Moody's Investor Service reaffirms Citadele Bank’s positive credit rating
Riga, February 26, 2018, International credit rating agency Moody's Investors Service reaffirmed its positive outlook for the long-term deposit rating of AS "Citadele banka," keeping it unchanged: Ba2, positive outlook.
In the analysis, Moody’s noted that Citadele is well positioned to withstand pressure that could arise from events affecting Latvian financial sector. It asserted that Citadele has grown primarily in the Baltic countries in recent years by focusing on consumer and small and mid-size enterprise lending, while at the same time meaningfully reducing exposures to CIS countries, being very restrictive in accepting new high risk deposits and maintaining its liquid assets over tangible banking assets above 52%.
Guntis Beļavskis, CEO of Citadele Bank: “Citadele is well positioned to support the Latvian financial system with its experience and high standards in AML and compliance. Management and the bank’s shareholders believe in a ‘zero tolerance’ approach towards these risks, and this has resulted in a spotless track record in the Baltics.”
“Further risk reduction and a continued decrease in high risk business in the Baltics will be positive for the market in the medium term. Our focus on retail and SME segments in all three countries, combined with a great economic outlook for next few years, will ensure the fulfillment of Citadele’s plan to become the true ‘Baltic Champion’,” said Beļavskis.
At the end of 2017, Citadele Group’s capital adequacy ratio (CAR) was 18.4%, net profit (before exceptional items) was EUR 31.5 million, client deposits were EUR 2.88 billion, and the bank’s net loan portfolio was EUR 1.33 billion.
In 2017, Moody’s Investors Service raised the long-term deposit rating of Citadele Group by two notches - from B1 to Ba2, with positive outlook.
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