Home > Statistics > Investment service companies > 2018 > 4th quarter > Investment service companies’ commission income and operating profit fell in the fourth quarter of 2018

Published: 18 April 2019

Investment service companies’ commission income and operating profit fell in the fourth quarter of 2018

The net operating profit of investment service companies was EUR 34 million in the fourth quarter of 2018. EUR 29 million less operating profit was accumulated than in the corresponding quarter of the previous year. Commission income fell by EUR 52 million to EUR 99 million. These data derive from Statistics Finland’s statistics on investment service companies.

Investment service companies’ operating profit by quarter in 2014 to 2018, EUR million

Investment service companies offer their customers services related to investment services such as investment advisory services, asset management, and reception, intermediation and implementation of trading assignments in monetary instruments. Commission income and expenses are the main items related to investment service companies’ income and expenses in the profit and loss account. In addition to commission income and expenses, operating profit is considerably affected by administrative expenses. In some cases, other items, such as profit or loss from non-current assets classified as held for sale, can have a major impact on profit for the financial period.¶

Commission income and expenses

Commission income totalled EUR 99 million in the fourth quarter of 2018. The fall compared to the corresponding period of last year amounted to EUR 52 million, or 34.6 per cent. Compared to the previous quarter, EUR 12 million more commission income was accumulated. In turn, investment service companies’ commission expenses amounted to EUR 29 million, as in the last quarter of 2017. Compared to the previous quarter, commission expenses went up by EUR eight million.

In 2018, investment service companies’ total commission income stood at EUR 402 million, which was EUR 68 million less than in 2017. Investment service companies paid a total of EUR 104 million in commission expenses in the whole year, which was around EUR five million less than in the year before

Administrative expenses

In the fourth quarter of 2018, investment service companies had EUR 50 million in administrative expenses, which was EUR 12 million less than in the year before and EUR 10 million more than in the previous quarter. Personnel expenses amounted to EUR 28 million, or some 55 per cent of administrative expenses. Personnel expenses fell by EUR nine million from the previous year’s corresponding quarter.

On the annual level, the administrative expenses of investment service companies fell by 7.8 per cent from the previous year's EUR 201 million to EUR 185 million.

Balance sheets

At the end of 2018, the aggregate value of the balance sheets was EUR 347 million. The balance sheets decreased by 25 per cent from EUR 462 million at the end of 2017. The share of equity of the balance sheet total grew from 62 to around 70 per cent.

At the end of the fourth quarter of 2018, there were 61 investment service companies operating in Finland, of which 44 generated a positive operating result.

Source: Investment firms, Statistics Finland

Inquiries: Antti Suutari 029 551 3257, Jarkko Kaunisto 029 551 3551

Director in charge: Ville Vertanen

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Appendix tables

• Appendix table 1. Profit and loss accounts of investment firms 1.1.- 31.12.2018, EUR thousands (18.4.2019)
• Appendix table 2. Balance sheet of investment firms 1.1.- 31.12.2018, EUR thousands (18.4.2019)

Figures

• Appendix figure 1. Investment firms' commission income by quarter 2014-2018, EUR million (18.4.2019)
• Appendix figure 2. Investment firms commission income by quarter, 4th quarter 2014-2018, EUR million (18.4.2019)

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Updated 18.4.2019