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Loan portfolio of Citadele Bank increased by 22 % over a year
During the last 12 months, loan portfolio of Citadele Bank in Lithuania grew by 22 % and reached 266 million euros. In the business segment, the loan portfolio grew by 52.6 % and accounted for 124.9 million euros. Over the first 6 months of the year, Citadele Bank issued 3.5 million euros in consumer loans.
This growth reflects new strategy of Citadele of being an active lender to small and medium businesses in the Baltics, while taking a leader’s position in the personal loans sector in Lithuania and Latvia.
“At the beginning of this year, we started offering loans without collateral to small enterprises and farmers and introduced a tailored offer to companies that generate income through POS terminals. We can offer up to 20,000 euros in microloans for small businesses in just 24 hours. The market has responded positively and the number of clients has increased. Over the six months of 2016 we signed 442 microloan contracts with small enterprises for 7.3 million euros”, says Skirmantas Jareckas, Chairman of the Board and Head of Administration of Citadele Bank.
In the beginning of this year, Citadele Bank expanded its distribution network for consumer lending. This is another factor that contributed to the growth of the bank’s loan portfolio. In February, 2016, Citadele was the first bank in Lithuania to start providing services through PayPost, a financial services network of almost 200 kiosks managed by the Lietuvos paštas (Lithuania Post). Citadele consumer loans issued through PayPost accounts for almost 20 % of total consumer loans issued over the first six months.
At the end of June, bank deposit portfolio of Citadele Bank amounted to 335.9 million euros. Deposits of resident customers grew by 38.56 % over the last year.
During first half of 2016, Citadele Bank in Lithuania earned net profit of 1.32 million euros. At the end of June, the value of assets of Citadele Bank was 434 million euros and its capital adequacy ratio was 17.20 %.
In the beginning of 2016, Citadele received high recognition for its services in Lithuania and Latvia from Dive, a customer satisfaction research company carrying out Baltic banking service studies annually. In Lithuania, Citadele Bank was recognized as the best customer service provider among Lithuanian banks whereas in Latvia it was recognized as the runner-up in terms of customer service.
About Citadele Bank
Citadele Bank operates branches and customer service divisions in all the major cities of Lithuania: Vilnius, Kaunas, Klaipėda, Panevėžys, Šiauliai and Alytus. Citadele Bank along with its subsidiary UAB Citadele faktoringas ir lizingas is part of Citadele Group. Citadele Group is headquartered in Latvia, and its subsidiaries are located in Latvia, Lithuania, Estonia, and Switzerland. The vision of Citadele Group is to become the best financial service provider to retail clients and SMEs in the Baltic States. Citadele provides card payment, lending, deposit, investment, asset management and leasing services, and it offers a range of exclusive and unique products.
The main data of Citadele Group
Citadele Group had a profit of 25.4 million euros in the first half of the year, which was 70 % higher than during the same period of 2015. The sale of the share held by Citadele in Visa Europe to Visa Inc. for EUR 11.3 million has significantly contributed to increase in profit.
The Citadele Group’s credit portfolio grew to 1.231 billion euros in the first half of this year, marking an increase of 14 % in one year, which is significantly higher than average in the banking sector. Active lending to SMEs in all three Baltic States, and retail lending in Latvia and Lithuania, shapes the basis of the loan portfolio growth. In line with Citadele Group’s strategy to facilitate access to funds for SMEs in the Baltic region, the amount of loans issued during the first half of 2016 to businesses increased by 19 % in Latvia, by 94 % in Lithuania and by 70 % in Estonia.
Over the year, the amount of clients’ deposits in the group’s banks increased by 14 % or 340 million euros: at the end of June, the total deposit portfolio reached 2.75 billion euros. The total amount of deposits exceeded the total amount of loans issued by more than two times, ensuring high liquidity indicators.
Decision of Citadele to ensure growth and its continued efforts to improve customer service has gained recognition. In June, 2016, survey Euromoney Awards of Excellence conducted by prestigious magazine Euromoney, declared Citadele Central and Eastern Europe’s Best Bank Transformation. “Restructured, recapitalised and renewed – Citadele can no longer be seen as the unsuccessful lender which was left over after the influential collapse of Parex. Citadele is now in a good place from which to serve Latvia’s economic recovery," said a statement by the magazine.
The shareholders of Citadele are a group of international and multinational investors with extensive experience in the banking sector across the world. The largest shareholder is the European Bank for Reconstruction and Development which owns 25 % minus one share, whereas the international group of investors represented by Ripplewood Advisors LLC owns the remaining 75 % plus one share.
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