Good results for banks

Norwegian banks’ profit as a share of average total assets was 1.13 per cent in 2019. Total comprehensive income for the period was NOK 61.8 billion, while other comprehensive income was NOK -0.6 billion.

Increased net interest income

The banks’ net interest income amounted to NOK 90.3 billion in 2019. This was NOK 8.0 billion more than in 2018. The increase is due to a higher increase in total interest income than in total interest expenses. Net interest income as a share of average total assets was 1.65 per cent in 2019. This share is 0.05 percentage points higher than in 2018.

Low loss on loans

Banks’ credit loss on loans amounted to NOK 9.6 billion in 2019. As a share of total assets, the banks’ credit loss on loans was 0.17 per cent, which is 0.08 percentage points higher than in 2018.

Banks’ total net change in value and net gains on financial instruments in 2019 amounted to NOK 5.5 billion. This was NOK 0.3 billion higher than in 2018.

Lower share of claims on customers and share of deposits

At the end of 2019, loans to and claims on customers were 58.5 per cent of the banks’ total assets. Compared with 2018, this share has decreased by 1.4 percentage points. Loans to and claims on credit institutions as a share of total assets has decreased by 0.5 percentage points to 15.8 per cent, compared with 2018.

The banks are mostly funded by deposits and interest-bearing securities. Deposits are the largest source of funding, with a share of 68.8 per cent of total assets by the end of 2019. The securities’ share of total assets was 14.0 per cent. Compared to the end of 2018, the deposits share of total assets has decreased by 2.8 percentage points, while the securities’ share increased by 1.2 percentage points.

Fluctuations in the exchange rates for the Norwegian kroner against other currencies affect the size of the Norwegian banks’ balance sheet figures. At the end of 2019, 58.4 per cent of the banks’ total interest-bearing securities and 23.4 per cent of the total deposits received were in foreign currencies.

Marginally lower net interest income for the mortgage companies

Norwegian mortgage companies’ profit amounted to NOK 8.2 billion in 2019. The profits share of total assets was 0.35 per cent in 2019.

The net interest income for mortgage companies amounted to NOK 16.4 billion in 2019. This is a marginal decrease compared to 2018.

The mortgage companies are mostly funded by interest-bearing securities. By the end of 2019, the securities as a share of total assets was 72.4 per cent. This share is 3.2 percentage points lower than in 2018. By the end of 2019, 66.0 per cent of the mortgage companies’ debt securities was issued in foreign currency.