Norfund ended 2025 with a record-high committed portfolio of NOK 45.5 billion and value-adjusted equity of NOK 60.3 billion.
The underlying operating profit (excluding currency effects) was NOK 1.55 billion, up 10% from last year. However, a strong Norwegian krone led to significant negative currency effects, resulting in a net loss after tax of NOK -1.23 billion.
The IRR in investment currency was 7.6%, while in NOK it was -3%. Norfund’s investments continue to deliver strong development impact, with a portfolio composition aligned with strategic targets for equity share, LDCs, Sub-Saharan Africa, and renewable energy.
Currency effects and portfolio valuation
The result for 2025 was heavily impacted by currency effects, as the Norwegian krone strengthened by 11.2%against Norfund’s primary currency, the US dollar. Currency effects in the profit amounted to NOK -2.78 billion, reversing last year’s positive impact of NOK 2.7 billion.
Excluding currency effects, the underlying result for 2025 is NOK 1.55 billion, an increase of NOK 136 million compared to 2024. The improvement in underlying results is mainly driven by higher income and lower realized losses, somewhat offset by increased operating costs and negative value changes in the portfolio.
Norfund’s principle of recording investments at the lower of historical cost and fair value means that unrealized effects are not fully reflected in the accounts. If Norfund had recorded the investments at fair value, the 2025 value increase would have been an additional NOK 0.95 billion, giving an underlying result of NOK 2.5 billion.
Annual results, currency effects, and excess values
Operations in 2025
Total revenues increased to NOK 2,253 million, up NOK 166 million from 2024. The increase comes from both interest income and dividends from investments, offset by less realized gains from exits.
Interest income stems from investments through loans and liquidity placements, including a bond portfolio in foreign currency. The loan portfolio grew by 10% to NOK 12,551 million, while the equity/fund portfolio reached NOK 24,036 million.
Realized gains from the portfolio amounted to NOK 161 million, of which NOK 75 million are realized positive currency effects.
Cost and value changes
Operating costs increased to NOK 438 million. The increase comes mainly from growth in employees and thereby personnel costs, increased external assistance for projects aligned with increased investments, and a VAT correction for the years 2021-2024 (total NOK 24.5 million).
Annual write-downs as a share of portfolio cost were stable at 1.7% (2024: 1.8%).
Total value changes for investments and receivables in 2025, including currency effects, were negative NOK 2,961 million, compared to positive NOK 2,158 million in 2024.
Underlying value changes excluding currency effects were negative NOK 273 million, compared to negative NOK 143 million in 2024.
Changes in value in the portfolio, liquidity placements, and other receivables
Norfund’s equity
Norfund’s total balance as of the end of 2025 was NOK 52,861 million, up NOK 3,742 million from 2024. Investments and liquidity placements accounted for 40,711 million of the total balance. However, the value-adjusted equity based on estimated market values for Norfund’s portfolio was NOK 60,268 million as of 31.12.2025.
Illustration of Norfund’s balance
Internal rate of return (IRR)
In 2025, Norfund had an IRR across the mandates calculated in investment currency in 7.6%, compared to 8.4% in 2024. Calculated in NOK, Norfund obtained an IRR of -3% during 2025, compared to 19.7% in 2024.
Since inception, the IRR across mandates is 5.3% in investment currency and 7.8% in NOK.
The development mandate, had an Internal Rate of Return (IRR) calculated in investment currency of 7.2% in 2025, compared to 8.3% in 2024. Since inception, the IRR for the mandate is 5.2% in investment currency and 7.7% in NOK.
The Climate Investment Fund, had an Internal Rate of Return (IRR) calculated in investment currency of 11.4% in 2025, compared to 9.3% in 2024. Since inception, the IRR for the climate mandate is 13.3% in investment currency and 9.7% in NOK.
