Good afternoon, everyone, and welcome to DNB's pre-close for the third quarter. There will be no new information during this call. The reason for this call is to remind you of what we have already shared with the market and some relevant public available data. The script for the call will be published on our IR website. As always, I will start with the NII and capital, and Anne will go through the rest of the P&L. Okay, starting with net interest income, there is one more interest day in the third quarter compared to the second. This is expected to impact the third quarter NII positively by approximately NOK 120 million.
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Yeah. Thank you. On the lending volume side, we saw FX-adjusted growth of 1.4% in the second quarter, 0.6% in the Personal C ustomers, 1.5% in Corporate Customers Norway, and 3% in the Large Corporates. Keep in mind that activity levels tend to be a bit [crosstalk].
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[crosstalk] lower in the third quarter. So far in the third quarter, we've seen a fairly stable development in the average NOK. The FX split in the loan portfolio for the second quarter was 8% U.S. dollars, 7% euro, and 6% SEK. Following the central bank's decision to raise the key policy rate by 25 basis points to 4.25% on May 6th, we announced a customer repricing of loans and deposits of up to 25 basis points. This repricing became effective from July 12th and will thus have an impact in the third quarter. With the central bank's policy rate decision today, the key policy rate was increased by another 25 basis points to 4.50%.
They stated the following: It will likely be necessary to keep the policy rate elevated for a time, and the committee is prepared to raise the policy rate further if needed to bring inflation down to the 2% target within a reasonable time horizon. The policy rate forecast is somewhat higher than the one published in June, clearly indicating a higher for longer interest rate path scenario. DNB Carnegie's macro team expect 4.50% to be the peak, and in the longer term, they still expect two 25 basis points cuts in late 2027 to stabilize at the terminal rate of 4%. We continue to see strong competition in the bank market. Over to capital. In the second quarter, we reported a CET1 ratio of 17.4%, 100 basis points above the NFSA expected level of 16.4%.
Based on the end of period FX development so far in the quarter, there will be a small positive effect on CET1. To repeat the FX sensitivity on CET1, when there is a 10% change in FX, there is approximately 20 basis points change in CET1. On July 14th, we announced the initiation of a 1% share buyback program. The capital cost of approximately 40 basis points was taken in the second quarter. The current program will be completed by October 16th. Now to you, Anne.
Sure. Starting with a general comment on net commission and fees. Generally, activity levels tend to be lower in the third quarter compared to the second quarter, impacting fee levels negatively. On financial instruments at fair value, starting with customer revenues in DNB Carnegie or FICC, this typically sees a seasonally lower activity level in the third quarter compared to the second quarter and is of course also impacted by market volatility. The mark-to-market effects on the AT1s and the basis swaps will be announced shortly after quarter end, as we always do. A reminder on the outstanding FX AT1 amounts. We have $700 million outstanding and SEK 4.95 billion AT1s outstanding.
Moving on to costs. A seasonally lower activity level than we typically see in the second quarter, all else equal, typically leads to somewhat lower costs in the third quarter. DNB Carnegie's macro team expects salary inflation in Norway to come in at 4.6% [crosstalk].
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[crosstalk] in 2026 and 4.1% in 2027. As communicated previously, we expect to incur integration costs related to Carnegie of up to NOK 200 million in 2026. Year- to- date, for the second quarter, we've seen NOK 77 million . A reminder on pension expenses, as previously mentioned, normalized pension expenses are expected to be approximately NOK 500 million per quarter. The closed defined benefit compensation scheme is primarily linked to the development in global equities. On asset quality, there's really no change in our message on asset quality compared to what we presented at our second quarter release. 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. We have a couple of miscellaneous items on the call. The first is, as announced in July, we've entered into an agreement to divest our 20% shareholding in Luminor. As a consequence, Luminor will no longer be accounted for through the equity method in DNB's financial statements, but rather as held for sale. We expect to recognize an accounting loss of approximately NOK 1 billion in the third quarter on the line titled "Profit from investment accounted for by the equity method." Upon completion of the transaction, we expect a positive CET1 effect of approximately 20 basis points. Completion of the transaction is subject to obtaining the necessary regulatory approvals. The second miscellaneous item is on tax.
As communicated with our second quarter release, we expect the tax rate for the third and the fourth quarter of 2026 to be 22%, and for the full year 2026 and following years to be 23%. Finally, a kind request or reminder to please submit your consensus contribution by the end of business on Wednesday, October 7th, to me. That marks the end of our call. We thank you very much for attending and wish you a good day ahead. Take care.
Thank you.