In Q3 2019 Citadele Group continued to demonstrate a strong financial performance by growing its customer base across all core business segments, improving its already high capital base, and showing improvements in the Group’s asset quality metrics.
The number of active customers increased by 18 thousand in Q3, and reached 299 thousand clients at the end of September 2019.
Key activities during Q3 2019 have been focused on continued improvements and upgrades to the bank’s products, as well as ensuring the smooth process of handling guaranteed compensation to more than 38 thousand customers of AS "PNB Banka".
New opportunities for Citadele’s clients
To support small business customers and to give merchants the advantage of adapting to a dynamic entrepreneurial environment and receiving the most crucial financial service instantly, Citadele was the first bank in the Baltics to start offering business owners the opportunity to receive a card terminal or mobile POS directly in branch offices.
Aligning with customer expectations in terms of speed of the banking products, we have launched instant card issuance, whereby customers can get payment cards directly at the branch.
Taking the next step towards our goal of making personal financial management easier and simpler for our clients, P2P payments to mobile phone numbers for private persons was launched in partnership with the Bank of Latvia.
Continuous digital channel development and the convenience of existing remote services have resulted in increased customer activity. Since the beginning of the year, Mobile App users and Internet bank customers increased by 46% and 6%, respectively, reaching 117 thousand active Mobile App users and 182 thousand active Internet Bank customers.
Focus on Baltic private and corporate customers
Citadele continued to increase its lending footprint in both retail and corporate banking sectors, and the total loan portfolio increased by EUR 118 million (8%) from the year end 2018, reflecting prudent lending standards and ambition to retain loan book quality. The loan portfolio was EUR 1,514 million as of 30 September 2019.
The main source of funding, customer deposits, grew by 16% vs year-end 2018, with growth coming from Baltic residents that increased by EUR 415 million year-to-date. As of 30 September 2019, total Group customer deposits were EUR 3,071 million.
Retail deposits reached EUR 1,351 million, a 22% increase since year end 2018.
State guaranteed compensation pay-out in Latvia
The Financial and Capital Market Commission entrusted Citadele to execute the payments of guaranteed compensation to the customers of AS "PNB Banka". We have devoted a lot of effort to ensure the smooth pay-out process to more than 38 thousand customers of AS "PNB Banka", paying particular attention that clients’ visits to the branch were comfortable and the information provided was clear. As of 22 September 2019, EUR 238 million or 85% of total pay-outs were completed.
Citadele’s mission is to modernise the banking sector and offer more opportunities to individuals and businesses throughout the Baltics.
Alongside classic banking services, Citadele offers its clients a range of services based on next-generation financial technology, including its modern app, contactless payments and instant payments, opening an account with a selfie, and payments to mobile numbers.
In Latvia Citadele is the third largest bank by number of clients, and second by number of business clients. The Citadele group is managed from Latvia. Its subsidiaries and branches operate in Latvia, Lithuania and Estonia.
In 2019 one of the leading customer service evaluation and improvement companies in Central and Eastern Europe, Dive GROUP, acknowledged Citadele as the bank with the best customer service in Latvia, and second best in Lithuania.
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