On the performance of Latvian banks in February 2009
The Financial and Capital Market Commission (FCMC) has aggregated operative data on the performance of the Latvian banking sector in February 2009.
In February, the average liquidity ratio of the Latvian banking sector slightly grew and at the end of reporting month was 51.2% (compared to 49.9% on 31.01.2009), and the average capital adequacy ratio was sufficient, 12.3% (EU regulatory minimum – 8%).
The amount of resident deposits with Latvia’s banks in February increased by 1.8%, or 107 million lats, while non-resident deposits showed insignificant changes in the amount of 15 million lats (-0.2%). Total banking assets shrank by 0.9%, or 217 million lats.
Though the total loan portfolio of banking sector diminished by 0.3%, or 42 million lats, deposit stock of several banks increased in the reporting month. The private person loan balance shrank most of all; moreover, it had occurred in all Latvia’s banks.
The bank provisioning for loan impairment in February climbed up by 10.5%, or 42 million lats, at the end of month totalling 2.7% of loan portfolio, or 445 million lats, which was by 0.3 percentage points up from the end of January (2.4%). However, provisioning for loan impairment was not as rapid as at the end of last year, when their share in loan portfolio in December had grown by 0.9 percentage points over a month.
All in all, the banking sector ended February with 7.7 million lats in losses mainly due to the provisioning for loan impairment. Meanwhile, 15 Latvian banks and one foreign bank branch operated with profits earning the total of 15.3 million lats.
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