In the first half of the year, 'Citadele' issued 646 million euros in new loans

In the first half of 2022, Citadele bank issued EUR 646 million in new loans to private, small and medium-sized, as well as corporate clients in the Baltics, the bank reports on its performance.

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On June 30, 2022, the number of its active customers reached an all-time high of this bank - 368 thousand, which is a 5% increase compared to the previous year.

"The second quarter of the year was dominated by increased global uncertainty due to the Russian invasion of Ukraine, the energy crisis and ongoing supply chain disruptions. Despite the uncertainty, we have continued to increase our market share in all three Baltic countries and have delivered strong financial and operational results in the second quarter and in the first half of the year", says Johan Åkerblom, manager of "Citadel".

In the second quarter of 2022, "Citadel" continued to implement the digital strategy and invest in the development of modern financial services. For example, significant improvements have been made in the speed of remote account opening for small and medium-sized companies, reducing the time from 30 to 6 minutes. In the segment of private individuals, attention was paid to refugees from Ukraine, who, as a group of customers, currently have the opportunity to open an account remotely with the help of a mobile app. Currently, more than 5,000 refugees from Ukraine have applied to open an account in "Citadel".

Also, a new version of the bank's website was introduced in all Baltic countries, focusing on improving user experience and customer service. The Bank's Leasing portal now provides access to all information about balances and future payments. After entering Estonia, and reaching more than 600 merchants in all three Baltic countries, "Klix" has become a recognizable e-commerce player.

646 million euros were issued in new loans, which is 17% more than a year earlier. 349 million euros were issued in the second quarter of 2022, 17% more than in the previous quarter.

The total loan portfolio on June 30, 2022 was 2.895 billion euros, which is 7% more than at the end of 2021. The quality of the portfolio continued to improve – the NPL ratio as of June 30, 2022 was 3%, compared to 3.3% at the end of 2021.

The deposit base remained stable, and Baltic resident deposits reached EUR 3.582 billion at the end of June 2022, or 97% of total deposits. The loan-to-deposit ratio as of June 30, 2022 was 79%, compared to 73% at the end of 2021.

The bank's operating income in the Baltics reached 79.6 million euros, which is an 8% increase compared to the corresponding period of the previous year. Operating income in the second quarter was 40.3 million euros, which is 4% more than the previous year.

The growth of the cost base has been facilitated by large investments in the development of modern services and solutions, as well as costs related to ensuring the requirements of the European Central Bank. Operating expenses in the first half of 2022 were 44.9 million euros, compared to 41 million euros in this period last year. Operating expenses in the second quarter of 2022 were 24 million euros.

Choosing a cautious approach with regard to uncertain macroeconomic future forecasts, the bank has recognized net credit losses in the amount of 12.7 million euros in the first half of 2022. In the first six months of 2022, profit before provisions in the Baltics was 34.8 million euros, which is 6% more than in the corresponding period last year. . Profit before provisions in the second quarter reached 16.2 million euros. Net profit in the Baltics in the first half of 2022 reached 21.4 million euros, and the average return on capital was 10.7%. On the other hand, the net profit of the second quarter was 9.3 million euros.

Citadele continues to operate with sufficient capital and liquidity indicators - on June 30, 2022, the capital adequacy ratio (CAR, transitional, including period result) was 18% and the liquidity coverage ratio (LCR) was 167%.
Citadele is the second largest bank in Latvia by assets. Citadele Group is managed from Latvia. Its subsidiary companies and branches operate in Latvia, Lithuania and Estonia.

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