Ten banks and foreign bank branches ended the first quarter with a profit, and five suffered losses. Most of the latter were banks in the process of restructuring, starting, or closing their business, the Bank of Lithuania said on Friday.
The banking sector's first-quarter net interest income rose by 10.7 percent year-on-year to 129.5 million euros, and net service and commission income remained almost unchanged at 55.8 million euros.
The negative effects of the economic slowdown caused by the coronavirus pandemic began to weigh on banks' financial indicators, including profits, in the first quarter, according to the central bank.
"The Bank of Lithuania's decisions to strengthen the banking sector's resilience to potential shocks and recommendations bore fruit: banks went into the crisis well-prepared, with solid capital and liquidity reserves," Jekaterina Govina, the director of the central bank's Supervision Service, said in a press release.
All banks complied with the capital adequacy requirements in late March. The sector's capital adequacy ratio increased from 19.9 percent to 22.8 percent over the quarter. Its liquidity remained healthy.
Banking deposits rose by 1.7 percent over the quarter to 25.4 billion euros. Net loans grew by 133 million euros to 20.6 billion euros (up by 3.5 percent year-on-year).
Ten banks and eight foreign bank branches held banking licenses in late March. Three specialized banks, Revolut Bank, GF Bankas and Fjord Bank, launched operations this year.
