During the previous nine months, SEB banka issued EUR 617 million in loans, reporting a profit of EUR 31.18 million
In the nine months of 2017, SEB bank issued over 12,570 loans totalling EUR 617 million, up by 34% compared to the relevant period last year. Loans worth EUR 482 million (78% of the issued loans) were issued to companies. Loans issued by SEB banka to private individuals in the first nine months of this year, amounted to EUR 135 million.
In the first nine months of this year, the total loan portfolio of SEB banka increased by 4%, whereas income went up by 2%. This was because SEB banka had been active in launching new remote access financial services as well as developing projects that contribute to sustainable development of public welfare, improve the business environment and help customers choose the most appropriate and convenient services.
Ieva Tetere, CEO of SEB banka, on the performance for the nine months of 2017:
“Our ambitions remain unchanged – to be a leading bank in the corporate business segment and a strong player of the financial market in private individuals segment, too, to strive for delivering world-class services to our customers. For that matter, we pay much attention to the digital development. Owing to the launching of new remote service channels, the number of our customers is rising. At the time being, our mobile banking application has 38,751 users. There are over 123,000 users of Smart-ID. In September, we launched a business knowledge platform SEB eAcademy aimed at start-ups. I am glad that it already has 650 registered users. With a view to improving the existing business environment, we have launched a grant programme (Ie) dvesma (Inspiration/Breath) jointly with the Jūrmala City, and the Olaine and Mārupe counties, for which 31 applications have been received from entrepreneurs, which is suggestive that the entrepreneurship gene is by no means dormant in Latvian entrepreneurs. Among all the initiatives completed during the last quarter, we are especially glad about student loans. As the autumn study season has set in, young people can apply for student loans and sign them in electronic form. For now, 800 young people have submitted their applications, whereas 500 have signed their agreements remotely using the online banking facility.
Looking forward to the next period, we will continue to support our customers by not only issuing new loans, but also by sharing our industry knowledge, as well as launching a few more remote solutions. Currently, we focus our work on the opening of the SEB Innovation Centre in Riga at the beginning of the next year, where entrepreneurs will have the possibility to test new business development models to outgrow their competitors, whereas start-ups will have an opportunity to contemplate on the launching of innovative technologies, meet experts, and exchange experiences.”
Johan Torgeby, President and CEO of SEB group on the performance of SEB group:
“Within a relatively monotonous and sluggish, in terms of business activity, quarter we have achieved convincing results. Large companies make use of the favourable situation on the capital markets to refinance their liabilities; financial institutions keep looking for higher profit generating opportunities, whereas the low volatility in financial markets have encouraged customers to act more actively. In Sweden, the housing market shows the signs of a healthy recovery. Whereas in the Baltic countries, lending volumes have increased, both in terms of household and business loans.”
The financial indicators of SEB group in Latvia in the nine months of 2017:
• Revenue of SEB group in Latvia amounted to EUR 72.2 million, up by 2% compared to the nine months of 2016;
• Costs have gone down by 7% to EUR 35.1 million compared to the nine months of 2016;
• Profit before provisions amounted to EUR 37.11 million, up by 11% compared to the nine months of 2016;
• The provisions made from January to the end of September amounted to EUR 898 thousand, down by 80% compared to the relevant period of 2016;
• Operating profit after tax and provisions amounted to EUR 31.18 million in the first three quarters of this year, up by 27% compared to the three quarters of 2016;
• At 30 September 2017, the total amount of deposits with SEB banka was EUR 2.3 billion, up by 11% compared to the end of the third quarter of 2016;
• At the end of September 2017, the total loan portfolio was EUR 2.6 billion, i.e., up by 4% than at the end of the third quarter of 2016;
• At 30 September 2017, own funds and reserves amounted to EUR 414.9 million;
• At the end of the third quarter of 2017, assets amounted to EUR 3.64 billion;
• At the end of September 2017, the capital adequacy ratio of SEB banka in Latvia was 20%;
• At the end of the third quarter of 2017, the liquidity ratio of SEB banka was 39.4%.
The acknowledgements received by SEB banka during the third quarter of this year:
• from Euromoney: SEB – the best bank in Latvia
• from Global Finance: SEB – the best Internet Bank in Latvia
• from Global Investor: SEB – the best provider of securities custody services in Latvia
