Financial corporations, balance sheet, May 2010

Norwegian banks’ loans to different industries have increased sharply in the last 10 years. From May 2000 to May 2010 these loans have increased by almost 159 per cent. The period from January 2005 to December 2008 had the sharpest increase. In this period the industry loans increased by NOK 580 billion, or a total of 123.5 per cent. However, the growth is somewhat affected by changes in currencies. Throughout most of 2009 there was a decrease in banks’ loans to different industries, while there has been an increase in all months of 2010 so far. Despite this, the 12-month growth in industry loans is negative. The reason for this is that the growth has not come up to the level that followed the sharp increase to the end of December 2008.

Loans to real estate, renting and business activities increase again

Loans to real estate, renting and business activities are by far the largest industry, constituting a total of 40.5 per cent of the total industry loans. Loans to this industry increased by almost NOK 1 billion from April to May 2010. This increase followed a decrease of over NOK 3 billion the previous month, but taking the last year as a whole, loans to real estate, renting and business activities have increased by NOK 10.5 billion, or 2.6 per cent.

Highest growth in shipping in almost one year

The second largest industry, sea transport abroad and transport via pipelines, more popularly called shipping, accounted for 8.6 per cent of the total industry loans at the end of May 2010. In seven of the last twelve months there has been a decrease in loans to this industry, but in May these loans increased by NOK 5 billion, or 6.3 per cent. This is the largest monthly increase in loans to shipping since June 2009. The increase of NOK 5 billion is also the largest increase in loans to any single industry from April 2010 to May 2010¹. For comparison, the second largest increase was NOK 1.6 billion in loans to the industry building and construction work.

In addition to loans to shipping and real estate, renting and business activities, loans to building and construction work, professional and financial services and industry all had an increase of over NOK 1 billion in May 2010. Loans to real estate development followed with an increase of NOK 922 billion, while loans to extraction of crude petroleum and natural gas had an increase of NOK 844 billion.

Largest percentage increase in loans to extraction of crude petroleum and natural gas

The increase in loans to extraction of crude petroleum and natural gas was almost 58 per cent, and was thereby the industry with the largest percentage increase from April 2010 to May 2010. These loans are however modest compared to other industries, amounting to NOK 2.3 billion, constituting only 0.23 per cent of the total industry loans.

Loans to six industries had a decrease from April 2010 to May 2010. These were; fish farming services, water supply, drainage and waste disposal, electricity and hot water supply, businesslike services, fishing and hunting, and ship and boat building. The largest decrease was in loans to the industry ship and boat building. Loan to this industry decreased by NOK 2 billion, or a total of 17.6 per cent, from April 2010 to May 2010. Loans to ship and boat building constitute only around 1 per cent of the total industry loans.

¹A large part of Norwegian banks’ loans to the shipping industry are in foreign currencies. As all data in the balance sheet are converted to Norwegian currency, fluctuations in the Norwegian currency against foreign currencies therefore have an effect on the balance sheet figures concerning these loans.

Tables