Over the first quarter of the year 2014, unaudited net profit earned by AB SEB Bankas amounted to EUR 16.4 million and by AB SEB Bankas Group amounted to EUR 16 million, the bank said in a statement.
Comment by CEO of AB SEB Bankas in Lithuania Raimondas Kvedaras:
"In Q1 2015, we operated successfully. Financial results were positively affected by a rise in income as a result of customer activeness in using financial derivative instruments – customers were increasingly seeking to hedge their savings against the risk of interest rate increase in future, loan losses decreased, bank group's operational efficiency increased, and euro adoption, as forecasted, decreased bank's income from foreign exchange transactions and payments.
As compared to Q1 2014, an increase in deposits increased by half a billion euros – from EUR 3.8 billion to EUR 4.3 billion. It is obvious that the changeover to the euro has triggered a change in customer habits of holding their savings – having deposited cash at the time of the changeover to the euro to bank accounts, customers are not in a rush to withdraw money and keep it again in cash.
During Q1 of the current year, we observed a rise in the population's interest in loans – the number of new mortgage loans issued by the bank increased by 14 percent, year-on-year. On the other hand, the geopolitical environment continues affecting the overall dynamics of the credit portfolio, as businesses remain cautious and are not in a hurry to assume new financial obligations.
We observe our customers' increased activity in using e-banking services, which determines a decrease in client flows at the bank's branches. There is an increase in the number of payments via internet bank, customers tend to pay by card more frequently and withdraw less cash at ATMs, they are more active in using cash depositing self-service at cash accepting ATMs.
We consistently work on our business strategy – we will aim to be the best advisor to our customers – to private individuals and corporates looking for long-term financial solutions. This year, we will continue expanding our e-services and self-service network, we will seek to achieve more rapid development in payment card services and maximise the number of points of sale equipped with POS terminals."
