OREANDA-NEWS. November 08, 2010. Operating profit for SEB Group in the third quarter – 275.76 million LVL, reported the press-centre of SEB Group.

Operating profit for SEB in Latvia in the third quarter – 13.6 million LVL

Results of SEB in Latvia for the first nine months of 2010 – loss of 16.96 million LVL
 
Third quarter 3, 2010 financial results of SEB Group in Latvia are indicative of moderate economic stabilisation and increased business activity. The financial results of SEB in Latvia in the reporting period are positive in terms of increased client deposits in accumulative insurance and pension fund and the volume of loans issued has increased by 62% compared to the second quarter of 2010.

Financial Indicators of the SEB Group in Latvia
Operating profit for SEB in Latvia in the third quarter amounted to 13.6 million LVL

Results of SEB in Latvia for the first nine months of 2010 – loss of 16.96 million LVL

Operating income in the second quarter amounted to 18.8 million LVL which is a 6% increase over the second quarter.

Nine months' revenue amounts to 56.8 million LVL

Total loan portfolio as of 30 September amounts to 2.29 billion LVL

Capital and reserves as of 30 September amounted to 204.8 million LVL

Total assets as of 30 September amounted to 2.76 billion LVL

Capital adequacy ratio of SEB in Latvia as of 30 September was 12.66% which is in excess of the minimum requirement set by the financial market regulator

Liquidity ratio of SEB as of 30 September was 53.39%

The president of SEB bank, Ainars Ozols, evaluates third quarter results and the development of the economy as follows:

"The first signs of stabilisation and slow, yet gradual, improvement of the economy have supported the operating results of the SEB Group in Latvia and the bank has generated profit in the third quarter. Retail banking shows positive trends with respect to the further development of savings. This is supported by the fact that SEB Group companies in Latvia – SEB Life Insurance and SEB Pension Fund are market leaders in savings and the number of their clients is increasing, and the investment fund portfolio managed by SEB Wealth Management is growing. During the third quarter, the volume of deposits made through Ibanka increased thus representing 22% of the total amount of savings, the highest rate since 2009, which proves that the Internet is becoming more and more crucial for addressing one's financial needs on a daily basis. The range of SEB investment services in Latvia has been highly approved by our clients and the organisations that evaluate servicing.

In the third quarter, SEB Bank granted new financing to private individuals and companies amounting to more than 184 million LVL, while the amount of financing granted during the nine months of 2010 was 274 million LVL. Compared to the second quarter of 2010, the volume of loans issued to companies in the third quarter tripled and private individuals were granted 34% more funds. Also in  the third quarter, SEB Bank financed companies operating in retail, agriculture, wood processing and other industries, for example, publishing company SIA Dizaina un poligrafijas nams, SIA Armat, the House of Riga Latvian Society, agricultural group Antini, construction company Re&Re.

Looking at the Latvian economy today, one may say that the worst is over and what we see today is a gradual stabilisation and certain industries are showing growth, particularly the ones connected with export. Recovery for many companies is secured by improved competitive power on international markets which contributes to increased revenues and lower debt. Unemployment has been on the decline in recent months, retail turnovers have grown and so has export and those are facts signalling that the mood of consumers and the business community may improve. As forecasted, our allowances for doubtful loans that were recognised based on the Bank's risk management and the potential scenarios for business development are now being gradually released. Allowances are recognised based on potential risks. Allowances are being released rather gradually because some risks still remain. The direction and pace of development of the Latvian economy is largely dependent on the new government and its economic and tax policy."

"It is yet clearer today that the turning point in the Baltic economies has occurred. The political determination of the region to improve its economy and the SEB Bank's policy in support of the borrowers has decreased the amount of bad loans in the bank's loan portfolio. I am delighted that the SEB Group in the Baltics has generated a profit in the third quarter. However, the economic imbalance in the world hinders wider and more rapid recovery and that remains a challenge for the upcoming quarters," says Annika Falkengren, President and Chairman of the Board of SEB Group.

SEB group is a Northern European financial institution that provides banking services to 400 thousand companies and institutional customers and five million private persons in Scandinavia, the Baltic States, Germany, Poland, Ukraine and Russia and is internationally represented in 10 other countries. SEB group employs more than 20 000 employees. For more about the SEB group: www.sebgroup.com.