The Company's purpose is to finance KLP Banken’s mortgage loans at preferable terms, mainly through the issuance of covered bonds.
KLP Boligkreditt AS is a wholly owned subsidiary of KLP Banken AS. KLP Banken AS is owned by Kommunal Landspensjonskasse gjensidig forsikringsselskap (KLP).
Income statement
The operating profit before tax for the second quarter was NOK 14.9 (5.0) million. Year-to-date, the profit before tax is NOK 22.9 (10.3) million. The change in profit is mainly due to growth in net interest income and reduced negative effects from financial instruments.
Net interest and credit commission income for the second quarter was NOK 53.5 (43.9) million. The change is mainly related to higher interest rates and slightly higher average loan margins. Higher interest rates increase the interest income on equity-financed lending.
Net effects of financial instruments at the end of the quarter were NOK 0.1 (-3.1) million. This mainly includes losses on liquidity placements and costs associated with the repurchase of borrowings. Realized and unrealized changes in the value of the liquidity portfolio have resulted in an effect of NOK 1.6 (-1.1) million. The restructuring of the borrowing portfolio is done regularly to adjust the average maturity. This can result in both losses and gains. Accounting effects due to the repurchase of own debt amount to a total of NOK -1.5 (-2.0) million so far this year.
Operating costs for the second quarter were NOK -30.6 (-30.5) million. The company has not had any loan losses and has very low loss provisions.
Lending and total assets
The company’s loans to customers as of 30 June 2024 amounted to NOK 12.6 (12.6) billion. Loans from the parent company KLP Banken AS amounting to NOK 1.6 (2.4) billion were purchased in the first half of the year. Total assets were NOK 13.8 (13.6) billion.
Liquid investments
KLP Boligkreditt AS has strict requirements for the assets that can be included in the security holdings. In addition to mortgage loans, the security holdings consist of securities and deposits in other banks. The securities consist of certificates and bonds with very high credit quality, mainly investments in covered bonds. As of 30 June 2024, the company’s interest-bearing securities had a market value of NOK 0.8 (0.6) billion.
Borrowing
The company’s external financing consists of issued 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 11.1 (12.0) billion. New covered bonds amounting to NOK 1.0 billion have been issued so far this year. Net repurchase of previous issues amounted to NOK 1.0 billion. All OMF issuances have an Aaa rating from Moody’s.
Risk and capital adequacy
KLP Boligkreditt AS has established a risk management framework to ensure that risks are identified, analyzed, and managed through guidelines, frameworks, routines, and instructions. The company should have a cautious risk profile, and earnings should primarily result from lending and borrowing activities as well as liquidity management. This means that the company should have low market risk. Interest rate risk arising from lending and borrowing activities is reduced using derivatives. The company should have sufficient long-term financing within established frameworks. The credit risk in the company is very low, and the company’s loans are limited to those secured by residential property. The company’s liquidity is placed in banks with high credit quality requirements and in securities in line with board-approved credit lines.
Core capital according to capital adequacy rules at the end of the second quarter of 2024 was NOK 1 027 (919) million. Core capital was increased by NOK 100 million in the first half of the year. Loans for residential purposes are risk-weighted at 35 percent according to government regulations for capital adequacy. KLP Boligkreditt AS has a core capital ratio and capital adequacy ratio of 20.9 (19.6) percent per the second quarter. The minimum requirement for total capital adequacy is 17.5 percent. The leverage ratio was 7.5 (6.8) percent. The requirement here is 3.0 per cent.
Future prospects
KLP Boligkreditt AS is part of the financing structure within the KLP Banken Group.
Norwegian society is still experiencing a period of macroeconomic uncertainty, which also affects households. High price growth and increased interest rates are particularly noticeable in people’s personal finances. KLP Banken’s member customers, who are mainly public sector employees and their households, are more shielded from employment-related risks compared to other groups, as they are employed by municipalities and health enterprises. KLP Banken therefore assumes that the risk of default and loss will remain limited in the future.
KLP Boligkreditt AS is licensed as a mortgage credit institution and will continue to develop by purchasing loans from KLP Banken AS or KLP. The business will primarily be financed through the issuance of covered bonds (OMF) in a security holding consisting residential mortgages. The company aims to contribute to reducing the bank group’s borrowing costs and thus be an important contributor to the financing of residential mortgages for KLP’s members.
The board believes that there is potential for further development of the company and that a significant portion of KLP Banken’s loans for residential purposes can be financed by KLP Boligkreditt AS, including financing forms that contribute positively to the environment and sustainability.
Trondheim, 14 August 2024
AAGE E. SCHAANNING
JANICKE E. FALKENBERG
Chair
LILL STABELL
JONAS V. KÅRSTAD
CHRISTOPHER A. N. STEEN
Managing Director
Statement pursuant to section § 5-6 of the securities trading act
KLP Boligkreditt AS
We hereby confirm that the half yearly financial statement for the company for the period 1 January through 30 June 2024 to the best of our knowledge have been prepared in accordance with current applicable accounting standards, and give a true and fair view of the assets, liabilities, financial position and profit or loss of the company taken as a whole.
To the best of our knowledge, the half-yearly report gives a true and fair overview of important events that occurred during the accounting period and their impact on the half-yearly financial statement, and a description of the principal risks and uncertainties facing the company over the next accounting period.
Trondheim, 14 August 2024
AAGE E. SCHAANNING
JANICKE E. FALKENBERG
Chair
LILL STABELL
JONAS V. KÅRSTAD
CHRISTOPHER A. N. STEEN
Managing Director
Income statementKLP Boligkreditt AS
NOTE
NOK THOUSANDS
Q2 2024
Q2 2023
01.01.2024 -30.06.2024
01.01.2023 -30.06.2023
01.01.2023 -31.12.2023
Interest income, effective interest method
173 630
137 529
348 709
266 256
591 812
Other interest income
10 316
6 331
18 091
16 493
31 295
3
Total interest income
183 946
143 860
366 799
282 749
623 106
Interest expense, effective interest method
-155 938
-124 049
-313 293
-238 870
-542 313
3
Total interest expense
-155 938
-124 049
-313 293
-238 870
-542 313
3
Net interest income
28 008
19 810
53 506
43 879
80 793
15
Net gain/(loss) on financial instruments
427
-467
71
-3 051
-3 733
Total net gain/(loss) on financial instruments
427
-467
71
-3 051
-3 733
Other operating expenses
-13 562
-14 373
-30 641
-30 545
-62 162
16
Net loan losses
63
12
-3
37
3
Total operating expenses
-13 500
-14 360
-30 644
-30 508
-62 159
Operating profit/loss before tax
14 935
4 984
22 934
10 320
14 901
Tax ordinary income
-2 235
-1 096
-2 944
-2 270
-3 278
Profit for the period
12 700
3 887
19 989
8 050
11 623
Other comprehensive income for the period
0
0
0
0
0
Comprehensive income for the period
12 700
3 887
19 989
8 050
11 623
BalanceKLP Boligkreditt AS
NOTE
NOK THOUSANDS
30.06.2024
30.06.2023
31.12.2023
ASSETS
5
Loans to credit institutions
375 319
336 283
469 974
4,5
Loans to customers
12 556 901
12 597 524
12 745 448
5,6,14
Fixed-income securities
809 452
641 846
516 406
11
Other assets
20 243
23 925
4 296
Total assets
13 761 916
13 599 578
13 736 124
LIABILITIES AND OWNERS EQUITY
LIABILITIES
5,9
Debt to credit institutions
1 551 635
619 485
1 686 316
5,7
Debt securities issued
11 148 785
12 040 413
11 105 128
Deferred tax liabilities
3 335
4 259
7 537
12
Other liabilities
10 654
7 275
5 424
Total liabilities
12 714 409
12 671 432
12 804 406
EQUITY
Share capital
430 000
380 000
380 000
Share premium
530 463
480 463
480 463
Other owners' equity
67 054
59 633
71 256
Unallocated profit/loss
19 989
8 050
0
Total owners' equity
1 047 507
928 146
931 719
Total liabilities and equity
13 761 916
13 599 578
13 736 124
Statement of changes in equityKLP Boligkreditt AS
2024 NOK THOUSANDS
Share capital
Share premium
Other equity
Total owners' equity
Equity 1 January 2024
380 000
480 463
71 256
931 719
Profit for the period
0
0
19 989
19 989
Other comprehensive income
0
0
0
0
Total comprehensive income for the period
0
0
19 989
19 989
Group contribution received
0
0
14 898
14 898
Group contribution made
0
0
-19 100
-19 100
Paid-up equity for the period
50 000
50 000
0
100 000
Total transactions with the owners
50 000
50 000
-4 202
95 798
Equity 30 June 2024
430 000
530 463
87 044
1 047 507
2023 NOK THOUSANDS
Share capital
Share premium
Other equity
Total owners' equity
Equity 1 January 2023
380 000
480 463
59 633
920 096
Profit for the period
0
0
8 050
8 050
Other comprehensive income
0
0
0
0
Total comprehensive income for the period
0
0
8 050
8 050
Group contribution received
0
0
0
0
Group contribution made
0
0
0
0
Total transactions with the owners
0
0
0
0
Equity 30 June 2023
380 000
480 463
67 683
928 146
2023 NOK THOUSANDS
Share capital
Share premium
Other equity
Total owners' equity
Equity 1 January 2023
380 000
480 463
59 633
920 096
Income for the year
0
0
11 623
11 623
Other comprehensive income
0
0
0
0
Total comprehensive income for the period
0
0
11 623
11 623
Group contribution received
0
0
0
0
Group contribution made
0
0
0
0
Total transactions with the owners
0
0
0
0
Equity 31 December 2023
380 000
480 463
71 256
931 719
Statement of cash flowKLP Boligkreditt AS
NOK THOUSANDS
01.01.2024 -30.06.2024
01.01.2023 -30.06.2023
01.01.2023 -31.12.2023
OPERATING ACTIVITIES
Payments received from customers - interest, commission & charges
341 157
258 563
567 810
Disbursements on loans customers & credit institutions
-1 613 741
-2 426 781
-4 538 968
Receipts on loans customers & credit institutions
1 784 313
2 107 651
4 098 045
Disbursements on operations
-32 427
-31 706
-61 722
Net receipts/disbursements from operating activities
4 068
6 321
1 547
Net interest investment accounts
8 797
6 015
14 873
Net cash flow from operating activities
492 166
-79 938
81 586
INVESTMENT ACTIVITIES
Payments on the purchase of securities
-330 128
-178 853
-219 829
Receipts on sale of securities
40 000
958 154
1 125 861
Receipts of interest from securities
16 767
18 310
33 063
Net cash flow from investment activities
-273 362
797 610
939 094
FINANCING ACTIVITIES
Receipts on loans from credit institutions
1 000 000
1 000 000
1 000 000
Repayment and redemption of loans
0
-2 000 000
-2 000 000
Change in securities debt, own funds
-956 960
399 629
-548 349
Net payment of interest on loans
-287 770
-227 489
-500 708
Receipts in internal funding
1 816 710
2 630 435
6 783 028
Repayment in internal funding
-1 950 729
-2 535 597
-5 623 737
Net payment of interest on internal funding
-27 108
-6 427
-23 558
Change in owners' equity
100 000
0
0
Group contribution paid
-4 202
0
0
Net cash flows from financing activities
-310 059
-739 449
-913 325
Net cash flow during the period
-91 254
-21 777
107 355
Cash and cash equivalents at the start of the period
456 573
349 219
349 219
Cash and cash equivalents at the end of the period
365 319
327 442
456 573
Net receipts/disbursements
-91 254
-21 777
107 355
Notes to the accountsKLP Boligkreditt AS
Note 1 General information
KLP Boligkreditt AS was formed on 30 October 2013. The company is a housing credit enterprise, and finance the activity primary through issuing covered bonds (OMF).
KLP Boligkreditt AS is registered and domiciled in Norway. Its head office is at Beddingen 8 in Trondheim, with a branch office in Dronning Eufemiasgate 10, Oslo.
The company is a wholly owned subsidiary of KLP Banken AS which is in turn wholly owned by Kommunal Landspensjonskasse (KLP). KLP is a mutual insurance company.
Note 2 Accounting Principles
The interim report includes the interim Financial Statements of KLP Boligkreditt AS for the period 1 January 2024 – 30 June 2024, specifying the earnings trend in Q2. The interim Financial Statements has not been audited.
The financial statements for KLP Boligkreditt AS have been prepared in accordance with IFRS Accounting Standards®) as adopted by the EU with some additions that follow The Norwegian Accounting Act and the Regulations concerning annual accounts for banks, mortgage firms and finance companies (the Accounting Regulations). The interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting".
Other accounting principles and calculations are the same in the interim financial statement as in the annual report for 2023, please see the annual report for further information.
Note 3 Net interest income
NOK THOUSANDS
Q2 2024
Q2 2023
01.01.2024 -30.06.2024
01.01.2023 -30.06.2023
01.01.2023 -31.12.2023
Interest income on loans to customers
169 397
134 037
339 244
260 026
576 938
Interest income on loans to credit institutions
4 233
3 492
9 465
6 229
14 873
Total interest income, effective interest method
173 630
137 529
348 709
266 256
591 812
Interest income on bonds and certificates
10 316
6 331
18 091
16 493
31 295
Total other interest income
10 316
6 331
18 091
16 493
31 295
Total interest income
183 946
143 860
366 799
282 749
623 106
Interest expenses on debt from KLP Banken AS
-13 150
-3 509
-26 446
-6 619
-26 129
Interest expenses on issued securities
-142 788
-120 540
-286 848
-232 251
-516 185
Total interest expenses, effective interest method
-155 938
-124 049
-313 293
-238 870
-542 313
Total interest expense
-155 938
-124 049
-313 293
-238 870
-542 313
Net interest income
28 008
19 810
53 506
43 879
80 793
Note 4 Loans to customers
NOK THOUSANDS
30.06.2024
30.06.2023
31.12.2023
Loans to customers before write-downs
12 530 604
12 576 942
12 717 235
Provisions and write-downs
-66
-29
-62
Loans to customers after write-downs
12 530 539
12 576 914
12 717 173
Accrued interest
26 363
20 611
28 276
Loans to customers
12 556 901
12 597 524
12 745 448
Note 5 Categories of financial instruments
NOK THOUSANDS
30.06.2024
30.06.2023
31.12.2023
Capitalized value
Fair value
Capitalized value
Fair value
Capitalized value
Fair value
FINANCIAL ASSETS AT FAIR VALUE
Fixed-income securities
809 452
809 452
641 846
641 846
516 406
516 406
Total financial assets at fair value
809 452
809 452
641 846
641 846
516 406
516 406
FINANCIAL ASSETS AT AMORTIZED COST
Loans to and receivables from credit institutions
375 319
375 319
336 283
336 283
469 974
469 974
Loans to and receivables from customers
12 556 901
12 556 901
12 597 524
12 597 524
12 745 448
12 745 448
Total financial assets at amortized cost
12 932 221
12 932 221
12 933 807
12 933 807
13 215 422
13 215 422
Total financial assets
13 741 673
13 741 673
13 575 653
13 575 653
13 731 829
13 731 829
FINANCIAL LIABILITIES AT AMORTIZED COST
Liabilities to credit institutions
1 551 635
1 551 635
619 485
619 485
1 686 316
1 686 316
Covered bonds issued
11 148 785
11 176 836
12 040 413
12 004 601
11 105 128
11 102 781
Total financial liabilities at amortized cost
12 700 420
12 728 471
12 659 898
12 624 085
12 791 444
12 789 097
Total financial liabilities
12 700 420
12 728 471
12 659 898
12 624 085
12 791 444
12 789 097
Fair value shall be a representative price based on what a corresponding asset or liability would have been traded for on normal market terms and conditions. A financial instrument is considered to be listed in an active market if the listed price is simply and regularly available from a stock market, dealer, broker, industry grouping, price setting service or regulatory authority, and these prices represent actual and regularly occurring transactions at arm’s length. If the market for the security is not active, or the security is not listed on a stock market or similar, valuation techniques are used to set fair value. These are based for example on information on recently completed transactions carried out on business terms and conditions, reference to trading in similar instruments and pricing using externally collected yield curves and yield spread curves. As far as possible the estimates are based on externally observable market data and rarely on company-specific information.
The different financial instruments are thus priced in the following way:
Fixed-income securities - government
Nordic Bond pricing is used as a source for pricing Norwegian government bonds.
Fixed-income securities - other than government
Norwegian fixed-income securities are generally priced based on rates from Nordic Bond Pricing. Securities not covered by Nordic Bond Pricing are priced theoretically. The theoretical price should be based on the discounted value of the security's future cash flows. Discounting is done using a swap curve adjusted for credit spread and liquidity spread. The credit spread should, to the extent possible, be based on a comparable bond from the same issuer. Liquidity spread is determined at the discretion of the evaluator.
Fair value of loans to retail costumers
Fair value of lending without fixed interest rates is considered virtually the same as book value since the contract terms are continuosly changed in step with market interest rates. Fair value of fixed rate loans is calculated by discounting contractual cash flows by the marked rate including a relevant risk margin on the reporting date.
Fair value of loans to and receivables from credit institutions
All receivables from credit institutions (bank deposits) are at variable interest rates. Fair value of these is considered virtually the same as book value since the contract terms are continuously changed in step with marked interest rates.
Fair value of liabilities to credit institutions
These transactions are valued using a valuation model, including relevant credit spread adjustments obtained from the market.
Liabilities created on issuance of covered bonds
Fair value in this category is determined on the basis of internal valuation models based on external observable data.
Note 6 Fair value hierarchy
30.06.2024 NOK THOUSANDS
Level 1
Level 2
Level 3
Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities
19 816
789 636
0
809 452
Total assets at fair value
19 816
789 636
0
809 452
30.06.2023 NOK THOUSANDS
Level 1
Level 2
Level 3
Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities
19 844
622 002
0
641 846
Total assets at fair value
19 844
622 002
0
641 846
31.12.2023 NOK THOUSANDS
Level 1
Level 2
Level 3
Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities
19 815
496 592
0
516 406
Total assets at fair value
19 815
496 592
0
516 406
Fair value shall be a representative price based on what a corresponding asset or liability would have been traded for at normal market terms and conditions. Highest quality in regard to fair value is based on listed prices in an active market. A financial instrument is considered as listed in an active market if listed prices are simply and regularly available from a stock market, dealer, broker, industry group, price-setting service or regulatory authority, and these prices represent actual and regularly occurring transactions at arm's length.
Level 1: Instruments at this level obtain fair value from listed prices in an active market for identical assets or liabilities to which the entity has access at the reporting date. Examples of instruments in Level 1 are stock market listed securities.
Level 2: Instruments at this level obtain fair value from observable market data. This includes prices based on identical instruments, but where the instrument does not maintain a high enough trading frequency and is not therefore considered to be traded in an active market, as well as prices based on corresponding assets and price-leading indicators that can be confirmed from market information. Example instruments at Level 2 are fixed-income securities priced on the basis of interest rate paths.
Level 3: Instruments at Level 3 contain non-observable market data or are traded in markets considered to be inactive. The price is based generally on discrete calculations where the actual fair value may deviate if the instrument were to be traded.
Note 5 discloses the fair value of financial assets and financial liabilities that are recognized at amortized cost. Financial assets measured at amortized cost comprise lending to and due to credit institutions, and retail customers. The stated fair value of these assets is determined on terms qualifying for level 2. Financial liabilities recognized at amortized cost consist of debt securities issued. The stated fair value of these liabilities is determined by methods qualifying for level 2.
There have been no transfers between Level 1 and Level 2.
Interest rate on borrowings through the issuance of securities on the reporting date:
5.08%
4.33%
5.07%
The interest rate is calculated as a weighted average of the act/360 basis. It includes interest rate effects and amortization costs.
NOK THOUSANDS
Balance sheet 31.12.2023
Issued
Matured/ redeemed
Other adjustments
Balance sheet 30.06.2024
Bond debt, nominal amount
12 000 000
1 000 000
0
0
13 000 000
Adjustments
-3 151
0
0
-1 006
-4 156
Accured interest
54 278
0
0
-337
53 942
Own holdings, nominal amount
-946 000
0
-955 000
0
-1 901 000
Total debt securities issued
11 105 128
1 000 000
-955 000
-1 342
11 148 785
Note 8 Over-collateralisation
NOK THOUSANDS
30.06.2024
30.06.2023
31.12.2023
SECURITY POOL
Loans to customers ¹
12 536 163
12 570 737
12 689 403
Additional collateral ²
2 986 673
877 253
1 833 583
Total security pool
15 522 835
13 447 990
14 522 986
Outstanding covered bonds incl. own funds and premium/discount
13 080 638
12 004 601
12 050 920
Coverage of the security pool
118.7%
112.0%
120.5%
¹ Excluding mortgage loans that do not qualify for security pool.
² Additional collateral includes loans to and receivables from credit institutions and bonds and certificates. Liquid assets used in the LCR liquidity reserve are not included in additional collateral.
Section 11-7 of the Regulations on Financial Institutions lays down a requirement for over-collateralisation by at least 5 percent of the value of the outstanding covered bonds.
Note 9 Liabilities to credit institutions
30.06.2024 NOK THOUSANDS
Due date
Nominal
Accrued interest
Book value
Debt to KLP Banken AS
15.12.2025
1 050 000
1 637
1 051 637
Debt to KLP Banken AS
15.12.2025
399 307
534
399 841
Debt to KLP Banken AS
15.12.2025
100 000
156
100 156
Total liabilities to credit institutions
1 549 307
2 327
1 551 635
Interest rate on debt to credit institutions at the reporting date:
4.01%
The interest rate is calculated as a weighted average of the act/360 basis.
30.06.2023 NOK THOUSANDS
Due date
Nominal
Accrued interest
Book value
Debt to KLP Banken AS
16.12.2024
197 967
245
198 213
Debt to KLP Banken AS
16.12.2024
170 000
211
170 211
Debt to KLP Banken AS
16.12.2024
250 906
156
251 061
Total liabilities to credit institutions
618 873
612
619 485
Interest rate on debt to credit institutions at the reporting date:
2.79 %
31.12.2023 NOK THOUSANDS
Due date
Nominal
Accrued interest
Book value
Debt to KLP Banken AS
15.12.2025
1 537 488
2 817
1 540 306
Debt to KLP Banken AS
15.12.2025
145 838
173
146 011
Total liabilities to credit institutions
1 683 326
2 990
1 686 316
Interest rate on debt to credit institutions at the reporting date:
3.88 %
Note 10 Transactions with related parties
NOK THOUSANDS
01.01.2024 -30.06.2024
01.01.2023 -30.06.2023
01.01.2023 -31.12.2023
KLP Banken AS, interest on borrowing
-26 446
-6 619
-26 129
KLP Banken AS, interest on deposits
5 156
3 690
8 646
KLP Banken AS, administrative services (at cost)
-28 585
-28 363
-56 169
KLP Kapitalforvaltning AS, fees for services provided
0
0
-20
KLP Group companies, subsidised interest employee loans
3 590
4 693
9 988
KLP Banken AS, purchase of loans
-1 613 741
-2 426 781
-4 538 968
NOK THOUSANDS
30.06.2024
30.06.2023
31.12.2023
BALANCES
KLP Banken AS, borrowing Group current liabilities
-1 551 635
-619 485
-1 686 316
KLP Banken AS, deposit
219 031
208 919
213 875
KLP Banken AS, net internal liabilities
17 837
20 270
1 778
Net outstanding accounts to:
KLP Banken AS
-3 435
-4 895
-5 316
KLP
964
1 505
1 608
KLP Group companies, net other internal accounts
486
893
890
There are no direct salary cost in KLP Boligkreditt AS. Personnel costs (administrative services) are allocated from KLP Banken AS.
Transactions with related parties are carried out at general market terms, with the exception of the Company's share of common functions, which is allocated at cost. Allocation is based on actual use. All internal receivables are settled as they arise.
Note 11 Other assets
NOK THOUSANDS
30.06.2024
30.06.2023
31.12.2023
Intercompany receivables
19 288
22 667
4 296
Prepaid expenses
956
1 258
0
Total other assets
20 243
23 925
4 296
Note 12 Other liabilities and provision for accrued costs
NOK THOUSANDS
30.06.2024
30.06.2023
31.12.2023
Creditors
73
109
88
Intercompany payables
3 435
4 895
5 336
Other liabilities
7 146
2 270
0
Total other liabilities
10 654
7 275
5 424
Note 13 Capital adequacy
NOK THOUSANDS
30.06.2024
30.06.2023
31.12.2023
Share capital and share premium fund
960 463
860 463
860 463
Other owners' equity
67 054
59 633
71 256
Total owners' equity
1 027 518
920 097
931 719
Adjustments due to requirements for proper valuation
-809
-642
-516
Core capital/Tier 1 capital
1 026 708
919 455
931 203
Supplementary capital/Tier 2 capital
0
0
0
Supplementary capital/Tier 2 capital
0
0
0
Total eligible own funds (Tier 1 and Tier 2 capital)
1 026 708
919 455
931 203
Capital requirement
393 068
375 547
397 569
Surplus of own funds (Tier 1 and Tier 2 capital)
633 640
543 907
533 634
Estimate basis credit risk:
Institutions
78 824
71 612
94 672
Retail
392 939
0
401 637
Investments with mortgage security in real estate
4 211 929
4 409 133
4 273 476
Covered bonds
78 964
62 200
49 659
Other holdings
1 442
2 151
910
Calculation basis credit risk
4 764 097
4 545 096
4 820 354
Credit risk
381 128
363 608
385 628
Operating risk
11 940
11 940
11 940
Total capital requirement assets
393 068
375 547
397 569
Core capital adequacy ratio
20.9 %
19.6 %
18.7 %
Supplementary capital ratio
0.0 %
0.0 %
0.0 %
Capital adequacy ratio
20.9 %
19.6 %
18.7 %
Leverage ratio
7.5 %
6.8 %
6.8 %
CAPITAL REQUIREMENT PER 30.06.2024
Core capital/ Tier 1 capital
Supplementary capital/Tier 2 capital
Own funds
Minimum requirement excl. buffers
4.5 %
3.5 %
8.0 %
Protective buffer
2.5 %
0.0 %
2.5 %
Systemic risk buffer
4.5 %
0.0 %
4.5 %
Counter-cyclical capital buffer
2.5 %
0.0 %
2.5 %
Current capital requirement including buffers
14.0 %
3.5 %
17.5 %
Capital requirement leverage ratio
3.0 %
0.0 %
3.0 %
Note 14 Fixed-income securities
NOK THOUSANDS
30.06.2024
30.06.2023
31.12.2023
Acquisition cost
Market value
Acquisition cost
Market value
Acquisition cost
Market value
Certificates
19 788
19 816
19 830
19 844
0
0
Bonds
783 888
789 636
619 689
622 002
513 138
516 406
Total fixed-income securities
803 676
809 452
639 519
641 846
513 138
516 406
Fixed income securities are brought to account at market value, including accrued but not due interests.
Note 15 Net gain/(loss) on financial instruments
NOK THOUSANDS
Q2 2024
Q2 2023
01.01.2024 -30.06.2024
01.01.2023 -30.06.2023
01.01.2023 -31.12.2023
Net gain/(loss) on fixed-income securities
607
-329
1 611
-1 083
179
Net gain/(loss) financial derivatives and realized repurchase of own debt
-180
-138
-1 540
-1 968
-3 912
Total net gain/(loss) financial instruments
427
-467
71
-3 051
-3 733
Note 16 Loan loss provision
The company has updated the weight of the different stress scenarios. The weight of the negative scenario has been reduced and the weight of the positive scenario has been increased.
The total loan loss provisions have been reduced since first quarter of 2024. Although the percentage increase is large, the amounts involved are relatively small in relation to the total lending volume. The decrease is NOK 63 000.
Refer to Note 8 and Note 2 in the annual report for more details of the model.
NOK THOUSANDS
12-month ECL stage 1
Lifetime ECL not credit impaired stage 2
Lifetime ECL credit impaired stage 3
Total
EXPECTED CREDIT LOSS (ECL) - LOANS TO CUSTOMERS - MORTGAGE
Opening balance ECL 01.01.2024
41
22
0
63
Transfers to stage 1
2
-2
0
0
Transfers to stage 2
-7
7
0
0
Transfers to stage 3
0
0
0
0
Net changes
2
16
0
18
New losses
3
0
0
3
Write-offs
-5
-1
0
-6
Change in risk model
-6
-6
0
-12
Closing balance ECL 30.06.2024
31
35
0
66
Changes (01.01.2024-30.06.2024)
-10
13
0
3
NOK THOUSANDS
12-month ECL stage 1
Lifetime ECL not credit impaired stage 2
Lifetime ECL credit impaired stage 3
Total
VALUE OF LENDING AND RECEIVABLES FOR CUSTOMERS RECOGNISED IN THE BALANCE SHEET - MORTGAGE
Lending 01.01.2024
12 434 702
310 809
0
12 745 511
Transfers to stage 1
70 386
-70 386
0
0
Transfers to stage 2
-165 651
165 651
0
0
Transfers to stage 3
0
0
0
0
Net changes
-263 114
-3 940
0
-267 054
New lending
1 497 094
0
0
1 497 094
Write-offs
-1 384 702
-33 883
0
-1 418 585
Lending 30.06.2024
12 188 715
368 252
0
12 556 967
Quarterly earnings trend
NOK MILLIONS
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Interest income
183.9
182.9
179.0
161.3
143.9
Interest expense
-155.9
-157.4
-157.3
-146.2
-124.0
Net interest income
28.0
25.5
21.7
15.2
19.8
Net gain/ (loss) on financial instruments
0.4
-0.4
0.1
-0.8
-0.5
Total net gain/(loss) on financial instruments
0.4
-0.4
0.1
-0.8
-0.5
Other operating expenses
-13.5
-17.1
-15.2
-16.4
-14.4
Total operating expenses
-13.5
-17.1
-15.2
-16.4
-14.4
Operating profit/loss before tax
14.9
8.0
6.6
-2.0
5.0
Tax ordinary income
-2.2
-0.7
-1.5
0.4
-1.1
Profit for the period
12.7
7.3
5.2
-1.6
3.9
Key figures accumulated
NOK MILLIONS
Q2 2024
Q1 2024
Q4 2023
Q3 2023
Q2 2023
Pre-tax income
22.9
8.0
14.9
8.3
10.3
Net interest income
53.5
25.5
80.8
59.0
43.9
Other operating expenses
-30.6
-17.1
-62.2
-46.9
-30.5
Net gain/ (loss) financial instruments
0.1
-0.4
-3.7
-3.8
-3.1
Housing mortgage lending
12 556.9
12 533.6
12 745.4
12 627.9
12 597.5
Non-performing loans
0.0
0.0
0.0
0.0
0.0
Total liabilities created on issuance of securities