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Amount of deposits in commercial banks in Latvia – the highest in the last two years / Article /


The amount of deposits in banks in Latvia in the 3rd quarter of this year increased 2% quarter-on-quarter and reached 17.74 billion euros – this is the highest value in the last two years. During the year, the amount of deposits attracted by commercial banks increased by 7% or 1.19 billion euros, according to information collected by the Financial Industry Association.

At the end of the third quarter of 2020, the largest deposits were at Swedbank (5.49 billion euros), Citadele (3.3 billion euros), SEB banka (3.2 billion euros), Luminor Bank branch In Latvia (2.7 billion euros) and BlueOrange Bank (0.55 billion euros) ).

Photo: Financial Industry Association

The most significant increase is in retail deposits. Over the past year, they have increased 0.92 billion euros and reached 56% of total deposits in banks in Latvia.

Compared to the 2nd quarter of 2020, the amount of loans issued by banks increased 0.11 billion euros in the 3rd quarter. Over the past 12 months, the amount of loans given to individuals has not changed significantly, while the amount of loans given to companies is 58% of total loans.

Photo: Financial Industry Association

“The increase in deposits in the third quarter is natural given the spending alert of the population. With the first crisis in March, many long-term purchases were delayed, including staying home. However, the third quarter returned to optimism although total loans to individuals have not changed significantly during this year, compared to the corresponding period last year.

At the same time, there is still caution and concern among companies about the impact of the crisis on the economy, which has led to a slight decline in demand for development finance. “

evaluation of Ainars Balcers, co-chair of the Financial Industry Association Credit Committee.

According to him, a positive feature is that demand for loan deferrals has decreased in the third quarter, and most customers have returned to the previous loan payment schedule.

The untapped profit of Latvia’s banking sector in the first nine months of this year was 107 million euros, which is 46% or 91 million euros less than in the corresponding period a year ago.

Photo: Financial Industry Association

The Financial Industry Association also noted that during this time, banks have also continued to expand the range of digital services, reducing the need to physically visit bank branches during a pandemic.

At the end of the third quarter of this year, the total capital of the banking sector reached 2.88 billion euros, which has increased by 8% or 0.21 billion euros in the last nine months. During the 3rd quarter of 2020, banks’ capital increased by 3% or 0.10 billion euros.

Photo: Financial Industry Association

At the end of the third quarter of 2020, the largest Latvian bank in terms of assets was Swedbank, followed by Citadele, SEB banka, the Latvian branch of Luminor Bank and BlueOrange Bank, according to the Financial Industry Association.

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