Baltic, Banks, Financial Services, Loan

SEB Group in Latvia earned EUR 23.5 million before provisions, while according to risk management standards, new provisions were amassed in the amount of EUR 8.5 million. Compared to the respective period in 2013, the amount of provisions this year has reduced more than two times. Thus, SEB Group concluded the first half of the year with a profit of EUR 14.1 million after taxes and provisions.

In the first and second quarter, SEB banka issued more than 5,400 loans in the amount of EUR 286.5 million, while the total amount of the bank's loan portfolio has reduced by 8% since the beginning of the year. The amount of new loans in the first six months of the year was 23% smaller than in the respective period in 2013. 88% of new loans were issued to enterprises. The bank also registered a gradual increase of interest in real-estate – during the first six months of the year, SEB banka issued almost 700 mortgages in the amount of EUR 21 million.

The total amount of deposits in SEB banka at the end of this past June reached EUR 2.12 billion.

The amount of capital and reserves was EUR 449.4 million at the end of June, and assets – EUR 3.5 billion.

Based on preliminary data, unaudited net profit earned by AB SEB Bankas over the first half of 2014 was LTL 148.4 million (EUR 43.0 million). AB SEB Bankas Group earned LTL 148.5 million (EUR 43 million) in unaudited net profit, writes LETA/ELTA.

In the first half of 2013 AB SEB Bankas earned LTL 101.8 million (EUR 29.5 million) and AB SEB Bankas Group earned 97.5 million (28.2 million) in unaudited net profit.

After AB SEB Lizingas was merged with AB SEB Bankas in November 2013, AB SEB Bankas 2013 first half results are presented including results of AB SEB Lizingas.

According to Raimondas Kvedaras, President of SEB Bankas, in the first six months of 2014 Lithuania's economic growth has slightly slowed down, most of all because exports subsided. Nonetheless, stronger domestic market and more active investment determining greater demand of loans and other financial services should have a positive effect for the banking system. Expectations by people and entities remain favourable because of the recovering economy in the euro area and the planned euro introduction in Lithuania in 2015. On the other hand, the country's economic growth prospects will depend on the situation in Eastern markets, where companies face greater risks due to the Russia-Ukraine conflict.

As of 30 June 2014, AB SEB Bankas Group equity was LTL 2.6 billion (EUR 753 million), i.e. increased by 6% year-on-year from LTL 2.5 billion (EUR 724 million).

As of 30 June 2014, AB SEB Bankas Group assets were LTL 23.7 billion (EUR 6.86 billion), i.e. increased by 4% year-on-year from LTL 22.8 billion (EUR 6.60 billion).

AB SEB Bankas deposit portfolio grew by 8% since 30 June 2013, it increased from LTL 12.2 billion (EUR 3.53 billion) to LTL 13.3 billion (EUR 3.85 billion) by 30 June 2014.

As of 30 June 2014, net value of AB SEB Bankas Group loans and leasing portfolio was LTL 16.6 billion (EUR 4.80 billion), i.e. decreased by 2% year-on-year from LTL 16.9 billion (EUR 4.89 billion).

In the first half of 2014 the bank issued new loans for LTL 2.66 billion (EUR 770 million), i.e. by 3% more year-on-year.

AB SEB Bankas Group income in the first half of 2014 was LTL 294 million (EUR 85.1 million), i.e. an increase by 6% year-on-year from LTL 278 million (EUR 80.5 million).

SEB’s Eesti unit ended the second quarter of 2014 with a 18.4 million euros profit, which is in the same range as the 18.7 million euros at the same time last year, LETA/Public Broadcasting reports.

The profit of the first half of the year totalled 39.4 million euros (previous year: 38.7 million euros).

SEB Eesti operating income in the second quarter of this year amounted to 33.6 million euros (32.4 million euros in the second quarter of 2013) and operating expenses to 15.1 million euros (14.8 million euros).

The bank's profit was 39.4 million euros in the first half of the year (previous year: 38.7 million euros).

SEB Bank board chairman Riho Unt said that it can be felt that a strong and favourable willingness of banks to finance inhibits the emergence of alternative funding sources, such as the bond market in Estonia. "At the same time, big companies and also bigger public sector borrowers could issue more bonds instead of borrowing from banks," he said.