Slight decline in lending volume during the quarter
Lower net interest income year‑on‑year
No realised loan losses
Objective
The Company's objective is financing KLP Banken's loans to municipalities, county administrations and enterprises carrying out public sector assignments. Loans to companies must be guaranteed by municipalities, county administrations or the central government under the Norwegian Local Government Act. Guarantees are to be of the ordinary surety type covering both repayments and interest. The lending business is principally funded issuing covered bonds (OMF).
KLP Kommunekreditt AS is a wholly owned subsidiary of KLP Banken AS. The KLP Banken AS is owned by Kommunal Landspensjonskasse (KLP).
Income statement
Operating profit before tax for the first quarter amounted to NOK 14.8 (24.2) million. Compared with the same period last year, there was a decline in net interest income and net results from financial instruments. In addition, operating expenses increased.
Net interest income for the first quarter amounted to NOK 20.9 (25.8) million. Lower lending margins on the loan portfolio resulted in reduced net interest income compared with the previous year, despite solid lending volumes.
Net gains and losses on financial instruments for the first quarter amounted to NOK -0.2 (3.2) million. This mainly includes costs related to repurchases of issued debt and value changes in liquidity placements. Realised and unrealised value changes in the Company’s liquidity placements had a positive profit effect of NOK 1.1 (3.2) million in the first quarter.
Operating expenses amounted to NOK -6.0 (-4.8) million for the first quarter. The Company has had no loan losses and maintains very low loss provisions.
Lending and total assets
Customer lending as of 31 March 2026 amounted to NOK 21.9 (19.4) billion. So far this year, customer lending has declined by NOK 0.6 billion. Borrowers consist of municipalities, county authorities and entities with municipal guarantees.
Total assets amounted to NOK 25.1 (23.7) billion at the end of the quarter.
Liquid investments
The cover pool related to the Company’s funding is subject to strict requirements. In addition to lending to the public sector, it consists of secure securities and bank deposits. The securities portfolio comprises certificates and bonds with very high credit quality, primarily covered bonds.
As of 31 March 2026, the market value of the Company’s interest‑bearing securities portfolio was NOK 2.3 (3.5) billion.
Funding
The Company’s funding consists of covered bonds (OMF) and loans from KLP Banken AS. Intragroup funding amounted to NOK 0.5 (1.6) billion at the end of the quarter. Outstanding covered bond debt totalled NOK 23.4 (21.0) billion.
During the first quarter, NOK 1.5 billion was issued in existing covered bond programmes, while no new covered bonds were issued. Net repurchases or sales from the Company’s own holdings of previous issuances amounted to NOK -1.0 (0.0) billion in the first quarter. All covered bond issuances are rated Aaa by Moody’s.
Risk management and capital adequacy
KLP Kommunekreditt AS has established a risk management framework to ensure that risks are identified, analysed and managed through policies, limits, procedures and instructions. The Company maintains a conservative risk profile, with earnings primarily generated through lending and funding activities and liquidity management. This implies low market risk.
Interest rate risk arising from lending and funding activities is mitigated through the use of derivatives. The Company is required to maintain adequate long‑term funding within established limits. Credit risk is very low, as lending is limited to exposures with municipal risk. Liquidity is placed with banks meeting high credit quality requirements and in securities in accordance with Board‑approved credit guidelines.
Common equity Tier 1 (CET1) capital under the capital adequacy rules amounted to NOK 1,064 (1,008) million at the end of the first quarter of 2026. Loans to municipalities and county authorities carry a regulatory risk weight of 20 percent. The CET1 ratio and total capital adequacy ratio were 21.1 (21.6) percent at the end of the quarter. The minimum requirement for total capital adequacy is 17.5 percent. The leverage ratio was 4.2 (4.2) percent, compared with a minimum requirement of 3.0 percent.
Outlook
The presence of KLP Kommunekreditt AS together with KLP in the market for public sector lending contributes to competition and thereby enables the public sector to access long‑term financing on favourable terms. Aggregate growth over recent years indicates a solid market position.
High credit quality in the loan portfolios is expected to support favourable funding terms. Regulatory requirements for capital and liquidity applicable to banks and financial institutions necessitate sustainable earnings to ensure ongoing compliance with such requirements.
The market for lending to the municipal sector continues to grow, and a significant proportion of new borrowing is financed through the securities market rather than directly by financial institutions. KLP Kommunekreditt AS is well capitalised and benefits from its position as a stable, long‑term lender in a low‑risk market. The extent to which the Company can finance lending growth on terms that support sufficient profitability will largely depend on the general development of the financial markets.
In connection with the Norwegian state budget for 2026, the Parliament requested the government to assess whether loans to municipalities should carry the same regulatory risk weight as loans to the central government (0 percent). To date, the government has not followed up this request.
Norwegian municipalities have developed a comprehensive range of public services. Increased life expectancy, demographic developments, income growth and climate risk are expected to result in substantial investment levels in the public sector in the years ahead. The Norwegian Association of Local and Regional Authorities (KS) has indicated in its annual budget survey that investment levels and new borrowing in 2026 are expected to remain broadly in line with the previous year. Demand for loans financing climate adaptation projects is also expected to increase going forward.
The Board assumes that there will continue to be a need for significant long‑term and stable financing beyond what the securities market alone can provide to public sector borrowers. KLP Banken’s expertise in municipal finance shall, irrespective of balance sheet size, be utilised in KLP’s asset management mandate. Together, KLP Kommunekreditt AS and KLP will remain key providers of lending for public sector investment purposes.
Oslo, 7 May 2026
AAGE E. SCHAANNING Chair
JANICKE E. FALKENBERG
INGER HEGNA
ROAR W. BAKKEN
CARL STEINAR LOUS Managing Director
Income statementKLP Kommunekreditt AS
NOTE
NOK THOUSAND
Q1 2026
Q1 2025
2025
Interest income, effective interest method
265 910
245 872
1 031 363
Other interest income
63 412
82 549
261 267
3
Total interest income
329 322
328 421
1 292 631
Interest expense, effective interest method
-262 310
-268 720
-1 054 810
Other interest expenses
-46 066
-33 912
-147 163
3
Total interest costs
-308 376
-302 632
-1 201 973
3
Net interest income
20 946
25 788
90 658
15
Net gain/(loss) on financial instruments
-204
3 227
7 787
Total net gain/(loss) on financial instruments
-204
3 227
7 787
Other operating expenses
-5 980
-4 849
-20 661
13
Net loan losses
5
-7
-36
Total operating expenses
-5 975
-4 856
-20 697
Operating profit/loss before tax
14 767
24 160
77 748
Tax ordinary income
2 539
-985
216
Profit for the period
17 305
23 175
77 964
Other income and expenses
0
0
0
Comprehensive income for the period
17 305
23 175
77 964
BalanceKLP Kommunekreditt AS
NOTE
NOK THOUSAND
31.03.2026
31.03.2025
31.12.2025
ASSETS
5
Loans to and receivables from credit institutions
834 373
628 008
600 019
4,5
Loans to and receivables from customers
21 923 212
19 419 248
22 489 653
5,6
Fixed-income securities
2 286 697
3 532 536
1 873 879
5,6
Financial derivatives
75 709
75 634
52 603
11
Other assets
9 946
13 485
581
Total assets
25 129 937
23 668 910
25 016 736
LIABILITIES AND OWNERS EQUITY
LIABILITIES
5,9
Liabilities to credit institutions
500 938
1 552 932
901 704
5,7
Liabilities created on issuance of securities
23 448 736
20 985 677
22 952 861
5,6
Financial derivatives
26 067
20 317
20 909
Deferred tax liabilities
0
1 304
18 409
12
Other liabilities
70 118
73 589
32 935
12
Provision for accrued costs and liabilities
41
0
37
Total liabilities
24 045 901
22 633 819
23 926 855
EQUITY
Share capital
391 500
391 500
391 500
Share premium
363 500
363 500
363 500
Other accrued equity
311 731
256 917
334 881
Unallocated profit/loss
17 305
23 175
0
Total owners' equity
1 084 036
1 035 091
1 089 881
Total liabilities and equity
25 129 937
23 668 910
25 016 736
Statement of changes in equityKLP Kommunekreditt AS
2026 NOK THOUSAND
Share capital
Share premium
Other accrued equity
Total owners' equity
Equity 1 January 2026
391 500
363 500
334 881
1 089 881
Profit for the period
0
0
17 305
17 305
Other income and expenses
0
0
0
0
Total comprehensive income for the period
0
0
17 305
17 305
Group contribution received
0
0
82 075
82 075
Group contribution made
0
0
-105 225
-105 225
Total transactions with the owners
0
0
-23 149
-23 149
Equity 31 March 2026
391 500
363 500
329 036
1 084 036
2025 NOK THOUSAND
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
2025 NOK THOUSAND
Share capital
Share premium
Other accrued equity
Total owners' equity
Equity 1 January 2025
391 500
363 500
274 237
1 029 237
Income for the year
0
0
77 964
77 964
Other income and expenses
0
0
0
0
Total comprehensive income for the period
0
0
77 964
77 964
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 December 2025
391 500
363 500
334 881
1 089 881
Statement of cash flowKLP Kommunekreditt AS
NOK THOUSAND
Q1 2026
Q1 2025
2025
OPERATIONAL ACTIVITIES
Payments received from customers - interest
240 157
215 406
969 664
Payments made on issuance of loans to customers
-148 210
-752 078
-4 846 912
Receipts related to repayment and redemption of loans to customers
699 321
48 580
1 131 134
Receipts on loans from credit institutions
1 500 000
0
5 000 000
Repayments and redemption of securities debt
0
-2 114 000
-5 000 000
Change in securities debt, own funds
-1 007 001
2 099 534
1 955 156
Net payment of interest on loans credit institions
-242 670
-246 985
-990 564
Receipts in internal funding
300 000
800 000
4 600 000
Disbursements in internal funding
-700 000
-200 000
-4 650 000
Net payment of interest on internal funding
-7 593
-12 472
-67 102
Payments on the purchase of securities
-1 915 546
-163 003
-3 380 462
Receipts on sale of securities
1 494 066
215 000
5 103 054
Receipts of interest from securities
23 351
43 620
89 818
Disbursements on operations
-3 894
-6 744
-21 369
Net receipts/disbursements from operating activities
6
1 767
-14 455
Interest from credit institutions
5 133
3 814
33 758
Net cash flow from operating activities
237 121
-67 561
-88 281
INVESTMENT ACTIVITIES
Net cash flow from investment activities
0
0
0
FINANCING ACTIVITIES
Payment on group contribution
-23 149
-17 321
-17 321
Net cash flows from financing activities
-23 149
-17 321
-17 321
Net cash flow during the period
213 972
-84 882
-105 601
Cash and cash equivalents at the start of the period
588 740
694 341
694 341
Cash and cash equivalents at the end of the period
802 711
609 459
588 740
Net receipts/disbursements
213 972
-84 882
-105 601
Liquidity holdings comprise:
Deposits with and receivables from banks with no agreed term
802 711
609 459
588 740
Total liquidity holdings at the end of the reporting period
802 711
609 459
588 740
Total interest received
268 642
262 840
1 093 240
Total interest paid
-250 263
-259 457
-1 057 666
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 2026 –31 March 2026.
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 2025 please see the annual report for further information.
Note 3 Net interest income
NOK THOUSAND
Q1 2026
Q1 2025
2025
Interest income on loans to customers
258 845
240 088
997 605
Interest income on loans to credit institutions
7 065
5 784
33 758
Total interest income, effective interest method
265 910
245 872
1 031 363
Interest income on fixed-income securities
13 884
43 420
97 875
Other interest income
49 528
39 129
163 393
Total other interest income
63 412
82 549
261 267
Total interest income
329 322
328 421
1 292 631
Interest expenses on debt from KLP Banken AS
-6 826
-13 581
-66 983
Interest expenses on issued securities
-255 484
-255 139
-987 827
Total interest expenses, effective interest method
-262 310
-268 720
-1 054 810
Other interest expenses
-46 066
-33 912
-147 163
Total other interest expenses
-46 066
-33 912
-147 163
Total interest expenses
-308 376
-302 632
-1 201 973
Net interest income
20 946
25 788
90 658
Note 4 Loans to customers
NOK THOUSAND
31.03.2026
31.03.2025
31.12.2025
Principal on lending
21 785 295
19 293 982
22 338 082
Write-downs
-208
-184
-213
Accrued interest
221 806
199 859
203 118
Fair value hedging
-83 681
-74 409
-51 333
Loans to and receivables from customers
21 923 212
19 419 248
22 489 653
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 THOUSAND
31.03.2026
31.03.2025
31.12.2025
Capitalized value
Fair value
Capitalized value
Fair value
Capitalized value
Fair value
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS
Fixed-income securities
2 286 697
2 286 697
3 532 536
3 532 536
1 873 879
1 873 879
Financial derivatives
75 709
75 709
75 634
75 634
52 603
52 603
Total financial assets at fair value through profit and loss
2 362 406
2 362 406
3 608 169
3 608 169
1 926 483
1 926 483
FINANCIAL ASSETS FAIR VALUE HEDGING AT AMORTIZED COST
Lending to Norwegian municipalities
2 544 545
2 569 928
1 869 275
1 882 353
2 635 076
2 667 580
Total financial assets fair value hedging at amortized cost
2 544 545
2 569 928
1 869 275
1 882 353
2 635 076
2 667 580
FINANCIAL ASSETS AT AMORTIZED COST
Loans to and receivables from credit institutions
834 373
834 373
628 008
628 008
600 019
600 019
Lending to Norwegian municipalities
19 378 667
19 378 667
17 549 974
17 549 974
19 854 577
19 854 577
Total financial assets at amortized cost
20 213 040
20 213 040
18 177 982
18 177 982
20 454 595
20 454 595
Total financial assets
25 119 991
25 145 375
23 655 426
23 668 504
25 016 154
25 048 658
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT AND LOSS
Financial derivatives
26 067
26 067
20 317
20 317
20 909
20 909
Total financial liabilities at fair value through profit and loss
26 067
26 067
20 317
20 317
20 909
20 909
FINANCIAL LIABILITIES FAIR VALUE AT HEDGING AMORTIZED COST
Covered bonds issued
2 193 203
2 210 576
1 696 318
1 711 260
2 203 168
2 220 402
Total financial liabilities fair value hedging amortized cost
2 193 203
2 210 576
1 696 318
1 711 260
2 203 168
2 220 402
FINANCIAL LIABILITIES AT AMORTIZED COST
Liabilities to credit institutions
500 938
500 938
1 552 932
1 552 932
901 704
901 704
Covered bonds issued
21 255 534
21 329 646
19 289 358
19 344 295
20 749 694
20 836 007
Total financial liabilities at amortized cost
21 756 471
21 830 584
20 842 290
20 897 227
21 651 398
21 737 712
Total financial liabilities
23 975 741
24 067 227
22 558 926
22 628 805
23 875 475
23 979 023
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 measured at Level 2 in accordance with the fair value 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 measured at Level 2 in accordance with the fair value 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 measured at Level 2 in accordance with the fair value 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 measured at Level 2 in accordance with the fair value hierarchy, cf. Note 6.
Note 6 Fair value hierarchy
31.03.2026 NOK THOUSAND
Level 1
Level 2
Level 3
Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities
119 074
2 167 623
0
2 286 697
Financial derivatives
0
75 709
0
75 709
Total assets at fair value
119 074
2 243 332
0
2 362 406
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)
0
26 067
0
26 067
Total financial liabilities at fair value
0
26 067
0
26 067
31.03.2025 NOK THOUSAND
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
31.12.2025 NOK THOUSAND
Level 1
Level 2
Level 3
Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities
477 750
1 396 129
0
1 873 879
Financial derivatives
0
52 603
0
52 603
Total assets at fair value
477 750
1 448 732
0
1 926 483
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)
0
20 909
0
20 909
Total financial liabilities at fair value
0
20 909
0
20 909
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.
Interest rate on borrowings through the issuance of securities on the reporting date:
4.56%
4.97%
4.63%
The interest rate is calculated as a weighted average of the act/360 basis. It includes interest rate effects and amortization costs.
NOK THOUSAND
Balance sheet 31.12.2025
Issued
Matured/ redeemed
Other adjustments
Balance sheet 31.03.2026
Bond debt, nominal amount
22 950 000
1 500 000
0
0
24 450 000
Adjustments
-22 196
0
0
-25 196
-47 392
Accrued interest
178 058
0
0
11 071
189 129
Own holdings, nominal amount
-153 000
0
-990 000
0
-1 143 000
Total debt securities issued
22 952 861
1 500 000
-990 000
-14 125
23 448 736
Note 8 Over-collateralisation
NOK THOUSAND
31.03.2026
31.03.2025
31.12.2025
SECURITY POOL
Loans to customers
21 948 804
19 439 732
22 522 408
Financial derivatives (net)
49 626
55 332
31 676
Additional collateral ¹
3 864 758
3 725 232
1 799 804
Total security pool
25 863 188
23 220 296
24 353 888
Outstanding covered bonds incl. own funds and premium/discount
24 733 907
21 055 555
23 211 017
Coverage of the security pool
104.6%
110.3 %
104.9 %
Over-collateralisation
4.6%
10.3%
4.9%
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
31.03.2026 NOK THOUSAND
Due date
Nominal
Accrued interest
Book value
Debt to KLP Banken AS
15.12.2027
500 000
938
500 938
Total liabilities to credit institutions
500 000
938
500 938
Interest rate on debt to credit institutions at the reporting date:
4.22 %
The interest rate is calculated as a weighted average of the act/360 basis.
31.03.2025 NOK THOUSAND
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.
31.12.2025 NOK THOUSAND
Due date
Nominal
Accrued interest
Book value
Debt to KLP Banken AS
15.12.2027
400 000
810
400 810
Debt to KLP Banken AS
15.12.2027
500 000
894
500 894
Total liabilities to credit institutions
900 000
1 704
901 704
Interest rate on debt to credit institutions at the reporting date:
4.29 %
The interest rate is calculated as a weighted average of the act/360 basis.
Note 10 Financial assets and liabilities subject to net settlement
31.03.2026 NOK THOUSAND
Related sums that are not presented net
Gross financial assets/ liabilites
Financial instruments
Security in cash
Net recognised value
ASSETS
Financial derivatives
75 709
-26 067
-44 827
9 531
Total
75 709
-26 067
-44 827
9 531
LIABILITIES
Financial derivatives
26 067
-26 067
-19
0
Total
26 067
-26 067
-19
0
31.03.2025 NOK THOUSAND
Related sums that are not presented net
Gross financial assets/ liabilites
Financial instruments
Security in cash
Net recognised value
ASSETS
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
31.12.2025 NOK THOUSAND
Related sums that are not presented net
Gross financial assets/ liabilites
Financial instruments
Security in cash
Net recognised value
ASSETS
Financial derivatives
52 603
-20 909
0
31 694
Total
52 603
-20 909
0
31 694
LIABILITIES
Financial derivatives
20 909
-20 909
0
0
Total
20 909
-20 909
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 Other assets
NOK THOUSAND
31.03.2026
31.03.2025
31.12.2025
Intercompany receivables
8 763
10 959
0
Prepaid expenses
634
1 901
0
Miscellaneous receivables
549
624
581
Total other assets
9 946
13 485
581
Note 12 Other liabilities and provision for accrued costs
NOK THOUSAND
31.03.2026
31.03.2025
31.12.2025
Creditors
166
0
113
Intercompany payables
2 986
1 237
341
Short-term balances with credit institutions
50 500
53 200
31 900
Other liabilities
16 467
19 151
581
Total other liabilities
70 118
73 589
32 935
VAT
41
0
37
Total accrued costs and liabilities
41
0
37
Note 13 Capital adequacy
NOK THOUSAND
31.03.2026
31.03.2025
31.12.2025
Share capital and share premium fund
755 000
755 000
755 000
Other owners' equity
311 731
256 917
334 881
Total owners' equity
1 066 731
1 011 917
1 089 881
Adjustments due to requirements for proper valuation
-2 287
-3 533
-1 874
Core capital/Tier 1 capital
1 064 444
1 008 384
1 088 007
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)
1 064 444
1 008 384
1 088 007
Capital requirement
402 769
374 127
400 258
Surplus of own funds (Tier 1 and Tier 2 capital)
661 675
634 258
687 749
ESTIMATE BASIS CREDIT RISK:
Institutions
177 266
134 686
116 828
Local and regional authorities
4 520 656
4 056 473
4 639 482
Covered bonds
160 186
272 671
71 202
Other items
1 183
2 525
581
Calculation basis credit risk
4 859 291
4 466 356
4 828 094
Credit risk
388 743
357 308
386 248
Operating risk
13 335
15 314
13 335
Credit valuation adjustment (CVA)
691
1 504
675
Total capital requirement assets
402 769
374 127
400 258
Core capital adequacy ratio
21.1 %
21.6 %
21.7 %
Supplementary capital ratio
0.0 %
0.0 %
0.0 %
Capital adequacy ratio
21.1 %
21.6 %
21.7 %
Leverage ratio
4.2 %
4.2 %
4.4 %
CAPITAL REQUIREMENT PER 31.03.2026
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 14 Contingent liabilites
NOK THOUSAND
31.03.2026
31.03.2025
31.12.2025
Loan commitment
228 604
584 267
47 040
Total contingent liabilities
228 604
584 267
47 040
Note 15 Net gain/(loss) on financial instruments
NOK THOUSAND
Q1 2026
Q1 2025
2025
Net gain/(loss) on fixed-income securities
1 078
3 227
12 495
Net gain/(loss) financial derivatives and realized amortization linked to lending
-103
0
-1 481
Net gain/(loss) financial derivatives and realized repurchase of own debt
-1 179
0
-3 227
Total net gain/(loss) on financial instruments
-204
3 227
7 787
Note 16 Loan loss provision
Changes in provisions for expected losses in first quarter of 2026 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 2026.
Refer to Note 7 and Note 2 in the annual report for more details of the model.
Expected credit loss (ECL) - loans to customers - public lending
NOK THOUSAND
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
31.03.2026
31.03.2025
31.12.2025
stage 1
stage 2
stage 3
Total stage 1-3
Total stage 1-3
Total stage 1-3
Opening balance ECL 01.01.
213
0
0
213
177
177
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
-9
New losses
6
0
0
6
10
65
Write-offs
-10
0
0
-10
-2
-20
Closing balance ECL
208
0
0
208
184
213
Changes in the period 01.01-31.03./31.12
-5
0
0
-5
7
36
Book value of loans and receivables for customers - public lending
NOK THOUSAND
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
31.03.2026
31.03.2025
31.12.2025
stage 1
stage 2
stage 3
Total stage 1-3
Total stage 1-3
Total stage 1-3
Lending 01.01.
22 541 200
0
0
22 541 200
18 770 141
18 770 141
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
-132 090
0
0
-132 090
-185 575
-1 015 805
New lending
629 877
0
0
629 877
1 069 721
6 845 946
Write-offs
-1 031 885
0
0
-1 031 885
-160 446
-2 059 083
Lending
22 007 101
0
0
22 007 101
19 493 841
22 541 200
Fair value hedging
-83 681
0
0
-83 681
-74 409
-51 333
Recognised loan loss provisions
-208
0
0
-208
-184
-213
Book value of loans to public lending
21 923 212
0
0
21 923 212
19 419 248
22 489 653
Quarterly earnings trend
NOK MILLION
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
Interest income
329.3
319.9
316.5
327.8
328.4
Interest expense
-308.4
-306.7
-287.4
-305.2
-302.6
Net interest income
20.9
13.1
29.1
22.6
25.8
Net gain/(loss) financial instruments
-0.2
0.3
1.6
2.7
3.2
Total net gain/(loss) on financial instruments
-0.2
0.3
1.6
2.7
3.2
Other operating expenses
-6.0
-4.9
-6.6
-4.2
-4.8
Total operating expenses
-6.0
-4.9
-6.6
-4.2
-4.8
Operating profit/loss before tax
14.8
8.5
24.1
21.0
24.2
Tax ordinary income
2.5
2.5
-1.0
-0.3
-1.0
Profit for the period
17.3
11.0
23.1
20.7
23.2
Key figures - accumulated
NOK MILLION
Q1 2026
Q4 2025
Q3 2025
Q2 2025
Q1 2025
Pre-tax income
14.8
77.7
69.2
45.2
24.2
Net interest income
20.9
90.7
77.5
48.4
25.8
Other operating income
0.0
0.0
0.0
0.0
0.0
Other operating cost
-6.0
-20.7
-15.7
-9.1
-4.8
Net gain/(loss) financial instruments
-0.2
7.8
7.5
5.9
3.2
Lending with public sector guarantee
21 923.2
22 489.7
20 634.8
19 750.6
19 419.2
Non-performing loans
0.0
0.0
0.0
0.0
0.0
Total liabilities created on issuance of securities