Highlights

• Strong financial performance with net profit reaching EUR 55.0 million in 2021 and 14.9% return on equity. Net profit in Q4 2021 was EUR 10.3 million.
• The number of active customers continued to grow and reached an all-time high of 361 thousand clients as of 31 December 2021, 11% growth y-o-y.
• In 2021 EUR 1.1 billion in new financing was issued  to private, SME, corporate and leasing customers, 2.3 times higher than 2020. New financing in Q4 reached EUR 293 million, 9% growth q-o-q.
• Baltic deposits continued to increase by EUR 363 million in 2021, or 11% growth vs. year-end 2020.
• The Bank continues to operate on the back of  prudent capital and liquidity ratios. Group’s CAR (including period’s result) was 18.9% and LCR of 207% as of 31 December 2021.
• Citadele has completed the issuance of EUR 200 million of senior unsecured preferred bonds in November 2021, rated Baa3 by Moody’s. The purpose of the issuance is to meet Minimum Requirement for own funds and Eligible Liabilities (MREL).
• EUR 40 million bonds were issued  under the Fourth Unsecured Subordinated Bonds Programme and listed on the Baltic Bond List of Nasdaq Riga in December 2021.

“The geo-political situation today has dramatically changed since we ended 2021 and today our thoughts are with the citizens of Ukraine. In the Baltic's we feel an emotional impact and we are closely following the developments and are taking action to the best of our abilities to care for our employees and our customers. Our 2021 results are important and we are proud to deliver on many dimensions but in the light of the recent events we are humble," says Johan Åkerblom, Citadele CEO.

Overall business sentiment in Q4 2021 was positive. Number of active customers reached 361 thousand clients as of 31 December 2021, 11% growth year over year. The number of active Mobile App users reached 207 thousand, a 41% increase y-o-y.

EUR 1.1 billion issued in new financing to Baltic private, SME, corporate and leasing customers

New financing to our customers reached a record high of EUR 1.1 billion in 12 months 2021, 2.3 times higher than in 2020. EUR 293 million were issued in Q4 2021, 9% growth q-o-q.

The total loan book as of 31 December 2021 was EUR 2,702 million, 75% higher vs. year end 2020. Portfolio growth was impacted by acquisition of the SIA UniCredit Leasing (rebranded to SIA Citadele Leasing) at the beginning of year. Portfolio quality continued to improve and the NPL ratio stood at 3.3% as of 31 December 2021, vs. 3.5% at the end of 2020.

Strong financial results

Strong financial performance with net profit reaching EUR 55.0 million in 2021, which translated into 14.9% return on equity. Net profit in Q4 was EUR 10.3 million with Q4 ROE of 10.5%.

Citadele continues to operate with adequate capital and liquidity ratios: CAR (including period’s result) of 18.9% and LCR of 207% as of 31 December 2021.

Customer deposits reached EUR 3,814 million as of 31 December 2021, increase of 4% compared to the end of 2020. Baltic deposits continued to increase by EUR 363 million in 2021, or 11% growth vs. year-end 2020. Loan-to-deposit ratio was 71% as of 31 December 2021, compared to 42% as of year-end 2020.

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. Citadele was announced as the bank with the best customer service in Latvia for the seventh time and was in TOP 3 in Lithuania and Estonia.

Citadele raises funds in the international and local financial markets

Citadele completed issuance of EUR 200 million of senior unsecured preferred bonds, rated Baa3 by Moody’s in November 2021. The purpose of the issuance is to meet Minimum Requirement for own funds and Eligible Liabilities (MREL). In December Citadele completed an oversubscribed issuance of EUR 40 million bonds under the Fourth Unsecured Subordinated Bonds Programme. The bonds were issued with 10Y maturity, with issuer’s optional redemption date after five years and with fixed interest rate of 5% per annum. The bonds are listed on the Baltic Bond List of Nasdaq Riga. These deals are a testimony of our improved business quality which facilitates placement capabilities both in and outside the Baltic market.

Citadele has agreed to sell its Swiss subsidiary

AS Citadele banka has entered into a binding agreement with Trusted Novus Bank Limited regarding the sale of its Swiss subsidiary - Kaleido Privatbank AG. Trusted Novus Bank Limited will acquire 100% of Kaleido Privatbank AG. The closing of the acquisition is expected by year end 2022, subject to regulatory approvals. The sale of Kaleido is a further step focusing on Citadele’s core activities in the Baltics to support the local economies.

About Citadele Bank

Citadele’s mission is to modernise the banking sector and offer more opportunities to clients and businesses throughout the Baltics.

Alongside traditional banking services, Citadele offers its clients a range of services based on next-generation financial technology, including, among other things, a modern mobile banking app, contactless and instant payments, modern client onboarding practices and technologically-enabled best-in-class customer service.

Citadele is the second largest bank in Latvia by assets. The Citadele Group is managed from Latvia. Its subsidiaries and branches operate in Latvia, Lithuania and Estonia.

         Kristīne Mennika
         Head of Corporate Communications
         Phone: +371 26528533
         Email: Kristine.Mennika@citadele.lv
         
         Ilona Frīdmane
         Head of Investor Relations
         Phone: +371 29483327
         Email: IR@citadele.lv