Latvia Stability Programme Report

PARENT BANKS ARE FINANCIALLY SOUND AND PROFITABLE The parent institutions of Latvia's banks have high credit ratings, high profits and are well- capitalized • • Key Highlights Financial performance and capitalization level of the parent banks is strong Nordic banking groups' profitability is higher than the EU average • • The ability and proven willingness to support subsidiaries in Baltics by the largest parent banks from Nordic countries enhance risk absorption capacity of the Latvian banking sector In October 2021, the ownership of the subsidiary banks in Estonia, Latvia and Lithuania was placed in the holding company Swedbank Baltics AS which is wholly owned by Swedbank AB Banks Financial Information Banking Groups' Equity Prices (01.01.2020 = 100, local currency) Swedbank Luminor Latvia branch* SEB 180 DNB Nordea 170 160 Assets (EUR mil)* 7,553 4,536 3,776 150 CAR (%) * 33.1 22.4 140 130 ROE (%), 7.6 16.7 120 annualized* 110 S&P Global long- www A+ A+ * 100 term rating 90 Moody's long-term 80 Aa3 Aa3 Baa1 rating 70 Fitch long-term 60 AA- AA- * rating 50 2020 2021 2022 Source: Finance Latvia Association - data, 4th quarter 2021 STOXX Europe 600 Banks Swedbank SEB DNB Nordea Banks' investor relations (ratings at group level) In January 2019 Luminor Bank Latvia became a branch of Estonian Luminor Bank. Bank ratings (at Group level) 19

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