This is an archived release.
Increased loan margins
The loan margins in banks and mortgage companies rose by 0.31 percentage points in the 3rd quarter of 2012. Compared to the same period last year, the loan margins were 0.93 percentage points higher in the 3rd quarter of 2012.
The loan margins in banks and mortgage companies were 2.29 percentage points at the end of the 3rd quarter of 2012, up from 1.98 percentage points at the end of the 2nd quarter in the same year. The largest increase in loan margins is found in banks, where the margins rose from 2.44 percentage points at the end of the 2nd quarter to 2.77 percentage points at the end of the 3rd quarter this year.
The banks’ interest margins were unchanged at 2.48 percentage points from the end of the 2nd to the end of the 3rd quarter of 2012. The interest rate margins have been stable between 2.40 and 2.48 percentage points over the last five quarters.
Marginal decrease in interest rate on loans
The average interest rate on loans from banks and mortgage companies fell by 0.03 percentage points in this year’s 3rd quarter to 4.30 per cent. Compared to the 3rd quarter of 2011, the interest rate was 0.17 percentage points lower this year. The interest rates on loans to the sectors private non-financial corporations and households fell marginally by 0.02 percentage points in the 3rd quarter this year.
Banks and mortgage companies constituted a share of 54 and 37 per cent respectively of total loans in the 3rd quarter of 2012. Hence these two financial institutions covered more than 90 per cent of all loans in NOK.
The interest rate on loans from state lending institutions (excluding loans with zero interest rate) continued to fall in the 3rd quarter this year, with the average interest rate falling 0.07 percentage points to 2.98 per cent. Compared to the same period last year, this is a decline of 0.34 percentage points. The interest rate on loans from the Norwegian Public Service Pension Fund was unchanged at 2.25 per cent at the end of the 3rd quarter of 2012.
Decrease in interest rate on loans secured on dwellings
The interest rate on total loans secured on dwellings from banks and mortgage companies fell by 0.04 percentage points to 4 per cent in the 3rd quarter this year. Loans secured on dwellings are divided into two types; repayment loans and credit lines. The interest rates on both types of loans fell by 0.03 and 0.07 percentage points respectively. As shown in the statistics Financial corporations, balance sheet , about 90 per cent of all loans secured on dwellings are issued to employees.
Unchanged interest rate on bank deposits
The banks’ interest rate on deposits was approximately unchanged from the 2nd to the 3rd quarter this year, and was 2.30 per cent at the end of the 3rd quarter of 2012. As a result of the 0.34 percentage point fall in NIBOR, the banks’ deposit margin was -0.29 percentage points at the end of the 3rd quarter, down from 0.04 percentage points at the end of the 2nd quarter this year.
NIBOR is the average money market interest rate; the interest rate on loans between banks.
The interest rate margin is the difference between banks’ average lending and deposit rates.
The lending margin is the difference between banks’ interest rates on loans and the NIBOR rate.
The deposit margin is the difference between the NIBOR rate and banks’ interest rates on deposits.
About the statistics
At the end of the 3rd quarter of 2012, the interest rate statistics include data from 141 banks, 29 mortgage companies, 5 life insurance companies, 3 state lending institutions and the Norwegian Public Service Pension Fund. The share of loans from banks, mortgage companies, state lending institutions and life insurance companies was 54, 37, 6 and 1 per cent of total loans respectively.
|30 Sept 2012||30 June 2012||31 March 2012||31 Dec 2011||30 Sept. 2011||Changes in interest rates. Percentage points||Share of total loans/deposits|
|Banks and mortgage companies||4.30||4.33||4.48||4.61||4.47||-0.03||-0.17||0.91|
|Life insurance companies||3.81||3.84||3.89||4.02||4.03||-0.03||-0.22||0.01|
|State lending institutions exclusive loans with zero interest rate||2.98||3.05||3.20||3.27||3.32||-0.07||-0.34||0.06|
|All financial corporations 2||4.18||4.20||4.35||4.47||4.34||-0.02||-0.16||1.00|
|The Norwegian Public Service Pension Fund||2.25||2.25||2.75||2.75||2.75||0.00||-0.50||0.01|
|Financial corporations and The Norwegian Public Service Pension Fund||4.15||4.17||4.33||4.45||4.32||-0.02||-0.17||1.00|
|Loans secured on dwellings|
|Banks and mortgage companies. Repayment loans secured on dwellings||4.09||4.12||4.29||4.32||4.14||-0.03||-0.05||0.41|
|Banks and mortgage companies. Credit lines secured on dwellings||3.74||3.81||3.99||4.01||3.76||-0.07||-0.01||0.14|
|Banks and mortgage companies. Total loans secured on dwellings||4.00||4.04||4.22||4.24||4.04||-0.04||-0.04||0.54|
|Interest rate margins|
|Banks' deposit margin||-0.29||0.04||-0.18||0.39||0.63||-0.33||-0.92||.|
|Banks' loans margin||2.77||2.44||2.58||2.07||1.78||0.33||0.99||.|
|Mortgage companies loans margin||1.63||1.33||0.91||1.00||0.67||0.30||0.96||.|
|Banks' and mortgage companies loans margin||2.29||1.98||1.52||1.65||1.36||0.31||0.93||.|
|Banks' interest rate margin||2.48||2.48||2.40||2.46||2.41||0.00||0.07||.|
|Money market interest rate 3|
|Nibor (3 month effective)||2.01||2.35||2.33||2.96||3.11||-0.34||-1.10||.|
|Norges Bank 4|
|Key policy rate||1.50||1.50||1.50||1.75||2.25||0.00||-0.75||.|
|Overnight lending rate||2.50||2.50||2.50||2.75||3.25||0.00||-0.75||.|
|1||Weighted average interest rates incl. commissions on NOK loans from banks and other financial corporations. Weighted average interest rates on NOK deposits in banks from non-financial enterprises, households and local government. Weighted average interest rate margins. Per cent.|
|2||Includes banks, mortgage companies, life insurance companies and state lending institutions. The Norwegian Public Service Pension Fund is not included.|
|3||Reuters and Norges Bank.|