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Vladimir Ivanovo (VŽ) nuotr.
SEB Bank Group in Lithuania earned 93.3 million LTL last year. Eur, or 21% less than in 2019. The loan portfolio contracted markedly and the deposit portfolio continued to grow.
Aggregate: the bank’s net interest income decreased, as did net income from services and commissions.
SEB was the first major bank in Lithuania to announce last year’s results.
[infogram id=”678e630a-185c-47de-b890-a394d24eaf53″ prefix=”2vD” format=”interactive” title=”SEB 2020 4Q”]The management of SEB affirms that the pandemic affected everyone, with the exception of the banks.
SEB Bank Group’s 2020 revenue was LTL 209.7 million. Eur, when 2019 – € 221.9 million.
“This was mainly due to lower revenues and higher provisions for bad loans. On the other hand, considering the size of the pandemic and the continued threats posed by the second wave, the decline in SEB Bank’s revenues was less than we forecast in Spring. Throughout the year, we have worked hard at the bank to optimize the bank’s operations and diversify the revenue structure, “says Raimondas Kvedaras, Chairman of the Board of SEB Bank.
For one thing, mortgage credit increased, but business contracted.
“Residents became active in the housing market again in the second half of the year. In total, last year SEB Bank provided 7% more home loans to residents than in 2019.
Businesses remained more cautious, especially those hardest hit by the epidemic and restrictions; We see a decrease in the need for new loans at SEB Bank. In the third quarter, the need for financing of companies, which had recovered somewhat, dropped again drastically with the start of the second quarantine, ”says R. Kvedaras.
The impact of quarantine restrictions on consumption and the slow pace of business investment were reflected in the growing deposit portfolio.
“The economic stimulus measures did not allow the population’s income to fall drastically, spending during the quarantine was limited due to restrictions, so residents had the opportunity to defer part of their income and take care of their financial security. This shows the 20 percent increase in household deposits in the SEB bank.
State support – tax deferrals, subsidies, loans or guarantees – allowed companies to accumulate free funds (SEB Bank’s corporate deposits increased by 26% annually), to reduce the use of credit limits ”, quotes the president of the Board of Directors in the report. .
The Bank has a positive outlook on the Lithuanian economy this year.
“Last year was exceptional due to the global pandemic. The country’s economy contracted in 2020, but Lithuania’s economic recession was one of the smallest in the European Union: it responded in a timely and effective manner to rapidly changing circumstances. Many businesses and residents have so far managed to withstand the threat of a pandemic, allowing for more optimistic confidence in 2021. The start of this year will not yet be easy for the Lithuanian economy, but we expect a fast enough recovery in recent quarters this year, ”says R. Kvedaras.
The bank’s net interest income decreased, as did its net service and fee income.
“The decrease in interest income was driven by the rapid growth of the deposit portfolio: the European Central Bank charges surplus funds to the bank with negative interest. The decrease in fee income was mainly due to the decrease in card payment fee income, 7% less than last year, ”says Aivaras Čičelis, Vice President of Business Support Services and CFO of SEB Bank.
During 2020, SEB Bank formed LTL 13.7 million. Provisions for so-called bad loans amounted to 3.9 million euros in 2019. EUR.
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