Following the rise in interest rates in the Eurozone, SEB banka has already raised interest rates for term deposits eight times this year for both individuals and legal entities. The increase in the price of money most directly affected the interest received by customers on deposits – if last year SEB banka paid out 500 thousand euros in deposit interest to customers, then in 9 months of this year we have already paid out almost 16 million euros for deposits to customers, reports Anete Igaune, SEB banka’s organizational development communications manager.
“Although the positive period of interest rates has created challenges for borrowers, at the same time it has undeniably promoted the opportunities for SEB banka’s customers to earn additional income. This year, we have not only actively raised interest rates on deposits, but we are also expanding the range of deposit options. Individuals have the opportunity to use not only time deposits and savings account, but also a digital savings bank, which replenishes savings after every purchase that is paid for by card. In June, we started offering a savings account to companies as well, for which we have observed an almost record-breaking interest – since the beginning of the year, the amount of company deposits in SEB bank has increased by 160%, reaching more than 300 million euros at the end of September. At the same time, the amount of deposits of private individuals also increased by 45%, reaching 640 million euros,” says Ieva Tetere, head of SEB banka.
Individuals have chosen to deposit 27% of their funds in time deposits and savings accounts, but in the future, SEB customers will also be able to earn money saved in current accounts. SEB banka, as the first bank in Latvia, has announced plans to start paying interest on money stored in private individuals’ current accounts in November. The interest rate will be 0.4% per year and will be paid on account balances up to EUR 5,000. We have calculated that this step will allow SEB customers to earn additional income of approximately 2.2 million euros per year.
SEB banka has supported more than 3,200 business projects in the amount of 677 million euros this year. This year, telecommunications, energy services, production, transport, real estate companies have attracted financing in the segment of large companies, mainly for investments in the creation of new fixed assets, co-financing of company acquisition transactions and financing of working capital. On the other hand, in the segment of small and medium enterprises, the largest demand was from municipal enterprises that borrowed for long-term investments and working capital. Long-term projects are related to the renewal of outdated infrastructure and the transition to greener energy.
SEB banka’s mortgage loan portfolio grew by 3 percent this year, mainly due to the activity of private individuals. We have helped clients buy almost 1,500 new homes. We observe that in the 3rd quarter, the number of customers who both partially and completely pay off their credit obligations before the contract term has increased. The financial situation of households can generally be seen as strong, as evidenced by the good discipline of customers in making payments. This means that both the customers and the bank have carefully evaluated the potential risks in advance. At the same time, in order to promote the development of lending and to give encouragement to those who are currently thinking about purchasing their property, SEB banka canceled all commissions related to housing loans this year.
2023-10-25 10:46:52
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