Highlights
- Strong financial performance with net profit reaching EUR 32.6 million in H1 2021, which translated into 18.1% annualised return on equity. Q2 2021 net profit reached EUR 22.1 million, which translated into 24.3% annualised return on equity.
- The number of active customers reached 351 thousand clients as of 30 June 2021, 12% growth y-o-y.
- EUR 551 million issued in new financing to Baltic private, SME, corporate and leasing customers in H1 2021, 198% growth y-o-y. New financing in Q2 2021 was EUR 243 million.
- Baltic deposits continued to increase by EUR 269 million in H1 2021, or 8% growth vs. year-end 2020.
- The Bank continues to operate with adequate capital and liquidity ratios. Group’s CAR (including period’s result) was 19.4% and LCR of 187% as of 30 June 2021.
- The first phase of the agreement between Citadele and ABLV for the purchase of the majority of ABLV’s mortgage portfolio has been completed as of beginning of July, increasing Citadele’s mortgage portfolio by almost 20%. The second phase of the transaction is expected to be completed by the end of the year.
Citadele has had a strong first half of the year, being able to support the bank’s customers with record high lending as economy opened up. Number of active customers reached 351 thousand clients as of 30 June 2021, or 12% growth y-o-y. The number of active Mobile App users reached 176 thousand, a 28% increase y-o-y.
Innovations and development
In H1 2021, Citadele continued to develop services and products to meet customer expectations across multiple channels and changing market conditions. Thinking about SME customers’ convenience, Citadele launched remote account opening for businesses, allowing the clients to begin their digital journey in fast and efficient way. The Bank has introduced a new tool for SME and corporate clients - Merchant Portal. Merchants can easily monitor their customers’ behaviour in physical and e-shops, account balances in different banks, incoming & outgoing transactions in real time, as well as create and send invoices to third parties. Citadele also continued to strengthen its position in the mobile payments area - FitBit Pay and Garmin Pay were launched in June 2021.
Sharing the view that climate change is becoming a key priority for a wide range of industries, including financial institutions, the Bank has started a solar panels consumer lending pilot in Lithuania, helping the economy to access sustainable assets for a more attractive price. Citadele will continue to develop new offers supporting the green transition.
EUR 551 million issued in new financing to Baltic private, SME, corporate and leasing customers
New lending to our customers reached a record high of EUR 551 million in H1 2021, almost twice higher than H2 2020. EUR 243 million were issued in Q2 2021 and EUR 31 million invested in local corporates bonds.
The total loan book as of 30 June 2021 was EUR 2,457 million, 59% higher vs. year end 2020. Portfolio growth was impacted by acquisition of the SIA UniCredit Leasing (now SIA Citadele Leasing) at the beginning of year. Portfolio quality continued to improve and the NPL ratio stood at 3.4% as of 30 June 2021, vs. 3.9% at the end of Q1 2021.
Strong financial results
Strong financial performance with net profit reaching EUR 32.6 million in H1 2021, which translated into 18.1% return on equity. Net profit in Q2 was EUR 22.1 million with Q2 ROE of 24.3%
Citadele continues to operate with adequate capital and liquidity ratios: CAR (including period’s result) of 19.4% and LCR of 187% as of 30 June 2021.
Customer deposits reached EUR 3,798 million as of 30 June 2021, 2% increase compared to Q1 2021, and 3% increase compared to the end of 2020.
Citadele acquires mortgage portfolio from ABLV Bank, AS in liquidation
The first phase of the agreement between Citadele and ABLV for the purchase of the majority of ABLV’s mortgage portfolio has been completed as of 2 July 2021. Citadele’s mortgage portfolio has now been increased by almost 20%. The acquisition will give additional positive financial impact from Q3 2021 onwards. The second phase of the transaction is expected to be finalised by the end of the year and will involve additional mortgage agreements in the amount of around EUR 50 million.
Management Board strengthened by new Chief Risk Officer Jūlija Lebedinska-Ļitvinova
As previously announced, Jūlija Lebedinska-Ļitvinova has been appointed as Chief Risk Officer for Citadele banka and elected as a member of the management board. On 16 June 2021, the appointment was approved by the regulator.