2026-10-02
Key highlights from the Lithuanian banking sector in the second quarter of this year:
• individuals who withdrew funds from the second pension pillar transferred a large share of these funds to current accounts;
• the business loan portfolio grew significantly;
• the Revolut Group continues to make the largest contribution to profit growth in the banking sector.
“As we expected, one of the main trends in the second quarter was the growth of Lithuanian household deposits due to withdrawals from the second pension pillar. However, we can see that a significant share of the population are leaving their money in current accounts that are non-interest-bearing accounts. We encourage the population to consider various saving alternatives and choose the option that best suits their needs and plans. For instance, fixed-term deposits and defence bonds are among the simplest ways to earn a return,” says Julita Varanauskienė, Deputy Chair of the Board of Lietuvos bankas.
Most deposits are held in current accounts
At the end of the first half of the year, banks operating in Lithuania held a total of nearly €90 billion in deposits. Of this amount, deposits of Lithuanian residents totalled €28.7 billion and those of non-residents stood at €43 billion. During the second quarter, total deposits increased by €5.1 billion (6.0%), of which non-resident deposits accounted for €4.4 billion (11.3%).
Deposits held by Lithuanian residents rose by €1.9 billion (7%) in the second quarter. That is one of the highest quarterly growth rates. Meanwhile, deposits held by other financial institutions in banks fell by €0.7 billion (nearly 36%). Both of these factors were largely driven by the partial withdrawal from the second pension pillar.
At the end of the first half of the year, residents held most of their funds in current accounts. Although they are non-interest-bearing accounts, current deposits increased by €1.8 billion over the quarter and stood at €20 billion at the end of June. Household fixed-term and savings deposits increased by €157 million to nearly €9 billion. The average interest rates paid on these deposits rose from 1.63% to 1.78% during the second quarter. At present, annual interest rates of banks are even higher, with rates ranging from 1.75% to 3.20% offered on the most popular one-year deposits.
The robust growth of the Revolut Group continued to be the main driver behind the increase in non-resident deposits. Non-resident deposits in various EU countries account for 98.4% of the Revolut Group deposits. At other banks, non-resident deposits account for around 6–7% of total customer deposits. At less significant banks, a large share consists of funds of foreign residents (primarily from Germany) attracted through deposit platforms as well as deposits of electronic money institutions.
Loan portfolio: A race between housing loans and corporate loans
The banks’ loan portfolio stood at €42 billion at the end of the first half of the year. It increased by €1.7 billion (4.2%) over the quarter and by €7 billion (20%) over the year.
The household loan portfolio grew by €0.9 billion (4.2%) in the second quarter of this year to €22.1 billion. It was traditionally dominated by housing loans totalling €15.5 billion. They increased by €0.5 billion (3.1%) quarter on quarter.
The consumer loan portfolio increased by €0.3 billion (7.0%) to €4.7 billion. However, this growth was driven by banking operations in other EU countries, while the share of consumer loans granted to Lithuanian residents remained largely unchanged.
The corporate loan portfolio increased by €0.7 billion (4.4%) over the quarter to €15.5 billion, growing much stronger than in the first quarter (€0.2 billion). Enterprises operating in real estate (28.6%), wholesale and retail trade (15.6%), and manufacturing (11.2%) account for the largest share of financing in the non-financial corporation sector.
Quality indicators of bank loans were among the best in the EU and did not exceed the risk-material level. The share of non-performing loans fell during the quarter, while the level of past-due loans remained low.
Profits rose by a tenth
Lithuania currently has 19 banks, 6 of which are branches of foreign banks. The sector’s total assets amounted to €107 billion. They increased by €6.1 billion (6.1%) over the quarter and by €25 billion (31%) over the year. During the quarter, the market share of Revolut Holdings Europe, UAB rose by 2.5 percentage points to 42.9%. The share of Swedbank, AB accounted for 21.2% of the market; followed by SEB bankas, AB with 15.3% and Artea bankas, AB with 5.6%.
In the first half of the year, the Lithuanian banking sector’s profit amounted to €591 million, which is 10% more than during the same period in 2025 (€537 million). 14 banks and branches of foreign banks operated profitably, while 5 operated at a loss. The latter collectively incurred a loss of €4.2 million.
The Revolut Group’s active operations contributed most significantly to profit growth: in the first half of the year, it earned €146.7 million, or €43.7 million (42.5%) more year on year. The combined profit of the three largest banks (excluding the Revolut Group) increased by €21 million (6%) compared to the first half of 2025, reaching €364 million. The combined profit of the nine less significant banks decreased by €2.5 million (33%) to nearly €5 million, while the combined profit of the six foreign bank branches fell by €7.7 million (9.3%) to €37 million.
Due to the strong growth of assets, the profitability ratios of banks continued to decline: the return on equity stood at 16.38% at the end of the second quarter (down from 18.78% a year earlier), while the return on assets was 1.17% (down from 1.38% a year earlier). The profitability and efficiency indicators of less significant banks remain weaker than those of significant banks. The banking sector remains well capitalised and complied with the prudential requirements by a large margin.
In the second quarter of 2026, banks reported 10 major incidents relating to information and communication technology but none of them involved cybercrime. Lietuvos bankas urges banks to focus more on this area, particularly in view of the risks posed by the use of new AI tools in cyberattacks.
Information on each bank’s key performance indicators and compliance with prudential requirements is published quarterly on the website of Lietuvos bankas.
Banking activity reviews are published here.