An exceptional year: Message from the Governor

Coming on the back of another historic milestone in December 2022, when our member countries approved the first-ever capital increase for the Bank with paid-in capital, makes these hard-earned achievements all the more significant. Together with our solid balance sheet, deeper partnerships, and investments in our corporate skills and technological processes, they place Europe’s social development bank of choice in an especially strong position for confronting the serious social challenges ahead. We must take full advantage.

Consider our new member Ukraine, for example. I am proud that the CEB has stood with Ukraine since Russia launched its brutal aggression, and was heartened when Heads of State and Government at the 4th Council of Europe Summit in Reykjavík in May recognised the CEB’s key social role in their Action Plan for Ukraine. Our operations on the ground, launched immediately after accession, underscore our determination to uphold this confidence with actions.

Our marked policy relevance, underlined by our members’ agreement to strengthen our capital base, was a key consideration in our triple-A rating. Restoring the top rating fulfils a goal I had set on becoming Governor two years ago, as it enables us to obtain finance on more favourable terms for all our borrowers. Indeed, the Bank’s solid financial performance also contributed to the upward revision, for despite challenging market conditions, we posted a profit of €109.2 million in 2023, and €79.7 million in 2022.

Our relevance is evident in our operations for 2023 – 48 project approvals responding to members’ pressing social needs. It is visible in our partnerships, notably with the EU and peer multilateral development banks (MDBs), aimed at enhancing our joint effectiveness in addressing interrelated challenges, from social inclusion to sustainable development..

Our relevance can be seen in our operational tools, too, such as our Social Inclusion Bonds (SIBs), now a CEB trademark on international capital markets, and our new “vulnerability lens”, designed to ensure that our investments benefit those most in need.

CEB trust funds which donors contribute to, such as the Disaster Prevention and Recovery Fund created following February’s tragic earthquakes in Türkiye, also provide valuable additional support.

Observing our dedicated staff’s actions to improve people’s lives is inspiring, whether completing a successful housing programme, empowering business start-ups in deprived communities or funding education for young people from disadvantaged backgrounds. Such examples, as described in this Report, illustrate the close attention the CEB devotes to every project, each a critical thread in Europe’s social fabric.

The CEB’s social mandate has rarely been more relevant, given the fallout from conflict, climate change, migration and more. We must build on our exceptional performance by doing more to foster social cohesion in Europe and leave no one behind.

Paris, 6 March 2024

Carlo MONTICELLI

©CEB 2024