EMBank gains momentum – profit instead of losses and over 100 percent growth of the business loan portfolio

The European Central Bank (ECB) licensed bank, European Merchant Bank (EMBank), is now in its third year of operations in Lithuania and reported a profitable first quarter for 2022. The bank posted a profit of EUR 54 thousand in the first quarter of 2022, as opposed to a loss of EUR 393 thousand reported in the first quarter of 2021.

EMBank’s growth in the first quarter is also reflected in other key performance indicators. The number of signed business loans more than doubled and reached EUR 25 million, while the total amount of deposits increased by 105 percent and exceeded EUR 79 million, and the value of the bank’s total assets reached almost EUR 100 million – 83 percent more than a year ago.

In the first quarter of this year, the bank’s net interest income and net income also increased (by 406 and 114 percent, respectively). The net income reached EUR 1.465 million, compared to a total net income of EUR 4.2 million for the whole of 2021.

According to Sarp Demiray, CEO of EMBank, the beginning of 2022 was a stressful time for most businesses and people due to objective reasons, so striving to achieve great results was a difficult task. However, the investments made last year in relation to hiring highly-qualified specialists and developing a network of partners, as well as the decisions to focus on risk management, the implementation of advanced information technologies (IT) and the creation of a positive customer experience, allowed the bank to grow even more than anticipated, in a strained environment where a high number of businesses have adapted.

“The war in Ukraine threw some businesses out of balance for some time, but they quickly regrouped and continued working on new projects or entered new markets. Our successful adaptation is evident from the increased number of business loans we’ve signed. We’re also seeing a growing demand for other services, so one of our goals for 2022 is to offer card business (both issuing and acquiring), leasing and other financing products to businesses as quickly as possible,” said the CEO of EMBank.

In addition, the Chairman of the Board, Ekmel Cilingir, stated that the latest EMBank results prove the suitability of its long-term business strategy, which has ensured the new bank’s profitability and resilience to external factors in a relatively short space of time.

“From the very beginning, this bank has focused on small and medium-sized businesses (SMEs). In the current context of rising energy prices, disturbed logistic structures and soaring inflation, we are ready to become an important partner for SMEs, who will not only help them survive this difficult period but also give them a boost for future growth,” said Cilingir.

According to him, although geopolitical and economic reasons have complicated the forecast, the bank is expected to maintain a similar growth trend in the second quarter of the year, with working capital and investment loans as the main sources of its growth.

EMBank’s services have been used mainly by real estate, transport and storage, and manufacturing businesses, as well as credit institutions, and companies involved in the agriculture, forestry and fishing, wholesale and retail sectors.

EMBank provides a full set of various banking services starting from Working Capital and Investment loans, Credit Line and Overdrafts to such as Banking as a Service offering, combined with Safeguarding Account, Business Account, and Accumulative Account types as well as payment options through SEPA, Swift, and Target2.