In the first half of 2023, banks in Estonia achieved near-record profits, mirroring the total earnings for whole 2022. Swedbank, the country’s biggest bank, reported a net profit of €214 million, showing an increase of €148 million from last year, mainly driven by higher interest income due to increased interest rates by the European Central Bank. Notably, the bank issued €521 million in new loans to private individuals and €800 million to businesses. Despite higher living costs and increasing economic uncertainty, the bank’s customer portfolio remains unaffected. On the other hand, LHV Group reported a net profit of €68.9 million, exceeding last year’s earnings by €42 million. An increase in interest income and a quality credit portfolio substantially contributed to the group’s performance. Finally, SEB Bank recorded a first-half profit of €113.3 million, slightly lower than its full-year profit of €116 million in 2022. The bank’s investments in Estonian companies reached almost €2.9 billion in the first half of 2023. Despite the uncertain economic environment, Estonian banks have demonstrated robust performance, benefiting from higher interest rates and a sturdy customer portfolio.
Source: news.err.ee
