Household deposits go up in Latvian banks in June 2013
According to statistical data regarding the bank performance in June 2013 compiled by FCMC, the amount of deposits held by resident households and financial institutions went up in June 2013 (by 36 million lats and 24 million lats, respectively). However, overall the bank deposit stock changed insignificantly, i.e. shrank by 0.1% or 7 million lats, where resident deposit stock diminished by 0.2%, or 10.3 million lats, because of a decrease in governmental deposits and deposits of non-financial companies, while the amount of non-resident deposit stock grew by 0.05%, or 3.4 million lats.
The banking sector liquidity and capitalization level were still high. At the end of June, the liquidity ratio of banking sector was 64.9% (compared to 61.4% at the end of May) , whereas the capital adequacy ratio was 18.6% , but the tier 1 capital ratio – 16.7% (compared to 18.3% and 16.6%, respectively, at the end of May).
In the first half of 2013 the total banking sector’s profit amounted to 77.7 million lats, i.e. by 1% less than over the respective period in 2012 (i.e. 78.5 million lats). By the end of June, 15 Latvian banks and five foreign bank branches were profitable (their market share was 94.9% of total banking sector assets).
Total loan portfolio of the banking sector decreased by 2.1% in June, or 239.8 million lats in comparison with the previous period, where resident loan balance fell by 1.8% (where households – by 0.8%, but corporate customers – by 2.8%), while non-resident loan balance over the month shrank by 3.9%.
New loans in the amount of 171.3 million lats were granted in the banking sector in June where 55.8 million lats – to the Latvian non-financial companies, 31.4 million lats – to the Latvian financial institutions, 18.3 million lats – to resident households, 65.6 million lats – to non-residents.
The amount of loans with more than 90 days overdue payments continued shrinking and their share in the total loan portfolio at the end of June was 10.4% (resident household loan portfolio – 14.5%, but resident corporate customer loan portfolio – 8.5%). In June, upon an increase in the loans up to 30 days past due, the total share of overdue loans also climbed up and at the end of June reached 18.2% (compared to 17.5% at the end of May).
Summary of balance sheet statements of Latvian banks broken down by months is available on the Financial and Capital Market Commission’s website at www.fktk.lv/en; Statistics/Credit Institutions/Monthly Reports/.
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