Net income from financial operations and operating profit of banks operating in Finland grew in the first quarter of 2018

In the first quarter of 2018, the net income from financial operations of credit institutions engaged in banking in Finland amounted to EUR 544 million and their operating profit to EUR 713 million. Compared to the corresponding quarter of the previous year, net income from financial operations increased by EUR 56 million and operating profit by EUR three million. 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, 1st quarter 2005 to 2018, EUR million

Interest income and expenses

In the first quarter of 2018, credit institutions engaged in banking in Finland accumulated EUR 1.2 billion in interest income and EUR 651 million in interest expenses. The net income from financial operations calculated as the difference between these was EUR 544 million. Compared to the corresponding quarter of the year before, net income from financial operations increased by EUR 56 million, that is, around 11.6 per cent. Due to the renewed FINREP reporting practices of credit institutions, the net income from financial operations is not, however, in all respects fully comparable between 2018 and previous years.

Administrative expenses

Administrative expenses are the single largest expenditure item of banks operating in Finland. In the first quarter, banks had EUR 672 million in administrative expenses, which was EUR 35 million less than in the year before. Wages and salaries represented 47.3 per cent of administrative expenses. Compared to the first quarter of 2017, total wages and salaries decreased by EUR 28 million to EUR 318 million.

Operating profit

The operating profit, or profit from continuing operations before taxes, was EUR 713 million. Compared to the corresponding quarter of the year before, operating profit grew by EUR three million. Due to the renewed FINREP reporting practices of credit institutions, the operating profit is not, however, in all respects fully comparable between 2018 and previous years.

Balance sheet

The aggregate value of the balance sheets was EUR 359 billion. The balance sheet was 4.3 per cent down from one year ago. The share of own equity in the total of the balance sheets was 4.1 per cent or around EUR 15 billion. Compared to the corresponding period of the previous quarter, banks’ own equity declined by EUR 1.8 billion. Due to the renewed FINREP reporting practices of credit institutions, the balance sheet items are not, however, in all respects fully comparable between 2018 and previous years.

A company restructuring made in the Finnish banking sector in the first quarter of 2018 explains part of the unexceptionally large changes in the profit and loss account and balance sheets and, in particular, in equity.

Source: Credit institutions' annual accounts, Statistics Finland

Inquiries: Antti Suutari 029 551 3257, Jarkko Kaunisto 029 551 3551, rahoitusmarkkinat@stat.fi

Director in charge: Ville Vertanen

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Updated 20.6.2018

Referencing instructions:

Official Statistics of Finland (OSF): Financial statement statistics on credit institutions [e-publication].
ISSN=2342-5180. 1st quarter 2018. Helsinki: Statistics Finland [referred: 28.12.2024].
Access method: http://www.stat.fi/til/llai/2018/01/llai_2018_01_2018-06-20_tie_001_en.html