Increased interest income and growth in green lending

13 Mar 2025 18:31 CET

KBN’s core earnings (1) were NOK 1,276 million in 2024, as compared to NOK 1,211
million in 2023.

Result for the year
Net interest income was NOK 2,253 million as compared to NOK 2,105 million in
2023. Money market interest rates were higher in 2024 than in 2023, which is the
main reason for the increase.

– KBN saw a good level of demand in 2024 for long-term instalment loans. The
demand was particularly driven by the largest municipalities and county
authorities, which had the highest lending growth. KBN’s portfolio of green
lending for investment in climate and environmentally friendly projects
increased by 25.0% in 2024, equivalent to NOK 13 billion, says CEO of KBN,
Jannicke Trumpy Granquist.

KBN’s result for the period for 2024 as a whole was a profit of NOK 1,474
million as compared to a profit of NOK 1,432 million in 2023.

KBN’s total assets at 31 December amounted to NOK 568 billion, compared to NOK
522 billion at the end of 2023. The increase was largely due to the weakness of
the Norwegian krone and to lending growth.

Lending
KBN saw a good level of demand in 2024 for long-term instalment loans. There was
also good demand for fixed rate loans, and this is thought to reflect the
favourable market conditions for this type of loan from time to time in 2024. As
in previous years the main areas of investment for which loan financing was used
were schools, health and care, and water and wastewater.

At 31 December 2024, KBN’s market share, based on its aggregate customer
financing and after adjusting for loans from the Norwegian State Housing Bank,
was 50.2% (2), a decrease from 51.1% at the close of 2023. The decrease was
partially due to a high rate of debt growth in the sector, but also the strong
level of competition for new loans from time to time in 2024.

KBN’s total portfolio of green lending for investment in climate and
environmentally friendly projects increased by 25.0% in 2024, equivalent to NOK
13 billion for 72 projects. At the end of 2024, 152 municipalities, seven county
authorities and a total of 84 other customers had green loans from KBN, and
outstanding green lending totalled NOK 68 billion (3). The environmental impact
of these loans is reported annually in KBN’s separate Impact Report.

Funding
KBN’s AAA/Aaa credit ratings ensure it has stable access to funding on
favourable terms, which benefits the local government sector. KBN pursues a
diversified funding strategy that ensures it has a broad investor base and low
refinancing risk.

New long-term borrowings amounted to NOK 92 billion in 2024, as compared to NOK
77 billion in 2023. KBN enjoyed good access to funding from the capital markets
throughout 2024. Europe, the USA and Asia are KBN’s most important markets for
funding. KBN issued bonds in 8 currencies in both 2024 and 2023.

Allocation of surplus
The Board of Directors of KBN proposes the following allocation of the surplus
for the 2024 accounting year: NOK 700 million to be paid in dividend to the
owner, NOK 162 million to be paid in interest to Additional Tier 1 capital
holders, and NOK 612 million to be transferred to other equity. Dividends are
decided by the Annual General Meeting.

1: Profit after tax adjusted for net unrealised gain/(loss) on financial
instruments (in accordance with note 3) adjusted for estimated tax at 25% tax
rate, and adjusted for portion allocated to owners of additional Tier 1 capital.
This result measure is included to give relevant information about the company's
underlying operations.

2: KBN’s market share based on total customer financing of sector code 6500
divided by total lending to the same sector, based on Statistics Norway's K2
reporting. Lending from Husbanken is not included as KBN does not compete for
these loans.

3: Principal amount

KBN's publications: https://www.kbn.com/en/about-us/publications/

Contact information
Harald Jacobsen
Head of Communications and Sustainability
Phone: 995 38 005
Email: haj@kbn.com

More information:
Access the news on Oslo Bors NewsWeb site

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