20 Feb 2019

NIB in 2018: Record high lending volumes on corporate demand

In 2018, NIB experienced strong demand from corporate borrowers and recorded the highest lending volumes in the Bank’s history. NIB paid out loans totalling EUR 4,047 million. The net profit reached EUR 173 million, which was higher than planned, but lower than in the previous year due to the low interest rate environment. The Bank’s Board of Directors is proposing to pay out EUR 40 million in dividends to the Nordic and Baltic member countries.

“It was a good year for NIB. We have fulfilled our mission, and the level of disbursements was at a record high. The Bank’s overall risk position remains strong, with high credit quality, liquidity and strong capitalisation”, says Henrik Normann, NIB President & CEO.

In 2018, NIB signed 58 loan agreements. A little more than half of the new loans were signed with new borrowers, which increased the Bank’s outreach and diversified the portfolio.

Most of NIB’s lending in 2018 was allocated to projects that contribute to productivity gains, driven by strong demand from corporate borrowers for long-term financing.

The Bank financed certified sustainable and energy-efficient buildings, road construction, ports, R&D in telecommunications and municipal infrastructure, such as schools and hospitals. In the private sector, loans were provided to finance digitalisation, production capacity and acquisitions. NIB also agreed loans with eleven financial intermediaries in its member countries to channel funding onwards to small and medium-sized enterprises, enabling the Bank to reach out to an important segment of the economy.

Projects rated “good” or “excellent” for their potential to improve productivity and the environment amounted to 91% of the total amount of lending.

In 2018, NIB raised EUR 6.6 billion in new funding through 64 transactions. Furthermore, the Bank issued one seven-year EUR 500 million NIB Environmental Bond (NEB), increasing the total amount of NEBs to EUR 3.5 billion by the end of the year. NIB remained the biggest Nordic environmental bond issuer.

The positive macroeconomic sentiment, coupled with the expectation that real investments continue to pick up in the Nordic–Baltic region, will keep up good demand for NIB’s long-term financing. As NIB’s disbursements were higher than anticipated during the last quarter of 2018, the Bank aims at somewhat lower volumes in 2019. There will be particular focus on efforts to enhance environmental lending. NIB expects the net profit for the year 2019 to remain more or less unchanged from 2018.

Click here to visit Our year in brief 2018

Download the Financial Report 2018 (PDF)

Key figures and ratios

in millions of euro, unless otherwise specified

   
  2018 2017
Net interest income 223 238
Net profit 173 211
Loans disbursed 4,047 3,147
Loans agreed 4,330 3,812
Loans outstanding 19,065 17,232
New debt issues 6,620 5,943
Debts evidenced by certificates 25,651 24,000
Total assets 31,710 29,953
Equity/total assets 11.3% 11.5%

The Nordic Investment Bank (NIB) is the common international financial institution of the eight Nordic and Baltic countries. NIB provides long-term financing for projects that strengthen competitiveness and enhance the environment. 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 Henrik Normann, President & CEO, at +358 10 618 001, info@nib.int

Mr Jukka Ahonen, Senior Director, Head of Communications, at +358 10 618 0295, jukka.ahonen@nib.int