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

Exhibit VII

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NORDIC INVESTMENT BANK

Financial information
January—August 2009

(unaudited)

20 October 2009

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Table of contents

Key figures	3
Comments	4
Statement of comprehensive income	5
Statement of financial position	6
Changes in equity	8
Cash flow statement	9

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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Key figures

(In EUR million unless otherwise specified)	Aug 2009*			Aug 2008*			Dec 2008
Net interest income		142			136			212
Core earnings**		127			119			189
Profit/loss		231			30			-281
Loans disbursed		1,196			1,847			2,486
Loan agreements		686			1,636			2,707
Loans outstanding		13,584			13,381			13,063
Guarantee commitments		17			25			17
New debt issues		3,113			3,290			4,681
Debts evidenced by certificates		17,911			15,730			17,549
Net liquidity		3,479			3,617			3,638
Total assets		22,306			20,518			22,620
Equity/total assets (%)		8.8	%		9.9	%		7.6	%
Number of employees (persons)		174			169			170

*	Unaudited figures to be read in conjunction with NIB’s audited financial statements for 2008 and the notes thereto
**	Core earnings consist of the profit before adjustments to hedge accounting, fair value adjustments made to the trading portfolio and impairments and reversals of these.

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Comments
NIB’s financial figures January—August 2009

During the first eight months of 2009, the financial markets showed increasing signs of normalisation. However, the real economy was still adjusting, and output fell in the membership area. In this environment, the demand for NIB’s loans continued to be strong.

NIB’s operational results for January—August 2009 in terms of core earnings* amounted to EUR 127 million, up from EUR 119 million during the same period last year. NIB’s profit rose to EUR 231 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.

NIB’s balance sheet total at the end of the period was EUR 22.3 billion. Loans outstanding increased to EUR 13.6 billion, which is 4% higher than at year-end 2008. Loan disbursements amounted to EUR 1.2 billion (January—August 2008: EUR 1.8 billion). Impairments to the loan-book increased by EUR 27 million during the period, totalling EUR 96 million at the end of August.

In its lending operations, NIB put an increasing emphasis on financing projects complying with the Bank’s mandate. About 70% of the disbursements were in the priority areas: the environment; energy; transport, logistics and communications; and innovation. Projects dealing with the environment alone accounted for 28% of the total disbursements.

As a strong AAA-rated multilateral issuer, NIB has continued to be able to raise funds on favourable terms. During the eight-month period, the Bank issued its first EUR benchmark bond. By the end of August, the Bank had issued in total EUR 3.1 billion in nine currencies.

NIB expects demand for its loans to persist during the rest of the year and the steady upward trend in its core earnings to continue.

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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Statement of comprehensive income

EUR 1,000

	Jan-Aug 2009*		Jan-Aug 2008*		Jan-Dec 2008
Interest income		454,223		638,953		979,236
Interest expense		-311,735		-502,554		-766,845
Net interest income		142,488		136,399		212,391
Commission income and fees received		6,598		5,378		9,567
Commission expense and fees paid		-1,772		-1,878		-2,310
Net profit/loss on financial operations		134,737		-84,210		-386,923
Foreign exchange gains and losses		-844		38		-142
Operating income		281,206		55,726		-167,417
Expenses
General administrative expenses		19,699		19,515		30,346
Depreciation		3,299		2,877		4,360
Impairment of loans		26,755		2,850		79,150
Total expenses		49,753		25,241		113,856
PROFIT/LOSS FOR THE PERIOD		231,454		30,485		-281,273
Available-for-sale portfolio		-2,596
Total, comprehensive income		228,858

* Unaudited figures

to be read in conjunction with NIB’s audited financial statements for 2008 and the notes thereto

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Statement of financial position

EUR 1,000

	31 Aug 2009*		31 Aug 2008*		31 Dec 2008
ASSETS
Cash and cash equivalents		3,989,660		3,929,746		4,776,821
Financial placements
Placements with credit institutions		104,863		79,517		82,013
Debt securities		2,795,691		1,895,339		2,502,333
Other		12,078		13,558		14,157
		2,912,633		1,988,414		2,598,503
Loans outstanding		13,583,916		13,380,549		13,062,568
Intangible assets		6,213		6,594		6,816
Tangible assets, property and equipment		33,949		35,652		35,107
Other assets
Derivatives		1,368,157		732,922		1,734,353
Other assets		13,284		1,715		8,123
		1,381,440		734,638		1,742,476
Paid-in capital and payments to the Bank’s reserves, receivable		23,997		36,474		31,556
Accrued interest and fees receivable		373,833		406,269		366,590
TOTAL ASSETS		22,305,641		20,518,336		22,620,436
LIABILITIES AND EQUITY
Liabilities
Amounts owed to credit institutions
Short-term amounts owed to credit institutions		511,070		303,619		1,092,809
Long-term amounts owed to credit institutions		155,497		77,723		79,107
		666,567		381,341		1,171,917
Repurchase agreements		—		9,127		45,900
Debts evidenced by certificates
Debt securities issued		17,663,556		15,534,667		17,320,259
Other debt		247,236		195,623		229,122
		17,910,793		15,730,290		17,549,380
Other liabilities
Derivatives		1,465,289		1,981,942		1,785,185
Other liabilities		6,414		6,754		5,204
		1,471,703		1,988,696		1,790,389
Accrued interest and fees payable		297,777		367,457		332,907
Total liabilities		20,346,840		18,476,911		20,890,493

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		31 Aug 2009*		31 Aug 2008*		31 Dec 2008
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			664,329		651,851		656,770
General Credit Risk Fund			340,857		622,131		622,131
Special Credit Risk Fund PIL			281,919		281,919		281,919
Payments to the Bank’s reserves, receivable			23,997		36,474		31,556
Other value adjustments			-2,357		-37		239
Profit/loss for the period			231,454		30,485		-281,273
Total equity			1,958,801		2,041,424		1,729,943
TOTAL LIABILITIES AND EQUITY			22,305,641		20,518,336		22,620,436
Guarantee commitments			16,667		25,000		16,667

* Unaudited figures

to be read in conjunction with NIB’s audited financial statements for 2008 and the notes thereto

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Changes in equity*
EUR 1,000

									Payments
									to the
									Bank’s
							Special		Statutory
					General		Credit		Reserve		Appropriation to		Other		Profit/loss
	Paid-in		Statutory		Credit		Risk Fund		and credit		dividend		value		for the
	capital		Reserve		Risk Fund		PIL		risk funds		payment		adjustments		period		Total
Equity at 31 December 2007		418,602		645,612		622,131		238,200		42,713		0		973		68,719		2,036,950
Appropriations between reserve funds								43,719				25,000				-68,719		0
Paid-in capital																		0
Called in authorised and subscribed capital																		0
Payments to the Bank’s Statutory Reserve and credit risk funds, receivable				6,239						-6,239								0
Dividend payment												-25,000						-25,000
Comprehensive income for the period 1/1-31/8/2008														-1,011		30,485		29,474
Equity at 31 August 2008		418,602		651,851		622,131		281,919		36,474		0		-38		30,485		2,041,424
Payments to the Bank’s Statutory Reserve and credit risk funds, receivable				4,919						-4,919								0
Comprehensive income for the period 1/9-31/12/2008														277		-311,758		-311,481
Equity at 31 December 2008		418,602		656,770		622,131		281,919		31,556		0		239		-281,273		1,729,943
Appropriations between reserve funds						-281,273										281,273		0
Paid-in capital																		0
Called in authorised and subscribed capital																		0
Payments to the Bank’s Statutory Reserve and credit risk funds, receivable				7,559						-7,559								0
Comprehensive income for the period 1/1-31/8/2009														-2,596		231,454		228,858
Equity at 31 August 2009		418,602		664,329		340,857		281,919		23,997		0		-2,357		231,454		1,958,801

*	Only the year-end figures are audited
	to be read in conjunction with NIB’s audited financial statements for 2008 and the notes thereto

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Cash flow statement
EUR 1,000

	Jan-Aug 2009*		Jan-Aug 2008*			Jan-Dec 2008
Cash flows from operating activities
Profit/loss from operating activities		231,454		30,485			-281,273
Adjustments:
Amortisation of issuing charges		—		6,900			9,175
Market value adjustment, trading portfolio		-16,856		1,977			7,402
Impairment on accrued interest and matured financial assets		1,739		—			7,459
Debt securities moved from trading to held-to maturity portfolio		—		—			46,829
Depreciation and write-down in value of tangible and intangible assets		3,299		2,877			4,360
Change in accrued interest and fees (assets)		-8,982		-37,845			-554
Change in accrued interest and fees (liabilities)		-35,130		3,989			-30,561
Impairment of loans		26,755		2,850			79,150
Adjustment to hedge accounting		-29,499		-7,559			38,809
Other adjustments to the year’s profit		-24		-22			-34
Adjustments, total		-58,699		-26,834			162,035
Lending
Disbursements of loans		-1,195,694		-1,846,897			-2,486,401
Repayments of loans		780,250		765,858			1,467,170
Realised impairment losses on loans		10,178
Capitalisations, redenominations, index adjustments etc.		-669		-1,164			-1,838
Exchange rate adjustments		-135,168		-6,209			255,290
Lending, total		-541,103		-1,088,412			-765,779
Cash flows from operating activities, total		-368,348		-1,084,761			-885,017
Cash flows from investing activities
Placements and debt securities
Purchase of debt securities		-583,283		-972,727			-1,814,602	**
Sold and matured debt securities		298,376		660,000			855,700	**
Placements with credit institutions		-23,139		13,915			11,419
Other financial placements		-517		-5,925			-6,247
Exchange rate adjustments etc.		-2,687		266			752
Placements and debt securities, total		-311,251		-304,470			-952,978
Other items
Acquisition of intangible assets		-1,069		-1,115			-2,023
Acquisition of tangible assets		-470		-501			-753
Change in other assets		-5,161		-830			-11,633
Other items, total		-6,700		-2,445			-14,408
Cash flows from investing activities, total		-317,951		-306,916			-967,386
Cash flows from financing activities
Debts evidenced by certificates
Issues of new debt		3,112,621		3,289,445	***		4,695,020	***

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	Jan-Aug 2009*		Jan-Aug 2008*		Jan-Dec 2008
Redemptions		-2,643,746		-2,030,580		-2,570,663
Exchange rate adjustments		223,926		-313,852		-216,503
Debts evidenced by certificates, total		692,801		945,013		1,907,854
Other items
Long-term placements from credit institutions		76,390		-13,951		-12,567
Change in swap receivables		170,494		108,858		-357,189
Change in swap payables		-421,676		-53,527		-73,234
Change in other liabilities		1,210		2,258		708
Dividend paid		—		-25,000		-25,000
Paid-in capital and reserves		7,559		6,239		11,158
Other items, total		-166,024		24,877		-456,125
Cash flows from financing activities, total		526,777		969,890		1,451,729
CHANGE IN NET LIQUIDITY		-159,522		-421,787		-400,675
Opening balance for net liquidity		3,638,112		4,038,787		4,038,787
Closing balance for net liquidity		3,478,590		3,617,000		3,638,112
Additional information to the statement of cash flows
Interest income received		446,980		676,799		981,068
Interest expense paid		-346,865		-498,565		-797,406

The cash flow statement has been prepared using the indirect method and the items of cash flows cannot be directly concluded from the statements of financial positions.

*	Unaudited figures to be read in conjunction with NIB’s audited financial statements for 2008 and the notes thereto
**	Reclassification of debt securities from trading portfolio to held-to-maturity is included in these items.
***	Including issuing charges 1 Jan—31 Aug 2008 EUR -953 thousand and 1 Jan—31 Dec 2008 EUR -14,278 thousand.