Strong green growth in challenging times
KBN’s portfolio of green loans increased by NOK 6 billion in the first quarter of 2025, as compared to NOK 1 billion in the same period in 2024. At the end of the first quarter of 2025, KBN’s green lending represented 20% of its overall lending portfolio.
Result for the 1th quarter
KBN’s core earnings totalled NOK 292 million in the first quarter of 2025, compared to NOK 308 million in the first quarter of 2024.
Net interest income totaled NOK 552 million, compared to NOK 553 million in the same period in 2024. Money market interest rates decreased somewhat during the quarter despite Norges Bank keeping its key policy rate unchanged at its March meeting.
"We had a good quarter, both in terms of financial results and the development of our green loan portfolio," says CEO Jannicke Trumpy Granquist. "Our access to liquidity is good and we will continue to offer customers attractive financing for municipal and county investments across the country," Granquist says.
Good capital access despite turbulent markets
The change of President in the USA and the associated change in economic policy caused sizeable fluctuations in the fixed income and foreign exchange markets in the first quarter, and there is significantly more uncertainty than usual regarding future growth both nationally and internationally. The US dollar weakened against most currencies in the quarter, including the Norwegian krone. The Euro was relatively stable against the Norwegian krone in the first quarter. Credit spreads on local government and covered bonds decreased somewhat over the quarter.
KBN enjoyed good access to the international capital markets in the first quarter of 2025 and completed all its funding transactions as planned. In the first quarter of 2025, KBN’s new borrowings totalled approximately NOK 60 billion through 25 bond issues in six currencies, as compared to NOK 38 billion in the first quarter of 2024. KBN continues to enjoy low borrowing costs and good market access thanks to its AAA/Aaa rating.
New green milestone
KBN's aggregate customer financing increased by NOK 4 billion in the first quarter of 2025, as compared to an increase of NOK 3 billion in the first quarter of 2024. The main reason for the increase was the strong demand for new loans. KBN’s portfolio of green loans increased by NOK 6 billion in the first quarter of 2025, as compared to NOK 1 billion in the same period in 2024. KBN's green lending in the first quarter of 2025 included green loans for the municipalities of Trondheim, Oslo and Asker. At the end of the first quarter of 2025, KBN’s green lending represented 20% of its overall lending portfolio.
