Domestic banks’ net operating profit grew in the third quarter

In the third quarter of 2010, domestic banks’ net income from financial operations amounted to EUR 700 million. Their net income from financial operations contracted by 18 per cent from the respective quarter of the year before. However, compared to the previous quarter their net income from financial operations went up by 13 per cent. 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, %

Commission income rose slightly in the third quarter. Its year-on-year growth amounted to 2 per cent. Net gains from securities and foreign currency transactions increased by 17 per cent when compared with the third quarter of 2009. Interest expenses also went up slightly year-on-year.

Recorded impairment losses on loans and other commitments amounted to EUR 114 million in the third quarter. This is 4 per cent less than in the previous quarter and 51 per cent less than twelve months back. Impairment losses have been decreasing since the third quarter of 2009 when they totalled EUR 233 million. Nevertheless, their present level is still higher than it was prior to 2008.

The net operating profit of domestic banks amounted to EUR 441 million in the third quarter, which is 5 per cent more than one year earlier. The aggregate value of the balance sheets was EUR 410 billion. The balance sheets grew by 22 per cent year-on-year. A significant proportion of the balance sheet growth came from changed values of derivative instruments on the side of both assets and liabilities. The share of own equity in the total of the balance sheets was 5 per cent.

Source: Credit institutions' annual accounts, Statistics Finland

Inquiries: Marja Keltanen (09) 1734 3328, Paula Paavilainen (09) 1734 3539, rahoitusmarkkinat@stat.fi

Director in charge: Ari Tyrkkö

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Updated 8.12.2010

Referencing instructions:

Official Statistics of Finland (OSF): Financial statement statistics on credit institutions [e-publication].
ISSN=2342-5180. 3rd quarter 2010. Helsinki: Statistics Finland [referred: 22.11.2024].
Access method: http://www.stat.fi/til/llai/2010/03/llai_2010_03_2010-12-08_tie_001_en.html