Citadele has issued EUR 1 billion in new financing to support its clients and Baltic economy

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  • In first 9 months of 2022, the bank issued EUR 972 million in new financing to support Baltic private, SME and corporate customers; EUR 326 million were disbursed in Q3.
  • The deposit base remained stable at EUR 3,765 million as of 30 September 2022, On the back of attractive digital solutions and services the bank’s active customers reached an all-time high of 373 thousand active clients as of 30 September 2022, a 4% growth year over year.
  • Recently launched new X smart KIWIE card reached already 5000 card holders in three months.

“Global economic environment remains challenging, and third quarter marked continued increase in inflation and rising interest rates. Citadele continues to proactively work with its clients to ensure resilience and together we delivered a solid third quarter result, both financially and operationally. We continue to follow the developments and adopt our operations to the changing environment to support our customers and employees ," says Johan Akerblom (Johan Åkerblom), Citadele CEO. “We are proud of both the trust we are getting from active customers – reaching a record number of 373,000 clients and having 4% growth year over year – and the active use of our digital financial services, as, for example, there are already 221,000 active mobile app users, which is a 26% increase year over year,” adds Johan Akerblom.

EUR 972 million issued in new financing to Baltic private, SME and corporate customers

New financing to our customers reached EUR 972 million in 9 months 2022, 18% increase year over year. EUR 326 million were issued in Q3 2022. The total loan book as of 30 September 2022 was EUR 2,996 million, 11% higher vs. the year end 2021. Overall, the financial standing of our clients is reassuring, and portfolio quality continued to improve and the NPL ratio stood at 2.9% as of 30 September 2022, vs. 3.3% at the end of 2021.

Innovations and development

In the third quarter of 2022 Citadele launched new X smart KIWIE smart card, resulting in more than 5 thousand new KIWIE card holders. Card production outsourcing was finalized and will ensure quicker card deliveries and improved card service quality across the Baltics. 

SME digital onboarding improvements were launched in Latvia and Lithuania, improving customer experience by ensuring faster remote business account opening.

New corporate lending solution nCino gaining adoption in Latvia, Lithuania and Estonia, bringing quicker deals turnaround and improved customer service quality.

Klix, the bank’s e-commerce checkout solution, is gaining popularity and number of merchants reached more than 700 across all Baltic countries. Number of users exceeded 105 thousand as of end of September. Klix functionality was expanded in Lithuania, launching Buy Now, Pay Later option.

Strong financial results

Strong financial performance with a record high income in both the third quarter and first 9 months . In 9 months, 2022 operating income reached EUR 121.8 million, 8% growth year over year. In Q3 operating income was EUR 42.1 million, 9% growth year over year.

Taking a prudent approach towards more uncertain macroeconomic outlook, the bank has increased credit loss provisions to EUR 15.0 million in the first 9 months of 2022 (EUR 2.3 million in the third quarter). Baltic operations net profit reached EUR 38.1 million in 9 months 2022, which translated into 12.6% return on equity. In the third quarter net profit reached EUR 16.7 million and 16.4% ROE.

Customer deposits slightly decreased by 1% vs. the year end 2021 and constituted EUR 3,765 million as of 30 September 2022.

Loan-to-deposit ratio was 80% as of 30 September 2022, compared to 73% as of the year end 2021.

Citadele continues to operate with adequate capital and liquidity ratios: CAR, transitional (including period’s result) of 18.1% and LCR of 167% as of 30 September 2022.

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