Banks in Estonia see record profits
15.02.2012, 09:53Banks operating in Estonia made a total of 663.4 million euros in profit last year, a notable improvement from 70.5 million euros earned in 2010 and a loss of 580 million euros in 2009, writes Äripäev.
Swedbank Estonia made 190 million euros in profit in 2011, followed by SEB (94 million), Sampo (60.6 million), Nordea (40 million) and LHV Pank that lost 6.6 million euros in 2011.
It should be said that about half of the total profit earned by banks in Estonia came from the decision of Swedbank Group to take over the Latvian subsidiary from Swedbank Estonia.
Commenting the bank’s last year’s results, Priit Perens, head of Swedbank Estonia, says that he is relatively satisfied with last year and added that it was the first calm year after the crisis.
“The Estonian economy was becoming more active and it was a good year for banking and the whole Estonian economy in general,” said Perens.
The banker added that the bank’s results were affected by Estonia’s euro transition that reduced Swedbank’s service fees and foreign exchange income.
“The fact that the Estonian economy grew 7.5 percent last year shows that the our customers were doing well and difficult structural choices made in those tough conditions were the right ones,” said the banker.
Swedbank said this week that it expects the Estonian economy to slow down in 2012.