Banks operating in Lithuania earned a net profit of 986 million euros last year, twice as much as in 2022 (491 million euros), according to unaudited data released by the Bank of Lithuania on Thursday.
This is after deducting taxes, including the so-called “solidarity contribution”, a temporary levy on windfall profits enjoyed by the banks thanks to the European Central Bank’s monetary policies.
Lithuania’s banks paid more than 250 million in windfall tax last year. The Bank of Lithuania estimates that the contribution will be around 220 million euros this year. The levy expires next year.
Last year, 14 banks and branches of foreign banks were profitable, while four made a loss of 9.7 million.
Net interest income of banks last year amounted to more than 2 billion euros, 2.5 times more than in 2022. Total interest income reached €2.5 billion, almost three times more, while expenses rose almost fivefold to €464 million.
The banks’ loan portfolio grew by 6 percent year-on-year to 27.5 billion euros. Loans to households, which accounted for the largest share (55 percent), grew by almost 10 percent over the year to 15 billion, while the housing loan portfolio increased by 6.1 percent to 11.7 billion and consumer loans by 41 percent to €2.1 billion. This change was driven by lending to both Lithuanian and non-Lithuanian residents.
Business loans accounted for a third of the banks’ loan portfolio, growing by 4.3 percent to €11.2 billion.
There are currently 18 banks operating in the country, 5 of which are branches of foreign banks.
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