Banks, Estonia, Financial Services

Swedbank that has the biggest market share in Estonia, stated that it ended January with a profit. However, in total the commercial banks in Estonia earned a loss of 195.1 million kroons in January while a year ago during the same month, banks earned a profit of 273.7 million kroons.

Leading specialist of the financial policy sub-division of the Bank of Estonia Siret Vildo noted that as the banks present their detailed profit reports on a quarterly level, the banks' January results cannot be commented upon.

"The volume of provisions – i.e. estimated losses on loans – certainly grew," stated Vildo.

According to the central bank, the banking sector's capital adequacy indicator in January was 19.6% – twice as high as the minimum regulatory standard. "The banks have a solid buffer for a situation where they would earn losses or zero-profits," estimated Vildo.