Banks, Financial Services, Good for Business, Latvia

The bank’s net interest income was up by 10% y-o-y to EUR 39.9 mln. The bank’s loan portfolio rose by EUR 29 mln since December 21, 2017. EUR 480 mln new loans have been granted by the group since June 30, 2017. Return on equity improved to 13.1% versus 11.5% in the same period last year. Capital adequacy ratio for the group was at 18%.

The bank explained that overall Citadele Group’s performance in the first half of 2018 was primarily driven by increased net interest income from the Baltic loan portfolio growth, and some improvements in portfolio margins. The group’s net interest income grew by 10% to EUR 39.9 mln. Net profit continued to grow with 20% increase y-o-y to EUR 18 mln.

Consistent with its goal to be the leading banking service provider in the Baltics, the group increased loans to corporate, SMEs and private individuals in all three Baltic states in the first half of 2018, achieving 3% growth y-o-y in the group’s net loan portfolio reaching EUR 1.36 bn. In the first half of 2018, EUR 221 mln of new loans were granted across the Baltics by the group.

EUR 126 mln of new loans were granted in Latvia in the first half of 2018 by the group. In Lithuania EUR 69 mln were granted in new loans in the first half of 2018. In Estonia a total of EUR 26 mln were granted in new loans.

Citadele group’s capital adequacy ratio was 18 % as at June 30, 2018.

Citadele is pleased with the progress made since December 31, 2017, in the Baltic market where the group increased domestic deposits by EUR 131 mln. Non-domestic customer business continued to be scaled back and resulted in a decrease of overall deposits in the first half of 2018. As of June 30, 2018, the group’s deposits were EUR 2.65 bn, a reduction of % compared with December 31, 2017.

The bank’s shareholders are the European Bank for Reconstruction and Development and an international group of investors with global experience in the banking sector. The Citadele group is managed from Latvia with subsidiaries and branches in Latvia, Lithuania, Estonia and Switzerland.