR 2,883 million).
During the quarter, new loans were signed to finance marine decarbonisation and new renewable energy capacity and to strengthen the electricity distribution networks in the region, for example.
NIB continued to prioritise high impact projects. During the first nine months of 2023, projects achieving a “good” or “excellent” mandate rating accounted for 99.8% of the total amount of loans disbursed thereby exceeding the target of 95.0%. The focus on the green transition is evident in the environmental mandate result, the share of which is at historic highs for NIB. The productivity mandate fulfilment also remains above target.
In August, NIB strengthened its Baltic presence with a new office in Riga. The new office brings NIB closer to its Baltic stakeholders, supporting the Bank’s strategic objectives to further enhance the outreach in the region.
“It is of the utmost importance for NIB to identify the priorities of our member countries and how we can support them. We have held several stakeholder meetings and seminars to explore this after the summer. This continuous dialogue is particularly valuable, as we are facing large geopolitical challenges across the world that also affect our region. As an international financial institution, we play a stabilising role in our region while supporting our customers,” says André Küüsvek, NIB President and CEO.
To meet the demand for its financing, NIB has raised EUR 6.7 billion in new funding in the first nine months of 2023, including two global benchmark bonds in USD with large orderbooks and in September NIB issued a SEK 2 billion NIB Environmental Bond.
The net profit for the period from January to September increased by EUR 111 million compared to the same period in 2022. The increase is driven by higher core earnings in the form of net interest income and unrealised profits on financial operations. NIB’s net loan losses continue to reflect a strong balance sheet with good asset quality.
Key figures and ratios
| In millions of euro unless otherwise specified | Jan–Sep 2023* | Jan–Sep 2022* | YoY % change | Jan–Dec 2022 |
| Net interest income | 216 | 162 | 33.7% | 219 |
| Profit before net loan losses | 193 | 76 | 152.3% | 136 |
| Net profit | 195 | 84 | 131.5% | 139 |
| Lending disbursed | 2,050 | 2,883 | -28.9% | 3,705 |
| New signed lending | 1,637 | 2,613 | -37.3% | 4,114 |
| % of loans achieving good or above mandate** | 99.8% | 98.8% | 1.0% | 99.2% |
| Lending outstanding | 21,534 | 22,608 | -4.8% | 22,195 |
| Total assets | 40,238 | 41,490 | -3.0% | 39,280 |
| New debt issues | 6,741 | 8,070 | -16.5% | 9,630 |
| Debts evidenced by certificates | 32,049 | 33,019 | -2.9% | 31,595 |
| Total equity | 4,281 | 4,022 | 6.4% | 4,101 |
| Equity/total assets *** | 10.6% | 9.7% | 9.7% | 10.4% |
| Net profit/average equity *** | 6.2% | 2.8% | 122.8% | 3.4% |
| Cost/income *** | 17.3% | 33.8% | -48.9% | 27.9% |
| Number of employees at period end | 245 | 228 | 7.5% | 228 |
* Unaudited figures, to be read in conjunction with NIB's 2022 audited financial statements
** See page 9 of the report for an explanation of mandate fulfilment
*** See page 19 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