Q1 Interim report 2025

KLP Kommunekreditt ASQ1 2025

Interim Financial Statements 1/2025

Main features quarter end:

Increased lending volume
Reduced net interest income
No realized loan losses

Objective

The company is established to finance KLP Banken’s loans to municipalities, county municipalities, and companies performing public assignments. Loans to companies must be guaranteed by municipalities or county municipalities under the Local Government Act. Guarantees must be of the ordinary surety type and cover both principal and interests. The lending business is mainly financed by the issuance of covered bonds.

KLP Kommunekreditt AS is a wholly owned credit institution of KLP Banken AS. KLP Banken AS is owned by Kommunal Landspensjonskasse mutual insurance company (KLP).

Income statement

The operating profit before tax for the first quarter was NOK 24.2 (26.6) million. The change in results is mainly due to reduced net interest income.

Net interest income in the first quarter was NOK 25.8 (29.1) million. Compared to last year, the company had a higher average loan volume. However, loan margins have on average been lower than in the same period last year.

Net P&L effects of financial instruments in the first quarter were NOK 3.2 (2.8) million. This mainly includes value changes in liquid investments and costs associated with the repurchase of bond issues. Realized and unrealized value changes in the company's liquid investments have so far in 2025 resulted in an effect of NOK 3.2 (2.9) million. Restructuring of the borrowing portfolio is done regularly to adjust the average maturity. This can result in both losses and gains. Accounting losses due to the repurchase of own debt amount to NOK 0.0 (-0.1) million per first quarter.

Operating expenses in the first quarter were NOK -4.8 (-5.2) million. The company has not had any loan losses and has very low loss provisions.

Lending/total assets

The company’s loans to customers as of March 31, 2025, were NOK 19.4 (18.7) billion. In the first quarter, net loan growth was NOK 0.7 billion (3.9 percent). Borrowers are municipalities, county municipalities, and companies with municipal guarantees. Total assets amounted NOK 23.7 (20.8) billion.

Liquid investments

The collateral associated with loan financing is subject to strict requirements. In addition to loans to the public sector, it consists of securities and deposits in other banks. The securities consist of certificates and bonds with very high security, mainly covered bonds. As of March 31, 2025, the company's interest-bearing securities had a market value of NOK 3.5 (1.5) billion.

Borrowing

The company's financing consists of covered bonds (OMF) and loans from KLP Banken AS. The company had NOK 1.6 (0.6) billion in intra-group debt at the end of the quarter. Outstanding OMF debt was NOK 21.0 (19.2) billion. No new covered bonds have been issued so far in 2025. Net repurchases and sales of own holdings from previous issues amounted to NOK 0.0 (0.2) billion in the first quarter. All OMF issuances have an Aaa rating from Moody's.

Risk and capital adequacy

KLP Kommunekreditt AS has established a risk management framework to ensure that risks are identified, analyzed, and managed through guidelines, limits, routines, and instructions. The company shall have a cautious risk profile, and earnings shall mainly result from lending and borrowing activities as well as liquidity management. This means that the company shall have low market risk. Interest rate risk arising from lending and borrowing activities is reduced using derivatives. The company shall have sufficient long-term financing within established limits. The credit risk in the company is very low, and loans are limited to those with municipal risk. The company's liquidity is placed in banks with high credit-quality requirements and in securities in accordance with board-approved credit lines.

Core capital according to capital adequacy rules at the end of the first quarter of 2025 was NOK 1,008 (948) million. Loans to municipalities and county municipalities are risk-weighted at 20 percent according to government capital adequacy regulations. KLP Kommunekreditt AS has a core capital ratio and capital adequacy ratio of 21.6 (22.8) percent as of the first quarter-end. The minimum requirement for total capital adequacy is 17.5 percent. The leverage ratio was 4.2 (4.6) percent. The requirement here is 3.0 percent.

Oslo, 6 May 2025

The Board of Directors of
KLP Kommunekreditt AS

AAGE E. SCHAANNING
Chair

JANICKE E. FALKENBERG

INGER HEGNA

JONAS V. KÅRSTAD

CARL STEINAR LOUS
Managing Director

Income statementKLP Kommunekreditt AS

NOTE	NOK THOUSANDS	Q1 2025	Q1 2024	2024
	Interest income, effective interest method	245 872	249 655	984 871
	Other interest income	82 549	55 972	269 668
3	Total interest income	328 421	305 628	1 254 539
	Interest expense, effective interest method	-268 720	-245 660	-1 017 952
	Other interest expenses	-33 912	-30 886	-128 028
3	Total interest costs	-302 632	-276 546	-1 145 980
3	Net interest income	25 788	29 082	108 559
17	Net gain/(loss) on financial instruments	3 227	2 780	-10 448
	Total net gain/(loss) on financial instruments	3 227	2 780	-10 448
	Other operating expenses	-4 849	-5 236	-21 157
18	Net loan losses	-7	2	3
	Total operating expenses	-4 856	-5 234	-21 155
	Operating profit/loss before tax	24 160	26 628	76 956
	Tax ordinary income	-985	-876	2 997
	Profit for the period	23 175	25 751	79 953
	Other income and expenses	0	0	0
	Comprehensive income for the period	23 175	25 751	79 953

BalanceKLP Kommunekreditt AS

NOTE	NOK THOUSANDS	31.03.2025	31.03.2024	31.12.2024
	ASSETS
5	Loans to credit institutions	628 008	429 141	705 779
4,5	Loans to customers	19 419 248	18 735 127	18 687 981
5,6,15	Fixed-income securities	3 532 536	1 537 968	3 587 455
5,6	Financial derivatives	75 634	109 167	83 757
12	Other assets	13 485	4 934	2 025
	Total assets	23 668 910	20 816 337	23 066 996
	LIABILITIES AND OWNERS EQUITY
	LIABILITIES
5,9	Debt to credit institutions	1 552 932	551 210	951 824
5,7	Debt securities issued	20 985 677	19 162 805	20 976 533
5,6	Financial derivatives	20 317	24 262	38 057
	Deferred tax liabilities	1 304	1 695	18 625
13	Other liabilities	73 589	101 329	52 720
	Total liabilities	22 633 819	19 841 301	22 037 759
	EQUITY
	Share capital	391 500	391 500	391 500
	Share premium	363 500	363 500	363 500
	Other accrued equity	256 917	194 284	274 237
	Unallocated profit/loss	23 175	25 751	0
	Total owners' equity	1 035 091	975 036	1 029 237
	Total liabilities and equity	23 668 910	20 816 337	23 066 996

Statement of changes in equityKLP Kommunekreditt AS

2025 NOK THOUSANDS	Share capital	Share premium	Other accrued equity	Total owners' equity
Equity 1 January 2025	391 500	363 500	274 237	1 029 237
Profit for the period	0	0	23 175	23 175
Other income and expenses	0	0	0	0
Total comprehensive income for the period	0	0	23 175	23 175
Group contribution received	0	0	61 410	61 410
Group contribution made	0	0	-78 731	-78 731
Total transactions with the owners	0	0	-17 321	-17 321
Equity 31 March 2025	391 500	363 500	280 091	1 035 091

2024 NOK THOUSANDS	Share capital	Share premium	Other accrued equity	Total owners' equity
Equity 1 January 2024	391 500	363 500	214 212	969 212
Profit for the period	0	0	25 751	25 751
Other income and expenses	0	0	0	0
Total comprehensive income for the period	0	0	25 751	25 751
Group contribution received	0	0	70 651	70 651
Group contribution made	0	0	-90 578	-90 578
Total transactions with the owners	0	0	-19 927	-19 927
Equity 31 March 2024	391 500	363 500	220 036	975 036

2024 NOK THOUSANDS	Share capital	Share premium	Other accrued equity	Total owners' equity
Equity 1 January 2024	391 500	363 500	214 212	969 212
Income for the year	0	0	79 953	79 953
Other income and expenses	0	0	0	0
Total comprehensive income for the period	0	0	79 953	79 953
Group contribution received	0	0	70 651	70 651
Group contribution made	0	0	-90 578	-90 578
Total transactions with the owners	0	0	-19 927	-19 927
Equity 31 December 2024	391 500	363 500	274 237	1 029 237

Statement of cash flowKLP Kommunekreditt AS

NOK THOUSANDS	Q1 2025	Q1 2024	2024
OPERATIONAL ACTIVITIES
Payments received from customers - interest	215 406	237 594	978 918
Payments made on issuance of loans to customers	-752 078	-101 000	-2 062 280
Receipts related to repayment and redemption of loans to customers	48 580	374 794	2 393 715
Receipts on loans from credit institutions	0	0	6 250 000
Repayments and redemption of securities debt	-2 114 000	0	-5 000 000
Change in securities debt, own funds	2 099 534	-224 263	333 063
Net payment of interest on loans credit institions	-246 985	-227 998	-951 937
Receipts in internal funding	800 000	0	1 500 000
Disbursements in internal funding	-200 000	-150 000	-1 250 000
Net payment of interest on internal funding	-12 472	-7 297	-33 070
Payments on the purchase of securities	-163 003	-259 540	-3 520 132
Receipts on sale of securities	215 000	224 641	1 449 349
Receipts of interest from securities	43 620	18 241	101 362
Disbursements on operations	-6 744	-8 220	-21 719
Net receipts/disbursements from operating activities	1 767	21 237	-12 032
Interest from credit institutions	3 814	3 229	23 675
Net cash flow from operating activities	-67 561	-98 582	178 912
INVESTMENT ACTIVITIES
Net cash flow from investment activities	0	0	0
FINANCING ACTIVITIES
Payment on group contribution	-17 321	-19 927	-19 927
Net cash flows from financing activities	-17 321	-19 927	-19 927
Net cash flow during the period	-84 882	-118 510	158 985
Cash and cash equivalents at the start of the period	694 341	535 356	535 356
Cash and cash equivalents at the end of the period	609 459	416 847	694 341
Net receipts/disbursements	-84 882	-118 510	158 985
Liquidity holdings comprise:
Deposits with and receivables from banks with no agreed term	609 459	416 847	694 341
Total liquidity holdings at the end of the reporting period	609 459	416 847	694 341
Total interest received	262 840	259 064	1 103 956
Total interest paid	-259 457	-235 296	-985 007

Notes to the financial statementKLP Kommunekreditt AS

Note 1 General information

KLP Kommunekreditt AS was formed on 25August 2009. The company is a credit enterprise that provides or acquires public sector loans that are guaranteed by the Norwegian municipalities. Borrowers provide surety covering both repayments and interest.

The object of the Company is primarily to finance activities by issuing covered bonds with security in public sector guarantees loans. Parts of these loans are listed on Oslo Børs (Stock Exchange).

KLP Kommunekreditt AS is registered and domiciled in Norway. It's head office is at Beddingen 8 in Trondheim, and the company has a branch office in Dronning Eufemiasgate 10 in 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 Kommunekreditt AS for the period 1 January 2025 – 31 March 2025.

The financial statements for KLP Kommunekreditt 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".

The interim Financial Statements has not been audited.

Other accounting principles and calculations are the same in the interim financial statement as in the annual report for 2024 please see the annual report for further information.

Note 3 Net interest income

NOK THOUSANDS	Q1 2025	Q1 2024	2024
Interest income on loans to customers	240 088	245 095	961 196
Interest income on loans to credit institutions	5 784	4 560	23 675
Total interest income, effective interest method	245 872	249 655	984 871
Interest income on fixed-income securities	43 420	19 277	116 937
Other interest income	39 129	36 695	152 731
Total other interest income	82 549	55 972	269 668
Total interest income	328 421	305 628	1 254 539
Interest expenses on debt from KLP Banken AS	-13 581	-6 937	-33 323
Interest expenses on issued securities	-255 139	-238 723	-984 629
Total interest expenses, effective interest method	-268 720	-245 660	-1 017 952
Other interest expenses	-33 912	-30 886	-128 028
Total other interest expenses	-33 912	-30 886	-128 028
Total interest expenses	-302 632	-276 546	-1 145 980
Net interest income	25 788	29 082	108 559

Note 4 Loans to customers

NOK THOUSANDS	31.03.2025	31.03.2024	31.12.2024
Principal on lending	19 293 982	18 633 701	18 594 965
Write-downs	-184	-178	-177
Accrued interest	199 859	200 401	175 177
Fair value hedging	-74 409	-98 797	-81 984
Loans to and receivables from customers	19 419 248	18 735 127	18 687 981

All lending comprises loans to, or loans guaranteed by, Norwegian municipalities and county administrations, including loans to local government enterprises and intermunicipal (public sector lending). Guarantees are of the ordinary surety type covering both repayments and interest.

Note 5 Categories of financial instruments

NOK THOUSANDS	31.03.2025		31.03.2024		31.12.2024
	Capitalized value	Fair value	Capitalized value	Fair value	Capitalized value	Fair value
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS
Fixed-income securities	3 532 536	3 532 536	1 537 968	1 537 968	3 587 455	3 587 455
Financial derivatives	75 634	75 634	109 167	109 167	83 757	83 757
Total financial assets at fair value through profit and loss	3 608 169	3 608 169	1 647 134	1 647 134	3 671 212	3 671 212
FINANCIAL ASSETS FAIR VALUE HEDGING AT AMORTIZED COST
Lending to Norwegian municipalities	1 869 275	1 882 353	1 723 865	1 734 164	1 921 836	1 936 594
Total financial assets fair value hedging at amortized cost	1 869 275	1 882 353	1 723 865	1 734 164	1 921 836	1 936 594
FINANCIAL ASSETS AT AMORTIZED COST
Loans to and receivables from credit institutions	628 008	628 008	429 141	429 141	705 779	705 779
Lending to Norwegian municipalities	17 549 974	17 549 974	17 011 262	17 011 262	16 766 145	16 766 145
Total financial assets at amortized cost	18 177 982	18 177 982	17 440 404	17 440 404	17 471 924	17 471 924
Total financial assets	23 655 426	23 668 504	20 811 403	20 821 701	23 064 972	23 079 730
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT AND LOSS
Financial derivatives	20 317	20 317	24 262	24 262	38 057	38 057
Total financial liabilities at fair value through profit and loss	20 317	20 317	24 262	24 262	38 057	38 057
FINANCIAL LIABILITIES FAIR VALUE AT HEDGING AMORTIZED COST
Covered bonds issued	1 696 318	1 711 260	1 701 411	1 709 072	1 679 351	1 691 807
Total financial liabilities fair value hedging amortized cost	1 696 318	1 711 260	1 701 411	1 709 072	1 679 351	1 691 807
FINANCIAL LIABILITIES AT AMORTIZED COST
Liabilities to credit institutions	1 552 932	1 552 932	551 210	551 210	951 824	951 824
Covered bonds issued	19 289 358	19 344 295	17 461 394	17 514 544	19 297 182	19 343 808
Total financial liabilities at amortized cost	20 842 290	20 897 227	18 012 604	18 065 755	20 249 006	20 295 632
Total financial liabilities	22 558 926	22 628 805	19 738 277	19 799 089	21 966 414	22 025 497

Fair value shall be a representative price based on what a corresponding asset or liability would have been traded for on the balance sheet day. 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 to the leaste extent possible 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.

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.

Fair value of loans to Norwegian local administrations

Fair value of lending without fixed interest rates is considered virtually the same as book value since the contract terms are continuously 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. This is valued in Level 2 in the valuation hierarchy, cf. Note 6.

Fair value of loans to and receivables from credit institutions

All receivables from credit institutions (bank deposits) are at variable interest rates. 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. This is valued in Level 2 in the valuation hierarchy, cf. Note 6.

Fair value of liabilities to credit institutions

These transactions are valued using a valuation model, including relevant credit spread adjustments obtained from the market. This is valued in Level 2 in the valuation hierarchy, cf. Note 6.

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. This is valued in Level 2 in the valuation hierarchy, cf. Note 6.

Note 6 Fair value hierarchy

31.03.2025 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	128 825	3 403 710	0	3 532 536
Financial derivatives	0	75 634	0	75 634
Total assets at fair value	128 825	3 479 344	0	3 608 169
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)	0	20 317	0	20 317
Total financial liabilities at fair value	0	20 317	0	20 317

31.03.2024 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	99 096	1 438 872	0	1 537 968
Financial derivatives	0	109 167	0	109 167
Total assets at fair value	99 096	1 548 038	0	1 647 134
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)	0	24 262	0	24 262
Total financial liabilities at fair value	0	24 262	0	24 262

31.12.2024 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	99 103	3 488 353	0	3 587 455
Financial derivatives	0	83 757	0	83 757
Total assets at fair value	99 103	3 572 109	0	3 671 212
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)	0	38 057	0	38 057
Total financial liabilities at fair value	0	38 057	0	38 057

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. 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	31.03.2025	31.03.2024	31.12.2024
Bond debt, nominal amount	20 836 000	21 700 000	22 950 000
Adjustments	-42 112	-37 680	-42 953
Accrued interest	191 789	158 484	183 486
Own holdings, nominal amount	0	-2 658 000	-2 114 000
Total debt securities issued	20 985 677	19 162 805	20 976 533
Interest rate on borrowings through the issuance of securities on the reporting date:	4.97%	5.08%	5.10%
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 31.12.2024	Matured/ redeemed	Other adjustments	Balance sheet 31.03.2025
Bond debt, nominal amount	22 950 000	-2 114 000	0	20 836 000
Adjustments	-42 953	0	841	-42 112
Accrued interest	183 486	0	8 303	191 789
Own holdings, nominal amount	-2 114 000	2 114 000	0	0
Total debt securities issued	20 976 533	0	9 144	20 985 677

Note 8 Over-collateralisation

NOK THOUSANDS	31.03.2025	31.03.2024	31.12.2024
SECURITY POOL
Loans to customers	19 439 732	18 739 365	18 715 951
Financial derivatives (net)	55 332	84 932	45 704
Additional collateral ¹	3 725 232	4 287 499	5 886 869
Total security pool	23 220 296	23 111 796	24 648 525
Outstanding covered bonds incl. own funds and premium/discount	21 055 555	21 897 990	23 158 712
Coverage of the security pool	110.3%	105.5%	106.4 %
¹ Additional collateral includes loans and receivables from credit institutions and bonds and certificates. 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

The interest rate is calculated as a weighted average of the act/360 basis.
31.03.2025 NOK THOUSANDS
	Due date	Nominal	Accrued interest	Book value
Debt to KLP Banken AS	15.12.2026	400 000	757	400 757
Debt to KLP Banken AS	15.12.2026	550 000	1 040	551 040
Debt to KLP Banken AS	15.12.2026	200 000	378	200 378
Debt to KLP Banken AS	15.12.2026	400 000	757	400 757
Total liabilities to credit institutions		1 550 000	2 932	1 552 932
Interest rate on debt to credit institutions at the reporting date:				4.54 %

The interest rate is calculated as a weighted average of the act/360 basis.
31.03.2024 NOK THOUSANDS
	Due date	Nominal	Accrued interest	Book value
Debt to KLP Banken AS	15.12.2025	550 000	1 210	551 210
Total liabilities to credit institutions		550 000	1 210	551 210
Interest rate on debt to credit institutions at the reporting date:				4.66 %

The interest rate is calculated as a weighted average of the act/360 basis.
31.12.2024 NOK THOUSANDS
	Due date	Nominal	Accrued interest	Book value
Debt to KLP Banken AS	15.12.2026	550 000	1 146	551 146
Debt to KLP Banken AS	15.12.2026	400 000	677	400 677
Total liabilities to credit institutions		950 000	1 824	951 824
Interest rate on debt to credit institutions at the reporting date:				4.69 %

Note 10 Financial assets and liabilities subject to net settlement

ASSETS
31.03.2025 NOK THOUSANDS		Related sums that are not presented net
	Gross financial assets/ liabilites	Financial instruments	Security in cash	Net recognised value
Financial derivatives	75 634	-20 317	0	55 317
Total	75 634	-20 317	0	55 317
LIABILITIES
Financial derivatives	20 317	-20 317	0	0
Total	20 317	-20 317	0	0

ASSETS
31.03.2024 NOK THOUSANDS		Related sums that are not presented net
	Gross financial assets/ liabilites	Financial instruments	Security in cash	Net recognised value
Financial derivatives	109 167	-24 262	0	84 905
Total	109 167	-24 262	0	84 905
LIABILITIES
Financial derivatives	24 262	-24 262	0	0
Total	24 262	-24 262	0	0

ASSETS
31.12.2024 NOK THOUSANDS		Related sums that are not presented net
	Gross financial assets/ liabilites	Financial instruments	Security in cash	Net recognised value
Financial derivatives	83 757	-38 057	0	45 699
Total	83 757	-38 057	0	45 699
LIABILITIES
Financial derivatives	38 057	-38 057	0	0
Total	38 057	-38 057	0	0
The purpose of the note is to show the potential effect of netting agreements at the KLP Kommunekreditt AS. The note shows derivative positions in the financial statement.

Note 11 Transactions with related parties

TUSEN KRONER	31.03.2025	31.03.2024	31.12.2024
Interest incomes	2 563	2 561	10 499
Interest expenses	-13 581	-6 937	-33 323
Purchase of services	-3 683	-3 841	-12 991
Other receivables	10 959	2 564	1 571
Bank deposits	226 939	216 439	224 376
Borrowing	-1 552 932	-551 210	-951 824
Other debt	-1 237	-1 058	-1 134

All transactions are against KLP Banken AS.
There are no direct salary cost in KLP Kommunekreditt AS. Personnel costs (administrative services) are allocated from KLP Banken AS.

Transactions with related parties are carried out on 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 12 Other assets

NOK THOUSANDS	31.03.2025	31.03.2024	31.12.2024
Intercompany receivables	10 959	2 564	1 571
Prepaid expenses	1 901	2 369	0
Miscellaneous receivables	624	0	454
Total other assets	13 485	4 934	2 025

Note 13 Other liabilities and provision for accrued costs

NOK THOUSANDS	31.03.2025	31.03.2024	31.12.2024
Creditors	0	159	113
Intercompany payables	1 237	1 058	1 134
Short-term balances with credit institutions	53 200	79 000	46 513
Other liabilities	19 151	21 112	4 960
Total other liabilities	73 589	101 329	52 720

Note 14 Capital adequacy

NOK THOUSANDS	31.03.2025	31.03.2024	31.12.2024
Share capital and share premium fund	755 000	755 000	755 000
Other owners' equity	256 917	194 284	274 237
Total owners' equity	1 011 917	949 284	1 029 237
Adjustments due to requirements for proper valuation	-3 533	-1 538	-3 587
Core capital/Tier 1 capital	1 008 384	947 747	1 025 650
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)	1 008 384	947 747	1 025 650
Capital requirement	374 127	332 930	362 060
Surplus of own funds (Tier 1 and Tier 2 capital)	634 258	614 817	663 590
ESTIMATE BASIS CREDIT RISK:
Institutions	134 686	94 739	148 935
Local and regional authorities	4 056 473	3 780 803	3 890 649
Covered bonds	272 671	127 231	272 571
Other items	2 525	2 369	454
Calculation basis credit risk	4 466 356	4 005 143	4 312 609
Credit risk	357 308	320 411	345 009
Operating risk	15 314	12 335	15 314
Credit valuation adjustment (CVA)	1 504	183	1 737
Total capital requirement assets	374 127	332 930	362 060
Core capital adequacy ratio	21.6 %	22.8 %	22.7 %
Supplementary capital ratio	0.0 %	0.0 %	0.0 %
Capital adequacy ratio	21.6 %	22.8 %	22.7 %
Leverage ratio	4.2 %	4.6 %	4.5 %

CAPITAL REQUIREMENT PER 31.03.2025	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 incl. buffers	14.0 %	3.5 %	17.5 %
Capital requirement leverage ratio	3.0 %	0.0 %	3.0 %

Note 15 Fixed-income securities

NOK THOUSANDS	31.03.2025		31.03.2024		31.12.2024
	Acquisition cost	Market value	Acquisition cost	Market value	Acquisition cost	Market value
Certificates	128 625	128 825	98 946	99 096	98 925	99 103
Bonds	3 386 287	3 403 710	1 435 277	1 438 872	3 471 466	3 488 353
Total fixed-income securities	3 514 911	3 532 536	1 534 223	1 537 968	3 570 391	3 587 455
Fixed income securities are brought to account at market value, including accrued but not due interests.

Note 16 Contingent liabilites

NOK THOUSANDS	31.03.2025	31.03.2024	31.12.2024
Loan commitment	584 267	39 734	5 242
Total contingent liabilities	584 267	39 734	5 242

Note 17 Net gain/(loss) on financial instruments

NOK THOUSANDS	Q1 2025	Q1 2024	2024
Net gain/(loss) on fixed-income securities	3 227	2 915	-258
Net gain/(loss) financial derivatives and realized amortization linked to lending	0	0	-189
Net gain/(loss) financial derivatives and realized repurchase of own debt	0	-135	-10 001
Total net gain/(loss) on financial instruments	3 227	2 780	-10 448

Note 18 Loan loss provision

Changes in provisions for expected losses in first quarter of 2025 are related to changes in lending volume. No other changes have been made to the assumptions or input to the model for calculating loss provisions in the first quarter of 2025.

Refer to Note 8 and Note 2 in the annual report for more details of the model.

Expected credit loss (ECL) - loans to customers - public lending

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)	31.03.2025	31.03.2024	31.12.2024
	stage 1	stage 2	stage 3	Total stage 1-3	Total stage 1-3	Total stage 1-3
Opening balance ECL 01.01.	177	0	0	177	180	180
Transfers to stage 1	0	0	0	0	0	0
Transfers to stage 2	0	0	0	0	0	0
Transfers to stage 3	0	0	0	0	0	0
Net changes	-2	0	0	-2	-2	-11
New losses	10	0	0	10	1	24
Write-offs	-2	0	0	-2	-2	-16
Closing balance ECL	184	0	0	184	178	177
Changes in the period 01.01-31.03./31.12.	7	0	0	7	-2	-3

Book value of loans and receivables for customers - public lending

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)	31.03.2025	31.03.2024	31.12.2024
	stage 1	stage 2	stage 3	Total stage 1-3	Total stage 1-3	Total stage 1-3
Lending 01.01.	18 770 141	0	0	18 770 141	19 087 959	19 087 958
Transfers to stage 1	0	0	0	0	0	0
Transfers to stage 2	0	0	0	0	0	0
Transfers to stage 3	0	0	0	0	0	0
Net changes	-185 575	0	0	-185 575	-184 309	-1 167 223
New lending	1 069 721	0	0	1 069 721	101 773	2 529 768
Write-offs	-160 446	0	0	-160 446	-171 321	-1 680 362
Lending	19 493 841	0	0	19 493 841	18 834 102	18 770 141
Fair value hedging	-74 409	0	0	-74 409	18 834 102	18 770 141
Recognised loan loss provisions	-184	0	0	-184	-98 797	-81 984
Book value of loans to public lending	19 419 248	0	0	19 419 248	18 735 127	18 687 981

Quarterly earnings trend

NOK MILLIONS	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024
Interest income	328.4	333.7	309.8	305.5	305.6
Interest expense	-302.6	-307.8	-283.9	-277.7	-276.5
Net interest income	25.8	25.8	25.8	27.8	29.1
Net gain/(loss) financial instruments	3.2	-6.8	-1.5	-5.0	2.8
Total net gain/(loss) on financial instruments	3.2	-6.8	-1.5	-5.0	2.8
Other operating expenses	-4.8	-5.6	-6.1	-4.2	-5.2
Total operating expenses	-4.8	-5.6	-6.1	-4.2	-5.2
Operating profit/loss before tax	24.2	13.5	18.2	18.6	26.6
Tax ordinary income	-1.0	2.0	1.0	0.9	-0.9
Profit for the period	23.2	15.5	19.2	19.5	25.7

Key figures - accumulated

NOK MILLIONS	Q1 2025	Q4 2024	Q3 2024	Q2 2024	Q1 2024
Pre-tax income	24.2	77.0	63.5	45.3	26.6
Net interest income	25.8	108.6	82.7	56.9	29.1
Other operating income	0.0	0.0	0.0	0.0	0.0
Other operating cost	-4.8	-21.2	-15.6	-9.5	-5.2
Net gain/(loss) financial instruments	3.2	-10.4	-3.7	-2.2	2.8
Lending with public sector guarantee	19 419.2	18 688.0	18 005.9	18 310.8	18 735.1
Non-performing loans	0.0	0.0	0.0	0.0	0.0
Total liabilities created on issuance of securities	20 985.7	20 976.5	21 183.7	18 832.8	19 162.8
Other borrowing	1 552.9	951.8	551.1	751.4	551.2
Total assets	23 668.9	23 067.0	22 943.5	20 721.0	20 816.3
Average total assets	23 368.0	22 127.6	22 065.9	20 954.6	21 002.3
Equity	1 035.1	1029.2	1013.8	994.6	975.0
Interest net	0.11 %	0.49 %	0.37 %	0.27 %	0.14 %
Profit/loss from ordinary operation before taxes	0.10 %	0.35 %	0.29 %	0.22 %	0.13 %
Return on equity	9.39 %	7.94 %	8.74 %	9.34 %	10.99 %
Capital adequacy ratio	21.6 %	22.7 %	21.4 %	23.0 %	22.8 %
Liquidity coverage ratio (LCR)	368 %	1 113 %	860 %	851 %	975 %

Contact information

KLP KOMMUNEKREDITT AS

Beddingen 8, 7042 Trondheim
Organization no.: 912 719 634

VISITOR ADDRESS

Trondheim: Beddingen 8
Oslo: Dronning Eufemias gate 10

https://www.klp.no/en

Phone number: +47 55 54 85 00

klpkommunekreditt@klp.no

Q1 Interim report 2025KLP Kommunekreditt AS