Urbo Bankas, a Lithuanian capital bank, earned a net profit of EUR 6.5 million in the first three quarters of this year. The loan portfolio grew by 14.6% to EUR 364 million during the period, while the bank’s assets at the end of September stood at EUR 577 million, or 15.6% more than a year earlier (EUR 499 million).

“A faster-than-forecasted economic growth, improving business and consumer expectations, as well as the bank’s active marketing efforts, have boosted lending volumes. The steady decline in the Euribor rate has certainly contributed to this. We are observing stable growth trends in consumer and mortgage lending in the retail segment, as well as a consistent increase in the number of investment projects carried out by small and medium-sized enterprises and farmers,” summarises the situation Marius Arlauskas, Head of Administration of Urbo Bankas.

At the end of the third quarter, the amount of deposits held with Urbo Bankas reached EUR 489 million, 16.2% more than a year earlier. Meanwhile, net interest income increased by almost a tenth (EUR 1.5 million) to EUR 16.7 million.

According to Mr. Arlauskas, this year the bank entered the next stage of its development – it introduced a new name and visual identity, as well as relocated its headquarters to premises in the main business district of Vilnius. Investments in change and lower commission income contributed to the slight drop in profits.

In the third quarter of this year, net fee and commission income of Urbo Bankas decreased by 30.4% (EUR 1.2 million) to EUR 2.7 million compared to the same period of 2023. This was mainly due to an EUR 0.6 million decrease in payment collection income and an EUR 0.4 million contraction in brokerage income. In the comparative period, the net result on foreign currency transactions decreased by EUR 0.8 million (30.4%) to EUR 1.8 million, due to the contraction of the net currency market in Lithuania.

“On a day-to-day basis, we are seeing a steady increase in demand for financing from both corporates and individuals, while the improving consumer and business expectations allow us to forecast further sustained growth. Seeing the demand, this year we offered our customers new financing instruments – a standardised version of fixed-rate mortgage loans and a very attractive refinancing solution for these loans. In recent months, we have seen a significant increase in the volume of refinancing of mortgage loans, which will have a positive impact on the long-term performance of the bank,” says Mr. Arlauskas.

The Bank’s shareholders’ equity stood at EUR 63 million on 30 September this year. Compared to the end of September 2023, it has increased by 14.1%, from EUR 55 million. At the end of September, Urbo Bankas had 285 employees, and its customer service network consisted of 25 territorial branches.