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54282
Moderate results for Norwegian banks
statistikk
2011-05-13T10:00:00.000Z
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, Q1 2011

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

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Moderate results for Norwegian banks

Norwegian banks’ profit in the first quarter of 2011 amounted to NOK 4.9 billion. Despite an increase in net interest income, low gains on securities and currency together with higher administration expenses contributed to the decline in the banks’ profit by NOK 1.4 billion compared to the corresponding quarter the previous year.

Banks. Net interest income, profit and losses on loans Q1 2005-Q1 2011. NOK million

Net interest income amounted to NOK 12.7 billion in the first quarter of this year. As a percentage of total assets, this accounted for 0.34 per cent of total assets of Norwegian banks. Interest income and interest expenses were NOK 36.7 billion and NOK 24.1 billion respectively, corresponding to a rise of NOK 8.3 and 7.4 billion compared to last year.

Banks. Selected items from the profit and loss statement. Q3 2003-Q1 2011. NOK million
 
  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
 
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 11 801  951 1 416 6 214 0.17
Q2 2010 11 851 1 306 -510 8 460 0.22
Q3 2010 13 455  747 2 413 6 309 0.17
Q4 2010 12 837  976 1 165 7 773 0.20
Q1 2011 12 676  996  444 4 859 0.13
 

Despite a relatively high and stable level of net interest income, the profit in the 1st quarter was the lowest since the fourth quarter of 2009. This should be seen in relation to low gains on securities and currency, as well as higher administration expenses in the first quarter of 2011. The profits accounted for 0.13 per cent of the total assets, which is lower than for each and all the previous periods of the last year.

Norwegian banks’ losses on loans amounted to about NOK 1 billion in the 1st quarter of 2011; a marginal increase from the last year’s 4th quarter. Compared to the 1st quarter of 2010, the losses rose by a mere NOK 45 million.

Banks. Gain/loss on securities and currency Q1 2005-Q1 2011

Lower gains on securities and currency

Norwegian banks’ total gains on securities and currency amounted to NOK 444 million in the first quarter of 2011. Compared to the fourth quarter of 2010, this was a decline from NOK 1.2 billion. The gains were almost NOK 1 billion lower compared to the first quarter of 2010. The level of accumulated gains of the banks was NOK 4.5 billion in 2010.

The strong reduction of the gains in the first quarter of 2011 is mostly due to the fall in the gains on treasury bills, government bonds and other interest-bearing securities, as well as on other financial assets. The fall amounted to NOK 846 and 809 million respectively compared to the first quarter of 2010. The loss on treasury bills, government bonds and other interest-bearing securities amounted to NOK 361 million, while the loss on other financial assets and liabilities was NOK 317 million.

Norwegian banks’ net gains on currency together with net gains on shares and other securities with variable return constituted NOK 559 and 564 million respectively. It is worth mentioning that a strong fluctuation in the actual value of claims and liabilities affects net gains and losses to a large extent.

High administration expenses

Higher administration expenses were among contributing factors to the rise in the cost level for Norwegian banks in the first quarter of this year. Wages and other personnel expenses rose by NOK 1.2 billion this year compared to the last year’s first quarter.

Moderate profits also for mortgage companies

Mortgage companies’ profits in the first quarter of 2011 came to NOK 1.3 billion, which is NOK 553 million higher compared to the first quarter of 2010. The profits’ share of total assets accounted for 0.09 per cent; 0.16 per cent down from the fourth quarter of 2010. Compared to the fourth quarter of the last year the profits fell by NOK 888 million.

Gains on securities and currency amounted to NOK 265 million, corresponding to a rise of NOK 776 million compared to the loss of the last year’s first quarter. Net gains on treasury bills, government bonds and other interest-bearing securities, as well as net gains on currency increased by NOK 1.3 and NOK 1.4 billion respectively compared to the first quarter of the last year. This increase was enough to offset a loss in other financial assets and liabilities close to NOK 3 billion in the first quarter of 2011.

Net interest incomes have been stable in recent years, amounting to NOK 2.1 billion both in the first quarter of this year and previous year.

Mortgage companies’ loss on loans was NOK 62 million at the end of the year’s first quarter. This is an increase compared to last year’s first quarter. The losses on loans were low for most of 2010, only to increase in the fourth quarter by NOK 124 million.

Relatively good results for finance companies

Finance companies’ profits were NOK 446 million in the first quarter of 2011. This is a decrease of NOK 24 million compared to the fourth quarter of the last year. Net interest rates amounted to NOK 1.4 billion.

Figures before and after the third quarter of 2010 are not directly comparable because of a merger between a finance company and a bank in the third quarter of 2010.

Tables

Published tables