In this chapter, statistics on the Financial sector are presented. The statistics were not collected via the structural business surveys mentioned throughout this publication, but were collected and analysed by the CSO Balance of Payments Division who engage directly with the Financial sector and its regulators on the provision of these statistics.
The Financial and Insurances Activities sector, NACE K, has traditionally used different terms to describe variables like production value, gross value added and operating surplus. As part of a broad legislative proposal, agreed EU definitions for the Financial and Insurance sectors are currently being developed and should be in use in the coming years. The objective behind producing these Financial sector statistics is to complete the coverage of the business economy in Ireland and to allow meaningful comparisions with other business sectors such as Industry and Services.
The Financial sector is described by NACE Section K. It includes:
K64 – Financial Service Activities except Insurance and Pension Funding.
K65 – Insurance, Reinsurance and Pension Funding.
K66 – Activities Auxiliary to Financial Services and Insurance Activities.
K64 is dominated by credit institutions which in Ireland are banks and credit unions. However, it also includes activities of holding companies, investment funds and other financial services activities.
K65 includes life insurance companies, non-life insurance companies and reinsurance companies as well as pension funds.
K66 is the most diverse category and includes all financial auxiliaries including brokerage firms, insurance agents and fund management activities.
The business operations data presented for the Financial sector in this report covers banks, life insurance, non-life insurance and reinsurance. The detailed calculations of the main indicators for these enterprises are presented here. The calculations are based on an accounting framework where the income and expenses for the reference year 2014 are analysed in detail. See Tables 8.1 and 8.2.
|Interest payable |
linked to securities
linked to loans and deposits
|Interest receivable |
from loans and deposits
|Profit linked to loans and deposits||Profit linked to securities||Other Income||Value of Production|
|Gross premiums earned||Gross claims incurred|
|Table 8.1 Production account and generation of income for all banks, 2012 - 2014|
|All interest receivable||18,144||13,139||11,053|
|Interest receivable from securities||5,968||4,072||3,316|
|Interest receivable from loans and deposits||12,176||9,067||7,738|
|Other operating income||1,194||1,551||1,674|
|All Interest payable and similar charges||13,014||9,151||6,391|
|Interest payable linked to securities||3,193||2,484||2,053|
|Interest payable linked to loans and deposits||9,820||6,667||4,338|
|Production value1 excluding value adjustments and profits from affiliates||8,381||7,501||8,350|
|Other administrative expenses (other than labour costs)||493||557||633|
|Other operating charges||1,838||1,712||2,157|
|Gross value added at factor cost3||5,566||4,811||5,165|
|Gross operating surplus4||2,828||2,835||2,955|
|Source: CSO/Central Bank survey of credit institutions|
|1 All income less all interest payable and similar charges.|
|2 All interest received less all interest payable and similar charges.|
|3 Production value less commissions payable, other administrative expenses (other than labour costs) and other operating expenses.|
|4 Gross value added less personnel costs.|
|Table 8.2 Production account and generation of income for all insurance companies, 2012 - 2014|
|Gross premiums earned||41,695||44,836||47,078|
|Portfolio investment income||3,899||3,637||3,525|
|Investment income (Technical a/c)||3,395||3,256||3,158|
|Investment income (Non-Technical a/c)||503||381||366|
|Other services produced||1,651||2,114||1,652|
|Fees receivable (commissions etc)||1,046||1,107||1,164|
|Other income - Technical a/c||604||1,007||488|
|Gross claims incurred||37,716||34,826||34,836|
|Gross claims payments||37,644||34,997||35,272|
|Gross change in the provision for outstanding claims||73||-171||-436|
|Capital gains and provisions||2,959||-3,726||-4,000|
|Capital gains/losses realised and unrealised||11,664||8,039||16,008|
|Gross change in life insurance provision||-8,705||-11,765||-20,008|
|Gross value of reinsurance services received||2,304||2,909||3,092|
|Other intermediate consumption||6,798||6,608||6,407|
|Gross value added at factor cost3||3,384||2,516||3,920|
|Gross operating surplus4||2,673||1,797||3,143|
|Source: CSO Balance of Payments surveys of insurance corporations|
|1 Figures for 2012 revised.|
|2 Includes gross premium earned, portfolio investment income, other services produced, capital gains and provisions less gross claims incurred.|
|3 Production value less gross value of reinsurance services received and other intermediate consumption.|
|4 Gross value added at factor cost less personnel costs.|
|Table 8.3 Summary of main indicators for banks and insurance, 2014|
|Gross value added||5,165||3,920||9,085|
|Gross operating surplus||2,955||3,143||6,098|
|Source: CSO/Central Bank survey of credit institutions and CSO Balance of Payments surveys of insurance corporations|
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