In 2014, the extensions to decrease bad debts were reduced by LTL 2 million (EUR 0.58 million); in 2013 these extensions were reduced by LTL 63 million (EUR 18.25 million). Small changes in extensions in 2014 show the stability of loan portfolio, national economics and financial situation of bank's clients.
Compared to the year 2013, last year the net income from interest of Danske Bank increased by 3%. It was mostly determined by diminishing expenditure of insurance and loan financing. When the country was approaching the time when it had to join common euro zone, the volumes of deposits grew especially rapidly in the last months of last year and increased by 30%, in comparison to deposit portfolio of the end of 2013. The net income from commission increased by 6% because of higher activeness of the bank's clients: the extent of payment transactions grew up and payment by cards was getting more active.
"Last year was especially important for the domestic banking sector and for the State on the whole. Business was preparing especially actively to join common currency of euro zone. It is probable that as Lithuania became the 19th country of euro zone, it will induce higher interest of foreign investors in our market," says Gintautas Galvanauskas, managing director of Danske Bank in Lithuania.
According to the data of survey on servicing quality of the bank's clients conducted by the company of market researches Dive during the last quarter of the year 2014, Danske Bank became the bank that services the clients the best in Lithuania. It is for the third time during the last four years already that the bank received such an award.
"We always try to provide our business clients with the highest value. Following the renewed strategy of Danske Bank in the Baltic States, this year we are going to focus even more on the services to the companies and we will increase our activeness in this segment. We have set an ambitious goal for the year 2015 – to increase the portfolio of business clients up to 10%," Galvanauskas. According to him, the major attention will be given to the clients of private banking and clients in high need of complex banking services.
The bank plans to invest EUR 15 million into its subsidiaries ank in the Baltic States in the next 1-2 years. The part of these investments will be meant to create common IT platform and to synchronise it with the systems of the entire group. The growing concentration on the business clients and improved services will secure profitable growth in the future. Meanwhile, with regard to retail banking sector, it is predicted that more and more transactions of retail banking clients will be carried out online using the e-channels offered by the bank.
This year the bank will continue expanding the servicing centre of Danske Bank Group that has been working in Lithuania for several years already, and the newly established IT centre of Danske Bank. These centres already have more than 650 employees and it is planned to increase their number by several hundred within the upcoming years.
In reaction to the recent information in the media, Danske Bank Lithuania said that it will continue working in a stable manner in Lithuania and providing services to both – business and private clients.
Danske Bank will focus on servicing of business bank clients – the clients of Danske Bank group, major business companies, clients of small and average business. The bank will be even more active in this segment and plans to increase the portfolio of business clients up to 10%, the bank said in a press release.
"We do not renounce the retail banking activity as we will continue servicing current and new clients. Our goal remains the same: to guarantee the best servicing quality among the banks working in Lithuania.
The private clients will be divided into three segments from now on: private banking, clients in high need of bank services, and retail (mass) banking. Our bank is innovation-oriented thus we will encourage the clients of mass banking to use the e-channels we offer – self-service, e-banking – more actively," the statement reads.
