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 Q4 2025
The financial statements of Møre Boligkreditt AS show a pre-tax profit of NOK 70 million in the fourth quarter of 2025 (NOK 50 million). Net interest income amounts to NOK 85 million (NOK 67 million), and expenses ended at NOK 15 million (NOK 17 million). Net losses of NOK 4 million from financial instruments recorded in the quarter, compared with no losses the fourth quarter of 2024.
The ECL amount to NOK -4 million in the quarter (NOK 0 million).
Profit after tax amounts to NOK 55 million (NOK 39 million).
Net mortgage lending increased by NOK 1,284 million in the fourth quarter of 2025.
Møre Boligkreditt AS had 9 bond loans outstanding at 31 December 2025 with a total book value bond debt of NOK 31,501 million (NOK 31,503 million). Møre Boligkreditt AS reported Net Stable Funding Ratio (NSFR) of 109 per cent as at 31 December 2025.
Fourth quarter end results
By fourth quarter end 2025, the financial statements show a pre-tax profit of NOK 250 million (NOK 217 million). Net interest income amounts to NOK 330 million (NOK 283 million). Expenses amount to NOK 65 million (NOK 60 million). Net losses from financial instruments amount to NOK 14 million by fourth quarter end 2025, compared with net losses of NOK 12 million at fourth quarter end 2024.
The accounts were charged with NOK 1 million in loan losses at fourth quarter end 2025 (return on loan losses of NOK 6 million).
Taxes amount to NOK 55 million at fourth quarter end of 2025 (NOK 48 million), and profit after tax amounts to NOK 195 million (NOK 169 million).
Changes in value of basis swap spreads are added to other comprehensive income (OCI) with NOK 17 million after tax by fourth quarter end 2025, compared with NOK 30 million being charged at fourth quarter end 2024.
Total assets at year-end 2025 amount to NOK 39,657 million (NOK 38,778 million). Net mortgage lending amount to NOK 37,584 million (NOK 35,746 million) and the ECL calculation as at 31 December 2025 shows expected credit losses of NOK 6 million for Møre Boligkreditt AS (NOK 5 million).
At fourth quarter end 2025, the mortgages in the cover pool had an average loan-to-value ratio of 57.4 per cent, calculated as mortgage amount relative to the value of the property used as collateral (57.3 per cent).
The company's substitute assets included in the cover pool amounted to NOK 72 million at the end of 2025 (NOK 1,147 million). Over-collateralisation, calculated as the nominal value of the cover pool relative to the nominal value of outstanding covered bond loan debt was 22.4 per cent as at 31 December 2025 (19.5 per cent).
Møre Boligkreditt AS’ Liquidity Coverage Ratio (LCR) eligible assets amount to NOK 265 million as at 31 December 2025, reporting total LCR of 1,044 per cent by fourth quarter end 2025.
Capital strength
At the end of the fourth quarter, paid in equity and retained earnings amount to NOK 2,319 million (NOK 1,776 million). Risk weighted assets amount to NOK 10,541 million (NOK 8,367 million). Net equity and subordinated loan capital amount to NOK 2,065 million (NOK 1,550 million). This corresponds to a Common Equity Tier 1 capital ratio of 19.6 per cent (18.5 per cent) as at 31 December 2025. Leverage ratio at end-December 2025 is 5.3 per cent (4.0 per cent). Møre Boligkreditt AS uses internal rating based (IRB) models to calculate capital requirements for credit risk.
Regulatory changes
The Norwegian Ministry of Finance (MoF) adopted regulatory amendments that determined how CRR III is to be implemented in Norway. The Regulations entered into force in Norway 1 April 2025.
Minimum average risk weight floor increase for mortgages secured by Norwegian residential real estate applicable to banks using the internal ratings-based approach (IRB) from 20 to 25 per cent was effective from 1 July 2025.
Rating
The rating agency Moody's has assigned Aaa-rating to all covered bond loans issued by Møre Boligkreditt AS.
Moody’s has furthermore 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 the ratings of the parent bank Sparebanken Møre.
Outlook
From December 2024 to December 2025, the Norwegian Consumer Price Index (CPI) rose by 3.2 per cent, while the CPI adjusted for tax changes and excluding energy products (CPI-ATE) increased by 3.1 per cent. Thus, inflation remains well above Norges Bank’s long-term target of 2 per cent. According to the central bank’s projected rate path, one or two policy rate cuts can be expected in 2026.
Unemployment in Norway remains low. In December 2025, the national registered unemployment rate stood at 2.1 per cent, compared to 1.8 per cent in the county of Møre og Romsdal. Unemployment is expected to remain at relatively low levels in the coming quarters, both nationally and regionally.
The national twelve-month growth rate in household loan debt continues to trend upward, reaching 4.5 per cent in November 2025. Seasonally adjusted, Norwegian house prices were unchanged in December. In 2025, nominal house price growth was 5 per cent nationally and 0.7 per cent in Møre og Romsdal. The Board expects the growth in house prices to remain robust going forward.
Uncertainty surrounding future economic developments remains elevated. Geopolitical unrest and trade policy uncertainties continue to represent potential sources of volatility in financial markets. The Board anticipates this uncertainty to persist well into the next quarters.
Ålesund, 31 December 2025
28 January 2026
THE BOARD OF DIRECTORS OF MØRE BOLIGKREDITT AS
KJETIL HAUGE, Chair
ELISABETH BLOMVIK
KRISTIAN TAFJORD
SANDRA MYHRE HELSETH
OLE ANDRE KJERSTAD, Managing Director