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

EXHIBIT III

FINANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED DECEMBER 31, 2010

INTRODUCTION TO THE FINANCIAL STATEMENTS

     The Bank’s financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). The accounting principles applied in NIB’s financial statements differ in certain respects from the accounting principles generally accepted in the United States (“U.S. GAAP”). Such differences may be related to variance in the standards for recognition or measurement of amounts included in the financial statements or IFRS may lack of specific requirements or guidance that is available for U.S. GAAP in certain areas. In addition, presentation and disclosure requirements may differ between IFRS and U.S. GAAP.

The financial statements of the Bank for the fiscal years 2008, 2009 and 2010 have been audited by KPMG Oy Ab and KPMG, Statsautoriseret Revisionspartnerselskab as indicated in their reports included in the Bank’s previous Form 18-K filings for the fiscal years ended December 31, 2008 and December 31, 2009 and incorporated by reference into the Bank’s Registration Statement under Schedule B of the Securities Act (No. 333-142934) and elsewhere herein, respectively.

     The auditors were appointed by the Control Committee of the Bank. See Exhibit V to this Annual Report on Form 18-K, “Description of the Registrant — Governance”.

     Based on a tender process, the Control Committee appointed as independent joint auditors for NIB for the fiscal years 2008, 2009 and 2010, Authorized Public Accountant Sixten Nyman, representing the accounting firm KPMG Oy Ab, Finland and State Authorized Public Accountant Per Gunslev, representing KPMG, Statsautoriseret Revisionspartnerselskab, Denmark, which appointment has been renewed for the fiscal year 2011.

NORDIC INVESTMENT BANK

COMPREHENSIVE INCOME INFORMATION

JANUARY 1 — DECEMBER 31,
(in thousands of EURO)

	2008		2009		2010
	EURO		EURO		EURO
Interest income		979,236		603,038		429,649
Interest expense		-766,845		-384,040		-195,999
NET INTEREST INCOME(1)(2)(22)		212,391		218,998		233,650
Commission income and fees received(3)		9,567		8,909		12,070
Commission expense and fees paid		-2,310		-2,843		-2,423
Net profit /loss on financial operations(4)		-386,923		177,754		39,317
Foreign exchange gains and losses		-142		-733		2,822
OPERATING INCOME		-167,417		402,085		285,436
EXPENSES
General administrative expenses(5)(22)		30,346		30,601		31,381
Depreciation(9)(10)		4,360		5,074		4,735
Impairment of loans(6)(8)		79,150		42,511		38,489
TOTAL EXPENSES		113,856		78,186		74,604
PROFIT/LOSS FOR THE YEAR		-281,273		323,900		210,832
Value adjustments on the available-for-sale portfolio		-734		-3,533		514
TOTAL COMPREHENSIVE INCOME		-282,007		320,367		211,346

(1)-(6), (8)-(10) and (22) above refer to the corresponding Notes to the Financial Statements included in Exhibit IV to this Annual Report on Form 18-K.