Home > Statistics > Financial statement statistics on credit institutions > 2017 > 2nd quarter > Operating profit of banks operating in Finland fell in the second quarter of 2017, net income from financial operations remained unchanged

Published: 13 October 2017

Operating profit of banks operating in Finland fell in the second quarter of 2017, net income from financial operations remained unchanged

The net income from financial operations of credit institutions engaged in banking in Finland amounted to EUR 621 million in the second quarter of 2017 and operating profit to EUR 430 million. Compared with the previous year, net income from financial operations grew by EUR one million and operating profit decreased by EUR 169 million. 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, 2nd quarter 2005 to 2017, EUR million

Interest income and expenses

The interest income of credit institutions engaged in banking in Finland amounted to EUR 1.1 billion in the second quarter, down by nearly EUR 73 million from one year ago. Interest expenses also diminished by EUR 73 million to EUR 508 million. The 6,0 per cent fall in interest income and the 12.6 per cent decrease in interest expenses turned the long contracted net income from financial operations to a growth of 0,2 per cent.

Administrative expenses

Administrative expenses is the single largest expenditure item of banks operating in Finland. Over the second quarter, the administrative expenses of banks amounted to EUR 725 million, which is EUR eight million less than one year previously. Wages and salaries made up 47.2 per cent of administrative expenses. Compared with the second quarter of 2016, combined wages and salaries diminished by EUR 24 million to EUR 342 million.

Operating profit

Operating profit, or profit from continuing operations before taxes, was EUR 430 million. Relative to EUR 599 million in 2016, operating profit went down by EUR 169 million, or by 28.2 per cent. In particular, distinctly decreased gains on financial assets and liabilities held for trading explain the decrease in operating profit. Variations in operating profit by quarter can generally be large.

Balance sheet

The aggregate value of the balance sheets was EUR 360 billion. The balance sheet was 35.8 per cent down from one year ago. The share of equity of the balance sheet total was 4.7 per cent, or nearly EUR 17 billion. Last year, banks’ equity amounted to EUR 27 billion.

A company restructuring made in the Finnish banking sector in the first quarter of 2017 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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Appendix tables

• Appendix table 1. Profit and loss accounts of banks operating in Finland 1.1.- 30.6.2017, EUR thousands (13.10.2017)
• Appendix table 2. Balance sheets of banks operating in Finland 1.1.- 30.6.2017, EUR thousands (13.10.2017)

Figures

• Appendix figure 1. Interest income and commission income of banks operating in Finland, 2nd quarter 2005 to 2017, EUR million (13.10.2017)
• Appendix figure 2. Operating profit of banks operating in Finland, by quarter in 2009 to 2017, EUR million (13.10.2017)

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Updated 13.10.2017