Q4 Interim report KLP Banken Group

KLP Banken GroupQ4 2021

Main features by the fourth quarter end:

Stronger mortgage growth
Good underlying operation
Lower credit losses

The KLP Banken Group finances mortgages and other credit to retail customers as well as loans to municipalities, county municipalities and companies that perform public tasks. 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 118 (115) billion. The overall business of KLP Banken AS and its subsidiaries is divided into the retail market and public sector loans business areas. The business is nationwide.

In the retail market KLP Banken will provide products and services at competitive terms to contribute to enterprises having elected KLP as their pension scheme provider are perceived as attractive employers.

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

Towards the end of the fourth quarter, Corona restrictions were introduced again, and most of the bank’s employees are working from home.

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 located in Trondheim.

INCOME STATEMENT

By the end of the fourth quarter, the KLP Banken Group had a pre-tax profit of NOK 116.1 (136.8) million. The change is mainly related to lower lending margins, increased costs, and changes in the value of financial instruments. Distributed into the two business areas, the retail market segment generated a profit of NOK 87.6 (101.6) million while the public sector segment achieved a profit of NOK 28.5 (35.2) million. Group total income after taxes and actuarial adjustments amounted to NOK 121.0 (129,8) million by fourth quarter end 2021.

The Board’s opinion is that the Bank’s underlying operations are in good a development and loan activities are growing. Based on the very special conditions embossing the accounts last year, the Board is well satisfied with the profit statement for 2021.

Net interest income in the KLP Banken Group at the end of the fourth quarter was NOK 308.6 (317.3) million. Lending margins in the fourth quarter were affected by KLP Bankens decision to keep mortgage rates unchanged after the central bank interest rate rise in September. Increased borrowing costs have thus resulted in lower net interest income in the fourth quarter compared to earlier in 2021.

Net charges and commissions income was NOK 19.5 (18.5) million at the end of the quarter.

The bank group administers housing mortgages and public sector lending financed by its parent company (KLP). The management fee for this task amounted to NOK 59.4 (59.2) million at quarter end.

Operating expenses including depreciations amounted to NOK 236.2 (227.8) million.

At the end of the quarter, the income statement includes a net loss associated with securities amounting to NOK -32.9 (-26.1) million. The profit and loss effects are mainly due to one-off expenses from buy-back of own bond issues in the daughter enterprises and to market value changes in the liquidity investment portfolios.

In 2021 loan loss provisions and realized losses amounted to NOK 2.3 (4.3) million in the retail market. This is mainly due to loss on credit card drawn credits. The pandemic has not increased loan losses on mortgages, and total losses have been significantly reduced from last year. Nor in 2021 the public sector market has incurred realized loan losses.

LENDING AND CREDITS

On 31 December 2021, the KLP Banken Group had a lending balance of NOK 39.9 (38.2) billion. The distribution between the retail market and public sector lending was NOK 22.1 (20.5) billion and NOK 17.8 (17.7) billion, respectively.

The retail market in KLP Banken show a strong growth in volumes this fourth quarter. For the year, the annual growth rate on mortgages was NOK 1.5 (2.2) billion, of which about half was in the fourth quarter. KLP Banken experiences that market growth for mortgages market is flattening, and this contributes to increased competition. It has also become increasingly easier to change lender. Demand for new financing in KLP Banken has nevertheless increased among the members of KLP's pension schemes, but the proportion of early redemptions has also increased.

Mortgage loans amounting NOK 6.0 (7.5) billion are in 2021 sold from KLP Banken to the daughter company KLP Boligkreditt AS. Managed mortgages for KLP was reduced by NOK 0.2 (0.1) billion due to ordinary repayments and redemptions.

Outstanding credits drawn on credit cards are reduced by approximately 12 per cent compared to last year. This is assumed to be due to a general reduction in the need for unsecured credits. Granted credits still shows an increase and the number of credit card customers is growing.

The lending volume in the public market increased by NOK 0.3 (1.0) billion during 2021. Loans to public borrowers managed for KLP increased by NOK 4.7 (7.1) billion in the same period. Managed loans to foreign debtors in foreign currency have been further reduced by NOK -3.5 (-0.9) billion since the turn of last year.

LIQUID INVESTMENT

On the reporting date, the portfolio of liquid investments comprising interest bearing securities amounted to NOK 6.0 (3.1) billion. Net profit and loss effects due to market value changes as at fourth quarter end was NOK -3.4 (14.8) million.

BORROWING

The KLP Banken Group's external financing comprise deposits and bonds. At the reporting date, deposits from individuals and companies was NOK 12.9 (11.8) billion and bonds issued amounted to NOK 31.9 (25.8) billion. Of the outstanding volume of bonds issued, covered bonds (OMF) issued by KLP Kommunekreditt AS and KLP Boligkreditt AS, amounted to NOK 18.6 (17.4) billion and NOK 12.4 (10.6) billion respectively. All covered bond issues have achieved AAA rating. Outstanding securities debt in KLP Banken AS amounted to NOK 0.9 (0.8) billion.

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 subject to management using policies, limits, routines and instructions.

The bank is to 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 due to regulatory requirements, and limits have been established to ensure that that this objective is achieved.

The credit risk associated with the bank’s assets is low, and lending is mainly limited to loans with local government risk and loans with 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 fourth quarter, eligible Tier 1 and Tier 2 capital i.a.w. the capital adequacy rules were NOK 2 498 (2 402) 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 18.7 (19.5) 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 5.2 (5.5) per cent. Here the requirement is 3.0 per cent.

Income statement KLP Banken Group

NOTES	NOK THOUSANDS	Q4 2021	Q4 2020	01.01.2021 -31.12.2021	01.01.2020 -31.12.2020
	Interest income, effective interest method	164 783	158 597	621 624	768 442
	Other interest income	20 422	22 356	68 176	132 655
3	Total interest income	185 205	180 953	689 801	901 098
	Interest expense, effective interest method	-89 448	-67 842	-290 728	-469 541
	Other interest expense	-19 939	-25 106	-90 463	-114 210
3	Total interest costs	-109 387	-92 948	-381 191	-583 751
				0
3	Net interest income	75 818	88 005	308 609	317 346
				0
	Commision income and income from banking services	6 000	4 790	21 520	20 285
	Commision cost and cost from banking services	-571	-456	-2 033	-1 766
	Net charges and commission income	5 429	4 335	19 487	18 519
	Other fee income	14 850	14 820	59 400	59 220
17	Net gain/ (loss) financial instruments	-9 439	-4 435	-32 896	-26 145
	Total other operating income	5 411	10 385	26 504	33 074
	Salaries and administrative costs	-23 519	-22 605	-81 930	-76 228
	Depreciation	-1 431	-1 589	-6 409	-6 038
	Other operating expenses	-38 400	-43 255	-147 846	-145 571
15	Net loan losses	-958	-127	-2 299	-4 302
	Total operating expenses	-64 307	-67 576	-238 484	-232 139
	Operating profit/loss before tax	22 351	35 149	116 117	136 801
	Tax ordinary income	-5 242	-8 063	-423	-4 288
	Profit/loss for the period	17 109	27 086	115 694	132 514
	Estimate difference, pension obligation and assets	18 688	8 745	7 136	-3 557
	Tax on actuarial gains and losses	-4 672	-2 186	-1 784	889
	Items that will not be reclassified to profit and loss	14 016	6 559	5 352	-2 668
	Changes in the fair value through profit and loss	0	0	0	0
	Tax on changes in fair value of available for sale financial assets	0	0	0	0
	Items that may be reclassified to profit and loss	0	0	0	0
	Other comprehensive income for the period	14 016	6 559	5 352	-2 668
	Comprehensive income for the period	31 125	33 644	121 046	129 846

Balance sheetKLP Banken Group

NOTES	NOK THOUSANDS	31.12.2021	31.12.2020
	ASSETS
5	Claims on central banks	67 244	68 941
5	Loans to credit institutions	1 398 501	1 175 714
4,5	Loans to customers	39 934 100	38 224 087
5,6,14	Fixed-income securities	6 001 099	3 148 228
5,6	Shareholdings	1 187	1 197
5,6,9	Financial derivatives	42 051	42 630
	Intangible assets	16 789	19 018
18	Right-of-use assets	18 236	1 948
	Fixed assets	436	444
11	Other assets	2 217	5 819
	Total assets	47 481 860	42 688 027
	LIABILITIES AND OWNERS EQUITY
	LIABILITIES
5,8	Debt to credit institutions	0	2 504 192
5,7	Debt securities issued	31 917 798	25 799 465
5	Deposits and borrowings from the public	12 901 004	11 781 187
5,6,9	Financial derivatives	9 990	80 425
	Deferred tax liabilities	23 343	21 179
18	Lease liabilities	18 323	2 023
12	Other liabilities	38 369	14 056
12	Provision for accrued costs and liabilities	52 249	58 700
	Total liabilities	44 961 078	40 261 226
	EQUITY
	Share capital	1 065 000	1 065 000
	Share premium	825 000	825 000
	Other owners' eqyity	630 782	536 801
	Total equity	2 520 782	2 426 801
	Total liabilities and equity	47 481 860	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
Income for the year	0	0	115 694	115 694
Other comprehensive income	0	0	5 352	5 352
Total comprehensive income for the period	0	0	121 046	121 046
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 December 2021	1 065 000	825 000	630 782	2 520 782

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 flowsKLP Banken Group

NOK THOUSANDS	01.01.2021 -31.12.2021	01.01.2020 -31.12.2020
OPERATING ACTIVITIES
Payments received from customers – interest, commission and charges	638 105	812 696
Payments to customers – interest, commission and charges	-89 196	-128 918
Disbursements on loans to customers and credit institutions	-16 640 961	-19 998 713
Receipts on loans to customers	14 782 637	16 596 718
Net receipts on customer deposits banking	1 119 290	295 164
Disbursements on operations	-148 301	-152 043
Payments to staff, pension schemes, employer's social security contribution etc.	-81 174	-73 207
Interest investment accounts	9 617	7 871
Net receipts/disbursements from operating activities	64 335	111 414
Net cash flow from operating activities	-345 647	-2 529 017
INVESTMENT ACTIVITIES
Receipts on the sale of securities	9 763 759	11 425 797
Payments on the purchase of securities	-9 551 367	-11 440 399
Receipts of interest from securities	45 074	50 630
Payments on the purchase of tangible fixed assets	-2 578	-2 983
Net cash flow from investment activities	254 889	33 045
FINANCING ACTIVITIES
Receipts on loans from credit institutions	0	5 470 000
Repayment and redemption from credit institutions	-2 500 000	-2 970 000
Net payment of interest from credit institutions	-6 517	-838
Receipts on loans	9 300 000	7 250 407
Repayments and redemption of securities debt	-6 569 839	-6 756 063
Buy-back of securities debt	343 369	-480 000
Net payment of interest on loans	-238 607	-416 991
Payment of lease liabilities	-1 654	-1 570
Group contributions made	-27 066	-28 144
Equity contributions received	0	100 000
Net cash flows from financing activities	299 685	2 166 802
Net cash flow during the period	208 928	-329 171
Cash and cash equivalents at the start of the period	1 212 067	1 541 238
Cash and cash equivalents at the end of the period	1 420 995	1 212 067
Net receipts/disbursements (-)	208 928	-329 171

Notes to the financial statement

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 December 2021, with a specification of the results in the fourth quarter. The interim Financial Statements has not been audited.

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

In January 2022, the Norwegian Accounting Standards Board published updated guiding assumptions for pension liabilities. In relation to the assumptions used as at 31.12.2020, the discount rate for corporate bonds was changed from 1.7 % to 1.9 %. At the same time, wage growth was changed from 2.25 % to 2.50 %, the National Insurance Scheme's basic amount (G) was changed from 2.0 % to 2.25 % and pension adjustment was changed from 1.24 % to 1.74 %. In total, these changes result in a NOK 7.1 million decrease in recognised pension liabilities for the Group as at 31.12.2021.

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	Q4 2021	Q4 2020	01.01.2021 -31.12.2021	01.01.2020 -31.12.2020
Interest income on loans to customers	162 516	157 931	617 688	760 567
Interest income on loans to credit institutions	2 266	666	3 937	7 875
Total interest income, effective interest method	164 783	158 597	621 624	768 442
Interest income on bonds and certificates	13 021	7 669	36 486	50 241
Other interest income	7 401	14 687	31 690	82 414
Total other interest income	20 422	22 356	68 176	132 655
Total interest income	185 205	180 953	689 801	901 098
Interest expenses on deposits to customers	-18 482	-16 480	-70 216	-122 407
Interest expenses on issued securities	-70 879	-51 351	-220 403	-347 080
Interest expense lease liabilities	-87	-11	-109	-54
Total interest expenses, effective interest method	-89 448	-67 842	-290 728	-469 541
Other interest expenses	-15 631	-22 300	-73 196	-102 988
Interest expenses on deposits to customers	-4 308	-2 806	-17 268	-11 222
Total other interest expenses	-19 939	-25 106	-90 463	-114 210
Total interest expenses	-109 387	-92 948	-381 191	-583 751
Net interest income	75 818	88 005	308 609	317 346

Note 4 Loans to customers

NOK THOUSANDS	31.12.2021	31.12.2020
Principal on loans to customers	39 870 185	38 057 684
Credit portfolio	43 355	49 595
Overdraft current account	179	531
Write-downs step 1 and 2	-1 075	-1 558
Write-downs step 3	-1 040	-872
Loans to customers after write-downs	39 911 604	38 105 380
Accrued interest	53 852	53 806
Premium/discount	0	74
Fair value hedging	-31 356	64 827
Loans to customers	39 934 100	38 224 087

Note 5 Categories of financial instruments

NOK THOUSANDS	31.12.2021		31.12.2020
	Capitalized value	Fair value	Capitalized value	Fair value
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS
Fixed-income securities	6 001 099	6 001 099	3 148 228	3 148 228
Financial derivatives	42 051	42 051	42 630	42 630
Shares and holdings	1 187	1 187	1 197	1 197
Total financial assets at fair value through profit and loss	6 044 337	6 044 337	3 192 054	3 192 054
FINANCIAL ASSETS FAIR VALUE HEDGING
Loans to and receivables from customers	2 012 822	2 056 718	3 734 955	3 790 329
Total financial assets fair value hedging	2 012 822	2 056 718	3 734 955	3 790 329
FINANCIAL ASSETS AT AMORTIZED COST
Loans to and receivables from credit institutions	67 244	67 244	68 941	68 941
Loans to and receivables from central banks	1 398 501	1 398 501	1 175 714	1 175 714
Loans to and receivables from customers	37 921 278	37 877 270	34 489 133	34 489 133
Total financial assets at amortized cost	39 387 023	39 343 014	35 733 788	35 733 788
Total financial assets	47 444 182	47 444 069	42 660 798	42 716 172
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT AND LOSS
Financial derivatives	9 990	9 990	80 425	80 425
Total financial liabilities at fair value through profit and loss	9 990	9 990	80 425	80 425
FINANCIAL LIABILITIES FAIR VALUE HEDGING
Liabilities created on issuance of securities	508 146	515 581	1 139 041	1 148 872
Total financial liabilities fair value hedging	508 146	515 581	1 139 041	1 148 872
FINANCIAL LIABILITIES AT AMORTIZED COST
Liabilities to credit institutions	0	0	2 504 192	2 504 192
Liabilities created on issuance of securities	31 409 652	30 977 884	24 660 423	25 283 898
Deposits from customers	12 901 004	12 901 004	11 781 187	11 781 187
Total financial liabilities at amortized cost	44 310 656	43 878 888	38 945 802	39 569 276
Total financial liabilities	44 828 792	44 404 459	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

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

31.12.2021 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	595 610	5 405 489	0	6 001 099
Shareholdings	0	0	1 187	1 187
Financial derivatives	0	42 051	0	42 051
Total assets at fair value	595 610	5 447 540	1 187	6 044 337
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)	0	9 990	0	9 990
Total financial liabilities at fair value	0	9 990	0	9 990

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	31.12.2021	31.12.2020
CHANGES IN LEVEL 3 UNLISTED SHARES
Opening balance	1 197	2 053
Additions/purchases of shares	77	125
Unrealized changes	-87	-981
Closing balance	1 187	1 197
Realized gains/losses	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 Debt securities issued - stock exchange listed covered bonds and certificates

NOK THOUSANDS	31.12.2021	31.12.2020
Bond debt, nominal amount	33 426 640	27 628 407
Adjustments	60 603	74 537
Accrued interest	38 554	26 521
Own holdings, nominal amount	-1 608 000	-1 930 000
Total debt securities issued	31 917 798	25 799 465
Interest rate on borrowings through the issuance of securities at the reporting date:	1.10%	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 31.12.2021
Changes in debt securities issued - stock exchange listed covered bonds and cerftificates
Bond debt, nominal amount	27 628 407	9 300 000	-6 570 000	3 068 233	33 426 640
Adjustments	74 537	0	0	-13 934	60 603
Accrued interest	26 521	0	0	12 033	38 554
Own holdings, nominal amount	-1 930 000	0	322 000	0	-1 608 000
Total debt securities issued	25 799 465	9 300 000	-6 248 000	3 066 332	31 917 798

Note 8 Liabilities to credit institutions

NOK THOUSANDS	Due date	Nominal value	Accrued interest	Book value 31.12.2021
Norges Bank	-	0	0	0
Total liabilities to credit institutions	-	0	0	0
All loans in Norges Bank have been redeemed as of 31.12.2021.

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 31.12.2021
F-loans Norges Bank	2 504 192	0	-2 500 000	-4 192	0
Total liabilities to credit institutions	2 504 192	0	-2 500 000	-4 192	0

Note 9 Financial assets and liabilities subject to net settlement

31.12.2021 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	42 051	0	42 051	-9 200	0	32 851
Total	42 051	0	42 051	-9 200	0	32 851
LIABILITIES
Financial derivatives	9 990	0	9 990	-9 200	-3 628	0
Total	9 990	0	9 990	-9 200	-3 628	0

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	01.01.2021 -31.12.2021	01.01.2020 -31.12.2020
KLP, fees lending management	59 400	59 200
KLP Kapitalforvaltning AS, fees for services provided	-171	-315
KLP, rent	-2 699	-2 725
KLP Skipsbygget AS, rent	-1 727	-1 854
KLP Bassengtomten AS, rent parking	-87	-85
KLP Eiendomsdrift AS, cost office buildings	-366	-195
KLP, pension premium	-13 140	-10 960
KLP, staff services (at cost)	-68 399	-66 596
KLP Group companies, subsidised interest employee loans	11 825	14 187

NOK THOUSANDS	31.12.2021	31.12.2020
BALANCES
KLP, net internal accounts	-1 667	92
KLP, loan settlement	-1 333	3 004
KLP Group companies, net other internal accounts	1 046	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	31.12.2021	31.12.2020
Intercompany receivables	2 196	5 472
Miscellaneous receivables	0	117
Prepaid expenses	21	229
Total other assets	2 217	5 819

Note 12 Other liabilities and provision for accrued costs

NOK THOUSANDS	31.12.2021	31.12.2020
Creditors	2 867	5 086
Intercompany payables	4 150	1 213
Other liabilities	31 352	7 757
Total other liabilities	38 369	14 056
Withholding tax	2 813	2 949
Social security contributions	2 265	2 570
Capital activity tax	820	1 227
Holiday pay	6 273	5 856
Pension obligations	36 693	41 550
VAT	211	36
Provisioned costs	3 176	4 512
Total accrued costs and liabilities	52 249	58 700

Note 13 Capital adequacy

NOK THOUSANDS	31.12.2021	31.12.2020
Share capital and share premium fund	1 890 000	1 890 000
Other owners' equity	630 782	536 801
Total owners' equity	2 520 782	2 426 801
Adjustments due to requirements for proper valuation	-6 001	-6 226
Deduction goodwill and other intangible assets	-16 789	-19 018
Core capital/Tier 1 capital	2 497 992	2 401 558
Supplementary capital/Tier 2 capital	0	0
Supplementary capital/Tier 2 capital	0	0
Total eligible own funds (Tier 1 and Tier 2 capital)	2 497 992	2 401 558
Capital requirement	1 070 801	983 091
Surplus of own funds (Tier 1 and Tier 2 capital)	1 427 191	1 418 468
Estimate basis credit risk:
Institutions	286 512	242 831
Retail	302 739	163 069
Local and regional authorities (incl. municipalities/county administations)	3 628 147	3 559 832
Investments with mortgage security in real estate	7 824 605	7 386 329
Investments fallen due	36 584	72 770
Covered bonds	498 905	227 068
Other holdings	131 535	54 755
Calculation basis credit risk	12 709 027	11 706 654
Credit risk	1 016 722	936 532
Operating risk	53 416	46 448
Credit valuation adjustments (CVA)	663	110
Total capital requirement assets	1 070 801	983 091
Core capital adequacy ratio	18.7 %	19.5 %
Supplementary capital ratio	0.0 %	0.0 %
Capital adequacy ratio	18.7 %	19.5 %
Leverage ratio	5.2 %	5.5 %

CAPITAL REQUIREMENT PER 31.12.2021	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	31.12.2021		31.12.2020
	Acquisition cost	Market value	Acquisition cost	Market value
Certificates	567 264	567 443	650 553	651 453
Bonds	5 437 376	5 433 656	2 492 844	2 496 775
Total fixed-income securities	6 004 640	6 001 099	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 fourth quarter of 2021 the bank has made some adjustments in the expected loss model. The bank now calculates excepted loss on deposit accounts with overdrafts. It also calculates expected loss on loan commitments. The total loan loss provisions in KLP Banken AS were increased by 8 percent and by 4 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	261	-119	-142	0
Transfer to stage 2	-71	160	-89	0
Transfer to stage 3	-11	-191	203	0
Net changes	-473	-148	8	-613
New losses	552	18	45	614
Write-offs	-337	-38	-30	-405
Change in risk model	3	15	191	209
Closing balance ECL 31.12.2021	4 346	282	1 753	6 382
Changes (01.01.2021 - 31.12.2021)	-76	-304	185	-195

Expected credit loss (ECL) loans to customers – mortgage

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	324	357	1 468	2 148
Transfer to stage 1	110	-9	-102	0
Transfer to stage 2	-24	109	-84	0
Transfer to stage 3	0	-169	169	0
Net changes	-366	-175	44	-497
New losses	119	11	0	130
Write-offs	-10	-2	0	-12
Change in risk model	7	-1	2	8
Closing balance ECL 31.12.2021	159	121	1 498	1 777
Changes (01.01.2021 - 31.12.2021)	-165	-237	30	-371

Expected credit loss (ECL) - public lending

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	173	0	0	173
Transfer to stage 1	0	0	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	0	0	0	0
Net changes	-9	0	0	-9
New losses	26	0	0	26
Write-offs	-15	0	0	-15
Closing balance ECL 31.12.2021	176	0	0	176
Changes (01.01.2021 - 31.12.2021)	3	0	0	3

Expected credit loss (ECL) - credit card

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	3 907	229	101	4 237
Transfer to stage 1	151	-111	-41	0
Transfer to stage 2	-47	51	-4	0
Transfer to stage 3	-11	-23	34	0
Net changes	-405	-9	-23	-436
New losses	400	7	0	407
Change in risk model	-9	16	0	7
Closing balance ECL 31.12.2021	3 987	161	67	4 215
Changes (01.01.2021 - 31.12.2021)	80	-67	-34	-22

Expected credit loss (ECL) loans to customers - senior loans

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	18	0	0	18
Transfer to stage 1	0	0	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	0	0	0	0
Net changes	-2	0	0	-2
New losses	3	0	0	3
Closing balance ECL 31.12.2021	19	0	0	19
Changes (01.01.2021 - 31.12.2021)	1	0	0	1

Expected credit loss (ECL) loans to customers - overdrafts of accounts

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	0	0	0	0
Transfer to stage 1	0	0	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	0	0	0	0
Net changes	-4	0	-44	-47
New losses	4	0	45	49
Change in risk model	5	0	188	193
Closing balance ECL 31.12.2021	5	0	189	194
Changes (01.01.2021 - 31.12.2021)	5	0	189	194

Book value of loans and receivables for 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
Lending 01.01.2021	37 940 905	166 651	54 315	38 161 871
Transfer to stage 1	26 144	-17 560	-8 584	0
Transfer to stage 2	-401 112	413 743	-12 631	0
Transfer to stage 3	-4 189	-7 915	12 104	0
Net changes	-1 338 481	-10 335	1 288	-1 347 528
New losses	12 320 968	46 816	3 146	12 370 930
Write-offs	-9 139 803	-63 815	-13 683	-9 217 300
Lending 31.12.2021	39 404 432	527 587	35 954	39 967 973

Book value of loans and receivables for customers – mortgages

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Lending 01.01.2021	18 672 122	162 057	51 005	18 885 185
Transfer to stage 1	23 024	-15 711	-7 313	0
Transfer to stage 2	-399 277	411 751	-12 475	0
Transfer to stage 3	-3 284	-7 213	10 497	0
Net change	-5 025 645	-29 782	-10 461	-5 065 888
New lending	9 431 086	46 673	3 101	9 480 860
Write-offs	-2 915 409	-43 572	-789	-2 959 770
Lending 31.12.2021	19 782 618	524 203	33 565	20 340 386

Losses on lending and receivables from customers - public lending

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Lending 01.01.2021	17 592 253	0	0	17 592 253
Transfer to stage 1	0	0	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	0	0	0	0
Net change	-853 994	0	0	-853 994
New lending	2 624 925	0	0	2 624 925
Write-offs	-1 487 251	0	0	-1 487 251
Lending 31.12.2021	17 875 934	0	0	17 875 934

Losses on lending and receivables from customers - credit card

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Lending 01.01.2021	42 146	4 594	3 310	50 049
Transfer to stage 1	3 120	-1 849	-1 271	0
Transfer to stage 2	-1 835	1 992	-157	0
Transfer to stage 3	-780	-702	1 482	0
Net change	-7 890	-796	-1 163	-9 848
New lending	3 524	144	0	3 667
Lending 31.12.2021	38 284	3 383	2 202	43 869

Losses on lending and receivables from customers - senior loans

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Lending 01.01.2021	1 633 715	0	0	1 633 715
Transfer to stage 1	0	0	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	0	0	0	0
Net change	-187 612	0	0	-187 612
New lending	261 429	0	0	261 429
Lending 31.12.2021	1 707 532	0	0	1 707 532

Book value of overdrafts of accounts

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Lending 01.01.2021	670	0	0	670
Transfer to stage 1	0	0	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	-125	0	125	0
Net change	-485	0	18	-467
New lending	4	0	44	49
Lending 31.12.2021	65	0	188	252

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
Lending 01.01.2021	993 121	3 434	290	996 845
Transfer to stage 1	2 147	-1 983	-164	0
Transfer to stage 2	-56 903	56 903	0	0
Transfer to stage 3	-69	-90	159	0
Net change	49 605	3 116	-103	52 618
New lending	243 297	1 451	0	244 748
Write-offs	-72 891	-230	-29	-73 150
Lending 31.12.2021	1 158 308	62 601	153	1 221 062

Losses recognised in the profit and loss account consist of:

NOK THOUSANDS	01.01.2021 -31.12.2021	01.01.2020 -31.12.2020
Change in loss provisions in stage 1, 2 and 3	-2 509	-4 838
Established losses	-356	-55
Recovery for previously established losses	566	591
Total losses in the income statement	-2 299	-4 302

Note 16 Contingent liabilites

NOK THOUSANDS	31.12.2021	31.12.2020
Credit facilities for lending not utilized	949 244	743 495
Credit facilities issued credit card	271 818	253 580
Loan promise	1 458 520	651 063
Total contingent liabilities	2 679 581	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	Q4 2021	Q4 2020	01.01.2021 -31.12.2021	01.01.2020 -31.12.2020
Net gain/(loss) on fixed-income securities	-8 970	1 468	-3 395	14 823
Net gain/(loss) financial derivatives and realized amortization linked to lending	-750	-1 344	-750	-1 303
Net gain/(loss) financial derivatives and realized repurchase of own debt	493	-4 283	-28 146	-38 905
Net value change lending and borrowing, hedge accounting	0	935	336	500
Other financial income and expenses	-212	-1 211	-941	-1 260
Total net gain/(loss) on financial instruments	-9 439	-4 435	-32 896	-26 145

Note 18 Leases

NOK THOUSANDS	31.12.2021	31.12.2020
	Property
RIGHT-OF-USE ASSETS
Opening balance 01.01.	1 948	3 506
Depreciation	-1 636	-1 558
Closing balance	18 236	1 948
LEASE LIABILITIES
Opening balance 01.01.	2 023	3 573
Repayments	-1 582	-1 550
Closing balance	18 323	2 023

NOK THOUSANDS	Q4 2021	Q4 2020	01.01.2021 -31.12.2021	01.01.2020 -31.12.2020
	Property
Interest expense lease liabilities	87	11	109	54
Interest expense lease liabilities	87	11	109	54
In the fourth quarter of 2021, a new 10-year lease has been capitalized. It is an intercompany lease for the rental of office premises with KLP Eiendom.

Note 19 Pension obligations - own employees

NOK THOUSANDS	31.12.2021	31.12.2020
Capitalized net liability	41 550	35 649
Pension costs taken to profit/loss	12 983	10 798
Finance costs taken to profit/loss	942	1 084
Actuarial gains and losses incl. social security contributions	-7 136	3 557
Premiums/supplement paid-in including admin	-11 646	-9 539
Capitalized net liability	36 693	41 550

ASSUMPTIONS	31.12.2021	31.12.2020
Discount rate	1.90 %	1.70 %
Salary growth	2.50 %	2.25 %
The National Insurance basic amount (G)	2.50 %	2.00 %
Pension increases	1.74 %	1.24 %
Social security contribution	14.10 %	14.10 %
Capital activity tax	5.00 %	5.00 %

Quarterly earnings trend

NOK MILLIONS	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020
Interest income	185.2	166.5	170.2	167.9	180.0
Interest expense	-109.4	-86.6	-93.1	-92.1	-92.0
Net interest income	75.8	80.0	77.1	75.7	88.0
Commision income and income from banking services	6.0	5.7	5.2	4.6	4.8
Commision cost and cost from banking services	-0.6	-0.6	-0.5	-0.4	-0.5
Net charges and commission income	5.4	5.2	4.7	4.2	4.3
Other fee income	14.9	14.9	14.9	14.9	14.8
Net gain/(loss) financial instruments	-9.4	-4.9	-33.0	14.5	-4.4
Total other operating income	5.4	10.0	-18.2	29.3	10.4
Salaries and administrative costs	-23.5	-17.7	-20.5	-20.3	-22.6
Depreciation	-1.4	-1.7	-1.7	-1.7	-1.6
Other operating expenses	-38.4	-36.1	-35.2	-38.1	-43.3
Net loan losses	-1.0	-0.2	-0.6	-0.5	-0.1
Total operating expenses	-64.3	-55.6	-58.0	-60.6	-67.6
Operating profit/loss before tax	22.4	39.5	5.7	48.6	35.1
Tax ordinary income	-5.2	-9.2	-1.3	15.4	-8.1
Profit/loss for the period	17.1	30.2	4.4	64.0	27.0
Other comprehensive income	18.7	-19.3	0.0	7.7	8.7
Tax on other comprehensive income	-4.7	4.8	0.0	-1.9	-2.2
Other comprehensive income for the period	14.0	-14.5	0.0	5.8	6.6
Comprehensive income for the period	31.1	15.8	4.4	69.8	33.6

Key figures – accumulated

NOK MILLIONS	Q4 2021	Q3 2021	Q2 2021	Q1 2021	Q4 2020
Pre-tax income	116.1	93.8	54.3	48.6	136.8
Net interest income	308.6	232.8	152.8	75.7	317.3
Other operating income	78.9	58.6	38.6	19.0	77.7
Other operating cost and depreciation	-238.5	-174.2	-118.6	-60.6	-232.1
Net gain/(loss) financial instruments	-32.9	-23.5	-18.6	14.5	-26.1
Deposits	12 901.0	12 773.7	12 642.6	12 103.2	11 781.2
Lending customers	0.0	21 364.8	21 409.3	20 893.9	20 569.8
Lending with public sector guarantee	0.0	16 842.2	16 752.1	16 734.4	17 654.3
Non-performing loans	36.0	31.5	34.1	57.0	54.3
Total liabilities created on issuance of securities	31 917.8	29 535.7	29 194.6	27 147.4	25 799.5
Other borrowing	0.0	0.0	701.8	1 303.2	2 504.2
Total assets	47 481.9	44 980.2	45 215.6	43 200.4	42 688.0
Average total assets	45 084.9	43 834.1	43 951.8	42 944.2	41 188.3
Equity	2 520.8	2 489.7	2 473.9	2 469.5	2 426.8
Interest net	0.68 %	0.53 %	0.35 %	0.18 %	0.80 %
Profit/loss from ordinary operation before taxes	0.26 %	0.21 %	0.12 %	0.11 %	0.33 %
Return on equity	4.78 %	5.15 %	4.47 %	8.02 %	6.16 %
Capital adequacy ratio	18.7 %	18.6 %	18.4 %	19.3 %	19.5 %
Liquidity coverage ratio (LCR)	495 %	353 %	438 %	371 %	443 %