Banks, Financial Services, Good for Business, Latvia, Loan, Markets and Companies
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Thursday, 28.03.2024, 21:34
AS Citadele banka has given 155 mln Euro in loans to businesses in 2016
Over the course of 2016, the amount of customer deposits
also grew by 13%; at the end of the year, the total deposit amount in Citadele
Group banks reached EUR 2.92 bln.
Citadele Chairman of the Board Guntis Beļavskis:
“In 2016 Citadele continued
to implement its strategy, ensuring our position as the friendliest local bank
for customers. In the middle of last year, Citadele received the Euromoney award for
Central and Eastern Europe’s Best Bank Transformation and the recognition that
the bank is in a good position to serve Latvia’s economic recovery. However,
the highest recognition comes from seeing how many more customers are using
Citadele’s internet banking system, mobile app or payment cards for everyday
purchases; when they start using the bank for big milestone projects in their
lives; or when they choose
Citadele to support the development of their small business or farmstead. We
receive this highest acknowledgement more and more often: the number of
customers who use Citadele’s services is growing both among businesses and
private individuals. It is growing in Latvia, Lithuania and Estonia.”
In 2016 the Citadele Group developed a new
mobile app allowing bank services to be accessed without code cards or code
calculators, using the safe MobileSCAN authorisation tool which is built into
the app. Over the course of the year, the number of the bank’s active clients
who use the bank for everyday purchases grew by over 18%, spending on average at
least EUR 200 on purchases with their card. Citadele developed its micro loans
for small and medium businesses and farmers, issuing loans up to EUR 20,000
without collateral. In consumer loans, Citadele introduced a new approach by
offering the opportunity for people to assess their creditworthiness online - a
personalized amount and interest rate. At the end of 2016, Citadele’s
subordinated bonds were listed in the regulated market for the first time;
Citadele attracted EUR 40 mln in new funding from the issuance of these
subordinated bonds, which was invested in the bank’s subordinated capital.
The largest proportion of
loans in the Citadele group have been issued in Latvia. In 2016 in Latvia,
Citadele issued EUR 155 mln in loans to corporate clients and small and
medium businesses. In one year, the amount issued in loans in this segment has
grown by 19% compared to 2015. The largest number of loans were issued to
customers in the agricultural sector. The loan portfolio issued to private
individuals in Latvia in 2016 grew by EUR 33 mln or 12%, reaching EUR 315
mln by the end of the year. The bank issued amounts of roughly 3.5 times
more in consumer loans than the year before - in 2015 the amount was 10
million, while in 2016 it was 35 million. In 2016 Citadele continued its
development in the leasing segment; over the course of the year, the leasing
portfolio in Latvia grew by 18%, reaching EUR 67 mln.
AB Citadele bankas in Lithuania, belonging to
the Citadele Group, successfully developed its operations in both the private
customer and business segments. AB Citadele bankas’ credit portfolio in 2016
grew by 17%, reaching EUR 278 mln by the end of the year. Over the course
of the year, the deposit amount grew by 24% in Lithuania, with the deposit
portfolio reaching EUR 420 mln. At the end of 2016, the total credit
portfolio in Estonia reached EUR 97 mln, which is an increase of 20%
compared with 2015.
AS Citadele banka Group generated a EUR 40.7
mln profit in 2016, which is 56% more than in 2015. The profit growth in
2016 was significantly influenced by the EUR 11.3 mln income from the sale
of Visa Europe shares belonging to Citadele, to Visa Inc. Excluding the
one-time income from the sale of Visa shares, the income from Citadele Group
operations grew by 9%, demonstrating successful development. The quality of the
Citadele Group assets also continued to improve in 2016. The Group’s NPL ratio
reached 9.9% at the end of 2016 compared to 10.8% a year ago.
Citadele is the
third largest bank in Latvia by number of clients. The Citadele group is
managed from Latvia. It has subsidiaries and branches in Latvia, Lithuania,
Estonia and Switzerland. Citadele provides payment and card services, loans,
deposits, investments, active asset management and leasing services, as well as
a range of exclusive, unique products. Citadele’s vision is to become the best
financial services provider in the Baltics for private customers and small and
medium businesses.
Citadele’s shareholders are an international and
multinational group of investors with experience in the banking sector
worldwide. 75% plus one share belongs to an international group of investors
represented by the investment company Ripplewood Advisors LLC, while the rest
of the shares belong to the European Bank for Reconstruction and Development
(EBRD).