Exhibit XI

 

NIB BORDIC INVESTMENT BANK FINANCING THE FUTURE interim Management Statement January- September 2019 [Unaudited]

 

Table of Contents

 

3		Highlights
3		Key figures and ratios
4		Operating and financial review
4		Total comprehensive income
6		Financial position
9		Financial statements
9		Statement of comprehensive income
10		Statement of financial position
12		Statement of changes in equity
13		Cash flow statement
15		Notes to the Interim Financial Statements
15		Note 1 - Net interest income
15		Note 2 - Net profit on financial operations
16		Note 3 - Expected credit loss
16		Note 4 - Net loan losses
17		Note 5 - Loans outstanding
17		Note 6 - Debts evidenced by certificates
17		Note 7 - Basis of preparation
17		Ratio definitions

 

2 | Interim Management Statement

 

Highlights

The Nordic Investment Bank has been established to serve societal interests. In practice this is done by financing projects that improve productivity and benefit the environment of the Nordic and Baltic countries. In order to fulfil its purpose efficiently, the Bank needs to be financially strong.

During the nine month period ending 30 September 2019, a total of EUR 1,608 million in new loans were agreed and EUR 1,799 million were disbursed. The disbursements were lower than the historically high level of 2018. The net profit for the period amounted to EUR 123 million, down from EUR 141 million for the corresponding period in 2018.

In January, NIB issued its first Nordic–Baltic Blue Bond. The five-year SEK 2 billion bond was launched under the NIB Environmental Bond Framework and the proceeds will finance investments in water resource management and protection.

At its annual meeting on 24 May 2019, the Nordic Investment Bank’s Board of Governors approved amendments to NIB’s Statutes, which will be submitted to undergo the required national procedures of member countries. The intent of the amendments is to ensure continued adherence with sound banking principles and maintain the Bank’s relevance to fulfil its mandate.

In July, NIB issued a new 20-year DKK 1 billion benchmark issue. This is the first bond NIB has listed on Nasdaq Copenhagen and the first DKK issue after more than a twenty year absence in this market.

In September, Japan’s Government Pension Investment Fund (GPIF) and NIB launched a joint collaboration to promote the integration of environmental, social and governance (ESG) considerations in investment decisions and the growth of sustainable finance markets.

Key figures and ratios

 

In millions of euro unless otherwise specified		Jan-Sep 2019*				Jan-Sep 2018*				Jan-Dec 2018
Net interest income			160				167				223
Profit before net loan losses			118				136				167
Net profit			123				141				173
Loans disbursed			1,799				2,606				4,047
Loans agreed			1,608				2,534				4,330
Mandate fulfilment **			99	%			88	%			91	%
Loans outstanding			18,627				18,508				19,065
Total assets			32,722				31,206				31,710
New debt issues			3,847				6,224				6,620
Debts evidenced by certificates			26,287				24,935				25,651
Total equity			3,673				3,536				3,578
Equity/total assets ***			11.2	%			11.3	%			11.3	%
Profit/average equity ***			4.5	%			5.3	%			4.9	%
Cost/income ***			23.7	%			18.7	%			20.6	%
Number of employees (average during the period)			198				197				197

 

*	Unaudited figures, to be read in conjunction with NIB’s 2018 audited financial statements

**	See page 7 for mandate fulfilment explanation

***	See page 17 for ratio definitions

 

3 | Interim Management Statement

 

Operating and financial review

Total comprehensive income

January–September 2019 compared to January–September 2018

NET PROFIT

The net profit for the period January–September 2019 amounted to EUR 123.4 million, down from EUR 140.6 million in the same period last year. Total operating income decreased from EUR 167.8 million to EUR 155.0 million. Total operating expenses increased by EUR 5.4 million to EUR 36.8 million, resulting in profit before net loan losses decreasing to EUR 118.2 million (January–September 2018: EUR 136.5 million).

NET INTEREST INCOME

Net interest income for the period amounted to EUR 159.6 million (January–September 2018: EUR 166.9 million). Net interest income on lending activities is similar to the corresponding period in 2018, however the interest income on treasury activities decreased by EUR 7.6 million due to the low yield environment.

NET FEE AND COMMISSION INCOME

Net fee and commission income for the period January–September 2019 was EUR 4.8 million, compared to EUR 7.2 million in 2018, due to the lower volume of loans agreed and disbursed in the nine month period under review.

 

NET PROFIT   EUR m		NET INTEREST INCOME   EUR m		NET FEE AND COMMISSION INCOME   EUR m

 

4 | Interim Management Statement

 

NET PROFIT ON FINANCIAL OPERATIONS

The net loss on financial operations for the period January–September 2019 totalled EUR 9.5 million, which was EUR 3.4 million more than the same period in 2018. The result includes unrealised gains of EUR 11.2 million. The unrealised results will reverse when the underlying transactions reach maturity.

TOTAL OPERATING EXPENSES

Total operating expenses were EUR 5.4 million higher than in 2018. The increase is mainly related to the commencement of depreciation of the Bank’s new treasury IT system and also on recently renovated premises. The Bank continues to focus on costs to ensure an efficient ratio of operating cost to income.

NET LOAN LOSSES

The total provision for expected credit losses on assets held at amortised cost amounted to EUR 119.0 million at 30 September 2019, which is EUR 1.2 million less than at 31 December 2018. This provision covers both loans outstanding and treasury assets held at amortised cost. There were no new non-performing loans during the period and no realised losses. The gain recognised in the income statement for net loan losses of EUR 5.2 million relates to recoveries on non-performing loans of EUR 1.4 million and EUR 3.8 million related to the improved credit quality of performing loans.

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 EUR 11.6 million for the period (January–September 2018: EUR -3.4 million). The resulting total comprehensive income for the period amounted to EUR 135.0 million, compared to EUR 137.2 million in 2018.

 

NET PROFIT ON FINANCIAL OPERATIONS   EUR m		TOTAL OPERATING EXPENSES   EUR m		NET LOAN LOSSES   EUR m

 

				*  The gains recognised in “net loan losses” above are due to decreases in the ECL provision.

 

5 | Interim Management Statement

 

Financial position

LENDING OUTSTANDING

Total lending outstanding amounted to EUR 18,692 million, comprising loans outstanding of EUR 18,627 million and Lending Green Bonds (“LGB”) recorded in debt securities of EUR 65 million. Demand for NIB’s long-term financing remains strong. However, the disbursements in the period were lower than the historically high level in 2018. The total disbursements during the period amounted to EUR 1,799 million, which is EUR 807 million lower than for the same period in 2018. Total repayments amounted to EUR 1,086 million compared to EUR 258 million for the corresponding period in 2018.

Total lending outstanding, excluding exchange rate and valuation effects, decreased from EUR 19,065 million at 31 December 2018 to EUR 18,615 million. The book value amounted to EUR 18,692 million due to foreign exchange and fair valuations/transfers and hedge accounting effects of EUR 50 million and EUR 126 million, respectively.

DEVELOPMENT OF LENDING OUTSTANDING DURING 2019

EUR m

 

 

*	Fair valuation of lending green bonds and hedging accounting.

 

6 | Interim Management Statement

 

LENDING HIGHLIGHTS

 

in EUR millions, unless otherwise specified		Jan-Sep* 2019				2018				2017				2016				2015
Loans agreed excluding green bond investments			1,543				4,269				3,665				4,221				2,830
Green bond investments			65				61				147				143				—
Total disbursements			1,799				4,047				3,147				3,373				2,716
Total loans disbursed by business area:
Energy and water			178				840				737				1,154				483
Infrastructure, transport and telecom			221				1,192				818				791				907
Industries and services			569				1,339				932				836				932
Financial institutions and SMEs			831				675				660				593				394
Number of loans agreements in period			27				58				55				58				45
Number of green bond investments in period			4				3				9				8				—
Loans outstanding			18,627				19,065				17,232				16,640				15,627
Member countries			17,678				17,960				15,867				14,831				13,347
Non-member countries			1,066				1,222				1,504				1,948				2,396
Loan impairment provision			-116				-117				-139				-139				-116
LGB’s**			65				—				—				—				—

 

*	Unaudited figures, to be read in conjunction with NIB’s 2018 audited financial statements

**	In prior periods LGBs were recorded as part of loans outstanding. They are now presented in Debt securities on the balance sheet and amounted to EUR 65 million

MISSION FULFILMENT

Projects financed by NIB contribute to the Bank’s mission of improving productivity and the environment in the Nordic–Baltic countries. Before approval is given in each individual case, all eligible projects are evaluated and rated against the criteria developed based on the Bank’s mission. In the nine month period that ended on 30 September 2019, loans achieving a “good” or “excellent” mandate rating accounted for almost 100% of the total amount of loans agreed.

MANDATE RATING FOR AGREED LOANS

(Excluding lending green bond purchases)

 

 

7 | Interim Management Statement

 

FUNDING

The Bank expects to fund between EUR 5.0 billion and EUR 6.0 billion during 2019. The strategy for 2019 is to complete two benchmark transactions in US dollars or euros, complemented by other public and private issues, to maintain a diversified portfolio of currencies and a global investor base. In addition, NIB’s aim is to continue issuing NIB Environmental Bonds. By the end of September, the Bank had raised EUR 3.8 billion (January–September 2018: EUR 6.2 billion) in new funding.

In January, NIB issued its first Nordic–Baltic Blue Bond. The five-year SEK 2 billion bond was launched under the NIB Environmental Bond Framework and will focus on investments within water resource management and protection. In October, the Bank issued its second environmental bond for the year, a seven-year EUR 500 million bond.

In May, the Bank issued a USD 1 billion benchmark which has a final maturity of 21 May 2024. After the period end, the Bank issued a USD 1 billion benchmark which matures on 17 October 2022.

In July, NIB issued a new 20-year DKK 1 billion benchmark issue. This is the first bond NIB has listed on Nasdaq Copenhagen and the first DKK issue after more than a twenty year absence in this market.

DEBT DEVELOPMENT DURING 2019

EUR m

 

 

8 | Interim Management Statement

 

Financial statements

Statement of comprehensive income

 

In thousands of euro		NOTE		Jan-Sep 2019*				Jan-Sep 2018*				Jan-Dec 2018
Interest income from financial assets measured at amortised cost					239,831				218,669				298,371
Interest income from financial assets measured at fair value					20,008				17,443				24,711
Interest expense					-100,229				-69,245				-99,590
Net interest income		(1)			159,610				166,867				223,492
Commission income and fees received					6,402				9,235				13,271
Commission expense and fees paid					-1,560				-2,069				-2,546
Net fee and commission income					4,842				7,166				10,725
Net profit/loss on financial operations		(2)			-9,546				-6,131				-23,776
Foreign exchange gains and losses					98				-60				-160
Total operating income					155,004				167,843				210,281
Expenses
General administrative expenses
Personnel expenses					-22,561				-21,722				-28,971
Other administrative expenses					-8,947				-8,198				-12,321
Depreciation					-5,284				-1,472				-1,937
Total operating expenses					-36,791				-31,391				-43,228
Profit before loan losses					118,213				136,452				167,053
Net loan losses		(4)			5,193				4,187				5,957
Net profit for the period					123,405				140,639				173,009
Other comprehensive income
Items that will not be reclassified to income statement
Fair value hedges
Valuation of cross currency basis spread					11,601				-3,438				6,160
Total other comprehensive income					11,601				-3,438				6,160
Total comprehensive income					135,007				137,201				179,169

 

*	Unaudited figures, to be read in conjunction with NIB’s 2018 audited financial statements

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

 

9 | Interim Management Statement

 

Statement of financial position

 

In thousands of euro		NOTE		30 Sep 2019*				30 Sep 2018*				31 Dec 2018
ASSETS
Cash and cash equivalents					1,655,515				4,742,166				4,757,905
Financial placements
Placements with credit institutions					3,248,867				9,021				9,021
Debt securities					6,817,211				6,660,319				6,454,748
Other					6,457				15,167				15,761
					10,072,535				6,684,507				6,479,531
Loans outstanding		(5)			18,627,091				18,508,363				19,065,056
Intangible assets					12,294				7,984				9,205
Tangible assets, property and equipment					34,096				30,886				30,771
Other assets
Derivatives					1,760,246				956,641				1,068,260
Other assets					305,125				4,830				4,520
					2,065,371				961,472				1,072,781
Accrued interest and fees receivable					255,390				270,576				294,421
TOTAL ASSETS					32,722,292				31,205,955				31,709,670

 

*	Unaudited figures, to be read in conjunction with NIB’s 2018 audited financial statements

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

 

10 | Interim Management Statement

 

In thousands of euro		NOTE		30 Sep 2019*				30 Sep 2018*				31 Dec 2018
LIABILITIES AND EQUITY
Liabilities
Short-term amounts owed to credit institutions					986,484				362,822				575,394
Long-term amounts owed to credit institutions					8,435				9,486				9,486
					994,919				372,308				584,879
Repurchase agreements					—				217,232				—
Debts evidenced by certificates		(6)			26,286,696				24,934,626				25,651,370
Other liabilities
Derivatives					1,188,709				1,898,384				1,649,158
Other liabilities					374,056				28,973				10,080
					1,562,765				1,927,357				1,659,238
Accrued interest and fees payable					205,352				218,846				236,629
Total liabilities					29,049,731				27,670,368				28,132,116
Equity					3,672,561				3,535,586				3,577,554
TOTAL LIABILITIES AND EQUITY					32,722,292				31,205,955				31,709,670

 

*	Unaudited figures, to be read in conjunction with NIB’s 2018 audited financial statements

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

 

11 | Interim Management Statement

 

Statement of changes in equity

 

In thousands of euro		PAID-IN CAPITAL				STATUTORY RESERVE				GENERAL CREDIT RISK FUND				SPECIAL CREDIT RISK FUND PIL				PROFIT AVAILABLE FOR APPROPRIATION				HEDGING RESERVE				TOTAL
EQUITY AT 1 JANUARY 2018			418,602				686,325				1,694,594				445,919				210,981				-3,035				3,453,386
Profit for the period			—				—				—				—				140,639				—				140,639
Other comprehensive income			—				—				—				—				—				-3,438				-3,438
Total comprehensive income			0				0				0				0				140,639				-3,438				137,201
Transactions with owners in their capacity as owners
Appropriation of profit			—				—				155,981				—				-155,981				—				0
Dividends			—				—				—				—				-55,000				—				-55,000
EQUITY AT 30 SEPTEMBER 2018			418,602				686,325				1,850,575				445,919				140,639				-6,473				3,535,586
Profit for the period			—				—				—				—				32,370				—				32,370
Other comprehensive income			—				—				—				—				—				9,598				9,598
Total comprehensive income			0				0				0				0				32,370				9,598				41,968
Transactions with owners in their capacity as owners
Realisation of PIL losses			—				—				18,978				-18,978				—				—				0
EQUITY AT 31 DECEMBER 2018			418,602				686,325				1,869,553				426,941				173,009				3,124				3,577,554
Profit for the period			—				—				—				—				123,405				—				123,405
Other comprehensive income			—				—				—				—				—				11,601				11,601
Total comprehensive income			0				0				0				0				123,405				11,601				135,007
Transactions with owners in their capacity as owners
Appropriation of profit			—				—				133,009				—				-133,009				—				0
Dividends			—				—				—				—				-40,000				—				-40,000
EQUITY AT 30 SEPTEMBER 2019			418,602				686,325				2,002,562				426,941				123,405				14,725				3,672,561

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

 

12 | Interim Management Statement

 

Cash flow statement

 

In thousands of euro		Jan-Sep 2019*				Jan-Sep 2018*				Jan-Dec 2018
Cash flows from operating activities
Net profit for the period			123,405				140,639				173,009
Adjustments:
Unrealised gains/losses of financial assets held at fair value			15,109				-14,254				-14,275
ECL non-lending activities			50				-20				-20
Depreciation and write-down in value of tangible and intangible assets			5,284				1,472				1,937
Change in accrued interest and fees (assets)			39,057				1,466				-22,377
Change in accrued interest and fees (liabilities)			-31,280				9,334				27,117
Net loan losses (ECL lending activities)			-5,193				-4,187				-5,957
Adjustment to hedge accounting			1,418				20,647				37,523
Other adjustments to the period’s profit			-3,327				3,277				7,031
Adjustments, total			21,118				17,736				30,979
Lending
Disbursements of loans and investment in lending green bonds			-1,734,370				-2,605,739				-4,046,710
Repayments of loans			2,205,687				1,325,072				2,113,670
Transfers of lending green bonds to debt securities			48,149				—				—
Capitalisations, redenominations, index adjustments, etc.			-9,756				223				897
Lending, total			509,711				-1,280,444				-1,932,143
Cash flows from operating activities, total			654,234				-1,122,069				-1,728,154
Cash flows from investing activities
Placements and debt securities
Purchase of debt securities			-1,616,063				-1,788,946				-1,891,112
Transfers of lending green bonds to debt securities			-48,149				—				—
Sold and/or matured debt securities			1,556,495				1,739,979				2,048,213
Placements with credit institutions			-3,239,837				-250				-250
Other financial placements			7,819				351				218
Placements and debt securities, total			-3,339,735				-48,866				157,069

 

*	Unaudited figures, to be read in conjunction with NIB’s 2018 audited financial statements

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

 

13 | Interim Management Statement

 

In thousands of euro		Jan-Sep 2019*				Jan-Sep 2018*				Jan-Dec 2018
Other items
Acquisition of intangible assets			-1,980				-2,664				-3,885
Acquisition of tangible assets			-4,795				-2,071				-2,421
Change in other assets			-2,960				23,427				23,680
Other items, total			-9,735				18,692				17,373
Cash flows from investing activities, total			-3,349,470				-30,174				174,443
Cash flows from financing activities
Debts evidenced by certificates
Issues of new debt			3,734,031				6,224,272				6,619,670
Redemptions			-4,279,651				-4,919,521				-4,924,256
Debts evidenced by certificates, total			-545,620				1,304,751				1,695,415
Other items
Long-term placements from credit institutions			-1,051				-7,842				-7,842
Change in swap receivables excluding fair value changes			-274,706				17,530				-60,891
Change in swap payables excluding fair value changes			-372,659				125,021				34,237
Change in other liabilities			379				17,596				-2,206
Dividend paid			-40,000				-55,000				-55,000
Other items, total			-688,037				97,305				-91,702
Cash flows from financing activities, total			-1,233,657				1,402,057				1,603,713
CHANGE IN CASH AND CASH EQUIVALENTS, NET			-3,928,893				249,813				50,002
Opening balance for cash and cash equivalents, net			4,182,512				4,073,797				4,073,797
Exchange rate adjustments			415,412				-161,497				58,714
Closing balance for cash and cash equivalents, net			669,032				4,162,112				4,182,512
Additional information to the statement of cash flows
Interest income received			298,869				237,580				300,706
Interest expense paid			-131,505				-59,911				-72,473

 

*	Unaudited figures, to be read in conjunction with NIB’s 2018 audited financial statements

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.

 

14 | Interim Management Statement

 

Notes to the interim financial statements

Note 1: Net interest income

 

In thousands of euro		Jan-Sep 2019				Jan-Sep 2018				Jan-Dec 2018
Cash and cash equivalents			-1,025				-5,780				-6,686
Placements with credit institutions			-7,477				-58				-98
Debt securities			45,477				45,567				60,913
Loans outstanding			222,741				196,383				268,953
Other interest income			123				—				—
Total, interest income			259,839				236,112				323,082
Of which, interest income from financial assets measured at amortised cost			239,831				218,669				298,371
Short-term amounts owed to credit institutions			2,046				479				455
Long-term amounts owed to credit institutions			38				58				72
Short-term repurchase agreements			—				291				345
Debts evidenced by certificates			-411,270				-433,389				-578,171
Swap contracts and other interest expenses, net			308,957				363,316				477,708
Total, interest expense			-100,229				-69,245				-99,590
Of which, interest expense from financial liabilities measured at amortised cost			-245,968				-204,241				-286,705
Net Interest Income			159,610				166,867				223,492

Note 2: Net profit on financial operations

 

In thousands of euro		Jan-Sep 2019				Jan-Sep 2018				Jan-Dec 2018
Financial instruments held at fair value, realised gains and losses			1,708				5,411				7,163
Financial instruments held at fair value, unrealised gains and losses			-9,763				8,725				6,484
Financial instruments held at amortised cost, realised gains and losses			14				154				154
Adjustment to hedge accounting, unrealised gains and losses of fair value hedges			-1,418				-20,647				-37,523
Repurchase of NIB bonds, other items			-87				227				-54
Net profit on financial operations			-9,546				-6,131				-23,776

 

15 | Interim Management Statement

 

Note 3: Expected credit loss

 

In thousands of euro		STAGE 1				STAGE 2				STAGE 3				TOTAL
Balance at 1 January 2018			25,224				23,291				93,194				141,709
Transfer to Stage 1			3,686				-3,686				—				0
Transfer to Stage 2			-1,862				1,862				—				0
Transfer to Stage 3			—				—				—				0
New assets originated or purchased			4,892				56				—				4,948
Amortisations and repayments			-3,085				-2,444				—				-5,529
Impact of remeasurment on existing assets			-824				-5,270				2,469				-3,625
Foreign exchange adjustments and other changes			—				—				2,138				2,138
Net change income statement			2,806				-9,482				4,607				-2,069
Balance at 30 September 2018			28,030				13,809				97,801				139,640
Transfer to Stage 1			1,190				-1,190				—				0
Transfer to Stage 2			554				-554				—				0
Transfer to Stage 3			—				—				—				0
New assets originated or purchased			3,384				81				—				3,465
Amortisations and repayments			-3,428				-1,299				—				-4,727
Impact of remeasurment on existing assets			-3,651				3,142				—				-509
Foreign exchange adjustments and other changes			—				—				1,519				1,519
Net change income statement			-1,950				179				1,519				-252
Realised losses			—				—				-19,223				-19,223
Balance at 31 December 2018			26,080				13,988				80,097				120,165
Transfer to Stage 1			1,754				-1,754				—				0
Transfer to Stage 2			0				0				—				0
Transfer to Stage 3			0				0				—				0
New assets originated or purchased			4,040				65				—				4,105
Amortisations and repayments			-3,544				-2,001				—				-5,545
Impact of remeasurment on existing assets			-1,047				-1,269				-1,387				-3,703
Foreign exchange adjustments and other changes			—				—				3,970				3,970
Net change income statement			1,203				-4,959				2,583				-1,173
Balance at 30 September 2019			27,283				9,029				82,679				118,992

 

ECL - STATEMENT OF FINANCIAL POSITION
In thousands of euro		30 Sep 2019				30 Sep 2018				31 Dec 2018
Financial placements			331				282				281
Loans outstanding and commitments			118,661				139,358				119,884
Total			118,992				139,640				120,165
ECL - STATEMENT OF COMPREHENSIVE INCOME
In thousands of euro		Jan-Sep 2019				Oct-Dec 2018				Jan-Sep 2018
Net result on financial operations			-50				0				20
Net loan losses (Note 4)			5,193				1,770				4,187
Foreign exchange gains and losses			-3,970				-1,519				-2,138
Total recognised in income statement			1,173				252				2,069

Note 4: Net loan losses

 

In thousands of euro		Jan-Sep 2019				Jan-Sep 2018				Jan-Dec 2018
Change in expected credit loss on performing loans			3,805				6,656				8,426
Change in expected credit loss on non-performing loans			1,387				-2,469				-2,469
Decrease of provisions to cover realised loan losses			—				—				19,223
Realised loan losses			—				—				-19,223
Net loan losses			5,193				4,187				5,957

The gains recognised for “Net loan Losses” arise from the improved credit quality of the loan portfolio during the periods under review. There were no realised losses for the periods Jan-Sep 2019 or Jan-Sep 2018. In the period Oct-Dec 2018, the Bank recorded realised losses of EUR 19,223 thousand comprising principal of EUR 18,978 and interest of EUR 245 thousand.

 

16 | Interim Management Statement

 

Note 5: Lending outstanding

 

In thousands of euro		Jan-Sep 2019				Oct-Dec 2018				Jan-Sep 2018
Opening Balance			19,065,056				18,508,363				17,231,623
Disbursements			1,798,872				1,440,971				2,605,739
Amortisations			-1,120,083				-469,547				-1,067,445
Prepayments			-1,085,603				-319,051				-257,627
Changes in expected credit losses			4,832				2,083				4,140
Foreign exchange movements			-49,685				-123,850				31,445
Valuations and hedge accounting			126,711				26,985				-39,512
Reclassifications and other movements			-48,494				-897				—
Closing balance			18,691,606				19,065,056				18,508,363

Lending outstanding at 30 September 2019, comprises loans outstanding of EUR 18,627 million and lending green bonds of EUR 65 million recorded in Debt securities.

Note 6: Debts evidenced by certificates

 

In thousands of euro		Jan-Sep 2019				Oct-Dec 2018				Jan-Sep 2018
Opening Balance			25,651,370				24,934,626				23,999,754
New debt issues			3,846,847				395,399				6,224,272
Amortisations			-3,952,529				0				-4,722,343
Calls and buy backs			-490,580				0				-185,101
Foreign exchange movements			406,171				96,980				-104,051
Valuations and hedge accounting			826,934				229,100				-265,828
Other			-1,517				-4,735				-12,077
Closing balance			26,286,696				25,651,370				24,934,626

Note 7: Basis of preparation

This interim management statement is not presented in accordance with IAS 34 “Interim Financial Reporting”, as this statement excludes a number of disclosures. The accounting policies and methods of computation are the same as described in Note 1 of NIB’s Financial Report 2018, with the exception of IFRS 16, as described below.

IFRS 16 Leases substantially changed the accounting treatment by recognising more leases as liabilities with corresponding right of use assets on the balance sheet. The standard replaced IAS 17 Leases and is effective as of 1 January 2019. However, the Bank does not have significant leasing commitments and therefore the new standard had an immaterial impact.

RATIO DEFINITIONS

 

Equity/total assets  =		Total equality 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

 

17 | Interim Management Statement