OREANDA-NEWS. February 14, 2011. Strengthening the cooperation with existing clients and the acquisition of new clients for the SEB Group companies in Latvia, as well as targeted efforts in extending our range of financial services form the basis for the stable growth of SEB Group in Latvia in 2010. In 2010, SEB bank issued funds in excess of LVL 349 million in order to finance business development and to address the medium and long-term needs of individuals. Whereas, the amount of long term savings entrusted to SEB Life insurance and SEB Pension fund amounted to LVL 100 million, testifying to the fact that both individuals and companies in Latvia choose SEB to safeguard their long-term savings, reported the press-centre of SEB Bank.
 
Financial indicators for the SEB Group in Latvia in 2010

The 2010 profit for SEB Group in Latvia amounted to LVL 5.77 million (the result for 2009 was a loss of LVL 128.9 million)

Gross profit or profit before tax and provisions in 2010 amounted to LVL 36.41 million (2009: LVL 64.01 million)

The volume of clients' deposits as at 31 December was LVL 1 million, which is a 2% increase over 12 months.

The total loan portfolio as of 31 December amounted to LVL 2.19 billion, representing an 11% increase over 12 months.

Operating income in 2010 amounted to LVL 77.65 million, and fourth quarter income was LVL 20.87 million, an 11% increase over that of the third quarter.

Capital and reserves as of 31 December amounted to LVL 227.89 million

Total assets as of 31 December amounted to LVL 2.72 billion

The capital adequacy ratio of SEB Group in Latvia as of 31 December was 16.09%, which is significantly above the minimum requirement set by the financial market regulator

The liquidity ratio of SEB Bank as of 31 December was 50.08%

CEO of SEB in Latvia Ainars Ozols:

"The Latvian economy last year picked up sooner than was forecasted at the end of 2009. Businesses showed commitment and a fighting spirit to combat the recession. It was the businesses, and their ability to adapt and to seek new business opportunities outside Latvia, that promoted the improvement of manufacturing and the fact is that gross domestic product showed early signs of recovery following a steep plummet. These positive developments have a direct effect on the results of SEB Group in Latvia.

Last year we were one of the most important lenders and we issued loans to companies and households in excess of LVL 349 million. Of all new loans issued, 90% were granted to companies and 10% to households. The demand for loans increased during the second half of the year, when the amount of loans issued to companies in the fourth quarter grew by double of that in the first quarter. Processing, agriculture, retail trade, wood processing, metal processing, transport and energy remain the top supported industries.

Despite lower incomes, in 2010 long-term savings with SEB Life insurance and the SEB Pension fund in total grew by 25% and the actual amount of savings entrusted by clients at the end of 2010 was as high as LVL 100 million. Client interest in deposits is what helped the Lat Reserve Fund, managed by SEB, to retain a stable position as the largest investment fund registered in Latvia also in 2010, with total assets of LVL 67.6 million.

All year long we also worked diligently on the development of electronic services at SEB Bank. We have made significant improvements to our internet bank, Ibanka, and we are pleased that it is appreciated both by our clients and industry specialists. In the professional study entitled Baltic E-Banking Report 2010 conducted by Metasite Business Solutions SEB Ibanka was named the best internet bank in Latvia in terms of functionality.

In 2010, we received a number of international awards that testify to the achievements of SEB bank in terms of both the development of our services and cooperation with our clients. We are particularly proud of our local achievements that were appreciated by business people, individuals, organisations and opinion leaders. SEB received the highest assessment in the TRI*MTM corporate reputation survey conducted by TNS Latvia among banks in Latvia. Our goal for 2011 as well is to maintain Latvian individuals' and companies' perception of SEB Bank as a bank afforded the highest level of trust in the financial sector of Latvia. It is our priority to provide banking services of the highest quality and benefit and to increase the number of individuals and companies who use SEB Bank as their home bank. Also this year, we will continue granting funds for business development and purchase of homes to clients whose present level of income and indebtedness permits them to assume new liabilities. Being a socially responsible company, in 2011 we will continue supporting various social initiatives in the area of education, culture and sports."

President and CEO of SEB Group, Annika Falkengren, said "The results of 2010 clearly show that the activity of business clients increased significantly by the end of the year and it is the stabilisation of business that improved the quality of assets in the Baltics. Our goal to be a long-term cooperation partner for our clients lays the groundwork for a successful cooperation in the future as well. We are confident that we have met all preconditions necessary to strengthen our relationship with the clients."