KLP Kommunekreditt ASQ3 2025
Interim Financial Statements 3/2025
Main features by third quarter end:
- Stable P&L development
- Increased lending volume
- No realized loan losses
Objective
The Company's objective is financing KLP Banken's loans to municipalities, county administrations and enterprises carrying out public sector assignments. Loans to companies must be guaranteed by municipalities, county administrations or the central government under the Norwegian Local Government Act. Guarantees are to be of the ordinary surety type covering both repayments and interest. The lending business is principally funded issuing covered bonds (OMF).
KLP Kommunekreditt AS is a wholly owned subsidiary of KLP Banken AS. The KLP Banken AS is owned by Kommunal Landspensjonskasse (KLP).
Income statement
The operating profit before tax for the third quarter was NOK 24.0 (18.2) million. Year-to-date, profit before tax is NOK 69.2 (63.5) million. The change in profit is mainly due to net gains on financial instruments.
Net interest income for the third quarter amounted to NOK 29.1 (25.8) million. Year-to-date net interest income is NOK 77.5 (82.7) million. Compared to the third quarter last year, the company has had a higher average lending volume, resulting in increased net interest income. The year-to-date reduction in net interest income is due to lower margins on loans.
Net effects from financial instruments year-to-date amount to NOK 7.5 (-3.7) million. This mainly includes costs related to buybacks of funding and value changes in liquidity placements. Realized and unrealized value changes in the company’s liquidity placements have contributed NOK 7.6 (6.3) million to the result so far this year. Accounting losses from buybacks of own debt amount to -0.1 (-9.8) million year-to-date.
Operating expenses as of third quarter were NOK -15.8 (-15.6) million. The company has not had any loan losses and maintains very low loan loss provisions.
Lending and total assets
The company’s loans to customers as of 30 September 2025 were NOK 20.6 (18.0) billion. So far this year, the net loan growth has been NOK 1.9 billion. Borrowers are municipalities, county municipalities, and enterprises with municipal guarantees. Total assets was NOK 22.5 (22.9) billion.
Liquidity investments
The collateral associated with the loan financing is subject to strict requirements. In addition to loans to the public sector, it consists of high credit quality securities and deposits in other banks. The securities consist of certificates and bonds with high credit quality, mainly covered bonds. As of 30 September 2025, the company’s interest-bearing securities had a market value of NOK 0.9 (4.1) billion.
Funding
The company’s funding consists of covered bonds (OMF) and loans from KLP Banken AS. The company had NOK 1.7 (0.6) billion in intra-group debt at the end of the quarter. Outstanding OMF debt was NOK 19.7 (21.2) billion. NOK 0.5 billion in new covered bonds have been issued so far this year. Net repurchases or sales of own holdings from previous issues amount to NOK -0.3 (-4.5) billion as of third quarter. All OMF issuances have an Aaa rating from Moody’s.
Risk and capital adequacy
KLP Kommunekreditt AS has established a risk management framework to ensure that risks are identified, analyzed, and managed through guidelines, frameworks, routines, and instructions. The company should have a cautious risk profile, and earnings should primarily result from lending and borrowing activities as well as liquidity management. This means that the company should 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 loans are limited to those with municipal risk. 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 under the capital adequacy rules at the end of Q3 2025 was NOK 1,011.0 (945.2) million. Loans to municipalities and county municipalities are risk-weighted at 20 percent according to regulatory capital adequacy rules. KLP Kommunekreditt AS has a core capital adequacy and capital adequacy ratio of 21.9 (21.4) percent as at third quarter. The minimum statutory requirement is 17.5 percent capital adequacy ratio. Leverage ratio was 4.5 (4.1) per cent. The requirement here is 3.0 per cent.
Outlook
KLP Kommunekreditt AS is the only credit institution in Norway that issues covered bonds secured by loans to the public sector. Together with KLP, the company contributes to competition in the public lending market, thereby ensuring that the public sector has access to long-term financing on favorable terms. The overall growth in recent years demonstrates a solid market position.
High credit quality in the loan portfolios is intended to help KLP Kommunekreditt AS achieve favorable funding terms. Government regulation of banks and financial institutions requires compliance with a range of capital and liquidity requirements. This necessitates ongoing earnings that enable the company to meet such requirements.
The market for municipal sector loans continues to grow, and a large portion of borrowing is financed in the securities market rather than through financial institutions. KLP Kommunekreditt AS is well-capitalized and has an advantage as a stable and long-term lender in a low-risk market. The general development in the financial markets will determine the extent to which KLP Kommunekreditt AS can finance its lending activities on terms that provide sufficient profitability for continued growth.
Norwegian municipalities have developed a strong and comprehensive range of services for the population. Increased life expectancy, demographic trends, income development, and climate risk suggest a continued high level of investment in the public sector in the coming years. Higher costs due to increased interest rates do not appear to have reduced lending growth compared to recent years. In its annual budget survey, KS (the Norwegian Association of Local and Regional Authorities) indicates that investment and borrowing levels are expected to remain high going forward. Demand for loans to projects that support climate adaptation is also likely to continue increasing in the years ahead.
The Board assumes that there will continue to be a significant need for long-term and stable financing for public borrowers. KLP Kommunekreditt AS and KLP together aim to be a key provider of loans for public investment purposes.
Trondheim, 5 November 2025
AAGE E. SCHAANNING
Chair
JANICKE E. FALKENBERG
INGER HEGNA
JONAS V. KÅRSTAD
CARL STEINAR LOUS
Managing Director
Income statementKLP Kommunekreditt AS
| NOTE | NOK THOUSANDS | Q3 2025 | Q3 2024 | 01.01.2025 -30.09.2025 | 01.01.2024 -30.09.2024 | 01.01.2024 -31.12.2024 |
|---|---|---|---|---|---|---|
| Interest income, effective interest method | 258 393 | 244 934 | 767 779 | 741 742 | 984 871 | |
| Other interest income | 58 150 | 64 817 | 204 976 | 179 145 | 269 668 | |
| 3 | Total interest income | 316 543 | 309 751 | 972 755 | 920 886 | 1 254 539 |
| Interest expense, effective interest method | -251 296 | -250 984 | -792 275 | -742 877 | -1 017 952 | |
| Other interest expenses | -36 118 | -32 945 | -102 962 | -95 265 | -128 028 | |
| 3 | Total interest costs | -287 414 | -283 928 | -895 237 | -838 142 | -1 145 980 |
| 3 | Net interest income | 29 129 | 25 823 | 77 518 | 82 745 | 108 559 |
| 17 | Net gain/(loss) on financial instruments | 1 570 | -1 463 | 7 456 | -3 650 | -10 448 |
| Total net gain/(loss) on financial instruments | 1 570 | -1 463 | 7 456 | -3 650 | -10 448 | |
| Other operating expenses | -6 649 | -6 124 | -15 739 | -15 595 | -21 157 | |
| 18 | Net loan losses | -9 | 3 | -18 | 10 | 3 |
| Total operating expenses | -6 658 | -6 121 | -15 757 | -15 585 | -21 155 | |
| Operating profit/loss before tax | 24 042 | 18 239 | 69 217 | 63 510 | 76 956 | |
| Tax ordinary income | -959 | 969 | -2 237 | 973 | 2 997 | |
| Profit for the period | 23 083 | 19 208 | 66 980 | 64 483 | 79 953 | |
| Other income and expenses | 0 | 0 | 0 | 0 | 0 | |
| Comprehensive income for the period | 23 083 | 19 208 | 66 980 | 64 483 | 79 953 |
BalanceKLP Kommunekreditt AS
| NOTE | NOK THOUSANDS | 30.09.2025 | 30.09.2024 | 31.12.2024 |
|---|---|---|---|---|
| ASSETS | ||||
| 5 | Loans to credit institutions | 817 481 | 720 700 | 705 779 |
| 4,5 | Loans to customers | 20 634 836 | 18 005 864 | 18 687 981 |
| 5,6,15 | Fixed-income securities | 941 842 | 4 088 504 | 3 587 455 |
| 5,6 | Financial derivatives | 110 683 | 119 741 | 83 757 |
| 12 | Other assets | 32 412 | 8 669 | 2 025 |
| Total assets | 22 537 254 | 22 943 476 | 23 066 996 | |
| LIABILITIES AND OWNERS EQUITY | ||||
| LIABILITIES | ||||
| 5,9 | Debt to credit institutions | 1 653 271 | 551 105 | 951 824 |
| 5,7 | Debt securities issued | 19 667 475 | 21 183 736 | 20 976 533 |
| 5,6 | Financial derivatives | 20 032 | 23 170 | 38 057 |
| Deferred tax liabilities | 1 304 | 1 695 | 18 625 | |
| 13 | Other liabilities | 115 800 | 169 586 | 52 720 |
| 13 | Provision for accrued costs and liabilities | 476 | 418 | 0 |
| Total liabilities | 21 458 357 | 21 929 709 | 22 037 759 | |
| EQUITY | ||||
| Share capital | 391 500 | 391 500 | 391 500 | |
| Share premium | 363 500 | 363 500 | 363 500 | |
| Other accrued equity | 256 917 | 194 284 | 274 237 | |
| Unallocated profit/loss | 66 980 | 64 483 | 0 | |
| Total owners' equity | 1 078 897 | 1 013 767 | 1 029 237 | |
| Total liabilities and equity | 22 537 254 | 22 943 476 | 23 066 996 | |
Statement of changes in equityKLP Kommunekreditt AS
| 2025 NOK THOUSANDS | Share capital | Share premium | Other accrued equity | Total owners' equity |
|---|---|---|---|---|
| Equity 1 January 2025 | 391 500 | 363 500 | 274 237 | 1 029 237 |
| Profit for the period | 0 | 0 | 66 980 | 66 980 |
| Other income and expenses | 0 | 0 | 0 | 0 |
| Total comprehensive income for the period | 0 | 0 | 66 980 | 66 980 |
| Group contribution received | 0 | 0 | 61 410 | 61 410 |
| Group contribution made | 0 | 0 | -78 731 | -78 731 |
| Total transactions with the owners | 0 | 0 | -17 321 | -17 321 |
| Equity 30 September 2025 | 391 500 | 363 500 | 323 897 | 1 078 897 |
| 2024 NOK THOUSANDS | Share capital | Share premium | Other accrued equity | Total owners' equity |
|---|---|---|---|---|
| Equity 1 January 2024 | 391 500 | 363 500 | 214 212 | 969 212 |
| Profit for the period | 0 | 0 | 64 483 | 64 483 |
| Other income and expenses | 0 | 0 | 0 | 0 |
| Total comprehensive income for the period | 0 | 0 | 64 483 | 64 483 |
| Group contribution received | 0 | 0 | 70 651 | 70 651 |
| Group contribution made | 0 | 0 | -90 578 | -90 578 |
| Total transactions with the owners | 0 | 0 | -19 927 | -19 927 |
| Equity 30 September 2024 | 391 500 | 363 500 | 258 767 | 1 013 767 |
| 2024 NOK THOUSANDS | Share capital | Share premium | Other accrued equity | Total owners' equity |
|---|---|---|---|---|
| Equity 1 January 2024 | 391 500 | 363 500 | 214 212 | 969 212 |
| Income for the year | 0 | 0 | 79 953 | 79 953 |
| Other income and expenses | 0 | 0 | 0 | 0 |
| Total comprehensive income for the period | 0 | 0 | 79 953 | 79 953 |
| Group contribution received | 0 | 0 | 70 651 | 70 651 |
| Group contribution made | 0 | 0 | -90 578 | -90 578 |
| Total transactions with the owners | 0 | 0 | -19 927 | -19 927 |
| Equity 31 December 2024 | 391 500 | 363 500 | 274 237 | 1 029 237 |
Statement of cash flowKLP Kommunekreditt AS
| NOK THOUSANDS | 01.01.2025 -30.09.2025 | 01.01.2024 -30.09.2024 | 01.01.2024 -31.12.2024 |
|---|---|---|---|
| OPERATIONAL ACTIVITIES | |||
| Payments received from customers - interest | 697 968 | 722 839 | 978 918 |
| Payments made on issuance of loans to customers | -2 869 578 | -462 251 | -2 062 280 |
| Receipts related to repayment and redemption of loans to customers | 996 718 | 1 455 729 | 2 393 715 |
| Receipts on loans from credit institutions | 503 400 | 6 250 000 | 6 250 000 |
| Repayments and redemption of securities debt | -4 000 000 | -5 000 000 | -5 000 000 |
| Change in securities debt, own funds | 2 086 039 | 477 512 | 333 063 |
| Net payment of interest on loans credit institions | -691 318 | -646 787 | -951 937 |
| Receipts in internal funding | 2 300 000 | 350 000 | 1 500 000 |
| Disbursements in internal funding | -1 600 000 | -500 000 | -1 250 000 |
| Net payment of interest on internal funding | -57 794 | -25 640 | -33 070 |
| Payments on the purchase of securities | -1 033 426 | -3 221 642 | -3 520 132 |
| Receipts on sale of securities | 3 644 911 | 703 316 | 1 449 349 |
| Receipts of interest from securities | 94 411 | 49 422 | 101 362 |
| Disbursements on operations | -15 832 | -16 833 | -21 719 |
| Net receipts/disbursements from operating activities | 47 789 | -4 552 | -12 032 |
| Interest from credit institutions | 16 388 | 11 926 | 23 675 |
| Net cash flow from operating activities | 119 675 | 143 038 | 178 912 |
| INVESTMENT ACTIVITIES | |||
| Net cash flow from investment activities | 0 | 0 | 0 |
| FINANCING ACTIVITIES | |||
| Payment on group contribution | -17 321 | -19 927 | -19 927 |
| Net cash flows from financing activities | -17 321 | -19 927 | -19 927 |
| Net cash flow during the period | 102 354 | 123 111 | 158 985 |
| Cash and cash equivalents at the start of the period | 694 341 | 535 356 | 535 356 |
| Cash and cash equivalents at the end of the period | 796 696 | 658 467 | 694 341 |
| Net receipts/disbursements | 102 354 | 123 111 | 158 985 |
| Liquidity holdings comprise: | |||
| Deposits with and receivables from banks with no agreed term | 796 696 | 658 467 | 694 341 |
| Total liquidity holdings at the end of the reporting period | 796 696 | 658 467 | 694 341 |
| Total interest received | 808 767 | 784 186 | 1 103 956 |
| Total interest paid | -749 113 | -672 427 | -985 007 |
Notes to the financial statementKLP Kommunekreditt AS
Note 1 General information
KLP Kommunekreditt AS was formed on 25 August 2009. The company is a credit enterprise that provides or acquires public sector loans that are guaranteed by the Norwegian municipalities. Borrowers provide surety covering both repayments and interest.
The object of the Company is primarily to finance activities by issuing covered bonds with security in public sector guarantees loans. Parts of these loans are listed on Oslo Børs (Stock Exchange).
KLP Kommunekreditt AS is registered and domiciled in Norway. It's head office is at Beddingen 8 in Trondheim, and the company has a branch office in Dronning Eufemiasgate 10 in 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 Kommunekreditt AS for the period 1 January 2025 – 30 September 2025.
The financial statements for KLP Kommunekreditt 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".
The interim Financial Statements has not been audited.
Other accounting principles and calculations are the same in the interim financial statement as in the annual report for 2024 please see the annual report for further information.
Note 3 Net interest income
| NOK THOUSANDS | Q3 2025 | Q3 2024 | 01.01.2025 -30.09.2025 | 01.01.2024 -30.09.2024 | 01.01.2024 -31.12.2024 |
|---|---|---|---|---|---|
| Interest income on loans to customers | 252 183 | 238 876 | 742 107 | 724 708 | 961 196 |
| Interest income on loans to credit institutions | 6 210 | 6 058 | 25 672 | 17 034 | 23 675 |
| Total interest income, effective interest method | 258 393 | 244 934 | 767 779 | 741 742 | 984 871 |
| Interest income on fixed-income securities | 13 389 | 26 528 | 84 329 | 66 474 | 116 937 |
| Other interest income | 44 760 | 38 288 | 120 647 | 112 671 | 152 731 |
| Total other interest income | 58 150 | 64 817 | 204 976 | 179 145 | 269 668 |
| Total interest income | 316 543 | 309 751 | 972 755 | 920 886 | 1 254 539 |
| Interest expenses on debt from KLP Banken AS | -22 158 | -8 477 | -59 241 | -25 174 | -33 323 |
| Interest expenses on issued securities | -229 138 | -242 507 | -733 033 | -717 703 | -984 629 |
| Total interest expenses, effective interest method | -251 296 | -250 984 | -792 275 | -742 877 | -1 017 952 |
| Other interest expenses | -36 118 | -32 945 | -102 962 | -95 265 | -128 028 |
| Total other interest expenses | -36 118 | -32 945 | -102 962 | -95 265 | -128 028 |
| Total interest expenses | -287 414 | -283 928 | -895 237 | -838 142 | -1 145 980 |
| Net interest income | 29 129 | 25 823 | 77 518 | 82 745 | 108 559 |
Note 4 Loans to customers
| NOK THOUSANDS | 30.09.2025 | 30.09.2024 | 31.12.2024 |
|---|---|---|---|
| Principal on lending | 20 473 904 | 17 879 842 | 18 594 965 |
| Write-downs | -195 | -170 | -177 |
| Accrued interest | 219 316 | 194 769 | 175 177 |
| Fair value hedging | -58 189 | -68 577 | -81 984 |
| Loans to and receivables from customers | 20 634 836 | 18 005 864 | 18 687 981 |
All lending comprises loans to, or loans guaranteed by, Norwegian municipalities and county administrations, including loans to local government enterprises and intermunicipal (public sector lending). Guarantees are of the ordinary surety type covering both repayments and interest.
Note 5 Categories of financial instruments
| NOK THOUSANDS | 30.09.2025 | 30.09.2024 | 31.12.2024 | |||
|---|---|---|---|---|---|---|
| Capitalized value | Fair value | Capitalized value | Fair value | Capitalized value | Fair value | |
| FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS | ||||||
| Fixed-income securities | 941 842 | 941 842 | 4 088 504 | 4 088 504 | 3 587 455 | 3 587 455 |
| Financial derivatives | 110 683 | 110 683 | 119 741 | 119 741 | 83 757 | 83 757 |
| Total financial assets at fair value through profit and loss | 1 052 525 | 1 052 525 | 4 208 245 | 4 208 245 | 3 671 212 | 3 671 212 |
| FINANCIAL ASSETS FAIR VALUE HEDGING AT AMORTIZED COST | ||||||
| Lending to Norwegian municipalities | 2 123 260 | 2 141 684 | 1 881 709 | 1 893 232 | 1 921 836 | 1 936 594 |
| Total financial assets fair value hedging at amortized cost | 2 123 260 | 2 141 684 | 1 881 709 | 1 893 232 | 1 921 836 | 1 936 594 |
| FINANCIAL ASSETS AT AMORTIZED COST | ||||||
| Loans to and receivables from credit institutions | 817 481 | 817 481 | 720 700 | 720 700 | 705 779 | 705 779 |
| Lending to Norwegian municipalities | 18 511 575 | 18 511 575 | 16 124 154 | 16 124 154 | 16 766 145 | 16 766 145 |
| Total financial assets at amortized cost | 19 329 056 | 19 329 056 | 16 844 854 | 16 844 854 | 17 471 924 | 17 471 924 |
| Total financial assets | 22 504 842 | 22 523 265 | 22 934 808 | 22 946 330 | 23 064 972 | 23 079 730 |
| FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT AND LOSS | ||||||
| Financial derivatives | 20 032 | 20 032 | 23 170 | 23 170 | 38 057 | 38 057 |
| Total financial liabilities at fair value through profit and loss | 20 032 | 20 032 | 23 170 | 23 170 | 38 057 | 38 057 |
| FINANCIAL LIABILITIES FAIR VALUE AT HEDGING AMORTIZED COST | ||||||
| Covered bonds issued | 2 268 681 | 2 267 448 | 1 744 803 | 1 760 513 | 1 679 351 | 1 691 807 |
| Total financial liabilities fair value hedging amortized cost | 2 268 681 | 2 267 448 | 1 744 803 | 1 760 513 | 1 679 351 | 1 691 807 |
| FINANCIAL LIABILITIES AT AMORTIZED COST | ||||||
| Liabilities to credit institutions | 1 653 271 | 1 653 271 | 551 105 | 551 105 | 951 824 | 951 824 |
| Covered bonds issued | 17 398 794 | 19 739 468 | 19 438 932 | 19 518 414 | 19 297 182 | 19 343 808 |
| Total financial liabilities at amortized cost | 19 052 065 | 21 392 738 | 19 990 037 | 20 069 518 | 20 249 006 | 20 295 632 |
| Total financial liabilities | 21 340 777 | 23 680 218 | 21 758 011 | 21 853 202 | 21 966 414 | 22 025 497 |
Fair value shall be a representative price based on what a corresponding asset or liability would have been traded for on the balance sheet day. A financial instrument is considered to be listed in an active market if the listed price is simply and regularly available from a stock market, dealer, broker, industry grouping, price setting service or regulatory authority, and these prices represent actual and regularly occurring transactions at arm’s length. If the market for the security is not active, or the security is not listed on a stock market or similar, valuation techniques are used to set fair value. These are based for example on information on recently completed transactions carried out on business terms and conditions, reference to trading in similar instruments and pricing using externally collected yield curves and yield spread curves. As far as possible the estimates are based on externally observable market data and to the leaste extent possible on company-specific information.
The different financial instruments are thus priced in the following way:
Fixed-income securities - government
Nordic Bond Pricing is used as a source for pricing Norwegian government bonds.
Fixed-income securities - other than government
Norwegian fixed-income securities are generally priced based on rates from Nordic Bond Pricing. Securities not covered by Nordic Bond Pricing are priced theoretically. The theoretical price should be based on the discounted value of the security's future cash flows. Discounting is done using a swap curve adjusted for credit spread and liquidity spread. The credit spread should, to the extent possible, be based on a comparable bond from the same issuer. Liquidity spread is determined at the discretion of the evaluator.
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.
Fair value of loans to Norwegian local administrations
Fair value of lending without fixed interest rates is considered virtually the same as book value since the contract terms are continuously 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. This is valued in Level 2 in the valuation hierarchy, cf. Note 6.
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. This is valued in Level 2 in the valuation hierarchy, cf. Note 6.
Fair value of liabilities to credit institutions
These transactions are valued using a valuation model, including relevant credit spread adjustments obtained from the market. This is valued in Level 2 in the valuation hierarchy, cf. Note 6.
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. This is valued in Level 2 in the valuation hierarchy, cf. Note 6.
Note 6 Fair value hierarchy
| 30.09.2025 NOK THOUSANDS | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| ASSETS BOOKED AT FAIR VALUE | ||||
| Fixed-income securities | 128 969 | 812 873 | 0 | 941 842 |
| Financial derivatives | 0 | 110 683 | 0 | 110 683 |
| Total assets at fair value | 128 969 | 923 556 | 0 | 1 052 525 |
| LIABILITIES BOOKED AT FAIR VALUE | ||||
| Financial derivatives (liabilities) | 0 | 20 032 | 0 | 20 032 |
| Total financial liabilities at fair value | 0 | 20 032 | 0 | 20 032 |
| 30.09.2024 NOK THOUSANDS | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| ASSETS BOOKED AT FAIR VALUE | ||||
| Fixed-income securities | 99 089 | 3 989 415 | 0 | 4 088 504 |
| Financial derivatives | 0 | 119 741 | 0 | 119 741 |
| Total assets at fair value | 99 089 | 4 109 156 | 0 | 4 208 245 |
| 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 |
| 31.12.2024 NOK THOUSANDS | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| ASSETS BOOKED AT FAIR VALUE | ||||
| Fixed-income securities | 99 103 | 3 488 353 | 0 | 3 587 455 |
| Financial derivatives | 0 | 83 757 | 0 | 83 757 |
| Total assets at fair value | 99 103 | 3 572 109 | 0 | 3 671 212 |
| LIABILITIES BOOKED AT FAIR VALUE | ||||
| Financial derivatives (liabilities) | 0 | 38 057 | 0 | 38 057 |
| Total financial liabilities at fair value | 0 | 38 057 | 0 | 38 057 |
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. 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 | 30.09.2025 | 30.09.2024 | 31.12.2024 |
|---|---|---|---|
| Bond debt, nominal amount | 19 453 400 | 22 950 000 | 22 950 000 |
| Adjustments | -10 031 | -13 636 | -42 953 |
| Accrued interest | 224 105 | 221 372 | 183 486 |
| Own holdings, nominal amount | 0 | -1 974 000 | -2 114 000 |
| Total debt securities issued | 19 667 475 | 21 183 736 | 20 976 533 |
| Interest rate on borrowings through the issuance of securities on the reporting date: | 4.77% | 5.15% | 5.10% |
| The interest rate is calculated as a weighted average of the act/360 basis. It includes interest rate effects and amortization costs. | |||
| NOK THOUSANDS | Balance sheet 31.12.2024 | Issued | Matured/ redeemed | Other adjustments | Balance sheet 30.09.2025 |
|---|---|---|---|---|---|
| Bond debt, nominal amount | 22 950 000 | 503 400 | -4 000 000 | 0 | 19 453 400 |
| Adjustments | -42 953 | 0 | 0 | 32 922 | -10 031 |
| Accrued interest | 183 486 | 0 | 0 | 40 620 | 224 105 |
| Own holdings, nominal amount | -2 114 000 | 0 | 2 114 000 | 0 | 0 |
| Total debt securities issued | 20 976 533 | 503 400 | -1 886 000 | 73 542 | 19 667 475 |
Note 8 Over-collateralisation
| NOK THOUSANDS | 30.09.2025 | 30.09.2024 | 31.12.2024 |
|---|---|---|---|
| SECURITY POOL | |||
| Loans to customers | 20 661 242 | 18 016 856 | 18 715 951 |
| Financial derivatives (net) | 89 623 | 96 491 | 45 704 |
| Additional collateral ¹ | 1 275 223 | 6 436 275 | 5 886 869 |
| Total security pool | 22 026 088 | 24 549 622 | 24 648 525 |
| Outstanding covered bonds incl. own funds and premium/discount | 19 739 468 | 23 263 135 | 23 158 712 |
| Coverage of the security pool | 111.6% | 105.5% | 106.4 % |
| ¹ Additional collateral includes loans and receivables from credit institutions and bonds and certificates. 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 2 percent of the value of the outstanding covered bonds.
Note 9 Liabilities to credit institutions
| 30.09.2025 NOK THOUSANDS | ||||
|---|---|---|---|---|
| Due date | Nominal | Accrued interest | Book value | |
| Debt to KLP Banken AS | 15.12.2026 | 500 000 | 991 | 500 991 |
| Debt to KLP Banken AS | 15.12.2026 | 550 000 | 1 090 | 551 090 |
| Debt to KLP Banken AS | 15.12.2026 | 200 000 | 396 | 200 396 |
| Debt to KLP Banken AS | 15.12.2026 | 400 000 | 793 | 400 793 |
| Total liabilities to credit institutions | 1 650 000 | 3 271 | 1 653 271 | |
| Interest rate on debt to credit institutions at the reporting date: | 4.46% | |||
| The interest rate is calculated as a weighted average of the act/360 basis. | ||||
| 30.09.2024 NOK THOUSANDS | ||||
|---|---|---|---|---|
| Due date | Nominal | Accrued interest | Book value | |
| Debt to KLP Banken AS | 15.12.2025 | 400 000 | 803 | 400 803 |
| Debt to KLP Banken AS | 15.12.2025 | 150 000 | 301 | 150 301 |
| Total liabilities to credit institutions | 550 000 | 1 105 | 551 105 | |
| Interest rate on debt to credit institutions at the reporting date: | 4.82% | |||
| The interest rate is calculated as a weighted average of the act/360 basis. | ||||
| 31.12.2024 NOK THOUSANDS | ||||
|---|---|---|---|---|
| Due date | Nominal | Accrued interest | Book value | |
| Debt to KLP Banken AS | 15.12.2026 | 550 000 | 1 146 | 551 146 |
| Debt to KLP Banken AS | 15.12.2026 | 400 000 | 677 | 400 677 |
| Total liabilities to credit institutions | 950 000 | 1 824 | 951 824 | |
| Interest rate on debt to credit institutions at the reporting date: | 4.69 % | |||
| The interest rate is calculated as a weighted average of the act/360 basis. | ||||
Note 10 Financial assets and liabilities subject to net settlement
| 30.09.2025 NOK THOUSANDS | Related sums that are not presented net | |||
|---|---|---|---|---|
| Gross financial assets/ liabilites | Financial instruments | Security in cash | Net recognised value | |
| ASSETS | ||||
| Financial derivatives | 110 683 | -20 032 | 0 | 90 652 |
| Total | 110 683 | -20 032 | 0 | 90 652 |
| LIABILITIES | ||||
| Financial derivatives | 20 032 | -20 032 | 0 | 0 |
| Total | 20 032 | -20 032 | 0 | 0 |
| 30.09.2024 NOK THOUSANDS | Related sums that are not presented net | |||
|---|---|---|---|---|
| Gross financial assets/ liabilites | Financial instruments | Security in cash | Net recognised value | |
| ASSETS | ||||
| Financial derivatives | 119 741 | -23 170 | 0 | 96 571 |
| Total | 119 741 | -23 170 | 0 | 96 571 |
| LIABILITIES | ||||
| Financial derivatives | 23 170 | -23 170 | 0 | 0 |
| Total | 23 170 | -23 170 | 0 | 0 |
| 31.12.2024 NOK THOUSANDS | Related sums that are not presented net | |||
|---|---|---|---|---|
| Gross financial assets/ liabilites | Financial instruments | Security in cash | Net recognised value | |
| ASSETS | ||||
| Financial derivatives | 83 757 | -38 057 | 0 | 45 699 |
| Total | 83 757 | -38 057 | 0 | 45 699 |
| LIABILITIES | ||||
| Financial derivatives | 38 057 | -38 057 | 0 | 0 |
| Total | 38 057 | -38 057 | 0 | 0 |
| The purpose of the note is to show the potential effect of netting agreements at the KLP Kommunekreditt AS. The note shows derivative positions in the financial statement. | ||||
Note 11 Transactions with related parties
| TUSEN KRONER | 30.09.2025 | 30.09.2024 | 31.12.2024 |
|---|---|---|---|
| Interest incomes | 7 724 | 7 819 | 10 499 |
| Interest expenses | -59 241 | -25 174 | -33 323 |
| Purchase of services | -9 949 | -9 599 | -12 991 |
| Other receivables | 7 042 | 7 879 | 1 571 |
| Bank deposits | 232 100 | 221 696 | 224 376 |
| Borrowing | -1 653 271 | -551 105 | -951 824 |
| Other debt | -1 161 | -984 | -1 134 |
All transactions are against KLP Banken AS.
There are no direct salary cost in KLP Kommunekreditt AS. Personnel costs (administrative services) are allocated from KLP Banken AS.
Transactions with related parties are carried out on general market terms, with the exception of the Company's share of common functions, which is allocated at cost. Allocation is based on actual use. All internal receivables are settled as they arise.
Note 12 Other assets
| NOK THOUSANDS | 30.09.2025 | 30.09.2024 | 31.12.2024 |
|---|---|---|---|
| Intercompany receivables | 7 042 | 7 879 | 1 571 |
| Prepaid expenses | 634 | 790 | 0 |
| Miscellaneous receivables | 24 736 | 0 | 454 |
| Total other assets | 32 412 | 8 669 | 2 025 |
Note 13 Other liabilities and provision for accrued costs
| NOK THOUSANDS | 30.09.2025 | 30.09.2024 | 31.12.2024 |
|---|---|---|---|
| Creditors | 113 | -32 | 113 |
| Intercompany payables | 1 161 | 984 | 1 134 |
| Short-term balances with credit institutions | 94 100 | 98 896 | 46 513 |
| Other liabilities | 20 426 | 69 739 | 4 960 |
| Total other liabilities | 115 800 | 169 586 | 52 720 |
| VAT | 476 | 418 | 0 |
| Total accrued costs and liabilities | 476 | 418 | 0 |
Note 14 Capital adequacy
| NOK THOUSANDS | 30.09.2025 | 30.09.2024 | 31.12.2024 |
|---|---|---|---|
| Share capital and share premium fund | 755 000 | 755 000 | 755 000 |
| Other owners' equity | 256 917 | 194 284 | 274 237 |
| Total owners' equity | 1 011 917 | 949 284 | 1 029 237 |
| Adjustments due to requirements for proper valuation | -942 | -4 089 | -3 587 |
| Core capital/Tier 1 capital | 1 010 975 | 945 196 | 1 025 650 |
| 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) | 1 010 975 | 945 196 | 1 025 650 |
| Capital requirement | 368 732 | 352 977 | 362 060 |
| Surplus of own funds (Tier 1 and Tier 2 capital) | 642 243 | 592 219 | 663 590 |
| ESTIMATE BASIS CREDIT RISK: | |||
| Institutions | 172 957 | 153 409 | 148 935 |
| Local and regional authorities | 4 154 937 | 3 761 897 | 3 890 649 |
| Covered bonds | 71 191 | 318 580 | 272 571 |
| Other items | 25 370 | 790 | 454 |
| Calculation basis credit risk | 4 424 455 | 4 234 675 | 4 312 609 |
| Credit risk | 353 956 | 338 774 | 345 009 |
| Operating risk | 14 132 | 12 335 | 15 314 |
| Credit valuation adjustment (CVA) | 644 | 1 868 | 1 737 |
| Total capital requirement assets | 368 732 | 352 977 | 362 060 |
| Core capital adequacy ratio | 21.9 % | 21.4 % | 22.7 % |
| Supplementary capital ratio | 0.0 % | 0.0 % | 0.0 % |
| Capital adequacy ratio | 21.9 % | 21.4 % | 22.7 % |
| Leverage ratio | 4.5 % | 4.1 % | 4.5 % |
| CAPITAL REQUIREMENT PER 30.09.2025 | Core capital/ Tier 1 capital | Supplementary capital/Tier 2 capital | Own funds |
|---|---|---|---|
| Minimum requirement excl. buffers | 4.5 % | 3.5 % | 8.0 % |
| Protective buffer | 2.5 % | 0.0 % | 2.5 % |
| Systemic risk buffer | 4.5 % | 0.0 % | 4.5 % |
| Counter-cyclical capital buffer | 2.5 % | 0.0 % | 2.5 % |
| Current capital requirement incl. buffers | 14.0 % | 3.5 % | 17.5 % |
| Capital requirement leverage ratio | 3.0 % | 0.0 % | 3.0 % |
Note 15 Fixed-income securities
| NOK THOUSANDS | 30.09.2025 | 30.09.2024 | 31.12.2024 | |||
|---|---|---|---|---|---|---|
| Acquisition cost | Market value | Acquisition cost | Market value | Acquisition cost | Market value | |
| Certificates | 128 755 | 128 969 | 98 933 | 99 089 | 98 925 | 99 103 |
| Bonds | 807 317 | 812 873 | 3 970 968 | 3 989 415 | 3 471 466 | 3 488 353 |
| Total fixed-income securities | 936 072 | 941 842 | 4 069 901 | 4 088 504 | 3 570 391 | 3 587 455 |
| Fixed income securities are brought to account at market value, including accrued but not due interests. | ||||||
Note 16 Contingent liabilites
| NOK THOUSANDS | 30.09.2025 | 30.09.2024 | 31.12.2024 |
|---|---|---|---|
| Loan commitment | 77 773 | 0 | 5 242 |
| Total contingent liabilities | 77 773 | 0 | 5 242 |
Note 17 Net gain/(loss) on financial instruments
| NOK THOUSANDS | Q3 2025 | Q3 2024 | 01.01.2025 -30.09.2025 | 01.01.2024 -30.09.2024 | 01.01.2024 -31.12.2024 |
|---|---|---|---|---|---|
| Net gain/(loss) on fixed-income securities | 1 570 | 923 | 7 602 | 6 329 | -258 |
| Net gain/(loss) financial derivatives and realized amortization linked to lending | 0 | 0 | 0 | -189 | -189 |
| Net gain/(loss) financial derivatives and realized repurchase of own debt | 0 | -2 386 | -146 | -9 790 | -10 001 |
| Total net gain/(loss) on financial instruments | 1 570 | -1 463 | 7 456 | -3 650 | -10 448 |
Note 18 Loan loss provision
Changes in provisions for expected losses in third quarter of 2025 are related to changes in lending volume. No other changes have been made to the assumptions or input to the model for calculating loss provisions in the third quarter of 2025.
Refer to Note 8 and Note 2 in the annual report for more details of the model.
Expected credit loss (ECL) - loans to customers - public lending
| NOK THOUSANDS | 12 months ECL | Lifetime ECL (not credit impaired) | Lifetime ECL (credit impaired) | 30.09.2025 | 30.09.2024 | 31.12.2024 |
|---|---|---|---|---|---|---|
| stage 1 | stage 2 | stage 3 | Total stage 1-3 | Total stage 1-3 | Total stage 1-3 | |
| Opening balance ECL 01.01. | 177 | 0 | 0 | 177 | 180 | 180 |
| Transfers to stage 1 | 0 | 0 | 0 | 0 | 0 | 0 |
| Transfers to stage 2 | 0 | 0 | 0 | 0 | 0 | 0 |
| Transfers to stage 3 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net changes | -6 | 0 | 0 | -6 | -6 | -11 |
| New losses | 38 | 0 | 0 | 38 | 8 | 24 |
| Write-offs | -14 | 0 | 0 | -14 | -11 | -16 |
| Closing balance ECL | 196 | 0 | 0 | 196 | 170 | 177 |
| Changes in the period 01.01-30.09./31.12. | 18 | 0 | 0 | 18 | -10 | -3 |
Book value of loans and receivables for customers - public lending
| NOK THOUSANDS | 12 months ECL | Lifetime ECL (not credit impaired) | Lifetime ECL (credit impaired) | 30.09.2025 | 30.09.2024 | 31.12.2024 |
|---|---|---|---|---|---|---|
| stage 1 | stage 2 | stage 3 | Total stage 1-3 | Total stage 1-3 | Total stage 1-3 | |
| Lending 01.01. | 18 770 141 | 0 | 0 | 18 770 141 | 19 087 959 | 19 087 958 |
| Transfers to stage 1 | 0 | 0 | 0 | 0 | 0 | 0 |
| Transfers to stage 2 | 0 | 0 | 0 | 0 | 0 | 0 |
| Transfers to stage 3 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net changes | -625 525 | 0 | 0 | -625 525 | -626 122 | -1 167 223 |
| New lending | 4 075 731 | 0 | 0 | 4 075 731 | 831 534 | 2 529 768 |
| Write-offs | -1 527 127 | 0 | 0 | -1 527 127 | -1 218 760 | -1 680 362 |
| Lending | 20 693 220 | 0 | 0 | 20 693 220 | 18 074 611 | 18 770 141 |
| Fair value hedging | -58 189 | 0 | 0 | -58 189 | -68 577 | -81 984 |
| Recognised loan loss provisions | -195 | 0 | 0 | -195 | -170 | -177 |
| Book value of loans to public lending | 20 634 836 | 0 | 0 | 20 634 836 | 18 005 864 | 18 687 981 |
Quarterly earnings trend
| NOK MILLIONS | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|---|
| Interest income | 316.5 | 327.8 | 328.4 | 333.7 | 309.8 |
| Interest expense | -287.4 | -305.2 | -302.6 | -307.8 | -283.9 |
| Net interest income | 29.1 | 22.6 | 25.8 | 25.8 | 25.8 |
| Net gain/(loss) financial instruments | 1.6 | 2.7 | 3.2 | -6.8 | -1.5 |
| Total net gain/(loss) on financial instruments | 1.6 | 2.7 | 3.2 | -6.8 | -1.5 |
| Other operating expenses | -6.6 | -4.2 | -4.8 | -5.6 | -6.1 |
| Total operating expenses | -6.6 | -4.2 | -4.8 | -5.6 | -6.1 |
| Operating profit/loss before tax | 24.1 | 21.0 | 24.2 | 13.5 | 18.2 |
| Tax ordinary income | -1.0 | -0.3 | -1.0 | 2.0 | 1.0 |
| Profit for the period | 23.1 | 20.7 | 23.2 | 15.5 | 19.2 |
Key figures - accumulated
| NOK MILLIONS | Q3 2025 | Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 |
|---|---|---|---|---|---|
| Pre-tax income | 69.2 | 45.2 | 24.2 | 77.0 | 63.5 |
| Net interest income | 77.5 | 48.4 | 25.8 | 108.6 | 82.7 |
| Other operating income | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Other operating cost | -15.7 | -9.1 | -4.8 | -21.2 | -15.6 |
| Net gain/(loss) financial instruments | 7.5 | 5.9 | 3.2 | -10.4 | -3.7 |
| Lending with public sector guarantee | 20 634.8 | 19 750.6 | 19 419.2 | 18 688.0 | 18 005.9 |
| Non-performing loans | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
| Total liabilities created on issuance of securities | 19 667.5 | 19 124.0 | 20 985.7 | 20 976.5 | 21 183.7 |
| Other borrowing | 1 653.3 | 2 054.0 | 1 552.9 | 951.8 | 551.1 |
| Total assets | 22 537.3 | 22 345.9 | 23 668.9 | 23 067.0 | 22 943.5 |
| Average total assets | 22 802.1 | 22 706.4 | 23 368.0 | 22 127.6 | 22 065.9 |
| Equity | 1 078.9 | 1055.8 | 1035.1 | 1029.2 | 1013.8 |
| Interest net | 0.34 % | 0.21 % | 0.11 % | 0.49 % | 0.37 % |
| Profit/loss from ordinary operation before taxes | 0.30 % | 0.20 % | 0.10 % | 0.35 % | 0.29 % |
| Return on equity | 8.97 % | 8.78 % | 9.39 % | 7.94 % | 8.74 % |
| Capital adequacy ratio | 21.9 % | 22.2 % | 21.6 % | 22.7 % | 21.4 % |
| Liquidity coverage ratio (LCR) | 873 % | 747 % | 368 % | 1 113 % | 860 % |
Contact information
KLP KOMMUNEKREDITT AS
Beddingen 8, 7042 Trondheim
Organization no.: 994 526 944
VISITOR ADDRESS
Trondheim: Beddingen 8
Oslo: Dronning Eufemias gate 10
Phone number: +47 55 54 85 00

