ABLV Bank, AS, profit in Q1 2014 – EUR 16.6 million

Riga, Latvia, May 30, 2014, 14:16 / Banking

Although the global political events cause certain risks for future growth of Latvian economy, Latvia remains being one of the most rapidly developing countries of the European Union, and its financial sector demonstrates even better performance.

Overall growth trends alongside with wisely chosen strategy positively affect fulfilment of ABLV Bank, AS, plans. In 2014, we plan to increase the operating income of ABLV Group at least by 15%. The growth will be based on the Group’s development and profitability increase. At the same time, great attention is paid to assessing and reducing possible impact of negative factors, as well as to risk management and compliance with regulatory requirements.

The bank’s financial performance in the first quarter of 2014 evidences stable growth and allows expecting achievement of the objectives set for 2014. All the bank’s major performance indicators remain high, including capital adequacy and liquidity ratios.

  • The bank’s profit in Q1 2014 amounted to EUR 16.6 million. Whereas in Q1 2013 it equalled EUR 11.8 million.
  • The bank’s operating income before allowances for credit losses totalled EUR 29.7 million. Compared with Q1 2013, the operating income has increased by 18.1%.
  • The bank’s amount of deposits and assets continued to grow. Since the beginning of 2014, the amount of deposits has increased by EUR 135.7 million, i.e., 4.9%, reaching EUR 2.91 billion.
  • The amount of issued debt securities reached EUR 343.9 million.
  • As at 31 March 2014, the amount of the bank’s assets totalled EUR 3.54 billion. Since the beginning of the year, the amount of assets has grown by 6.7%, the total assets increasing by EUR 223.1 million.
  • The bank’s loan portfolio equalled EUR 771.0 million, as at the end of March.
  • The bank’s capital and reserves amounted to EUR 159.3 million.
  • As at 31 March 2014, the bank’s capital adequacy ratio was 14.74%, whereas liquidity equalled 79.20%.
  • ROE reached 36.37%, and ROA – 1.90%, as at 31 March 2014.

The bank continued investing in securities. The total amount of the securities portfolio was equal to EUR 1.62 billion, as at 31 March 2014. The bank’s securities portfolio is mostly composed of fixed-income debt securities, and 70.2% of the portfolio is constituted by securities having credit rating AA- and higher. In terms of major countries, securities are allocated as follows: the USA – 27.1%, Russia – 11.9%, Germany – 11.1%, Canada – 10.1%, Sweden – 9.5%, Latvia – 9.0%, the Netherlands – 3.0%, Denmark – 2.0%, and Norway – 1.9%. Whereas 4.5% is constituted of securities issued by international institutions – the European Commission, EBRD, etc. In the reporting period, annual yield of the securities portfolio amounted to 1.8%.

The Board made the decision to initiate new bond issue programme, which was registered with the Financial and Capital Market Commission on 23rd of April 2014. Under this programme, we will perform public offer of the bonds amounting up to EUR 400 000 000 during the following 12 months. The issue will be performed in several steps.

The complete report for Q1 2014 is available at the bank’s home page www.ablv.lu.

ABLV Bank, AS, is the largest independent private bank in Latvia. The bank’s major shareholders — Oļegs Fiļs, Ernests Bernis and Nika Berne – directly and indirectly hold 86,23% of the bank's voting share capital. ABLV Group includes ABLV Bank, AS; ABLV Bank Luxembourg, S.A.; ABLV Capital Markets, IBAS; ABLV Asset Management, IPAS; Pillar Holding Company, 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, Vladivostok, Kiev, Odessa, Minsk, Almaty, Dushanbe, Baku, Tashkent, and Limassol.

Ilmārs Jargans
Head of Public Relations Department
+371 6777 5296