Baltic region is strong
2022 has been a turbulent year for
our region. New risks have emerged,
including Russia's invasion of
Ukraine, an energy challenge in
Europe, the highest inflation in 25
years, and rapidly rising interest
rates. These factors have
disproportionately affected the Baltic
region, causing economic growth to
come to a near halt in the second half
of the year. Nevertheless, the Baltic
region has once again demonstrated
its resilience and ability to adapt to
changing circumstances. New
energy suppliers have been found,
natural gas consumption has
decreased by over 30%, and
investments in alternative energy
sources and green transition have
substantially increased. The labour
market in the Baltics remains robust,
with unemployment hovering near
pre-Covid-19 levels, supporting
consumption levels. In Europe
significant energy crisis has been
largely averted, with natural gas
prices plummeting over 75% from
their 2022 peaks. Inflation in the
Baltics appears to have peaked. The
Baltic countries are poised to benefit
from a significant increase in EU-
financed investments from the
recovery and resilience facility, which
will accelerate green investments in
the region and contribute to
economic recovery. Despite the
lingering risks and uncertainties,
such as the impact of rising interest
rates on the real estate market and
lending, the economic outlook for
2023 appears more positive than it
did in 6 months ago.
Innovations and development
In line with our digital strategy, 2022
displayed further progress in offering
improved services and products to
our customer base. KIWIE X smart
card for youth was successfully
launched, card production
outsourcing was finalized which
ensures swift card deliveries and
improved card service quality across
the Baltics. SME digital onboarding
improvements were introduced,
improving customers experience by
ensuring faster remote business
account opening. In Q4 digital
onboarding for SMEs was launched
in Estonia. Now simple 10-minute
process for SME account opening is
available across all Baltic countries,
including possibility to activate
temporary accounts. Consumer
lending digitalization was launched in
full in Estonia, now all three Baltic
countries have digital solution that
allows any customer to apply to the
product instantly. Bank has started
also Factoring product digitalization
with the new solution being launched
in Lithuania.
Klix, the bank’s e-commerce
checkout solution, exceeded 800
merchants, and 10 million
transactions were processed in 2022
with total value of EUR 336 million.
Bank with one of the best
customer service in the Baltics
Our commitment of providing the best
customer service enabled Citadele to
maintain the top position among
banks in the Baltics, according to the
annual mystery shopper survey
conducted by international customer
service evaluation company DIVE.
We are pleased that our efforts are
recognized by Dive and our
customers, and that our service has
earned the 1
st
place both in Latvia
and Lithuania and Top 3 in Estonia.
Growing client base
The bank continues to attract new
clients and we are proud that a record
number of active customers trust us
with their financial service needs –
reaching 374 thousand clients as of
31 December 2022, 4% growth year
over year. The number of active
Mobile App users was 235 thousand,
a 13% increase year over year.
EUR 1.2 billion issued in new
financing to Baltic private, SME
and corporate customers
We have continued to support the
business community with financing
for growth and expansion. New
financing to our customers reached
EUR 1,203 million in 2022, 8%
increase year over year. EUR 231
million were issued in Q4 2022.
The total loan book as of 31
December 2022 was EUR 2,966
million, 10% higher vs. the year-end
2021.
Overall, the financial standing of our
clients is reassuring, and portfolio
quality continued to improve and the
NPL ratio stood at 2.7% as of 31
December 2022, vs. 3.3% at the end
of 2021.
Strong financial results from
continued operations
Strong financial performance with a
growing income in both Q4 and FY
2022. In 12 months, 2022 operating
income reached EUR 168.2 million,
12% growth year over year. In Q4
operating income was EUR 46.4
million, 10% growth year over year.
Taking a prudent approach towards
more uncertain macroeconomic
outlook, the bank has made