KLP Banken Group
Interim Financial Statements 3/2024
Main features by quarter end:
- Increased interest income
- Lower lending growth
- Good deposit growth
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 124 (122) 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
KLP Banken Group’s pre-tax profit for the third quarter was NOK 87.7 (81.6) million. At the end of the third quarter, the group’s operating profit was NOK 254.7 (203.1) million. The change is mainly due to increased net interest income in both business areas and net gains on financial instruments.
Segmented results show NOK 192.1 (139.0) million in the retail market and NOK 62.6 (64.1) million in the public sector market.
Net interest income in the KLP Banken Group as at third quarter amounts to NOK 385.8 (339.7) million. The increase is mainly due to higher interest rates providing higher returns on loans financed with equity. The bank has also achieved slightly higher margins between loans and financing in the retail market.
At the end of the quarter, the income statement includes net income from value changes in financial instruments of NOK 5.8 (-2.9) million. This result effect is mainly related to changes in the market value of the bank’s liquidity placements. An insignificant part of this is realized income.
Net fee and commission income was NOK 24.3 (20.9) million at the end of the quarter.
The bank group manages mortgages, public loans, and other credits financed by the parent company (KLP). The management fee for this assignment amounted to NOK 46.9 (46.0) million per third quarter.
Operating expenses including depreciations amounted to NOK -208.0 (-199.6) million. Most of the increase is due to price increases for external services and wage growth. Operating expenses also include reimbursements to customers due to fraud amounting to NOK -1.3 (-1.7) million.
So far in 2024, losses and loan loss provisions amount to NOK -0.1 (-1.0) million in the retail market. The bank’s individual write-downs on mortgages have increased so far this year, but estimated provisions for future losses have been reduced by approximately the same amount. High inflation and high interest rates may eventually lead to reduced repayment capacity among borrowers. Nor in 2024 there have been loan losses related to public sector loans.
After taxes and estimate deviations, the group’s total result as at third quarter was NOK 252.3 (215.6) million.
Lending and credits
KLP Banken manages loans on its own balance sheet and loans financed by KLP for a total of NOK 124 (122) billion. On its own balance sheet, the KLP Banken Group had loans to customers amounting to NOK 42.2 (43.1) billion as of 30 September 2024. The distribution between the retail market and the public market was NOK 24.2 (23.7) billion and NOK 18.0 (19.4) billion, respectively.
The retail market in KLP Banken has a mortgage growth of NOK 0.4 (0.5) billion so far in 2024. New mortgage disbursements so far this year amount to NOK 5.8 (6.0) billion. KLP Banken experiences that the growth in demand for new mortgages is lower than in previous years, which is related to the current high interest rates and inflation. The bank’s main target group for mortgages is members of the pension schemes in KLP.
Mortgages amounting to NOK 2.9 (3.5) billion are sold from KLP Banken AS to the credit institution KLP Boligkreditt AS by the end of the third quarter. The volume of managed mortgages for KLP has been relatively stable and amounts to NOK 2.8 billion at the end of the quarter.
Outstanding drawn credits on credit cards has been at a stable level since the turn of last year. However, unused credits and the number of active credit card customers have steadily increased in 2024.
KLP Banken’s lending volume in the public sector market has decreased by NOK -1.0 (0.2) billion so far this year. Loans to public borrowers managed on behalf of KLP have increased by NOK 1.5 billion. New disbursements of public sector loans so far in 2024 amount to NOK 4.5 (5.4) billion for KLP and KLP Banken together.
Liquid investments
Available liquidity is invested in other banks and interest-bearing securities. Deposits in credit institutions amounted to NOK 1.6 (1.3) billion in the KLP Banken Group at the end of the quarter. The book value of interest-bearing securities measured at fair value was NOK 7.8 (4.7) billion.
Market value changes in interest-bearing securities have resulted in an accounting effect of NOK 14.6 (3.1) million as of the third quarter.
Borrowing
The KLP Banken Group’s external financing comprises deposits and bonds. At the reporting date, deposits from individuals and businesses amounted to NOK 15.7 (14.4) billion. Deposit growth so far this year is 11.6 percent, which follows the bank’s focus on attractive deposit products. This has resulted in very positive growth in new deposit and daily banking customers. Fixed-rate deposits for personal customers were launched in the second quarter.
Debt incurred through the issuance of securities in the KLP Banken Group was NOK 32.5 (31.6) billion at the end of the third quarter. Of this, covered bonds (OMF) issued by KLP Kommunekreditt AS amounted to NOK 21.2 (19.4) billion and by KLP Boligkreditt AS to NOK 10.5 (11.2) billion. All OMF issuances have achieved Aaa rating. The securities debt in KLP Banken AS was NOK 0.8 (1.0) 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 2024, eligible Tier 1 and Tier 2 capital i.a.w. the capital adequacy rules were NOK 3,086 (2,898) million. Eligible Tier 1 and Tier 2 capital comprises core capital only. Loans are risk-weighted according to the capital requirements regulations. The KLP Banken Group had a capital adequacy and core capital ratio of 20.6 (20.2) percent at the reporting date. The minimum statutory requirements, including buffer requirements, are 14.8 percent core capital ratio and 18.6 percent capital adequacy. The leverage ratio was 5.8 (5.8) percent. The requirement here is 3.0 percent.
Income statementKLP Banken Group
NOTES | 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 | 606 039 | 545 681 | 1 801 724 | 1 444 913 | 2 038 683 | |
Other interest income | 113 568 | 88 293 | 306 542 | 258 646 | 351 367 | |
3 | Total interest income | 719 607 | 633 974 | 2 108 266 | 1 703 559 | 2 390 050 |
Interest expense, effective interest method | -552 122 | -483 213 | -1 617 184 | -1 275 180 | -1 802 752 | |
Other interest expense | -36 299 | -31 845 | -105 330 | -88 668 | -122 557 | |
3 | Total interest costs | -588 422 | -515 059 | -1 722 514 | -1 363 848 | -1 925 309 |
3 | Net interest income | 131 185 | 118 915 | 385 752 | 339 711 | 464 740 |
Commision income and income from banking services | 9 911 | 8 355 | 26 426 | 22 832 | 30 618 | |
Commision cost and cost from banking services | -717 | -670 | -2 120 | -1 957 | -2 734 | |
Net charges and commission income | 9 194 | 7 686 | 24 306 | 20 875 | 27 884 | |
Other fee income | 15 632 | 15 313 | 46 897 | 45 975 | 61 288 | |
16 | Net gain/ (loss) financial instruments | -121 | 6 433 | 5 808 | -2 893 | 2 466 |
Total other operating income | 15 511 | 21 745 | 52 705 | 43 083 | 63 754 | |
Salaries and administrative costs | -26 385 | -20 644 | -69 199 | -63 841 | -91 577 | |
Depreciation | -808 | -945 | -2 424 | -2 888 | -3 742 | |
Other operating expenses | -40 845 | -44 558 | -136 370 | -132 826 | -174 751 | |
14 | Net loan losses | -115 | -574 | -85 | -1 022 | -871 |
Total operating expenses | -68 153 | -66 720 | -208 078 | -200 577 | -270 941 | |
Operating profit/loss before tax | 87 738 | 81 626 | 254 684 | 203 091 | 285 437 | |
Tax ordinary income | -4 216 | -19 603 | -10 308 | 994 | -18 622 | |
Profit/loss for the period | 83 522 | 62 023 | 244 377 | 204 085 | 266 815 | |
Estimate difference, pension obligation and assets | -5 812 | -2 016 | 10 523 | 15 315 | -13 013 | |
Tax on actuarial gains and losses | 1 453 | 504 | -2 631 | -3 829 | 3 253 | |
Items that will not be reclassified to profit and loss | -4 359 | -1 512 | 7 892 | 11 486 | -9 760 | |
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 | -4 359 | -1 512 | 7 892 | 11 486 | -9 760 | |
Comprehensive income for the period | 79 163 | 60 511 | 252 269 | 215 571 | 257 056 |
Balance sheetKLP Banken Group
NOTES | NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|---|
ASSETS | ||||
5 | Claims on central banks | 75 596 | 74 572 | 75 312 |
5 | Loans to credit institutions | 1 635 361 | 1 274 225 | 1 577 691 |
4,5 | Loans to customers | 42 227 563 | 43 124 278 | 42 856 271 |
5,6,13 | Fixed-income securities | 7 836 977 | 4 749 545 | 4 276 469 |
5,6 | Shareholdings | 1 852 | 1 187 | 1 897 |
5,6,8 | Financial derivatives | 119 877 | 141 113 | 108 370 |
Intangible assets | 12 922 | 14 329 | 13 943 | |
17 | Right-of-use assets | 13 092 | 14 962 | 14 495 |
Fixed assets | 436 | 436 | 436 | |
10 | Other assets | 6 961 | 8 435 | 3 221 |
Total assets | 51 930 636 | 49 403 084 | 48 928 107 | |
LIABILITIES AND OWNERS EQUITY | ||||
LIABILITIES | ||||
5,7 | Debt securities issued | 32 542 552 | 31 615 951 | 31 408 338 |
5 | Deposits and borrowings from the public | 15 684 807 | 14 350 590 | 14 060 460 |
5,6,8 | Financial derivatives | 23 170 | 40 651 | 23 233 |
Deferred tax liabilities | 4 165 | 4 143 | 55 706 | |
17 | Lease liabilities | 13 864 | 15 544 | 15 131 |
11 | Other liabilities | 253 446 | 217 093 | 127 394 |
11 | Provision for accrued costs and liabilities | 49 630 | 26 665 | 63 913 |
Total liabilities | 48 571 634 | 46 270 638 | 45 754 176 | |
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 | 916 733 | 726 875 | 983 931 | |
Profit for the period | 252 269 | 215 571 | 0 | |
Total equity | 3 359 002 | 3 132 446 | 3 173 931 | |
Total liabilities and equity | 51 930 636 | 49 403 084 | 48 928 107 |
Statement of changes in equityKLP Banken Group
2024 NOK THOUSANDS | Share capital | Share premium | Other equity | Total owners’ equity |
---|---|---|---|---|
Equity 1 January 2024 | 1 140 000 | 1 050 000 | 983 931 | 3 173 931 |
Profit for the period | 0 | 0 | 244 377 | 244 377 |
Other comprehensive income | 0 | 0 | 7 892 | 7 892 |
Total comprehensive income for the period | 0 | 0 | 252 269 | 252 269 |
Group contribution received during the period | 0 | 0 | 214 756 | 214 756 |
Group contribution paid during the period | 0 | 0 | -281 954 | -281 954 |
Total transactions with the owners | 0 | 0 | -67 198 | -67 198 |
Equity 30 September 2024 | 1 140 000 | 1 050 000 | 1 169 002 | 3 359 002 |
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 |
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 |
Income for the year | 0 | 0 | 266 815 | 266 815 |
Other comprehensive income | 0 | 0 | -9 760 | -9 760 |
Comprehensive income for the year | 0 | 0 | 257 056 | 257 056 |
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 31 December 2023 | 1 140 000 | 1 050 000 | 983 931 | 3 173 931 |
Statement of cash flowKLP Banken Group
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 and charges | 1 761 333 | 1 311 446 | 1 908 976 |
Payments to customers – interest, commission and charges | -445 203 | -310 591 | -443 505 |
Disbursements on loans to customers and credit institutions | -6 266 347 | -10 293 329 | -13 278 857 |
Receipts on loans to customers | 6 877 250 | 9 616 175 | 12 917 822 |
Net receipts on customer deposits banking | 1 624 471 | 571 593 | 281 568 |
Disbursements on operations | -142 137 | -132 719 | -168 467 |
Payments to staff, pension schemes, employer's social security contribution etc. | -75 986 | -72 361 | -92 549 |
Interest investment accounts | 60 934 | 41 383 | 65 614 |
Net receipts/disbursements from operating activities | 51 701 | 41 290 | 20 301 |
Net cash flow from operating activities | 3 446 015 | 772 888 | 1 210 903 |
INVESTMENT ACTIVITIES | |||
Receipts on the sale of securities | 2 198 279 | 4 400 411 | 5 261 280 |
Payments on the purchase of securities | -5 676 527 | -2 532 416 | -2 966 767 |
Receipts of interest from securities | 172 670 | 160 869 | 216 770 |
Payments on the purchase of tangible fixed assets | 0 | -191 | -191 |
Net cash flow from investment activities | -3 305 577 | 2 028 673 | 2 511 092 |
FINANCING ACTIVITIES | |||
Receipts on loans | 7 600 000 | 7 200 000 | 7 200 000 |
Repayments and redemption of securities debt | -7 950 000 | -7 300 000 | -7 300 000 |
Change in securities debt, own funds | 1 421 993 | -1 791 696 | -2 005 529 |
Net payment of interest on loans | -1 112 827 | -890 098 | -1 321 854 |
Payment of lease liabilities | -1 267 | -1 216 | -1 630 |
Group contributions paid | -67 198 | -49 591 | -49 591 |
Net cash flows from financing activities | -109 299 | -2 832 602 | -3 478 604 |
Net cash flow during the period | 31 138 | -31 041 | 243 392 |
Cash and cash equivalents at the start of the period | 1 583 769 | 1 340 377 | 1 340 377 |
Cash and cash equivalents at the end of the period | 1 614 907 | 1 309 336 | 1 583 769 |
Net receipts/disbursements (-) | 31 138 | -31 041 | 243 392 |
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. Its 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 2024 – 30 September 2024, with a specification of the results in the 3rd quarter. The interim Financial Statements has not been audited.
The financial statements 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 | 581 401 | 526 287 | 1 734 255 | 1 399 674 | 1 973 093 |
Interest income on loans to credit institutions | 24 638 | 19 394 | 67 469 | 45 240 | 65 590 |
Total interest income, effective interest method | 606 039 | 545 681 | 1 801 724 | 1 444 913 | 2 038 683 |
Interest income on bonds and certificates | 75 195 | 54 162 | 193 616 | 162 450 | 219 358 |
Other interest income | 38 373 | 34 131 | 112 926 | 96 196 | 132 009 |
Total other interest income | 113 568 | 88 293 | 306 542 | 258 646 | 351 367 |
Total interest income | 719 607 | 633 974 | 2 108 266 | 1 703 559 | 2 390 050 |
Interest expenses on deposits to KLP Banken | -154 296 | -115 939 | -433 845 | -298 179 | -426 988 |
Interest expenses on issued securities | -397 760 | -367 200 | -1 183 136 | -976 776 | -1 375 467 |
Interest expense lease liabilities | -66 | -74 | -203 | -225 | -297 |
Total interest expense, effective interest method | -552 122 | -483 213 | -1 617 184 | -1 275 180 | -1 802 752 |
Other interest expenses | -32 975 | -28 269 | -95 358 | -77 564 | -107 877 |
Interest expenses on deposits to customers | -3 324 | -3 576 | -9 972 | -11 104 | -14 680 |
Total other interest expense | -36 299 | -31 845 | -105 330 | -88 668 | -122 557 |
Total interest expense | -588 422 | -515 059 | -1 722 514 | -1 363 848 | -1 925 309 |
Net interest income | 131 185 | 118 915 | 385 752 | 339 711 | 464 740 |
Note 4 Loans to customers
NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
Principal on loans to customers | 42 023 044 | 42 958 704 | 42 665 975 |
Credit portfolio | 41 703 | 43 107 | 42 393 |
Overdraft current account | 162 | 121 | 175 |
Write-downs step 1 and 2 | -1 550 | -1 963 | -1 765 |
Write-downs step 3 | -2 344 | -1 137 | -1 413 |
Loans to customers after write-downs | 42 061 012 | 42 998 832 | 42 705 364 |
Accrued interest | 235 127 | 254 271 | 237 460 |
Fair value hedging | -68 577 | -128 825 | -86 554 |
Loans to customers | 42 227 563 | 43 124 278 | 42 856 271 |
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 THROUGH PROFIT AND LOSS | ||||||
Fixed-income securities | 7 836 977 | 7 836 977 | 4 749 545 | 4 749 545 | 4 276 469 | 4 276 469 |
Financial derivatives | 119 877 | 119 877 | 141 113 | 141 113 | 108 370 | 108 370 |
Shares and holdings | 1 852 | 1 852 | 1 187 | 1 187 | 1 897 | 1 897 |
Total financial assets at fair value through profit and loss | 7 958 705 | 7 958 705 | 4 891 845 | 4 891 845 | 4 386 736 | 4 386 736 |
FINANCIAL ASSETS FAIR VALUE HEDGING | ||||||
Loans to and receivables from customers | 1 881 709 | 1 893 232 | 1 493 349 | 1 503 950 | 1 584 628 | 1 578 296 |
Total financial assets fair value hedging | 1 881 709 | 1 893 232 | 1 493 349 | 1 503 950 | 1 584 628 | 1 578 296 |
FINANCIAL ASSETS AT AMORTIZED COST | ||||||
Loans to and receivables from credit institutions | 75 596 | 75 596 | 74 572 | 74 572 | 75 312 | 75 312 |
Loans to and receivables from central banks | 1 635 361 | 1 635 361 | 1 274 225 | 1 274 225 | 1 577 691 | 1 577 691 |
Loans to and receivables from customers | 40 345 854 | 40 345 854 | 41 630 929 | 41 630 929 | 41 271 643 | 41 271 643 |
Total financial assets at amortized cost | 42 056 811 | 42 056 811 | 42 979 727 | 42 979 727 | 42 924 646 | 42 924 646 |
Total financial assets | 51 897 225 | 51 908 748 | 49 364 920 | 49 375 521 | 48 896 010 | 48 889 678 |
FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT AND LOSS | ||||||
Financial derivatives | 23 170 | 23 170 | 40 651 | 40 651 | 23 233 | 23 233 |
Total financial liabilities at fair value through profit and loss | 23 170 | 23 170 | 40 651 | 40 651 | 23 233 | 23 233 |
FINANCIAL LIABILITIES FAIR VALUE HEDGING | ||||||
Liabilities created on issuance of securities | 1 744 803 | 1 760 513 | 1 687 674 | 1 689 332 | 1 713 024 | 1 722 804 |
Total financial liabilities fair value hedging | 1 744 803 | 1 760 513 | 1 687 674 | 1 689 332 | 1 713 024 | 1 722 804 |
FINANCIAL LIABILITIES AT AMORTIZED COST | ||||||
Liabilities created on issuance of securities | 30 797 749 | 30 910 819 | 29 928 276 | 29 918 720 | 29 695 315 | 29 718 083 |
Deposits from customers | 15 684 807 | 15 684 807 | 14 350 590 | 14 350 590 | 14 060 460 | 14 060 460 |
Total financial liabilities at amortized cost | 46 482 556 | 46 595 626 | 44 278 867 | 44 269 311 | 43 755 775 | 43 778 543 |
Total financial liabilities | 48 250 530 | 48 379 310 | 46 007 192 | 45 999 293 | 45 492 031 | 45 524 579 |
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.
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 pricing information is outdated, a derived valuation is produced from relevant stock indices or other similar securities. If this is also considered unsatisfactory, a discretionary valuation is made. This may be based on fundamental analysis, broker assessment, or adjustments for risk or liquidity considerations in relation to the price.
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
30.09.2024 NOK THOUSANDS | Level 1 | Level 2 | Level 3 | Total |
---|---|---|---|---|
ASSETS BOOKED AT FAIR VALUE | ||||
Fixed-income securities | 630 831 | 7 206 146 | 0 | 7 836 977 |
Shareholdings | 0 | 0 | 1 852 | 1 852 |
Financial derivatives | 0 | 119 877 | 0 | 119 877 |
Total assets at fair value | 630 831 | 7 326 023 | 1 852 | 7 958 705 |
LIABILITIES BOOKED AT FAIR VALUE | ||||
Financial derivatives (liabilities) | 0 | 23 170 | 0 | 23 170 |
Total financial liabilities at fair value | 0 | 23 170 | 0 | 23 170 |
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 |
31.12.2023 NOK THOUSANDS | Level 1 | Level 2 | Level 3 | Total |
---|---|---|---|---|
ASSETS BOOKED AT FAIR VALUE | ||||
Fixed-income securities | 825 632 | 3 450 837 | 0 | 4 276 469 |
Shareholdings | 0 | 0 | 1 897 | 1 897 |
Financial derivatives | 0 | 108 370 | 0 | 108 370 |
Total assets at fair value | 825 632 | 3 559 207 | 1 897 | 4 386 736 |
LIABILITIES BOOKED AT FAIR VALUE | ||||
Financial derivatives (liabilities) | 0 | 23 233 | 0 | 23 233 |
Total financial liabilities at fair value | 0 | 23 233 | 0 | 23 233 |
NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
CHANGES IN LEVEL 3 UNLISTED SHARES | |||
Opening balance | 1 897 | 1 187 | 1 187 |
Additions/purchases of shares | 0 | 0 | 0 |
Unrealized changes | -45 | 0 | 710 |
Closing balance | 1 852 | 1 187 | 1 897 |
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 | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
Bond debt, nominal amount | 34 303 457 | 34 658 978 | 34 657 598 |
Adjustments | -17 726 | -72 213 | -11 981 |
Accrued interest | 280 820 | 237 186 | 205 721 |
Own holdings, nominal amount | -2 024 000 | -3 208 000 | -3 443 000 |
Total debt securities issued | 32 542 552 | 31 615 951 | 31 408 338 |
Interest rate on borrowings through the issuance of securities at the reporting date: | 5.14% | 5.02% | 5.08% |
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 adjustements | Balance sheet 30.09.2024 |
---|---|---|---|---|---|
Changes in debt securities issued - stock exchange listed covered bonds and cerftificates | |||||
Bond debt, nominal amount | 34 657 598 | 7 600 000 | -7 950 000 | -4 141 | 34 303 457 |
Adjustments | -11 981 | 0 | 0 | -5 744 | -17 726 |
Accrued interest | 205 721 | 0 | 0 | 75 099 | 280 820 |
Own holdings, nominal amount | -3 443 000 | 0 | 1 419 000 | 0 | -2 024 000 |
Total debt securities issued | 31 408 338 | 7 600 000 | -6 531 000 | 65 214 | 32 542 552 |
Note 8 Financial assets and liabilities subject to net settlement
30.09.2024 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 | 119 877 | 0 | 119 877 | -23 170 | 0 | 96 706 |
Total | 119 877 | 0 | 119 877 | -23 170 | 0 | 96 706 |
LIABILITIES | ||||||
Financial derivatives | 23 170 | 0 | 23 170 | -23 170 | 0 | 0 |
Total | 23 170 | 0 | 23 170 | -23 170 | 0 | 0 |
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 |
31.12.2023 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 | 108 370 | 0 | 108 370 | -23 233 | 0 | 85 137 |
Total | 108 370 | 0 | 108 370 | -23 233 | 0 | 85 137 |
LIABILITIES | ||||||
Financial derivatives | 23 233 | 0 | 23 233 | -23 233 | 0 | 0 |
Total | 23 233 | 0 | 23 233 | -23 233 | 0 | 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. |
Note 9 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, fees lending management | 46 897 | 45 938 | 61 251 |
KLP Skadeforsikring AS, fees | 0 | 38 | 38 |
KLP Kapitalforvaltning AS, fees for services provided | 0 | 0 | -187 |
KLP, rent | -2 406 | -2 543 | -3 318 |
KLP Skipsbygget AS, rent | -1 694 | -1 628 | -2 171 |
KLP Bassengtomten AS, rent parking | -75 | -72 | -96 |
KLP Eiendomsdrift AS, cost office buildings | -344 | -401 | -472 |
KLP, pension premium | -11 567 | -10 451 | -13 855 |
KLP, staff services (at cost) | -60 828 | -56 591 | -77 627 |
KLP Group companies, subsidised interest employee loans | 11 146 | 13 195 | 18 048 |
NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
BALANCES | |||
KLP, net internal accounts | -4 305 | -3 125 | -5 433 |
KLP, loan settlement | -31 715 | -10 862 | -32 167 |
KLP Group companies, net other internal accounts | 1 157 | 1 512 | 1 421 |
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 | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
Intercompany receivables | 2 074 | 3 058 | 3 216 |
Miscellaneous receivables | 0 | 25 | 3 |
Prepaid expenses | 4 886 | 5 352 | 2 |
Total other assets | 6 961 | 8 435 | 3 221 |
Note 11 Other liabilities and provision for accrued costs
NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
Creditors | 762 | 4 698 | 2 626 |
Intercompany payables | 35 953 | 15 533 | 39 395 |
Short-term balances with credit institutions | 98 896 | 104 700 | 80 000 |
Other liabilities | 117 836 | 92 162 | 5 373 |
Total other liabilities | 253 446 | 217 093 | 127 394 |
Withholding tax | 2 048 | 1 892 | 3 024 |
Social security contributions | 1 708 | 1 531 | 2 782 |
Capital activity tax | 588 | 520 | 902 |
Holiday pay | 5 376 | 4 844 | 6 820 |
Pension obligations | 33 311 | 14 247 | 43 999 |
VAT | 822 | 954 | 21 |
Provisioned costs | 5 776 | 2 676 | 6 364 |
Total accrued costs and liabilities | 49 630 | 26 665 | 63 913 |
Note 12 Capital adequacy
NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
Share capital and share premium fund | 2 190 000 | 2 190 000 | 2 190 000 |
Other owners' equity | 916 733 | 726 875 | 983 931 |
Total owners' equity | 3 106 733 | 2 916 876 | 3 173 931 |
Adjustments due to requirements for proper valuation | -7 837 | -4 750 | -4 276 |
Deduction goodwill and other intangible assets | -12 922 | -14 329 | -13 943 |
Core capital/Tier 1 capital | 3 085 974 | 2 897 797 | 3 155 711 |
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) | 3 085 974 | 2 897 797 | 3 155 711 |
Capital requirement | 1 196 542 | 1 146 913 | 1 162 608 |
Surplus of own funds (Tier 1 and Tier 2 capital) | 1 889 433 | 1 750 884 | 1 993 104 |
Estimate basis credit risk: | |||
Institutions | 334 039 | 281 982 | 336 067 |
Retail | 879 090 | 629 381 | 942 002 |
Local and regional authorities (incl. municipalities/county administations) | 3 761 897 | 3 916 156 | 3 846 618 |
Investments with mortgage security in real estate | 8 402 512 | 8 323 439 | 8 184 585 |
Investments fallen due | 68 600 | 58 185 | 49 785 |
Covered bonds | 640 253 | 372 612 | 325 440 |
Other items | 23 671 | 26 563 | 22 517 |
Calculation basis credit risk | 14 110 061 | 13 608 317 | 13 707 014 |
Credit risk | 1 128 805 | 1 088 665 | 1 096 561 |
Operating risk | 65 852 | 58 035 | 65 852 |
Credit valuation adjustments (CVA) | 1 885 | 212 | 194 |
Total capital requirement assets | 1 196 542 | 1 146 913 | 1 162 608 |
Core capital adequacy ratio | 20.63 % | 20.21 % | 21.71 % |
Supplementary capital ratio | 0.00 % | 0.00 % | 0.00 % |
Capital adequacy ratio | 20.63 % | 20.21 % | 21.71 % |
Leverage ratio | 5.84 % | 5.80 % | 6.30 % |
CAPITAL REQUIREMENT PER 30.09.2024 | Core capital/Tier 1 capital | Supplementary capital/Tier 2 capital | Own funds |
---|---|---|---|
Minimum requirement excl. buffers | 4.50 % | 3.50 % | 8.00 % |
Protective buffer | 2.50 % | 0.00 % | 2.50 % |
Systemic risk buffer | 4.50 % | 0.00 % | 4.50 % |
Counter-cyclical capital buffer | 2.50 % | 0.00 % | 2.50 % |
Pilar 2-requirement | 0.83 % | 0.27 % | 1.10 % |
Current capital requirement incl. buffers | 14.83 % | 3.77 % | 18.60 % |
Capital requirement leverage ratio | 3.00 % | 0.00 % | 3.00 % |
Note 13 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 | 237 486 | 237 813 | 336 643 | 337 104 | 0 | 0 |
Bonds | 7 568 629 | 7 599 164 | 4 407 723 | 4 412 441 | 4 269 911 | 4 276 469 |
Total fixed-income securities | 7 806 115 | 7 836 977 | 4 744 366 | 4 749 545 | 4 269 911 | 4 276 469 |
Fixed income securities are brought to account at market value, including accrued but not due interests. |
Note 14 Loan loss provision
There has not been done any changes in the models for calculation of the expected loss provisions in the third quarter.
The total loan loss provisions have decreased by one precentage for KLP Banken Group from the last 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 01.01.2024 | 2 411 | 2 328 | 1 468 | 6 207 |
Transfer to stage 1 | 973 | -914 | -59 | 0 |
Transfer to stage 2 | -16 | 16 | 0 | 0 |
Transfer to stage 3 | -2 | -87 | 88 | 0 |
Net changes | -1 049 | 354 | 866 | 170 |
New losses | 302 | 161 | 96 | 559 |
Write-offs | -48 | -38 | -18 | -104 |
Change in risk model | -294 | -230 | -68 | -592 |
Closing balance ECL 30.09.2024 | 2 278 | 1 590 | 2 373 | 6 240 |
Changes (01.01.2024 - 30.09.2024) | -133 | -739 | 905 | 33 |
This includes provisions for losses on loans and receivables - unused credit | 2 346 |
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 01.01.2024 | 139 | 320 | 1 048 | 1 507 |
Transfer to stage 1 | 20 | -20 | 0 | 0 |
Transfer to stage 2 | -2 | 2 | 0 | 0 |
Transfer to stage 3 | 0 | -28 | 28 | 0 |
Net changes | -48 | 27 | -98 | -119 |
New losses | 59 | 43 | 46 | 149 |
Write-offs | -7 | -2 | 0 | -8 |
Change in risk model | -25 | -53 | -33 | -111 |
Closing balance ECL 30.09.2024 | 136 | 291 | 991 | 1 418 |
Changes (01.01.2024 - 30.09.2024) | -3 | -30 | -57 | -90 |
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 01.01.2024 | 180 | 0 | 0 | 180 |
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 | -6 | 0 | 0 | -6 |
New losses | 8 | 0 | 0 | 8 |
Write-offs | -11 | 0 | 0 | -11 |
Closing balance ECL 30.09.2024 | 170 | 0 | 0 | 170 |
Changes (01.01.2024 - 30.09.2024) | -10 | 0 | 0 | -10 |
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 01.01.2024 | 2 067 | 2 008 | 297 | 4 372 |
Transfer to stage 1 | 953 | -894 | -59 | 0 |
Transfer to stage 2 | -14 | 14 | 0 | 0 |
Transfer to stage 3 | -2 | -59 | 61 | 0 |
Net changes | -1 025 | 290 | -47 | -781 |
New losses | 232 | 117 | 44 | 393 |
Change in risk model | -266 | -177 | -35 | -478 |
Closing balance ECL 30.09.2024 | 1 947 | 1 299 | 260 | 3 506 |
Changes (01.01.2024 - 30.09.2024) | -120 | -709 | -37 | -866 |
This includes provisions for losses on loans and receivables - unused credit on credit card | 2 338 |
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 01.01.2024 | 24 | 0 | 0 | 24 |
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 | 873 | 873 |
New losses | 3 | 0 | 0 | 3 |
Change in risk model | -3 | 0 | 0 | -3 |
Closing balance ECL 30.09.2024 | 23 | 0 | 874 | 897 |
Changes (01.01.2024 - 30.09.2024) | -1 | 0 | 874 | 873 |
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 01.01.2024 | 0 | 0 | 124 | 124 |
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 | 120 | 120 |
New losses | 0 | 0 | 6 | 6 |
Closing balance ECL 30.09.2024 | 0 | 0 | 250 | 250 |
Changes (01.01.2024 - 30.09.2024) | 0 | 0 | 126 | 126 |
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 01.01.2024 | 42 243 091 | 660 373 | 44 193 | 42 947 657 |
Transfer to stage 1 | 169 824 | -166 285 | -3 539 | 0 |
Transfer to stage 2 | -298 478 | 299 520 | -1 041 | 0 |
Transfer to stage 3 | -6 829 | -18 446 | 25 275 | 0 |
Net changes | -1 020 588 | -4 045 | -4 521 | -1 029 155 |
New losses | 6 920 594 | 71 205 | 5 926 | 6 997 725 |
Write-offs | -6 455 000 | -144 904 | -8 369 | -6 608 273 |
Lending 30.09.2024 | 41 552 613 | 697 418 | 57 923 | 42 307 955 |
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 01.01.2024 | 21 036 709 | 657 456 | 43 154 | 21 737 319 |
Transfer to stage 1 | 168 496 | -165 142 | -3 355 | 0 |
Transfer to stage 2 | -297 702 | 298 743 | -1 041 | 0 |
Transfer to stage 3 | -4 975 | -18 246 | 23 221 | 0 |
Net change | -3 331 589 | -102 123 | -11 577 | -3 445 289 |
New lending | 5 808 878 | 70 813 | 5 741 | 5 885 432 |
Write-offs | -2 246 749 | -46 698 | 0 | -2 293 447 |
Lending 30.09.2024 | 21 133 067 | 694 805 | 56 144 | 21 884 015 |
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 01.01.2024 | 19 087 958 | 0 | 0 | 19 087 958 |
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 | -626 122 | 0 | 0 | -626 122 |
New lending | 831 534 | 0 | 0 | 831 534 |
Write-offs | -1 218 760 | 0 | 0 | -1 218 760 |
Lending 30.09.2024 | 18 074 611 | 0 | 0 | 18 074 611 |
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 01.01.2024 | 40 983 | 2 917 | 866 | 44 766 |
Transfer to stage 1 | 1 328 | -1 143 | -185 | 0 |
Transfer to stage 2 | -776 | 776 | 0 | 0 |
Transfer to stage 3 | -186 | -200 | 387 | 0 |
Net change | 899 | -128 | -298 | 473 |
New lending | 4 695 | 392 | 177 | 5 264 |
Lending 30.09.2024 | 46 943 | 2 614 | 947 | 50 503 |
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 01.01.2024 | 2 077 541 | 0 | 0 | 2 077 541 |
Transfer to stage 1 | 0 | 0 | 0 | 0 |
Transfer to stage 2 | 0 | 0 | 0 | 0 |
Transfer to stage 3 | -1 603 | 0 | 1 603 | 0 |
Net change | -53 067 | 0 | -1 117 | -54 184 |
New lending | 275 449 | 0 | 0 | 275 449 |
Lending 30.09.2024 | 2 298 320 | 0 | 485 | 2 298 806 |
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 01.01.2024 | -99 | 0 | 173 | 73 |
Transfer to stage 1 | 0 | 0 | 0 | 0 |
Transfer to stage 2 | 0 | 0 | 0 | 0 |
Transfer to stage 3 | -64 | 0 | 64 | 0 |
Net change | -201 | 0 | 102 | -99 |
New lending | 37 | 0 | 8 | 46 |
Lending 30.09.2024 | -327 | 0 | 347 | 20 |
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 01.01.2024 | 1 766 778 | 57 144 | 198 | 1 824 120 |
Transfer to stage 1 | 10 619 | -10 593 | -26 | 0 |
Transfer to stage 2 | -14 994 | 14 994 | 0 | 0 |
Transfer to stage 3 | -99 | -9 | 108 | 0 |
Net change | -10 531 | 1 073 | 949 | -8 509 |
New lending | 1 087 829 | 3 354 | 3 | 1 091 186 |
Write-offs | -382 620 | -18 853 | 0 | -401 472 |
Lending 30.09.2024 | 2 456 984 | 47 109 | 1 232 | 2 505 325 |
Losses recognised in the profit and loss account consist of:
NOK THOUSANDS | 01.01.2024 -30.09.2024 | 01.01.2023 -30.09.2023 | 01.01.2023 -31.12.2023 |
---|---|---|---|
Change in loss provisions in stage 1, 2 and 3 | -288 | -1 346 | -1 328 |
Established losses | -312 | -7 | -7 |
Recovery for previously established losses | 515 | 331 | 464 |
Total losses in the income statement | -85 | -1 022 | -871 |
Note 15 Contingent liabilites
NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
Credit facilities for lending not utilized | 1 263 869 | 1 175 835 | 1 275 687 |
Credit facilities issued credit card | 276 332 | 249 298 | 262 897 |
Loan promise | 1 665 897 | 1 457 421 | 885 271 |
Total contingent liabilities | 3 206 098 | 2 882 555 | 2 423 855 |
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 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 inculudes other loans that have been granted but not disbursed.
Note 16 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 | 1 375 | 8 727 | 14 553 | 3 107 | 7 882 |
Net gain/(loss) financial derivatives and realized amortization linked to lending | -60 | 317 | -285 | 439 | 284 |
Net gain/(loss) financial derivatives and realized repurchase of own debt | -2 396 | -3 675 | -11 339 | -9 633 | -9 933 |
Net accrual of over/under rates borrowings and securities | 1 381 | 1 379 | 4 141 | 4 141 | 5 521 |
Other financial income and expenses | -420 | -314 | -1 261 | -946 | -1 288 |
Total net gain/(loss) on financial instruments | -121 | 6 433 | 5 808 | -2 893 | 2 466 |
Note 17 Leases
NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
Property | |||
RIGHT-OF-USE ASSETS | |||
Opening balance 01.01. | 14 495 | 16 365 | 16 365 |
Depreciation | -1 403 | -1 403 | -1 870 |
Closing balance | 13 092 | 14 962 | 14 495 |
LEASE LIABILITIES | |||
Opening balance 01.01. | 15 131 | 16 761 | 16 761 |
Repayments | -1 267 | -1 216 | -1 630 |
Closing balance | 13 864 | 15 544 | 15 131 |
NOK THOUSANDS | Q3 2024 | Q3 2023 | 01.01.2024 -30.09.2024 | 01.01.2023 -30.09.2023 | 01.01.2023 -31.12.2023 |
---|---|---|---|---|---|
Property | |||||
Interest expense lease liabilities | 66 | 74 | 203 | 225 | 297 |
Interest expense lease liabilities | 66 | 74 | 203 | 225 | 297 |
Note 18 Pension obligations - own employees
NOK THOUSANDS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
Capitalized net liability | 43 999 | 32 092 | 32 092 |
Pension costs taken to profit/loss | 11 328 | 10 231 | 13 635 |
Finance costs taken to profit/loss | 1 261 | 946 | 1 287 |
Actuarial gains and losses incl. social security contributions | -10 523 | -15 315 | 13 013 |
Premiums/supplement paid-in including admin | -12 754 | -13 708 | -16 029 |
Capitalized net liability | 33 311 | 14 247 | 43 999 |
ASSUMPTIONS | 30.09.2024 | 30.09.2023 | 31.12.2023 |
---|---|---|---|
Discount rate | 3.25% | 4.00% | 3.10% |
Salary growth | 3.50% | 4.00% | 3.50% |
The National Insurance basic amount (G) | 3.25% | 3.50% | 3.25% |
Pension increases | 2.80% | 2.90% | 2.80% |
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 10.5 million as of 30.09.2024. The change is recognized in comprehensive income. |
Quarterly earnings trend
NOK MILLIONS | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
---|---|---|---|---|---|
Interest income | 719.6 | 699.2 | 689.5 | 686.5 | 634.0 |
Interest expense | -588.4 | -571.2 | -562.9 | -561.5 | -515.1 |
Net interest income | 131.2 | 127.9 | 126.6 | 125.0 | 118.9 |
Commision income and income from banking services | 9.9 | 9.1 | 7.4 | 7.8 | 8.4 |
Commision cost and cost from banking services | -0.7 | -0.7 | -0.7 | -0.8 | -0.7 |
Net charges and commission income | 9.2 | 8.4 | 6.7 | 7.0 | 7.7 |
Other fee income | 15.6 | 15.7 | 15.6 | 15.3 | 15.3 |
Net gain/(loss) financial instruments | -0.1 | -1.0 | 6.9 | 5.4 | 6.4 |
Total other operating income | 15.5 | 14.7 | 22.5 | 20.7 | 21.7 |
Salaries and administrative costs | -26.4 | -17.3 | -25.6 | -27.7 | -20.6 |
Depreciation | -0.8 | -0.8 | -0.8 | -0.9 | -0.9 |
Other operating expenses | -40.8 | -42.4 | -53.2 | -41.9 | -44.6 |
Net loan losses | -0.1 | 1.1 | -1.1 | 0.2 | -0.6 |
Total operating expenses | -68.2 | -59.3 | -80.6 | -70.4 | -66.7 |
Operating profit/loss before tax | 87.7 | 91.8 | 75.1 | 82.3 | 81.6 |
Tax ordinary income | -4.2 | -5.1 | -0.9 | -19.6 | -19.6 |
Profit/loss for the period | 83.5 | 86.7 | 74.2 | 62.7 | 62.0 |
Other comprehensive income | -5.8 | 6.2 | 10.1 | -28.3 | -2.0 |
Tax on other comprehensive income | 1.5 | -1.5 | -2.5 | 7.1 | 0.5 |
Other comprehensive income for the period | -4.4 | 4.6 | 7.6 | -21.2 | -1.5 |
Comprehensive income for the period | 79.2 | 91.3 | 81.8 | 41.5 | 60.5 |
Key figures – accumulated
NOK MILLIONS | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
---|---|---|---|---|---|
Pre-tax income | 254.7 | 166.9 | 75.1 | 285.4 | 203.1 |
Net interest income | 385.8 | 254.6 | 126.6 | 464.7 | 339.7 |
Other operating income | 71.2 | 46.4 | 22.3 | 89.2 | 66.9 |
Other operating cost and depreciation | -208.1 | -139.9 | -80.6 | -270.9 | -200.6 |
Net gain/(loss) financial instruments | 5.8 | 5.9 | 6.9 | 2.5 | -2.9 |
Deposits | 15 684.8 | 15 628.8 | 14 157.5 | 14 060.5 | 14 350.6 |
Lending customers | 24 221.7 | 24 493.5 | 24 101.5 | 23 855.0 | 23 753.6 |
Lending with public sector guarantee | 18 005.9 | 18 310.8 | 18 735.1 | 19 001.2 | 19 370.6 |
Non-performing loans | 57.9 | 54.4 | 53.0 | 44.2 | 52.1 |
Total liabilities created on issuance of securities | 32 542.6 | 30 766.9 | 31 252.8 | 31 408.3 | 31 616.0 |
Other borrowing | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
Total assets | 51 930.6 | 49 972.6 | 48 856.7 | 48 928.1 | 49 403.1 |
Average total assets | 50 429.4 | 49 450.4 | 48 892.4 | 49 719.4 | 49 956.9 |
Equity | 3 359.0 | 3 279.8 | 3 188.5 | 3 173.9 | 3 132.4 |
Interest net | 0.76 % | 0.51 % | 0.26 % | 0.93 % | 0.68 % |
Profit/loss from ordinary operation before taxes | 0.51 % | 0.34 % | 0.15 % | 0.57 % | 0.41 % |
Return on equity | 10.70 % | 10.52 % | 9.47 % | 9.62 % | 9.13 % |
Capital adequacy ratio | 20.6 % | 20.8 % | 21.2 % | 21.7 % | 20.2 % |
Liquidity coverage ratio (LCR) | 401 % | 452 % | 325 % | 520 % | 404 % |
Contact information
KLP BANKEN AS
Beddingen 8
7042 Trondheim
Organization number: 993 821 837
Visitors address, Trondheim:
Beddingen 8
Visitors address, Oslo:
Dronning Eufemias gate 10
Phone: +47 55 54 85 00