AB SEB bankas Group in Lithuania Result in Q1 2015

23.04.2015 - 12:10

According to preliminary data, unaudited net profit earned over the first quarter of the year 2015 by AB SEB bankas is EUR 18.4 million and by AB SEB bankas Group is EUR 18.2 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 first quarter of the year 2014, unaudited net profit earned by AB SEB bankas amounted to EUR 16.4 million and by AB SEB bankas Group amounted to EUR 16 million.

Comment by CEO of AB SEB bankas in Lithuania Raimondas Kvedaras:

In Q1 2015, we operated successfully. Financial results were positively affected by a rise in income as a result of customer activeness in using financial derivative instruments – customers were increasingly seeking to hedge their savings against the risk of interest rate increase in future, loan losses decreased, bank group’s operational efficiency increased, and euro adaption, as forecasted, decreased bank’s income from foreign exchange transactions and payments.

As compared to Q1 2014, an increase in deposits increased by half a billion euros – from EUR 3.8 billion to EUR 4.3 billion. It is obvious that the changeover to the euro has triggered a change in customer habits of holding their savings – having deposited cash at the time of the changeover to the euro to bank accounts, customers are not in a rush to withdraw money and keep it again in cash.

During Q1 of the current year, we observed a rise in the population’s interest in loans – the number of new mortgage loans issued by the bank increased by 14 per cent, year on year. On the other hand, the geopolitical environment continues affecting the overall dynamics of the credit portfolio, as businesses remain cautious and are not in a hurry to assume new financial obligations.

We observe our customers’ increased activity in using e-banking services, which determines a decrease in client flows at the bank’s branches. There is an increase in the number of payments via internet bank, customers tend to pay by card more frequently and withdraw less cash at ATMs, they are more active in using cash depositing self-service at cash accepting ATMs.

We consistently work on our business strategy – we will aim to be the best advisor to our customers – to private individuals and corporates looking for long-term financial solutions. This year, we will continue expanding our e-services and self-service network, we will seek to achieve more rapid development in payment card services and maximise the number of points of sale equipped with POS terminals.

Key financial ratios of AB SEB bankas Group:

As at 31 March 2015, AB SEB bankas Group’s equity was worth EUR 750 million (EUR 740 million as at 31 March 2014), i.e. increased by 1 per cent.
As at 31 March 2015, AB SEB bankas Group’s assets were worth EUR 6.4 billion (EUR 6.6 billionas at 31 March 2014), i.e. decreased by 3 per cent.
Since 31 March 2014, SEB bankas’ deposit portfolio increased by 14 per cent, i.e. from EUR 3.8 billion to EUR 4.3 billion.
As at 31 March 2015, net worth of AB SEB bankas Group’s credit and leasing portfolio was EUR 4.7 billion (EUR 4.8 billion as at 31 March 2014), i.e. decreased by 2 per cent.
In Q1 2015 AB SEB bankas Group’s income was EUR 41 million (EUR 42 million in Q1 2014), i.e. decreased by 3 per cent, mainly as a result of an adverse effect of the changeover to the euro.
The number of SEB Internet Bank users increased by 45 thousand and at the close of Q1 2015 was 1.2 million, i.e. increased by 4 per cent year on year.
The number of cash-acceptance transactions at cash-in ATMs increased by 17 per cent as compared to the data of 31 March 2014, and the number of cash-acceptance transactions at the bank's sub-branches decreased by 29 per cent over the same period.
Over a year, there was a rise in the share of AB SEB bankas in Lithuania customers’ payments by card as against payments in cash – as at 31 March 2015, this ratio was 34 per cent, which means that out of the total amount of money spent by SEB customers in Lithuania paying by card and in cash, 34 per cent were paid by card. As at 31 March 2014, this ratio was 31 per cent.
Over a relevant period, an increase in the turnover of payment cards was 4 per cent, and the number of POS terminal increased by 9 per cent.
Over a year, an increase in the number of payment transactions via the Internet was 2.3 per cent.
At the close of Q1 2015, AB SEB bankas had 46 customer service branches all over Lithuania. SEB customers have access to Lithuania’s largest ATMs network that includes ATMs of SEB and DNB banks, i.e. 541 ATMs.