Foreword by the Governor

Dear reader,

Norges Bank performs critical national missions. As Norway's central bank, we are tasked with maintaining monetary stability, promoting financial stability and an efficient and secure payment system, and managing the Government Pension Fund Global.

Our missions are firmly established and guide all we do. At the same time, the world around us is continually evolving. Heightened geopolitical uncertainty is affecting the framework for international cooperation and trade. New monetary and payment systems are emerging, and new technology, particularly artificial intelligence, is advancing rapidly. To succeed in our missions, we need to adapt to change and be prepared for the unexpected.

Following a marked decline in the two preceding years, inflation changed little in 2025. At the end of 2025, inflation was still above the 2% target. In June, Norges Bank’s Monetary Policy and Financial Stability Committee began a cautious normalisation of monetary policy. The policy rate was reduced from 4.5% to 4% during 2025. The December policy rate forecast indicated that the policy rate would decline further to somewhat above 3% towards the end of 2028. With this policy rate path, the Committee expected inflation to recede and move down towards the target without a large increase in unemployment.

Despite a turbulent backdrop, international equity indices rose in 2025, resulting in high returns in international currency terms for both the Government Pension Fund Global and Norges Bank’s foreign exchange reserves. However, the economic outlook is uncertain, and we must be prepared for considerable fluctuations in returns and market value ahead.

In December, we launched Strategy 28, our strategy for the next three years. Over the strategy period, we will build on our strengths and experience while taking the necessary steps to modernise and adapt. Society can rest assured that we will also deliver on our missions in a sound, efficient and responsible manner in the years ahead.

Oslo, 27 February 2026

Ida Wolden Bache
Governor

Annual reports

Norges Bank’s Executive Board

The Executive Board comprises the Governor, the two Deputy Governors and six external board members, all appointed by the King in the Council of State. The Governor is Chair and the two Deputy Governors are First Deputy Chair and Second Deputy Chair of the Executive Board. In addition, two board members are selected by and among employees to participate in the deliberation of administrative matters.

The Executive Board has four preparatory and advisory committees, whose work improves and streamlines the Executive Board’s discussions. For more information on the members of the Executive Board, see Norges Bank's website.

Work of the Executive Board in 2025

The Executive Board held 16 meetings and discussed 222 items of business in 2025. This is in line with previous years. Meetings in the form of seminars are also used for more in-depth discussions and presentations of the premises of important agenda items with Bank staff.

In addition, the Executive Board’s four subcommittees are used for the preparation of selected items for the Executive Board’s consideration.

Approximately two thirds of the Board’s time was spent on matters related to the management of the Government Pension Fund Global. This share has remained stable since the Committee for Monetary Policy and Financial Stability was established.

Table 1 Work of the Executive Board 2021–2025

Annual Report of the Executive Board for 2025

The geopolitical situation remained unpredictable throughout 2025. The framework for international cooperation and trade changed, and there was substantial uncertainty regarding the global and domestic economic outlook.

At the beginning of 2025, the monetary policy rate had been at 4.5% since the beginning of 2023. The policy rate had contributed to cooling down the Norwegian economy and to dampening inflation. Inflation in Norway is still above the 2% target. In June, the Committee began a cautious normalisation of monetary policy and reduced the policy rate to 4% over the course of the year. See the Annual Report of the Monetary Policy and Financial Stability Committee for 2025 for further information.

Global equity markets market grew in 2025, contributing to positive returns for both the Government Pension Fund Global (GPFG) and Norges Bank’s foreign exchange reserves. The value of the GPFG at the end of 2025 was NOK 21 268bn and was affected by the return on investments, capital inflows from the Norwegian government and exchange rate movements. The market value of the total equity and fixed income portfolio in the foreign exchange reserves was NOK 727.5bn at the end of 2025.

Over the course of 2025, the Executive Board has further strengthened the follow-up of the management of the GPFG in situations of heightened risk, such as in countries involved in war and conflict. In 2025, the Executive Board also evaluated the GPFG’s real estate strategy performance and adjusted the strategy.

Efforts to modernise Norges Bank’s settlement system continued in 2025. This is an extensive and long-term undertaking that also requires adaptations to safeguard security and contingency requirements. In order to achieve Norges Bank’s liquidity management policy objectives, the Executive Board has decided to introduce tradeable central bank certificates as a new instrument to withdraw surplus liquidity from the banking system.

The 2023–2025 strategy period ended in 2025. Strategy 25 included specific initiatives and there was a need to strengthen the organisation in order to ensure sufficient capacity, quality and robustness. The Executive Board’s assessment is that Norges Bank has to a large extent achieved its strategic ambitions. In 2025, the Executive Board prepared the strategy for the 2026-2028 period. Strategy 28 describes the Bank’s key priorities for the next three years. The GPFG will be the leading and most highly respected large investment fund globally. The central bank will be Norway’s leading institution in the field of macroeconomic analysis, maintaining world-class standards.

Efforts to deliver on the Bank’s missions starts with the Bank’s employees. The Bank is committed to creating a positive working environment to promote employee well-being and development and ensure that employees have the right expertise. In 2025, particular emphasis was placed on strengthening AI expertise. The Executive Board was satisfied with the results achieved and the feedback in the 2025 staff survey and would like to thank all employees for their valuable contribution through the year. See Society and social conditions for more information on Norges Bank’s employees.

Government Pension Fund Global

Norges Bank manages the GPFG on behalf of the Ministry of Finance. The objective of the Bank’s investment management is to achieve the highest possible long-term return within the constraints laid down in the mandate from the Ministry of Finance.

The investments in the GPFG returned 15.1% in 2025 following strong gains in global equity markets. The return was 0.28 percentage point below the GPFG's benchmark index. This is within the range of variation in relative return that can be expected from one year to the next. The Executive Board emphasises the importance of assessing results over time and is satisfied that the return over time has been higher than the return on the GPFG’s benchmark index.

At the end of 2025, the value of the GPFG was NOK 21 268bn and the GPFG’s investments comprised 71.3% equities, 26.5% fixed income, 1.7% unlisted real estate and 0.4% unlisted renewable energy infrastructure.

Return on the Government Pension Fund Global

The value of the GPFG is affected by the return on investments, capital inflows and withdrawals by the government, as well as exchange rate movements. Measured in terms of the fund’s currency basket1, the return for 2025 was 15.1% before management costs or NOK 2 362bn in accounting terms. In addition, owing to a stronger krone, the value of the GPFG measured in NOK terms decreased by NOK 1 155bn, but this has no bearing on GPFG purchasing power in foreign currency. Net transfers from the Norwegian government were NOK 327bn after the payment of management fees.

The return on equities was no less than 19.3%. Solid corporate earnings in investee companies and optimism related to artificial intelligence led to strong equity markets. Fixed-income instruments returned 5.4% in 2025, while investments in unlisted real estate returned 4.4%. The GPFG’s investments in unlisted renewable energy infrastructure returned 18.1% in 2025.

The Executive Board considers the overall return on the GPFG over time to have been solid. In the period between 1998 and 2025, the average annual return was 6.6%. The annual net real return, after deductions for inflation and management costs, was 4.3% in the same period.

Over the past five years, the GPFG has generated an accumulated return of 8.3% measured in the GPFG’s currency basket before management costs, or approximately NOK 7 000bn in accounting terms. The largest contribution comes from the GPFG’s equity investments. With such a large fund and an equity share of around 70%, we have to be prepared for the possibility of a significant decline in the GPFG’s value.

Return relative to the benchmark index

The Ministry of Finance determines the GPFG’s overall investment strategy. Norges Bank manages the GPFG with a view to achieving the highest possible long-term return, within the constraints laid down in the mandate from the Ministry of Finance. The Executive Board determines a strategic plan for the fulfilment of the investment mandate.

Since 2013, Norges Bank has grouped its investment strategies into three main strategies: market exposure, security selection and fund allocation. In the strategic plan for the period 2026 to 2028, which the Executive Board adopted towards the end of 2025, these strategies have largely been continued. The investment strategies are complementary and aim to take advantage of the GPFG’s distinctive characteristics. Not all investment strategies are expected to generate excess return at all times. The strategies have different time horizons and results will vary with different market conditions. The objective is for them to collectively generate excess return over time.

Under the strategy for market exposure, the GPFG is invested broadly and cost-effectively in the equities and bonds included in the benchmark index. The security selection strategy involves analysing companies and assessing whether the GPFG should invest more or less relative to the benchmark index. Norges Bank uses both internal and external managers for security selection. The fund allocation strategy comprises various strategies designed to improve the GPFG’s return and risk characteristics over time. The GPFG’s investments in real estate and unlisted renewable energy infrastructure form part of this strategy.

In 2025, the GPFG’s return before management costs was 0.28 percentage point lower than the return on the benchmark index. Market exposure contributed positively, while security selection and fund allocation contributed negatively to the GPFG’s relative return. The Executive Board notes that the GPFG’s total return over the last three years has been lower than that of the benchmark index due to the negative contribution from fund allocation.

The Executive Board emphasises that the fund’s performance must be assessed as a whole and over time. In the period between 1998 and 2025, the annual return before management costs was 0.24 percentage point higher than the return on the benchmark index from the Ministry of Finance. Norges Bank has measured the contributions to excess return from the three main strategies since 2013. Both since 2013 and over the past five years, the annual return before management costs has been 0.19 percentage point higher than the benchmark index. The Executive Board is satisfied with the GPFG’s performance over time.

The contributions from market exposure and security selection have been positive. With the exception of 2018, the market exposure strategy has contributed positively to the GPFG’s relative return each year since 2013. The results from security selection have fluctuated somewhat more but have contributed positively in eight of 13 years.

Fund allocation, and real estate investments in particular, have contributed negatively to the GPFG’s excess return. Since 2017, decisions on whether and how the GPFG should invest in real estate have been delegated to Norges Bank within the limits for deviation from the GPFG’s benchmark index.

The Executive Board is not satisfied with the results achieved in real estate investments over time. Real estate returns have been weak, both relative to the equities and bonds sold to fund them and compared with returns in the broader real estate market as measured by a global index. Norges Bank Investment Management made several organisational changes related to real estate management at the beginning of 2025 and began work on adjusting the real estate strategy at the same time.

The Executive Board has now adopted a new strategy for real estate. Norges Bank invests in real estate to achieve the objective of the highest possible return over time. Achieving this goal may also improve the long-term trade-off between return and risk in the GPFG. To date, the strategy has focused on investing in traditional sectors such as office and retail in predetermined countries and cities. Moving forward, Norges Bank will adopt a broader approach to real estate investments and diversify into more sectors and geographies. Norges Bank will invest more in unlisted real estate through external managers, funds and other indirect investment structures. This will especially apply to investments in new real estate sectors. The Executive Board has further specified that a framework shall be established for the funding of unlisted investments, which includes considerations of the underlying risk of the investment and adjusts for leverage.

Since 2019 the Ministry of Finance has allowed Norges Bank to invest up to 2% of the GPFG in unlisted renewable energy infrastructure. The strategy has been to gradually approach investment opportunities and develop expertise. Norges Bank made few investments during the initial years but has increased investments based on, among other things, assessments of improved return expectations. Several new investments through 2025, including the GPFG’s first investment in electricity grids and its first investment in an energy transition fund, contributed to an increase in the share of the GPFG invested in unlisted renewable energy infrastructure from 0.1% to 0.4%. The investments are made with a long time horizon, which indicates that results should be assessed over time.

Risk and costs

The objective of the highest possible return in the GPFG is to be achieved with an acceptable level of risk. The GPFG’s risk is measured, analysed and followed up using a broad set of targets and various analytical methods. The management mandate stipulates that Norges Bank shall manage the GPFG with the aim of ensuring that the expected relative volatility (tracking error) does not exceed 1.25 percentage points. At the end of 2025, the expected relative volatility was 0.37 percentage point, compared with 0.44 percentage point at the end of the previous year.

Measured over the entire period between 1998 and 2025, the realised tracking error has been 0.62 percentage point.

The management of the GPFG is to be cost-effective. Low costs are not an end in themselves, but cost-effective management contributes to achieving the highest possible return after costs. In the period between 2013 and 2025, annual management costs have been 0.05% of assets under management. The Executive Board is satisfied that management costs over time have been low compared to other funds.

Through the GPFG, we hold a small stake in the world’s largest companies. Responsible investment aims to promote long-term value creation at the companies and minimise negative effects on the environment and society. In this manner, it supports the financial objectives of the GPFG.

Situations involving war and conflict entail increased risk, and Norges Bank, as manager, must conduct enhanced due diligence. An example of this is the situation in the West Bank and Gaza. Throughout 2025, the Executive Board has further strengthened its monitoring of situations of heightened risk, such as in countries affected by war and conflict. In November 2025, the Ministry of Finance appointed a committee to review the GPFG’s ethical framework and introduced temporary guidelines that will remain in effect until a new ethical framework has been established. Norges Bank continues to manage the GPFG in a responsible manner within the applicable framework. For more information on the management of the GPFG, see the Government Pension Fund Global Annual Report for 2025.

Foreign exchange reserves

Norges Bank owns Norway’s official foreign exchange (FX) reserves. The FX reserves are to be sufficiently large and liquid to be available for use in foreign exchange market transactions as part of the conduct of monetary policy or/and to promote financial stability and meet Norges Bank’s international commitments. The FX reserves are managed with the aim of achieving the highest possible return within the applicable risk limits. The FX reserves are divided into an equity portfolio, a fixed income portfolio and a petroleum buffer portfolio.

Equity and fixed income portfolio

The composition of the equity and fixed income portfolio must be adapted to the objective of the FX reserves. The Executive Board has set principles for the management of the FX reserves and assesses the strategy and management framework annually. The size and stance of the FX reserves was assessed to well adapted to safeguard the overall contingency purpose of the FX reserves for 2025.

The market value of the total equity and fixed income portfolio was NOK 727.5bn at the end of 2025, which is NOK 30.7bn less than in 2024. At the end of 2025, the value of the equity portfolio was NOK 164.1bn, while the value of the fixed income portfolio was NOK 563.4bn.

In international currency terms, the return on the total equity and fixed income portfolio was NOK 40.8bn in 2025, or 6.9%. The return on the equity portfolio was NOK 17.7bn, while the fixed income portfolio returned NOK 23.1bn, equivalent to 18.8% and 3.9%, respectively.

In NOK terms, the return on the equity and fixed income portfolio was -0.7%, The krone appreciation made a negative contribution to the return in NOK terms.

The FX reserves are managed close to benchmark indices set by the Executive Board, and the return closely tracks global equity and bond market developments. In 2025, the return on the equity and fixed income portfolios was 0.06 percentage point and 0.01 percentage point higher, respectively, than the return on the portfolios’ benchmark indices At the end of 2025, expected relative volatility for the equity and fixed income portfolios was 0.03 and 0.02 percentage point, respectively, and has remained at these levels through 2025. Norges Bank’s financial risk arises from market exposure and different currency compositions on the asset and liability sides.

The performance of management of the FX reserves must be assessed as a whole and over time. Over the past ten years, the annual return on the equity and fixed income portfolio has been 13.0% and 0.9%, respectively, in international currency terms. Overall, the absolute annual return has been solid at 3.9%.

Petroleum buffer portfolio

The purpose of the petroleum buffer portfolio is to provide for appropriate management of the government’s need for converting foreign currency and NOK, and for any transfers to and from the GPFG.

The size of the portfolio fluctuates owing to the purchase and sale of currency in the market, the purchase of foreign exchange from the State’s Direct Financial Interest (SDFI), monthly transfers to and from the GPFG and changes in foreign exchange rates. In recent years, high oil and gas prices, as well as a higher non-oil budget deficit, have led to large capital flows and substantial volatility in the petroleum buffer.

At the end of 2025, the market value of the petroleum buffer portfolio was NOK 21.2bn, which is NOK 9.6bn less than in 2024. The return on the petroleum buffer portfolio was NOK -3.2bn, of which interest income was reduced by the krone appreciation.

For more information on the management of the Bank’s foreign exchange reserves, see the report Management of Norges Bank’s foreign exchange reserves.

The payment system

An efficient and secure payment system is essential for economic and financial stability. If payments cannot be made, economic activity comes to a halt. The ability to pay for goods and services is essential for individuals to participate fully in society.

Norges Bank is tasked with promoting an efficient and secure payment system. Norges Bank is in charge of the ultimate settlement system for interbank payments in Norway and issues banknotes and coins. Norges Bank is also the supervisory authority for interbank systems, oversees the payment system and other financial infrastructure and contributes to contingency arrangements.

The Executive Board considers the Norwegian financial infrastructure to be secure and efficient. Operations are stable, and payments can be made swiftly and at low cost.

Norges Bank’s settlement system

Norges Bank’s settlement system (NBO) is the core of the payment system. Payments between banks and other financial sector undertakings with an account at Norges Bank take place in NBO. Most NOK payments are therefore ultimately settled in NBO.

Operations have been stable through 2025, with an average of NOK 359bn in payment transactions settled daily. At the end of 2025, banks’ sight deposits and reserve deposits with Norges Bank totalled NOK 37bn.

The upgrade of the settlement system continued through 2025, and plans for the next generation solution have been further defined. This is an extensive undertaking and requires adaptations to safeguard security and contingency requirements. The next-generation settlement system will consist of two services: NBO RTGS for regular settlement and NBO INST for instant payments.

In 2024, Norges Bank signed an agreement on participation in the Eurosystem’s TARGET Instant Payment Settlement (TIPS) solution for instant payments and NBO INST will use this platform to settle instant payments in NOK. TIPS will facilitate the sound development of Norwegian instant payments in the years ahead. It became clear during the course of 2025 that participating in TIPS requires more comprehensive adaptations than was previously assumed. This will be handled in close cooperation with the European Central Bank (ECB) and the Norwegian banking industry. In cooperation with the industry, Norges Bank will plan for the transition to the new service at the lowest possible risk for all parties involved.

In January 2025, the Executive Board decided to enter into formal discussions with the ECB to participate in the T2 settlement system as a platform for NBO RTGS. By participating in T2, Norges Bank will retain exclusive control over settlement in NOK, liquidity management and the conduct of monetary policy. So far, assessments of security, national control and contingency requirements have been made. A final decision will be made once necessary clarifications have been addressed.

Cash

Payments are predominantly made digitally, and a secure and efficient payment system is primarily secured with sound digital solutions. Even though cash usage is low, cash continues to play an important role in the payment system. Cash is crucial for contingency considerations and is the only means of payment if electronic payment solutions fail completely. Cash is also important for individuals who do not have the skills or opportunity to use digital payment solutions.

Norges Bank is responsible for meeting the public’s demand for cash by supplying banks with cash. The supply of cash in circulation continues to decline and averaged NOK 37.7bn in 2025. Norges Bank has amended and strengthened its own cash contingency arrangements in recent years, eg with respect to the volume and geographic distribution of cash, to be able to meet more serious crisis scenarios.

For cash to be able to fulfil its functions, it must be available and payments must be able to be made in cash by both businesses and individuals. Consumers’ right to pay cash has been strengthened. This is important to ensure that cash can also fulfil its functions in the future. Furthermore, Norwegian banks have a legal obligation to ensure satisfactory cash services for their customers both in normal and contingency situations.

Current cash services are vulnerable and have some limitations. Most cash handling is not carried out by banks themselves, but by cash service providers. However, banks’ obligation applies regardless of a well-functioning service provider market. Norges Bank has pointed out that banks should, in collaboration, ensure satisfactory cash services coverage across Norway. If banks do not arrive at satisfactory solutions themselves, Norges Bank is of the opinion that more detailed regulation should be drafted.

Central bank digital currency

Since 2016, Norges Bank has explored the possibility of introducing a central bank digital currency (CBDC). The aim of introducing a CBDC would be to help ensure that paying with NOK continues to be efficient, secure and attractive. A distinction is made between retail and wholesale CBDC. A retail CBDC would be a universally accessible means of payment in line with cash and bank deposits. A wholesale CBDC would only be available to banks and other financial sector undertakings with an account at the central bank. It would be possible to use this type of CBDC for interbank settlement in the same way as traditional central bank deposits but using different technology.

The Executive Board is of the opinion that the introduction of either retail or wholesale CBDC is currently not warranted. However, the situation and needs could change. For example, blockchain technology may improve payment and financial systems in the longer term, and Norges Bank will ensure that social considerations are safeguarded if the technology becomes more widely adopted. Norges Bank is therefore continuing its research with the aim of being ready to introduce a CBDC if it becomes necessary to secure an efficient and secure payment system. Norges Bank will study the opportunities and challenges of CBDCs and tokenisation in the financial system and monitor relevant international developments, provide input to necessary legislation and explore the possibility of using the Eurosystem’s CBDC solutions and standards.

Security and contingency arrangements in the payment system

Norway’s current payment system is secure and efficient. An intensified threat landscape means that the Bank must now be prepared for more serious incidents. To ensure an efficient and safe payment system, today and in the future, contingency arrangements must be strengthened further.

The first line of defence will always be individual entities. Norges Bank supervises and oversees the payment system to promote a secure and efficient payment system. The Bank also collaborates with payment system participants and other national governing bodies on different measures for strengthening contingency arrangements. For example, the Bank is involved in threat-led penetration testing of the cyber resilience of critical infrastructure and the design of a framework for assessing IT-related risk.

In February 2025, a working group led by Norges Bank presented 18 measures to the Ministry of Finance to strengthen payment system contingency arrangements. Over the course of 2025, work has been carried out to follow-up and implement proposed measures.

For more information on the payment system, see Financial Infrastructure Report 2025.

Tasks performed as the government’s bank

In addition to being Norway’s central bank, Norges Bank is also the government’s bank. As the government’s bank, Norges Bank performs a number of tasks on behalf of the government, including government debt management and necessary foreign exchange transactions related to petroleum revenue spending.

Government debt

Norges Bank manages government debt on behalf of the Ministry of Finance. The objective of government debt management is to meet the government’s borrowing requirement at the lowest possible cost within the constraints of the mandate. The borrowing requirement is primarily met by issuing long-term fixed-rate bonds. The government also borrows short-term through Treasury bills, which are debt instruments with a maturity of one year or less. The government borrows exclusively in NOK.

At the end of 2025, government debt totalled NOK 647bn, with NOK 597bn in government bonds and NOK 50bn in Treasury bills. Of this amount, the government’s own stock amounted to NOK 50bn in bonds and NOK 16bn in Treasury bills.

In 2025, bonds amounting to NOK 105bn were issued to the market. In February, a new 10-year bond was issued via syndication in the amount of NOK 22bn. The bond was reopened by syndication in the amount of NOK 15bn in June.

Existing bonds were reopened in the amount of NOK 68bn on 24 auction days. On most of these days, two bonds with different maturities were auctioned.

Treasury bills worth slightly less than NOK 52bn were issued to the market at 18 auctions.

The government’s borrowing requirement was met in line with the 2025 Strategy and Borrowing Programme.

Foreign exchange transactions on behalf of the government

Norges Bank is tasked with converting government revenues from petroleum activities on the Norwegian continental shelf so that the government receives the correct amount of NOK for spending via the central government budget and the correct amount of foreign exchange (FX) for saving in the GPFG. The transactions are carried out on behalf of the government, completely separate from monetary policy.

In 2025, Norges Bank’s FX purchases on behalf of the government amounted to the equivalent of NOK 15.8bn. The FX purchases were lower than in 2024, primarily reflecting a higher structural non-oil budget deficit and a somewhat lower net cash flow from petroleum activities compared with 2024.

In 2025, the government corrected for several years of transfers from the GPFG that were higher than necessary to cover the non-oil budget deficit. As a result, NOK 82.1bn was transferred from the government’s account to the GPFG, partly reflecting the increased need to purchase FX.

Corporate governance

Norges Bank’s governance framework aims to be in line with best practice. The Executive Board follows up the Bank’s operations through periodic status reporting on target attainment, strategy implementation, resource use, financial and operational risk as well as internal and external regulatory compliance.

Norges Bank’s use of resources is to be cost-efficient and prudent, with a cost level that is reasonable compared with that of peer organisations. Benchmarking, ie external comparisons of the Bank’s use of resources with that of other peer organisations, is used as a corporate governance tool.

On behalf of the Ministry of Finance, CEM Benchmarking has compared the management costs of the GPFG with around 250 other funds. The GPFG has the lowest costs in its peer group, measured as a share of assets under management. According to CEM, the costs are lower because management is mostly carried out internally, with a lower share of external management than in other funds. CEM also emphasises that the GPFG’s internal management is cost efficient. In Central Banking, a comparison of FTEs between the Nordic central banks was conducted. It shows that the number of FTEs at Norges Bank is generally in line with or somewhat lower than that of peer central banks.

A number of measures have been implemented to streamline Norges Bank’s operations, including a project that has helped to reduce ongoing transaction costs in the equity portfolios of both the GPFG and the foreign exchange reserves.

Artificial intelligence was used in both of Norges Bank’s operational areas and a large proportion of the Bank’s employees have participated in the Bank’s AI training programme in 2025. The aim is for artificial intelligence to become a natural part of the working day for all employees. A number of initiatives have already helped increase efficiency. For example, the use of artificial intelligence was a key part of the project implemented to reduce transaction costs.

Assessing and managing geopolitical risk has been a part of the Executive Board’s work through 2025. The geopolitical situation affects how Norges Bank addresses security and contingency arrangements. In 2025, priorities included: nationwide value mapping, assessment of the financial sector’s importance for national security, further development of preventative security work, contingency plans for national security crises and continuing initiatives in cyber security. Through strengthened collaboration across Norway and with other Nordic central banks, Norges Bank has completed and participated in exercises and begun preparations for “Totalforsvarsåret 2026” [Total Defence Year 2026].

The Executive Board follows up financial and operational risk and compliance through periodic status reports. Valuations, performance measurement, management, measurement and control of risk comply with internationally recognised standards and methods. Managing geopolitical risk is an integral part of risk management. The GPFG’s monitoring and management of geopolitical risk has been strengthened, inter alia through scenario analyses and stress tests. There were no material breaches of the limits for the management of the GPFG or the FX reserves in 2025, and operational risk exposure was within the Board’s risk tolerance limit throughout the year. See the notes to the financial statements for a detailed explanation.

The Executive Board submits an annual risk assessment to Norges Bank’s Supervisory Council based on reporting by the administration and Internal Audit. No material deficiencies in the risk management and control regime were identified in 2025, and the Executive Board assesses the control environment and control systems at Norges Bank as satisfactory.

No directors’ and officers’ liability insurance has been provided for the members of the Executive Board or the chair of the Board, ie the Governor, in her role as general manager of Norges Bank. In practice, the Board members have limited liability risk, and the Bank self-insures any liability for damages on behalf of Board members or equivalent executive management positions. This is in line with practice in other Nordic central banks.

Balance sheet and financial statements

Balance sheet

The balance sheet total at the end of 2025 was NOK 22 198bn, compared with NOK 20 722bn at the end of 2024.

This balance sheet composition will normally be expected to generate a positive return over time, disregarding foreign currency effects, as returns on the Bank’s investments in equities and fixed income instruments are expected to exceed the cost of the Bank’s liabilities. Norges Bank’s assets are primarily invested in foreign currency, whereas its liabilities are primarily in NOK. Given the Bank’s balance sheet composition, income will largely be affected by developments in global fixed income, equity and foreign exchange markets. Considerable volatility in income should be expected from year to year. Future increases in the value of the GPFG will be affected by, among other things, transfers to and from the GPFG. Stress tests also show that geoeconomic conflicts may result in large declines in value.

In line with the regulation concerning annual financial reporting for Norges Bank, the value of the GPFG krone account and the net value of the investment portfolio are presented on Norges Bank’s balance sheet. As asset manager, Norges Bank bears no financial risk associated with the management of the GPFG. At year-end 2025, the GPFG’s value was NOK 21 268bn, compared with NOK 19 742bn at year-end 2024. See separate section above for more details on the performance and management of the GPFG.

Detailed financial reporting for the GPFG investment portfolio is presented in note 20 Government Pension Fund Global (GPFG) to the financial statements. In addition, an annual report on the management of the GPFG is prepared.

Excluding the GPFG, the FX reserves are Norges Bank’s largest balance sheet asset. Net FX reserves amounted to NOK 749bn at year-end 2025, compared with NOK 789bn at year-end 2024. See separate section above for more details on the performance and management of the FX reserves.

Banknotes and coins in circulation are a liability item for Norges Bank. At year-end 2025, banknotes and coins in circulation amounted to NOK 38bn, the same as at year-end 2024. In recent years, declining demand for cash has reduced the amount in circulation, although the amount now appears to have stabilised at approximately NOK 38bn.

In the period between 2018 and 2020, Norges Bank withdrew Series VII banknotes. In 2023, a provision of NOK 500m was made related to withdrawn banknotes. The redemption rate has declined in recent years, but developments are assessed as uncertain, and the provision will therefore remain unchanged in 2025. See further discussion in note 13 Notes and coins.

Norges Bank’s equity at 31 December 2025 was NOK 341bn, compared with NOK 387bn at 31 December 2024. Excluding the value of the GPFG, the equity ratio was 36,6% at year-end 2025, compared with 39,5% at year-end 2024.

The Executive Board deems the Bank’s equity sufficient to fulfil the Bank’s purpose (cf Section 3-11, Sub-section 1, of the Central Bank Act).

Income statement

Norges Bank’s total comprehensive income for 2025 showed a loss of NOK 26.2bn, compared with a profit of NOK 95.1bn in 2024.

The result was mainly driven by foreign currency effects and gains from equity and fixed-income investments. The loss from foreign currency effects was NOK 54.2bn in 2025, compared with a gain of NOK 58.9bn 2024. The gains from equity and fixed-income investments were NOK 17.9bn and NOK 22.8bn, respectively, in 2025, compared with gains of NOK 39.7bn and NOK 9.1bn in 2024.

Other large items include income from management fees reimbursed by the Ministry of Finance for Norges Bank’s expenses related to the management of the GPFG, in the amount of NOK 7.5bn in 2025, compared with NOK 7.4bn in 2024.

Operating expenses, including those for the management of the GPFG, amounted to NOK 9.0bn in 2025, compared with NOK 8.8bn in 2024. Compared with 2024, this increase primarily reflects higher personnel expenses, which were partly offset by lower fees to external managers of the GPFG and FX effects. The increase in personnel expenses is largely due to an accounting-related transition effect resulting from a change in disbursement practices for performance-based pay. The change does not affect employees’ earnings and has limited implications for the payment of performance-based pay. Fixed and performance-based fees to external managers of the GPFG accounted for approximately onethird of total operating expenses in 2025. The use of external managers has played an important role in achieving the GPFG’s objective of the highest possible net return. From its inception in 1999 through to year-end 2025, the cumulative excess return after costs associated with external equity mandates amounted to approximately NOK 93bn. See note 19 to the financial statements for more details on the management fee received by Norges Bank from the Ministry of Finance for the management of the GPFG.

Government Pension Fund Global
The GPFG’s total comprehensive income for 2025 showed a profit of NOK 1 199.3bn. The return on the portfolio, less the management fee to Norges Bank, is transferred in its entirety to the krone account and therefore does not affect Norges Bank’s total comprehensive income or equity. Total comprehensive income for 2025 was recognised against the GPFG krone account at 31 December 2025.

Distribution of total comprehensive income

In line with the Guidelines for provisions and allocations of Norges Bank’s profit or loss, Norges Bank’s net loss of NOK -26.2bn is covered by a transfer from the Adjustment Fund of NOK 26.2 billion. From the Transfer Fund, one third, or NOK -20.1bn, is transferred to the Treasury.

Funding transfers to the government

Transfer of profit from Norges Bank’s operations and interest on the government’s deposits are considered government revenue and are spent over the central government budget. Banks’ deposits in Norges Bank increase when the government spends transfers from Norges Bank. In the period to year-end 2024, the government has offset this increase by issuing government bonds equal to the transfers from Norges Bank. The Ministry of Finance has decided [in Norwegian only] that the government will no longer issue debt for this purpose, effective from the beginning of 2025.

Norges Bank’s Executive Board has decided to sell foreign currency and purchase NOK to fund the transfer of dividends and interest to the government for the 2025 financial year. This means that the transfers will not influence the long-term level of banks’ deposits in Norges Bank. In order to minimise the effect on the foreign exchange market, Norges Bank emphasises transparency and predictability when purchasing NOK.

1. 1 The GPFG’s returns are measured primarily in international currency terms, which is a weighted combination of the currencies in the fund’s benchmark index for equities and bonds. At year-end 2025, the currency basket was made up of 34 currencies. Unless otherwise stated, GPFG results mentioned in this Report are measured in terms of the fund’s currency basket.

Norges Bank’s Executive Board
Oslo, 5 February 2026

Ida Wolden Bache (sign)
Governor / Committee Chair

Pål Longva (sign)
First Deputy Chair

Øystein Børsum (sign)
Second Deputy Chair

Kristine Ryssdal (sign)

Arne Hyttnes (sign)

Nina Udnes Tronstad (sign)

Hans Aasnæs (sign)

Thomas Ekeli (sign)

Ragnhild Janbu Fresvik (sign)

Mats Bay Fevolden (sign)
Employee representative

Guro Heimly (sign)
Employee representative

An account of corporate social responsibility and sustainability has been prepared pursuant to the Regulations on the financial reporting of Norges Bank. The report is presented in a separate document in the Annual Report. The report on sustainability is an integral part of the Executive Board’s report.

Norges Bank’s Monetary Policy and Financial Stability Committee

The Monetary Policy and Financial Stability Committee comprises the Governor, the two Deputy Governors and two external members.

The external committee members are appointed by the King in Council for a term of four years. The Governor chairs the Committee, and the two Deputy Governors are First and Second Deputy Chairs.

The Committee had 23 meetings and considered 95 matters in 2025.

The Committee’s work structure

The Monetary Policy and Financial Stability Committee normally holds eight scheduled meetings a year, where policy rate decisions are made.

Four of the meetings coincide with the publication of the Monetary Policy Report. The Report contains an assessment of the outlook for the Norwegian and global economy. At the interim monetary policy meetings, when the Monetary Policy Report is not published, the Committee also sets the level of the countercyclical capital buffer.

The Committee’s schedule is largely determined by the dates of each monetary policy decision. The Committee usually meets four times in connection with each monetary policy decision that coincides with the publication of the Monetary Policy Report. The Committee meets twice for each interim monetary policy decision. The Committee also has some seminars on specific topics.

Bank staff prepare economic analyses and projections that provide a basis for the Committee’s discussions and staff also advise the Committee on policy decisions.

To ensure that the basis for discussions is as equal as possible for all Committee members, all members are given access to identical information and analyses simultaneously.

The Committee is committed to transparent and clear external communication and seeks consensus on its assessments and decisions through in-depth discussion. The Committee’s assessment, published in connection with policy rate decisions, and the “Assessment of the countercyclical capital buffer requirement”, published in connection with the buffer decisions, reflect the view of the majority. Topics of particular concern to the members in the discussions are highlighted in the assessments. Members that disagree with the assessment of the majority may dissent, and dissenting views are published together with a brief written explanation in the minutes and in the assessment published at the same time as the rate decision.

All of the Committee’s decisions were unanimous in 2025. To underpin the Committee’s form as a collegial committee, the Committee chair, the governor, normally speaks on behalf of the Committee. Other Committee members may issue statements by agreement with the Committee Chair.

Annual Report of the Monetary Policy and Financial Stability Committee for 2025

At the beginning of 2025, the policy rate had remained unchanged at 4.5% since the beginning of 2023. The policy rate had contributed to cooling down the Norwegian economy and to dampening inflation. Following a marked decline in the two preceding years, inflation changed little in 2025 and is still above the 2% target. In June, the Committee began a cautious normalisation of monetary policy. In the course of 2025, the policy rate was reduced to 4%.

In 2025, the international economy was marked by global trade policy uncertainty. The outlook for the international economy was still highly uncertain at the end of 2025. Nevertheless, economic activity remained firm in Norway and among trading partners through 2025. Policy rates were cut further in a number of countries. In December 2025, the Committee’s assessment was that a restrictive monetary policy was still needed, but a cautious normalisation of the policy rate over the coming years was still envisaged.

The Norwegian financial system is robust. Norwegian banks are profitable and solid. Households and firms have solid debt-servicing capacity. At the same time, there is still a heightened risk of events that could weaken financial stability. The Committee considers it important to maintain financial system resilience. The countercyclical capital buffer rate was kept unchanged at 2.5% through 2025.

Monetary policy

International economy

There were substantial changes in global trade policies in 2025. US import tariffs were raised markedly and there was substantial uncertainty surrounding trade policy and the outlook for the international economy in the period to summer 2025. This uncertainty contributed to considerable financial market volatility. Trade policy uncertainty declined over time but was still high at the end of the year.

Economic activity among Norway’s main trading partners nevertheless remained sustained through 2025 and growth appears to have picked up somewhat since 2024. This primarily reflects a marked decline in inflation since the peak in 2022, which has contributed to real wage growth for households.

Since 2024, the pace of disinflation has slowed in many countries. At the end of 2025, inflation in Sweden and the euro area was close to target, while inflation was still somewhat higher among other main trading partners.

Lower inflation has given central banks room to reduce policy rates. In 2024, central banks among Norway’s main trading partners started to reduce their respective policy rates and in 2025, rates were cut further. Market expectations at the end of 2025 indicated that policy rates would be cut somewhat further in the UK and the US, while the rate-cutting cycle of other central banks, including Sveriges Riksbank and the ECB, was expected to have come to an end.

Financial conditions in Norway

The Norwegian krone, as measured by the import-weighted index I-44, depreciated significantly in the period to summer 2023, but movements have since been less pronounced. Through 2025 H1, the krone was affected by global financial market volatility and the depreciation of the US dollar following announcements of higher US tariffs. By the end of 2025, the import-weighted krone exchange rate was slightly stronger than at the beginning of the year.

Household interest expenses declined somewhat through 2025, after having risen markedly due to policy rate hikes in the period to 2024. Firms had ample access to bank and bond financing in 2025. Through 2025, credit premiums on bank and bond financing fell further, reducing financing costs. High structural liquidity drove down money market premiums to a historically low level. At the end of 2025, the Oslo Børs benchmark index was higher than at the end of 2024.

The Norwegian economy

After reaching a cyclical peak in summer 2022, growth in the Norwegian economy was low through 2023 and 2024. Unemployment increased somewhat. At the end of 2024, capacity utilisation in the economy appeared to be close to a normal level.

Mainland activity picked up in 2025, and preliminary data suggest that economic growth was higher than in 2024 and somewhat higher than envisaged at the beginning of the year.1 Unemployment increased somewhat through 2025, and registered unemployment in December was approximately at the pre-pandemic level. The Labour Force Survey (LFS) indicates that unemployment has risen somewhat more, partly reflecting an increase in the number of people entering the labour market. The employment-to-population ratio declined slightly but remained markedly higher than in the years preceding the pandemic. Productivity growth picked up in 2025 after being low in recent years. Capacity utilisation in the economy appears to have remained close to a normal level. In 2025 Q4, Regional Network contacts on the whole expected activity growth to dampen somewhat at the beginning of 2026.

Growth in household consumption picked up in 2025 following a couple of years of low growth. Regional Network retail contacts reported higher household demand. Combined with increased tourism, household demand also contributed to underpinning activity for firms in the services sector. Housing investment rose slightly from a low level, but low residential construction contributed to keep construction activity subdued. Petroleum investment continued to increase, but, following a period of very high activity, oil services contacts reported lower growth. Export growth continued, while public demand was little changed from 2024.

While very few new homes were sold in 2025, activity in the secondary housing market remained steady. In December 2025, prices in the secondary housing market were 5.0% higher than in December 2024.

Wage growth in 2025 slowed somewhat compared with 2024 but remained high. According to preliminary figures from Statistics Norway published at the beginning of February 2025, annual wage growth was 5% in 2025, which is broadly in line with the forecast presented in December 2025. High wage growth in recent years reflects high inflation, a tight labour market and sound profitability in some business sectors. At the end of 2025, there were prospects that wage growth would continue to moderate in 2026.

After falling markedly in 2023 and 2024, inflation has changed little in 2025. Domestically produced goods and services inflation remained elevated, at the same time as imported goods inflation remained low. The rapid rise in services, rent and food prices underpinned inflation. The annual rise in the consumer price index (CPI) was 3.1% in 2025, unchanged since 2024. The CPI adjusted for tax changes and excluding energy products (CPI-ATE) rose by 3.1% in 2025, down from 3.7% in 2024, albeit somewhat higher than expected at the beginning of 2025.

Lower inflation likely contributed to the initial decline in inflation expectations from year-end 2023. Expectations remained broadly unchanged in 2025, and according to Norges Bank’s Expectations Survey, long-term inflation expectations were still slightly above target at the end of 2025.

Sources: Statistics Norway and Norges Bank

Monetary policy trade-offs

The operational target of monetary policy is annual consumer price inflation of close to 2% over time. Inflation targeting shall be forward-looking and flexible so that it can contribute to high and stable output and employment and to counteracting the build-up of financial imbalances.

After the policy rate was raised to 4.5% in December 2023, it was kept unchanged through 2024. The rate had cooled the economy and dampened inflation. Towards the end of 2024, the Committee’s assessment was that a restrictive monetary policy was still needed to stabilise inflation around target, but that the time to begin easing monetary policy was soon approaching.

The Committee’s monetary policy assessments in 2025 emphasised that inflation had declined markedly since the peak, but that it was still above target. The rapid rise in business costs would likely stoke inflation ahead, and the Committee judged that a restrictive monetary policy was still needed. Cutting the policy rate too quickly could contribute to inflation staying above target for too long. On the other hand, capacity utilisation in the economy had declined and was close to a normal level. An overly tight monetary policy stance could restrict the economy more than needed to bring inflation down to target. The assessment of this trade-off indicated that it was appropriate to begin a cautious normalisation of monetary policy, and the policy rate was reduced from 4.5% to 4% over the course of 2025.

At the beginning of the year, inflation increased more than expected and unemployment was lower than previously projected. The policy rate, which the Committee had signalled would most likely be reduced in March, was kept unchanged, but the Committee still expected that the rate would be cut over the course of 2025. The decision to keep the policy rate unchanged was largely expected by financial markets and others who closely monitor the central bank. In its discussion of the balance of risks, the Committee emphasised that if the increase in inflation was to prove more temporary than assumed, the policy rate could be reduced faster than forecasts then indicated. Underlying inflation declined more than expected through spring. At the same time, new information indicated that there could be a little more spare capacity in the Norwegian economy than previously assumed. The Committee decided to cut the policy rate by 0.25 percentage point at the monetary policy meeting in June. This decision came as a surprise to many.

After summer, current statistics suggested that wage growth in 2025 could be higher than previously assumed. It also appeared that economic growth could be higher than assumed and spare capacity appeared lower. The outlook suggested that underlying inflation would remain elevated for a little longer than previously assumed. At its meeting in September, the Committee considered keeping the policy rate unchanged but concluded that a reduction to 4% was appropriate. The Committee also signalled that a somewhat higher policy rate than envisaged in June would likely be needed ahead .

Inflation was still too high at the end of 2025, and underlying inflation had been close to 3% for some time. In addition to the fact that the strong growth in business costs over the past years would likely restrain disinflation, the krone had depreciated and contributed to somewhat higher inflation prospects. At the same time, the Committee noted that there were indications of slightly weaker developments in the economy. Through 2025, registered unemployment had increased somewhat and there appeared to be a little more spare capacity in the economy over the course of autumn. At the Committee’s meeting in December 2025, the monetary policy assessments indicated that a restrictive monetary policy was still needed, but the Committee still envisaged a cautious normalisation of the policy rate over the coming years.

The forecasts in Monetary Policy Report 4/2025 were consistent with one to two rate cuts in 2026 and a further reduction to somewhat above 3% towards the end of 2028.

In its assessment of the outlook, the Committee noted that unpredictable conditions for international cooperation and trade were creating uncertainty about the inflation and growth outlook for both the Norwegian and the international economy. If labour market conditions were to weaken more than expected or the outlook were to indicate that inflation would return to target faster, the Committee judged that the policy rate could be lowered faster. On the other hand, the Committee also noted that inflation could remain elevated for longer than projected. If business costs were to remain elevated for longer or the krone were to prove weaker than projected, the Committee judged that a higher policy rate than envisaged in the forecasts in Monetary Policy Report 4/2025 could then be required.

Projections at different times. Four-quarter change. Percent. 2019 Q1 – 2028 Q4

Financial stability and the basis for Norges Bank’s decision on the countercyclical capital buffer and advice on the systemic risk buffer

Norges Bank has decision-making authority for the countercyclical capital buffer (CCyB) and formal advisory responsibility for banks’ systemic risk buffer (SyRB). The two buffer requirements form a substantial portion of banks’ total capital requirements. The Monetary Policy and Financial Stability Committee sets the CCyB rate each quarter and advises on the SyRB rate every two years.

The CCyB is intended to strengthen banks’ resilience and mitigate the risk of banks’ credit standards amplifying an economic downturn. The CCyB requirement has remained unchanged at 2.5% since 2023 Q1.

The SyRB is intended to help ensure that banks hold sufficient capital to withstand future downturns. The SyRB requirement has been 4.5% since 2020 Q4. The Committee will next advise the Ministry of Finance on the SyRB requirement in 2026.

In Financial Stability Report 2025 H1 and Financial Stability Report 2025 H2 , the Committee considered the financial system to be robust. In its assessments, the Committee emphasised in particular that banks are solid and that households and firms have adequate debt-servicing capacity. At the same time, the global economic outlook is highly uncertain and there is a heightened risk of events that could weaken financial stability. The balance of risks for the global economy over the past year has been marked by geopolitical tension and changes in global trade policy. The Committee emphasised the importance of maintaining financial system resilience to prevent vulnerabilities that could amplify an economic downturn.

The high indebtedness of many households is a key financial system vulnerability. During the years following the pandemic, higher interest rates and high inflation tightened household finances. However, most households have been able to service debt and cover normal living expenses with current earnings by a solid margin. Many households also have financial buffers. Wages rose more than prices in 2024 and 2025, and mortgage rates declined slightly in 2025, which has strengthened household purchasing power and improved debt-servicing capacity. Total household debt has risen less than income in recent years. Analyses in Financial Stability Report 2025 H2 show that debt-to-income (DTI) ratios have declined broadly across households and most of all for those with the highest DTI ratios. In the Committee’s assessment, Norwegian household vulnerability related to high debt has been somewhat reduced but may increase again if looser financial conditions result in rapidly rising house prices and debt.

Overall, Norwegian firms are solid. Profitability has remained close to the average for the past ten years, while the equity ratio increased for most sectors. So far, higher tariffs have not affected the corporate sector to any great extent.

In recent years, the share of bankruptcies among Norwegian firms has normalised following low bankruptcy figures during the pandemic. In 2025, bankruptcies were, on the whole, at approximately the same level as the average rate for the past ten years. However, bankruptcies in real estate development have risen markedly. Somewhat lower financing costs and higher house prices are likely to boost sector profitability ahead. At the same time, the Committee expects somewhat higher bank losses on exposures to this sector in 2026. Half of the banks in Norges Bank’s lending survey for 2025 Q3 reported an increased risk of default and breach of the terms of loan covenants in real estate development.

Banks’ high exposure to commercial real estate (CRE) is another key financial system vulnerability. In recent years, the rise in financing costs and lower property values have put pressure on CRE firms’ profitability and solvency. However, high employment and growth in rental income enable most CRE firms to cover high interest expenses with current earnings. A number of firms have sold real estate or raised equity to improve their financial positions in recent years, and sector solvency as a whole has improved somewhat.

Non-bank financial institutions (NBFIs2) play an increasingly prominent role in the global financial system, particularly in the government bond market and in credit intermediation to non-financial corporates. So far, direct lending from NBFIs to Norwegian non-financial corporates is limited. At the same time, NBFIs are important for banks’ wholesale funding. Foreign hedge funds hold an increasing share of banks’ covered bonds issued in NOK and use repurchase agreements with Nordic banks to obtain leverage. Increasing interconnectedness between banks and less regulated NBFIs may lead to vulnerabilities in the financial system, see Financial Stability Report 2025 H1.

Resilient banks are important for financial stability. Norwegian banks are highly profitable, satisfy capital and liquidity requirements by a solid margin and have ample access to both deposits and wholesale funding. This helps secure a resilient Norwegian financial system. Creditworthy households and firms have ample access to credit.

The Lending Regulations also build resilience by defining limits for banks’ credit standards and dampening the build-up of household sector vulnerabilities. On 1 January 2025, the Regulations were made permanent. Permanent Lending Regulations will lead to predictability and counter future deterioration of banks’ credit standards.

Both in Norway and abroad, financial systems have proven resilient to major market shocks, high inflation and higher interest rates in recent years, partly reflecting global regulatory standards established after the 2008 financial crisis. In a number of countries, there is now increased pressure to ease banks’ capital requirements. The Committee emphasised that there are good reasons to explore opportunities to simplify complex and comprehensive regulations, but that this should not be at the expense of financial system resilience.

1. 1 Mainland GDP has been revised up for a number of years as a result of Statistics Norway’s main revision of national accounts data published in autumn 2025. Household services consumption in particular has been revised up. The revised figures do not materially change the Bank’s view of developments in the Norwegian economy.

2. 2 NBFI is an abbreviation for non-bank financial Institutions or non-bank financial intermediation and covers institutions such as insurance companies, investment funds and asset managers such as hedge funds.

Norges Bank’s Monetary Policy and Financial Stability Committee
Oslo, 21 January 2026

Ida Wolden Bache (sign)
Governor / Committee Chair

Pål Longva (sign)
First Deputy Chair

Øystein Børsum (sign)
Second Deputy Chair

Hilde Christiane Bjørnland

Steinar Holden

Annual Report of the Monetary Policy and Financial Stability Committee for 2025

At the beginning of 2025, the policy rate had remained unchanged at 4.5% since the beginning of 2023. The policy rate had contributed to cooling down the Norwegian economy and to dampening inflation. Following a marked decline in the two preceding years, inflation changed little in 2025 and is still above the 2% target. In June, the Committee began a cautious normalisation of monetary policy. In the course of 2025, the policy rate was reduced to 4%.

In 2025, the international economy was marked by global trade policy uncertainty. The outlook for the international economy was still highly uncertain at the end of 2025. Nevertheless, economic activity remained firm in Norway and among trading partners through 2025. Policy rates were cut further in a number of countries. In December 2025, the Committee’s assessment was that a restrictive monetary policy was still needed, but a cautious normalisation of the policy rate over the coming years was still envisaged.

The Norwegian financial system is robust. Norwegian banks are profitable and solid. Households and firms have solid debt-servicing capacity. At the same time, there is still a heightened risk of events that could weaken financial stability. The Committee considers it important to maintain financial system resilience. The countercyclical capital buffer rate was kept unchanged at 2.5% through 2025.

Monetary policy

International economy

There were substantial changes in global trade policies in 2025. US import tariffs were raised markedly and there was substantial uncertainty surrounding trade policy and the outlook for the international economy in the period to summer 2025. This uncertainty contributed to considerable financial market volatility. Trade policy uncertainty declined over time but was still high at the end of the year.

Economic activity among Norway’s main trading partners nevertheless remained sustained through 2025 and growth appears to have picked up somewhat since 2024. This primarily reflects a marked decline in inflation since the peak in 2022, which has contributed to real wage growth for households.

Since 2024, the pace of disinflation has slowed in many countries. At the end of 2025, inflation in Sweden and the euro area was close to target, while inflation was still somewhat higher among other main trading partners.

Lower inflation has given central banks room to reduce policy rates. In 2024, central banks among Norway’s main trading partners started to reduce their respective policy rates and in 2025, rates were cut further. Market expectations at the end of 2025 indicated that policy rates would be cut somewhat further in the UK and the US, while the rate-cutting cycle of other central banks, including Sveriges Riksbank and the ECB, was expected to have come to an end.

Financial conditions in Norway

The Norwegian krone, as measured by the import-weighted index I-44, depreciated significantly in the period to summer 2023, but movements have since been less pronounced. Through 2025 H1, the krone was affected by global financial market volatility and the depreciation of the US dollar following announcements of higher US tariffs. By the end of 2025, the import-weighted krone exchange rate was slightly stronger than at the beginning of the year.

Household interest expenses declined somewhat through 2025, after having risen markedly due to policy rate hikes in the period to 2024. Firms had ample access to bank and bond financing in 2025. Through 2025, credit premiums on bank and bond financing fell further, reducing financing costs. High structural liquidity drove down money market premiums to a historically low level. At the end of 2025, the Oslo Børs benchmark index was higher than at the end of 2024.

The Norwegian economy

After reaching a cyclical peak in summer 2022, growth in the Norwegian economy was low through 2023 and 2024. Unemployment increased somewhat. At the end of 2024, capacity utilisation in the economy appeared to be close to a normal level.

Mainland activity picked up in 2025, and preliminary data suggest that economic growth was higher than in 2024 and somewhat higher than envisaged at the beginning of the year.1 Unemployment increased somewhat through 2025, and registered unemployment in December was approximately at the pre-pandemic level. The Labour Force Survey (LFS) indicates that unemployment has risen somewhat more, partly reflecting an increase in the number of people entering the labour market. The employment-to-population ratio declined slightly but remained markedly higher than in the years preceding the pandemic. Productivity growth picked up in 2025 after being low in recent years. Capacity utilisation in the economy appears to have remained close to a normal level. In 2025 Q4, Regional Network contacts on the whole expected activity growth to dampen somewhat at the beginning of 2026.

Growth in household consumption picked up in 2025 following a couple of years of low growth. Regional Network retail contacts reported higher household demand. Combined with increased tourism, household demand also contributed to underpinning activity for firms in the services sector. Housing investment rose slightly from a low level, but low residential construction contributed to keep construction activity subdued. Petroleum investment continued to increase, but, following a period of very high activity, oil services contacts reported lower growth. Export growth continued, while public demand was little changed from 2024.

While very few new homes were sold in 2025, activity in the secondary housing market remained steady. In December 2025, prices in the secondary housing market were 5.0% higher than in December 2024.

Wage growth in 2025 slowed somewhat compared with 2024 but remained high. According to preliminary figures from Statistics Norway published at the beginning of February 2025, annual wage growth was 5% in 2025, which is broadly in line with the forecast presented in December 2025. High wage growth in recent years reflects high inflation, a tight labour market and sound profitability in some business sectors. At the end of 2025, there were prospects that wage growth would continue to moderate in 2026.

After falling markedly in 2023 and 2024, inflation has changed little in 2025. Domestically produced goods and services inflation remained elevated, at the same time as imported goods inflation remained low. The rapid rise in services, rent and food prices underpinned inflation. The annual rise in the consumer price index (CPI) was 3.1% in 2025, unchanged since 2024. The CPI adjusted for tax changes and excluding energy products (CPI-ATE) rose by 3.1% in 2025, down from 3.7% in 2024, albeit somewhat higher than expected at the beginning of 2025.

Lower inflation likely contributed to the initial decline in inflation expectations from year-end 2023. Expectations remained broadly unchanged in 2025, and according to Norges Bank’s Expectations Survey, long-term inflation expectations were still slightly above target at the end of 2025.

Sources: Statistics Norway and Norges Bank

Monetary policy trade-offs

The operational target of monetary policy is annual consumer price inflation of close to 2% over time. Inflation targeting shall be forward-looking and flexible so that it can contribute to high and stable output and employment and to counteracting the build-up of financial imbalances.

After the policy rate was raised to 4.5% in December 2023, it was kept unchanged through 2024. The rate had cooled the economy and dampened inflation. Towards the end of 2024, the Committee’s assessment was that a restrictive monetary policy was still needed to stabilise inflation around target, but that the time to begin easing monetary policy was soon approaching.

The Committee’s monetary policy assessments in 2025 emphasised that inflation had declined markedly since the peak, but that it was still above target. The rapid rise in business costs would likely stoke inflation ahead, and the Committee judged that a restrictive monetary policy was still needed. Cutting the policy rate too quickly could contribute to inflation staying above target for too long. On the other hand, capacity utilisation in the economy had declined and was close to a normal level. An overly tight monetary policy stance could restrict the economy more than needed to bring inflation down to target. The assessment of this trade-off indicated that it was appropriate to begin a cautious normalisation of monetary policy, and the policy rate was reduced from 4.5% to 4% over the course of 2025.

At the beginning of the year, inflation increased more than expected and unemployment was lower than previously projected. The policy rate, which the Committee had signalled would most likely be reduced in March, was kept unchanged, but the Committee still expected that the rate would be cut over the course of 2025. The decision to keep the policy rate unchanged was largely expected by financial markets and others who closely monitor the central bank. In its discussion of the balance of risks, the Committee emphasised that if the increase in inflation was to prove more temporary than assumed, the policy rate could be reduced faster than forecasts then indicated. Underlying inflation declined more than expected through spring. At the same time, new information indicated that there could be a little more spare capacity in the Norwegian economy than previously assumed. The Committee decided to cut the policy rate by 0.25 percentage point at the monetary policy meeting in June. This decision came as a surprise to many.

After summer, current statistics suggested that wage growth in 2025 could be higher than previously assumed. It also appeared that economic growth could be higher than assumed and spare capacity appeared lower. The outlook suggested that underlying inflation would remain elevated for a little longer than previously assumed. At its meeting in September, the Committee considered keeping the policy rate unchanged but concluded that a reduction to 4% was appropriate. The Committee also signalled that a somewhat higher policy rate than envisaged in June would likely be needed ahead .

Inflation was still too high at the end of 2025, and underlying inflation had been close to 3% for some time. In addition to the fact that the strong growth in business costs over the past years would likely restrain disinflation, the krone had depreciated and contributed to somewhat higher inflation prospects. At the same time, the Committee noted that there were indications of slightly weaker developments in the economy. Through 2025, registered unemployment had increased somewhat and there appeared to be a little more spare capacity in the economy over the course of autumn. At the Committee’s meeting in December 2025, the monetary policy assessments indicated that a restrictive monetary policy was still needed, but the Committee still envisaged a cautious normalisation of the policy rate over the coming years.

The forecasts in Monetary Policy Report 4/2025 were consistent with one to two rate cuts in 2026 and a further reduction to somewhat above 3% towards the end of 2028.

In its assessment of the outlook, the Committee noted that unpredictable conditions for international cooperation and trade were creating uncertainty about the inflation and growth outlook for both the Norwegian and the international economy. If labour market conditions were to weaken more than expected or the outlook were to indicate that inflation would return to target faster, the Committee judged that the policy rate could be lowered faster. On the other hand, the Committee also noted that inflation could remain elevated for longer than projected. If business costs were to remain elevated for longer or the krone were to prove weaker than projected, the Committee judged that a higher policy rate than envisaged in the forecasts in Monetary Policy Report 4/2025 could then be required.

Projections at different times. Four-quarter change. Percent. 2019 Q1 – 2028 Q4

Financial stability and the basis for Norges Bank’s decision on the countercyclical capital buffer and advice on the systemic risk buffer

Norges Bank has decision-making authority for the countercyclical capital buffer (CCyB) and formal advisory responsibility for banks’ systemic risk buffer (SyRB). The two buffer requirements form a substantial portion of banks’ total capital requirements. The Monetary Policy and Financial Stability Committee sets the CCyB rate each quarter and advises on the SyRB rate every two years.

The CCyB is intended to strengthen banks’ resilience and mitigate the risk of banks’ credit standards amplifying an economic downturn. The CCyB requirement has remained unchanged at 2.5% since 2023 Q1.

The SyRB is intended to help ensure that banks hold sufficient capital to withstand future downturns. The SyRB requirement has been 4.5% since 2020 Q4. The Committee will next advise the Ministry of Finance on the SyRB requirement in 2026.

In Financial Stability Report 2025 H1 and Financial Stability Report 2025 H2 , the Committee considered the financial system to be robust. In its assessments, the Committee emphasised in particular that banks are solid and that households and firms have adequate debt-servicing capacity. At the same time, the global economic outlook is highly uncertain and there is a heightened risk of events that could weaken financial stability. The balance of risks for the global economy over the past year has been marked by geopolitical tension and changes in global trade policy. The Committee emphasised the importance of maintaining financial system resilience to prevent vulnerabilities that could amplify an economic downturn.

The high indebtedness of many households is a key financial system vulnerability. During the years following the pandemic, higher interest rates and high inflation tightened household finances. However, most households have been able to service debt and cover normal living expenses with current earnings by a solid margin. Many households also have financial buffers. Wages rose more than prices in 2024 and 2025, and mortgage rates declined slightly in 2025, which has strengthened household purchasing power and improved debt-servicing capacity. Total household debt has risen less than income in recent years. Analyses in Financial Stability Report 2025 H2 show that debt-to-income (DTI) ratios have declined broadly across households and most of all for those with the highest DTI ratios. In the Committee’s assessment, Norwegian household vulnerability related to high debt has been somewhat reduced but may increase again if looser financial conditions result in rapidly rising house prices and debt.

Overall, Norwegian firms are solid. Profitability has remained close to the average for the past ten years, while the equity ratio increased for most sectors. So far, higher tariffs have not affected the corporate sector to any great extent.

In recent years, the share of bankruptcies among Norwegian firms has normalised following low bankruptcy figures during the pandemic. In 2025, bankruptcies were, on the whole, at approximately the same level as the average rate for the past ten years. However, bankruptcies in real estate development have risen markedly. Somewhat lower financing costs and higher house prices are likely to boost sector profitability ahead. At the same time, the Committee expects somewhat higher bank losses on exposures to this sector in 2026. Half of the banks in Norges Bank’s lending survey for 2025 Q3 reported an increased risk of default and breach of the terms of loan covenants in real estate development.

Banks’ high exposure to commercial real estate (CRE) is another key financial system vulnerability. In recent years, the rise in financing costs and lower property values have put pressure on CRE firms’ profitability and solvency. However, high employment and growth in rental income enable most CRE firms to cover high interest expenses with current earnings. A number of firms have sold real estate or raised equity to improve their financial positions in recent years, and sector solvency as a whole has improved somewhat.

Non-bank financial institutions (NBFIs2) play an increasingly prominent role in the global financial system, particularly in the government bond market and in credit intermediation to non-financial corporates. So far, direct lending from NBFIs to Norwegian non-financial corporates is limited. At the same time, NBFIs are important for banks’ wholesale funding. Foreign hedge funds hold an increasing share of banks’ covered bonds issued in NOK and use repurchase agreements with Nordic banks to obtain leverage. Increasing interconnectedness between banks and less regulated NBFIs may lead to vulnerabilities in the financial system, see Financial Stability Report 2025 H1.

Resilient banks are important for financial stability. Norwegian banks are highly profitable, satisfy capital and liquidity requirements by a solid margin and have ample access to both deposits and wholesale funding. This helps secure a resilient Norwegian financial system. Creditworthy households and firms have ample access to credit.

The Lending Regulations also build resilience by defining limits for banks’ credit standards and dampening the build-up of household sector vulnerabilities. On 1 January 2025, the Regulations were made permanent. Permanent Lending Regulations will lead to predictability and counter future deterioration of banks’ credit standards.

Both in Norway and abroad, financial systems have proven resilient to major market shocks, high inflation and higher interest rates in recent years, partly reflecting global regulatory standards established after the 2008 financial crisis. In a number of countries, there is now increased pressure to ease banks’ capital requirements. The Committee emphasised that there are good reasons to explore opportunities to simplify complex and comprehensive regulations, but that this should not be at the expense of financial system resilience.

1. 1 Mainland GDP has been revised up for a number of years as a result of Statistics Norway’s main revision of national accounts data published in autumn 2025. Household services consumption in particular has been revised up. The revised figures do not materially change the Bank’s view of developments in the Norwegian economy.

2. 2 NBFI is an abbreviation for non-bank financial Institutions or non-bank financial intermediation and covers institutions such as insurance companies, investment funds and asset managers such as hedge funds.

Norges Bank’s Monetary Policy and Financial Stability Committee
Oslo, 21 January 2026

Ida Wolden Bache (sign)
Governor / Committee Chair

Pål Longva (sign)
First Deputy Chair

Øystein Børsum (sign)
Second Deputy Chair

Hilde Christiane Bjørnland

Steinar Holden

Corporate social responsibility and sustainability

Corporate social responsibility and sustainability

This section provides an overview of Norges Bank’s sustainability work.

The contents are organised into the following subsections:

• Society and social conditions
• Ethics, responsible procurement and supplier and contractor monitoring
• Climate and the environment

Norges Bank’s sustainability strategy guides this work.

Sustainability strategy

Sustainability reporting requirements

In accordance with the Regulation on the financial reporting for Norges Bank etc, Norges Bank is required to submit reports on the environment, social conditions, the working environment, gender equality and non-discrimination, human rights and anti-corruption. The requirements are met through this Report.

Norges Bank is also subject to the activity duty and the duty to issue a statement under the Equality and Anti-Discrimination Act. The statement on the Bank’s equality and anti-discrimination work can be found below in this section.

Society and social conditions

Norges Bank’s employees

The work to deliver on the Bank’s missions starts with the Bank’s people. Success requires highly skilled and committed employees and managers, and great emphasis is therefore placed on attracting, developing and retaining such employees. At the same time, it is important to ensure that employees who leave Norges Bank experience a positive transition, ensuring that they remain good ambassadors for the Bank’s working environment and missions in their new jobs.

Norges Bank employees

Recruitment

Norges Bank aims to attract and recruit highly qualified candidates from leading centres of expertise and national and international academic institutions.

The number of applications for positions at Norges Bank continued to increase in 2025.

A wide range of measures and activities are used to inform students and pupils about Norges Bank:

• Norges Bank’s Knowledge Centre
• Lectures at colleges and universities through the Norges Bank Teaching Initiative and NBIM Teach
• Visits to educational establishments and annual nationwide case competition for students and pupils
• Part-time student internships

To ensure that it is best equipped to deliver on its missions, the Bank gives weight tovariation in experience, perspectives, knowledge and expertise. To promote diversity in the organisation, the Bank recruits across nationality, gender, age and background.

In 2025, Norges Bank continued and strengthened its recruitment work. The Bank uses a neutral and inclusive language in job advertisements and is alert in selection processes to the risk of discrimination based on for example name, ethnicity and unconscious bias.

Table 2 Gender distribution among job applicants, upon signing of employment contract

Learning and development opportunities

Norges Bank will facilitate development and learning. The Bank’s career framework and employee and management principles provide predictability, transparency and a common language for management, collaboration and responsibility.

The Bank’s ambition is to develop a culture where learning, curiosity and continuous skill development are a natural part of day-to-day work.

Most learning occurs through everyday work by exploring new areas of expertise, participating in projects or by collaborating with colleagues with complementary skill sets. In addition, the Bank invests in courses, digital learning platforms and internal knowledge-sharing fora, enabling all employees to grow in pace with a changing job environment.

In 2025, priority was given to developing AI skills. Norges Bank will use AI responsibly to boost productivity and raise the quality of its work.

Internal mentoring has also been introduced in Central Banking, and NBIM has continued its mentor programme where employees are also encouraged to engage with external mentors. The Bank has internal and external resources that can provide guidance to employees on development, mastery and performance.

Employees gain experience and better insight across operational and specialist areas through temporary internships both in Norway and at the Bank’s offices abroad. In addition, employees can apply for residency at other central banks and relevant institutions.

Diversity and inclusion

Norges Bank expects all interactions to be respectful and has zero tolerance for bullying, harassment and discrimination. Employees shall feel safe in reporting errors and irregularities. Concerns shall be taken seriously and followed up. This is established in the HR principles, which are set by the Executive Board and based on the Bank’s ethical rules.

Through data analyses, staff surveys, performance appraisals and HSE (health safety and the environment) work, the risk of discrimination and other barriers to equality are identified. This insight is used to ensure that the Bank’s processes, culture and ways of working support an equal opportunity organisation.

In 2025, Central Banking introduced and established a diversity statement declaring that, at Norges Bank, everyone is welcome to apply for job vacancies, all applicants shall be considered on equal terms and the Bank will bring out the best in its people and provide equal opportunities.

In recent years, the Bank has introduced measures to promote an inclusive environment and a healthy speak-up culture. Personal and professional development and inclusive practices in everyday work are promoted through awareness-raising activities, leadership training and team development.

Norges Bank offers both student internships and retiree consultant positions. This contributes to a working environment with a diversity of experience and skills and facilitates smooth transitions into both working life and retirement.

Salary setting, employee development and succession planning must be free of conscious or unconscious bias and are assessed based on objective criteria such as performance and compliance with Norges Bank’s values.

Gender balance and distribution

Norges Bank is one of the founding partners of the Women in Finance Charter, which aims to increase the share of women in the Norwegian financial sector. In 2025, Norges Bank hosted the Charter’s fourth annual status report [in Norwegian only]. The Bank’s commitments are published on Norges Bank’s website.

The share of women in Norges Bank has increased from 36% to 38% over the past three years, and the Bank is approaching its 40% target. Even though there has been a positive development in the overall gender balance in recent years, some areas of expertise and job categories still lag behind.

Overall gender balance

The trend towards a higher share of women levelled off in 2025 due to a minor reduction in the share of women in NBIM.

Table 3 Gender balance

Greater detail is provided below on gender balance developments in Norges Bank, specified by job category and managerial and specialist position.

Gender balance by job category

The gender balance within certain job categories reflects the situation in the labour market in general. Fewer women than men apply for managerial positions and for positions in financial and IT sectors in general. At the end of 2025, the Bank’s gender balance was in line with the Bank’s target of at least 40% in most of the job categories below management level. There is a continued positive trend at management level, where the share of women among section heads, the job category with the most managers, has increased to 38%. For other managerial and specialist categories, the Bank is further from target.

Table 4 Share of women and men per job category at Norges Bank’s head office in Oslo. Number and percent

Gender balance at managerial and specialist levels

The share of women in managerial positions in Norges Bank continued to rise in 2025 and is now 35%, reflecting an increase in Central Banking, where the 40% target has been reached. The share of women in specialist positions is approximately the same as in 2024.

Measures have been implemented on all legs of the employee journey to achieve the gender balance target. In recruitment, measures have been implemented to widen the candidate pool, including targeted employer branding, network building, establishing relevant fora and requiring recruiting managers to consider and put forward both the best male and the best female candidate right up to the point where a final recommendation is made.

Recruiting more women is important, but so too is supporting their development and strengthening retention, which is why the Bank persistently strives to build a culture of equal opportunity. By defining clear gender balance targets, raising awareness through manager training and ensuring that executives actively pursue gender balance in management groups, recruitment processes and succession planning, the Bank is taking concrete steps to achieve the 40% target in managerial and specialist positions.

Table 5 Percentage of women in managerial and specialist positions at the head office in Oslo¹

1 Specialists include chief analysts and special advisers.

Temporary and part-time employees

Most permanent employees at Norges Bank have full-time contracts. Involuntary part-time work is not an issue. Most temporary employment contracts at Norges Bank are related to research, student internships, retiree consultant positions and some hourly paid work.

Table 6 Share of temporary and part-time employees at Norges Bank’s head office in Oslo

Parental leave

Norges Bank offers fully paid gender-neutral parental leave of 16 weeks in addition to 10 weeks of maternity leave for employees at the Bank’s offices abroad.

1 Number of weeks taken out in the calendar year and not the number of weeks the employee has taken out in total.

Salary system and salary differences

Framework and principles

The Executive Board sets the framework for Norges Bank’s remuneration schemes and monitors how they are practiced. Salary levels are to be competitive but not market leading. Salary determination is individual and should reflect the responsibilities of the position, as well as the expertise, experience and performance of the position holder.

Norges Bank employs external consultants to compare salary levels against other employers every year.

The Remuneration Committee of the Executive Board considers matters relating to Norges Bank’s remuneration schemes. In addition, Internal Audit at Norges Bank provides an independent opinion on compliance with the remuneration rules and guidelines. An audit in 2025 confirmed that the 2024 salary system had been practised in line with regulations. There were no significant changes to the remuneration system in 2025.

See note 15 Personnel expenses to the annual financial statements for further information on the salary system and benefits to senior executives.

Salary practices

Salary practices shall be fair, and salary developments are analysed regularly. Any gaps in remuneration at the individual or group level are examined further to ensure that gender-neutral criteria are applied.

Women’s fixed salary amounted on average to 78% of men’s at year-end 2025, the same as at year-end 2024, reflecting more men in senior positions and in investment roles in NBIM.

Table 8 Total wage gaps. Average fixed salary, independent of job category

Salary mapping

The salary mapping indicates no material differences in salary levels of men and women with comparable roles and tasks at the same location.

Tables 9-12 below provide an overview of wage differences for permanent employees at Norges Bank’s head office in Oslo. The tables show both fixed salary and paid remuneration by Norges Bank’s position levels. To protect the privacy of individual employees in small categories, the executive director, analysis director and support staff position levels are omitted. Total remuneration includes fixed salary, performance-based pay, paid overtime and compensation for travel time. Figures for fixed salaries and paid remuneration are rounded to the nearest NOK 1 000.

Salaries in Central Banking

Salary differences between women and men in Central Banking are relatively small in most job categories. Gender wage gaps are most pronounced in lower job categories. The differences reflect the uneven gender distribution within different fields of expertise. Higher wage levels in certain fields where men are overrepresented reflect market conditions. The most substantial differences in remuneration paid reflect a preponderance of men in certain fields of expertise who are entitled to on-call allowance and/or work more overtime than other employees.

Table 9 Salary mapping in Central Banking. Fixed salary by job category

Table 10 Salary mappingin Central Banking. Paid remuneration by job category

Salaries in NBIM

In NBIM, the gender wage gap widened marginally from 2024, primarily owing to change in the composition of the different job categories.

In NBIM, the gender wage gap mainly reflects a preponderance of men in positions involving investment decisions. Positions with investment responsibility generally offer higher salaries compared with those at the same level in other fields of expertise. A higher share of men than women in executive positions also widens the gap.

Table 11 Salary mapping in NBIM, Oslo. Fixed salary by job category

Table 12 Salary mapping in NBIM, Oslo. Paid remuneration by job category

Health, safety and the environment (HSE)

The Bank works closely with the occupational health service to strengthen systematic HSE work. In 2025, focus was mainly given to establishing safety inspections as a productivetool, and the Bank also designed and deployed digital HSE training for all managers. In the ongoing work to upgrade the head office, priority has also been given to improving the physical working environment, including indoor climate.

The safety representative service, led by the chief safety representative, is included in the planning and follow-up of measures addressing the working environment. Management cooperates constructively with the safety representative service and there is a strong mutual commitment to safeguard the Bank’s systematic HSE work.

The annual staff survey is an important tool in the Bank’s work to develop its staff, organisation, management and workplace. Survey results are discussed by Norges Bank’s Executive Board, management groups, teams and various working committees, and measures are implemented based on discussions both within the Bank’s management and among the individual teams, with reporting and follow-up. Overall, the results from the 2025 survey indicate that employees experience strong job satisfaction and engagement. However, some areas require follow-up, including further developing the Bank’s feedback culture.

While sickness absence in Norges Bank is still at a low level, it increased from 2.3% in 2024 to 2.8% in 2025. This is an increase of 0.5% from 2024.

In 2025, 11 HSE-related incidents in connection with work carried out at the Bank's office premises or conference centre or at courses were reported. No injuries or accidents have been sufficiently severe to require reporting to the Labour Inspection Authority.

Cooperation with employee representatives

To ensure sound employment relationships, management and employee representatives cooperate closely through employee and personnel committees, the Working Environment Committee, the safety representative service and through other fora for employee participation and dialogue.

Employees are also represented on the Executive Board by two members that take part in the consideration of administrative matters.

Ethics, responsible procurement and supplier and contractor monitoring

Norges Bank has been given considerable authority and is widely trusted by society. Employees must act in an ethical manner, comply with applicable laws and regulations and maintain a high level of ethical awareness. The Bank does not accept any form of misconduct or financial crime, such as corruption, money laundering or terrorist financing. Governance documents approved by the Executive Board are published on the Bank’s website.

In Norges Bank’s operations, no actual negative consequences or risks pertaining to fundamental human rights or decent working conditions were identified in 2025, nor were there any known incidents related to corruption.

In 2025, two whistleblowing cases were reported.

Rules on ethics and personal trading

Ethical principles issued by the Executive Board

The Executive Board annually revises the ethical principles that apply to all employees. The Governor of Norges Bank and the CEO of NBIM regularly update supplementary rules that are tailored to the tasks and the risk of conflicts of interest in the Bank’s two operational areas. The Ministry of Finance has adopted rules on impartiality for members of Norges Bank’s Executive Board and members of the Monetary Policy and Financial Stability Committee. In addition, the Executive Board has also adopted rules on, for example, conflicts of interest and restrictions on personal trading for the external members of these two bodies.

A framework and programme to combat corruption has also been established.

Training and raising awareness

All new employees at Norges Bank participate in introductory courses that cover the Bank’s ethical framework. In 2025, all employees at NBIM received training in measures to prevent corruption and in how to manage conflicts of interest.

Norges Bank emphasises training and awareness in key risk areas, with measures including one-on-one training of new employees, e-learning, annual tests and confirmation from all employees that they have reviewed the ethical rules. Employees are obligated to report on various matters related to the ethical rules, and all reporting is continuously checked by the Bank’s compliance function.

Whistleblowing

The Executive Board has laid down principles for internal whistleblowing on misconduct, mistakes and unacceptable behaviour at Norges Bank. Whistleblowing procedures describe how employees and employees of suppliers and contractors can (also anonymously) report unethical or unlawful behaviour. Reports can be submitted through any manager, the Bank’s whistleblowing channel, safety representatives, employee representatives and lawyers. All reports are to be treated in a proper manner, in accordance with external and internal whistleblowing requirements, and without the whistleblower risking retaliation.

Responsible procurement and supplier and contractor monitoring

Norges Bank procured goods and services totalling approximately NOK 6.3bn in 2025.

Climate and environmental considerations

Norges Bank shall have a responsible and sustainable supply chain and includes environmental requirements in procurement processes where relevant.

In accordance with the sustainability strategy, Norges Bank’s procurement policy is intended to help reduce the overall carbon footprint or environmental impact of its procurements. In line with the Public Procurements Act, the climate and environmental considerations award criterion is either weighted by 30% or is among the top three prioritised criteria. This includes taking into account life-cycle costs, food waste, carbon footprint and the like. If the result is a clear environmental benefit, the award criterion is replaced with climate and environmental requirements in the requirement specifications.

Supplier and contractor monitoring

Before Norges Bank enters into an agreement with a supplier or contractor, the Bank conducts a background check to identify any risk of misconduct, corruption, money laundering, sanction risk or other unlawful or unethical conduct.

All suppliers and contractors are required to comply with the Bank’s ethical principles, which also pertain to labour rights, human rights and discrimination. All suppliers and contractors with access to the Bank’s premises or systems are responsible for ensuring that personnel who perform services or work for Norges Bank are aware of the ethical rules that apply to suppliers and contractors.

Wage and working conditions in the Bank’s procurements

In 2025, audits of wage and working conditions were carried out at 27 of the Bank’s suppliers and contractors, involving a total of 29 agreements. Two violations of wage and/or working conditions were identified for personnel engaged by Norges Bank. At Norges Bank’s request, the suppliers and contractors in question have confirmed that the conditions have been rectified and that any outstanding wage claims will be settled.

Norges Bank is subject to public procurement regulations and is required to set requirements for wage and working conditions pursuant to regulations on wage and working conditions in public contracts. Suppliers, contractors and any subcontractors must be able to document wage and working conditions upon request by Norges Bank.

Climate and the environment

Responsible investment management of the Government Pension Fund Global

The objective for the management of the Government Pension Fund Global (GPFG) is to achieve the highest possible return with acceptable risk. Responsible investment supports the objective in two ways. First, by promoting long-term value creation, and second, by reducing the financial risk associated with environmental and social factors in companies.

Work on responsible investment can be divided into three main areas: the market, the portfolio and the companies.

The market

Working towards common standards

By participating in 68 national markets, the GPFG is a beneficiary of well-functioning and legitimate markets, global solutions to common challenges and recognised international standards. NBIM therefore looks to global solutions to solve common challenges such as climate change. In 2025, Norges Bank participated in 34 public consultations related to responsible investment management. All consultation responses are published on NBIM’s website. The consultations include significant issues such as corporate reporting, corporate governance, shareholder rights and climate and environmental reporting.

Clear expectations

Since 2008, NBIM has formulated clear expectations as to how investee companies should address relevant sustainability challenges in their operations and has emphasised that their boards should establish appropriate strategies, control functions and reporting procedures.

NBIM has also presented its positions on various corporate governance issues in order to enhance corporate governance and protect shareholder interests.

For more information on the responsible investment management of the GPFG, visit nbim.no.

Portfolio

Identifying and managing risk

When companies presumed to have heightened environmental social and governance (ESG) risk are identified, further analysis is conducted to assess whether dialogue should be initiated with the company, whether Norges Bank’s voting should be affected or whether Norges Bank should divest from the company due to the risk. Relevant information is also shared with the Council on Ethics, an independent body established by the Ministry of Finance.

Risk-based divestment

In 2025, Norges Bank divested from 58 companies following risk assessments related to ESG issues. The Bank has divested from a total of 633 companies since 2012. Since 2012, risk-based divestments have contributed positively to the cumulative return on equity management by 0.68 percentage point, or about 0.01 percentage point annually. In 2025, 14 companies were reincluded in Norges Bank’s investment universe following the reversal of divestment decisions. In total, 39 companies have been reincluded since 2012.

Read more about risk-based divestment at nbim.no.

Investment in renewable energy

Up to 2% of the GPFG may also be invested in unlisted renewable energy infrastructure. At the end of 2025, these investments accounted for 0.4% of the GPFG, up from 0.1% in 2024. For each investment, Norges Bank conducts due diligence assessments of risk factors related to health, security, environmental, corporate governance and social issues. In 2025, Norges Bank invested in two offshore wind projects under construction in Denmark and Germany and entered into agreements to invest in Brookfield Asset Management’s global energy transition Fund. In addition, Norges Bank entered an agreement to invest in the German electrical transmission system operator TenneT Germany. The investment will contribute to the expansion and maintenance of German electrical grid infrastructure.

Read more about renewable energy investments at nbim.no.

Companies

Dialogue

As a long-term investor, Norges Bank regularly meets with portfolio companies to promote good corporate governance, sustainable business models and responsible business conduct. A broad range of themes that are crucial for long-term value-creation are discussed. The aim is to improve value creation and reduce risk. In 2025, a total of 3 198 meetings were held with 1 341 investee companies. ESG-related topics were discussed at 1 498 meetings with 815 companies, accounting for 61% of the value of the equity portfolio.

Read more about the Bank’s dialogue with companies at nbim.no.

Voting

Voting is one of the most important shareholder tools to safeguard the GPFG’s assets. In 2025, Norges Bank voted on 108 325 proposals at 10 873 shareholder meetings. NBIM’s voting guidelines are publicly available.

Since 2021, NBIM has published its voting intentions five days before each shareholder meeting with a brief explanation for votes against the board’s recommendations. The GPFG’s voting intentions are available on NBIM’s website.

Read more about voting at nbim.no.

Ethical assessments

Up until November 2025, Norges Bank’s Executive Board decided whether to exclude companies from the GPFG’s investment universe or to place them under observation in line with the ethical guidelines established by the Ministry of Finance. The Board’s observation or exclusion decisions were made based on recommendations from the independent Council on Ethics, appointed by the Ministry. Norges Bank’s recommendations were used for the product-based coal criterion.

In November 2025, the government appointed a committee to evaluate the ethical framework. The committee will submit its report before 15 October 2026. Until a new framework is in place, the Ministry of Finance has established interim ethical guidelines.

Under the interim guidelines, Norges Bank cannot make decisions to exclude or place under observation but can revoke previous observation and exclusion decisions. The Council on Ethics will continue to monitor GPFG investments and inform the Bank about companies that have been identified for potential ownership activities.

Under the guidelines applicable up until November 2025, the Bank announced the exclusion of ten companies, the placement of three companies under observation, the revocation of the exclusion of one company and the closure of the observation of one company. Norges Bank was also in the process of excluding five companies when the interim guidelines entered into force.

Since 2006, the equity benchmark index has returned 2.42 percentage point less than it would have done without any ethical exclusions. On an annualised basis, the return has been 0.03 percentage point lower.

Read more about ethical assessments at nbim.no.

Work on climate risk in the Government Pension Fund Global

In 2025, NBIM published its 2030 Climate Action Plan, which builds on the results of its 2025 Climate Action Plan. The core of NBIM’s work will be active ownership to support portfolio companies in transitioning their business models to achieve net zero by 2050. Looking ahead, focus on nature, physical climate risk, adaptation and resilience, in standard-setting, risk management and engagement, will be strengthened.

Weighted according to emissions, about 73% of the fund’s investee companies’ financed emissions (scopes 1 and 2) are covered by science-based targets at year-end 2025.

Reporting on climate risk

The 2030 Climate action plan also facilitates more reporting on climate risk in the portfolio and measures implemented to handle related risks and opportunities in line with leading international standards. The GPFG’s carbon footprint is measured and stress test results against various climate scenarios are presented, including one consistent with global warming of 1.5 degrees Celsius.

Measuring carbon footprint

Carbon footprint analyses provide insight into the extent of greenhouse gas emissions of investee companies and into risks and opportunities across sectors. There are still many companies that do not report their emission data or whose reporting still varies in frequency and quality, particularly with regard to scope 3 emissions. This is why Norges Bank exclusively uses modelled figures from its data provider in the calculation of scope 3 emissions.

Norges Bank’s reporting of the GPFG’s financed emissions is in line with guidance from the Partnership for Carbon Accounting Financials (PCAF). The Bank has used a single source for reported and estimated emission data, as recommended by the PCAF.

The GPFG’s financed emissions for scopes 1 and 2 were 51 million tonnes of CO₂ equivalent in 2025, which is 4% lower than the corresponding figure for the benchmark index. The financed emissions for scope 3 are estimated at 257 million tonnes of CO₂ equivalent. Given regular annual changes to the method for estimating financed scope 3 emissions, the figures are not directly comparable.

Investee companies in the GPFG’s equity portfolio emitted 90 tonnes of CO₂ equivalent per million USD in revenue, based on data reported or estimated in 2025. This is referred to as the equity portfolio’s carbon intensity, which was 7% lower than that of the benchmark index in 2025, but 8% higher than in 2024. The latter is partly due to relative growth in utilities related to artificial intelligence. For corporate bonds, the portfolio’s emissions intensity was 92 tonnes of CO₂ equivalent per million USD in revenue, which is 15% higher than the emissions intensity of the benchmark index and 3% higher than in 2024.

Work on climate risk in real estate management in the Government Pension Fund Global

The 2025 Climate action plan sets a target for net zero emissions by 2050 for the real estate portfolio and a 40% reduction in operational carbon emissions intensity (scopes 1 and 2) by 2030. These targets were retained in the 2030 Climate Action Plan. From 2019 to 2024, the emissions intensity of the real estate portfolio fell by 25%.

Norges Bank measures transition risk by comparing its unlisted real estate portfolio with emission pathways consistent with global warming of 1.5 degrees Celsius in the Carbon Risk Real Estate Monitor (CRREM). This framework shows when buildings surpass their carbon budgets and helps the Bank prioritise upgrades and investment decisions. By the end of 2024, 40% of the real estate portfolio value was within the carbon budget.

Read more about the work on climate risk in the GPFG in the report Responsible Investment 2025 and the publication on climate and nature-related risk on the GPFG’s website.

Work on climate and climate risk issues in Central Banking

Climate change and measures to mitigate climate change have an impact on the Norwegian and global economy and hence also on Norges Bank’s core task performance.

Increasing the Bank’s understanding of the economic effects of climate change and the energy transition has been a key focus area in the Central Bank’s strategy for the 2023–2025 period. Over these three years, the Bank worked actively to strengthen its expertise and integrate climate and energy transition into the Bank’s analyses. In addition to mention in the Bank’s reports, analyses have been published on Norges Bank’s website in the form of staff memos, working papers and blog posts. See Norges Bank’s webpage on climate change and the economy for an overview. Analyses have also been conducted of climate risks’ effect on the value of the foreign exchange reserves, and new knowledge has also been shared through Norges Bank’s hosting of conferences and the Bank’s participation in the Network for Greening the Financial System (NGFS) has been strengthened.

A week of climate events was held at Norges Bank in October to mark the conclusion of the climate initiative in Strategy 2025 and NBIM’s 2025 Climate Action Plan. The main event was Norges Bank’s Climate Conference, a one-day conference on how climate change and energy transition are impacting the macroeconomy and financial markets. The main speakers were ECB President Christine Lagarde and former US Vice President Al Gore. The conference also featured presentations from leading international researchers. The Climate Week also included a researchers’ workshop on climate risk and financial institutions, held in collaboration with the IBRN, and a student seminar on how Norges Bank addresses climate change and energy transition.

Climate and monetary policy

Climate change and the transition to a low-carbon economy may result in less stable prices, particularly for electricity and food. Demand may change, partly through increased investment in renewable energy and measures to lower emissions. At the same time, potential output may be weakened by extreme weather damage and the phasing out of fossil-based productive capital. Norges Bank is tasked with keeping inflation low and stable and must take into account how such climate-related factors impact the economy when setting the policy rate, as emphasised by the Central Bank governor in her speech “Climate and monetary policy”, held at the NHH Norwegian School of Economics in October.

Norges Bank’s Regional Network contacts are asked annually about the effects of climate change and climate transition to gain better insight into the impact on the Norwegian business sector. Survey results show that most firms are affected by the climate transition in some form, for example through climate policies and changes in customer preferences. In addition, an increasing number of firms report that they are affected by changing weather patterns [In Norwegian only]. The results of the surveys indicate that climate-related factors result in an increase in overall business investment [In Norwegian only].

The climate transition is essentially an energy transition. The Bank closely monitors energy investment and energy market developments and analyses how they affect the Norwegian economy. The Bank also assesses how more extreme weather events may impact Norwegian consumer prices. Other climate-related analyses prepared by the Bank examine how climate change affects the long-term interest rate level [in Norwegian only]. There are also a number of ongoing research projects in this area. One examines how extreme weather in Norway affects household finances, while another analyses whether interest rate changes have differing effects on climate-related investment compared with other investments.

Climate risk and financial stability

Climate transition affects banks’ risk assessments through various channels. Climate risk is included as a key vulnerability in Norges Bank’s summary of financial stability assessments.

Adequate information about climate risk may reduce banks’ exposure to losses and help secure the financing of necessary transition measures. In 2025, Norges Bank focused in particular on physical climate risk related to how natural hazards and stormwater intrusion can increase property-related costs. Increased damage resulting from changes in wind and precipitation may increase insurance premiums, particularly for stormwater intrusion damage not covered by the Norwegian Natural Perils Pool. Public infrastructure maintenance and upgrade expenses can be expected to increase in the coming years. Overall, these factors may weaken homeowners’ debt-servicing ability. The Staff Memo “Damage caused by weather and climate change: Identifying homes in areas exposed to weather-related risks in Norway” uses data on stormwater intrusion exposure of dwellings to shed light on these questions.

Central banks use climate stress tests and scenarios to understand the effect of climate change on the financial system. In 2026, Norges Bank plans to use the NGFS short-term scenarios to model economic shocks in the stress test of financial system risk in Financial Stability Report 1/2026.

Responsible investment and climate risk in the foreign exchange reserves

The equity portfolio of the foreign exchange reserves is managed according to the same principles and strategies for responsible investment as the equity investments in GPFG (expectations of investee companies, voting and company dialogue). This means that the GPFG’s climate action plan, including the target that investee companies adjust their operations to ensure compliance with global net zero emissions by 2050, also applies to the equity portfolio of the foreign exchange reserves.

Decisions on risk-based divestment from individual companies implemented for the GPFG’s equity portfolio are also followed up in the equity portfolio of the foreign exchange reserves. In 2025, Norges Bank made one new risk-based divestment in the foreign exchange reserves’ equity portfolio. In addition, two companies were excluded from the foreign exchange reserves’ benchmark index and one new company was placed under observation.

Norges Bank measures greenhouse gas emissions in connection with the entire equity portfolio of the foreign exchange reserves using two different metrics, financed emissions and emissions intensity. The financed emissions of the equity portfolio for scopes 1 and 2 were 413 059 tonnes of CO₂ equivalent in 2025. Financed emissions for scope 3 was 1 989 909 tonnes. Emissions intensity for scopes 1 and 2 was 79 tonnes of CO₂ equivalent in 2025, 13% higher than in 2024.

Climate impact of Norges Bank’s operations

One of the ambitions in Norges Bank’s sustainability strategy is to reduce emissions from the Bank’s own operations, in line with the Paris Agreement. The Bank annually reports the climate impact of the Bank’s own operations in the carbon accounts. The carbon accounts are prepared in accordance with the Greenhouse Gas Protocol standard and include the offices where Norges Bank has operational control in Oslo, London, New York and Singapore. Norges Bank has selected 2019 as the reference year. This is the most recent year with normal activity and reliable underlying data.

Carbon accounts

Table 13 Annual carbon accounts for Norges Bank’ operations

1 Includes the gases CO₂, CH₄, N₂0, HFCs, PFCs, SF₆ og NF₃. Norges Bank mainly uses emission factors from the UKs Department for Energy Security & Net Zero’s (DESNZ).

2 From 2024, hotel stays include stays in flats.

3 In 2025, due to weak or deficient data quality, emissions from data centres and cloud solutions have only been confirmed for 92% of emissions. The remainder is data from 2024 without further estimation.

3 Production of banknotes also includes transport in connection with production and delivery to Norges Bank.

Greenhouse gas emissions totalled 7 802 tonnes of CO₂ equivalent at the end of 2025. This is a reduction of 19% compared with the reference year 2019 and a reduction of 30% compared with 2024. Excluding emissions sources included in the carbon accounts after 2019, the reduction in emissions from 2019 to 2025 amounts to 3 349 tonnes, or 35%.

Air travel accounted for 78% of Norges Bank’s total emissions in 2025, which is 27% lower than in the reference year 2019 and 32% lower than in 2024. The number of kilometres travelled was reduced by 5% in the period 2019 to 2025. At the same time, the data show a clear 10% increase from 2024 to 2025.

The reduction in air travel emissions from 2024 to 2025 is therefore due to an update of air travel emissions factors1, which were reduced by an average of 29% compared with 2024 factors. If the change in emission factors for air travel is excluded, air travel emissions increased by 12% in 2025.

Norges Bank’s greenhouse gas emission targets and reduction measures

In 2024, the Executive Board set a target to reduce its operational emissions by 35% per permanent employee by 2028. The target is based on emissions from the Bank’s operations in 2019 and is equivalent to a reduction from 10.3 tonnes of CO₂ equivalent per employee in 2019 to 6.7 tonnes by 2028.

Table 14 Target attainment and emissions intensity per employee

1 The number of permanent employees is given as the average of the number of permanent employees at the start and end of the year.

In 2025, Norges Bank’s greenhouse gas emissions per employee came to 6.9 tonnes of CO₂ equivalent, a 33% reduction compared with the reference year 2019. From 2019 to 2025, air travel emissions factors declined by an average of 20%, accounting for most of the emission reduction in the period.

In line with the plan for 2025, Norges Bank has emphasised awareness among its employees and improved management information. This work will be further strengthened in 2026.

Limited assurance of sustainability indicators

Norges Bank has engaged EY to perform a limited assurance engagement on sustainability information in Norges Bank’s Annual Report for 2025. See EY’s report, Independent accountant’s assurance report.

Norges Bank does not continually refer to sustainability indicators in its Annual Report. The table below refers to the reporting standards and indicators on which the information is based. Reported information is for the period between 1 January 2025 and 31 December 2025. Information provided is attested by EY.

1. 1 Air travel emissions are the product of activity data and emissions factors. Air travel emissions factors are from the DESNZ and are based on observable and quality-assured data, not realtime data. The previous set of air travel emissions factors was from 2021 data, when the number of passengers per flight had been reduced due to covid-19. This resulted in higher emissions per passenger. Updated emissions factors use data from 2023, and the higher number of passengers results in lower emissions per passenger.

1. 1 The climate-related indicator is based on IFRS S2 paragraph 29 (a) (vi) (2) Financed emissions B61 Asset management (a)

2. 2 The indicator climate-related disclosures is based on IFRS S2 paragraph 29 (a) (vi) (2) Financed emissions B61 (a) Asset management

Financial statements

Main points

Financial statements

Income statement

Balance sheet

Oslo, 5 February 2026

Ida Wolden Bache (sign)
(Governor / Chair of the Executive Board)

Pål Longva (sign)
(First Deputy Chair)

Øystein Børsum (sign)
(Second Deputy Chair)

Kristine Ryssdal (sign)

Arne Hyttnes (sign)

Nina Udnes Tronstad (sign)

Hans Aasnæs (sign)

Thomas Ekeli (sign)

Ragnhild Janbu Fresvik (sign)

Mats Bay Fevolden (sign)
(Employee representative)

Guro Heimly (sign)
(Employee representative)

Statement of cash flows

Statement of changes in equity

Notes

Note 1 General information

Introduction

Norges Bank is Norway’s central bank. The Bank is a separate legal entity and is owned by the State. The Bank’s main office is at Bankplassen 2 in Oslo, Norway.

Norges Bank shall promote economic stability and manage substantial assets on behalf of the nation. The Bank conducts monetary policy, monitors financial stability, promotes robust and efficient payment systems and financial markets and manages Norway’s foreign exchange reserves.

Norges Bank manages the Government Pension Fund Global (GPFG) on behalf of the Ministry of Finance in accordance with section 3, second paragraph, of the Government Pension Fund Act and the management mandate for the GPFG issued by the Ministry of Finance.

The GPFG shall support government saving to finance future expenditure and underpin long-term considerations relating to the use of Norway’s petroleum revenues. The Storting (Norwegian Parliament) has established the legal framework in the Government Pension Fund Act, and the Ministry of Finance has formal responsibility for the fund’s management. The Executive Board of Norges Bank has delegated day-to-day management of the GPFG to Norges Bank Investment Management (NBIM).

The Ministry of Finance has placed funds for investment in the GPFG in the form of a Norwegian krone deposit with Norges Bank (the krone account). Norges Bank manages the krone account in its own name by investing the funds in an investment portfolio consisting of equities, bonds, real estate and renewable energy infrastructure. The GPFG is invested in its entirety outside of Norway.

Transfers are made to and from the krone account in accordance with the management mandate. When the Norwegian State’s petroleum revenue exceeds the use of petroleum revenue in the fiscal budget, deposits will be made into the krone account. In the opposite situation, withdrawals will be made. Transfers to and from the krone account lead to a corresponding change in Owner’s capital in the GPFG , see note 20 Statement of changes in owner’s capital.

Norges Bank is not exposed to financial risk from its management of the GPFG. The return on the portfolio, less the management fee to Norges Bank, is transferred in its entirety to the krone account and does not affect total comprehensive income or equity in Norges Bank. The investment portfolio under management is equal to the amount on deposit in the krone account at the time in question, less the accrued management fee and deferred tax. This is presented on a separate line as an asset in Norges Bank’s balance sheet, and the krone account is presented as a liability in the same amount to the Ministry of Finance. For further information about the management mandate for the GPFG, Norges Bank’s governance structure and risk management see note 20.9 Investment risk. For further information about transactions between Norges Bank and the GPFG, see note 19 Related parties.

Approval of the financial statements

The annual financial statements of Norges Bank for 2025 were approved by the Executive Board on 5 February 2026 and approved by the Supervisory Council on 26 February 2026. The annual financial reporting for the GPFG is an excerpt of Norges Bank’s financial reporting and is included in Norges Bank’s annual financial statements as note 20 Government Pension Fund Global (GPFG).

Norges Bank’s total comprehensive income of NOK -26.2 billion will be covered by a transfer from the Adjustment Fund of NOK 26.2 billion. NOK 20.1 billion will be transferred from the Transfer Fund to the Treasury. The annual transfers and allocations for 2025 were made in accordance with the guidelines.

Note 2 Accounting policies

This note describes accounting policies, significant estimates and accounting judgements that are relevant to the financial statements as a whole and the accounting policies that are relevant for investments in subsidiaries as part of the management of the GPFG. Additional accounting policies, significant estimates and accounting judgements are included in the respective statements and notes.

Basis of preparation

Pursuant to section 4-3 of the Central Bank Act, the annual financial statements of Norges Bank have been prepared in accordance with the Accounting Act and Regulation on the financial reporting for Norges Bank (the Regulation), laid down by the Ministry of Finance.

The Regulation entails that the financial reporting of the GPFG is prepared in accordance with IFRS Accounting Standards as adopted by the EU, subject to the additions and exemptions specified in the Accounting Act and the Regulation. It sets forth that the return on the investment portfolio and the return assigned to the krone account of the GPFG shall be presented on separate lines in the income statement. Furthermore, the net value of the GPFG and the deposits in the krone account of the GPFG shall be presented on separate lines in the balance sheet, inflows to and withdrawals from the krone account of the GPFG shall be presented on separate lines in the statement of cash flows. In addition, the annual financial reporting of the GPFG shall be presented in a separate note in Norges Bank´s annual financial statements, see note 20 Government Pension Fund Global (GPFG). Moreover, subsidiaries that are included in the consolidation for the preparation of consolidated financial reporting for the investment portfolio are excluded from the consolidation in Norges Bank’s annual financial statements. See also section Accounting policies for investments in subsidiaries as part of the management of the GPFG below for the consolidation of certain subsidiaries in the GPFG.

The income statement is presented in a manner that provides the most relevant information about the Bank’s financial performance.

The annual financial statements are prepared with a closing date of 31 December, and are presented in Norwegian kroner (NOK), and unless otherwise stated, rounded to the nearest million. Rounding differences may occur.

Norges Bank’s annual financial statements are prepared under a going concern basis.

Changes in accounting policies, including new and amended standards and interpretations in the period

Accounting policies applied are consistent with the policies applied in the previous accounting year. There are no new or amended IFRS standards and interpretations that have become effective for the accounting year beginning on 1 January 2025 that have had any material effect on the Bank’s financial statements.

New and amended standards and interpretations effective from 2026 or later

IFRS 18 Presentation and Disclosure in Financial Statements
In 2024, the IASB issued a new accounting standard, IFRS 18 Presentation and Disclosure in Financial Statements. IFRS 18 will replace IAS 1 Presentation of Financial Statements. The new standard applies to annual reporting periods beginning on or after 1 January 2027. The new standard introduces several new requirements for the presentation of the financial statements and note disclosures. The most relevant are:

• A requirement to classify all income and expenses into five categories in the income statement: operating, investing, financing, income taxes, and discontinued operations.
• A requirement to present a defined operating profit subtotal.
• A requirement to disclose items defined as Management-defined Performance Measures (MPMs) in a single note in the financial statements.

Norges Bank has started the assessment of the new requirements in IFRS 18. Recognition and measurement will remain unchanged and the implementation of IFRS 18 will therefore not have an impact on Profit/-loss for the period, Total comprehensive income or Equity/Owner’s capital.

The preliminary assessment is that the Bank’s main activities – investments in the foreign exchange reserves and the provision of deposits and loans to banks – meet the definition of “main business activity” under IFRS 18. Likewise, the GPFG is considered to be an entity that invests in assets as a main business activity. Accordingly, income and expense items related to these activities will primarily be classified in the operating category in the income statement. Other income and expenses that do not fall within the operating category – such as Change in actuarial gains/-losses – are assessed to be immaterial.

IFRS 18 will be implemented from the effective date, with retrospective application as required.

Other
Other issued IFRS standards, changes in existing standards and interpretations issued with effective dates from 2026 or later are expected to be immaterial or not applicable for the Bank’s financial reporting at the time of implementation.

Accounting policies for the financial statements as a whole

Financial assets and liabilities
Recognition and derecognition
Financial assets and liabilities are recognised in the balance sheet upon becoming a party to the instrument’s contractual provisions.

Financial assets are derecognised when the contractual rights to the cash flows expire, or when the financial assets and substantially all the risks and rewards of ownership are transferred. See note 9 Secured lending and borrowing and note 20.13 Secured lending and borrowing for details on transferred assets that are not derecognised.

Financial liabilities are derecognised when the obligation is extinguished, i.e. when the obligation specified in the contract is discharged, cancelled or expires.

Purchase or sale of a financial asset where the contractual terms require settlement in accordance with normal market conditions, is recognised on the trade date.

Classification and measurement
Financial assets are classified based on the business model used for managing the assets and their contractual cash flow characteristics. Measurement at amortised cost requires that the contractual cash flows consist solely of payments of principal and interest (SPPI). Assets measured at amortised cost predominantly comprise Claims on the IMF and are assessed to satisfy the SPPI requirement. The interest terms applicable to IMF claims are standardized and determined with reference to internationally established market benchmarks, including the SDR interest rate, and contain no embedded options or features that introduce risks beyond principal and interest. Claims on the IMF are therefore measures at amortised cost in accordance with IFRS 9.

The investment portfolio of the GPFG is managed in accordance with the management mandate issued by the Ministry of Finance, the investment mandate issued by the Executive Board of Norges Bank and investment strategies issued by the management of NBIM. These mandates and strategies, including the risk management strategies, entail that financial assets are managed and evaluated on a fair value basis. The financial assets in the GPFG are therefore measured at fair value through profit or loss, except for Management fee receivable, which is not part of the investment portfolio. Management fee receivable is measured at amortised cost.

The foreign exchange reserves are managed in accordance with the principles issued by the Executive Board and are managed and their performance evaluated on a fair value basis. Other financial assets are measured at amortised cost.

Financial liabilities are measured at amortised cost, except for financial liabilities designated as at fair value through profit or loss. This applies to financial liabilities in the foreign exchange reserves that are managed and their performance evaluated on a fair value basis. For the GPFG, financial liabilities, except for Management fee payable and Deferred tax, are integrated into the investment portfolio that is managed and evaluated on a fair value basis, and are therefore designated at fair value through profit or loss. Management fee payable is measured at amortised cost. See note 20.10 Tax for information about the recognition and measurement of Deferred Tax.

Financial derivatives are measured at fair value through profit or loss.

For further specification of the classification of financial instruments, see note 6 Measurement and table 6.2 Classification of financial instruments.

Impairment
For financial assets classified as measured at amortised cost, an allowance for expected credit losses is recognised. Expected credit losses are estimated per loan and are based on the loan’s exposure at default, probability of default and loss given default. The recognised amount comprises expected credit losses within the 12 months after the reporting date. In the event of a substantial increase in credit risk since initial recognition, an expected loss allowance is recognised over the expected life of the asset.

Accounting policies for investments in subsidiaries as part of the management of the GPFG

The GPFG is an investment entity in accordance with IFRS 10 Consolidated financial statements. IFRS 10 defines an investment entity and introduces a mandatory exemption from consolidation for investment entities.

Investments in real estate and renewable energy infrastructure are made through subsidiaries of Norges Bank, which are exclusively established as part of the management of the fund. Subsidiaries are controlled by the GPFG and are included in the financial reporting for the GPFG in accordance with section 3-4 of the Regulation. For further information, see note 20.16 Interests in other entities.

Subsidiaries measured at fair value through profit or loss
Subsidiaries that invest in real estate or renewable energy infrastructure through ownership interests in other entities, are investment entities. These subsidiaries are measured at fair value through profit or loss in accordance with the principles for financial assets. Subsidiaries that invest in real estate and renewable energy infrastructure are presented in the balance sheet of the GPFG as Unlisted real estate and Unlisted infrastructure, respectively. See note 20.6 Unlisted real estate and note 20.7 Unlisted renewable energy infrastructure for supplementary policies.

Consolidated subsidiaries
Subsidiaries that perform investment-related services, and which are not investment entities themselves, are consolidated. Consolidated subsidiaries do not own, neither directly nor indirectly, investments in real estate or infrastructure for renewable energy.

Note 3 Income/expense from equities and bonds

Table 3.1 Income/-expense from equities

Table 3.2 Income/-expense from bonds

Tax expense

Norges Bank is exempt from income tax on its operations in Norway but is liable to taxes in some other jurisdictions. Tax expense comprises income tax that will not be refunded under local tax rules or tax treaties to Norges Bank. This pertains primarily to withholding tax on dividends related to the foreign exchange reserves’ equity investments.

Tax expense was NOK 41 million in 2025, compared with NOK 32 million in 2024.

Germany and Japan are the markets with the highest tax expense, amounting to NOK 13 million and NOK 12 million in 2025, respectively, compared with NOK 16 million and NOK 12 million in 2024, respectively. Norway’s tax treaties with these countries entail a tax rate of 15 percent. Tax expense in other respects refers to smaller amounts divided among several other jurisdictions.

Accounting policies for taxation are further detailed in note 20.10 Tax.

Note 4 Holdings of equities and bonds

Table 4.1 Equities

1 Equities lent is exclusively related to equity investments in the foreign exchange reserves

Bank for International Settlements (BIS)

The Bank for International Settlements (BIS) acts as a bank for central banks, and its mission is to serve central banks in their pursuit of monetary policy and financial stability by fostering international cooperation in those areas.

The BIS is a limited liability company owned by central banks. Norges Bank has 8 000 voting shares (with a face value of SDR 5 000) in the BIS, in addition to 564 non-voting shares (with a face value of SDR1 5 000), for a total of 8 564 shares. Norges Bank’s share of the total shares in the BIS was equal to 1.5 percent at year-end 2025, the same as at year-end 2024.

When the shares were issued, the BIS required payment of only 25 percent of the share capital, with the remaining 75 percent committed capital not recognised in the balance sheet. The committed capital was NOK 444 million at year-end 2025, compared with NOK 475 million at year-end 2024.

Dividends from the BIS are distributed annually. Dividends received from the BIS were NOK 45 million in 2025, compared with NOK 44 million in 2024.

Table 4.2 Bonds

1 Nominal values have been converted into NOK at the closing rate at the balance sheet date. The nominal value comprises the face value of the instrument or principal.

Bonds in Norges Bank’s balance sheet are in their entirety associated with management of the foreign exchange reserves. Norges Bank issues government debt and enters into financial contracts in the area of government debt management in the name of the Ministry of Finance. Transactions related to government debt management are recognised in the government accounts and not in Norges Bank’s income statement or balance sheet.

1. 1 Special Drawing Rights is an international type of monetary reserve currency created by the International Monetary Fund (IMF). The value of the SDR is calculated on the basis of a weighted currency basket comprising the US dollar, euro, Chinese renminbi, Japanese yen and British pound.

Note 5 Foreign exchange reserves

The foreign exchange reserves are to be available for use in foreign exchange market transactions or as part of the conduct of monetary policy, with a view to promoting financial stability and to meet Norges Bank’s international commitments. The foreign exchange reserves are divided into a fixed income portfolio, an equity portfolio and a petroleum buffer portfolio. See further discussion in note 7 Investment risk.

The petroleum buffer portfolio is intended to receive the government’s cash flow from petroleum activities in foreign currency and any transfers to and from the GPFG. The purpose of the portfolio is to provide for an appropriate management of the government’s need for converting foreign currency and NOK.

See note 8 Currency for a specification of the foreign exchange reserves’ currency breakdown.

Tables 5.1 and 5.2 show income statement and balance sheet, respectively, for the foreign exchange reserves by portfolio, and are presented as they are operationally managed by Norges Bank.

Table 5.1 Foreign exchange reserves by portfolio, income statement

Table 5.2 Foreign exchange reserves by portfolio, balance sheet

Note 6 Measurement

Introduction

Fair value for the majority of assets and liabilities is based on quoted market prices or observable market data. If the market is not active, fair value is established by using valuation techniques that maximise the use of relevant observable inputs. Estimating fair value may be complex and require the use of judgement, particularly when observable inputs are not available. The valuation risk is addressed by the control environment at Norges Bank, which is responsible for fair value measurement.

The fair value hierarchy

All securities in the foreign exchange reserves are measured at fair value. The securities have been classified in the fair value hierarchy presented in table 6.1 Foreign exchange reserves’ investments by level of valuation uncertainty. The classification is determined by the observability of the market inputs used in the fairvalue measurement:

• Level 1 comprises assets that are valued based on unadjusted quoted prices in active markets. An active market is a market in which transactions take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
• Assets and liabilities classified as Level 2 are valued using models with inputs that are either directly or indirectly observable. Inputs are considered observable when they are based on market data reflecting actual events or transactions.
• Assets classified as Level 3 are valued using models with significant use of unobservable inputs. Inputs are considered unobservable when market data are not available and the input is developed using the best information available about the assumptions that market participants would use when pricing the asset.

An overview of models and valuation techniques with their respective observable and unobservable inputs, categorised by type of instrument, is described in this note.

Table 6.1 Foreign exchange reserves’ investments by level of valuation uncertainty

1 Other comprises other assets and liabilities limited to money market instruments, including reverse repurchase agreements, deposits in banks, short-term borrowing, unsettled trades and other assets and liabilities.

At year-end 2025, the valuation uncertainty for the foreign exchange reserves was slightly higher compared with year-end 2024. This is primarily due to somewhat lower market activity for Japanese government bonds. The majority of foreign exchange reserves are associated with low valuation risk and are classified as Level 1. At year-end 2025, 99.7 percent of equity holdings and 93.4 percent of bond holdings are classified as Level 1, and valuation is thus based on quoted market prices.

Movements between levels in the hierarchy

There have been no substantial movements between levels in the fair value hierarchy.

Valuation techniques

Norges Bank has defined hierarchies for which price sources are to be used for valuation. Holdings that are included in the benchmark indices are normally valued in accordance with the index providers’ prices, while the remaining holdings of equities and bonds are valued almost exclusively using prices from other reputable external price providers. For equities traded in active markets (Level 1), the close price is used. For bonds traded in active markets, the bid price is generally used.

Below are the valuation techniques used for equities and bonds classified as Level 2 in the fair value hierarchy.

Equities (Level 2)
Equities that are valued based on models with observable inputs provided by vendors are classified as Level 2 in the fair value hierarchy. These holdings are not traded in active markets. The valuation consider various observable market inputs, such as the price of comparable equity quotes, last traded price and volume.

Bonds (Level 2)
Bonds classified as Level 2 are valued based on observable market inputs from comparable issues, in addition to direct indicative or binding quotes. These holdings usually consist of less liquid bonds than those classified as Level 1, ie where there is not an activity volume for binding trades and a low activity volume for indicative price quotes at the measurement date.

Control environment

The control environment for fair value measurement is organised around a formalised and documented valuation policy and guidelines, which are supported by work and control procedures. The portfolios managed by Norges Bank Markets contain only liquid government securities, where valuation risk is very low. Any questions are discussed by a separate management committee.

The valuation environment has been adapted in accordance with market standards and established practices for valuation. This is implemented in practice in the form of daily valuation of all holdings. These processes are scalable to market changes and are based on internal and external data solutions.

All holdings and investments are generally valued by external, independent price providers. They have been chosen on the basis of analyses performed by the Norges Bank units responsible for valuation.

Price providers are monitored on an ongoing basis through regular discussions, controls and price challenges for individual securities. For a large portion of holdings, prices from independent price providers are based on quoted market prices. For holdings that are not sufficiently liquid for the valuation to be based on quoted prices, models are used. Observable inputs are used where possible, but unobservable inputs are used in some cases, due to illiquid markets.

The valuation process is subject to numerous daily controls by the valuation departments. These controls are based on defined thresholds and sensitivities, which are monitored and adjusted in accordance with prevailing market conditions. At the end of each month, more extensive controls are performed to ensure that the valuations represent fair value in accordance with IFRS.

In NBIM, valuation memos and reports are prepared at each quarter-end, documenting the results of the controls performed and the most important sources of uncertainties in the valuations.

The NBIM investment meeting, which includes NBIM’s leader group, is held every quarter prior to the publication of the financial reporting. The committee reviews the documentation, discusses major pricing issues and approves the valuation.

Other investments

Norges Bank holds equity investments in the BIS and Swift, which are not part of the foreign exchange reserves. These investments are made by Norges Bank in its role as Norway’s central bank and to preserve Norway’s international obligations in this area. The obligations involve long-term commitments that do not have economic gain as an objective and are not, by their nature, financial investments. This is primarily related to shares in the Bank for International Settlements (BIS) which are valued at NOK 262 million and would have been allocated to Level 3 in the fair value hierarchy. Valuation is uncertain owing to a lack of activity in the market. Equities in BIS are valued using models that use a substantial degree of non-observable inputs. See note 4 Holdings of equities and bonds for further information on equities in the BIS.

Classification of financial instruments

Norges Bank’s financial assets are either classified as fair value through profit or loss (designated or mandatory) or as amortised cost. The measurement category is determined at initial recognition of the asset.

Financial liabilities shall generally be measured at amortised cost, except for financial liabilities in the foreign exchange reserves and financial derivatives, which are measured at fair value through profit or loss.

The carrying amount of financial assets and liabilities measured at amortised cost is considered a reasonable estimate of fair value, thus comparable fair value amounts have not been calculated.

Table 6.2 Classification of financial instruments

Note 7 Investment risk

The aim of the management of the foreign exchange reserves is to attain the highest possible return within established guidelines and risk limits. Investment risk is mitigated by managing and controlling the investment management risks to which Norges Bank is exposed. In addition, a well-defined division of roles and responsibilities has been established for the risk management process.

Organisation

The Executive Board has the overarching responsibility for risk management at Norges Bank and has established principles for risk management in Central Banking, including financial risk. The Executive Board also lays down the overarching principles for the management of Norges Bank’s foreign exchange reserves, including strategic asset allocation, benchmark indexes, investment universe and overarching risk measures. The management of the foreign exchange reserves and financial risk is reported quarterly to the Executive Board.

The Risk and Investment Committee is a preparatory and advisory body tasked with strengthening and improving the Executive Board’s work related to investment strategy and risk limits for the foreign exchange reserves.

The Governor is responsible for the management of the foreign exchange reserves. The Governor has operationalised the Executive Board’s principles in guidelines issued for the management of the equity-, fixed income- and petroleum buffer portfolio. Operational responsibility for management has been delegated to NBIM and Norges Bank Markets. Under the framework in the Governor’s guidelines, the equity portfolio is managed in accordance with risk management and associated processes for the GPFG, the fixed income portfolio and the petroleum buffer portfolio according to supplementary guidelines set by the head of Markets.

The division of roles and responsibilities in the risk management system is organised along three lines of defence. The first line of defence comprises the operational risk management and control activities that are performed by the operating units. The second line of defence comprises the central risk management and compliance functions, which are tasked with advising and supporting the operating units. Their task is to challenge the assessments of the first line of defence and ensure that the first line of defence performs adequate controls. The third line of defence is the internal audit function. Internal audit is placed under the Executive Board, independently of the administration, and shall assess whether risk management and compliance function as required.

Framework

The composition of the foreign exchange reserves and associated risk depends primarily on the strategic equity allocation and the portfolios’ benchmark indexes, which are both defined by the Executive Board. The strategic equity allocation of the total equity and fixed income portfolio is 20 percent.

The benchmark index for the equity portfolio is a tax-adjusted version of the FTSE ALL World Developed Market Index, limited to euro area countries, the US, the UK, Japan, Canada, Australia, Switzerland, Sweden and Denmark. The equity portfolio may be invested in cash deposits and equities listed on a regulated and recognised exchange.

The benchmark index for the fixed income portfolio is a market-weighted index of all nominal government bonds with a residual maturity of between one month and 10 years issued by France, Germany, Japan, China, the UK and the US. The fixed income portfolio may be invested in cash deposits, Treasury bills and government bonds issued by the countries in the benchmark index.

No benchmark index has been set for the petroleum buffer portfolio. The purpose of the portfolio is to provide for an appropriate management of the government’s need for converting foreign currency and NOK and for any transfers to and from the GPFG. The petroleum buffer portfolio is invested in short-term fixed income instruments.

Through management of the foreign exchange reserves, Norges Bank is exposed to various types of financial risk, including market risk, credit risk and counterparty risk. For the management of the foreign exchange reserves, risk management is defined as the management of these risks. The units with operational responsibility for management have the responsibility for managing risk in accordance with current principles and guidelines.

Risk management process

Norges Bank employs several measurement methodologies, processes and systems to control investment risk. Robust and widely accepted risk management systems and processes are complemented by internally developed measurement methods and processes.

Market risk

Market risk is defined as the risk of loss or a change in the market value of the portfolio, or parts of the portfolio, as a result of changes in equity, fixed income or foreign exchange markets, including changes in credit premiums.

Continuous monitoring, measurement and assessment of market risk are performed along multiple dimensions. By combining different and complementary risk measures, better insight into the portfolios’ risk profile is gained. Norges Bank measures both absolute and relative risk for the investments in the portfolios.

Allocation by geography and industry
The foreign exchange reserves primarily comprise investments in sovereign bonds and listed companies. In accordance with the investment management framework, the investments are diversified across several countries and currencies. The following tables show investments broken down by geography and industry.

Table 7.1 Foreign exchange reserves’ allocation by asset class and region/sovereign issuer

Table 7.2 Equity portfolio by industry

1 Includes other asset and liability items in the equity portfolio

Table 7.3 Foreign exchange reserves’ 10 largest holdings of equities

1 Percentage of the total equity portfolio.

Foreign exchange rate risk
Foreign exchange rate risk is the risk that the value of financial instruments will change owing to movements in foreign exchange rates. Norges Bank has, primarily through the foreign exchange reserves, invested in securities issued and traded in currencies other than NOK. Consequently, the value of these investments is exposed to foreign exchange rate risk. note 8 Currency contains more information on the exchange rates used and the currency distribution in the foreign exchange reserves.

Interest rate risk
A substantial portion of the foreign exchange reserves is invested in sovereign bonds issued by the US, Germany, France, the UK, Japan and China. The value of fixed income instruments is affected by changes in interest rates in these countries. The investments’ interest rate sensitivity is measured by modified duration. At year-end 2025, modified duration was 3.46 percent for the fixed income portfolio. In isolation, this means that a 1 percent fall in yields corresponds to a 3.46 percent rise in bond prices. By comparison, modified duration at year-end 2024 was 3.47.

Volatility and correlation risk
Norges Bank uses models to quantify the risk of value changes associated with the foreign exchange reserves. Volatility is a standard risk measure based on the statistical concept of standard deviation, which takes into account the correlation between different investments in the portfolio. Absolute volatility provides an estimate of how much the portfolio value can be expected to change in the course of a year, given the current portfolio composition. Relative volatility (tracking error) provides an indication of how much the portfolio is expected to fluctuate compared with its benchmark index. In accordance with the Executive Board’s principles for management of the foreign exchange reserves, the maximum expected relative volatility is set at 50 basis points for the equity and fixed income portfolios, respectively. This implies that that the relative return on the portfolios is expected to lie within the range of ±50 basis points in two out of three years.

The risk models make it possible to estimate the risk in a portfolio across asset classes, markets, currencies, securities and instruments. Risk is then expressed as a single numerical value, which takes into account the correlation between risk factors. The models use historical relationships, which areexpected to provide reliable forecasts in markets that are not experiencing substantial changes in volatility and correlation. Estimates will be less reliable in periods marked by significant market movements. Calculated volatility provides a point estimate of risk and says little about the overall risk profile. To compensate for these weaknesses, complementary models and methods, including stress tests, are used.

The risk models are regularly tested and evaluated for their ability to estimate risk. The risk measures provided here are annualised, which means that it is assumed that volatility and portfolio composition are constant over time.

Table 7.4 Portfolio risk, expected volatility

Table 7.5 Portfolio risk, expected relative volatility

At year-end 2025, expected absolute volatility was measured at 14.6 percent for the equity portfolio and 7.6 percent for the fixed income portfolio. This means that value fluctuations on the order of NOK 24 billion and NOK 43 billion, respectively, can be expected in two out of three years. In these cases, expected value fluctuations are calculated excluding expected returns. At year-end 2024, the corresponding expected value fluctuations were NOK 25 billion and NOK 56 billion, respectively. At year-end 2025, expected relative volatility for the equity and fixed income portfolios was 3 and 2 basis points, respectively, compared with 4 and 2 basis points, respectively, at year-end 2024.

Credit risk

Credit risk is the risk of loss due to an issuer being unable to meet its payment obligations.

The fixed income portfolio comprises only sovereign bonds issued by countries with high credit ratings from external credit rating agencies. The credit risk of bond investments in the foreign exchange reserves is therefore regarded as low.

Table 7.6 Bonds specified by sovereign issuer and credit rating

Counterparty risk

Counterparties are necessary for trading in markets and for ensuring effective management of liquidity, market and credit risk. Counterparty risk is defined as the risk of loss due to a counterparty default on its obligations. Counterparty risk includes the risk associated with counterparty insolvency, settlement risk and custodial risk. Counterparty risk is primarily related to securities lending, reverse repurchase agreements unsecured bank deposits, and foreign exchange- and futures contracts.

In the management of the foreign exchange reserves, a large number of counterparties are used to limit concentration. To reduce counterparty risk, requirements have been set for the credit quality of counterparties. Norges Bank’s counterparties usually have credit ratings from several independent credit rating agencies. Credit ratings of Norges Bank’s counterparties are monitored and complemented by alternative credit risk indicators.

Counterparty risk is also limited by setting exposure limits for individual counterparties. In most instances, the exposure limit is determined by the credit rating of the counterparty. Exposure per counterparty is measured daily.

Netting agreements are in place for trades in securities lending, currency contracts and reverse repurchase agreements, and there are collateral requirements for counterparty net positions with a positive market value. Minimum requirements have also been set relating to the credit quality, time to maturity and concentration of the collateral. Netting and collateral agreements are entered into for all counterparties approved for these types of trades. For securities lending transactions, a premium is added to the market value to reflect the position’s volatility, and these positions are also adjusted for netting and actual collateral received and posted when determining net exposure. See note 10 Collateral and offsetting for further information.

At year-end 2025, counterparty risk is regarded as low. Collateral has been posted in excess of the exposure in the open reverse repurchase agreements, and unsecured bank deposits almost exclusively comprise deposits with the Federal Reserve (US dollar) or with other central banks.

Table 7.7 Counterparties¹ by credit rating²

1 Counterparties in the category Brokers are defined as equity and bond brokers and futures brokers. Counterparties in other transactions are classified as Non brokers. In cases where a counterparty is used for trading securities and for other transactions, the same counterparty will be included in both categories. As counterparties are counted per legal entity, several counterparties may be included per corporate group. Counterparties that are central banks are not included in the table.

2 Median rating

Leverage
Leverage may be used to ensure effective management of the investments in the equity portfolio, but not with the aim of increasing the economic exposure to risky assets. Leverage is the difference between total net exposure and the market value of the portfolio. Leverage in the portfolio was 0.06 percent at year-end 2025, compared with 0.10 percent at year-end 2024.

Sale of securities that Norges Bank does not own (“short sale”)
The sale of securities that Norges Bank does not own is not permitted in the management of the foreign exchange reserves.

Liquidity risk

Liquidity risk is the risk of being unable to meet financial obligations at the agreed time. As a central bank, Norges Bank is not exposed to this type of liquidity risk in local currency. There is little or no liquidity risk associated with the Bank’s liabilities, which are primarily in NOK. The majority of assets are held in foreign currency and are highly liquid financial instruments. They may be realised at short notice without a substantial change in value, and their associated liquidity risk is therefore regarded as low. Assets in foreign currency are regarded as sufficient for meeting foreign currency obligations.

Climate risk

Climate risk is defined as the risk related to future physical climate changes and changes related to the transition to a low-carbon society.

The Executive Board has decided that the equity portfolio in the foreign exchange reserves shall be managed according to the same principles and strategies for responsible management as the equity investments in the GPFG. Among other things, it means that the Bank’s work with responsible management is based on a long-term goal that the companies in the investment portfolio align their operations with the goals of the Paris Agreement. The fixed income portfolio in the foreign exchange reserves consists exclusively of government bonds, and climate related issues will have little effect on the composition of the bond portfolio.

Other risk

Credit risk associated with lending to banks
Credit and counterparty risk associated with F-loans and intraday/overnight loans (D-loans) is managed by requiring collateral for such loans, in the form of securities pledged to Norges Bank. The total lending facility for banks is determined by collateral pledged to Norges Bank, F-deposits and deposits with the Scandinavian Cash Pool.

Norges Bank stipulates more detailed terms for pledging securities and fund units as collateral for loans in Norges Bank pursuant to section 6 of the Regulation on the Access of Banks to Borrowing and Deposit Facilities in Norges Bank etc. The current guidelines have been issued in Norges Bank’s Circular 4/2024 from October 2024. See note 12 Loans and deposits for more information.

The rules for pledging collateral are intended to limit Norges Bank’s risk associated with lending to banks and facilitate appropriate levels of bank borrowing. Risk is limited, since only high-quality securities are eligible and since the loan value is lower than the market value of the collateral (haircut).

Loans to the IMF
The Kingdom of Norway is a member of the IMF. Norges Bank shall, in accordance with the Central Bank Act, manage the country´s rights and obligations as a result of membership in the IMF. This includes making currency available for IMF lending. Norges Bank considers the risk related to IMF loans to be low. See note 14 International Monetary Fund (IMF) for further information.

Expected credit losses
Financial assets measured at amortised cost
Financial assets measured at amortised cost are allocated on the reporting date to stages 1, 2 or 3.

On initial recognition, assets are allocated to stage 1. Stage 1 requires an estimation of a 12-month expected credit loss. The expected loss in stage 1 reflects the entire loss on an asset weighted by the probability that the loss will occur in the next 12 months. On each reporting date, an assessment shall be made of whether the credit risk of an asset has increased significantly since initial recognition. If this is the case, the exposure must be moved to stages 2 or 3. Stages 2 and 3 require estimation of an expected credit loss over the entire life of the exposure.

Table 7.8 Expected credit loss for financial assets measured at amortised cost

Claims on the IMF comprise exclusively Norges Bank’s financial assets relating to the IMF, primarily the IMF subscription (quota) and Holding of Special Drawing Rights (SDRs). Norges Bank has not incurred any realised losses on these assets historically.

For Lending to banks, as part of the Bank’s liquidity management, counterparties exhibit high credit rating and are required to post collateral. See the section Credit risk associated with lending to banks above for a description of the collateral requirement.

The line item Other in Table 7.8 consists mainly of the Management fee, GPFG. For further information, see note 19 Related parties.

At year-end 2025 and 2024, the financial assets measured at amortised cost are allocated to stage 1. Based on historical loss experience, the IMF’s financial strength and creditworthiness, as well as the collateral requirements applicable to loans to banks, no expected credit loss allowance has been recognised.

IMF loan commitments
IMF loan commitments are described in note 14 International Monetary Fund (IMF). Total loan resource commitments amount to NOK 101.8 billion at year-end 2025, of which NOK 7.7 billion has been drawn on and is presented under the line item Claims on the IMF in table 7.8. As noted above, Norges Bank has never incurred a realised loss on loans to the IMF. Based on historical experience and IMF’s financial position, no expected credit loss allowance has been recognised.

Note 8 Currency

Table 8.1 Foreign exchange reserves by currency

Total comprehensive income is affected by exchange rate movements. A 1 percent depreciation of NOK against all currency crosses will result in a positive impact on the income statement of around NOK 7 billion, and a corresponding negative impact on the income statement from a 1 percent appreciation of NOK.

Table 8.2 Exchange rates

1 Percentage change in the exchange rate.