Satisfactory results for 2019
KBN’s profit for the year was NOK 1,283 million in 2019 as compared to NOK 1,496 million in 2018. KBN’s lending grew by 2.5% in 2019. KBN’s lending for green projects continued to grow strongly in 2019, and was responsible for approximately half of its total lending growth.
“In terms of financial results, 2019 was a good year for KBN, as well as a year in which it enjoyed favourable borrowing costs and high demand for its products. KBN’s high market share, the strong growth in its lending for climate friendly projects and the highest ever level of customer satisfaction indicate that KBN is fulfilling its role in society successfully”, comments Kristine Falkgård, President and CEO of KBN.
Stable access despite turmoil
In a year in which the financial markets were characterised by political turmoil and trade wars, KBN enjoyed stable and good access to financing. Good market access is absolutely central to KBN’s ability to provide the local government sector with stable and low-cost financing. KBN’s role is to offer attractive and long-term debt financing irrespective of market conditions. KBN granted 628 new loans totalling NOK 53.8 billion in 2019. These loans financed investment in projects such as schools, health and care facilities, water and wastewater systems, and adaptations to climate change.
“We are finding that investors from across the world want to lend us money because they regard our lending to Norwegian municipalities as a safe investment. The level of interest in our green bonds, which finance green investments across Norway, is particularly high, and we are seeing ever more investors demand the information that we publish at the project level in our environmental impact report”, comments Kristine Falkgård.
Good earnings
KBN’s earnings were good in 2019 and in line with expectations. Net interest income for 2019 was NOK 1,875 million, approximately in line with 2018. KBN’s return on equity after tax for 2019 was 9.5%, and in 2019 its equity increased by NOK 979 million.
Significant environmental impact
KBN is publishing a separate environmental impact report alongside its annual report for 2019. The impact report presents the projects financed by KBN’s green bonds, as well as their calculated environmental impact. At the end of 2019 KBN’s outstanding green loans totalled just over NOK 23 billion across 225 local government sector projects. Their combined environmental impact in terms of the amount of CO2 saved or avoided was approximately 51,000 tonnes in 2019.