Citadele Bank

Citadele Bank Repays 47.2 Million Euros to the Latvian State Ahead of Schedule

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The Citadele Bank repaid EUR 47.2 million (LVL 33.2 million) to the Ministry of Finance of the Republic of Latvia today, December 20, ahead of schedule: of which EUR 46.6 million (LVL 32.8 million) is principal repayment that the Latvian state had invested as term deposits, while more than EUR 600’000 (LVL 400’000) is the interest for the fourth quarter. This is the fourth instalment of the bank’s repayment to the state.

“Citadele Bank is continuing stable development. Our operating indicators are in line with the bank’s restructuring plan, and in several areas we are doing better than planned. The bank’s successful operation allow us to repay the state’s investment ahead of schedule,” says Citadele Board Chairman Juris Jākobsons.

With this payment, since August 2010 Citadele Bank has repaid to the State EUR 157.1 million (LVL 110.4 million) of the total term deposit invested by the government of Latvia.

During the period from August 2010 to the December 2011, Citadele has paid the State a total of EUR 23.9 million (LVL 16.8 million) in interest for the received aid, which includes State term deposits and the subordinated loan.

The outstanding amount of State deposits that Citadele has to repay after this instalment (not counting interest) is EUR 46.6 million (LVL 32.8 million). Citadele Bank will repay that money next year.

Information about Citadele’s operating results of the 3rd quarter of 2011
Citadele Bank returned to profits faster than had been anticipated in the restructuring plan this year – already in the first half of 2011. Third-quarter results show that profits rose from LVL 182,000 to LVL 3.4 million. In comparison to 2010, Citadele has substantially increased net interest revenues. The bank’s liquidity ratio is a healthy 62.8%, which is twice more than requested 30% by the regulator.

“We plan to complete 2011 at a profit, too,” says Jākobsons. “Citadele is finding new clients, our deposit volumes have increased, and we’re continuing to offer financial products which are unique at the Baltic level.”

Citadele’s capital adequacy ratio has increased in 2011. It is also higher than is predicted in the bank’s restructuring plan. At the end of December 2010, the bank’s level of first-level capital sufficiency was at 6.7%, and at the end of September 2011, it was at a level of 7.4%. The bank’s overall capital sufficiency indicator is at a level of 13.2% (11.0% for the group), exceeding 8% minimum level stipulated by the law.

The bank’s total assets as of September 30, 2011, amounted to LVL 1.2 billion (LVL 1.4 billion for the group). The amount of outstanding loans was LVL 621 million and LVL 713 million respectively for the bank and the group, while the indicators in terms of capital and reserves were LVL 85.3 million and LVL 83.0 million respectively. Total deposits at the bank at the end of Q3 amounted to LVL 980 million (LVL 1.2 billion for the group).

Citadele also continues to invest financing in Latvia’s economy by offering loans to companies. This has helped to absorb money from the European Union’s Structural Funds in Latvia, because many of the companies, which have received financing from Citadele have needed it to implement projects which are co-financed by the EU.

75% (minus one share) of Citadele Bank shares are owned by Latvian State via the state owned Privatization Agency and the European Bank for Reconstruction and Development possesses 25% plus one of its shares.

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