1、NIB Financial Report 2019 REPORT OF THE BOARD OF DIRECTORS PROPOSAL BY THE BOARD OF DIRECTORS OPERATING AND FINANCIAL REVIEW AUDITORS REPORT FINANCIAL STATEMENTS STATEMENT BY THE CONTROL COMMITTEE 2 NIB FINANCIAL REPORT 2019 3 Report of the Board of Directors 13 Operating and financial review 18 IFR

2、S Financial statements 18 Statement of comprehensive income 19 Statement of financial position 21 Changes in equity 22 Cash flow statement 24 Notes to the financial statements 24 Note 1: Accounting policies 33 Note 2: Risk management 50 Note 3: Segment information 57 Note 4: Net interest income 57 N

3、ote 5: Commission income and fees received 57 Note 6: Net profit on financial operations 58 Note 7: Personnel expenses Contents 60 Note 8: Other administrative expenses 60 Note 9: Net loan losses 60 Note 10: Expected credit loss 63 Note 11: Debt securities 63 Note 12: Loans outstanding and guarantee

4、 commitments 66 Note 13: Tangible assets and intangible assets 68 Note 14: Depreciation 68 Note 15: Other assets 69 Note 16: Debts evidenced by certificates and swaps 70 Note 17: Other liabilities 71 Note 18: Capitalisation and reserves 74 Note 19: Collateral and commitments 75 Note 20: Fair value o

5、f financial instruments 79 Note 21: Maturity profile of financial assets and liabilities 81 Note 22: Interest rate risk 85 Note 23: Currency risk 89 Note 24: Derivatives held for risk management and hedge accounting 91 Note 25: Related party disclosures 92 Note 26: Cash flow statement 92 Note 27: Ex

6、change rates 93 Note 28: Post balance sheet events 94 Proposal by the Board of Directors 95 Auditors report 101 Statement by the Control Committee Navigate by clicking the headings Click NIB logo to navigate to the contents page 3 NIB FINANCIAL REPORT 2019 REPORT OF THE BOARD OF DIRECTORS PROPOSAL B

7、Y THE BOARD OF DIRECTORS OPERATING AND FINANCIAL REVIEW AUDITORS REPORT FINANCIAL STATEMENTS STATEMENT BY THE CONTROL COMMITTEE Report of the Board of Directors SUMMARY In 2019, sustainable finance was higher up on the global agenda than ever before. While the debate is mainly focusing on the climat

8、e, there is a growing understanding that, on top of environmental aspects, economic and social elements need to be taken into account to advance the transition to a low-carbon future. This is also the approach of the Nordic Investment Bank. NIB provides long-term loans to projects that improve produ

9、ctivity and benefit the environment. This mission was given to the Bank by its owner countries to contribute to a sustainable and prosperous NordicBaltic region. The mission fulfilment was at a record high in 2019, with 98% of agreed loans assessed to have a “good” or “excellent” impact in at least

10、one of the two mandates. As anticipated, NIBs lending volumes in 2019 were lower than in the record year of 2018. The Bank is well capitalised, but also due to the statutory gearing limit1, lending growth was moderate. The Bank agreed 55 loans and invested in nine green bonds, altogether amounting t

11、o EUR 3,316 million (compared to EUR 4,330 million in 2018). Disbursements were EUR 2,676 million (EUR 4,047 million in 2018). The Bank increased its share of environmental lending. The net profit for the year was EUR 182 million. The Board of Directors proposes to the Board of Governors that EUR 45

12、 million be paid in dividends to the Banks member countries for the year 2019. With a strong financial result, the Bank can fulfil its mission best and is able to continue providing long-term funding for projects that support sustainable growth. NIB has long experience in the field of sustainable fi

13、nance. To further strengthen the Banks ability to promote the transition to a sustainable economy, NIB will continue to develop its own frameworks and analysis of environmental, social and governance (ESG) opportunities and risks. NIB also needs to ensure that it acts accordingly in its own operatio

14、ns. As an immediate step, the Bank has decided to become a carbon-neutral organisation and to offset its CO2 emissions retrospectively from 2018. In 2019, NIB signed up to the Principles for Responsible Investment (PRI), the Principles for Responsible Banking (PRB) and the Task Force on Climate-rela

15、ted Financial Disclosures (TCFD). The Bank is involved in several initiatives to develop sustainable finance. NIB continued as chair of the Green Bond Principles Executive Committee and joined the Network for Greening the Financial System as an observer. NIB also participated in the consultations of

16、 the EU Technical Expert Group on Sustainable Finance. In 2019, NIB issued its inaugural NordicBaltic Blue Bond. The SEK 2 billion (EUR 193 million) bond was issued under the NIB Environmental Bond (NEB) Framework and will be financing projects in the water management and protection category. The Ba

17、nk remained the largest Nordic issuer of green bonds, with the total amount of NEBs issued since 2011 now at EUR 4.2 billion. In order to allow the Bank to adapt and better support its member countries, the Board of Directors and the management have been working on modernising the Statutes of the Ba

18、nk. As a result, at its annual meeting on 24 May 2019, the Board of Governors approved substantial amendments to the Statutes. The changes include the replacement of the Banks capital gearing limit with a risk-based comprehensive framework for capital and liquidity management. In addition, the speci

19、al PIL and MIL loan facilities will be discontinued. The outstanding amounts under these facilities, as well as new lending of this type, will become part of NIBs ordinary lending. The changes also include the improvement of institutional governance and the option of limited equity participation as

20、a new form of financing. 1 According to its current statutes, the Bank may make loans and issue guarantees up to a total amount equivalent to 250% of the authorised capital stock and accumulated general reserves. 4 NIB FINANCIAL REPORT 2019 REPORT OF THE BOARD OF DIRECTORS PROPOSAL BY THE BOARD OF D

21、IRECTORS OPERATING AND FINANCIAL REVIEW AUDITORS REPORT FINANCIAL STATEMENTS STATEMENT BY THE CONTROL COMMITTEE OPERATING ENVIRONMENT Global growth was weak in 2019, with manufacturing and world trade particularly sluggish. Higher tariffs and policy uncertainty dampened investment and demand for cap

22、ital goods. Along with rising global tensions that hurt business sentiment and confidence, corporate earnings growth was muted, reflecting the slowdown in industrial activity. On the brighter side, the services sector was resilient, supporting employment and wage growth in most economies. Increased

23、monetary policy stimulus also supported financial conditions. In a shifting global environment, the NordicBaltic economies held up relatively well. Despite the uncertain demand outlook, favourable financial conditions and capacity constraints supported business investment and lending in the region.

24、Negative interest rates continue to compress earnings in the banking sector, but credit losses were limited. LENDING DEVELOPMENTS NIBs lending volumes were lower in 2019 than in the record year 2018. This was mainly due to the Banks statutory limitations. NIB agreed 55 loans and invested in nine gre

25、en bonds, altogether amounting to EUR 3,316 million. Disbursements were EUR 2,676 million (EUR 4,047 million in 2018). Several borrowers took advantage of the low interest rate environment to re-finance and pre-pay loans, which NIB treated as an opportunity to moderate its loan portfolio growth. Len

26、ding outstanding at year-end amounted to EUR 18,931 million (EUR 19,065 million in 2018). A total of 98% of the loans agreed in 2019 were assessed to have a “good” or “excellent” impact rating in one or both of the Banks environment and productivity mandates. In 2019, the Bank delivered on its aim t

27、o increase the value of its environmental mandate lending as a proportion of the total, moving from 19% of agreed loans in 2018 to 42% in 2019. During the period, NIB continued to develop loan programmes with non-member-country financial institutions as a means of supporting projects that fulfil the

28、 Banks mandate outside of its home markets. The Bank also emphasised mid-cap corporate and Baltic lending opportunities. Six new loans were agreed in the Baltic states during the year, for projects in the energy, water, public transport, real estate and urban development sectors. As a result, new le

29、nding to the Baltics increased significantly to EUR371 million (EUR 96 million in 2018). LOANS DISBURSED IN 2019 Geographical distribution 33% Sweden EUR 878 m 30% Norway EUR 811 m 23% Finland EUR 620 m 4% Denmark EUR 119 m 3% Lithuania EUR 75 m 2% Estonia EUR 67 m 2% Iceland EUR 50 m 1% Latvia EUR

30、30 m 1% Non-member countries EUR 26 m LOANS DISBURSED IN 2019 Business area distribution 40% Infrastructure, transport all aligned with considerations on the natural environment and the climate challenge. This combination results in the benefits that matter to people. In a sense, we are aiming for “

31、quality growth” in our member countries economies and societies. NIB has substantial experience in the field of sustainable finance. Our mandate has always included aspects pertaining the social and environmental aspects of our financing. The experience built over years has led to strong internal ca

32、pabilities and reference documents (the Sustainability Policy and the Mandate Rating Framework). To further strengthen NIBs ability to promote the emerging complex and systemic transitions, the Bank will continue to develop its frameworks and analysis of environmental, social and governance (ESG) ri

33、sks and opportunities. The Bank continues to be engaged in several initiatives to promote sustainable finance. During 2019, NIB participated in the consultations of the EU Technical Expert Group on Sustainable Finance. The “EU taxonomy” on green activities was approved in December. NIB also continue

34、d to act as chair of the Green Bond Principles Executive Committee. The committee has developed guidelines on impact reporting for green bonds and is engaging in innovative “transition” financial products. In 2019, NIB supported the initial work of the Coalition of Finance Ministers for Climate Acti

35、on by organising a debate at the Banks premises on the role of international financial institutions in climate finance. The subsequent meeting of the Coalition built a consensus on what would become the Helsinki Principles, which promote national climate action, especially through fiscal policy and

36、the use of public finance. NIB also arranged a debate on the role of the Nordics in reducing global emissions in the context of the UNFCCCs 2019 Climate Change Conference (COP25) in Stockholm and Madrid. NIB joined the Network for Greening the Financial System (NGFS) as an observer. The NGFS is comp

37、osed of central banks and financial supervisors. Its purpose is to help strengthen the global response required to meet the goals of the Paris Agreement, to enhance the role of the financial system in managing risks, and to mobilise capital for green and low-carbon investments. 6 NIB FINANCIAL REPOR

38、T 2019 REPORT OF THE BOARD OF DIRECTORS PROPOSAL BY THE BOARD OF DIRECTORS OPERATING AND FINANCIAL REVIEW AUDITORS REPORT FINANCIAL STATEMENTS STATEMENT BY THE CONTROL COMMITTEE In addition to climate considerations, NIB remains engaged in the broader environmental agenda. In February 2019, NIB issu

39、ed its inaugural NordicBaltic Blue Bond to raise awareness and focus investments on the Baltic and Nordic Seas. NIB recognises that, as a bank built on sustainable finance, it also needs to look inward and ensure that it acts accordingly in its own operations. In 2019, NIB established an Internal Su

40、stainability Council. The Council aims to strengthen NIBs own sustainability agenda for its in-house operations. As an immediate step, NIB has decided to become a carbon-neutral organisation and to offset its CO2 emissions retrospectively from 2018. In 2019, NIB signed up for the Principles of Respo

41、nsible Investment, the Principles for Responsible Banking and the Task Force on Climate-related Financial Disclosures. MISSION FULFILMENT In order to implement sustainability in practice, all projects considered for financing are expected to contribute to the fulfilment of NIBs mission, and are asse

42、ssed and rated for their potential impact on productivity and the environment on a scale from “negative” to “excellent”. NIB aims to make a difference, and the Banks target is that at least 90% of loans should achieve a “good” or “excellent” rating in at least one of these two mandates. In 2019, loa

43、ns achieving these ratings accounted for 98% of the total amount of agreed lending. 30% of loans achieved a “good” or “excellent” rating in terms of both productivity and the environment. More than half of NIBs loans were allocated to projects that contribute to improvements in terms of productivity

44、. Some 42% of the total loans agreed and rated went to projects that have environmental benefits, reflecting the goal set by the Board to increase environmental lending as well as the growing demand for sustainable finance. Three years after a NIB-financed project has been completed, the Banks analy

45、sts follow up on the impacts the project has had. In 2019, the Board reviewed 13 such ex-post assessments. Of these, eight projects had achieved the expected impacts, and five projects had partly achieved them. NIB uses these results to further develop its mandate rating methodology and apply the le

46、ssons learned to future projects. MISSION FULFILMENT RATING % of loans agreed, excluding Lending Green Bond purchases and unallocated credit facilities 100 80 60 40 20 0 97%97%91%98% Good or excellent in productivity only Good or excellent in environment only Good or excellent in both environment an

47、d productivity 16171819 7 NIB FINANCIAL REPORT 2019 REPORT OF THE BOARD OF DIRECTORS PROPOSAL BY THE BOARD OF DIRECTORS OPERATING AND FINANCIAL REVIEW AUDITORS REPORT FINANCIAL STATEMENTS STATEMENT BY THE CONTROL COMMITTEE IMPACT ON PRODUCTIVITY Financing projects that increase productivity is a way

48、 for NIB to support the societies of its member countries in reaching higher levels of prosperity and well-being. This pillar covers both the economic and social aspects of sustainability. The Banks economists evaluate the impacts that a project might have on technical progress and innovation, the d

49、evelopment of human capital and equal economic opportunities, improvements in infrastructure, as well as market efficiency and the business environment in the member countries. Traditionally, one of NIBs largest lending areas is financing infrastructure projects (EUR 1,067 million, 40% of total loans agreed and rated), which creates the necessary environment for the economies of the region to improve productivity. These projects typically include investments in transportation (roads, ports, airports, bridges, railroads,