In the first half of 2023 Swedbank generated a profit of €131 million in Latvia, which is an increase of €84 million against the corresponding period of 2022, LETA, a Latvian newswire, reported on July 18.

Swedbank representatives attributed the profit growth to increased revenue, although the bank's expenditures grew as well during the reporting period. 

Swedbank Group's first-half profit in Latvia was €131.688 million, which is 4.1 times the figure reported for the first half of 2022, while the bank's profit grew nearly fourfold year-on-year to €133.836 million, the group says in its financial report.

Swedbank's interest income in the first half of this year was €163.928 million, compared to €53.621 million in the first half of last year, while interest expenses amounted to €12.04 million, compared to €14.386 million in the same period last year. At the same time, the bank's fee and commission income in the first half of this year amounted to €55.369 million, compared with €50.738 million in the first half of last year, while fee and commission expenses were €10.672 million, compared with €9.893 million in the first half of last year.

Swedbank Group's assets stood at €8.777 billion at the end of June 2023, up 3.1%, or €263.292 million, against the end of 2022 when the banking group's assets were worth €8.514 billion. 

According to the bank, €2 million were earmarked for loan provisions in the first half of this year.

Net interest income in the first half of 2023 increased by €114 million compared to the same period last year, while net fee income grew by €3 million.

At the same time, the bank's loan portfolio in the household and corporate segments grew by 7%, while deposits grew by 6% compared to the same period last year. Household deposits grew by 5%, while corporate deposits increased by 6%.

"Activity in the housing market remained stable. Swedbank’s mortgage portfolio continued to increase," the bank said, noting that sustainable lending offerings launched in Latvia in the end of the first quarter had a positive impact on mortgage volumes. Also, solar-loan and environment friendly car leasing sales picked up. Overall, €42 million were issued to clients as part of a green financing offer.

The bank also indicated that car leasing sales grew by 19% compared to the first half of 2022.

In the first six months of 2022, Swedbank Group earned a €31.752 million profit in Latvia, while the bank's profit was €34.498 million. Swedbank in the largest bank in Latvia by assets, LETA said.