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Lithuanian Bank Industry Posts 2011 Profit on Lower Provisions

The Lithuanian banking industry posted a profit last year as provisions declined and the economy grew at the second-fastest pace in the European Union, the central bank said.

Banks in the Baltic nation had a combined profit of 1.1 billion litai ($420 million), compared with a loss of 271.9 million litai in 2010, the Lietuvos Bankas, based in the capital, Vilnius, said today on its website.

After almost two years of losses, lenders began to post profits in the second half of 2010 as Lithuania’s economy rebounded from a recession. The economy expanded 5.8 percent last year.

To contact the reporter on this story: Milda Seputyte in Vilnius at mseputyte@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net

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