According to preliminary data, Urbo Bankas, a Lithuanian capital bank, generated a net profit of EUR 8.2 million last year, which is almost 1.6 times more than in 2022 (EUR 5.2 million). According to Marius Arlauskas, Head of Administration of the Bank, last year the Bank managed to take advantage of the growth in the financial market, as customers remained active even when interest rates rose.
“Profit growth in 2023 was driven by growth in net interest income, commission income and the loan portfolio. Despite worsening expectations for economic growth, we do not see a decline in the quality of the loan portfolio. This means that growth last year was balanced and moderate, achieved by weighing up the opportunities and potential risks,” says Mr. Arlauskas.
Last year, compared to 2022, net service fee and commission income of Urbo Bankas increased by 0.9% (EUR 0.04 million) to EUR 5 million, while the net result from foreign currency transactions decreased by 32.5% (EUR 1.6 million) to EUR 3.2 million. Meanwhile, the bank’s net interest income increased by 77.8% (EUR 9.1 million) to EUR 20.1 million.
Mr. Arlauskas points out that despite the increase in base interest rates, the bank managed to grow its loan portfolio. The loan portfolio of Urbo Bankas increased by 24.6% to EUR 317.4 million in 2023.
“We ended last year with a loan portfolio EUR 20 million larger than planned. Our private customers have remained active both in borrowing for the purchase of housing and for financing consumption,” says the Head of Administration of Urbo Bankas.
He highlights another change in customer behaviour: 2023 was the year of term deposits, as the rise in base interest rates saw individuals and businesses turn back to the classic savings product, i.e., deposits.
At the end of 2023, the assets of Urbo Bankas amounted to EUR 548.1 million, or 33.2% more than a year earlier (EUR 411.5 million).
The bank’s liabilities to customers amounted to EUR 481.6 million on 31 December last year and were 35.8% higher than at the end of 2022.
Shareholders’ equity of Urbo Bankas increased by 18% during the year and amounted to EUR 56.7 million as at 31 December last year (previous year: EUR 48.1 million).
With 299 employees at the end of 2023, Urbo Bankas’ customer service network consisted of 32 territorial branches.
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