The bank's profit after taxes in the first half of the year rose to LTL 27.7 million (EUR 8.0 million) compared to LTL 25.5 million (EUR 7.4 million) net profit in the same period in 2013. The results are unaudited and calculated in accordance with the International Financial Reporting Standards.
"The growing economy, easing geopolitical tensions and very favourable borrowing terms had affected positively e economic sentiment of individuals and businesses also lifting demand for financial services. This opened the door of opportunity for us to increase the financing volumes and consolidate further our position in housing and consumer loans markets. In the second quarter of the year we also witnessed higher activity in the corporate credits market, especially among companies operating in energy, trade and services and agricultural sectors. We are pleased to note that our efforts to optimise branch network coupled with active development of self-service infrastructure for daily banking services helped us to further reduce operating costs despite higher expenses related to preparation of the bank for the Euro introduction in Lithuania. Another positive factor is that our loan losses were minimal and the quality of our growing credit portfolio remained stable," Bjornar Lund, the chairman of the management board and the CEO of AB DNB Bankas, said.
In the first half of 2014 AB DNB Bankas' loan portfolio to individual and corporate customers rose 4.0% year-on-year to LTL 9.5 billion (EUR 2.75 billion) on the back of active work with legal entities and further growth of demand for mortgages and consumer lending. During the period the bank's loan portfolio to individuals rose 4.8% year-on-year to LTL 4.18 billion (EUR 1.2 billion) as the loan portfolio to legal entities was up 3.4% year-on-year to LTL 5.32 billion (EUR 1.5 billion).
AB DNB Bankas' deposit portfolio increased by 6.2% to LTL 6.62 billion (EUR 1.9 billion) year-on-year. This resulted from the growth in the number of individual and corporate customers which rose by 27 thousand compared to the same period a year ago. As at the end of June AB DNB Bankas provided comprehensive range of financial services to 837 thousand customers.
In the first half of the year the net interest income of AB DNB Bankas rose 5.8% year on year to LTL 107.5 million (EUR 31.1 million). The commission income for the services rendered to customers rose 2.8% compared to the same period a year ago to LTL 46.7 million (EUR 13.5 million). The bank's operating and other expenses made LTL 134.5 million (EUR 38.9 million) in the first six months 2014, 8.1% lower compared to the same period a year ago.
According to preliminary data, the assets of AB DNB Bankas rose 4.2%, or by LTL 493.8 million (EUR 143.0 million), year-on-year to LTL 12.39 billion (EUR 3.58 billion) as at the end of June.
