The profit of Latvian cooperative credit unions last year was 233.6 thousand. 13.1% less than in 2020, according to the Financial and Capital Market Commission (FKTK) data.
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“Last year’s profit was lower because the decline in cooperative credit unions’ interest and commission income and the increase in net expense on savings caused by the Covid-19 pandemic and the associated economic downturn were not offset by savings on various expense items,” said the FCMC.
In 2021, the income of cooperative credit unions totaled 2.025 million euros, which is 13.6% less than in 2020, including interest income decreased by 10.8% and amounted to 1.568 million euros or 77.4% of total income.
At the same time, the expenses of cooperative credit unions in 2021 amounted to 1.794 million euros, which is 13.5% less than in 2020, including administrative expenses decreased by 3.1% and amounted to 916,000 euros or 51.1% of all cooperative credit unions. public expenditure.
At the end of 2021, the assets of Latvian cooperative credit unions amounted to 31.212 million euros, which is 0.3% or 83.7 thousand euros. less than at the end of 2020, when the assets of cooperative credit unions amounted to 31.296 million euros.
At the end of last year, Latvian cooperative credit unions had attracted 21.928 million euros in deposits, which is 1% or 227,600 euros less than at the end of 2020.
At the end of last year, cooperative credit unions had issued 23.796 million euros in loans, which is 1.7% or 412,400 euros less than at the end of 2020.
“Uncertainty about economic development prospects and the resulting prudent effect of borrowers persisted throughout 2021 – both loans for house purchase and consumer loans decreased. Their share in the total loan portfolio of cooperative credit unions was 52% and 37%, respectively,” notes the FCMC.
At the end of last year, 78.6% (end of 2020 – 78.2%) of the loan portfolio of credit unions were assessed as standard, 4% (5%) – as supervised, while in total 17.5% (16.8%) as substandard, doubtful and lost.
“The share of non-performing loans increased to 17.5% during the year, the share of restructured loans to 1.3%, therefore a deterioration in the quality of the loan portfolio of cooperative credit unions in the future cannot be ruled out. as sufficient, “says the FCMC.
At the end of last year, the special provisions of cooperative credit unions for claims against non-banks amounted to 7.3%, while at the end of 2020 this indicator was 7.2%.
In Latvia, in the second half of 2021, a license was issued to one new cooperative credit union, while the licenses of two cooperative credit unions were revoked. At the end of December, there were 33 cooperative credit unions with high market concentration operating in Latvia – the assets of the five largest cooperative credit unions accounted for 88% of total assets.
In 2020, cooperative credit unions operated with a profit of 268.9 thousand. in euros.
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