On 26 February 2009, SIA „Ernst&Young Baltic” completed the audit of Aizkraukles Banka Group financial statements 2008, providing the opinion containing no remarks.
Evaluating the financial and general performance of the previous year, the Bank management was contented with the results and successful forecast of the market situation making it possible to adjust the bank working strategy accordingly.
The bank profit in 2008 was equal to LVL 10.7 million a positive result in the current market situation. The bank total operating revenues equalled LVL 57.5 million, before deducting expenses on creation of reserves. As of 31 December 2008, the value of assets was equal to LVL 983.4 million.
In accordance with the set strategic objectives, the bank gross loan portfolio was significantly decreased during the year from LVL 690 million at the end of 2007 to LVL 648 million at the end of 2008; at the same time, the off-balance liabilities on loans granted but not yet disbursed have been reduced by LVL 47 million.
In 2008, the bank employed conservative and cautious policy in evaluating the quality of loan portfolio, therefore creating substantial reserves. At the end of 2008, the total amount of reserves reached LVL 21 million, which is 3.2% of the total loan portfolio value.
Despite creation of reserves, at the end of 2008 the bank capital adequacy was equal to 16.09%, which is significantly above the minimum level of 8%, required by the Financial and Capital Market Commission (FCMC), and is also one of the highest in the bank history.
As of the end of 2008, the liquidity index was equal to 41.32%, which is significantly higher than the minimum rate of 30% set by FCMC.
The subsidiary companies included in Aizkraukles Banka Group — the investment management joint stock company „AB.LV Asset Management” and the brokerage joint stock company „AB.LV Capital Markets” — have also closed the year 2008 with profit.
The complete audited annual report 2008, alongside with the Council and the Board statements will be available at the Aizkraukles Banka homepage www.ab.lv in a few days.
JSC “Aizkraukles banka” is 100% owned by Latvian shareholders. The bank’s majority shareholders are Oleg Fil — 47.04% shares, Ernest Bernis and Nika Berne — 47.04% shares. The Aizkraukles Banka aim is to become the leading independent private bank in the Eastern Europe, combining all banking services, including asset management and advisory services, in a single customer-tailored offer. Aizkraukles Banka Group includes IPAS AB.LV Asset Management, IBAS AB.LV Capital Markets and other companies.