A larger share of the market and profitable growth
KBN’s lending grew by NOK 26 billion in 2023, and KBN increased its market share to 51.1%.
For comparison, KBN’s market share at the end of 2022 was 49.7%. KBN’s green lending grew by NOK 11 billion in 2023 as compared to an increase of NOK 8 billion in 2022. Green lending represented 15.4% of KBN’s total lending at the end of 2023. KBN’s net interest income increased from NOK 1,866 million in 2022 to NOK 2,105 million in 2023. Good growth in profitable lending products together with higher interest rates helped KBN achieve higher earnings in 2023.
Results for the 4th quarter
KBN’s core earnings(1) totalled NOK 273 million in the fourth quarter of 2023, compared to NOK 242 million in the fourth quarter of 2022. An increase in net interest income resulting from higher interest rates was the main reason for the strong increase in core earnings. KBN’s net interest income totalled NOK 534 million in the fourth quarter of 2023, as compared to NOK 479 million in the corresponding period of 2022.
KBN’s result for the accounting period in the fourth quarter of 2023 was a profit of NOK 566 million, compared to a profit of NOK 224 million in the same period in 2022. In the fourth quarter of 2023, KBN recognised a net gain on financial instruments totalling NOK 338 million, as compared to a net loss of NOK 64 million in the fourth quarter of 2022.
- In 2023, we have increased our market share, increased interest income and had good growth in green lending. Now that the figures from the 4th quarter are clear, we can state that 2023 was a very positive year for KBN, says CEO Jannicke Trumpy Granquist.
Lending
KBN’s lending portfolio totalled NOK 354 billion at the end of 2023. The lending portfolio increased by NOK 12.9 billion in the fourth quarter of 2023, while it increased by NOK 5.8 billion in the same period in 2022. The relatively unattractive terms available to KBN’s customers in the capital markets continued to create better market conditions for KBN’s long-term instalment-based loans in the fourth quarter.
KBN continued to experience a good level of growth in its green lending, and its portfolio of green loans increased by NOK 6.2 billion in the fourth quarter of 2023, as compared to NOK 2.3 billion in the same period in 2022. KBN's green lending in the fourth quarter of 2023 included two sizeable green loans to the City of Oslo as financing for new environmentally friendly nursing homes and schools. At the end of 2023, KBN’s green lending represented 15.4% of its overall lending portfolio. KBN’s target was for 15% of its lending to be green lending by the end 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.
