Interim Financial Statements Q1 2023

KLP Banken Group

Interim Financial Statements 1/2023

Main features by first quarter:

Increased operating income
Moderate lending growth
Good P&L development

The KLP Banken Group finances mortgages and other credit in the retail market and lending to municipalities, county administrations and companies carrying out public sector assignments. Additionally, the KLP Banken Group manages a lending portfolio on behalf of its parent company Kommunal Landspensjonskasse (KLP). The Group manages a lending total of NOK 120 (116) billion. The lending business is nationwide and divided into the business areas retail market and public sector loans.

In the retail market, KLP Banken shall 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.

KLP Banken AS is wholly owned by KLP. KLP Banken AS has two wholly owned subsidiaries, KLP Kommunekreditt AS and KLP Boligkreditt AS. The main office is in Trondheim.

Income statement

The KLP Banken Group had a pre-tax profit at the end of first quarter of NOK 53.1 (18.3) million. Per business area the retail market segment generated a profit of NOK 35.4 (8.3) million, and the public sector segment NOK 17.7 (10.0) million.

Net interest income for the KLP Banken Group as at the end of first quarter 2023 was NOK 110.2 (72.1) million. The increase in net interest income is mainly due to the increase in market interest rates and that lending margins in average has been higher than in the same period last year.

At the end of the quarter the P&L statement incudes a net gain/loss on financial instruments of NOK -6.7 (-10.1) million. This P&L effect is mainly due to changes in market value of the banks’ liquid investments. An unsignificant part of this is realized costs.

Net fees and commissions income amounted to NOK 5.8 (5.2) million as at the first quarter.

The Group administers housing mortgages and public sector lending financed by its parent company (KLP). The management fee for this task amounted to NOK 15.3 (15.1) million at quarter end.

Operating expenses including depreciations amounted to NOK -71.4 (-64.0) million. Most of the increase is related to prize changes on external service purchases.

Loan loss provisions and realized losses brought to book so far in 2023 is NOK -0.3 (0.1) million in the retail market. The increase in interest rates has so far not led to a significant increase in loss on mortgages, but inflation and increased interest rate levels may ahead lead to reduced operability among lending customers. Nor in 2023 there has been ascertained loan losses on public sector lending.

The Group comprehensive income as at first quarter 2023 was NOK 91.2 (56.2) million.

Lending and credits

On 31 March 2023, the KLP Banken Group had a lending balance to customers totaling NOK 42.7 (40.6) billion. The distribution between the retail market and public sector market was NOK 23.3 (22.6) billion and NOK 19.4 (18.0) billion, respectively.

Net mortgage lending growth in the first quarter was NOK 75 million, which is significantly lower than at the same time last year. Reduced demand for new loans and refinancing is assumed to be seen in connection with increased interest rate level and inflation contributing to lower market growth. The bank's primary target group for mortgages are members of the pension schemes in KLP.

Mortgage loans amounting NOK 1.5 (1.5) billion was sold from KLP Banken AS to the daughter company KLP Boligkreditt AS in the quarter. Managed mortgages for KLP are little changed during the quarter.

Drawn credits on credit cards has been stable through the first quarter, but unused credits still show a moderate growth. The number of active credit card customers has also increased through the quarter.

The public sector lending balance in KLP Banken has increased by NOK 0.2 (0.2) billion so far this year. Managed public sector loans on behalf of KLP has increased by NOK 0.5 (0.1) billion.

Liquid investments

Available liquidity is invested in other banks and in interest-bearing securities. Investments in credit institutions amounted to NOK 0.8 (1.2) billion. The booked value of interest-bearing securities valued at fair value was NOK 5.7 (6.1) 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 14.1 (13.4) billion and issued bonds amounted to NOK 32.0 (31.9) billion. Of the outstanding issued volume, covered bonds (OMF) issued by KLP Kommunekreditt AS and KLP Boligkreditt AS, amounted to NOK 18.5 (18.5) billion and NOK 12.5 (12.4) billion respectively. All covered bond issues have achieved Aaa rating. Outstanding securities debt in KLP Banken AS amounted to NOK 1.1 (0.9) 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, analyzed and subject 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 that 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 demands, 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 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 2023, eligible Tier 1 and Tier 2 capital i.a.w. the capital adequacy rules were NOK 2 895 (2 464) 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 20.5 (18.1) per cent at the reporting time. The minimum statutory requirement is 14.0 per cent core capital adequacy and 17.5 per cent capital adequacy. Leverage ratio was 5.8 (5.1) per cent. Here the requirement is 3.0 per cent.

Income statementKLP Banken Group

NOTES	NOK THOUSANDS	Q1 2023	Q1 2022	01.01.2022 -31.12.2022
	Interest income, effective interest method	429 816	180 181	1 079 475
	Other interest income	88 399	26 221	174 402
3	Total interest income	518 215	206 401	1 253 877
	Interest expense, effective interest method	-379 989	-120 265	-818 588
	Other interest expense	-28 076	-14 060	-66 602
3	Total interest costs	-408 064	-134 325	-885 190
3	Net interest income	110 151	72 076	368 687
	Commision income and income from banking services	6 465	5 717	29 483
	Commision cost and cost from banking services	-698	-524	-2 566
	Net charges and commission income	5 767	5 194	26 917
	Other fee income	15 342	15 118	58 105
16	Net gain/ (loss) financial instruments	-6 731	-10 107	-26 252
	Total other operating income	8 611	5 011	31 853
	Salaries and administrative costs	-22 130	-21 810	-87 701
	Depreciation	-993	-1 015	-4 010
	Other operating expenses	-47 945	-41 206	-154 945
14	Net loan losses	-336	63	-323
	Total operating expenses	-71 405	-63 969	-246 979
	Operating profit/loss before tax	53 124	18 312	180 478
	Tax ordinary income	37 006	24 298	-14 474
	Profit/loss for the period	90 129	42 610	166 004
	Estimate difference, pension obligation and assets	1 389	18 113	11 094
	Tax on actuarial gains and losses	-347	-4 528	-2 774
	Items that will not be reclassified to profit and loss	1 042	13 585	8 321
	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	1 042	13 585	8 321
	Comprehensive income for the period	91 171	56 195	174 324

Balance sheetKLP Banken Group

NOTES	NOK THOUSANDS	31.03.2023	31.03.2022	31.12.2022
	ASSETS
5	Claims on central banks	73 395	67 275	72 960
5	Loans to credit institutions	718 248	1 094 116	1 320 087
4,5	Loans to customers	42 716 903	40 609 817	42 375 461
5,6,13	Fixed-income securities	5 664 666	6 051 162	6 564 627
5,6	Shareholdings	1 187	1 187	1 187
5,6,8	Financial derivatives	147 104	87 724	139 153
	Deferred tax assets	1 405	5 723	0
	Intangible assets	15 099	16 475	15 624
17	Right-of-use assets	15 898	17 768	16 365
	Fixed assets	436	436	436
10	Other assets	19 083	2 329	4 816
	Total assets	49 373 425	47 954 012	50 510 716
	LIABILITIES AND OWNERS EQUITY
	LIABILITIES
5,7	Debt securities issued	31 998 903	31 862 183	33 484 932
5	Deposits and borrowings from the public	14 136 225	13 372 222	13 778 881
5,6,8	Financial derivatives	21 228	17 111	25 939
	Deferred tax liabilities	0	0	40 343
17	Lease liabilities	16 359	17 938	16 761
11	Other liabilities	141 425	88 465	143 180
11	Provision for accrued costs and liabilities	51 240	47 755	54 215
	Total liabilities	46 365 379	45 405 675	47 544 250
	EQUITY
	Share capital	1 140 000	1 065 000	1 140 000
	Share premium	1 050 000	825 000	1 050 000
	Other owners' eqyity	726 874	602 142	776 466
	Profit for the period	91 171	56 195	0
	Total equity	3 008 046	2 548 337	2 966 466
	Total liabilities and equity	49 373 425	47 954 012	50 510 716

Statement of changes in equityKLP Banken Group

2023 NOK THOUSANDS	Share capital	Share premium	Other equity	Total owners’ equity
Equity 1 January 2023	1 140 000	1 050 000	776 466	2 966 466
Profit for the period	0	0	90 129	90 129
Other comprehensive income	0	0	1 042	1 042
Total comprehensive income for the period	0	0	91 171	91 171
Group contribution received during the period	0	0	159 535	159 535
Group contribution paid during the period	0	0	-209 126	-209 126
Total transactions with the owners	0	0	-49 591	-49 591
Equity 31 March 2023	1 140 000	1 050 000	818 046	3 008 046

2022 NOK THOUSANDS	Share capital	Share premium	Other equity	Total owners’ equity
Equity 1 January 2022	1 065 000	825 000	630 782	2 520 782
Profit for the period	0	0	42 610	42 610
Other comprehensive income	0	0	13 585	13 585
Total comprehensive income for the period	0	0	56 195	56 195
Group contribution received during the period	0	0	89 292	89 292
Group contribution paid during the period	0	0	-117 932	-117 932
Total transactions with the owners	0	0	-28 640	-28 640
Equity 31 March 2022	1 065 000	825 000	658 337	2 548 337

2022 NOK THOUSANDS	Share capital	Share premium	Other equity	Total owners’ equity
Equity 1 January 2022	1 065 000	825 000	630 782	2 520 782
Income for the year	0	0	166 004	166 004
Other comprehensive income	0	0	8 321	8 321
Comprehensive income for the year	0	0	174 324	174 324
Group contribution received during the period	0	0	89 292	89 292
Group contribution paid during the period	0	0	-117 932	-117 932
Owners' equity received during the period	75 000	225 000	0	300 000
Total transactions with the owners	75 000	225 000	-28 640	271 360
Equity 31 December 2022	1 140 000	1 050 000	776 466	2 966 466

Statement of cash flowKLP Banken Group

NOK THOUSANDS	Q1 2023	Q1 2022	01.01.2022 -31.12.2022
OPERATING ACTIVITIES
Payments received from customers – interest, commission and charges	390 000	162 360	984 166
Payments to customers – interest, commission and charges	-89 510	-27 179	-168 854
Disbursements on loans to customers and credit institutions	-4 197 974	-2 592 417	-15 659 148
Receipts on loans to customers	3 891 986	1 876 531	13 246 513
Net receipts on customer deposits banking	357 229	471 218	877 993
Disbursements on operations	-55 629	-25 839	-153 688
Payments to staff, pension schemes, employer's social security contribution etc.	-22 299	-21 042	-80 949
Interest investment accounts	10 707	3 144	31 284
Net receipts/disbursements from operating activities	28 840	69 998	156 254
Net cash flow from operating activities	313 349	-83 224	-766 429
INVESTMENT ACTIVITIES
Receipts on the sale of securities	2 301 748	998 521	4 783 697
Payments on the purchase of securities	-1 407 919	-1 056 761	-5 348 540
Receipts of interest from securities	57 876	16 866	101 691
Payments on the purchase of tangible fixed assets	0	-233	-974
Net cash flow from investment activities	951 705	-41 608	-464 127
FINANCING ACTIVITIES
Receipts on loans	1 000 000	1 500 000	7 150 000
Repayments and redemption of securities debt	0	-1 088 835	-5 808 000
Change in securities debt, own funds	-2 497 937	-454 000	118 142
Net payment of interest on loans	-291 088	-91 031	-580 002
Payment of lease liabilities	-402	-415	-1 563
Group contributions paid	-49 591	-28 640	-28 640
Change in owners' equity	0	0	300 000
Net cash flows from financing activities	-1 839 019	-162 921	1 149 938
Net cash flow during the period	-573 965	-287 754	-80 618
Cash and cash equivalents at the start of the period	1 340 377	1 420 995	1 420 995
Cash and cash equivalents at the end of the period	766 412	1 133 241	1 340 377
Net receipts/disbursements (-)	-573 965	-287 754	-80 618

Notes to the financial statementKLP Banken Group

Note 1 General information

KLP Banken AS was formed 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 Group. KLP Banken 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 2023 – 31 March 2023, 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 2022, please see the annual report for further information.

Note 3 Net interest income

NOK THOUSANDS	Q1 2023	Q1 2022	01.01.2022 -31.12.2022
Interest income on loans to customers	417 819	176 807	1 048 171
Interest income on loans to credit institutions	11 997	3 374	31 304
Total interest income, effective interest method	429 816	180 181	1 079 475
Interest income on bonds and certificates	57 698	18 746	120 291
Other interest income	30 701	7 475	54 110
Total other interest income	88 399	26 221	174 402
Total interest income	518 215	206 401	1 253 877
Interest expenses on deposits to KLP Banken	-85 100	-22 031	-149 986
Interest expenses on issued securities	-294 813	-98 151	-668 276
Interest expense lease liabilities	-76	-83	-326
Total interest expense, effective interest method	-379 989	-120 265	-818 588
Other interest expenses	-24 123	-9 333	-49 595
Interest expenses on deposits to customers	-3 953	-4 727	-17 007
Total other interest expense	-28 076	-14 060	-66 602
Total interest expense	-408 064	-134 325	-885 190
Net interest income	110 151	72 076	368 687

Note 4 Loans to customers

NOK THOUSANDS	31.03.2023	31.03.2022	31.12.2022
Principal on loans to customers	42 587 473	40 582 110	42 287 934
Credit portfolio	44 760	43 816	43 141
Overdraft current account	84	174	90
Write-downs step 1 and 2	-1 862	-1 299	-1 771
Write-downs step 3	-949	-1 599	-933
Loans to customers after write-downs	42 629 506	40 623 203	42 328 461
Accrued interest	178 572	73 535	145 049
Fair value hedging	-91 175	-86 920	-98 049
Loans to customers	42 716 903	40 609 817	42 375 461

Note 5 Categories of financial instruments

NOK THOUSANDS	31.03.2023		31.03.2022		31.12.2022
	Capitalized value	Fair value	Capitalized value	Fair value	Capitalized value	Fair value
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS
Fixed-income securities	5 664 666	5 664 666	6 051 162	6 051 162	6 564 627	6 564 627
Financial derivatives	147 104	147 104	87 724	87 724	139 153	139 153
Shares and holdings	1 187	1 187	1 187	1 187	1 187	1 187
Total financial assets at fair value through profit and loss	5 812 958	5 812 958	6 140 073	6 140 073	6 704 966	6 704 966
FINANCIAL ASSETS FAIR VALUE HEDGING
Loans to and receivables from customers	1 642 496	1 649 751	1 816 706	1 851 218	1 702 745	1 706 638
Total financial assets fair value hedging	1 642 496	1 649 751	1 816 706	1 851 218	1 702 745	1 706 638
FINANCIAL ASSETS AT AMORTIZED COST
Loans to and receivables from credit institutions	73 395	73 395	67 275	67 275	72 960	72 960
Loans to and receivables from central banks	718 248	718 248	1 094 116	1 094 116	1 320 087	1 320 087
Loans to and receivables from customers	41 074 407	41 074 407	38 793 111	38 758 515	40 672 715	40 672 715
Total financial assets at amortized cost	41 866 050	41 866 050	39 954 501	39 919 905	42 065 762	42 065 762
Total financial assets	49 321 504	49 328 759	47 911 280	47 911 196	50 473 474	50 477 367
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT AND LOSS
Financial derivatives	21 228	21 228	17 111	17 111	25 939	25 939
Total financial liabilities at fair value through profit and loss	21 228	21 228	17 111	17 111	25 939	25 939
FINANCIAL LIABILITIES FAIR VALUE HEDGING
Liabilities created on issuance of securities	1 747 747	1 750 746	489 379	494 163	1 728 703	1 745 090
Total financial liabilities fair value hedging	1 747 747	1 750 746	489 379	494 163	1 728 703	1 745 090
FINANCIAL LIABILITIES AT AMORTIZED COST
Liabilities created on issuance of securities	30 251 155	30 182 476	31 372 804	31 423 496	31 756 229	31 711 938
Deposits from customers	14 136 225	14 136 225	13 372 222	13 372 222	13 778 881	13 778 881
Total financial liabilities at amortized cost	44 387 380	44 318 701	44 745 026	44 795 718	45 535 109	45 490 818
Total financial liabilities	46 156 355	46 090 675	45 251 517	45 306 992	47 289 751	47 261 847

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.

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 14 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.

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.

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

31.03.2023 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	860 012	4 804 655	0	5 664 666
Shareholdings	0	0	1 187	1 187
Financial derivatives	0	147 104	0	147 104
Total assets at fair value	860 012	4 951 759	1 187	5 812 958
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)	0	21 228	0	21 228
Total financial liabilities at fair value	0	21 228	0	21 228

31.03.2022 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	723 418	5 327 743	0	6 051 162
Shareholdings	0	0	1 187	1 187
Financial derivatives	0	87 724	0	87 724
Total assets at fair value	723 418	5 415 467	1 187	6 140 073
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)	0	17 111	0	17 111
Total financial liabilities at fair value	0	17 111	0	17 111

31.12.2022 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	804 841	5 759 785	0	6 564 627
Shareholdings	0	0	1 187	1 187
Financial derivatives	0	139 153	0	139 153
Total assets at fair value	804 841	5 898 938	1 187	6 704 966
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)	0	25 939	0	25 939
Total financial liabilities at fair value	0	25 939	0	25 939

NOK THOUSANDS	31.03.2023	31.03.2022	31.12.2022
CHANGES IN LEVEL 3 UNLISTED SHARES
Opening balance	1 187	1 187	1 187
Additions/purchases of shares	0	0	0
Unrealized changes	0	0	0
Closing balance	1 187	1 187	1 187
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 Debt securities issued - stock exchange listed covered bonds and certificates

NOK THOUSANDS	31.03.2023	31.03.2022	31.12.2022
Bond debt, nominal amount	35 761 739	33 849 260	34 763 119
Adjustments	11 522	22 250	9 932
Accrued interest	150 642	52 674	143 881
Own holdings, nominal amount	-3 925 000	-2 062 000	-1 432 000
Total debt securities issued	31 998 903	31 862 183	33 484 932
Interest rate on borrowings through the issuance of securities at the reporting date:	3.66 %	1.50%	3.62 %
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 31.12.2022	Issued	Matured/ redeemed	Other adjustements	Balance sheet 31.03.2023
Changes in debt securities issued - stock exchange listed covered bonds and cerftificates
Bond debt, nominal amount	34 763 119	1 000 000	0	-1 380	35 761 739
Adjustments	9 932	0	0	1 590	11 522
Accrued interest	143 881	0	0	6 761	150 642
Own holdings, nominal amount	-1 432 000	0	-2 493 000	0	-3 925 000
Total debt securities issued	33 484 932	1 000 000	-2 493 000	6 970	31 998 903

Note 8 Financial assets and liabilities subject to net settlement

31.03.2023 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	147 104	0	147 104	-21 228	0	125 876
Total	147 104	0	147 104	-21 228	0	125 876
LIABILITIES
Financial derivatives	21 228	0	21 228	-21 228	-32	0
Total	21 228	0	21 228	-21 228	-32	0

31.03.2022 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	87 724	0	87 724	-17 111	0	70 613
Total	87 724	0	87 724	-17 111	0	70 613
LIABILITIES
Financial derivatives	17 111	0	17 111	-17 111	-1 704	0
Total	17 111	0	17 111	-17 111	-1 704	0

31.12.2022 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	139 153	0	139 153	-25 939	0	113 214
Total	139 153	0	139 153	-25 939	0	113 214
LIABILITIES
Financial derivatives	25 939	0	25 939	-25 939	-1 724	0
Total	25 939	0	25 939	-25 939	-1 724	0

The purpose of the note is to show the potential effect of netting agreements at the KLP Banken Group. The note shows derivative positions in the financial position statement.

Note 9 Transactions with related parties

NOK THOUSANDS	Q1 2023	Q1 2022	01.01.2022 -31.12.2022
KLP, fees lending management	15 313	15 118	57 951
KLP Skadeforsikring AS, fees	29	0	155
KLP Kapitalforvaltning AS, fees for services provided	0	0	-180
KLP, rent	-850	-620	-2 755
KLP Skipsbygget AS, rent	-543	-434	-1 867
KLP Bassengtomten AS, rent parking	-24	-22	-90
KLP Eiendomsdrift AS, cost office buildings	-175	-242	-532
KLP, pension premium	-3 410	-3 582	-14 485
KLP, staff services (at cost)	-20 006	-19 155	-71 410
KLP Group companies, subsidised interest employee loans	3 814	3 117	14 120

NOK THOUSANDS	31.03.2023	31.03.2022	31.12.2022
BALANCES
KLP, net internal accounts	-4 924	-6 116	-6
KLP, loan settlement	-7 440	-4 215	-28 988
KLP Group companies, net other internal accounts	1 207	1 053	1 252

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 10 Other assets

NOK THOUSANDS	31.03.2023	31.03.2022	31.12.2022
Intercompany receivables	2 494	2 200	2 569
Short-term receivable securities trading	598	0	0
Miscellaneous receivables	0	0	2
Prepaid expenses	15 991	129	2 245
Total other assets	19 083	2 329	4 816

Note 11 Other liabilities and provision for accrued costs

NOK THOUSANDS	31.03.2023	31.03.2022	31.12.2022
Creditors	4 100	895	1 742
Intercompany payables	13 651	11 478	30 311
Short-term balances with credit institutions	112 400	62 700	108 100
Other liabilities	11 274	13 392	3 026
Total other liabilities	141 425	88 465	143 180
Withholding tax	1 787	1 741	2 886
Social security contributions	1 875	1 800	2 425
Capital activity tax	674	659	869
Holiday pay	8 095	7 920	6 708
Pension obligations	32 550	20 923	32 092
VAT	0	61	28
Provisioned costs	6 257	14 651	9 206
Total accrued costs and liabilities	51 240	47 755	54 215

Note 12 Capital adequacy

NOK THOUSANDS	31.03.2023	31.03.2022	31.12.2022
Share capital and share premium fund	2 190 000	1 890 000	2 190 000
Other owners' equity	726 874	602 142	776 466
Total owners' equity	2 916 875	2 492 142	2 966 466
Adjustments due to requirements for proper valuation	-5 665	-6 051	-6 565
Deduction goodwill and other intangible assets	-15 099	-16 475	-15 624
Deferred tax asset	-1 405	-5 723	0
Core capital/Tier 1 capital	2 894 706	2 463 893	2 944 277
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)	2 894 706	2 463 893	2 944 277
Capital requirement	1 129 046	1 090 942	1 138 790
Surplus of own funds (Tier 1 and Tier 2 capital)	1 765 660	1 372 951	1 805 487
Estimate basis credit risk:
Institutions	170 507	235 184	298 953
Retail	551 389	280 638	501 314
Local and regional authorities (incl. municipalities/county administations)	3 954 270	3 640 816	3 963 118
Investments with mortgage security in real estate	8 181 407	8 041 900	8 168 815
Investments fallen due	44 939	47 029	46 208
Covered bonds	438 601	508 578	502 740
Other holdings	43 271	197 735	24 731
Calculation basis credit risk	13 384 385	12 951 880	13 505 877
Credit risk	1 070 751	1 036 150	1 080 470
Operating risk	58 035	53 416	58 035
Credit valuation adjustments (CVA)	260	1 376	284
Total capital requirement assets	1 129 046	1 090 942	1 138 790
Core capital adequacy ratio	20.5 %	18.1 %	20.7 %
Supplementary capital ratio	0.0 %	0.0 %	0.0 %
Capital adequacy ratio	20.5 %	18.1 %	20.7 %
Leverage ratio	5.8 %	5.1 %	5.7 %

CAPITAL REQUIREMENT PER 31.03.2023	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	2.5 %	0.0 %	2.5 %
Pilar 2-requirement	1.5 %	0.0 %	1.5 %
Current capital requirement incl. buffers	14.0 %	3.5 %	17.5 %
Capital requirement leverage ratio	3.0 %	0.0 %	3.0 %

Note 13 Fixed-income securities

NOK THOUSANDS	31.03.2023		31.03.2022		31.12.2022
	Acquisition cost	Market value	Acquisition cost	Market value	Acquisition cost	Market value
Certificates	188 259	191 816	523 201	523 241	693 949	697 059
Bonds	5 479 954	5 472 850	5 539 938	5 527 921	5 865 698	5 867 567
Total fixed-income securities	5 668 213	5 664 666	6 063 139	6 051 162	6 559 647	6 564 627
Fixed income securities are brought to account at market value, including accrued but not due interests.

Note 14 Loan loss provision

In the first quarter of 2023 the copmpanies has not made any adjustments in the expected loss models.

The total loan loss provisions in KLP Banken Group has increased by five percent.

Refer to Note 10 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 01.01.2023	2 390	2 090	998	5 478
Transfer to stage 1	370	-309	-61	0
Transfer to stage 2	-22	27	-4	0
Transfer to stage 3	-1	-78	79	0
Net changes	-344	696	88	440
New losses	109	2	2	113
Write-offs	-90	-79	-120	-289
Closing balance ECL 31.03.2023	2 413	2 349	981	5 742
Changes (01.01.2023 - 31.03.2023)	22	259	-16	264
This includes provisions for losses on loans and receivables - unused credit				2 931

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 01.01.2023	144	207	422	774
Transfer to stage 1	3	-3	0	0
Transfer to stage 2	-5	5	0	0
Transfer to stage 3	0	-34	34	0
Net changes	21	72	104	197
New losses	46	2	0	48
Write-offs	-15	-42	-24	-81
Closing balance ECL 31.03.2023	194	208	536	938
Changes (01.01.2023 - 31.03.2023)	50	1	114	165
This includes provisions for losses on loans and receivables - unused credit on mortgages				7

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 01.01.2023	184	0	0	184
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	9	0	0	9
Write-offs	-5	0	0	-5
Closing balance ECL 31.03.2023	186	0	0	186
Changes (01.01.2023 - 31.03.2023)	2	0	0	2

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 01.01.2023	2 040	1 883	516	4 440
Transfer to stage 1	366	-306	-61	0
Transfer to stage 2	-17	21	-4	0
Transfer to stage 3	-1	-45	45	0
Net changes	-363	624	-17	245
New losses	53	0	0	53
Write-offs	-70	-37	-95	-202
Closing balance ECL 31.03.2023	2 009	2 140	386	4 535
Changes (01.01.2023 - 31.03.2023)	-31	257	-131	96
This includes provisions for losses on loans and receivables - unused credit on credit card				2 923

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 01.01.2023	21	0	0	21
Transfer to stage 1	0	0	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	0	0	0	0
New losses	2	0	0	2
Write-offs	-1	0	0	-1
Closing balance ECL 31.03.2023	22	0	0	22
Changes (01.01.2023 - 31.03.2023)	1	0	0	1
This includes provisions for losses on loans and receivables - unused credit on senior loans				1

Expected credit loss (ECL) loans to customers – overdrafts deposit 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 01.01.2023	0	0	60	60
Transfer to stage 1	0	0	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	0	0	0	0
New losses	0	0	2	2
Write-offs	0	0	-1	-1
Closing balance ECL 31.03.2023	0	0	61	61
Changes (01.01.2023 - 31.03.2023)	0	0	1	1

Book value of loans and receivables from 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 01.01.2023	41 943 196	489 280	43 654	42 476 129
Transfer to stage 1	69 930	-69 743	-187	0
Transfer to stage 2	-195 355	195 360	-5	0
Transfer to stage 3	-5 628	-4 179	9 807	0
Net changes	-334 167	975	-55	-333 247
New losses	3 813 146	12 521	2 198	3 827 865
Write-offs	-3 080 396	-69 725	-9 805	-3 159 926
Lending 31.03.2023	42 210 726	554 489	45 607	42 810 822

Book value of loans and receivables from 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 01.01.2023	20 906 667	485 896	41 976	21 434 538
Transfer to stage 1	69 023	-69 023	0	0
Transfer to stage 2	-194 067	194 067	0	0
Transfer to stage 3	-5 530	-4 021	9 551	0
Net change	-202 301	1 244	137	-200 920
New lending	2 790 652	12 521	2 195	2 805 369
Write-offs	-2 551 497	-69 674	-9 588	-2 630 760
Lending 31.03.2023	20 812 947	551 009	44 271	21 408 227

Book value of loans 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 01.01.2023	19 215 331	0	0	19 215 331
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	-157 533	0	0	-157 533
New lending	892 125	0	0	892 125
Write-offs	-474 491	0	0	-474 491
Lending 31.03.2023	19 475 432	0	0	19 475 432

Book value of loans 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 01.01.2023	38 554	3 384	1 594	43 532
Transfer to stage 1	907	-720	-187	0
Transfer to stage 2	-1 288	1 293	-5	0
Transfer to stage 3	-96	-158	254	0
Net change	1 895	-269	-190	1 437
New lending	664	0	0	664
Write-offs	-219	-51	-215	-484
Lending 31.03.2023	40 418	3 479	1 251	45 148

Book value of loans to 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 01.01.2023	1 782 407	0	0	1 782 407
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	23 740	0	0	23 740
New lending	129 638	0	0	129 638
Write-offs	-54 144	0	0	-54 144
Lending 31.03.2023	1 881 641	0	0	1 881 641

Book value of loans to receivables from customers – overdraft deposit 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 01.01.2023	239	0	84	322
Transfer to stage 1	0	0	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	-3	0	3	0
Net change	32	0	-3	29
New lending	67	0	3	69
Write-offs	-45	0	-2	-47
Lending 31.03.2023	289	0	85	374

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 01.01.2023	1 339 781	54 926	231	1 394 938
Transfer to stage 1	8 297	-8 270	-27	0
Transfer to stage 2	-12 435	12 445	-10	0
Transfer to stage 3	-15	0	16	0
Net change	8 515	144	24	8 683
New lending	51 460	176	0	51 636
Write-offs	-44 019	-2 429	-121	-46 569
Lending 31.03.2023	1 351 583	56 992	113	1 408 688

Losses recognised in the profit and loss account consist of:

NOK THOUSANDS	Q1 2023	Q1 2022	01.01.2022 -31.12.2022
Change in loss provisions in stage 1, 2 and 3	-546	623	-276
Established losses	0	-707	-815
Recovery for previously established losses	210	147	768
Total losses in the income statement	-336	63	-323

Note 15 Contingent liabilites

NOK THOUSANDS	31.03.2023	31.03.2022	31.12.2022
Credit facilities for lending not utilized	1 155 321	1 016 359	885 395
Credit facilities issued credit card	253 367	257 536	259 010
Loan promise	997 905	1 826 723	1 170 419
Total contingent liabilities	2 406 594	3 100 619	2 314 823

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 16 Net gain/(loss) on financial instruments

NOK THOUSANDS	Q1 2023	Q1 2022	01.01.2022 -31.12.2022
Net gain/(loss) on fixed-income securities	-5 117	-9 988	-18 704
Net gain/(loss) financial derivatives and realized amortization linked to lending	-8	206	270
Net gain/(loss) financial derivatives and realized repurchase of own debt	-2 671	-1 463	-12 335
Net accrual of over/under rates borrowings and securities	1 380	1 380	5 521
Other financial income and expenses	-315	-242	-1 004
Total net gain/(loss) on financial instruments	-6 731	-10 107	-26 252

Note 17 Leases

NOK THOUSANDS	31.03.2023	31.03.2022	31.12.2022
	Property
RIGHT-OF-USE ASSETS
Opening balance 01.01.	16 365	18 236	18 236
Depreciation	-468	-468	-1 870
Closing balance	15 898	17 768	16 365
LEASE LIABILITIES
Opening balance 01.01.	16 761	18 323	18 323
Repayments	-402	-386	-1 563
Closing balance	16 359	17 938	16 761

NOK THOUSANDS	Q1 2023	Q1 2022	01.01.2022 -31.12.2022
	Property
Interest expense lease liabilities	76	83	326
Interest expense lease liabilities	76	83	326

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 18 Pension obligations - own employees

NOK THOUSANDS	31.03.2023	31.03.2022	31.12.2022
Capitalized net liability	32 092	36 693	36 693
Pension costs taken to profit/loss	3 410	3 582	14 307
Finance costs taken to profit/loss	315	242	1 004
Actuarial gains and losses incl. social security contributions	-1 389	-18 113	-11 094
Premiums/supplement paid-in including admin	-1 879	-1 480	-8 818
Capitalized net liability	32 550	20 923	32 092

ASSUMPTIONS	31.03.2023	31.03.2022	31.12.2022
Discount rate	3.00%	2.70%	3.00%
Salary growth	3.50%	2.75%	3.50%
The National Insurance basic amount (G)	3.25%	2.50%	3.25%
Pension increases	2.60%	1.75%	2.60%
Social security contribution	14.10%	14.10%	14.10%
Capital activity tax	5.00%	5.00%	5.00%

The effect of changes in the assumptions is a reduction of the obligation by NOK 1.4 million as of 31.03.2023. The change is recognized in comprehensive income.

Quarterly earnings trend

NOK MILLIONS	Q1 2023	Q4 2022	Q3 2022	Q2 2022	Q1 2022
Interest income	518.2	474.7	320.2	252.5	206.4
Interest expense	-408.1	-364.2	-221.0	-165.6	-134.3
Net interest income	110.2	110.5	99.2	86.9	72.1
Commision income and income from banking services	6.5	7.7	8.1	7.9	5.7
Commision cost and cost from banking services	-0.7	-0.7	-0.7	-0.6	-0.5
Net charges and commission income	5.8	7.1	7.4	7.2	5.2
Other fee income	15.3	15.2	12.7	15.1	15.1
Net gain/(loss) financial instruments	-6.7	16.6	-6.9	-25.8	-10.1
Total other operating income	8.6	31.7	5.8	-10.7	5.0
Salaries and administrative costs	-22.1	-25.5	-18.1	-22.3	-21.8
Depreciation	-1.0	-1.0	-1.0	-1.0	-1.0
Other operating expenses	-47.9	-39.4	-38.1	-36.2	-41.2
Net loan losses	-0.3	-0.4	-0.2	0.2	0.1
Total operating expenses	-71.4	-66.3	-57.4	-59.3	-64.0
Operating profit/loss before tax	53.1	83.0	55.0	24.2	18.3
Tax ordinary income	37.0	-19.7	-13.1	-6.0	24.3
Profit/loss for the period	90.1	63.3	41.9	18.2	42.6
Other comprehensive income	1.4	7.8	0.5	-15.3	18.1
Tax on other comprehensive income	-0.3	-2.0	-0.1	3.8	-4.5
Other comprehensive income for the period	1.0	5.9	0.3	-11.5	13.6
Comprehensive income for the period	91.2	69.2	42.2	6.7	56.2

Key figures – accumulated

NOK MILLIONS	Q1 2023	Q4 2022	Q3 2022	Q2 2022	Q1 2022
Pre-tax income	53.1	180.5	97.5	42.5	18.3
Net interest income	110.2	368.7	258.2	159.0	72.1
Other operating income	21.1	85.0	62.8	42.7	20.3
Other operating cost and depreciation	-71.4	-247.0	-180.7	-123.3	-64.0
Net gain/(loss) financial instruments	-6.7	-26.3	-42.8	-35.9	-10.1
Deposits	14 136.2	13 778.9	13 606.8	13 464.9	13 372.2
Lending customers	23 332.8	23 258.4	23 368.6	23 041.8	22 635.4
Lending with public sector guarantee	19 384.1	19 117.1	18 717.6	18 321.1	17 974.4
Non-performing loans	45.6	43.7	42.8	46.4	45.6
Total liabilities created on issuance of securities	31 998.9	33 484.9	32 613.2	32 443.5	31 862.2
Other borrowing	0.0	0.0	0.0	0.0	0.0
Total assets	49 373.4	50 510.7	49 369.5	48 703.7	47 954.0
Average total assets	49 942.1	48 996.3	48 425.7	48 092.8	47 717.9
Equity	3 008.0	2 966.5	2 897.3	2 555.1	2 548.3
Interest net	0.22 %	0.75 %	0.53 %	0.33 %	0.15 %
Profit/loss from ordinary operation before taxes	0.11 %	0.37 %	0.20 %	0.09 %	0.04 %
Return on equity	7.16 %	7.16 %	5.15 %	3.37 %	2.91 %
Capital adequacy ratio	20.5 %	20.7 %	19.7 %	17.7 %	18.1 %
Liquidity coverage ratio (LCR)	435 %	567 %	472 %	425 %	242 %

Contact information

KLP BANKEN AS

Beddingen 8
7042 Trondheim

Org. number: 993 821 837

Visitors adress, Trondheim:
Beddingen 8

Visitors adress, Oslo:
Dronning Eufemias gate 10

Klp.no/bank

Phone: +47 55 54 85 00

klpbanken@klp.no

Interim Financial Statements Q1 2023KLP Banken Group