The first place in TOP 101 rating for financial service industry is an extraordinary success, considering how small a segment of economics is actually formed by financial services, the industry added value is only ~4.5% of the total value. The trade and manufacturing segment takes up more than ten percent. Albeit, the study subdivides the industries into three sections, but, even combined, the total value of the companies is slightly behind financial service providers.

Historically, this is not the best time for the industry. In 2007 it was miles ahead of others, but in two years the total value of the companies decreased almost sixfold. This shows how sensitive the financial world is to the fluctuations of the economic cycle. Since 2009 the value has increased again. This is due to two factors. The banks, which mainly provide services to the residents and companies in Latvia, have started to earn money again. Return on assets, however, is nothing special compared to overall results; nevertheless, these companies have a very large capital, which is determined by the specific nature of the industry. The service export-oriented financial companies have been operating very successfully.

It is safe to say that in the next few years the internal market-oriented part of the industry will see rapid development. There is no doubt the decrease of the loan portfolio in Latvia will soon be over. The expanding economics and change of consumer habits – more frequent use of payment cards – for several years have been delivering increased income from payment services. Also, the volume of new loans is growing, but, for the time being, it cannot fully compensate the amortization of the previously granted loans and the write-off effect. A negative factor for several more years will be the extremely low base interest rate, which limits the possibilities of interest income.

It is possible that service exporters will be able to keep up the existing tempo, but that is something difficult to predict. The export of Latvian financial services reached the previous peak in 2008 when it was 610 million euros, an almost eightfold increase since 2000. The lowest point (in 2010) was only slightly more than half of this level: 332 million, but a year later a steady growth was seen. This year the export is likely to exceed 500 million euros or approx. 2% of the GDP. Thus, the financial industry not only provides important services to the residents and companies in the country but also makes money abroad. Furthermore, the growing competition in this industry is a factor that advances also the export of business and IT services, as the necessary competencies are mutually complementary. A cluster of intellectual services based in Riga obtains clearer outlines and becomes an important guide for the development of our city.