Analytics, Banks, Financial Services, Rating

The main reason for upgrading Citadele Bank’s rating, according to Moody's, is the result of the progress made in implementing the Baltic focused growth strategy. The rating upgrade is also based on higher capitalization, increasing profitability, declining of problem loans, the strengthening of the bank’s governance and continued reduction of non-resident business.

Moody’s positive outlook reflects expectation of a continued progress with further improvements in the context of a supportive operating environment, a strengthened governance, and a continued increase of Citadele’s market shares in the Baltics despite the increasing competition.

Guntis Beļavskis, CEO of Citadele Bank, said: “Citadele, since its inception, but especially after attracting world class investor group, along with EBRD, has demonstrated that a local bank can grow and prosper in Baltics in a tough competitive environment with international players. This upgrade is another step towards our strategic goal to become true Baltic champion for retail and small and medium business customers, and we are proud of this recognition. Our strategic initiatives in digital space, aspiration to be the primary bank of choice and prudent approach to risk, point to an exciting period ahead of Citadele.”

In the first half of 2018, Citadele Group’s capital adequacy ratio (CAR) was 18.0%, net profit was 18.0 mln euros, Group’s deposits were 2.65 bln euros, and the net loan portfolio reached 1.36 bln euros.