Citadele Bank

Citadele provides strong support to the Baltic clients base as the economy recovers from Covid impact

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  • New financing in the first half of 2021 reached EUR 551 million and Baltic deposits continued to increase by EUR 269 million
  • The number of active customers reached 351 thousand clients as of 30 June 2021, 12% growth year over year.
  • The first phase of the agreement between Citadele and ABLV for the purchase of the majority of ABLV’s mortgage portfolio has been completed as of beginning of July, increasing Citadele’s mortgage portfolio by almost 20%.

“Citadele has had a strong first half of the year, being able to support the bank’s customers with record high lending as economy opened up. The growing number of active customers that have reached 351 thousand clients as of end of the June, with 12% growth year over year, shows the stable growth and demand for Citadele financial services. 28% increase of the number of active Mobile App users proves the successful implementation of our concept - “bank in your pocket”,” says Johan Åkerblom, Citadele CEO.

Innovations and development

In the fort half of 2021, Citadele continued to develop services and products to meet customer expectations across multiple channels and changing market conditions. Thinking about SME customers’ convenience, Citadele launched remote account opening for businesses, allowing the clients to begin their digital journey in fast and efficient way. Citadele has introduced a new tool for SME and corporate clients -  Merchant Portal. Merchants now can easily monitor their customers’ behaviour in physical and e-shops, account balances in different banks, incoming & outgoing transactions in real time, as well as create and send invoices to third parties. Citadele also continued to strengthen its position in the mobile payments area - FitBit Pay and Garmin Pay were launched in June 2021.

Sharing the view that climate change is becoming a key priority for a wide range of industries, including financial institutions, Citadele has started a solar panels consumer lending pilot in Lithuania, helping the economy to access sustainable assets for a more attractive price. Citadele will continue to develop new offers supporting the green transition.

EUR 551 million issued in new financing to Baltic private, SME, corporate and leasing customers

New lending to our customers reached a record high of EUR 551 million in the first half of 2021, almost twice higher than in the same period in 2020. EUR 243 million were issued in the second quarter 2021 and EUR 31 million invested in local corporates bonds.

The total loan book as of 30 June 2021 was EUR 2,457 million, 59% higher vs. year end 2020. Portfolio growth was impacted by acquisition of the SIA UniCredit Leasing (now SIA Citadele Leasing) at the beginning of year. Portfolio quality remained stable and the NPL ratio stood at 3.4% as of 30 June 2021, vs. 3.9% at the end of Q1 2021.

Strong financial results

Strong financial performance with net profit reaching EUR 32.6 million in the first half of 2021, which translated into 18.1% return on equity. Net profit in the second quarter was EUR 22.1 million.

Citadele continues to operate with adequate capital and liquidity ratios: CAR (including period’s result) of 19.4% and LCR of 187% as of 30 June 2021.

Customer deposits reached EUR 3,798 million as of 30 June 2021, 2% increase compared to the forst quarter 2021, and 3% increase compared to the end of 2020.

Citadele acquires mortgage portfolio from ABLV Bank, AS in liquidation

The first phase of the agreement between Citadele and ABLV for the purchase of the majority of ABLV’s mortgage portfolio has been completed as of 2 July 2021. Citadele’s mortgage portfolio has now been increased by almost 20%. The acquisition will give additional positive financial impact from Q3 2021 onwards. The second phase of the transaction is expected to be finalised by the end of the year and will involve additional mortgage agreements in the amount of around EUR 50 million.

About the Citadele Group

Citadele’s mission is to modernise the banking sector and offer more opportunities to clients and businesses throughout the Baltics.

Citadele is the second largest bank in Latvia by assets. The Citadele group is managed from Latvia.

Its subsidiaries and branches operate in Latvia, Lithuania and Estonia. In 2020 one of Central and Eastern Europe’s leading customer service evaluation and improvement companies—Dive GROUP—recognised Citadele as the bank with the best customer service in Latvia and the second best in Lithuania.

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