AB SEB bankas Group’s in Lithuania 1H 2016 result

14.07.2016 - 12:50

According to preliminary data, unaudited net profit earned over the first half-year of the year 2016 by AB SEB bankas is EUR 45.1 million and by AB SEB bankas Group is EUR 43.1 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 half-year of the year 2015, unaudited net profit earned by AB SEB bankas was EUR 36.9 million and by AB SEB bankas Group – EUR 32.7 million.

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

In the 1st half-year 2016, Lithuania’s economic indicators were improving and export regained its role as a factor of more rapid GDP growth. Therefore, we can expect a drop in unemployment as well as growth in income of the population accompanied by increasingly stronger domestic market.
The outcome of the British referendum has injected more uncertainty regarding the development of the region’s economy, however, in any event the effects of Great Britain’s exit will materialise not in the nearest future, therefore, it will be possible to assess the effects more accurately and get properly prepared.
Improvement in the expectations of the population and businesses as well as more substantial business investments and environment of lower interest rates resulted in sustainable growth in the bank's credit portfolio. Over the first half-year of the year 2016, an increase in the net value of SEB bankas Group’s credit and leasing portfolio was 8 per cent. The amount issued in mortgage loans over the first half-year of the year 2016 was EUR 160 million, which is a 34 per cent increase yoy. Among mortgage loan applicants, city residents prevailed. An increase in domestic consumption induced, among other things, the market of consumer loans – during the 1st half-year the volume of our issued consumer loans increased by 10 per cent yoy.
Active borrowers for the purpose of business development and new investments included small and medium enterprises, which are the main driver of economy. Over the first half-year of 2016 an increase in loans issued to SMEs increased by 43 per cent. An increase in business investments for the upgrade of car fleets, technology, agricultural machinery, freight transport induced growth in the leasing volumes. The amount issued in loans to large companies was also marked by growth – in the first half-year of 2016 it was 53 per cent yoy.
As a result of the negative interest rate environment the bank's income, excluding extraordinary one-off income, decreased by 2 per cent yoy.
During the first half-year of 2016 there was further increase in the number of SEB’s home bank customers. Due to growth in the population’s mobility and acceleration in the tempo of life there was further increase in the number of our customers who prefer remote channels and self-service: an increase in the number of SEB Internet Bank users was 4 per cent, and the share of customers logging in to SEB Internet Bank from mobile devices keeps growing, making 34 per cent.
Taking into account our customers’ needs to have a fast and simple way for handling their daily finances and to visit the branch only when they need advice on more complex finance planning, saving or investment, we continued expanding our network of financial advice centers in Vilnius and in Kaunas: currently, our advisory branches account for 1/3 of our branch network. In the era of digitalisation we plan to pursue this path further, aiming to be the best financial adviser both to private individuals and businesses.

Key data of AB SEB bankas Group in Lithuania

As of 30 June 2016, AB SEB bankas Group’s equity was EUR 746 million (EUR 764 million as of 30 June 2015), i.e. decreased by 2 per cent as a result of dividend payment to Skandinaviska Enskilda Banken AB.
As of 30 June 2016, AB SEB bankas Group’s assets were worth EUR 7.0 billion (EUR 6.5 billion as of 30 June 2015), i.e. increased by 9 per cent.
As of 30 June 2016, AB SEB bankas’ deposit portfolio was worth EUR 4.8 billion (EUR 4.4 billion as of 30 June 2015), i.e. increased by 10 per cent.
As of 30 June 2016, net value of AB SEB bankas Group’s credit and leasing portfolio was EUR 5.1 billion (EUR 4.8 billion as of 30 June 2015), i.e. increased by 8 per cent.
AB SEB bankas Group’s the 1st half-year 2016 income was EUR 98.2 million (EUR 78.2 million as of 30 June 2015). Excluding extraordinary one-off income of the 1st half-year 2016 – due to Visa Europe Limited shares transaction – the bank's income was EUR 76.7 million, i.e. decreased by 2 per cent yoy.
Over a year, the number of SEB Internet Bank users increased by 45 thousand, and at the close of the 1st half-year 2016 was 1.22 million, i.e. increased by 4 per cent yoy.
An increase in cash acceptance transactions at cash-in ATMs was 5 per cent as compared to the data of the 1st half-year 2015, while the number of cash crediting transactions at the bank's branches decreased by 35 per cent within the same period.
In a year, there was in increase in the share of payments by card by customers of SEB in Lithuania as against payments in cash: in the 1st half-year 2016, relevant ratio reached 38 per cent. It means that of all the money spent by SEB customers paying by card and in cash 38 per cent were paid by card. In the 1st half-year 2015, this ratio was 34 per cent.
An increase in payments by card was 20 per cent as compared to the 1st half-year 2015.
At the end of June 2016, AB SEB bankas had 38 customer service branches in Lithuania, 12 of them were advisory branches (cashless).
SEB customers have access to Lithuania’s largest ATM network that includes SEB and DNB ATMs, i.e. 536 ATMs.