Operating results of Latvian banks Summary Q4 2020

The value of assets increased by EUR 1.36 billion in 2020 and reached the largest value since 2018

Total assets of Latvian commercial banks were EUR 24.56 billion as of December 31, 2020. It is the largest value in the last two years period.

The value increased by 3% or EUR 0.65 billion in the 4th quarter 2020, and it increased by 6% or EUR 1.36 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 23% or EUR 7.38 billion since 2015.
Total equity has increased by 10% in 2020

Total equity was EUR 2.93 billion as of December 31, 2020. Total capital increased by 2% or EUR 0.05 billion in the 4th quarter 2020.

Equity value increased by 10% or EUR 0.26 billion in the 12 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 12% or EUR 0.40 billion.

Loan portfolio EUR 12.95 billion

The loan portfolio decreased by 3% or EUR 0.34 billion in the 4th quarter 2020, compared to the 3rd quarter 2020. The portfolio decreased by 4% or EUR 0.52 billion in the last 12 months period.
Main decrease was observed in the segment of the loans to companies. This segment makes 57% of total loan portfolio. Loans to private persons has not changed significantly in the last 12 months period, they are EUR 5.37 billion.
Total loan portfolio was in the range of EUR 13.0-14.0 billion in the last two years period.

Largest deposit volume since the end of 2017

Total deposits of the Latvian banking sector were EUR 18.66 billion as of December 31, 2020. The portfolio increased by 5% or EUR 0.92 billion in the 4th quarter 2020 and reached the largest volume since the end of 2017.
Deposits increased by 8% or EUR 1.45 billion in the last 12 months period.
The largest increase was observed in deposits of corporate customers; they increased by 14% or EUR 0.98 billion in the last 12 months period. They make 42% of total deposits portfolio.
Short-term deposits make 85% from total deposit volume, remaining 15% are long-term deposits.

Not-audited net profit of Latvian banking sector in 12 months 2020 reached EUR 146 million

Total profit of banks in Latvia in 12 months 2020 increased by 22% or EUR 27 million compared to the results of 12 months 2019.

TOP 5 most profitable Finance Latvia Association member banks in 12 months 2020:
1. Swedbank – EUR 75.3 million;
2. SEB banka – EUR 35.8 million;
3. BlueOrange Bank – EUR 4.9 million;
4. LPB Bank – EUR 3.6 million;
5. Rigensis Bank – EUR 2.7 million.

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

4nd quarter 2020

Bank results, 4nd quarter 2020

Financial ratios, 4nd quarter 2020

General data 4nd quarter 2020

Payment cards statistics, 4nd quarter 2020

Detailed results of Latvian commercial banks, 4nd 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