Banks, Financial Services, Good for Business, Latvia, Rating

The review by Moody’s of Citadele Bank’s rating was explained as being due to the bank’s improved macro profile, increase in the proportion of business in the Baltics, as well as improvements in intrinsic credit fundamentals - significantly strengthened capitalisation and a continued improving trend in asset quality. Moody’s positively rates the bank’s rapid development and expects that Citadele’s strategic focus on expanding its activities in the Baltics will lead to further improvements in bank’s asset quality and overall credit profile.

“Such a significant rating increase is a testament to the fact that Citadele has solidly placed itself on the road to development and is heading in the right direction. Our task and ambition is to continue improving the bank’s financial performance in order to reach an even higher level,” says Citadele Chairman of the Board Guntis Beļavskis. “The ratings upgrade by Moody’s is also good news for investors who have invested or plan to invest in Citadele’s subordinated bonds on the stock exchange,” says Guntis Beļavskis.

Last year Citadele worked with accelerated growth in the Baltic countries. The bank’s strategy is to be a regional champion - the bank that is chosen for the everyday needs of private customers and small and medium businesses in the Baltic states. The bank is effectively carrying out this strategy, because in 2016 the number of active clients using the Citadele group for everyday transactions grew by 18%; clients spent an average of 200 Euro per month on card purchases.

Meanwhile the bank’s credit portfolio growth to 1.24 bln Euro reflects Citadele’s strategy to become an active player in small and medium business loans in the Baltics as well as in personal loans in Latvia and Lithuania. Over the course of 2016, the total amount of customer deposits increased by 13%; by the end of the year the total deposit amount in Citadele Group banks reached 2.92 bln Euro.

Citadele is the third biggest bank in Latvia by number of clients. The Citadele Group is managed from Latvia, and its subsidiaries and branches operate in Latvia, Lithuania, Estonia and Switzerland. Citadele ensures transactions and card payments, loans, deposits, investments, asset management and leasing services, as well as a range of exclusive and 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 a group of international investors represented by the investment company Ripplewood Advisors LLC, while the remaining shares belong to the European Bank for Reconstruction and Development (EBRD).