Urbo Bankas Achieves Growth in Financial Performance
Urbo Bankas, a prominent Lithuanian capital bank, has announced impressive financial results for 2024, culminating in a net profit of EUR 7.4 million. This marks a pivotal year for the bank, characterized by a notable 30.6% expansion of its loan portfolio, reaching a robust EUR 414.5 million. By the end of the year, the bank’s total assets soared to EUR 634.8 million, up 15.8% from EUR 548.1 million the previous year.
Insights from the Leadership
Marius Arlauskas, the Head of Administration at Urbo Bankas, expressed optimism about the current economic climate. He stated, "2024 was a good year for the Lithuanian economy. Our economy has adapted and demonstrated impressive GDP growth compared to other European countries. This resilient performance has positively influenced our bank as well, leading to sustainable growth across all key banking activities."
Key Financial Highlights
In addition to the substantial growth in the loan portfolio, Urbo Bankas reported a considerable rise in deposits, which totaled EUR 543.9 million at year-end—a year-on-year increase of EUR 76.4 million. Furthermore, net interest income grew by 10%, amounting to EUR 22.9 million. However, the bank's annual net profit of EUR 7.4 million saw a decrease of EUR 857 thousand compared to 2023, attributed to lower commission income and ongoing investments in the bank’s infrastructure and services.
Rebranding and Strategic Location Shift
A significant milestone in 2024 was the bank's transition from its former name, Medicinos Bankas, to Urbo, accompanied by a refreshed visual identity. The bank's headquarters also relocated from Pam?nkalnio Street in Vilnius to a modern site in the central business district on Konstitucijos Avenue, solidifying its presence in Artery, a contemporary business center.
Performance in the Last Quarter
Examining the bank's performance in the last quarter, net service fee and commission income fell by 29.9% (EUR 1.5 million), reaching EUR 3.5 million, influenced by significant drops in payment collection and brokerage incomes. Additionally, the net results from foreign currency operations decreased by 26.5% to EUR 2.4 million.
Future Economic Outlook
Looking ahead, Mr. Arlauskas expressed confidence that 2025 would show improvement over the previous year. Economic forecasts indicate no imminent inflation surges, with expected GDP growth of at least 3%. Wage increases are predicted to remain robust, and the Euribor base rate may drop to 2%, which could boost demand for Lithuanian exports and enhance domestic consumption.
Shareholders’ Equity and Workforce Developments
At the conclusion of 2024, Urbo Bankas’s shareholders’ equity stood at EUR 64.3 million, reflecting a 13.3% increase since the previous year’s EUR 56.7 million. The customer service network has also expanded, comprising 25 branches supported by a workforce of 280 staff members, dedicated to enhancing customer experiences and banking services.
For additional inquiries, please contact: Julius Ivaška, Head of Business Division, tel. +370 601 04 453, e-mail media@urbo.lt
Frequently Asked Questions
What is the net profit of Urbo Bankas for 2024?
Urbo Bankas reported a net profit of EUR 7.4 million for 2024.
How much did the loan portfolio grow?
The loan portfolio increased by 30.6%, reaching EUR 414.5 million.
What changes did Urbo Bankas undergo in 2024?
The bank rebranded from Medicinos Bankas to Urbo and relocated its headquarters.
What are the future economic expectations for Lithuania?
Forecasts indicate a GDP growth of at least 3% and reduced inflation threats.
How many branches does Urbo Bankas have?
Urbo Bankas operates 25 branches throughout the region.
