ABLV Bank, AS closed 2011 with profit of LVL 19.1 million

February 28, 2012, 12:00 / Banking

Riga, Latvia, 28 February 2012. Following its chosen business strategy and implementing all planned measures, ABLV Group achieved a notable growth in 2011. This is evidenced by the bank's audited financial indicators:

  • In 2011, the bank’s operating income before allowances for credit losses amounted to LVL 71.4 million, which is by 54.5% more than that in 2010 (LVL 46.2 million).
  • The bank’s audited profit for 2011 amounted to LVL 19.1 million.
  • During 2011, the amount of deposits with the bank has increased significantly — by 28.4% to reach LVL 1.6 billion. As at the end of 2011, ABLV Bank, AS ranked the first in terms of attracted deposits among all commercial banks operating in Latvia.
  • As at 31 December 2011, the amount of the bank’s assets equalled LVL 1.8 billion; ABLV Bank, AS ranked the fourth in terms of the amount of assets among commercial banks operating in Latvia.
  • The bank’s loan portfolio has decreased to LVL 470.6 million (as at 31 December 2010, it was equal to LVL 517.5 million). As at 31 December 2011, the loan portfolio constituted 26.3% of the bank’s total assets. At the same time, the loan portfolio quality has improved: the allowances for credit losses made in 2011 totalled LVL 17.1 million (those made in 2010 were equal to LVL 28.9 million).
  • The bank’s capital and reserves amounted to LVL 90.2 million (as at 31 December 2010 — LVL 75.4 million).
  • As at 31 December 2011, the bank’s capital adequacy ratio was 15.47%, whereas liquidity equalled 73.26%.
  • ROE reached 22.06%, and ROA — 1.2%, as at the end of the year.

The last year was full of events significant for development of ABLV Group: change of the bank’s and other Group companies’ names alongside the implementation of new brand ABLV, release of more convenient and secure Internetbank, first public bond issue.

In 2011 affiliate companies of ABLV Bank rendering investment services worked hardly on launching new services and improving existing ones. At the end of the last year, the bank’s affiliate company ABLV Asset Management, IPAS established new corporate bond subfund ABLV High Yield CIS RUB Bond Fund. This is the first financial instrument in Russian roubles registered at stock exchanges of the Baltic States. Both ABLV Asset Management, IPAS, and ABLV Capital Markets, IBAS, ended 2011 with operating profit — of LVL 0.2 million and LVL 1.2 million respectively. The bank’s affiliate company ABLV Private Equity Management, SIA, established in 2010, continued to develop; this company establishes and manages risk capital investment funds for making investments in share capital of promising Latvian and foreign companies. The company manages direct investment fund ABLV Private Equity Fund 2010, KS, which has acquired capital shares of biogas producing company, leading pharmaceutical company, and special private clinic. As at the end of 2011, assets of ABLV Private Equity Fund 2010, KS totalled EUR 10 million. Whereas the group of ABLV Transform companies, which operate in the field of real estate development and management, completed such large-scale real estate projects as Saules Rasa, Pine Breeze, and Mārtiņa Nams 2. In total, during 2011 companies of ABLV Transform Group sold 150 properties for more than LVL 13 million.

Third line of ABLV Group business — advisory — is also developing rapidly. The service of obtaining residence permit in Latvia, rendered by ABLV Corporate Services, SIA, became very popular among customers, as well as legal and tax advice provided by this company. In the last year, customers were also offered new advisory services, such as establishment of holding structures, settlement of trusts, and assistance in changing tax residency. ABLV Consulting Services, AS was also operating successfully, assisting in maintaining relations with existing customers and attracting new customers at ABLV Group target markets.

In 2011 the bank established ABLV Luxembourg, S.A., the aim of which is to explore financial market of Luxembourg and prepare everything necessary for obtaining banking license. ABLV Bank, AS, subsidiary bank in Luxembourg is supposed to start its operations at the end of 2012, and it will offer private banking and investment services to customers — investment management, brokerage services, and other banking services.

The bank’s Chairman of the Board and CEO Ernests Bernis considers that there are grounds for looking to the future with optimism. “Financial objectives set for 2011 have been surpassed, and the first months of 2012 evidence continuing growth. Making plans for 2012, we expect customers’ activity to increase by 25% at least, and we are sure ABLV group will continue working with profit in 2012 as well. We will continue expanding the Group’s and the bank’s activities gradually. In 2012 we will create about 70 jobs, and approximately 60 of those will be in Latvia. Just like before, major tasks for 2012 will be to ensure development of the Group and the bank, to increase their profitability, meanwhile improving methods of operations risk management.”

Complete audited report for 2011, as well as reports of the Council and the Board, and report of SIA Ernst & Young Baltic are available at the bank’s home page www.ablv.com.

ABLV Bank is the largest independent private bank in Latvia. The bank’s majority shareholders — Oļegs Fiļs, Ernests Bernis and Nika Berne — directly and indirectly hold 86% of the bank's share capital. ABLV Group includes ABLV Bank, AS; ABLV Capital Markets, IBAS; ABLV Asset Management, IPAS; ABLV Transform Partnership, KS; ABLV Consulting Services, AS; ABLV Corporate Services, SIA; New Hanza City, SIA, and other companies. ABLV Group has representative offices in Moscow, St. Petersburg, Yekaterinburg, Kiev, Odessa, Minsk, Almaty, Dushanbe, Baku, and Tashkent.

Ilmars Jargans
Head of Public Relations Department
+ 371 6777 5296