Banks, Financial Services, Latvia
International Internet Magazine. Baltic States news & analytics
Friday, 26.04.2024, 04:42
Swedbank earned EUR 109 mln in profit in Latvia in 2018
Net interest income rose 2%. The increase was mainly due to
higher lending volumes. Lending grew 5% driven by strong growth in both
corporate and household lending. Deposits increased 11%.
Net commission income decreased 11% impacted by lower asset
management income. At the same time, higher customer activity strengthened
payments and cards commission income. Other income increased 21% due to higher
income from the insurance business, the bank informs.
Total expenses rose 4%. The increase is due to higher staff
costs and regulatory expenses. Credit recoveries according to IFRS 9 amounted
to EUR 2 mln.
''While for the financial sector 2018 has been a turbulent
year, for Latvian society and economy it has been mostly positive. Latvia has
begun its second centenary with the historically best economic situation,
strong exports, rising savings and an average salary of over EUR 1,000.
Economic activity has contributed to the willingness of households and
businesses to invest – and that lead to 3,500 families getting a better home
with Swedbank’s financing, while 2,600 companies have expanded their
operations. As a result we have evidenced the strongest loan portfolio growth
over the last 10 years. 2018 also marked a milestone in our society's ability
to use mobile technology - now every second Swedbank client uses a mobile phone
to find out its account balance or make payments while Smart-ID replaces code
cards at a fast pace,” said Reinis
Rubenis, Head of Swedbank Latvia.
After launching a new version of the mobile app in the third
quarter, Swedbank joined the instant
payment system between banks. The mobile app had more than 355,000 active users
by the end of the year, while the number of Smart-ID users has doubled during
2018 and reached 389,000 users.
Swedbank also
continued to expand its services available through the Internet Bank last year.
And to encourage increased savings, Swedbank in Latvia launched an investment
savings account that makes it easier for individual investors to manage taxes
related to the securities they own.
Swedbank again
ranked as an industry leader in the “Most Loved Brands” survey and is the most
popular of the companies with a physical presence in Latvia. Swedbank has also
been named one of the companies in Latvia with the smallest gender pay gaps.
As part of its Open Banking efforts, Swedbank also continues
to facilitate partnerships with fintech community. In October 2018, the second
fintech accelerator program was launched together with Startup Wise Guys.
Compared with the first program, the number of applications has doubled, to
around 200. Altogether, nine teams from nine countries have been selected for
the three-month program, which gives participants an opportunity to develop
their business ideas and co-create together with Swedbank mentors.