Citadele Bank

Citadele provides strong support to Baltic economy with more than EUR 800 million of new financing 

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  • New financing in the first nine months of 2021 reached EUR 812 million and Baltic deposits continued to increase by EUR 413 million
  • The number of active customers reached 358 thousand clients as of 30 September 2021, 11% growth year over year
  • Moody’s upgrades Citadele’s credit rating to Baa2 with stable outlook

“Citadele continues to have a strong 2021, being able to support the bank’s customers with record high new financing, 148% growth year over year, and steadily growing number of active customers. 38% increase of the number of active Mobile App users proves the successful digital transformation and clients` readiness for digital financial services. In Q3 we had a strong focus, first, on sustainable innovation development together with market-leading companies as a co-host of innovation accelerator established by Helve, second – development on innovative digital payments solutions that has been launched this autumn – Citadele Phone POS and Google Pay,” says Johan Åkerblom, Citadele CEO.

EUR 812 million issued in new financing to Baltic private, SME, corporate and leasing customers

New financing to our customers reached a record high of EUR 812 million in 9 months 2021, 2.5 times higher than the same period in 2020. EUR 261 million were issued in Q3 2021, 11% growth year over year.

The total loan book as of 30 September 2021 was EUR 2,602 million, 69% higher vs. year end 2020. Portfolio growth was impacted by acquisition of the SIA UniCredit Leasing (rebranded to SIA Citadele Leasing) at the beginning of year.

Strong financial results

Strong financial performance with net profit reaching EUR 44.7 million in 9 months 2021, which translated into 16.3% return on equity. Net profit in Q3 was EUR 12.2 million with Q3 ROE of 12.7%.

Citadele continues to operate with adequate capital and liquidity ratios: CAR (including period’s result) of 19.0% and LCR of 161% as of 30 September 2021. 

Customer deposits reached EUR 3,893 million as of 30 September 2021, increase of 6% compared to the end of 2020. Baltic domestic customer deposits increased by EUR 413 million (+13%).

Moody’s upgrades Citadele’s credit rating to Baa2

On 13 September 2021, the international credit rating agency Moody’s has upgraded Citadele’s credit rating to Baa2 with stable outlook. Upon upgrade of the credit rating, Moody's has taken into consideration the continued improvement in Citadele’s solvency position, with the bank significantly reducing the proportion of non-performing loans, supported by strengthened capital generation, following the acquisition of SIA UniCredit Leasing (rebranded to SIA Citadele Leasing), and an improvement in the bank’s operating environment.

Citadele issues EUR 200 million of senior unsecured preferred bonds

In November 2021, Citadele has completed issuance of EUR 200 million of senior unsecured preferred bonds, rated Baa3 by Moody’s. The bonds were issued with five years maturity, with issuer’s optional redemption date after four years. 

"This is a historical moment - the bond issue is not only the first time for Citadele, but also the first time in the last 10 years a Latvian bank has tapped international capital markets. This deal is a testimony of our improved business quality which facilitates placement capabilities both in and outside the Baltic market,” adds Johan Akerblom.

The purpose of the issuance is to meet Minimum Requirement for own funds and Eligible Liabilities (MREL). Proceeds from the offer are to be used by Citadele for its general corporate purposes.

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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