Latvia's Economic and Financial Outlook
Parent Banks are Financially Sound and Profitable
The parents of Latvia's banks have high credit ratings, good profits and are well-capitalized
Key Highlights
Financial performance and capitalization level of the parent banks are
strong
• Nordic banking groups' profitability is higher than the average in Europe
.
Banks continue to invest in IT related projects to increase their
operational efficiency and lower administrative expenses
• Since January 2, 2019 Luminor Bank Latvia was branch of Estonian
registred Luminor Bank. Luminor completes its banks' cross-border
merger.
.
Recent money laundering allegations put shares of Nordic banks under
pressure, though the impact on financing costs is very limited.
Deposits (EUR bn)
Banks Financial Information
Swedbank
SEB
DNB
Luminor Latvia branch*
Nordea
Assets (EUR mil)*
5,694
3,948
4,368
CAR (%)*
28.5
17.6
ROE (%)*
14.4
13.8
S&P Global long term rating
AA-
A+
Moody's long term rating
Aa2
Aa2
Fitch long term rating
AA-
AA-
Source: Association of Latvian Commercial Banks - financial reports, 1st quarter 2019 | *January 2019 Luminor Bank Latvia was branch
of Estonian Luminor Bank.
Banking Groups' Equity Prices (01.01.2018 = 100, local currency)
12.4
9.2
8.1
8.1
12.2
5.9
120
110
13.0
100
90
90
3.6
80
2015 2016 2017 Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May
2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2019 2019 2019 2019 2019
Source: Bank of Latvia
19
--Domestic
--Foreign
70
10
60
60
2018
2019
STOXX Europe 600 Banks
Swedbank
SEB
DNB
-NordeaView entire presentation