Disclosure Devil - Summary

Q2 Interim Report 2025 KLP Kommunekreditt AS Table of Contents KLP Kommunekreditt AS................................................................................................................................................................................................................................................................................................. 3 Interim Financial Statements 2/2025 ......................................................................................................................................................................................................................................................... 3 Statement pursuant to section § 5-6 of the securities trading act .........................................................................................................................................................................7 Income statement............................................................................................................................................................................................................................................................................................................. 8 Balance ......................................................................................................................................................................................................................................................................................................................................... 9 Statement of changes in equity .................................................................................................................................................................................................................................................................... 10 Statement of cash flow.............................................................................................................................................................................................................................................................................................. 11 Notes to the financial statement...................................................................................................................................................................................................................................................................12 Note 1 General information.................................................................................................................................................................................................................................................................................12 Note 2 Accounting principles..........................................................................................................................................................................................................................................................................12 Note 3 Net interest income................................................................................................................................................................................................................................................................................13 Note 4 Loans to customers................................................................................................................................................................................................................................................................................13 Note 5 Categories of financial instruments.................................................................................................................................................................................................................................... 14 Note 6 Fair value hierarchy............................................................................................................................................................................................................................................................................... 16 Note 7 Debt securities issued - stock exchange listed covered bonds and certificates..............................................................................................................17 Note 8 Over-collateralisation........................................................................................................................................................................................................................................................................... 17 Note 9 Liabilities to credit institutions................................................................................................................................................................................................................................................. 18 Note 10 Financial assets and liabilities subject to net settlement........................................................................................................................................................................ 18 Note 11 Transactions with related parties......................................................................................................................................................................................................................................... 19 Note 12 Other assets ............................................................................................................................................................................................................................................................................................... 20 Note 13 Other liabilities and provision for accrued costs ..............................................................................................................................................................................................20 Note 14 Capital adequacy.................................................................................................................................................................................................................................................................................. 20 Note 15 Fixed-income securities..................................................................................................................................................................................................................................................................21 Note 16 Contingent liabilites ............................................................................................................................................................................................................................................................................21 Note 17 Net gain/(loss) on financial instruments......................................................................................................................................................................................................................21 Note 18 Loan loss provision............................................................................................................................................................................................................................................................................. 22 Quarterly earnings trend...................................................................................................................................................................................................................................................................................... 23 Key figures - accumulated.................................................................................................................................................................................................................................................................................. 23 Contact information................................................................................................................................................................................................................................................................................................... 24 Q2 Interim Report 2025 | Table of Contents KLP Kommunekreditt AS 2 KLP Kommunekreditt AS Q2 2025 Interim Financial Statements 2/2025 Main features by second quarter end: • Increased lending volume • Stable P&L development • No confirmed lending losses Objective The Company's objective is financing KLP Banken's loans to municipalities, county administrations and enterprises carrying out public sector assignments. Loans to companies must be guaranteed by municipalities, county administrations or the central government under the Norwegian Local Government Act. Guarantees must be unconditional and cover both principal and interest. The lending activities are primarily financed through the issuance of covered bonds. KLP Kommunekreditt AS is a wholly owned subsidiary of KLP Banken AS. The KLP Banken AS is owned by Kommunal Landspensjonskasse (KLP). Income statement The operating profit before tax for the second quarter was NOK 21.0 (18.6)1 million. Year-to-date, profit before tax is NOK 45.2 (45.3) million. The change in profit is mainly due to positive effects from value changes in financial instruments offsetting the decline in net interest income. Net interest income for the second quarter was NOK 48.4 (56.9) million. The change is primarily related to lower average lending margins in the first half of the year. Net effects from financial instruments for the second quarter amounted to NOK 5.9 (-2.2) million. This mainly includes value changes in the company’s liquidity placements and effects from buybacks of its own issued debt. Realized and unrealized value changes in the company’s liquidity placements have contributed NOK 6.0 (5.4) million to the result so far this year. Accounting losses from buybacks of own debt total NOK -0.1 (-7.4) million so far this year. Operating expenses for the first half of the year were NOK -9.1 (-9.5) million. The company has had no loan losses and maintains very low loss provisions. 1 Figures in parenthesis refer to the corresponding period last year. Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 3 Lending and total assets As of June 30, 2025, the company’s loans to customers amounted to NOK 19.8 (18.3) billion. So far this year, net loan growth has been NOK 1.1 billion (6 percent). Borrowers include municipalities, county authorities, and companies with municipal guarantees. Total assets amounted to NOK 22.3 (20.7) billion. Liquidity investments The cover pool related to the company’s funding is subject to strict requirements. In addition to loans to the public sector, it consists of secure securities and deposits in other banks. The securities include certificates and bonds with very high credit quality, primarily covered bonds. As of June 30, 2025, the market value of the company’s interest-bearing securities was NOK 1.6 (1.8) billion. Funding The company’s financing consists of covered bonds (OMF) and loans from KLP Banken AS. At the end of the quarter, intra-group debt amounted to NOK 2.1 (0.7) billion. Outstanding covered bond debt was NOK 19.1 (18.8) billion. No new covered bonds have been issued so far in 2025. Net buybacks and sales from own holdings of previous issuances amounted to NOK -1.9 (-1.5) billion as of the second quarter. All OMF issuances have an Aaa rating from Moody’s. Risk and capital adequacy KLP Kommunekreditt AS has established a risk management framework to ensure that risks are identified, analyzed, and managed through guidelines, limits, procedures, and instructions. The company is to maintain a conservative risk profile, and earnings should primarily result from lending and deposit activities as well as liquidity management. This implies that the company should have low market risk. Interest rate risk arising from lending and borrowing activities is reduced by derivatives. The company must maintain sufficient long-term funding within established limits. The credit risk is very low, as lending is limited to loans with municipal risk. Liquidity is placed in banks with high credit quality requirements and in securities in accordance with board-approved credit lines. Core capital in accordance with capital adequacy regulations at the end of the second quarter of 2025 was NOK 1,010.3 (947.5) million. Loans to municipalities and county authorities are risk-weighted at 20 percent according to regulatory capital adequacy rules. KLP Kommunekreditt AS had a core capital ratio and total capital ratio of 22.2 (23.0) percent as of the second quarter. The minimum requirement for total capital adequacy is 17.5 percent. The leverage ratio was 4.5 (4.6) percent, with a requirement of 3.0 percent. Outlook KLP Kommunekreditt AS is the only credit institution in Norway that issues covered bonds secured by loans to the public sector. Together with KLP, the company contributes to competition in the public lending market, thereby ensuring that the public sector has access to long-term financing on favorable terms. The overall growth in recent years demonstrates a solid market position. Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 4 High credit quality in the loan portfolios is intended to help KLP Kommunekreditt AS achieve favorable funding terms. Government regulation of banks and financial institutions requires compliance with a range of capital and liquidity requirements. This necessitates ongoing earnings that enable the company to meet such requirements. The market for municipal sector loans continues to grow, and a large share of borrowing is financed through the securities market rather than through financial institutions. KLP Kommunekreditt AS is well capitalized and has an advantage as a stable and long-term lender in a low-risk market. The general development of the financial markets will determine the extent to which KLP Kommunekreditt AS can finance its lending activities on terms that provide sufficient profitability for continued growth. Norwegian municipalities have developed a strong and comprehensive range of services for the population. Increased life expectancy, demographic trends, income development, and climate risk suggest a continued high level of investment in the public sector in the coming years. Higher costs due to increased interest rates do not appear to have reduced lending growth compared to recent years. In its annual budget survey, KS (the Norwegian Association of Local and Regional Authorities) indicates that investment and borrowing levels are expected to remain high going forward. Demand for loans to projects that support climate adaptation is also likely to continue increasing in the years ahead. The Board assumes that there will continue to be a significant need for long-term and stable financing for public borrowers. KLP Kommunekreditt AS and KLP together aim to be a key provider of loans for public investment purposes. Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 5 Trondheim, 14 August 2025 AAGE E. SCHAANNING Chair JANICKE E. FALKENBERG INGER HEGNA JONAS V. KÅRSTAD CARL STEINAR LOUS Managing Director Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 6 Statement pursuant to section § 5-6 of the securities trading act KLP Kommunekreditt AS We hereby confirm that the half yearly financial statement for the company for the period 1 January through 30 June 2025 to the best of our knowledge have been prepared in accordance with current applicable accounting standards, and give a true and fair view of the assets, liabilities, financial position and profit or loss of the company taken as a whole. To the best of our knowledge, the half-yearly report gives a true and fair overview of important events that occurred during the accounting period and their impact on the half-yearly financial statement, and a description of the principal risks and uncertainties facing the company over the next accounting period. Trondheim, 14 August 2025 AAGE E. SCHAANNING Chair JANICKE E. FALKENBERG INGER HEGNA JONAS V. KÅRSTAD CARL STEINAR LOUS Managing Director Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 7 Income statement KLP Kommunekreditt AS NOTE NOK THOUSANDS Q2 2025 Q2 2024 01.01.2025 -30.06.2025 01.01.2024 -30.06.2024 01.01.2024 -31.12.2024 Interest income, effective interest method 263 514 247 152 509 386 496 808 984 871 Other interest income 64 277 58 356 146 826 114 328 269 668 3 Total interest income 327 791 305 508 656 212 611 136 1 254 539 Interest expense, effective interest method -272 259 -246 234 -540 979 -491 894 -1 017 952 Other interest expenses -32 932 -31 434 -66 844 -62 320 -128 028 3 Total interest costs -305 191 -277 668 -607 823 -554 214 -1 145 980 3 Net interest income 22 600 27 840 48 389 56 922 108 559 17 Net gain/(loss) on financial instruments 2 659 -4 967 5 886 -2 187 -10 448 Total net gain/(loss) on financial instruments 2 659 -4 967 5 886 -2 187 -10 448 Other operating expenses -4 241 -4 234 -9 090 -9 470 -21 157 18 Net loan losses -3 4 -10 6 3 Total operating expenses -4 244 -4 230 -9 100 -9 464 -21 155 Operating profit/loss before tax 21 016 18 643 45 176 45 271 76 956 Tax ordinary income -293 880 -1 278 4 2 997 Profit for the period 20 723 19 524 43 897 45 275 79 953 Other income and expenses 0 0 0 0 0 Comprehensive income for the period 20 723 19 524 43 897 45 275 79 953 Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 8 Balance KLP Kommunekreditt AS NOTE NOK THOUSANDS 30.06.2025 30.06.2024 31.12.2024 ASSETS 5 Loans to credit institutions 902 878 524 067 705 779 4,5 Loans to customers 19 750 613 18 310 780 18 687 981 5,6,15 Fixed-income securities 1 592 898 1 760 279 3 587 455 5,6 Financial derivatives 80 779 113 351 83 757 12 Other assets 18 696 12 529 2 025 Total assets 22 345 864 20 721 007 23 066 996 LIABILITIES AND OWNERS EQUITY LIABILITIES 5,9 Debt to credit institutions 2 054 015 751 377 951 824 5,7 Debt securities issued 19 124 023 18 832 822 20 976 533 5,6 Financial derivatives 23 747 32 249 38 057 Deferred tax liabilities 1 304 1 695 18 625 13 Other liabilities 86 962 108 239 52 720 13 Provision for accrued costs and liabilities 0 66 0 Total liabilities 21 290 050 19 726 448 22 037 759 EQUITY Share capital 391 500 391 500 391 500 Share premium 363 500 363 500 363 500 Other accrued equity 256 917 194 284 274 237 Unallocated profit/loss 43 897 45 275 0 Total owners' equity 1 055 814 994 559 1 029 237 Total liabilities and equity 22 345 864 20 721 007 23 066 996 Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 9 Statement of changes in equity KLP Kommunekreditt AS 2025 NOK THOUSANDS Share capital Share premium Other accrued equity Total owners' equity Equity 1 January 2025 391 500 363 500 274 237 1 029 237 Profit for the period 0 0 43 897 43 897 Other income and expenses 0 0 0 0 Total comprehensive income for the period 0 0 43 897 43 897 Group contribution received 0 0 61 410 61 410 Group contribution made 0 0 -78 731 -78 731 Total transactions with the owners 0 0 -17 321 -17 321 Equity 30 June 2025 391 500 363 500 300 814 1 055 814 2024 NOK THOUSANDS Share capital Share premium Other accrued equity Total owners' equity Equity 1 January 2024 391 500 363 500 214 212 969 212 Profit for the period 0 0 45 275 45 275 Other income and expenses 0 0 0 0 Total comprehensive income for the period 0 0 45 275 45 275 Group contribution received 0 0 70 651 70 651 Group contribution made 0 0 -90 578 -90 578 Total transactions with the owners 0 0 -19 927 -19 927 Equity 30 June 2024 391 500 363 500 239 559 994 559 2024 NOK THOUSANDS Share capital Share premium Other accrued equity Total owners' equity Equity 1 January 2024 391 500 363 500 214 212 969 212 Income for the year 0 0 79 953 79 953 Other income and expenses 0 0 0 0 Total comprehensive income for the period 0 0 79 953 79 953 Group contribution received 0 0 70 651 70 651 Group contribution made 0 0 -90 578 -90 578 Total transactions with the owners 0 0 -19 927 -19 927 Equity 31 December 2024 391 500 363 500 274 237 1 029 237 Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 10 Statement of cash flow KLP Kommunekreditt AS NOK THOUSANDS 01.01.2025 -30.06.2025 01.01.2024 -30.06.2024 01.01.2024 -31.12.2024 OPERATIONAL ACTIVITIES Payments received from customers - interest 481 645 505 280 978 918 Payments made on issuance of loans to customers -1 706 648 -256 922 -2 062 280 Receipts related to repayment and redemption of loans to customers 675 373 926 277 2 393 715 Receipts on loans from credit institutions 0 3 000 000 6 250 000 Repayments and redemption of securities debt -4 000 000 -5 000 000 -5 000 000 Change in securities debt, own funds 2 099 893 1 424 412 333 063 Net payment of interest on loans credit institions -494 891 -446 237 -951 937 Receipts in internal funding 1 300 000 350 000 1 500 000 Disbursements in internal funding -200 000 -300 000 -1 250 000 Net payment of interest on internal funding -34 893 -16 891 -33 070 Payments on the purchase of securities -602 163 -856 909 -3 520 132 Receipts on sale of securities 2 588 424 603 316 1 449 349 Receipts of interest from securities 78 565 37 267 101 362 Disbursements on operations -10 983 -12 293 -21 719 Net receipts/disbursements from operating activities 20 795 32 618 -12 032 Interest from credit institutions 12 350 7 781 23 675 Net cash flow from operating activities 207 468 -2 302 178 912 INVESTMENT ACTIVITIES Net cash flow from investment activities 0 0 0 FINANCING ACTIVITIES Payment on group contribution -17 321 -19 927 -19 927 Net cash flows from financing activities -17 321 -19 927 -19 927 Net cash flow during the period 190 147 -22 229 158 985 Cash and cash equivalents at the start of the period 694 341 535 356 535 356 Cash and cash equivalents at the end of the period 884 488 513 127 694 341 Net receipts/disbursements 190 147 -22 229 158 985 Liquidity holdings comprise: Deposits with and receivables from banks with no agreed term 884 488 513 127 694 341 Total liquidity holdings at the end of the reporting period 884 488 513 127 694 341 Total interest received 572 560 550 328 1 103 956 Total interest paid -529 784 -463 128 -985 007 Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 11 Notes to the financial statement KLP Kommunekreditt AS Note 1 General information KLP Kommunekreditt AS was formed on 25 August 2009. The company is a credit enterprise that provides or acquires public sector loans that are guaranteed by the Norwegian municipalities. Borrowers provide surety covering both repayments and interest. The object of the Company is primarily to finance activities by issuing covered bonds with security in public sector guarantees loans. Parts of these loans are listed on Oslo Børs (Stock Exchange). KLP Kommunekreditt AS is registered and domiciled in Norway. It's head office is at Beddingen 8 in Trondheim, and the company has a branch office in Dronning Eufemiasgate 10 in Oslo. The company is a wholly owned subsidiary of KLP Banken AS which is in turn wholly-owned by Kommunal Landspensjonskasse (KLP). KLP is a mutual insurance company. Note 2 Accounting principles The interim report includes the interim Financial Statements of KLP Kommunekreditt AS for the period 1 January 2025 – 30 June 2025. The financial statements for KLP Kommunekreditt AS have been prepared in accordance with IFRS Accounting Standards®) as adopted by the EU with some additions that follow The Norwegian Accounting Act and the Regulations concerning annual accounts for banks, mortgage firms and finance companies (the Accounting Regulations). The interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting". The interim Financial Statements has not been audited. Other accounting principles and calculations are the same in the interim financial statement as in the annual report for 2024 please see the annual report for further information. Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 12 Note 3 Net interest income NOK THOUSANDS Q2 2025 Q2 2024 01.01.2025 -30.06.2025 01.01.2024 -30.06.2024 01.01.2024 -31.12.2024 Interest income on loans to customers 249 836 240 736 489 924 485 832 961 196 Interest income on loans to credit institutions 13 678 6 416 19 462 10 976 23 675 Total interest income, effective interest method 263 514 247 152 509 386 496 808 984 871 Interest income on fixed-income securities 27 520 20 669 70 940 39 946 116 937 Other interest income 36 757 37 687 75 887 74 382 152 731 Total other interest income 64 277 58 356 146 826 114 328 269 668 Total interest income 327 791 305 508 656 212 611 136 1 254 539 Interest expenses on debt from KLP Banken AS -23 503 -9 760 -37 083 -16 697 -33 323 Interest expenses on issued securities -248 756 -236 474 -503 896 -475 196 -984 629 Total interest expenses, effective interest method -272 259 -246 234 -540 979 -491 894 -1 017 952 Other interest expenses -32 932 -31 434 -66 844 -62 320 -128 028 Total other interest expenses -32 932 -31 434 -66 844 -62 320 -128 028 Total interest expenses -305 191 -277 668 -607 823 -554 214 -1 145 980 Net interest income 22 600 27 840 48 389 56 922 108 559 Note 4 Loans to customers NOK THOUSANDS 30.06.2025 30.06.2024 31.12.2024 Principal on lending 19 617 201 18 230 872 18 594 965 Write-downs -187 -174 -177 Accrued interest 183 456 173 451 175 177 Fair value hedging -49 857 -93 369 -81 984 Loans to and receivables from customers 19 750 613 18 310 780 18 687 981 All lending comprises loans to, or loans guaranteed by, Norwegian municipalities and county administrations, including loans to local government enterprises and intermunicipal (public sector lending). Guarantees are of the ordinary surety type covering both repayments and interest. Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 13 Note 5 Categories of financial instruments NOK THOUSANDS 30.06.2025 30.06.2024 31.12.2024 Capitalized value Fair value Capitalized value Fair value Capitalized value Fair value FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS Fixed-income securities 1 592 898 1 592 898 1 760 279 1 760 279 3 587 455 3 587 455 Financial derivatives 80 779 80 779 113 351 113 351 83 757 83 757 Total financial assets at fair value through profit and loss 1 673 677 1 673 677 1 873 630 1 873 630 3 671 212 3 671 212 FINANCIAL ASSETS FAIR VALUE HEDGING AT AMORTIZED COST Lending to Norwegian municipalities 1 894 693 1 895 919 1 715 131 1 727 651 1 921 836 1 936 594 Total financial assets fair value hedging at amortized cost 1 894 693 1 895 919 1 715 131 1 727 651 1 921 836 1 936 594 FINANCIAL ASSETS AT AMORTIZED COST Loans to and receivables from credit institutions 902 878 902 878 524 067 524 067 705 779 705 779 Lending to Norwegian municipalities 17 855 920 17 855 920 16 595 649 16 595 649 16 766 145 16 766 145 Total financial assets at amortized cost 18 758 797 18 758 797 17 119 716 17 119 716 17 471 924 17 471 924 Total financial assets 22 327 168 22 328 393 20 708 478 20 720 998 23 064 972 23 079 730 FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT AND LOSS Financial derivatives 23 747 23 747 32 249 32 249 38 057 38 057 Total financial liabilities at fair value through profit and loss 23 747 23 747 32 249 32 249 38 057 38 057 FINANCIAL LIABILITIES FAIR VALUE AT HEDGING AMORTIZED COST Covered bonds issued 1 723 971 1 739 921 1 702 310 1 714 791 1 679 351 1 691 807 Total financial liabilities fair value hedging amortized cost 1 723 971 1 739 921 1 702 310 1 714 791 1 679 351 1 691 807 FINANCIAL LIABILITIES AT AMORTIZED COST Liabilities to credit institutions 2 054 015 2 054 015 751 377 751 377 951 824 951 824 Covered bonds issued 17 400 052 17 473 824 17 130 513 17 200 401 19 297 182 19 343 808 Total financial liabilities at amortized cost 19 454 067 19 527 838 17 881 889 17 951 777 20 249 006 20 295 632 Total financial liabilities 21 201 784 21 291 506 19 616 448 19 698 818 21 966 414 22 025 497 Fair value shall be a representative price based on what a corresponding asset or liability would have been traded for on the balance sheet day. A financial instrument is considered to be listed in an active market if the listed price is simply and regularly available from a stock market, dealer, broker, industry grouping, price setting service or regulatory authority, and these prices represent actual and regularly occurring transactions at arm’s length. If the market for the security is not active, or the security is not listed on a stock market or similar, valuation techniques are used to set fair value. These are based for example on information on recently completed transactions carried out on business terms and conditions, reference to trading in similar instruments and pricing using externally collected yield curves and yield spread curves. As far as possible the estimates are based on externally observable market data and to the leaste extent possible on company-specific information. Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 14 The different financial instruments are thus priced in the following way: Fixed-income securities - government Nordic Bond Pricing is used as a source for pricing Norwegian government bonds. Fixed-income securities - other than government Norwegian fixed-income securities are generally priced based on rates from Nordic Bond Pricing. Securities not covered by Nordic Bond Pricing are priced theoretically. The theoretical price should be based on the discounted value of the security's future cash flows. Discounting is done using a swap curve adjusted for credit spread and liquidity spread. The credit spread should, to the extent possible, be based on a comparable bond from the same issuer. Liquidity spread is determined at the discretion of the evaluator. Financial derivatives These transactions are valued based on the applicable swap curve at the time of valuation. Derivative contracts are to be used only to hedge balance amounts and to enable payments obligations to be met. Derivative contracts may be struck only with counterparties with high credit quality. Fair value of loans to Norwegian local administrations Fair value of lending without fixed interest rates is considered virtually the same as book value since the contract terms are continuously changed in step with market interest rates. Fair value of fixed rate loans is calculated by discounting contractual cash flows by the marked rate including a relevant risk margin on the reporting date. This is valued in Level 2 in the valuation hierarchy, cf. Note 6. Fair value of loans to and receivables from credit institutions All receivables from credit institutions (bank deposits) are at variable interest rates. Fair value of these is considered virtually the same as book value since the contract terms are continuously changed in step with marked interest rates. This is valued in Level 2 in the valuation hierarchy, cf. Note 6. Fair value of liabilities to credit institutions These transactions are valued using a valuation model, including relevant credit spread adjustments obtained from the market. This is valued in Level 2 in the valuation hierarchy, cf. Note 6. Liabilities created on issuance of covered bonds Fair value in this category is determined on the basis of internal valuation models based on external observable data. This is valued in Level 2 in the valuation hierarchy, cf. Note 6. Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 15 Note 6 Fair value hierarchy 30.06.2025 NOK THOUSANDS Level 1 Level 2 Level 3 Total ASSETS BOOKED AT FAIR VALUE Fixed-income securities 128 913 1 463 985 0 1 592 898 Financial derivatives 0 80 779 0 80 779 Total assets at fair value 128 913 1 544 764 0 1 673 677 LIABILITIES BOOKED AT FAIR VALUE Financial derivatives (liabilities) 0 23 747 0 23 747 Total financial liabilities at fair value 0 23 747 0 23 747 30.06.2024 NOK THOUSANDS Level 1 Level 2 Level 3 Total ASSETS BOOKED AT FAIR VALUE Fixed-income securities 99 079 1 661 200 0 1 760 279 Financial derivatives 0 113 351 0 113 351 Total assets at fair value 99 079 1 774 551 0 1 873 630 LIABILITIES BOOKED AT FAIR VALUE Financial derivatives (liabilities) 0 32 249 0 32 249 Total financial liabilities at fair value 0 32 249 0 32 249 31.12.2024 NOK THOUSANDS Level 1 Level 2 Level 3 Total ASSETS BOOKED AT FAIR VALUE Fixed-income securities 99 103 3 488 353 0 3 587 455 Financial derivatives 0 83 757 0 83 757 Total assets at fair value 99 103 3 572 109 0 3 671 212 LIABILITIES BOOKED AT FAIR VALUE Financial derivatives (liabilities) 0 38 057 0 38 057 Total financial liabilities at fair value 0 38 057 0 38 057 Level 1: Instruments at this level obtain fair value from listed prices in an active market for identical assets or liabilities to which the entity has access at the reporting date. Examples of instruments in Level 1 are stock market listed securities. Level 2: Instruments at this level obtain fair value from observable market data. This includes prices based on identical instruments, but where the instrument does not maintain a high enough trading frequency and is therefore not considered to be traded in an active market, as well as prices based on corresponding assets and price-leading indicators that can be confirmed from market information. Example instruments at Level 2 are fixed-income securities priced on the basis of interest rate paths. Level 3: Instruments at Level 3 contain non-observable market data or are traded in markets considered to be inactive. The price is based generally on discrete calculations where the actual fair value may deviate if the instrument were to be traded. Note 5 discloses the fair value of financial assets and financial liabilities that are recognized at amortized cost and according to the rules on hedge accounting. Financial assets measured at amortized cost and hedge accounting comprise lending to and due to credit institutions, Norwegian municipalities and retail Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 16 customers. The stated fair value of these assets is determined on terms qualifying for Level 2. Financial liabilities recognized at amortized cost and hedge accounting consist of debt securities issued. The stated fair value of these liabilities is determined by methods qualifying for Level 2. There have been no transfers between Level 1 and Level 2. Note 7 Debt securities issued - stock exchange listed covered bonds and certificates NOK THOUSANDS 30.06.2025 30.06.2024 31.12.2024 Bond debt, nominal amount 18 950 000 19 700 000 22 950 000 Adjustments -18 501 -45 387 -42 953 Accrued interest 192 524 178 209 183 486 Own holdings, nominal amount 0 -1 000 000 -2 114 000 Total debt securities issued 19 124 023 18 832 822 20 976 533 Interest rate on borrowings through the issuance of securities on the reporting date: 5.03% 5.13% 5.10% The interest rate is calculated as a weighted average of the act/360 basis. It includes interest rate effects and amortization costs. NOK THOUSANDS Balance sheet 31.12.2024 Issued Matured/ redeemed Other adjustments Balance sheet 30.06.2025 Bond debt, nominal amount 22 950 000 0 -4 000 000 0 18 950 000 Adjustments -42 953 0 0 24 452 -18 501 Accrued interest 183 486 0 0 9 038 192 524 Own holdings, nominal amount -2 114 000 0 2 114 000 0 0 Total debt securities issued 20 976 533 0 -1 886 000 33 490 19 124 023 Note 8 Over-collateralisation NOK THOUSANDS 30.06.2025 30.06.2024 31.12.2024 SECURITY POOL Loans to customers 19 752 025 18 323 474 18 715 951 Financial derivatives (net) 56 984 81 026 45 704 Additional collateral ¹ 1 760 406 2 933 148 5 886 869 Total security pool 21 569 415 21 337 648 24 648 525 Outstanding covered bonds incl. own funds and premium/discount 19 213 745 19 921 164 23 158 712 Coverage of the security pool 112.3% 107.1% 106.4 % ¹ Additional collateral includes loans and receivables from credit institutions and bonds and certificates. Liquidity reserve are not included in additional collateral. Section 11-7 of the Regulations on Financial Institutions lays down a requirement for over-collateralisation by at least 2 percent of the value of the outstanding covered bonds. Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 17 Note 9 Liabilities to credit institutions 30.06.2025 NOK THOUSANDS Due date Nominal Accrued interest Book value Debt to KLP Banken AS 15.12.2026 400 000 783 400 783 Debt to KLP Banken AS 15.12.2026 500 000 979 500 979 Debt to KLP Banken AS 15.12.2026 550 000 1 077 551 077 Debt to KLP Banken AS 15.12.2026 200 000 392 200 392 Debt to KLP Banken AS 15.12.2026 400 000 783 400 783 Total liabilities to credit institutions 2 050 000 4 015 2 054 015 Interest rate on debt to credit institutions at the reporting date: 4.70% The interest rate is calculated as a weighted average of the act/360 basis. 30.06.2024 NOK THOUSANDS Due date Nominal Accrued interest Book value Debt to KLP Banken AS 15.12.2025 400 000 734 400 734 Debt to KLP Banken AS 15.12.2025 350 000 642 350 642 Total liabilities to credit institutions 750 000 1 377 751 377 Interest rate on debt to credit institutions at the reporting date: 4.72 % The interest rate is calculated as a weighted average of the act/360 basis. 31.12.2024 NOK THOUSANDS Due date Nominal Accrued interest Book value Debt to KLP Banken AS 15.12.2026 550 000 1 146 551 146 Debt to KLP Banken AS 15.12.2026 400 000 677 400 677 Total liabilities to credit institutions 950 000 1 824 951 824 Interest rate on debt to credit institutions at the reporting date: 4.69 % The interest rate is calculated as a weighted average of the act/360 basis. Note 10 Financial assets and liabilities subject to net settlement 30.06.2025 NOK THOUSANDS Related sums that are not presented net Gross financial assets/ liabilites Financial instruments Security in cash Net recognised value ASSETS Financial derivatives 80 779 -23 747 -67 148 5 621 Total 80 779 -23 747 -67 148 5 621 LIABILITIES Financial derivatives 23 747 -23 747 0 0 Total 23 747 -23 747 0 0 Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 18 30.06.2024 NOK THOUSANDS Related sums that are not presented net Gross financial assets/ liabilites Financial instruments Security in cash Net recognised value ASSETS Financial derivatives 113 351 -32 249 -87 471 11 990 Total 113 351 -32 249 -87 471 11 990 LIABILITIES Financial derivatives 32 249 -32 249 0 0 Total 32 249 -32 249 0 0 31.12.2024 NOK THOUSANDS Related sums that are not presented net Gross financial assets/ liabilites Financial instruments Security in cash Net recognised value ASSETS Financial derivatives 83 757 -38 057 0 45 699 Total 83 757 -38 057 0 45 699 LIABILITIES Financial derivatives 38 057 -38 057 0 0 Total 38 057 -38 057 0 0 The purpose of the note is to show the potential effect of netting agreements at the KLP Kommunekreditt AS. The note shows derivative positions in the financial statement. Note 11 Transactions with related parties TUSEN KRONER 30.06.2025 30.06.2024 31.12.2024 Interest incomes 5 176 5 157 10 499 Interest expenses -37 083 -16 697 -33 323 Purchase of services -6 572 -6 426 -12 991 Other receivables 16 558 10 950 1 571 Bank deposits 229 552 219 034 224 376 Borrowing -2 054 015 -751 377 -951 824 Other debt -592 -294 -1 134 All transactions are against KLP Banken AS. There are no direct salary cost in KLP Kommunekreditt AS. Personnel costs (administrative services) are allocated from KLP Banken AS. Transactions with related parties are carried out on general market terms, with the exception of the Company's share of common functions, which is allocated at cost. Allocation is based on actual use. All internal receivables are settled as they arise. Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 19 Note 12 Other assets NOK THOUSANDS 30.06.2025 30.06.2024 31.12.2024 Intercompany receivables 16 558 10 950 1 571 Prepaid expenses 1 267 1 580 0 Miscellaneous receivables 871 0 454 Total other assets 18 696 12 529 2 025 Note 13 Other liabilities and provision for accrued costs NOK THOUSANDS 30.06.2025 30.06.2024 31.12.2024 Creditors 0 221 113 Intercompany payables 592 294 1 134 Short-term balances with credit institutions 66 900 87 800 46 513 Other liabilities 19 470 19 923 4 960 Total other liabilities 86 962 108 239 52 720 VAT 0 66 0 Total accrued costs and liabilities 0 66 0 Note 14 Capital adequacy NOK THOUSANDS 30.06.2025 30.06.2024 31.12.2024 Share capital and share premium fund 755 000 755 000 755 000 Other owners' equity 256 917 194 284 274 237 Total owners' equity 1 011 917 949 284 1 029 237 Adjustments due to requirements for proper valuation -1 593 -1 760 -3 587 Core capital/Tier 1 capital 1 010 324 947 524 1 025 650 Supplementary capital/Tier 2 capital 0 0 0 Supplementary capital/Tier 2 capital 0 0 0 Total eligible own funds (Tier 1 and Tier 2 capital) 1 010 324 947 524 1 025 650 Capital requirement 363 785 330 090 362 060 Surplus of own funds (Tier 1 and Tier 2 capital) 646 538 617 434 663 590 ESTIMATE BASIS CREDIT RISK: Institutions 190 838 114 866 148 935 Local and regional authorities 4 068 171 3 708 250 3 890 649 Covered bonds 102 576 145 223 272 571 Other items 2 138 1 580 454 Calculation basis credit risk 4 363 723 3 969 919 4 312 609 Credit risk 349 098 317 593 345 009 Operating risk 14 132 12 335 15 314 Credit valuation adjustment (CVA) 556 162 1 737 Total capital requirement assets 363 785 330 090 362 060 Core capital adequacy ratio 22.2 % 23.0 % 22.7 % Supplementary capital ratio 0.0 % 0.0 % 0.0 % Capital adequacy ratio 22.2 % 23.0 % 22.7 % Leverage ratio 4.5 % 4.6 % 4.5 % Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 20 CAPITAL REQUIREMENT PER 30.06.2025 Core capital/ Tier 1 capital Supplementary capital/Tier 2 capital Own funds Minimum requirement excl. buffers 4.5 % 3.5 % 8.0 % Protective buffer 2.5 % 0.0 % 2.5 % Systemic risk buffer 4.5 % 0.0 % 4.5 % Counter-cyclical capital buffer 2.5 % 0.0 % 2.5 % Current capital requirement incl. buffers 14.0 % 3.5 % 17.5 % Capital requirement leverage ratio 3.0 % 0.0 % 3.0 % Note 15 Fixed-income securities NOK THOUSANDS 30.06.2025 30.06.2024 31.12.2024 Acquisition cost Market value Acquisition cost Market value Acquisition cost Market value Certificates 128 649 128 913 98 941 99 079 98 925 99 103 Bonds 1 453 773 1 463 985 1 655 504 1 661 200 3 471 466 3 488 353 Total fixed-income securities 1 582 423 1 592 898 1 754 445 1 760 279 3 570 391 3 587 455 Fixed income securities are brought to account at market value, including accrued but not due interests. Note 16 Contingent liabilites NOK THOUSANDS 30.06.2025 30.06.2024 31.12.2024 Loan commitment 350 501 43 000 5 242 Total contingent liabilities 350 501 43 000 5 242 Note 17 Net gain/(loss) on financial instruments NOK THOUSANDS Q2 2025 Q2 2024 01.01.2025 -30.06.2025 01.01.2024 -30.06.2024 01.01.2024 -31.12.2024 Net gain/(loss) on fixed-income securities 2 805 2 491 6 032 5 406 -258 Net gain/(loss) financial derivatives and realized amortization linked to lending 0 -189 0 -189 -189 Net gain/(loss) financial derivatives and realized repurchase of own debt -146 -7 269 -146 -7 404 -10 001 Total net gain/(loss) on financial instruments 2 659 -4 967 5 886 -2 187 -10 448 Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 21 Note 18 Loan loss provision Changes in provisions for expected losses in second quarter of 2025 are related to changes in lending volume. No other changes have been made to the assumptions or input to the model for calculating loss provisions in the second quarter of 2025. Refer to Note 8 and Note 2 in the annual report for more details of the model. Expected credit loss (ECL) - loans to customers - public lending NOK THOUSANDS 12 months ECL Lifetime ECL (not credit impaired) Lifetime ECL (credit impaired) 30.06.2025 30.06.2024 31.12.2024 stage 1 stage 2 stage 3 Total stage 1-3 Total stage 1-3 Total stage 1-3 Opening balance ECL 01.01. 177 0 0 177 180 180 Transfers to stage 1 0 0 0 0 0 0 Transfers to stage 2 0 0 0 0 0 0 Transfers to stage 3 0 0 0 0 0 0 Net changes -4 0 0 -4 -4 -11 New losses 27 0 0 27 3 24 Write-offs -13 0 0 -13 -4 -16 Closing balance ECL 187 0 0 187 174 177 Changes in the period 01.01-30.06./31.12. 10 0 0 10 -6 -3 Book value of loans and receivables for customers - public lending NOK THOUSANDS 12 months ECL Lifetime ECL (not credit impaired) Lifetime ECL (credit impaired) 30.06.2025 30.06.2024 31.12.2024 stage 1 stage 2 stage 3 Total stage 1-3 Total stage 1-3 Total stage 1-3 Lending 01.01. 18 770 141 0 0 18 770 141 19 087 959 19 087 958 Transfers to stage 1 0 0 0 0 0 0 Transfers to stage 2 0 0 0 0 0 0 Transfers to stage 3 0 0 0 0 0 0 Net changes -476 042 0 0 -476 042 -475 057 -1 167 223 New lending 2 895 699 0 0 2 895 699 268 101 2 529 768 Write-offs -1 389 141 0 0 -1 389 141 -476 680 -1 680 362 Lending 19 800 657 0 0 19 800 657 18 404 323 18 770 141 Fair value hedging -49 857 0 0 -49 857 -93 369 -81 984 Recognised loan loss provisions -187 0 0 -187 -174 -177 Book value of loans to public lending 19 750 613 0 0 19 750 613 18 310 780 18 687 981 Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 22 Quarterly earnings trend NOK MILLIONS Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Interest income 327.8 328.4 333.7 309.8 305.5 Interest expense -305.2 -302.6 -307.8 -283.9 -277.7 Net interest income 22.6 25.8 25.8 25.8 27.8 Net gain/(loss) financial instruments 2.7 3.2 -6.8 -1.5 -5.0 Total net gain/(loss) on financial instruments 2.7 3.2 -6.8 -1.5 -5.0 Other operating expenses -4.2 -4.8 -5.6 -6.1 -4.2 Total operating expenses -4.2 -4.8 -5.6 -6.1 -4.2 Operating profit/loss before tax 21.0 24.2 13.5 18.2 18.6 Tax ordinary income -0.3 -1.0 2.0 1.0 0.9 Profit for the period 20.7 23.2 15.5 19.2 19.5 Key figures - accumulated NOK MILLIONS Q2 2025 Q1 2025 Q4 2024 Q3 2024 Q2 2024 Pre-tax income 45.2 24.2 77.0 63.5 45.3 Net interest income 48.4 25.8 108.6 82.7 56.9 Other operating income 0.0 0.0 0.0 0.0 0.0 Other operating cost -9.1 -4.8 -21.2 -15.6 -9.5 Net gain/(loss) financial instruments 5.9 3.2 -10.4 -3.7 -2.2 Lending with public sector guarantee 19 750.6 19 419.2 18 688.0 18 005.9 18 310.8 Non-performing loans 0.0 0.0 0.0 0.0 0.0 Total liabilities created on issuance of securities 19 124.0 20 985.7 20 976.5 21 183.7 18 832.8 Other borrowing 2 054.0 1 552.9 951.8 551.1 751.4 Total assets 22 345.9 23 668.9 23 067.0 22 943.5 20 721.0 Average total assets 22 706.4 23 368.0 22 127.6 22 065.9 20 954.6 Equity 1 055.8 1035.1 1029.2 1013.8 994.6 Interest net 0.21 % 0.11 % 0.49 % 0.37 % 0.27 % Profit/loss from ordinary operation before taxes 0.20 % 0.10 % 0.35 % 0.29 % 0.22 % Return on equity 8.78 % 9.39 % 7.94 % 8.74 % 9.34 % Capital adequacy ratio 22.2 % 21.6 % 22.7 % 21.4 % 23.0 % Liquidity coverage ratio (LCR) 747 % 368 % 1 113 % 860 % 851 % Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 23 Contact information KLP KOMMUNEKREDITT AS Beddingen 8, 7042 Trondheim Organization no.: 994 526 944 VISITOR ADDRESS Trondheim: Beddingen 8 Oslo: Dronning Eufemias gate 10 https://www.klp.no/en Phone number: +47 55 54 85 00 klpkommunekreditt@klp.no Q2 Interim Report 2025 | KLP Kommunekreditt AS KLP Kommunekreditt AS 24