Nordic Investment Bank 18-K Annual report (foreign governments)

Exhibit V

Capsule Financial information
January-August 2007

(unaudited and not reviewed)

Nordic Investment Bank Financial information January-August 2007

Table of contents

Key figures	2
Comments	3
Profit and loss account	4
Balance sheet	5
Changes in equity	6
Cash flow statement	7

30 October 2007

1

Nordic Investment Bank Financial information January-August 2007

Key figures
EUR million

	Aug 2007*		Aug 2006*		Dec 2006
Net interest income		123		120		179
Core earnings**		107		104		154
Profit		80		90		137
Loans disbursed		1,598		807		1,605
Guarantees issued		-		-		-
Loan agreements		1,291		848		1,575
Loans outstanding		12,065		11,455		11,534
Guarantee commitments		25		25		25
New debt issues		2,528		1,929		2,689
Debts evidenced by certificates		14,313		13,766		13,622
Net liquidity		3,404		2,961		3,224
Total assets		18,912		17,970		17,988
Equity/total assets (%)		10.8		11.0		11.2
Profit/average equity (%)		5.8		6.8		6.9
Number of employees		157		158		160

* Unaudited figures to be read in conjunction with NIB’s audited financial statements for 2006 and the notes thereto

** Core earnings consist of the profit before adjustments to hedge accounting, fair value adjustments made to the trading portfolio and credit losses and reversals of these.

2

Nordic Investment Bank Financial information January-August 2007

Comments

NIB’s financial figures January-August 2007

The first eight months of 2007 were characterised by large swings in the financial markets. On the one hand, the first two quarters saw ample liquidity and high appetite for risk. In July 2007, unease on the financial markets increased as a result of the emerging problems related to the sub-prime market in the US. Risk-taking vanished, liquidity fell in the inter-bank market and credit spreads widened significantly.

NIB’s operational results in terms of core earnings* increased to EUR 107 million, compared to EUR 104 million during the same period last year. But due to fair value adjustments made to the trading portfolio, NIB’s profit for the period decreased to EUR 80 million, compared to EUR 90 million during the same period last year. Due to the widening of credit spreads following the turbulence on the markets at the end of the period, and the fact that long-term interest rates in general rose during the period January-August, the marked-to-market value of NIB’s trading portfolio fell. The Bank’s balance sheet total at the end of the period was EUR 18.9 billion, up from EUR 18.0 billion at year-end 2006.

NIB’s lending volumes grew significantly during the period. Loans disbursed rose to EUR 1,598 million compared to EUR 807 million during the same period in 2006. Loans agreed rose to EUR 1,291 million compared to EUR 848 million during the same period last year. However, due to the market situation in the first half of the year, a downward pressure on lending margins was experienced in virtually all markets.

By the same token, the liquidity and high appetite for risk on the markets in the first half of the year caused, in relative terms, an upward pressure on margins in NIB’s borrowing activities. New debt issues amounted to EUR 2,528 million, compared to EUR 1,929 million during the same period last year. The volatility towards the end of the period favoured the best of the high-quality issuers, including NIB, but the direct effects on funding were seen only after the end of the period.

In an uncertain situation on the markets, NIB, having a high credit rating, can make an important contribution. NIB expects lending activities for the whole year to develop positively and the operational results in term of core earnings to be good. NIB’s profit for the whole year will be dependent on the developments on the markets and related valuation adjustments.

Johnny Åkerholm
President and CEO

* Core earnings consist of the profit before adjustments to hedge accounting, fair value adjustments made to the trading portfolio and credit losses and reversals of these.

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Nordic Investment Bank Financial information January-August 2007

Profit and loss account
EUR 1,000

	Jan - Aug 2007*		Jan - Aug 2006*		Jan - Dec 2006
Interest income		539,038		429,310		673,197
Interest expense		-415,675		-309,414		-494,390
Net interest income		123,363		119,896		178,807
Commission income and fees received		4,005		4,008		6,821
Commission expense and fees paid		-1,730		-1,126		-1,734
Net profit / loss on financial operations		-24,933		-12,138		-14,406
Foreign exchange gains and losses		-152		141		136
Operating income		100,552		110,781		169,624
Expenses
General administrative expenses		17,913		18,280		27,909
Depreciation		2,884		2,872		4,246
Credit loss / recovery		—		—		—
Total expenses		20,797		21,152		32,156
PROFIT FOR THE PERIOD		79,754		89,629		137,469

*Unaudited figures
to be read in conjunction with NIB’s audited financial statements for 2006 and the notes thereto

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Nordic Investment Bank Financial information January-August 2007

Balance sheet
EUR 1,000

			31 Aug 2007*		31 Aug 2006*		31 Dec 2006
ASSETS
Cash and cash equivalents				3,920,081		3,645,281		3,753,444
Financial placements
Placements with credit institutions				93,094		97,325		91,429
Debt securities				1,574,393		1,363,119		1,416,378
Other				7,420		6,409		7,135
				1,674,907		1,466,853		1,514,942
Loans outstanding				12,065,435		11,455,414		11,534,229
Intangible assets				6,836		7,236		7,342
Tangible assets				37,151		34,870		35,633
Other assets
Derivatives				776,264		937,340		751,036
Other assets				2,608		8,345		12,031
				778,872		945,685		763,067
Paid-in capital and payments to the Bank’s reserves, receivable				42,713		47,494		47,494
Accrued interest and fees receivable				386,242		367,229		331,995
TOTAL ASSETS				18,912,237		17,970,062		17,988,146
LIABILITIES AND EQUITY
Liabilities
Amounts owed to credit institutions
Short-term amounts owed to credit institutions				268,809		400,769		313,025
Long-term amounts owed to credit institutions				91,723		91,242		90,262
				360,532		492,011		403,287
Repurchase agreements				247,610		283,671		216,739
Debts evidenced by certificates
Debt securities issued				14,129,932		13,498,075		13,367,157
Other debt				182,658		268,096		254,358
				14,312,589		13,766,171		13,621,516
Other liabilities
Derivatives				1,596,606		1,114,404		1,415,445
Other liabilities				5,813		5,461		4,331
				1,602,420		1,119,865		1,419,776
Accrued interest and fees payable				338,975		331,052		305,978
Total liabilities				16,862,127		15,992,769		15,967,296
Equity
Authorised and subscribed capital		4,141,903
of which callable capital		-3,723,301
Paid-in capital		418,602		418,602		418,602		418,602
Reserve funds
Statutory Reserve				645,612		644,983		644,983
General Credit Risk Fund				622,131		534,662		534,662
Special Credit Risk Fund PIL				238,200		238,200		238,200
Fund, HIPC Programme	��			—		4,300		629
Payments to the Bank’s reserves, receivable				42,713		42,713		42,713
Other value adjustments				3,099		4,204		3,592
Profit for the period				79,754		89,629		137,469
Total equity				2,050,110		1,977,293		2,020,850
TOTAL LIABILITIES AND EQUITY				18,912,237		17,970,062		17,988,146
Guarantee commitments				25,000		25,000		25,000

*Unaudited figures
to be read in conjunction with NIB’s audited financial statements for 2006 and the notes thereto

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Nordic Investment Bank Financial information January-August 2007

Changes in equity^*
EUR 1,000

					General		Special				Payments to the Bank’s Statutory Reserve
					Credit		Credit		Fund,		and credit		Appropriation		Other		Profit
	Paid-in		Statutory		Risk		Risk		HIPC		risk		to dividend		value		for the
	capital		Reserve		Fund		Fund PIL		Programme		funds		payment		adjustments		period		Total
Equity at 31 December 2005		418,602		644,983		424,367		238,200		4,300		42,713				7,109		165,295		1,945,569
Appropriations between reserve funds						110,295								55,000				-165,295		0
Paid-in capital		4,780																		4,780
Called in authorised and subscribed capital		-4,780																		-4,780
Payments to the Bank’s Statutory Reserve and credit risk funds, receivable																				0
Dividend payment														-55,000						-55,000
Profit for the period 1/1-31/8/2006																		89,629		89,629
Available-for-sale portfolio 1/1-31/8/2006																				0
Cash flow hedge accounting 1/1-31/8/2006																-2,905				-2,905
Total income and expense for the period 1/1-31/8/2006		0		0		0		0		0		0				-2,905		89,629		86,724
Equity at 31 August 2006		418,602		644,983		534,662		238,200		4,300		42,713		0		4,204		89,629		1,977,293
Used fund, HIPC programme										-3,671										-3,671
Profit for the period 1/9-31/12/2006																		47,840		47,840
Available-for-sale portfolio 1/9-31/12/2006																395				395
Cash flow hedge accounting 1/9-31/12/2006																-1,008				-1,008
Total income and expense for the period 1/9-31/12/2006		0		0		0		0		0		0		0		-613		47,840		47,227
Equity at 31 December 2006		418,602		644,983		534,662		238,200		629		42,713		0		3,592		137,469		2,020,850
Appropriations between reserve funds				629		87,469				-629				50,000				-137,469		0
Paid-in capital		4,780																		4,780
Called in authorised and subscribed capital		-4,780																		-4,780
Payments to the Bank’s Statutory Reserve and credit risk funds, receivable																				0
Dividend payment														-50,000						-50,000
Profit for the period 1/1-31/8/2007																		79,754		79,754
Available-for-sale portfolio																826				826
Cash flow hedge accounting																-1,319				-1,319
Total income and expense for the period 1/1-31/8/2007		0		0		0		0		0		0		0		-493		79,754		79,261
Equity at 31 August 2007		418,602		645,612		622,131		238,200		0		42,713		0		3,099		79,754		2,050,110

*Only the year-end figures are audited
to be read in conjunction with NIB’s audited financial statements for 2006 and the notes thereto

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Nordic Investment Bank Financial information January-August 2007

Cash flow statement
EUR 1,000

	Jan - Aug 2007*		Jan -Aug 2006*		Jan - Dec 2006
Cash flows from operating activities
Profit for the year		79,754		89,629		137,469
Amortisation of issuing charges		6,634		5,916		9,091
Market value adjustment, trading portfolio		4,831		4,888		5,831
Depreciation and write-down in value of tangible and intangible assets		2,884		2,872		4,246
Change in accrued interest and fees (assets)		-54,246		-62,664		-27,430
Change in accrued interest and fees (liabilities)		32,996		62,220		37,147
Credit loss / recovery		—		—		—
Adjustment to hedge accounting and changes in fair value of non-hedging derivatives		-7,343		3,441		7,034
Other adjustments to the year’s profit		-24		-26		-56
Operating activities, total		65,487		106,276		173,332
Cash flows from investing activities
Lending
Disbursements of loans		-1,597,693		-807,394		-1,605,088
Repayments of loans		897,340		805,526		1,477,741
Capitalisations, redenominations, index adjustments etc.		-17		-776		-1,070
Exchange rate adjustments		145,894		224,251		260,126
Placements and debt securities
Purchase of debt securities		-417,743		-351,709		-498,431
Sales of debt securities		255,238		285,582		377,582
Placements with credit institutions		-1,672		7,561		13,418
Other financial placements		541		643		313
Exchange rate adjustments etc.		-78		1,192		1,286
Other items
Change in swap receivables		-102,131		84,893		62,699
Change in other assets		9,166		-5,272		-8,492
Change in tangible and intangible assets		-3,896		-2,673		-4,915
Investing activities, total		-815,052		241,825		75,168
Cash flows from financing activities
Debts evidenced by certificates
Issues of new debt		2,527,728		1,929,308		2,688,610
Redemptions		-1,347,585		-1,610,726		-2,039,639
Exchange rate adjustments		-301,397		-899,433		-1,025,220
Issuing charges		-4,220		-275		-5,330
Other items
Placements from credit institutions		1,461		-8,834		-9,813
Change in swap payables		97,297		152,165		320,820
Change in other liabilities		1,482		178		-934
Dividend paid		-50,000		-55,000		-55,000
Paid-in capital		4,780		4,780		4,780
Used fund, HIPC Programme		—		—		-3,671
Financing activities, total		929,546		-487,837		-125,395
CHANGE IN NET LIQUIDITY		179,980		-139,735		123,104
Opening balance for net liquidity		3,223,681		3,100,576		3,100,576
Closing balance for net liquidity		3,403,661		2,960,841		3,223,681

*Unaudited figures
to be read in conjunction with NIB’s audited financial statements for 2006 and the notes thereto

7

Nordic Investment Bank Financial information January-August 2007

Nordic Investment Bank (NIB)
Fabianinkatu 34
P.O. Box 249
FI-00171 Helsinki, Finland

Telephone +358 10 618 001
Fax +358 10 618 0725
Internet www.nib.int
E-mail info@nib.int

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