According to preliminary data, Lithuanian capital bank Urbo Bankas made a net profit of 8.2 million euros last year, almost 1.6 times higher than in 2022 (5.2 million euros). Marius Arlauskas, the bank's head of administration, said the bank was able to take advantage of financial market growth last year due to high customer activity despite rising interest rates.
“Earnings growth in 2023 was driven by net interest income, fee income and loan portfolio growth. Despite deteriorating economic growth expectations, we do not see any decline in the quality of our loan portfolio. This means that last year's growth was balanced and moderate growth, achieved by weighing opportunities and potential risks,'' says Allauskas.
Last year, compared to 2022, Urbo Bankas' net service fees and commission income increased by 0.9% (0.4 million euros) to 5 million euros, while net profits from foreign currency transactions increased by 32.5% (1.6 million euros). It decreased to 3.2 euros. a million. Meanwhile, the bank's net interest income increased by 77.8% (9.1 million euros) to 20.1 million euros.
Allauskas points out that banks have managed to expand their loan portfolios despite the rise in benchmark interest rates. Urbo Bankas' loan portfolio increased by 24.6% in 2023 to €317.4 million.
“We ended last year with a loan portfolio that was 20 million euros larger than planned. Our private clients are actively borrowing both for home purchases and for consumption financing,” said Urbo Bankas' Managing Director. states.
He highlights another change in customer behavior. 2023 has become the year of term deposits, as rising benchmark interest rates have led individuals and businesses to return to the classic savings product, deposits.
At the end of 2023, Urbo Bankas' assets amounted to 548.1 million euros, an increase of 33.2% over the previous year (411.5 million euros).
As of December 31 last year, the bank's debts to customers amounted to 481.6 million euros, an increase of 35.8% compared to the end of 2022.
Urbo Bankas' shareholders' equity increased by 18% over the year to €56.7 million at 31 December last year (previous year: €48.1 million).
With 299 employees at the end of 2023, Urbo Bankas' customer service network consists of 32 regional branches.
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