The bank’s deposit portfolio increased by 31 percent in 2023. up to 133 million EUR, the loan portfolio increased by 11 percent. up to 121 million Eur. At the end of 2023, General Financing Bank’s capital adequacy ratio was 16 percent, and the liquidity coverage ratio (LCR) was 248 percent.
“In the third year of banking activity, General Financing bankas maintained growth and development trends, more and more clients chose us as their financial partner. The growth was determined by several main factors, first of all, the applied interest rates on deposits and loans. Consumer loan customers borrowed larger amounts for a longer period of time. In addition, last year we introduced a new product – a savings account,” says General Financing Bank’s CEO Justin Muleika.
In 2023, General Financing Bank’s interest income grew by 18.2 percent. – from 15.7 million EUR up to 18.6 million. Eur. This was due to the growing loan portfolio, changing its composition according to sales channels, attention to pricing strategies, interest on financial instruments and loans granted to other companies of the group.
According to J. Muleika, the bank will continue to pay a lot of attention to internal productivity, improve internal processes, increase their level of automation and create solutions that improve customer experience.
“The European Central Bank predicts that interest rates should decrease in 2024, but due to competition in the deposit market, deposit interest rates will decrease only after some time. Although the overall economic outlook for 2024 is moderately positive, high interest rates on household deposits will put pressure on interest margins. Credit prices will remain very competitive in the conditions of potentially falling interest rates, and profitability growth will continue to depend on the ability to provide customers with the highest level of service and meet their expectations in various sales channels,” says Mr. Muleika.
Tags: profit General Financing Bank year reached million euros
