Home > Statistics > Financial statement statistics on credit institutions > 2012 > 2nd quarter > Domestic banks' net income from financial operations contracted by 51 per cent in the second quarter of 2012

Published: 27 September 2012

Domestic banks' net income from financial operations contracted by 51 per cent in the second quarter of 2012

In the second quarter of 2012, domestic banks’ net income from financial operations amounted to EUR 414 million. Their net income from financial operations fell by 51 per cent from the respective quarter of the year before. Compared with the previous quarter, the net income from financial operations went down by 47 per cent. These data derive from Statistics Finland’s financial statement statistics on credit institutions.

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

The contraction in the net income from financial operations is mainly explained by growing interest expenses. Over the quarter, the interest expenses of domestic banks amounted to EUR 1.4 billion, which is EUR 476 million more than one year previously. From the previous quarter, interest expenses grew by EUR 226 million. Of interest expenses in the second quarter, EUR 674 million concerned derivative instruments and other liabilities held for trading. In turn, interest income amounted to EUR 1.8 billion in the second quarter, which is EUR 38 million more than one year previously. From the previous quarter, interest income went down by EUR 141 million.

In the second quarter, the commission income of domestic banks amounted to EUR 409 million and increased by four per cent from the year before. Compared with the previous quarter, commission income remained unchanged. At the end of the quarter, net gains from securities and foreign currency transactions amounted to EUR 688 million, which is 767 per cent more than in the second quarter of 2011 and 123 per cent more than in the previous quarter.

Recorded impairment losses on loans and other commitments amounted to EUR 51 million in the second quarter. This is four per cent more than one year before.

The net operating profit of domestic banks amounted to EUR 626 million in the second quarter, which is 35 per cent more than one year earlier. From the previous quarter, net operating profit diminished by 24 per cent. The aggregate value of the balance sheets was EUR 537 billion. The balance sheets grew by 24 per cent from the previous year. The share of own equity in the total of the balance sheets was 4.0 per cent.

Source: Credit institutions' annual accounts, Statistics Finland

Inquiries: Marja Keltanen 09 1734 3328, Susanna Laine 09 1734 3317, rahoitusmarkkinat@stat.fi

Director in charge: Ari Tyrkkö

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Updated 27.9.2012