2017 Financial Results
31 January 2018
In 2017, the first year of its ambitious Development Plan 2017-2019, the Council of Europe Development Bank (CEB) successfully achieved and exceeded its activity objectives. Its sound financial performance enabled the CEB to pursue its social mandate in Europe.
The CEB’s unaudited results show that net profit reached € 112.0 million in 2017, compared to € 104.9 million in 2016 (+6.8%), mainly as a result of a positive variation of € 8.5 million in the valuation of financial instruments (IFRS volatility effects). Excluding IFRS volatility effects, core earnings remain broadly stable, amounting to € 109.6 million in 2017 compared to € 111.0 million in 2016 (-1.3%).
After profit allocation, equity rose by 5.5% from € 2.8 billion in 2016 to € 3.0 billion in 2017.
In 2017, the CEB achieved record highs in its business activities. 41 new projects were approved in 2017, reaching € 3.9 billion, a significant increase of 13% compared to 2016 (€ 3.5 billion for 35 projects). The stock of projects rose considerably by 23.5%, totaling € 7.0 billion in 2017 (2016: € 5.7 billion), and loan disbursements amounted to € 2.3 billion in 2017, an increase of 13% compared to € 2.0 billion in 2016. Loans outstanding reached € 13.8 billion, broadly stable compared to € 13.7 billion in 2016 (+0.6%).
The CEB remains focused on active partnerships through its fiduciary activities. In 2017, further contributions to the Regional Housing Programme and the Migrant and Refugee Fund have been recorded, demonstrating strong support by the donor community. In addition, two further fiduciary accounts have been created recently: the Slovak Inclusive Growth Account, whose purpose is to improve social inclusive growth across Europe, and the Turkey Refugee Account which, in cooperation with the European Union, finances the construction of a state hospital to assist Turkey in facing the challenges related to its migrant and refugee inflow.
The CEB expects to attain these excellent performance levels during 2018 too as set out in the objectives of the Development Plan 2017-2019.
Set up in 1956, the CEB (Council of Europe Development Bank) has 41 member states. Twenty-two Central, Eastern and South Eastern European countries, forming the Bank's target countries, are listed among the member states. As a major instrument of the policy of solidarity in Europe, the Bank finances social projects by making available resources raised in conditions reflecting the quality of its rating (Aa1 with Moody's, outlook stable, AA+ with Standard & Poor's, outlook positive and AA+ with Fitch Ratings, outlook stable). It thus grants loans to its member states, and to financial institutions and local authorities in its member states for the financing of projects in the social sector, in accordance with its Articles of Agreement.