Stable income and interest compensation deliver a solid result for KBN in 2025
KBN’s core earnings (1) were NOK 1,381 million in 2025, as compared to NOK 1,276 million in 2024.
Result for the year
Net interest income was NOK 2,466 million in 2025, as compared to NOK 2,253 million in 2024. In 2025 KBN’s net interest income was positively affected by the interest compensation KBN received in connection with its tax appeal. After adjusting for this, KBN’s net interest income was NOK 24 million higher in 2025 than in 2024.
The result for the year was a profit of NOK 1,894 million, as compared to a profit of NOK 1,474 million in 2024.
- KBN saw a weak level of demand in 2025 for long-term loans with instalment payments, primarily due to the attractive terms available to municipalities when raising their own financing in the capital markets. At the same time, we have had stable income throughout the year. With interest compensation of NOK 189 million related to the outcome of a tax appeal, we ended 2025 with a very strong result, says CEO of KBN, Jannicke Trumpy Granquist.
On 18 December 2025 the Norwegian Tax Appeals Committee found in KBN’s favour in respect of a tax appeal relating to financial instruments for the fiscal years 2014-2021. As a result of this, KBN has received a refund of tax it previously paid totalling NOK 1 billion together with interest compensation.
Lending
KBN’s aggregate customer financing2 increased by NOK 9 billion in 2025, equivalent to 2.4%. The rate of growth in normal local government sector borrowing was 6.3% in 2025 compared to 8.5% in 2024.
As in previous years the main areas of investment for which loan financing was used were schools, health and care, and water and wastewater.
KBN’s total portfolio of green lending for investment in climate and environmentally friendly projects increased in 2025 by NOK 10 billion, distributed across 41 projects. At the end of 2025, 163 municipalities, 8 county authorities and a total of 69 other customers had green loans from KBN, and outstanding green lending totalled NOK 79 billion. The environmental impact of these loans is reported annually in KBN’s separate Impact Report.
Funding
KBN’s AAA/Aaa credit ratings ensure it has stable access to funding on favourable terms, which benefits the local government sector.
New long-term borrowings amounted to NOK 128 billion in 2025, as compared to NOK 92 billion in 2024. KBN enjoyed good access to funding from the capital markets throughout 2025. Europe, the USA and Asia are KBN’s most important markets for funding. KBN issued bonds in 9 currencies in 2025, as compared to 8 currencies in 2024.
Allocation of surplus
The Board of Directors of KBN proposes a dividend of NOK 760 million to the owner for the accounting year 2025. Dividends are decided by the Annual General Meeting.
1 Profit after tax adjusted for net unrealised gain/(loss) on financial instruments (in accordance with note 3) 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 Aggregate customer financing is the sum of KBN’s lending portfolio and KBN’s portfolio of municipal bonds in the liquidity portfolio, which is included as a part of KBN’s financing of customers.
