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

Exhibit III

FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED DECEMBER 31, 2023

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, and IFRS may lack specific requirements or guidance that is available in 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 years 2021, 2022 and 2023 have been audited by Ernst &Young Oy and Ernst & Young AB as indicated in their reports included in the Bank’s previous Form 18-K filings for the financial years ended December 31, 2021, 2022 and 2023 and incorporated by reference into the Bank’s Registration Statement on Schedule B of the Securities Act (No. 333-250159) and elsewhere herein.

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”.

For the financial year 2021, 2022 and 2023 NIB appointed Authorized Public Accountant Terhi Mäkinen, representing the accounting firm Ernst &Young Oy, Finland, and Authorized Public Accountant Mona Alfredsson, representing Ernst & Young AB, Sweden as its independent joint auditors.

NORDIC INVESTMENT BANK

Statement of comprehensive income 1 January – 31 December

EUR 1,000	Note			2021		2022		2023
Interest income calculated using the effective interest method					197,089		340,983		1,105,329
Other interest income					4,159		177,595		574,826
Interest expense					145		-299,305		-1,381,515
Net interest income		(3) (4	)		201,393		219,272		298,640
Commission income and fees received		(5	)		9,199		8,805		7,934
Commission expense and fees paid					-2,165		-2,012		-2,275
Net fee and commission income					7,034		6,793		5,659
Net profit/loss on financial operations		(6	)		-23,663		-37,497		815
Foreign exchange gains and losses					13		-214		424
Total operating income					184,777		188,353		305,538
Expenses
General administrative expenses
Personnel expenses		(7	)		-29,182		-31,764		-35,395
Other administrative expenses		(8	)		-12,766		-14,544		-15,790
Depreciation		(14	)		-9,545		-6,308		-6,331
Total operating expenses					-51,493		-52,616		-57,516
Profit before loan losses					133,284		135,737		248,022
Net loan losses		(9	)		25,874		3,536		2,637
Net Profit for the year					159,158		139,273		250,659
Other Comprehensive income
Items that will be reclassified to income statement
Fair value hedges - valuation of cross currency basis spread					-21,612		-3,029		21,375
Items that will notbe reclassified to income statement
Changes in own credit risk on liabilities recorded at fair value					329		6,103		1,554
Total other comprehensive income					-21,283		3,073		22,929
Total Comprehensive income					137,876		142,346		273,588