Q3 2023 Interim report

KLP Banken Group

Interim Financial Statements 3/2023

Main features by quarter end:

Increased net interest income and profit
Lower lending growth
Significantly lower losses on financial instruments

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 122 (118) 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

At the end of the third quarter, the KLP Banken Group achieved a pre-tax profit of NOK 203.1 (97.5) million. The change is mainly related to increased net interest income in both business areas and reduced losses on financial instruments. Profit and loss per business area show NOK 139.0 (57.8) million in the retail market segment and NOK 64.1 (39.7) million in the public sector segment. Group total income after taxes and actuarial adjustments amounted to NOK 215.6 (105.2) million by third quarter.

Net interest income for the KLP Banken Group by third quarter end amounted to NOK 339.7 (258.2) million. The change is mainly due to increased margins between lending and financing on average and from the fact that increased interest rates give a higher return on lending financed with equity.

Net charges and commission income amounted NOK 20.9 (19.8) 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 46.0 (42.9) million by third quarter.

Operating expenses including depreciations amounted to NOK -199.6 (-180.7) million. The increase is mainly due to increased external service prices as well as wage growth.

At the end of the third quarter the income statement includes a net loss on financial instruments of NOK -2.9 (-42.8) 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 change from last year is mainly linked to the fact that the value of the liquidity portfolio has been more stable.

So far in 2023 realized losses and loan loss provisions amounts to NOK -1.0 (0.1) million. The increase in interest rates in recent years has not yet let to significantly increased credit losses on mortgages, but high inflation and a higher level of interest rates may in the long run lead to a reduced serviceability of loan customers. In 2023 there are also no realized loan losses related to public lending.

Lending and credits

On 30 September 2023, the KLP Banken Group had a lending balance of NOK 43.1 (42.1) billion. The distribution between the retail market and public sector lending was NOK 23.7 (23.4) billion and NOK 19.4 (18.7) billion, respectively.

In the retail market, KLP Banken had a mortgage growth of NOK 0.5 (1.3) billion so far in 2023. Reduced demand for new loans and refinancing is believed to be linked to increased interest rates and inflation contributing to lower market growth. New mortgage loans payments so far in 2023 amount to NOK 6.0 (7.0) billion. The main target group of mortgage loans are members of the pension schemes in KLP.

Mortgage loans amounting to NOK 3.5 (3.8) 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 have been at a stable level since the turn of last year. However, unused credit and the number of active credit cards customers have steadily increased since the turn of last year.

The KLP Banken public sector lending balance has also increased since last year-end, by NOK 0.2 (0.9) billion. Managed public sector lending on behalf of KLP has additionally increased by NOK 2.9 billion. New payments of public loans so far in 2023 amount to NOK 7.7 (6.0) billion for KLP and KLP Banken together.

Liquid investments

Available liquidity is invested in other banks and in interest-bearing securities. Deposits in credit institutions were NOK 1.3 (1.2) billion. Securities held, booked at fair value in the KLP Banken Group, was NOK 4.7 (5.8) billion at the end of the quarter.

Net profit and loss due to market value changes on securities held at third quarter show a booked net income of NOK 3.1 (-34.6) million.

Borrowing

The KLP Banken Group's external financing comprises deposits, sertificates and bonds. On the reporting date, deposits from individuals and companies amounted to NOK 14.4 (13.6) billion and issued securities amounted to NOK 31.6 (32.6) billion. Of the outstanding volume of issued securities, covered bonds (OMF) issued by KLP Kommunekreditt AS and KLP Boligkreditt AS amounted to NOK 19.4 (18.8) billion and NOK 11.2 (12.6) billion respectively. All covered bond issues have achieved Aaa rating. Outstanding securities debt in KLP Banken AS amounted to NOK 1.0 (1.2) 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 high credit quality requirements and in securities in accordance with Board-approved credit lines.

At the end of third quarter 2023, eligible Tier 1 and Tier 2 capital i.a.w. the capital adequacy rules were NOK 2 898 (2 770) 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 20.2 (19.7) percent at the reporting time. The minimum statutory requirement is 14.0 percent core capital adequacy and 17.5 percent capital adequacy. Leverage ratio was 5.8 (5.5) percent. Here the requirement is 3.0 percent.

Income statementKLP Banken Group

NOTES	NOK THOUSANDS	Q3 2023	Q3 2022	01.01.2023 -30.09.2023	01.01.2022 -30.09.2022	01.01.2022 -31.12.2022
	Interest income, effective interest method	545 681	280 704	1 444 913	681 424	1 079 475
	Other interest income	88 293	39 534	258 646	97 739	174 402
3	Total interest income	633 974	320 238	1 703 559	779 162	1 253 877
	Interest expense, effective interest method	-483 213	-206 868	-1 275 180	-480 006	-818 588
	Other interest expense	-31 845	-14 155	-88 668	-40 968	-66 602
3	Total interest costs	-515 059	-221 023	-1 363 848	-520 975	-885 190
3	Net interest income	118 915	99 215	339 711	258 188	368 687
	Commision income and income from banking services	8 355	8 140	22 832	21 737	29 483
	Commision cost and cost from banking services	-670	-741	-1 957	-1 914	-2 566
	Net charges and commission income	7 686	7 399	20 875	19 823	26 917
	Other fee income	15 313	12 698	45 975	42 934	58 105
16	Net gain/ (loss) financial instruments	6 433	-6 916	-2 893	-42 817	-26 252
	Total other operating income	21 745	5 782	43 083	116	31 853
	Salaries and administrative costs	-20 644	-18 089	-63 841	-62 191	-87 701
	Depreciation	-945	-1 005	-2 888	-3 011	-4 010
	Other operating expenses	-44 558	-38 119	-132 826	-115 521	-154 945
14	Net loan losses	-574	-196	-1 022	50	-323
	Total operating expenses	-66 720	-57 410	-200 577	-180 672	-246 979
	Operating profit/loss before tax	81 626	54 985	203 091	97 454	180 478
	Tax ordinary income	-19 603	-13 089	994	5 238	-14 474
	Profit/loss for the period	62 023	41 896	204 085	102 692	166 004
	Estimate difference, pension obligation and assets	-2 016	458	15 315	3 280	11 094
	Tax on actuarial gains and losses	504	-115	-3 829	-820	-2 774
	Items that will not be reclassified to profit and loss	-1 512	344	11 486	2 460	8 321
	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	-1 512	344	11 486	2 460	8 321
	Comprehensive income for the period	60 511	42 240	215 571	105 152	174 324

Balance sheetKLP Banken Group

NOTES	NOK THOUSANDS	30.09.2023	30.09.2022	31.12.2022
	ASSETS
5	Claims on central banks	74 572	72 569	72 960
5	Loans to credit institutions	1 274 225	1 204 247	1 320 087
4,5	Loans to customers	43 124 278	42 086 145	42 375 461
5,6,13	Fixed-income securities	4 749 545	5 844 943	6 564 627
5,6	Shareholdings	1 187	1 187	1 187
5,6,8	Financial derivatives	141 113	118 114	139 153
	Intangible assets	14 329	16 155	15 624
17	Right-of-use assets	14 962	16 833	16 365
	Fixed assets	436	436	436
10	Other assets	8 435	8 856	4 816
	Total assets	49 403 084	49 369 486	50 510 716
	LIABILITIES AND OWNERS EQUITY
	LIABILITIES
5,7	Debt securities issued	31 615 951	32 613 189	33 484 932
5	Deposits and borrowings from the public	14 350 590	13 606 782	13 778 881
5,6,8	Financial derivatives	40 651	32 927	25 939
	Deferred tax liabilities	4 143	4 120	40 343
17	Lease liabilities	15 544	17 157	16 761
11	Other liabilities	217 093	143 219	143 180
11	Provision for accrued costs and liabilities	26 665	54 798	54 215
	Total liabilities	46 270 638	46 472 192	47 544 250
	EQUITY
	Share capital	1 140 000	1 140 000	1 140 000
	Share premium	1 050 000	1 050 000	1 050 000
	Other owners' eqyity	726 875	602 142	776 466
	Profit for the period	215 571	105 152	0
	Total equity	3 132 446	2 897 294	2 966 466
	Total liabilities and equity	49 403 084	49 369 486	50 510 716

Statement of changes in equityKLP Banken Group

2023 NOK THOUSANDS	Share capital	Share premium	Other equity	Total owners’ equity
Equity 1 January 2023	1 140 000	1 050 000	776 466	2 966 466
Profit for the period	0	0	204 085	204 085
Other comprehensive income	0	0	11 486	11 486
Total comprehensive income for the period	0	0	215 571	215 571
Group contribution received during the period	0	0	159 535	159 535
Group contribution paid during the period	0	0	-209 126	-209 126
Total transactions with the owners	0	0	-49 591	-49 591
Equity 30 September 2023	1 140 000	1 050 000	942 446	3 132 446

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

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
Income for the year	0	0	166 004	166 004
Other comprehensive income	0	0	8 321	8 321
Comprehensive income for the year	0	0	174 324	174 324
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 31 December 2022	1 140 000	1 050 000	776 466	2 966 466

Statement of cash flowKLP Banken Group

NOK THOUSANDS	01.01.2023 -30.09.2023	01.01.2022 -30.09.2022	01.01.2022 -31.12.2022
OPERATING ACTIVITIES
Payments received from customers – interest, commission and charges	1 311 446	618 379	984 166
Payments to customers – interest, commission and charges	-310 591	-98 510	-168 854
Disbursements on loans to customers and credit institutions	-10 293 329	-12 404 786	-15 659 148
Receipts on loans to customers	9 616 175	10 233 142	13 246 513
Net receipts on customer deposits banking	571 593	706 083	877 993
Disbursements on operations	-132 719	-112 833	-153 688
Payments to staff, pension schemes, employer's social security contribution etc.	-72 361	-62 308	-80 949
Interest investment accounts	41 383	14 758	31 284
Net receipts/disbursements from operating activities	41 290	127 168	156 254
Net cash flow from operating activities	772 888	-978 908	-766 429
INVESTMENT ACTIVITIES
Receipts on the sale of securities	4 400 411	3 331 631	4 783 697
Payments on the purchase of securities	-2 532 416	-3 202 793	-5 348 540
Receipts of interest from securities	160 869	62 545	101 691
Payments on the purchase of tangible fixed assets	-191	-974	-974
Net cash flow from investment activities	2 028 673	190 409	-464 127
FINANCING ACTIVITIES
Receipts on loans	7 200 000	5 950 000	7 150 000
Repayments and redemption of securities debt	-7 300 000	-5 508 000	-5 808 000
Change in securities debt, own funds	-1 791 696	236 476	118 142
Net payment of interest on loans	-890 098	-355 824	-580 002
Payment of lease liabilities	-1 216	-1 363	-1 563
Group contributions paid	-49 591	-28 640	-28 640
Change in owners' equity	0	300 000	300 000
Net cash flows from financing activities	-2 832 602	592 650	1 149 938
Net cash flow during the period	-31 041	-195 849	-80 618
Cash and cash equivalents at the start of the period	1 340 377	1 420 995	1 420 995
Cash and cash equivalents at the end of the period	1 309 336	1 225 146	1 340 377
Net receipts/disbursements (-)	-31 041	-195 849	-80 618

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 2023 – 30 September 2023, with a specification of the results in the 3rd 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 2022, please see the annual report for further information.

Note 3 Net interest income

NOK THOUSANDS	Q3 2023	Q3 2022	01.01.2023 -30.09.2023	01.01.2022 -30.09.2022	01.01.2022 -31.12.2022
Interest income on loans to customers	526 287	272 395	1 399 674	664 697	1 048 171
Interest income on loans to credit institutions	19 394	8 309	45 240	16 727	31 304
Total interest income, effective interest method	545 681	280 704	1 444 913	681 424	1 079 475
Interest income on bonds and certificates	54 162	28 788	162 450	70 431	120 291
Other interest income	34 131	10 745	96 196	27 307	54 110
Total other interest income	88 293	39 534	258 646	97 739	174 402
Total interest income	633 974	320 238	1 703 559	779 162	1 253 877
Interest expenses on deposits to KLP Banken	-115 939	-37 038	-298 179	-84 363	-149 986
Interest expenses on issued securities	-367 200	-169 748	-976 776	-395 397	-668 276
Interest expense lease liabilities	-74	-81	-225	-247	-326
Total interest expense, effective interest method	-483 213	-206 868	-1 275 180	-480 006	-818 588
Other interest expenses	-28 269	-9 903	-77 564	-28 213	-49 595
Interest expenses on deposits to customers	-3 576	-4 252	-11 104	-12 755	-17 007
Total other interest expense	-31 845	-14 155	-88 668	-40 968	-66 602
Total interest expense	-515 059	-221 023	-1 363 848	-520 975	-885 190
Net interest income	118 915	99 215	339 711	258 188	368 687

Note 4 Loans to customers

NOK THOUSANDS	30.09.2023	30.09.2022	31.12.2022
Principal on loans to customers	42 958 704	42 043 058	42 287 934
Credit portfolio	43 107	45 381	43 141
Overdraft current account	121	124	90
Write-downs step 1 and 2	-1 963	-1 534	-1 771
Write-downs step 3	-1 137	-1 045	-933
Loans to customers after write-downs	42 998 832	42 085 984	42 328 461
Accrued interest	254 271	119 815	145 049
Fair value hedging	-128 825	-119 654	-98 049
Loans to customers	43 124 278	42 086 145	42 375 461

Note 5 Categories of financial instruments

NOK THOUSANDS	30.09.2023		30.09.2022		31.12.2022
	Capitalized value	Fair value	Capitalized value	Fair value	Capitalized value	Fair value
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS
Fixed-income securities	4 749 545	4 749 545	5 844 943	5 844 943	6 564 627	6 564 627
Financial derivatives	141 113	141 113	118 114	118 114	139 153	139 153
Shares and holdings	1 187	1 187	1 187	1 187	1 187	1 187
Total financial assets at fair value through profit and loss	4 891 845	4 891 845	5 964 244	5 964 244	6 704 966	6 704 966
FINANCIAL ASSETS FAIR VALUE HEDGING
Loans to and receivables from customers	1 493 349	1 503 950	1 703 279	1 710 640	1 702 745	1 706 638
Total financial assets fair value hedging	1 493 349	1 503 950	1 703 279	1 710 640	1 702 745	1 706 638
FINANCIAL ASSETS AT AMORTIZED COST
Loans to and receivables from credit institutions	74 572	74 572	72 569	72 569	72 960	72 960
Loans to and receivables from central banks	1 274 225	1 274 225	1 204 247	1 204 247	1 320 087	1 320 087
Loans to and receivables from customers	41 630 929	41 630 929	40 382 866	40 382 866	40 672 715	40 672 715
Total financial assets at amortized cost	42 979 727	42 979 727	41 659 683	41 659 683	42 065 762	42 065 762
Total financial assets	49 364 920	49 375 521	49 327 205	49 334 566	50 473 474	50 477 367
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT AND LOSS
Financial derivatives	40 651	40 651	32 927	32 927	25 939	25 939
Total financial liabilities at fair value through profit and loss	40 651	40 651	32 927	32 927	25 939	25 939
FINANCIAL LIABILITIES FAIR VALUE HEDGING
Liabilities created on issuance of securities	1 687 674	1 689 332	471 324	470 232	1 728 703	1 745 090
Total financial liabilities fair value hedging	1 687 674	1 689 332	471 324	470 232	1 728 703	1 745 090
FINANCIAL LIABILITIES AT AMORTIZED COST
Liabilities created on issuance of securities	29 928 276	29 918 720	32 141 865	31 987 060	31 756 229	31 711 938
Deposits from customers	14 350 590	14 350 590	13 606 782	13 606 782	13 778 881	13 778 881
Total financial liabilities at amortized cost	44 278 867	44 269 311	45 748 647	45 593 842	45 535 109	45 490 818
Total financial liabilities	46 007 192	45 999 293	46 252 898	46 097 001	47 289 751	47 261 847

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.

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

30.09.2023 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	827 157	3 922 388	0	4 749 545
Shareholdings	0	0	1 187	1 187
Financial derivatives	0	141 113	0	141 113
Total assets at fair value	827 157	4 063 500	1 187	4 891 845
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)	0	40 651	0	40 651
Total financial liabilities at fair value	0	40 651	0	40 651

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

31.12.2022 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	804 841	5 759 785	0	6 564 627
Shareholdings	0	0	1 187	1 187
Financial derivatives	0	139 153	0	139 153
Total assets at fair value	804 841	5 898 938	1 187	6 704 966
LIABILITIES BOOKED AT FAIR VALUE
Financial derivatives (liabilities)	0	25 939	0	25 939
Total financial liabilities at fair value	0	25 939	0	25 939

NOK THOUSANDS	30.09.2023	30.09.2022	31.12.2022
CHANGES IN LEVEL 3 UNLISTED SHARES
Opening balance	1 187	1 187	1 187
Additions/purchases of shares	0	0	0
Unrealized changes	0	0	0
Closing balance	1 187	1 187	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	30.09.2023	30.09.2022	31.12.2022
Bond debt, nominal amount	34 658 978	33 864 499	34 763 119
Adjustments	-72 213	-30 735	9 932
Accrued interest	237 186	92 425	143 881
Own holdings, nominal amount	-3 208 000	-1 313 000	-1 432 000
Total debt securities issued	31 615 951	32 613 189	33 484 932
Interest rate on borrowings through the issuance of securities at the reporting date:	5.02 %	2.71%	3.62 %
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 31.12.2022	Issued	Matured/ redeemed	Other adjustements	Balance sheet 30.09.2023
Changes in debt securities issued - stock exchange listed covered bonds and cerftificates
Bond debt, nominal amount	34 763 119	7 200 000	-7 300 000	-4 141	34 658 978
Adjustments	9 932	0	0	-82 145	-72 213
Accrued interest	143 881	0	0	93 304	237 186
Own holdings, nominal amount	-1 432 000	0	-1 776 000	0	-3 208 000
Total debt securities issued	33 484 932	7 200 000	-9 076 000	7 019	31 615 951

Note 8 Financial assets and liabilities subject to net settlement

30.09.2023 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	141 113	0	141 113	-40 651	-104 349	17 441
Total	141 113	0	141 113	-40 651	-104 349	17 441
LIABILITIES
Financial derivatives	40 651	0	40 651	-40 651	0	0
Total	40 651	0	40 651	-40 651	0	0

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

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.
31.12.2022 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	139 153	0	139 153	-25 939	0	113 214
Total	139 153	0	139 153	-25 939	0	113 214
LIABILITIES
Financial derivatives	25 939	0	25 939	-25 939	-1 724	0
Total	25 939	0	25 939	-25 939	-1 724	0

Note 9 Transactions with related parties

NOK THOUSANDS	01.01.2023 -30.09.2023	01.01.2022 -30.09.2022	01.01.2022 -31.12.2022
KLP, fees lending management	45 938	42 833	57 951
KLP Skadeforsikring AS, fees	38	101	155
KLP Kapitalforvaltning AS, fees for services provided	0	0	-180
KLP, rent	-2 543	-2 037	-2 755
KLP Skipsbygget AS, rent	-1 628	-1 363	-1 867
KLP Bassengtomten AS, rent parking	-72	-67	-90
KLP Eiendomsdrift AS, cost office buildings	-401	-532	-532
KLP, pension premium	-10 451	-10 922	-14 485
KLP, staff services (at cost)	-56 591	-52 651	-71 410
KLP Group companies, subsidised interest employee loans	13 195	10 335	14 120

NOK THOUSANDS	30.09.2023	30.09.2022	31.12.2022
BALANCES
KLP, net internal accounts	-3 125	-6 301	-6
KLP, loan settlement	-10 862	-25 801	-28 988
KLP Group companies, net other internal accounts	1 512	1 366	1 252
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	30.09.2023	30.09.2022	31.12.2022
Intercompany receivables	3 058	2 701	2 569
Miscellaneous receivables	25	0	2
Prepaid expenses	5 352	6 155	2 245
Total other assets	8 435	8 856	4 816

Note 11 Other liabilities and provision for accrued costs

NOK THOUSANDS	30.09.2023	30.09.2022	31.12.2022
Creditors	4 698	510	1 742
Intercompany payables	15 533	33 437	30 311
Short-term balances with credit institutions	104 700	90 600	108 100
Other liabilities	92 162	18 673	3 026
Total other liabilities	217 093	143 219	143 180
Withholding tax	1 892	1 929	2 886
Social security contributions	1 531	1 408	2 425
Capital activity tax	520	509	869
Holiday pay	4 844	4 883	6 708
Pension obligations	14 247	38 408	32 092
VAT	954	697	28
Provisioned costs	2 676	6 964	9 206
Total accrued costs and liabilities	26 665	54 798	54 215

Note 12 Capital adequacy

NOK THOUSANDS	30.09.2023	30.09.2022	31.12.2022
Share capital and share premium fund	2 190 000	2 190 000	2 190 000
Other owners' equity	726 875	602 142	776 466
Total owners' equity	2 916 876	2 792 142	2 966 466
Adjustments due to requirements for proper valuation	-4 750	-5 845	-6 565
Deduction goodwill and other intangible assets	-14 329	-16 155	-15 624
Core capital/Tier 1 capital	2 897 797	2 770 142	2 944 277
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)	2 897 797	2 770 142	2 944 277
Capital requirement	1 146 913	1 127 732	1 138 790
Surplus of own funds (Tier 1 and Tier 2 capital)	1 750 884	1 642 410	1 805 487
Estimate basis credit risk:
Institutions	281 982	267 259	298 953
Retail	629 381	565 900	501 314
Local and regional authorities (incl. municipalities/county administations)	3 916 156	3 825 005	3 963 118
Investments with mortgage security in real estate	8 323 439	8 234 402	8 168 815
Investments fallen due	58 185	45 423	46 208
Covered bonds	372 612	460 261	502 740
Other holdings	26 563	28 848	24 731
Calculation basis credit risk	13 608 317	13 427 098	13 505 877
Credit risk	1 088 665	1 074 168	1 080 470
Operating risk	58 035	53 416	58 035
Credit valuation adjustments (CVA)	212	149	284
Total capital requirement assets	1 146 913	1 127 732	1 138 790
Core capital adequacy ratio	20.2 %	19.7 %	20.7 %
Supplementary capital ratio	0.0 %	0.0 %	0.0 %
Capital adequacy ratio	20.2 %	19.7 %	20.7 %
Leverage ratio	5.8 %	5.5 %	5.7 %

CAPITAL REQUIREMENT PER 30.09.2023	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	2.5 %	0.0 %	2.5 %
Pilar 2-requirement	1.5 %	0.0 %	1.5 %
Current capital requirement incl. buffers	14.0 %	3.5 %	17.5 %
Capital requirement leverage ratio	3.0 %	0.0 %	3.0 %

Note 13 Fixed-income securities

NOK THOUSANDS	30.09.2023		30.09.2022		31.12.2022
	Acquisition cost	Market value	Acquisition cost	Market value	Acquisition cost	Market value
Certificates	336 643	337 104	80 037	80 185	693 949	697 059
Bonds	4 407 723	4 412 441	5 793 584	5 764 758	5 865 698	5 867 567
Total fixed-income securities	4 744 366	4 749 545	5 873 620	5 844 943	6 559 647	6 564 627
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 2023 the companies has not made any adjustments in the expected loss models.
The total loan loss provosions in KLP Banken Group has increased by 10 percent.
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 01.01.2023	2 390	2 090	998	5 478
Transfer to stage 1	675	-531	-145	0
Transfer to stage 2	-36	40	-4	0
Transfer to stage 3	-2	-78	80	0
Net changes	-736	1 383	300	947
New losses	288	94	183	564
Write-offs	-214	-331	-240	-785
Change in risk model	45	0	0	45
Closing balance ECL 30.09.2023	2 409	2 667	1 172	6 249
Changes (01.01.2023 - 30.09.2023)	19	577	175	771
This includes provisions for losses on loans and receivables - unused credit				3 140

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 01.01.2023	144	207	422	774
Transfer to stage 1	8	-8	0	0
Transfer to stage 2	-7	7	0	0
Transfer to stage 3	0	-34	34	0
Net changes	-36	251	221	437
New losses	67	17	154	238
Write-offs	-27	-44	-91	-162
Closing balance ECL 30.09.2023	149	397	740	1 285
Changes (01.01.2023 - 30.09.2023)	5	189	318	512
This includes provisions for losses on loans and receivables - unused credit on mortgages				8

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 01.01.2023	184	0	0	184
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	-8	0	0	-8
New losses	23	0	0	23
Write-offs	-15	0	0	-15
Closing balance ECL 30.09.2023	184	0	0	184
Changes (01.01.2023 - 30.09.2023)	0	0	0	0

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 01.01.2023	2 040	1 883	516	4 440
Transfer to stage 1	667	-523	-145	0
Transfer to stage 2	-29	33	-4	0
Transfer to stage 3	-2	-44	47	0
Net changes	-692	1 132	42	482
New losses	194	77	6	277
Write-offs	-171	-287	-135	-592
Change in risk model	45	0	0	45
Closing balance ECL 30.09.2023	2 052	2 271	328	4 650
Changes (01.01.2023 - 30.09.2023)	12	388	-189	211
This includes provisions for losses on loans and receivables - unused credit on credit card				3 132

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 01.01.2023	21	0	0	21
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	1	0	0	1
New losses	4	0	0	4
Write-offs	-2	0	0	-2
Closing balance ECL 30.09.2023	24	0	0	24
Changes (01.01.2023 - 30.09.2023)	3	0	0	3
This includes provisions for losses on loans and receivables - unused credit on senior loans				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 01.01.2023	0	0	60	60
Transfer to stage 1	0	0	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	0	0	0	0
Net changes	0	0	37	37
New losses	0	0	23	23
Write-offs	0	0	-14	-14
Closing balance ECL 30.09.2023	0	0	106	106
Changes (01.01.2023 - 30.09.2023)	0	0	46	46

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 01.01.2023	41 943 196	489 280	43 654	42 476 129
Transfer to stage 1	109 014	-108 542	-471	0
Transfer to stage 2	-333 332	337 314	-3 982	0
Transfer to stage 3	-6 920	-8 236	15 156	0
Net changes	-1 108 007	-7 811	-4 184	-1 120 002
New losses	9 229 019	86 792	12 089	9 327 900
Write-offs	-7 273 933	-142 323	-10 188	-7 426 444
Lending 30.09.2023	42 559 037	646 474	52 073	43 257 584

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 01.01.2023	20 906 667	485 896	41 976	21 434 538
Transfer to stage 1	107 334	-107 334	0	0
Transfer to stage 2	-331 968	335 944	-3 976	0
Transfer to stage 3	-6 641	-8 081	14 722	0
Net change	-557 549	-8 113	-4 030	-569 692
New lending	6 440 804	86 660	12 037	6 539 500
Write-offs	-5 577 248	-141 825	-9 834	-5 728 908
Lending 30.09.2023	20 981 397	643 147	50 895	21 675 439

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 01.01.2023	19 215 331	0	0	19 215 331
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	-625 884	0	0	-625 884
New lending	2 436 384	0	0	2 436 384
Write-offs	-1 526 191	0	0	-1 526 191
Lending 30.09.2023	19 499 640	0	0	19 499 640

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 01.01.2023	38 554	3 384	1 594	43 532
Transfer to stage 1	1 680	-1 209	-471	0
Transfer to stage 2	-1 364	1 370	-5	0
Transfer to stage 3	-256	-155	411	0
Net change	758	302	-183	876
New lending	3 917	133	20	4 070
Write-offs	-1 796	-498	-335	-2 628
Lending 30.09.2023	41 493	3 326	1 031	45 850

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 01.01.2023	1 782 407	0	0	1 782 407
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	75 650	0	0	75 650
New lending	347 909	0	0	347 909
Write-offs	-168 651	0	0	-168 651
Lending 30.09.2023	2 037 314	0	0	2 037 314

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 01.01.2023	239	0	84	322
Transfer to stage 1	0	0	0	0
Transfer to stage 2	0	0	0	0
Transfer to stage 3	-22	0	22	0
Net change	-982	0	29	-953
New lending	5	0	32	37
Write-offs	-47	0	-19	-66
Lending 30.09.2023	-806	0	148	-659

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 01.01.2023	1 339 781	54 926	231	1 394 938
Transfer to stage 1	8 445	-8 406	-39	0
Transfer to stage 2	-16 477	16 487	-10	0
Transfer to stage 3	-82	-2	83	0
Net change	-2 613	-1 876	0	-4 488
New lending	761 805	2 868	0	764 673
Write-offs	-400 593	-5 966	-142	-406 701
Other changes	323 962	0	0	323 962
Lending 30.09.2023	2 014 228	58 031	124	2 072 383

Losses recognised in the profit and loss account consist of:

NOK THOUSANDS	01.01.2023 -30.09.2023	01.01.2022 -30.09.2022	01.01.2022 -31.12.2022
Change in loss provisions in stage 1, 2 and 3	-1 346	276	-276
Established losses	-7	-776	-815
Recovery for previously established losses	331	550	768
Total losses in the income statement	-1 022	50	-323

Note 15 Contingent liabilites

NOK THOUSANDS	30.09.2023	30.09.2022	31.12.2022
Credit facilities for lending not utilized	1 175 835	1 110 784	885 395
Credit facilities issued credit card	249 298	255 883	259 010
Loan promise	1 457 421	1 437 420	1 170 419
Total contingent liabilities	2 882 555	2 804 088	2 314 823

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 facitities issued credit card: Customers' credit card limits are a contingent liabilitiy for the Bank, where the customer cn choose to utilise the credit up to the allocated credit limit.

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

Note 16 Net gain/(loss) on financial instruments

NOK THOUSANDS	Q3 2023	Q3 2022	01.01.2023 -30.09.2023	01.01.2022 -30.09.2022	01.01.2022 -31.12.2022
Net gain/(loss) on fixed-income securities	8 727	-7 526	3 107	-34 636	-18 704
Net gain/(loss) financial derivatives and realized amortization linked to lending	317	44	439	337	270
Net gain/(loss) financial derivatives and realized repurchase of own debt	-3 675	-573	-9 633	-11 934	-12 335
Net accrual of over/under rates borrowings and securities	1 379	1 382	4 141	4 141	5 521
Other financial income and expenses	-314	-242	-946	-725	-1 004
Total net gain/(loss) on financial instruments	6 433	-6 916	-2 893	-42 817	-26 252

Note 17 Leases

NOK THOUSANDS	30.09.2023	30.09.2022	31.12.2022
	Property
RIGHT-OF-USE ASSETS
Opening balance 01.01.	16 365	18 236	18 236
Depreciation	-1 403	-1 403	-1 870
Closing balance	14 962	16 833	16 365
LEASE LIABILITIES
Opening balance 01.01.	16 761	18 323	18 323
Repayments	-1 216	-1 166	-1 563
Closing balance	15 544	17 157	16 761

NOK THOUSANDS	Q3 2023	Q3 2022	01.01.2023 -30.09.2023	01.01.2022 -30.09.2022	01.01.2022 -31.12.2022
	Property
Interest expense lease liabilities	74	81	225	247	326
Interest expense lease liabilities	74	81	225	247	326
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 AS.

Note 18 Pension obligations - own employees

NOK THOUSANDS	30.09.2023	30.09.2022	31.12.2022
Capitalized net liability	32 092	36 693	36 693
Pension costs taken to profit/loss	10 231	10 745	14 307
Finance costs taken to profit/loss	946	725	1 004
Actuarial gains and losses incl. social security contributions	-15 315	-3 280	-11 094
Premiums/supplement paid-in including admin	-13 708	-6 475	-8 818
Capitalized net liability	14 247	38 408	32 092

ASSUMPTIONS	30.09.2023	30.09.2022	31.12.2022
Discount rate	4.00%	3.20%	3.00%
Salary growth	4.00%	3.75%	3.50%
The National Insurance basic amount (G)	3.50%	3.50%	3.25%
Pension increases	2.90%	2.75%	2.60%
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 15.3 million as of 30.09.2023. The change is recognized in comprehensive income.

Quarterly earnings trend

NOK MILLIONS	Q3 2023	Q2 2023	Q1 2023	Q4 2022	Q3 2022
Interest income	634.0	551.4	518.2	474.7	320.2
Interest expense	-515.1	-440.7	-408.1	-364.2	-221.0
Net interest income	118.9	110.6	110.1	110.5	99.2
Commision income and income from banking services	8.4	8.0	6.5	7.7	8.1
Commision cost and cost from banking services	-0.7	-0.6	-0.7	-0.7	-0.7
Net charges and commission income	7.7	7.4	5.8	7.1	7.4
Other fee income	15.3	15.3	15.3	15.2	12.7
Net gain/(loss) financial instruments	6.4	-2.6	-6.7	16.6	-6.9
Total other operating income	21.7	12.7	8.6	31.7	5.8
Salaries and administrative costs	-20.6	-21.1	-22.1	-25.5	-18.1
Depreciation	-0.9	-1.0	-1.0	-1.0	-1.0
Other operating expenses	-44.6	-40.3	-47.9	-39.4	-38.1
Net loan losses	-0.6	-0.1	-0.3	-0.4	-0.2
Total operating expenses	-66.7	-62.5	-71.4	-66.3	-57.4
Operating profit/loss before tax	81.6	68.3	53.1	83.0	55.0
Tax ordinary income	-19.6	-16.4	37.0	-19.7	-13.1
Profit/loss for the period	62.0	51.9	90.1	63.3	41.9
Other comprehensive income	-2.0	15.9	1.4	7.8	0.5
Tax on other comprehensive income	0.5	-4.0	-0.3	-2.0	-0.1
Other comprehensive income for the period	-1.5	12.0	1.0	5.9	0.3
Comprehensive income for the period	60.5	63.9	91.2	69.2	42.2

Key figures – accumulated

NOK MILLIONS	Q3 2023	Q2 2023	Q1 2023	Q4 2022	Q3 2022
Pre-tax income	203.1	121.5	53.1	180.5	97.5
Net interest income	339.7	220.8	110.2	368.7	258.2
Other operating income	66.9	43.9	21.1	85.0	62.8
Other operating cost and depreciation	-200.6	-133.9	-71.4	-247.0	-180.7
Net gain/(loss) financial instruments	-2.9	-9.3	-6.7	-26.3	-42.8
Deposits	14 350.6	14 524.0	14 136.2	13 778.9	13 606.8
Lending customers	23 753.6	23 481.3	23 332.8	23 258.4	23 368.6
Lending with public sector guarantee	19 370.6	19 449.1	19 384.1	19 117.1	18 717.6
Non-performing loans	52.1	42.6	45.6	43.7	42.8
Total liabilities created on issuance of securities	31 616.0	31 660.8	31 998.9	33 484.9	32 613.2
Other borrowing	0.0	0.0	0.0	0.0	0.0
Total assets	49 403.1	49 557.2	49 373.4	50 510.7	49 369.5
Average total assets	49 956.9	50 033.9	49 942.1	48 996.3	48 425.7
Equity	3 132.4	3 071.9	3 008.0	2 966.5	2 897.3
Interest net	0.68 %	0.44 %	0.22 %	0.75 %	0.53 %
Profit/loss from ordinary operation before taxes	0.41 %	0.24 %	0.11 %	0.37 %	0.20 %
Return on equity	9.13 %	8.19 %	7.16 %	7.16 %	5.15 %
Capital adequacy ratio	20.2 %	20.3 %	20.5 %	20.7 %	19.7 %
Liquidity coverage ratio (LCR)	404 %	513 %	435 %	567 %	472 %

Contact information

KLP BANKEN AS

Beddingen 8
7042 Trondheim

Org. number: 993 821 837

Visitors adress, Trondheim:
Beddingen 8

Visitors adress, Oslo:
Dronning Eufemias gate 10

Klp.no/bank

Phone: +47 55 54 85 00

klpbanken@klp.no

Q3 2023 Interim reportKLP Banken Group