EMBank’s earnings for the first half of 2024 have increased by over 50%

European Merchant Bank (EMBank), a provider of financial solutions to small and medium-sized businesses, has recorded growth in almost all of its financial indicators in the first half of this year compared to the same period a year ago. In addition to income, the volume of deposits and the business portfolio also demonstrated notable growth. The total income figure has exceeded the EUR 5 million threshold over the past six months.

EMBank’s net profit rose to almost EUR 636 thousand compared to EUR 311 thousand in the same period last year.

Total income increased by a quarter to EUR 5.3 million, while net interest income grew by around a third to just over EUR 2 million.

Sarp Demiray, CEO of European Merchant Bank, attributes these results to the bank’s strategic growth and the confidence of its corporate clients. He notes that the more stable economic situation, which allows businesses to plan their expansion with greater certainty, also contributes to the positive results.

“The last few years have presented a significant challenge for businesses, but there is now a sense of relief as the situation improves. The fact that around 20,000 new companies are registered per year in Lithuania demonstrates the potential of the country’s small and medium-sized businesses. Economic forecasts, which promise falling inflation, also provide a favourable environment for bold expansion. New trends in technology, artificial intelligence and emission reduction are driving growth, with an increasing number of businesses investing in these areas. We are pleased to be part of this change,” notes Mr. Demiray.

The corporate loan portfolio of the European Merchant Bank also saw a notable increase, from EUR 33.1 million to EUR 39.6 million. At the same time, total deposits grew to EUR 136.9 million, up from EUR 118.3 million at the same time last year.

The CEO of EMBank has stated that Lithuania is currently outperforming the majority of other EU countries in terms of overall loan portfolio growth. This indicates that Baltic businesses are becoming increasingly confident in planning their future actions.

“The European Central Bank (ECB) reports that Lithuania’s corporate loan portfolio has grown by approximately 8% over the past year. Only Estonia has experienced a similar growth rate, at 6%, while the Eurozone average is just below zero. Given the dynamic nature of the situation and the 25-bps cut in interest rates, we anticipate that business motivation may increase further with another rate cut forecast for this year.,” says Mr Demiray.

Mr. Ekmel Cilingir, Chairman of the Board of EMBank, emphasises that the bank is experiencing dynamic growth, which gives him confidence in its future prospects.

“We are seeing an increasing number of businesses opting for alternatives to the traditional banking sector, which is a testament to their trust in us. This is because we are growing alongside our clients’ businesses, adapting our products to meet their current and future needs. This is why we are deliberately expanding our product range and investing in strengthening our team of experts,” states the Chairman of the Board of EMBank.