Q3 2022 Interim report KLP Banken Group

KLP Banken GroupQ3 2022

KLP Banken Group Interim financial statements 3/2022

Main features by quarter end:

Increased net interest income
Reduced market value on liquid investments
Lending growth in both business areas

The KLP Banken Group finances mortgage loans and other credits in the retail market and provides 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 Kommunal Landspensjonskasse (KLP). The Group manages a lending total of NOK 118 (114) billion. The overall business of KLP Banken AS and its subsidiaries is nationwide and divided into the retail market and public sector loans business areas.

In the retail market KLP Banken shall provide products and services at competitive terms to contribute to enterprises having elected KLP as their pension scheme provider are perceived as 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 by third quarter end amounted to NOK 258.2 (232.8) million. The change is mainly due to lending growth in both business areas. In the public sector market lending margins also have been at a slightly higher level compared to last year.

Net charges and commission income amounted NOK 19.8 (14.1) million. In addition to lending growth, the change is also due to card fee rates adjustments.

The bank group administers housing mortgages and public sector lending financed by its parent company (KLP). The management fee for this task amounted to NOK 42.9 (44.6) million as at third quarter.

Operating expenses including depreciations amounted to NOK -180.7 (-172.8) million. The increase is mainly due to increased external service prices as well as lending volume dependencies.

At the end of the third quarter the income statement includes a net loss on financial instruments of NOK -42.8 (-23.5) million. This is mainly due to market value changes in the liquidity investment portfolios and to one-off expenses from buy-back of own bond issues. The cost brought to book as at third quarter is firstly connected to an increase in market credit-spreads. This has reduced the value of liquid investments held, but an unsignificant part of it are realized expenses.

So far in 2022 realized losses and loan loss provisions amounts to NOK 0.1 (-1.3) million. In the account statements, reversal of previous loss provisions on credit cards and mortgages has been higher than new losses and provisions. Increasing inflation and interest rate levels may over time lead to a decrease in the customer’s ability to service their loans. Neither in 2022 the public sector market has incurred realized loan losses.

At the end of third quarter, the KLP Banken Group achieved a pre-tax profit of NOK 97.5 (93.8) million. Operating income in total has strengthened in the period and compensate the reduced market value of liquid investments. Profit and loss per business area show NOK 57.9 (76.9) million in the retail market segment and NOK 39.6 (16.9) million in the public sector segment. Group total income after taxes and actuarial adjustments amounted to NOK 105.2 (89.9) million as at third quarter.

Lending and credits

On 30 September 2022, the KLP Banken Group had a lending balance of NOK 42.1 (38.2) billion. The distribution between the retail market and public sector lending was NOK 23.4 (21.4) billion and NOK 18.7 (16.8) billion, respectively.

In the retail market, KLP Banken had a mortgage growth at NOK 1.3 (0.7) billion so far in 2022. The bank’s mortgage loan products seem to be well adapted among the target group members of the KLP pension schemes.

Mortgage loans amounting to NOK 3.8 (4.3) billion are sold to the daughter company KLP Boligkreditt AS by third quarter end. Managed mortgages for KLP show a stable volume in the same period.

Drawn credits on credit cards show an increase so far this year. Unused granted credits, on the other hand, are reduced. This follows a general decrease in the market for unsecured credits as well as laps of inactive users. The number of credit card customers show an increase in the period.

The KLP Banken public sector lending balance has also increased since last year-end, by NOK 0.9 (-0.7) billion. Managed public sector lending on behalf of KLP has additionally increased by NOK 1.4 billion.

Liquid investments

Available liquidity is invested in other banks and in interest-bearing securities. Deposits in credit institutions was NOK 1.2 (1.4) billion. Securities held, booked at fair value in the KLP Banken Group, was NOK 5.8 (5.3) billion at the end of the quarter.

Net profit and loss due to market value changes on securities held as at third quarter show a booked expense of NOK -34.6 (-2.2) million.

Borrowing

The KLP Banken Group's external financing comprises deposits, sertificates and bonds. On the reporting date, deposits from individuals and companies amounted NOK 13.6 (12.8) billion and issued securities amounted NOK 32.6 (29.5) billion. Of the outstanding volume of issued securities, covered bonds (OMF) issued by KLP Kommunekreditt AS and KLP Boligkreditt AS amounted to NOK 18.8 (17.0) billion and NOK 12.6 (11.6) billion respectively. All covered bond issues have achieved AAA rating. Outstanding securities debt in KLP Banken AS amounted to NOK 1.2 (0.9) 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, analysed and subject to management using policies, limits, procedures and instructions. The bank is to 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 rate risks arising within the borrowing and lending activities are reduced using derivatives.

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

The credit risk associated with the banking group assets is low, and lending is mainly limited to loans with local government risk and loans with 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.

At the end of third quarter 2022, eligible Tier 1 and Tier 2 capital i.a.w. the capital adequacy rules were NOK 2 770 (2 406) million. Eligible Tier 1 and Tier 2 capital comprises 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 19.7 (18.6) percent at the reporting time. The minimum statutory requirement is 13.0 percent core capital adequacy and 16.5 percent capital adequacy. Leverage ratio was 5.5 (5.3) percent. Here the requirement is 3.0 percent.

Income statementKLP Banken Group

NOTES	NOK THOUSANDS	Q3 2022	Q3 2021	01.01.2022 -30.09.2022	01.01.2021 -30.09.2021	01.01.2021 -31.12.2021
	Interest income, effective interest method	280 704	150 567	681 424	456 842	621 624
	Other interest income	39 534	15 965	97 739	47 754	68 176
3	Total interest income	320 238	166 532	779 162	504 596	689 801
	Interest expense, effective interest method	-206 868	-64 023	-480 006	-201 280	-290 728
	Other interest expense	-14 155	-22 553	-40 968	-70 524	-90 463
3	Total interest costs	-221 023	-86 576	-520 975	-271 804	-381 191
3	Net interest income	99 215	79 956	258 188	232 792	308 609
	Commision income and income from banking services	8 140	5 738	21 737	15 520	21 520
	Commision cost and cost from banking services	-741	-580	-1 914	-1 462	-2 033
	Net charges and commission income	7 399	5 159	19 823	14 059	19 487
	Other fee income	12 698	14 850	42 934	44 550	59 400
16	Net gain/ (loss) financial instruments	-6 916	-4 893	-42 817	-23 457	-32 896
	Total other operating income	5 782	9 957	116	21 093	26 504
	Salaries and administrative costs	-18 089	-17 653	-62 191	-58 411	-81 930
	Depreciation	-1 005	-1 657	-3 011	-4 978	-6 409
	Other operating expenses	-38 119	-36 124	-115 521	-109 446	-147 846
14	Net loan losses	-196	-162	50	-1 341	-2 299
	Total operating expenses	-57 410	-55 596	-180 672	-174 177	-238 484
	Operating profit/loss before tax	54 985	39 475	97 454	93 767	116 117
	Tax ordinary income	-13 089	-9 226	5 238	4 818	-423
	Profit/loss for the period	41 896	30 250	102 692	98 585	115 694
	Estimate difference, pension obligation and assets	458	-19 284	3 280	-11 552	7 136
	Tax on actuarial gains and losses	-115	4 821	-820	2 888	-1 784
	Items that will not be reclassified to profit and loss	344	-14 463	2 460	-8 664	5 352
	Changes in the fair value through profit and loss	0	0	0	0	0
	Tax on changes in fair value of available for sale financial assets	0	0	0	0	0
	Items that may be reclassified to profit and loss	0	0	0	0	0
	Other comprehensive income for the period	344	-14 463	2 460	-8 664	5 352
	Comprehensive income for the period	42 240	15 787	105 152	89 921	121 046

Balance sheetKLP Banken Group

NOTES	NOK THOUSANDS	30.09.2022	30.09.2021	31.12.2021
	ASSETS
5	Claims on central banks	72 569	67 239	67 244
5	Loans to credit institutions	1 204 247	1 364 616	1 398 501
4,5	Loans to customers	42 086 145	38 207 027	39 934 100
5,6,13	Fixed-income securities	5 844 943	5 264 862	6 001 099
5,6	Shareholdings	1 187	1 274	1 187
5,6,8	Financial derivatives	118 114	44 845	42 051
	Deferred tax assets	0	692	0
	Intangible assets	16 155	15 217	16 789
17	Right-of-use assets	16 833	779	18 236
	Fixed assets	436	436	436
10	Other assets	8 856	13 185	2 217
	Total assets	49 369 486	44 980 171	47 481 860
	LIABILITIES AND OWNERS EQUITY
	LIABILITIES
5,7	Debt securities issued	32 613 189	29 535 681	31 917 798
5	Deposits and borrowings from the public	13 606 782	12 773 731	12 901 004
5,6,8	Financial derivatives	32 927	37 840	9 990
	Deferred tax liabilities	4 120	0	23 343
17	Lease liabilities	17 157	821	18 323
11	Other liabilities	143 219	72 706	38 369
11	Provision for accrued costs and liabilities	54 798	69 737	52 249
	Total liabilities	46 472 192	42 490 515	44 961 078
	EQUITY
	Share capital	1 140 000	1 065 000	1 065 000
	Share premium	1 050 000	825 000	825 000
	Other owners' equity	602 142	509 736	630 782
	Profit for the period	105 152	89 921	0
	Total equity	2 897 294	2 489 657	2 520 782
	Total liabilities and equity	49 369 486	44 980 171	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	102 692	102 692
Other comprehensive income	0	0	2 460	2 460
Total comprehensive income for the period	0	0	105 152	105 152
Group contribution received during the period	0	0	89 292	89 292
Group contribution paid during the period	0	0	-117 932	-117 932
Owners' equity received during the period	75 000	225 000	0	300 000
Total transactions with the owners	75 000	225 000	-28 640	271 360
Equity 30 September 2022	1 140 000	1 050 000	707 294	2 897 294

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	98 585	98 585
Other comprehensive income	0	0	-8 664	-8 664
Total comprehensive income for the period	0	0	89 921	89 921
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 30 September 2021	1 065 000	825 000	599 657	2 489 657

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	01.01.2022 -30.09.2022	01.01.2021 -30.09.2021	01.01.2021 -31.12.2021
OPERATING ACTIVITIES
Payments received from customers – interest, commission and charges	618 379	456 867	638 105
Payments to customers – interest, commission and charges	-98 510	-66 789	-89 196
Disbursements on loans to customers and credit institutions	-12 404 786	-11 721 281	-16 640 961
Receipts on loans to customers	10 233 142	11 647 662	14 782 637
Net receipts on customer deposits banking	706 083	993 314	1 119 290
Disbursements on operations	-112 833	-113 534	-148 301
Payments to staff, pension schemes, employer's social security contribution etc.	-62 308	-64 090	-81 174
Interest investment accounts	14 758	1 500	9 617
Net receipts/disbursements from operating activities	127 168	76 930	64 335
Net cash flow from operating activities	-978 908	1 210 578	-345 647
INVESTMENT ACTIVITIES
Receipts on the sale of securities	3 331 631	8 028 394	9 763 759
Payments on the purchase of securities	-3 202 793	-7 077 325	-9 551 367
Receipts of interest from securities	62 545	34 633	45 074
Payments on the purchase of tangible fixed assets	-974	0	-2 578
Net cash flow from investment activities	190 409	985 702	254 889
FINANCING ACTIVITIES
Repayment and redemption from credit institutions	0	-2 500 000	-2 500 000
Net payment of interest from credit institutions	0	-6 517	-6 517
Receipts on loans	5 950 000	5 300 000	9 300 000
Repayments and redemption of securities debt	-5 508 000	-5 176 000	-6 569 839
Change in securities debt, own funds	236 476	562 229	343 369
Net payment of interest on loans	-355 824	-174 373	-238 607
Payment of lease liabilities	-1 363	-1 197	-1 654
Group contributions paid	-28 640	-27 065	-27 065
Change in owners' equity	300 000	0	0
Net cash flows from financing activities	592 650	-2 022 922	299 685
Net cash flow during the period	-195 849	173 358	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	1 225 146	1 385 425	1 420 995
Net receipts/disbursements (-)	-195 849	173 358	208 928

Notes to the financial statementKLP Banken Group

Note 1 General information

KLP Banken AS was formed 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 Group. KLP Banken 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 – 30 September 2022, with a specification of the results in the third quarter. The interim Financial Statements has not been audited.

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 2021, please see the annual report for further information.

Note 3 Net interest income

NOK THOUSANDS	Q3 2022	Q3 2021	01.01.2022 -30.09.2022	01.01.2021 -30.09.2021	01.01.2021 -31.12.2021
Interest income on loans to customers	272 395	150 138	664 697	455 171	617 688
Interest income on loans to credit institutions	8 309	430	16 727	1 670	3 937
Total interest income, effective interest method	280 704	150 568	681 424	456 842	621 624
Interest income on bonds and certificates	28 788	8 888	70 431	23 465	36 486
Other interest income	10 745	7 077	27 307	24 289	31 690
Total other interest income	39 534	15 965	97 739	47 754	68 176
Total interest income	320 238	166 532	779 162	504 596	689 801
Interest expenses on deposits to KLP Banken	-37 038	-18 034	-84 363	-51 734	-70 216
Interest expenses on issued securities	-169 748	-45 984	-395 397	-149 524	-220 403
Interest expense lease liabilities	-81	-6	-247	-22	-109
Total interest expense, effective interest method	-206 868	-64 023	-480 006	-201 280	-290 728
Other interest expenses	-9 903	-18 245	-28 213	-57 565	-73 196
Interest expenses on deposits to customers	-4 252	-4 309	-12 755	-12 960	-17 268
Total other interest expense	-14 155	-22 553	-40 968	-70 524	-90 463
Total interest expense	-221 023	-86 576	-520 975	-271 804	-381 191
Net interest income	99 215	79 956	258 188	232 792	308 609

Note 4 Loans to customers

NOK THOUSANDS	30.09.2022	30.09.2021	31.12.2021
Principal on loans to customers	42 043 058	38 111 660	39 870 185
Credit portfolio	45 381	44 887	43 355
Overdraft current account	124	661	179
Write-downs step 1 and 2	-1 534	-984	-1 075
Write-downs step 3	-1 045	-978	-1 040
Loans to customers after write-downs	42 085 984	38 155 246	39 911 604
Accrued interest	119 815	67 032	53 852
Fair value hedging	-119 654	-15 252	-31 356
Loans to customers	42 086 145	38 207 027	39 934 100

Note 5 Categories of financial instruments

NOK THOUSANDS	30.09.2022		30.09.2021		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	5 844 943	5 844 943	5 264 862	5 264 862	6 001 099	6 001 099
Financial derivatives	118 114	118 114	44 845	44 845	42 051	42 051
Shares and holdings	1 187	1 187	1 274	1 274	1 187	1 187
Total financial assets at fair value through profit and loss	5 964 244	5 964 244	5 310 981	5 310 981	6 044 337	6 044 337
FINANCIAL ASSETS FAIR VALUE HEDGING
Loans to and receivables from customers	1 703 279	1 710 640	2 840 420	2 890 695	2 012 822	2 056 718
Total financial assets fair value hedging	1 703 279	1 710 640	2 840 420	2 890 695	2 012 822	2 056 718
FINANCIAL ASSETS AT AMORTIZED COST
Loans to and receivables from credit institutions	72 569	72 569	67 239	67 239	67 244	67 244
Loans to and receivables from central banks	1 204 247	1 204 247	1 364 616	1 364 616	1 398 501	1 398 501
Loans to and receivables from customers	40 382 866	40 382 866	35 366 607	35 366 607	37 921 278	37 921 278
Total financial assets at amortized cost	41 659 683	41 659 683	36 798 462	36 798 462	39 387 023	39 387 023
Total financial assets	49 327 205	49 334 566	44 949 863	45 000 138	47 444 181	47 488 078
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT AND LOSS
Financial derivatives	32 927	32 927	37 840	37 840	9 990	9 990
Total financial liabilities at fair value through profit and loss	32 927	32 927	37 840	37 840	9 990	9 990
FINANCIAL LIABILITIES FAIR VALUE HEDGING
Liabilities created on issuance of securities	471 324	470 232	977 371	986 257	508 146	515 581
Total financial liabilities fair value hedging	471 324	470 232	977 371	986 257	508 146	515 581
FINANCIAL LIABILITIES AT AMORTIZED COST
Liabilities created on issuance of securities	32 141 865	31 516 828	28 558 310	27 677 657	31 409 652	30 977 884
Deposits from customers	13 606 782	13 606 782	12 773 731	12 773 731	12 901 004	12 901 004
Total financial liabilities at amortized cost	45 748 647	45 123 610	41 332 041	40 451 388	44 310 656	43 878 888
Total financial liabilities	46 252 898	45 626 769	42 347 251	41 475 485	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

30.09.2022 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	801 640	5 043 302	0	5 844 943
Shareholdings	0	0	1 187	1 187
Financial derivatives	0	118 114	0	118 114
Total assets at fair value	801 640	5 161 416	1 187	5 964 244
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)	0	32 927	0	32 927
Total financial liabilities at fair value	0	32 927	0	32 927

30.09.2021 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	596 150	4 668 712	0	5 264 862
Shareholdings	0	0	1 274	1 274
Financial derivatives	0	44 845	0	44 845
Total assets at fair value	596 150	4 713 557	1 274	5 310 981
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)	0	37 840	0	37 840
Total financial liabilities at fair value	0	37 840	0	37 840

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	30.09.2022	30.09.2021	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	30.09.2022	30.09.2021	31.12.2021
Bond debt, nominal amount	33 864 499	30 822 035	33 426 640
Adjustments	-30 735	61 053	60 603
Accrued interest	92 425	29 592	38 554
Own holdings, nominal amount	-1 313 000	-1 377 000	-1 608 000
Total debt securities issued	32 613 189	29 535 681	31 917 798
Interest rate on borrowings through the issuance of securities at the reporting date:	2.71 %	0.76 %	1.10 %
The interest rate is calculated as a weighted average of the act/360 basis. It includes interest rate effects and amortization costs.

NOK THOUSANDS	Balance sheet 31.12.2021	Issued	Matured/ redeemed	Other adjustements	Balance sheet 30.09.2022
Changes in debt securities issued - stock exchange listed covered bonds and cerftificates
Bond debt, nominal amount	33 426 640	5 950 000	-5 508 000	-4 141	33 864 499
Adjustments	60 603	0	0	-91 338	-30 735
Accrued interest	38 554	0	0	53 871	92 425
Own holdings, nominal amount	-1 608 000	0	295 000	0	-1 313 000
Total debt securities issued	31 917 798	5 950 000	-5 213 000	-41 608	32 613 189

Note 8 Financial assets and liabilities subject to net settlement

30.09.2022 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	118 114	0	118 114	-32 927	0	85 186
Total	118 114	0	118 114	-32 927	0	85 186
LIABILITIES
Financial derivatives	32 927	0	32 927	-32 927	-1 714	0
Total	32 927	0	32 927	-32 927	-1 714	0

30.09.2021 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	9 397	0	9 397	-9 397	0	0
Total	9 397	0	9 397	-9 397	0	0
LIABILITIES
Financial derivatives	11 954	0	11 954	-9 397	-1 924	634
Total	11 954	0	11 954	-9 397	-1 924	634

The purpose of the note is to show the potential effect of netting agreements at the KLP Banken Group . The note shows derivative positions in the financial position statement.
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

Note 9 Transactions with related parties

NOK THOUSANDS	01.01.2022 -30.09.2022	01.01.2021 -30.09.2021	01.01.2021 -31.12.2021
KLP, fees lending management	42 833	44 550	59 400
KLP Skadeforsikring AS, fees	101	0	0
KLP Kapitalforvaltning AS, fees for services provided	0	-98	-171
KLP, rent	-2 037	-2 060	-2 699
KLP Skipsbygget AS, rent	-1 363	-1 641	-1 727
KLP Bassengtomten AS, rent parking	-67	-87	-87
KLP Eiendomsdrift AS, cost office buildings	-532	-366	-366
KLP, pension premium	-10 922	-9 895	-13 140
KLP, staff services (at cost)	-52 651	-49 309	-68 399
KLP Group companies, subsidised interest employee loans	10 335	8 777	11 825

NOK THOUSANDS	30.09.2022	30.09.2021	31.12.2021
BALANCES
KLP, net internal accounts	-6 301	-22	-1 667
KLP, loan settlement	-25 801	-22 165	-1 333
KLP Group companies, net other internal accounts	1 366	663	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	30.09.2022	30.09.2021	31.12.2021
Intercompany receivables	2 701	2 112	2 196
Miscellaneous receivables	0	114	0
Prepaid expenses	6 155	10 958	21
Total other assets	8 856	13 185	2 217

Note 11 Other liabilities and provision for accrued costs

NOK THOUSANDS	30.09.2022	30.09.2021	31.12.2021
Creditors	510	1 418	2 867
Intercompany payables	33 437	23 226	4 150
Other liabilities	109 273	48 062	31 352
Total other liabilities	143 219	72 706	38 369
Withholding tax	1 929	1 723	2 813
Social security contributions	1 408	1 346	2 265
Capital activity tax	509	497	820
Holiday pay	4 883	4 456	6 273
Pension obligations	38 408	54 113	36 693
VAT	697	735	211
Provisioned costs	6 964	6 867	3 176
Total accrued costs and liabilities	54 798	69 737	52 249

Note 12 Capital adequacy

NOK THOUSANDS	30.09.2022	30.09.2021	31.12.2021
Share capital and share premium fund	2 190 000	1 890 000	1 890 000
Other owners' equity	602 142	536 801	630 782
Total owners' equity	2 792 142	2 426 801	2 520 782
Adjustments due to requirements for proper valuation	-5 845	-5 265	-6 001
Deduction goodwill and other intangible assets	-16 155	-15 217	-16 789
Core capital/Tier 1 capital	2 770 142	2 406 320	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)	2 770 142	2 406 320	2 497 992
Capital requirement	1 127 732	1 035 315	1 070 801
Surplus of own funds (Tier 1 and Tier 2 capital)	1 642 410	1 371 005	1 427 191
Estimate basis credit risk:
Institutions	267 259	281 151	286 512
Retail	565 900	310 658	302 739
Local and regional authorities (incl. municipalities/county administations)	3 825 005	3 527 441	3 628 147
Investments with mortgage security in real estate	8 234 402	7 566 523	7 824 605
Investments fallen due	45 423	37 868	36 584
Covered bonds	460 261	435 748	498 905
Other holdings	28 848	140 253	131 535
Calculation basis credit risk	13 427 098	12 299 642	12 709 027
Credit risk	1 074 168	983 971	1 016 722
Operating risk	53 416	51 225	53 416
Credit valuation adjustments (CVA)	149	119	663
Total capital requirement assets	1 127 732	1 035 315	1 070 801
Core capital adequacy ratio	19.7 %	18.6 %	18.7 %
Supplementary capital ratio	0.0 %	0.0 %	0.0 %
Capital adequacy ratio	19.7 %	18.6 %	18.7 %
Leverage ratio	5.5 %	5.3 %	5.2 %

CAPITAL REQUIREMENT PER 30.09.2022	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	1.5 %	0.0 %	1.5 %
Pilar 2-requirement	1.5 %	0.0 %	1.5 %
Current capital requirement incl. buffers	13.0 %	3.5 %	16.5 %
Capital requirement leverage ratio	3.0 %	0.0 %	3.0 %

Note 13 Fixed-income securities

NOK THOUSANDS	30.09.2022		30.09.2021		31.12.2021
	Acquisition cost	Market value	Acquisition cost	Market value	Acquisition cost	Market value
Certificates	80 037	80 185	567 611	567 687	567 264	567 443
Bonds	5 793 584	5 764 758	4 695 024	4 697 175	5 437 376	5 433 656
Total fixed-income securities	5 873 620	5 844 943	5 262 635	5 264 862	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 third quarter of 2022 the company has made a recalibration of the PD-model and data from 2020 and 2021 have been included. The recalibration has given a general decrease in the PD for the portfolio. The level for the expected loss will despite of the decrease in PD be in the same level as previous 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	91	-65	-26	0
Transfer to stage 2	-49	52	-3	0
Transfer to stage 3	-9	-24	33	0
Net changes	74	-4	-891	-821
New losses	319	100	30	448
Write-offs	-463	-101	-266	-829
Change in risk model	-1 924	1 427	442	-54
Closing balance ECL 30.09.2022	2 385	1 668	1 072	5 126
Changes (01.01.2022 - 30.09.2022)	-1 961	1 386	-681	-1 256

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	-4	4	0	0
Transfer to stage 3	-1	-11	12	0
Net changes	-125	-63	-861	-1 049
New losses	117	6	0	123
Write-offs	-6	0	-154	-160
Closing balance ECL 30.09.2022	144	52	494	691
Changes (01.01.2022 - 30.09.2022)	-14	-68	-1 003	-1 086

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	-9	0	0	-9
New losses	28	0	0	28
Write-offs	-14	0	0	-14
Closing balance ECL 30.09.2022	181	0	0	181
Changes (01.01.2022 - 30.09.2022)	5	0	0	5

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	86	-60	-26	0
Transfer to stage 2	-45	48	-3	0
Transfer to stage 3	-8	-13	21	0
Net changes	-269	-42	-19	-330
New losses	172	93	21	287
Write-offs	0	0	0	0
Change in risk model	-1 883	1 427	454	-2
Closing balance ECL 30.09.2022	2 040	1 616	514	4 170
Changes (01.01.2022 - 30.09.2022)	-1 947	1 454	447	-46

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	-2	0	0	-2
New losses	2	0	0	2
Closing balance ECL 30.09.2022	19	0	0	19
Changes (01.01.2022 - 30.09.2022)	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	0	0	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	0	0	0	0
Net changes	35	0	-122	-87
New losses	0	0	8	8
Write-offs	0	0	0	0
Change in risk model	-40	0	-12	-52
Closing balance ECL 30.09.2022	0	0	64	64
Changes (01.01.2022 - 30.09.2022)	-5	0	-126	-130

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	234 380	-233 409	-971	0
Transfer to stage 2	-140 180	140 287	-107	0
Transfer to stage 3	-6 259	-9 269	15 528	0
Net changes	-941 638	-4 468	-3 144	-949 251
New losses	10 842 932	9 349	748	10 853 028
Write-offs	-7 522 446	-135 893	-5 225	-7 663 564
Lending 30.09.2022	41 871 220	294 184	42 782	42 208 186

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	232 314	-232 172	-142	0
Transfer to stage 2	-138 406	138 406	0	0
Transfer to stage 3	-5 695	-8 833	14 528	0
Net change	-3 942 647	-96 375	-7 644	-4 046 666
New lending	7 711 229	9 308	660	7 721 196
Write-offs	-2 419 231	-43 432	-58	-2 462 721
Lending 30.09.2022	21 220 181	291 105	40 909	21 552 195

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	-521 318	0	0	-521 318
New lending	2 898 586	0	0	2 898 586
Write-offs	-1 415 778	0	0	-1 415 778
Lending 30.09.2022	18 837 424	0	0	18 837 424

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	2 066	-1 237	-829	0
Transfer to stage 2	-1 775	1 882	-107	0
Transfer to stage 3	-559	-436	995	0
Net change	-349	-554	-553	-1 456
New lending	3 432	41	76	3 549
Lending 30.09.2022	41 098	3 079	1 783	45 961

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	-164 868	0	0	-164 868
New lending	229 638	0	0	229 638
Lending 30.09.2022	1 772 302	0	0	1 772 302

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	0	0	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	-4	0	4	0
Net change	107	0	-114	-7
New lending	48	0	12	59
Lending 30.09.2022	215	0	90	304

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	32 044	-31 964	-80	0
Transfer to stage 2	-13 503	13 505	-3	0
Transfer to stage 3	-128	-14	143	0
Net change	25 653	2 764	-102	28 315
New lending	196 488	286	0	196 774
Write-offs	-77 075	-2 390	-18	-79 483
Lending 30.09.2022	1 321 786	44 788	94	1 366 668

Losses recognised in the profit and loss account consist of:

NOK THOUSANDS	01.01.2022 -30.09.2022	01.01.2021 -30.09.2021	01.01.2021 -31.12.2021
Change in loss provisions in stage 1, 2 and 3	276	-1 837	-2 509
Established losses	-776	-4	-356
Recovery for previously established losses	550	500	566
Total losses in the income statement	50	-1 341	-2 299

Note 15 Contingent liabilites

NOK THOUSANDS	30.09.2022	30.09.2021	31.12.2021
Credit facilities for lending not utilized	1 110 784	895 453	949 244
Credit facilities issued credit card	255 883	264 269	271 818
Loan promise	1 437 420	1 548 156	1 458 520
Total contingent liabilities	2 804 088	2 707 878	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	Q3 2022	Q3 2021	01.01.2022 -30.09.2022	01.01.2021 -30.09.2021	01.01.2021 -31.12.2021
Net gain/(loss) on fixed-income securities	-7 526	-2 745	-34 636	-2 163	-12 528
Net gain/(loss) financial derivatives and realized amortization linked to lending	44	0	337	0	-750
Net gain/(loss) financial derivatives and realized repurchase of own debt	-573	-3 309	-11 934	-28 639	-28 146
Net value change lending and borrowing, hedge accounting	0	514	0	336	336
Net accrual of over/under rates borrowings and securities	1 380	891	4 141	7 738	9 133
Other financial income and expenses	-242	-243	-725	-729	-941
Total net gain/(loss) on financial instruments	-6 916	-4 893	-42 817	-23 457	-32 896

Note 17 Leases

NOK THOUSANDS	30.09.2022	30.09.2021	31.12.2021
	Property
RIGHT-OF-USE ASSETS
Opening balance 01.01.	18 236	1 948	1 948
Depreciation	-1 403	-1 169	-1 636
Deduction	0	0	-779
Addition	0	0	18 703
Closing balance	16 833	779	18 236
LEASE LIABILITIES
Opening balance 01.01.	18 323	2 023	2 023
Repayments	-1 166	-1 202	-1 582
Deduction	0	0	-821
Addition	0	0	18 703
Closing balance	17 157	821	18 323

NOK THOUSANDS	Q3 2022	Q2 2022	01.01.2022 -30.09.2022	01.01.2021 -30.09.2021	01.01.2022 -31.12.2021
	Property
Interest expense lease liabilities	81	6	247	22	109
Interest expense lease liabilities	81	6	247	22	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	30.09.2022	30.09.2021	31.12.2021
Capitalized net liability	36 693	41 550	41 550
Pension costs taken to profit/loss	10 745	9 738	12 983
Finance costs taken to profit/loss	725	729	942
Actuarial gains and losses incl. social security contributions	-3 280	11 552	-7 136
Premiums/supplement paid-in including admin	-6 475	-9 456	-11 646
Capitalized net liability	38 408	54 113	36 693

ASSUMPTIONS	30.09.2022	30.09.2021	31.12.2021
Discount rate	3.20%	2.00%	1.90 %
Salary growth	3.75%	2.25%	2.75 %
The National Insurance basic amount (G)	3.50%	2.00%	2.50 %
Pension increases	2.75%	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 3.3 million as of 30.09.2022. The change is recognized in comprehensive income.

Quarterly earnings trend

NOK MILLIONS	Q3 2022	Q2 2022	Q1 2022	Q4 2021	Q3 2021
Interest income	320.2	252.5	206.4	185.2	166.5
Interest expense	-221.0	-165.6	-134.3	-109.4	-86.6
Net interest income	99.2	86.9	72.1	75.8	80.0
Commision income and income from banking services	8.1	7.9	5.7	6.0	5.7
Commision cost and cost from banking services	-0.7	-0.6	-0.5	-0.6	-0.6
Net charges and commission income	7.4	7.2	5.2	5.4	5.2
Other fee income	12.7	15.1	15.1	14.9	14.9
Net gain/(loss) financial instruments	-6.9	-25.8	-10.1	-9.4	-4.9
Total other operating income	5.8	-10.7	5.0	5.4	10.0
Salaries and administrative costs	-18.1	-22.3	-21.8	-23.5	-17.7
Depreciation	-1.0	-1.0	-1.0	-1.4	-1.7
Other operating expenses	-38.1	-36.2	-41.2	-38.4	-36.1
Net loan losses	-0.2	0.2	0.1	-1.0	-0.2
Total operating expenses	-57.4	-59.3	-64.0	-64.3	-55.6
Operating profit/loss before tax	55.0	24.2	18.3	22.4	39.5
Tax ordinary income	-13.1	-6.0	24.3	-5.2	-9.2
Profit/loss for the period	41.9	18.2	42.6	17.1	30.2
Other comprehensive income	0.5	-15.3	18.1	18.7	-19.3
Tax on other comprehensive income	-0.1	3.8	-4.5	-4.7	4.8
Other comprehensive income for the period	0.3	-11.5	13.6	14.0	-14.5
Comprehensive income for the period	42.2	6.7	56.2	31.1	15.8

Key figures – accumulated

NOK MILLIONS	Q3 2022	Q2 2022	Q1 2022	Q4 2021	Q3 2021
Pre-tax income	97.5	42.5	18.3	116.1	93.8
Net interest income	258.2	159.0	72.1	308.6	232.8
Other operating income	62.8	42.7	20.3	78.9	58.6
Other operating cost and depreciation	-180.7	-123.3	-64.0	-238.5	-174.2
Net gain/(loss) financial instruments	-42.8	-35.9	-10.1	-32.9	-23.5
Deposits	13 606.8	13 464.9	13 372.2	12 901.0	12 773.7
Lending customers	23 368.6	23 041.8	0.0	0.0	21 364.8
Lending with public sector guarantee	18 717.6	18 321.1	0.0	0.0	16 842.2
Non-performing loans	42.8	46.4	45.6	36.0	31.5
Total liabilities created on issuance of securities	32 613.2	32 443.5	31 862.2	31 917.8	29 535.7
Other borrowing	0.0	0.0	0.0	0.0	0.0
Total assets	49 369.5	48 703.7	47 954.0	47 481.9	44 980.2
Average total assets	48 425.7	48 092.8	47 717.9	45 084.9	43 834.1
Equity	2 897.3	2 555.1	2 548.3	2 520.8	2 489.7
Interest net	0.53 %	0.33 %	0.15 %	0.68 %	0.53 %
Profit/loss from ordinary operation before taxes	0.20 %	0.09 %	0.04 %	0.26 %	0.21 %
Return on equity	5.15 %	3.37 %	2.91 %	4.78 %	5.15 %
Capital adequacy ratio	19.7 %	17.7 %	18.1 %	18.7 %	18.6 %
Liquidity coverage ratio (LCR)	472 %	425 %	242 %	495 %	353 %

Contact information

KLP BANKEN

Beddingen 8
7042 Trondheim

Org. 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