During the 1st quarter of 2012 Citadele Bank continued growing steadily working as a profit bearing bank with a healthy loan to deposit ratio. Thanks to its successful performance, Citadele was able to repay the last instalment of term deposits in the amount of 46.94 million Euros as early as in February this year which was ahead of the anticipated deadline. Simultaneously, Citadele achieved significantly better financial results during the 1st quarter of this year, comparing to the same period last year, informs Guntis Beļavskis, Chairman of Citadele Bank.
Mr. Beļavskis announced that “in the beginning of 2012 Citadele also retired its bonds with the nominal value of 20.6 million lats. After retiring its bonds and repaying state deposits Citadele has become a classic deposit-funded bank significantly decreasing its dependence on state aid and international financial markets.”
Citadele completed the 1st half of 2012 with earnings before interest and taxes (EBIT) of 4.1 million lats (the group's results – 5.2 million lats); the profit after interest and tax deductions was 1.02 million lats (the group's: 2.28 million lats). Citadele Bank’s total amount of assets was 1.32 billion lats (1.54 billion lats for the group) as of 31 March 2012. The bank’s loan portfolio was 614.8 million lats (the group’s – 707.2 million lats) and the amount of capital and reserves was 87.5 million lats (the group's – 86.1 million lats). The total amount of deposits with Citadele Bank reached 1.10 billion lats (the group’s – 1.34 billion lats) during the 1st quarter of 2012.
During this period Citadele attracted new clients thus significantly increasing the amount of deposits. Clients’ deposit portfolio increased by 3% or 31.4 million lats during the 1st quarter of 2012. AB Citadele bankas in Lithuania was equally successful in attracting deposits: the volume of deposits grew by 7.2% or 10.3 million lats during this period.
Citadele Bank continued developing its three core business directions in the beginning of 2012: services for retail customers and small and medium enterprises in our branch office network, services for large enterprises and private wealth management.
More than 7’800 new clients chose Citadele Bank as their partner during the 1st quarter of 2012 – Citadele has acquired over 7’100 new clients in retail and small and medium company as well as corporate segments in Latvia whereas the number of new clients in private asset management segment reached almost 700. AB Citadele bankas in Lithuania attracted more than 1'700 new clients during the 1st quarter.
The bank’s subsidiaries also reached notable results: thanks to its strong performance, Citadele Life increased its share in terms of savings life insurance according to the total amount of underwritten premiums from 9.7% as of 31 December 2011 to 12% as of 31 March 2012.
Citadele Asset Management, in turn, receiving a substantial amount of votes from the audience of the international financial magazine World Finance, ranked among top three asset management companies in the Baltic States and was nominated for the World Finance award as the best asset management company in the Baltics 2012. Citadele Eastern European Bond Fund USD, managed by Citadele Asset Management, received Lipper Fund Award 2012 for the best consistent, risk-adjusted performance over three years in the Emerging Europe Bond Fund category from Lipper, global mutual fund information and analytical company. Investors of Citadele Eastern European Bond Fund-USD received 97.6% absolute returns during this period.
About Citadele Bank
Citadele is a local Latvian bank which offers banking, financial and asset management services. Citadele group is represented in the Latvian market as well as in 10 other countries. Citadele Banka is the only collaboration partner of American Express in Latvia and Lithuania who is entitled to issue American Express credit cards. Citadele’s vision is to become the most valuable financial group in the Baltic States. A study conducted by the Baltic Corporate Management Institute in 2012 recognized Citadele as the best managed state-owned enterprise in the Baltic States. 75% minus one Citadele Bank’s shares are possessed by the State Joint Stock Company Privatization agency on behalf of the Latvian State and the owner of 25% plus one share is the European Bank for Reconstruction and Development (EBRD).