Net income from financial operations and operating profit of banks operating in Finland decreased in the first quarter of 2017

The net income from financial operations of credit institutions engaged in banking in Finland amounted to EUR 488 million in the first quarter of 2017 and operating profit was EUR 710 million. The net income from financial operations and operating profit contracted by 18 per cent from the respective quarter of the year before. These data derive from Statistics Finland’s financial statement statistics on credit institutions.

Net income from financial operations and operating profit of banks operating in Finland, 1st quarter 2005 to 2017, EUR million

Interest income and expenses

The interest income of banks operating in Finland was EUR 1.1 billion in the first quarter, which was EUR 181 million less than the EUR 1.3 billion in the corresponding period in 2016. From the previous quarter, the drop amounted to EUR 52 million. Over the quarter, interest expenses amounted to EUR 586 million, which is EUR 76 million and 11.5 per cent less than one year previously. From the previous quarter, interest expenses grew by EUR 32 million.

Commission income

Commission income amounted to EUR 571 million in the first quarter, which is EUR 37 million more than one year earlier. Compared to the previous quarter, commission income went up by EUR 26 million.

Administrative expenses

Administrative expenses is the single largest expenditure item of banks operating in Finland. They remained almost on level with the corresponding quarter in 2016 rising from EUR 703 million to EUR 707 million. The biggest sub-item among administrative expenses, wages and salaries, declined from EUR 363 million in 2016 to EUR 345 million. Compared to the previous quarter, administrative expenses decreased by EUR 95 million.

Operating profit

Operating profit, or profit from continuing operations before taxes, was EUR 710 million in the first quarter of the year. Compared to the previous quarter, operating profit went down by EUR 62 million and by EUR 158 million from one year ago. In addition to net income from financial operations, especially dividend income, gains on financial assets and liabilities held for trading, and other operating income decreased clearly compared to one year ago. The considerable drop in commission expenses helped level the decline in the operating profit.

Balance sheet

The aggregate value of the balance sheets was EUR 375 billion. The balance sheet was 33.4 per cent down from EUR 563 billion one year ago. The share of own equity in the total of the balance sheets was 4.4 per cent in the first quarter. Equity decreased by EUR 10 billion from the previous year, from EUR 26.6 billion to EUR 16.6 billion. In the previous quarter, equity amounted to EUR 27.1 billion.

A company restructuring made in the Finnish banking sector explains a majority of the unexceptionally large changes in the balance sheets and, in particular, in equity.

Source: Credit institutions' annual accounts, Statistics Finland

Inquiries: Jarkko Kaunisto 029 551 3551, Pekka Tamminen 029 551 2460, rahoitusmarkkinat@stat.fi

Director in charge: Ville Vertanen

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Updated 22.6.2017

Referencing instructions:

Official Statistics of Finland (OSF): Financial statement statistics on credit institutions [e-publication].
ISSN=2342-5180. 1st quarter 2017. Helsinki: Statistics Finland [referred: 16.11.2024].
Access method: http://www.stat.fi/til/llai/2017/01/llai_2017_01_2017-06-22_tie_001_en.html