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Article: Lithuania - SEB.(SEB Bank)(Brief article)
- Article from:
- The Banker
- Article date:
- December 1, 2008
CopyrightCOPYRIGHT 2008 FT Business. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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SEB bank became the first in Lithuania to calculate its own credit risk capital requirements under Basel II, and its focus on qualified risk assessment and financing has helped it maintain a good-quality portfolio during the economic slowdown in the Baltic - non-performing loans actually declined in 2007, to just 1%.
The careful approach has helped the bank to maintain shareholder returns, with return on equity rising to 29.5% in 2007, from 21.1% in 2006, on the back of a 77% rise in profits, to LLt508m (E148.8m). The outsourcing of IT development and support has kept costs down, while 26 real estate properties were sold for a profit of LLt86.6m in 2007.