Banks in Latvia report 3.9% reduction of credit portfolio in 2020 – Baltic News

The credit portfolio of Latvian banking sector had declined 3.9% or EUR 523.785 million in 2020 and was EUR 12.948 billion, according to data compiled by the Finance Latvia Association. The credit portfolio of banks that are members of the association has declined 1% or EUR 123.218 million, composing EUR 12.212 billion.

Swedbank was the bank that issued the most loans last year – worth EUR 3.531 billion, which is about EUR 1.47 million less when compared to the end of 2019.

In 2020 SEB Bank’s credit portfolio increased 1.2% or EUR 37.206 million, reaching a total of EUR 3.08 billion. The credit portfolio of Luminor Bank branch in Latvia dropped 4.8% or EUR 143.522 million and was EUR 2.817 billion last year.

The volume of their respective credit portfolio for the aforementioned SEB Bank and BlueOrange Bank had increased 20% last year. That of Rigensis Bank had increased by 59.6%, Signet Bank – by 27.3%, Regional Investment Bank – by 10.9%, LPB Bank – by 0.3%, and Expobank – 2.1 times.

The volume of their respective credit portfolio had decreased for Swedbank and Luminor Bank in Latvia, as well as Citadele Bank – by 4.1%, OP Corporate Bank branch in Latvia – by 12.4%, Industra Bank – by 19.5%, PrivatBank – by 17.1% and Baltic International Bank – by 0.7%.

The association’s data also shows that banks had issued loans worth EUR 7.38 billion to different companies at the end of 2020.

The majority of this amount was issued by SEB Bank – EUR 1.949 billion, followed by Swedbank – EUR 1.588 billion, and Luminor Bank branch in Latvia – EUR 1.325 billion.

Loans worth EUR 5.372 billion were issued by Latvian banks to private persons: EUR 1.873 billion by Swedbank, EUR 1.485 billion by Luminor Bank in Latvia, and EUR 1.039 billion by SEB Bank.

The association does not included data on Rietumu Bank and BigBank in Latvia, which are not members of the association.