Financial institutions (discontinued), Q3 2001

Deposits have increased by 23 per cent from last year. Growth in the dividend from the Government Petroleum Fund represents 60 per cent of this increase. Deposits in commercial banks went up by 10 per cent. Lending from banks rose by 9 per cent, whereas it went up by 11 per cent for financial institutions. This means the growth of deposits is higher than the lending growth.

Finance and mortgage companies had an upward effect at loans by 18 per cent compared with last year. Out of this, loans with mortgage on dwellings increased by 95 per cent. The commercial banks increased their loans with mortgage on dwellings by 11 per cent. Loans from insurance companies were at the same level as last year.

Lower interest margin

The interest margin fell by 0.12 percentage points to 3.03 per cent during the third quarter. The interest margin shall cover expenses from giving loans, expected losses from loans, and to give a competitive administration of the equity.

The lending rate fell by 0,03 percentage points from last quarter, to 8.9 per cent. Therefore, the increase in total loans cannot be explained by a lower interest rate. Growth in deposits reflects a weaker security market and a high deposit interest rate. The deposit rate has not been higher since the end of 1998.

Total assets grows

The total assets indicate the size of the financial institutions. It grew by 15 per cent from last year, to NOK 3 475 billion. About half of the increase is due to dividend from the Government Petroleum Fund.