11 May 2016, updated 12 April 2018
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 16 banks operating in Estonia, including 6 domestic banks and 10 foreign-controlled banks (branches and subsidiaries). However, total assets of the domestic banks comprise only 12.67 % 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 (109.87 %).
|Rank||Name||Total Assets||Market Share||Net Income||Country of Origin|
|2||AS SEB Pank||5919.21||23.42%||67.32||Sweden|
|3||Luminor Bank AS||3579.19||14.16%||7.46||Sweden|
|4||AS LHV Pank||1726.10||6.83%||10.92||Estonia|
|5||Danske Bank A/S Eesti filiaal||1557.45||6.16%||6.05||Denmark|
|6||OP Corporate Bank plc Eesti filiaal||646.30||2.56%||2.25||Finland|
|8||Coop Pank AS||367.31||1.45%||-0.29||Estonia|
|9||Versobank AS (closed)||293.73||1.16%||0.30||Estonia|
|10||TALLINNA ÄRIPANGA AS||231.85||0.92%||2.35||Estonia|
|11||AS Citadele banka Eesti filiaal||178.38||0.71%||1.48||Latvia|
|12||Svenska Handelsbanken AB Eesti filiaal||146.76||0.58%||-0.48||Sweden|
|13||AS Inbank (new)||126.37||0.50%||7.74||Estonia|
|14||Scania Finans AB Eesti filiaal||50.02||0.20%||1.11||Sweden|
|15||Nordea Bank AB Eesti filiaal (closed)||26.36||0.10%||25.15||Sweden|
|16||Folkefinans AS Eesti filiaal||0.15||0.00%||0.19||Norway|
All the data are for 2017. Total assets and net income are provided in million EUR.
Out of 16 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.
In October 2017, DNB Bank ASA (Norway) and Nordea Bank AB (Sweden) have combined their Baltic business into a jointly owned bank, Luminor Bank. In Estonia Nordea Bank AB Estonia branch transferred all its assets and liabilities to Luminor Bank AS (formerly DNB Pank).
Among the 3 largest banks (Swedbank, SEB Bank and Luminor Bank), SEB Bank and Luminor (Nordea) have had their total assets and net income without significant changes since 2008. While the total assets of Swedbank have slightly declined over 2008-2017, 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 Luminor Bank.