OREANDA-NEWS.July 25, 2013. “Attraction of private capital will enable Citadele to continue successfully pursuing the bank’s strategy in the local market, especially in granting funds to small and medium enterprises, and open up new development opportunities,” explains Klavs Vasks, Chairman of the Supervisory Board of Citadele Bank, as he comments the decision of the Cabinet of Ministers of Latvia adopted today regarding the engagement of a highly professional international investment bank the task of which will be to determine the best model for attracting investors to Citadele Bank.

“Citadele's business results for 2012 and prognoses for the first half of 2013 clearly show that the bank has reached its optimum business return considering the provisions stated in the restructuring plan by the EC. In order to continue developing the bank as the most valuable local financial group in the Baltic States, it is necessary to attract private capital and work as a completely independent market player,” points out K. Vasks.

He emphasizes that the process of attracting one or several investors will have no impact on the bank's activity. Citadele will continue operating and developing, and it will carry on providing services to retail clients as well as enterprises and institutions; it will also proceed with its activity in private capital management sector.

“We highly appreciate the aid we received from the state and the society for securing the bank’s operations and the financial stability of the state. The bank has developed to such a point that it has actually completed the restructuring phase and it now needs a clearly defined future,” comments Klavs Vasks.

Since launching its activity in 2010, Citadele Bank has become a profitable concern in less than three years. The bank closed its books for 2012 with a profit of 5.5 million lats whereas the Citadele group completed 2012 with a profit of 9 million lats; the results for the bank and the group are better than for year 2011.

Currently, Citadele is the third largest bank in terms of the number of active clients, it also ranks third by the number of payment cards, and it is among the market leaders in the credit card market offering several products unique for the local market, such as American Express credit cards, Win-win cards and Maxi savings account and other products. Citadele ranks fourth in terms of the biggest network of ATMs, and it assumes the same position in terms of the network of branch offices. In the corporate lending segment, Citadele especially focuses on supporting small and medium enterprises by granting funds to Latvian manufacturing enterprises most actively. Citadele has invested a total of almost 674 million Lats (data as of 31/12/2012) in the Latvian economy in the shape of loan funds.

The investment of the state as a shareholder in Citadele Bank is currently 77.3 million Lats in the bank’s share capital, and the “Privatization Agency” has invested another 45.2 million Lats in the shape of a subordinated loan which Citadele pays interest for. In turn, the European Bank for Reconstruction and Development, being the second shareholder of Citadele, has invested 25.8 million Lats in the bank.

Since the bank launched its activity on 1 August 2010, it has repaid the state all term deposits ahead of the schedule for the total sum of 143.2 million Lats. Additionally, the bank has paid another 25 million of Lats, in the shape of interest and other payments, to the State Treasury.

Last year the Baltic Institute of Corporate Governance recognized Citadele Bank as the best governed state-owned company in the Baltic states. The prestigious European Business Awards competition nominated Citadele among the top 100 best enterprises in Europe, and the bank was awarded as one of the 10 best European companies in the “The Infosys Business of the Year Award” category (with turnover ranging from 26 – 150 million Euros); this award is conferred for rapid business development, strong financial performance and innovation. Euromoney, the global finance magazine, recognized Citadele the best local bank in Latvia whereas the international investment fund information and research company, Lipper, highly appraised several equity funds managed by Citadele's subsidiary “Citadele Asset Management” in terms of their risk-reward ratios. Citadele was also recognized the most popular Latvian brand in Lithuania.

Bank Citadele was founded on 30 July 2010 and launched its activity on 1 August 2010. 75% (minus one share) of Citadele Bank is possessed by SJSC “Privatization Agency” and 25% plus one share is possessed by the European Bank for Reconstruction and Development.

Citadele is a local Latvian bank which offers banking, financial and asset management services. Citadele group is represented in the Latvian market as well as in 9 other countries. Citadele Bank is the only collaboration partner of American Express® in Latvia and Lithuania who is entitled to issue American Express credit cards.

Key types of services offered by Citadele group: retail and corporate bank account services, payment cards, consumption loans and mortgage loans, term deposits and savings accounts, corporate lending, guarantees and letters or credit, leasing and factoring services, management of second and third level pension plans, third level closed pension funds for enterprises, life insurance with savings, private banking services and Concierge service, investment of funds in more than 20’000 various local and foreign investment funds.