Banks, Deposits, Financial Services, Lithuania

Ten banks and foreign bank branches ended the nine months with a profit, and six suffered losses, the Bank of Lithuania said on Thursday, adding that the sector's profits were mainly driven down by increased loan impairment losses.

Net interest income remained the key source of banks' income, growing by 10.1% year-on-year to 399.4 million euros. 

Net service and commission income declined by 4.1% to 169.5 million euros, while administrative expenses increased by 8.6% to 268.6 million euros.

Impairment losses soared to 48.2 million euros in the first three quarters of 2020, from a mere 4.3 million euros in the same period last year, including 10.1 million euros in the third quarter. 

The banking system's assets totaled 35.252 billion euros in late September, up by 6.4% from a quarter ago and up by 22.9% from a year ago.

The overall loan portfolio, which makes up the bulk of the assets, amounted to 19.915 billion euros, up by 0.3% quarter-on-quarter, but down by 2.2% year-on-year.

Loans to private individuals grew by 1.8% over the quarter to 10.746 billion euros as housing loans increased by 2.4% to 8.653 billion euros. The year-on-year growth rates were 7.9% and 8.1%, respectively. 

However, the business loan portfolio shrank to 8.321 billion euros as of late September, down by 1.4% quarter-on-quarter and down by 11.3% year-on-year. 

The central bank said the decline in lending to businesses could be due to state support measures, such as subsidies and tax reliefs, or to companies postponing their development plans. 

Deposits totaled 28.692 billion euros in late September, up by 5.6% from a quarter ago and up by 23.7% from a year ago.

All banks complied with capital adequacy ratios set for them, the center bank said.