22 Apr 2021

NIB publishes Q1 interim report

On 22 April 2021, the Nordic Investment Bank (NIB) published its unaudited interim management statement for the first quarter of 2021. During the three-month period ending 31 March, NIB agreed a total of EUR 256.8 million (EUR 1,716.9 million in Q1, 2020) in new loans and disbursed EUR 725.3 million (EUR 946.4 million in Q1, 2020). The year-on-year decrease in loans agreed and disbursed was expected after last year's record highs, due to the Bank's response to the Covid-19 crisis.

The Bank is in a strong financial position with solid capital and liquidity ratios. The net profit for the three-month period amounted to EUR 35.1 million, compared to a loss of EUR 112.7 million in the same period in 2020. The loss in 2020 resulted from unrealised losses on financial instruments when the financial markets experienced significant movements at the start of the Covid-19 outbreak. The Bank has maintained its expected credit loss provision at a similar level as at 31 December 2020. There have been no realised loan losses during the year to date.

In March, the Bank joined the European Bank for Reconstruction and Development (EBRD) and the central banks of Estonia (Eesti Pank), Latvia (Latvijas Banka) and Lithuania (Lietuvos Bankas) in a joint effort to develop a regional market for commercial papers. In the same month, the Bank invested in Lithuania’s leading food retailer’s Maxima Grupė inaugural commercial paper issuance.

At its annual meeting on 26 March 2021, the Board of Governors of NIB approved the Bank’s annual report and audited financial statements. The Board also approved the proposal that no dividend will be paid to the Bank’s owner countries for the year 2020. Assuming that the Covid-19 situation improves and the Bank's capital situation allows, it will be considered to pay a higher than normal dividend to member countries in 2022. The Board also expressed its view that NIB would be instrumental for green recovery and digital transformation in the years to come.

“NIB plays an important part in helping member countries to tackle long term challenges such as climate change, sustainable growth, and technological innovation. The Bank’s relevance will only increase in the years to come as governments are focusing largely on green recovery," said Gintarė Skaistė, Minister of Finance of Lithuania and Chair of NIB's Board of Governors. An interview with Gintarė Skaistė can be found on the Bank's website by clicking here.

On 1 April, André Küüsvek assumed office as NIB President and CEO, succeeding Henrik Normann who has retired from the Bank.

The first quarter interim report is available on NIB’s website

Key figures and ratios

(in millions of euro

unless otherwise specified)

Jan-Mar 2021* Jan-Mar 2020* Jan-Dec 2020
Net interest income 51.2 49.0 205.5
Profit/loss before net loan losses 36.1 -90.6 221.4
Net profit/loss 35.1 -112.7 164.7
       
Loans disbursed 725.3 946.4 4,852.8
Loans agreed 256.8 1,716.9 5,666.0
Mandate fulfilment** 100% 100% 98%
       
Lending outstanding 22,194.2 18,643.5 21,554.8
Total assets 37,754.9 34,251.6 35,422.0
New debt issues 3,156.9 1,665.9 7,540.0
Debts evidenced by certificates 31,346.7 27,079.5 29,071.7
Total equity 3,879.5 3,607.3 3,860.8
       
Equity/total assets 10.3% 10.5% 10.9%
Profit/average equity 3.6% n.a 4.4%
Cost/income 27.3% n.a 19.1%
Number of employees (at the end of the period) 231 229 222

*Unaudited figures, to be read in conjunction with NIB’s 2020 audited financial statements.
** See page 8 for mandate fulfilment explanation

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 André Küüsvek, 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