Income Statement Statistics - Q2 2016

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Summary:

• In Q2 2016, banking offices resident in Ireland reported total operating income of €2.5 billion, a decrease of 1 per cent since Q2 2015.
• Banking offices resident in Ireland reported total profits of €223 million during the second quarter of 2016.
• Interest income received from loans and deposits accounted for €1.33 billion, or 54 per cent, of total operating income.
• In Q2 2016, interest payable on loans and deposits totalled €294 million, a reduction of 26 per cent since Q2 2015.

Income Statement

Total interest income from loans and deposits totalled €1.33 billion during Q2 2016, a decrease of 8 per cent since Q2 2015. Domestic market ^[1] banks accounted for €1.1 billion of total interest income from loans and deposits (Chart 1). Since Q4 2012, interest payable on loans and deposits, which includes interest related to inter-bank lending, has decreased by 80 per cent to €294 million in Q2 2016. Both domestic market banks and IFSC banks experienced large declines with the former falling by 87 per cent and the latter falling by 49 per cent (Chart 2). The fall in interest income and expenses reflects lower market rates and deleveraging in the sector.

General expenses and other operating costs totalled €1.44 billion in Q2 2016. Wages and salaries, which is the primary driver of general expenses, accounted for €574 million of this. Domestic market banks accounted for €433 million of total wages and salaries (Chart 3).

In Q1 2016, banking offices resident in Ireland reported total profit^[2] after interest and tax of €223 million.

Further information:

The data and explanatory notes can be accessed at: 

https://centralbank.ie/statistics/data-and-analysis

http://www.centralbank.ie/polstats/stats/locational/pages/releases.aspx

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^[1] Domestic market banks are banks that have a significant level of retail business with Irish households and NFCs, and would exclude the more internationally focused banks in the IFSC. A full list of these institutions is available on the Central Bank of Ireland website. Credit Unions are excluded from this set of statistics.

^[2] Profit reported is based on statistical methodology and may differ from profit calculated using accounting methodology.

[2] Domestic market banks are banks that have a significant level of retail business with Irish households and NFCs, and would exclude the more internationally focused banks in the IFSC. A full list of these institutions is available on the Central Bank of Ireland website. Credit Unions are excluded from this set of statistics.

[2] Profit reported is based on statistical methodology and may differ from profit calculated using accounting methodology