The Central Bank of Estonia reported that banks operating in Estonia earned EUR 539 million in profit in the first nine months of 2026, up 9%, or EUR 42 million, from the same period a year earlier. Growth in lending and higher Euribor boosted interest income. Reduced loan write-downs, reflecting lower estimates of potential loan losses, also supported earnings. Loans to companies and households increased by 9%, or EUR 2.5 billion, over the year to the end of September, led by lending related to real estate. Annual housing loan growth remained close to 10%, while loans to real estate and construction companies grew 14%. Other corporate loans increased by 5%, compared with 4% growth in other household loans and leases. Interest income grew considerably faster than interest expenses. Rates on long-term corporate loans and housing loans rose by 0.5 percentage point over the year, while banks’ average funding cost increased by only 0.1 percentage point. Higher deposit rates and a larger share of term deposits increased funding expenses, but interest rate movements have yet to affect banks’ income and expenses fully, leaving future profitability partly dependent on their continued transmission.
Central Bank of Estonia reports bank profits rose 9% to EUR 539 million in first nine months of 2026
The Central Bank of Estonia reported that banks earned EUR 539 million in the first nine months of 2026, up 9% from a year earlier. Lending growth, led by real estate, combined with higher Euribor and reduced loan write-downs to support earnings. Interest income outpaced interest expenses, but future profitability remains partly dependent on interest rate changes feeding fully into loan and deposit portfolios.