Home > Statistics > Financial statement statistics on credit institutions > 2010 > 1st quarter > Domestic banks’ net income from financial operations contracted and commission income grew in the first quarter

Published: 16 June 2010

Domestic banks’ net income from financial operations contracted and commission income grew in the first quarter

In the first quarter of 2010, domestic banks’ net income from financial operations amounted to EUR 742 million. Their net income from financial operations contracted by 12 per cent from the respective quarter of the year before and by nine per cent from the previous quarter. The year-on-year contraction of their net income from financial operations has now continued for five successive quarters. These data derive from Statistics Finland’s Financial statement statistics on credit institutions.

Year-on-year change in net income from financial operations of domestic banks by quarter, %

The fallen net income from financial operations is particularly explained by the narrowing of the difference in the interest rate between the loan and deposit stocks, i.e. interest margin, which continued through the first quarter. Considerably slowed down growth of the credit stock of domestic banks also influenced their net income from financial operations.

Commission income grew further in the first quarter. Its year-on-year growth amounted to 14 per cent. By contrast, net gains from securities and foreign currency transactions diminished by 21 per cent from the first quarter of 2009. Nevertheless, net gains from securities and foreign currency transactions continued to be higher than normal and their reduction should be viewed against their exceptionally high level in the comparison quarter.

Recorded impairment losses on loans and other commitments amounted to EUR 127 million in the first quarter. This is 18 per cent less than in the previous quarter and 26 per cent less than twelve months back. Impairment losses started to go up at the beginning of 2008 and the highest amount of them was recorded in the third quarter of 2009, when they totalled EUR 233 million.

The net operating profit of domestic banks amounted to EUR 660 million in the first quarter, which is 13 per cent less than one year earlier. The aggregate value of the balance sheets was EUR 355 billion. The balance sheets grew by two per cent year-on-year. The share of own equity in the total of the balance sheets was 5.6 per cent.

Source: Credit institutions' annual accounts

Inquiries: Marja Keltanen (09) 1734 3328, Saara Roine (09) 1734 3325, rahoitusmarkkinat@stat.fi

Director in charge: Ari Tyrkkö

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Updated 16.06.2010