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Banks issued LVL 172.5 million in new loans in November

Photo: Edijs Palens/LETA.
 RIGA, Dec 27 - Latvian banking sector issued a total of LVL 172.5 million in new loans this past November, according to the Financial and Capital Market Commission's data.

LVL 48.6 million was issued for the development of Latvian companies, LVL 38.4 million to financial institutions, LVL 15.2 million to households, LVL 70.3 million to non-residents.
The sector's loan portfolio reduced 0.1 percent in November. In the corporate sector, most new loans were granted to real estate - LVL 10.3 million, followed by energy - LVL 9.1 million, trade - LVL 7.5 million, finances and insurance - LVL 5.9 million, manufacturing - LVL 4.8 million.

The share of loans with more than 90 days of overdue payments amounted to 11.6 percent in the sector's loan portfolio at the end of November, compared to 11.9 percent at the end of October. The share of such loans in the resident households' loan portfolio amounted to 15.7 percent, whereas in the resident corporate loan portfolio - 9.9 percent.

The amount of loan loss provisions made by the sector at the end of November constituted LVL 1.002 billion or 8.4 percent of the sector's loan portfolio.

According to the Financial and Capital Market Commission's data, the banking sector's profit amounted to LVL 128.3 million in the first eleven months of 2012.

15 Latvian banks and four foreign banks' branches in Latvia operated with a profit in January-November. Their total share of the banking sector's assets in Latvia is 93.9 percent.
The sector's profit before provisions and taxes reached LVL 274.2 million by the end of November, 29 percent more than in the same period last year.

Compared to the respective period last year, the sector's net commissions increased 16.3 percent, net interest income - 4.1 percent, whereas provisions for bad debts reduced 21.6 percent.

The banking sector's liquidity remained high, the liquidity ratio stood at 57.3 percent at the end of November. At the end of October, the liquidity ratio was 59.7 percent.

The capital adequacy ratio was 17.5 percent at the end of November.

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