Operating results of Latvian banks
Summary Q3 2020

Assets reached the largest value since 2018

Total assets of Latvian commercial banks were EUR 23.91 billion as of September 30, 2020. It is the largest value in the last two years period.

The value increased by 3% or EUR 0.59 billion in the 3^rd quarter 2020, and it increased by 4% or EUR 0.95 billion in the last 12 months period.

The value of total assets was EUR 31.94 billion at the end of 2015, it had negative trend since 2016. Main reasons for assets’ decrease were the change of strategy for some of the universal banks, change of business models for specialized financial service providers, optimization of capital expenses, as well as the license withdrawal of ABLV Bank. The value has decreased by 25% or EUR 8.03 billion since 2015.

 

Total equity has increased

Total equity was EUR 2.88 billion as of September 30, 2020. Total capital increased by 3% or EUR 0.10 billion in the 3^rd quarter 2020.

Equity value increased by 8% or EUR 0.21 billion in the 9 months period of 2020.

The largest capital value was reached in 2015, it was EUR 3.33 billion. Since then total capital has decreased by 13% or EUR 0.45 billion.

 

Loan portfolio 13.29 billion EUR

The loan portfolio increased by 1% or EUR 0.11 billion in the 3^rd quarter 2020, compared to the 2^nd quarter 2020. However, the portfolio decreased by 4% or EUR 0.63 billion in the last 12 months period. 

Main decrease was observed in the segment of the loans to companies. This segment makes 58% of total loan portfolio. Loans to private persons has not changed significantly in the last 12 months period, they are EUR 5.36 billion.

Total loan portfolio is in the range of EUR 13.0-14.0 billion in the last two years period.

 

Largest deposit volume in the last two years

Total deposits of the Latvian banking sector were EUR 17.74 billion as of September 30, 2020. The portfolio increased by 2% or EUR 0.37 billion in the 3^rd quarter 2020 and reached the largest volume in the last two years period.

Deposits increased by 7% or EUR 1.19 billion in the last 12 months period. 

Deposits of private persons continue to increase; they increased by 10% or EUR 0.92 billion in the last 12 months period. They make 56% of total deposits portfolio.

Short-term deposits make 84% from total deposit volume, remaining 16% are long-term deposits. 

Not-audited net profit of Latvian banking sector in 9 months 2020 reached EUR 107 million

Total profit of banks in Latvia in 9 months 2020 decreased by 46% or EUR 91 million compared to the results of 9 months 2019. 

TOP 5 most profitable Finance Latvia Association member banks in 9 months 2020:
1. Swedbank – EUR 59.9 million;

2. SEB banka – EUR 28.3 million;

3. Rigensis Bank – EUR 6.4 million;

4. LPB Bank – EUR 4.7 million;

5. BlueOrange Bank – EUR 3.0 million.

Data source of banking industry: the Bank of Latvia, monthly reports of monetary financial institutions in Latvia.

3nd quarter 2020

Bank results, 3nd quarter 2020

Financial ratios, 3nd quarter 2020

Payment cards statistics, 3nd quarter 2020

Detailed results of Latvian commercial banks, 3nd quarter 2020

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Payment cards 

Results of previous periods

2019

31.12.2019.

30.09.2019.

30.06.2019

31.03.2019

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Pension funds