Financial Statement 2001
Growth of new lending-focus on environment and energy
The Nordic Investment Bank (NIB) had a successful year in 2001. Net interest income rose to EUR 147 million, compared with EUR 143 million in 2000. The annual profit amounted to EUR 131 million, compared with EUR 130 million in 2000.
New lending increased sharply, amounting to EUR 1,661 million. Loans outstanding at year-end rose to EUR 10,067 million. The Bank’s borrowing in capital markets during the year equalled EUR 2,099 million. NIB bonds outstanding at year-end totalled EUR 12,298 million. Total assets at year-end amounted to EUR 15,024 million. The Board of Directors proposes that a dividend of EUR 39 million be paid for 2001 to the Bank’s owners, the Nordic countries. This is the same amount as for 2000.
The Bank’s annual accounts are drawn up in accordance with the International Accounting Standards (IAS). As from 2001 a new standard, IAS 39, applies to the treatment of financial instruments.
The credit quality of the Bank’s lending portfolio and of its investment portfolios continued to be considered very good on the whole, despite the cyclical downturn. In 2001 the Bank experienced a loss of EUR 3.1 million in respect of one transaction, for which a loss provision had already been made in the accounts of year 2000. Provisions for anticipated loan losses in the amount of EUR 0.4 million were made during 2001.
During the year the Bank’s owners approved a change in the Bank’s statutes, proposed by the Board of Directors, increasing its ordinary lending capacity from EUR 10 billion to slightly more than EUR 12 billion.
During the year NIB participated in financing of over 60 major investment projects and credit programmes in the Nordic countries. A large proportion of the loans related to cross-border company acquisitions and new company establishments. The manufacturing industry remains the largest sector where the Bank’s Nordic lending is concerned. In the energy sector, loans were granted for investments in power production, distribution networks, district heating and biofuel facilities.
As regards NIB’s international lending, there was continuing strong demand for new loans to the telecommunications sector. The transport sector also grew in importance. At present NIB has loans outstanding in more than 30 countries outside the Nordic area.
Environmental project finance
Environmental projects have high priority in the Bank’s operations, and during the year NIB participated in the financing of several investments concerned with environmental improvements. At year-end NIB’s environmental project exposure totalled EUR 1.6 billion, with loans outstanding to more than 200 Nordic and international environmental projects.
The Bank’s operations in the neighbouring regions to the Nordic countries, and especially in the Baltic Sea and Barents regions, are now focusing on environmental projects, mainly to reduce cross-border water and air pollution.
During the second half of the year, NIB joined with the European Commission and other international financial institutions in establishing the Northern Dimension Environmental Partnership, NDEP, a forum aimed at coordinating and reinforcing the funding of environmental investments, above all in the Baltic Sea and Barents regions.
During the spring the Bank granted a credit line of EUR 35 million for the south-western wastewater purification plant in St. Petersburg, where NIB is the lead bank. In July the Bank signed an agreement with the Russian Finance Ministry for a loan of USD 13 million to finance a water and sewerage project in Kaliningrad. These processing plants have a supremely important bearing on the marine environment of the Baltic Sea.
In December 2001 NIB signed an agreement for a loan of USD 30 million to the Pechenga Nickel smelting plant in the Kola Peninsula, for one of the most important environmental investments in Northern Europe at present. This project is expected to lead to a considerable reduction of sulphur dioxide emissions in the northernmost parts of Norway, Sweden and Finland, as well as Russia.
NIB’s Annual Report 2001 is available here (PDF).
Key figures for 2001
| (in EUR million) | 2001 | 2000 |
| Net interest income | 147 | 143 |
| Profit | 131 | 130 |
| Loans disbursed | 1,661 | 1,101 |
| Loans agreed | 1,795 | 1,026 |
| New debt issues | 2,099 | 1,865 |
| Loans outstanding | 10,067 | 9,288 |
| Debts evidenced by certificates | 12,298 | 11,326 |
| Net liquidity | 2,641 | 2,913 |
| Total assets | 15,024 | 13,850 |
| Number of employees | 137 | 129 |