Q2 2019: Summary of Operating Results of the Member Banks of the Finance Latvia Association
Total loan portfolio has grown
Total loan portfolio was 13.8 billion EUR as of June 30, 2019. The value increased by EUR 0.3 billion or +2% in the first 6 months of 2019. The loan portfolio has been growing for three quarters now. The increase is observed in both private and corporate segments.
Capital at EUR 2.8 billion
Total capital decreased by EUR -0.1 billion or -3% in the first 6 months of 2019. It decreased by EUR -0.3 billion or -10% over 12 months. The decrease in total capital was mainly affected by the license withdrawal of ABLV Bank AS and optimization of capital expenses.
Value of total assets stabilized in the first 6 months of 2019
Total assets of the banking sector were 22.6 billion as of June 30, 2019. Thus, the value of assets stabilized in the first 6 months of 2019, and the decrease was only 1% compared to the end of 2018.
It should be noted that the value of banks’ gross assets has been gradually decreasing since 2016. Main reasons for total assets’ decrease are the change of banks’ operational strategy and business models, optimization of capital expenses as well as the license withdrawal of ABLV Bank.
Deposits of private persons have increased
An increase has been observed in the deposits portfolio of private persons. Deposits of private persons make up 54% of the total deposits portfolio.
Total deposits in banks were EUR 16.6 billion as of June 30, 2019. The portfolio stabilized in the second quarter 2019. There was an increase in the deposits portfolio of private persons.
Unaudited profit of banks for the first 6 months of 2019 is EUR 127 million
TOP 5 most profitable Finance Latvia Association member banks in the first 6 months of 2019:
- Swedbank: EUR 60.1 million;
- SEB banka: EUR 24.0 million;
- Citadele banka: EUR 12.5 million;
- Luminor Bank Latvian branch: EUR 6.0 million;
- BlueOrange Bank: EUR 4.3 million.
Total profit of banks in the first 6 months of 2019 was by EUR 6 million or 5% smaller compared to the results of the first 6 months of 2018.