OREANDA-NEWS. May 04, 2012. In the 1st quarter of 2012 compared to the corresponding period a year before, the volume of SEB bank's issued funding to privates and companies has increased by 52%. The market of mortgage loans continues to show growth as in the first quarter the demand for mortgage loans in SEB bank reached the highest level since the beginning of 2009. In the first quarter SEB bank has posted a profit of LVL 5.4 million, increasing the income by 6% compared to the last year's 1st quarter, reported the press-centre of SEB Group.
 
SEB bank's President Ainars Ozols on the results of 1st quarter of 2012:

"The year has started very dynamic. Although the 1st quarter in the framework of the year is always with the lowest business activity, this year many records are related particularly with the 1st quarter. The demand for mortgage loans in the 1st quarter was the highest since 2009 showing an increase in the amount of 69% compared to the 1st quarter in 2011. This year, the demand for the funding of SEB leasing has increased by 21% as well.

The developments of financial indices have been affected by the fact that the number of active customers – privates that are actively using SEB bank's services has increased by nearly 9% and the number of companies by almost 7%. The year 2012 in SEB group in Latvia has begun with providing of new financial services for its customers – borrowers are now able to insure their credit payments while  for the finance planning of the companies, SEB group in the Baltic States has created a special Company's finance modeler.

The same time current events in the world cannot be ignored. The slowdown of export is largely determined by the decrease in demand of several significant markets in Latvia.  In the negotiations with companies, the fact that growth plans are interchanging with the moderate forecasts of economy's development is being marked clearly.  1st quarter's issued new financing that is in the amount of more than LVL 80 million, outlines SEB bank's role in financing both aspirations of privates and companies. We are ready to finance sound business also in the future.

The increase in the number of active clients leads to a conclusion that we are developing in the right direction in order to become the main bank for more and more inhabitants and companies in Latvia. The 2nd quarter promises to be no less intense – for the customer convenience, mobile banking for privates is in the final development stage. Whilst on 16th April, we opened first two branches in shopping centers that are going to let for clients to be served also on weekday evenings and on weekends. The payment card users are going to experience service improvements as well."

Financial indices of SEB group in Latvia in the 1st quarter of 2012:
 
The profit of SEB group in Latvia amounted to LVL 20.1 million that is by 6% more than in quarter 1 of 2011;

The expenses, compared to quarter 1 in 2011 have declined by 1%, excluding disposable costs in the 1st quarter of 2011;

Profit before provisions amounted to LVL 10.8 million that is by 8% less than in quarter 1 of 2011;

Operating income after tax and additional provisions was LVL 5.4 million;

The total amount of deposits at SEB bank as at 31st march 2012 reached LVL 1.04 billion that is by 8% more than at the end of March in 2011;

The total loan portfolio as of 31st  March, 2012 was LVL 2.02 billion;

In the 1st quarter of 2012, the amount of newly issued loans at SEB bank was LVL 83.7 million, that is by 52% more than a year before, 68% of new loans have been issued to entrepreneurs;

Capital and reserves as at 31st March, 2012 amounted to LVL 295.9 million;

Total assets at the end of March were LVL 2.53 billion;

The capital adequacy ratio of SEB group in Latvia was 19.76% on 31st March 2012;

SEB bank's liquidity ratio as of 31st March, 2012 was 47.42%.

SEB group's President Annika Falkengren: "Our relationship banking model has generated a robust first quarter and profit before credit loss provisions increased by 2%. The number of customers increased in all segments and asset gathering activities continued to attract net new money. Costs developed according to plan and asset quality has remained strong.

We are proud to have been recognized by customers as "Overall best bank for large corporates and institutions in the Nordics 2011", according to a compilation of all Prospera's surveys for 2011. This is a merit to our focused expansion in the Nordic and German wholesale markets and it spurs us to continue to build with even more determination on this recognition."

In the 1st quarter of 2012 SEB bank in Latvia has been awarded with several local and international evaluations and awards:

Global Finance named SEB bank as the Best Foreign Exchange Service Provider in Latvia, Lithuania, Norway and Sweden in 2011.

Global Finance awarded SEB bank as the Best trading finance bank in Latvia, Lithuania, Estonia and Sweden.

CV Market Latvija acknowledged SEB bank among the TOP 10 most desired employers in Latvia.

Workingday ranked SEB bank as the 7th most desired employer in Latvia.

TNS Latvia included SEB bank among TOP5 best employers in Latvia.