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
Phone: +47 55 54 85 00