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/en/bank-og-finansmarked/statistikker/orbofrk/kvartal
54286
Lower results for Norwegian banks
statistikk
2011-11-11T10:00:00.000Z
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, Q3 2011

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

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Lower results for Norwegian banks

Norwegian banks’ pre-tax profit in the third quarter of 2011 amounted to NOK 6.8 billion. A slight increase in net interest income, low gains on shares and currency, together with a higher loss on loans contributed to the decline in the banks’ profit by NOK 1.7 billion compared to the corresponding quarter the previous year.

Banks. Net interest income, profit and losses on loans Q1 2005-Q3 2011. NOK million

Net interest income amounted to NOK 13.5 billion in the third quarter of this year. Despite the fact that net interest income was higher compared to the three previous quarters, it was unchanged from the same quarter last year. As a percentage of total assets, this accounted for 0.35 per cent of total assets; a slight fall from 0.36 in the second quarter.

Interest income and interest expenses were NOK 34.1 billion and NOK 20.6 billion respectively, corresponding to a rise of NOK 1.2 and 1.1 billion compared to last year.

Banks. Selected items from the profit and loss statement. Q4 2008-Q3 2011. NOK million
 
  Net interest and credit
commission income		 Losses on loans Net gain on securities
and currency		 Profit and loss before
tax for the financial period		 Profit and loss before tax
as percentage of total assets
 
Q3 2011 13 518 1 160  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 0.28
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
 

Despite a relatively high and stable level of net interest income, the pre-tax profit in the third quarter was one of the two lowest since the fourth quarter of 2009. This should be seen in relation to low gains on securities and currency, as well as a higher loss on loans in the third quarter of 2011. As a percentage of total assets, the pre-tax profits fell from 0.28 per cent of total assets in the second quarter of 2011 to 0.18 per cent of total assets in the third quarter of 2011.

Norwegian banks’ losses on loans amounted to about NOK 1.2 billion in the third quarter of 2011; the highest level since the fourth quarter of 2010. Compared to the third quarter of 2010, losses on loans increased by NOK 413 million. As a percentage of total assets, losses were unchanged and amounted to 0.03 per cent of total assets.

Banks. Gain/loss on securities and currency Q1 2005-Q3 2011

Lower gains on shares and currency

Norwegian banks’ total gains on securities and currency amounted to NOK 573 million in the third quarter of 2011. Compared to the second quarter of 2011, this was a decline from NOK 1.5 billion. The gains were NOK 1.8 billion lower compared to the third quarter of 2010.

The strong reduction of the gains in the third quarter of 2011 compared to the same quarter in the previous year is mostly due to the fall in the gains on treasury bills, government bonds and other interest-bearing securities of NOK 496 million, loss on shares and other securities with variable return of NOK 2.9 billion, as well as a larger loss on currency of NOK 12.7 billion.

Net gain on other financial assets increased by NOK 14.3 billion and amounted to NOK 8.4 billion in the third quarter of 2011. Norwegian banks’ net gain on treasury bills was NOK 57 million, while net loss on shares and currency amounted to NOK 488 million and NOK 7.4 billion respectively. It is worth mentioning that a strong fluctuation in the actual value of claims and liabilities affects net gains and losses to a large extent.

Higher profits for mortgage companies

Mortgage companies’ pre-tax profits in the third quarter of 2011 came to NOK 1.7 billion, which is NOK 685 million higher compared to the third quarter of 2010. The profits’ share of total assets accounted for 0.11 per cent; up from a mere 0.04 per cent in the second quarter of 2011. Profits rose by NOK 1.2 billion in the third quarter of 2011 compared to the second quarter of 2011.

Net interest incomes have changed marginally from the second quarter of 2011 and amounted to NOK 1.8 billion in the third quarter of 2011. This is NOK 887 million lower than in the third quarter of 2010. Net interest incomes accounted for 0.12 per cent of total assets.

Mortgage companies’ loss on loans was NOK 49 million at the end of the year’s third quarter. This is an increase of NOK 45 million compared to last year’s third quarter. The losses on loans were at their lowest in the third quarter of this year since the fourth quarter of 2010.

Gains on securities and currency amounted to NOK 331 million, corresponding to a rise of NOK 1.4 billion compared to last year’s third quarter. A larger loss on treasury bills, government bonds and other interest-bearing securities of NOK 5.6 billion as well as a net loss on currency of NOK 3.2 billion are offset by a net gain on other financial assets and liabilities of NOK 9.2 billion. Compared to the third quarter of 2010, there was a loss of NOK 6.0 billion on treasury bills. However, the situation improved for currency and other financial assets, with net gains up by NOK 510 million and 6.9 billion respectively compared to the same period in the previous year.

Relatively good results for finance companies

Finance companies’ pre-tax profits were NOK 644 million in the third quarter of 2011. This is a decrease of NOK 68 million compared to the previous quarter. As a per cent of total assets, pre-tax profits for financial companies accounted for 0.56 per cent. Net interest rates were stable and amounted to NOK 1.4 billion.

Figures before and after the third quarter of 2010 are not directly comparable because of a merger between a finance company and a bank in the third quarter of 2010.

 

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