Bank sector profits up 22% last year in Latvia

The Latvian banking sector generated a profit of over €146 million in 2020, up 22.4% on 2019, according to Finance Latvia Association's information March 5.

Five banks worked with losses last year and seven with profits, including the largest Swedbank and SEB Bank, as well as BlueOrange Bank, LPB Bank and Rigensis Bank. Data are not available for the branch of Luminor Bank in Latvia.

Deposits in Latvian banks increased by 5% or €0.92 billion in Q4 this year and reached €18.66 billion, the largest amount of deposits since 2017, according to Finance Latvia Association. Over the past 12 months, deposits have increased by 8%, or €1.45 billion.

The largest deposits at the end of Q4 2020 were at Swedbank (€5.85 billion), SEB Bank (€3.51 billion), Citadele (€3.45 billion), the Latvian branch of Luminor Bank (€2.89 billion) and BlueOrange Bank (€0.54 billion).

The most significant increase was observed in corporate deposits. Over the past year, they have increased by €0.98 billion and reach 42% of total deposits at banks in Latvia.

The total capital of the banking sector amounted to EUR 2.93 billion at the end of Q4, which has increased by 10% or EUR 0.26 billion over the last 12 months. During Q4 2020, bank capital increased by 2% or €0.05 billion.

The association's data also show that loans issued by the banking sector amounted to €12.95 billion last year. In Q4 2020, the credit portfolio fell by 3% or €0.34 billion. Over the past 12 months, the credit portfolio fell 4%, or €0.52 billion.

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