|Emitents||Citadele banka, AS (2138009Y59EAR7H1UO97)|
|Veids||2.2. Iekšējā informācija|
Citadele Group announced its results for the fourth quarter of 2018, showing a solid performance in all core business segments of the Group with further implementation of new and improved daily banking services and innovative solutions for our customers.
Overall Citadele Group’s performance in Q4 of 2018 was primarily driven by increased net interest income from the Baltic loan portfolio growth and increased business activities in Private and SME segments, as well as some improvements in portfolio margins and lower interest expense. The Group’s net interest income increased by 10% compared to 2017, reaching EUR 82.6 million in 2018 (EUR 21.5 million in Q4 2018). Despite continued pressure on commission and fee income, net profit in Q4 reached EUR 10.1 million. YTD result was EUR 34.8 million, which correspondingly translates into 12.3% annual return on equity. Net profit increased by 11% compared to adjusted figures in 2017.
Guntis Beļavskis, CEO, Citadele, commented: “In the last quarter of 2018, we remained our focus on delivering innovative products and services to our retail and business clients in the region. To implement new solutions and offer clients convenient and exciting mobile payment services, Citadele has acquired 12.5% stake in SIA Mobilly. We have also successfully finalised Citadele bankas reorganisation, which will enable the quicker introduction of new digital banking services to our Lithuanian customers. In line with our lending strategy, we have focused on promoting the development of small and medium businesses. In 2018, Citadele Group’s net loan portfolio increased by 5% and new lending reached EUR 479 million.”
Loans to corporate and private clients
The total loan portfolio increased by EUR 65 million since 31 December 2017. New lending for the year reached EUR 479 million, with the Corporate portfolio seeing a healthy pipeline going into 2019. The loan portfolio for Private Customer and Small Business each grew by more than 10%. Total deposits decreased by 9% and constituted EUR 2,645 million at year end, in-line with the Group’s de-risking plan.
The Group strengthened its capital adequacy ratio in 2018, which increased to 20.1% as compared with 18.4% on 31 December 2017. Capital adequacy ratio as at 31 December 2018 includes profit for the year, inclusion of which is subject to Citadele taking a formal decision confirming the final profit for the year which is expected after completion of the audit of the annual report. The Group’s liquidity position remained strong, with LCR amounting to 259% and loan-to-deposit ratio at 53% as of period end.
AB “Citadele” bankas (Lithuania) legal status changed from subsidiary to branch
In 2018 Citadele decided to transform AB Citadele bankas (Lithuania) from a subsidiary to a branch and to migrate the Lithuanian core platform to Latvia. The decision was taken to ensure increased operational efficiency across the Group and allow Citadele to maximize its client offerings and service output across the Baltics. On 1 January 2019 all assets, liabilities and businesses were successfully transferred from AB Citadele bankas (via merger) to the Lithuanian branch of AS Citadele banka.
Citadele Bank and Mobilly join forces to offer clients new mobile payment solutions
Citadele banka has acquired 12.5% share in SIA Mobilly, a company offering mobile payments for goods and services in Latvia. The partnership will allow Citadele and Mobilly to implement new innovations and offer clients convenient and exciting mobile payment services.
Citadele Group’s shareholders are the European Bank for Reconstruction and Development and an international consortium of investors with global experience in the banking sector. The Citadele Group is managed from Latvia with subsidiaries and branches in Latvia, Lithuania, Estonia and Switzerland. Citadele provides transactions and card payments, loans, deposits, investments, asset management and leasing services, as well as a range of exclusive and unique products. In 2019 one of the leading customer service evaluation and improvement companies in Central and Eastern Europe, Dive GROUP, acknowledged Citadele as the bank with the best customer service in Latvia, and second best in Lithuania.
Head of Marketing and Corporate Communications Division
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Head of Investor Relations
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Santa Daniela Kanaška
Investor relations specialist
Telephone: +371 67010991