- The bank’s active customers reached an all-time high of 363 thousand active clients as of 31 March 2022, 5% growth year over year
- During the first quarter the bank issued EUR 297 million in new financing to support Baltic private, SME and corporate customers
- The deposit base remained stable and Baltic deposits constituted EUR 3,566 million as of 31 March 2022, or 97% from total deposits
- More than 3000 Ukrainians have submitted applications to open account in Citadele
- The strongest first quarter in Bank`s history – Baltic operations net profit reaching EUR 12.7 million
- In January 2022, Citadele has entered into a binding agreement with Trusted Novus Bank Limited regarding the sale of its Swiss subsidiary
Citadele is closely monitoring the situation in Ukraine and business continuity is high on agenda. All new laws, policies and sanctions, including sanctions imposed on Russia, are implemented diligently. Citadele focuses on the Baltics, and there is no direct exposure to Russia, Belarus or Ukraine. Citadele has not experienced any material impact from the recent events in Ukraine or from Russian sanctions. The indirect impact from these events is monitored, as Citadele’s clients and the economy is adjusting to the new situation.
“Russia’s invasion into Ukraine on February 24 showed the fragility of the geopolitics and clear cause-and-effect relationship in a global economy. Citadele stands with the international community in condemning Russia’s actions, and closely follows the developments to take actions to the best of its abilities. Ukrainian citizens are welcome to Citadele branches in Latvia, Lithuania and Estonia to open an account free of charge. By now, we have received more than 3000 applications, and arranged mobile branch to serve moms` with disabled kids in their safe temporary accommodation. Despite the uncertainty, we delivered the strongest first quarter in Bank`s history in the Baltics both financially and operationally," says Johan Åkerblom, Citadele CEO.
Citadele customers can support people of Ukraine in the form of X REWARDS points of the Citadele loyalty program. Our clients have provided more than 9 million X REWARDS points, and Citadele has doubled it - total support for Ukrainians constituted EUR 75 000. Support to Ukraine is organised in cooperation with the Latvian Samaritan's Association, and used for providing food, medical and other supplies.
EUR 297 million issued in new financing to Baltic customers, and deposits reached EUR 3,566 million
We have continued to support the business community with financing for growth and expansion. New financing to our customers reached EUR 297 million in the first three months, remaining flat quarter over quarter. The total loan book as of 31 March 2022 was EUR 2,772 million, 3% higher vs. the year end 2021.
Due to uncertainty related to higher energy prices and the war in Ukraine followed by worsening of macro-economic forecasts, net credit losses in amount of EUR 6.1 million were recognised in the first quarter this year to reflect underlying cost of risk. Overall, the financial standing of our clients is reassuring, and portfolio quality continued to improve and the NPL ratio stood at 3.1% as of 31 March 2022, vs. 3.3% at the end of 2021.
The deposit base remained stable, and Baltic deposits constituted EUR 3,566 million as of 31 March 2022, or 97% from total deposits. Loan-to-deposit ratio was 75% as of 31 March 2022, compared to 71% as of the year end 2021.
Innovations and development
In the first quarter Citadele continued its digitalisation strategy. Digital onboarding for SMEs was introduced in Lithuania, having previously been available in Latvia. The bank now offers the possibility for private clients to apply for Mortgage loan or Leasing via Citadele mobile app in Latvia and Lithuania. In addition to already existing Buy Now Pay Later option through Klix for e-commerce checkouts, this option was also made available to Citadele merchants in physical stores.
Citadele signs the UN principles for responsible banking
Citadele is committed to integrate sustainability throughout all our business operations. Our sustainability strategy is in line with the UN Principles for Responsible Banking - creating a long-term value and contributing to greener and more inclusive future for all our stakeholders. By signing the principles, we have joined the world’s largest global banking community focusing on sustainable finance, and we look forward to work and achieve the Paris Agreement on Climate Change and UN Sustainable Development Goals.
Growing client base and showcasing strong financial results
The bank continues to be attractive for new clients, and we are proud for the trust we get from a record number of active customers – reaching 363 thousand clients as of 31 March 2022, 5% growth year over year. The number of active Citadele mobile app users was 207 thousand, a 28% increase year over year.
Strong financial performance with Baltic operations net profit reaching EUR 12.7 million in the first quarter 2022, which translated into 12.8% return on equity.
In January 2022, Citadele has entered into a binding agreement with Trusted Novus Bank Limited regarding the sale of its Swiss subsidiary - Kaleido Privatbank AG. Trusted Novus Bank Limited will acquire 100% of Kaleido Privatbank AG. The closing of the acquisition is expected by the year end 2022, subject to regulatory approvals. As of 31 March 2022, Kaleido Privatbank AG is presented as discontinued operations.
Citadele continues to operate with adequate capital and liquidity ratios: CAR, transitional (including period’s result) of 18.7% and LCR of 205% as of 31 March 2022.
About Citadele Bank
Citadele’s mission is to modernise the banking sector and offer more opportunities to clients 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 and instant payments, and finally, being the first in the Baltics to introduce opening of an account with a selfie, payment rings and payments to mobile numbers.
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.