KLP Boligkreditt ASQ3 2024
Interim Financial Statements 3/2024
Main features by third quarter end:
- Increased interest income
- Reduces administrative expenses
- No recognized loan losses
Objective
The Company's purpose is to finance KLP Banken’s mortgage loans at preferable terms, mainly through the issuance of covered bonds.
KLP Boligkreditt AS is a wholly owned subsidiary of KLP Banken AS. KLP Banken AS is owned by Kommunal Landspensjonskasse gjensidig forsikringsselskap (KLP).
Income statement
The operating profit before tax for the third quarter was NOK 12.4 (-2.0) million. Year-to-date, the profit before tax is NOK 35.3 (8.3) million. The change in profit is mainly due to growth in net interest income and reduced negative effects from financial instruments.
Net interest and credit commission income for the third quarter was NOK 81.2 (59.0) million. The change is mainly related to higher interest rates and slightly higher average loan margins.
Net P&L effects from financial instruments at the end of the quarter were NOK 0.6 (-3.8) million. This mainly includes value declines in liquidity placements and costs from the repurchase of own bond issues. Realized and unrealized value changes in the liquidity portfolio have resulted in an P&L effect of NOK 2.2 (-0.1) million. The restructuring of the borrowing portfolio is done regularly to adjust the average maturity. This may cause both loss and gain. Accounting effects from the repurchase of own debt amount to NOK -1.5 (-3.7) million so far this year.
Operating expenses as of third quarter were NOK -46.5 (-47.0) million. The company has not had any loan losses and has very low loss provisions.
Lending and total assets
The company’s loans to customers as of 30 September 2024 amounted to NOK 12.6 (12.6) billion. Loans amounting to NOK 2.9 (3.5) billion have been purchased from the parent company KLP Banken AS so far this year. Total assets was NOK 13.8 (13.7) billion.
Liquid investments
KLP Boligkreditt AS has strict requirements for what assets may be included in the collateral pool. In addition to mortgages, the collateral pool consists of securities and deposits in other banks. The securities consist of certificates and bonds with very high credit quality, mainly investments in covered bonds. As of 30 September 2024, the company’s interest-bearing securities had a market value of NOK 0.8 (0.6) billion.
Borrowing
The company’s external financing consists of issued covered bonds (OMF) and loans from KLP Banken AS. The company had NOK 2.2 (1.6) billion in intra-group debt at the end of the third quarter. Outstanding OMF debt was NOK 10.5 (11.2) billion. New covered bonds amounting to NOK 1.0 (1.0) billion have been issued so far this year. Net repurchases of previous issues amount to NOK -1.6 billion. All OMF issuances have an Aaa rating from Moody’s.
Risk and capital adequacy
KLP Boligkreditt AS has established a risk management framework to ensure that risks are identified, analyzed, and managed through guidelines, frameworks, routines, and instructions. The company shall have a cautious risk profile, and earnings shall primarily result from lending and borrowing activities as well as liquidity management. This means that the company shall have low market risk. Interest rate risk arising from lending and borrowing activities is reduced using derivatives. The company shall have sufficient long-term financing within established frameworks. The credit risk in the company is very low, and the company’s loans are limited to mortgages secured by lien on housing property. The company’s liquidity is placed in banks with high credit quality requirements and in securities in line with board-approved credit lines.
Core capital according to capital adequacy regulations at the end of the third quarter 2024 was NOK 1 027 (919) million. Core capital was increased by NOK 100 million in the first half of the year. Lending for residential purposes are risk-weighted 35 percent according to the authorities’ regulations for capital adequacy. KLP Boligkreditt AS has a core capital ratio and capital adequacy ratio of 20.9 (19.4) percent as at third quarter. The minimum requirement for total capital adequacy is 17.5 percent. The leverage ratio was 7.5 (6.7) percent. The requirement here is 3.0 per cent.
Oslo, 7 November 2024 | ||
AAGE E. SCHAANNING | JANICKE E. FALKENBERG | |
Chair | ||
LILL STABELL | JONAS V. KÅRSTAD | |
CHRISTOPHER A. N. STEEN Managing Director |
Income statementKLP Boligkreditt AS
NOTE | NOK THOUSANDS | Q3 2024 | Q3 2023 | 01.01.2024 -30.09.2024 | 01.01.2023 -30.09.2023 | 01.01.2023 -31.12.2023 |
---|---|---|---|---|---|---|
Interest income, effective interest method | 176 564 | 153 767 | 525 272 | 420 023 | 591 812 | |
Other interest income | 10 524 | 7 568 | 28 615 | 24 061 | 31 295 | |
3 | Total interest income | 187 088 | 161 335 | 553 887 | 444 084 | 623 106 |
Interest expense, effective interest method | -159 404 | -146 170 | -472 697 | -385 040 | -542 313 | |
3 | Total interest expense | -159 404 | -146 170 | -472 697 | -385 040 | -542 313 |
3 | Net interest income | 27 684 | 15 165 | 81 191 | 59 044 | 80 793 |
15 | Net gain/(loss) on financial instruments | 573 | -781 | 644 | -3 831 | -3 733 |
Total net gain/(loss) on financial instruments | 573 | -781 | 644 | -3 831 | -3 733 | |
Other operating expenses | -15 862 | -16 412 | -46 502 | -46 957 | -62 162 | |
16 | Net loan losses | -10 | -17 | -12 | 20 | 3 |
Total operating expenses | -15 872 | -16 429 | -46 515 | -46 937 | -62 159 | |
Operating profit/loss before tax | 12 385 | -2 045 | 35 320 | 8 275 | 14 901 | |
Tax ordinary income | -1 674 | 450 | -4 619 | -1 821 | -3 278 | |
Profit for the period | 10 711 | -1 595 | 30 701 | 6 455 | 11 623 | |
Other comprehensive income for the period | 0 | 0 | 0 | 0 | 0 | |
Comprehensive income for the period | 10 711 | -1 595 | 30 701 | 6 455 | 11 623 |
BalanceKLP Boligkreditt AS
NOTE | NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|---|
ASSETS | ||||
5 | Loans to credit institutions | 277 289 | 456 437 | 469 974 |
4,5 | Loans to customers | 12 603 621 | 12 627 904 | 12 745 448 |
5,6,14 | Fixed-income securities | 830 083 | 643 246 | 516 406 |
11 | Other assets | 66 647 | 18 143 | 4 296 |
Total assets | 13 777 641 | 13 745 730 | 13 736 124 | |
LIABILITIES AND OWNERS EQUITY | ||||
LIABILITIES | ||||
5,9 | Debt to credit institutions | 2 152 965 | 1 568 760 | 1 686 316 |
5,7 | Debt securities issued | 10 549 527 | 11 238 976 | 11 105 128 |
Deferred tax liabilities | 3 335 | 4 259 | 7 537 | |
12 | Other liabilities | 13 194 | 6 811 | 5 424 |
12 | Provision for accrued costs and liabilities | 401 | 374 | 0 |
Total liabilities | 12 719 423 | 12 819 179 | 12 804 406 | |
EQUITY | ||||
Share capital | 430 000 | 380 000 | 380 000 | |
Share premium | 530 463 | 480 463 | 480 463 | |
Other owners' equity | 67 054 | 59 633 | 71 256 | |
Unallocated profit/loss | 30 701 | 6 455 | 0 | |
Total owners' equity | 1 058 218 | 926 551 | 931 719 | |
Total liabilities and equity | 13 777 641 | 13 745 730 | 13 736 124 |
Statement of changes in equityKLP Boligkreditt AS
2024 NOK THOUSANDS | Share capital | Share premium | Other equity | Total owners' equity |
---|---|---|---|---|
Equity 1 January 2024 | 380 000 | 480 463 | 71 256 | 931 719 |
Profit for the period | 0 | 0 | 30 701 | 30 701 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Total comprehensive income for the period | 0 | 0 | 30 701 | 30 701 |
Group contribution received | 0 | 0 | 14 898 | 14 898 |
Group contribution made | 0 | 0 | -19 100 | -19 100 |
Paid-up equity for the period | 50 000 | 50 000 | 0 | 100 000 |
Total transactions with the owners | 50 000 | 50 000 | -4 202 | 95 798 |
Equity 30 September 2024 | 430 000 | 530 463 | 97 755 | 1 058 218 |
2023 NOK THOUSANDS | Share capital | Share premium | Other equity | Total owners' equity |
---|---|---|---|---|
Equity 1 January 2023 | 380 000 | 480 463 | 59 633 | 920 096 |
Profit for the period | 0 | 0 | 6 455 | 6 455 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Total comprehensive income for the period | 0 | 0 | 6 455 | 6 455 |
Group contribution received | 0 | 0 | 0 | 0 |
Group contribution made | 0 | 0 | 0 | 0 |
Total transactions with the owners | 0 | 0 | 0 | 0 |
Equity 30 September 2023 | 380 000 | 480 463 | 66 088 | 926 551 |
2023 NOK THOUSANDS | Share capital | Share premium | Other equity | Total owners' equity |
---|---|---|---|---|
Equity 1 January 2023 | 380 000 | 480 463 | 59 633 | 920 096 |
Income for the year | 0 | 0 | 11 623 | 11 623 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Total comprehensive income for the period | 0 | 0 | 11 623 | 11 623 |
Group contribution received | 0 | 0 | 0 | 0 |
Group contribution made | 0 | 0 | 0 | 0 |
Total transactions with the owners | 0 | 0 | 0 | 0 |
Equity 31 December 2023 | 380 000 | 480 463 | 71 256 | 931 719 |
Statement of cash flowKLP Boligkreditt AS
NOK THOUSANDS | 01.01.2024 -30.09.2024 | 01.01.2023 -30.09.2023 | 01.01.2023 -31.12.2023 |
---|---|---|---|
OPERATING ACTIVITIES | |||
Payments received from customers - interest, commission & charges | 512 965 | 404 725 | 567 810 |
Disbursements on loans customers & credit institutions | -2 856 592 | -3 491 784 | -4 538 968 |
Receipts on loans customers & credit institutions | 2 932 768 | 3 150 792 | 4 098 045 |
Disbursements on operations | -46 439 | -47 180 | -61 722 |
Net receipts/disbursements from operating activities | 2 605 | 5 169 | 1 547 |
Net interest investment accounts | 13 702 | 10 184 | 14 873 |
Net cash flow from operating activities | 559 008 | 31 905 | 81 586 |
INVESTMENT ACTIVITIES | |||
Payments on the purchase of securities | -539 811 | -198 665 | -219 829 |
Receipts on sale of securities | 229 828 | 978 154 | 1 125 861 |
Receipts of interest from securities | 27 084 | 25 216 | 33 063 |
Net cash flow from investment activities | -282 899 | 804 705 | 939 094 |
FINANCING ACTIVITIES | |||
Receipts on loans from credit institutions | 1 000 000 | 1 000 000 | 1 000 000 |
Repayment and redemption of loans | -2 500 000 | -2 000 000 | -2 000 000 |
Change in securities debt, own funds | 944 031 | -413 106 | -548 349 |
Net payment of interest on loans | -431 752 | -358 844 | -500 708 |
Receipts in internal funding | 3 161 666 | 4 197 079 | 6 783 028 |
Repayment in internal funding | -2 694 992 | -3 154 471 | -5 623 737 |
Net payment of interest on internal funding | -42 150 | -10 176 | -23 558 |
Change in owners' equity | 100 000 | 0 | 0 |
Group contribution paid | -4 202 | 0 | 0 |
Net cash flows from financing activities | -467 400 | -739 518 | -913 325 |
Net cash flow during the period | -191 290 | 97 093 | 107 355 |
Cash and cash equivalents at the start of the period | 456 573 | 349 219 | 349 219 |
Cash and cash equivalents at the end of the period | 265 283 | 446 311 | 456 573 |
Net receipts/disbursements | -191 290 | 97 093 | 107 355 |
Notes to the accountsKLP Boligkreditt AS
Note 1 General information
KLP Boligkreditt AS was formed on 30 October 2013. The company is a housing credit enterprise, and finance the activity primary through issuing covered bonds.
KLP Boligkreditt AS is registered and domiciled in Norway. Its head office is at Beddingen 8 in Trondheim, with a branch office in Dronning Eufemiasgate 10, Oslo.
The company is a wholly owned subsidiary of KLP Banken AS which is in turn wholly owned by Kommunal Landspensjonskasse (KLP). KLP is a mutual insurance company.
Note 2 Accounting Principles
The interim report includes the interim Financial Statements of KLP Boligkreditt AS for the period 1 January 2024 – 30 September 2024, specifying the earnings trend in Q3. The interim Financial Statements has not been audited.
The financial statements for KLP Boligkreditt AS have been prepared in accordance with IFRS Accounting Standards®) as adopted by the EU with some additions that follow The Norwegian Accounting Act and the Regulations concerning annual accounts for banks, mortgage firms and finance companies (the Accounting Regulations). The interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting".
Other accounting principles and calculations are the same in the interim financial statement as in the annual report for 2023, please see the annual report for further information.
Note 3 Net interest income
NOK THOUSANDS | Q3 2024 | Q3 2023 | 01.01.2024 -30.09.2024 | 01.01.2023 -30.09.2023 | 01.01.2023 -31.12.2023 |
---|---|---|---|---|---|
Interest income on loans to customers | 171 117 | 149 466 | 510 361 | 409 492 | 576 938 |
Interest income on loans to credit institutions | 5 447 | 4 301 | 14 912 | 10 531 | 14 873 |
Total interest income, effective interest method | 176 564 | 153 767 | 525 272 | 420 023 | 591 812 |
Interest income on bonds and certificates | 10 524 | 7 568 | 28 615 | 24 061 | 31 295 |
Total other interest income | 10 524 | 7 568 | 28 615 | 24 061 | 31 295 |
Total interest income | 187 088 | 161 335 | 553 887 | 444 084 | 623 106 |
Interest expenses on debt from KLP Banken AS | -15 679 | -5 252 | -42 125 | -11 872 | -26 129 |
Interest expenses on issued securities | -143 724 | -140 918 | -430 572 | -373 169 | -516 185 |
Total interest expenses, effective interest method | -159 404 | -146 170 | -472 697 | -385 040 | -542 313 |
Total interest expense | -159 404 | -146 170 | -472 697 | -385 040 | -542 313 |
Net interest income | 27 684 | 15 165 | 81 191 | 59 044 | 80 793 |
Note 4 Loans to customers
NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
Loans to customers before write-downs | 12 578 025 | 12 604 035 | 12 717 235 |
Provisions and write-downs | -75 | -46 | -62 |
Loans to customers after write-downs | 12 577 951 | 12 603 989 | 12 717 173 |
Accrued interest | 25 671 | 23 915 | 28 276 |
Loans to customers | 12 603 621 | 12 627 904 | 12 745 448 |
Note 5 Categories of financial instruments
NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 | |||
---|---|---|---|---|---|---|
Capitalized value | Fair value | Capitalized value | Fair value | Capitalized value | Fair value | |
FINANCIAL ASSETS AT FAIR VALUE | ||||||
Fixed-income securities | 830 083 | 830 083 | 643 246 | 643 246 | 516 406 | 516 406 |
Total financial assets at fair value | 830 083 | 830 083 | 643 246 | 643 246 | 516 406 | 516 406 |
FINANCIAL ASSETS AT AMORTIZED COST | ||||||
Loans to and receivables from credit institutions | 277 289 | 277 289 | 456 437 | 456 437 | 469 974 | 469 974 |
Loans to and receivables from customers | 12 603 621 | 12 603 621 | 12 627 904 | 12 627 904 | 12 745 448 | 12 745 448 |
Total financial assets at amortized cost | 12 880 911 | 12 880 911 | 13 084 341 | 13 084 341 | 13 215 422 | 13 215 422 |
Total financial assets | 13 710 994 | 13 710 994 | 13 727 587 | 13 727 587 | 13 731 829 | 13 731 829 |
FINANCIAL LIABILITIES AT AMORTIZED COST | ||||||
Liabilities to credit institutions | 2 152 965 | 2 152 965 | 1 568 760 | 1 568 760 | 1 686 316 | 1 686 316 |
Covered bonds issued | 10 549 527 | 10 582 013 | 11 238 976 | 11 223 871 | 11 105 128 | 11 102 781 |
Total financial liabilities at amortized cost | 12 702 492 | 12 734 978 | 12 807 735 | 12 792 631 | 12 791 444 | 12 789 097 |
Total financial liabilities | 12 702 492 | 12 734 978 | 12 807 735 | 12 792 631 | 12 791 444 | 12 789 097 |
Fair value shall be a representative price based on what a corresponding asset or liability would have been traded for on normal market terms and conditions. A financial instrument is considered to be listed in an active market if the listed price is simply and regularly available from a stock market, dealer, broker, industry grouping, price setting service or regulatory authority, and these prices represent actual and regularly occurring transactions at arm’s length. If the market for the security is not active, or the security is not listed on a stock market or similar, valuation techniques are used to set fair value. These are based for example on information on recently completed transactions carried out on business terms and conditions, reference to trading in similar instruments and pricing using externally collected yield curves and yield spread curves. As far as possible the estimates are based on externally observable market data and rarely on company-specific information.
The different financial instruments are thus priced in the following way:
Fixed-income securities - government
Nordic Bond pricing is used as a source for pricing Norwegian government bonds.
Fixed-income securities - other than government
Norwegian fixed-income securities are generally priced based on rates from Nordic Bond Pricing. Securities not covered by Nordic Bond Pricing are priced theoretically. The theoretical price should be based on the discounted value of the security's future cash flows. Discounting is done using a swap curve adjusted for credit spread and liquidity spread. The credit spread should, to the extent possible, be based on a comparable bond from the same issuer. Liquidity spread is determined at the discretion of the evaluator.
Fair value of loans to retail costumers
Fair value of lending without fixed interest rates is considered virtually the same as book value since the contract terms are continuosly changed in step with market interest rates. Fair value of fixed rate loans is calculated by discounting contractual cash flows by the marked rate including a relevant risk margin on the reporting date.
Fair value of loans to and receivables from credit institutions
All receivables from credit institutions (bank deposits) are at variable interest rates. Fair value of these is considered virtually the same as book value since the contract terms are continuously changed in step with marked interest rates.
Fair value of liabilities to credit institutions
These transactions are valued using a valuation model, including relevant credit spread adjustments obtained from the market.
Liabilities created on issuance of covered bonds
Fair value in this category is determined on the basis of internal valuation models based on external observable data.
Note 6 Fair value hierarchy
30.09.2024 NOK THOUSANDS | Level 1 | Level 2 | Level 3 | Total |
---|---|---|---|---|
ASSETS BOOKED AT FAIR VALUE | ||||
Fixed-income securities | 29 727 | 800 357 | 0 | 830 083 |
Total assets at fair value | 29 727 | 800 357 | 0 | 830 083 |
30.09.2023 NOK THOUSANDS | Level 1 | Level 2 | Level 3 | Total |
---|---|---|---|---|
ASSETS BOOKED AT FAIR VALUE | ||||
Fixed-income securities | 19 830 | 623 416 | 0 | 643 246 |
Total assets at fair value | 19 830 | 623 416 | 0 | 643 246 |
31.12.2023 NOK THOUSANDS | Level 1 | Level 2 | Level 3 | Total |
---|---|---|---|---|
ASSETS BOOKED AT FAIR VALUE | ||||
Fixed-income securities | 19 815 | 496 592 | 0 | 516 406 |
Total assets at fair value | 19 815 | 496 592 | 0 | 516 406 |
Fair value shall be a representative price based on what a corresponding asset or liability would have been traded for at normal market terms and conditions. Highest quality in regard to fair value is based on listed prices in an active market. A financial instrument is considered as listed in an active market if listed prices are simply and regularly available from a stock market, dealer, broker, industry group, price-setting service or regulatory authority, and these prices represent actual and regularly occurring transactions at arm's length.
Level 1: Instruments at this level obtain fair value from listed prices in an active market for identical assets or liabilities to which the entity has access at the reporting date. Examples of instruments in Level 1 are stock market listed securities.
Level 2: Instruments at this level obtain fair value from observable market data. This includes prices based on identical instruments, but where the instrument does not maintain a high enough trading frequency and is not therefore considered to be traded in an active market, as well as prices based on corresponding assets and price-leading indicators that can be confirmed from market information. Example instruments at Level 2 are fixed-income securities priced on the basis of interest rate paths.
Level 3: Instruments at Level 3 contain non-observable market data or are traded in markets considered to be inactive. The price is based generally on discrete calculations where the actual fair value may deviate if the instrument were to be traded.
Note 5 discloses the fair value of financial assets and financial liabilities that are recognized at amortized cost. Financial assets measured at amortized cost comprise lending to and due to credit institutions, and retail customers. The stated fair value of these assets is determined on terms qualifying for level 2. Financial liabilities recognized at amortized cost consist of debt securities issued. The stated fair value of these liabilities is determined by methods qualifying for level 2.
There have been no transfers between Level 1 and Level 2.
Note 7 Debt securities issued - stock exchange listed covered bonds and certificates
NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
Bond debt, nominal amount | 10 500 000 | 12 000 000 | 12 000 000 |
Adjustments | -4 500 | -2 849 | -3 151 |
Accured interest | 54 027 | 52 824 | 54 278 |
Own holdings, nominal amount | 0 | -811 000 | -946 000 |
Total debt securities issued | 10 549 527 | 11 238 976 | 11 105 128 |
Interest rate on borrowings through the issuance of securities on the reporting date: | 5.10% | 5.00% | 5.07% |
The interest rate is calculated as a weighted average of the act/360 basis. It includes interest rate effects and amortization costs.
NOK THOUSANDS | Balance sheet 31.12.2023 | Issued | Matured/ redeemed | Other adjustments | Balance sheet 30.09.2024 |
---|---|---|---|---|---|
Bond debt, nominal amount | 12 000 000 | 1 000 000 | -2 500 000 | 0 | 10 500 000 |
Adjustments | -3 151 | 0 | 0 | -1 349 | -4 500 |
Accured interest | 54 278 | 0 | 0 | -251 | 54 027 |
Own holdings, nominal amount | -946 000 | 0 | 946 000 | 0 | 0 |
Total debt securities issued | 11 105 128 | 1 000 000 | -1 554 000 | -1 600 | 10 549 527 |
Note 8 Over-collateralisation
NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
SECURITY POOL | |||
Loans to customers ¹ | 12 601 311 | 12 603 407 | 12 689 403 |
Additional collateral ² | 790 649 | 1 811 253 | 1 833 583 |
Total security pool | 13 391 960 | 14 414 660 | 14 522 986 |
Outstanding covered bonds incl. own funds and premium/discount | 10 582 013 | 12 036 733 | 12 050 920 |
Coverage of the security pool | 126.6% | 119.8% | 120.5% |
¹ Excluding mortgage loans that do not qualify for security pool. | |||
² Additional collateral includes loans to and receivables from credit institutions and bonds and certificates. Liquid assets used in the LCR liquidity reserve are not included in additional collateral. |
Section 11-7 of the Regulations on Financial Institutions lays down a requirement for over-collateralisation by at least 5 percent of the value of the outstanding covered bonds.
Note 9 Liabilities to credit institutions
30.09.2024 NOK THOUSANDS | ||||
---|---|---|---|---|
Due date | Nominal | Accrued interest | Book value | |
Debt to KLP Banken AS | 15.12.2025 | 250 000 | 419 | 250 419 |
Debt to KLP Banken AS | 15.12.2025 | 1 050 000 | 1 759 | 1 051 759 |
Debt to KLP Banken AS | 15.12.2025 | 150 000 | 251 | 150 251 |
Debt to KLP Banken AS | 15.12.2025 | 300 000 | 268 | 300 268 |
Debt to KLP Banken AS | 15.12.2025 | 400 000 | 268 | 400 268 |
Total liabilities to credit institutions | 2 150 000 | 2 965 | 2 152 965 | |
Interest rate on debt to credit institutions at the reporting date: | 4.02 % | |||
The interest rate is calculated as a weighted average of the act/360 basis. |
30.09.2023 NOK THOUSANDS | ||||
---|---|---|---|---|
Due date | Nominal | Accrued interest | Book value | |
Debt to KLP Banken AS | 16.12.2024 | 220 509 | 332 | 220 841 |
Debt to KLP Banken AS | 16.12.2024 | 149 559 | 169 | 149 728 |
Debt to KLP Banken AS | 16.12.2024 | 500 000 | 565 | 500 565 |
Debt to KLP Banken AS | 00.01.1900 | 511 221 | 770 | 511 991 |
Debt to KLP Banken AS | 16.12.2024 | 185 356 | 279 | 185 635 |
Total liabilities to credit institutions | 1 566 644 | 2 116 | 1 568 760 | |
Interest rate on debt to credit institutions at the reporting date: | 3.39 % |
31.12.2023 NOK THOUSANDS | ||||
---|---|---|---|---|
Due date | Nominal | Accrued interest | Book value | |
Debt to KLP Banken AS | 15.12.2025 | 1 537 488 | 2 817 | 1 540 306 |
Debt to KLP Banken AS | 15.12.2025 | 145 838 | 173 | 146 011 |
Total liabilities to credit institutions | 1 683 326 | 2 990 | 1 686 316 | |
Interest rate on debt to credit institutions at the reporting date: | 3.88 % |
Note 10 Transactions with related parties
NOK THOUSANDS | 01.01.2024 -30.09.2024 | 01.01.2023 -30.09.2023 | 01.01.2023 -31.12.2023 |
---|---|---|---|
KLP Banken AS, interest on borrowing | -42 125 | -11 872 | -26 129 |
KLP Banken AS, interest on deposits | 7 818 | 6 089 | 8 646 |
KLP Banken AS, administrative services (at cost) | -41 822 | -41 985 | -56 169 |
KLP Kapitalforvaltning AS, fees for services provided | 0 | 0 | -20 |
KLP Group companies, subsidised interest employee loans | 5 010 | 7 317 | 9 988 |
KLP Banken AS, purchase of loans | -2 856 592 | -3 491 784 | -4 538 968 |
NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
BALANCES | |||
KLP Banken AS, borrowing Group current liabilities | -2 152 965 | -1 568 760 | -1 686 316 |
KLP Banken AS, deposit | 221 693 | 211 317 | 213 875 |
KLP Banken AS, net internal liabilities | 64 812 | 15 056 | 1 778 |
Net outstanding accounts to: | |||
KLP Banken AS | -4 373 | -4 991 | -5 316 |
KLP | 916 | 1 546 | 1 608 |
KLP Group companies, net other internal accounts | 440 | 912 | 890 |
There are no direct salary cost in KLP Boligkreditt AS. Personnel costs (administrative services) are allocated from KLP Banken AS. |
Transactions with related parties are carried out at general market terms, with the exception of the Company's share of common functions, which is allocated at cost. Allocation is based on actual use. All internal receivables are settled as they arise. |
Note 11 Other assets
NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
Intercompany receivables | 66 169 | 17 514 | 4 296 |
Prepaid expenses | 478 | 629 | 0 |
Total other assets | 66 647 | 18 143 | 4 296 |
Note 12 Other liabilities and provision for accrued costs
NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
Creditors | 0 | 0 | 88 |
Intercompany payables | 4 373 | 4 991 | 5 336 |
Other liabilities | 8 821 | 1 821 | 0 |
Total other liabilities | 13 194 | 6 811 | 5 424 |
VAT | 401 | 374 | 0 |
Total accrued costs and liabilities | 401 | 374 | 0 |
Note 13 Capital adequacy
NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
Share capital and share premium fund | 960 463 | 860 463 | 860 463 |
Other owners' equity | 67 054 | 59 633 | 71 256 |
Total owners' equity | 1 027 518 | 920 097 | 931 719 |
Adjustments due to requirements for proper valuation | -830 | -643 | -516 |
Core capital/Tier 1 capital | 1 026 688 | 919 453 | 931 203 |
Supplementary capital/Tier 2 capital | 0 | 0 | 0 |
Supplementary capital/Tier 2 capital | 0 | 0 | 0 |
Total eligible own funds (Tier 1 and Tier 2 capital) | 1 026 688 | 919 453 | 931 203 |
Capital requirement | 393 322 | 378 200 | 397 569 |
Surplus of own funds (Tier 1 and Tier 2 capital) | 633 366 | 541 253 | 533 634 |
Estimate basis credit risk: | |||
Institutions | 68 604 | 94 608 | 94 672 |
Retail | 387 083 | 0 | 401 637 |
Investments with mortgage security in real estate | 4 230 629 | 4 419 766 | 4 273 476 |
Covered bonds | 80 036 | 62 342 | 49 659 |
Other holdings | 918 | 1 541 | 910 |
Calculation basis credit risk | 4 767 269 | 4 578 257 | 4 820 354 |
Credit risk | 381 382 | 366 261 | 385 628 |
Operating risk | 11 940 | 11 940 | 11 940 |
Total capital requirement assets | 393 322 | 378 200 | 397 569 |
Core capital adequacy ratio | 20.9 % | 19.4 % | 18.7 % |
Supplementary capital ratio | 0.0 % | 0.0 % | 0.0 % |
Capital adequacy ratio | 20.9 % | 19.4 % | 18.7 % |
Leverage ratio | 7.5 % | 6.7 % | 6.8 % |
CAPITAL REQUIREMENT PER 30.09.2024 | Core capital/ Tier 1 capital | Supplementary capital/Tier 2 capital | Own funds |
---|---|---|---|
Minimum requirement excl. buffers | 4.5 % | 3.5 % | 8.0 % |
Protective buffer | 2.5 % | 0.0 % | 2.5 % |
Systemic risk buffer | 4.5 % | 0.0 % | 4.5 % |
Counter-cyclical capital buffer | 2.5 % | 0.0 % | 2.5 % |
Current capital requirement including buffers | 14.0 % | 3.5 % | 17.5 % |
Capital requirement leverage ratio | 3.0 % | 0.0 % | 3.0 % |
Note 14 Fixed-income securities
NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 | |||
---|---|---|---|---|---|---|
Acquisition cost | Market value | Acquisition cost | Market value | Acquisition cost | Market value | |
Certificates | 29 604 | 29 727 | 19 803 | 19 830 | 0 | 0 |
Bonds | 794 782 | 800 357 | 619 689 | 623 416 | 513 138 | 516 406 |
Total fixed-income securities | 824 386 | 830 083 | 639 492 | 643 246 | 513 138 | 516 406 |
Fixed income securities are brought to account at market value, including accrued
but not due interests.
Note 15 Net gain/(loss) on financial instruments
NOK THOUSANDS | Q3 2024 | Q3 2023 | 01.01.2024 -30.09.2024 | 01.01.2023 -30.09.2023 | 01.01.2023 -31.12.2023 |
---|---|---|---|---|---|
Net gain/(loss) on fixed-income securities | 582 | 937 | 2 193 | -146 | 179 |
Net gain/(loss) financial derivatives and realized repurchase of own debt | -9 | -1 717 | -1 549 | -3 685 | -3 912 |
Total net gain/(loss) financial instruments | 573 | -781 | 644 | -3 831 | -3 733 |
Note 16 Loan loss provision
There has not been done any changes in the model for calculation of the expected loss provisions in the third quarter.
The total loan loss provisions have been increased since second quarter of 2024. Although the percentage increase is large, the amounts involved are relatively small in relation to the total lending volume. The increase is NOK 10 000 kroner.
Refer to Note 8 and Note 2 in the annual report for more details of the model.
NOK THOUSANDS | 12-month ECL stage 1 | Lifetime ECL not credit impaired stage 2 | Lifetime ECL credit impaired stage 3 | Total |
---|---|---|---|---|
EXPECTED CREDIT LOSS (ECL) - LOANS TO CUSTOMERS - MORTGAGE | ||||
Opening balance ECL 01.01.2024 | 41 | 22 | 0 | 63 |
Transfers to stage 1 | 8 | -8 | 0 | 0 |
Transfers to stage 2 | -1 | 1 | 0 | 0 |
Transfers to stage 3 | 0 | 0 | 0 | 0 |
Net changes | -3 | 24 | 0 | 21 |
New losses | 13 | 1 | 0 | 13 |
Write-offs | -7 | -2 | 0 | -8 |
Change in risk model | -8 | -6 | 0 | -14 |
Closing balance ECL 30.09.2024 | 43 | 32 | 0 | 75 |
Changes (01.01.2024-30.09.2024) | 2 | 10 | 0 | 12 |
NOK THOUSANDS | 12-month ECL stage 1 | Lifetime ECL not credit impaired stage 2 | Lifetime ECL credit impaired stage 3 | Total |
---|---|---|---|---|
VALUE OF LENDING AND RECEIVABLES FOR CUSTOMERS RECOGNISED IN THE BALANCE SHEET - MORTGAGE | ||||
Lending 01.01.2024 | 12 434 702 | 310 809 | 0 | 12 745 511 |
Transfers to stage 1 | 101 283 | -101 283 | 0 | 0 |
Transfers to stage 2 | -189 367 | 189 367 | 0 | 0 |
Transfers to stage 3 | 0 | 0 | 0 | 0 |
Net changes | -350 504 | -5 388 | 0 | -355 892 |
New lending | 2 498 248 | 8 659 | 0 | 2 506 907 |
Write-offs | -2 246 169 | -46 660 | 0 | -2 292 829 |
Lending 30.09.2024 | 12 248 193 | 355 504 | 0 | 12 603 697 |
Quarterly earnings trend
NOK MILLIONS | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
---|---|---|---|---|---|
Interest income | 187.1 | 183.9 | 182.9 | 179.0 | 161.3 |
Interest expense | -159.4 | -155.9 | -157.4 | -157.3 | -146.2 |
Net interest income | 27.7 | 28.0 | 25.5 | 21.7 | 15.2 |
Net gain/ (loss) on financial instruments | 0.6 | 0.4 | -0.4 | 0.1 | -0.8 |
Total net gain/(loss) on financial instruments | 0.6 | 0.4 | -0.4 | 0.1 | -0.8 |
Other operating expenses | -15.9 | -13.5 | -17.1 | -15.2 | -16.4 |
Total operating expenses | -15.9 | -13.5 | -17.1 | -15.2 | -16.4 |
Operating profit/loss before tax | 12.4 | 14.9 | 8.0 | 6.6 | -2.0 |
Tax ordinary income | -1.7 | -2.2 | -0.7 | -1.5 | 0.4 |
Profit for the period | 10.7 | 12.7 | 7.3 | 5.2 | -1.6 |
Key figures accumulated
NOK MILLIONS | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
---|---|---|---|---|---|
Pre-tax income | 35.3 | 22.9 | 8.0 | 14.9 | 8.3 |
Net interest income | 81.2 | 53.5 | 25.5 | 80.8 | 59.0 |
Other operating expenses | -46.5 | -30.6 | -17.1 | -62.2 | -46.9 |
Net gain/ (loss) financial instruments | 0.6 | 0.1 | -0.4 | -3.7 | -3.8 |
Housing mortgage lending | 12 603.6 | 12 556.9 | 12 533.6 | 12 745.4 | 12 627.9 |
Non-performing loans | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Total liabilities created on issuance of securities | 10 549.5 | 11 148.8 | 11 279.0 | 11 105.1 | 11 239.0 |
Other borrowing | 2 153.0 | 1 551.6 | 1 377.2 | 1 686.3 | 1 568.8 |
Total assets | 13 777.6 | 13 761.9 | 13 704.1 | 13 736.1 | 13 745.7 |
Average total assets | 13 756.9 | 13 749.0 | 13 720.1 | 13 911.8 | 13 916.6 |
Equity | 1 058.2 | 1 047.5 | 1 034.8 | 931.7 | 926.6 |
Interest net | 0.59 % | 0.39 % | 0.19 % | 0.58 % | 0.42 % |
Profit/loss from ordinary operation before taxes | 0.26 % | 0.17 % | 0.06 % | 0.11 % | 0.06 % |
Return on equity | 4.66 % | 4.54 % | 3.17 % | 1.62 % | 1.20 % |
Capital adequacy ratio | 20.9 % | 20.9 % | 21.0 % | 18.7 % | 19.4 % |
Liquidity coverange ratio (LCR) | 1 043 % | 731 % | 744 % | 697 % | 753 % |
Contact information
KLP BOLIGKREDITT AS
Beddingen 8, 7042 Trondheim
Organizational number.: 912 719 634
VISITING ADDRESS
Trondheim: Beddingen 8
Oslo: Dronning Eufemias gate 10
Phone number: +47 55 54 85 00