Savings banks increased profits sharply last year, from 10 billion in 2008 to 14 billion in 2009.

The main reason for improvement was huge gains in the securities market, said Savings Banks Association.

Interest rate reduction contributed in the opposite direction, and net interest income ended at 1.22 percent because of lower return on banks’ equity.

The losses increased last year, but stabilized at the end of last year and ended at 0.5 percent of gross loans. It was clearly higher than in 2008, but overall far lower than feared as the financial crisis arose.

Savings banks outside of DnB NOR had a surplus of 7 billion last year. That was far higher than in 2008, when the result was 2.6 billion.

Source:  NRK