KBN / Profitable green growth

KBN’s portfolio of green loans increased by NOK 6.1 billion in the fourth quarter of 2024. At the end of the quarter, KBN’s green lending represented 18.5% of its overall lending portfolio.

Result for the 4th quarter

KBN’s core earnings (1) totalled NOK 293 million in the fourth quarter of 2024, compared to NOK 273 million in the fourth quarter of 2023.

KBN’s net interest income totalled NOK 554 million in the fourth quarter of 2024, as compared to NOK 534 million in the corresponding period of 2023.

Result for 2024

KBN’s core earnings (1) for 2024 as a whole totalled NOK 1,276 million, compared to NOK 1,211 million for 2023. KBN’s net interest income in 2024 as a whole was NOK 2,253 million, as compared to NOK 2,105 million in 2023.

- In 2024, KBN has experienced higher interest income each quarter compared to the corresponding periods in 2023. Besides lending growth, the increase was primarily due to the average level of interest rates being higher in 2024 than in 2023, says CEO Jannicke Trumpy Granquist.

Lending

KBN’s lending portfolio totalled NOK 370 billion (2) at the end of the fourth quarter of 2024, while aggregate customer financing (3) totalled NOK 375 billion (2) at the end of the fourth quarter. KBN's aggregate customer financing increased by NOK 6.7 billion in the fourth quarter of 2024, as compared to an increase of NOK 12.9 billion in the fourth quarter of 2023.

The main reason for the increase in aggregate customer financing in the fourth quarter of 2024 was demand for new loans. The level of demand for new loans was somewhat weaker in the fourth quarter of 2024 compared with the same period in 2023, while there was also a higher level of competition.

KBN continued to experience a good level of growth in its green lending, and its portfolio of green loans increased by NOK 6.1 billion in the fourth quarter of 2024, as compared to NOK 6.2 billion in the same period in 2023.

Funding

KBN enjoyed good access to the international capital markets in the fourth quarter of 2024 and completed all its funding transactions as planned. In 2024 as a whole, KBN’s new borrowings totalled approximately NOK 92 billion through 38 bond issues in eight currencies, as compared to NOK 78 billion in 2023.

Dividend for 2024

The Board of Directors proposes a dividend for 2024 of NOK 700 million. This represents 47% of KBN’s profit for the period in 2024 and 55% of its core earnings.

See the full report for Q4 2024

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 its liquidity portfolio, which are included as part of customer financing.