NIB - 20. Currency risk

Nordic Investment Bank – Annual Report 2010

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(20) CURRENCY RISK

NIB's operations are mostly in euro and US dollars. The table below shows the net of assets and liabilities of the major currencies.
See also Financial Guidelines and Risk Management, Market Risk.

Net currency position as of 31 December 2010:
(Amounts in EUR million)		EUR	USD	GBP	JPY	SEK	Other currencies	Fair value adjustments and swap netting	Total
Assets
Cash and cash equivalents		2,491	118	1	1	45	70	-	2,726
Financial placements
	Placements with credit institutions	130	-	-	-	-	-	-	130
	Debt securities	4,448	626	-	-	-	1	-	5,075
	Other financial placements	26	-	-	-	-	-	-	26
		4,604	626	-	-	-	1	-	5,231
Loans outstanding		7,535	2,443	1	53	1,900	1,741	97	13,771
Intangible assets		5	-	-	-	-	-	-	5
Tangible assets		32	-	-	-	-	-	-	32
Other assets
	Derivatives	-9,927	5,989	1,634	2,279	-1,762	2,618	1,886	2,718
	Other assets	5	11	-	-	-	21	-	37
		-9,921	5,999	1,634	2,279	-1,762	2,639	1,886	2,755
Payments to the Bank's reserves, receivable		5	-	-	-	-	-	-	5
Accrued interest and fees receivable		124	126	22	15	10	95	-20	372
Total assets		4,876	9,313	1,658	2,347	193	4,547	1,963	24,898

Liabilities and equity
Liabilities
Amounts owed to credit institutions
	Short-term amounts owed to credit institutions	951	180	-	-	-	-	-	1,131
	Long-term amounts owed to credit institutions	144	-	-	-	-	-	-	144
		1,095	180	-	-	-	-	-	1,275
Debts evidenced by certificates
	Debt securities issued	1,417	8,936	1,636	2,240	186	4,429	865	19,710
	Other debt	62	75	-	92	-	2	3	234
		1,479	9,011	1,636	2,332	186	4,431	868	19,944
Other liabilities
	Derivatives	-	-	-	-	-	-	1,117	1,117
	Other liabilities	6	-	-	-	-	-	-	6
		6	-	-	-	-	-	1,117	1,122
Accrued interests and fees payable		59	119	22	15	7	93	-20	294
Total liabilities		2,638	9,310	1,658	2,347	193	4,525	1,965	22,636
Equity		2,051	-	-	-	-	-	-	2,051
Total liabilities and equity		4,689	9,310	1,658	2,347	193	4,525	1,965	24,687

Net of assets and liabilities as of 31 Dec 2010		187	3	-	1	-	22	-2	211


Net currency position as of 31 December 2009:
(Amounts in EUR million)		EUR	USD	GBP	JPY	SEK	Other currencies	Fair value adjustments and swap netting	Total
Assets
Cash and cash equivalents		674	282	1	-	5	11	-	974
Financial placements
	Placements with credit institutions	80	-	-	-	-	5	-	85
	Debt securities	4,939	720	-	-	-	1	-	5,659
	Other financial placements	20	-	-	-	-	-	-	20
		5,039	720	-	-	-	6	-	5,764
Loans outstanding		7,771	2,444	1	48	1,783	1,668	49	13,763
Intangible assets		7	-	-	-	-	-	-	7
Tangible assets		33	-	-	-	-	-	-	33
Other assets
	Derivatives	-9,414	5,084	1,880	1,951	-1,774	1,992	1,745	1,463
	Other assets	10	7	-	-	-	11	-	29
		-9,404	5,091	1,880	1,951	-1,774	2,004	1,745	1,492
Payments to the Bank's reserves, receivable		18	-	-	-	-	-	-	18
Accrued interest and fees receivable		134	116	32	16	7	91	-23	372
Total assets		4,271	8,652	1,914	2,016	20	3,780	1,770	22,423

Liabilities and equity
Liabilities
Amounts owed to credit institutions
	Short-term amounts owed to credit institutions	438	4	-	-	-	10	-	452
	Long-term amounts owed to credit institutions	196	-	-	-	-	5	-	201
		634	4	-	-	-	15	-	653
Debts evidenced by certificates
	Debt securities issued	1,479	8,494	1,880	1,902	16	3,623	383	17,775
	Other debt	62	69	-	90	-	-	1	222
		1,541	8,564	1,880	1,992	16	3,623	383	17,998
Other liabilities
	Derivatives	-	-	-	-	-	-	1,424	1,424
	Other liabilities	8	-	-	-	-	-	-	8
		8	-	-	-	-	-	1,424	1,432
Accrued interests and fees payable		63	108	32	16	4	90	-23	291
Total liabilities		2,246	8,676	1,911	2,008	20	3,728	1,784	20,374
Equity		1,726	-	-	-	-	-	-	1,726
Total liabilities and equity		3,972	8,676	1,911	2,008	20	3,728	1,784	22,100

Net of assets and liabilities as of 31 Dec 2009		299	-24	3	8	-	52	-14	323