Urbo Bankas, a Lithuanian capital bank, generated a net profit of EUR 7.4 million in 2024. The Bank's loan portfolio grew by 30.6% to EUR 414.5 million last year, while the Bank's assets at the end of the year stood at EUR 634.8 million, or 15.8% more than a year earlier (EUR 548.1 million).
"2024 was a good year for the Lithuanian economy. At a time when even the major European countries such as Germany and France were struggling, our economy has adapted and demonstrated both impressive GDP growth (compared, again, to the European Union) and high consumer expectations, which are also contributing significantly to the positive economic trends. It has been a good year for our bank as well - we have maintained consistent, sustainable growth and improved our performance in all key categories of banking activity, from the number of loans issued or the deposit portfolio to the bank's assets and shareholders' equity," says Marius Arlauskas, Head of Administration of Urbo Bankas.
In addition to the aforementioned almost one-third increase in the loan portfolio, the deposits held with Urbo Bankas reached EUR 543.9 million at the end of December last year, up EUR 76.4 million year-on-year. The Bank's net interest income increased by a tenth, or EUR 2.1 million, to EUR 22.9 million. The annual net profit for 2024 of EUR 7.4 million was EUR 857 thousand lower than in 2023, which, according to Mr. Arlauskas, was due to lower commission income and investments in the bank's developments.
"In 2024, the bank entered a new phase of its development - we changed the long-standing name of Medicinos Bankas and became Urbo, we renewed our visual identity, and we moved our headquarters, which had been located on Pamenkalnio Street in Vilnius, to the central business district of Vilnius, Konstitucijos Avenue, and settled down in Artery, a modern and sustainable business centre," shares the Head of Administration of the Bank.
In the last quarter of last year, net service fee and commission income of Urbo Bankas decreased by 29.9% (EUR 1.5 million) to EUR 3.5 million compared to the last quarter of 2023, mainly due to a 70.2% (EUR 0.8 million) decrease in payment collection income and an 88.2% (EUR 0.4 million) decrease in brokerage income. The net result from foreign currency operations decreased by 26.5% (EUR 0.9 million) to EUR 2.4 million in the reference period.
"Looking at economic trends, there is little doubt that this year will be better than the last one: there is no threat of new spikes in inflation, GDP should grow by at least 3%, and wage growth, although not reaching a tenth, should remain high. It is expected that the Euribor base rate may be lowered to 2% this year, all of which will increase both the demand for Lithuanian exported goods and services and domestic consumption," says Mr. Arlauskas, adding that the positive economic trends will also have a positive impact on the bank's long-term performance.
The shareholders' equity of Urbo Bankas was EUR 64.3 million on the last day of the previous year and has increased by 13.3% during the year since 31 December 2023, when it was EUR 56.7 million. At the end of 2024, customer service network of Urbo Bankas consisted of 25 territorial branches with 280 employees.
For more information please contact: Julius Ivaška, Head of Business Division, tel. +370 601 04 453, e-mail media@urbo.lt
