Citadele banka
Interim report (Q1 and Q3)

Citadele: New financing surged 52% for 9M 2024

Citadele continues to support the Baltic business community and society with financing for growth and expansion – new financing for private, SME, and corporate customers surged 52% year-over-year, reaching EUR 944 million in 9M 2024, with Q3 contributing EUR 320 million. This growth was driven by favourable macroeconomic conditions and interest rate trends, supporting clients’ need for fulfilment of their plans. The total loan book grew by 9%, reaching EUR 3,133 million as of 30 September 2024, reflecting a EUR 271 million increase since year-end 2023.

Activity in the housing market is increasing

In the first nine months of this year, the activity of residents in the housing market has increased significantly - the number of mortgage loan agreements concluded at Citadele Bank has increased by 86% compared to the same period a year ago, and the amount of financing issued has increased by 108%.

"Latest data in the Baltic region continues to indicate an upturn in the mortgage lending market. We see more evidence that mortgage lending has bottomed out and has resumed its growth. Consolidated data from Baltic Central banks shows that in September 2024 YoY growth in new mortgage loans in the Baltic region accelerated to 12.7% YoY, compared to stagnation in June and a 7% decline at the start of 2024. Therefore, we see strong evidence that the beginning of rate cutting cycle in the euro area already had a substantial impact on Baltic mortgage demand – as consumer purchasing power is recovering and rates are on the decline, a recovery in mortgage demand has begun. We anticipate this trend to continue due to upcoming further rate cuts in the euro area – as euro area goes deeper into the rate cutting cycle, we see further boost to the Baltic mortgage market" says Rūta Ežerskienė, Chair of the Management Board and CEO of Citadele Bank. 

Improving Innovations

Continuing to invest in the development of digital solutions, in Q3 2024 Citadele has launched a new mobile app version with significantly improved functionality e.g. an Authenticated Voice Calls feature, offering secure and efficient customer support with instant identification. Additionally, the vibrant C smart NEON card was launched, targeting youth aged 7-21 to encourage financial independence.

Klix, Citadele’s e-commerce checkout solution, reached 2,600 merchants, with its registered user base surpassing 400 th. and active users reaching 92 th as of 30 September 2024. During 9M 2024, 14.1 million transactions were processed, with a total value of EUR 486.9 million. Klix "Buy Now, Pay Later" issuance reached EUR 29.7 million during 9M 2024, more than doubling the 2023 total. Several top-tier retailers joined Klix in Q3, including signed cooperation with ESTO and their merchant network, expanding its reach across the Baltics.

Client Growth and Engagement

Citadele's active customer base expanded to 393,000, a 5% year-over-year increase. Digital adoption remains high, with 90.3% of customers actively using online channels, primarily through the mobile app. Active mobile app users grew by 5%, reaching 264,000 as of 30 September 2024.

Sustainability Commitment

Citadele reinforced its dedication to a green economy, with its Green Savings Account accumulating EUR 62 million by 30 September 2024. In 9M 2024, EUR 67 million was issued in green financing, including EUR 23.1 million for green mortgages, EUR 23.9 million for green business loans, and EUR 19.7 million for electric vehicle financing.

In Q3 2024, Citadele introduced the C Wealth initiative  to empower clients with the knowledge and tools needed to secure their financial future through tailored solutions for their retirement.

Capital Markets Activity

Citadele successfully completed a EUR 35 million Senior Preferred Bonds issuance under its EUR 100 million First Senior Unsecured Preferred Fixed/Floating Rate Bonds Programme. Oversubscription allowed the issuance to expand to the maximum amount, supporting corporate purposes and regulatory requirements.

Financial Highlights

Citadele delivered robust financial results in the first nine months of 2024, reporting an operating income of EUR 174.7 million, maintaining stability compared to the same period last year, and achieving a return on equity of 18.9%. In Q3 2024 alone, operating income reached EUR 58.7 million, with a return on equity of 18.3%.

Citadele's portfolio quality remains strong, and the bank continues to maintain solid capital and liquidity positions.

Key figures – Baltic operations

About Citadele

Citadele’s, rated Baa2 (positive) by Moody’s, mission is to modernise the financial industry and offer more opportunities to private individuals and businesses throughout the Baltics. In the nine months ended 30 September 2024, Citadele issued EUR 944 million in new loans, with its total loan portfolio reaching EUR 3.1 billion, while total deposits reached EUR 3.9 billion. Alongside a modern universal banking platform, Citadele offers its clients a range of services based on next-generation financial technology, including its modern app, contactless payments and instant payments. Citadele was the first in the Baltics to introduce account opening with a selfie, payment rings and payments to mobile numbers. Citadele Bank is the Group’s parent company in Latvia, and its subsidiaries and branches operate in Latvia, Lithuania and Estonia.

         Ilona Frīdmane
         Head of Investor Relations and ESG
         Phone: +371 29483327
         Email: investor.relations@citadele.lv