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4563
Good start for Norwegian banks in 2009
statistikk
2009-05-29T10:00:00.000Z
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, Q1 2009

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

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Good start for Norwegian banks in 2009

Profits in Norwegian banks in the first quarter of 2009 were NOK 4.6 billion, which was NOK 3.4 billion higher than the last quarter of 2008. Most of the increase came from lower loan losses and increased revenues on securities and currency.

Norwegian banks achieved NOK 12.1 billion in net interest income in the first quarter of 2009. This is the highest net interest income ever measured. Loan losses amounted to NOK 3 billion in the first quarter of 2009, down from NOK 4.6 billion in the previous quarter. This is still one of the highest loan losses ever measured in one quarter. Revenues other than interest earnings amounted to NOK 7.4 billion in this year’s first quarter; an increase of NOK 4.1 billion compared to the previous quarter.

Banks. Net gain/loss on securities and losses on loans. Q1 2003-Q1 2009

Banks. Selected items from the profit and loss statement. Q1 2003-Q1 2009

Large profits on securities and currency

Norwegian banks experienced substantial net gains on securities and currency in the first quarter of 2009, with net gains totalling NOK 3.3 billion at the end of the quarter. Net gains on short-term papers, bonds and other interest-bearing securities were NOK 0.9 billion, while net gains on shares and other securities with variable returns amounted to NOK 0.2 billion.

Norwegian banks’ net gains on currency and gold in the first quarter of 2009 were NOK 3.6 billion; an increase of NOK 6.1 billion from the previous quarter. The net gains on currency and gold were at the highest level ever in the first quarter of 2009.

Net losses on financial derivatives however amounted to NOK 0.4 billion in the first quarter this year. By comparison, the Norwegian banks’ had a net gain of NOK 4.2 billion in the fourth quarter last year.

Banks. Selected items from the profit and loss statement. Q1 2003-Q1 2009. NOK million
 
  Net interest and
credit commission income		 Losses on loans Net gain on short-term papers,
bonds and other interest
bearing securities		 Profit and loss
for the financial period
 
Q1 2003 7 893 1 772  369 1 599
Q2 2003 8 100 2 210  536 2 381
Q3 2003 8 222 1 651  112 2 440
Q4 2003 7 680 1 498  153 3 069
Q1 2004 7 621  474  415 3 558
Q2 2004 7 864  236 -179 3 367
Q3 2004 8 433  232  144 4 127
Q4 2004 8 193  222  147 3 974
Q1 2005 8 042  142 -34 4 036
Q2 2005 7 822 -778  437 4 918
Q3 2005 8 384 -369 -70 4 988
Q4 2005 8 824 -324 3 5 700
Q1 2006 8 333 -289 -38 5 065
Q2 2006 9 313 -137 -127 4 799
Q3 2006 9 181 -528  210 5 007
Q4 2006 9 513 -399 -326 7 076
Q1 2007 9 498 7  323 5 358
Q2 2007 9 963  104  414 5 608
Q3 2007 11 088 21 -1 479 5 357
Q4 2007 11 166 32 -789 6 698
Q1 2008 11 801  323 -2 200 3 921
Q2 2008 11 211  429 1 171 6 580
Q3 2008 13 072 1 014 -1 638 4 587
Q4 2008 14 177 4 569 -1 482 1 260
Q1 2009 12 129 2 982  853 4 623
 

Record high net interest income in mortgage and finance companies

Net interest income in Norwegian mortgage companies has increased in the last two years and figures show that the trend continues. Norwegian mortgage companies achieved NOK 2 billion in the first quarter of 2009, which is the highest level ever measured. The profits for the financial period were NOK 2.6 billion. The figures were NOK 1.7 billion lower than the previous quarter, but NOK 2.5 billion higher than in the first quarter last year. The reduction was partly due to a net loss on financial derivatives of NOK 6.3 billion. Net gains on securities and currency were NOK 2.1 billion in the first quarter this year, which was NOK 2.7 billion lower than the last quarter of 2008.

The profits of Norwegian mortgage companies are affected by the introduction of the International Financial Reporting Standards (IFRS), which can lead to fluctuations in book values for liabilities and assets at fair value. The profits of Norwegian mortgage companies are also affected by portfolio movements of loans between banks and mortgage companies. These companies are less exposed to losses on loans due to the fact that they have more secure loans than the banks.

Net interest income in Norwegian finance companies has increased for the second quarter in a row. At the end of the first quarter 2009 the net interest income was NOK 1.8 billion, which is the highest level ever measured. Profits for the Norwegian finance companies were NOK 0.5 billion, up from NOK 0.1 billion in the previous quarter. This is the highest profit for the financial period since the third quarter of 2005. The loan losses amounted to NOK 0.4 billion in the first quarter of 2009, which is a reduction of 50 per cent from the previous quarter.

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