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	31 December 2025	31 December 2024
Assets
Deposits with credit institutions	3	22 862	37 787
Loans to customers	3,4,5,6	373 655	367 495
Commercial paper and bonds	3,4,6,7,8	120 109	139 971
Hereof commercial paper and bonds lent	7	6 766	7 688
Financial derivatives	3,4	14 380	20 133
Deferred tax asset		771	1 954
Other assets		1 462	303
Total assets		533 239	567 644
Liabilities and equity
Due to credit institutions	3,4	4 554	17 539
Commercial paper issued	3,4,9	5 793	26 713
Debt securities issued	3,4,9	482 499	472 917
Financial derivatives	3,4	16 197	27 443
Other liabilities		175	177
Payable taxes		288	0
Pension commitments		(8)	11
Subordinated loan capital	3,4,9	787	769
Total liabilities		510 285	545 569
Share capital		3 895	3 895
Additional Tier 1 capital		3 484	3 484
Retained earnings		15 575	14 696
Total equity		22 954	22 075
Total liabilities and equity		533 239	567 644

Report for 4th quarter 2025

Statement of financial position