Right, everyone. Welcome to DNB's pre-close call for the second quarter. This call will not contain any new information. This is just a reminder to you of what we have communicated that might affect this quarter's result. Just a general reminder before we start with the NII, and that is that the Carnegie figures will be fully included and integrated in the financials from Q2. As you remember, in Q1, only the first month of Carnegie figures were included. I'll start with NII and continue with capital, and then Anne will go through the rest of the P&L. On the NII, there will be one more day of interest compared to the first quarter, which will have an effect of approximately 130 million. On the volume side, just to remind you that in the first quarter, the group had a total loan growth of 0.5% FX adjusted.
Statistics Norway reported last 12 months' credit growth per April at 4.1%, for which household was 4.2% and corporate was 2.7%. The NOK has strengthened versus the US dollar during the quarter, and this will have a negative effect on the NII. The FX split in the loan portfolio per first quarter was 8% US dollars, 6% EUR, and 6% SEK. On the margin side, central bank rate has been unchanged at 4.5% during the quarter, and DNB Carnegie expects the key policy rate to remain stable at 4.5% until September and expects 25 basis point cuts in September and December, and one more additional cut in March 2026, which is expected to stabilize at 3.75%. We have mentioned the other NII during the pre-calls over the last few quarters, in particular on the amortization effect and fees.
Amortization effects and fees typically are driven by activity level in the large corporates, both in terms of refinancing and consequently amortization of fees and new financing, which is fees. After a high growth in the fourth quarter in LCI, there was a high level of refinancing in the first quarter, which positively affected the amortization fees. On the capital side, in the first quarter, we reported a CT1 ratio of 18.5% versus the Norwegian FSA's expectations of 16.7%. The implementation of the CRR3 or Basel IV and migration of the S-Banken portfolio to IRB models is expected to have a neutral effect this quarter. Positive FX effects on CT1 due to strengthening of NOK or weakening of the US dollar. Here, the FX sensitivity is approximately when there is a 10% change in FX for the Norwegian kroner, that will have approximately 20 basis points effect on the CT1.
As stated earlier, we have sent an application to the Norwegian FSA to buy back up to 1% of outstanding shares, and we will inform you when we initiate a share buyback program. Just a reminder of future headwinds. Ministry of Finance decisions regarding higher risk weight floors for mortgages from 20% to 25% will have a negative effect on the CT1 ratio of 60 basis points from the third quarter. And over to you, Anne.
Yep. Starting with a general comment to commission and fees, generally, activity levels tend to be higher in the second quarter compared to the first, which impacts fees positively. Moving on to net gains on financial instruments at fair value, and starting with customer revenues in DNB markets, or FICC, similarly, typically sees a seasonally higher activity level in the second quarter compared to the first. The mark-to-market effects on the AT1s and the basis swaps will be announced shortly after quarter end, but a reminder on the outstanding FX AT1s. We have $700 million AT1s outstanding and SEK 4.95 billion AT1s outstanding. Keep in mind, of course, that the US dollar has weakened compared to the NOK quarter to date. Moving on to costs.
A seasonally higher activity level in the second quarter compared to the first, all else equal, typically leads to somewhat higher costs. Market expectations for salary inflation in Norway for 2025 is now at 4.5%, according to the central bank's latest estimates. The annual centralized wage negotiation process was concluded in April with a frame agreement of 4.4%, and the wage adjustment for DNB will take full effect from May 1st. As communicated with our first quarter release, we expect to incur one-off costs related to the Carnegie integration in 2025, so the full year 2025, of approximately NOK 250 million, of which NOK 77 million were booked in the first quarter. A reminder on pension expenses that normalized pension expenses are expected to be slightly higher than NOK 400 million in the quarter, and the closed defined benefit compensation scheme is primarily linked to the development in global equities.
Impairments and asset quality. There is really no change in our message on asset quality. The portfolio is carefully monitored, and we are still comfortable with the risk in the portfolio. As you know, impairments will vary from quarter to quarter or are driven by potential changes to macro input factors in the ECL model and/or company-specific events. Given the elevated level of uncertainty driven by the global macro picture, it would be natural to see more company-specific events, as we also stated last quarter. Again, we do not see any systemic areas of concern in our portfolio. Finally, a kind reminder request to please submit your consensus estimates to Rune by end of business on Friday, June 20, so this coming Friday. With that, we thank you for your attention and wish you a good rest of the day. Thank you.
Thank you.