Net interest income continues to increase in Q2
Growth in profitable lending products over the last twelve months together with higher interest rates contributed to this increase in KBN’s income.
Result for the 2nd quarter
KBN’s core earnings (1) totalled NOK 330 million in the second quarter of 2024, compared to NOK 360 million in the second quarter of 2023. KBN’s core earnings in the second quarter of 2023 were positively affected by a realised gain of NOK 101 million before tax resulting from KBN repurchasing subordinated debt capital.
KBN’s net interest income totalled NOK 550 million in the second quarter of 2024, as compared to NOK 507 million in the corresponding period of 2023. KBN’s result for the accounting period in the second quarter of 2024 was a profit of NOK 493 million, compared to a profit of NOK 280 million in the same period in 2023.
Results for the first six months of 2024
KBN’s core earnings (1) in the first six months of 2024 totalled NOK 638 million as compared to NOK 640 million in the first six months of 2023. KBN’s core earnings in the first six months of 2023 were positively affected by a realised gain of NOK 101 million before tax resulting from KBN repurchasing subordinated debt capital. KBN’s net interest income in the first six months of 2024 was NOK 1,104 million, compared to NOK 1,015 million in the same period in 2023.
Lending
KBN’s lending portfolio totalled NOK 358 billion (2) at the end of the second quarter of 2024.
- KBN’s total customer financing increased by NOK 3.1 billion in the second quarter of 2024, while it increased by NOK 5.5 billion in the same period in 2023. Strong competition and the improved terms available to KBN’s customers in the capital markets were the reasons for the more moderate growth in the second quarter of 2024 compared with the second quarter of 2023, says CEO Jannicke Trumpy Granquist.
KBN continued to experience a good level of growth in its green lending, and its portfolio of green loans increased by NOK 0.6 billion in the second quarter of 2024, as compared to NOK 1.2 billion in the same period in 2023. KBN's green lending in the second quarter of 2024 included green loans for a biogas project in Nedre Romerike and for a fjord-based heating project in Stad municipality.
Funding
KBN enjoyed good access to the international capital markets in the second quarter of 2024 and completed all its funding transactions as planned. In the first six months of 2024, KBN’s new borrowings totalled approximately NOK 62 billion through 22 bond issues in eight currencies, as compared to NOK 33 billion in the corresponding period of 2023.
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
