Good annual results for banks

Norwegian banks’ profit before tax as a share of average total assets was 1.09 per cent in 2017; about the same as in 2016, according to the statistics Banks and mortgage companies.

Increased net interest income

In 2017, the banks’ net interest income amounted to NOK 76.9 billion. This is NOK 6.5 billion more than in the previous year. The increase is mainly due to lower total interest expenses and higher total interest rate incomes. Net interest income as a share of average total assets was 1.42 per cent in 2017, the same share as in 2016.

Lower net gains and loss on loans

Banks' total net change in value and net gains on securities, currency and other financial instruments was NOK 5.8 billion in 2017; a decrease of NOK 1.3 billion compared to 2016. In 2017, the loss on loans was NOK 6.2 billion; a decrease of NOK 6.0 billion from 2016. As a share of total assets, the banks’ loss on loans in 2017 was only 0.11 per cent, a decrease of 0.13 percentage points from 2016. 

Stable share of claims on customers and share of funding

At the end of 2017, loans to and claims on customers were 56.4 per cent of the banks’ total assets. As compared to the end of 2016, this share increased by 0.5 percentage points. Loans to and claims on credit institutions as a share of total assets decreased by 0.7 percentage points in the same period.

The banks are mostly funded by deposits and certificates and bonds. Deposits are the largest source of funding, with a share of 69.5 per cent of total assets by the end of 2017, while the certificates and bonds’ share of total assets was 12.6 per cent. Compared to the end of 2016, the deposits’ share of total assets has increased by 1.6 percentage points, while the bonds’ share fell by 0.5 percentage points.

Exchange rate fluctuations for the Norwegian kroner against other currencies affect the size of the Norwegian banks’ balance sheet figures. At the end of 2017, 57.0 per cent of the banks’ total bonds and 26.2 per cent of the total deposits received were in foreign currencies.

Stronger results for the mortgage companies

Norwegian mortgage companies’ pre-tax profit was NOK 7.8 billion in 2017; an increase from NOK 4.8 billion in 2016. The pre-tax profits’ share of total assets was 0.37 per cent in 2017, an increase of 0.14 percentage points from 2016.

The net interest income for mortgage companies amounted to NOK 17.4 billion in 2017; an increase from NOK 14.4 billion in 2016. In 2017, the total net change in value and net gains on securities, currency and other financial instruments was NOK -3.0 billion, compared to NOK -3.9 billion in 2016.