Increased loan margins
The loan margin in banks and mortgage companies rose by 0.11 percentage points in 4th quarter of 2012. Compared to the same period last year the loan margins were 0.75 percentage points higher at-end 2012.
|4th quarter 2012||3rd quarter 2012|
|Interest rates including commissions on loans|
|State lending institutions||2.53||2.63|
|Life insurance companies||3.86||3.81|
|Financial corporations, total||4.14||4.18|
|The Norwegian Public Service Pension Fund||2.23||2.25|
|Interest rates on deposits|
|Banks and mortgage companies. Interest margin||2.40||2.29|
|Banks. Interest rate margin||2.45||2.48|
|Banks. Deposits margin||-0.44||-0.29|
The loan margins in banks and mortgage companies were 2.40 percentage points at the end of 4th quarter 2012, up from 2.29 percentage points at the end of 3rd quarter same year. The interest rate on loans between banks, NIBOR , was 1.87 per cent at-end 2012. This is a decrease of 1.09 percentage points compared to the end of 2011.
The banks’ interest margin was unchanged at 2.45 percentage points at the end of 4th quarter 2012. The interest rate margins have been stabile between 2.40 and 2.48 percentage points the last five quarters.
Decrease in interest rate on loans
The average interest rate on loans from banks and mortgage companies fell by 0.03 percentage points in 4th quarter 2012, to 4.27 per cent. The interest rate was 0.34 percentage points lower compared to the same period in 2011. Banks’ and mortgage companies’ interest rate to households fell marginally by 0.02 percentage points in 4th quarter 2012, while interest rate to private non-financial corporations fell by 0.04 percentage points in the same period. Banks and mortgage companies constituted for a share of respectively 53 and 39 of total public loans in NOK in 4th quarter 2012. Hence these two financial institutions covered above 90 per cent of the total loans.
The interest rate on loans from state lending institutions (excluding loans with zero interest rate) fell by 0.06 percentage points to 2.92 per cent in 4th quarter of 2012. Compared to the same period last year, this is a decline of 0.46 percentage points. The interest rate on loans from the Norwegian Public Service Pension Fund was nearly unchanged at 2.23 per cent at the end of 2012.
Lower interest rate on housing loans
The interest rate on total loans secured on dwellings from banks and mortgage companies fell by 0.03 percentage points to 3.98 per cent in the 4th quarter 2012. Loans secured on dwellings are divided into two types; repayment loans and credit lines. The interest rates on both types of loans fell in 4th quarter 2012, and compared to the same period in 2011, interest rate on loans secured by dwellings was 0.27 percentage points lower in 2012. As shown in the statistics Financal corporations, balance sheet about 90 per cent of total loans secured on dwellings are issued to employees.
Stable interest rate on bank deposits
The banks’ interest rate on deposit was approximately unchanged at 2.31 per cent from the end of 3rd quarter to the end of 4th quarter in 2012. The NIBOR rate is still low, and leads to a further 0.15 percentage points fall in the deposit margin in 4th quarter 2012, to -0.44 percentage points.
The interest rate on deposits from households rose by 0.03 percentage points to 2.40 per cent in 4th quarter of 2012, while the interest rate on deposits from private non-financial corporations fell by 0.05 percentage points to 2.09 per cent in the same period.
At the end of the 4th quarter of 2012, the interest rate statistics include data from 141 banks, 29 mortgage companies, 6 life insurance companies, 3 state lending institutions and the Norwegian Public Service Pension Fund. The share of loans from banks, mortgage companies, state lending institutions and life insurance companies were respectively 53, 39, 7 and 1 per cent of total loans.
The three state lending institutions includes the Norwegian State Housing Bank, the Norwegian State Educational Loan Fund (Lånekassen) and Innovation Norway. The interest rates on loans from Lånekassen, the Norwegian State Housing Bank and the Norwegian Public Service Pension Fund as well are determined on the basis of the interest rates on government bonds and treasury bills.