The Council of the Central Bank of Latvia has approved the bank's 2025 annual report, comprising the 2025 financial statements, an unqualified independent auditors' report and a review of economic developments in Latvia and the euro area and of the central bank's activities. The report shows that the central bank ended 2025 with positive financial results despite negative results on monetary policy operations linked to earlier European Central Bank interest rate increases. Total recognised gains were EUR 332 million, up from EUR 214 million in 2024, lifting capital and reserves by 35% to EUR 1.275 billion. After allocating EUR 58 million to provisions for financial risks, EUR 28 million was recognised in the profit and loss statement. Payments to the state budget for 2025 totalled EUR 56 million, consisting of EUR 19 million in dividends, EUR 21 million in interest on Latvian government deposits and EUR 16 million in taxes. The financial statements received a positive audit opinion from SIA KPMG Baltics. The report also highlights policy and operational measures taken in 2025. In critical financial services, the central bank developed an offline card payment solution for use in large grocery stores, fuel stations and pharmacies during communication disruptions, improved continuity arrangements for critical ATMs and large-company payments in crisis situations, saw minimum cash availability requirements take effect and introduced Verification of Payees to reduce payment errors and fraud. On financial service accessibility, corporate lending increased by more than 16%, household lending was supported by lower interest rates and a simplified mortgage refinancing framework, and more than 11,500 mortgage borrowers refinanced, with total savings over the life of their loans estimated at about EUR 50 million. Other measures included proposals and rule changes for the second and third pension pillars, opening the payment system to direct participation by payment institutions and electronic money institutions, drafting legal acts to allow credit unions to lend to legal entities and introducing specialised credit institutions with lower initial capital. Preparations made in 2025 also led to new requirements on in-person provision of commercial bank services taking effect from 1 January 2026. For 2026, the Central Bank of Latvia states that it will continue work to strengthen the financial sector, with accessibility of financial services and meeting customer needs remaining among its priorities.
Central Bank of Latvia 2026-05-13
Central Bank of Latvia approves 2025 annual report showing EUR 332 million in recognised gains and EUR 56 million paid into the state budget
The Council of the Central Bank of Latvia has approved the bank’s 2025 annual report, showing total recognised gains of EUR 332 million (up from EUR 214 million), a 35% increase in capital and reserves to EUR 1.275 billion, and EUR 56 million paid to the state budget, with an unqualified audit opinion from SIA KPMG Baltics. The report highlights measures to enhance payment resilience and cash availability, support mortgage refinancing and lending, open the payment system to payment and electronic money institutions, and adjust pension and credit union frameworks, with financial service accessibility remaining a priority for 2026.