Norges Bank Investment Management (NBANK) H1 2024 earnings summary

Executive summary

• Achieved an 8.6% total return in H1 2024, with market value rising to 17,745 billion kroner after management costs.

• Equity investments delivered strong returns, especially in technology stocks, while fixed income and renewable energy infrastructure underperformed.

• The fund remains diversified across equities, fixed income, real estate, and infrastructure, with a focus on responsible investment and risk management.

Financial highlights

• Total return for H1 2024 was 8.6% (1,478 billion kroner), with market value rising from 15,765 billion to 17,745 billion kroner.

• Equity investments returned 12–12.5%, while fixed income returned -0.6% and unlisted renewable infrastructure returned -17.7%.

• Inflows before management costs totaled 711 billion kroner, with 192 billion kroner from government capital inflow.

• Net income for H1 2024 was 1,785 billion kroner.

• Management costs for H1 2024 were 4.3 billion kroner, or 4.5 basis points of assets under management.

Outlook and guidance

• Continued focus on responsible investment amid climate and regulatory challenges.

• Anticipates ongoing market volatility due to interest rate fluctuations, climate risks, and risk models indicating an expected annual fluctuation of 10.6% in portfolio value.

• Policy rates may remain higher for longer, impacting fixed income and real estate valuations.