First quarter profits of commercial banks double to €444 million in Estonia
Estonian credit institutions reported a total profit of €444 million in the first quarter, up from €213 million in the same period in 2023. The doubling of profits was primarily due to dividend income and profit allocations received from subsidiaries and branches, according to the Bank of Estonia.
In March, the total balance sheet of banks in Estonia was €42.2 billion, marking a 10.5 percent increase or €4 billion from the previous year.
The volume of deposits in banks reached €29.6 billion in March. Compared to the same period last year, this represents an increase of €1.7 billion. Of these deposits, €7.2 billion were term deposits from resident households and businesses, which saw an annual growth of 97 percent. Non-resident deposit volumes grew by 24 percent or €870 million over the year, accounting for 15 percent of the total deposit balance.
Business deposits, however, decreased by 4 percent over the year, totaling €9.9 billion in March. This includes term deposits of €2.9 billion (up from €1.6 billion the previous year).
Household deposits continued to grow for the seventh consecutive month, totaling €12.1 billion in March. This is an increase of €141 million from the previous month and €748 million from the same time last year. Notably, the volume of term deposits increased by 102.6 percent year-over-year.
In March, the average interest rate on term deposits was 3.78 percent, up from 3.75 percent the previous month and 2.49 percent the same time last year.
The average interest rate for long-term loans granted to businesses was 6.97 percent in March, slightly down from 6.98 percent the previous month but up from 5.76 percent a year earlier.
The average interest rate on business term deposits in March was 3.76 percent, slightly up from 3.75 percent the previous month and significantly higher than the 2.23 percent seen last year at the same time.
The average interest rate for new secured home loans in March was 5.44 percent, which is 0.09 percentage points lower than the previous month and 0.46 percentage points higher than the same time last year.
The average interest rate for car leasing in March was 5.61 percent, down 0.05 percentage points from the previous month and up 0.10 percentage points from the same time last year.
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Editor: Marcus Turovski
