OREANDA-NEWS  On 25 February was announced, that SEB in Lithuania reported net profit 2008. SEB Bank Group’s performance in Lithuania in 2008:

According to preliminary data, unaudited net profit earned over the year 2008 by SEB Bank Group, was LTL 257.8 million, which is 49.4 per cent lower than in 2007, when the SEB Bank Group’s audited net profit was LTL 509.7 million. The Group’s year 2007 profit included a profit of LTL 86.6 million from sales of the Group’s real estate property and shares of SEB Bank Group’s company SEB VB Nekilnojamasis Turtas in 2007. The year 2008 SEB Bank’s unaudited net profit was LTL 347.7 million, which is 29.9 per cent lower compared to 2007, when the SEB Bank’s audited net profit was LTL 496.1 million.

During 2008 the Group’s assets increased by LTL 1.5 billion or 5.5 per cent and at the end of December were LTL 29.5 billion.

Taking a more conservative approach towards customer risk, during 2008 SEB in Lithuania made provisions for loans at LTL 256.6 million (in 2007 they were LTL 40.6 million).

SEB Bank Group’s cost/income ratio was 40.9 and return on equity (ROE) was 11.8 per cent.

At the close of the year, SEB ranked number one in Lithuania in terms of credit and leasing portfolio, which last year increased by 13 per cent, up to LTL 24.5 billion. Over a year, SEB Bank Group’s deposit portfolio shrank by 5.6 per cent, down to LTL 10.2 billion. SEB Bank Group’s total savings and investment portfolio, including deposits and issued securities, life insurance as well as investment and pension funds dropped, year on year, by 4.4 per cent, or by LTL 0.6 billion, and was LTL 12.5 billion.
Annual increase in the number customers using our Internet banking system was 12.1 per cent to reach 805 thousand. The number of transfers made via the Internet over a year was 26.6 per cent higher than a year ago.

The number of payment cards issued by SEB in Lithuania increased by 7 per cent year on year, up to 1.32 million. During a year, the average monthly turnover via payment card accounts reached LTL 1.39 billion, which is by 6 per cent higher than over a relevant period a year ago.

Last year, SEB opened 5 new customer outlets in Lithuania and expanded its ATM network up to 329 ATMs: after joining with DnBNORD bank ATM network, SEB offers its customers access to the largest ATM network in Lithuania, i.e. 503 ATMs in 48 towns and cities. Since the end of 2007, SEB’s customer base increased by 6.4 per cent, or 68 thousand, up to 1 million 127 thousand in Lithuania.

Comment of Audrius Ziugzda, CEO of SEB Bank in Lithuania:

Lithuanian economic development last year was at its lowest since 1999 – it was impeded by low domestic demand and strained situation in the external markets. The general market trends were also reflected in the results of commercial banks, as their total profit earned decreased compared to 2007.

Facing the context of the country’s economic slow-down and the global financial crisis, profitability of SEB in Lithuania was good in 2008. It was a successful for our bank; its growth rate reflected the country’s overall economic situation: business volume growth was mainly in the first three quarters of the year. Considering the negative aspects of Lithuania’s short-term economic development and forecasted economy decline, we have taken a more conservative approach towards customer risk. Therefore, we have decided to form a larger portfolio in terms of provisions for loan losses, which has resulted in lower profit.

Already this year our country’s economy will face a setback that is likely to persist until 2011. Such macroeconomic conditions will aggravate the activities of banks in the near future. The position of our bank group in Lithuania is strong, and we are prepared to help our customers to withstand the current period of economy decline.