AB SEB bankas Group in Lithuania Annual Result in the Year 2014

29.01.2015 - 11:20

According to preliminary data, unaudited net profit earned over the year 2014 by AB SEB bankas is EUR 65.3 million (LTL 225.6 million) and by AB SEB bankas Group – EUR 72.4 million (LTL 249.9 million). The result has been calculated in accordance with the requirements set by the acts of the Bank of Lithuania and legal acts of the Republic of Lithuania. Over the year 2013, audited net profit earned by AB SEB bankas totalled EUR 61.5 million (LTL 212.3 million) and by AB SEB bankas Group – EUR 61.5 million (LTL 212.3 million).

Comment by Raimondas Kvedaras, CEO of SEB Bank:

The year 2014 was successful for us – there was an increase in the bank group’s income, profit and return, and operational efficiency was improving.

Looking back at the recent economic crisis and remembering the lessons learnt, in 2014 we actively cooperated with companies that have directly experienced the impact of economic effects of the Russian-Ukrainian conflict.

Geopolitical challenges have stimulated adjustments in the level of optimism of both private individuals and companies, however, it has not hindered the development in our banking services – customers were more active in using our bank’s services and the number of e-transactions was increasing. Like every year, in 2014 alongside with an increase in the number of our customers who prefer more transparent and safer electronic payments and discover advantages of payment by card, we saw a consistent decline in the number of cash transactions.

The bank’s process of preparation for the changeover to the euro that lasted for a year and a half has been successfully finalised: on January 1st savings in the litas in customer deposit accounts were successfully converted into the country’s new legal tender, and we prepared our bank branches for an increase of customer visits for exchanging cash in the litas during the first half-year of 2015.

Our bank’s readiness to provide services in the Eurozone space was confirmed by the results of asset quality assessment and stress testing of Lithuanian banks carried out by the European Central Bank – we got a clear confirmation that SEB Bank’s resilience to external factors and its capital base considerably exceed mandatory requirements. Also, last year’s as high as an 17 per cent increase in our customer deposit portfolio and an 11 per cent increase in the number of new issued loans compared to the year 2013 serve as an indication of customer trust in our bank and strong partnership relations.

In 2015 we will continue with the expansion of cash-in ATMs and other self-service points network, create favourable conditions in order that the advantages of e-services would be discovered by as many as possible companies and households. By strengthening our relations with customers we aim at becoming the best adviser to our customers – both private individuals and companies seeking long-term financial solutions.
We believe this year Lithuania’s economy should maintain a similar pace of development as in 2014. Of late, similarly as everywhere in the European Union, Lithuanian companies and private individuals are cautious about assuming new financial obligations, which hinders positive dynamics in loan portfolios of banks. On the other hand, the EU 2014 –2020 new financial framework for project implementation should offer more opportunities for companies for financing their investments both using banking services and availing of historically low interest rates.

Key data of AB SEB bankas Group:

As of 31 December 2014, AB SEB bankas Group’s equity was EUR 796.8 million (as of 31 December 2013, it was EUR 753.5 million), i.e. increased by 6 per cent.
As of 31 December 2014, AB SEB bankas Group’s assets were worth EUR 6.7 billion (as of 31 December 2013, it was EUR 6,8 billion), i.e. decreased by 1 per cent.
Since 31 December 2013, AB SEB bankas’ deposit portfolio increased by 17 per cent, i.e. from EUR 3.8 billion up to EUR 4.5 billion as of 31 December 2014.
As of 31 December 2014, net worth of AB SEB bankas Group’s loan and leasing portfolio was EUR 4.7 billion (as of 31 December 2013, it was EUR 4.8 billion), i.e. decreased by 2 per cent.
Last year, the amount of new loans issued by AB SEB bankas was EUR 1.5 billion, which is a 11 per cent increase compared to 2013.
AB SEB bankas Group’s income was EUR 178.5 million (as of 31 December 2013, its income was EUR 169.6 million), i.e. increased by 5 per cent.
As at the close of 2014, AB SEB bankas Group’s liquidity ratio was 33 per cent (requirement – 30 per cent).
The number of registered SEB Internet Bank users increased by 45 thousand and at the close of 2014 was 1.159 million, i.e. increased by 4 per cent as compared to the data as at 31 December 2013.
The number of cash-in transactions at cash accepting ATMs, as compared to the data as of 31 December 2013, increased by 26 per cent, and the number of cash-in transactions at bank branches decreased by 32 per cent over the same period.
Payment card turnover, as compared to the data of 2013, increased by 3 per cent, and the number of POS terminals increased by 14 per cent.
Last year, there was a rise in the share of SEB Lithuania customers’ payments by card as against payments in cash: as at 31 December 2014, POS sales ratio from total card turnover was 32/68/ – it means that out of total spending by SEB customers in Lithuania paying both by card and in cash, 32 per cent was the share paid by card. In 2013, this ratio was 29/71.
Last year, the number of payment transactions via the Internet increased by 4 per cent, as compared to the data as of 31 December 2013.
At the close of 2014, AB SEB bankas had 46 customer service branches all over Lithuania. SEB Bank customers have access to an ATM network, which is the largest one in Lithuania and includes ATMs of both SEB and DNB banks, i.e. 539 ATMs.