Report for 4th quarter 2025

Kommunalbanken AS

We finance the local communities of tomorrow

Extraordinary income related to a tax appeal boosts the bank’s net interest income 

Financial instruments measured at fair value

Credit exposure in commercial paper and bonds

Debt securities issued and commercial paper issued

Our total financing* of the sector is in excess of

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.

 Operating expenses as a percentage of sum Net interest income and Total other operating income adjusted for Net unrealised gain/(loss) on financial instruments (in accordance with note 2).

 Share of the Profit for the year allocated to shareholders as a percentage of average equity (annualized). Average equity is calculated based on monthly equity, not including Profit for the year, less dividends from the time the dividends are paid out, as well as addition or reduction of the company's share capital during the year.

 Core earnings as a percentage of average equity (annualized).

 Share of Profit for the year allocated to shareholders as a percentage of average assets (annualized). Average assets are calculated based on monthly assets.

 Principal amounts. 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.

 12-month lending growth based on aggregate loans to customers (principal amounts).

 12-month growth based on aggregate customer financing (principal amount).

 Aggregate green loans to customers in accordance with Green bond framework. In addition, the Bank holds small portfolio of green loans to customers that were granted prior to the introduction of the framework and are no longer financed by green bonds. Total aggregate green loans to customers are NOK 78.6 billion.

 Percentage of municipalities in KBN’s lending portfolio with green loans, based on total aggregate green loans to customers.

Liquidity coverage ratio (LCR) is a measure for the regulatory liquidity reserve. LCR is defined as liquid assets as a percentage of net payments in a given stress period of 30 days.

 KBN’s market share based on total loans to customers of sector code 6500 divided by total lending to the same sector, based on Statistics Norway's K2 reporting. Lending from Husbanken is not included as KBN does not compete for these loans.

 KBN’s market share based on total customer financing of sector code 6500 divided by total lending to the same sector, based on Statistics Norway's K2 reporting. Lending from Husbanken is not included as KBN does not compete for these loans.

 KBN’s climate accounting is based on the Greenhouse Gas Protocol Corporate Standard. Own emissions consist of calculations within scope 1 and scope 2 in this climate statement, as well as indirect emissions in scope 3 from waste management and travel activities.

See also the overview and description of alternative performance measures published on kbn.com

(Amounts in NOK 1 000 000)	Note	4th quarter 2025	2025	4th quarter 2024	2024
Interest income from assets measured at amortised cost		4 788	19 983	5 017	19 557
Interest income from assets measured at fair value		1 462	5 754	1 820	7 375
Total interest income		6 249	25 737	6 836	26 931
Interest expense		5 492	23 271	6 282	24 678
Net interest income	1	757	2 466	554	2 253
Fees and commission expenses		29	117	31	125
Net gain/(loss) on financial instruments	2	161	501	(62)	157
Increased/(reduced) provision for expected credit loss	6	(2)	4	(4)	(9)
Total other operating income		135	380	(89)	41
Salaries and administrative expenses		61	247	48	221
Depreciation of fixed and intangible assets		13	54	12	48
Other operating expenses		41	136	38	115
Total operating expenses		115	437	98	383
Profit before tax		777	2 409	367	1 911
Income tax		143	515	87	437
Profit for the period		634	1 894	280	1 474
Portion allocated to shareholder		595	1 733	239	1 312
Portion allocated to owners of additional Tier 1 capital		39	161	41	162

(Amounts in NOK 1 000 000)	Note	4th quarter 2025	2025	4th quarter 2024	2024
Profit for the period		634	1 894	280	1 474
Other comprehensive income
Items which will not be reclassified to profit or loss
Change in fair value of liabilities due to changes in own credit risk	9	(149)	(224)	(78)	(305)
Actuarial gain/(loss) on pension liability		19	19	11	11
Tax		32	51	17	73
Total other comprehensive income		(97)	(154)	(50)	(220)
Total comprehensive income for the period		536	1 740	230	1 254
Portion allocated to shareholder		498	1 579	189	1 091
Portion allocated to owners of additional Tier 1 capital		39	161	41	162

Report for 4th quarter 2025

Financial statement