AS “Citadele banka” 3rd Quarter 2021 Financial Results

Paskelbta

Highlights

  • Strong financial performance with net profit reaching EUR 44.7 million in 9 months 2021, which translated into 16.3% annualised return on equity. Net profit in Q3 2021 was EUR 12.2 million
  • Moody’s upgrades Citadele’s credit rating to Baa2 with stable outlook
  • The number of active customers reached 358 thousand clients as of 30 September 2021, 11% growth y-o-y
  • EUR 812 million issued in new financing to Baltic private, SME, corporate and leasing customers in 9 months 2021, 148% growth y-o-y. New financing in Q3 reached EUR 261 million, 11% growth q-o-q
  • Baltic deposits continued to increase by EUR 413 million in 9 months 2021, or 13% growth vs. year-end 2020.
  • The Bank continues to operate with adequate capital and liquidity ratios. Group’s CAR (including period’s result) was 19.0% and LCR of 161% as of 30 September 2021.

Overall business sentiment in Q3 2021 was positive. Active customers reached 358 thousand clients as of 30 September 2021, or 11% growth y-o-y. The number of active Mobile App users reached 191 thousand, a 38% increase y-o-y.

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 q-o-q.

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. Portfolio quality continued to improve and the NPL ratio stood at 3.2% as of 30 September 2021, vs. 3.5% at the end of 2020.

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 joins Helve’s Future Hub accelerator program

Future Hub, innovation accelerator established by Helve, brings together EU-level start-ups with the Baltic companies with an aim to create practical solutions for business sustainability challenges. Citadele has joined the second program of the accelerator as a co-organizer. During the program (from September to December 2021) start-ups are given an opportunity to work on  sustainability challenges together with market-leading companies. The aim of the program is to ensure the sustainable innovation development and to promote cooperation between market-leading companies.

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. 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.