SEB Bank Group’s operating profit over 3 quarters of 2015

21.10.2015 - 12:15

According to preliminary data, unaudited net profit earned over 3 quarters of 2015 by AB SEB bankas and AB SEB bankas Group was, respectively, EUR 50.6 million and EUR 46.8 million. The result has been calculated in accordance with the requirements set by relevant documents of the Bank of Lithuania and legal acts of the Republic of Lithuania. Over three quarters of 2014, unaudited profit earned by AB SEB bankas and AB SEB bankas Group was, respectively, EUR 62.7 million and EUR 63.6 million.

Comment by President of SEB Bank Raimondas Kvedaras

The country’s economy, despite external geopolitical factors, was able to maintain growth, future expectations of consumers and business strengthened. The bank's current-year income has remained under the impact of the change-over to the euro and low interest rates – its income from foreign exchange and payment transactions as well as from issued loans has been decreasing.

The country’s economic development this year has been stimulated by the recent increase in household consumption and domestic investments. This has determined a rise, first time within a seven-year period, in SEB bank’s total credit and leasing portfolio. Over a nine- month period, an increase in the net value amount issued in loans both to private individual and corporate customers has been 3 per cent. At the same time, the bank's new loans have soared by 23 per cent year-on-year, excluding one major transaction executed in 2014.

We continued advising small and medium enterprises (SMEs), which recently have been increasing investments in their development and other projects. An increase in new loans issued to SMEs within nine months of the current year has been as high as 36 per cent. It is a significant growth over several recent years, indicating that business potential is getting stronger. Among the most active recent borrowers are commercial, industrial and agricultural sector SMEs.

A pickup in the real estate market and credit interest rates at historic lows has determined a 1.6 per cent increase in gross value of the mortgage loans portfolio. Being advisory to our customers on residential property purchase issues, over nine months of the current year we have issued mortgage loans worth EUR 192 million, which is an EUR 42 increase as compared to the same period a year ago. The current recovery in mortgage lending may be partly attributed to the approach of November the 1st – the date when more rigorous Responsible Lending Regulations will take effect, however, over a long term, the demand for mortgage loans will be determined by an improvement in the expectations of the population regarding the country’s economic situation and income growth.

The total amount of deposits has increased, as compared to relevant three quarters of 2014, by nearly EUR 400 million, i.e. up to EUR 4.3 billion.

Our customers get increasingly accustomed to managing their simple daily financial matters on their own, via the Internet or on the screen of their smart phones. On the other hand, their need for quality professional financial advice at the bank is increasing – over nine months of the current year we have already had more than 43 thousand personal financial advisory meetings with our private customers.

We observe further change in the population’s habits managing their finances – within nine months of the current year, payments by card have soared to reach EUR 882 million, which is an 18 per cent increase as compared to a relevant period a year ago. For our part, we continued expanding the infrastructure of payment cards.

The role of banks is gradually changing, advice by professional financial specialists is getting more and more relevant, which serves as a proof of our choice to be the best financial adviser to private individual and corporate customers.

Key financial ratios of AB SEB bankas Group

As at 30 September 2015, AB SEB bankas Group’s equity was worth EUR 779 million (EUR 788 million yoy), i. e. decreased by 1 per cent.
As at 30 September 2015, AB SEB bankas Group’s assets were worth EUR 6.6 billion (EUR 6.8 billion yoy), i. e. decreased by 3 per cent.
Since 30 September 2014, an increase in AB SEB bankas’ deposit portfolio was 10 per cent, i. e. from EUR 3.9 billion to EUR 4.3 billion.
As at 30 September 2015, net worth of AB SEB bankas Group’s credit and leasing portfolio was EUR 4.9 billion (EUR 4.7 billion yoy), i. e. increased by 3 per cent.
AB SEB bankas Group’s income of the 3 quarters of 2015 was EUR 115.4 million (EUR 29.8 million yoy), i. e. decreased by 11 per cent, mainly as a result of the changeover to the euro.
The number of SEB Internet Bank users increased by 46 thousand and at the end of September 2015 was 1.2 million, i. e. increased by 4 per cent yoy.
The number of cash-acceptance transactions at cash-in ATMs increased by 11 per cent yoy, whereas that of cash-acceptance transactions at the bank units dropped by 25 per cent over the same period.
Over a year, the share of payments by card by SEB Bank in Lithuania customers as compared to payments in cash, increased – as at 30 September 2015, relevant ratio was 34 per cent. It means that of all the funds that SEB customers spent paying by card and in cash, 34 per cent were paid by card. As at 30 September 2014, relevant ratio was 31 per cent.
Over a year, an increase in payments by card was 18 per cent, and the number of POS terminal increased by 12 per cent.
At the end of September 2015, AB SEB bankas had 43 customer service sub-branches all over Lithuania, of this number – 7 financial advice units. SEB customers are offered access to the largest ATM network in Lithuania that includes ATMs of both SEB and DNB Bank, i. e. 541 ATMs.