OPERATING RESULTS OF LATVIAN COMMERCIAL BANKS 4TH QUARTER 2017 - PowerPoint PPT Presentation

1 OPERATING RESULTS OF LATVIAN COMMERCIAL BANKS 4TH QUARTER 2017

Saturs 2 Assets 1. 2. Capital Profit 3. 4. Issued loans Deposits 5. 6. Financial ratios

3 1. BANKS’ ASSETS

Assets* of Latvian banking sector 2000-2017 4 35.000 30.000 25.000 20.000 MEUR 15.000 10.000 5.000 0 *gross value

Assets of Latvian banking sector 5  Total assets of Latvian commercial banks were EUR 28.4 billion as of December 31, 2017;  The value of assets has decreased by EUR -3.5 billion or -11% since the beginning of 2016  The value of assets has decreased by EUR -1.1 billion or -4% since the beginning of 2017  During the 4 th quarter of 2017, total asset value has grown by +3% or EUR +0.9 billion comparing to the previous quarter

Assets* as of 31.12.2017, MEUR 6 Change from the beginning Bank Value of the year Swedbank 5 330.8 15.6 0.3% Luminor Bank 4 934.4 SEB banka 3 725.3 150.9 4.2% ABLV Bank** 3 700.8 -176.4 -4.6% Rietumu Banka 3 114.7 -479.1 -13.3% Citadele banka 2 674.0 -86.5 -3.1% NORVIK BANKA 857.3 -68.8 -7.4% BlueOrange Bank 681.4 9.8 1.5% Danske Bank Latvia branch 591.1 260.3 78.7% Regionala investiciju banka 396.0 -141.3 -26.3% OP Corporate Bank branch Latvia 372.8 73.5 24.5% Baltic International Bank 320.9 -5.7 -1.7% Meridian Trade Bank 294.5 -26.2 -8.2% Rigensis Bank 289.3 -50.4 -14.8% PrivatBank 258.2 -65.2 -20.2% LPB Bank (Latvijas pasta banka) 235.6 29.7 14.4% Expobank 227.7 -73.2 -24.3% Signet Bank 175.9 -4.3 -2.4% BIGBANK Latvia branch 105.9 6.3 6.3% Total banking industry 28 397.4 -1 098.7 -3.7% *gross value **On February 26, 2018, ABLV Bank announced its decision on voluntary liquidation

Change of assets* 31.12.2017 vs 31.12.2016, MEUR 7 300 200 100 0 MEUR -100 -200 -300 -400 -500 *gross value

Banks’ assets* 2000-2017 (1) 8 8.000 7.000 LUMINOR BANK 6.000 5.000 MEUR 4.000 3.000 2.000 1.000 0 Swedbank SEB banka ABLV Bank Rietumu Banka Citadele banka *gross value

Banks’ assets* 2000-2017 (2) 9 1.200 1.000 800 MEUR 600 400 200 0 NORVIK BANKA BlueOrange Danske Bank Latvia Branch Regionala investiciju banka *gross value

Banks’ assets* 2000-2017 (3) 10 1.200 1.000 800 MEUR 600 400 200 0 Expobank PrivatBank Baltic International Bank OP Corporate Bank Branch in Latvia *gross value

Banks’ assets* 2000-2017 (4) 11 500 400 300 MEUR 200 100 0 Meridian Trade Bank Rigensis Bank LPB Bank (Latvijas pasta banka) Signet Bank BIGBANK Latvia Branch *gross value

Historic: banks’ assets* 2000-2017 (1) 12 5.000 4.500 4.000 3.500 3.000 MEUR 2.500 2.000 1.500 1.000 500 0 Parex banka Nordea Bank AB Latvia Branch DNB banka *gross value

Historic: banks’ assets* 2000-2017 (2) 13 1.600 1.400 1.200 1.000 MEUR 800 600 400 200 0 UniCredit Bank Latvijas Hipoteku un zemes banka Latvijas Krajbanka Trasta komercbanka *gross value

Historic: banks’ assets* 2000-2017(3) 14 450 400 350 300 MEUR 250 200 150 100 50 0 GE Money Bank Sampo Banka Ogres komercbanka Saules banka *gross value

Historic: banks’ assets* 2000-2017 (4) 15 100 90 80 70 60 MEUR 50 40 30 20 10 0 Eesti Krediidipank Latvia Branch Allied Irish Banks Latvia Branch Banka SNORAS Latvia Branch VEF banka *gross value

16 2. BANKS’ CAPITAL

Capital of Latvian banking sector 2000-2017 17 3.500 3.000 2.500 2.000 MEUR 1.500 1.000 500 0

Capital of Latvian banking sector 18  Total capital of the Latvian banking sector reached EUR 3.2 billion as of December 31, 2017;  Since the beginning of 2017, total capital value has increased by +6% or EUR +0.2 billion EUR  Total capital reached its maximum in 2015, when its value recorded EUR 3.3 billion

Banks’ capital as of 31.12.2017, MEUR 19 Change from the beginning Bank Value of the year Swedbank 748.8 33.2 5% Luminor Bank 516.4 Rietumu Banka 462.0 -15.4 -3% SEB banka 391.8 -33.0 -8% ABLV Bank** 357.0 35.2 11% Citadele banka 240.9 2.7 1% NORVIK BANKA 82.6 -22.9 -22% Rigensis Bank 62.6 0.8 1% BlueOrange Bank 61.5 3.5 6% PrivatBank 49.0 -24.2 -33% Regionala investiciju banka 40.7 3.9 11% Expobank 36.9 -23.5 -39% Baltic International Bank 29.7 -0.9 -3% LPB Bank (Latvijas pasta banka) 28.3 -1.6 -5% Signet Bank 16.4 -4.0 -19% Meridian Trade Bank 15.4 -9.8 -39% BIGBANK Latvia branch * Danske Bank Latvia branch * OP Corporate Bank branch Latvia * Total banking industry 3 161.4 170.1 5.7% **On February 26, 2018, ABLV Bank announced its decision on voluntary liquidation

Change of capital 31.12.2017 vs 31.12.2016, MEUR 20 40 30 20 10 MEUR 0 -10 -20 -30 -40

Banks ’ capital 2000-2017 (1) 21 1.400 1.200 1.000 800 MEUR LUMINOR BANK 600 400 200 0 Swedbank ABLV Bank SEB banka Rietumu Banka Citadele banka

Banks ’ capital 2000-2017 (2) 22 120 100 80 MEUR 60 40 20 0 NORVIK BANKA BlueOrange Regionala investiciju banka

Banks ’ capital 2000-2017 (3) 23 90 80 70 60 MEUR 50 40 30 20 10 0 Expobank PrivatBank Baltic International Bank

Banks ’ capital 2000-2017(4) 24 70 60 50 40 MEUR 30 20 10 0 Meridian Trade Bank Rigensis Bank LPB (Latvijas pasta banka) Signet Bank

25 3. BANKS’ PROFIT

Profit of Latvian banking sector 2000-2017 26 1.200 900 528 600 416 454 378 236 174 246 311 275 300 80 102 165 85 71 MEUR 55 0 -300 -254 -513 -600 -900 -1.100 -1.200

Profit of Latvian banking sector 27  Total profit of commercial banks in Latvia was EUR 236 million in 2017;  It was by EUR -218 million or -48% lower compared to 2017;  Latvian banking sector is profitable since 2012. The profit increased each year in the period 2012-2017. Y2017 is the first year since 2009 when profit declined compared with previous year;  Accumulated profit of Latvian banking sector since 2000 is EUR 1.7 billion.

Banks’ profit as of 31.12.2017, MEUR 28 Bank Value Izmaiņa pret 2016. gadu Swedbank 94.4 1.5 1.6% ABLV Bank** 51.2 -28.1 -35.4% SEB banka 38.2 -13.0 -25% Rietumu Banka 35.5 -50.9 -59% LPB Bank (Latvijas pasta banka) 7.2 -4.0 -36% BlueOrange Bank 6.3 -0.4 -6% Rigensis Bank 4.0 -3.0 -43% Regionala investiciju banka 4.0 1.3 46.3% Citadele banka 2.2 -34.1 -93.9% Luminor Bank -0.6 Meridian Trade Bank -2.4 -3.2 -365.3% Signet Bank -2.5 -4.0 -264.6% Baltic International Bank -2.7 -3.9 -320.7% Expobank -3.4 -9.3 -157.6% PrivatBank -3.5 -12.5 -138.7% NORVIK BANKA -10.5 -21.1 -199.1% BIGBANK Latvia branch * Danske Bank Latvia branch * OP Corporate Bank branch Latvia * Total banking industry 236.1 -217.7 -48.0% **On February 26, 2018, ABLV Bank announced its decision on voluntary liquidation

Change of profit 31.12.2017 vs 31.12.2016, MEUR 29 10 0 -10 -20 MEUR -30 -40 -50 -60

Banks’ profit 2012 -2017, MEUR and % from total profit of Latvian banking sector (1) 30 150 31% 37% 46% 61% 40% 100 20% 19% MEUR 17% 18% 17% 21% 22% 17% 22% 11% 50 18% 16% 8% 15% 19% 8% 16% 9% 16% 8% 10% 5% 6% 5% 1% 0 Swedbank ABLV Bank SEB banka Rietumu Citadele banka Banka 2012 2013 2014 2015 2016 2017

Banks’ profit 2012 -2017, MEUR and % from total profit of Latvian banking sector (2) 31 20 4% 5% 2% 3% 6% 10 1% 3% 1% 2% 1% 1% 0.4% 0 MEUR 0% Luminor Bank NORVIK BANKA BlueOrange Reģionālā investīciju banka -2% -1% -10 -0.4% -4% -20 -8% -14% -30 2012 2013 2014 2015 2016 2017

Banks’ profit 2012 -2017, MEUR and % from total profit of Latvian banking sector (3) 32 15 3% 10 2% 2% 2% MEUR 1% 5 2% 2% 2% 1% 1% 1% 1% 1% 0.3% 0.2% 0.1% 0.1% 0.2% 0.1% 0.1% 0 Expobank PrivatBank Baltic Meridian Trade International Bank -1% Bank -1% -1% -1% -5 2012 2013 2014 2015 2016 2017

Banks’ profit 2012 -2017, MEUR and % from total profit of Latvian banking sector (4) 33 15 2% 10 3% 2% MEUR 5 1% 1% 2% 1% 1% 1% 1% 1% 0.3% 0.3% 0 0.0% Rigensis Bank LPB (Latvijas pasta Signet Bank banka) -1% -1% -2% -1% -5 2012 2013 2014 2015 2016 2017

34 4. ISSUED LOANS

Portfolio of issued loans at Latvian banking sector 2000-2017 35 25.000 20.000 15.000 MEUR 10.000 5.000 0

Loans at Latvian banking sector 36  The portfolio of issued loans by Latvian banking sector was EUR 14.4 billion as of December 31, 2017;  The value of loans declined -1% or EUR -0.1 billion in the 4 th quarter 2017, comparing to the previous quarter  Total loan portfolio is relatively constant since 2014; it fluctuates around EUR 14.4-15.0 billion. Even despite the fact that loan portfolio dropped by -4.6% or EUR -0.7 billion during 2017.