Banks in Estonia

, updated 28 April 2017

Located in Northern Europe, Estonia is one of the Baltic States. Estonia is a developed country with high-income economy. Main industries of Estonian economy are engineering, electronics, wood and wood products, textiles as well as information technology, and telecommunications. Estonian banking and financial system has been developing rapidly since 1991 when Estonia declared its independence from the Soviet Union. Estonian banking sector is relatively small, highly concentrated, with high share of foreign capital. Large banks in Estonia operate as universal banks, covering a wide range of market segments, while smaller banks concentrate on a specific range of services.

In 1992 there were 42 banks in Estonia. During the following years the number of banks was declining mainly due to mergers and acquisitions. Now there are 15 banks operating in Estonia, including 6 domestic banks and 9 foreign-controlled banks (branches and subsidiaries). However, total assets of the domestic banks comprise only 8.68 % of consolidated banking assets. The majority of foreign-controlled banks are owned by Nordic banking groups, which makes Estonian banking sector dependent on the economies and banking sectors of the Nordic Countries (Denmark, Finland, Norway and to a greater extent Sweden). The ratio of consolidated banking assets to gross domestic product for Estonia shows that its banking sector is roughly the same size as its national economy (114.66 %).

RankNameTotal AssetsMarket ShareNet IncomeCountry of Origin
1 Swedbank AS9716.30 40.54%212.23  Sweden
2 AS SEB Pank5581.66 23.29%70.83  Sweden
3 Nordea Bank AB Eesti filiaal (closed)3627.55 15.14%24.41  Sweden
4 Danske Bank A/S Eesti filiaal1698.70 7.09%16.21  Denmark
5 AS LHV Pank895.22 3.74%9.96  Estonia
6 Luminor Bank AS831.47 3.47%5.83  Norway
7 Bigbank AS392.32 1.64%11.45  Estonia
8 Coop Pank AS290.08 1.21%2.51  Estonia
9 AS Citadele banka Eesti filiaal227.71 0.95%2.61  Latvia
10 TALLINNA ÄRIPANGA AS216.67 0.90%1.27  Estonia
11 Versobank AS200.12 0.84%1.35  Estonia
12 Svenska Handelsbanken AB Eesti filiaal159.99 0.67%-1.38  Sweden
13 AS Inbank (new)84.59 0.35%2.50  Estonia
14 Scania Finans AB Eesti filiaal41.67 0.17%0.98  Sweden
15 Folkefinans AS Eesti filiaal0.70 0.00%-0.42  Norway

All the data are for 2016. Total assets and net income are provided in million EUR.

Out of 15 banks operating in Estonia, there are 3 largest banks comprising together about 75% of consolidated banking assets, each of the banks has market share of more than 15% of total banking assets.

Market Shares of Major Banks in Estonia

Among the 3 largest banks (Swedbank, SEB Bank and Nordea Bank), SEB Bank and Nordea have had their total assets and net income without significant changes since 2008. While the total assets of Swedbank have slightly declined over 2008-2016, its net income has suffered significant changes: it varied remarkably during the period and was even negative in 2009. Nevertheless, since 2011 Swedbank has had the highest return on assets compared to SEB Bank and Nordea Bank.

Total Assets of Major Banks in EstoniaNet Income of Major Banks in EstoniaReturn on Assets of Major Banks in Estonia

See Also

Economy and Banking Sector of Estonia

List of Banks in Estonia