Urbo Bankas earned a net profit of EUR 1.2 million in the first quarter of 2025

In the year to 31 March 2025, the loan portfolio of Urbo Bankas, a Lithuanian capital bank, grew by more than a third, its assets increased by almost 16% and the bank earned a net profit of EUR 1.2 million in the first quarter.

At the end of the first quarter of this year, the loan portfolio of Urbo Bankas reached EUR 438.9 million, an increase of 34.7% compared to a year ago. The bank’s net interest income increased by 7.3% to EUR 5.8 million. Deposit volumes grew by 17.9% over the same period to EUR 576.4 million.

“The favourable economic situation – low inflation, a steadily declining Euribor interest rate and still positive business and consumer expectations – has also led to an increase in borrowing volumes. The growth trends in consumer and mortgage lending in the retail segment continue to be stable, while the number of investment projects carried out by farmers and small and medium-sized enterprises is also growing consistently,” says Marius Arlauskas, Head of Administration of Urbo Bankas.

According to him, the lower profit was due to the varying dynamics of interest income and expenses, increased investments in the development of electronic payment systems and new premises in some of the bank’s branches, as well as a decline in the volume of non-core activities.

In the first quarter of 2025, the bank’s net fee and commission income decreased by 22.2% to EUR 0.7 million compared to the same period last year. Net profit on foreign currency transactions decreased by EUR 100 thousand to EUR 0.4 million in the comparable period due to the contraction of the foreign exchange market in Lithuania.

“The performance indicators for the first quarter clearly point to both the overall financial trends and the bank’s priority areas of activity. For example, the declining number of foreign currency transactions indicates that the need to conduct foreign exchange transactions in cash is declining in the market, the shrinking of premium collection revenues signals that these activities are moving to the electronic space, and the growth of loan and deposit portfolios shows the potential of businesses and individuals to both borrow and accumulate funds,” says Mr. Arlauskas.

The total assets of Urbo Bankas at the end of Q1 2025 amounted to EUR 668.5 million, or 15.9% more than a year ago (EUR 576.5 million). The bank’s shareholders’ equity increased by 9.2% year-on-year to EUR 63.8 million.

At the end of March this year, Urbo Bankas had 279 employees, and its customer service network consisted of 25 territorial branches.