Q4 Interim report 2023

KLP Boligkreditt ASQ4 2023

Interim Financial Statements 4/2023

Main features by fourth quarter end:

Increased net interest income
Lower costs
Stable loan volume

Objective

The Company's purpose is to finance KLP Banken’s mortgage lending at preferable terms, mainly through the issuance of covered bonds.

KLP Boligkreditt AS is a wholly owned subsidiary of KLP Banken AS. The KLP Banken Group is owned by Kommunal Landspensjonskasse gjensidig forsikringsselskap (KLP).

Income statement

Pre-tax profit at the end of the fourth quarter was NOK 14.9 (-2.3) million. The change in profit is mainly due to increased net interest income, reduced net result effect of financial instruments, and lower operating costs.

Net interest income per fourth quarter was NOK 80.8 (74.0) million. The change is mainly related to higher interest rates and slightly higher average lending margins.

Net result effects of changes in market values of financial instruments at the end of the quarter were NOK -3.7 (-10.5) million. This is mainly due to changes in the value of liquid investments and restructuring of the company’s borrowing. Realized and unrealized changes in the value of the liquidity portfolio have had a result effect of NOK 0.2 (-4.6) million.

Restructuring of the borrowing portfolio is done regularly to adjust the average maturity. This can result in both profit and loss. Accounting losses resulting from repurchase of own debt amounted to a total of NOK -3.9 (-6.0) million in 2023.

Operating costs at the end of 2023 were NOK 62.2 (65.8) million. The company has not had any realized losses on loans and has very low loss provisions.

Lending

The company’s loans to customers as of 31 December 2023 amounted to NOK 12.7 (12.3) billion. Loans were purchased from the parent company KLP Banken AS for NOK 4.5 (4.5) billion in 2023. The assets under management were NOK 13.7 (14.1) billion.

Liquid investments

KLP Boligkreditt AS has strict requirements for which assets can be included in the security mass. In addition to mortgages, the security mass consists of securities and deposits in other banks. The securities consist mainly of certificates and bonds with very good security, mainly covered bonds. As of December 31, 2023, the company’s interest-bearing securities had a market value of NOK 0.5 (1.4) billion.

Borrowing

The company’s external financing consists of issued covered bonds (OMF) and loans from KLP Banken AS. The company has NOK 1.7 (0.5) billion in intra-group debt at the end of the quarter. Outstanding OMF debt was NOK 11.1 (12.6) billion. Covered bonds for NOK 1.0 (2.5) billion were issued in 2023. All covered bonds issued have achieved an Aaa rating from Moody’s.

Risk and capital adequacy

KLP Boligkreditt AS has established a risk management framework aimed at ensuring that risks are identified, analyzed, and managed using guidelines, limits, routines, and instructions. The company should have a cautious risk profile, and earnings should primarily be a result of lending and borrowing activities and 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 should have sufficient long-term financing within established frameworks. The credit risk in the company is very low, and loans are limited to those with collateral in housing. The company’s liquidity is placed in banks with high credit quality requirements and in securities in accordance with board-approved credit lines.

Core capital according to capital adequacy regulations at the end of the fourth quarter of 2023 was NOK 931.2 (918.7) million. Loans for residential purposes are risk-weighted at 35 percent according to government regulations for capital adequacy. KLP Boligkreditt AS has a core capital adequacy and capital adequacy of 18.7 (19.7) percent per fourth quarter. The minimum requirement for total capital adequacy is 17.5 percent. Leverage ratio was 6.8 (6.5) percent. The requirement here is 3.0 percent.

Income statementKLP Boligkreditt AS

NOTE	NOK THOUSANDS	Q4 2023	Q4 2022	01.01.2023 -31.12.2023	01.01.2022 -31.12.2022
	Interest income, effective interest method	171 788	114 071	591 812	313 325
	Other interest income	7 234	9 814	31 295	24 999
3	Total interest income	179 022	123 885	623 106	338 324
	Interest expense, effective interest method	-157 273	-105 162	-542 313	-264 306
3	Total interest expense	-157 273	-105 162	-542 313	-264 306
3	Net interest income	21 749	18 723	80 793	74 018
15	Net gain/(loss) on financial instruments	98	2 797	-3 733	-10 512
	Total net gain/(loss) on financial instruments	98	2 797	-3 733	-10 512
	Other operating expenses	-15 205	-14 107	-62 162	-65 811
16	Net loan losses	-16	-29	3	-40
	Total operating expenses	-15 222	-14 136	-62 159	-65 851
	Operating profit/loss before tax	6 626	7 383	14 901	-2 345
	Tax ordinary income	-1 458	-1 624	-3 278	3 723
	Profit for the period	5 168	5 759	11 623	1 379
	Other comprehensive income for the period	0	0	0	0
	Comprehensive income for the period	5 168	5 759	11 623	1 379

BalanceKLP Boligkreditt AS

NOTE	NOK THOUSANDS	31.12.2023	31.12.2022
	ASSETS
5	Loans to credit institutions	469 974	364 166
4,5	Loans to customers	12 745 448	12 282 503
5,6,14	Fixed-income securities	516 406	1 424 079
11	Other assets	4 296	16 723
	Total assets	13 736 124	14 087 471
	LIABILITIES AND OWNERS EQUITY
	LIABILITIES
5,9	Debt to credit institutions	1 686 316	524 456
5,7	Debt securities issued	11 105 128	12 634 091
	Deferred tax liabilities	7 537	4 259
12	Other liabilities	5 424	4 569
	Total liabilities	12 804 406	13 167 375
	EQUITY
	Share capital	380 000	380 000
	Share premium	480 463	480 463
	Other owners' equity	71 256	59 633
	Total owners' equity	931 719	920 096
	Total liabilities and equity	13 736 124	14 087 471

Statement of changes in equityKLP Boligkreditt AS

2023 NOK THOUSANDS	Share capital	Share premium	Other equity	Total owners' equity
Equity 1 January 2023	380 000	480 463	59 633	920 096
Income for the year	0	0	11 623	11 623
Other comprehensive income	0	0	0	0
Total comprehensive income for the period	0	0	11 623	11 623
Group contribution received	0	0	0	0
Group contribution made	0	0	0	0
Total transactions with the owners	0	0	0	0
Equity 31 December 2023	380 000	480 463	71 256	931 719

2022 NOK THOUSANDS	Share capital	Share premium	Other equity	Total owners' equity
Equity 1 January 2022	330 000	380 463	61 462	771 925
Income for the year	0	0	1 379	1 379
Other comprehensive income	0	0	0	0
Total comprehensive income for the period	0	0	1 379	1 379
Group contribution received	0	0	11 372	11 372
Group contribution made	0	0	-14 579	-14 579
Paid-up equity in the period	50 000	100 000	0	150 000
Total transactions with the owners	50 000	100 000	-3 207	146 793
Equity 31 December 2022	380 000	480 463	59 633	920 096

Statement of cash flowKLP Boligkreditt AS

NOK THOUSANDS	01.01.2023 -31.12.2023	01.01.2022 -31.12.2022
OPERATING ACTIVITIES
Payments received from customers - interest, commission & charges	567 810	294 362
Disbursements on loans customers & credit institutions	-4 538 968	-4 485 153
Receipts on loans customers & credit institutions	4 098 045	4 533 887
Disbursements on operations	-61 722	-67 210
Net receipts/disbursements from operating activities	1 547	-3 593
Net interest investment accounts	14 873	7 537
Net cash flow from operating activities	81 586	279 829
INVESTMENT ACTIVITIES
Payments on the purchase of securities	-219 829	-684 123
Receipts on sale of securities	1 125 861	962 786
Receipts of interest from securities	33 063	21 759
Net cash flow from investment activities	939 094	300 421
FINANCING ACTIVITIES
Receipts on loans from credit institutions	1 000 000	2 500 000
Repayment and redemption of loans	-2 000 000	-2 500 000
Change in securities debt, own funds	-548 349	171 215
Net payment of interest on loans	-500 708	-233 841
Receipts in internal funding	6 783 028	4 980 740
Repayment in internal funding	-5 623 737	-5 551 012
Net payment of interest on internal funding	-23 558	-6 890
Change in owners' equity	0	150 000
Group contribution paid	0	-3 207
Net cash flows from financing activities	-913 325	-492 996
Net cash flow during the period	107 355	87 255
Cash and cash equivalents at the start of the period	349 219	261 964
Cash and cash equivalents at the end of the period	456 573	349 219
Net receipts/disbursements	107 355	87 255

Notes to the accountsKLP Boligkreditt AS

Note 1 General information

KLP Boligkreditt AS was formed on 30 October 2013. The company is a housing credit enterprise, and finance the activity primary through issuing covered bonds (OMF).

KLP Boligkreditt AS is registered and domiciled in Norway. Its head office is at Beddingen 8 in Trondheim, with a branch office in Dronning Eufemiasgate 10, Oslo.

The company is a wholly owned subsidiary of KLP Banken AS which is in turn wholly owned by Kommunal Landspensjonskasse (KLP). KLP is a mutual insurance company.

Note 2 Accounting Principles

The interim report includes the interim Financial Statements of KLP Boligkreditt AS for the period 1 January 2023 – 31 December 2023, specifying the earnings trend in Q4. The interim Financial Statements has not been audited.

The interim financial statements for KLP Boligkreditt AS have been prepared in accordance with IAS 34 "Interim Financial Reporting".

Other accounting principles and calculations are the same in the interim financial statement as in the annual report for 2022, please see the annual report for further information.

Note 3 Net interest income

NOK THOUSANDS	Q4 2023	Q4 2022	01.01.2023 -31.12.2023	01.01.2022 -31.12.2022
Interest income on loans to customers	167 446	110 362	576 938	305 788
Interest income on loans to credit institutions	4 342	3 710	14 873	7 537
Total interest income, effective interest method	171 788	114 071	591 812	313 325
Interest income on bonds and certificates	7 234	9 814	31 295	24 999
Total other interest income	7 234	9 814	31 295	24 999
Total interest income	179 022	123 885	623 106	338 324
Interest expenses on debt from KLP Banken AS	-14 257	-1 966	-26 129	-7 039
Interest expenses on issued securities	-143 016	-103 196	-516 185	-257 267
Total interest expenses, effective interest method	-157 273	-105 162	-542 313	-264 306
Total interest expense	-157 273	-105 162	-542 313	-264 306
Net interest income	21 749	18 723	80 793	74 018

Note 4 Loans to customers

NOK THOUSANDS	31.12.2023	31.12.2022
Loans to customers before write-downs	12 717 235	12 263 421
Provisions and write-downs	-62	-65
Loans to customers after write-downs	12 717 173	12 263 355
Accrued interest	28 276	19 148
Loans to customers	12 745 448	12 282 503

Note 5 Categories of financial instruments

NOK THOUSANDS	31.12.2023		31.12.2022
	Capitalized value	Fair value	Capitalized value	Fair value
FINANCIAL ASSETS AT FAIR VALUE
Fixed-income securities	516 406	516 406	1 424 079	1 424 079
Total financial assets at fair value	516 406	516 406	1 424 079	1 424 079
FINANCIAL ASSETS AT AMORTIZED COST
Loans to and receivables from credit institutions	469 974	469 974	364 166	364 166
Loans to and receivables from customers	12 745 448	12 745 448	12 282 503	12 282 503
Total financial assets at amortized cost	13 215 422	13 215 422	12 646 669	12 646 669
Total financial assets	13 731 829	13 731 829	14 070 748	14 070 748
FINANCIAL LIABILITIES AT AMORTIZED COST
Liabilities to credit institutions	1 686 316	1 686 316	524 456	524 456
Covered bonds issued	11 105 128	11 102 781	12 634 091	12 611 328
Total financial liabilities at amortized cost	12 791 444	12 789 097	13 158 547	13 135 784
Total financial liabilities	12 791 444	12 789 097	13 158 547	13 135 784

Fair value shall be a representative price based on what a corresponding asset or liability would have been traded for on normal market terms and conditions. A financial instrument is considered to be listed in an active market if the listed price is simply and regularly available from a stock market, dealer, broker, industry grouping, price setting service or regulatory authority, and these prices represent actual and regularly occurring transactions at arm’s length. If the market for the security is not active, or the security is not listed on a stock market or similar, valuation techniques are used to set fair value. These are based for example on information on recently completed transactions carried out on business terms and conditions, reference to trading in similar instruments and pricing using externally collected yield curves and yield spread curves. As far as possible the estimates are based on externally observable market data and rarely on company-specific information.

The different financial instruments are thus priced in the following way:

Fixed-income securities - government

Nordic Bond pricing is used as a source for pricing Norwegian government bonds.

Fixed-income securities - other than government

Norwegian fixed-income securities are generally priced based on rates from Nordic Bond Pricing. Securities not covered by Nordic Bond Pricing are priced theoretically. The theoretical price should be based on the discounted value of the security's future cash flows. Discounting is done using a swap curve adjusted for credit spread and liquidity spread. The credit spread should, to the extent possible, be based on a comparable bond from the same issuer. Liquidity spread is determined at the discretion of the evaluator.

Fair value of loans to retail costumers

Fair value of lending without fixed interest rates is considered virtually the same as book value since the contract terms are continuosly changed in step with market interest rates. Fair value of fixed rate loans is calculated by discounting contractual cash flows by the marked rate including a relevant risk margin on the reporting date.

Fair value of loans to and receivables from credit institutions

All receivables from credit institutions (bank deposits) are at variable interest rates. Fair value of these is considered virtually the same as book value since the contract terms are continuously changed in step with marked interest rates.

Fair value of liabilities to credit institutions

These transactions are valued using a valuation model, including relevant credit spread adjustments obtained from the market.

Liabilities created on issuance of covered bonds

Fair value in this category is determined on the basis of internal valuation models based on external observable data.

Note 6 Fair value hierarchy

31.12.2023 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	19 815	496 592	0	516 406
Total assets at fair value	19 815	496 592	0	516 406

31.12.2022 NOK THOUSANDS	Level 1	Level 2	Level 3	Total
ASSETS BOOKED AT FAIR VALUE
Fixed-income securities	9 943	1 414 136	0	1 424 079
Total assets at fair value	9 943	1 414 136	0	1 424 079

Fair value shall be a representative price based on what a corresponding asset or liability would have been traded for at normal market terms and conditions. Highest quality in regard to fair value is based on listed prices in an active market. A financial instrument is considered as listed in an active market if listed prices are simply and regularly available from a stock market, dealer, broker, industry group, price-setting service or regulatory authority, and these prices represent actual and regularly occurring transactions at arm's length.

LEVEL 1: Instruments at this level obtain fair value from listed prices in an active market for identical assets or liabilities to which the entity has access at the reporting date. Examples of instruments in Level 1 are stock market listed securities.

LEVEL 2: Instruments at this level obtain fair value from observable market data. This includes prices based on identical instruments, but where the instrument does not maintain a high enough trading frequency and is not therefore considered to be traded in an active market, as well as prices based on corresponding assets and price-leading indicators that can be confirmed from market information. Example instruments at Level 2 are fixed-income securities priced on the basis of interest rate paths.

LEVEL 3: Instruments at Level 3 contain non-observable market data or are traded in markets considered to be inactive. The price is based generally on discrete calculations where the actual fair value may deviate if the instrument were to be traded.

Note 5 discloses the fair value of financial assets and financial liabilities that are recognized at amortized cost. Financial assets measured at amortized cost comprise lending to and due to credit institutions, and retail customers. The stated fair value of these assets is determined on terms qualifying for level 2. Financial liabilities recognized at amortized cost consist of debt securities issued. The stated fair value of these liabilities is determined by methods qualifying for level 2.

There have been no transfers between Level 1 and Level 2.

Note 7 Debt securities issued - stock exchange listed covered bonds and certificates

NOK THOUSANDS	31.12.2023	31.12.2022
Bond debt, nominal amount	12 000 000	13 000 000
Adjustments	-3 151	-2 926
Accured interest	54 278	37 018
Own holdings, nominal amount	-946 000	-400 000
Total debt securities issued	11 105 128	12 634 091
Interest rate on borrowings through the issuance of securities on the reporting date:	5.07%	3.61%

The interest rate is calculated as a weighted average of the act/360 basis. It includes interest rate effects and amortization costs.

NOK THOUSANDS	Balance sheet 31.12.2022	Issued	Matured/ redeemed	Other adjustments	Balance sheet 31.12.2023
Bond debt, nominal amount	13 000 000	1 000 000	-2 000 000	0	12 000 000
Adjustments	-2 926	0	0	-224	-3 151
Accured interest	37 018	0	0	17 261	54 278
Own holdings, nominal amount	-400 000	0	-546 000	0	-946 000
Total debt securities issued	12 634 091	1 000 000	-2 546 000	17 037	11 105 128

Note 8 Over-collateralisation

NOK THOUSANDS	31.12.2023	31.12.2022
SECURITY POOL
Loans to customers ¹	12 689 403	11 478 090
Additional collateral ²	1 833 583	2 159 749
Total security pool	14 522 986	13 637 839
Outstanding covered bonds incl. own funds and premium/discount	12 050 920	13 012 603
Coverage of the security pool	120.5%	104.8%
¹ Excluding mortgage loans that do not qualify for security pool.
² Additional collateral includes loans to and receivables from credit institutions and bonds and certificates. Liquid assets used in the LCR liquidity reserve are not included in additional collateral.

Section 11-7 of the Regulations on Financial Institutions lays down a requirement for over-collateralisation by at least 2 percent of the value of the outstanding covered bonds.

Note 9 Liabilities to credit institutions

The interest rate is calculated as a weighted average of the act/360 basis.
31.12.2023 NOK THOUSANDS
	Due date	Nominal	Accrued interest	Book value
Debt to KLP Banken AS	15.12.2025	1 537 488	2 817	1 540 306
Debt to KLP Banken AS	15.12.2025	145 838	173	146 011
Total liabilities to credit institutions		1 683 326	2 990	1 686 316
Interest rate on debt to credit institutions at the reporting date:				3.88 %

31.12.2022 NOK THOUSANDS
	Due date	Nominal	Accrued interest	Book value
Debt to KLP Banken AS	15.12.2024	494 036	401	494 437
Debt to KLP Banken AS	15.12.2024	30 000	19	30 019
Total liabilities to credit institutions		524 036	420	524 456
Interest rate on debt to credit institutions at the reporting date:				1.72 %

Note 10 Transactions with related parties

NOK THOUSANDS	01.01.2023 -31.12.2023	01.01.2022 -31.12.2022
KLP Banken AS, interest on borrowing	-26 129	-7 039
KLP Banken AS, interest on deposits	8 646	4 177
KLP Banken AS, administrative services (at cost)	-56 169	-60 693
KLP Kapitalforvaltning AS, fees for services provided	-20	-19
KLP Group companies, subsidised interest employee loans	9 988	8 408
KLP Banken AS, purchase of loans	-4 538 968	-4 485 153

NOK THOUSANDS	31.12.2023	31.12.2022
BALANCES
KLP Banken AS, borrowing Group current liabilities	-1 686 316	-524 456
KLP Banken AS, deposit	213 875	205 229
KLP Banken AS, net internal liabilities	1 778	14 697
Net outstanding accounts to:
KLP Banken AS	-5 316	-4 569
KLP	1 608	1 318
KLP Group companies, net other internal accounts	890	708

There are no direct salary cost in KLP Boligkreditt AS. Personnel costs (administrative services) are allocated from KLP Banken AS.

Transactions with related parties are carried out at general market terms, with the exception of the Company's share of common functions, which is allocated at cost. Allocation is based on actual use. All internal receivables are settled as they arise.

Note 11 Other assets

NOK THOUSANDS	31.12.2023	31.12.2022
Intercompany receivables	4 296	16 723
Total other assets	4 296	16 723

Note 12 Other liabilities and provision for accrued costs

NOK THOUSANDS	31.12.2023	31.12.2022
Creditors	88	0
Intercompany payables	5 336	4 569
Total other liabilities	5 424	4 569

Note 13 Capital adequacy

NOK THOUSANDS	31.12.2023	31.12.2022
Share capital and share premium fund	860 463	860 463
Other owners' equity	71 256	59 633
Total owners' equity	931 719	920 097
Adjustments due to requirements for proper valuation	-516	-1 424
Core capital/Tier 1 capital	931 203	918 672
Supplementary capital/Tier 2 capital	0	0
Supplementary capital/Tier 2 capital	0	0
Total eligible own funds (Tier 1 and Tier 2 capital)	931 203	918 672
Capital requirement	397 569	373 302
Surplus of own funds (Tier 1 and Tier 2 capital)	533 634	545 370
Estimate basis credit risk:
Institutions	94 672	76 036
Retail	401 637
Investments with mortgage security in real estate	4 273 476	4 298 876
Covered bonds	49 659	141 414
Other holdings	910	708
Calculation basis credit risk	4 820 354	4 517 034
Credit risk	385 628	361 363
Operating risk	11 940	11 940
Total capital requirement assets	397 569	373 302
Core capital adequacy ratio	18.7 %	19.7 %
Supplementary capital ratio	0.0 %	0.0 %
Capital adequacy ratio	18.7 %	19.7 %
Leverage ratio	6.8 %	6.5 %

CAPITAL REQUIREMENT PER 31.12.2023	Core capital/ Tier 1 capital	Supplementary capital/Tier 2 capital	Own funds
Minimum requirement excl. buffers	4.5 %	3.5 %	8.0 %
Protective buffer	2.5 %	0.0 %	2.5 %
Systemic risk buffer	4.5 %	0.0 %	4.5 %
Counter-cyclical capital buffer	2.5 %	0.0 %	2.5 %
Current capital requirement including buffers	14.0 %	3.5 %	17.5 %
Capital requirement leverage ratio	3.0 %	0.0 %	3.0 %

Note 14 Fixed-income securities

NOK THOUSANDS	31.12.2023		31.12.2022
	Acquisition cost	Market value	Acquisition cost	Market value
Certificates	0	0	9 937	9 943
Bonds	513 138	516 406	1 411 555	1 414 136
Total fixed-income securities	513 138	516 406	1 421 492	1 424 079

Fixed income securities are brought to account at market value, including accrued
but not due interests.

Note 15 Net gain/(loss) on financial instruments

NOK THOUSANDS	Q4 2023	Q4 2022	01.01.2023 -31.12.2023	01.01.2022 -31.12.2022
Net gain/(loss) on fixed-income securities	325	2 797	179	-4 554
Net gain/(loss) financial derivatives and realized repurchase of own debt	-227	0	-3 912	-5 958
Total net gain/(loss) financial instruments	98	2 797	-3 733	-10 512

Note 16 Loan loss provision

In the fourth quarter of 2023 the company has not made any adjustments in the expected loss models. There are only small changes in the loan loss provisions in this quarter compared to the previous.
Refer to Note 8 and Note 2 in the annual report for more details of the model.

NOK THOUSANDS	12-month ECL stage 1	Lifetime ECL not credit impaired stage 2	Lifetime ECL credit impaired stage 3	Total
EXPECTED CREDIT LOSS (ECL) - LOANS TO CUSTOMERS - MORTGAGE
Opening balance ECL 01.01.2023	25	41	0	66
Transfers to stage 1	1	-1	0	0
Transfers to stage 2	-1	1	0	0
Transfers to stage 3	0	0	0	0
Net changes	9	14	0	23
New losses	12	2	0	14
Write-offs	-4	-36	0	-41
Closing balance ECL 31.12.2023	41	22	0	63
Changes (01.01.2023-31.12.2023)	17	-20	0	-3

NOK THOUSANDS	12-month ECL stage 1	Lifetime ECL not credit impaired stage 2	Lifetime ECL credit impaired stage 3	Total
VALUE OF LENDING AND RECEIVABLES FOR CUSTOMERS RECOGNISED IN THE BALANCE SHEET - MORTGAGE
Lending 01.01.2023	12 033 405	249 164	0	12 282 569
Transfers to stage 1	53 977	-53 977	0	0
Transfers to stage 2	-178 111	178 111	0	0
Transfers to stage 3	0	0	0	0
Net changes	-423 514	-7 713	0	-431 227
New lending	3 764 783	30 388	0	3 795 171
Write-offs	-2 815 838	-85 164	0	-2 901 002
Lending 30.12.2023	12 434 702	310 809	0	12 745 511

Quarterly earnings trend

NOK MILLIONS	Q4 2023	Q3 2023	Q2 2023	Q1 2023	Q4 2022
Interest income	179.0	161.3	143.9	138.9	123.9
Interest expense	-157.3	-146.2	-124.0	-114.8	-105.2
Net interest income	21.7	15.2	19.8	24.1	18.7
Net gain/ (loss) on financial instruments	0.1	-0.8	-0.5	-2.6	2.8
Total net gain/(loss) on financial instruments	0.1	-0.8	-0.5	-2.6	2.8
Other operating expenses	-15.2	-16.4	-14.4	-16.1	-14.1
Total operating expenses	-15.2	-16.4	-14.4	-16.1	-14.1
Operating profit/loss before tax	6.6	-2.0	5.0	5.3	7.4
Tax ordinary income	-1.5	0.4	-1.1	-1.2	-1.6
Profit for the period	5.2	-1.6	3.9	4.2	5.8

Key figures accumulated

NOK MILLIONS	Q4 2023	Q3 2023	Q2 2023	Q1 2023	Q4 2022
Pre-tax income	14.9	8.3	10.3	5.3	-2.3
Net interest income	80.8	59.0	43.9	24.1	74.0
Other operating expenses	-62.2	-46.9	-30.5	-16.1	-65.9
Net gain/ (loss) financial instruments	-3.7	-3.8	-3.1	-2.6	-10.5
Housing mortgage lending	12 745.4	12 627.9	12 597.5	12 810.5	12 282.5
Non-performing loans	0.0	0.0	0.0	0.0	0.0
Total liabilities created on issuance of securities	11 105.1	11 239.0	12 040.4	12 458.6	12 634.1
Other borrowing	1 686.3	1 568.8	619.5	449.9	524.5
Total assets	13 736.1	13 745.7	13 599.6	13 842.9	14 087.5
Average total assets	13 911.8	13 916.6	13 843.5	13 965.2	14 200.6
Equity	931.7	926.6	928.1	924.3	920.1
Interest net	0.58 %	0.42 %	0.32 %	0.17 %	0.52 %
Profit/loss from ordinary operation before taxes	0.11 %	0.06 %	0.07 %	0.04 %	-0.02 %
Return on equity	1.62 %	1.20 %	2.24 %	2.32 %	-0.30 %
Capital adequacy ratio	18.7 %	19.4 %	19.6 %	19.2 %	19.7 %
Liquidity coverange ratio (LCR)	697 %	753 %	1 004 %	239 %	483 %

Contact information

KLP BOLIGKREDITT AS

Beddingen 8, 7042 Trondheim

Organizational number.: 912 719 634

VISITING ADRESS

Trondheim: Beddingen 8

Oslo: Dronning Eufemias gate 10

https://www.klp.no/en

Phone number: +47 55 54 85 00

klpbanken@klp.no

Q4 Interim report 2023KLP Boligkreditt AS