AB SEB bankas Group’s in Lithuania Q3 2016 result

20.10.2016 - 12:40

According to preliminary data, unaudited net profit earned by AB SEB bankas over three quarters of 2016 was EUR 66.2 million, and that earned by the AB SEB bankas Group was EUR 64.5 million. Respectively, unaudited net profit earned by AB SEB bankas over three quarters of 2015 was EUR 50.6 million, and that earned by the AB SEB bankas Group was EUR 46.8 million.

Comment by Raimondas Kvedaras, CEO of AB SEB bankas:

In Q3 2016, the trend of Lithuania’s economic growth remained unchanged. As before, the GDP development resulted from robust domestic market driven by a fast rise in average wages and a decrease in the level of unemployment. Improved investment efforts of businesses will further lead towards consistent and sustainable growth in the loan portfolio of banks.

Over three quarters of the current year, an increase in net worth of the SEB bankas Group’s loan and leasing portfolio was 9 per cent. Interest rates remaining low, both local large, small and medium-sized companies (SMEs) were borrowing for their business development as well as for new investment projects. The amount issued in loans to SMEs increased by 21 per cent, and that to large companies – by 30 per cent, comparing to the same period last year. This year, energy, real estate, retail trade and transport sector companies have been particularly active in the implementation of development plans.

Of late, increasing leasing volumes have been determined by more abundant investments for the renewal of such machinery as cars, heavy duty vehicles, and now that state support conditions have come to light businesses are more actively borrowing for agricultural machinery purposes as well.

As a result of better expectations for the future and increasing salaries, the population, too, has been borrowing more actively. Over the three quarters, an increase in the volume of our issued mortgage loans was 33 per cent year on year, that in consumer loans was 5 per cent, whereas a rise in car lease to private individuals was 40 per cent, growth in green car leasing being particularly fast. With the growing lending volumes, the loan portfolio quality remained high.

Negative interest rates environment continued to have an adverse effect on the bank's income, however, as the number of SEB’s home bank customers was steadily increasing accompanied by an increase in customer needs for financial services, the bank's income increased by 4 per cent year on year, excluding one-off income.

Going forward and considering the ever increasing willingness of customers to reach the bank via digital channels, we will continue expanding our bank's remote channels for communication with clients, also, in the nearest future we will offer solutions to customers that will be even more convenient than today for handling their daily finances or for getting advice from the bank on important financial issues.

AB SEB bankas Group Lithuania: key data

As of 30 September 2016, AB SEB bankas Group’s equity was worth EUR 767 million (EUR 764 million as of 30 September 2015), i. e. decreased by 1 per cent as a result of dividend payment to its parent bank Skandinaviska Enskilda Banken AB.
As of 30 September 2016, AB SEB bankas Group’s assets were worth EUR 7.4 billion (EUR 6.6 billion as of 30 September 2015), i. e. increased by 11 per cent.
As of 30 September 2016, AB SEB bankas’ deposit portfolio was worth EUR 4.8 billion (EUR 4.3 billion as of 30 September 2015), i. e. increased by 12 per cent.
As of 30 September 2016, net value of AB SEB bankas Group’s loan and leasing portfolio was EUR 5.3 billion (EUR 4.9 billion as of 30 September 2015), i. e. increased by 9 per cent.
AB SEB bankas Group’s income over three quarters of 2016 was EUR 141.1 million (EUR 115.4 million as of 30 September 2015). Excluding extraordinary one-off income in the first half-year of 2016 – as a result of sales of Visa Europe Limited shares – the bank's income over three quarters of 2016 was EUR 119.7 million, i. e. increased by 4 per cent year on year.
At the end of September 2016, the number of registered SEB Internet Bank users was 1.24 million, i. e. increased by 43 thousand, or 4 per cent, year on year.
An increase in cash acceptance transactions at cash-in ATMs was 6 per cent year on year, whereas the number cash crediting transactions at the bank's sub-branches decreased by 37 per cent within the same period.
Over a year, there was an increase in the share of payments by card by customers of SEB in Lithuania as against payments in cash: according to the three quarters’ data, relevant ratio has 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 (according to the data of relevant three quarters in 2015, this ratio was 36 per cent).
An increase in payments by card was 15 per cent as compared to data over relevant three quarters of 2015.
At the end of September 2016, SEB had 38 branches all over Lithuania, 13 of them were advisory branches (cashless).
SEB customers have access to Lithuania’s largest ATM network that includes SEB and DNB ATMs, i. e. 552 ATMs.