NEWS - 2019 10 23 - 09:40
At the end of the third quarter of 2019, net worth of the loan and lease portfolio of the SEB Bank Group, as compared to the corresponding period of the previous year increased by 2 per cent, or up to EUR 6.4 billion (at the end of the third quarter of 2018, the outstanding loans totalled EUR 6.2 billion. A deposit portfolio of SEB Bank (including deposits of financial institutions) grew by 13 per cent and at the end of the third quarter of this year amounted to EUR 6.6 billion (EUR 5.9 billion in the equivalent period of the year 2018).
Comment by Raimondas Kvedaras, Chairman of the Management Board of SEB Bank
The development of Lithuanian economy in the third quarter of 2019 followed the same dynamic pace, however we observe more and more signs, which indicate that decreased prospects of the global economic growth have a greater negative effect on our local industry and on export-related industry sectors. To some extent, the above situation is holding back business investment. The new loans granted by SEB Bank to the local enterprises in the first three quarters of this year amounted to EUR 1 149 million (loans in the three quarters of 2018 totalled EUR 1 210 million, one-off contract excluded). The largest volumes of loans were issued to trade, manufacturing, service (transport undertakings included) and real estate companies, or 74 per cent of the total corporate loan portfolio.
Real income in the third quarter grew at a similar rate, as compared to the second quarter, employment rate was increasing, therefore the financial position of households remained stable. Positive mood of inhabitants, improving migration-related indicators and growing income resulted in sustainable lending in the private customer segment. The mortgage and consumer loans and other loans granted by SEB Bank to private individuals within the period of three quarters stood at EUR 344 million (EUR 353 million in the first three quarters of the year 2018). Stable financial position of the households stimulated them to ensure financial safety – as compared to the relevant period of the year 2018, the deposits from the public within three quarters of this year grew by 11 per cent, or up to EUR 4.1 billion.
Proactive use of digital services offered by the bank to private individuals and corporate customers demonstrates that it is convenient for them to order any service and product online or to get financial advice online. As of the end of September, the bank has provided more than 10 thousand online financial advisory services to private individuals and corporate customers. Currently, more than 70 per cent of the mortgage loan agreements are signed online using a special system. A new service has been offered to small and medium enterprises – a possibility to update the Form for Legal Entities via electronic channels.
We are among the first ones to promote the principles of Open Banking in Lithuania by inviting the financial technology companies to work together on developing innovative solutions for customers. At the end of the password era at SEB Bank, our customers have chosen more secure digital identity verification methods: currently, an absolute majority of our customers log in to the Internet Bank using a free of charge Smart-ID application, Digipass or electronic signature.
Key data
• In the first three quarters of this year, unaudited net profit earned by SEB Bank amounted to EUR 88.7 million (as compared to the equivalent period of the previous year – EUR 79.2 million), and unaudited net profit earned by the SEB Bank Group totalled EUR 87.8 million (as compared to the relevant period of the previous year – EUR 80.9 million)
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