Announcement of First Half-Year 2017 Operating Result of SEB bankas Group in Lithuania

14.07.2017 - 11:25

At the end of the first half of the year 2017, compared to last year data for the relevant period, net value of the loan and lease portfolio of the SEB bankas Group increased by 9 per cent, and the loan quality remained stable. The loan and lease portfolio growth was determined by a stable corporate investment and a proactive lending for private customers. SEB bankas’ deposit portfolio (including deposits of financial institutions) continued to grow, irrespective of low interest rates in the market, i.e. it grew by 5 per cent and amounted to EUR 5.1 billion.

Comment by Raimondas Kvedaras, Chairman of the Management Board of SEB bankas:

In the first half of current year, SEB bankas’ loans to the public and corporate loans made up EUR 1.1 billion, or the equivalent amount compared to the first half-year 2016 (EUR 1.1 billion). Household consumption remains the main driver of Lithuania‘s economic growth, and increasing bank lending volumes show it: a proactive lending for private customers was observed – in the first half of this year, the new mortgage loans and consumer loans (EUR 205 million) granted by the bank increased by nearly one fifth (18 per cent), as compared to the equivalent period in the year 2016.

Seeking to ensure the convenience for our customers in the second quarter, we focused on digitalization and simplification of the banking services: we upgraded SEB mobile app – we have introduced new functions and made other modifications, which are already appreciated by more than 100 thousand active uses of the mobile application. The number of our private customers, who may receive an individual financial consultation free of charge by making a video conference call, has increased – from this day on, our online financial advisors are prepared to assist users of the Smart-ID app, password generator and mobile e-signature. Seeking to save time of our private customers, we also offered them a possibility to fill out a Questionnaire for Private Individuals online, and in addition to the above, we have simplified the lease and mortgage loan agreements. We also offered innovations to our corporate customers – they already have a possibility to sign factoring and lease agreements online with a mobile e-signature.

Key data of SEB bankas Group in Lithuania:

In the first half of the year 2017, unaudited net profit earned by SEB bankas amounted to EUR 41.7 million (or lower by 7 per cent, as compared to the first half-year of 2016, when its profit made up EUR 45.1 million). Unaudited net profit earned by SEB bankas Group totalled EUR 40.0 million, or it was lower by 7 per cent, compared to the first half of the year 2016 (EUR 43.1 million). The greatest impact on such decrease in profit in the first half of the year 2017 was made by one-off income from sales of the shares of VISA Europe Limited in the year 2016.
As of 30 June 2017, SEB bankas Group’s equity made up EUR 714 million (as of 30 June 2016 – EUR 746 million), i.e. it shrank by 4 per cent, as a result of dividend payment to its parent company Skandinaviska Enskilda Banken AB in the beginning of the year.
As of 30 June 2017, SEB bankas Group’s assets amounted to EUR 7.7 billion (as of 30 June 2016 – EUR 7.0 billion), i.e. grew by 10 per cent.
Income of SEB bankas Group in the first half of the year 2017 made up EUR 83.9 million (in the first half-year 2016 – EUR 98.1 million). If one-off income in the first half-year of 2016 from sales of the shares of VISA Europe Limited is excluded, SEB bankas Group’s income in the first half-year 2017 increased by 9 per cent.
SEB bankas’ deposit portfolio as of 30 June 2017 stood at EUR 5.1 billion (as of 30 June 2016 – EUR 4.8 billion), i.e. grew by 5 per cent.
As of 30 June 2017, net worth of SEB bankas Group’s credit and leasing portfolio totalled EUR 5.6 billion (as of 30 June 2016 – EUR 5.1 billion), i.e. increased by 9 per cent.
Lithuanian state budget contributions in various taxes paid in the first half-year of 2017 by the SEB companies operating in Lithuania amounted to EUR 24.4 million.
As at the end of June 2017, the number of active users of the SEB Internet Bank reached 544 thousand, i.e. increased by 10 thousand, or by 2 per cent, as compared to the data of as of 30 June 2016.
98 per cent of payment transactions are executed by our customers on their own, i.e. by using e-banking services.
More customers of SEB bankas make payments by cards – in the first half of the year 2017, the turnover of card payments for goods went up by 19 per cent.
As at the end of June 2017, SEB had 34 branches all over Lithuania; 13 of them are financial advisory units operating on cashless basis.
Customers of SEB may use the largest ATM network in Lithuania connecting the ATMs of SEB and DNB, i.e. 527 ATMs and 1,200 shopping centres where our customers have a possibility to withdraw cash free of charge when making payments for goods by card.
AB SEB bankas Group consists of AB SEB bankas, UAB SEB investicijų valdymas and UAB Venture Capital.