Norræni fjárfestingabankinn - Financial Statement Release

Annual Results 2009

NIB keeps lending at EUR 2 billion, focus on high-mandate projects

The financial markets showed increasing signs of normalisation in 2009.
However, credit supply remained restrained, the real economy continued
adjusting, and output fell in the Nordic-Baltic area. In this environment, the
demand for NIB's loans continued to be strong. 

“As the capital base puts limits on the expansion of our activities, new
disbursements were kept at a lower level than in the two previous years. This
required a higher degree of prioritisation of loan projects in line with our
mandate to support competitiveness and the environment,” says Johnny Åkerholm,
NIB President and CEO. 

All in all, the Bank signed 40 loan agreements in 2009. The disbursement of
loans amounted to EUR 1,954 million (2008: EUR 2,486 million). 

Loans agreed reached EUR 1,417 million (2008: EUR 2,707 million). Of that
amount, 77% was in the Bank's focus sectors—energy; the environment; transport,
logistics and communications; and innovation. 

Environment-related lending accounted for half of agreed loans with projects
supporting the use of renewable energy, energy efficiency, clean technologies,
wastewater treatment and green transport solutions. 

Financial results
Core earnings* increased steadily to EUR 192 million, somewhat above the
outcome of 2008. NIB's profit rose significantly to EUR 324 million. Positive
valuations on financial instruments in the Bank's treasury portfolios
contributed to the profit together with positive adjustments to the Bank's
hedge accounting. 

Impairments to the loan portfolio amounted to EUR 43 million in 2009 (EUR 79
million in 2008). As a consequence of the economic situation, NIB paid
increasing attention to monitoring the loan portfolio in order to identify and
mitigate possible problems among existing borrowers. 

“Loan impairments have been well under control despite the difficult economic
situation in our member countries”, says Johnny Åkerholm. 	 

The Bank's funding plan was fulfilled through the issuance of two benchmark
bonds and a number of smaller public and private placements. The Bank issued
its first EUR 1 billion benchmark bond in April and a USD 1 billion global
benchmark followed in September. 

Outlook
NIB assumes that the economic activity in the member countries will pick up
slightly in 2010 but still remain rather subdued. The financial institutions
within the Bank's member countries will continue to apply tight credit
standards. Projects within the focus sectors are expected to continue to be
subject to tight credit conditions. 
In this environment, NIB anticipates demand for its loans to persist in 2010.
NIB also expects to continue to have good access to funding in the financial
markets. 

Key figures in EUR million unless otherwise noted: See attachment.


For further information, please contact 
Mr Johnny Åkerholm, NIB President and CEO, at +358 10 618 001, info@nib.int
Mr Jukka Ahonen, Director, Head of Communications, at +358 10 618 0295,
jukka.ahonen@nib.int 

Attachments:

financial statement.pdf

nib_financialreport_2009.pdf