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Whereas domestic financial institution deposits amounted to 94 million euro by the end of the year, or down by 9.3% year-on-year.
Application of enhanced AML requirements and slow economic growth rates in the countries of foreign customers' origin reduced the volumes of deposits in Latvian banks by almost one third (-3.3 billion euro or 26.3%).
Meanwhile all 16 Latvian banks and three foreign bank branches (covering nearly 98% of total banking sector assets) in total made a profit of 466 million euro in 2016.
During the reporting year, profitability of the banking sector improved and return on equity (ROE) reached 14.25% by the end of December (compared to 12.5% by the end of 2015).
Also, the growth in loan portfolios is on a recovery path, the amount of new loans has increased essentially, as well as domestic deposits have reached a historic high level.
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