28 Apr 2023
Solid performance in a volatile financial market
During the first three months of 2023, NIB continued to see a strong demand for its lending and disbursements in line with the Bank’s plans. NIB signed a total of EUR 432 million in new lending and disbursed EUR 889 million. The new lending was distributed across different sectors and countries. Earnings continued to improve and net interest income increased by 38% compared to the same quarter in 2022.
NIB has raised EUR 3.8 billion in new funding so far in 2023. In March, NIB priced a five-year USD 1.5 billion global benchmark bond, which attracted one hundred accounts participating, resulting in a final orderbook of more than USD 4 billion, the largest ever for NIB.
On 31 March, the annual meeting of the Board of Governors of NIB approved the Bank’s audited financial statements for 2022 and the dividend payment of EUR 25 million to the Nordic and Baltic member countries.
“Despite financial market turbulence this quarter, NIB remains resilient and our long-term investments consistently bolster the green transition and energy independence in our region. This aligns with our strategic direction and the guidance from our Board of Governors. We financed several new renewable energy projects in our member countries this quarter. These loans enable our customers to grow their business and accelerate the energy transition,” states André Küüsvek, NIB President and CEO.
During the first quarter of 2023, all loans disbursed financed projects that achieved a “good” or “excellent” mandate rating, exceeding the target of 95%.
The net profit for the period January to March amounted to EUR 65 million compared to EUR 21 million in 2022. The increase in net profit was mainly due to higher net interest income that increased by 38% from the same period in 2022 and 19% from the last quarter. During the quarter, the Bank experienced some volatility in gains and losses related to its financial operations due to the increased uncertainty in the financial markets. The net profit on financial operations amounted to EUR 9 million.
The Bank is in a strong financial position as confirmed by our triple-A rating which was reaffirmed by Standard & Poor’s earlier in April. NIB’s credit rating reflects its high asset quality, solid liquidity and capital adequacy, strong balance sheet and ownership.
Q1 Interim Management Statement
|Key figures and ratios|
|In millions of euro unless otherwise specified||Jan-Mar 2023*||Jan-Mar 2022*||Jan-Dec 2022|
|Net interest income||69||50||219|
|Profit before net loan losses||66||15||136|
|New lending signed||432||1,222||4,114|
|% of loans achieving good or above mandate **||100%||100%||99%|
|New debt issues||3,780||4,218||9,630|
|Debts evidenced by certificates||33,894||32,769||31,595|
|Equity/total assets ***||9.9%||10.1%||10.4%|
|Net profit/average equity ***||6.4%||2.1%||3.4%|
|Number of employees at period end||230||220||228|
* Unaudited figures, to be read in conjunction with NIB’s 2022 audited financial statements
** See report page 9 for mandate fulfilment explanation
*** See report page 19 for 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.
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