Portrait of an Ascending Sovereign Credit
Parent Banks are financially sound and profitable
The parent institutions 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 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 in 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 (01.01.2019 = 100, local
currency)
180
170
Swedbank
SEB
Luminor Latvia branch*
160
DNB
Nordea
150
140
Assets (EUR mil)*
8,305
4,317
3,606
130
CAR (%)*
33.5
22.8
120
110
ROE (%), annualized*
8.3
20.3
100
S&P Global long-term rating
A+
A+
90
80
Moody's long-term rating
Aa3
Aa2
Baa1
70
60
Fitch long-term rating
A+
AA-
50
2019
2020
2021
Source: Finance Latvia Association data, 2nd quarter 2021
Banks' investor relations (ratings at group level)
STOXX Europe 600 Banks
Swedbank
SEB
DNB
Nordea
In January 2019 Luminor Bank Latvia became a branch of Estonian Luminor Bank. Bank ratings (at
Group level)
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