Lithuanian banking profits fell by one fifth

DELFI / Šarūnas Mažeika

Even though market participants and analysts do not expect any reversal of the trend, they point to improvements in the quality of loan portfolios, which show improvements in the financial health of Lithuanian households and business as well as in expectations about the future.

“Banks are losing the possibility to make a profit from fixed yield markets and are still looking for ways to adapt to the existing environment. Moreover, they are still waiting for attractive investment opportunities, which depend on consumer and business expectations,” Mantas Valužis, a business consultant, told the daily in comments about the decline in earnings in the sector.

In 2015, the net profit of the major players in Lithuania’s banking sector fell by approximately one-fifth, mainly due to a decline in net interest revenue and due to a lost possibility to charge for exchanging euros to litas.

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