Good results for banks

Norwegian banks accumulated profit as a share of average total assets was 0.78 per cent in the first three quarters of 2019. Total comprehensive income for the period was NOK 41.7 billion, while other comprehensive income was NOK -1.3 billion.

Increased net interest income

In the three first quarters of 2019, the banks’ accumulated net interest income amounted to NOK 66.1 billion. This was NOK 5.8 billion more than in the same period of 2018. The increase is due to a higher increase in total interest income than in total interest expenses. Net interest income as a share of average total assets was 1.21 per cent in the first three quarters of 2019. This share is 0.04 percentage points higher than in the first three quarters of 2018.

Small increase in loss on loans

Banks’ accumulated credit loss on loans amounted to NOK 5.5 billion in the first three quarters of 2019. As a share of total assets, the banks’ credit loss on loans was 0.11 per cent in the first three quarters of 2019, which is 0.05 percentage points higher than in the same period of 2018.

Banks accumulated total net change in value and net gains on financial instruments in the first three quarters of 2019 amounted to NOK 5.4 billion. This was NOK 0.8 billion higher than in the same period of 2018.

Lower share of claims on customers and share of deposits

At the end of the 3rd quarter of 2019, loans to and claims on customers were 57.6 per cent of the banks’ total assets. Compared with the same period in 2018, this share has decreased by 1.8 percentage points. Loans to and claims on credit institutions as a share of total assets has decreased by 0.1 percentage points to 15.5 per cent, compared with the same period in 2018. 

The banks are mostly funded by deposits and interest-bearing securities. Deposits are the largest source of funding, with a share of 69.1 per cent of total assets by the end of the 3rd 2019. The securities’ share of total assets was 14.0 per cent. Compared to the end of the 3rd quarter of 2018, the deposits share of total assets has decreased by 2.3 percentage points, while the securities’ share increased by 0.8 percentage points.

Fluctuations in the exchange rates for the Norwegian kroner against other currencies affect the size of the Norwegian banks’ balance sheet figures. At the end of the 3rd quarter of 2019, 60.0 per cent of the banks’ total interest-bearing securities and 25.3 per cent of the total deposits received were in foreign currencies.

Marginally higher net interest income for the mortgage companies

Norwegian mortgage companies’ accumulated profit amounted to NOK 6.4 billion in the first three quarters of 2019. The profits share of total assets was 0.28 per cent in the first three quarters of 2019.

The accumulated net interest income for mortgage companies amounted to NOK 12.2 billion in the first three quarters of 2019. This is a marginal increase compared with the same period in 2018.

The mortgage companies are mostly funded by interest-bearing securities. By the end of the 3rd of 2019, the securities as a share of total assets was 73.5 per cent. This share is 1.3 percentage points lower than at the same time in 2018. By the end of the first three quarters of 2019, 65.9 per cent of the mortgage companies’ debt securities was issued in foreign currency.