Banks, Financial Services, Latvia

FCMC spokeswoman Agnese Licite told LETA that the Latvian credit unions’ aggregate profit contracted almost by half in the first half of this year even though most of the credit unions, or 21, closed the period in the black, earning EUR 217,000 in total. The profit reduction occurred mostly on account of a deterioration of the loan portfolio’s quality as provisions for unsafe loans increased against the same period last year.

At the end of June 2017, the credit unions had granted EUR 21.165 million worth of loans, up 8.4% or EUR 1.639 million from the end of last year, while deposits with the credit unions grew 0.4% or EUR 71,000 to EUR 19.699 million.

The credit unions' aggregate assets expanded by 1.9% or EUR 520,800 from the end of 2016, to EUR 27.766 million at the end of June.

At the end of June 2017, the credit unions' capital adequacy ratio was 22.6% as compared to the 10% minimum requirement.

The credit unions posted EUR 291,993 in aggregate profit for the first half of 2016.

At the end of June this year, there were 34 credit unions operating in Latvia.