213667
213667
Weaker start to the year
statistikk
2015-05-20T10:00:00.000Z
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 2015

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Weaker start to the year

Despite increased net interest income, Norwegian banks’ pre-tax profit decreased by NOK 1.2 billion from the 1st quarter of 2014 to the 1st quarter of 2015. Lower net gains on securities contributed to the weaker results.

Quarterly profit and loss accounts, selected figures. NOK million (cumulative)
1st quarter 2015 1st quarter 2014
Banks
Net interest income 15 145 13 784
Loss on loans 856 1 393
Pre-tax profit 11 682 12 931
Mortgage companies
Net interest income 4 723 5 120
Loss on loans -5 26
Pre-tax profit 4 312 -429

Norwegian banks’ pre-tax profit amounted to NOK 11.7 billion in the 1st quarter of 2015. As a share of average total assets, profit before tax was 0.25 per cent in the 1st quarter of 2015; a decrease from 0.30 per cent in the 1st quarter of 2014.

Lower net gains on securities

Norwegian banks' net gains on securities and currency were NOK 1.7 billion in the 1st quarter of 2015; NOK 1.5 billion lower than the same period last year. The decline is due to lesser net gains on interest-bearing securities and other securities with variable return, which fell by NOK 1.4 and NOK 1.6 billion respectively compared to the 1st quarter last year. Losses related to these accounts totalled NOK 0.28 and NOK 0.21 billion respectively in the 1st quarter this year.

Net gains on securities and currency amounted to 0.04 per cent of average total assets in the 1st quarter this year, down from 0.08 in the same quarter last year.

Increased net interest income

The most important source of income for Norwegian banks is interest income. Interest income amounted to NOK 30.6 billion in the 1st quarter this year; NOK 1.1 billion lower than the 1st quarter last year. Total interest expenses amounted to NOK 15.4 billion in the 1st quarter of 2015; NOK 2.5 billion lower than the 1st quarter of 2014. Net interest income – the difference between interest income and interest expenses – was thus NOK 1.4 billion higher in the 1st quarter of 2015 compared to the same period last year.

Net interest income as a share of average total assets was 0.32 per cent in the 1st quarter of 2015; unchanged from the same quarter last year.

Stronger results for mortgage companies

Norwegian mortgage companies’ pre-tax profit was NOK 4.3 billion in the 1st quarter of 2015; NOK 4.7 billion higher than the 1st quarter of 2014. The strong results were mainly due to the positive trend in net gains on fixed income securities and other financial instruments. These income items amounted to NOK 1.4 and NOK 0.9 billion respectively in the 1st quarter of 2015; NOK 1.0 and NOK 3.9 billion higher than the 1st quarter last year.

The pre-tax profit amounted to 0.22 per cent of average total assets in the 1st quarter of 2015.