KBN / Increasing net interest income and profitable growth

KBN’s lending grew by NOK 3 billion in the first quarter of 2024, with green lending accounting for NOK 1.5 billion of this growth. Green lending represented 15.7% of KBN’s total lending at the end of the quarter.

Results for the first quarter

KBN’s core earnings (1) totalled NOK 308 million in the first quarter of 2024, compared to NOK 280 million in the first quarter of 2023. Increased net interest income resulting from higher interest rates and profitable growth was the main reason for the increase in core earnings. KBN’s net interest income totalled NOK 553 million in the first quarter of 2024, as compared to NOK 508 million in the corresponding period of 2023. KBN’s result for the accounting period in the first quarter of 2024 was a profit of NOK 390 million, compared to a profit of NOK 389 million in the same period in 2023.

Lending

KBN’s lending portfolio totalled NOK 357 billion (2) at the end of the first quarter of 2024. The lending portfolio increased by NOK 3.0 billion in the first quarter of 2024, while it increased by NOK 1.6 billion in the same period in 2023. The relatively unattractive terms available to KBN’s customers in the capital markets continued to create better market conditions for KBN’s long-term instalment loans in the first quarter.

- We continue to experience a good level of growth in green lending. The portfolio of green loans increased by NOK 1.5 billion in the first quarter of 2024, as compared to NOK 1.3 billion in the same period in 2023. KBN's green lending in the first quarter of 2024 included green loans to the municipalities of Trondheim and Fredrikstad, says CEO Jannicke Trumpy Granquist.

At the end of the first quarter of 2024, KBN’s green lending represented 15.7% of its overall lending portfolio.

Funding

In the first quarter of 2024, KBN’s new borrowings totalled approximately NOK 38.2 billion through 15 bond issues in six currencies, as compared to NOK 24.5 billion in the first quarter of 2023.

KBN continues to enjoy low borrowing costs and good market access thanks to its AAA/Aaa rating.

1: Profit for the accounting period adjusted for net unrealised gain/(loss) on financial instruments (in accordance with note 2) after deducting estimated tax at the rate of 25% and the 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