OREANDA-NEWS. September 09, 2013. During the first half of 2013 the Citadele group saw continuing strong development of its business, ensuring profitability as a group. The Citadele Group closed its books for the first half of the year with a net profit of LVL 5.8 million, while Citadele Bank net profit was LVL 7.1 million. During that period, the bank actively lent money to companies in the industrial sector, 25% of all new loans were issued to manufacturing enterprises.

Citadele Group’s net profit during first half of the year is 27% more than the first six months of 2012. Citadele Bank’s profit was higher than that of the group thanks to successful operations of Lithuanian subsidiary AB Citadele from which Citadele received dividends.

“During the first half of this year, the Citadele Group successfully continued its path of strong development of its business by attracting new clients and increasing profits, operational income and deposit volumes,” says Citadele board chairman Guntis Belavskis. “The bank’s subsidiaries also posted successful results and increased their market shares. The bank’s development was also appreciated at the international level, Citadele received several awards in Latvia and abroad during the first half of the year.”

By continuing to follow its already well documented business strategy, the Group saw its interest increase by 16% compared to same period in 2012 from LVL 13.1 million to LVL 15.3 million. The Citadele Group’s net interest revenues rose by 12% in comparison to the same period last year – from LVL 16.8 million to LVL 18.8 million.

Citadele Bank’s total assets were LVL 1.38 billion as of 30 June 2013 (LVL 1.62 billion for the group). The bank’ s loan portfolio was LVL 622.5 million (LVL 712.3 million for the group) with capital and reserves totalling LVL 96.9 million (group - LVL 96.5 million). Deposit balances grew to LVL 1.19 billion (group - LVL 1.43 billion for the group) during the first half of 2013. The bank’s capital adequacy ratio was 13.1% (group: 11.3%) and the liquidity ratio was 55.8% as of 30 June 2013.

Active in corporate lending

Citadele’s corporate lending activities included the signing of loan and guarantee agreements for LVL 48.4 million during the first half of the year. The largest proportion of new loans issued by Citadele in Latvia during the first six months were granted in the manufacturing industry – manufacturing enterprises received 25% of total amount of Citadele’s newly issued loans. The bank also significantly increased its mortgage lending portfolio which exceeded LVL 12.4 million during the first half of 2013.

Citadele Life and Citadele Open Pension Fund increase their market shares

Citadele’s subsidiary Citadele Life underwrote 14% of the total amount of new premiums in the entire Latvian life insurance market during the first six months of 2013. Citadele’s subsidiary Citadele Open Pension Fund increased its assets by 0.9 million Lats in the first half of 2013.

Citadele receives local and international awards

The bank received several awards not just in Latvia, but also abroad during the first half of 2013. The European Business Award 2012/2013 competition nominated Citadele among the top 100 best enterprises in Europe, and the bank was awarded as one of the 10 best European companies in the “Infosys Business of the Year Award” (with turnover ranging from EUR 26 and 150 million). This award is conferred for rapid business development, strong financial performance and innovations.

Lipper, the international investment fund information and research company, named the Citadele Russian Equity Fund managed by IPAS Citadele Asset Management as the best in its category among funds registered in Europe in terms of their risk-reward ratios during a period of three years.

Euromoney, the global finance magazine, recognized Citadele as the best local bank in Latvia. The Citadele group has received a total of 10 awards from Euromoney.

Citadele was also recognized as the most popular Latvian brand in Lithuania. AB Citadele bank, the Lithuanian branch, received the “Namejs Ring” award in the “Most Popular Latvian Brand in Lithuania” category, receiving a silver Namejs ring; this award is conferred by the Latvian Chamber of Commerce in Lithuania and the Embassy of Latvia in Lithuania. The aim of this award is to recognise the most successful Latvian enterprises operating in Lithuania.

Citadele’s “Concierge services for non-resident clients – integrated with Visa system” received the Customer Prize and the runner-up prize in the “Financial Services Export” category at the “Golden Coin 2013” contest organized by the Latvian Association of Commercial Banks.