10 Oct 2018

NIB in January–August 2018: steady demand from private sector

NIB has published its interim financial report for the first eight months of the year. The volumes of new lending and disbursements have remained at a high level. The main drivers for the Bank’s lending activity were continued demand for long-term financing from member country corporate borrowers and the municipal sector, as well as from financial intermediaries to support SMEs.

In January–August 2018, NIB agreed new lending deals for an aggregate total of EUR 2,286 million (Jan–Aug 2017: EUR 1,996 million) and disbursed EUR 2,367 million (Jan–Aug 2017: EUR 1,813 million).

One main driver for this increase from last year has been larger investment needs in the private sector in the Nordic–Baltic countries. NIB has disbursed loans to large corporates to finance their investments in new production capacity and R&D.

During the first eight months of 2018, the Bank has also disbursed loans to financial intermediaries for onlending to small and medium sized enterprises and mid-sized corporates in the region.

Another driver of increased demand stems from the need to update public infrastructure, such as water supply and wastewater treatment, energy generation and distribution, as well as the need to renovate and construct public buildings such as hospitals and schools.

NIB reviews all projects it finances and scores them according to their productivity gains and environmental benefits. By the end of August, 88% of all financed projects had been assessed as having a significant positive impact on the productivity and/or the environment of the Bank’s member countries.

The profit for the period amounted to EUR 129 million (Jan–Aug 2017: EUR 160 million). Given the good flows of new deals under preparation, disbursements are expected to continue at the same pace for the rest of 2018.

Interim financial report January–August 2018

The figures are unaudited.