Published: 18 April 2017
Domestic banks' net income from financial operations remained almost unchanged, operating profit grew clearly in the fourth quarter of 2016
In the fourth quarter of 2016, domestic banks’ net income from financial operations amounted to EUR 604 million and remained almost unchanged compared with the corresponding quarter of the previous year. The operating profit grew from EUR 421 million in the last quarter of the previous year to EUR 800 million. The whole year's operating profit in turn fell from the previous year's EUR 2.9 billion to EUR 2.7 billion. These data derive from Statistics Finland’s financial statement statistics on credit institutions.
Domestic banks’ net income from financial operations and operating profit, 4th guarter 2005–2016, EUR million
Interest income and expenses
Over the fourth quarter, the interest income of domestic banks amounted to EUR 971 million, which is EUR 310 million and 24.1 per cent less than one year previously. From the previous quarter, interest income went down by EUR 105 million. Over the quarter, interest expenses amounted to EUR 367 million, which is EUR 311 million and 45.8 per cent less than one year before. From the previous quarter, interest expenses went down by EUR 146 million.
Interest income for the whole year amounted to EUR 4.3 billion. In 2015, interest income generated was 15 per cent, or EUR 652 million higher. Correspondingly, interest expenses generated for the whole year amounted to EUR 2.1 billion, while in 2015, interest expenses were 25.3 per cent and EUR 522 million higher.
Commission income amounted to EUR 490 million in the fourth quarter, which is EUR 31 million more than one year earlier. Compared to the previous quarter, commission income went up by EUR 36 million. Commission income from the whole year amounted to EUR 1.9 billion. From the previous year, commission income rose in total by EUR 31 million.
In the fourth quarter of 2016, domestic banks’ administrative expenses amounted to EUR 709 million. Compared with the previous quarter, expenses went up by EUR 128 million, from one year ago, in turn, by EUR 45 million. Over the year, administrative expenses amounted to EUR 2.6 billion, or 3.8 per cent more than in 2015.
The operating profit or profit from continuing operations before taxes was EUR 800 million in the fourth quarter, having been EUR 542 million in the third quarter. The operating profit of domestic banks generated in 2016 totalled EUR 2.7 billion, which is EUR 0.3 billion and 8.7 per cent less than one year ago.
The aggregate value of the balance sheets was EUR 426 billion. The balance sheet was 11.6 per cent down from one year ago. In the last quarter, the share of own equity in the total of the balance sheets rose to 6.2 per cent from the previous year's 5.5 per cent.
Source: Credit institutions' annual accounts, Statistics Finland
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Tables in databases
Official Statistics of Finland (OSF):
Financial statement statistics on credit institutions [e-publication].
ISSN=2342-5180. 4th quarter 2016. Helsinki: Statistics Finland [referred: 23.4.2017].
Access method: http://www.stat.fi/til/llai/2016/04/llai_2016_04_2017-04-18_tie_001_en.html