Content
Published:
This is an archived release.
Very good results for financial corporations
Norwegian banks’ profit in the second quarter of 2010 amounted to NOK 8.5 billion. This is the highest quarterly profit since measurements began in 1995. The finance companies also delivered the best quarterly result ever, while the mortgage companies more than doubled their profit from the previous quarter.
The profit for the Norwegian banks was NOK 2.3 billion higher in the second quarter of 2010 than the previous quarter, and NOK 2.1 billion higher than the second quarter last year. Other operating income contributed the most to the increased profit. As a percentage of total assets, profit accounted for 0.22 per cent; up from 0.17 per cent in the previous quarter. In comparison, this share was only 0.03 per cent in the fourth quarter of 2008.
The Norwegian banks’ accumulated profit was NOK 14.7 billion by the end of the second quarter of 2010, compared to NOK 11.1 billion by the end of the second quarter last year.
Increase in other operating income
Other operating income amounted to NOK 7.2 billion in the second quarter of 2010; an increase of NOK 5.9 billion from the first quarter. This item includes i.a. income from shares and other securities with variable returns and gains on sale of stocks, shares and equity certificates. In the second quarter, these items accounted for NOK 1.7 and 2.7 billion respectively.
High and stable net interest income
Norwegian banks’ interest income increased from NOK 28.4 billion in the first quarter this year to NOK 29.9 billion in the second quarter. The interest expenses increased in the same period from NOK 16.1 to 18.1 billion. The net interest income was thus close to NOK 11.9 billion in the second quarter. This is an increase from NOK 11.8 billion in the first quarter this year, but a decrease from NOK 12.2 billion from the second quarter last year. The level of net interest income is high despite the marginal increase from the previous quarter, and thereby contributes to the good results.
Slightly higher loan losses
In the second quarter this year loan losses amounted to NOK 1.2 billion; up from NOK 1.0 billion in the first quarter.
Losses on securities and currency
The banks had net losses on securities and currency amounting to NOK 0.5 billion in the second quarter this year, compared to gains of NOK 1.4 billion in the previous quarter. A drop in both gains on shares and other securities and currency caused the loss, while gains on other financial assets and liabilities on the other hand increased during the second quarter.
Net interest and credit commission income |
Losses on loans | Net gain on short-term papers, bonds and other interest bearing securities |
Profit and loss for the financial period |
Profit and loss as percentage of total assets |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Q2 2007 | 9 963 | 104 | 414 | 5 608 | 0.19 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q3 2007 | 11 088 | 21 | -1 479 | 5 357 | 0.18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q4 2007 | 11 166 | 32 | -789 | 6 698 | 0.23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q1 2008 | 11 801 | 323 | -2 200 | 3 921 | 0.12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q2 2008 | 11 211 | 429 | 1 171 | 6 580 | 0.20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q3 2008 | 13 072 | 1 014 | -1 638 | 4 587 | 0.13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q4 2008 | 14 177 | 4 569 | -1 482 | 1 260 | 0.03 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q1 2009 | 12 158 | 2 982 | 853 | 4 623 | 0.13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q2 2009 | 12 239 | 1 711 | 913 | 6 451 | 0.17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q3 2009 | 12 563 | 2 649 | 1 151 | 5 699 | 0.15 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q4 2009 | 12 120 | 1 590 | 456 | 3 897 | 0.10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q1 2010 | 11 800 | 951 | 485 | 6 213 | 0.17 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Q2 2010 | 11 852 | 1 225 | 31 | 8 515 | 0.22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sharp increase in mortgage companies’ profit
The mortgage companies’ result in the second quarter of 2010 was NOK 1.6 billion; up from NOK 0.8 billion in the first quarter. The result as a percentage of total assets was 0.12 per cent in the second quarter compared to 0.6 per cent in the previous period. The accumulated result to the end of the second quarter was NOK 2.4 billion. This is the highest profit ever measured. The results for the mortgage companies have since the fourth quarter of 2008 been affected by the introduction of the International Financial Reporting Standards (IFRS), which can lead to fluctuations in book values for liabilities and assets at fair value.
Increased gains on securities and currency contributed the most to the good result. Gains on securities and currency amounted to NOK 0.7 billion in the second quarter of 2010; up from a loss of NOK 0.5 billion in the previous period.
The net interest income has been quite stable since the fourth quarter of 2008, and amounted to NOK 1.9 billion to the second quarter.
Very good results for the finance companies
The profit for the finance companies amounted to NOK 650 million during the second quarter of 2010; an increase of NOK 43 million from the first quarter and the highest profit ever recorded. Profit accounted for 0.44 per cent of the total assets in the second quarter of 2010 compared to 0.42 per cent in the previous period.
The net interest income is high and stable, and amounted to NOK 1.8 billion in the second quarter this year.
Tables
The statistics is now published as Banks and mortgage companies.
Contact
-
Statistics Norway's Information Centre
E-mail: informasjon@ssb.no
tel.: (+47) 21 09 46 42