Improved result for banks
Norwegian banks’ pre-tax profit amounted to NOK 48.4 billion in 2014.This is an increase of NOK 6.6 billion compared to 2013. Increased net interest income contributed to the good result.
|4th quarter 2014||4th quarter 2013|
|Net interest income||58 864||55 156|
|Loss on loans||6 195||5 269|
|Pre-tax profit||48 358||41 772|
|Net interest income||19 758||20 400|
|Loss on loans||67||195|
|Pre-tax profit||2 146||991|
The pre-tax profit as a share of total assets was 1.12 per cent in 2014; an increase from 1.03 per cent in 2013.
Positive net interest income contributed to the good result
Norwegian banks’ net interest income was NOK 58.9 billion in 2014; an increase of NOK 3.7 billion compared to 2013. The interest costs fell from NOK 72.2 billion in 2013 to NOK 69.8 billion in 2014, thus contributing to the increase in the net interest income during this period. In 2014, the interest income amounted to NOK 128.7 billion; an increase of NOK 1.3 billion compared to 2013.
The net interest income as a share of total assets was 1.36 per cent in 2014; unchanged from 2013.
Low losses on loans
Norwegian banks’ loss on loans amounted to NOK 6.2 billion in 2014; an increase of NOK 0.9 billion or 17.6 per cent compared to 2013. As a share of total loans, the banks’ loss on loans in 2014 was 0.20 per cent. This share is unchanged from 2013.
Positive quarterly result for mortgage companies
The Norwegian mortgage companies’ pre-tax profit was NOK 2.1 billion in 2014; an increase from NOK 1.0 billion in 2013.The net interest income amounted to NOK 19.8 billion in 2014. This is a decrease of NOK 0.6 billion compared to the previous year. The interest costs were approximately unchanged in this period, while the interest income decreased by NOK 0.6 billion from the end of 2013 to the end of 2014.
The pre-tax profit as a share of total assets was 0.12 per cent in 2014; an increase from 0.06 per cent in 2013.