In the first six months of the year the net loan portfolio of Citadele bankas in Lithuania continued to grow, reaching EUR 298 million, which was a growth of 12% compared to June 2016. The amount of new loans granted by the bank in the first half of 2017 was EUR 71.8 million, which was a 5% increase compared to the same period in 2016.
For private individuals the amount of loans granted by Citadele bankas in the first half of 2017 was EUR 5.6 million, which was a 60% increase compared to the same period in 2016. For MSMEs and Corporates the amount of newly granted loans in the first half of 2017 was EUR 66.2 million which was a 2% increase compared to the same period in 2016.
“Corporate and private funding ensuring growth is a very important part of the strategy in all Baltic countries of Citadele group. The increasing volumes of loans to corporate and private clients shows the ability of Citadele bankas to introduce a new approach towards lending and to adapt to the needs of customers under highly competitive market conditions. In the first half of the year, we demonstrated outstanding results not only in issuing traditional loans to companies but also loans granted to small and medium-sized enterprises with INVEGA guarantees grew significantly. Compared to the same period last year, we issued 44.3% more of such loans during the first half of the year,” – said Dace Priede, Chairperson of the Board, Head of Administration of Citadele bankas in Lithuania.
At the end of June 2017 assets of Citadele bankas in Lithuania totalled EUR 492 million, which was 13% more than at the same time last year.
Client deposits in Lithuania reached EUR 406 million, which was an increase of 17% compared to June 2016.
Net profit of Citadele bankas in Lithuania during first half of 2017 was EUR 0.98 million - decreased by 26% compared to the first half of 2016. The lower profitability of the bank was determined by the decrease in the value of loans granted by the bank.
The Bank’s net commission and interest income grew by 29% to EUR 5.9 million.
Citadele Group results
In the first six months of the year, Citadele Group continued to demonstrate strong financial performance by growing its customer base across core business segments, ensuring a healthy increase in its capital base, as well as showing improvements in the Group’s asset quality metrics.
The Group’s net profit for the first six months of the year was EUR 15.0 million compared to EUR 25.4 million during the same period prior year.
For private individuals, the amount of new loans granted by the Group’s banking entities in the first half of 2017 was EUR 68 million, a 7% increase compared to the same period in 2016. For MSMEs and Corporates the amount of new loans granted in the first half of 2017 was EUR 185 million, a 37% increase compared to the same period in 2016.
Client deposits in the Group reached EUR 2,874 million, showing an increase of 5% in comparison to June 2016.
In the first half of 2017, Citadele Bank signed an agreement for a long-term partnership with global payments company Visa. The first joint product developed by Visa and Citadele is a new brand of credit card in Baltic countries with three card types: X Card, X Platinum and X Infinite for different client segments.
On April 2017, Moody’s Investors Service (Moody’s) increased Citadele’s long-term credit rating by two notches (from B1 to Ba2), and maintained positive outlook. This upgrade reflected the Group’s implemented strategy to develop and grow its business across the Baltic States, as well as the Group’s improved capital levels and asset quality. Moody’s also positively valued the Group’s rapid development over the last year.
About Citadele Group
Citadele Group is managed from Latvia, while its subsidiaries and branches operate in Latvia, Lithuania, Estonia and Switzerland. Citadele Bank handles card payments, offers loan granting, investment, leasing and asset management services as well as a variety of exceptional and unique products. The vision of Citadele Group is to become the best provider of financial services to private customers as well as small and medium businesses in the Baltic States.