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4573
Strong results for Norwegian banks in 2007
statistikk
2008-02-22T10:00:00.000Z
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 2007

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

Content

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Strong results for Norwegian banks in 2007

Norwegian banks achieved a NOK 23.4 billion profit in 2007. This is NOK 1.5 billion higher than in 2006, which was also a very good year for the banks. The fourth quarter profit was NOK 7.1 billion.

Banks. Net interest income, losses and profit and loss. Q4 2001-Q4 2007

Banks. Selected items from the profit and loss statement. Q4 2004-Q4 2007. NOK million
 
  Net interest
earnings		 Losses on
loans etc.		 Gain on short-term
papers, bonds etc.		 Profit and loss for
the financial period
 
Q4 2004 8 193  276  147 3 974
Q1 2005 8 042  179 -34 4 036
Q2 2005 7 822 -773  437 4 918
Q3 2005 8 384 -396 -70 4 988
Q4 2005 8 824 -220 3 5 700
Q1 2006 8 333 -319 -38 5 065
Q2 2006 9 313 -136 -127 4 799
Q3 2006 9 181 -531  210 5 007
Q4 2006 9 513 -443 -326 7 076
Q1 2007 9 498 -7  323 5 358
Q2 2007 9 963  103  414 5 608
Q3 2007 11 086 10 -1 479 5 347
Q4 2007 11 180 -14 -753 7 116
 

Norwegian banks have achieved unprecedented net interest income levels in every quarter since the fourth quarter of 2006, and preliminary figures for the fourth quarter of 2007 show that this trend continues. Net interest income (interest income less interest costs) reached a substantial NOK 11.2 billion, an increase of NOK 0.1 billion compared to the third quarter. Total net interest income for 2007 was almost NOK 42 billion, an increase of NOK 6 billion from 2006.

Both net interest income and profits were the highest ever, both in 2007 and in the fourth quarter. The increase in net interest income was, among other things, caused by a continued high growth rate in loans and a higher interest rate. Another reason was low losses on loans, which amounted to NOK 95 million in 2007, partly due to a NOK 14 million net gain on losses in the fourth quarter.

Banks. Gain on short-term papers, bonds and other interest bearing securities. Q4 2001-Q4 2007

Net losses on securities - net gains on derivatives

Norwegian banks have had net gains on securities and currency in every quarter since 2002. Net gains amounted to NOK 1.5 billion on average in the fourth quarter of 2006 and the first two quarters of 2007. In the third quarter, however, net gains on securities and currency fell to NOK 143 million, followed by an increase to NOK 639 million in the fourth quarter.

The main reason for the low third quarter figures was net losses on short-term papers, bonds and other interest bearing securities, amounting to NOK 1.3 billion. The corresponding figure for the fourth quarter was NOK 753 million.

In the fourth quarter of 2007, net gains on derivatives and net losses on shares etc amounted to NOK 1.9 billion and NOK 1.1 billion respectively. The increasing losses on shares, short-term papers, bonds and currency in the third and fourth quarter are most likely related to the recent turbulence in the international capital and financial markets, caused by the problems in the sub-prime market. Despite these losses, Norwegian banks posted good results.

Please note that some of the third quarter figures have been revised since the last release due to major revisions in the figures for one bank.

 

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