OREANDA-NEWS. February 16, 2010. According to preliminary data, during the year 2009 SEB bank group in Lithuania earned LTL 191.3 million operating profit before taxes, provisions and the costs of the write-off of one-off intangible assets (goodwill), reported the press-centre of SEB.

Losses after provisions against possible loan losses and goodwill incurred by the Bank in 2009 amounted to LTL 1427.5 million.  Unaudited net loss sustained by SEB Bank during the year 2009 is LTL 1546.2 million. The bank and the bank group’s result includes the costs of the write-off of one-off intangible assets (goodwill) amounting LTL 169.5 million, that occurred upon merging Bank Hermis in the year 2000. The result has been calculated in accordance with the requirements of the Bank of Lithuania and Legal acts of the Republics of Lithuania.

Taking a conservative approach towards customer risk, during 2009 the SEB Bank Group Lithuania formed provisions for loans at LTL 1733.3 million (LTL 256.6 million during 2008).

As compared to the year 2008, assets of SEB Lithuania decreased, and at the end of 2009 were worth LTL 27 billion (29.5 in the end of 2008).

Credit loss level of SEB Bank at the end of 2009  was 9.8 per cent. (1.45 per cent at the end of 2008).

As of 31 December 2009, SEB Bank’s capital adequacy ratio, calculated in accordance with the requirements of the Bank of Lithuania, was 12.94 per cent (minimal requirement, set by the Bank of Lithuania is 8 per cent).

Operating expences (excluding operating expences for bank’s branches network transformation) amounting LTL 329.3 million during the year 2009 decreased by 11 per cent compared to the same period of 2008 (LTL 369.8 million).

At the close of 2009, SEB ranked number one in Lithuania in terms of credit and leasing portfolio – LTL 19.7 billion – which over a year decreased by 20 per cent (LTL 24.5 billion as of 31 December 2008). The SEB Bank Group’s total deposit and investment portfolio, including deposits and debt securities issued, life insurance as well as mutual funds and pension funds remained unchanged at the close of 2008, i.e. LTL 12.5 billion.

Annual increase in the number of customers at the end of  December 2009  using the Internet banking system was 10.6 per cent to reach 890 thousand (805 thousand at the end 2008). The number of transfers made via the Internet over a year increased by 34.8 per cent.

At the end of the 2009, SEB Bank Lithuania had 333 ATMs: including the joint ATM network with DnB NORD bank, SEB Bank customers are offered the largest ATM network in Lithuania, namely, 511 ATMs in 80 cities and towns.

SEB’s customer base increased by 47 thousand – from 1 million 127 thousand up to 1 million 174 thousand in Lithuania.

Comment by Raimondas Kvedaras, President of SEB Bank:
Year 2009 was extremely difficult for the whole Lithuanian economy, therefore, the economic decline made unavoidable corrections in terms of banking business volumes and financial results of banks. Last year, financial situation of most of companies and individuals deteriorated, consequently, crediting volume declined resulting in an obvious drop in the bank's income. The factors that mainly determined the negative operating result was higher risk of overdue loans and a revaluation in the value of collaterals for the loans already issued, forcing the bank to increase its specific provisions.

In 2009, the bank had a special focus on credit portfolio quality management, on optimisation and increasing of bank’s operational efficiency – these will remain the bank's key priorities in 2010 as well.

At the end of 2009, exports and industry showed the first signs of recovery, however, the domestic market remained depressed. At the beginning of 2010, economic recovery will still be fragile, therefore, the banking sector is likely to stabilise, but not yet improve markedly. More sustainable economic growth and more favourable conditions for banking business will appear no earlier than in the second half of 2010, however, the recovery will highly depend on the state’s further economic policy actions, especially regarding it’s ability to control the level of unemployment in the country.