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Wednesday 13.11.2019 | Name days: Jevgēņija, Jevgēņijs, Eižens

Swedbank Latvia loses 5.8 million lats in 3rd quarter

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Swedbank Latvia losses reached 5.8 million lats in the third quarter 0f 2010, the bank’s press secretary Kristine Jakubovska (Kristīne Jakubovska) informed the agency LETA.

The bank’s losses in the second quarter comprised 10.9 million lats; consequently, the third quarter over the second one, the bank’s losses have dropped by 47%.

Jakubovska indicates better results were facilitated by the economic recovery, slower credit payment delay increase, as well as the decline in non-performing loans.

Overall, in the third quarter the bank operated with 43 million lats profit in the Baltics, which is mainly linked with non-performing loans reduction.

In Latvia, the bank’s profit before provisions has increased by 5% in the third quarter, compared to the second quarter, and during this period it totalled 21.2 million lats.

Furthermore, the clients’ deposit volume increased by 3% during the third quarter, consequently, the bank secured its market share in deposits. The credit portfolio declined by 5%, as the credit obligation reduction tendency continues in the Baltics. Swedbank’s credit and deposit rate balance improves, reaching 21.9%. During the past few months, the customer demand for credits and the issued financing volume has grown in the reporting period – it increased by 35%, compared to the second quarter.

Overall, during nine months, 85 million lats have been issued in new credits in Latvia.

The loan losses in the reporting period account for 27.7 million lats, dropping by 16%, compared with the second quarter. The gross volume of problematic credits in September, 30 was billion lats, compared with 1.035 billion lats in June 30, this year. The decline in the overdue loans in the third quarter is related to the securities write-off and selling to enterprises’ credit portfolio non-performing part. Jakubovska explained the improvement in individuals’ portfolios is expected later, and future changes will be directly linked to the unemployment rate in the country.

Swedbank’s revenues in the third quarter increased by 4% – to 35.1 million lats – mainly due to the net interest income growth and more active everyday service use among the clients. The expenditure remained flat and in the reporting period amounted to 14 million lats.

A turning point is in sight regarding all economy, society and business. People feel more confident about the future and start considering long-term loans, for instance, for house purchase. While investments in new projects are resumed by enterprises, said the Chairman of Swedbank Latvia Board Maris Macinskis (Māris Mančinskis).

To his mind, the growing deposit volume and longer deposit terms clearly signal the changes in the mood, which is significant for the economy, because a sufficient provision level is one of the financial stability foundations for each family, and for the country in general.

As regards the forecasts and the future strategy, the bank representatives indicated Swedbank supports traditional bank model based on qualitative financial consultations and close, long-term relations with clients, providing tools and knowledge in monetary matters.

According to the information provided by Jakubovska, during the reporting period, more than 20 000 new customers joined the bank.

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