Exhibit III
FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2015
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 financial year 2013 have been audited by KPMG Oy Ab and KPMG, Statsautoriseret Revisionspartnerselskab and for the financial years 2014 and 2015 by KPMG Oy Ab and KPMG AB, as indicated in their reports included in the Bank’s previous Form 18-K filings for the financial years ended December 31, 2013 and December 31, 2014 and incorporated by reference into the Bank’s Registration Statement under Schedule B of the Securities Act (No. 333-203363) 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”.
The Control Committee appointed as independent joint auditors for NIB for the financial year 2013, 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. NIB appointed Authorized Public Accountant Sixten Nyman, representing the accounting firm KPMG Oy Ab, Finland and Authorized Public Accountant Hans Åkervall, representing KPMG AB, Sweden as its independent joint auditors for the financial years 2014 and 2015. For the financial year 2016 NIB appointed Authorized Public Accountant Marcus Tötterman, representing the accounting firm KPMG Oy Ab, Finland and Authorized Public Accountant Hans Åkervall, representing KPMG AB, Sweden as its independent joint auditors.
NORDIC INVESTMENT BANK
STATEMENT OF COMPREHENSIVE INCOME
JANUARY 1—DECEMBER 31,
(in thousands of EURO)
| | | | | | | | | | | | |
| | | 2013 | | | 2014 | | | 2015 | |
| | | EURO | | | EURO | | | EURO | |
Interest income | | | 404,179 | | | | 382,760 | | | | 338,781 | |
Interest expense | | | -159,975 | | | | -143,652 | | | | -92,005 | |
| | | | | | | | | | | | |
NET INTEREST INCOME(1)(2)(21) | | | 244,204 | | | | 239,108 | | | | 246,776 | |
| | | |
Commission income and fees received(3) | | | 10,199 | | | | 9,326 | | | | 12,218 | |
Commission expense and fees paid | | | -2,454 | | | | -2,092 | | | | -2,212 | |
Net profit /loss on financial operations(4) | | | 19,840 | | | | 25,684 | | | | 11,521 | |
Foreign exchange gains and losses | | | -384 | | | | 187 | | | | 82 | |
| | | | | | | | | | | | |
OPERATING INCOME | | | 271,404 | | | | 272,211 | | | | 268,385 | |
| | | |
EXPENSES | | | | | | | | | | | | |
General administrative expenses(5)(21) | | | 35,217 | | | | 37,386 | | | | 41,740 | |
Depreciation(9)(10) | | | 3,592 | | | | 3,709 | | | | 8,737 | |
Impairment of loans(6)(8) | | | 15,385 | | | | 20,905 | | | | 2,509 | |
| | | | | | | | | | | | |
TOTAL EXPENSES | | | 54,194 | | | | 62,000 | | | | 52,987 | |
| | | |
PROFIT FOR THE YEAR | | | 217,210 | | | | 210,211 | | | | 215,398 | |
| | | | | | | | | | | | |
TOTAL COMPREHENSIVE INCOME | | | 217,210 | | | | 210,211 | | | | 215,398 | |
(1)-(6), (8)-(10) and (21) above refer to the corresponding Notes to the Financial Statements included in Exhibit IV to this Annual Report on Form 18-K.
