Comments on financial figures

NIB's financial figures January–August 2012

The sovereign debt crisis in the euro area continues to be the main concern for the global financial markets. High uncertainty negatively affects current economic and investment activity, and dampens their prospects in the euro area as well as in the Bank’s member area.

As of August 2012, the Bank realigned its lending operations into new sectoral divisions and streamlined its organisation to improve operational efficiency. The origination of loans and management of client relationships is now being handled by five industry groups: Financial Intermediaries & SMEs, Energy & Environment, Infrastructure & Telecom, Heavy Industry & Mechanical Engineering, and Consumer Goods & Services.

These changes are also aimed to further integrate mandate considerations in the Lending department that now includes a unit dealing with rating potential loan-takers’ compliance with the Bank’s mandate.

NIB’s operational results for January–August 2012 in terms of profit amounted to EUR 162 million, which was EUR 38 million higher compared to the same period a year ago. The profit increased on the basis of a higher net interest income and due to positive valuations on financial instruments in the Treasury portfolios.

During the period, NIB’s lending activities continued on a steady path. The total amount of loans outstanding increased to EUR 14.8 billion, compared to EUR 13.6 billion on end-August a year before. The amount of loans disbursed during the period increased to EUR 1.2 billion, (EUR 973 million in January-August 2011). Loans were provided for projects within the sectors of power generation and supply, renewable energy, sustainable transport infrastructure, research and development and in other sectors. Loan impairment charge for the period amounted to EUR 23.2 million*.

During the first eight months of the year, NIB closed twenty funding transactions, totalling EUR 2.8 billion. In late January, NIB launched a 5-year global USD 1.25 billion benchmark issue. In August, NIB issued its second NIB Environmental Bond, a 20-year security, totalling SEK 500 million. The bond was issued as a private placement addressed towards the Nordic market.

Henrik Normann
President & CEO

* Due to increased uncertainty in the economic environment, NIB has increased its provisions for impairments, even though the Bank has no realised credit losses for the period.

Links

Financial information January-August 2012 (unaudited)
Financial reports