Latvian Bank Account

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According to the information on the performance of Latvian banks, provided by the Financial and Capital Market Commission, in 2010 the banking sector profit before tax amounted to 143.5 million lats, that is 55.4% down from the year 2009. Banking sector interest income in 2010 decreased due to the impact of decrease both in loan portfolio and interest rate.

In 2010 expenses on loan loss provisioning also were the main reason for total losses in the banking sector, totalling 360.6 million lats by end of year, or by 53.4% down from the previous year with losses of 773.4 million lats. This year, 10 Latvian banks operated with profit, of which two foreign bank branches (making 15.6% of total banking sector assets) earning overall 8.3 million lats.

In December 2010, there was the growth of deposit stock in banks. Since the beginning of the year 2010, total deposit stock in the banking sector rose by 1.6 billion lats, or 16.3%. Also, in December 2010 the amount of new loans issued in the banking sector made up 191 million lats

127 million lats were issued to the development of the Latvian economy, 14.6 million lats were granted to households, whereas 49.5 million lats — to non-residents. In the 2nd half of the year the amount of new loans totalled 956.6 million lats, and loan portfolios of 8 Latvian banks, three of which are foreign bank branches, have increased in December.

In December, the number of restructured loans fell by 2.5 thousand, while their volume — by 53 million lats. In December, the amount of loans in work-out process had also fallen by 19 million lats and by end of month it was 2.2 billion lats, or 15.3% of total banking loan portfolio.