The Central Bank of Estonia published its July 2025 statistics for banks and leasing companies, including an overview of second-quarter performance for commercial banks operating in Estonia. Banks earned EUR 146 million in net profit from the Estonian market in the second quarter, while profitability measured as profits to assets fell to 1.3%, around the past decade average and broadly back to pre-interest-rate-rise levels. The release covers the volume and structure of assets, loans and leases, deposits, and interest rates on loans and leases, and is presented separately from economic policy releases. Profit before income tax declined 23% year on year to EUR 178 million, which was attributed mainly to falling Euribor reducing interest income faster than banks’ funding costs. Lending growth remained strong: by end-June, the stock of housing loans was about 10% higher than a year earlier and corporate loans were 8.5% higher, compared with around 2% average growth across the euro area; housing loan growth was temporarily boosted by the VAT increase at the start of July, and corporate borrowing was led by long-term investment loans, particularly in real estate and infrastructure, while short-term operating loans and consumer lending grew more moderately.
Central Bank of Estonia 2025-07-28
Central Bank of Estonia publishes July 2025 banking and leasing statistics showing EUR 146 million Q2 net profit and rapid loan growth
The Central Bank of Estonia's July 2025 statistics show a 23% year-on-year decline in profit before income tax to EUR 178 million, mainly due to falling Euribor. Despite this, lending growth remained robust, with housing loans up 10% and corporate loans up 8.5% by end-June, driven by long-term investment loans in real estate and infrastructure. Net profit for banks in the second quarter was EUR 146 million, with profitability returning to pre-interest-rate-rise levels.