OREANDA-NEWS.  July 20, 2012. According to preliminary data, unaudited net profit earned over the first half-year of the year 2012 by AB SEB bankas is LTL 59.5 million (EUR 17.2 million) and by AB SEB bankas Group is LTL 80.4 million (EUR 23.3 million), reported the press-centre of SEB Bank.

The result has been calculated in accordance with the requirements set by the acts of the Bank of Lithuania and legal acts of the Republic of Lithuania. Over the first half-year of the year 2011, unaudited net profit earned by AB SEB bankas totaled LTL 199.5 million (EUR 57.8 million) and by the Bank’s Group – LTL 356.5 million (EUR 103.2 million).

AB SEB banko grupe Lietuvoje sudaro AB SEB bankas, UAB „SEB investiciju valdymas“, AB „SEB lizingas“ ir UAB „SEB Venture Capital“.

Comment by President of SEB Bank in Lithuania Raimondas Kvedaras:
The markets are still characterised by uncertainty regarding the future in the Eurozone, whereas Lithuania’s economy has so far been able to resist the external challenges and has been availing of opportunities offered by exports and the internal market: during the 1st half-year, businesses were increasing their production efficiency and maintained their competitive edge. Thus, we have possibilities for sustainable development of our banking business by financing promising projects of corporate customers and by issuing loans to private individuals at the same time remaining on the alert remembering the lessons of the crisis learnt.

During the 1st half-year of the current year, as against a relevant period a year ago, SEB Bank Group’s Lithuania operating profit before provisions was increasing, income was growing, and expenses remained at the same level.

Within the first six months we issued new loans to corporate and private individual customers worth nearly LTL 2 billion: an increase in new issued loans (extended agreements excluded) was 47 per cent. Credit portfolio quality was improving further and the share of past dues was decreasing.

We have maintained a high level of our customer trust in our bank: over 2Q 2012, as compared to the 1Q 2012, customer credit portfolio was increasing further – from LTL 12 billion up to LTL 12.3 billion.

As a response to changes in customer needs, during the 1st half-year of the current year we were actively encouraging the development of self-service. We continue operating adhering to our strategy to be the home bank for our customers that select us as their main financial partner. This year, we will have special focus on our operational efficiency and costs control.

SEB Bank Group’s in Lithuania key financial data:
As at 30 June 2012, SEB Bank Group’s assets were worth LTL 24.3 billion, which is a 5 per cent increase (LTL 23.1 billion YOY).

As at 30 June 2012, SEB Bank Group’s equity was worth LTL 2.4 billion (LTL 2.2 billion YOY), which is an 8.7 per cent increase.

Within the period from 31 December 2011 till 30 June 2012, an increase in the Bank's deposit portfolio was LTL 12.2 billion, i.e. 1 per cent.

Since the beginning of the year, an increase in SEB Bank’s issued new loans (extended loans excluded) was 47 per cent, up to nearly LTL 1 billion 939 million, as compared to the 1st half-year of 2011.

As of 30 June 2012, SEB Bank Group’s loans and leasing portfolio totalled LTL 18.5 billion, which is a 1 per cent decrease (LTL 18.6 billion YOY).

As against the 1st half-year of 2011, SEB Bank Group’s income increased by 1 per cent and was LTL 265.4 million (as of 30 June 2011, it was LTL 261.9 million).

As of 30 June 2012, SEB Bank Group’s liquidity ratio was 34.9 per cent (the requirement being 30 per cent).

Over the 1st half-year of 2012, the number of registered users of SEB Bank’s Internet Banking System increased up to 1.044 million, or by 7.6 per cent (970 thousand YOY).

Over the 1st half-year of 2012, the number of users of the bank's services by mobile phone increased up to 474 thousand, or by 16.1 per cent (408 thousand YOY).

Over a relevant period, an increase in payment transactions via the Internet was 15.5 per cent, and since 30 June 2011 an increase in the turnover in payment card accounts was 13 per cent.

As at 30 June 2011, the bank had 48 customer service sub-branches all over Lithuania, and SEB Bank customers may use an ATMs network which is the largest one in Lithuania and includes ATMs of SEB and DNB, i.e. 546 ATMs in Lithuanian cities and towns.

SEB: Second quarter of 2012: Operating profit SEK 3,951m (4,200)

SEB Group’s key financial data:
Profit before credit losses amounted to SEK 4.2bn (SEK 3.6bn the second quarter 2011).
Operating income amounted to SEK 9.9bn, up 4 per cent compared to the second quarter 2011. Operating expenses, at SEK 5.7bn, were 3 per cent lower than the second quarter 2011.
Provisions for credit losses amounted to SEK 269m.
Net profit amounted to SEK 3.0bn (3.4 second quarter 2011).
The liquidity coverage ratio was 108 per cent, the core liquidity reserve amounted to SEK 339bn and the total liquid resources were SEK 537bn. The core Tier 1 capital ratio was 15.3 per cent (13.7 at year-end) and the Tier 1 capital ratio was 17.5 per cent (15.9 at year-end).

Comment by President of SEB Annika Falkengren:
"SEB's relationship banking model has supported a high and stable level of earnings in a quarter marked by a challenging environment. Putting the customer's perspective front and centre yields real results," says Annika Falkengren, SEB's President and CEO, commenting on the second quarter 2012 result.

"In Sweden more customers choose SEB as their home bank. The number of SME home bank customers has increased by 20 per cent over the last two years and it is encouraging that one in four of new companies in Sweden choose SEB as their bank. At the same time the number of private home bank customers has increased by almost 30,000."

"Our expansion in the Nordic countries and Germany to support large corporates and institutions has provided a strong platform for future growth. Our existing customers do more business with us while we have attracted many new customers."

"Together with our deleveraging and risk mitigating actions over the last years, earnings volatility has been substantially reduced. We have divested non-core businesses such as the retail operations in Germany and Ukraine and increased cost efficiency. We have built a strong balance sheet in terms of capital, liquidity reserves, funding structure and asset quality."