Strong green growth in challenging times

08 May 2025 16:40 CEST

KBN’s core earnings totalled NOK 292 million in the first quarter of 2025,
compared to NOK 308 million in the first quarter of 2024.

Net interest income totaled NOK 552 million, compared to NOK 553 million in the
same period in 2024. Money market interest rates decreased somewhat during the
quarter despite Norges Bank keeping its key policy rate unchanged at its March
meeting.

"We had a good quarter, both in terms of financial results and the development
of our green loan portfolio," says CEO Jannicke Trumpy Granquist. "Our access to
liquidity is good and we will continue to offer customers attractive financing
for municipal and county investments across the country," Granquist says.


Good capital access despite turbulent markets

The change of President in the USA and the associated change in economic policy
caused sizeable fluctuations in the fixed income and foreign exchange markets in
the first quarter, and there is significantly more uncertainty than usual
regarding future growth both nationally and internationally. The US dollar
weakened against most currencies in the quarter, including the Norwegian krone.
The Euro was relatively stable against the Norwegian krone in the first quarter.
Credit spreads on local government and covered bonds decreased somewhat over the
quarter.

KBN enjoyed good access to the international capital markets in the first
quarter of 2025 and completed all its funding transactions as planned. In the
first quarter of 2025, KBN’s new borrowings totalled approximately NOK 60
billion through 25 bond issues in six currencies, as compared to NOK 38 billion
in the first quarter of 2024. KBN continues to enjoy low borrowing costs and
good market access thanks to its AAA/Aaa rating.


New green milestone

KBN's aggregate customer financing increased by NOK 4 billion in the first
quarter of 2025, as compared to an increase of NOK 3 billion in the first
quarter of 2024. The main reason for the increase was the strong demand for new
loans. KBN’s portfolio of green loans increased by NOK 6 billion in the first
quarter of 2025, as compared to NOK 1 billion in the same period in 2024. KBN's
green lending in the first quarter of 2025 included green loans for the
municipalities of Trondheim, Oslo and Asker. At the end of the first quarter of
2025, KBN’s green lending represented 20% of its overall lending portfolio.


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

Contact information

Harald Jacobsen
Head of Communications and Sustainability
Phone: +47 995 38 005
Email: haj@kbn.com

More information:
Access the news on Oslo Bors NewsWeb site

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