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54288
Strong results for Norwegian banks
statistikk
2011-02-14T10:00:00.000Z
Banking and financial markets
en
orbofrk, Financial corporations, accounts, banks, mortgage companies, finance companies, state lending institutions, period result, profit and loss accountFinancial institutions and other financial corporations, Banking and financial markets
false

Financial corporations, accounts, Q4 2010

As from 2016 the statistics is published with Banks and mortgage companies.

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Strong results for Norwegian banks

Norwegian banks’ profit in the fourth quarter of 2010 amounted to NOK 7.9 billion. This was NOK 3.9 billion higher than the result in the equivalent quarter the previous year. Most of the increase came from lower loan losses, high net interest income and moderate costs.

Banks. Net interest income, profit and losses on loans Q1 2005-Q4 2010. NOK million

In 2010, Norwegian banks’ accumulated profits were NOK 28.8 billion. For comparison, the accumulated profits were NOK 20.6 billion at the same time last year.

As a percentage of total assets, profit in the fourth quarter 2010 accounted for 0.22 per cent. In the same quarter last year this share was 0.10 per cent. On average, the result as a percentage of total assets has been about 0.17 per cent over the last 10 years.

Banks. Selected items from the profit and loss statement. Q3 2003-Q4 2010. NOK million and per cent
 
  Net interest
and credit
commission income		 Losses
on loans		 Net gain
on securities
and currency		 Profit and
loss for
the financial
period		 Profit and loss
as percentage of
total assets.
Per cent
 
Q3 2003 8 222 1 651  569 2 440 0.14
Q4 2003 7 680 1 498  972 3 069 0.19
Q1 2004 7 621  474  932 3 558 0.20
Q2 2004 7 864  236  629 3 367 0.18
Q3 2004 8 433  232  613 4 127 0.23
Q4 2004 8 193  222  882 3 974 0.24
Q1 2005 8 042  142  892 4 036 0.21
Q2 2005 7 822 -778 1 169 4 918 0.25
Q3 2005 8 384 -369 1 211 4 988 0.24
Q4 2005 8 824 -324 1 240 5 700 0.28
Q1 2006 8 333 -289 1 504 5 065 0.22
Q2 2006 9 313 -137  283 4 799 0.20
Q3 2006 9 181 -528  849 5 007 0.20
Q4 2006 9 513 -399 1 597 7 076 0.27
Q1 2007 9 498 7 1 481 5 358 0.19
Q2 2007 9 963  104 1 432 5 608 0.19
Q3 2007 11 088 21  143 5 357 0.18
Q4 2007 11 166 32  576 6 698 0.23
Q1 2008 11 801  323 -2 139 3 921 0.12
Q2 2008 11 211  429 2 247 6 580 0.20
Q3 2008 13 072 1 014 -168 4 587 0.13
Q4 2008 14 177 4 569 -1 454 1 260 0.03
Q1 2009 12 158 2 982 3 284 4 623 0.13
Q2 2009 12 239 1 711 2 557 6 451 0.17
Q3 2009 12 563 2 648 3 020 5 698 0.15
Q4 2009 12 228 1 644 1 571 3 862 0.10
Q1 2010 11 800  951 1 416 6 213 0.17
Q2 2010 11 852 1 306 -511 8 462 0.22
Q3 2010 13 436  708 2 413 6 290 0.17
Q4 2010 12 856  815 1 167 7 857 0.22
 

Lower loan losses

Norwegian banks’ loan losses in the fourth quarter of 2010 were NOK 815 million; a moderate rise from NOK 708 million in the previous quarter. In the same quarter last year the loan losses were 1.6 billion. To find lower loan losses we need to go back to the second quarter of 2008.

High, stable net interest income

Norwegian banks’ interest income increased strongly in the fourth quarter to NOK 53.2 billion and 40.4 billion respectively. The net interest income fell moderately from NOK 13.4 billion to 12.9 billion from the third to fourth quarter of 2010. With the exception of the third quarter of 2010, we will not find higher net interest income since the fourth quarter of 2008.

As a percentage of total assets, the net interest income accounted for 0.35 per cent in the fourth quarter of 2010. This share has been stable between 0.32 and 0.38 per cent the last 5 years.

Banks. Gain/loss on securities and currency Q1 2005-Q4 2010

Lower gains on securities and currency

Norwegian banks’ total gains on securities and currency amounted to NOK 1.2 billion in the fourth quarter of 2010. In the third quarter, the gain was NOK 2.4 billion. The accumulated gain on securities and currency in 2010 was NOK 4.5 billion, whereas the accumulated gain in 2009 was NOK 10.4 billon.

In 2010, the net gain on currency amounted to NOK 3.6 billion. The gain fell from NOK 7.1 billion in 2009.

Good results also in mortgage companies

Mortgage companies’ profits in the fourth quarter of 2010 rose to NOK 2.2 billion. As a percentage of total assets, profits accounted for 0.15 per cent, up from 0.06 per cent in the previous quarter.

In 2010, the accumulated profits in mortgage companies were NOK 5.4 billion; a rise from NOK 2.1 billion the previous year.

 

Net losses on currency of NOK 7.1 billion in 2010 were more than offset by a net gain on other financial instruments of NOK 7.9 billion. Loan losses in 2010 were only NOK 138 million, down from NOK 231 million in 2009.

The net interest income in 2010 was NOK 8.2 billion; almost the same level as in 2009. The level of net interest income has been high in all quarters in 2010.

Profits in finance companies in 2010 at same high level as in 2009

Profits in Norwegian finance companies in 2010 were NOK 2.0 billion; almost as high as in 2009. Net interest income fell substantially from NOK 7.4 billion in 2009 to NOK 5.6 billion in 2010. Net provision income was however stable in both years at NOK 1.3 billion. Loan losses in finance companies fell sharply to NOK 821 million in 2010.

In the third quarter of 2010 there was a merger between a finance company and a bank. Comparisons of the results before and after the merger are therefore difficult for the finance companies.

 

Tables

Published tables