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66100
Good results for Norwegian banks
statistikk
2012-02-13T10:00:00.000Z
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, Q4 2011

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

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Good results for Norwegian banks

Norwegian banks’ pre-tax profit in the fourth quarter of 2011 amounted to NOK 7.6 billion. A slight increase in net interest income, gains on currency and a higher loss on loans contributed to the decline in the banks’ profit by NOK 2.4 billion compared to the fourth quarter in 2010.

Banks. Net interest income, profit and losses on loans Q1 2005-Q4 2011. NOK million

Banks’ net profit before tax in 2011 was NOK 30.9 billion; NOK 6.9 billion lower than in 2010. Measured as a percentage of total assets, the pre-tax profit fell from 1.02 per cent in 2010 to 0.83 per cent in 2011. The net profit in the 4th quarter of 2011 was NOK 0.8 billion higher than in the 3rd quarter, but was NOK 2.4 billion lower than the profit in the 4th quarter of 2010.

Net interest income high

The net interest income rose to NOK 14 billion in the 4th quarter of 2011, from NOK 13.5 billion in the previous quarter. For the whole year 2011 the net interest income as a percentage of total assets rose to 1.42 per cent, up from 1.35 per cent in 2010.

Banks. Selected items from the profit and loss statement. Q4 2008-Q4 2011. NOK million
  Net interest
and credit commission
income 		Losses
on loans 		Net gains
on securities
and currency 		Profit and loss
before tax
for the financial
period 		Profit and loss
before tax
as percentage
of total assets.
Per cent
Q4 2011 13 977 2 040 1 428 7 570 0.20
Q3 2011 13 515 1 157  573 6 795 0.18
Q2 2011 12 783  957 1 498 10 044 0.28
Q1 2011 12 676  996  444 6 530 0.18
Q4 2010 12 837  976 1 165 10 018 0.27
Q3 2010 13 455  747 2 413 8 454 0.23
Q2 2010 11 851 1 306 -510 11 081 0.29
Q1 2010 11 801  951 1 416 8 277 0.23
Q4 2009 12 228 1 644 1 571 5 571 0.15
Q3 2009 12 563 2 648 3 020 7 838 0.21
Q2 2009 12 239 1 711 2 557 9 091 0.24
Q1 2009 12 158 2 982 3 284 6 538 0.18
Q4 2008 14 177 4 569 -1 454 2 041 0.05

Increasing loan losses

Norwegian banks’ loan losses amounted to NOK 2.1 billion in the 4th quarter of 2011. For the whole year 2011 total loan losses were NOK 5.2 billion; an increase of NOK 2.3 billion compared to 2010. The quarterly loan losses are still low at about 0.03 to 0.05 per cent of total assets.

Banks. Gain/loss on securities and currency Q1 2005-Q4 2011

Moderate losses on securities, losses on currency, gains on financial derivatives

Norwegian banks’ total gains on securities and currency were NOK 3.9 billion in 2011. Compared to 2010, the gains fell by NOK 540 million.

The gain in 2011 was due to a moderate loss of NOK 687 million on securities and a higher loss on currency of NOK 5.9 billion, which was offset by a high gain on financial derivatives of NOK 10.6 billion. It is worth mentioning that strong fluctuations in the actual value of claims and liabilities affect these net gains and losses.

Good profits for mortgage companies

Mortgage companies’ pre-tax profit adjusted for unrealised revaluations was at about the same level in 2011 as in 2010. Net interest income remained stable at a level between NOK 1.8 and 2.1 billion in all quarters of 2011. Net interest income as a percentage of total assets was 0.53 per cent for the whole year.

Mortgage companies’ loss on loans in 2011 was NOK 281 million; an increase of NOK 143 million from the year 2010. As a percentage of total assets, the quarterly loan losses remain low at between 0.003 and 0.006 per cent1 in all quarters in 2011.

Losses on securities and currency fell to NOK 6.8 billion in 2011 from NOK 6.9 billion the previous year.

Strong results for finance companies

Finance companies’ pre-tax profits were NOK 664 million in the 4th quarter of 2011, up slightly from NOK 644 million in the 3rd quarter. For the whole year 2011 the pre-tax profit was NOK 2.6 billion; exactly the same level as in 2010. As a percentage of total assets, the profit rose to 0.57 per cent in the 4th quarter 2011, while having been between 0.54 and 0.63 per cent during the first quarters of 2011.

Loan losses fell from NOK 813 million in 2010 to NOK 533 million in 2011. As a percentage of total assets, the loan losses were 0.11 per cent in the 4th quarter last year.

Please note that data 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.

1Figures for quarterly loan losses were corrected 13 February 2012 at 10.25