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Friday 28.10.2016 | Name days: Ninona, Ņina, Antoņina, Oksana

SEB Bank determines which depositors’ savings grow the fastest

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUBecause of the improvement of the overall situation on the labour market and growth of average wages, the financial state of residents has improved in all three Baltic States. Asset value has grown more than commitments.

According to results of surveys carried out in all three Baltic States, savings of depositors in Latvia and Lithuania who already had certain amounts of money on their accounts have grown the fastest: a minimum of EUR 1,600 in Lithuania and EUR 1,700 in Latvia. Such are the results of the latest Baltic Household Outlook by SEB Bank.

Compared with Q2 of 2014, the volume of residents’ savings has grown the fastest in Lithuania – 16%. In Latvia, growth was 9% and in Estonia – 8%.

«The situation on the labour market improved and average wages increased in Q2 2015. Income and consumption dynamics allow us to conclude that residents actively divert their income toward savings. And although income in Lithuania have increased more slowly than in other Baltic States, rapid rise of savings can be explained with euro adoption – some residents who had previously kept their money at home have decided to add them to their bank accounts to avoid currency exchange,» – says SEB Bank expert on family finances Julita Varanauskiene.

Calculations of SEB Bank experts show that savings have increased the most for Latvian and Lithuanian residents who already had savings on their accounts. At the same time, savings of residents in Estonia seem to grow evenly regardless of previously accumulated savings.

The volume of savings accumulated on bank accounts in Lithuania has grown 15% since June 2014. The general volume of savings has not changed by a lot since the adoption of euro, but there is an interesting trend – small deposits are becoming fewer and smaller while big deposits have grown 2-4%.

The same tendency is also noted in Latvia. Prior to the adoption of euro, the majority of residents added their cash savings to their bank accounts. As a result of this, the general size of deposits across the country has grown by one-fifth. After the euro transition period, the size of deposits in SEB Bank increased by a bit more than one-tenth. The volume of large deposits had rapidly increased during this period (from EUR 1,700 and onward).

In Estonia, the transition period did not affect the volume of non-cash savings at all. The volume of residents’ deposits has grown by about 6% over the course of June 2014 – June 2015. Similar growth rates are noted among all deposit groups regardless of their size. One exception is the group of deposits under EUR 109 – growth rates there are slower.


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