Banks in Estonia

11 May 2016, updated 10 March 2019

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. Although there are no pure direct banks in Estonia, several banks offer their products via the Internet.

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 5 domestic banks and 10 foreign-controlled banks (branches and subsidiaries). However, total assets of the domestic banks comprise only 11.92 % 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 (100.45 %). During 2013-2018 2 has been closed down, and 1 bank was opened up during the period.

RankNameTotal AssetsMarket ShareNet IncomeCountry of Origin
1Swedbank AS10577.24 40.50%183.20  Sweden
2AS SEB Pank6378.82 24.42%85.79  Sweden
3Luminor Bank AS3854.76 14.76%41.87  Sweden
4AS LHV Pank1635.70 6.26%15.54  Estonia
5Danske Bank A/S Eesti filiaal1195.22 4.58%5.00  Denmark
6OP Corporate Bank plc Eesti filiaal578.77 2.22%1.78  Finland
7Bigbank AS526.84 2.02%17.70  Estonia
8Coop Pank AS438.70 1.68%0.18  Estonia
9AS Inbank (new)297.56 1.14%6.22  Estonia
10AS TBB pank215.02 0.82%1.68  Estonia
11AS Citadele banka Eesti filiaal200.09 0.77%5.10  Latvia
12Svenska Handelsbanken AB Eesti filiaal104.25 0.40%-0.02  Sweden
13Scania Finans AB Eesti filiaal58.07 0.22%0.73  Sweden
14TF Bank AB (publ.) Eesti filiaal (new)54.92 0.21%4.11  Sweden
15Folkefinans AS Eesti filiaal0.33 0.00%0.07  Norway
 

All the data are for 2018. Total assets and net income are provided in million EUR.

Major Banks in Estonia

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.

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).

Market Shares of Major Banks in Estonia

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.

Total Assets of Major Banks in Estonia Net Income of Major Banks in Estonia Return on Assets of Major Banks in Estonia

Banks Offering Products via the Internet

AS LHV Pank

LHV Group is an Estonian financial company founded in 1999 as an investment firm offering brokerage servcies and portfolio management services. In 2009 the group established LHV Pank. LHV Pank provides retail and corporate banking products and services to private individuals and companies. LHV Pank also offers pension funds and online brokerage services.

AS LHV Pank is the 4th largest bank in Estonia in terms of total assets. In 2018 its total assets were 1 635,70 mln EUR, providing the bank with the market share of 6.26%. In 2018 the bank's net income was 15,54 mln EUR.

Services
retail banking
private banking
corporate banking
leasing
Area Served
Estonia
Germany
Products

Coop Pank AS

Coop Pank was established in Autumn 2017 as a cooperative bank, owned by Estonian consumer cooperatives as well as their clients (owners). Coop Pank is focused on providing simple and straight-forward banking products for daily banking and financing particularly to private persons, as well as small and medium-sized companies.

Coop Pank AS is the 8th largest bank in Estonia in terms of total assets. In 2018 its total assets were 438,70 mln EUR, providing the bank with the market share of 1.68%. In 2018 the bank's net income was 181 000,00 EUR.

Services
retail banking
corporate banking
Clients
natural persons
SMEs
companies
Area Served
Estonia
Germany
Products

AS Inbank

Founded in 2015, Inbank is a new innovative bank offering a range of retail banking products and services: savings and time deposit accounts, consumer loans and installment loans.

AS Inbank is the 9th largest bank in Estonia in terms of total assets. In 2018 its total assets were 297,56 mln EUR, providing the bank with the market share of 1.14%. In 2018 the bank's net income was 6,22 mln EUR.

Services
retail banking
Area Served
Estonia
Germany
Products

New Banks

April 2015: AS Inbank

Founded in 2015, Inbank is a new innovative bank offering a range of retail banking products and services: savings and time deposit accounts, consumer loans and installment loans.

AS Inbank is the 9th largest bank in Estonia in terms of total assets. In 2018 its total assets were 297,56 mln EUR, providing the bank with the market share of 1.14%. In 2018 the bank's net income was 6,22 mln EUR.

August 2017: TF Bank AB (publ.) Eesti filiaal

Established in 1987, TF Bank is a Swedish credit institution offering sales financing to e-commerce business clients, savings accounts to individuals and personal loans to individuals. TF Bank AB (publ.) Eesti filiaal operates as a branch of TF Bank AB (Sweden).

TF Bank AB (publ.) Eesti filiaal is the 14th largest bank in Estonia in terms of total assets. In 2018 its total assets were 54,92 mln EUR, providing the bank with the market share of 0.21%. In 2018 the bank's net income was 4,11 mln EUR.

April 2019: Holm Bank AS

Holm Bank AS is a family-owned Estonian bank operating more 20 years as a financial company (Liisi AS), specialized in providing consumer credit solutions to private individuals in Estonia. Holm Bank AS is focused on providing hire purchase solutions, small loans and credit cards as well as deposits and financing solutions to small businesses.

Closed Banks

July 2013: AS UniCredit Bank Eesti filiaal

In 2013 UniCredit Bank decided to streamline its operations in the Baltic region, centralizing all banking operations in UniCredit Bank (Latvia). Since May 17, 2013 UniCredit Bank stopped all licensed financial services in Estonia.

In 2012 total assets of AS UniCredit Bank Eesti filiaal were 263,68 mln EUR. In 2012 the bank's net income was 2,58 mln EUR.

March 2018: Versobank AS

AS Versobank was founded in October 1999. Versobank offers retail banking products and services to natural persons and legal entities residents of Estonia. Debit and credit cards are also offered to non-residents. On March 29, 2018 the European Central Bank (ECB) has revoked the authorisation of AS Versobank to operate as a credit institution following the request of Financial Inspection of Estonia due to its failure to eliminate severe breaches of legal requirements to prevent money laundering and combating terrorism financing.

Versobank AS was the 9th largest bank in Estonia in terms of total assets. In 2017 its total assets were 293,73 mln EUR, providing the bank with the market share of 1.16%. In 2017 the bank's net income was 298 000,00 EUR.

See Also