25.10.2004, NORDIC INVESTMENT BANK OBL. NIB07, RIG

Rigas Stock Exchange                                        25.10.2004.



NIB's Interim Report January - August 2004



INCREASED PROFITS



NIB shows good results for the first eight months of the year. Profits

for the period rose to EUR 111 million, which was an 11% increase

compared with the corresponding period last year. Net interest income

rose to EUR 109 million (corresponding period in 2003: EUR 102 million).



NIB's total assets amounted to EUR 16.9 billion, compared with EUR 16.7

billion at year-end 2003. Net liquidity rose to EUR 3,189 million,

compared with EUR 2,744 million at year-end. During the period under

review, the Bank paid its owners, the Nordic countries, EUR 41.3 million

in dividends out of profits for year 2003.



New loan agreements entered into by the Bank during the period amounted

to EUR 1,031 million (1,029), while loans disbursed amounted to EUR 779

million (910). Loans outstanding amounted to EUR 10,472 million on 31

August 2004, compared with EUR 10,522 million at year-end 2003. NIB's

clients made considerable prepayments during the period under review.

This was the case for NIB's lending both within and outside the Nordic

countries.



During the period, NIB carried out 13 borrowing transactions in 6

different currencies, in an amount corresponding to EUR 1,545 million

(2,759). Call options on a total of EUR 630 million previously issued

bonds were not exercised, thus bringing the total borrowing during the

period to EUR 2,175 million. In the spring of 2004, the Bank launched

its third global benchmark loan of USD 1 billion in the form of

five-year bonds.



The quality of the Bank's loan portfolios and of its financial

counterparties remains at a high level. Reversals of previously made

provisions for possible loan losses were larger than new provisions made

during the period. The net effect was a positive contribution to the

Bank's profit of EUR 3.3 million.



The Bank is expected to show good results for the year 2004 as a whole,

with a return on equity in line with the first eight months of the year.



NEW MEMBER COUNTRIES

NIB's ownership base will be broadened at the beginning of 2005, when

the three Baltic countries, Estonia, Latvia and Lithuania, will become

members of the Bank. Representatives for the Nordic and Baltic

countries' governments signed a new Agreement on NIB in February 2004.

The Agreement is to be ratified by all eight countries, and means that

Estonia, Latvia, and Lithuania will become members of NIB on an equal

footing with NIB's present five members: Denmark, Finland, Iceland,

Norway, and Sweden. As a consequence of the new ownership structure, NIB

will have new Statutes. Ratification is in progress, and has already

been concluded in three of the countries.



NORDIC LENDING

The energy sector was the largest recipient of Nordic loans during the

period under review. Among other investments, NIB financed investments

in hydro- and geothermal power stations in Iceland, in a bio-fuelled

power station in Austria, as well as investments in environment-friendly

energy production in Norway and Sweden. In Finland and Denmark, the Bank

financed improvements of the electrical transmission networks.



INTERNATIONAL LENDING

International lending continues to be dominated by loans for

infrastructure investments, particularly within the energy,

transportation, and telecommunications sectors. Among its loans, NIB has

financed investments for the expansion of Tunisia's mobile telephone

network, as well as for improvement in Rumania's state-owned power

network.



The Bank's Project Investment Loan facility (PIL) was increased from EUR

3,300 million to EUR 4,000 million on 1 July 2004. New guidelines for

the PIL guarantees became effective at the same time. The increase

provides greater possibilities for the Bank to grant loans to countries

that are not members of NIB.



ENVIRONMENTAL FINANCING

NIB places a great deal of importance on financing of environmental

projects. During the period, the Bank granted nine new environmental

loans, totalling EUR 145 million. Of total loans disbursed during the

period, almost 15% were environmental loans. One of the Bank's loans was

granted for investments that will result in reduced emissions of

pollutants into water and air at a Swedish pulp factory. NIB also

granted a loan for investments in a new sewerage system in Reykjavik.



Within the framework of the so-called Ladoga programme, loans were

granted to several projects, e.g. projects within the pulp and paper

industry. The Ladoga programme is an environmental investment programme

for the area around lakes Ladoga and Onega in north-western Russia. The

programme is mainly geared toward large private companies within the

paper, pulp, and metal industries in the area. NIB launched the

programme at the end of the year 2003 within the Northern Dimension

Environmental Partnership (NDEP). In July, NIB assumed the chairmanship

of the Steering Group for NDEP, whose aim is to coordinate and

streamline the financing of environmental projects with cross-border

effects within the Northern Dimension's area. NDEP has established an

investment programme of almost EUR 2 billion. Projects corresponding to

half of this amount are already in the process of being implemented.



KEY FIGURES (in EUR million)

                                   1-8/2004      1-8/2003     1-12/2003

Net interest income                     109           102           155

Profit                                  111           100           151

Loans disbursed                         779           910         1,841

New loan agreements                   1,031         1,029         1,859

New debt issues                       1,545         2 759         3,258

Profit/average equity (%)               9.9           9.5           9.5

                                31 Aug 2004   31 Aug 2003   31 Dec 2003

Loans outstanding                    10,472        10 323        10,522

Total assets                         16,908        17 303        16,666

Net liquidity                         3,189         3 802         2,744

                                                                      

Number of employees                     152           147           147





NIB is a multilateral financial institution which finances both private

and public projects. NIB offers long-term loans and guarantees on market

terms in and outside its member countries. The Bank has the highest

possible credit rating, AAA/Aaa, with the leading rating agencies,

Standard & Poor's and Moody's. NIB was established in 1975 by the Nordic

countries, and will get three additional owner countries in 2005, when

Estonia, Latvia, and Lithuania become members of the Bank.



Fur further information, please call Mr Jón Sigurðsson, President and

CEO, on +358 9 18 001, or Ms Jamima Löfström, Information Manager, on

+358 9 1800 291 or +358 40 581 7208.



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