Q1 Interim report

KLP Banken Group

Interim financial statementsQ1 2021

Main features by first quarter:

• Lending growth

• Stable net interest income

• Strenghtened group P&L

The KLP Banken Group finances mortgages and other credit in the retail marked, lending to municipalities, county administrations and companies carrying out public sector assignments. Additionally, the KLP Banken manages a lending portfolio on behalf of its parent company KLP (Kommunal Landspensjonskasse). The Group manages a lending total of NOK 113 (110) billion. The lending business is nationwide and divided into the business areas retail market and public sector loans.

In the retail market, KLP Banken offer products and services at competitive terms, aiming at enterprises that have chosen KLP as their pension provider are considered attractive employers.

In the public sector market KLP Kommunekreditt AS together with KLP shall contribute to market competition and thereby access to favorable long-term financing for the sector.

As part of a customer-owned group, KLP Banken AS has taken its share of responsibility for handling the situation caused by the pandemic for its customers and members. In the retail market faster interest rate cuts, closer follow-up and guidance, as well as granting of installment deferrals for those members who have needed it, were implemented. In the public sector market, the bank contributed by increasing the loan offer based on extraordinary liquidity provided by KLP, as well as with guidance and information through close ongoing contact with customers. Also the first quarter of 2020 was characterized by this special situation, and most employees in KLP Banken have had home offices. The company has nevertheless maintained close to normal operations.

KLP Banken AS is owned 100 per cent by Kommunal Landspensjonskasse gjensidig forsikringsselskap (KLP). KLP Banken AS has two wholly owned subsidiaries, KLP Kommunekreditt AS and KLP Boligkreditt AS. The main office is in Trondheim.

INCOME STATEMENT

Net interest income for the KLP Banken Group at the end of first quarter 2021, amounted to NOK 78.7 (78.5) million. Stable net interest income is related to lending growth as well as slightly lower lending margins compared to the same period last year.

Operating expenses including depreciations amounted to NOK 63.0 (61.3) million. Most of the increase is related to prize changes on external service purchases as well as some expenses are volume dependent.

The KLP Banken group fee charges its banking services to a limited extent. Net fees and commission income amount to NOK 4.2 (4.6) million in the first quarter. The change is related to fee-exemptions on new mortgages in a campaign period.

The Group administers housing mortgages and public sector lending financed by its parent company (KLP). The management fee for this task amounted to NOK 14.9 (14.8) million at quarter end.

The accounting line net gain / loss on financial instruments mainly comprises the effects of changes in value on the securities portfolio as well as repurchases of borrowings. In total, financial instruments gave a total income of NOK 14.5 (-12.7) million in the quarter. The change is mainly due to that the volume of own holdings of bonds issued, placed as guarantee for F-loans in Norges Bank, was significantly reduced during the quarter. Realization of own holdings at changed market values thus affected the income statement.

Loan loss provisions and realized losses so far in 2021 was NOK -0.5 (-2.3) million in the retail market. This implies that previous loss provisions on credit cards and mortgages, in total are reversed. The Bank then ascertain that the pandemic so far has not led to increased loan losses. Additionally, outstanding credit card lending volume has decreased.

The KLP Banken Group had a pre-tax profit at the end of first quarter of NOK 48.6 (21.6) million. Of this, the retail market segment generated a profit of NOK 41.8 (16.4) million, and the public sector segment achieved a profit of NOK 6.8 (5.2) million. Net gain on financial instruments is mainly booked in the retail market segment. Group total income as at first quarter 2021 was NOK 69.8 (34.3) million.

LENDING AND CREDITS

On 31 March 2021, the KLP Banken Group had a lending balance to customers totaling NOK 37.6 (36.0) billion. The distribution between the retail market and public sector market was NOK 20.9 (19.2) billion and NOK 16.7 (16.8) billion, respectively.

The mortgage lending growth is somewhat lower compared to the same period last year, but has increased towards the end of the first quarter. This shows that the bank's mortgage products seem to hit well in the target group, members of the pension schemes in KLP.

Mortgage loans amounting NOK 2.2 (3.4) billion was sold from KLP Banken AS to the daughter company KLP Boligkreditt AS in the quarter. Managed mortgages for KLP remained, for the most part, unchanged during the quarter.

Drawn credits on credit cards kept on falling further in the first quarter. This is a consequence of a general decrease in the market for unsecured credits. The number of credit card customers, on the other hand, has increased somewhat.

The public sector lending balance has decreased by NOK 0.9 billion so far this year. On the other hand, managed public sector loans on behalf of KLP has increased by about the same amount.

LIQUID INVESTMENT

The liquidity is invested in other banks and in interest-bearing securities. Investments in credit institutions amounted to NOK 2.2 (2.1) billion. The book value of interest-bearing securities valued at fair value was NOK 3.3 (5.9) billion in the KLP Banken Group at the end of the quarter.

BORROWING

The KLP Banken Group's external financing comprises deposits and bonds. At the reporting date, deposits from individuals and companies were NOK 12.1 (12.0) billion and issued bonds amounted to NOK 27.1 (28.1) billion. Of the outstanding volume of issues, covered bonds (OMF) issued by KLP Kommunekreditt AS and KLP Boligkreditt AS, amounted to NOK 17.2 (18.1) billion and NOK 10.4 (9.0) billion respectively. All covered bond issues have achieved AAA rating. Outstanding securities debt in KLP Banken AS amounted to NOK 0.8 (1.0) billion.

In 2020, KLP Banken AS was able to use the extended access to F-loans in Norges Bank. This arrangement is expected to be discontinued in 2021. At quarter end outstanding volume was reduced to NOK 1.3 billion. This borrowing involves deposition of securities with equivalent value.

RISK AND CAPITAL ADEQUACY

The KLP Banken Group is exposed to various types of risks and the bank has established a framework for risk management aimed at ensuring risks are identified, analysed and subjected to management using policies, limits, procedures and instructions.

The bank shall have a prudent risk profile and earnings are to be principally a result of borrowing and lending activities, as well as liquidity management. This means that the bank is to have low market risk, and interest risk arising within the borrowing and lending activities is reduced using derivatives.

The KLP Banken Group and its subsidiaries are to have sound long-term financing and limits have been established to ensure that that this objective is achieved.

The credit risk associated with the bank assets is low, and lending is mainly limited to local government risk and lien on housing property. Management of the bank's liquidity is conducted through investments in other banks satisfying set credit quality requirements, and in securities in accordance with Board-approved credit lines.

At the end of the first quarter, eligible Tier 1 and Tier 2 capital i.a.w. the capital adequacy rules were NOK 2 405 (2 285) million. Eligible Tier 1 and Tier 2 capital comprise core capital only. Lending is risk-weighted in accordance with the authorities' capital adequacy regulations. The KLP Banken Group had a capital adequacy ratio of 19.3 (18.8) per cent at the end of the quarter. The minimum statutory requirement is 12.5 per cent core capital adequacy and 16.0 per cent capital adequacy. Leverage ratio was 5.5 (5.1) per cent. Here the requirement is 3.0 per cent.

Income statementKLP Banken Group

NOTES	NOK THOUSANDS	Q1 2021	Q1 2020	01.01.2020 -31.12.2020
	Interest income, effective interest method	152 173	258 642	768 442
	Other interest income	15 700	46 664	132 655
3	Total interest income	167 873	305 306	901 098
	Interest expense, effective interest method	-69 040	-196 808	-469 541
	Other interest expense	-20 136	-30 018	-102 988
3	Total interest costs	-89 175	-226 826	-572 529
3	Net interest income	78 697	78 480	328 569
	Commision income and income from banking services	4 553	5 107	20 285
	Commision cost and cost from banking services	-375	-465	-1 766
	Net charges and commission income	4 178	4 641	18 519
	Other fee income	14 850	14 800	59 220
17	Net gain/ (loss) financial instruments	14 467	-12 732	-26 145
	Total other operating income	29 317	2 068	33 074
	Salaries and administrative costs	-20 289	-18 979	-76 228
	Depreciation	-1 663	-1 459	-6 038
	Other operating expenses	-41 075	-40 863	-156 793
15	Net loan losses	-533	-2 296	-4 302
	Total operating expenses	-63 559	-63 596	-243 361
	Operating profit/loss before tax	48 633	21 593	136 801
	Tax ordinary income	15 352	22 980	-4 288
	Profit/loss for the period	63 985	44 573	132 514
	Estimate difference, pension obligation and assets	7 732	-13 685	-3 557
	Tax on actuarial gains and losses	-1 933	3 421	889
	Items that will not be reclassified to profit and loss	5 799	-10 264	-2 668
	Changes in the fair value through profit and loss	0	0	0
	Tax on changes in fair value of available for sale financial assets	0	0	0
	Items that may be reclassified to profit and loss	0	0	0
	Other comprehensive income for the period	5 799	-10 264	-2 668
	Comprehensive income for the period	69 784	34 310	129 846

Balance sheetKLP Banken Group

NOTES	NOK THOUSANDS	31.03.2021	31.03.2020	31.12.2020
	ASSETS
5	Claims on central banks	66 365	108 982	68 941
5	Loans to credit institutions	2 172 888	2 132 977	1 175 714
4,5	Loans to customers	37 628 313	35 965 714	38 224 087
5,6,14	Fixed-income securities	3 263 812	5 880 248	3 148 228
5,6	Shareholdings	1 197	2 053	1 197
5,6,9	Financial derivatives	45 859	71 753	42 630
	Deffered tax assets	0	9 460	0
	Fixed assets	438	479	444
18	Right-of-use assets	1 558	3 116	1 948
	Intangible assets	17 751	19 410	19 018
11	Other assets	2 209	63 458	5 819
	Total assets	43 200 390	44 257 652	42 688 027
	LIABILITIES AND OWNERS EQUITY
	LIABILITIES
5,8	Debt to credit institutions	1 303 191	1 450 123	2 504 192
5,7	Debt securities issued	27 147 360	28 145 482	25 799 465
5	Deposits and borrowings from the public	12 103 244	12 034 471	11 781 187
5,6,9	Financial derivatives	53 550	124 236	80 425
	Deffered tax liabilities	25 214	0	21 179
18	Lease liabilities	1 626	3 191	2 023
12	Other liabilities	41 576	93 652	14 056
12	Provision for accrued costs and liabilities	55 109	75 231	58 700
	Total liabilities	40 730 870	41 926 387	40 261 226
	EQUITY
	Share capital	1 065 000	1 065 000	1 065 000
	Share premium	825 000	825 000	825 000
	Other owners' eqyity	509 736	406 955	536 801
	Profit for the period	69 784	34 310	0
	Total equity	2 469 520	2 331 265	2 426 801
	Total liabilities and equity	43 200 390	44 257 652	42 688 027

Statement of changes in equityKLP Banken Group

2021 NOK THOUSANDS	Share capital	Share premium	Other equity	Total owners’ equity
Equity 1 January 2021	1 065 000	825 000	536 801	2 426 801
Profit for the period	0	0	63 985	63 985
Other comprehensive income	0	0	5 799	5 799
Total comprehensive income for the period	0	0	69 784	69 784
Group contribution received during the period	0	0	84 919	84 919
Group contribution paid during the period	0	0	-111 985	-111 985
Total transactions with the owners	0	0	-27 065	-27 065
Equity 31 March 2021	1 065 000	825 000	579 520	2 469 520

2020 NOK THOUSANDS	Share capital	Share premium	Other equity	Total owners’ equity
Owners’ equity 31 December 2019	1 057 500	732 500	430 561	2 220 561
Merger with KLP Bankholding AS	0	0	4 536	4 536
Owners’ equity 1 January 2020	1 057 500	732 500	435 097	2 225 097
Profit for the period	0	0	44 573	44 573
Other comprehensive income	0	0	-10 264	-10 264
Total comprehensive income for the period	0	0	34 310	34 310
Group contribution received during the period	0	0	141 681	141 681
Group contribution paid during the period	0	0	-169 823	-169 823
Owners' equity received during the period	7 500	92 500	0	100 000
Total transactions with the owners	7 500	92 500	-28 142	71 858
Equity 31 March 2020	1 065 000	825 000	441 265	2 331 265

2020 NOK THOUSANDS	Share capital	Share premium	Other equity	Total owners’ equity
Owners’ equity 31 December 2019	1 057 500	732 500	430 561	2 220 561
Merger with KLP Bankholding AS	0	0	4 536	4 536
Owners’ equity 1 January 2020	1 057 500	732 500	435 097	2 225 097
Income for the year	0	0	132 514	132 514
Other comprehensive income	0	0	-2 668	-2 668
Comprehensive income for the year	0	0	129 846	129 846
Group contribution received during the period	0	0	141 681	141 681
Group contribution paid during the period	0	0	-169 823	-169 823
Owners' equity received during the period	7 500	92 500	0	100 000
Total transactions with the owners	7 500	92 500	-28 142	71 858
Equity 31 December 2020	1 065 000	825 000	536 801	2 426 801

Statement of cash flowKLP Banken Group

NOK THOUSANDS	Q1 2021	Q1 2020	01.01.2020 -31.12.2020
OPERATING ACTIVITIES
Payments received from customers – interest, commission and charges	148 669	232 879	812 696
Payments to customers – interest, commission and charges	-17 232	-48 179	-128 918
Disbursements on loans to customers and credit institutions	-4 558 427	-5 223 236	-19 998 713
Receipts on loans to customers	5 109 975	4 272 999	16 596 718
Net receipts on customer deposits banking	322 613	548 561	295 164
Disbursements on operations	-36 047	-41 053	-152 043
Payments to staff, pension schemes, employer's social security contribution etc.	-21 778	-20 047	-73 207
Interest investment accounts	695	4 608	7 871
Net receipts/disbursements from operating activities	-80 571	-40 704	111 414
Net cash flow from operating activities	867 898	-314 172	-2 529 017
INVESTMENT ACTIVITIES
Receipts on the sale of securities	3 331 460	1 023 415	11 425 797
Payments on the purchase of securities	-1 628 045	-3 790 618	-11 440 399
Receipts of interest from securities	4 843	15 702	50 630
Payments on the purchase of tangible fixed assets	0	0	-2 983
Net cash flow from investment activities	1 708 258	-2 751 502	33 045
FINANCING ACTIVITIES
Receipts on loans from credit institutions	0	1 450 000	5 470 000
Repayment and redemption from credit institutions	-1 200 000	0	-2 970 000
Net payment of interest from credit institutions	-2 493	0	-838
Receipts on loans	0	2 799 992	7 250 407
Repayments and redemption of securities debt	-1 452 000	-1 046 000	-6 756 063
Change in buyback of securities debt	1 011 830	520 000	-480 000
Net payment of interest on loans	-50 450	-164 422	-416 991
Payment of lease liabilities	-399	-392	-1 570
Group contributions made	0	0	-28 144
Equity contributions received	0	100 000	100 000
Net cash flows from financing activities	-1 693 512	3 659 178	2 166 802
Net cash flow during the period	882 643	593 504	-329 171
Cash and cash equivalents at the start of the period	1 212 067	1 541 238	1 541 238
Cash and cash equivalents at the end of the period	2 094 710	2 134 742	1 212 067
Net receipts/disbursements (-) of cash	882 643	593 504	-329 171

Notes KLP Banken Group

Note 1 General information

KLP Banken AS was formed on 25 February 2009. KLP Banken AS owns all the shares in KLP Kommunekreditt AS and KLP Boligkreditt AS. These companies together form the KLP Banken AS Group. KLP Banken AS Group provide or acquire loans to Norwegian municipalities and county authorities, as well as to companies with public sector guarantee. The lending activities are principally financed by issuance of covered bonds. The Group also offers standard banking products to private customers. KLP Banken AS is registered and domiciled in Norway. It's head office is at Beddingen 8 in Trondheim. The company has a branch office in Dronning Eufemiasgate 10, Oslo.

The company, KLP Banken AS, is a wholly owned subsidiary of Kommunal Landspensjonskasse (KLP). KLP is a mutual insurance company.

Note 2 Accounting principles

The interim report includes the interim Financial Statements of KLP Banken Group for the period 1 January 2021 – 31 March 2021, with a specification of the results in the first quarter. The interim Financial Statements has not been audited.

The interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting".

Other accounting principles and calculations are the same in the interim financial statement as in the annual report for 2020.

Note 3 Net interest income

NOK THOUSANDS	Q1 2021	Q1 2020	01.01.2020 -31.12.2020
Interest income on loans to customers	151 380	252 650	760 567
Interest income on loans to credit institutions	792	5 992	7 875
Total interest income, effective interest method	152 173	258 642	768 442
Interest income on bonds and certificates	6 750	19 233	50 241
Other interest income	8 949	27 431	82 414
Total other interest income	15 700	46 664	132 655
Total interest income	167 873	305 306	901 098
Interest expenses on deposits to customers	-16 558	-47 677	-122 407
Interest expenses on issued securities	-52 473	-149 115	-347 080
Interest expense lease liabilities	-9	-16	-54
Total interest expenses, effective interest method	-69 040	-196 808	-469 541
Other interest expenses	-20 136	-30 018	-102 988
Total other interest expenses	-20 136	-30 018	-102 988
Total interest costs	-89 175	-226 826	-572 529
Net interest income	78 697	78 480	328 569

Note 4 Loans to customers

NOK THOUSANDS	31.03.2021	31.03.2020	31.12.2020
Principal on loans to customers	37 505 259	35 697 179	38 057 684
Credit portfolio	45 986	59 131	49 595
Overdraft current account	574	518	531
Write-downs step 1 and 2	-1 112	-1 671	-1 558
Write-downs step 3	-1 270	-2 783	-872
Loans to cutomers after write-downs	37 549 437	35 752 375	38 105 380
Accrued interest	60 912	111 017	53 806
Premium/discount	37	-6 694	74
Fair value hedging	17 927	109 015	64 827
Loans to customers	37 628 313	35 965 714	38 224 087

Note 5 Categories of financial instruments

NOK THOUSANDS	31.03.2021		31.03.2020		31.12.2020
	Capitalized value	Fair value	Capitalized value	Fair value	Capitalized value	Fair value
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS
Fixed-income securities	3 263 812	3 263 812	5 880 248	5 880 248	3 148 228	3 148 228
Financial derivatives	45 859	45 859	71 753	71 753	42 630	42 630
Shares and holdings	1 197	1 197	2 053	2 053	1 197	1 197
Total financial assets at fair value through profit and loss	3 310 867	3 310 867	5 954 053	5 954 053	3 192 054	3 192 054
FINANCIAL ASSETS FAIR VALUE HEDGING
Loans to and receivables from customers	3 295 179	3 357 039	3 116 524	3 113 411	3 734 955	3 790 329
Total financial assets fair value hedging	3 295 179	3 357 039	3 116 524	3 113 411	3 734 955	3 790 329
FINANCIAL ASSETS AT AMORTIZED COST
Loans to and receivables from credit institutions	66 365	66 365	108 982	108 982	68 941	68 941
Loans to and receivables from central banks	2 172 888	2 172 888	2 128 606	2 128 606	1 175 714	1 175 714
Loans to and receivables from customers	34 333 134	34 271 088	32 849 189	32 837 187	34 489 133	34 489 133
Total financial assets at amortized cost	36 572 387	36 510 340	35 086 777	35 074 774	35 733 788	35 733 788
Total financial assets	43 178 433	43 178 247	44 157 354	44 142 238	42 660 798	42 716 172
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT AND LOSS
Financial derivatives	53 550	53 550	124 236	124 236	80 425	80 425
Total financial liabilities at fair value through profit and loss	53 550	53 550	124 236	124 236	80 425	80 425
FINANCIAL LIABILITIES FAIR VALUE HEDGING
Liabilities created on issuance of securities	1 127 265	1 139 273	1 856 891	1 858 798	1 139 041	1 148 872
Total financial liabilities fair value hedging	1 127 265	1 139 273	1 856 891	1 858 798	1 139 041	1 148 872
FINANCIAL LIABILITIES AT AMORTIZED COST
Liabilities to credit institutions	1 303 191	1 303 191	1 450 123	1 450 123	2 504 192	2 504 192
Liabilities created on issuance of securities	26 020 096	26 166 146	26 288 591	26 237 102	24 660 423	25 283 898
Deposits from customers	12 103 244	12 103 244	12 034 471	12 034 471	11 781 187	11 781 187
Total financial liabilities at amortized cost	39 426 531	39 572 581	39 773 186	39 721 696	38 945 802	39 569 276
Total financial liabilities	40 607 345	40 765 404	41 754 312	41 704 730	40 165 268	40 798 573

Fair value shall be a representative price based on what a corresponding asset or liability would have been traded for on normal market terms and conditions. A financial instrument is considered to be listed in an active market if the listed price is simply and regularly available from a stock market, dealer, broker, industry grouping, price setting service or regulatory authority, and these prices represent actual and regularly occurring transactions at arm’s length. If the market for the security is not active, or the security is not listed on a stock market or similar, valuation techniques are used to set fair value. These are based for example on information on recently completed transactions carried out on business terms and conditions, reference to trading in similar instruments and pricing using externally collected yield curves and yield spread curves. As far as possible the estimates are based on externally observable market data and rarely on company-specific information.

The different financial instruments are thus priced in the following way:

Fixed-income securities - government

Bloomberg is used as a source for pricing Norwegian government bonds. The prices are compared with the prices from Nordic Bond Pricing to reveal any errors.

Fixed-income securities - other than government

Norwegian fixed-income securities, except government are priced directly on prices from Nordic Bond Pricing. Those securities that are not included in Nordic Bond Pricing are priced theoretically. The theoretical price is based on the assumed present value on the sale of the position. A zero-coupon curve is used for discounting. The zero-coupon curve is adjusted upwards by means of a credit spread, which is to take account of the risk the bond entails. The credit spread is calculated on the basis of a spread curve taking account of the duration of the bond. Nordic Bond Pricing is the main source of spread curves. They provide company-specific curves for Norwegian savings banks, municipalities and energy. Savings banks have various spread curves based on total assets. For companies where Nordic Bond Pricing do not deliver spread curves, the Group use spread curves from three Norwegian banks. When spread curves are available from more than one of these banks, an equal-weighted average is used. If a bond lacks an appropriate spread curve, spread from a comparable bond from the same issuer is used.

Financial derivatives

These transactions are valued based on the applicable swap curve at the time of valuation. Derivative contracts are to be used only to hedge balance amounts and to enable payments obligations to be met. Derivative contracts may be struck only with counterparties with high credit quality.

Shares (unlisted)

For liquid shares and units, the closing price on the balance sheet date is used as the basis for measurement at fair value. If the prices are not quoted, the last price traded is used. Illiquid shares are priced on the basis of the Oslo Stock Exchange’s index algorithm based on the last traded prices. If the price picture is out of date, a derived valuation is produced from relevant equity indices or other similar securities. If this is also considered unsatisfactory, a discretionary valuation is made in which the Company’s financial key figures, broker assessment etc. are used.

Fair value of loans to retail customers

The fair value through profit/loss is calculated by discounting contractual cash flows to present values. The discount rate is determined as the market rate, including a suitable risk margin. For loans measured at fair value through other comprehensive income, the fair value is calculated as the recognised principal minus estimated loss provisions on loans classified in Stage 2 and 3 (see note 15 Loan losses provision).

Fair value of loans to Norwegian local administrations

The fair value of these loans is considered to be virtually the same as the book value, as the contract terms are constantly adjusted in line with market interest rates. The fair value of fixed rate loans is calculated by discounting contractual cash flows by market interest rates including a suitable risk margin at the end of the reporting period. This is valued at Level 2 in the valuation hierarchy, cf. Note 6.

Fair value of deposits

The fair value of floating rate deposits is taken to be approximately equal to the deposit amount including accrued interest. The fair value of fixed rate deposits is calculated by discounting contractual cash flows by market interest rates including a suitable risk margin. Discounting contractual cash flows by market interest rates including a suitable risk margin. This is valued at Level 2 in the valuation hierarchy, cf. Note 6.

Fair value of loans to and receivables from credit institutions

All receivables from credit institutions (bank deposits) are at variable interest rates. The fair value of these is considered to be virtually the same as the book value, as the contract terms are continuously changed in step with change in market interest rates. This is valued at Level 2 in the valuation hierarchy, cf. Note 6.

As the contract terms are continuously changed in step with change in market interest rates. This is valued at Level 2 in the valuation hierarchy, cf. Note 6.

Liabilities created on issuance of securities

Fair value in this category is determined on the basis of internal valuation models based on external observable data. This is valued in Level 2 in the valuation hierarchy, cf. Note 6.

Note 6 Fair value hierarchy

31.03.2021 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	837 101	2 426 711	0	3 263 812
Shareholdings	0	0	1 197	1 197
Financial derivatives	0	45 859	0	45 859
Total assets at fair value	837 101	2 472 570	1 197	3 310 867
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)	0	53 550	0	53 550
Total financial liabilities at fair value	0	53 550	0	53 550

31.03.2020 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	259 935	5 620 312	0	5 880 248
Shareholdings	0	0	2 053	2 053
Financial derivatives	0	71 753	0	71 753
Total assets at fair value	259 935	5 692 065	2 053	5 954 053
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)	0	124 236	0	124 236
Total financial liabilities at fair value	0	124 236	0	124 236

31.12.2020 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	581 905	2 566 322	0	3 148 228
Shareholdings	0	0	1 197	1 197
Financial derivatives	0	42 630	0	42 630
Total assets at fair value	581 905	2 608 952	1 197	3 192 054
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)	0	80 425	0	80 425
Total financial liabilities at fair value	0	80 425	0	80 425

NOK THOUSANDS	31.03.2021	31.03.2020	31.12.2020
CHANGES IN LEVEL 3 UNLISTED SHARES
Opening balance	1 197	2 053	2 053
Additions/purchases of shares	0	0	125
Unrealized changes	0	0	-981
Closing balance	1 197	2 053	1 197
Realized gains/losses	0	0	0

Fair value shall be a representative price based on what a corresponding asset or liability would have been traded for at normal market terms and conditions. Highest quality in regard to fair value is based on listed prices in an active market. A financial instrument is considered as listed in an active market if listed prices are simply and regularly available from a stock market, dealer, broker, industry group, price-setting service or regulatory authority, and these prices represent actual and regularly occurring transactions at arm's length.

LEVEL 1:

Instruments at this level obtain fair value from listed prices in an active market for identical assets or liabilities to which the entity has access at the reporting date. Examples of instruments in Level 1 are stock market listed securities.

LEVEL 2:

Instruments at this level obtain fair value from observable market data. This includes prices based on identical instruments, but where the instrument does not maintain a high enough trading frequency and is therefore not considered to be traded in an active market, as well as prices based on corresponding assets and price-leading indicators that can be confirmed from market information. Example instruments at Level 2 are fixed-income securities priced on the basis of interest rate paths.

LEVEL 3:

Instruments at Level 3 contain non-observable market data or are traded in markets considered to be inactive. The price is based generally on discrete calculations where the actual fair value may deviate if the instrument were to be traded.

Note 5 discloses the fair value of financial assets and financial liabilities that are recognized at amortized cost and according to the rules on hedge accounting. Financial assets measured at amortized cost and hedge accounting comprise lending to and due to credit institutions, Norwegian municipalities and retail customers. The stated fair value of these assets is determined on terms qualifying for level 2. Financial liabilities recognized at amortized cost and hedge accounting consist of debt securities issued and deposits. The stated fair value of these liabilities is determined by methods qualifying for level 2.

There have been no transfers between level 1 and level 2.

Note 7 Securities liabilities - stock exchange listed covered bonds and certificates

NOK THOUSANDS	31.03.2021	31.03.2020	31.12.2020
Bond debt, nominal amount	27 972 877	28 921 992	27 628 407
Adjustments	52 767	63 262	74 537
Accrued interest	32 716	90 227	26 521
Own holdings, nominal amount	-911 000	-930 000	-1 930 000
Total debt securities issued	27 147 360	28 145 482	25 799 465
Interest rate on borrowings through the issuance of securities at the reporting date:	0.8 %	1.97 %	0.64 %
The interest rate is calculated as a weighted average of the act/360 basis. It includes interest rate effects and amortization costs.

NOK THOUSANDS	Balance sheet 31.12.2020	Issued	Matured/ redeemed	Other adjustements	Balance sheet 31.03.2021
Changes in securities liabilities - stock exchange listed covered bonds and cerftificates
Bond debt, nominal amount	27 628 407	0	-18 000	362 470	27 972 877
Adjustments	74 537	0	0	-21 770	52 767
Accrued interest	26 521	0	0	6 195	32 716
Own holdings, nominal amount	-1 930 000	0	1 019 000	0	-911 000
Total debt securities issued	25 799 464	0	1 001 000	346 895	27 147 360

Note 8 Liabilities to credit institutions

NOK THOUSANDS	Due date	Nominal value	Accrued interest	Book value 31.03.2021
Norges Bank	06.04.2021	300 000	972	300 972
Norges Bank	16.04.2021	100 000	303	100 303
Norges Bank	20.04.2021	200 000	593	200 593
Norges Bank	01.07.2021	150 000	338	150 338
Norges Bank	26.08.2021	550 000	985	550 985
Total liabilities to credit institutions		1 300 000	3 191	1 303 191
In the first quarter of 2021, KLP Banken AS redeemed F-loans from Norges Bank with nominal value of NOK 1,200 million.

NOK THOUSANDS	Due date	Nominal value	Accrued interest	Book value 31.03.2020
Norges Bank	19.06.2020	200 000	29	200 029
Norges Bank	21.09.2020	250 000	25	250 025
Norges Bank	28.09.2020	300 000	7	300 007
Norges Bank	26.03.2021	700 000	63	700 063
Total liabilities to credit institutions		1 450 000	123	1 450 123
In the first quarter of 2020, KLP Banken AS applied F-loans from Norges Bank and was granted loan with nominal value of NOK 1,450 million.

NOK THOUSANDS	Due date	Nominal value	Accrued interest	Book value 31.12.2020
Norges Bank	26.03.2021	700 000	1 823	701 823
Norges Bank	06.04.2021	300 000	750	300 750
Norges Bank	16.04.2021	100 000	229	100 229
Norges Bank	20.04.2021	200 000	445	200 445
Norges Bank	01.07.2021	150 000	227	150 227
Norges Bank	26.08.2021	550 000	579	550 579
Norges Bank	13.01.2021	300 000	97	300 097
Norges Bank	10.02.2021	200 000	42	200 042
Total liabilities to credit institutions		2 500 000	4 192	2 504 192
In the fourth quarter of 2020, KLP Banken AS applied F-loans from Norges Bank and was granted loan with nominal value of NOK 510 million.

	Nominal value 31.12.2020	Issued	Matured/ redeemed	Other adjustements	Nominal value 31.03.2021
F-loans Norges Bank	2 500 000	0	-1 200 000	3 191	1 303 191
Total liabilities to credit institutions	2 500 000	0	-1 200 000	3 191	1 303 191

Note 9 Financial assets and liabilities subject to net settlement

31.03.2021 NOK THOUSANDS				Related sums that are not presented net
	Gross financial assets/liabilites	Gross assets/ liabilities presented net	Book value	Financial instruments	Security in cash	Net recognised value
ASSETS
Financial derivatives	45 859	0	45 859	-37 028	0	8 831
Total	45 859	0	45 859	-37 028	0	8 831
LIABILITIES
Financial derivatives	53 550	0	53 550	-37 028	-3 622	14 600
Total	53 550	0	53 550	-37 028	-3 622	14 600

31.03.2020 NOK THOUSANDS				Related sums that are not presented net
	Gross financial assets/liabilites	Gross assets/ liabilities presented net	Book value	Financial instruments	Security in cash	Net recognised value
ASSETS
Financial derivatives	71 753	0	71 753	-71 753	0	0
Total	71 753	0	71 753	-71 753	0	0
LIABILITIES
Financial derivatives	124 236	0	124 236	-71 753	-6 415	46 068
Total	124 236	0	124 236	-71 753	-6 415	46 068

The purpose of the note is to show the potential effect of netting agreements at the KLP Banken Group .
31.12.2020 NOK THOUSANDS				Related sums that are not presented net
	Gross financial assets/liabilites	Gross assets/ liabilities presented net	Book value	Financial instruments	Security in cash	Net recognised value
ASSETS
Financial derivatives	42 630	0	42 630	-42 630	0	0
Total	42 630	0	42 630	-42 630	0	0
LIABILITIES
Financial derivatives	80 425	0	80 425	-42 630	-6 390	31 405
Total	80 425	0	80 425	-42 630	-6 390	31 405
The note shows derivative positions in the financial position statement.

Note 10 Transactions with related parties

NOK THOUSANDS	Q1 2021	Q1 2020	01.01.2020 -31.12.2020
KLP, fees lending management	14 850	14 800	59 200
KLP Kapitalforvaltning AS, fees for services provided	0	0	-315
KLP, rent	-666	-665	-2 725
KLP Skipsbygget AS, rent	-417	-605	-1 854
KLP Bassengtomten AS, rent parking	-22	-21	-85
KLP Eiendomsdrift AS, cost office buildings	-158	0	-195
KLP, pension premium	-3 246	-2 714	-10 960
KLP, staff services (at cost)	-17 162	-16 719	66 596
KLP Group companies, subsidised interest employee loans	2 869	3 968	14 187

NOK THOUSANDS	31.03.2021	31.03.2020	31.12.2020
BALANCES
KLP, net internal accounts	-870	1 914	92
KLP, loan settlement	-8 407	-2 300	3 004
KLP Group companies, net other internal accounts	968	1 272	1 163

Transactions with related parties are carried out at general market terms, with the exception of the Company's share of common functions, which are allocated at cost. Allocation is based on actual use. All internal receivables are settled as they arise.

Note 11 Other assets

NOK THOUSANDS	31.03.2021	31.03.2020	31.12.2020
Intercompany receivables	2 095	54 926	5 472
Miscellaneous receivables	114	114	117
Prepaid expenses	0	8 418	229
Total other assets	2 209	63 458	5 819

Note 12 Other liabilities and provision for accrued costs

NOK THOUSANDS	31.03.2021	31.03.2020	31.12.2020
Creditors	3 196	3 630	5 086
Intercompany payables	10 404	54 040	1 213
Other liabilities	27 976	35 982	7 757
Total other liabilities	41 576	93 652	14 056
Withholding tax	1 632	1 550	2 949
Social security contributions	1 765	1 613	2 570
Capital activity tax	641	588	1 227
Holiday pay	7 485	7 084	5 856
Pension obligations	35 058	50 019	41 550
VAT	22	4	36
Provisioned costs	8 506	14 372	4 512
Total accrued costs and liabilities	55 109	75 231	58 700

Note 13 Capital adequacy

NOK THOUSANDS	31.03.2021	31.03.2020	31.12.2020
Share capital and share premium fund	1 890 000	1 890 000	1 890 000
Other owners' equity	536 801	430 561	536 801
Total owners' equity	2 426 801	2 320 561	2 426 801
Adjustments due to requirements for proper valuation	-4 529	-5 880	-6 226
Deduction goodwill and other intangible assets	-17 751	-19 410	-19 018
Deferred tax asset	0	-10 196	0
Core capital/Tier 1 capital	2 404 522	2 285 075	2 401 558
Supplementary capital/Tier 2 capital	0	0	0
Supplementary capital/Tier 2 capital	0	0	0
Total eligible own funds (Tier 1 and Tier 2 capital)	2 404 522	2 285 075	2 401 558
Capital requirement	998 309	974 251	983 091
Surplus of own funds (Tier 1 and Tier 2 capital)	1 406 213	1 310 824	1 418 468
Estimate basis credit risk:
Institutions	442 721	452 858	242 831
Retail	283 835	168 079	163 069
Local and regional authorities (incl. municipalities/county administations)	3 347 270	3 453 586	3 559 832
Investments with mortgage security in real estate	7 378 003	6 792 248	7 386 329
Investments fallen due	44 015	110 644	72 770
Covered bonds	227 361	528 287	227 068
Other holdings	113 975	72 456	54 755
Calculation basis credit risk	11 837 181	11 578 156	11 706 654
Credit risk	946 974	926 253	936 532
Operating risk	51 225	47 880	46 448
Credit valuation adjustments (CVA)	110	119	110
Total capital requirement assets	998 309	974 251	983 091
Core capital adequacy ratio	19.3 %	18.8 %	19.5 %
Supplementary capital ratio	0.0 %	0.0 %	0.0 %
Capital adequacy ratio	19.3 %	18.8 %	19.5 %
Leverage ratio	5.5 %	5.1 %	5.5 %

CAPITAL REQUIREMENT PER 31.03.2021	Core capital/Tier 1 capital	Supplementary capital/Tier 2 capital	Own funds
Minimum requirement excl. buffers	4.5 %	3.5 %	8.0 %
Protective buffer	2.5 %	0.0 %	2.5 %
Systemic risk buffer	3.0 %	0.0 %	3.0 %
Counter-cyclical capital buffer	1.0 %	0.0 %	1.0 %
Pilar 2-requirement	1.5 %	0.0 %	1.5 %
Current capital requirement incl. buffers	12.5 %	3.5 %	16.0 %
Capital requirement leverage ratio	3.0 %	0.0 %	3.0 %

Note 14 Fixed-income securities

NOK THOUSANDS	31.03.2021		31.03.2020		31.12.2020
	Acquisition cost	Market value	Acquisition cost	Market value	Acquisition cost	Market value
Certificates	608 842	608 837	454 434	455 074	650 553	651 453
Bonds	2 646 406	2 654 975	5 423 793	5 425 173	2 492 844	2 496 775
Total fixed-income securities	3 255 248	3 263 812	5 878 226	5 880 248	3 143 397	3 148 228
Fixed income securities are brought to account at market value, including accrued but not due interests.

Note 15 Loan loss provision

In the first quarter of 2021 the bank has made some minor adjustments in the expected loss model, but the level of loan loss provisions has not changed substantially, compared to the fourth quarter of 2020. The total loan loss provisions in KLP Banken AS was reduced by 1,5 percent and by 1,8 percent on the group level.

Refer to Note 18 and Note 2 in the annual report for more details of the model.

Expected credit loss (ECL) - loans to customers, all segments

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Opening balance ECL 01.01.2021	4 422	586	1 567	6 577
Transfer to stage 1	254	-244	-9	0
Transfer to stage 2	-36	122	-86	0
Transfer to stage 3	-3	-200	206	3
Net changes	-493	-69	300	-262
New losses	167	0	0	167
Write-offs	-80	-3	-2	-86
Change in risk model	8	37	17	62
Closing balance ECL 31.03.2021	4 240	228	1 994	6 462
Changes (01.01.2021 - 31.03.2021)	-183	-358	426	-115

Expected credit loss (ECL) - loans to customers, amortised cost

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Opening balance ECL 01.01.2021	1 075	486	1 559	3 120
Transfer to stage 1	221	-213	-9	0
Transfer to stage 2	-25	110	-85	0
Transfer to stage 3	-3	-184	187	0
Net changes	-348	-61	295	-114
New losses	87	0	0	87
Write-offs	-67	-1	-2	-70
Change in risk model	8	29	17	55
Closing balance ECL 31.03.2021	948	167	1 962	3 077
Changes (01.01.2021 - 31.03.2021)	-126	-320	403	-43

Losses on unused credit

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Opening balance ECL 01.01.2021	3 350	99	8	3 457
Transfer to stage 1	32	-32	-1	0
Transfer to stage 2	-10	11	-1	0
Transfer to stage 3	0	-1	1	0
Net changes	-143	-8	5	-146
New losses	81	0	0	81
Write-offs	-14	-2	0	-15
Change in risk model	0	7	0	7
Closing balance ECL 31.03.2021	3 296	75	13	3 385
Changes (01.01.2021 - 31.03.2021)	-54	-23	5	-73

Value of lending and receivables for customers recognised in the balance sheet - all segments

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Gross lending 01.01.2021	37 940 905	166 651	54 315	38 161 871
Transfer to stage 1	40 115	-31 369	-8 746	0
Transfer to stage 2	-21 064	28 208	-7 145	0
Transfer to stage 3	-5 982	-13 098	19 080	0
Net changes	-296 925	-824	1 300	-296 450
New losses	3 970 940	7 100	819	3 978 859
Write-offs	-4 217 782	-10 809	-2 672	-4 231 263
Gross lending 31.03.2021	37 410 207	145 859	56 951	37 613 018

Losses on lending and receivables from customers rated at amortised cost

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Gross lending 01.01.2021	37 940 905	166 651	54 315	38 161 871
Transfer to stage 1	40 115	-31 369	-8 746	0
Transfer to stage 2	-21 064	28 208	-7 145	0
Transfer to stage 3	-5 982	-13 098	19 080	0
Net change	-296 925	-824	1 300	-296 450
New lending	3 970 940	7 100	819	3 978 859
Write-offs	-4 217 782	-10 809	-2 672	-4 231 263
Gross lending 31.03.2021	37 410 207	145 859	56 951	37 613 018

Exposure - unused credit

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Gross lending 01.01.2021	993 121	3 434	290	996 845
Transfer to stage 1	1 118	-1 099	-19	0
Transfer to stage 2	-776	815	-39	0
Transfer to stage 3	-14	-32	45	0
Net change	17 444	-429	172	17 187
New lending	66 674	0	0	66 674
Write-offs	-23 193	-60	0	-23 253
Gross lending 31.03.2021	1 054 375	2 629	449	1 057 453

Losses recognised in the profit and loss account consist of:

NOK THOUSANDS	Q1 2021	Q1 2020	01.01.2020 -31.12.2020
Change in loss provisions in stage 1, 2 and 3	-613	-2 385	-4 838
Established losses	-4	-1	-55
Recovery for previously established losses	84	91	591
Total losses in the income statement	-533	-2 296	-4 302

Note 16 Contingent liabilites

NOK THOUSANDS	31.03.2021	31.03.2020	31.12.2020
Credit facilities for lending not utilized	809 019	664 734	743 495
Credit facilities issued credit card	257 884	239 066	253 580
Loan promise	1 327 060	1 330 949	651 063
Total contingent liabilities	2 393 963	2 234 749	1 648 138

Credit facilities for lending not utilized: The ‘Fleksilån’ product is included here; this is a credit facility which allows the customer to borrow up to a specified credit limit.

Credit facilities issued credit card: Customers’ credit card limits are a contingent liability for the Bank, where the customer can choose to utilise the credit up to the allocated credit limit.

Loan commitment: The Bank issues funding certificates that customers can use in bidding procedures for home purchases. This also includes other loans that have been granted but not disbursed.

Note 17 Net gain/(loss) on financial instruments

NOK THOUSANDS	Q1 2021	Q1 2020	01.01.2020 -31.12.2020
Net gain/(loss) on fixed-income securities	20 704	-8 976	14 823
Net gain/(loss) financial derivatives and realized amortization linked to lending	0	0	-1 303
Net gain/(loss) financial derivatives and realized repurchase of own debt	-5 773	-3 469	-38 905
Net value change lending and borrowing, hedge accounting	-222	-22	500
Other financial income and expenses	-242	-265	-1 260
Total net gain/(loss) on financial instruments	14 467	-12 732	-26 145

Note 18 Leases

NOK THOUSANDS	31.03.2021	31.03.2020	31.12.2020
	Property
RIGHT-OF-USE ASSETS
Opening balance 01.01.	1 948	3 506	3 506
Depreciation	-390	-390	-1 558
Closing balance	1 558	3 116	1 948
LEASE LIABILITIES
Opening balance 01.01.	2 023	3 573	3 573
Repayments	-397	-382	-1 550
Closing balance	1 626	3 191	2 023

NOK THOUSANDS	Q1 2021	Q1 2020	01.01.2020 -31.12.2020
	Property
Interest expense lease liabilities	9	16	54
Interest expense lease liabilities	9	16	54
The lease expires on 31.01.2022. It is an intercompany lease for the rental of office premises with KLP Eiendom.

Note 19 Pension obligations - own employees

NOK THOUSANDS	31.03.2021	31.03.2020	31.12.2020
Capitalized net liability	41 550	35 649	35 649
Pension costs taken to profit/loss	3 246	2 713	10 798
Finance costs taken to profit/loss	243	265	1 084
Actuarial gains and losses incl. social security contributions	-7 732	13 685	3 557
Premiums/supplement paid-in including admin	-2 249	-2 293	-9 539
Capitalized net liability	35 058	50 019	41 550

ASSUMPTIONS	31.03.2021	31.03.2020	31.12.2020
Discount rate	2.00%	1.70%	1.70%
Salary growth	2.25%	2.25%	2.25%
The National Insurance basic amount (G)	2.00%	2.00%	2.00%
Pension increases	1.24%	1.24%	1.24%
Social security contribution	14.10%	14.10%	14.10%
Capital activity tax	5.00%	5.00%	5.00%

Quarterly earnings trend

NOK MILLIONS	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020
Interest income	167.9	180.0	191.8	243.8	305.3
Interest expense	-89.2	-89.2	-95.6	-180.7	-226.8
Net interest income	78.7	90.8	96.2	63.1	78.5
Commision income and income from banking services	4.6	4.8	5.2	5.1	5.1
Commision cost and cost from banking services	-0.4	-0.5	-0.5	-0.4	-0.5
Net charges and commission income	4.2	4.3	4.8	4.8	4.6
Other fee income	14.9	14.8	14.8	14.8	14.8
Net gain/(loss) financial instruments	14.5	-4.4	-5.6	3.3	-12.7
Total other operating income	29.3	10.4	9.2	18.1	2.1
Salaries and administrative costs	-20.3	-22.6	-15.5	-19.2	-19.0
Depreciation	-1.7	-1.6	-1.5	-1.5	-1.5
Other operating expenses	-41.1	-46.1	-30.0	-39.8	-40.8
Net loan losses	-0.5	-0.1	-1.3	-0.6	-2.3
Total operating expenses	-63.6	-70.5	-48.3	-61.1	-63.6
Operating profit/loss before tax	48.6	35.1	61.8	24.9	21.6
Tax ordinary income	15.4	-8.1	-14.7	-6.2	23.0
Profit/loss for the period	64.0	27.0	47.1	18.7	44.6
Other comprehensive income	7.7	8.7	3.8	-2.5	-13.7
Tax on other comprehensive income	-1.9	-2.2	-1.0	0.6	3.4
Other comprehensive income for the period	5.8	6.6	2.9	-1.8	-10.3
Comprehensive income for the period	69.8	33.6	50.0	16.9	34.3

Key figures – accumulated

NOK MILLIONS	Q1 2021	Q4 2020	Q3 2020	Q2 2020	Q1 2020
Pre-tax income	48.6	136.8	101.7	39.9	21.6
Net interest income	78.7	328.6	237.7	141.6	78.5
Other operating income	19.0	77.7	58.6	39.0	19.4
Other operating cost and depreciation	-63.6	-243.4	-172.9	-124.6	-63.6
Net gain/(loss) financial instruments	14.5	-26.1	-21.7	-16.1	-12.7
Deposits	12 103.2	11 781.2	11 992.9	12 244.9	12 034.5
Lending customers	20 893.9	20 569.8	20 610.3	20 121.0	19 142.5
Lending with public sector guarantee	16 734.4	17 654.3	16 932.7	17 356.5	16 823.2
Non-performing loans	57.0	54.3	48.2	77.3	97.2
Total liabilities created on issuance of securities	27 147.4	25 799.5	26 203.3	25 993.4	28 145.5
Other borrowing	1 303.2	2 504.2	2 602.7	3 001.7	1 450.1
Total assets	43 200.4	42 688.0	43 437.9	43 850.2	44 257.7
Average total assets	42 944.2	41 188.3	41 568.3	41 774.5	41 978.2
Equity	2 469.5	2 426.8	2 388.7	2 338.6	2 331.3
Interest net	0.18 %	0.80 %	0.57 %	0.34 %	0.19 %
Profit/loss from ordinary operation before taxes	0.11 %	0.33 %	0.24 %	0.10 %	0.05 %
Return on equity	8.02 %	6.16 %	6.11 %	3.59 %	3.56 %
Capital adequacy ratio	19.3 %	19.5 %	18.7 %	18.4 %	18.8 %
Liquidity coverage ratio (LCR)	371 %	443 %	270 %	207 %	258 %

Contact information

KLP BANKEN AS
Beddingen 8
7042 Trondheim

Org.nr.: 993 821 837

Visitors address, Trondheim
Beddingen 8

Visitors address, Oslo
Dronning Eufemias gate 10

klpbanken.no

Phone: + 47 55 54 85 00
klpbanken@klp.no