JSC Citadele banka (also called Citadele bank) is a Latvian bank established as a result of the restructuring of the private bank Parex Banka . At the time of creation , June 30, 2010 belonged to the state, was later privatized . It is the third largest bank in Latvia in terms of customers ( 280 723 customers ) and the sixth largest in terms of assets ( 2 642 642 800 euros ) [2] [3] . It is also the exclusive issuer of American Express cards in Latvia and Lithuania.
| Citadele banka | |
|---|---|
 | |
| Type of | Joint-Stock Company |
| Year of foundation | 2010 |
| Location |  Latvia : Riga |
| Assets | EUR 2,960,000 (2015) |
| Net profit | EUR 31,100,000 (2015) |
| Number of employees |
|
| Auditor | Kpmg |
| Bank Data Sources | Audited Annual Report [1] |
| Site | |
Content
History
At the end of 2008, as a result of the global economic crisis, one of the largest Latvian banks, Parex Banka , was on the verge of bankruptcy. In order to prevent the negative impact of the bankruptcy of the bank on the financial system of the country, on November 8, 2008, the Latvian government nationalized the bank, having received 51% of the shares for a symbolic amount of 2 lats (about 4 US dollars) and began to restructure it [4] [5] .
On June 1, 2010, Citadele Bank was fully owned by the state. July 30, 2010 the second shareholder was the European Bank for Reconstruction and Development (EBRD), which received 25% minus one share [4] .
As a result of the restructuring, most of the valuable assets were transferred to the newly formed bank, and the troubled assets remained on the balance sheet of Parex Banka [4] .
According to the original restructuring plan, the state share in the bank was to be sold before the end of 2014. On November 5, 2014, the Privatization Agency entered into an agreement with a group of investors on the sale of a state-owned block of shares. On April 20, 2015, the private equity company Ripplewood Advisors LLC (USA), representing the interests of 12 investors, became the new shareholder. The value of the sale of shares amounted to 74.7 million euros [4] . According to the National Audit Office of the Republic of Latvia , losses from the reorganization of Parex banka and the subsequent sale of Citadele can amount to up to 800 million euros [6] . A significant part of the information related to the transaction remains classified [7] .
In 2011, through Citadele the deposits of the bank ruined earlier by Latvijas Krājbanka were issued. The issuance of deposits to individuals in the amount of up to 100,000 euros was guaranteed by the state - the role of Citadele was to organize the payment process [8] .
In August 2013, the main assets of the bankrupt GE Money Bank [9] [10] were transferred to Citadele.
On January 2, 2014, Ripplewood Advisors LLC was renamed Kleinwort Benson Advisors LLC [11] .
In 2015, the bank intended to enter the stock exchange, but on November 11, 2015 officially announced the cancellation of intentions [12] .
Owners
- Investment Company - 75% plus one share
- European Bank for Reconstruction and Development - 25% minus one share
Structure
The Citadele group of companies includes the parent bank itself, branches in Lithuania and Estonia , as well as the following subsidiaries [13] :
- Asset Management Society "CBL Asset Management"
- Bank AP Anlage & Privatbank ( Switzerland )
- Life Insurance Society CBL Life
- Pension Fund CBL Atklātais pensiju fonds
- Hortus Residential, the manager of residential and other real estate acquired by the bank as a result of operations in the mortgage market
- RPG interjers LLC and Rīgas pirmā garāža LLC, managing the central bank building in Riga
Notes
- ↑ Citadele Bank Annual Report Archived October 22, 2016. for 2015
- ↑ Association of Commercial Banks of Latvia - “ Statistics - general indicators Archived copy of October 22, 2016 on Wayback Machine ”, June 30, 2016
- ↑ Latvian Association of Commercial Banks - “ Statistics - balance sheet data Archived October 22, 2016 on Wayback Machine ”, June 30, 2016
- ↑ 1 2 3 4 Latvian Privatization Agency - Restructuring of Parex Bank
- ↑ Radionov, Vadim . The government of Latvia has decided to acquire a 51% stake in Parex Bank , RIA Novosti (November 9, 2008). Date of appeal October 21, 2016.
- ↑ LSM.LV - National Audit Office: rescue of Private Parex turned into unprofitable Citadele surrender
- ↑ LSM.LV - Citadele Bank's deal to declassify
- ↑ Kerre, Elīna . Krājbankas noguldītājiem valsts garantētās atlīdzības izmaksās Citadele , Diena (November 25, 2011). Date of appeal October 21, 2016.
- ↑ Decision No. 41 of the Competition Council Archived on October 22, 2016. published on August 22, 2013
- ↑ Delfi.lv - GE Money Bank leaves Latvia with huge losses
- ↑ Bloomberg.com - Company Overview of Ripplewood Advisors LLC
- ↑ Citadele pulls out of stock market listing , LSM (November 11, 2015). Date of appeal October 21, 2016.
- ↑ Citadele Banka - About the Bank