Strong third quarter results
- KBN's operations are moving ahead as expected with strong third quarter results. We are confident that we will meet the increased capital requirements as well as future demand for more traditional financing with longer maturities which is our core business, KBN’s CEO and President Kristine Falkgård states.
Profit for the third quarter 2015 was NOK 572 million, up from NOK 73 million in the same period last year. The increase in profit for the period is due to unrealised gains on financial instruments of NOK 439 million in the quarter against unrealised losses of NOK 260 million in the same period in 2014. This is mainly due to the increase in the credit spreads on KBN’s own bonds in line with increased volatility in financial markets in general.
The lending portfolio shows a reduction in the third quarter result due to lower demand for loans with longer maturity and a decrease in KBN's portfolio of short maturity loans.
- A satisfactory result, increased share capital and the issuance of a Tier 1 perpetual bond results in KBN’s equity increasing by approximately NOK 3 billion in 2015 enabling increased loan growth going forward, says Falkgård.
Funding activity in the third quarter of 2015 has been lower than usual owing to a satisfactory liquidity situation. In total bonds amounting to NOK 7.1 billion. KBN’s total primary capital at 30 September 2015 was NOK 12,511 million, and its total common equity Tier 1 capital was NOK 9,946 million. KBN achieved a return on equity of 16.5% in the first nine months.