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84848
Strong quarterly result in Norwegian banks
statistikk
2012-08-17T10:00:00.000Z
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, Q2 2012

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

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Strong quarterly result in Norwegian banks

Norwegian banks’ pre-tax profit in the second quarter of 2012 amounted to NOK 10.5 billion. A moderate decline in net interest income and costs and a loss on currency and gain on financial instruments contributed to this. The profit was NOK 0.5 billion higher than in the second quarter in 2011.

Banks. Net interest income, profit and losses on loans Q1 2005 - Q2 2012. NOK million

Banks’ net profit before tax in the 2nd quarter of 2012 was NOK 10.5 billion; NOK 0.5 billion higher than in the same quarter last year. Measured as a percentage of total assets, the pre-tax profit rose from 0.24 per cent in the first quarter 2012 to 0.26 per cent in the second quarter this year.

Net interest income stable

The net interest income was NOK 13.2 billion in the 2nd quarter this year, down from NOK 13.5 billion in the previous quarter. In the second quarter of 2011 the net interest income was NOK 0.4 billion lower. Net interest income as a percentage of total assets fell slightly from the 1st quarter to 0.33 per cent in the second quarter of 2012.

Banks. Selected items from the profit and loss statement. Q4 2008-Q2 2012. NOK million
  Net interest and credit
commission income 		Losses on loans Net gains on securities
and currency 		Profit and loss
before tax for the
financial period 		Profit and loss before
tax as percentage
of total assets
Q2 2012 13 183 1 060 2 001 10 544 0.29
Q1 2012 13 545 1 122 3 035 9 561 0.25
Q4 2011 13 975 2 114 1 403 7 466 0.19
Q3 2011 13 515 1 157  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 0.27
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

Banks. Gain/loss on securities and currency Q1 2005 - Q2 2012

Moderate loan losses

Norwegian banks' loan losses amounted to NOK 1.1 billion in the 2nd quarter of 2012. Thus, the loan losses were at the same level as in the second quarter last year and also at the same level as the losses in the first quarter of 2012. The quarterly loan losses in the last quarters were still low at about 0.03 to 0.06 per cent of total assets.

Gains on financial derivatives, losses on currency

Norwegian banks' total gains on securities and currency fell to NOK 2 billion in the second quarter of 2012 from NOK 3 billion the previous quarter. Compared to the 2nd quarter of 2011, the gains in the second quarter this year rose by NOK 0.5 billion.

The total gain in the 2nd quarter of 2012 was due to a moderate gain on securities and shares of NOK 0.7 billion and a loss on currency of NOK 1.1 billion, which was offset by a substantial gain on financial derivatives of NOK 4.9 billion. It is worth mentioning that strong fluctuations in the actual value of claims and liabilities affect these net gains and losses.

Mortgage companies' profits increase

Mortgage companies' pre-tax profits were influenced by large fluctuations in net gains and losses on financial derivatives, securities and currency in the last three quarters. However the profits are rising and were NOK 4.4 billion in 2nd quarter 2012. Net interest income remained stable but rose to NOK 3.4 billion in the 2nd quarter this year, up from NOK 2.5 billion in the first quarter this year. Net interest income as a percentage of total assets was 0.21 per cent in the second quarter this year, up from 0.13 per cent in the same quarter last year.

Mortgage companies' losses on loans in the 2nd quarter of 2012 were low, at NOK 95 million, while the loan losses in the 2nd quarter last year were NOK 87 million. As a percentage of total assets, the quarterly loan losses remain very low at between 0.0 and 0.006 per cent in the last six quarters.

Strong results for finance companies

Finance companies' pre-tax profits were NOK 1.3 billion in the first two quarters of 2012; the same level as in the corresponding months in 2011. As a percentage of total assets, the profit in the last six quarters has been stable at about 0.7 per cent.

Loan losses were still moderate but rose to NOK 221 million in the second quarter this year. Thus, the losses were NOK 54 million lower than the losses in the 1st quarter this year. As a percentage of total assets, the loan losses were 0.19 per cent in the 2nd quarter this year.