Norges Bank Investment Management (NBANK) H1 2025 earnings summary

Executive summary

• Fund value decreased by NOK 156 billion in H1 2025, ending at NOK 19,586 billion, mainly due to negative currency effects despite positive investment returns.

• Returned 5.7% in H1 2025, slightly underperforming the benchmark by 0.05 percentage points.

• Equities comprised 70.6% of assets, fixed income 27.1%, unlisted real estate 1.9%, and unlisted renewable energy infrastructure 0.4%.

• Ethical and responsible investment practices were reviewed, with divestments in Israeli companies and government bonds.

• The fund's mission remains focused on maximizing returns after costs within acceptable risk, managed responsibly for future generations.

Financial highlights

• Total market value at H1 2025: NOK 19,601.8 billion across 70 countries and 11,308 investments.

• Accounting return of NOK 698 billion; negative currency impact of NOK 1,010 billion offset gains.

• Net inflow from the government was NOK 160 billion; management fees paid totaled NOK 4 billion.

• Net real return since 1998 annualized at 4.12%; last 12 months at 7.45%.

• Management costs annualized at 4.3 basis points of assets under management.

Outlook and guidance

• Further measures to reduce portfolio complexity and enhance responsible investment are expected.

• Ongoing review of investments in Israeli companies in response to geopolitical developments.

• Expected volatility for the portfolio is 11.4%, or NOK 2,200 billion, with relative volatility at 43 basis points, both within mandate limits.

• The fund continues to commit capital to future renewable energy infrastructure projects, anticipating future income streams.