20 May 2020
EUR 64.5 million
Industries and services
On 9 April 2020, the Nordic Investment Bank (NIB) published its unaudited interim management statement for the first quarter of 2020. During the three-month period ending 31 March, the COVID-19 pandemic shaped NIB’s business activities and its societal role during this crisis situation.
In March, NIB’s owners invited the Bank to provide support to its Nordic–Baltic member countries and sustainable businesses that are affected by the coronavirus outbreak. NIB will increase its lending to this effect, and has issued its inaugural EUR 1 billion NIB Response Bond dedicated to financing loans for projects that alleviate the social and economic impact of the pandemic. As part of these measures, NIB has already extended loans to the Baltic states.
Loans will also be made available to financial intermediaries for on-lending to small and medium-sized enterprises and directly to larger companies.
In the first quarter of 2020, agreed loans totalled at EUR 1,717 million, and EUR 946 million were disbursed.
Prior to the coronavirus outbreak, NIB’s financial and operating performance was according to plan. This means a lower net interest income compared to last year, mainly due to the low-yield environment.
The rapid spread of the COVID-19 pandemic affected financial markets, which have been experiencing significant movements. These market movements have resulted in unrealised losses on financial instruments NIB is holding to hedge its interest rate risks and in its liquidity portfolio of EUR 130 million. The Bank intends to hold the related financial instruments to maturity, and as they will settle, there will be no long-term adverse impact.
Due to the negative market sentiment, the Bank has also increased its expected loss provision by EUR 24 million, and as a result of the above, NIB recorded net losses of EUR 113 million.
“At this juncture, it is not possible to predict the full business and economic impact of the pandemic on NIB and its customers. However, the Bank is well capitalised and positioned to support its member countries during these difficult times”, writes Henrik Normann, NIB’s President & CEO.
|(in EUR million unless otherwise specified)||Jan-Mar 2020*||Jan-Mar 2019*||Jan-Dec 2019|
|Net interest income||49||54||212|
|Loss/profit before net loan losses||-91||51||183|
|New debt issues||1,666||1,416||4,909|
|Debts evidenced by certificates||27,079||25,240||26,674|
|Number of employees (at the end of the period)||229||225||229|
*Unaudited figures, to be read in conjuction with NIB's 2019 audited financial statements.
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.
For further information, please contact:
Mr Henrik Normann, President & CEO, at +358 10 618 001, firstname.lastname@example.org
Mr Jukka Ahonen, Senior Director, Head of Communications, at +358 10 618 0295, email@example.com