OREANDA-NEWS. July 25, 2011. The implementation of the long-term strategy of SEB group in Latvia, including increasing the crediting of companies and individuals, as well as increasing the active daily use of the financial services of SEB bank has led to stable growth indicators in the first six months of this year by increasing the income and by achieving the growth of the credit portfolio after almost three years of decline, reported the press-centre of SEB Group.
 
Financial indicators from the first six months of 2011 of the SEB group in Latvia:

In the first six months of 2011, the income of SEB group in Latvia reached 38.7 million lats, which is 3% more than in the first six months of 2010.

Compared to the respective period in 2010, the expenses in the first six months of 2011 decreased by 9%.

Profit before savings in the first six months of 2011 reached 22.1 million lats, which is 14% more than in the first six months of 2010.

Operating profit in the first six months of 2011 was 41.6 million lats (in the first six months of 2010, the group operated with losses of 30.6 million lats).

The total amount of deposits in SEB bank as at 30 June 2011 reached 962.2 million lats.

The total for the credit portfolio as at 30 June 2011 was 2.1 billion lats.

The amount of new loans issued by SEB bank during the first six months of 2011 accounted for 157.1 million lats, and 103.5 million lats from this amount were issued during the second quarter.

Amount of capital and reserves as at 30 June 2011 was 270.2 million lats.

Amount of assets as at 30 June 2011 was 2.6 million lats.

As at 30 June 2011, capital adequacy indicator of SEB group in Latvia was 15.78%.

The liquidity ratio of SEB bank as at 30 June 2011 was 42.06%.

Evaluation by Ainars Ozols, President of SEB bank

"After the decrease  in credit portfolios during 9 successive quarters , which was caused by the fact that loans were paid back faster than the demand for new financing, in the second quarter of 2011 the credit portfolio of SEB bank demonstrated growth. The credit portfolio in the second quarter experienced growth due to the improvement of the financial situation of the company, thereby reducing the proportion of delayed loans in this segment, and SEB bank continues providing financing to Latvian companies so that they can implement their business plans.

The strategy of SEB bank in Latvia is to become the fundamental bank for our clients. We want our clients to find in SEB bank a solution to their every financial need, and by introducing, for instance, the Client Advantage Programme, we want to thank our clients for their loyalty – we truly appreciate that.

There are three important trends that I want to emphasise in the context of financial performance. Firstly, increased activity can be observed in the housing finance market – during the first six months of 2011, the amount of financing issued for the purchase or improvement of housing was 11.5 million lats, which is almost twice as much as in the respective period last year. Secondly, the demand for long-term savings keeps increasing – on 30 June, compared to the respective date last year, managed SEB life-insurance assets increased by 25%, and pension capital in SEB pension funds increased by 17%. Thirdly, the second quarter is marked by significant activity in the business sector – during those six months, nearly 2/3 of new financing to companies have been issued exactly in the second quarter. Submitted projects are well-considered and are part of their implementation."
 
Annika Falkengrena, president of SEB group, stated "Our clients have been more active and have decided on closer co-operation with SEB. Client activity on the group level has increased our profit by 7% despite the economic fluctuations. During the second quarter, the crediting of companies and individuals increased by 4%. The assets of SEB group are of good quality. Since the proportion of delayed loans has decreased, we have reduced the amount of savings from those loans."