Swedbank Latvia posts €52m profit in first half of 2017

Swedbank Latvia earned €52m in the first half of 2017, similar to the bank's earnings in the same period last year.

"Positive economic tendencies affect credit growth and growth in household and small business demand can be particularly stressed as concerns the last quarter," said Swedbank Latvia head Reinis Rubenis in a July 19 release.

"This year 2,150 companies have accelerated their operations and 2,100 families have bought a home with Swedbank funding," he said.

The bank said that within the past year they have increased lending by 1%. Deposits have also increased 1%.

In H1 2017, the bank cut its provisions for bad loans by €2.7m (the figure was €1.7m in the first half of 2016). Meanwhile net interest income rose 1% as lending grew.

Income from commissions grew by 3% as clients used regular services more actively. While total expenditure rose by 3% as regulation-related costs increased.

(On this note, several Latvian banks, including Swedbank, have been hard-hit by the finance regulator, the Financial and Capital Market Commission, which has been doling out fines for non-compliance with anti-money laundering regulations. Swedbank was fined €1.36m last November.)

In the first half of 2016, Swedbank Latvia generated €52 million in profit, which was 9% less than in the same period in 2015.

Swedbank is the largest financial institution in Latvia. 

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