Latvia’s monetary financial institutions (MFIs), primarily banks, earned a combined profit of 181.2 million euros during the first six months of 2026, down 9.3% from the same period a year earlier, according to data released by the Bank of Latvia.
In June alone, MFIs posted a profit of 29.3 million euros.
Despite the decline in profits, the banking sector continued to expand its balance sheet.
As of the 30th of June, 2026, the total assets of Latvia’s monetary financial institutions stood at 32.675 billion euros, an increase of 10.5%, or 3.092 billion euros, compared with 29.583 billion euros a year earlier.
Outstanding loans issued to Latvian residents reached 16.67 billion euros at the end of June, representing 13.4% annual growth.
Of that amount, 16.599 billion euros consisted of loans denominated in euros, up 13.5% year-on-year, while
loans issued in foreign currencies totalled 71.2 million euros, a 6.7% decrease compared with June 2025.
Resident deposits also continued to grow.
At the end of June, deposits held by Latvian residents amounted to 21.862 billion euros, an increase of 11.2% from a year earlier.
Euro-denominated deposits accounted for 20.567 billion euros, while deposits in foreign currencies totalled 1.296 billion euros. Compared with the same period last year, euro deposits increased by 11.6%, while foreign currency deposits rose by 5%.
Meanwhile, the capital and reserves of Latvia’s monetary financial institutions reached 3.479 billion euros at the end of June, up 2.5% year-on-year.
For comparison, Latvia’s monetary financial institutions reported a total profit of 341.7 million euros in 2025, a 34.5% decline from 2024. During the first half of 2025, the sector earned 199.7 million euros.
Monetary financial institutions include banks and other financial companies that accept deposits from non-financial customers while providing loans and investing in securities on their own account.
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