Results for securities broking enterprises showed a decline from NOK 771 million in 1997 to NOK 229 million in 1998. This was followed by an increase to NOK 654 million in 1999. Per company this amounted to an annual profit of NOK 18 million in 1997, NOK 4 million in 1998 and NOK 8 million in 1999. Profits of securities broking enterprises are affected by the ups and downs of the securities markets, and securities firms chief revenues come from arranging the purchase and sale of financial instruments. Brokering revenues have declined every year from 1997, and in 1999 equity issue and consultancy services were the major sources of revenue for these firms.
Increased competition is one of the reasons that brokering revenues have declined somewhat.
This decline may also be due to the fact that more people use the Internet when trading in securities markets. Salaries are the largest cost factor for these companies, but despite the increase in the number of companies from 42 to 78, salary costs have risen slightly from 1997 to 1999. On the balance sheets the value of short-term securities has remained rather constant during the period, although in 1999 the composition has changed in favour of a heavier weighting in shares at the expense of other securities such as commercial paper and bonds. Total holdings of shares and primary capital certificates have nearly doubled in 1999 compared with the two previous years. Some of this increase is due to the new Accounting Act, in effect from 1999, according to which market-based current assets are to appear on balance sheets at market value.