Danske Bank Profit Amounts to 49 mn Litas in 1H
OREANDA-NEWS. August 14, 2013. The Lithuanian branch of the financial services group Danske Bank A/S earned 49 million litas in profit before profit tax during the first half-year of 2013. Danske Bank A/S is ranked second highest in northern Europe according to the amount of assets owned. Profit for the same first half-year before provisions was 20 million litas, while provisions for bad loans were decreased by 29 million Litas.
The bank deposit portfolio has grown considerably: compared to the same period a year ago, it has increased by 23 per cent and on 30 June 2013 amounted to 3,357 mln. litas. In addition the index of deposits and loans is at its highest since the beginning of the bank’s activity. At the end of the first half-year (on 30 June 2013) it amounted to 94 per cent.
“As the economy of the country is recovering, the financial situation of companies is also improving: during the first half-year we have decreased the provisions for bad loans by 29 million litas and increased the deposit portfolio by more than one-fifth”, says Gintautas Galvanauskas, the Director General of Danske Bank. “However, the remaining uncertainty concerning the development of key export markets negatively affects the incentives of companies related to investments. Business remains cautious and this determines the decreased need for funding of investment projects.”
According to Mr Galvanauskas, this half-year is also significant due to the active develop-ment of the services centre of the Danske Bank Group in Lithuania: “On 31 July we had 140 persons working in the bank services centre. We are planning that the number of em-ployees will reach 300 by the end of this year. This is a significant investment project for the whole of Lithuania as new jobs are being created and international experience is being disseminated.“
The loan portfolio, which decreased during the economic crisis, and low market interest determined the lower net interest income. During the first half-year of 2013 the net inter-est income amounted to 33 million litas ? 17 per cent less than at the same time last year. At the end of the first half-year of 2013 Danske Bank’s share in the Lithuanian loan market amounted to 6.7 per cent.
It should be noted that that during the first half-year of 2012 the Lithuanian branch of Dan-ske Bank A/S earned 61 million litas in profit before profit tax. The provisions of the branch for bad loans decreased by 31 million litas, while profit before the provisions amounted to 30 million litas.