The Company's purpose is to finance KLP Banken’s residential mortgages on favorable terms, primarily 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
Operating profit before tax for the second quarter was NOK 18.3 (14.9) million. Year-to-date, profit before tax is NOK 29.9 (22.9) million. The change in profit is mainly due to growth in net interest income exceeding the negative effects from financial instruments.
Net interest and credit commission income for the second quarter amounted to NOK 66.1 (53.5) million. The change is primarily related to slightly higher lending margins due to reduced funding costs.
Net effects from financial instruments at the end of the quarter were NOK -3.8 (0.1) million. This mainly includes market value losses on liquidity placements and costs related to buybacks of issued debt. Realized and unrealized value changes in the liquidity portfolio had a profit effect of NOK 1.4 (1.6) million. Accounting effects from buybacks of own debt total NOK -5.2 (-1.5) million so far this year.
Operating expenses for the second quarter were NOK -32.4 (-30.6) million. The company has had no loan losses and maintains very low loss provisions.
Lending and total assets
The company’s loans to customers as of June 30, 2025, amounted to NOK 11.7 (12.6) billion. Loans totaling NOK 1.0 (1.6) billion were purchased from the parent company KLP Banken AS during the first half of the year. Total assets amounted to NOK 12.6 (13.8) billion.
Liquidity investments
KLP Boligkreditt AS has strict requirements for which assets may be included in the cover pool. In addition to residential mortgages, the cover pool consists of securities and deposits in other banks. The securities consist of certificates and bonds with very high credit quality, primarily investments in covered bonds. As of June 30, 2025, the company’s interest-bearing securities had a market value of NOK 0.5 (0.8) billion.
Funding
The company’s external financing consists of issued covered bonds (OMF) and loans from KLP Banken AS. At the end of the quarter, the company had NOK 1.3 (1.6) billion in intra-group debt. Outstanding covered bond debt amounted to NOK 10.2 (11.1) billion. New covered bonds totaling NOK 2.0 (1.0) billion have been issued so far this year. Net buybacks of previous issuances amount to NOK -2.3 (-0.8) billion. All covered bond 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, limits, procedures, and instructions. The company is to maintain a conservative risk profile, and earnings should primarily result from lending and deposit activities as well as liquidity management. This implies that the company should have low market risk. Interest rate risk arising from lending and borrowing activities is reduced by the use of derivatives. The company must maintain sufficient long-term funding within established limits. Credit risk is very low, as the company’s lending is limited to loans secured by residential property. Liquidity is placed in banks with high credit quality requirements and in securities in accordance with board-approved credit lines.
Core capital according to capital adequacy regulations at the end of the second quarter of 2025 was NOK 1,059 (1,027) million. Residential mortgage loans are risk-weighted at 35 percent according to regulatory capital adequacy rules. KLP Boligkreditt AS had a core capital ratio and total capital ratio of 34.7 (20.9) percent as of the second quarter. The minimum requirement for total capital adequacy is 17.5 percent. The leverage ratio was 8.4 (7.5) percent, with a requirement of 3.0 percent.
Outlook
KLP Boligkreditt AS is part of the financing structure of the KLP Banken Group.
Recent years of macroeconomic uncertainty have affected Norwegian households. In particular, inflation and high interest rates have dampened consumption and investment. Although interest rates now appear to be declining, low mortgage growth is expected to continue for some time. Members of the KLP Group, who are primarily public sector employees and their households, are more shielded from employment-related risks due to their roles in municipalities and health enterprises. The KLP Banken Group therefore assumes that the risk of defaults and losses will remain limited in the future.
KLP Boligkreditt AS holds a license as a mortgage credit institution and will continue to develop through the purchase of loans from KLP Banken AS or KLP. The company will primarily be financed through the issuance of covered bonds (OMF) backed by a cover pool consisting of residential mortgages. The company aims to help reduce the bank group’s funding costs and thereby be a key contributor to the financing of home loans for KLP’s members.
The Capital Requirements Regulation CRR3 came into effect in Norway on April 1, 2025. The new regulation entails lower capital requirements for residential mortgages for banks using the standard method to calculate capital requirements, such as the KLP Banken Group. These changes will help level the playing field between standard method banks and IRB banks.
The Board believes there is good potential for further development of the company and that a significant portion of KLP Banken’s residential mortgage lending can be financed by KLP Boligkreditt AS, including financing solutions that contribute positively to environmental and sustainability goals.
Trondheim, 14 August 2025
AAGE E. SCHAANNING Chair
JANICKE E. FALKENBERG
KRISTIN WANGEN
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 2025 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 2025
AAGE E. SCHAANNING Chair
JANICKE E. FALKENBERG
KRISTIN WANGEN
JONAS V. KÅRSTAD
CHRISTOPHER A. N. STEEN Managing Director
Income statementKLP Boligkreditt AS
NOTE
NOK THOUSANDS
Q2 2025
Q2 2024
01.01.2025 -30.06.2025
01.01.2024 -30.06.2024
01.01.2024 -31.12.2024
Interest income, effective interest method
170 862
173 630
346 330
348 709
703 772
Other interest income
7 205
10 316
17 545
18 091
39 264
3
Total interest income
178 066
183 946
363 875
366 799
743 036
Interest expense, effective interest method
-146 120
-155 938
-297 812
-313 293
-631 523
3
Total interest expense
-146 120
-155 938
-297 812
-313 293
-631 523
3
Net interest income
31 946
28 008
66 063
53 506
111 513
15
Net gain/(loss) on financial instruments
583
427
-3 820
71
-659
Total net gain/(loss) on financial instruments
583
427
-3 820
71
-659
Other operating expenses
-14 203
-13 562
-32 404
-30 641
-61 685
16
Net loan losses
17
63
52
-3
-26
Total operating expenses
-14 186
-13 499
-32 352
-30 644
-61 711
Operating profit/loss before tax
18 343
14 936
29 892
22 933
49 143
Tax ordinary income
-1 394
-2 235
-1 294
-2 944
-6 609
Profit for the period
16 948
12 700
28 598
19 989
42 533
Other income and expenses
0
0
0
0
0
Comprehensive income for the period
16 948
12 700
28 598
19 989
42 533
BalanceKLP Boligkreditt AS
NOTE
NOK THOUSANDS
30.06.2025
30.06.2024
31.12.2024
ASSETS
5
Loans to credit institutions
304 009
375 319
331 192
4,5
Loans to customers
11 708 321
12 556 901
12 669 545
5,6,14
Fixed-income securities
545 459
809 452
828 687
11
Other assets
33 778
20 243
3 092
Total assets
12 591 567
13 761 916
13 832 517
LIABILITIES AND OWNERS EQUITY
LIABILITIES
5,9
Debt to credit institutions
1 252 115
1 551 635
2 193 926
5,7
Debt securities issued
10 232 424
11 148 785
10 549 732
Deferred tax liabilities
3 581
3 335
14 146
12
Other liabilities
15 364
10 654
4 661
Total liabilities
11 503 483
12 714 409
12 762 466
EQUITY
Share capital
430 000
430 000
430 000
Share premium
530 463
530 463
530 463
Other accrued equity
99 022
67 054
109 588
Unallocated profit/loss
28 598
19 989
0
Total owners' equity
1 088 084
1 047 507
1 070 051
Total liabilities and equity
12 591 567
13 761 916
13 832 517
Statement of changes in equityKLP Boligkreditt AS
2025 NOK THOUSANDS
Share capital
Share premium
Other accrued equity
Total owners' equity
Equity 1 January 2025
430 000
530 463
109 588
1 070 051
Profit for the period
0
0
28 598
28 598
Other income and expenses
0
0
0
0
Total comprehensive income for the period
0
0
28 598
28 598
Group contribution received
0
0
37 458
37 458
Group contribution made
0
0
-48 024
-48 024
Total transactions with the owners
0
0
-10 565
-10 565
Equity 30 June 2025
430 000
530 463
127 621
1 088 084
2024 NOK THOUSANDS
Share capital
Share premium
Other accrued 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 income and expenses
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 in 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
2024 NOK THOUSANDS
Share capital
Share premium
Other accrued equity
Total owners' equity
Equity 1 January 2024
380 000
480 463
71 256
931 719
Income for the year
0
0
42 533
42 533
Other income and expenses
0
0
0
0
Total comprehensive income for the period
0
0
42 533
42 533
Group contribution received
0
0
14 898
14 898
Group contribution made
0
0
-19 100
-19 100
Paid-up equity in the period
50 000
50 000
0
100 000
Total transactions with the owners
50 000
50 000
-4 202
95 798
Equity 31 December 2024
430 000
530 463
109 588
1 070 051
Statement of cash flowKLP Boligkreditt AS
NOK THOUSANDS
01.01.2025 -30.06.2025
01.01.2024 -30.06.2024
01.01.2024 -31.12.2024
OPERATING ACTIVITIES
Payments received from customers - interest
341 894
341 157
685 391
Receipts related to repayment and redemption of loans to customers
1 938 389
1 784 313
4 030 960
Receipts on loans from credit institutions
2 000 000
1 000 000
1 000 000
Repayment and redemption of loans
-1 830 000
0
-2 500 000
Change in securities debt, own funds
-492 983
-956 960
944 031
Net payment of interest on loans
-257 931
-287 770
-567 828
Receipts in internal funding
1 111 100
1 816 710
6 413 070
Repayment in internal funding
-2 051 100
-1 950 729
-5 906 396
Net payment of interest on internal funding
-41 201
-27 108
-63 734
Payments on the purchase of securities
-191 149
-330 128
-670 314
Receipts on sale of securities
472 945
40 000
360 220
Receipts of interest from securities
20 316
16 767
37 924
Disbursements on operations
-34 229
-32 427
-61 366
Net receipts/disbursements from operating activities
2 619
4 068
2 595
Net interest investment accounts
8 397
8 797
19 192
Net cash flow from operating activities
997 068
1 426 689
3 723 744
INVESTMENT ACTIVITIES
Disbursements on loans customers
-1 011 100
-1 613 741
-3 955 728
Net cash flow from investment activities
-1 011 100
-1 613 741
-3 955 728
FINANCING ACTIVITIES
Change in owners' equity
0
100 000
100 000
Group contribution paid
-10 565
-4 202
-4 202
Net cash flows from financing activities
-10 565
95 798
95 798
Net cash flow during the period
-24 597
-91 254
-136 187
Cash and cash equivalents at the start of the period
320 386
456 573
456 573
Cash and cash equivalents at the end of the period
295 790
365 319
320 386
Net receipts/disbursements
-24 597
-91 254
-136 187
Liquidity holdings comprise:
Deposits with and receivables from banks with no agreed term
295 790
365 319
320 386
Total liquidity holdings at the end of the reporting period
295 790
365 319
320 386
Total interest received
370 607
366 720
742 506
Total interest paid
-299 132
-314 878
-631 562
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.
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 2025 – 30 June 2025. 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 2024, please see the annual report for further information.
Note 3 Net interest income
NOK THOUSANDS
Q2 2025
Q2 2024
01.01.2025 -30.06.2025
01.01.2024 -30.06.2024
01.01.2024 -31.12.2024
Interest income on loans to customers
166 721
169 397
337 900
339 244
684 581
Interest income on loans to credit institutions
4 141
4 233
8 430
9 465
19 191
Total interest income, effective interest method
170 862
173 630
346 330
348 709
703 772
Interest income on fixed-income securities
7 205
10 316
17 545
18 091
39 264
Total other interest income
7 205
10 316
17 545
18 091
39 264
Total interest income
178 066
183 946
363 875
366 799
743 036
Interest expenses on debt from KLP Banken AS
-16 999
-13 150
-39 389
-26 446
-64 670
Interest expenses on issued securities
-129 121
-142 788
-258 423
-286 848
-566 852
Total interest expenses, effective interest method
-146 120
-155 938
-297 812
-313 293
-631 523
Total interest expense
-146 120
-155 938
-297 812
-313 293
-631 523
Net interest income
31 946
28 008
66 063
53 506
111 513
Note 4 Loans to customers
NOK THOUSANDS
30.06.2025
30.06.2024
31.12.2024
Principal on lending
11 684 886
12 530 604
12 642 167
Write-downs
-36
-66
-88
Accrued interest
23 472
26 363
27 466
Loans to and receivables from customers
11 708 321
12 556 901
12 669 545
Note 5 Categories of financial instruments
NOK THOUSANDS
30.06.2025
30.06.2024
31.12.2024
Capitalized value
Fair value
Capitalized value
Fair value
Capitalized value
Fair value
FINANCIAL ASSETS AT FAIR VALUE
Fixed-income securities
545 459
545 459
809 452
809 452
828 687
828 687
Total financial assets at fair value
545 459
545 459
809 452
809 452
828 687
828 687
FINANCIAL ASSETS AT AMORTIZED COST
Loans to and receivables from credit institutions
304 009
304 009
375 319
375 319
331 192
331 192
Loans to and receivables from customers
11 708 321
11 708 321
12 556 901
12 556 901
12 669 545
12 669 545
Total financial assets at amortized cost
12 012 330
12 012 330
12 932 221
12 932 221
13 000 738
13 000 738
Total financial assets
12 557 790
12 557 790
13 741 673
13 741 673
13 829 425
13 829 425
FINANCIAL LIABILITIES AT AMORTIZED COST
Liabilities to credit institutions
1 252 115
1 252 115
1 551 635
1 551 635
2 193 926
2 193 926
Covered bonds issued
10 232 424
10 266 079
11 148 785
11 176 836
10 549 732
10 568 742
Total financial liabilities at amortized cost
11 484 539
11 518 194
12 700 420
12 728 471
12 743 659
12 762 669
Total financial liabilities
11 484 539
11 518 194
12 700 420
12 728 471
12 743 659
12 762 669
Fair value shall be a representative price based on what a corresponding asset or liability would have been traded for on the balance sheet date. 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.
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
30.06.2025 NOK THOUSANDS
Level 1
Level 2
Level 3
Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities
29 749
515 710
0
545 459
Total assets at fair value
29 749
515 710
0
545 459
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
31.12.2024 NOK THOUSANDS
Level 1
Level 2
Level 3
Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities
29 731
798 957
0
828 687
Total assets at fair value
29 731
798 957
0
828 687
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:
4.99%
5.08%
5.05%
The interest rate is calculated as a weighted average of the act/360 basis. It includes interest rate
effects and amortization costs.
NOK THOUSANDS
Balance sheet 31.12.2024
Issued
Matured/ redeemed
Other adjustments
Balance sheet 30.06.2025
Bond debt, nominal amount
10 500 000
2 000 000
-1 830 000
0
10 670 000
Adjustments
-4 779
0
0
9 570
4 791
Accured interest
54 511
0
0
3 122
57 633
Own holdings, nominal amount
0
0
-500 000
0
-500 000
Total debt securities issued
10 549 732
2 000 000
-2 330 000
12 692
10 232 424
Note 8 Over-collateralisation
NOK THOUSANDS
30.06.2025
30.06.2024
31.12.2024
SECURITY POOL
Loans to customers ¹
11 701 386
12 536 163
12 670 853
Additional collateral ²
1 036 336
2 986 673
903 440
Total security pool
12 737 722
15 522 835
13 574 293
Outstanding covered bonds incl. own funds and premium/discount
10 766 758
13 080 638
10 568 742
Coverage of the security pool
118.3%
118.7%
128.4%
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
30.06.2025 NOK THOUSANDS
Due date
Nominal
Accrued interest
Book value
Debt to KLP Banken AS
15.12.2026
1 250 000
2 115
1 252 115
Total liabilities to credit institutions
1 250 000
2 115
1 252 115
Interest rate on debt to credit institutions at the reporting date:
4.06 %
The interest rate is calculated as a weighted average of the act/360 basis.
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 %
31.12.2024 NOK THOUSANDS
Due date
Nominal
Accrued interest
Book value
Debt to KLP Banken AS
15.12.2026
2 050 000
3 690
2 053 690
Debt to KLP Banken AS
15.12.2026
140 000
236
140 236
Total liabilities to credit institutions
2 190 000
3 926
2 193 926
Interest rate on debt to credit institutions at the reporting date:
4.05 %
Note 10 Transactions with related parties
30.06.2025 NOK THOUSANDS
KLP Banken AS
Other group companies
Interest incomes
5 309
2 822
Interest expenses
-39 389
0
Purchase of services
-30 498
0
Other receivables
31 606
1 327
Bank deposits
229 549
0
Borrowing
-1 252 115
0
Other debt
-3 505
0
Purchase of loans from KLP Banken AS
1 011 100
0
30.06.2024 NOK THOUSANDS
KLP Banken AS
Other group companies
Interest incomes
5 352
3 394
Interest expenses
-26 446
0
Purchase of services
-28 585
0
Other receivables
17 837
1 450
Bank deposits
219 031
0
Borrowing
-1 551 635
0
Other debt
-3 435
0
Purchase of loans from KLP Banken AS
1 613 741
0
31.12.2024 NOK THOUSANDS
KLP Banken AS
Other group companies
Interest incomes
10 840
6 209
Interest expenses
-64 670
0
Purchase of services
-56 223
-20
Other receivables
1 614
1 478
Bank deposits
224 373
0
Borrowing
-2 193 926
0
Other debt
-4 566
-20
Purchase of loans from KLP Banken AS
3 955 728
0
There are no direct salary costs in KLP Boligkreditt AS. Personnel costs (administrative services) are allocated from KLP Banken AS.
Transactions with related parties are carried out on general market terms, with the exception of the Company’s share of common functions, which is allocated at cost. Allocation is based on actual use. All internal receivables are settled as they arise.
Note 11 Other assets
NOK THOUSANDS
30.06.2025
30.06.2024
31.12.2024
Intercompany receivables
32 933
19 288
3 092
Prepaid expenses
845
956
0
Total other assets
33 778
20 243
3 092
Note 12 Other liabilities and provision for accrued costs
NOK THOUSANDS
30.06.2025
30.06.2024
31.12.2024
Creditors
0
73
75
Intercompany payables
3 505
3 435
4 586
Other liabilities
11 859
7 146
0
Total other liabilities
15 364
10 654
4 661
Note 13 Capital adequacy
NOK THOUSANDS
30.06.2025
30.06.2024
31.12.2024
Share capital and share premium fund
960 463
960 463
960 463
Other owners' equity
99 022
67 054
109 588
Total owners' equity
1 059 486
1 027 518
1 070 050
Adjustments due to requirements for proper valuation
-545
-809
-829
Core capital/Tier 1 capital
1 058 940
1 026 708
1 069 222
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)
1 058 940
1 026 708
1 069 222
Capital requirement
244 430
393 068
395 315
Surplus of own funds (Tier 1 and Tier 2 capital)
814 510
633 640
673 907
Estimate basis credit risk:
Institutions
67 301
78 824
66 761
Retail
527 202
392 939
380 294
Investments with mortgage security in real estate
2 267 411
4 211 929
4 256 870
Covered bonds
51 571
78 964
79 896
Other holdings
1 280
1 442
480
Calculation basis credit risk
2 914 766
4 764 097
4 784 301
Credit risk
233 181
381 128
382 744
Operating risk
11 249
11 940
12 571
Total capital requirement assets
244 430
393 068
395 315
Core capital adequacy ratio
34.7 %
20.9 %
21.6 %
Supplementary capital ratio
0.0 %
0.0 %
0.0 %
Capital adequacy ratio
34.7 %
20.9 %
21.6 %
Leverage ratio
8.4 %
7.5 %
7.7 %
CAPITAL REQUIREMENT PER 30.06.2025
Core capital/ Tier 1 capital
Supplementary capital/Tier 2 capital
Own funds
Minimum requirement excl. buffers
4.5 %
3.5 %
8.0 %
Protective buffer
2.5 %
0.0 %
2.5 %
Systemic risk buffer
4.5 %
0.0 %
4.5 %
Counter-cyclical capital buffer
2.5 %
0.0 %
2.5 %
Current capital requirement 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
30.06.2025
30.06.2024
31.12.2024
Acquisition cost
Market value
Acquisition cost
Market value
Acquisition cost
Market value
Certificates
29 688
29 749
19 788
19 816
29 678
29 731
Bonds
511 650
515 710
783 888
789 636
795 145
798 957
Total fixed-income securities
541 338
545 459
803 676
809 452
824 823
828 687
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 2025
Q2 2024
01.01.2025 -30.06.2025
01.01.2024 -30.06.2024
01.01.2024 -31.12.2024
Net gain/(loss) on fixed-income securities
967
607
1 363
1 611
890
Net gain/(loss) financial derivatives and realized repurchase of own debt
-385
-180
-5 183
-1 540
-1 549
Total net gain/(loss) financial instruments
583
427
-3 820
71
-659
Note 16 Loan loss provision
There has not been done any changes in the model for calculation of the expected loss provisions in the second quarter.
The total loan loss provisions have decreased with 33 percent since first quarter of 2025. Although the percentage decreasee is large, the amounts involved are relatively small in relation to the total lending volume. The decrease is NOK 17 000 kroner.
Refer to Note 8 and Note 2 in the annual report for more details of the model.
Expected credit loss (ECL) - loans to customers - mortgage
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
30.06.2025
30.06.2024
31.12.2024
stage 1
stage 2
stage 3
Total stage 1-3
Total stage 1-3
Total stage 1-3
Opening balance ECL 01.01.
46
42
0
88
63
63
Transfers to stage 1
7
-7
0
0
0
0
Transfers to stage 2
-1
1
0
0
0
0
Transfers to stage 3
0
0
0
0
0
0
Net changes
-28
-17
0
-46
18
36
New losses
0
0
0
0
3
15
Write-offs
-5
-2
0
-8
-6
-10
Change in risk model
0
0
0
0
-12
-16
Closing balance ECL
18
17
0
36
66
88
Changes in the period 01.01-30.06./31.12
-28
-25
0
-52
3
26
Book value of loans to and receivables for customers - mortgage
NOK THOUSANDS
12 months ECL
Lifetime ECL (not credit impaired)
Lifetime ECL (credit impaired)
30.06.2025
30.06.2024
31.12.2024
stage 1
stage 2
stage 3
Total stage 1-3
Total stage 1-3
Total stage 1-3
Lending 01.01.
12 318 131
351 502
0
12 669 633
12 745 511
12 745 510
Transfers to stage 1
106 979
-106 979
0
0
0
0
Transfers to stage 2
-120 205
120 205
0
0
0
0
Transfers to stage 3
0
0
0
0
0
0
Net changes
-217 573
-3 371
0
-220 943
-267 054
-435 830
New lending
816 246
6 177
0
822 423
1 497 094
3 328 891
Write-offs
-1 509 354
-53 402
0
-1 562 757
-1 418 585
-2 968 937
Lending
11 394 225
314 133
0
11 708 356
12 556 967
12 669 633
Recognised loan loss provisions
-18
-17
0
-36
-66
-88
Book value of loans to mortgages
11 394 207
314 115
0
11 708 321
12 556 901
12 669 545
Quarterly earnings trend
NOK MILLIONS
Q2 2025
Q1 2025
Q4 2424
Q3 2024
Q2 2024
Interest income
178.1
185.8
189.1
187.1
183.9
Interest expense
-146.1
-151.7
-158.8
-159.4
-155.9
Net interest income
31.9
34.1
30.3
27.7
28.0
Net gain/ (loss) on financial instruments
0.6
-4.4
-1.3
0.6
0.4
Total net gain/(loss) on financial instruments
0.6
-4.4
-1.3
0.6
0.4
Other operating expenses
-14.2
-18.2
-15.2
-15.9
-13.5
Total operating expenses
-14.2
-18.2
-15.2
-15.9
-13.5
Operating profit/loss before tax
18.3
11.5
13.8
12.4
14.9
Tax ordinary income
-1.4
0.1
-2.0
-1.7
-2.2
Profit for the period
16.9
11.6
11.8
10.7
12.7
Key figures accumulated
NOK MILLIONS
Q2 2025
Q1 2025
Q4 2424
Q3 2024
Q2 2024
Pre-tax income
29.9
11.5
49.1
35.3
22.9
Net interest income
66.1
34.1
111.5
81.2
53.5
Other operating expenses
-32.4
-18.2
-61.7
-46.5
-30.6
Net gain/ (loss) financial instruments
-3.8
-4.4
-0.7
0.6
0.1
Housing mortgage lending
11 708.3
12 726.3
12 669.5
12 603.6
12 556.9
Non-performing loans
0.0
0.0
0.0
0.0
0.0
Total liabilities created on issuance of securities