Home > Statistics > Investment service companies > 2019 > 4th quarter > Investment service companies’ commission income and operating profit increased in the fourth quarter of 2019

Published: 16 April 2020

Investment service companies’ commission income and operating profit increased in the fourth quarter of 2019

The net operating profit of investment service companies was EUR 47 million in the last quarter of 2019. EUR 12 million more operating profit was accumulated than in the corresponding quarter of the previous year. Commission income increased by EUR 31 million from one year back to EUR 130 million. 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 130 million in the fourth quarter of 2019. Growth compared to the corresponding period of the previous year amounted to 31 per cent or EUR 31 million. Compared to the previous quarter, commission income was, in turn, EUR 39 million higher. Commission expenses amounted to EUR 32 million, which is EUR three million more than in the corresponding quarter in 2018. Compared with the previous quarter, there was EUR 11 million more commission expenses.

In 2019, investment service companies’ total commission income stood at EUR 408 million, which was EUR five million more than in 2018. Investment service companies paid a total of EUR 100 million in commission expenses in the whole year, which was EUR four million less than in the previous year.

Administrative expenses

In the fourth quarter of 2019, investment service companies had around EUR 50 million in administrative expenses, which corresponds with the amount of administrative expenses in the corresponding quarter of 2018. Compared with the previous quarter, there was EUR nine million more expenses. Personnel expenses amounted to some EUR 29 million, or 57 per cent of administrative expenses. Personnel expenses increased by EUR one million from the previous year’s corresponding quarter. Other administrative expenses were EUR 22 million.

On the annual level, investment service companies’ administrative expenses amounted to EUR 184 million. From the previous year, expenses fell by 0.8 per cent, which is around EUR two million.

Balance sheets

At the end of 2019, the aggregate value of the balance sheets was EUR 405 million. Balance sheets grew by 16.72 per cent year-on-year, while the aggregate value of the balance sheets was EUR 347 million at the end of the previous year. The share of own equity of the balance sheet total decreased from 70 per cent one year back to around 68 per cent.

At the end of the fourth quarter of 2019, there were 54 investment service companies operating in Finland, of which 45 generated a positive operating result.

Source: Investment firms, Statistics Finland

Inquiries: Jukka-Pekka Pyylampi 029 551 3002, Heidi Lauttamäki 029 551 3029

Director in charge: Jan Nokkala

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Appendix tables

• Appendix table 1. Profit and loss accounts of investment firms 1.1.- 31.12.2019, EUR thousands (16.4.2020)
• Appendix table 2. Balance sheet of investment firms 1.1.- 31.12.2019, EUR thousands (16.4.2020)

Figures

• Appendix figure 1. Investment firms' commission income by quarter 2014-2019, EUR million (16.4.2020)
• Appendix figure 2. Investment firms commission income by quarter, 4th quarter 2014-2019, EUR million (16.4.2020)

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Updated 16.4.2019