Estonian banks see €368mn profit in Q1 2025

By bne IntelliNews April 28, 2025

Commercial banks in Estonia earned a combined profit of €368mn in the first quarter of 2025, down from €444mn a year earlier but up from €291mn in the previous quarter, according to Eesti Pank, the country’s central bank, ERR.ee reported on April 28.

As of March, banks' total balance sheet volume was €44.8bn, down 1.1% (€489mn) from February but 6.1% (€2.6bn) higher than a year earlier. Deposit volumes reached €31.5bn, growing by €345mn month-on-month and by €1.9bn year on year. Term deposits by resident households and businesses rose 5% annually to €7.5bn, while non-resident deposits increased by €268mn and accounted for 15% of the total, ERR.ee said.

In March, €186mn in housing loans were issued, up 11% from February and 32% y/y. Car leasing transactions totalled €18mn, a 49% monthly increase but a 38% annual decrease. Long-term loans and leases to businesses surged to €462mn, 79% higher than the previous month and 45% above last year's level, ERR.ee said.

However, overdue loans are rising. Business loans over 60 days past due stood at €64mn, up from €44mn in February and €26mn a year ago. Household loans past due rose to €50mn.

Interest rates have been declining. The average rate on long-term business loans was 5.09% in March, slightly up from February but significantly lower than 6.97% a year ago. The rate for new collateralised housing loans fell to 3.92%, continuing a 13-month decline. Car lease interest rates dropped to 4.31%, while term deposit rates averaged 2.25%, down from 3.78% a year earlier, ERR.ee said.

As reported by bne IntelliNews, banks operating in Lithuania posted a record profit of €1bn in 2023, reigniting political debate over the future of the “solidarity tax”, a temporary levy on extraordinary banking profits.

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