News

Approval of CEB’s audited financial statements for 2022

4 April 2023

PARIS - The Governing Board of the Council of Europe Development Bank (CEB) approved on 31 March the Bank’s audited financial statements for 2022.

Highlights:

  • Solid financial and operational performance in 2022
  • Loan operations in line with the CEB’s Development Plan 2020-2022
  • Net profit standing at €79.7 million 
  • Launch of a new Strategic Framework 2023-2027, underpinned by a historic capital increase of a maximum of €4.25 billion, including up to €1.20 billion in paid-in capital
  • Financial robustness confirmed by credit rating agencies.

The CEB continued to support its member states in their efforts to address rising social, economic and environmental challenges in the last year of its Development Plan 2020-2022. At a critical juncture marked by Russia’s aggression against Ukraine and the ensuing refugee crisis, inflationary pressures and rising energy prices, the Bank met its strategic objectives in line with its social mandate while maintaining a sound risk profile.

The CEB’s lending activity in 2022 showed a sustained pace, with 36 projects approved for a total lending volume of €4.2 billion (+2.1% compared to 2021), 31% of which were dedicated to assisting member states’ efforts in hosting and looking after refugees from Ukraine. The substantial volume of loans disbursed over the previous years fed the volume of outstanding loans that reached €19.9 billion at the end of 2022 (+5.1% compared to year-end 2021).

The CEB’s audited results in 2022 presented in accordance with the International Financial Reporting Standards (IFRS), as adopted by the EU, showed a net profit of €79.7 million compared to €94.8 million in 2021 (-15.9%) due to the impact of IFRS 9 on both credit provisioning (cost of risk) and the positive valuation effects of financial instruments. Excluding IFRS 9 provisions and valuation of financial instruments, core earnings amounted to €83.5 million in 2022 compared to €87.0 million in 2021 (-4.0%), mainly due to lower revenues from the debt securities at amortized cost portfolio. Out of the net profit for the year 2022 an amount of €5 million was allocated to the Social Dividend Account and the remainder, an amount of €74.7 million, was allocated to the Bank’s general reserves. CEB's prudential ratios remained within their respective limits throughout the reporting period.

The financial results in 2022 and the strong shareholders’ support demonstrated by the Governing Board’s approval of CEB’s historic capital increase and new Strategic Framework 2023-2027 showcase the Bank’s financial solidity and long-standing social commitment, endorsed by the high credit ratings from Standard & Poor’s (AAA, stable outlook on 12 September 2022), Moody’s (Aaa, stable outlook on 10 March 2023), Fitch Ratings (AA+, positive outlook on 22 July 2022) and Scope Ratings (unsolicited AAA, stable outlook rating on 24 June 2022).

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Set up in 1956, the CEB (Council of Europe Development Bank) has 42 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 (Aaa with Moody's, outlook stable, AAA with Standard & Poor's, outlook stable, AA+ with Fitch Ratings, outlook positive and AAA* with Scope 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.
*unsolicited

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