Extraordinary income from a tax appeal boosts the bank’s interest income

12 Feb 2026 17:21 CET

KBN’s net interest income totalled NOK 757 million in the fourth quarter of
2025, compared to NOK 554 million in the same period in 2024.

The Tax Appeals Committee issued its decision 18 December 2025 in KBN’s appeal
concerning the tax treatment and timing of financial instruments for the fiscal
years 2014-2021. The Committee ruled in favor of the Bank on the key questions
relating to the classification of previously taxable income. As a result of the
decision, KBN has received a refund of approximately NOK 1 billion in previously
paid taxes, together with interest compensation.

– We are satisfied with the committee's decision in the appeal case. The
decision contributes to increasing the Bank's Common Equity Tier 1 capital
adequacy. In addition, the interest compensation has a positive impact on both
quarterly and annual results, says CEO, Jannicke Trumpy Granquist.

In the fourth quarter of 2025, the bank recognised a total of NOK 189 million in
interest compensation related to the tax appeal, which contributes positively to
net interest income. Adjusted for this interest compensation, net interest
income increased by NOK 14 million from the fourth quarter of 2024 to the fourth
quarter of 2025.

KBN’s core earnings (1) totalled NOK 477 million in the fourth quarter of 2025,
compared to NOK 293 million in the same period in 2024.

Preliminary annual accounts for 2025
KBN’s core earnings (1) for 2025 totalled NOK 1 381 million, compared to NOK 1
276 million in 2024. The interest compensation related to the tax appeal
contributes positively to the bank’s core earnings. KBN’s net interest income in
2025 was NOK 2 466 million, as compared to NOK 2 253 million in 2024.

Lending
KBN’s lending portfolio totalled NOK 374 billion (2) at the end of the fourth
quarter of 2025, while aggregate customer financing (3) totalled NOK 381
billion (4) at the end of the fourth quarter of 2025. KBN's aggregate customer
financing increased by NOK 1 billion in the fourth quarter of 2025, as compared
to an increase of NOK 7 billion in the fourth quarter of 2024. The main reason
for the reduction in growth in KBN’s aggregate customer financing was the
favourable terms and low prices available to local government sector borrowers
in the capital markets.

KBN’s portfolio of green loans increase by NOK 1 billion in the fourth quarter
of 2025, as compared to NOK 6 billion in the same period in 2024. KBN's green
lending in the fourth quarter of 2025 included green loans for the county of
Nordland and the municipality of Oslo. At the end of the fourth quarter of 2025,
KBN’s green lending represented 21.0 % of its overall lending portfolio.

Funding
KBN enjoyed good access to the international capital markets in 2025 and
completed all its funding transactions as planned. KBN’s new borrowings in 2025
totalled approximately NOK 128 billion through 56 bond issues in 9 currencies,
as compared to NOK 92 billion in 2024.

Dividend for 2025
The Board of Directors proposes a dividend for 2025 of NOK 760 million. This
represents 40 % of KBN’s profit for the period in 2025 and 55 % of its core
earnings.

1: Profit after tax adjusted for net unrealised gain/(loss) on financial
instruments (in accordance with note 2) 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: Principal amounts.
3: Aggregate customer financing is the sum of KBN’s lending portfolio and KBN’s
portfolio of municipal bonds in the liquidity portfolio, which are included as a
part of KBN’s financing of customers.
4: Principal amounts.

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

Contact information
Andrea Søfting
Chief Financial Officer (CFO)
Phone: +47 984 88 299
Email: anso@kbn.com

More information:
Access the news on Oslo Bors NewsWeb site

665723_KBN Quarterly report Q4 2025.xhtml
665723_KBN Quarterly report Q4 2025.pdf