In a refreshingly workaday development in Latvia's banking sector February 22, a bank reported that it had achieved stable growth and a modest profit in 2017.
Citadele bank - formed from the collossal wreckage of Parex bank, which collapsed spectacularly a decade ago and dragged the country to the verge of bankruptcy - reached its highest capital adequacy ratio since the bank’s founding, in addition to improving asset quality, it reported.
The group’s profit from its main operations was EUR 31.5 million. Last year Citadele also invested over EUR 3 million in the development of innovation and the bank’s digital services, according to the Citadele Group’s financial review for 2017.
“In 2017 Citadele reached its highest capital adequacy ratio since the bank’s founding... The results of 2017’s operations show the stable development of the Citadele Group in all business sectors and its powerful position in the Latvian financial sector, as well as its large potential for growth in the Baltic market overall. It is the result of purposeful work on developing the bank’s services, improving customer service, and strengthening the bank’s relevant systems,” said Citadele bank’s Chairman, Guntis Beļavskis.
The financial results were not spectacular, but given the current fraught scenes involving ABLV bank, Norvik bank and the Latvian central bank, that is probably spectacular in its normality.
AS “Citadele banka” Group’s net profit (before exceptional items) in 2017 was EUR 31.5 million, though that was impacted by a EUR 23.2 million deferred tax asset write-off, which occurred as a result of changes in tax legislation. As a result of this activity, the Group’s profit was a modest EUR 16.0 million.
Client deposits at the end of 2017 were EUR 2.88 billion. The increase in total deposits was visible in the private customer service sector with an 5% increase, and even stronger in the small and medium business sector which the bank has been targeting, where deposits grew by 21% and in the corporate client service sector, where the growth was 32%.
In 2017 the Citadele Group’s net credit portfolio grew by 7%, reaching EUR 1.33 billion.
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