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84846
Good quarterly results in Norwegian banks
statistikk
2012-06-20T10:00:00.000Z
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, Q1 2012

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

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Good quarterly results in Norwegian banks

Norwegian banks’ pre-tax profit in the first quarter of 2012 amounted to NOK 9.6 billion. An increase in net interest income, high gains on currency and losses on financial instruments contributed to this. The profit was still NOK 3 billion higher than in the first quarter in 2011.

Banks. Net interest income, profit and losses on loans Q1 2005-Q1 2012. NOK million

Banks’ net profit before tax in the 1st quarter of 2012 was NOK 9.6 billion; NOK 3 billion higher than in the same quarter last year. Measured as a percentage of total assets, the pre-tax profit rose from 0.18 per cent in the first quarter 2011 to 0.25 per cent in the first quarter this year. The net profit in the 1st quarter of 2012 was NOK 2.1 billion higher than in the 4th quarter last year.

Net interest income still high

The net interest income was NOK 13.5 billion in the 1st quarter this year, down from NOK 14 billion in the previous quarter. In the first quarter of 2011 the net interest income was NOK 1 billion lower. Net interest income as a percentage of total assets fell slightly from the 4th quarter last year to 0.34 per cent in the first quarter of 2012.

Banks. Selected items from the profit and loss statement. Q4 2008-Q1 2012. NOK million
  Net interest and
   credit commission income 		   Losses on loans    Net gains on securities
and currency 		Profit and loss
   before tax for the
financial period 		Profit and loss
   before tax as percentage
of total assets
Q1 2012 13 545 1 122 3 035 9 561 0.25
Q4 2011 13 975 2 114 1 403 7 466 0.19
Q3 2011 13 515 1 157  573 6 795 0.18
Q2 2011 12 783  957 1 498 10 044 0.28
Q1 2011 12 676  996  444 6 530 0.18
Q4 2010 12 837  976 1 165 10 018 0.27
Q3 2010 13 455  747 2 413 8 454 0.23
Q2 2010 11 851 1 306 -510 11 081 0.29
Q1 2010 11 801  951 1 416 8 277 0.23
Q4 2009 12 228 1 644 1 571 5 571 0.15
Q3 2009 12 563 2 648 3 020 7 838 0.21
Q2 2009 12 239 1 711 2 557 9 091 0.24
Q1 2009 12 158 2 982 3 284 6 538 0.18
Q4 2008 14 177 4 569 -1 454 2 041 0.05

Moderate loan losses

Norwegian banks’ loan losses amounted to NOK 1.1 billion in the 1st quarter of 2012. The loan losses were then NOK 126 million higher than the losses in the first quarter last year but NOK 1.0 billion lower than the losses in the last quarter of 2011. The quarterly loan losses in the last five quarters were still low at about 0.03 to 0.06 per cent of total assets.

Banks. Gain/loss on securities and currency Q1 2005-Q1 2012

Gains on securities and currency, losses on financial derivatives

Norwegian banks’ total gains on securities and currency rose to NOK 3 billion in the first quarter of 2012 from NOK 1.4 billion the previous quarter. Compared to the first quarter of 2011, the gains in the first quarter this year rose by NOK 0.4 billion.

The gain in the 1st quarter of 2012 was due to a gain on securities and currency of NOK 6.8 billion, which was offset by a high loss on financial derivatives of NOK 3.8 billion. It is worth mentioning that strong fluctuations in the actual value of claims and liabilities affect these net gains and losses.

Profits for mortgage companies influenced by unrealised losses on financial derivatives

Mortgage companies’ pre-tax profits were influenced by large unrealised revaluations on financial derivatives in the 1st quarter of 2012 as they were in the last quarter of 2011. Net interest income remained stable and rose to NOK 2.5 billion in the first quarter this year, up from NOK 2.1 billion in the last quarter of 2011. Net interest income as a percentage of total assets was 0.16 per cent in the first quarter this year, at about the same level as in the same quarter last year.

Mortgage companies’ loss on loans in the 1st quarter of 2012 was low, at just NOK 1 million, while the loan losses in the first quarter last year were NOK 62 million. As a percentage of total assets, the quarterly loan losses remain very low at between 0.0 and 0.006 per cent in the last five quarters.

Gains on securities and currency were NOK 3.8 billion in the first quarter this year. These gains were NOK 1 billion higher than the gains in the same quarter the previous year.

Still strong results for finance companies

Finance companies’ pre-tax profits were NOK 716 million in the 1st quarter of 2012, which was an increase of NOK 113 million from the first quarter last year. The profits rose by NOK 55 million compared to the last quarter of 2011. As a percentage of total assets, the profit rose to 0.61 per cent in the 1st quarter of 2012, and was between 0.54 and 0.64 per cent during all quarters of 2011.

Loan losses were still moderate and amounted to NOK 167 million in the first quarter this year. The losses were then NOK 18 million lower than the losses in the 1st quarter last year. As a percentage of total assets, the loan losses were 0.14 per cent in the 1st quarter this year.