BackInterim report from the Board of Directors
About the Company
Møre Boligkreditt AS is a wholly owned subsidiary of Sparebanken Møre. The company is licensed to operate as a mortgage company, issuing covered bonds. Møre Boligkreditt AS is Sparebanken Møre's most important source of market funding and an important part of the parent bank's long term funding strategy. The accounts have been prepared in accordance with IFRS. Figures in brackets refer to the corresponding period last year.
Results for Q1 2026
The financial statements of Møre Boligkreditt AS show a pre-tax profit of NOK 56 million in the first quarter of 2026 (NOK 55 million). Net interest income amounted to NOK 72 million (NOK 72 million), and costs ended at NOK 17 million (NOK 17 million).
The ECL amounted to NOK 2 million in the quarter (NOK 1 million). Profit after tax amounted to NOK 44 million (NOK 43 million).
Net loans to and receivables from customers were reduced by NOK 240 million in the first quarter of 2026. Net mortgage lending to customers amounted to NOK 37,344 million at first quarter end 2026 (NOK 35,092 million).
Møre Boligkreditt AS had 9 bond loans outstanding at 31 March 2026 with a total book value bond debt of NOK 30,935 million (NOK 29,365 million). Møre Boligkreditt AS reported Net Stable Funding Ratio (NSFR) of 103 per cent as at 31 March 2026.
Total assets at first quarter end 2026 amounted to NOK 38,654 million (NOK 37,134 million). The ECL calculation as at 31 March 2026 shows expected credit losses of NOK 7 million for Møre Boligkreditt AS (NOK 6 million).
At first quarter end 2026, the mortgages in the cover pool had an average loan-to-value ratio of 56.0 per cent, calculated as mortgage amount relative to the value of the property used as collateral (55.7 per cent).
The company's substitute assets included in the cover pool amounted to NOK 114 million at end-March 2026 (NOK 534 million). Over-collateralisation, calculated as the nominal value of the cover pool relative to the nominal value of outstanding covered bond loan debt was 21.9 per cent as at 31 March 2026 (23.7 per cent).
Møre Boligkreditt AS’ Liquidity Coverage Ratio (LCR) eligible assets amount to NOK 265 million as of 31 March 2026, reporting total LCR of 1,042 per cent by first quarter end.
Capital strength
At the end of the first quarter, paid in equity and retained earnings amounted to NOK 2,175 million (NOK 2,157 million). Risk weighted assets amounted to NOK 10,472 million (NOK 8,140 million). Net equity and subordinated loan capital amounted to NOK 2,065 million at end-March 2026 (NOK 2,047 million). This corresponds to a Common Equity Tier 1 capital ratio of 19.7 per cent (25.1 per cent). Leverage ratio at end-March 2026 is 5.3 per cent (5.5 per cent). Møre Boligkreditt AS uses internal rating based (IRB) models to calculate capital requirements for credit risk.
Rating
The rating agency Moody's has assigned Aaa-rating to all covered bond loans issued by Møre Boligkreditt AS.
Moody’s has assigned long-term and short-term issuer ratings of A1/Prime-1, and long-term and short-term Counterparty Risk Ratings of A1/Prime-1 to Møre Boligkreditt AS, aligned with ratings of parent bank Sparebanken Møre.
Outlook
From March 2025 to March 2026, the Norwegian Consumer Price Index (CPI) rose by 3.6 per cent, while the CPI adjusted for tax changes and excluding energy products (CPI-ATE) increased by 3.0 per cent. CPI levels remain above Norges Bank’s long-term inflation target of 2 per cent. High wage growth, higher energy prices and uncertainty and volatility in financial markets is making the path to two per cent inflation more challenging.
Unemployment in Norway remains low. In March 2026, the national registered unemployment rate stood at 2.2 per cent, compared to 1.9 per cent in the county of Møre og Romsdal. Unemployment is expected to stay low in the coming quarters, both nationally and regionally.
The national twelve-month growth rate in household loan debt continues to trend upward, reaching 4.7 per cent in February 2026. Seasonally adjusted national housing prices rose by 0.3 per cent in March 2026 and have increased by 3.0 per cent over the past year. The Board expects the strong housing price growth observed in the first quarter of 2026 to ease over the remainder of the year.
Norges Bank has held the policy rate steady at 4.0 per cent so far this year. According to the central bank’s projected rate path, the policy rate is expected to be hiked two times this year, ending at 4.5 per cent. The Board anticipates that the geopolitical and economic uncertainties and volatility will persist well into the next quarter and perhaps even longer.
Ålesund, 31 March 2026
29 April 2026
THE BOARD OF DIRECTORS OF MØRE BOLIGKREDITT AS
KJETIL HAUGE, Chair
SANDRA MYHRE HELSETH
OLE-MAGNUS ORLIEN
ANNE BRIT KRØVEL BALSNES
OLE ANDRE KJERSTAD, Managing Director