Q1 2022 Interim report KLP Banken Group

KLP Banken GroupQ1 2022

Main features by first quarter:

Strong lending growth
Increased funding costs
Market value loss on securities

The KLP Banken Group finances mortgages and other credit in the retail market and lending to municipalities, county administrations and companies carrying out public sector assignments. Additionally, the KLP Banken manages a lending portfolio on behalf of its parent company KLP (Kommunal Landspensjonskasse). The Group manages a lending total of NOK 116 (113) billion. The lending business is nationwide and divided into the business areas retail market and public sector loans.

In the retail market, KLP Banken shall offer products and services at competitive terms, aiming at enterprises that have chosen KLP as their pension provider are considered attractive employers.

In the public sector market KLP Kommunekreditt AS together with KLP shall contribute to market competition and thereby access to favorable long-term financing for the sector.

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

Income statement

Net interest income for the KLP Banken Group as at the end of first quarter 2022, amounted to NOK 72.1 (75.7) million. Reduced net interest income is mainly related to that increased funding costs has resulted in lower lending margins, especially on mortgages. Strong lending growth has only partly compensated this.

Net fees and commissions income amount to NOK 5.2 (4.2) million as at the first quarter.

The Group administers housing mortgages and public sector lending financed by its parent company (KLP). The management fee for this task amounted to NOK 15.1 (14.9) million at quarter end.

The accounting line net gain/loss on financial instruments mainly comprises the effects of changes in market value of the securities portfolio as well as repurchases of borrowings. In total, financial instruments gave a cost of NOK -10.1 (14.5) million in the quarter. The cost brought to book is mainly due to increased credit spreads in the market resulting in reduced market value of the securities portfolio. An insignificant part of this is realized loss.

Operating expenses including depreciations amounted to NOK 64.0 (60.6) million. Most of the increase is related to prize changes on external service purchases as well as that some expenses are volume dependent.

Loan loss provisions and realized losses so far in 2022 was NOK 0.1 (-0.5) million in the retail market. A positive figure here implies that reversals of previous loss provisions on credit cards and mortgages are higher than new credit losses and loss provision.

The KLP Banken Group had a pre-tax profit at the end of first quarter of NOK 18.3 (48.6) million. Of this, the retail market segment generated a profit of NOK 8.3 (41.8) million, and the public sector segment achieved a profit of NOK 10.0 (6.8) million. Net gain/loss on financial instruments is mainly booked in the retail market segment. Group total income as at first quarter 2022 was NOK 56.2 (69.8) million.

Lending and credits

On 31 March 2021, the KLP Banken Group had a lending balance to customers totaling NOK 40.6 (37.6) billion. The distribution between the retail market and public sector market was NOK 22.6 (20.9) billion and NOK 18.0 (16.7) billion, respectively.

The mortgage lending growth in the first qurter was more than NOK 0.5 billion, significantly above same time last year. The bank's mortgage products seem to hit well in the target group, members of the pension schemes in KLP.

Mortgage loans amounting NOK 1.5 (2.2) billion was sold from KLP Banken AS to the daughter company KLP Boligkreditt AS in the quarter. Managed mortgages for KLP are little changed during the quarter.

Drawn credits on credit cards has been stable through the first quarter, but unused credits show a reduction. This is a consequence of a general decrease in the market for unsecured credits as well as a reduction in inactive users. The number of active credit card customers has increased through the quarter.

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

Liquid investment

The liquidity is invested in other banks and in interest-bearing securities. Investments in credit institutions amounted to NOK 1.2 (2.2) billion. The book value of interest-bearing securities valued at fair value was NOK 6.1 (3.3) billion in the KLP Banken Group at the end of the quarter.

Borrowing

The KLP Banken Group's external financing comprises deposits and bonds. At the reporting date, deposits from individuals and companies were NOK 13.4 (12.1) billion and issued bonds amounted to NOK 31.9 (27.1) billion. Of the outstanding issued volume, covered bonds (OMF) issued by KLP Kommunekreditt AS and KLP Boligkreditt AS, amounted to NOK 18.5 (17.2) billion and NOK 12.4 (10.4) billion respectively. All covered bond issues have achieved AAA rating. Outstanding securities debt in KLP Banken AS amounted to NOK 0.9 (0.8) billion.

Risk and capital adequacy

The KLP Banken Group is exposed to various types of risks and the bank has established a framework for risk management aimed at ensuring risks are identified, analyzed and subject to management using policies, limits, procedures and instructions.

The bank shall have a prudent risk profile and earnings are to be principally a result of borrowing and lending activities, as well as liquidity management. This means that the bank is to have low market risk, and interest risk arising within the borrowing and lending activities is reduced using derivatives.

The KLP Banken Group and its subsidiaries are to have sound long-term financing and limits have been established to ensure that that this objective is achieved.

The credit risk associated with the bank assets is low, and lending is mainly limited to local government risk and lien on housing property. Management of the bank's liquidity is conducted through investments in other banks satisfying set credit quality requirements, and in securities in accordance with Board-approved credit lines.

The KLP Banken Board is worried about the development following the war in Ukraine. The bank has no credit exposure in this area, but may as other Norwegian banks, be affected by the financial turmoil following the situation.

At the end of the first quarter 2022, eligible Tier 1 and Tier 2 capital i.a.w. the capital adequacy rules were NOK 2 464 (2 405) million. Eligible Tier 1 and Tier 2 capital comprise core capital only. Lending is risk-weighted in accordance with the authorities' capital adequacy regulations. The KLP Banken Group had a capital adequacy ratio of 18.1 (19.3) per cent at the reporting time. The minimum statutory requirement is 12.5 per cent core capital adequacy and 16.0 per cent capital adequacy. Leverage ratio was 5.1 (5.5) per cent. Here the requirement is 3.0 per cent.

Income statementKLP Banken Group

NOTES	NOK THOUSANDS	Q1 2022	Q1 2021	01.01.2021 -31.12.2021
	Interest income, effective interest method	180 181	152 173	621 624
	Other interest income	26 221	15 700	68 176
3	Total interest income	206 401	167 873	689 801
	Interest expense, effective interest method	-120 265	-69 040	-290 728
	Other interest expense	-14 060	-23 110	-90 463
3	Total interest costs	-134 325	-92 149	-381 191
3	Net interest income	72 076	75 724	308 609
	Commision income and income from banking services	5 717	4 553	21 520
	Commision cost and cost from banking services	-524	-375	-2 033
	Net charges and commission income	5 194	4 178	19 487
	Other fee income	15 118	14 850	59 400
16	Net gain/ (loss) financial instruments	-10 107	14 467	-32 896
	Total other operating income	5 011	29 317	26 504
	Salaries and administrative costs	-21 810	-20 289	-81 930
	Depreciation	-1 015	-1 663	-6 409
	Other operating expenses	-41 206	-38 101	-147 846
14	Net loan losses	63	-533	-2 299
	Total operating expenses	-63 969	-60 586	-238 484
	Operating profit/loss before tax	18 312	48 633	116 117
	Tax ordinary income	24 298	15 352	-423
	Profit/loss for the period	42 610	63 985	115 694
	Estimate difference, pension obligation and assets	18 113	7 732	7 136
	Tax on actuarial gains and losses	-4 528	-1 933	-1 784
	Items that will not be reclassified to profit and loss	13 585	5 799	5 352
	Changes in the fair value through profit and loss	0	0	0
	Tax on changes in fair value of available for sale financial assets	0	0	0
	Items that may be reclassified to profit and loss	0	0	0
	Other comprehensive income for the period	13 585	5 799	5 352
	Comprehensive income for the period	56 195	69 784	121 046

Balance sheetKLP Banken Group

NOTES	NOK THOUSANDS	31.03.2022	31.03.2021	31.12.2021
	ASSETS
5	Claims on central banks	67 275	66 365	67 244
5	Loans to credit institutions	1 094 116	2 172 888	1 398 501
4,5	Loans to customers	40 609 817	37 628 313	39 934 100
5,6,13	Fixed-income securities	6 051 162	3 263 812	6 001 099
5,6	Shareholdings	1 187	1 197	1 187
5,6,8	Financial derivatives	87 724	45 859	42 051
	Deferred tax assets	5 723	0	0
	Intangible assets	16 475	17 751	16 789
17	Right-of-use assets	17 768	1 558	18 236
	Fixed assets	436	438	436
10	Other assets	2 329	2 209	2 217
	Total assets	47 954 012	43 200 390	47 481 860
	LIABILITIES AND OWNERS EQUITY
	LIABILITIES
5	Debt to credit institutions	0	1 303 191	0
5,7	Debt securities issued	31 862 183	27 147 360	31 917 798
5	Deposits and borrowings from the public	13 372 222	12 103 244	12 901 004
5,6,8	Financial derivatives	17 111	53 550	9 990
	Deferred tax liabilities	0	25 214	23 343
17	Lease liabilities	17 938	1 626	18 323
11	Other liabilities	88 465	41 576	38 369
11	Provision for accrued costs and liabilities	47 755	55 109	52 249
	Total liabilities	45 405 675	40 730 870	44 961 078
	EQUITY
	Share capital	1 065 000	1 065 000	1 065 000
	Share premium	825 000	825 000	825 000
	Other owners' eqyity	602 142	509 736	630 782
	Profit for the period	56 195	69 784	0
	Total equity	2 548 337	2 469 520	2 520 782
	Total liabilities and equity	47 954 012	43 200 390	47 481 860

Statement of changes in equityKLP Banken Group

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

2021 NOK THOUSANDS	Share capital	Share premium	Other equity	Total owners’ equity
Equity 1 January 2021	1 065 000	825 000	536 801	2 426 801
Profit for the period	0	0	63 985	63 985
Other comprehensive income	0	0	5 799	5 799
Total comprehensive income for the period	0	0	69 784	69 784
Group contribution received during the period	0	0	84 919	84 919
Group contribution paid during the period	0	0	-111 985	-111 985
Total transactions with the owners	0	0	-27 065	-27 065
Equity 31 March 2021	1 065 000	825 000	579 520	2 469 520

2021 NOK THOUSANDS	Share capital	Share premium	Other equity	Total owners’ equity
Equity 1 January 2021	1 065 000	825 000	536 801	2 426 801
Income for the year	0	0	115 694	115 694
Other comprehensive income	0	0	5 352	5 352
Comprehensive income for the year	0	0	121 046	121 046
Group contribution received during the period	0	0	84 919	84 919
Group contribution paid during the period	0	0	-111 985	-111 985
Total transactions with the owners	0	0	-27 065	-27 065
Equity 31 December 2021	1 065 000	825 000	630 782	2 520 782

Statement of cash flowKLP Banken Group

NOK THOUSANDS	Q1 2022	Q1 2021	01.01.2021 -31.12.2021
OPERATING ACTIVITIES
Payments received from customers – interest, commission and charges	162 360	148 669	638 105
Payments to customers – interest, commission and charges	-27 179	-17 232	-89 196
Disbursements on loans to customers and credit institutions	-2 592 417	-4 558 427	-16 640 961
Receipts on loans to customers	1 876 531	5 109 975	14 782 637
Net receipts on customer deposits banking	471 218	322 613	1 119 290
Disbursements on operations	-25 839	-36 047	-148 301
Payments to staff, pension schemes, employer's social security contribution etc.	-21 042	-21 778	-81 174
Interest investment accounts	3 144	695	9 617
Net receipts/disbursements from operating activities	69 998	-80 571	64 335
Net cash flow from operating activities	-83 224	867 897	-345 647
INVESTMENT ACTIVITIES
Receipts on the sale of securities	998 521	3 331 460	9 763 759
Payments on the purchase of securities	-1 056 761	-1 628 045	-9 551 367
Receipts of interest from securities	16 866	4 843	45 074
Payments on the purchase of tangible fixed assets	-233	0	-2 578
Net cash flow from investment activities	-41 608	1 708 258	254 889
FINANCING ACTIVITIES
Repayment and redemption from credit institutions	0	-1 200 000	-2 500 000
Net payment of interest from credit institutions	0	-2 493	-6 517
Receipts on loans	1 500 000	0	9 300 000
Repayments and redemption of securities debt	-1 088 835	-1 452 000	-6 569 839
Change in securities debt, own funds	-454 000	1 011 830	343 369
Net payment of interest on loans	-91 031	-50 450	-238 607
Payment of lease liabilities	-415	-399	-1 654
Group contributions made	-28 640	0	-27 065
Net cash flows from financing activities	-162 921	-1 693 511	299 685
Net cash flow during the period	-287 754	882 643	208 928
Cash and cash equivalents at the start of the period	1 420 995	1 212 067	1 212 067
Cash and cash equivalents at the end of the period	1 133 241	2 094 710	1 420 995
Net receipts/disbursements (-)	-287 754	882 643	208 928

Notes to the financial statementKLP Banken Group

Note 1 General information

KLP Banken AS was formed on 25 February 2009. KLP Banken AS owns all the shares in KLP Kommunekreditt AS and KLP Boligkreditt AS. These companies together form the KLP Banken AS Group. KLP Banken AS Group provide or acquire loans to Norwegian municipalities and county authorities, as well as to companies with public sector guarantee. The lending activities are principally financed by issuance of covered bonds. The Group also offers standard banking products to private customers. KLP Banken AS is registered and domiciled in Norway. It's head office is at Beddingen 8 in Trondheim. The company has a branch office in Dronning Eufemiasgate 10, Oslo.

The company, KLP Banken AS, is a wholly owned subsidiary of Kommunal Landspensjonskasse (KLP). KLP is a mutual insurance company.

Note 2 Accounting principles

The interim report includes the interim Financial Statements of KLP Banken Group for the period 1 January 2022 – 31 March 2022, with a specification of the results in the firsth quarter. The interim Financial Statements has not been audited.

The interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting".

The KLP Banken Group has changed the discount rate for corporate bonds which is used to calculate pension obligations. Compared to the assumptions used at 31.12.2021, the discount rate has been changed from 1.9 % to 2.7 %. This change results in a reduction of NOK 18.1 million in recognised liabilities as at 31.03.2022. Demographic assumptions such as expected wage growth, the National Insurance basic amount (G) and pension regulations have not changed in the period. New rules regulating deferred pensions have been adopted, but the Norwegian Accounting Standards Board has not issued any guidance on how these should be included in the pension accounts. This should be clarified soon and is expected to affect the company’s pension obligations in later periods.

Other accounting principles and calculations are the same in the interim financial statement as in the annual report for 2021.

Note 3 Net interest income

NOK THOUSANDS	Q1 2022	Q1 2021	01.01.2021 -31.12.2021
Interest income on loans to customers	176 807	151 380	617 688
Interest income on loans to credit institutions	3 374	792	3 937
Total interest income, effective interest method	180 181	152 173	621 624
Interest income on bonds and certificates	18 746	6 750	36 486
Other interest income	7 475	8 949	31 690
Total other interest income	26 221	15 700	68 176
Total interest income	206 401	167 873	689 801
Interest expenses on deposits to KLP Banken	-22 031	-16 558	-70 216
Interest expenses on issued securities	-98 151	-52 473	-220 403
Interest expense lease liabilities	-83	-9	-109
Total interest expense, effective interest method	-120 265	-69 039	-290 728
Other interest expenses	-9 333	-20 136	-73 196
Interest expenses on deposits to customers	-4 727	-2 974	-17 268
Total other interest expense	-14 060	-23 110	-90 463
Total interest expense	-134 325	-92 149	-381 191
Net interest income	72 076	75 724	308 609

Note 4 Loans to customers

NOK THOUSANDS	31.03.2022	31.03.2021	31.12.2021
Principal on loans to customers	40 582 110	37 505 259	39 870 185
Credit portfolio	43 816	45 986	43 355
Overdraft current account	174	574	179
Write-downs step 1 and 2	-1 299	-1 112	-1 075
Write-downs step 3	-1 599	-1 270	-1 040
Loans to customers after write-downs	40 623 203	37 549 437	39 911 604
Accrued interest	73 535	60 912	53 852
Premium/discount	0	37	0
Fair value hedging	-86 920	17 927	-31 356
Loans to customers	40 609 817	37 628 313	39 934 100

Note 5 Categories of financial instruments

NOK THOUSANDS	31.03.2022		31.03.2021		31.12.2021
	Capitalized value	Fair value	Capitalized value	Fair value	Capitalized value	Fair value
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS
Fixed-income securities	6 051 162	6 051 162	3 263 812	3 263 812	6 001 099	6 001 099
Financial derivatives	87 724	87 724	45 859	45 859	42 051	42 051
Shares and holdings	1 187	1 187	1 197	1 197	1 187	1 187
Total financial assets at fair value through profit and loss	6 140 073	6 140 073	3 310 867	3 310 867	6 044 337	6 044 337
FINANCIAL ASSETS FAIR VALUE HEDGING
Loans to and receivables from customers	1 816 706	1 851 218	3 295 179	3 357 039	2 012 822	2 056 718
Total financial assets fair value hedging	1 816 706	1 851 218	3 295 179	3 357 039	2 012 822	2 056 718
FINANCIAL ASSETS AT AMORTIZED COST
Loans to and receivables from credit institutions	67 275	67 275	66 365	66 365	67 244	67 244
Loans to and receivables from central banks	1 094 116	1 094 116	2 172 888	2 172 888	1 398 501	1 398 501
Loans to and receivables from customers	38 793 111	38 758 515	34 333 134	34 271 088	37 921 278	37 877 270
Total financial assets at amortized cost	39 954 501	39 919 905	36 572 387	36 510 340	39 387 023	39 343 014
Total financial assets	47 911 280	47 911 196	43 178 433	43 178 247	47 444 181	47 444 069
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT AND LOSS
Financial derivatives	17 111	17 111	53 550	53 550	9 990	9 990
Total financial liabilities at fair value through profit and loss	17 111	17 111	53 550	53 550	9 990	9 990
FINANCIAL LIABILITIES FAIR VALUE HEDGING
Liabilities created on issuance of securities	489 379	494 163	1 127 265	1 139 273	508 146	515 581
Total financial liabilities fair value hedging	489 379	494 163	1 127 265	1 139 273	508 146	515 581
FINANCIAL LIABILITIES AT AMORTIZED COST
Liabilities to credit institutions	0	0	1 303 191	1 303 191	0	0
Liabilities created on issuance of securities	31 372 804	30 929 333	26 020 096	26 166 146	31 409 652	30 977 884
Deposits from customers	13 372 222	13 372 222	12 103 244	12 103 244	12 901 004	12 901 004
Total financial liabilities at amortized cost	44 745 026	44 301 555	39 426 531	39 572 581	44 310 656	43 878 888
Total financial liabilities	45 251 517	44 812 829	40 607 345	40 765 404	44 828 792	44 404 459

Fair value shall be a representative price based on what a corresponding asset or liability would have been traded for on normal market terms and conditions. A financial instrument is considered to be listed in an active market if the listed price is simply and regularly available from a stock market, dealer, broker, industry grouping, price setting service or regulatory authority, and these prices represent actual and regularly occurring transactions at arm’s length. If the market for the security is not active, or the security is not listed on a stock market or similar, valuation techniques are used to set fair value. These are based for example on information on recently completed transactions carried out on business terms and conditions, reference to trading in similar instruments and pricing using externally collected yield curves and yield spread curves. As far as possible the estimates are based on externally observable market data and rarely on company-specific information.

The different financial instruments are thus priced in the following way:

Fixed-income securities - government

Nordic Bond Pricing is used as a source for pricing Norwegian government bonds. The prices are compared with the prices from Bloomberg to reveal any errors.

Fixed-income securities - other than government

Norwegian fixed-income securities, except government are priced directly on prices from Nordic Bond Pricing. Those securities that are not included in Nordic Bond Pricing are priced theoretically. The theoretical price is based on the assumed present value on the sale of the position. A zero-coupon curve is used for discounting. The zero-coupon curve is adjusted upwards by means of a credit spread, which is to take account of the risk the bond entails. The credit spread is calculated on the basis of a spread curve taking account of the duration of the bond. Nordic Bond Pricing is the main source of spread curves. They provide company-specific curves for Norwegian savings banks, municipalities and energy. Savings banks have various spread curves based on total assets. For companies where Nordic Bond Pricing do not deliver spread curves, the Group use spread curves from three Norwegian banks. When spread curves are available from more than one of these banks, an equal-weighted average is used. If a bond lacks an appropriate spread curve, spread from a comparable bond from the same issuer is used.

Financial derivatives

These transactions are valued based on the applicable swap curve at the time of valuation. Derivative contracts are to be used only to hedge balance amounts and to enable payments obligations to be met. Derivative contracts may be struck only with counterparties with high credit quality.

Shares (unlisted)

For liquid shares and units, the closing price on the balance sheet date is used as the basis for measurement at fair value. If the prices are not quoted, the last price traded is used. Illiquid shares are priced on the basis of the Oslo Stock Exchange’s index algorithm based on the last traded prices. If the price picture is out of date, a derived valuation is produced from relevant equity indices or other similar securities. If this is also considered unsatisfactory, a discretionary valuation is made in which the Company’s financial key figures, broker assessment etc. are used.

Fair value of loans to retail customers

The fair value through profit/loss is calculated by discounting contractual cash flows to present values. The discount rate is determined as the market rate, including a suitable risk margin. For loans measured at fair value through other comprehensive income, the fair value is calculated as the recognised principal minus estimated loss provisions on loans classified in Stage 2 and 3 (see note 14 Loan losses provision).

Fair value of loans to Norwegian local administrations

The fair value of these loans is considered to be virtually the same as the book value, as the contract terms are constantly adjusted in line with market interest rates. The fair value of fixed rate loans is calculated by discounting contractual cash flows by market interest rates including a suitable risk margin at the end of the reporting period. This is valued at Level 2 in the valuation hierarchy, cf. Note 6.

Fair value of deposits

The fair value of floating rate deposits is taken to be approximately equal to the deposit amount including accrued interest. The fair value of fixed rate deposits is calculated by discounting contractual cash flows by market interest rates including a suitable risk margin. Discounting contractual cash flows by market interest rates including a suitable risk margin.

Fair value of loans to and receivables from credit institutions

All receivables from credit institutions (bank deposits) are at variable interest rates. The fair value of these is considered to be virtually the same as the book value, as the contract terms are continuously changed in step with change in market interest rates. This is valued at Level 2 in the valuation hierarchy, cf. Note 6.

Liabilities created on issuance of securities

Fair value in this category is determined on the basis of internal valuation models based on external observable data. This is valued in Level 2 in the valuation hierarchy, cf. Note 6.

Note 6 Fair value hierarchy

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

31.03.2021 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	837 101	2 426 711	0	3 263 812
Shareholdings	0	0	1 197	1 197
Financial derivatives	0	45 859	0	45 859
Total assets at fair value	837 101	2 472 570	1 197	3 310 867
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)	0	53 550	0	53 550
Total financial liabilities at fair value	0	53 550	0	53 550

31.12.2021 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	595 610	5 405 489	0	6 001 099
Shareholdings	0	0	1 187	1 187
Financial derivatives	0	42 051	0	42 051
Total assets at fair value	595 610	5 447 540	1 187	6 044 337
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)	0	9 990	0	9 990
Total financial liabilities at fair value	0	9 990	0	9 990

NOK THOUSANDS	31.03.2022	31.03.2021	31.12.2021
CHANGES IN LEVEL 3 UNLISTED SHARES
Opening balance	1 187	1 197	1 197
Additions/purchases of shares	0	0	77
Unrealized changes	0	0	-87
Closing balance	1 187	1 197	1 187
Realized gains/losses	0	0	0

Fair value shall be a representative price based on what a corresponding asset or liability would have been traded for at normal market terms and conditions. Highest quality in regard to fair value is based on listed prices in an active market. A financial instrument is considered as listed in an active market if listed prices are simply and regularly available from a stock market, dealer, broker, industry group, price-setting service or regulatory authority, and these prices represent actual and regularly occurring transactions at arm's length.

LEVEL 1:

Instruments at this level obtain fair value from listed prices in an active market for identical assets or liabilities to which the entity has access at the reporting date. Examples of instruments in Level 1 are stock market listed securities.

LEVEL 2:

Instruments at this level obtain fair value from observable market data. This includes prices based on identical instruments, but where the instrument does not maintain a high enough trading frequency and is therefore not considered to be traded in an active market, as well as prices based on corresponding assets and price-leading indicators that can be confirmed from market information. Example instruments at Level 2 are fixed-income securities priced on the basis of interest rate paths.

LEVEL 3:

Instruments at Level 3 contain non-observable market data or are traded in markets considered to be inactive. The price is based generally on discrete calculations where the actual fair value may deviate if the instrument were to be traded.

Note 5 discloses the fair value of financial assets and financial liabilities that are recognized at amortized cost and according to the rules on hedge accounting. Financial assets measured at amortized cost and hedge accounting comprise lending to and due to credit institutions, Norwegian municipalities and retail customers. The stated fair value of these assets is determined on terms qualifying for level 2. Financial liabilities recognized at amortized cost and hedge accounting consist of debt securities issued and deposits. The stated fair value of these liabilities is determined by methods qualifying for level 2.

There have been no transfers between level 1 and level 2.

Note 7 Debt securities issued - stock exchange listed covered bonds and certificates

NOK THOUSANDS	31.03.2022	31.03.2021	31.12.2021
Bond debt, nominal amount	33 849 260	27 972 877	33 426 640
Adjustments	22 250	52 767	60 603
Accrued interest	52 674	32 716	38 554
Own holdings, nominal amount	-2 062 000	-911 000	-1 608 000
Total debt securities issued	31 862 183	27 147 360	31 917 798
Interest rate on borrowings through the issuance of securities at the reporting date:	1.5 %	0.8 %	1.1 %
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 31.12.2021	Issued	Matured/ redeemed	Other adjustements	Balance sheet 31.03.2022
Changes in debt securities issued - stock exchange listed covered bonds and cerftificates
Bond debt, nominal amount	33 426 640	1 500 000	-1 076 000	-1 380	33 849 260
Adjustments	60 603	0	0	-38 353	22 250
Accrued interest	38 554	0	0	14 120	52 674
Own holdings, nominal amount	-1 608 000	0	-454 000	0	-2 062 000
Total debt securities issued	31 917 798	1 500 000	-1 530 000	-25 613	31 862 183

Note 8 Financial assets and liabilities subject to net settlement

31.03.2022 NOK THOUSANDS				Related sums that are not presented net
	Gross financial assets/liabilites	Gross assets/ liabilities presented net	Book value	Financial instruments	Security in cash	Net recognised value
ASSETS
Financial derivatives	87 724	0	87 724	-17 111	0	70 613
Total	87 724	0	87 724	-17 111	0	70 613
LIABILITIES
Financial derivatives	17 111	0	17 111	-17 111	-1 704	0
Total	17 111	0	17 111	-17 111	-1 704	0

31.03.2021 NOK THOUSANDS				Related sums that are not presented net
	Gross financial assets/liabilites	Gross assets/ liabilities presented net	Book value	Financial instruments	Security in cash	Net recognised value
ASSETS
Financial derivatives	45 859	0	45 859	-37 028	0	8 831
Total	45 859	0	45 859	-37 028	0	8 831
LIABILITIES
Financial derivatives	53 550	0	53 550	-37 028	-3 622	14 600
Total	53 550	0	53 550	-37 028	-3 622	14 600

The purpose of the note is to show the potential effect of netting agreements at the KLP Banken Group .
31.12.2021 NOK THOUSANDS				Related sums that are not presented net
	Gross financial assets/liabilites	Gross assets/ liabilities presented net	Book value	Financial instruments	Security in cash	Net recognised value
ASSETS
Financial derivatives	42 051	0	42 051	-9 200	0	32 851
Total	42 051	0	42 051	-9 200	0	32 851
LIABILITIES
Financial derivatives	9 990	0	9 990	-9 200	-3 628	0
Total	9 990	0	9 990	-9 200	-3 628	0
The note shows derivative positions in the financial position statement.

Note 9 Transactions with related parties

NOK THOUSANDS	Q1 2022	Q1 2021	01.01.2021 -31.12.2021
KLP, fees lending management	15 118	14 850	59 400
KLP Kapitalforvaltning AS, fees for services provided	0	0	-171
KLP, rent	-620	-666	-2 699
KLP Skipsbygget AS, rent	-434	-417	-1 727
KLP Bassengtomten AS, rent parking	-22	-22	-87
KLP Eiendomsdrift AS, cost office buildings	-242	-158	-366
KLP, pension premium	-3 582	-3 246	-13 140
KLP, staff services (at cost)	-19 155	-17 162	-68 399
KLP Group companies, subsidised interest employee loans	3 117	2 869	11 825

NOK THOUSANDS	31.03.2022	31.03.2021	31.12.2021
BALANCES
KLP, net internal accounts	-6 116	-870	-1 667
KLP, loan settlement	-4 215	-8 407	-1 333
KLP Group companies, net other internal accounts	1 053	968	1 046
Transactions with related parties are carried out at general market terms, with the exception of the company's share of common functions, which are allocated at cost. Allocation is based on actual use. All internal receivables are settled as they arise.

Note 10 Other assets

NOK THOUSANDS	31.03.2022	31.03.2021	31.12.2021
Intercompany receivables	2 200	2 095	2 196
Miscellaneous receivables	0	114	0
Prepaid expenses	129	0	21
Total other assets	2 329	2 209	2 217

Note 11 Other liabilities and provision for accrued costs

NOK THOUSANDS	31.03.2022	31.03.2021	31.12.2021
Creditors	895	3 196	2 867
Intercompany payables	11 478	10 404	4 150
Other liabilities	76 092	27 976	31 352
Total other liabilities	88 465	41 576	38 369
Withholding tax	1 741	1 632	2 813
Social security contributions	1 800	1 765	2 265
Capital activity tax	659	641	820
Holiday pay	7 920	7 485	6 273
Pension obligations	20 923	35 058	36 693
VAT	61	22	211
Provisioned costs	14 651	8 506	3 176
Total accrued costs and liabilities	47 755	55 109	52 249

Note 12 Capital adequacy

NOK THOUSANDS	31.03.2022	31.03.2021	31.12.2021
Share capital and share premium fund	1 890 000	1 890 000	1 890 000
Other owners' equity	602 142	536 801	630 782
Total owners' equity	2 492 142	2 426 801	2 520 782
Adjustments due to requirements for proper valuation	-6 051	-4 529	-6 001
Deduction goodwill and other intangible assets	-16 475	-17 751	-16 789
Deferred tax asset	-5 723	0	0
Core capital/Tier 1 capital	2 463 893	2 404 522	2 497 992
Supplementary capital/Tier 2 capital	0	0	0
Supplementary capital/Tier 2 capital	0	0	0
Total eligible own funds (Tier 1 and Tier 2 capital)	2 463 893	2 404 522	2 497 992
Capital requirement	1 090 942	998 309	1 070 801
Surplus of own funds (Tier 1 and Tier 2 capital)	1 372 951	1 406 213	1 427 191
Estimate basis credit risk:
Institutions	235 184	442 721	286 512
Retail	280 638	283 835	302 739
Local and regional authorities (incl. municipalities/county administations)	3 640 816	3 347 270	3 628 147
Investments with mortgage security in real estate	8 041 900	7 378 003	7 824 605
Investments fallen due	47 029	44 015	36 584
Covered bonds	508 578	227 361	498 905
Other holdings	197 735	113 975	131 535
Calculation basis credit risk	12 951 880	11 837 181	12 709 027
Credit risk	1 036 150	946 974	1 016 722
Operating risk	53 416	51 225	53 416
Credit valuation adjustments (CVA)	1 376	110	663
Total capital requirement assets	1 090 942	998 309	1 070 801
Core capital adequacy ratio	18.1 %	19.3 %	18.7 %
Supplementary capital ratio	0.0 %	0.0 %	0.0 %
Capital adequacy ratio	18.1 %	19.3 %	18.7 %
Leverage ratio	5.1 %	5.5 %	5.2 %

CAPITAL REQUIREMENT PER 31.03.2022	Core capital/Tier 1 capital	Supplementary capital/Tier 2 capital	Own funds
Minimum requirement excl. buffers	4.5 %	3.5 %	8.0 %
Protective buffer	2.5 %	0.0 %	2.5 %
Systemic risk buffer	3.0 %	0.0 %	3.0 %
Counter-cyclical capital buffer	1.0 %	0.0 %	1.0 %
Pilar 2-requirement	1.5 %	0.0 %	1.5 %
Current capital requirement incl. buffers	12.5 %	3.5 %	16.0 %
Capital requirement leverage ratio	3.0 %	0.0 %	3.0 %

Note 13 Fixed-income securities

NOK THOUSANDS	31.03.2022		31.03.2021		31.12.2021
	Acquisition cost	Market value	Acquisition cost	Market value	Acquisition cost	Market value
Certificates	523 201	523 241	608 842	608 837	567 264	567 443
Bonds	5 539 938	5 527 921	2 646 406	2 654 975	5 437 376	5 433 656
Total fixed-income securities	6 063 139	6 051 162	3 255 248	3 263 812	6 004 640	6 001 099
Fixed income securities are brought to account at market value, including accrued but not due interests.

Note 14 Loan loss provision

In the first quarter of 2022 the companies has made adjustments in the expected loss model for credit cards. Based on validation of the bank’s loss models, the loss rate for credit cards at stage 1 has been reduced, while the loss rate at stage 2 and 3 has been increased. The total provisions for expected loss shall be at the same level as before.

The total loan loss provisions in KLP Banken AS is nevertheless decreased by 17 percent and by 17 percent on the group level. The decrease is due to the fact that more credit cards are at level 1 then level 2 since the previous quarter, and that the individual loss write-downs have been reduced this quarter.

Refer to Note 10 and Note 2 in the annual report for more details of the model.

Expected credit loss (ECL) loans to customers - all segments

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Opening balance ECL 01.01.2022	4 346	282	1 753	6 382
Transfer to stage 1	70	-59	-11	0
Transfer to stage 2	-17	18	-1	0
Transfer to stage 3	-1	-24	25	0
Net changes	86	57	-448	-305
New losses	107	15	0	122
Write-offs	-305	-39	-186	-530
Change in risk model	-1 933	1 033	549	-351
Closing balance ECL 31.03.2022	2 353	1 283	1 681	5 317
Changes (01.01.2022 - 31.03.2022)	-1 993	1 001	-72	-1 065

Expected credit loss (ECL) loans to customers - mortgage

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Opening balance ECL 01.01.2022	159	121	1 497	1 776
Transfer to stage 1	5	-5	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	0	-8	8	0
Net changes	-51	22	-413	-442
New losses	31	15	0	47
Write-offs	-21	-35	-154	-211
Closing balance ECL 31.03.2022	122	110	937	1 170
Changes (01.01.2022 - 31.03.2022)	-37	-10	-559	-606

Expected credit loss (ECL) - public lending

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Opening balance ECL 01.01.2022	176	0	0	176
Transfer to stage 1	0	0	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	0	0	0	0
Net changes	-3	0	0	-3
New losses	5	0	0	5
Write-offs	-1	0	0	-1
Closing balance ECL 31.03.2022	177	0	0	177
Changes (01.01.2022 - 31.03.2022)	1	0	0	1

Expected credit loss (ECL) - credit card

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Opening balance ECL 01.01.2022	3 987	161	67	4 215
Transfer to stage 1	64	-57	-7	0
Transfer to stage 2	-17	18	-1	0
Transfer to stage 3	-1	-17	18	0
Net changes	95	35	-1	129
New losses	69	0	0	69
Write-offs	-276	-4	0	-280
Change in risk model	-1 882	1 033	567	-282
Closing balance ECL 31.03.2022	2 039	1 170	642	3 851
Changes (01.01.2022 - 31.03.2022)	-1 948	1 009	576	-364

Expected credit loss (ECL) loans to customers - senior loans

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Opening balance ECL 01.01.2022	19	0	0	19
Transfer to stage 1	0	0	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	0	0	0	0
Net changes	0	0	0	0
New losses	1	0	0	1
Write-offs	-1	0	0	-1
Closing balance ECL 31.03.2022	19	0	0	19
Changes (01.01.2022 - 31.03.2022)	0	0	0	0

Expected credit loss (ECL) loans to customers - overdrafts deposit accounts

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Opening balance ECL 01.01.2022	5	0	190	195
Transfer to stage 1	4	0	-4	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	0	0	0	0
Net changes	45	0	-34	11
Write-offs	-5	0	-32	-36
Change in risk model	-51	0	-18	-69
Closing balance ECL 31.03.2022	0	0	101	101
Changes (01.01.2022 - 31.03.2022)	-5	0	-89	-94

Book value of loans and receivables from customers - all segments

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Lending 01.01.2022	39 404 432	527 587	35 954	39 967 973
Transfer to stage 1	283 325	-283 017	-308	0
Transfer to stage 2	-22 213	22 277	-64	0
Transfer to stage 3	-4 695	-6 805	11 499	0
Net changes	-314 638	-3 434	-277	-318 349
New losses	3 903 818	1 636	0	3 905 454
Write-offs	-2 798 377	-56 138	-1 160	-2 855 675
Lending 31.03.2022	40 451 652	202 106	45 646	40 699 403

Book value of loans and receivables from customers - mortgages

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Lending 01.01.2022	19 782 618	524 203	33 565	20 340 386
Transfer to stage 1	281 967	-281 825	-142	0
Transfer to stage 2	-21 355	21 390	-35	0
Transfer to stage 3	-4 559	-6 259	10 817	0
Net change	-122 060	-3 226	345	-124 942
New lending	3 278 637	1 636	0	3 280 273
Write-offs	-2 622 110	-56 107	-1 129	-2 679 345
Lending 31.03.2022	20 573 139	199 813	43 422	20 816 373

Book value of loans and receivables from customers - public lending

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Lending 01.01.2022	17 875 934	0	0	17 875 934
Transfer to stage 1	0	0	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	0	0	0	0
Net change	-211 608	0	0	-211 608
New lending	515 344	0	0	515 344
Write-offs	-118 142	0	0	-118 142
Lending 31.03.2022	18 061 528	0	0	18 061 528

Book value of loans and receivables from customers - credit card

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Lending 01.01.2022	38 284	3 383	2 202	43 869
Transfer to stage 1	1 354	-1 192	-162	0
Transfer to stage 2	-858	886	-28	0
Transfer to stage 3	-136	-546	682	0
Net change	581	-208	-611	-238
New lending	860	0	0	860
Write-offs	-131	-31	0	-162
Lending 31.03.2022	39 953	2 293	2 082	44 329

Book value of loans to receivables from customers - senior loans

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Lending 01.01.2022	1 707 532	0	0	1 707 532
Transfer to stage 1	0	0	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	0	0	0	0
Net change	18 378	0	0	18 378
New lending	108 924	0	0	108 924
Write-offs	-57 989	0	0	-57 989
Lending 31.03.2022	1 776 845	0	0	1 776 845

Book value of loans to receivables from customers - overdraft deposit accounts

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Lending 01.01.2022	65	0	188	252
Transfer to stage 1	4	0	-4	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	0	0	0	0
Net change	71	0	-11	61
New lending	52	0	0	52
Write-offs	-5	0	-31	-37
Lending 31.03.2022	187	0	141	329

Exposure - unused credit

NOK THOUSANDS	12 months ECL	Lifetime ECL (not credit impaired)	Lifetime ECL (credit impaired)
	stage 1	stage 2	stage 3	Total stage 1-3
Lending 01.01.2022	1 158 308	62 601	153	1 221 062
Transfer to stage 1	8 058	-8 001	-57	0
Transfer to stage 2	-8 388	8 390	-3	0
Transfer to stage 3	-5	-31	36	0
Net change	10 146	1 588	166	11 900
New lending	70 360	0	0	70 360
Write-offs	-29 111	-315	0	-29 426
Lending 31.03.2022	1 209 368	64 232	295	1 273 895

Losses recognised in the profit and loss account consist of:

NOK THOUSANDS	Q1 2022	Q1 2021	01.01.2021 -31.12.2021
Change in loss provisions in stage 1, 2 and 3	623	-613	-2 509
Established losses	-707	-4	-356
Recovery for previously established losses	147	84	566
Total losses in the income statement	63	-533	-2 299

Note 15 Contingent liabilites

NOK THOUSANDS	31.03.2022	31.03.2021	31.12.2021
Credit facilities for lending not utilized	1 016 359	809 019	949 244
Credit facilities issued credit card	257 536	257 884	271 818
Loan promise	1 826 723	1 327 060	1 458 520
Total contingent liabilities	3 100 619	2 393 963	2 679 581

Credit facilities for lending not utilized: The ‘Fleksilån’ product is included here; this is a credit facility which allows the customer to borrow up to a specified credit limit.

Credit facilities issued credit card: Customers’ credit card limits are a contingent liability for the Bank, where the customer can choose to utilise the credit up to the allocated credit limit.

Loan commitment: The Bank issues funding certificates that customers can use in bidding procedures for home purchases. This also includes other loans that have been granted but not disbursed.

Note 16 Net gain/(loss) on financial instruments

NOK THOUSANDS	Q1 2022	Q1 2021	01.01.2021 -31.12.2021
Net gain/(loss) on fixed-income securities	-8 608	20 704	-3 395
Net gain/(loss) financial derivatives and realized amortization linked to lending	206	0	-750
Net gain/(loss) financial derivatives and realized repurchase of own debt	-1 463	-5 773	-28 146
Net value change lending and borrowing, hedge accounting	0	-222	336
Other financial income and expenses	-242	-242	-941
Total net gain/(loss) on financial instruments	-10 107	14 467	-32 896

Note 17 Leases

NOK THOUSANDS	31.03.2022	31.03.2021	31.12.2021
	Property
RIGHT-OF-USE ASSETS
Opening balance 01.01.	18 236	1 948	1 948
Depreciation	-468	-390	-1 636
Deduction	0	0	-779
Addition	0	0	18 703
Closing balance	17 768	1 558	18 236
LEASE LIABILITIES
Opening balance 01.01.	18 323	2 023	2 023
Repayments	-386	-397	-1 582
Deduction	0	0	-821
Addition	0	0	18 703
Closing balance	17 938	1 626	18 323

NOK THOUSANDS	Q1 2022	Q1 2021	01.01.2021 -31.12.2021
	Property
Interest expense lease liabilities	83	9	109
Interest expense lease liabilities	83	9	109
In the fourth quarter of 2021, a new 10-year lease has been capitalized. It is an intercompany lease for the rental of office premises with KLP Eiendom.

Note 18 Pension obligations - own employees

NOK THOUSANDS	31.03.2022	31.03.2021	31.12.2021
Capitalized net liability	36 693	41 550	41 550
Pension costs taken to profit/loss	3 582	3 246	12 983
Finance costs taken to profit/loss	242	243	942
Actuarial gains and losses incl. social security contributions	-18 113	-7 732	-7 136
Premiums/supplement paid-in including admin	-1 480	-2 249	-11 646
Capitalized net liability	20 923	35 058	36 693

ASSUMPTIONS	31.03.2022	31.03.2021	31.12.2021
Discount rate	2.70%	2.00%	1.90 %
Salary growth	2.75%	2.25%	2.75 %
The National Insurance basic amount (G)	2.50%	2.00%	2.50 %
Pension increases	1.75%	1.24%	1.75 %
Social security contribution	14.10%	14.10%	14.10 %
Capital activity tax	5.00%	5.00%	5.00 %
The effect of changes in the assumptions is a reduction of the obligation by NOK 18.1 million as of 31.03.2022. The change is recognized in comprehensive income.

Quarterly earnings trend

NOK MILLIONS	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021
Interest income	206.4	185.2	166.5	170.2	167.9
Interest expense	-134.3	-109.4	-86.6	-93.1	-92.1
Net interest income	72.1	75.8	80.0	77.1	75.7
Commision income and income from banking services	5.7	6.0	5.7	5.2	4.6
Commision cost and cost from banking services	-0.5	-0.6	-0.6	-0.5	-0.4
Net charges and commission income	5.2	5.4	5.2	4.7	4.2
Other fee income	15.1	14.9	14.9	14.9	14.9
Net gain/(loss) financial instruments	-10.1	-9.4	-4.9	-33.0	14.5
Total other operating income	5.0	5.4	10.0	-18.2	29.3
Salaries and administrative costs	-21.8	-23.5	-17.7	-20.5	-20.3
Depreciation	-1.0	-1.4	-1.7	-1.7	-1.7
Other operating expenses	-41.2	-38.4	-36.1	-35.2	-38.1
Net loan losses	0.1	-1.0	-0.2	-0.6	-0.5
Total operating expenses	-64.0	-64.3	-55.6	-58.0	-60.6
Operating profit/loss before tax	18.3	22.4	39.5	5.7	48.6
Tax ordinary income	24.3	-5.2	-9.2	-1.3	15.4
Profit/loss for the period	42.6	17.1	30.2	4.4	64.0
Other comprehensive income	18.1	18.7	-19.3	0.0	7.7
Tax on other comprehensive income	-4.5	-4.7	4.8	0.0	-1.9
Other comprehensive income for the period	13.6	14.0	-14.5	0.0	5.8
Comprehensive income for the period	56.2	31.1	15.8	4.4	69.8

Key figures – accumulated

NOK MILLIONS	Q1 2022	Q4 2021	Q3 2021	Q2 2021	Q1 2021
Pre-tax income	18.3	116.1	93.8	54.3	48.6
Net interest income	72.1	308.6	232.8	152.8	75.7
Other operating income	20.3	78.9	58.6	38.6	19.0
Other operating cost and depreciation	-64.0	-238.5	-174.2	-118.6	-60.6
Net gain/(loss) financial instruments	-10.1	-32.9	-23.5	-18.6	14.5
Deposits	13 372.2	12 901.0	12 773.7	12 642.6	12 103.2
Lending customers	22 635.4	22 089.7	21 364.8	21 409.3	20 893.9
Lending with public sector guarantee	17 974.4	17 844.4	16 842.2	16 752.1	16 734.4
Non-performing loans	45.6	36.0	31.5	34.1	57.0
Total liabilities created on issuance of securities	31 862.2	31 917.8	29 535.7	29 194.6	27 147.4
Other borrowing	0.0	0.0	0.0	701.8	1 303.2
Total assets	47 954.0	47 481.9	44 980.2	45 215.6	43 200.4
Average total assets	47 717.9	45 084.9	43 834.1	43 951.8	42 944.2
Equity	2 548.3	2 520.8	2 489.7	2 473.9	2 469.5
Interest net	0.15 %	0.68 %	0.53 %	0.35 %	0.18 %
Profit/loss from ordinary operation before taxes	0.04 %	0.26 %	0.21 %	0.12 %	0.11 %
Return on equity	2.91 %	4.78 %	5.15 %	4.47 %	8.02 %
Capital adequacy ratio	18.1 %	18.7 %	18.6 %	18.4 %	19.3 %
Liquidity coverage ratio (LCR)	242 %	495 %	353 %	438 %	371 %

Contact information

KLP BANKEN AS

Beddingen 8

7042 Trondheim

Organisation number: 993 821 837

Visitors adress, Trondheim:
Beddingen 8

Visitors adress, Oslo:

Dronning Eufemias gate 10

Klpbanken.no

Phone: +47 55 54 85 00

klpbanken@klp.no