Citadele continues to support the Baltic business community with financing for growth and expansion – new financing to support private, SME and corporate customers in the Baltic region has grown to EUR 621 million in H1 2024. Citadele's total loan book in H1 2024 reached EUR 3 049 million, marking a EUR 187 million increase compared to 31 December 2023.
“Even though financial markets experience new challenges, Citadele remains strong and uses these challenges as an opportunity to add on experience to already large portfolio of expertise. The financial results of H1 2024 prove Citadele’s initial commitment to private individuals and businesses in Baltic states – to be the best financial partner for everyday banking and life's special occasions. Issued financing has significantly grown both for private individuals and businesses, with client’s financial health remaining steady. Also, we are on target for aiding the shift to green economy by increasing both issued financing and accumulating funds in Green Savings account to finance green projects,” says Rūta Ežerskienė, Chair of the Management Board and CEO of Citadele Bank.
Issued financing has significantly grown
Citadele's ambition for growth has materialized in the first half of the year, as evidenced by the growing loan book. Citadele's total loan book as of 30 June 2024, stood at EUR 3 049 million, marking a 7% or EUR 187 million increase compared to 31 December 2023.
In H1 2024, new financing to private, SME, and corporate customers reached EUR 621.4 million, representing a 45% growth compared to the same period a year ago. In Q2 2024, new financing amounted to EUR 365.6 million, a 43% increase quarter-over-quarter, driven by improving macroeconomic conditions and interest rate expectations.
Citadele's deposit base totaled EUR 3 694 million as of 30 June 2024, reflecting a 4% decrease compared to year-end 2023, mainly due to deposit pricing optimisation. This reduction has helped stabilize the cost of funds while maintaining prudent LCR levels.
In H1 2024, Citadele generated an operating income of EUR 116.1 million, reflecting a 2% growth compared to the same period a year ago, with a return on equity of 19.8%. In Q2 2024, operating income from continuing operations reached EUR 58.3 million, with a return on equity of 19.2%.
In Q2 2024, EUR 50.6 million was paid out in dividends for the year 2023, amounting to EUR 0.32 per share. This payout aligns with Citadele’s 50% dividend policy and reflects the bank's sustained growth, strong capital position, and stable balance sheet.
Economic and geopolitical uncertainty has led to a slower pace in evaluating strategic options. Nonetheless, despite the volatility, the bank persists in assessing various strategic options, including the possibility of an IPO.
Growing client base
Citadele continues to attract new clients, and we are proud of our strong customer base who trust us with their financial service needs. The active customer base reached 386 thousand, representing an increase of 2% year-over-year. Active digital channel users reached 88.9% of total customers, with the majority preferring the mobile app, while the rest use i-Bank. The number of active mobile app users as of 30 June 2024 reached 258 thousand, marking an 8% year-over-year growth.
Increased customer experience resulted in record high Mobile app rating
Citadele continues to enlarge Mobile app functionality, bringing more products and enhancing user experience. Mobile app improvements resulted in all time high Apple Store and Google Play Mobile app rating of 4.8.
Insurance offering further expanded with the launch of Bill protection insurance, bringing 6th insurance product to Citadele customers available for purchase with just a few clicks.
Klix, Citadele’s e-commerce checkout solution, reached 1 542 merchants, with its registered user base surpassing 348 thousand and active users reaching 66 thousand as of 30 June 2024. During H1 2024, 8.5 million transactions were processed, with a total value of EUR 304 million. Klix "Buy Now, Pay Later" issuance reached EUR 18.4 million during H1 2024, compared to EUR 11 million for the full year 2023. Several top-tier retailers, including Latvijas Gaze and Rigas Satiksme, went live with Klix during Q2 2024.
Sustainability
In line with our commitment to supporting our customers in the transition to a low-carbon economy and recognizing the growing importance of sustainability initiatives for our clients, Citadele offers several products to aid the shift to a green economy.
As of 30 June 2024, the Green Savings Account, which uses deposited funds to finance projects aimed at reducing carbon emissions, reached EUR 62 million.
In the first half of 2024, new lending to businesses and the private sector to facilitate the transition to a green economy amounted to EUR 41 million. Demand for green mortgages, designed to finance homes meeting the highest energy efficiency standards, doubled in Q2 2024 compared to Q1 2024, reaching EUR 9 million. In the first half of 2024, EUR 13 million was issued in green mortgage loans. Increased demand was also seen in green business loans and electric vehicle financing, which increased by 27% and 36% quarter over quarter, respectively.
Key figures – Baltic operations
| EUR millions |
6m 2024 |
6m 2023 |
| Operating income |
116.1 |
113.7 |
| Operating expense |
(56.6) |
(48.9) |
| Net credit losses and impairments |
7.0 |
3.7 |
| Net profit from continuous operations (after tax) |
50.9 |
64.5 |
| Return on average equity (ROE) |
19.8% |
29.2% |
| Cost to income ratio (CIR) |
48.8% |
43.0% |
| Cost of risk ratio (COR) |
(0.5%) |
(0.2%) |
| |
30 Jun 2024 |
31 Dec 2023 |
| Loans |
3 049 |
2 862 |
| Deposits |
3 694 |
3 830 |
| Loan to deposit ratio |
83% |
75% |
| Common equity Tier 1 (CET1) capital ratio* |
19.7% |
19.5% |
| Total capital adequacy ratio (CAR)* |
22.7% |
21.9% |
| Non-performing loan (NPL) ratio |
2.2% |
2.1% |
| Liquidity coverage ratio (LCR) |
170% |
206% |
*including 50% of the net result for the period, i.e. decreased by the expected dividends