Bank profits down 63% in first half of 2020

Total profit of banks in Latvia in the first half 2020 decreased by 63% or EUR 80 million compared to the results of the 1st half 2019, according to data by Finance Latvia Association , as published September 4.

  According to industry data,   TOP 5 most profitable Finance Latvia Association member banks in first six months of 2020 were Swedbank, SEB banka, Rigensis Bank, LPB Bank, and Signet Bank.

Total assets of Latvian commercial banks were EUR 23.31 billion as of June 30, 2020. It is the largest value in the last two years. The value increased by 6% or EUR 1.35 billion in the second quarter 2020, and by 3% or EUR 680 million in the last 12 months.

Total equity was EUR 2.78 billion as of June 30, 2020. Total capital increased by 1% or EUR 30 million in the 2nd quarter 2020. Equity value has not changed significantly in the last two years period, it is around EUR 2.70-2.80 billion. The largest capital value was reached in 2015, at EUR 3.33 billion. Since then total capital has decreased by 16% or EUR 550 million.

The loan portfolio has not changed in the 2nd quarter 2020, compared to the 1st quarter 2020. However, the portfolio decreased by 5% or EUR 0.67 billion in the last 12 months period. Total loan portfolio is in the range of EUR 13.0-14.0 billion in the last two years 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 last 12 months period, they are EUR 5.35 billion.

Data is based on banking industry sources: the Bank of Latvia, monthly reports of monetary financial institutions in Latvia.

LSM.LV

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