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/en/bank-og-finansmarked/statistikker/orbofrk/kvartal
4585
Good results for Norwegian banks
statistikk
2010-11-04T10:00:00.000Z
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, Q3 2010

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

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Good results for Norwegian banks

Norwegian banks’ profit in the third quarter of 2010 amounted to NOK 6.3 billion. This was NOK 591 million higher than the result in the equivalent quarter last year. Most of the increase came from lower loan losses and high net interest income.

Banks. Net interest income, profit and losses on loans Q1 2005 - Q3 2010. NOK million

At the end of the third quarter of 2010, Norwegian banks’ accumulated profits were NOK 21.0 billion. For comparison, the accumulated profits were NOK 16.8 billion at the same time last year.

As a percentage of total assets, profit in the third quarter accounted for 0.17 per cent. At the same time last year this share was 0.15 per cent. On average, the result as a percentage of total assets has been 0.17 per cent over the last 10 years.

Banks. Selected items from the profit and loss statement. Q3 2003-Q3 2010. NOK million
 
  Net interest and credit
commission income		 Losses on loans     Net gain on securities
and currency		     Profit and loss for
the financial period		     Profit and loss as
percentage of total assets
 
Q3 2003 8 222 1 651  569 2 440 0.14
Q4 2003 7 680 1 498  972 3 069 0.19
Q1 2004 7 621  474  932 3 558 0.20
Q2 2004 7 864  236  629 3 367 0.18
Q3 2004 8 433  232  613 4 127 0.23
Q4 2004 8 193  222  882 3 974 0.24
Q1 2005 8 042  142  892 4 036 0.21
Q2 2005 7 822 -778 1 169 4 918 0.25
Q3 2005 8 384 -369 1 211 4 988 0.24
Q4 2005 8 824 -324 1 240 5 700 0.28
Q1 2006 8 333 -289 1 504 5 065 0.22
Q2 2006 9 313 -137  283 4 799 0.20
Q3 2006 9 181 -528  849 5 007 0.20
Q4 2006 9 513 -399 1 597 7 076 0.27
Q1 2007 9 498 7 1 481 5 358 0.19
Q2 2007 9 963  104 1 432 5 608 0.19
Q3 2007 11 088 21  143 5 357 0.18
Q4 2007 11 166 32  576 6 698 0.23
Q1 2008 11 801  323 -2 139 3 921 0.12
Q2 2008 11 211  429 2 247 6 580 0.20
Q3 2008 13 072 1 014 -168 4 587 0.13
Q4 2008 14 177 4 569 -1 454 1 260 0.03
Q1 2009 12 158 2 982 3 284 4 623 0.13
Q2 2009 12 239 1 711 2 557 6 451 0.17
Q3 2009 12 563 2 648 3 020 5 698 0.15
Q4 2009 12 228 1 644 1 571 3 862 0.10
Q1 2010 11 800  951 1 416 6 213 0.17
Q2 2010 11 852 1 306 -511 8 462 0.22
Q3 2010 13 416  768 2 451 6 290 0.17
 

Lower loan losses

Norwegian banks’ loan losses in the third quarter of 2010 were NOK 768 million; a decrease of NOK 538 million from the previous quarter. At the same time last year the loan losses were NOK 2.6 billion. To find a lower level of loan losses we need to go back to the second quarter of 2008.

High net interest income

Norwegian banks’ interest income increased from NOK 29.9 billion in the second quarter this year to NOK 32.9 billion in the third quarter. The interest expenses increased in the same period from NOK 18.1 to 19.5 billion. The net interest income was thus NOK 13.4 billion in the third quarter. This is an increase from NOK 11.9 billion in the second quarter. With the exception of the fourth quarter of 2008, the level of net interest income has never been higher.

As a percentage of total assets, the net interest income accounted for 0.37 per cent in the third quarter of 2010. This share has been stable between 0.32 and 0.38 per cent in the last 5 years.

Banks. Gain/loss on securities and currency Q1 2005 - Q3 2010

Gains on securities and currency

Norwegian banks’ total gains on securities and currency amounted to NOK 2.5 billion in the third quarter this year. In the second quarter there was a loss on securities and currency of NOK 511 million. The accumulated gains on securities and currency amounted to NOK 3.4 billion at the end of the third quarter. At the same time last year the accumulated gains amounted to NOK 3.0 billion.

In the third quarter of 2010 the net gain on currency amounted to NOK 5.4 billion; an increase of NOK 7.4 billion from the second quarter. On the other hand there was a loss on other financial assets and liabilities in the third quarter of NOK 5.9 billion; a decrease of NOK 9.6 billion from last quarter.

Fluctuations in the mortgage companies’ profits

Mortgage companies’ profits fell by 49.3 per cent from the second quarter and amounted to NOK 794 million in the third quarter of 2010. As a percentage of total assets, profits accounted for 0.06 per cent, down from 0.12 per cent in the previous quarter. Losses on securities and currency were the strongest contributor to the decrease. The profits in the third quarter of 2010 were almost NOK 1.1 billion higher than in the same quarter in 2009.

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 net interest income was NOK 2.7 billion in the third quarter, up from 1.9 billion in the second quarter this year. The level of net interest income in the third quarter this year is the highest ever recorded for mortgage companies.

Decrease in profits for finance companies

In the third quarter of 2010 there was a merger between a finance company and a bank. Comparisons of the results before and after the merger are therefore difficult for the finance companies.

Norwegian finance companies’ profits were NOK 230 million in the third quarter, and the net interest income amounted to NOK 443 million in the third quarter.

 

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