4553_not-searchable
/en/bank-og-finansmarked/statistikker/orbofrk/kvartal
4553
Very good results for financial corporations
statistikk
2010-08-20T10:00:00.000Z
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, Q2 2010

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

Content

Published:

This is an archived release.

Go to latest release

Very good results for financial corporations

Norwegian banks’ profit in the second quarter of 2010 amounted to NOK 8.5 billion. This is the highest quarterly profit since measurements began in 1995. The finance companies also delivered the best quarterly result ever, while the mortgage companies more than doubled their profit from the previous quarter.

Banks. Net interest income, profit and losses on loans Q4 2004 - Q2010. NOK million

The profit for the Norwegian banks was NOK 2.3 billion higher in the second quarter of 2010 than the previous quarter, and NOK 2.1 billion higher than the second quarter last year. Other operating income contributed the most to the increased profit. As a percentage of total assets, profit accounted for 0.22 per cent; up from 0.17 per cent in the previous quarter. In comparison, this share was only 0.03 per cent in the fourth quarter of 2008.

The Norwegian banks’ accumulated profit was NOK 14.7 billion by the end of the second quarter of 2010, compared to NOK 11.1 billion by the end of the second quarter last year.

Increase in other operating income

Other operating income amounted to NOK 7.2 billion in the second quarter of 2010; an increase of NOK 5.9 billion from the first quarter. This item includes i.a. income from shares and other securities with variable returns and gains on sale of stocks, shares and equity certificates. In the second quarter, these items accounted for NOK 1.7 and 2.7 billion respectively.

High and stable net interest income

Norwegian banks’ interest income increased from NOK 28.4 billion in the first quarter this year to NOK 29.9 billion in the second quarter. The interest expenses increased in the same period from NOK 16.1 to 18.1 billion. The net interest income was thus close to NOK 11.9 billion in the second quarter. This is an increase from NOK 11.8 billion in the first quarter this year, but a decrease from NOK 12.2 billion from the second quarter last year. The level of net interest income is high despite the marginal increase from the previous quarter, and thereby contributes to the good results.

Banks. Gain/loss on securities and currency Q4 2004 - Q2 2010

Slightly higher loan losses

In the second quarter this year loan losses amounted to NOK 1.2 billion; up from NOK 1.0 billion in the first quarter.

Losses on securities and currency

The banks had net losses on securities and currency amounting to NOK 0.5 billion in the second quarter this year, compared to gains of NOK 1.4 billion in the previous quarter. A drop in both gains on shares and other securities and currency caused the loss, while gains on other financial assets and liabilities on the other hand increased during the second quarter.

Banks. Selected items from the profit and loss statement. Q2 2007-Q2 2010. 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		 Profit and loss
as percentage
of total assets
 
Q2 2007 9 963  104  414 5 608 0.19
Q3 2007 11 088 21 -1 479 5 357 0.18
Q4 2007 11 166 32 -789 6 698 0.23
Q1 2008 11 801  323 -2 200 3 921 0.12
Q2 2008 11 211  429 1 171 6 580 0.20
Q3 2008 13 072 1 014 -1 638 4 587 0.13
Q4 2008 14 177 4 569 -1 482 1 260 0.03
Q1 2009 12 158 2 982  853 4 623 0.13
Q2 2009 12 239 1 711  913 6 451 0.17
Q3 2009 12 563 2 649 1 151 5 699 0.15
Q4 2009 12 120 1 590  456 3 897 0.10
Q1 2010 11 800  951  485 6 213 0.17
Q2 2010 11 852 1 225 31 8 515 0.22
 

Sharp increase in mortgage companies’ profit

The mortgage companies’ result in the second quarter of 2010 was NOK 1.6 billion; up from NOK 0.8 billion in the first quarter. The result as a percentage of total assets was 0.12 per cent in the second quarter compared to 0.6 per cent in the previous period. The accumulated result to the end of the second quarter was NOK 2.4 billion. This is the highest profit ever measured. The results for the mortgage companies have since the fourth quarter of 2008 been 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.

Increased gains on securities and currency contributed the most to the good result. Gains on securities and currency amounted to NOK 0.7 billion in the second quarter of 2010; up from a loss of NOK 0.5 billion in the previous period.

The net interest income has been quite stable since the fourth quarter of 2008, and amounted to NOK 1.9 billion to the second quarter.

Very good results for the finance companies

The profit for the finance companies amounted to NOK 650 million during the second quarter of 2010; an increase of NOK 43 million from the first quarter and the highest profit ever recorded. Profit accounted for 0.44 per cent of the total assets in the second quarter of 2010 compared to 0.42 per cent in the previous period.

The net interest income is high and stable, and amounted to NOK 1.8 billion in the second quarter this year.

Tables

Published tables