Small decrease in banks’ half-year result
Norwegian banks’ pre-tax profit in the 1st half of 2015 was NOK 25.2 billion; a decrease of NOK 0.22 billion compared to last year’s profit in the same period.
|2nd quarter 2015||2nd quarter 2014|
|Net interest income||30 628||28 328|
|Loss on loans||2 226||2 727|
|Pre-tax profit||25 207||25 427|
|Net interest income||9 016||9 887|
|Loss on loans||4||79|
|Pre-tax profit||6 922||-600|
Norwegian banks’ profit in the 1st half of 2015 was positively influenced by an increase in net interest income, but the net gain on securities and currency was lower than in the same period last year. As a share of average total assets, profit before tax was 0.54 per cent in the 1st half of 2015; a decrease from 0.59 per cent in the 1st half of 2014.
Increased net interest income
The net interest income, which is the difference between the gross interest income and gross interest expenses, amounted to NOK 30.6 billion in the 1st half of this year; NOK 2.3 billion higher than in the 1st half last year. The increase is mainly due to lower interest expenses. Net interest income as a share of average total assets was 0.66 per cent in the 1st half of 2015; unchanged from the same period last year.
Lower net gains on securities
Norwegian banks' net gains on securities and currency were NOK 2.5 billion in the 1st half of 2015; NOK 2.4 billion less than in the same period last year. Net gains on currency and other securities with variable return were NOK 3.3 billion and NOK 1.5 billion respectively, while the net loss on interest-bearing securities was NOK 2.2 billion.
Positive results for mortgage companies
Norwegian mortgage companies’ pre-tax profit increased to NOK 6.9 billion in the 1st half of 2015; from NOK -0.6 billion in the 1st half of 2014. The pre-tax profit in the 1st half of 2015 amounted to 0.36 per cent of average total assets.
The strong result was mainly due to a positive trend in net gains on fixed income securities and currency. In the 1st half this year these items amounted to NOK 1.6 billion, while in the same period last year the mortgage companies had a net loss on these items of NOK 5.4 billion.