Central Bank of Estonia publishes December 2024 banking statistics showing lower profitability and a year-end leasing and deposit surge

The Central Bank of Estonia published statistics for banks and leasing companies for December 2024, indicating that bank profitability in Estonia eased from its recent peak as falling interest rates, including Euribor, reduced net interest income. Banks reported EUR 297 million in profit in the fourth quarter of 2024 and a little over EUR 1 billion for the year, though the quarterly result was materially boosted by a one-off dividend transaction. In the fourth quarter, interest income was EUR 11 million lower than a year earlier while interest expenses were EUR 26 million higher. Excluding the dividend transaction, quarterly profit would have been EUR 169 million, implying a 1.5% return on assets, slightly above the long-term average but below 2023. Leasing activity jumped as households and firms signed around EUR 300 million of lease contracts in the quarter, almost double a typical quarter, and the lease portfolio grew 9%. Other household lending rose around 7% over the year on a group-adjusted basis. Household deposits were 12% higher in December than a year earlier and increased by more than EUR 400 million in the month, which the release links to wage and bonus payments being brought forward ahead of an income tax increase. The statistical release also covers the volume and structure of assets, loans and leases, deposits, and interest rates and is presented separately from economic policy releases.