The
year 2005 was positive for the Nordic Investment Bank (NIB). The Bank’s lending
expanded at a rapid pace and loan disbursements were higher than in any
previous year.
NIB’s
net interest income rose to EUR 169 million in 2005, up from EUR 163 million in
2004. The bank’s profit for 2005 amounted to EUR 165 million, down from EUR 172
million the year before. The difference is due to lower profits from market
revaluation of the Bank’s trading portfolio. The Board of Directors proposes
that EUR 55 million, the same amount as in the previous year, be paid as
dividends to the Bank’s member countries.
Disbursements
of new loans reached EUR 2,092 million (2004: EUR 1,348 million) and new loan
agreements amounted to EUR 2,616 million (1,657). At the end of the year, loans
outstanding rose by 14% year-on-year to EUR 11,717 million (10,279).
NIB’s
borrowing outstanding amounted to EUR 14,456 million (12,355) at the end of
2005. The Bank successfully launched its fourth USD 1 billion global benchmark
issue.
The
quality of the Bank’s portfolios, taken as a whole, continues to be very high.
The net effect of credit losses and recoveries was positive at EUR 0.1 million.
Three
new member countries
As
of 1 January 2005, Estonia, Latvia and Lithuania
joined NIB as new members. The membership enlargement has
also involved the adoption of new constituent documents and the establishment
of a new governing body, the Board of Governors, in which all eight member
countries—Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and
Sweden—are represented by their ministers of finance and economy.
Lending to manufacturing industry
and infrastructure
The
volume of lending in the member countries reached an all-time high: NIB entered
into 55 loan agreements with the total amount of EUR 1,653 million, up from EUR
1,165 million the year before.
Manufacturing
industry accounted for more than one third and the energy sector for more than
one fourth of loans agreed in the member countries during the year. NIB
provided loans to environment-friendly and energy-saving investments, for
instance in the pulp and paper industry in Finland and Sweden, and a number of
cross-border corporate acquisitions. Among the loans to the energy sector, NIB
financed the construction of the first power link between the electricity
networks in the Baltic countries and the Nordic region.
Outside
the membership area, NIB entered into 29 new loan agreements: EUR 545 million
went to 15 individual projects and EUR 417 million to 14 loan programmed in
cooperation with financial and other intermediaries. At year-end 2005, the Bank had
loans outstanding in 29 non-member countries. Lending outside the membership area was mostly focused on financing
of infrastructure investments, mainly within the sectors of energy, transport
and communications. During the year, the Bank had particularly active lending
in Poland, China, Vietnam and Brazil.
Environmental projects
Financing
environmental investment is one of the cornerstones of NIB’s lending
operations. During the year, 26 new environmental loans for a total of EUR 336
million were granted. Of the loans disbursed during the period, environmental
loans accounted for 17%. In financing environmental projects in the areas
adjacent to the member countries, the Bank has assumed an active role in the
Northern Dimension Environmental Partnership (NDEP). As lead bank, NIB
coordinated the financial structuring of the first completed NDEP project, the
construction of the Southwest Wastewater Treatment Plant in St. Petersburg,
Russia. The plant was inaugurated in September 2005.
New President and CEO
On 1 April 2005, Johnny Åkerholm (Finland) took up
the position of President
and Chief Executive Officer. He succeeded Jón Sigurðsson (Iceland), who had
been NIB’s President and CEO since April 1994.
NIB’s Financial Statements for
2005 are available on http://annual.nib.int
Key figures
|
(in EUR
million)
|
2005
|
2004
|
|
Net
interest income
|
169
|
163
|
|
Profit
|
165
|
172
|
|
Loans
disbursed
|
2,092
|
1,348
|
|
Loan
agreements
|
2,616
|
1,657
|
|
Loans
outstanding
|
11,717
|
10,279
|
|
New debt
issues
|
2,059
|
1,808
|
|
Debts
evidenced by certificates
|
14,456
|
12,355
|
|
Net
liquidity
|
3,101
|
2,876
|
|
Total
assets
|
18,178
|
16,363
|
|
Equity/total
assets (%)
|
10.7
|
10.9
|
|
Profit/Average
equity (%)
|
8.9
|
10.1
|
|
|
|
|
|
Number of
employees
|
150
|
147
|
NIB
is a multilateral 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 call Mr Johnny Åkerholm, President and CEO, on +358
9 18001,
or
Ms Jamima Löfström, Information Manager, on +358 9 180 0291 or +358 40 581
7208.
www.nib.int
