Profits at SEB Group in Latvia Amounted to 12.7 Million Lats
OREANDA-NEWS. The improvement of customer service and the continued the work in introducting new services, the number of active customers increased by 2% within the consumer segment and by 4% in the corporate segment; revenue increased by 2% and costs decreased by 4% during the first 9 months of this year, as compared to the corresponding period the last year. Over the course of 9 months, SEB banka has issued financing in the amount of LVL 410.2 million,LVL 148 million of which was issued in the 3rd quarter. The volume of new-housing loans increased by 13% and the leases increased by 4% during the past 9 months this year as compared to the corresponding period of the year.
CEO of SEB banka Ainars Ozols:
As the year-end is approaching, there is an increasing focus upon ensuring asuccessful transition to the Euro. Back in July, we launched a website that was particularly to the introduction of Euro: eiro.seb.lv. We introduced the parallel display of prices in our pricelist and in the statements at Ibanka. On the 1st September we started to accept applications for frontload of euros and we are still encouraging customers to evaluate their need of receiving euro coins and notes on the very first dates of the New year. SEB Latvia in cooperation with the Baltic Restaurants created a euro cafe SEB Euro Cafe where everybody can obtain information on Euro on specially prepared tablet computers and materials available at the cafe. In September we held workshops for entrepreneurs for sharing experience of the introduction of Euro with our Estonian colleagues.
Simultaneously with preparations for the introduction of Euro, in the 3rd quarter we also provided service improvements for our customers, for example, we opened the fourth branch office at a shopping mall and this was the Shopping Centre Spice this time; at the end of September we were the first bank in Latvia launching the lifetime pension program that is important for all the beneficiaries of the 2nd pillar pensions who are about to retire and wish to have a possibility to leave their 2nd pillar pension capital as their heritage.
The share of 60 days overdues also started to decrease in the 3rd quarter and was down to 8.4% of the total credit portfolio that has been the lowest level since 2009, however, in 2013 we had to make additional provisions for some of the issued loans due to companies' performance. During 9 months provisions amounting to 17.7 million Lats were created and this has impacted the total financial result, because if the result before provisions is viewed, there has been an 8% increase in comparison to 9 months of the last year.”
Financial indices of SEB Group in Latvia in the 9 months of 2013:
The revenue of SEB Group in Latvia reached LVL 59.9 million, which is 2% above the level for the same 9 months of 2012;
Costs have decreased by 4% in comparison to the same 9 months of 2012 down to LVL 26.5 million;
Profits before provisions reached LVL 33.4 million, which is 8% above the level of the same 9 months of 2012;
Provisions of LVL 17.7 million were created during the 9 months of 2013 and LVL 4.8 million of this amount were accrued in the 3rd quarter.
Operating profits after taxes and provisions amounted to LVL 12.7 million;
The total amount of deposits at SEB banka as of 30 September 2013 reached LVL 1.3 billion, which is 2% above the level at the beginning of the year and 13% above the level at the end of 2012;
The total loan portfolio as of 30 September 2013 amounted to LVL 2.05 billion, which is 1% above the level at the beginning of the year and 4.1% below the level at the end of September 2012;
The amount of new loans issued at SEB banka during the 9 months of 2013 was LVL 410.2 million;
Capital and reserves as of 30 September 2013 amounted to LVL 300.5 million;
Assets as of 30 September 2013 amounted to LVL 2.75 million;
The capital adequacy ratio of SEB Group in Latvia as of 30 September 2013 was 14.96%;
The liquidity ratio of SEB banka as of 30 September 2013 was 43.2%.
In the 3rd quarter of 2013, SEB banka in Latvia received several international as well as local awards and evaluations:
SEB banka was ranked 7th place in the Most Valuable Companies Top (created by the magazine “Kapitals” in cooperation with the “NASDAQ OMX Riga” Exchange, the investment banking company “Prudentia” and SIA “Lursoft IT”);
In the survey examining Baltic bank customers' satisfaction performed by EPSI Rating, SEB banka received the highest score in the corporate-customer segment and was awarded second place in the private- customer segment.
Global Finance recognised the Internet bank of SEB banka as the best Internet bank in Latvia within the category “Best Internet Banks in the Central and Eastern Europe in 2013”.
SEB's President and CEO Annika Falkengren: “During the third quarter, we saw increasing activity on the corporate side and despite a continued high level of economic uncertainty globally, the corporate community showed emerging optimism. As a corporate bank, we have responded to the improved business sentiment. Operating profit was 20 per cent higher than last year's third quarter, with a continued trend of increased revenues and lower costs. We continue to grow in our core areas, as well as to attract more customers. With our strong balance sheet, we can support corporate customers if the business cycle further improves. Our capital situation and liquidity resources have been further strengthened, which also creates resilience if the economy were to decline or market uncertainty to increase.”
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