Investor Presentaiton
BANKING SECTOR PROFITABILITY IS STURDY AND STAYS ABOVE EU AVERAGE
Profitability is set to improve further in 2023 due to rising net interest income
3.0%
2.5%
2.0%
1.5%
Return on Assets
Latvia
2.56%
25%
20%
15%
10%
Return on Equity
1.0%
5%
0.5%
EU/EEA
0%
0.0%
2019
2020
2021
2022
2023
Q2*
2019
2020
2021
2022
75%
70%
65%
60%
55%
50%
45%
40%
35%
30%
2019
Cost-to-income ratio
90%
85%
EU/EEA
80%
75%
70%
65%
60%
55%
Latvia
39.1%
50%
2019
EU/EEA
Net interest income to total net operating income
2020
2021
2022
2023
Q2*
2020
Data on European Union (EU)/European Economic Area (EEA) are European Banking Authority (EBA) sample of largest institutions. For Latvia - FINREP data on all institutions are used
* Displayed most recent EBA average available is on 2023 Q1.
29 Source: Latvijas Banka, European Banking Authority(EBA) Risk Dashboard and Latvijas Banka calculations
2023
Q2*
Latvia
23.2%
Latvia
78.38%
EU/EEA
2021
2022
2023
Q2*View entire presentation