Operating results of Latvian banks Summary Q1 2020

The value of assets decreased

Total assets of Latvian commercial banks were EUR 21.96 billion as of March 31, 2020. The value decreased by 5% or EUR 1.24 billion in the 1st quarter 2020. It was influenced by the banking license withdrawal of AS PNB Bank.

The value of assets decreased by 4% or EUR 0.91 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 increased

Total equity was EUR 2.75 billion as of March 31, 2020. Total capital increased by 3% or EUR 0.08 billion in the 1st quarter 2020,

The value decreased by 2% or EUR 0.05 billion in the last 12 months period.

The largest capital value was reached in 2015, it was EUR 3.33 billion. Since then total capital has decreased by 17% or EUR 0.58 billion.

Loan portfolio 13.17 billion EUR

The value decreased by 2% or EUR 0.30 billion in the 1st quarter 2020. And it decreased by 4% or EUR 0.58 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 1st quarter of 2020, they are EUR 5.35 billion.

Deposit volume stabilized

Total deposits of the Latvian banking sector were EUR 17.17 billion as of March 31, 2020.

The portfolio has decreased by 0.2% or EUR 0.04 billion in the 1st quarter 2020, but the value increased by 3% or EUR 0.49 billion in the last 12 months period. Deposits of private persons continue to increase; they increased by 2% or EUR 0.19 billion since the beginning of 2020. They make 56% of total deposits portfolio.
Short-term deposits make 80% from total deposit volume, remaining 20% are long-term deposits.

Not-audited net profit of Latvian banking sector in 3 months 2020 reached EUR 25 million

Total profit of banks in Latvia in the 1st quarter 2020 decreased by 63% or EUR 43 million compared to the results of 3 months 2019.

TOP 5 most profitable Finance Latvia Association member banks in 3 months 2020:

1. Swedbank – EUR 26.1 million;
2. SEB banka – EUR 7.1 million;
3. Rigensis Bank – EUR 2.0 million;
4. LPB Bank – EUR 1.7 million;
5. Signet Bank – EUR 0.6 million.

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

 

Payment cards 

Results of previous periods

2019

31.12.2019.

30.09.2019.

30.06.2019

31.03.2019

Pension funds