The Bank of Lithuania published its overview of the Lithuanian banking sector for the third quarter of 2024, reporting active household and business lending alongside improving loan quality and a higher capital adequacy ratio. The update also flags an expected tightening of competition in housing lending from February 2025 when refinancing-related changes take effect, which the central bank says should enable households to manage loans more efficiently and at lower cost. Banks generated net profit of EUR 267.7 million in Q3 2024 and EUR 788 million over the first nine months, up 4.1% year on year, with 13 institutions profitable and five loss-making (total loss of EUR 7 million). The loan portfolio rose by EUR 1.0 billion (3.6%) quarter on quarter to EUR 30.3 billion, driven by household lending (up EUR 570 million to EUR 16.4 billion), including housing loans (up EUR 309 million to EUR 12.4 billion) and consumer loans (up EUR 240.4 million to EUR 2.7 billion). Business lending increased by EUR 429 million to EUR 12.1 billion, concentrated in wholesale and retail trade, real estate operations and manufacturing. Deposits grew by EUR 2.8 billion to EUR 55.5 billion, or nearly EUR 1.1 billion excluding the Revolut Group, with corporate deposits cited as a key driver; household time deposits increased to EUR 8.8 billion. Asset quality improved, with the share of non-performing loans falling 0.10 percentage points to 0.94%. The sector’s capital adequacy ratio increased from 20.53% to 21.32%, while liquidity requirements continued to be met with a large margin. The Bank of Lithuania also estimates the 2024 solidarity contribution at around EUR 240 million and the cumulative temporary contribution for 2023–2025 at around EUR 580–590 million.

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