Norwegian banks’ profit as a share of average total assets was 0.23 per cent in the first quarter of 2021. Total comprehensive income was NOK 14.2 billion, while other comprehensive income was NOK 560 million, according to updated figures from Banks and mortgage companies.

Decreased net interest income

In the first quarter of 2021, the banks’ The difference between the total interest rate income and total interest rate expenses. amounted to NOK 20.9 billion. This is NOK 3.0 billion less compared to the net interest income in the same period last year. Net interest income as a share of average total assets was 0.34 per cent at the end of the first quarter of 2021. This share is 0.07 percentage points lower compared to the first quarter of 2020.

Decreased credit losses on loans, but increased confirmed losses

The banks’ credit losses on loans in the first quarter of 2021 amounted to NOK 1.3 billion. As a share of total assets, the banks’ credit loss on loans was 0.02 per cent, which is 0.17 percentage points lower compared to the first quarter of 2020.

Out of the total credit losses on loans in the first quarter of 2021, NOK 3.9 billion was Credit losses on loans when the credit loss is confirmed, and the loan is deducted from the balance sheet., this is NOK 3.1 billion more compared to the same period last year. In 2020 the banks increased their loan loss provisions because of changes in expected credit risk due to the corona pandemic. In the first quarter of 2021 some of these loan loss provisions have been reversed. In total, there was a decrease in total credit losses on loans despite the increase in confirmed losses.

Increased share of claims on customers

At the end of the first quarter of 2021, loans to and claims on Includes Norwegian and foreign households, general government, non-financial corporations and the financial corporations not included in the credit institutions. were 55.0 per cent of the banks’ total assets. Compared to the same period in 2020, this share has increased by 2.7 percentage points. Loans to and claims on Includes here Norwegian and foreign banks, mortgage companies, financial corporations, state lending institutions etc., central banks and multilateral development banks. as a share of total assets has decreased by 0.3 percentage points from the previous year to 16.9 per cent.

Increased share of deposits from customers

Deposits are the largest source of funding, with a share of 70.6 per cent of total assets by the end of the first quarter of 2021. The deposits’ share of total assets increased with 5.5 percentage points compared to the first quarter of 2020. Interest-bearing securities amounted to 13.1 per cent of total assets. Compared to the first quarter of 2020, the securities’ share of total assets increased by 0,4 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 first quarter of 2021, 59.5 per cent of the banks’ total interest-bearing securities and 21.2 per cent of the total deposits received were in foreign currencies.