Urbo Bankas reported a 50 per cent increase in profit in the first quarter compared to the same period last year

Year-on-year, as of 31 March, the volume of loans granted by the Lithuanian-owned Urbo Bankas increased by 30 per cent, while the bank’s deposit portfolio grew by more than a fifth over the same period. In the first quarter of this year, the bank earned a net profit of EUR 1.8 million, which is 50 per cent more than in the same period last year.

At the end of the first quarter of this year, the total amount of loans issued by Urbo reached EUR 572 million (compared to EUR 438.9 million a year ago). The bank’s net interest income reached EUR 6.3 million in the first quarter, up 10 per cent compared to the same period in 2025.

According to Marius Arlauskas, Head of Administration of Urbo Bankas, although annual inflation in Lithuania accelerated at the start of this year, rising from 2.8 per cent in January to 4.4 per cent in March, both households and businesses were borrowing at a significantly higher rate at the beginning of the year.

“The bank’s loan portfolio grew nearly twice as fast as the market average in the year leading up to the end of March – a result of the bank’s growing brand recognition, active marketing efforts and favourable lending terms. It is likely that changes to the pension system also boosted lending in the retail segment; as people planned for future payments, they became more willing to take out loans,” notes M. Arlauskas.

According to the bank’s Head of Administration, the growth in the business loan portfolio was driven by the competitive financing solutions the bank offered to small and medium-sized enterprises. Among external factors, borrowing was driven by rising domestic consumption – despite unfavourable geopolitical developments, rising wages and growing demand in the domestic market are encouraging businesses to actively invest in expansion.

M. Arlauskas notes that deposit volumes have also grown significantly this year – as of 31 March, they were 21 per cent higher than a year ago, reaching EUR 714 million.

“The bank’s extensive customer service network, as well as increased public focus on saving, helped drive rapid growth in the deposit portfolio. Term deposits remain one of the most popular ways to invest spare funds, and their rising interest rates are attractive to those who value a conservative and safe approach to saving. In addition, deposits up to EUR 100,000 are insured by the state,” notes M. Arlauskas.

In the first quarter of 2026, compared to the same period last year, the bank’s net fee and commission income decreased by 7 per cent to EUR 0.7 million. Meanwhile, net profit from foreign exchange operations increased by nearly 11 per cent to EUR 0.5 million during the comparable period.

“Customer habits are changing: some traditional banking services, such as cash withdrawals or fund transfers made at bank branches, are being used less frequently as payments move to the digital space, so fee and commission income has been steadily declining for some time. However, this decline is offset by both growing demand for financing and the expanding range of banking services. In the first quarter, we launched a payment initiation service that is increasingly being chosen not only by companies of all sizes but also by self-employed professionals,” says the Head of Administration of Urbo.

The total assets of Urbo Bankas stood at EUR 804 million at the end of March this year, up 20 per cent from a year earlier (EUR 668 million). The bank’s shareholders’ equity increased by 8 per cent over the year, reaching EUR 69 million.

As of 31 March, Urbo Bankas had 282 employees, and its customer service network consisted of 25 regional branches.