Operating results of Latvian banks
Summary Q2 2020

The value of assets increased

Total assets of Latvian commercial banks were EUR 23.31 billion as of June 30, 2020. It is the largest value in the last two years period.

The value increased by 6% or EUR 1.35 billion in the 2nd quarter 2020, and it increased by 3% or EUR 0.68 billion in the last 12 months period.

The value of total assets was EUR 31.9 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.

Total equity has stabilized

Total equity was EUR 2.78 billion as of June 30, 2020. Total capital increased by 1% or EUR 0.03 billion in the 2nd quarter 2020.

Equity value has not changed significantly in the last two years period, it is around EUR 2.70-2.80 billion.

The largest capital value was reached in 2015, it was EUR 3.33 billion. Since then total capital has decreased by 16% or EUR 0.55 billion.

Loan portfolio 13.18 billion EUR

The loan portfolio has not changed in the 2nd quarter 2020, compared to the 1st quarter 2020. However, the portfolio decreased by 5% or EUR 0.67 billion in the last 12 months period.

Total loan portfolio is in the range of EUR 13.0-14.0 billion in the last two years 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 5.35 billion.

Largest deposit volume in the last two years

Total deposits of the Latvian banking sector were EUR 17.37 billion as of June 30, 2020. The portfolio increased by 1% or EUR 0.20 billion in the 2nd quarter 2020 and reached the largest volume in the last two years period.

Deposits increased by 5% or EUR 0.76 billion in the last 12 months period.

Deposits of private persons continue to increase; they increased by 9% or EUR 0.79 billion in the last 12 months period. They make 56% of total deposits portfolio.

Short-term deposits make 83% from total deposit volume, remaining 17% are long-term deposits.

Not-audited net profit of Latvian banking sector in 6 months 2020 reached EUR 47 million

Total profit of banks in Latvia in the 1st half 2020 decreased by 63% or EUR 80 million compared to the results of the 1st half 2019.

TOP 5 most profitable Finance Latvia Association member banks in 6 months 2020:

1. Swedbank – EUR 44.3 million;
2. SEB banka – EUR 13.6 million;
3. Rigensis Bank – EUR 3.8 million;
4. LPB Bank – EUR 2.5 million;
5. Signet Bank – EUR 0.9 million.

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

2nd quarter 2020

Bank results, 2nd quarter 2020

Financial ratios, 2nd quarter 2020

General data 2nd quarter 2020

Payment cards statistics, 2nd quarter 2020

Detailed results of Latvian commercial banks, 2nd quarter 2020

1st quarter 2020

Bank results, 1st quarter 2020

Financial ratios, 1st quarter 2020

Payment cards statistics, 1st quarter 2020

Detailed results of Latvian commercial banks, 1st 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