Announcement of Q1 2019 operating result of SEB Bank Group in Lithuania

In Q1 2019, net value of the loan and leasing portfolio of the SEB Bank Group increased by 10 per cent, i.e. up to EUR 6.3 billion. SEB Bank’s deposit portfolio, including deposits of financial institutions, increased by 21 per cent and stood at EUR 6.4 billion.

Comment by Raimondas Kvedaras, Chairman of the Management Board and President of SEB Bank
Although the development of Lithuania’s major export partners was slower, in Q1 2019 our country’s economic growth retained its fast and balanced tempo. Growth in households income was way faster compared to that of the price level, therefore, there was an improvement in the financial situation of private individuals – over Q1 2019, deposits of private individuals grew by 15 per cent. Good economic situation also strengthened expectations about the future, which fact, in its turn also strengthened growth in consumer spending as well as higher activity in the real estate market. The total amount issued this year in mortgage, consumer and other loans to private individuals was EUR 101 million, which is a 3 per cent increase year-on-year (EUR 98 million yoy).

At the beginning of the year, local businesses were also actively borrowing – over Q1 2019, the amount issued by SEB Bank to corporate customers in new loans was EUR 525 million, which is a 49 per cent increased year-on-year (excluding one major current-year deal, growth would be 21 per cent). At the beginning of the year, the main borrowers were trade, industry, service (including transport) and real estate sector companies. The share of loans issued to them made 74 per cent of the total amount of corporate lending in Q1 2019. Companies invested in the upgrade and in strengthening their production capacity and obtained credits for their working capital.

Financial standing of local companies remains strong, however, they continue to be forced to search for solutions with the aim to increase labour efficiency, as average labour costs in the country are growing at almost double-digit pace. So far, Hard Brexit scenario and its adverse effects on the European Union and at the same time on Lithuania have been avoided. Anyway, the continued uncertainty about the UK’s further actions for the exit from the EU remains a worrying factor for businesses rendering them more cautious in planning their investments.

Key data of AB SEB bankas Group in Lithuania
• Over Q1 2019, unaudited net profit earned by SEB Bank was EUR 29.1 million (Q1 2018 – EUR 23.4 million), and that earned by the SEB Bank Group was EUR 27.2 million (Q1 2018 – EUR 24.0 million)
• SEB Bank Group’s Q1 2019 income was EUR 53.2 million (EUR 46.5 million yoy).
• As at 31 March 2019, SEB Bank Group’s equity was worth EUR 693 million (EUR 689 million yoy).
• As at 31 March 2019, SEB Bank Group’s assets totalled EUR 7.9 billion (EUR 7.1 billion yoy).
• As at 31 March 2019, SEB Bank’s deposit portfolio was EUR 6.4 billion (EUR 5.3 billion yoy).
• As at 31 March 2019, net worth of SEB Bank Group’s credit and lease portfolio totalled EUR 6.3 billion (EUR 5.8 billion yoy). Credit quality remained good.
• Over Q1 2019, contributions to the Lithuanian state budget by the SEB Group companies operating in Lithuania were more than EUR 12 million paid in different taxes.
• As at the end of Q1 2019, the number of active users of SEB Internet Bank was nearly 560 thousand. More than 250 thousand customers were users of SEB mobile app, nearly 150 thousand were users of Smart-ID app.
• Year-on-year increase in the number of payments by cards issued by SEB Bank was 16 per cent. As compared to cash, at the end of Q1 2019 payments by card made nearly 48 per cent of the value of all payments by card, 45 per cent yoy.
• More than 90 per cent of SEB Bank network POS terminals at the points of sale are already supplied with contactless payment functionality. Also, all Mastercard payment cards issued by SEB Bank are already contactless.
• Over Q1 2019, nearly 4 thousand remote advisory meetings for private and corporate customers were held.
• As at the end of Q1 2019, SEB Bank had 29 customer service units in Lithuania, most of them operating as financial advisory units, offering self-service areas for customers to execute their daily cash transactions.
• SEB Bank customers had a possibility to withdraw cash, free of charge, within a relevant cash withdrawal limit pertaining to their service plan under the same terms and conditions (i.e. without paying SEB Bank’s cash withdrawal fee) at any ATM in Lithuania or globally. Also, at another 1,200 points of sale they could withdraw cash when paying by card for their purchases (cash withdrawal in such a way is included in the cash withdrawal limit)