During the first three months of 2016 income before taxes and impairment of the group of DNB Bank in Lithuania, as a part of the biggest financial services group of companies in Norway, reached EUR 9.4 million. This is 25% more than at the same period in 2015, when EBITDA equalled to EUR 7.6 million. This is an unaudited result, calculated in accordance with International Financial Reporting Standards.
After review of old non-performing loans and the formation of additional provisions, the bank's net profit in the first quarter of 2016 amounted to EUR 3.2 million (last year it reached EUR 4.3 million).
‘Challenges for the banking sector have been getting more and more difficult to overcome. We are operating in the zone of negative interest margin. At the same time, we have to adapt to increasingly strict regulations as well as create smart solutions which would meet expectations of contemporary customers. All of this is reflected by our financial results – we have been successfully reducing our operating costs while improving operations by familiarizing our customers with solutions for modern banking’, says the President and Chairman of the Board of DNB Bank in Lithuania Bjornar Lund.
By the end of March 2016 DNB Bank in Lithuania had granted EUR 2.7 billion of loans to private and business customers in Lithuania. This means that the net loan portfolio increased by 0.4% if compared to the same period in 2015. The main reason for this was an increase in household financing, which grew by 6.6% if compared to the same period last year.
Due to growth in numbers of customers who were actively using banking services as well as increase in cash of businesses held in the bank‘s accounts, the deposit portfolio of DNB Bank in Lithuania grew by 6% to EUR 2.3 billion. At the end of March 2016 DNB Bank in Lithuania was providing financial services to 859 thousand private and business clients.
Net interest income for DNB Bank in Lithuania in Q1 2016 equalled EUR 16.4 million – an increase from EUR 15.6 million in Q1 2015. Income from service fees and commission increased from EUR 5.9 million in Q1 2015 to EUR 6.8 million in Q1 2016.
Operating costs of DNB Bank in Lithuania reached EUR 17.8 million in Q1 2016. Operating expenses decreased by 7.3% due to consistent efforts to optimize efficiency and active development of self-service infrastructure. During the Q1 2016 DNB Bank in Lithuania has paid taxes for EUR 4.4 million.
The bank is implementing all of the prudential requirements set out by the Bank of Lithuania while following proper risk management policy.
The Q1 2016 financial results of Norwegian DNB financial service group can be found in www.dnb.no.
The information about DNB Bank Group’s H1 2016 financial results in Lithuania is set to be disclosed on 12th July 2016.
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