Extraordinary income from a tax appeal boosts the bank’s interest income
KBN’s net interest income totalled NOK 757 million in the fourth quarter of 2025, compared to NOK 554 million in the same period in 2024.
The Tax Appeals Committee issued its decision 18 December 2025 in KBN’s appeal concerning the tax treatment and timing of financial instruments for the fiscal years 2014-2021. The Committee ruled in favor of the Bank on the key questions relating to the classification of previously taxable income. As a result of the decision, KBN has received a refund of approximately NOK 1 billion in previously paid taxes, together with interest compensation.
– We are satisfied with the committee's decision in the appeal case. The decision contributes to increasing the Bank's Common Equity Tier 1 capital adequacy. In addition, the interest compensation has a positive impact on both quarterly and annual results, says CEO, Jannicke Trumpy Granquist.
In the fourth quarter of 2025, the bank recognised a total of NOK 189 million in interest compensation related to the tax appeal, which contributes positively to net interest income. Adjusted for this interest compensation, net interest income increased by NOK 14 million from the fourth quarter of 2024 to the fourth quarter of 2025.
KBN’s core earnings1 totalled NOK 477 million in the fourth quarter of 2025, compared to NOK 293 million in the same period in 2024.
Preliminary annual accounts for 2025
KBN’s core earnings1 for 2025 totalled NOK 1 381 million, compared to NOK 1 276 million in 2024. The interest compensation related to the tax appeal contributes positively to the bank’s core earnings. KBN’s net interest income in 2025 was NOK 2 466 million, as compared to NOK 2 253 million in 2024.
Lending
KBN’s lending portfolio totalled NOK 374 billion2 at the end of the fourth quarter of 2025, while aggregate customer financing3 totalled NOK 381 billion4 at the end of the fourth quarter of 2025. KBN's aggregate customer financing increased by NOK 1 billion in the fourth quarter of 2025, as compared to an increase of NOK 7 billion in the fourth quarter of 2024. The main reason for the reduction in growth in KBN’s aggregate customer financing was the favourable terms and low prices available to local government sector borrowers in the capital markets.
KBN’s portfolio of green loans increase by NOK 1 billion in the fourth quarter of 2025, as compared to NOK 6 billion in the same period in 2024. KBN's green lending in the fourth quarter of 2025 included green loans for the county of Nordland and the municipality of Oslo. At the end of the fourth quarter of 2025, KBN’s green lending represented 21.0 % of its overall lending portfolio.
Funding
KBN enjoyed good access to the international capital markets in 2025 and completed all its funding transactions as planned. KBN’s new borrowings in 2025 totalled approximately NOK 128 billion through 56 bond issues in 9 currencies, as compared to NOK 92 billion in 2024.
Dividend for 2025
The Board of Directors proposes a dividend for 2025 of NOK 760 million. This represents 40 % of KBN’s profit for the period in 2025 and 55 % of its core earnings.
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 the liquidity portfolio, which are included as a part of KBN’s financing of customers.
4 Principal amounts.
