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

Exhibit IX

INTERIM FINANCIAL REPORT / 2

Table of contents

3	President and CEO’s comments
4	Highlights
4	Key figures and ratios
5	Operating and financial review
5	Total comprehensive income
8	Financial position
10	Financial statements
10	Statement of comprehensive income
11	Statement of financial position
13	Statement of changes in equity
14	Cash flow statement

16	Notes to the interim financial statements
16	Note 1 - Segment information
18	Note 2 - Net interest income
18	Note 3 - Net profit/loss on financial operations
19	Note 4 - Expected credit loss
19	Note 5 - Net loan losses
20	Note 6 - Lending outstanding
20	Note 7 - Debts evidenced by certificates
21	Note 8 - Classification of financial instruments
23	Note 9 - Fair value of financial assets and liabilities
26	Note 10 - Basis of preparation
26	Ratio definitions
28	Report on Review of Interim Financial Report

INTERIM FINANCIAL REPORT / 3

President and CEO’s comments

The world is experiencing challenging times, one could say a perfect storm. Russia´s unjustified war in Ukraine continues with devastating impacts on the Ukrainian people and infrastructure, buildings and economy, and it has also contributed to inflation, higher interest rates and financial market volatility. At the same time, we are constantly reminded of the escalating climate threats, extreme weather events and the biodiversity loss.

However, despite these dark clouds there are also some reasons to be optimistic. In particular, policy-makers and businesses have not witnessed the events without action. Many steps have been taken to support Ukraine and also to accelerate the green transition to low carbon economies and improve energy security. This is also the area where we see strong demand for NIB´s long-term loans.

In the first half of 2023, a total of EUR 1,242 million in new lending was signed and EUR 1,670 million was disbursed. High demand for NIB lending has allowed the bank to prioritise high impact projects. The focus on the green transition is evident in the environmental mandate result, which is at historical highs for NIB. New loans were signed to build new wind power capacity and strengthen the electricity distribution networks in the region. The productivity mandate fulfilment also remains above target. Details of all new lending signed can be found here.

Total assets at 30 June 2023 amounted to EUR 39 billion compared to EUR 40 billion at 30 June 2022. The total lending outstanding amounted to EUR 21 billion at 30 June 2023 compared to EUR 23 billion at 30 June 2022. The decrease was mainly attributable to significant foreign exchange impacts and one large prepayment.

The net profit for the period January to June was strong and amounted to EUR 127 million compared to EUR 39 million in 2022. The increase in net profit is mainly due to higher net interest income and unrealised profits on financial operations. The underlying trend in core earnings has been improving from quarter to quarter since last year and the results on financial operations in the second quarter were better than the first quarter as the markets stabilised after the volatility in March.

The Bank has raised EUR 4.7 billion in new funding so far in 2023, including a five-year USD 1.5 billion global benchmark bond priced at an attractive spread over risk-free rates and with the largest ever final orderbook for NIB of more than USD 4 billion.

The Bank is in a strong financial position as confirmed by our triple-A rating which was reaffirmed by both Standard & Poor’s and Moody’s during the spring. NIB’s credit rating reflects its high asset quality, solid liquidity and capital adequacy, strong balance sheet and ownership.

Finally, I hope all our stakeholders had a pleasant and relaxing summer.

André Küüsvek, President & CEO

INTERIM FINANCIAL REPORT / 4

Highlights

The net profit for the period January to June 2023 of EUR 127 million is significantly higher than the EUR 39 million recorded in 2022. The net interest income, the Bank’s core earnings, for the first six months increased from EUR 104 million in 2022 to EUR 139 million in 2023. The outlook for the second half of the year is for this trend to continue. During the first quarter, the Bank experienced some volatility in gains and losses related to its financial operations due to the increased uncertainty in the financial markets. However, the markets stabilised in the second quarter which resulted in a better net profit on financial operations. As expenses were kept under control, the cost/income ratio fell below 20% to 18.5%.

During the first half of 2023, lending disbursements amounted to EUR 1,670 million and lending signed was EUR 1,242 million, compared to EUR 2,142 million and EUR 2,203 million respectively, in the same period in 2022. The focus on the green transition is evident in the environmental mandate result, which is at historical highs for NIB. The productivity mandate also remains above target.

The Bank has raised EUR 4.7 billion in new funding so far in 2023. In March, NIB priced a five-year USD 1.5 billion global benchmark bond, which attracted high quality demand and had one hundred participating accounts, resulting in a final orderbook of more than USD 4 billion, the largest ever for NIB.

The Bank is in a strong financial position with solid capital and liquidity ratios as evidenced by the Bank’s triple-A rating, reaffirmed by Standard and Poor’s and Moody’s during the second quarter. The credit quality remains strong and net loan losses was a positive amount due to decreasing impairment provisions.

On 31 March, the annual meeting of the Board of Governors of NIB approved the Bank’s audited financial statements for 2022 and a dividend payment of EUR 25 million to the Nordic and Baltic member countries.

During the first half of 2023, the InvestEU Investment Committee approved a framework agreement in the area of clean energy transition. The guarantee provided under the agreement will enable NIB to increase its risk-bearing capacity, enabling it to provide financing up to an amount of EUR 300 million to projects promoting a more sustainable energy system in the Nordic and Baltic region.

Key figures and ratios

In millions of euro unless otherwise specified	Jan-Jun 2023		Jan-Jun 2022		Jan-Dec 2022
Net interest income		139		104		219
Profit before net loan losses		123		31		136
Net profit		127		39		139
Lending disbursed		1,670		2,142		3,705
New signed lending		1,242		2,203		4,114
% of loans achieving good or above mandate *		99.8%		98.0%		99.2%
Lending outstanding		21,326		22,616		22,195
Total assets		39,102		39,884		39,280
New debt issues		4,689		5,540		9,630
Debts evidenced by certificates		31,022		32,898		31,595
Total equity		4,206		3,976		4,101
Equity/total assets **		10.8%		10.0%		10.4%
Net profit/average equity **		6.2%		1.9%		3.4%
Cost/income **		18.5%		47.6%		27.9%
Number of employees at period end		237		226		228

* See page 9 for mandate fulfilment explanation

** See page 26 for ratio definitions

INTERIM FINANCIAL REPORT / 5

Operating and financial review

Total comprehensive income

January–June 2023 compared to January–June 2022

NET PROFIT

The net profit for the period January–June 2023 amounted to EUR 127.1 million, which is EUR 88.4 million higher than the corresponding period in 2022. Total operating income increased significantly from EUR 58.9 million to EUR 151.3 million. Net interest income increased by EUR 35.9 million while net fee and commission income decreased by EUR 2.5 million. The net profit on financial operations increased from a loss of EUR 48.9 million to a gain of EUR 9.6 million. The financial markets have stabilised again after the significant volatility in March due to the collapse of some regional US banks and Credit Suisse in Europe. A gain of EUR 3.8 million was recorded for net loan losses compared to a gain of EUR 7.8 million for the same period in 2022. There have been no realised loan losses year to date.

NET INTEREST INCOME

Net interest income for the period amounted to EUR 139.5 million compared to EUR 103.6 million in 2022. Net interest income on lending activities amounted to EUR 86.8 million and was EUR 4.9 million higher than in 2022 due to higher margins. The interest income on treasury activities increased from EUR 21.7 million to EUR 52.7 million as the liquidity buffer bond portfolios benefited from the increase seen in the market interest rate level. The outlook for net interest income remains positive for the rest of the year.

NET FEE AND COMMISSION INCOME

Net fee and commission income for the period January–June 2023 of EUR 2.0 million was EUR 2.5 million lower than the same period in 2022.

INTERIM FINANCIAL REPORT / 6

NET PROFIT/LOSS ON FINANCIAL OPERATIONS

The net profit on financial operations for the first half of 2023 amounted to EUR 9.6 million compared to a loss of EUR 48.9 million in the same period last year. The result comprised of unrealised profits of EUR 9.3 million and realised gains of EUR 0.3 million compared to unrealised losses of EUR 53.4 million and realised gains of EUR 4.4 million in 2022. Financial markets experienced some volatility during the first quarter, arising from inflationary concerns and the collapse of some regional banks in the US and Credit Suisse in Europe. This resulted in valuation swings on financial instruments that NIB holds to hedge its foreign exchange and interest rate risks and in its liquidity bond portfolio. The year-to-date unrealised gains amounted to EUR 31.0 million at the end of February, dropped to a loss of EUR 10.2 million in mid-March and recovered to a gain of EUR 9.6 million by 30 June.

The unrealised valuation gains and losses on assets in the Bank’s liquidity portfolio arise from changes in credit spreads. The Bank maintains a liquidity portfolio, which it invests in high quality bonds. When credit spreads widen, this results in negative valuations on the bonds. In periods of financial turbulence credit spreads tend to rise, which also affects NIB’s high quality bonds. When the Bank holds the bonds to maturity, so that they are not sold based on the current exit market value, any valuation losses and gains are expected to reverse, as the bonds will settle at par.

The unrealised valuation gains and losses on interest rate hedges mainly arise from the change of the interest rate spreads that are embedded in the Bank’s funding and lending transactions. When the Bank raises funds with fixed rates or offers borrowers fixed rate loans, it hedges the resulting interest rate risk using swaps, in which the fixed rate is swapped to short term money market floating rates. The valuation of the swaps and underlying transactions use different rates which might result in unrealised valuation gains and losses. It should be noted that as the Bank intends to hold these transactions to maturity these valuation gains and losses are expected to reverse in full.

TOTAL OPERATING EXPENSES

Total operating expenses amounted to EUR 27.9 million which is similar to the corresponding period in 2022. The Bank’s main expenses comprise personnel costs, cost related to administration, IT and depreciation. Personnel costs of EUR 18.4 million were EUR 2.1 million higher in the first half of 2023 compared to the same period in 2022 due to annual salary adjustments and a higher head count. The other operating expenses were EUR 2.3 million lower in the first half of 2023 compared to the same period in 2022, due to decreased depreciation as some assets reached the end of their depreciable lives towards the end of 2022. The cost/income ratio for period January-June 2023 was 18.5% compared to 47.6% in the same period in 2022 and 27.9% for the full year 2022.

INTERIM FINANCIAL REPORT / 7

NET LOAN LOSSES

During the first half of 2023, the Bank has recorded a positive amount for net loan losses of EUR 3.8 million compared to a positive amount of EUR 7.8 million for the corresponding period in 2022. The decrease is mainly driven by amortisations and prepayments of stage 2 loans. In general, there have been no significant observed changes in the credit quality of the overall loan portfolio and there were no new non-performing loans during the period and no realised losses.

OTHER COMPREHENSIVE INCOME

The Bank separates the foreign currency basis spread from financial instruments used in fair value hedge accounting and this separated amount is recorded in Other comprehensive income (OCI) which amounted to a gain of EUR 3.7 million for the period compared to a loss of EUR 22.8 million in the same period last year.

For financial liabilities recorded at fair value through the profit and loss, valuation changes due to changes in own credit spreads need to be recorded in OCI. For the six month period ended 30 June 2023, the Bank recorded a negative impact from these changes of EUR 0.8 million compared to positive amount of EUR 1.0 million in 2022.

TOTAL COMPREHENSIVE INCOME

All in all, NIB had a significantly higher total comprehensive income in the first half of 2023 compared to the same period in 2022. Total comprehensive income ended at EUR 130.0 million compared to EUR 17.0 million in the first half of 2022.

INTERIM FINANCIAL REPORT / 8

Financial position

LENDING OUTSTANDING The lending outstanding amounted to EUR 21,326 million. This comprises EUR 20,871 million of loans outstanding and investments of EUR 455 million in lending bonds recorded in debt securities. The total disbursements and investments during the period amounted to EUR 1,670 million, which is EUR 471 million lower than for the same period in 2022. More information regarding loans agreed can be found on our website at signed loans. The large foreign exchange difference arises mainly from loans in the Nordic currencies which weakened against the Euro.	LENDING HIGHLIGHTS
	in EUR millions, unless otherwise specified	Jan-Jun 2023		Jan-Jun 2022		2022		2021		2020		2019
	New signed loans, excluding labelled bonds		1,188		2,095		3,936		1,683		5,632		3,185
	New lending labelled bonds		54		108		178		169		34		131
	Total lending disbursements		1,670		2,142		3,705		2,440		4,853		2,676
	Number of new signed loans		25		31		54		36		59		55
	Number of new lending labelled bonds		3		6		10		14		4		9
	Lending outstanding		21,326		22,616		22,195		22,313		21,727		18,931
	Member countries		21,009		22,187		21,837		21,827		21,098		18,055
	Non-member countries		381		493		424		635		798		996
	Loan impairment provision		-64		-64		-66		-150		-169		-119

* Fair valuation of lending green bonds and hedging accounting.

INTERIM FINANCIAL REPORT / 9

MISSION FULFILMENT

NIB’s vision is for a prosperous and sustainable Nordic-Baltic region and the Bank has a dual mandate to provide lending that benefits the environment and/or improves productivity. All projects proposed for financing undergo an assessment of their potential impact on productivity and the environment of the member country area. The mission fulfilment is rated on a six-grade scale from “negative” to “excellent”. During the first half of 2023, projects achieving a “good” or “excellent” mandate rating accounted for 99.8% of the total amount of loans disbursed thereby exceeding the target of 95.0%. The focus on the green transition is evident in the environmental mandate result, which is at historical highs for NIB. The productivity mandate fulfilment also remains above target.

FUNDING

By the end of June, the Bank had raised EUR 4.7 billion in new funding which compares to EUR 5.5 billion in the same period last year. The strategy for 2023 is to complete benchmark transactions in US dollars and Euros, complemented with other public and private issues in order to maintain a diversified portfolio of currencies and a global investor base. The Bank will also continue issuing NIB Environmental Bonds. NIB’s estimated funding plan for 2023 is EUR 7.0-8.0 billion. On 7 March, NIB priced a five-year USD 1.5 billion global benchmark bond. The transaction had NIB’s largest USD orderbook to date. The Bank also issued a three-year GBP 600 million benchmark bond in January. Also in January, the first NIB Environmental Bond of the year, a seven-year EUR 500 million NEB was launched. In February, NIB returned to the Kauri market after more than two years by pricing a seven-year NZD 700 million bond on 3 February. The bond had a good demand and is the largest seven-year bond by any issuer in NZD in almost two years. In June, the Bank priced a new five-year AUD 300 million bond and a new five-year CHF 150 million bond. For a full list of funding transactions, please click here.

The large foreign exchange movement arises from funding in different currencies and especially the USD weakening against the Euro.

INTERIM FINANCIAL REPORT / 10

Financial statements

Statement of comprehensive income

In thousands of euro	Note		Jan-Jun 2023		Jan-Jun  2022		Jan-Dec  2022
Interest income from financial assets measured at amortised cost				430,595		117,645		365,505
Interest income from financial assets measured at fair value				104,458		11,303		51,385
Interest expense				-395,556		-25,358		-197,617
Net interest income		(2)		139,497		103,590		219,272
Commission income and fees received				3,303		5,464		8,805
Commission expense and fees paid				-1,340		-1,007		-2,012
Net fee and commission income				1,963		4,456		6,793
Net profit/loss on financial operations		(3)		9,612		-48,941		-37,497
Foreign exchange gains and losses				188		-158		-214
Total operating income				151,260		58,947		188,353
Expenses
General administrative expenses
Personnel expenses				-18,435		-16,288		-31,764
Other administrative expenses				-7,497		-7,451		-14,544
Depreciation				-2,007		-4,313		-6,308
Total operating expenses				-27,939		-28,053		-52,616
Profit before loan losses				123,321		30,895		135,737
Net loan losses		(4) (5)		3,764		7,834		3,536
Net profit for the period				127,085		38,729		139,273
Other comprehensive income
Items that will be reclassified to income statement
Fair value hedges - valuation of cross currency basis spread				3,728		-22,762		-3,029
Items that will not be reclassified to income statement
Changes in own credit risk on liabilities recorded at fair value				-817		1,031		6,103
Total other comprehensive income				2,912		-21,731		3,073
Total comprehensive income				129,996		16,998		142,346

The accompanying notes are an integral part of these financial statements.

INTERIM FINANCIAL REPORT / 11

Statement of financial position

In thousands of euro	Note		30 Jun 2023		30 Jun 2022		31 Dec 2022
Assets
Cash and cash equivalents				2,524,669		3,161,596		2,078,406
Placements with credit institutions				3,848,126		3,522,497		4,469,229
Debt securities				9,282,663		8,713,306		8,768,457
Other				4,667		4,262		4,532
				13,135,456		12,240,065		13,242,218
Loans outstanding		(6)		20,871,399		22,219,843		21,739,936
Intangible assets				10,459		6,676		8,704
Tangible assets, property and equipment				31,519		34,213		32,863
Other assets
Derivatives				1,864,037		1,928,003		1,817,179
Other assets				252,148		62,300		34,904
				2,116,184		1,990,303		1,852,083
Accrued interest and fees receivable				412,556		231,704		325,374
Total assets				39,102,243		39,884,400		39,279,583

The accompanying notes are an integral part of these financial statements.

INTERIM FINANCIAL REPORT / 12

In thousands of euro	Note		30 Jun 2023		30 Jun 2022		31 Dec 2022
Liabilities and equity
Liabilities
Short-term amounts owed to credit institutions				780,453		780,295		689,120
Debts evidenced by certificates		(7)		31,022,385		32,897,859		31,595,081
Other liabilities
Derivatives				2,548,440		1,909,908		2,539,630
Other liabilities				235,759		137,733		89,958
				2,784,199		2,047,641		2,629,588
Accrued interest and fees payable				309,226		182,971		264,811
Total liabilities				34,896,263		35,908,765		35,178,600
Equity				4,205,979		3,975,635		4,100,983
Total liabilities and equity				39,102,243		39,884,400		39,279,583

The accompanying notes are an integral part of these financial statements.

INTERIM FINANCIAL REPORT / 13

Statement of changes in equity

									Changes in own credit		Cost of
			Statutory reserve		General credit risk fund		Profit available         for appropriation		risk on liabilities		hedging         reserve
In thousands of euro	Paid-in capital								recorded at fair value				Total
Equity at 31 December 2021		845,543		836,884		2,153,680		159,159		-3,047		6,418		3,998,637
Profit for the period		-		-		-		38,729		-		-		38,729
Other comprehensive income		-		-		-		-		1,031		-22,762		-21,731
Total comprehensive income		0		0		0		38,729		1,031		-22,762		16,998
Transactions with owners in their capacity as owners
Appropriation of profit		-		-		119,158		-119,158		-		-		0
Dividends		-		-		-		-40,000		-		-		-40,000
Equity at 30 June 2022		845,543		836,884		2,272,838		38,729		-2,016		-16,344		3,975,635
Profit for the period		-		-		-		100,544		-		-		100,544
Other comprehensive income		-		-		-		-		5,072		19,733		24,805
Total comprehensive income		0		0		0		100,544		5,072		19,733		125,349
Equity at 31 December 2022		845,543		836,884		2,272,838		139,273		3,056		3,389		4,100,983
Profit for the period		-		-		-		127,085		-		-		127,085
Other comprehensive income		-		-		-		-		-817		3,728		2,912
Total comprehensive income		0		0		0		127,085		-817		3,728		129,996
Transactions with owners in their capacity as owners
Appropriation of profit		-		-		114,273		-114,273		-		-		0
Dividends		-		-		-		-25,000		-		-		-25,000
Equity at 30 June 2023		845,543		836,884		2,387,111		127,086		2,239		7,117		4,205,979

INTERIM FINANCIAL REPORT / 14

Cash flow statement

In thousands of euro	Jan-Jun 2023		Jan-Jun  2022		Jan-Dec  2022
Cash flows from operating activities
Net profit for the period		127,085		38,729		139,273
Adjustments:
Unrealised gains/losses of financial assets and liabilities held at fair value		-5,057		56,762		40,003
ECL non-lending activities		-301		1,337		1,309
Depreciation and write-down in value of tangible and intangible assets		2,007		4,313		6,308
Change in accrued interest and fees (assets)		-96,067		9,441		-84,228
Change in accrued interest and fees (liabilities)		29,534		-2,207		79,651
Net loan losses (ECL lending activities)		-3,764		-7,834		-3,536
Hedge accounting ineffectiveness		-3,966		-4,748		1,058
Other adjustments to the period´s profit		-10,095		7,737		6,512
Adjustments, total		-87,709		64,801		47,077
Lending
Disbursements of loans		-1,616,946		-2,034,557		-3,526,941
Repayments of loans		1,793,885		1,165,627		2,702,232
Lending, total		176,939		-868,929		-824,709
Cash flows from operating activities, total		216,315		-765,399		-638,359
Cash flows from investing activities
Placements and debt securities
Purchase of debt securities		-1,897,604		-1,685,055		-2,516,292
Sold and/or matured debt securities		1,276,987		1,057,490		1,729,779
Placements with credit institutions		-5,982,019		-4,593,030		-8,560,031
Sold and/or matured placements with credit institutions		6,603,130		5,005,696		7,972,838
Other financial placements		702		-26		-72
Placements and debt securities, total		1,196		-214,926		-1,373,778

The accompanying notes are an integral part of these financial statements.

INTERIM FINANCIAL REPORT / 15

In thousands of euro	Jan-Jun 2023		Jan-Jun  2022		Jan-Dec  2022
Other items
Acquisition of intangible assets		-1,932		-1,762		-4,051
Acquisition of tangible assets		-247		-132		-383
Change in other assets		10,765		-2,162		-7,740
Other items, total		8,586		-4,057		-12,174
Cash flows from investing activities, total		9,782		-218,983		-1,385,951
Cash flows from financing activities
Debts evidenced by certificates
Issues of new debt		4,481,010		5,515,846		9,630,309
Redemptions		-4,426,078		-3,283,974		-7,356,900
Debts evidenced by certificates, total		54,932		2,231,872		2,273,409
Other items
Change in swap receivables excluding fair value changes		-414,845		56,065		30,704
Change in swap payables excluding fair value changes		373,305		21,919		56,383
Change in other liabilities		147,032		5,649		1,594
Dividend paid		-25,000		-40,000		-40,000
Other items, total		80,493		43,633		48,682
Cash flows from financing activities, total		135,425		2,275,505		2,322,091
Change in cash and cash equivalents, net		361,522		1,291,123		297,780
Opening balance for cash and cash equivalents, net		1,389,286		1,074,754		1,074,754
Exchange rate adjustments		-6,592		15,424		16,752
Closing balance for cash and cash equivalents, net		1,744,216		2,381,301		1,389,286
Additional information to the statement of cash flows
Interest income received		447,871		138,390		332,661
Interest expense paid		-351,141		-27,559		-117,976

The accompanying notes are an integral part of these financial statements. The cash flow statement has been prepared using the indirect method and cash flow items cannot be directly concluded from the statements of financial positions.

INTERIM FINANCIAL REPORT / 16

Notes to the interim financial statements

Note 1: Segment information

In thousands of euro	Lending		Asset and         liability management		Portfolio management		Treasury total		Total
Net interest income		86,836		11,373		41,289		52,662		139,497
Commission income and fees received		3,152		151		-		151		3,303
Commission expense and fees paid		-8		-1,332		-		-1,332		-1,340
Net profit on financial operations		5,990		286		3,335		3,622		9,612
Foreign exchange gains and losses		-		188		-		188		188
Operating expenses		-17,719		-7,154		-3,066		-10,220		-27,939
Net loan losses		3,764		-		-		0		3,764
Profit for period ended 30 June 2023		82,014		3,513		41,558		45,071		127,085

INTERIM FINANCIAL REPORT / 17

In thousands of euro	Lending		Asset and         liability management		Portfolio management		Treasury total		Total
Net interest income		81,919		11,101		10,570		21,671		103,590
Commission income and fees received		5,235		228		-		228		5,464
Commission expense and fees paid		-10		-996		-1		-997		-1,007
Net profit on financial operations		-16,617		2,422		-34,746		-32,324		-48,941
Foreign exchange gains and losses		-		-158		-		-158		-158
Operating expenses		-16,857		-7,837		-3,359		-11,196		-28,053
Net loan losses		7,834		-		-		-		7,834
Profit for period ended 30 June 2022		61,505		4,759		-27,535		-22,776		38,729

In thousands of euro	Lending		Asset and         liability management		Portfolio management		Treasury total		Total
Net interest income		166,912		19,683		32,677		52,360		219,272
Commission income and fees received		8,409		396		-		396		8,805
Commission expense and fees paid		-19		-1,992		-2		-1,994		-2,012
Net profit on financial operations		-13,325		4,964		-29,136		-24,172		-37,497
Foreign exchange gains and losses		-		-214		-		-214		-214
Operating expenses		-31,884		-14,513		-6,220		-20,732		-52,616
Net loan losses		3,536		-		-		-		3,536
Profit for year ended 31 December 2022		133,629		8,324		-2,680		5,644		139,273

INTERIM FINANCIAL REPORT / 18

Note 2: Net interest income

In thousands of euro	Jan-Jun 2023	Jan-Jun 2022	Jan-Dec 2022
Cash and cash equivalents	41,580	-7,176	2,761
Placements with credit institutions	50,173	-7,657	-346
Debt securities	61,722	21,686	59,382
Loans outstanding	381,502	122,019	354,938
Other interest income	76	76	153
Total, interest income	535,054	128,948	416,889
Of which, interest income from financial assets measured at amortised cost	430,595	117,645	365,505
Short-term amounts owed to credit institutions	-9,842	2,051	-216
Short-term repurchase agreements	-80	33	-30
Debts evidenced by certificates	-362,733	-219,472	-514,049
Swap contracts and other interest expenses, net	-22,901	192,030	316,678
Total, interest expense	-395,556	-25,358	-197,617
Of which, interest expense from financial liabilities measured at amortised cost	-553,317	-37,832	-318,612
Net interest income	139,497	103,590	219,272

Note 3: Net profit/loss on financial operations

In thousands of euro	Jan-Jun 2023	Jan-Jun 2022	Jan-Dec 2022
Financial instruments held at fair value, realised gains and losses	266	4,392	10,613
Financial instruments held at fair value, unrealised gains and losses	5,057	-56,762	-40,003
Financial instruments held at amortised cost, realised gains and losses	22	19	-5,741
Expected credit loss on financial placements	301	-1,337	-1,309
Hedge accounting in effectiveness	3,966	4,748	-1,058
Net profit/loss on financial operations	9,612	-48,941	-37,497

INTERIM FINANCIAL REPORT / 19

Note 4: Expected credit loss

In thousands of euro	Stage 1		Stage 2		Stage 3		Total
Balance at 31 December 2021		32,103		42,252		78,090		152,445
Transfer to Stage 1		-		-		-		0
Transfer to Stage 2		-945		945		-		0
Transfer to Stage 3		-		-		-		0
New assets originated or disbursed		9,604		29		-		9,632
Amortisations and repayments		-1,345		-2,076		-		-3,421
Impact of remeasurment on existing assets		5,619		-25,341		9,788		-9,934
Foreign exchange adjustments and other changes		-		-		1,528		1,528
Net change income statement		12,933		-26,443		11,316		-2,195
Realised losses		-		-		-79,331		-79,331
Balance at 30 June 2022		45,036		15,808		10,075		70,919
Transfer to Stage 1		7,169		-7,169		-		0
Transfer to Stage 2		594		-594		-		0
Transfer to Stage 3		-		-1,101		1,101		0
New assets originated or disbursed		9,489		1,196		-		10,686
Amortisations and repayments		-2,581		520		-		-2,061
Impact of remeasurment on existing assets		-8,082		4,829		-3,876		-7,129
Foreign exchange adjustments and other changes		-		-		2,732		2,732
Net change income statement		6,589		-2,319		-43		4,228
Balance at 31 December 2022		51,624		13,490		10,033		75,147
Transfer to Stage 1		3,912		-3,912		-		0
Transfer to Stage 2		-197		197		-		0
Transfer to Stage 3		-		-		-		0
New assets originated or disbursed		8,545		481		-		9,026
Amortisations and repayments		-9,876		-2,329		-		-12,205
Impact of remeasurment on existing assets		-2,199		1,313		-		-886
Foreign exchange adjustments and other changes		-		-		-26		-26
Net change income statement		185		-4,250		-26		-4,091
Balance at 30 June 2023		51,810		9,240		10,007		71,056

ECL - STATEMENT OF FINANCIAL POSITION

In thousands of euro	30 Jun 2023		30 Jun 2022		31 Dec 2022
Loans outstanding		64,159		63,626		65,687
Commitments (recorded in other liabilities)		5,622		5,687		7,884
Financial placements		1,276		1,605		1,577
Total		71,056		70,919		75,147

ECL - STATEMENT OF COMPREHENSIVE INCOME

In thousands of euro	Jan-Jun 2023		Jan-Jun 2022		Jul-Dec 2022
Net result on financial operations (Note 3)		301		-1,337		29
Net loan losses (Note 5)		3,764		7,834		-4,298
Foreign exchange gains and losses		26		-4,302		42
Total recognised in income statement		4,091		2,195		-4,228

Note 5: Net loan losses

In thousands of euro	Jan-Jun 2023		Jan-Jun 2022		Jan-Dec 2022
Change in expected credit loss on performing loans		3,764		14,848		10,550
Change in expected credit loss on non-performing loans		-		-7,014		-7,014
Decrease of provisions to cover realised loan losses		-		-79,331		-79,331
Realised loan losses		-		79,331		79,331
Net loan losses		3,764		7,834		3,536

In the period Jan-Jun 2022 the bank had realised losses of EUR 79,331 thousand which had no impact to the income statement as the loans were fully impaired in previous years. There were no realised losses for the periods Jan-Jun 2023.

INTERIM FINANCIAL REPORT / 20

Note 6: Lending outstanding

In thousands of euro	Jan-Jun 2023		Jan-Jun 2022		Jan-Dec 2022
Opening Balance		22,194,850		22,312,579		22,312,579
Disbursements		1,670,446		2,141,646		3,705,191
Amortisations		-1,185,711		-951,166		-2,149,355
Prepayments		-648,874		-221,462		-559,877
Changes in expected credit losses		1,502		13,020		10,918
Foreign exchange movements		-736,240		-217,032		-499,682
Fair value adjustments		10,676		-28,412		-30,857
Hedge accounting adjustments		22,850		-430,192		-586,357
Other		-3,275		-3,201		-7,709
Closing balance		21,326,224		22,615,780		22,194,850
Loans outstanding		20,871,399		22,219,843		21,739,936
Lending bonds		454,825		395,937		454,914
Total Lending		21,326,224		22,615,780		22,194,850

Note 7: Debts evidenced by certificates

In thousands of euro	Jan-Jun 2023		Jan-Jun 2022		Jan-Dec 2022
Opening Balance		31,595,081		31,525,985		31,525,985
New debt issues		4,689,266		5,540,371		9,630,309
Amortisations		-4,377,614		-3,213,664		-7,217,679
Calls and buy backs		-56,170		-72,827		-154,590
Foreign exchange movements		-806,887		755,668		56,016
Fair value adjustments		-15,008		-29,060		-58,584
Hedge accounting adjustments		-13,989		-1,611,130		-2,201,745
Other		7,706		2,516		15,368
Closing balance		31,022,385		32,897,859		31,595,081

INTERIM FINANCIAL REPORT / 21

Note 8: Classification of financial instruments

In thousands of euro	Amortised cost		Fair value through profit and loss		Designated at fair value through profit and loss		Derivatives for hedging		Total
Financial assets
Cash and cash equivalents		2,143,305		381,364		-		-		2,524,669
Financial placements with credit institutions		380,800		3,467,326		-		-		3,848,126
Debt securities		3,073,674		6,208,989		-		-		9,282,663
Other financial placements		-		4,667		-		-		4,667
Loans outstanding		20,870,593		-		806		-		20,871,399
Derivatives		-		1,280,345		-		583,691		1,864,037
Total 30 June 2023		26,468,373		11,342,691		806		583,691		38,395,561
Financial liabilities
Short-term amounts owed to credit institutions		780,453		-		-		-		780,453
Debts evidenced by certificates		30,412,661		-		609,724		-		31,022,385
Derivatives		-		124,403		-		2,424,038		2,548,440
Total 30 June 2023		31,193,114		124,403		609,724		2,424,038		34,351,278

In thousands of euro	Amortised cost		Fair value through profit and loss		Designated at fair value through profit and loss		Derivatives for hedging		Total
Financial assets
Cash and cash equivalents		2,575,886		585,710		-		-		3,161,596
Financial placements with credit institutions		2,376,847		1,145,650		-		-		3,522,497
Debt securities		2,467,038		6,246,268		-		-		8,713,306
Other financial placements		-		4,262		-		-		4,262
Loans outstanding		22,212,547		-		7,296		-		22,219,843
Derivatives		-		1,320,976		-		607,027		1,928,003
Total 30 June 2022		29,632,318		9,302,866		7,296		607,027		39,549,507
Financial liabilities
Short-term amounts owed to credit institutions		780,295		-		-		-		780,295
Debts evidenced by certificates		32,427,630		-		470,229		-		32,897,859
Derivatives		-		67,175		-		1,842,733		1,909,908
Total 30 June 2022		33,207,925		67,175		470,229		1,842,733		35,588,062

INTERIM FINANCIAL REPORT / 22

In thousands of euro	Amortised cost		Fair value through profit and loss		Designated at fair value through profit and loss		Derivatives for hedging		Total
Financial assets
Cash and cash equivalents		2,047,976		30,430		-		-		2,078,406
Financial placements with credit institutions		1,144,678		3,324,551		-		-		4,469,229
Debt securities		2,783,415		5,985,042		-		-		8,768,457
Other financial placements		-		4,532		-		-		4,532
Loans outstanding		21,737,603		-		2,333		-		21,739,936
Derivatives		-		1,173,867		-		643,312		1,817,179
Total 31 Dec 2022		27,713,671		10,518,423		2,333		643,312		38,877,739
Financial liabilities
Short-term amounts owed to credit institutions		689,120		-		-		-		689,120
Debts evidenced by certificates		30,989,617		-		605,464		-		31,595,081
Derivatives		-		152,766		-		2,386,864		2,539,630
Total 31 Dec 2022		31,678,737		152,766		605,464		2,386,864		34,823,831

INTERIM FINANCIAL REPORT / 23

Note 9: Fair value of financial assets and liabilities

	30 Jun 2023				30 Jun 2022				31 Dec 2022
In thousands of euro	Carrying amount		Fair value		Carrying amount		Fair value		Carrying amount		Fair value
Financial assets
Cash and cash equivalents		2,524,669		2,524,669		3,161,596		3,161,596		2,078,406		2,078,406
Financial placements with credit institutions		3,848,126		3,848,126		3,522,497		3,522,497		4,469,229		4,466,449
Debt securities		9,282,663		9,467,047		8,713,306		8,623,907		8,768,457		8,585,498
Other financial placements		4,667		4,667		4,262		4,262		4,532		4,532
Loans outstanding		20,871,399		20,996,962		22,219,843		21,938,680		21,739,936		21,728,078
Derivatives		1,864,037		1,864,037		1,928,003		1,928,003		1,817,179		1,817,179
Total		38,395,561		38,705,508		39,549,507		39,178,945		38,877,739		38,680,142
Financial liabilities
Short-term amounts owed to credit institutions		780,453		780,453		780,295		780,295		689,120		689,120
Debt securities issued		31,022,385		30,978,465		32,897,859		32,905,290		31,595,081		31,530,608
Derivatives		2,548,440		2,548,440		1,909,908		1,909,908		2,539,630		2,539,630
Total		34,351,278		34,307,358		35,588,062		35,595,493		34,823,831		34,759,358

INTERIM FINANCIAL REPORT / 24

LEVEL OF FAIR VALUE MEASUREMENT FOR FINANCIAL INSTRUMENTS

	30 Jun 2023						30 Jun 2022						31 Dec 2022
In thousands of euro	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents		2,524,669		-		-		3,161,596		-		-		2,078,406		-		-
Financial placements with credit institutions		-		3,848,126		-		-		3,522,497		-		-		4,466,449		-
Debt securities		9,461,551		-		5,496		8,614,711		-		9,196		8,578,586		-		6,912
Other financial placements		-		-		4,667		-		-		4,262		-		-		4,532
Loans outstanding		-		20,996,156		806		-		21,931,375		7,305		-		21,725,743		2,335
Derivatives		-		1,843,796		20,241		-		1,898,451		29,552		-		1,793,720		23,459
Total		11,986,221		26,688,078		31,209		11,776,307		27,352,322		50,315		10,656,992		27,985,911		37,238
Financial liabilities
Short-term amounts owed to credit institutions		2,720		777,733		-		77		780,218		-		-		689,120		-
Debt evidenced by certificates		-		30,367,550		610,915		-		32,260,495		644,795		-		30,869,332		661,277
Derivatives		-		2,458,422		90,018		-		1,532,317		377,591				2,392,536		147,094
Total		2,720		33,603,705		700,933		77		34,573,030		1,022,386		-		33,950,988		808,371

INTERIM FINANCIAL REPORT / 25

CHANGES IN FAIR VALUES CATEGORISED AT LEVEL 3

	Financial assets										Financial liabilities
In thousands of euro	Debt securities		Other financial placements		Loans outstanding		Derivative assets		Level 3, total assets		Debt evidenced by ceritificates		Derivative Liabilities		Level 3, total liabilities
31 December 2021		11,591		8,661		9,645		43,525		73,423		615,358		393,449		1,008,807
New trades		-		26		-		-		26		130,720		4,380		135,100
Matured, buy backs and calls		-		-		-		-4,634		-4,634		-84,610		-3,692		-88,302
Amortisation		-2,354		-		-2,392		-9,581		-14,327		-35,299		-		-35,299
Capitalisations		-		-		-		-		0		3,836		10,915		14,751
Inflation adjustments		-		-		650		-8,604		-7,955		-8,604		-650		-9,254
Changes in fair values		-41		-4,426		92		-24,668		-29,043		-56,189		63		-56,126
Exchange rate adjustments		-		-		-690		33,515		32,825		79,583		-26,874		52,709
30 June 2022		9,196		4,262		7,305		29,552		50,315		644,795		377,591		1,022,386
New trades		-		46		-		1,121		1,167		201,102		12,218		213,320
Matured, buy backs and calls		-		-		-		-424		-424		-194,029		-261,157		-455,186
Amortisation		-2,342		-		-2,477		-224		-5,043		35,299		-		35,299
Capitalisations		-		-		-		1,131		1,131		-412		-894		-1,306
Inflation adjustments		-		-		-83		-17,538		-17,621		-17,538		83		-17,455
Changes in fair values		58		225		133		-27,680		-27,264		108,671		15		108,686
Exchange rate adjustments		-		-		-2,543		37,521		34,979		-116,609		19,237		-97,373
31 December 2022		6,912		4,532		2,335		23,459		37,238		661,277		147,094		808,371
New trades		-		-		-		-		0		-		-		0
Matured, buy backs and calls		-		-355		-		-13,345		-13,700		-58,452		-123,834		-182,287
Amortisation		-1,509		-		-632		-155		-2,296		-		-		0
Capitalisations		-		-		-		-		0		767		2,812		3,579
Inflation adjustments		-		-		-30		-16,456		-16,487		-16,456		30		-16,426
Changes in fair values		93		490		-5		-16,431		-15,853		7,613		5		7,618
Exchange rate adjustments		-		-		-861		43,168		42,307		16,167		63,911		80,078
30 June 2023		5,496		4,667		806		20,241		31,209		610,915		90,018		700,933

INTERIM FINANCIAL REPORT / 26

Note 10: Basis of preparation

These interim financial statements are presented in accordance with IAS 34 “Interim Financial Reporting”. The accounting policies and methods of computation are the same as described in Note 1 of NIB’s Financial Report 2022. The International Accounting Standards Board (IASB) has amended a number of standards, however they have not had any significant impact on the Bank’s financial statements.

There have been no material changes in relation to transactions with related parties compared to those described in Note 25 “Related party disclosures” in the 2022 IFRS financial statements.

RATIO DEFINITIONS

Equity/total assets =	Total equity at reporting date
	Total assets at reporting date
Profit/average equity =	Annualised profit for the period
	Average equity for the period
Cost/income =	Total operating expenses for the period
	Total operating income for the period

INTERIM FINANCIAL REPORT / 27

	HELSINKI, 24 AUGUST 2023
	Ole Hovland
	(Chair of the Board)
Julie Sonne	Merle Wilkinson	Pekka Morén
	(Deputy Chair of the Board)
Esther Finnbogadóttir	Līga Kļaviņa	Jurgita Uzielienė
Hans Lindblad
André Küüsvek
(President & CEO)

INTERIM FINANCIAL REPORT / 28

Review Opinion

To the Board of Directors of the Nordic Investment Bank

Report on Review of Interim Financial Report

INTRODUCTION

We have reviewed the condensed interim financial report of Nordic Investment Bank consisting of statement of financial position as of June 30, 2023 and the related statements of comprehensive income, changes in equity and cash flows for the six-month period then ended, and a summary of significant accounting policies and other explanatory notes.

Management is responsible for the preparation and presentation of this interim financial report in accordance with IAS 34. Our responsibility is to express a conclusion on this interim financial report based on our review.

SCOPE OF REVIEW

We conducted our review in accordance with International Standard on Review Engagements 2410, “Review of Interim Financial Information Performed by the Independent Auditor of the Entity.” A review of the interim financial report consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

CONCLUSION

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial report is not prepared, in all material respects in accordance with IAS 34.

Helsinki, 24 August 2023
Ernst & Young Oy	Ernst & Young AB
Authorized Public	Authorized Public
Accountant Firm	Accountant Firm
Terhi Mäkinen	Mona Alfredsson
Authorized Public	Authorized Public
Accountant	Accountant