149107
statistikk
2014-05-21T10:00:00.000Z
Banking and financial markets
en
orbofrk, Financial corporations, accounts, banks, mortgage companies, finance companies, state lending institutions, period result, profit and loss accountFinancial institutions , Banking and financial markets
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Financial corporations, accountsQ1 2014

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Good quarterly results in Norwegian banks

The banks' quarterly profit before tax was NOK 12.9 billion in the 1st quarter of 2014. This is an increase of NOK 4.3 billion compared to the same quarter last year. The increase stemmed from higher gains on securities and currency as well as higher net interest income.

Quarterly profit and loss accounts, selected figures. NOK million (cumulative)
1st quarter 2014 1st quarter 2013
Banks
Net interest income 13 783 12 966
Loss on loans 1 390 887
Pre-tax profit 12 931 8 607
Mortgage companies
Net interest income 5 122 4 133
Loss on loans 26 44
Pre-tax profit -429 -1 229
Figure 1. Banks. Net interest income, pre-tax profit, net gain on securities and currency and losses on loans
Figure 2. Banks. Profit and loss before tax as percentage of total assets
Figure 1. Banks. Net interest income, pre-tax profit, net gain on securities and currency and losses on loansFigure 2. Banks. Profit and loss before tax as percentage of total assets

Norwegian banks’ profit before tax was 0.30 per cent of the banks' total assets at the end of the 1st quarter of 2014. This is the best result as a share of the banks’ total assets since the 2nd quarter of 2010.

Norwegian banks’ net interest income, i.e. the difference between interest income and interest expenses, amounted to NOK 13.8 billion in the 1st quarter of 2014. This is an increase of NOK 817 million compared to the same quarter in 2013. As a share of total assets, the net interest income was 0.32 per cent in the 1st quarter of 2014; the lowest level in the last five quarters.

Higher gains on interest-bearing securities

Norwegian banks' net gains on securities and currency amounted to NOK 3.2 billion in the 1st quarter of 2014. This is an increase of NOK 618 million compared to the 4th quarter of 2013 and an increase of NOK 2.1 billion compared to the 1st quarter of 2013. As a share of total assets, the net gain on securities and currency was 0.08 per cent in the 1st quarter of 2014, which is the highest share measured over the last five quarters. Net gain on securities and currency has fluctuated between 0.03 and 0.08 per cent of total assets over the last five quarters.

Higher net gains on securities and currency in the 1st quarter of 2014 compared to the 1st quarter of 2013 were mainly due to an increase in net gains on treasury bills, government bonds and other interest-bearing securities from NOK 167 million to NOK 1 billion, and an increase in net gains on securities with a variable return from NOK 476 million to NOK 1.4 billion. Net gains and losses are affected by fluctuations in the fair value of assets and liabilities, as well as fluctuations in exchange rates and the value of financial derivatives.

Smaller losses on loans

Norwegian banks’ losses on loans amounted to NOK 1.4 billion in the 1st quarter of 2014, down from NOK 1.6 billion in the 4th quarter of 2013. Compared to the corresponding quarter last year, losses on loans amounted to NOK 887 million. As a share of total assets, losses on loans were only 0.03 per cent in the 1st quarter this year, marginally down from 0.04 per cent the previous quarter.

Continued negative quarterly result for mortgage companies

Norwegian mortgage companies’ pre-tax profit in the 1st quarter of 2014 was almost unchanged from the 4th quarter of 2013, amounting to NOK -429 million. As a share of total assets, the pre-tax profit amounted to -0.02 per cent in the 1st quarter of 2014, also unchanged from the previous quarter. The quarterly results in the 1st quarter of 2014 are, however, better than in the 1st quarter of 2013, when the pre-tax profit amounted to NOK -1 229 million.

The trend in Norwegian mortgage companies’ net interest income remained positive throughout 2013, but fell to NOK 5.1 billion in the 1st quarter of 2014. As a share of total assets, the net interest income fell from 0.34 per cent in the 4th quarter of 2013 to 0.29 per cent in the 1st quarter of 2014.

The Norwegian mortgage companies’ losses on loans remained very low. In the 1st quarter of 2014, losses on loans amounted to NOK 26 million, down from NOK 48 million in the 4th quarter of 2013.

Good quarterly results for finance companies continue

Finance companies’ quarterly pre-tax profit amounted to NOK 880 million in the 1st quarter of 2014, up from NOK 829 million in the 4th quarter of 2013. As a share of total assets, the quarterly pre-tax profit increased from 0.63 per cent in the 4th quarter of 2013 to 0.65 per cent in the 1st quarter of 2014.

Finance companies’ net interest income was stable and amounted to NOK 1.7 billion in the 1st quarter of 2014. As a share of total assets, the net interest income was 1.26 per cent in the 1st quarter of 2014, down from 1.32 per cent in the 4th quarter of 2013. Finance companies’ losses on loans declined from NOK 210 million in the 4th quarter of 2013 to NOK 182 million in the 1st quarter of 2014. This corresponds to a fall from 0.16 per cent to 0.13 per cent of total assets.