Home > Statistics > Investment service companies > 2019 > 2nd quarter > Investment service companies’ operating profit and commission income decreased in the second quarter of 2019

Published: 11 October 2019

Investment service companies’ operating profit and commission income decreased in the second quarter of 2019

The net operating profit of investment service companies was EUR 30 million in the second quarter of 2019. Some EUR six million less operating profit was accumulated than in the corresponding quarter last year. Commission income fell by EUR 8 million to EUR 99 million from one year back. These data derive from Statistics Finland’s statistics on investment service companies.

Investment service companies’ operating profit by quarter in 2014 to 2019, 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 second quarter of 2019. The decrease compared to the corresponding period of last year amounted to 7.5 per cent or some EUR eight million. Compared to the first quarter of 2019, commission income was some EUR 10 million higher in the second quarter. Commission expenses amounted to EUR 23 million, which is around EUR one million less than in the corresponding quarter in 2018. Compared with the previous quarter, commission expenses were EUR 0.6 million lower.

Administrative expenses

In the second quarter of 2019, investment service companies had around EUR 48 million in administrative expenses, which corresponds with the administrative expenses accumulated in the second quarter of 2018. Compared to the first quarter of 2019, administrative expenses were some EUR 2.4 million higher. Personnel expenses amounted to some EUR 29 million, or 61 per cent of administrative expenses. Personnel expenses rose by EUR 0.6 million from the previous year’s corresponding quarter. Other administrative expenses were, in turn, around EUR 19 million.

Balance sheets

At the end of the second quarter of 2019, the aggregate value of the balance sheets was EUR 320 million. The balance sheets declined by 5.2 per cent year-on-year. The share of own equity of the balance sheet total rose from 63 per cent in the previous quarter to around 67.3 per cent.

At the end of the second quarter of 2019, there were 55 investment service companies operating in Finland, 35 of which generated a positive operating result.

Source: Investment firms, Statistics Finland

Inquiries: Jukka-Pekka Pyylampi 029 551 3002, Antti Suutari 029 551 3257

Director in charge: Ville Vertanen

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Appendix tables

• Appendix table 1. Profit and loss accounts of investment firms 1.1.- 30.6.2019, EUR thousands (11.10.2019)
• Appendix table 2. Balance sheet of investment firms 1.1.- 30.6.2019, EUR thousands (11.10.2019)

Figures

• Appendix figure 1. Investment firms' commission income by quarter 2014-2019, EUR million (11.10.2019)
• Appendix figure 2. Investment firms commission income by quarter, 2nd quarter 2014-2019, EUR million (11.10.2019)

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Updated 11.10.2019