Q3 Interim Management Statement
Summary
During the first nine months of 2024, NIB delivered net profit of EUR 198 million (EUR 195 million in the same period in 2023) and disbursed EUR 2.4 billion (EUR 2.0 billion). NIB’s new signed lending increased to EUR 3.2 billion compared to EUR 1.6 billion the same period last year.
By the end of September, the Bank had raised EUR 8.2 billion in new funding in the first three quarters of 2024, very close to the amount of EUR 8.5-9.5 billion in the funding plan for the full year.
During the first nine months of 2024, 99.9% of loans disbursed financed projects that achieved a “good” or “excellent” mandate rating, exceeding the target of 95%.
In August, NIB released its updated NIB Environmental Bond (NEB) framework. Following this, in September, the Bank issued a five-year EUR 750 million NEB. The transaction was NIB’s largest green bond ever, evidencing the global investor community’s strong support for the Bank.
Q2 Interim Financial Report
During the first half of 2024, NIB signed EUR 2,642 million in new lending and disbursed EUR 1,896 million, compared to EUR 1,241 million and EUR 1,670 million respectively in the same period in 2023.
By the end of June, the Bank had raised EUR 6.4 billion in new funding. This corresponds to approximately 70% of the expected funding need for the year.
The net profit for the period increased by 12.3%, from EUR 127 million to EUR 143 million. The increase in net profit is mainly due to higher net interest income.
In line with the guidance from Board of Governors, NIB reviewed its sustainability policy. Key changes include the removal of restrictions on dual-use equipment financing to support regional resilience as well as an enhanced focus on nature and biodiversity, aligning the policy with the Bank’s Climate Strategy.
Q1 Interim Management Statement
Summary
During the first three months of 2024, NIB signed close to EUR 1 billion in new lending and disbursed EUR 643 million. The lending was distributed across various sectors and countries, including the Bank’s first disbursements to InvestEU loans.
During January–March, NIB raised EUR 4 billion in new funding. On 21 February, the Bank priced a five-year USD 1.5 billion global benchmark bond, its first USD benchmark of the year. The issue had a final orderbook of more than USD 4.5 billion, the largest ever for NIB.
The Bank’s net profit increased by 26% from EUR 65 million to EUR 82 million, compared to the same period in 2023. The increase in net profit is mainly due to higher net interest income.
On 22 March, NIB’s Board of Governors met in Tallinn – this was the first physical meeting in over ten years. The Governors approved the Bank’s audited financial statements and the dividend payment of EUR 63 million to the Nordic and Baltic member countries, as well as issued a statement inviting NIB to maximise its contribution to climate and nature, productivity and innovation, and the security and resilience of the Nordic-Baltic region.
“The message from our owners was clear. Nordic and Baltic countries are stronger together, and NIB’s mission, given by the Bank’s owner countries, remains valid. With our shared commitment, we can navigate these uncertain times, and with NIB’s long-term lending, we are continuing to work towards a more sustainable future together with our clients,” says André Küüsvek, NIB President and CEO.
NIB Annual Report 2023
Summary
In 2023, NIB saw a continued demand for its long-term lending, enabling the Bank to prioritise projects with high impact and additionality.
During the year, NIB opened new office in Riga to enhance its presence in the Baltics and increase its lending to private sector companies in the region.
NIB launched its Climate Strategy which commits the Bank to tangible, science-based targets, reducing greenhouse gas emissions through our financing activities and operations. By setting NIB’s own climate goals, the Bank is even better placed to support its member countries’ decarbonisation efforts.
In 2023, the Board of Directors approved NIB’s long-term targets that will guide the Bank’s operations by 2030 and beyond. These include maintaining a strong financial position, achieving net zero by 2050, and fostering leadership, engagement, and diversity.
The net profit increased by 80% from EUR 139 million in 2022 to EUR 251 million in 2023 as the Bank recorded its highest ever net interest income from a solid loan portfolio and treasury activities. NIB’s Board of Directors is proposing to distribute EUR 63 million in dividends to the Bank’s Nordic and Baltic member countries.
Message from the President and CEO
“During the year, we saw our owners, customers and investors concentrating even more efforts on a green and just transition. Working with you—our stakeholders—allowed NIB to sharpen the tools that will speed up our journey towards a sustainable future,” says André Küüsvek, NIB President and CEO.
Watch his message and read his thoughts on how we are building the future together.
Lending in 2023
A large share of loan payments in 2023 went to the energy sector facilitating decarbonisation as well as research and development investments in NIB’s member countries. Almost all (99.8%) disbursements were rated to have a “good” or “excellent” impact on productivity and/or the environment.
EUR 3.4 billion lending disbursed
99.8% mandate fulfilment
152,500 tonnes of net CO2e reduced or avoided
Loans disbursed in 2023, by economic category
%, based on disbursed loans, excluding labelled bond investments
Funding in 2023
In 2023, NIB raised new funding with a nominal value of EUR 7.2 billion through 63 transactions. This is a decrease compared to the previous year’s record EUR 9.6 billion. The Bank returned to the New Zealand Kauri market after more than two years of absence and was elected as Kauri Issuer of the year.
EUR 7.2 billion raised in new funding
EUR 757 million in NEB issuance
63 transactions in 11 currencies
“Year 2023 marked a record year of NEB eligible projects disbursed. This shows the commitment from our customers to NIB’s mandate of financing projects benefitting the environment,” says Kim Skov Jensen, CFO at NIB.
Closer to the stakeholders
In 2023, NIB delivered strong results across all strategy pillars, for example, by increasing climate-related financing activities, developing its product offering, building new institutional partnerships, and increasing activity in underserved markets.
Climate strategy launched
Regional hub in Riga
Long-term targets approved
“Russia’s war in Ukraine and geopolitical events have brought the Nordic–Baltic region closer together. Concerns about energy security and supply chains have increased. They clearly point to the need to accelerate the green transition and to improve productivity to make the region more resilient to shocks. There is a need for new solutions that support both the individual economies and the whole region. NIB is well placed to support these goals with its sustainable finance,” says Ole Hovland Chair of the Board of Directors of NIB.
Contacts
Jens Hellerup
Senior Director
Head of Funding & Investor Relations
+358 10 618 0340
Luca De Lorenzo
Senior Director
Head of Sustainability & Mandate
+358 10 618 0297
Jukka Ahonen
Senior Director
Head of Communications
+358 10 618 0295