SEB Bank Group’s in Lithuania Annual Result in the Year 2015

According to preliminary data, unaudited net profit earned by AB SEB bankas in 2015 was EUR 62.1 million, and that earned by AB SEB bankas Group was EUR 58.8 million. The result has been calculated in accordance with relevant requirements set by documents of the Bank of Lithuania and legal acts the Republic of Lithuania. Unaudited net profit earned by AB SEB bankas in 2014 was EUR 65.3 million, and that earned by AB SEB bankas Group was EUR 72.4 million.

Comment by Raimondas Kvedaras, CEO of SEB bank:

“Last year, the anchor of the country’s economic growth guarantee was its domestic market, driven by an increase in average wage and a decrease in the level of unemployment. On the other hand, the GDP was influenced by objective factors – Russian sanctions and the impact of its economic problems on Lithuania’s export sector.

Last year, we successfully implemented changes in payments, when Lithuania joined the Single Euro Payments Area (SEPA) that covers thirty four states, and made a smooth launch of the e-invoice service.

All throughout the year, negative interest rate environment  and the changeover to the euro had an adverse effect on the bank's income (there was a decrease in income from interest, cross-border payments, currency exchange transactions) the bank's operational efficiency was growing. As a result of a recovery in business investments and higher activeness in mortgage lending, last year a net increase in SEB bank’s credit and lease portfolio was 4 per cent. There was an increase in the amount issued in loans both to private individual and corporate customers.

Being advisory to small and medium enterprises on such issues as business development and investments, we increased our issuance of new loans by 43.6 per cent year-on-year. Active housing market, stronger expectations of private individuals regarding their future income and the national economy and, partly, more rigorous responsible lending requirements that took effect in November prompting part of the population to act fast and borrow before this deadline, have determined a need for new mortgage loans – we provided 41 per cent more new mortgage loans then in 2015.
  
Last year, we further pursued our chosen path to be the best financial advisor to private individuals and businesses: over 2015, we provided as many 60 thousand personal advisory meetings, also we were more active in offering advice to companies – the number of advisory meetings over a year reached 24 thousand.

In response to the changing habits of private individuals and business needs, last year we rapidly expanded the infrastructure of payment cards, installing nearly 3 thousand new POS terminals, which is a 15 per cent increase if compared to 2014. The majority of companies that have acquired POS terminals were small companies providing services or selling goods at a single point only and this shows the increasingly prevailing new attitude of businesses to more convenient means of payment shows. The fact that customers are increasingly less willing to bother producing cash out of their wallets is shown by an upswing in the share of payments by card, which in 2015 was 35 per cent.

We see that private individuals are ever more willing to handle their daily financial matters on their own, and they visit the bank branches when they need advice on financial matters, therefore, last year we continued investing in the improvement and renewal of our branch network. We have installed new self-service areas, rearranged some units into financial advisory branches, where our bank employees focus exclusively on advisory.

This year, as uncertainty in the global economy is increasing and new global challenges are rising, we will remain focused on holistic customer advisory, sustainable financing and the development of digital service channels convenient for our customers.”

Key data of AB SEB bankas Group

• As at 31 December 2015, AB SEB bankas Group’s equity was worth EUR 791 million (EUR 797 million yoy), i.e. decreased by 1 per cent.
• As at 31 December 2015, AB SEB bankas Group’s assets were worth EUR 6.9 billion (EUR 6.7 billion yoy), i.e. increased by 2 per cent.
• As at 31 December 2015, AB SEB bankas Group’s deposit portfolio made EUR 4.8 billion (EUR 4.5 billion yoy), i.e. increased by 7 per cent.
• As at 31 December 2015, net worth of AB SEB bankas Group’s credit and leasing portfolio was EUR 4.9 billion (EUR 4.7 billion yoy), i.e. increased by 4 per cent.
• AB SEB bankas Group’s income over the year 2015 was EUR 151.7 billion (EUR 178.5 billion yoy), i.e. decreased by 15 per cent, mainly as a result of the changeover to the euro and negative interest rate environment.
• Over a year, the number of registered SEB Internet Bank users increased by 46 thousand and at the end of 2015 was 1.2 million, i.e. increased by 4 per cent yoy. As many as 31 per cent of all SEB Internet Bank users connect to Internet Bank using their mobile devices (on December 31st of  2014  - 23 per cent.
• The number of cash crediting transactions at cash-in ATMs increased by 4 per cent yoy, whereas that of cash crediting transactions at the bank units dropped by 34 per cent over the same period.
• Over a year, the share of payments by card by SEB bank in Lithuania customers, as compared to payments in cash, increased – in 2015, relevant ratio reached 35 per cent.  It means that of all the money that SEB customers spent paying by card and in cash, 35 per cent were paid by card. In 2014, this ratio was 32 per cent.
• Over a year, an increase in payments by card was 8 per cent.
• At the end of December 2015, AB SEB bankas had 42 branches all over Lithuania, of this number – 9 financial advisory branches. SEB bank customers are offered access to the largest ATM network in Lithuania that includes ATMs of both SEB and DNB Bank, i.e. 537 ATMs.