Financial statement 2007
NIB lending and funding at all-time highs in 2007
The Nordic Investment Bank’s (NIB) lending and funding activities were on the highest level ever in the Bank’s history. Changes in the global market towards the end of the year allowed NIB to reach all-time highs in loan disbursements, up 49% compared to the previous year, and in new borrowing, up 59%.
“NIB expects its lending operations to continue increasing in the coming years. Environmental investments in the protection of the Baltic Sea and Barents Sea regions as well as the energy sector are strong priorities for the Bank’s lending, for which NIB has recently set up new facilities,” says Johnny Åkerholm, NIB’s President and CEO.
Results 2007
The total amount of new loan agreements increased to EUR 2.2 billion. Loan disbursements in 2007 surged to an all-time high of EUR 2.4 billion. The Bank’s portfolio of loans outstanding and guarantees increased by 7% to EUR 12.3 billion at the end of the year.
New borrowing amounted to EUR 4.3 billion, which is the highest amount ever recorded in the Bank’s history. During the year, NIB carried out its largest global benchmark issue in the amount of USD 1.5 billion and its sixth annual 1 billion US dollar deal.
While NIB’s core earnings continued to increase steadily and reached EUR 161 million, the profit fell to EUR 69 million. The decline was due to a negative effect which the increase in credit spreads and long-term interest rates had on the market valuation of the treasury portfolios. The credit quality of the Bank’s various portfolios has remained very good. No credit losses were recognised during the year. The Board of Directors has proposed that EUR 25 million be paid as dividends to the Bank’s member countries.
Lending
By 31 December 2007, NIB had loans outstanding in 38 countries in most of the world’s growth regions. During the year, the Bank concluded 57 new loan agreements for projects in 15 countries. The newly agreed environmental loans in 2007 amounted to EUR 368 million, up 68% year-on-year. Of the number of all the new loan agreements, 40% had a positive environmental impact.
The largest markets for NIB’s lending remained the member countries, where both the total amount of new loan agreements, EUR 1.81 billion, and loan disbursements, EUR 1.76 billion, saw a twofold growth. In the member countries, the focus of NIB’s long-term lending is on energy, environmental, and infrastructure projects.
Outside the membership area, China and Russia were the largest markets for NIB’s loans. Accounting for about half of all new loan agreements in non-member countries, lending to financial intermediaries prevailed and saw an 80% growth outside the membership area.
NIB’s Financial Statements for 2007 are available here
Key figures, EUR million
| 2007 | 2006 | |
| Net interest income | 187 | 179 |
| Core earnings | 161 | 154 |
| Profit | 69 | 137 |
| Loans disbursed | 2,390 | 1,605 |
| Loan agreements | 2,214 | 1,575 |
| Loans outstanding | 12,291 | 11,534 |
| Guarantee commitments | 25 | 25 |
| New debt issues | 4,288 | 2,689 |
| Debts evidenced by certificates | 15,023 | 13,622 |
| Net liquidity | 4,039 | 3,224 |
| Total assets | 19,973 | 17,988 |
| Equity/total assets (%) | 10.2 | 11.2 |
| Profit/average equity (%) | 3.3 | 6.9 |
| Number of employees | 158 | 160 |
NIB is a multilateral 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:
Mr Johnny Åkerholm, President and CEO, at +358 10 618 001,
or Mr Jukka Ahonen, Director of Communications, at +358 10 618 0295, jukka.ahonen@nib.int