"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.