SEB Bank Group Lithuania – 1st half-year 2012 result
According to preliminary data, unaudited net profit earned over the first half-year of the year 2012 by AB SEB bankas is LTL 59.5 million (EUR 17.2 million) and by AB SEB bankas Group is LTL 80.4 million (EUR 23.3 million). The result has been calculated in accordance with the requirements set by the acts of the Bank of Lithuania and legal acts of the Republic of Lithuania. Over the first half-year of the year 2011, unaudited net profit earned by AB SEB bankas totaled LTL 199.5 million (EUR 57.8 million) and by the Bank’s Group – LTL 356.5 million (EUR 103.2 million).
AB SEB banko grupę Lietuvoje sudaro AB SEB bankas, UAB „SEB investicijų valdymas“, AB „SEB lizingas“ ir UAB „SEB Venture Capital“.
Comment by President of SEB Bank in Lithuania Raimondas Kvedaras:
The markets are still characterised by uncertainty regarding the future in the Eurozone, whereas Lithuania’s economy has so far been able to resist the external challenges and has been availing of opportunities offered by exports and the internal market: during the 1st half-year, businesses were increasing their production efficiency and maintained their competitive edge. Thus, we have possibilities for sustainable development of our banking business by financing promising projects of corporate customers and by issuing loans to private individuals at the same time remaining on the alert remembering the lessons of the crisis learnt.
During the 1st half-year of the current year, as against a relevant period a year ago, SEB Bank Group’s Lithuania operating profit before provisions was increasing, income was growing, and expenses remained at the same level.
Within the first six months we issued new loans to corporate and private individual customers worth nearly LTL 2 billion: an increase in new issued loans (extended agreements excluded) was 47 per cent. Credit portfolio quality was improving further and the share of past dues was decreasing.
We have maintained a high level of our customer trust in our bank: over 2Q 2012, as compared to the 1Q 2012, customer credit portfolio was increasing further – from LTL 12 billion up to LTL 12.3 billion.
As a response to changes in customer needs, during the 1st half-year of the current year we were actively encouraging the development of self-service. We continue operating adhering to our strategy to be the home bank for our customers that select us as their main financial partner. This year, we will have special focus on our operational efficiency and costs control.
SEB Bank Group’s in Lithuania key financial data:
SEB: Second quarter of 2012: Operating profit SEK 3,951m (4,200)
SEB Group’s key financial data:
Comment by President of SEB Annika Falkengren:
"SEB's relationship banking model has supported a high and stable level of earnings in a quarter marked by a challenging environment. Putting the customer's perspective front and centre yields real results," says Annika Falkengren, SEB's President and CEO, commenting on the second quarter 2012 result.
"In Sweden more customers choose SEB as their home bank. The number of SME home bank customers has increased by 20 per cent over the last two years and it is encouraging that one in four of new companies in Sweden choose SEB as their bank. At the same time the number of private home bank customers has increased by almost 30,000."
"Our expansion in the Nordic countries and Germany to support large corporates and institutions has provided a strong platform for future growth. Our existing customers do more business with us while we have attracted many new customers."
"Together with our deleveraging and risk mitigating actions over the last years, earnings volatility has been substantially reduced. We have divested non-core businesses such as the retail operations in Germany and Ukraine and increased cost efficiency. We have built a strong balance sheet in terms of capital, liquidity reserves, funding structure and asset quality."