SEB Bank Group Lithuania announces its operating result for the year 2016

01.02.2017 - 11:00

According to preliminary data, unaudited net profit earned by AB SEB bankas in 2016 was EUR 94.5 million, and that earned by AB SEB bankas Group was EUR 93.1 million. The result has been calculated in accordance with relevant requirements laid down in the documents of the Bank of Lithuania and legal acts the Republic of Lithuania. 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. Excluding unspecific one-off deals, unaudited net profit earned by AB SEB bankas in 2016 was EUR 68.3 million, i. e. 10 per cent higher as compared to 2015, and that earned by AB SEB bankas Group was EUR 67 million, i.e. 14 per cent higher as compared to 2015.

Comment by Raimondas Kvedaras, President of SEB Bank

In 2016, there was little change in Lithuanian economy growth trends. Moderate, but at the same time sustainable GDP development was determined by active domestic market, which was fuelled by increasing average wages and unemployment. In 2017, there should be a pick-up in corporate investment processes creating preconditions for consistent growth in the bank's credit portfolio.

There was sustainable growth in lending volumes as a result of stability in the economic environment, better expectations of businesses and the population as well as record-low interest rates. We were lending funds both to businesses and to the population: in 2016, an increase in the net worth of SEB Bank’s credit and lease portfolio was 9 per cent. Last year, the amount issued by SEB Bank in loans to small and medium enterprises was EUR 465 million, i. e. 16 per cent higher than in 2015, that to large corporate customers was EUR 988 million, or 4 per cent more than in 2015. Last year, activity in the implementation of development and innovation projects was marked among transport, wholesale, food industry, energy and real estate companies. The amount issued in mortgage loans to private individuals was EUR 348 million, i. e. 25 per cent higher than in 2015, and credit quality remained good.

Last year, SEB Bank’s credit portfolio, including financial institutions, increased by 8 per cent up to EUR 5.2 billion, regardless of low interest rates environment.

In the face of changing customer behaviour and growing competition in the digital banking market, we continued to have a strong focus on the development of remote-access services and self-service as well as on digital solutions. We have created a possibility for private individuals to obtain a consumer loan online and within a few minutes get an answer regarding car leasing; recently we presented online advice possibility for our private individual customers, updated our mobile application, and this year, together with partners, we will offer an innovative identification tool – Smart-ID – and will present other digital solutions that will serve as a support to our customers for even more convenient and efficient management of their finances.

Private individuals prefer to have access to daily banking services by remote control means and without having to visit a bank sub-branch – online or by mobile phone. Our customers already make 99.5 per cent of their cash transactions on their own, however, for financial advice they continue turning to our bank specialists. Therefore, nearly 40 per cent of our sub-branch network have been equipped with self-service areas, whereas the bank staff devote their time for customer advice on financial matters.

Key data of AB SEB bankas Group Lithuania

As at 31 December 2016, AB SEB bankas Group’s equity was worth EUR 796 million (EUR 791 million yoy), i.e. increased by 1 per cent.
As at 31 December 2016, AB SEB bankas Group’s assets were worth EUR 7.5 billion (EUR 6.9 billion yoy), i.e. increased by 10 per cent.
As at 31 December 2016, AB SEB bankas Group’s deposit portfolio made EUR 5.2 billion (EUR 4.8 billion yoy), i.e. increased by 8 per cent.
As at 31 December 2016, net worth of AB SEB bankas Group’s credit and leasing portfolio was EUR 5.3 billion (EUR 4.9 billion yoy), i.e. increased by 9 per cent.
AB SEB bankas Group’s income over the year 2016 was EUR 181.5 billion (EUR 151.7 billion yoy). Excluding unspecific one-off items in the 1st half-year of 2016 (as a result of sales of Visa Europe Limited shares), the bank group’s income was EUR 160.1 million, i. e. increased by 6 per cent yoy.
At the close of 2016, the number of registered SEB Internet Bank users was 1.24 million, i. e. increased by 41 thousand, or by 3 per cent, as compared to the data of 31 December 2015. At the close of December 2016, the number of users logging in to SEB Internet Bank using their mobile devices was 28 per cent higher compared to December 2015.
Over a year, the share of payments by card by SEB Bank in Lithuania customers, as compared to payments in cash, increased – in 2016, relevant ratio was 39 per cent. It means that of all the money that SEB customers spent paying by card and in cash, 39 per cent were paid by card. (according to the year 2015 data, this ratio was 35 per cent).
At the end of December 2016, SEB Bank had 34 customer service sub-branches all over Lithuania, of this number – 13 financial advice units, which do not execute any cash transactions.
SEB Bank customers are offered access to the largest ATM network in Lithuania that includes ATMs of both SEB and DNB Bank, i.e. 531 ATMs, also at about 1400 shops when paying by card they can withdraw cash free of charge.