The banking sector of Latvia recorded a profit of €329.262 million in the first half of the current year, which is 27% less than for the same period in 2024, according to data released by the Bank of Latvia.
The interest income of banks for the first nine months of 2025 amounted to €964.017 million, which is 17.3% less than for the first nine months of 2024, while interest expenses decreased by 20% to €255.631 million.
At the same time, the cash income from bank fees for the first nine months of the current year amounted to €273.525 million, which is 5.7% more than for the first nine months of 2024, while cash expenses on bank fees increased by 8.6% to €84.765 million.
As of the end of September 2025, the assets of the banking sector totaled €31.107 billion, which is 2%, or €616.538 million, more than at the end of 2024, when the assets of the banking sector amounted to €30.491 billion.
The volume of loans issued by banks to non-bank clients by the end of September was €18.075 billion, which is 8.5%, or €1.414 billion, more than at the end of 2024.
This includes the volume of loans issued to domestic clients, which at the end of September 2025 amounted to €15.084 billion, which is 8.6%, or €1.201 billion, more than at the end of last year.
The amount of loans issued to domestic households at the end of September was €7.202 billion, which is 8.8%, or €581.436 million, more than at the end of 2024, while the amount of loans issued to domestic non-financial corporations was €7.405 billion, which is 9.7%, or €656.733 million more, including loans issued to small and medium-sized enterprises amounting to €4.584 billion, which is 11.4%, or €467.764 million more than at the end of last year.
As for deposits, as of September 30 of this year, banks attracted €25.987 billion, which is 1.7%, or €428.38 million more than at the end of 2024.
This includes the volume of deposits from domestic clients, which compared to the end of last year increased by 0.8%, or €170.702 million, and amounted to €21.233 billion at the end of September.
The amount of deposits from domestic households for the first nine months of the current year increased by 4.8%, or €535.426 million, totaling €11.74 billion as of September 30, 2025, while the amount of deposits from domestic non-financial corporations decreased by 3.8%, or €296.481 million, amounting to €7.603 billion.
Data from the Bank of Latvia also indicates that the market share of the five largest banks by assets at the end of September this year was 87.58% (compared to 88.28% at the end of 2024), 86.37% for loans to non-bank clients (87.46%), and 89.22% for deposits from non-bank clients (88.64%).
In 2024, the total profit of the banking sector amounted to €569.533 million, including €451.109 million for the first nine months of last year.
