The Financial Supervisory Authority of Norway published its 2024 results report for financial institutions, showing higher aggregate profitability for Norwegian banks, life insurers, pension funds and non-life insurers compared with 2023. For banks, the improvement was largely attributed to significant gains for several banks following the merger of Fremtind Forsikring and Eika Forsikring, alongside slightly lower operating costs, while positive investment income supported stronger results for life insurance undertakings and pension funds. Banks achieved a return on equity of 15.4% in 2024, up 1.4 percentage points year on year, with net interest income broadly unchanged relative to total assets and the cost-to-income ratio falling from 39.0% to a historically low 37.6%. Loan losses were broadly stable at 0.13% of average lending, while non-performing loans rose slightly to 1.4% of the loan volume. In Finanstilsynet’s sample survey of consumer lending, lending grew 3.1% over the last year (adjusted for portfolio sales) and losses increased to 2.9% of loans. Life insurers’ collective portfolio return rose to 7.3% (from 4.8%), the investment choice portfolio improved to 14.8% (from 11.2%), and pension funds’ collective portfolio return increased to 10.2% (from 8.6%). For non-life insurers, profit before tax rose to 27.5% of insurance income (from 19.5%), and the combined ratio fell from 93 to 90.
Norwegian Finanstilsynet 2025-02-27
Financial Supervisory Authority of Norway reports 15.4% 2024 bank ROE and improved results across insurance and pensions
Norway's Financial Supervisory Authority's 2024 report shows increased profitability for banks, life insurers, pension funds, and non-life insurers compared to 2023. Banks' return on equity rose to 15.4%, aided by gains from the Fremtind Forsikring and Eika Forsikring merger and reduced operating costs. Life insurers and pension funds benefited from higher investment income, while non-life insurers' profit before tax increased to 27.5% of insurance income.