KLP Boligkreditt ASQ1 2024
Interim Financial Statements 1/2024
Main features by first quarter end:
- Increased P&L
- Reduced lending volume
- No recognized losses on lending
Objective
The Company's purpose is to finance KLP Banken’s mortgage lending at preferable terms, mainly through the issuance of covered bonds.
KLP Boligkreditt AS is a wholly owned subsidiary of KLP Banken AS. The KLP Banken Group is owned by Kommunal Landspensjonskasse gjensidig forsikringsselskap (KLP).
Income statement
Pre-tax profit at the end of the fourth quarter was NOK 8.0 (5.3) million. The change in earnings is primarily due to increased net interest income as well as reduced negative profit effects from financial instruments.
Net interest and credit commission revenues in the first quarter were NOK 25.5 (24.1) million. The change is mainly due to increased interest rates and somewhat higher lending margins on average.
Net profit and loss effects on financial instruments in the quarter were NOK -0.4 (-2.6) million. This is mainly due to price effects on liquid placements as well as restructuring of borrowing. Realized and unrealized value changes in the liquidity portfolio have resulted in a profit effect of NOK 1.0 (-0.8) million.
Restructuring of the borrowing portfolio is done regularly to adjust the average maturity. This can result in both loss and gain. Accounting effects because of the buyback of own debt amount to a total of NOK -1.4 (-1.8) million so far this year.
Operating expenses for the first quarter amounted to NOK -17.1 (-16.2) million. The Company has not had any credit losses and have very low loan loss provisions.
Lending and total assets
The Company's loans to customers as of 31 March 2024 amounted to NOK 12.5 (12.8) billion. The Company has purchased loans from the parent company KLP Banken AS amounting to NOK 0.7 (1.5) billion during the quarter. Total assets were NOK 13.7 (13.8) billion.
Liquid investments
KLP Boligkreditt AS has strict rules for which assets may be included in the securities holdings. In addition to mortgage loans, the securities holdings consist of secure bonds as well as deposits in other banks. The securities consist of certificates and bonds of high credit quality, principally investments in covered bonds. As of 31 March 2024, the securities portfolio’s market value was NOK 0.8 (0.6) billion.
Borrowing
The company's borrowing consists of covered bonds (OMF) secured by a loan portfolio of mortgages as well as loans from KLP Banken AS. Outstanding intercompany debt amounted to NOK 1.4 (0.5) billion by quarter end. Outstanding covered bond debt was NOK 11.3 (12.5) billion. New covered bonds issued in the first quarter amounted to NOK 1.0 billion. Net repurchases of previous issues amounted to NOK 0.8 billion in the quarter. All covered bonds have achieved Aaa rating from Moody’s.
Risk and capital adequacy
KLP Boligkreditt AS has established a framework for risk management aimed at ensuring that risks are identified, analyzed and subject to management, using policies, limits, procedures, and instructions. The Company is to have a prudent risk profile and earnings are to be principally a result of the borrowing and lending activity as well as liquidity management. This means that the Company shall have low market risk. Interest risk arising within the borrowing and lending activity are reduced using derivatives. The Company must have sufficient long-term financing within set limits. The credit risk in the Company is low and the Company's lending is limited to loans with liens on housing property. Management of the Company's liquidity is conducted through investments in banks satisfying high credit quality requirements and in securities in accordance with board-approved credit lines.
At the end of the first quarter 2024, core capital according to the capital adequacy rules was NOK 1 027 (919) million. The core capital was increased by NOK 100 million in the first quarter. Mortgage loans are risk-weighted by 35 per cent in accordance with the authorities' capital adequacy regulations. KLP Boligkreditt AS had a core capital adequacy and capital adequacy ratio of 21.0 (19.2) percent at the end of the first quarter. The minimum statutory requirement is 17.5 per cent capital adequacy ratio. Leverage ratio was 7.5 (6.6) per cent. Here the minimum statutory requirement is 3.0 per cent.
Oslo, 8 May 2024 | ||
AAGE E. SCHAANNING | JANICKE E. FALKENBERG | |
Chair | ||
LILL STABELL | JONAS V. KÅRSTAD | |
CHRISTOPHER A. N. STEEN Managing Director |
Income statementKLP Boligkreditt AS
NOTE | NOK THOUSANDS | Q1 2024 | Q1 2023 | 01.01.2023 -31.12.2023 |
---|---|---|---|---|
Interest income, effective interest method | 175 078 | 128 727 | 591 812 | |
Other interest income | 7 774 | 10 162 | 31 295 | |
3 | Total interest income | 182 853 | 138 889 | 623 106 |
Interest expense, effective interest method | -157 355 | -114 821 | -542 313 | |
3 | Total interest expense | -157 355 | -114 821 | -542 313 |
3 | Net interest income | 25 498 | 24 069 | 80 793 |
15 | Net gain/(loss) on financial instruments | -355 | -2 584 | -3 733 |
Total net gain/(loss) on financial instruments | -355 | -2 584 | -3 733 | |
Other operating expenses | -17 079 | -16 173 | -62 162 | |
16 | Net loan losses | -67 | 24 | 3 |
Total operating expenses | -17 145 | -16 148 | -62 159 | |
Operating profit/loss before tax | 7 998 | 5 336 | 14 901 | |
Tax ordinary income | -709 | -1 174 | -3 278 | |
Profit for the period | 7 289 | 4 162 | 11 623 | |
Other comprehensive income for the period | 0 | 0 | 0 | |
Comprehensive income for the period | 7 289 | 4 162 | 11 623 |
BalanceKLP Boligkreditt AS
NOTE | NOK THOUSANDS | 31.03.2024 | 31.03.2023 | 31.12.2023 |
---|---|---|---|---|
ASSETS | ||||
5 | Loans to credit institutions | 355 141 | 392 414 | 469 974 |
4,5 | Loans to customers | 12 533 616 | 12 810 522 | 12 745 448 |
5,6,14 | Fixed-income securities | 809 039 | 631 977 | 516 406 |
11 | Other assets | 6 343 | 8 022 | 4 296 |
Total assets | 13 704 139 | 13 842 935 | 13 736 124 | |
LIABILITIES AND OWNERS EQUITY | ||||
LIABILITIES | ||||
5,9 | Debt to credit institutions | 1 377 185 | 449 903 | 1 686 316 |
5,7 | Debt securities issued | 11 279 035 | 12 458 598 | 11 105 128 |
Deferred tax liabilities | 3 335 | 4 259 | 7 537 | |
12 | Other liabilities | 9 731 | 5 916 | 5 424 |
12 | Provision for accrued costs and liabilities | 46 | 0 | 0 |
Total liabilities | 12 669 333 | 12 918 676 | 12 804 406 | |
EQUITY | ||||
Share capital | 430 000 | 380 000 | 380 000 | |
Share premium | 530 463 | 480 463 | 480 463 | |
Other owners' equity | 67 054 | 59 633 | 71 256 | |
Unallocated profit/loss | 7 289 | 4 162 | 0 | |
Total owners' equity | 1 034 806 | 924 258 | 931 719 | |
Total liabilities and equity | 13 704 139 | 13 842 935 | 13 736 124 |
Statement of changes in equityKLP Boligkreditt AS
2024 NOK THOUSANDS | Share capital | Share premium | Other equity | Total owners' equity |
---|---|---|---|---|
Equity 1 January 2024 | 380 000 | 480 463 | 71 256 | 931 719 |
Profit for the period | 0 | 0 | 7 289 | 7 289 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Total comprehensive income for the period | 0 | 0 | 7 289 | 7 289 |
Group contribution received | 0 | 0 | 14 898 | 14 898 |
Group contribution made | 0 | 0 | -19 100 | -19 100 |
Paid-up equity for the period | 50 000 | 50 000 | 0 | 100 000 |
Total transactions with the owners | 50 000 | 50 000 | -4 202 | 95 798 |
Equity 31 March 2024 | 430 000 | 530 463 | 74 343 | 1 034 806 |
2023 NOK THOUSANDS | Share capital | Share premium | Other equity | Total owners' equity |
---|---|---|---|---|
Equity 1 January 2023 | 380 000 | 480 463 | 59 633 | 920 096 |
Profit for the period | 0 | 0 | 4 162 | 4 162 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Total comprehensive income for the period | 0 | 0 | 4 162 | 4 162 |
Group contribution received | 0 | 0 | 0 | 0 |
Group contribution made | 0 | 0 | 0 | 0 |
Total transactions with the owners | 0 | 0 | 0 | 0 |
Equity 31 March 2023 | 380 000 | 480 463 | 63 795 | 924 258 |
2023 NOK THOUSANDS | Share capital | Share premium | Other equity | Total owners' equity |
---|---|---|---|---|
Equity 1 January 2023 | 380 000 | 480 463 | 59 633 | 920 096 |
Income for the year | 0 | 0 | 11 623 | 11 623 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Total comprehensive income for the period | 0 | 0 | 11 623 | 11 623 |
Group contribution received | 0 | 0 | 0 | 0 |
Group contribution made | 0 | 0 | 0 | 0 |
Total transactions with the owners | 0 | 0 | 0 | 0 |
Equity 31 December 2023 | 380 000 | 480 463 | 71 256 | 931 719 |
Statement of cash flowKLP Boligkreditt AS
NOK THOUSANDS | Q1 2024 | Q1 2023 | 01.01.2023 -31.12.2023 |
---|---|---|---|
OPERATING ACTIVITIES | |||
Payments received from customers - interest, commission & charges | 169 162 | 124 060 | 567 810 |
Disbursements on loans customers & credit institutions | -702 448 | -1 541 520 | -4 538 968 |
Receipts on loans customers & credit institutions | 913 710 | 1 025 988 | 4 098 045 |
Disbursements on operations | -18 487 | -17 837 | -61 722 |
Net receipts/disbursements from operating activities | 3 689 | 11 509 | 1 547 |
Net interest investment accounts | 4 803 | 2 557 | 14 873 |
Net cash flow from operating activities | 370 429 | -395 243 | 81 586 |
INVESTMENT ACTIVITIES | |||
Payments on the purchase of securities | -310 331 | -139 081 | -219 829 |
Receipts on sale of securities | 20 000 | 928 154 | 1 125 861 |
Receipts of interest from securities | 6 469 | 12 419 | 33 063 |
Net cash flow from investment activities | -283 861 | 801 492 | 939 094 |
FINANCING ACTIVITIES | |||
Receipts on loans from credit institutions | 1 000 000 | 1 000 000 | 1 000 000 |
Repayment and redemption of loans | 0 | 0 | -2 000 000 |
Change in securities debt, own funds | -827 780 | -1 177 245 | -548 349 |
Net payment of interest on loans | -143 732 | -111 764 | -500 708 |
Receipts in internal funding | 803 388 | 1 644 184 | 6 783 028 |
Repayment in internal funding | -1 111 763 | -1 718 389 | -5 623 737 |
Net payment of interest on internal funding | -14 051 | -3 458 | -23 558 |
Change in owners' equity | 100 000 | 0 | 0 |
Group contribution paid | -4 202 | 0 | 0 |
Net cash flows from financing activities | -198 141 | -366 672 | -913 325 |
Net cash flow during the period | -111 573 | 39 576 | 107 355 |
Cash and cash equivalents at the start of the period | 456 573 | 349 219 | 349 219 |
Cash and cash equivalents at the end of the period | 345 000 | 388 795 | 456 573 |
Net receipts/disbursements | -111 573 | 39 576 | 107 355 |
Notes to the accountsKLP Boligkreditt AS
Note 1 General information
KLP Boligkreditt AS was formed on 30 October 2013. The company is a housing credit enterprise, and finance the activity primary through issuing covered bonds (OMF).
KLP Boligkreditt AS is registered and domiciled in Norway. Its head office is at Beddingen 8 in Trondheim, with a branch office in Dronning Eufemiasgate 10, Oslo.
The company is a wholly owned subsidiary of KLP Banken AS which is in turn wholly owned by Kommunal Landspensjonskasse (KLP). KLP is a mutual insurance company.
Note 2 Accounting Principles
The interim report includes the interim Financial Statements of KLP Boligkreditt AS for the period 1 January 2024 – 31 March 2024, specifying the earnings trend in Q1. The interim Financial Statements has not been audited.
The financial statements for KLP Boligkreditt AS have been prepared in accordance with IFRS Accounting Standards®) as adopted by the EU with some additions that follow The Norwegian Accounting Act and the Regulations concerning annual accounts for banks, mortgage firms and finance companies (the Accounting Regulations). 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 2023, please see the annual report for further information.
Note 3 Net interest income
NOK THOUSANDS | Q1 2024 | Q1 2023 | 01.01.2023 -31.12.2023 |
---|---|---|---|
Interest income on loans to customers | 169 847 | 125 989 | 576 938 |
Interest income on loans to credit institutions | 5 232 | 2 737 | 14 873 |
Total interest income, effective interest method | 175 078 | 128 727 | 591 812 |
Interest income on bonds and certificates | 7 774 | 10 162 | 31 295 |
Total other interest income | 7 774 | 10 162 | 31 295 |
Total interest income | 182 853 | 138 889 | 623 106 |
Interest expenses on debt from KLP Banken AS | -13 296 | -3 110 | -26 129 |
Interest expenses on issued securities | -144 059 | -111 710 | -516 185 |
Total interest expenses, effective interest method | -157 355 | -114 821 | -542 313 |
Total interest expense | -157 355 | -114 821 | -542 313 |
Net interest income | 25 498 | 24 069 | 80 793 |
Note 4 Loans to customers
NOK THOUSANDS | 31.03.2024 | 31.03.2023 | 31.12.2023 |
---|---|---|---|
Loans to customers before write-downs | 12 504 785 | 12 789 486 | 12 717 235 |
Provisions and write-downs | -129 | -41 | -62 |
Loans to customers after write-downs | 12 504 656 | 12 789 445 | 12 717 173 |
Accrued interest | 28 960 | 21 077 | 28 276 |
Loans to customers | 12 533 616 | 12 810 522 | 12 745 448 |
Note 5 Categories of financial instruments
NOK THOUSANDS | 31.03.2024 | 31.03.2023 | 31.12.2023 | |||
---|---|---|---|---|---|---|
Capitalized value | Fair value | Capitalized value | Fair value | Capitalized value | Fair value | |
FINANCIAL ASSETS AT FAIR VALUE | ||||||
Fixed-income securities | 809 039 | 809 039 | 631 977 | 631 977 | 516 406 | 516 406 |
Total financial assets at fair value | 809 039 | 809 039 | 631 977 | 631 977 | 516 406 | 516 406 |
FINANCIAL ASSETS AT AMORTIZED COST | ||||||
Loans to and receivables from credit institutions | 355 141 | 355 141 | 392 414 | 392 414 | 469 974 | 469 974 |
Loans to and receivables from customers | 12 533 616 | 12 533 616 | 12 810 522 | 12 810 522 | 12 745 448 | 12 745 448 |
Total financial assets at amortized cost | 12 888 757 | 12 888 757 | 13 202 936 | 13 202 936 | 13 215 422 | 13 215 422 |
Total financial assets | 13 697 796 | 13 697 796 | 13 834 913 | 13 834 913 | 13 731 829 | 13 731 829 |
FINANCIAL LIABILITIES AT AMORTIZED COST | ||||||
Liabilities to credit institutions | 1 377 185 | 1 377 185 | 449 903 | 449 903 | 1 686 316 | 1 686 316 |
Covered bonds issued | 11 279 035 | 11 295 709 | 12 458 598 | 12 421 487 | 11 105 128 | 11 102 781 |
Total financial liabilities at amortized cost | 12 656 220 | 12 672 894 | 12 908 501 | 12 871 390 | 12 791 444 | 12 789 097 |
Total financial liabilities | 12 656 220 | 12 672 894 | 12 908 501 | 12 871 390 | 12 791 444 | 12 789 097 |
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.
Fixed-income securities - other than government
Norwegian fixed-income securities are generally priced based on rates from Nordic Bond Pricing. Securities not covered by Nordic Bond Pricing are priced theoretically. The theoretical price should be based on the discounted value of the security's future cash flows. Discounting is done using a swap curve adjusted for credit spread and liquidity spread. The credit spread should, to the extent possible, be based on a comparable bond from the same issuer. Liquidity spread is determined at the discretion of the evaluator.
Fair value of loans to retail costumers
Fair value of lending without fixed interest rates is considered virtually the same as book value since the contract terms are continuosly changed in step with market interest rates. Fair value of fixed rate loans is calculated by discounting contractual cash flows by the marked rate including a relevant risk margin on the reporting date.
Fair value of loans to and receivables from credit institutions
All receivables from credit institutions (bank deposits) are at variable interest rates. Fair value of these is considered virtually the same as book value since the contract terms are continuously changed in step with marked interest rates.
Fair value of liabilities to credit institutions
These transactions are valued using a valuation model, including relevant credit spread adjustments obtained from the market.
Liabilities created on issuance of covered bonds
Fair value in this category is determined on the basis of internal valuation models based on external observable data.
Note 6 Fair value hierarchy
31.03.2024 NOK THOUSANDS | Level 1 | Level 2 | Level 3 | Total |
---|---|---|---|---|
ASSETS BOOKED AT FAIR VALUE | ||||
Fixed-income securities | 19 815 | 789 224 | 0 | 809 039 |
Total assets at fair value | 19 815 | 789 224 | 0 | 809 039 |
31.03.2023 NOK THOUSANDS | Level 1 | Level 2 | Level 3 | Total |
---|---|---|---|---|
ASSETS BOOKED AT FAIR VALUE | ||||
Fixed-income securities | 9 936 | 622 041 | 0 | 631 977 |
Total assets at fair value | 9 936 | 622 041 | 0 | 631 977 |
31.12.2023 NOK THOUSANDS | Level 1 | Level 2 | Level 3 | Total |
---|---|---|---|---|
ASSETS BOOKED AT FAIR VALUE | ||||
Fixed-income securities | 19 815 | 496 592 | 0 | 516 406 |
Total assets at fair value | 19 815 | 496 592 | 0 | 516 406 |
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 not therefore 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. Financial assets measured at amortized cost comprise lending to and due to credit institutions, and retail customers. The stated fair value of these assets is determined on terms qualifying for level 2. Financial liabilities recognized at amortized cost consist of debt securities issued. 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 | 31.03.2024 | 31.03.2023 | 31.12.2023 |
---|---|---|---|
Bond debt, nominal amount | 13 000 000 | 14 000 000 | 12 000 000 |
Adjustments | -3 817 | -2 284 | -3 151 |
Accured interest | 54 852 | 37 882 | 54 278 |
Own holdings, nominal amount | -1 772 000 | -1 577 000 | -946 000 |
Total debt securities issued | 11 279 035 | 12 458 598 | 11 105 128 |
Interest rate on borrowings through the issuance of securities on the reporting date: | 5.07% | 3.74% | 5.07% |
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 31.12.2023 | Issued | Matured/ redeemed | Other adjustments | Balance sheet 31.03.2024 |
---|---|---|---|---|---|
Bond debt, nominal amount | 12 000 000 | 1 000 000 | 0 | 0 | 13 000 000 |
Adjustments | -3 151 | 0 | 0 | -667 | -3 817 |
Accured interest | 54 278 | 0 | 0 | 574 | 54 852 |
Own holdings, nominal amount | -946 000 | 0 | -826 000 | 0 | -1 772 000 |
Total debt securities issued | 11 105 128 | 1 000 000 | -826 000 | -93 | 11 279 035 |
Note 8 Over-collateralisation
NOK THOUSANDS | 31.03.2024 | 31.03.2023 | 31.12.2023 |
---|---|---|---|
SECURITY POOL | |||
Loans to customers ¹ | 12 509 428 | 12 798 648 | 12 689 403 |
Additional collateral ² | 2 838 745 | 2 533 520 | 1 833 583 |
Total security pool | 15 348 173 | 15 332 168 | 14 522 986 |
Outstanding covered bonds incl. own funds and premium/discount | 13 071 603 | 14 001 922 | 12 050 920 |
Coverage of the security pool | 117.4% | 109.5% | 120.5% |
¹ Excluding mortgage loans that do not qualify for security pool. | |||
² Additional collateral includes loans to and receivables from credit institutions and bonds and certificates. Liquid assets used in the LCR liquidity reserve are not included in additional collateral. |
Section 11-7 of the Regulations on Financial Institutions lays down a requirement for over-collateralisation by at least 2 percent of the value of the outstanding covered bonds.
Note 9 Liabilities to credit institutions
31.03.2024 NOK THOUSANDS | ||||
---|---|---|---|---|
Due date | Nominal | Accrued interest | Book value | |
Debt to KLP Banken AS | 15.12.2025 | 1 050 000 | 1 934 | 1 051 934 |
Debt to KLP Banken AS | 15.12.2025 | 100 000 | 130 | 100 130 |
Debt to KLP Banken AS | 15.12.2025 | 224 951 | 171 | 225 121 |
Total liabilities to credit institutions | 1 374 951 | 2 234 | 1 377 185 | |
Interest rate on debt to credit institutions at the reporting date: | 3.90% | |||
The interest rate is calculated as a weighted average of the act/360 basis. |
31.03.2023 NOK THOUSANDS | ||||
---|---|---|---|---|
Due date | Nominal | Accrued interest | Book value | |
Debt to KLP Banken AS | 16.12.2024 | 204 036 | 40 | 204 076 |
Debt to KLP Banken AS | 16.12.2024 | 145 795 | 19 | 145 814 |
Debt to KLP Banken AS | 16.12.2024 | 100 000 | 13 | 100 013 |
Total liabilities to credit institutions | 449 831 | 72 | 449 903 | |
Interest rate on debt to credit institutions at the reporting date: | 2.35 % |
31.12.2023 NOK THOUSANDS | ||||
---|---|---|---|---|
Due date | Nominal | Accrued interest | Book value | |
Debt to KLP Banken AS | 15.12.2025 | 1 537 488 | 2 817 | 1 540 306 |
Debt to KLP Banken AS | 15.12.2025 | 145 838 | 173 | 146 011 |
Total liabilities to credit institutions | 1 683 326 | 2 990 | 1 686 316 | |
Interest rate on debt to credit institutions at the reporting date: | 3.88 % |
Note 10 Transactions with related parties
NOK THOUSANDS | Q1 2024 | Q1 2023 | 01.01.2023 -31.12.2023 |
---|---|---|---|
KLP Banken AS, interest on borrowing | -13 296 | -3 110 | -26 129 |
KLP Banken AS, interest on deposits | 2 561 | 1 707 | 8 646 |
KLP Banken AS, administrative services (at cost) | -15 781 | -14 944 | -56 169 |
KLP Kapitalforvaltning AS, fees for services provided | 0 | 0 | -20 |
KLP Group companies, subsidised interest employee loans | 2 055 | 2 132 | 9 988 |
KLP Banken AS, purchase of loans | -702 448 | -1 541 520 | -4 538 968 |
NOK THOUSANDS | 31.03.2024 | 31.03.2023 | 31.12.2023 |
---|---|---|---|
BALANCES | |||
KLP Banken AS, borrowing Group current liabilities | -1 377 185 | -449 903 | -1 686 316 |
KLP Banken AS, deposit | 216 436 | 206 936 | 213 875 |
KLP Banken AS, net internal liabilities | 2 966 | 4 140 | 1 778 |
Net outstanding accounts to: | |||
KLP Banken AS | -4 446 | -4 742 | -5 316 |
KLP | 1 289 | 1 287 | 1 608 |
KLP Group companies, net other internal accounts | 654 | 708 | 890 |
There are no direct salary cost in KLP Boligkreditt AS. Personnel costs (administrative services) are allocated from KLP Banken AS.
Transactions with related parties are carried out at general market terms, with the exception of the Company's share of common functions, which is allocated at cost. Allocation is based on actual use. All internal receivables are settled as they arise.
Note 11 Other assets
NOK THOUSANDS | 31.03.2024 | 31.03.2023 | 31.12.2023 |
---|---|---|---|
Intercompany receivables | 4 909 | 6 135 | 4 296 |
Prepaid expenses | 1 433 | 1 887 | 0 |
Total other assets | 6 343 | 8 022 | 4 296 |
Note 12 Other liabilities and provision for accrued costs
NOK THOUSANDS | 31.03.2024 | 31.03.2023 | 31.12.2023 |
---|---|---|---|
Creditors | 374 | 0 | 88 |
Intercompany payables | 4 446 | 4 742 | 5 336 |
Other liabilities | 4 911 | 1 174 | 0 |
Total other liabilities | 9 731 | 5 916 | 5 424 |
VAT | 46 | 0 | 0 |
Total accrued costs and liabilities | 46 | 0 | 0 |
Note 13 Capital adequacy
NOK THOUSANDS | 31.03.2024 | 31.03.2023 | 31.12.2023 |
---|---|---|---|
Share capital and share premium fund | 960 463 | 860 463 | 860 463 |
Other owners' equity | 67 054 | 59 633 | 71 256 |
Total owners' equity | 1 027 518 | 920 097 | 931 719 |
Adjustments due to requirements for proper valuation | -809 | -632 | -516 |
Core capital/Tier 1 capital | 1 026 709 | 919 465 | 931 203 |
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) | 1 026 709 | 919 465 | 931 203 |
Capital requirement | 391 022 | 382 531 | 397 569 |
Surplus of own funds (Tier 1 and Tier 2 capital) | 635 687 | 536 934 | 533 634 |
Estimate basis credit risk: | |||
Institutions | 71 879 | 78 483 | 94 672 |
Retail | 371 331 | 0 | 401 637 |
Investments with mortgage security in real estate | 4 213 037 | 4 483 683 | 4 273 476 |
Investments fallen due | 1 258 | 0 | 0 |
Covered bonds | 78 922 | 62 204 | 49 659 |
Other holdings | 2 089 | 8 022 | 910 |
Calculation basis credit risk | 4 738 517 | 4 632 391 | 4 820 354 |
Credit risk | 379 081 | 370 591 | 385 628 |
Operating risk | 11 940 | 11 940 | 11 940 |
Total capital requirement assets | 391 022 | 382 531 | 397 569 |
Core capital adequacy ratio | 21.0 % | 19.2 % | 18.7 % |
Supplementary capital ratio | 0.0 % | 0.0 % | 0.0 % |
Capital adequacy ratio | 21.0 % | 19.2 % | 18.7 % |
Leverage ratio | 7.5 % | 6.6 % | 6.8 % |
CAPITAL REQUIREMENT PER 31.03.2024 | 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 | 4.5 % | 0.0 % | 4.5 % |
Counter-cyclical capital buffer | 2.5 % | 0.0 % | 2.5 % |
Current capital requirement including buffers | 14.0 % | 3.5 % | 17.5 % |
Capital requirement leverage ratio | 3.0 % | 0.0 % | 3.0 % |
Note 14 Fixed-income securities
NOK THOUSANDS | 31.03.2024 | 31.03.2023 | 31.12.2023 | |||
---|---|---|---|---|---|---|
Acquisition cost | Market value | Acquisition cost | Market value | Acquisition cost | Market value | |
Certificates | 19 789 | 19 819 | 0 | 0 | 0 | 0 |
Bonds | 783 888 | 789 219 | 629 613 | 631 977 | 513 138 | 516 406 |
Total fixed-income securities | 803 677 | 809 039 | 629 613 | 631 977 | 513 138 | 516 406 |
Fixed income securities are brought to account at market value, including accrued
but not due interests.
Note 15 Net gain/(loss) on financial instruments
NOK THOUSANDS | Q1 2024 | Q1 2023 | 01.01.2023 -31.12.2023 |
---|---|---|---|
Net gain/(loss) on fixed-income securities | 1 005 | -754 | 179 |
Net gain/(loss) financial derivatives and realized repurchase of own debt | -1 360 | -1 830 | -3 912 |
Total net gain/(loss) financial instruments | -355 | -2 584 | -3 733 |
Note 16 Loan loss provision
In the first quarter of 2024 the company has updated the LGD model. The update involves, among other things, an increase in transaction costs and haircut in connection with forced sales. This leads to increase the provision for losses.
The total loan loss provisions have thus doubled since fourth quarter 2023. Although the percentage increase is large, the amounts involved are relatively small in relation to the total lending volume. The increase is NOK 67 000.
Refer to Note 8 and Note 2 in the annual report for more details of the model.
NOK THOUSANDS | 12-month ECL stage 1 | Lifetime ECL not credit impaired stage 2 | Lifetime ECL credit impaired stage 3 | Total |
---|---|---|---|---|
EXPECTED CREDIT LOSS (ECL) - LOANS TO CUSTOMERS - MORTGAGE | ||||
Opening balance ECL 01.01.2024 | 41 | 22 | 0 | 63 |
Transfers to stage 1 | 1 | -1 | 0 | 0 |
Transfers to stage 2 | -6 | 6 | 0 | 0 |
Transfers to stage 3 | 0 | 0 | 0 | 0 |
Net changes | 23 | 45 | 0 | 69 |
New losses | 1 | 0 | 0 | 1 |
Write-offs | -2 | 0 | 0 | -3 |
Closing balance ECL 31.03.2024 | 58 | 71 | 0 | 129 |
Changes (01.01.2024-31.03.2024) | 17 | 49 | 0 | 67 |
NOK THOUSANDS | 12-month ECL stage 1 | Lifetime ECL not credit impaired stage 2 | Lifetime ECL credit impaired stage 3 | Total |
---|---|---|---|---|
VALUE OF LENDING AND RECEIVABLES FOR CUSTOMERS RECOGNISED IN THE BALANCE SHEET - MORTGAGE | ||||
Lending 01.01.2024 | 12 434 702 | 310 809 | 0 | 12 745 511 |
Transfers to stage 1 | 50 866 | -50 866 | 0 | 0 |
Transfers to stage 2 | -100 214 | 100 214 | 0 | 0 |
Transfers to stage 3 | -1 259 | 0 | 1 259 | 0 |
Net changes | -167 030 | -1 967 | 0 | -168 997 |
New lending | 665 961 | 0 | 0 | 665 961 |
Write-offs | -691 656 | -17 074 | 0 | -708 729 |
Lending 31.03.2024 | 12 191 370 | 341 116 | 1 259 | 12 533 746 |
Quarterly earnings trend
NOK MILLIONS | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 |
---|---|---|---|---|---|
Interest income | 182.9 | 179.0 | 161.3 | 143.9 | 138.9 |
Interest expense | -157.4 | -157.3 | -146.2 | -124.0 | -114.8 |
Net interest income | 25.5 | 21.7 | 15.2 | 19.8 | 24.1 |
Net gain/ (loss) on financial instruments | -0.4 | 0.1 | -0.8 | -0.5 | -2.6 |
Total net gain/(loss) on financial instruments | -0.4 | 0.1 | -0.8 | -0.5 | -2.6 |
Other operating expenses | -17.1 | -15.2 | -16.4 | -14.4 | -16.1 |
Total operating expenses | -17.1 | -15.2 | -16.4 | -14.4 | -16.1 |
Operating profit/loss before tax | 8.0 | 6.6 | -2.0 | 5.0 | 5.3 |
Tax ordinary income | -0.7 | -1.5 | 0.4 | -1.1 | -1.2 |
Profit for the period | 7.3 | 5.2 | -1.6 | 3.9 | 4.2 |
Key figures accumulated
NOK MILLIONS | Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 |
---|---|---|---|---|---|
Pre-tax income | 8.0 | 14.9 | 8.3 | 10.3 | 5.3 |
Net interest income | 25.5 | 80.8 | 59.0 | 43.9 | 24.1 |
Other operating expenses | -17.1 | -62.2 | -46.9 | -30.5 | -16.1 |
Net gain/ (loss) financial instruments | -0.4 | -3.7 | -3.8 | -3.1 | -2.6 |
Housing mortgage lending | 12 533.6 | 12 745.4 | 12 627.9 | 12 597.5 | 12 810.5 |
Non-performing loans | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Total liabilities created on issuance of securities | 11 279.0 | 11 105.1 | 11 239.0 | 12 040.4 | 12 458.6 |
Other borrowing | 1 377.2 | 1 686.3 | 1 568.8 | 619.5 | 449.9 |
Total assets | 13 704.1 | 13 736.1 | 13 745.7 | 13 599.6 | 13 842.9 |
Average total assets | 13 720.1 | 13 911.8 | 13 916.6 | 13 843.5 | 13 965.2 |
Equity | 1 034.8 | 931.7 | 926.6 | 928.1 | 924.3 |
Interest net | 0.19 % | 0.58 % | 0.42 % | 0.32 % | 0.17 % |
Profit/loss from ordinary operation before taxes | 0.06 % | 0.11 % | 0.06 % | 0.07 % | 0.04 % |
Return on equity | 3.17 % | 1.62 % | 1.20 % | 2.24 % | 2.32 % |
Capital adequacy ratio | 21.0 % | 18.7 % | 19.4 % | 19.6 % | 19.2 % |
Liquidity coverange ratio (LCR) | 744 % | 697 % | 753 % | 1 004 % | 239 % |
Contact information
KLP BOLIGKREDITT AS
Beddingen 8, 7042 Trondheim
Organizational number.: 912 719 634
VISITING ADRESS
Trondheim: Beddingen 8
Oslo: Dronning Eufemias gate 10
Phone number: +47 55 54 85 00