Interim report (Q1 and Q3)
AS “Citadele banka” continues to expand its core business segments and provide innovative banking solutions in 1st quarter 2019
Continued development of Digital Service capability and Remote Customer experience in Baltics
Net interest income up by 5% YoY to EUR 20.6 million
Net fee and commission income up by 7% YoY to EUR 7.2 million
Total loan portfolio increased by EUR 118 million (9% YoY) and reached EUR 1,435 million. EUR 139 million issued in new loans to Baltic retail and corporate customers
Domestic deposit increase of EUR 144 million
Q1 2019 was characterized by solid performance in all core business segments of the Citadele Group, with further implementation of new and improved daily banking services and innovative solutions for our customers.
Citadele continued to expand and refine its innovative offerings across multiple channels with improved online banking and mobile app functionality. In order to provide fast, convenient and secure banking for Citadele’s customers in Lithuania, the bank has started to offer Touch ID and Face ID for customer authentication and payment authorization.
Guntis Beļavskis, CEO, commented: “We are proud of the speed of our Digital and Remote solutions, and the customer feedback really motivates us. In line with our lending strategy, we have focused on promoting the development of small and medium businesses. In Q1 2019, Citadele Group’s net loan portfolio increased by 9% YoY and new lending reached EUR 139 million. Strong growth was seen in active customers, reaching more than 275 thousand clients.”
Accelerating Baltic Strategy
The number of active customers exceeded 275 thousand clients. Mobile App users and Internet bank customers increased since the beginning of the year by 14% and 3%, respectively, reaching 88 thousand active Mobile App users and 175 thousand active Internet Bank customers.
Citadele continued to increase its lending footprint in both retail and corporate banking sectors, achieving 9% growth YoY in the Group’s net loan portfolio, reaching EUR 1,435 million in Q1 2019.
Progress was also made in terms of deposits where the Group increased domestic deposits by almost EUR 144 million during Q1. As of 31 March 2019, the Group’s customer deposits were EUR 2,784 million, representing a 5% increase since year end 2018.
Ongoing Prudent Risk and Liquidity Management
The Group‘s capital adequacy ratio was 19.1% compared with 18.7% as of Q1 2018. The capital adequacy ratio reflects organic profit generation and the shareholders’ commitment to a sound capital position. The liquidity position of the Group remains strong, with liquidity coverage ratio at 278% and the loan-to-deposit ratio at 52% as of period end.
The bank with the best customer service in Latvia
The Group’s commitment to customer service enabled Citadele to maintain the top position among banks in Latvia and Lithuania, according to the annual mystery shopper survey conducted by international customer service evaluation company DIVE, published in February 2019. Citadele was announced as the bank with the best customer service in Latvia for the fourth time. In Lithuania the bank scored 2nd best.
Citadele Group’s shareholders are an international consortium of investors with global experience in the banking sector and the European Bank for Reconstruction and Development. 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.
Public Relations Adviser
Telephone: +371 29373305
Head of Investor Relations
Telephone: +371 67010183
Santa Daniela Kanaška
Investor relations specialist
Telephone: +371 67010991