The amount of deposits in Latvian banks in the third quarter of this year increased by 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 compiled by the Financial Industry Association.
At the end of the third quarter of 2020, the largest deposits were in 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
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The most significant increase is observed in retail deposits. Over the past year, they have increased by 0.92 billion euros and reach 56% of the total amount of deposits in banks in Latvia.
Compared to the 2nd quarter of 2020, the amount of loans issued by banks increased by 0.11 billion euros in the 3rd quarter. Over the last 12 months, the amount of loans issued to individuals has not changed significantly, while the amount of loans issued to companies is 58% of the total amount of loans.
Photo: Financial Industry Association
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“The increase in deposits in the third quarter is natural given the population’s caution about spending. With the first emergency in March, many postponed long-term purchases, including waiting for a home. However, the third quarter saw a return to optimism although the total amount of loans to individuals has 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 the demand for development finance. “
evaluated Ainars Balcers, co-chairman of the Credit Committee of the Financial Industry Association.
According to him, a positive feature is that the demand for loan deferrals has decreased in the third quarter, and most customers have returned to the previous loan payment schedule.
The unaudited profit of the Latvian 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
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The Financial Industry Association also noted that during this time, banks also actively 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, the capital of banks increased by 3% or 0.10 billion euros.
Photo: Financial Industry Association
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At the end of the third quarter of 2020, the largest bank in Latvia 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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