Increased net interest income for banks
The Norwegian banks’ net profit before tax was NOK 12.3 billion in the 3rd quarter of 2014. This is an increase of NOK 1.6 billion compared to the corresponding quarter last year. Positive net interest income contributed to the result.
|3rd quarter 2014||3rd quarter 2013|
|Net interest income||43 560||40 800|
|Loss on loans||4 268||3 638|
|Pre-tax profit||37 723||30 791|
|Net interest income||14 851||14 540|
|Loss on loans||77||147|
|Pre-tax profit||325||1 419|
Compared to the previous quarter, the result fell by NOK 0.2 billion. At the end of the 3rd quarter of 2014, Norwegian banks’ accumulated pre-tax profit amounted to NOK 37.7 billion. For comparison, the accumulated pre-tax profit was NOK 30.8 billion by the end of the same quarter last year.
The pre-tax profit as a share of total assets was 0.29 per cent in the 3rd quarter this year. This share is the same as in the 2nd quarter but an increase of 0.26 per cent from the 3rd quarter of 2013.
Net interest income makes a positive contribution to the result
Norwegian banks’ net interest income was NOK 15.2 billion in the 3rd quarter this year. Costs associated with interest fell more than interest income and the net interest income increased from NOK 14.5 billion the previous quarter.
The interest income amounted to NOK 32.4 billion; an increase of NOK 0.4 billion compared to the same quarter last year. The interest costs fell from NOK 18.0 billion to NOK 17.2 billion from the 3rd quarter last year to the 3rd quarter this year, thus contributing to the increase in the net interest income of NOK 1.2 billion during this period.
The net interest income as a share of total assets was 0.36 per cent; an increase from 0.35 per cent in the 3rd quarter last year.
Positive quarterly results for mortgage companies
The Norwegian mortgage companies’ quarterly pre-tax profit was nearly NOK 0.9 billion in the 3rd quarter this year; an increase from NOK -0.2 billion in the previous quarter and a decrease from NOK 1.6 billion compared to the same period last year.
The net interest income amounted to NOK 5.0 billion in the 3rd quarter this year. This is an increase from NOK 4.8 billion in the previous quarter and a decrease from NOK 5.7 billion in the 3rd quarter last year.
As a share of total assets, the pre-tax profit and net interest income were 0.05 and 0.28 per cent respectively, compared to 0.09 and 0.33 per cent in the same quarter last year.