Profits of Estonian commercial banks up by a third, exceed €500 million
The five largest banks operating in Estonia have managed to boost profitability by about 30 percent in the wake of soaring Euribor rates. The combined profits of Swedbank, Luminor, SEB, LHV and Coop came to €566 million last year.
The combined profits of the five largest banks grew by 31.1 percent on year in 2022. Luminor managed the fastest growth at €50 million or by 67 percent. However, this also includes the activities of its Latvian and Lithuanian branches.
Estonia's leading bank Swedbank managed to boost its profit by €45 million or by 25 percent to €224 million. While other banks also clocked decent growth, their financials fell some way short of Luminor and Swedbank.
Swedbank just said its growing profit was the result of new revenue. Luminor said it managed, after years of record-low interest rates, to boost its interest income and efficiency in the wake of the rising Euribor rate.
LHV said that the final quarter of last year was its most successful to date, courtesy of growing interest revenue and a high-quality loan portfolio. SEB and Coop refrained from commenting on bigger profits.
Inbank, Holm Bank, TBB Bank and Bigbank, all of which also have a banking license in Estonia, have not posted their 2022 financials yet. Adding their results, the combined profits of the Estonian banking sector might easily exceed the €600 million mark.
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Editor: Huko Aaspõllu, Marcus Turovski