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)	2025	2024
Cash flows from operating activities
Interest received	25 913	26 751
Interest paid	(22 905)	(23 392)
Fees and commissions paid	(113)	(122)
Cash payments for operations	(383)	(336)
Paid taxes	0	0
Net disbursement of loans to customers	(4 143)	(15 805)
Net (payment)/disbursement short-term investments	1 680	10 686
Net payment/(disbursement) from purchase/sale of securities	15 157	(18 131)
Net (payment)/disbursement other assets	54	0
Net payment/(disbursement) other liabilities	(17)	(8)
Net (payment)/disbursement financial derivatives	(31 526)	32 142
Net cash flows from operating activities	(16 283)	11 784
Cash flows from investing activities
Disbursment from sale of fixed assets	(40)	(45)
Net cash flows from investing activities	(40)	(45)
Cash flows from financing activities
Payments on issued commercial paper	84 610	132 316
Repayment of commercial paper issued	(104 386)	(148 789)
Lease payments	(9)	(10)
Payments on issued debt securities	128 049	91 909
Repayment of debt securities issued	(91 065)	(86 499)
Interest Paid on additional Tier 1 capital	(161)	(162)
Dividends paid	(700)	(700)
Net cash flows from financing activities	16 337	(11 935)
Net cash flows	14	(196)
Adjusment of exchange rate changes	(4)	83
Net cash flows after effects of exchange rate changes	11	(113)
Cash and cash equivalents at 1 January	243	356
Net changes of cash and cash equivalents	11	(113)
Cash and cash equivalents at end of period	253	243
Whereof
Deposits with credit institutions without agreed time to maturity	253	243
Due to credit institutions without agreed time to maturity	0	0

Report for 4th quarter 2025

Statement of cash flows