The revenues of “SEB Group” in Latvia in the first half of this year reached 53.9 million euros, 3% more than in the 6 months of 2021, while the operating profit after taxes and savings in the 6 months of 2022 was 31.3 million euros, which is by 2% more than a year ago, “Delfi Bizness” informed the bank.
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Profit before provisions increased by 2%, reaching 29.1 million euros. On the other hand, the costs of the first half of the year were 24.8 million euros, which is 3% more than a year ago.
The figures above are before the impact of the sale of subsidiaries.
At the beginning of the year, a unified insurance and long-term savings group was established in the Baltics, which allowed “SEB Life and Pension Baltic SE” to become the sole shareholder of JSC “SEB open pension fund” and IPAS “SEB Investment Management”, taking over the shares from the previous shareholder JSC “SEB Bank”. Including the influence from the sale of subsidiaries of “SEB Group” as a result of the reorganization, the total revenues of “SEB Group” in Latvia in the 6 months of 2022 amounted to 68 million euros, operating profit after payment of taxes and savings – 45.3 million euros.
In the six months of this year, “SEB Group” in Latvia has provided financing of 371 million euros, which is 2% more than in the first half of 2021. The amount of credit granted to individuals for the purchase or repair of housing has increased by 5% compared to the same period last year, reaching 95 million euros, while the amount of consumer credit has almost doubled, reaching 13 million euros.
Lending to small and medium-sized enterprises (SMEs) also shows stable results – compared to the first half of last year, the volume of lending increased by 11%, reaching 117 million euros. At the same time, greater caution is felt on the part of large companies, which received financing amounting to 133 million euros, which is 8% less compared to the first half of last year.
The total loan portfolio of “SEB Group” in Latvia increased by 1.4% in the first half of 2022 and amounts to 3.1 billion euros. The total amount of deposits has increased by 1.5% since the beginning of the year and amounts to four billion euros.
“The strong beginning of the year in the economy continued in the second quarter as well. The lifting of Covid-19 restrictions at the end of March allowed the recovery of service industries that had been crushed by the pandemic. As a result, residents were able to shop and use services more actively, as evidenced by an increase in the dynamics of payments. Manufacturing industry and exports also maintain a good pace of development in the economy. However, challenges are increasing and will slow down the economy in the coming quarters. This includes the rapidly rising inflation, including the increase in energy and food prices, the increasing interest rates in the international markets, as well as the expansion of sanctions against Russia,” comments Ievas Teteres, head of “SEB banka”.
She also admits that the pace of citizens’ savings observed so far has slowed down considerably. “It is thought that these changes will affect the consumption activity of the population and the most difficult stage for the Latvian economy could be the beginning of next year. However, taking into account the accumulated experience and the ability to adapt to changes, it can be expected that the Latvian economy will avoid significant shocks. At this stage, the government’s ability will play an important role to support the less affluent groups of the population, which is of significant social importance,” says Teter.
The bank states that, in response to international events, companies become more cautious about starting new, important investment projects, bearing in mind factors such as rising energy prices, instability of supply chains, as well as cooperation partners’ payment discipline, which can narrow business opportunities in the future.
The bank also informed that provisions for expected credit losses were reduced by 3.2 million euros in the period from January 1 to June 30.
The total amount of deposits in “SEB banka” on June 30, 2022 was four billion euros, which is 7% more than the amount of deposits at the end of June 2021, while the total loan portfolio at the end of June 2022 was 3.1 billion euros, ie by 1, 6% more than at the end of June 2021.
The assets of “SEB Group” in Latvia at the end of June 2022 were five billion euros, and the capital of “SEB Group” in Latvia was 457 million euros, which is respectively 16% and 3% more compared to the first half of last year.
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