In January 2026, Latvia's monetary financial institutions (MFIs), primarily banks, reported a profit of €29.5 million, which marks an 18.5% decline compared to January 2025. This figure highlights ongoing challenges within the banking sector, particularly in adapting to economic conditions that have led to reduced profitability compared to the previous year. The data was released by the Bank of Latvia and reflects broader trends in the country's financial landscape.

As of January 31, 2026, the total assets of these financial institutions amounted to €31.89 billion, which is a significant increase of 7.3% or €2.169 billion since the end of January 2025, when assets totaled €29.721 billion. This growth in assets illustrates the banks' efforts to maintain stability and possibly indicate a rebound in lending activities despite profit declines. It also raises questions about asset management strategies in the context of fluctuating market conditions relevant to Latvia's economy.

Furthermore, the outstanding loan balance to residents of Latvia reached €15.695 billion at the end of January, marking an 11.9% growth since the previous year. Specifically, loans issued in euros amounted to €15.633 billion, representing a 12.2% year-on-year increase. In contrast, the volume of loans in foreign currency decreased significantly, by 33.6%, indicating a shift in borrowing preferences among consumers. This information underscores a dynamic financial environment where institutions are adapting to changing borrowing behaviors and economic conditions across the country.