4581_not-searchable
/en/bank-og-finansmarked/statistikker/orbofrk/kvartal
4581
Strong year for banks
statistikk
2007-03-02T10:00:00.000Z
Banking and financial markets
en
orbofrk, Financial corporations, accounts, banks, mortgage companies, finance companies, state lending institutions, period result, profit and loss accountFinancial institutions and other financial corporations, Banking and financial markets
false

Financial corporations, accounts, Q4 2006

As from 2016 the statistics is published with Banks and mortgage companies.

Content

Published:

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Strong year for banks

Preliminary figures show that Norwegian banks delivered strong results in the fourth quarter and that 2006 on the whole was a very good year. Banks’ profits were more than NOK 22 billion in 2006, of which NOK 7 billion came in the fourth quarter.

Banks. Net interest income, losses and profit and loss. Q4 2001 - Q4 2006. NOK million

Net interest income in the fourth quarter came to a substantial NOK 9.5 billion, an increase of NOK 300 million from the third quarter. Net interest income for 2006 as a whole was NOK 36 billion, an increase of more than NOK 3 billion from 2005. Fourth quarter profit came to NOK 7.2 billion. Banks’ quarterly reports show that results rose by more than NOK 2.1 billion from the third to the fourth quarter. This is NOK 1.5 billion higher than in the same period of 2005.

Higher net interest income, lower interest margin

Despite a considerable increase in banks’ net interest income (interest income less interest costs), the interest rate statistics published on 28 February show that banks’ interest margin (lending rate less deposit rate) was reduced further in 2006 and that banks’ interest rates are not increasing at the same pace as Norges Bank’s key interest rates. One possible explanation for this development could be that the lending growth has been much stronger than the growth in deposits.

Banks. Net interest income, losses and profit and loss.
Q4 2004-Q4 2006.NOK million
 
  Net interest income Losses on loans etc Profit and loss for
the financial period
 
Q4 2004 8 193  276 3 974
Q1 2005 8 042  179 4 036
Q2 2005 7 822 -773 4 918
Q3 2005 8 384 -396 4 988
Q4 2005 8 815 -220 5 702
Q1 2006 8 333 -319 5 065
Q2 2006 9 312 -136 4 799
Q3 2006 9 182 -531 5 008
Q4 2006 9 487 -419 7 149
 

Write-back of losses

Norwegian banks had a net write-back of losses of NOK 0.4 billion in the fourth quarter of 2006 and NOK 1.4 billion in total in 2006. This is a substantial contribution to the banks’ profits. The banks have had a net write-back of losses since the second quarter of 2005.

 

Tables

Published tables