Published: 22 April 2021

Investment service companies’ commission income and operating profit continued to grow in the last quarter of 2020

The net operating profit of investment service companies was EUR 68 million in the fourth quarter of 2020. EUR 22 million more operating profit was accumulated than in the corresponding quarter of the previous year. Commission income increased by EUR 10 million to EUR 141 million. These data derive from Statistics Finland’s statistics on investment service companies.

Investment service companies’ operating profit by quarter in 2014 to 2020, EUR million

Investment service companies’ operating profit by quarter in 2014 to 2020, EUR million

Investment service companies offer their customers services related to investment services such as investment advisory services, asset management, and reception, intermediation and implementation of trading assignments in monetary instruments. Commission income and expenses are the main items related to investment service companies’ income and expenses in the profit and loss account. In addition to commission income and expenses, operating profit is considerably affected by administrative expenses. In some cases, other items, such as profit or loss from non-current assets classified as held for sale, can have a major impact on profit for the financial period.

Commission income and expenses

Commission income totalled EUR 141 million in the last quarter of 2020. Compared with the corresponding quarter of the previous year, the increase was 7.7 per cent, or around EUR 10 million. Commission expenses, in turn, amounted to EUR 37 million, which is EUR four million more than in the corresponding quarter in the year before.

In 2020, investment service companies’ total commission income amounted to EUR 458 million. Commission income increased by 12.1 per cent, or around EUR 49 million, from the previous year. Over the year, investment service companies paid EUR 29 million more in commission expenses than in the previous year, EUR 129 million in total.

Administrative expenses

In the last quarter of 2020, investment service companies had a total of EUR 42 million in administrative expenses, which was around EUR 10 million lower than in the corresponding quarter of the previous year. Personnel expenses amounted to EUR 22 million, or 53 per cent of administrative expenses. Personnel expenses were around EUR seven million less than in the previous year.

Total administrative expenses for the whole of 2020 fell by around EUR 11 million to EUR 174 million. Of administrative expenses, personnel expenses were around EUR nine million lower than in the year before.

Balance sheets

At the end of 2020, the aggregate value of the balance sheets was EUR 420 million. From the end of the previous year, the increase was 3.8 per cent, or around EUR 15 million. The share of own equity of the balance sheet total rose, in turn, by around 1.1 per cent to 68.8 per cent.

At the end of the last quarter of 2020, there were 48 investment service companies operating in Finland, of which 36 generated a positive operating result.


Source: Investment firms, Statistics Finland

Inquiries: Jukka-Pekka Pyylampi 029 551 3002, Heidi Lauttamäki 029 551 3029

Head of Department in charge: Katri Kaaja

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Tables

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Updated 22.04.2021

Referencing instructions:

Official Statistics of Finland (OSF): Investment service companies [e-publication].
ISSN=2342-5202. 4th quarter 2020. Helsinki: Statistics Finland [referred: 20.6.2021].
Access method: http://www.stat.fi/til/spy/2020/04/spy_2020_04_2021-04-22_tie_001_en.html