NIB in 2020: Response lending to alleviate pandemic fallout

In 2020, NIB paid out EUR 4,853 million in loans (EUR 2,676 million in 2019). Of this, EUR 1,470 million were Response Loans aimed at alleviating the social and economic consequences of the COVID-19 pandemic in the Bank’s member countries. The net profit for the year was EUR 165 million (EUR 182 million in 2019).

In 2020, the coronavirus outbreak affected every part of the world, and the Nordic-Baltic region was no exception. In addition to the global health crisis, COVID-19 also caused a severe decline in economic activity.

“On 27 March 2020, NIB’s Nordic and Baltic owner countries urged the Bank to support economic activity and help companies deal with the serious consequences of the coronavirus pandemic. In times of economic crisis, NIB can take on such a stabilising role. This resulted in a substantial increase in lending activity compared to previous years,” says Henrik Normann, NIB President and CEO.

Following the outbreak of the pandemic, the global operating environment rapidly deteriorated, and as a result, the Bank increased its expected credit loss provisions. However, no loan losses materialised. The net profit for the year was EUR 165 million (EUR 182 million in 2019).

The Board of Directors proposes to the Board of Governors that no dividend is to be paid to the Bank’s member countries for the year 2020. This decision is part of the owner countries’ will to maximise the Bank’s response to the ongoing crisis and to show strong support for the Bank’s activities. At the same time, the Board also recognises that NIB is a dividend-paying international financial institution. Assuming that the coronavirus situation improves, and the Bank’s capital position remains strong, the payment of a higher-than-normal dividend to member countries in 2022 will be considered. While the pandemic has gripped the headlines, it is important not to lose focus on the broader sustainability agenda.

“We recognise that other long-term challenges, such as climate change, remain pressing issues. Going forward, the Board is clear on NIB’s role in promoting a sustainable recovery from the crisis. We will continue to work closely with our member countries and our clients to help restore the path to a resilient, low-carbon society,” writes Esther Finnbogadóttir, Chair of the Board of Directors of NIB.

NIB’s mission is to provide long-term loans for projects that improve productivity and benefit the environment. During the year, NIB financed several projects in its member country area, including clean transport, green buildings, renewable energy generation, water management, R&D and healthcare.

In 2020, NIB raised EUR 7.5 billion in new funding through 38 bond transactions. Of this, NIB issued a three-year, EUR 1 billion Response Bond in March, and another three-year, SEK 4 billion (EUR 366 million) Response Bond in April.

The Board thanks the outgoing President Henrik Normann in its report. “He has led a transformation of NIB built on sound banking principles, while continuing to develop the Bank’s position in the forefront of sustainable financing, thus further expanding NIB’s relevance as a policy tool for its owners.”

The Board welcomes André Küüsvek, who will take up the presidency on 1 April 2021.

To learn more about NIB’s activities in 2020, please visit Our year. Download the NIB Financial Report 2020

Key figures and ratios

in EUR million, unless otherwise specified	2020	2019
Net interest income	206	212
Net profit	165	182
Loans disbursed	4,853	2,676
Loans agreed	5,666	3,316
Loans outstanding	21,555	18,799
New debt issues	7,540	4,909
Debts evidenced by certificates	29,072	26,674
Total assets	35,422	32,653
Equity/total assets (%)	10.9%	11.4%

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