Estonian banks were profitable in 2015

The major banks active in Estonia see the current year as very good for their business and several of them say they are on course to setting a new record for full year profit.

The board chairman of LHV Pank, Erki Kilu, said at a media event of the Estonian Banking Association on Monday that the outgoing year has been very successful for LHV. “The first thing is the issuance of bonds and second the opening of ATMs. Aside from all this we are on course for a record profit. The banking market is in a good shape,” Kilu said.

The head of the Baltic units of Danske, Ivar Pae, also said the banking sector is enjoying a solid base now. “Why have banks been able to post continuously good results? First, good loan quality, which is at its best since the financial crisis now. Second, banks have been able to manage their cost base. Third, banks have adapted and their asset quality is high,” Pae said.

Pae added that even though Danske exited the private customer segment this year, it has boosted its operating volumes by one-third. “I can be altogether satisfied,” he said.

Silver Kuus, head of corporate banking at Nordea Eesti, said the outgoing year has been very good for the bank particularly because they were successful in activating their customer base.

“We earned money where we hadn’t earned before. A double digit figure will represent the increase in our profitability this year. We are in for a very upbeat figure,” Kuus said.

Allan Parik, board chairman of SEB Estonia, said the figures for the first three quarters of the year suggest a modest increase in expenses. “Our results reflect the environment. Despite challenges, we can be very satisfied with this year. The liquid savings of individuals and businesses alike are growing at a rapid rate,” Parik said.

The board chairman of Swedbank Eesti, Robert Kitt, also said there were indications that 2015 will turn out to be a very good year when it comes to earnings. The bank is not planning to pay out extraordinary dividend next year like it did using accumulated profit this year.

In their forecasts for next year, all the banks emphasized their expectation of faster economic growth and, first and foremost, that investments by the business sector and the private sector would start to grow.

Source: Baltic News Service via Estonian Review


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