Banks, Deposits, Financial Services, Good for Business, Lithuania

10 local banks and branches of foreign banks were profitable this year, and two market participants suffered losses, the Bank of Lithuania said on Wednesday.

"The capital state of the profitable banking sector remains sustainable, but strengthening of the capital remains a priority for local banks," Vytautas Valvonis, director of the Bank of Lithuania's Supervision Service, said in a statement.

Net interest income remains the key source of banks' income, making almost two thirds of all revenue. Amid growing crediting and lower loan costs, net interest income grew 6.9% to 110.7 million euros in the first quarter.

Net service and commission income was up 11.8% to 53.3 million euros. Meanwhile, banks' administrative costs increased 8.8% to 77.6 million euros.

Banks' assets stood at 26.105 billion euros in late March, down 4.5% from the start of this year and up 1% from the end of March, 2017.

Loans, including leasing, made the majority of banks' assets and were valued at 18.857 billion euros, up 1.2% from the start of this year and 3.1 more than a year ago.

The value of residential deposits kept in banks dropped 1.2% over a quarter and stood at 19.791 billion euros in late March. The value grew 6.8% over a year.