The Bank of Lithuania published its review of the Lithuanian banking sector for the first half of 2025, reporting continued growth in lending and deposits alongside strong profitability and capitalisation, while noting that profitability ratios are declining due to rapid asset growth and lower interest rates. It also highlighted that sector expansion was largely driven by one market participant’s activity, with the Bank of Lithuania and the European Central Bank monitoring the sustainability of that growth, and pointed to higher credit risk-taking among less significant banks where further capital increases are particularly important for some institutions. Sector profit totalled EUR 537 million in the first half of 2025, up EUR 16.7 million year on year, with Revolut’s expansion across European Union countries contributing to a 2.3-fold increase in its profits to nearly EUR 103 million; 17 banks and foreign bank branches were profitable and two made combined losses of EUR 2.3 million. Profitability ratios eased, with return on assets at 1.38% and return on equity at 18.78% at end-H1, while the cost-to-income ratio stood at 44.29%. Deposits reached nearly EUR 68 billion (almost 30% higher year on year), including nearly EUR 25 billion from Lithuanian residents and EUR 27 billion from non-residents, with non-resident deposits up EUR 3.5 billion in Q2; the loan portfolio rose by almost EUR 2 billion (6%) in Q2 to EUR 35 billion, while the non-performing loan ratio declined to 0.82%. Capital adequacy fell to 22.9% in Q2 (from 24.7%) and the liquidity coverage ratio increased to 468%. The banking sector comprised 19 banks, including six foreign bank branches, with Revolut Holdings Europe UAB holding 33.5% market share by assets at the highest level of consolidation; Swedbank, AB held 24.7% and AB Artea bankas 6.2%. The four largest banks are directly supervised by the European Central Bank.

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