Operating profit of banks operating in Finland was EUR 1.6 billion in the last quarter of 2019

In the fourth quarter of 2019, the net income from financial operations of credit institutions engaged in banking in Finland amounted to EUR 1.1 billion and their operating profit was EUR 1.6 billion. Finland’s banking sector grew as the result of a significant company restructuring in the fourth quarter of 2018, which means that the data for the quarters after this are not fully comparable with previous quarters. 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, 4th quarter 2005 to 2019, EUR million

Interest income and expenses

In the fourth quarter of 2019, credit institutions engaged in banking in Finland accumulated EUR two billion in interest income. Their interest expenses amounted to EUR 0.9 billion. The net income from financial operations calculated as the difference between these was EUR 1.1 billion. Compared to the respective quarter in 2018, the net income from financial operations grew by eight per cent, i.e. around EUR 84 million.

Interest income for the whole year 2019 totalled EUR 8.1 billion. The increase from the year before was 16.3 per cent. Banks’ total interest expenses amounted to EUR 3.8 billion in 2019, having been EUR 4.2 billion in the previous year. Compared to the previous year, the net income from financial operations grew especially for Finnish commercial banks. This was affected by the company restructuring made in the Finnish banking sector in the fourth quarter of 2018.

Administrative expenses

Administrative expenses are a significant expense item for banks operating in Finland. Banks’ administrative expenses amounted to EUR 1.4 billion in the fourth quarter. The share of wages and salaries in administrative expenses was 53.7 per cent or around EUR 768 million. There was no change in the share of wages and salaries compared to the corresponding quarter of the previous year.

Operating profit/loss

The operating profit, or profit from continuing operations before taxes, was EUR 1,596 million in the fourth quarter of 2019. The operating profit of banks decreased by 14.2 per cent, or around EUR 265 million, compared to the corresponding period of the previous year. Because of the significant company restructuring, the operating profit of periods after the fourth quarter of 2018 is poorly comparable with the operating profit of earlier periods.

Balance sheet

The aggregate value of the balance sheets of banks was EUR 677 billion at the end of 2019. The aggregate value of the balance sheets increased by 2.4 per cent, or around EUR 16 billion, from the previous year. The share of own equity in the total of the balance sheets was 6.6 per cent, on average, corresponding to around EUR 44 billion. On average, the share of equity in the total of the balance sheets for all banks operating in Finland fell by 0.1 percentage points from one year back.

Source: Credit institutions' annual accounts, Statistics Finland

Inquiries: Jukka-Pekka Pyylampi 029 551 3002, Heidi Lauttamäki 029 551 3029, rahoitusmarkkinat@stat.fi

Director in charge: Jan Nokkala

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Updated 16.4.2020

Referencing instructions:

Official Statistics of Finland (OSF): Financial statement statistics on credit institutions [e-publication].
ISSN=2342-5180. 4th quarter 2019. Helsinki: Statistics Finland [referred: 22.11.2024].
Access method: http://www.stat.fi/til/llai/2019/04/llai_2019_04_2020-04-16_tie_001_en.html