Banks, Financial Services, Latvia

14 Latvian banks and five foreign banks' branches in Latvia operated with profit in the first six months this year. Their total share of the banking sector's assets is 90.6%, writes LETA/Nozare.lv.

The sector's profit before provisions and taxes reached LVL 140 million in the first half of 2012, 24% more than in the same period last year.

Compared to the respective period last year, the sector's net commissions increased 30.6%, net interest income – 9.3%, whereas provisions for bad debts reduced 14.6%.

The banking sector's liquidity remained high, the liquidity ratio stood at 59.3% at the end of June. At the end of May, the liquidity ratio was 59.4%. The minimum liquidity requirement is 30%.

The capital adequacy ratio stayed high as well, 17.2% at the end of June. The minimum capital requirement is 8%.

Since the beginning of the year, eight banks have increased their capital by LVL 20.5 million altogether.