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 mother banks in Nordic countries enhance risk absorption capacity of the Latvian banking sector Since January 2019 Luminor Bank Latvia continues its operations as a branch of Estonia's Luminor Bank 19 Banks Financial Information Banking Groups' Equity Prices (01.01.2019 = 100, local currency) 150 140 Swedbank SEB Luminor Latvia branch* 130 DNB Nordea 120 Assets (EUR mil)* 7,052 4,041 3,518 110 CAR (%)* 31.1 21.1 100 90 ROE (%)* 9.9 7.1 80 S&P Global long-term rating A+ A+ 70 Moody's long-term rating Aa3 Aa2 Baa2 60 Fitch long-term rating A+ AA- 50 2019 Source: Association of Latvian Commercial Banks - financial reports, 2st quarter 2020 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) STOXX Europe 600 Banks Swedbank 2020 SEB DNB Nordea

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