Good afternoon and welcome to DNB's Pre-close Call for the Third Quarter. Just to remind you that the reason for this call is to remind you of what we have already shared with the market and some relevant public information and data which could possibly affect the third quarter results. There will be no new information during this call. The script from the call will be published on our IR website. As usual, I will start with NII in capital and Anne will go through the rest of the P&L. Starting with NII, there is one more interest day in the third quarter compared to the second quarter, which will have a positive effect of approximately NOK 130 million. On the lending volume side, Q2 growth was 1.7% FX-adjusted.
Keep in mind that activity level typically is a bit lower in Q3, especially on the corporate side due to the summer holidays. Statistics Norway reports a stable development in credit demand for both households and corporate. Per August, last 12 months' household growth was 4.2% and corporate growth was 2%. So far in the quarter, the NOK has strengthened versus the U.S. dollar, and this will have a negative effect on the NII. The FX split in the loan portfolio for the second quarter was 8% U.S. dollars, 7% euro, and 6% Swedish kroner. The key policy rate was cut by 25 basis points from 4.5% to 4.25% in June, and our corresponding customer repricing of up to 25 basis points on both loans and deposits took effect from August 25th.
Furthermore, the central bank cut the key policy rate by another 25 basis points in September, and our corresponding customer repricing of up to 25 basis points on loans and deposits will take effect from November 18th. DNB Carnegie expects one additional 25 basis points cut to the key policy rate in June next year to end at a terminal level of 3.75%. With this latest policy rate decision, the central bank published an updated monetary policy report, including a slightly amended and higher rate path, which now indicates a one 25 basis points cut in 2026, one in 2027, and one in 2028. Moving over to capital, in the second quarter, we reported a CET1 ratio of 18.3%, well above the NFSA expected level of 16.5%. The higher risk weight floor on mortgages became effective on July 1st and is expected to have a negative effect of 60 basis points on CET1.
Based on the FX development quarter to date, there will be a slight positive effect on CET1. We repeat the FX sensitivity on CET1. When there is a 10% change in FX, there is approximately 20 basis points change in CET1 ratio. We also finalized the 1% share buyback program that we announced in June during the quarter, but the capital cost was taken in the second quarter. Over to you, Anne.
Sure, thanks, Rune. General comment on net commission and fees to start. Generally, activity levels tend to be lower in the third quarter compared to the second quarter, impacting fee levels negatively. Financial instruments at fair value, starting with customer revenues in DNB Carnegie, or FICC, also typically see a seasonally lower activity level in the third compared to the second quarter. The mark-to-market effects on the FX 81s and the basis swaps were announced last week. The basis swaps were a positive NOK 264 million, while the FX 81s were a NOK -136 million. A reminder on the outstanding FX 81s, we have $700 million outstanding and SEK 4.95 billion outstanding. Moving on to costs, a seasonally lower activity level in the third quarter, all else equal, typically leads to somewhat lower costs.
DNB Carnegie's macro team expects salary inflation in Norway to come in at 4.8% in 2025. As communicated the past two quarters, we expect to incur non-recurring integration costs related to Carnegie of NOK 250 million for the full year 2025. Year to date, per the second quarter, we have seen such non-recurring costs of approximately NOK 170 million. A reminder on pension expenses. As previously mentioned, normalized pension expenses are expected to be approximately NOK 500 million in a quarter. The closed defined benefit compensation scheme is primarily linked to the development in global equities. Asset quality, there's really no change in our message on asset quality. The portfolio is carefully monitored, and we are still generally comfortable with the risk in the portfolio.
As you know, impairments will vary from quarter to quarter, driven by potential changes to macro input factors in the ECL model and/or company-specific events, as you've seen in past quarters. As we've said previously, given the elevated level of uncertainty driven by the global macro picture, it would be natural to see more company-specific events. Again, we do not see any systemic areas of concern in our portfolio. Finally, a kind request or reminder to please submit your consensus estimates to Rune by close of business on this coming Friday, October 10th. That marks the end of the call. We thank you very much for attending and wish you all a nice day ahead. Thank you.
Thank you.