SEB Bank Group’s 1H 2015 result
According to preliminary data, unaudited net profit earned over the first half-year of the year 2015 by AB SEB bankas is EUR 36.9 million and by AB SEB bankas Group is EUR 32.7 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 2014, unaudited net profit earned by AB SEB bankas was EUR 43.0 million and by AB SEB bankas Group – EUR 43.0 million.
Comment by CEO of AB SEB bankas in Lithuania Raimondas Kvedaras:
Our 1st half-year 2015 the number of home bank clients increased, and the bank group’s operational efficiency was going upwards. As forecasted, with the introduction of the euro there was a decrease in the bank's income from foreign exchange and payment transactions.
The impact of the geopolitical uncertainty persisted, and the beginning of the year was marked by a slow-down in the national BVP growth rate. On the other hand, low interest rate environment, pro-activeness of businesses is a determining factor for gradual recovery of the credit issuance scale. SEB Bank’s total credit and lease portfolio remained stable and, compared to the 1st half-year of 2014 and 2015, excluding one major deal in 2014, the value of the bank’s new loans increased by as much as 19 per cent. There was an increase in the number of promising projects for financing, as following the close of the Russian markets businesses found new niches for other export directions. Private individuals’ pro-activeness in obtaining mortgage loans was increasing – over a year an increase in new loans issued by the bank was as high as 21 per cent, year-on-year.
Over the recent half-year period, we were actively working with small and medium enterprises (SMEs) – in the 1st half-year of 2015, as compared to the same period a year ago, the rate of growth in the portfolio of loans issued to SMEs was the highest within several years, i.e. 5 per cent. Our expectations of more rapid credit portfolio growth rely on the start of the new European financial perspective period, which should liven up investments and creation of new jobs.
As compared to the 1st half-year 2014, deposits at our bank increased by half a billion euros – from 3.8 to 4.4 billion euros.
We see that customers are more and more active in using e-banking services, therefore, customer flows at the bank’s branches are decreasing. There was further growth in the number of payment transactions via the Internet, customer payments by card were more frequent, amounts withdrawn at ATMs were lower, and customers used cash-in self-services more frequently.
We continue implementing our strategy to be the best adviser for private individual and corporate customers seeking long-term financial solutions, we expand our network of e-services and self-services further and aim at a more rapid development of payment card services.
Key financial ratios of AB SEB bankas Group:
As at 30 June 2015, AB SEB bankas Group’s equity was worth EUR 764 million (EUR 767 million as at 30 June 2014), i.e. remained stable.
As at 30 June 2015, AB SEB bankas Group’s assets were worth EUR 6.5 billion (EUR 6.9 billion as at 30 June 2015), i.e. decreased by 6 per cent.
Since 30 June 2014, SEB bankas’ deposit portfolio increased by 14 per cent, i.e. from EUR 3.8 billion to EUR 4.4 billion.
As at 30 June 2015, net worth of AB SEB bankas Group’s credit and leasing portfolio was EUR 4.8 billion (EUR 4.8 billion as at 31 March 2014), i.e. remained stable.
In Q1 2015 AB SEB bankas Group’s income was EUR 78.2 million (EUR 85.1 million in H1 2014), i.e. decreased by 8 per cent, mainly as a result of an adverse effect of the changeover to the euro.
The number of SEB Internet Bank users increased by 46 thousand and at the close of H1 2015 was 1.2 million, i.e. increased by 4 per cent year on year.
The number of cash-acceptance transactions at cash-in ATMs increased by 14 per cent as compared to the data of 30 June 2014, and the number of cash-acceptance transactions at the bank's sub-branches decreased by 23 per cent over the same period.
Over a year, there was a rise in the share of AB SEB bankas in Lithuania customers’ payments by card as against payments in cash – as at 30 June 2015, this ratio was 34 per cent, which means that out of the total amount of money spent by SEB customers in Lithuania paying by card and in cash, 34 per cent were paid by card. As at 30 June 2014, this ratio was 31 per cent.
Over a relevant period, an increase in the turnover of payment cards was 6 per cent, and the number of POS terminal increased by 11 per cent.
At the close of Q1 2015, AB SEB bankas had 43 customer service branches all over Lithuania. SEB customers have access to Lithuania’s largest ATMs network that includes ATMs of SEB and DNB banks, i.e. 540 ATMs.
