Home > Statistics > Financial statement statistics on credit institutions > 2019 > 3rd quarter > Operating loss of banks operating in Finland was EUR 0,7 billion in the third quarter of 2019

Published: 18 December 2019

Operating loss of banks operating in Finland was EUR 0,7 billion in the third quarter of 2019

In the third quarter of 2019, the net income from financial operations of credit institutions engaged in banking in Finland amounted to some EUR 1.1 billion and their operating loss was EUR 0.7 billion. Finland’s bank sector grew as the result of a significant company restructuring in the fourth quarter of 2018, which means that the data for the quarters after this are not fully comparable with previous quarters. 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, 3rd quarter 2005 to 2019, EUR million

Interest income and expenses

In the third quarter of 2019, credit institutions engaged in banking in Finland accumulated EUR two billion in interest income. Their interest expenses amounted to EUR 0.9 billion. The net income from financial operations calculated as the difference between these was about EUR 1.1 billion. Compared to the respective quarter in 2018, net income from financial operations increased especially for Finnish commercial banks. In terms of foreign banks, their net income from financial operations decreased compared to the same quarter in the year before. This was affected by the company restructuring made in the Finnish banking sector in the fourth quarter of 2018.

Administrative expenses

Administrative expenses are a significant expense item for banks operating in Finland. Banks’ administrative expenses amounted to around EUR 1.4 billion in the third quarter. Wages and salaries represented 59.2 per cent of administrative expenses, while in the second quarter of 2019 wages and salaries represented 65.3 per cent of administrative expenses. Because of a significant company restructuring, the administrative expenses after the fourth quarter of 2018 are poorly comparable with earlier quarters.

Operating profit/loss

The operating loss, or loss from continuing operations before taxes, was EUR 697 million in the third quarter of 2019. The operating loss is exceptional relative to previous quarters, and the loss increased especially due to one-off items. Because of a significant company restructuring, the operating profit after the fourth quarter of 2018 is poorly comparable with the operating profit of earlier quarters.

Balance sheet

The aggregate value of the balance sheets of banks was some EUR 725 billion. Of this, the share of equity was around EUR 42 billion which was, on average, 5.8 per cent of the balance sheet total. Cooperative banks belonging to OP Financial Group had the biggest share of equity in the balance sheet total, around 12.3 per cent. Foreign banks, in turn, had the lowest share of equity in the balance sheet total, some 0.4 per cent. The large company restructuring made in the Finnish banking sector in the fourth quarter of 2018 had a considerable effect on banks’ balance sheet total and own equity.

Source: Credit institutions' annual accounts, Statistics Finland

Inquiries: Jukka-Pekka Pyylampi 029 551 3002, Heidi Lauttamäki 029 551 3029, 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.- 30.9.2019, EUR thousands (18.12.2019)
• Appendix table 2. Balance sheets of banks operating in Finland 1.1.- 30.9.2019, EUR thousands (18.12.2019)

Figures

• Appendix figure 1. Interest income and commission income of banks operating in Finland, 3rd quarter 2005 to 2019, EUR million (18.12.2019)
• Appendix figure 2. Operating profit of banks operating in Finland, by quarter in 2009 to 2019, EUR million (18.12.2019)

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Updated 18.12.2019