SEB customers actively engaged in investing and saving last year; EUR 58.9 million were paid out to customers as interest on deposits

29.01.2025 - 09:55

In 2024, SEB customers actively built up savings and invested on the financial markets; the activity of natural persons on the credit market also increased. The total amount of SEB various taxes, fees and other mandatory payments to the Latvian government for 2024 reached EUR 88.9 million, an increase of approximately 60% compared to 2023. Interest paid to the bank's customers on deposits doubled last year and totalled EUR 58.9 million.

Investing and saving more

“It is pleasing that the bank's customers actively invested in the financial markets last year and built up targeted savings for their future - investments in exchange-traded investment funds (ETFs) rose by 79% over the course of the year and exceeded EUR 624 million by the end of 2024. The population’s savings at pillars 2 and 3 of the pension scheme and investments in various securities have risen significantly. This shows that people are increasingly taking responsibility for their financial well-being in the long term,” points out Ieva Tetere, CEO of SEB.

Compared to 2023, the total investment portfolio of SEB customers rose by 26% in 2024 and reached EUR 3.9 billion at the end of last year. The largest increase was in ETF investments (+79%); there was also a significant increase in pension pillar 2 (+24%) and pension pillar 3 (+18%), reflecting both an increase in the value of savings and an increase in the number of savings and funds allocated to savings. The number of new investors taking advantage of the opportunity to invest small amounts is growing faster and faster. in 2024, there were 36% more new users of Robo-Advisor than in the previous year, and customers actively used the newly launched investment solution – Micro-investments, which enables investments from one euro.

Last year, SEB was able to offer both users of investment products and savers remarkably high returns. For example, the bank’s pension pillar 2 customers realised a profit of EUR 217 million, and the SEB index plan yielded the best performance in Latvia (almost 26% return).

SEB paid EUR 58.9 million in interest to its customers last year (EUR 28.8 million a year ago). Overall, SEB customer deposits increased by 8% in 2024.

Loans issued to natural persons rose by 7%

The bank’s loan portfolio totalled EUR 3.4 billion at the end of 2024. The amount of loans issued to private individuals rose by 7% in 2024, with the volume of mortgage loans increasing by 4%, the amount of leases by 9%, and the amount of issued consumer loans rose by 17% (compared to 2023).

Green loans have increased particularly strongly – in the mortgage class, 57% more green loans were issued than in 2023. SEB lent EUR 695 million to companies and EUR 234 million to private individuals last year.

Bank payments to the government rose by about 60%

“Banks have seen a significant increase in various taxes and compulsory levies in recent years. While we understand the many needs that the country is facing and will face in the future, we are not in favour of addressing the country's needs at the expense of one sector and by interfering with a free market economy. Unfortunately, we realise that there are always new initiatives to regulate the business environment. We look forward to promoting dialogue between the public and private sectors to stimulate growth in our country. Businesses should be allowed to operate and every effort should be made to think about how to remove barriers and facilitate processes,” says Ieva Tetere.

For the activity in 2024, the amount of taxes, fees and other mandatory payments made by SEB to the Latvian state amounted to EUR 88.9 million, almost 60% more than in 2023. As a reminder, in addition to all normal corporate taxes, banks must also pay a financial stability fee and fees for financial market supervision. Compensation for mortgage borrowers was also due last year. As of this year, the so-called “solidarity” payment or tax on surplus profits has been included as an additional payment.

Financial indicators of the SEB Group in Latvia in the twelve months of 2024:

Revenue – EUR 260,9 million;
Profit before provisions – EUR 196,6 million;
Operating profit (after taxes and provisions) – EUR 141,7 million;
Provisions for expected credit losses: reduced from 1 January to 31 December to 5,6 million;
Total deposits – EUR 4.9 billion;
Total credit portfolio: EUR 3.4 billion;
Assets – EUR 5,9 billion;
Capital – EUR 662 million.