Lithuanian banking sector sees profit growth amid uneven household savings

The Lithuanian banking sector has seen significant activity, with total bank profits rising to 591 million euros this year. Revolut Group led this growth, earning 146.7 million euros in the first half, a 42.5% increase. While the three largest banks saw profits grow by 6% to 364 million euros, smaller banks and foreign branches experienced declines.

Total deposits in Lithuanian banks reached nearly 90 billion euros by the end of June, including 28.7 billion euros from residents. Notably, resident deposits grew by 7% in the second quarter, partly due to withdrawals from the second pension accumulation tier. However, many residents are keeping these funds in current accounts with near-zero interest rates, which increased by 1.8 billion euros to reach 20 billion euros.

Despite the high volume of liquid assets—with 22.5 billion euros held in easily accessible accounts—financial security remains unevenly distributed. Eurostat data indicates that 41.1% of Lithuanian households cannot cover unexpected expenses, ranking Lithuania fourth from the bottom in the EU for this metric. This suggests a disparity where some individuals hold excessive reserves while others lack sufficient savings to manage financial shocks.