AB.LV performance in Q3 2010

December 6, 2010, 18:11 / Banking

Aizkraukles Banka financial results for Q3 2010 have been summarized. Likewise the first two quarters of 2010, in the third quarter the bank’s business continued to grow in most important areas of operations – providing services to private and corporate customers, asset management, securities transactions, and lending to corporate customers.

The bank’s performance indicators remain high, including capital adequacy and liquidity values. As of 30 September 2010, the bank’s liquidity reached 66.49%, exceeding that planned by the bank. Whereas the bank’s capital adequacy was equal to 15.18%, as of 30 September 2010.

The amount of the bank’s deposits and assets continues to grow. Since the beginning of 2010, the amount of deposits has increased by LVL 189 million, i.e. 21.7%, to reach LVL 1.058 billion. This value considerably exceeds the amount planned at the beginning of the year and has been achieved due to acquisition of new customers and active cooperation with existing ones. As of 30 September 2010, the bank’s assets equalled LVL 1.2 billion.

As of 30 September 2010, the bank’s operating income, before allowances for credit losses, totalled LVL 31 million.

The bank’s gross loan portfolio was equal to LVL 579 million, as of 30 September 2010. Applying caution in evaluating quality of the loan portfolio, the bank continued making allowances for credit losses. The total amount of allowances for loans equalled LVL 57 million, which is 10% of the gross loan portfolio. Given consistent implementation of the above allowance policy, the bank’s losses for the nine-month period ended 30 September 2010 totalled LVL 3.13 million, but since the group’s subsidiaries made profit, total losses of the group were considerably smaller – LVL 1.73 million.

Due to signs of recovery in the world’s and Latvian economy, as well as increasing paying capacity of people, newly made allowances are reduced. Consequently, the bank’s management is sure that Aizkraukles Banka will make profit in 2011.

Given considerable increase of deposits during the reporting period, the bank continued investing in securities. As of 30 September 2010, the total value of securities portfolio was equal to LVL 261 million. The securities of highest investment grade constitute 61% of the bank’s total securities portfolio, which is another evidence of the group’s and the bank’s cautious investment policy. Annual yield of the securities portfolio amounted to 6.2% in the reporting period.

Aizkraukles Banka is the largest independent private bank in Latvia with controlling interest owned by Latvian shareholders. The bank’s majority shareholders – Oleg Fil, Ernest Bernis and Nika Berne – hold 85.90% of the bank’s share capital. Aizkraukles Banka Group includes brokerage joint stock company AB.LV Capital Markets, investment management joint stock company AB.LV Asset Management, KS AB.LV Transform Partnership, SIA AB.LV Transform 1, AS AB Konsultācijas, SIA AB.LV Corporate Services, SIA New Hanza City, SIA Elizabetes 21a, and other companies.


Ilmars Jargans
Head of Public Relations Department
+ 371 6700 2296