Financial corporations, accounts, Q2 2011

Net interest income amounted to NOK 12.8 billion in 2nd quarter of this year. The net interest income accounted for 0.36 per cent of total assets of Norwegian banks in this quarter. Interest income and interest expenses were NOK 32.8 billion and NOK 20.0 billion respectively in 2nd quarter of 2011, corresponding to a rise of NOK 2.8 and 1.9 billion compared to 2nd quarter of 2010.

Banks’ total profit rose by NOK 2.8 billion from 1st to 2nd quarter of 2011. The profit in 2nd quarter this year was about the same level as in 4th quarter of 2010. The profit in 2nd quarter 2011 was caused by a slight increase in net interest income, increasing gains on securities and financial derivatives but was offset some by losses on currency and shares.

Banks’ profit accounted for 0.21 per cent of the total assets, which is an increase from 1st quarter this year, and on the same level as in 4th quarter 2010.

Norwegian banks’ loan losses amounted to NOK 957 million in the 2nd quarter of 2011; a marginal decrease from the 1st quarter of this year. Compared to the 2nd quarter of 2010, the loan losses fell by NOK 349 million.

Higher gains on securities and derivatives, losses on currency

Norwegian banks’ net gains on securities were NOK 1.1 billion in the 2nd quarter of 2011. Compared to the 1st quarter of 2011, this was an increase of NOK 1.4 billion.

Banks’ losses on shares and currency in the 2nd quarter this year amounted to NOK 871 million and NOK 1.6 billion respectively. The losses on shares and currency in the mentioned period were however lower by far compared to the 2nd quarter of 2010, where the losses were NOK 4.2 billion.

Norwegian banks’ net gains on financial derivatives were NOK 2.95 billion in the 2nd quarter of 2011. This was an increase from the loss of NOK 317 million in this year's 1st quarter. 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.

Moderate loan losses

Norwegian banks’ loan losses fell slightly from NOK 1.0 billion in the 1st quarter of this year to NOK 0.9 billion in the 2nd quarter. Loan losses have been moderate in all quarters the last year.

Slightly falling profits in mortgage companies

Mortgage companies’ profits in the 2nd quarter of 2011 fell to NOK 315 million, which is NOK 980 million lower than the 1st quarter. The profits’ share of total assets accounted for 0.02 per cent only. Compared to the last quarter of 2010 the profits fell by NOK 1.9 billion.

Gains on securities rose to NOK 1.4 billion in this year's 2nd quarter, which is NOK 1.8 billion higher than in the 2nd quarter of 2010.

Net losses on currency and financial derivatives in the 2nd quarter of this year amounted to a total of NOK 2.2 billion.

Net interest income has been stable in recent years, but fell slightly by NOK 271 million from the 1st to the 2nd quarter of this year.

Mortgage companies’ loan losses rose from NOK 62 million in the 1st quarter to NOK 87 million in the 2nd quarter of this year. The losses were moderate.

Relatively good results in finance companies

Finance companies’ profits rose to NOK 529 million in the 2nd quarter of 2011. This is NOK 83 million higher than the profits in the 1st quarter of this year. The profits’ share of total assets accounted for 0.47 per cent in this year's 2nd quarter.

Loan losses in finance companies amounted to NOK 83 million in the 2nd quarter of 2011. Compared to this, the loan losses were NOK 168 million lower than in the 2nd quarter of last year.