Lithuanian banks and branches of foreign banks in Lithuania earned almost 358 million euros (406 million U.S. dollars) in net profits in aggregate last year, the most since 2007, announced the country's central bank on Tuesday.
Profits in Lithuanian banking sector highest since 2007
© Shutterstock

Net profits increased by almost 50 percent compared to 2017 and were the highest since 2007, shows aggregate data announced by the Bank of Lithuania.

"The banks cannot really complain about their results for the last year," Vitas Vasiliauskas, the Chairman of the Board of the Bank of Lithuania, told local press conference.

Profits in the Lithuanian banking system continued to be driven by improving economy and increasing lending volumes to households and businesses, supported by low interest rate environment, explains the Bank of Lithuania.

"The Lithuanian economy has been running above its long-term potential, it was helped by favorable interest rates which remained low," explained Vasiliauskas.

In 2018, the Lithuanian economic growth was 3.4 percent.

The banks' aggregate loan portfolio to households and businesses increased 6.7 percent to around 20 billion euros in 2018.

Profits of the banks in Lithuania, a small Baltic Country with a population of less than 3 million, were also supported by shrinking competition in an increasingly concentrated market, noted the Bank of Lithuania.

Last year, the banks in Lithuania had increased their margins for mortgages from 2.09 percent to 2.32 percent on average, says the Bank of Lithuania.

"We think the main factor for increased rates was concentration in the banking sector, the concentration has increased," noted Vasiliauskas.

At the end of 2018, 6 banks and 7 branches of foreign banks operated in the Lithuanian financial market, though three largest banks in Lithuania accounted to 83.9 percent of assets of Lithuanian banking system.

"The most active lenders are Swedbank and SEB," said Vasiliauskas.

Finance minister: coronavirus to affect economy

The widening coronavirus outbreak will have implications for the Lithuanian economy , Finance...

Lithuanian businesses might feel coronavirus effect in spring

The coronavirus outbreak in China is already affecting Lithuanian businesses as some companies...

Leader in gaming and VR platforms to undergo major expansion in Lithuania

Unity Technologies , creator of the world’s most widely used real-time development platform for...

German polymer specialist establishing microduct systems production unit in Klaipeda

REHAU , a family-owned polymer specialist with annual sales of around EUR 3.5 billion, is...

Five cities may get another EUR 30 mln to buy electric buses

Lithuania's authorities are considering providing another 30 million euros in EU money to Vilnius,...

Top news

Lithuania declares nationwide emergency due to coronavirus threat

The Lithuanian government declared on Wednesday a nationwide emergency in an effort to minimize...

Installation of Chinese CCTV in Kaunas raises security concern

The installation of a CCTV system produced by Chinese company Hikvision in Lithuania's...

Police chief in Kaunas Zukauskas sacked

Darius Zukauskas , chief of Kaunas County Chief Police Commissariat , has been dismissed from the...

Lithuanian author long-listed for prestigious UK literary award

Noir Press announced that Lithuanian author Grigory Kanovich has just been long-listed for the...

Lithuanian model Ieva hits the London Fashion Week catwalk

A Lithuanian student from Kėdainiai swapped designing clothes for modelling them at one of the...