ABLV Bank, AS, profit for 9 months of 2014 – EUR 50.0 million

Riga, Latvia, November 27, 2014, 10:00 / Banking

Although varying trends were observed in the world economy and economic growth slowdown was observed in some countries, Latvian economic indicators are continuing being among the best in the European Union. In Q3 2014, Latvian real gross domestic product (GDP), according to data without seasonal adjustment, grew by 2.1%. Q3 2014 was favourable for ABLV Bank, AS, and the group. The business volume continued to grow and the bank’s profit amounted to EUR 50.0 million.

In Q3 2014, we continued a gradual substitution of long-term deposits with investments in bonds by performing more issues of ABLV Bank, AS bonds. So far we have performed 25 public bond issues. including the redeemed bonds. Currently, 19 bond issues are included in the Nasdaq Riga list of debt securities.

All major performance indicators evidence the growth of business:

  • ABLV Bank, AS, profit for 9 months of 2014 reached EUR 50.0 million.
  • The bank’s operating income for 9 months of 2014 before allowances for credit losses amounted to EUR 89.1 million.
  • During 9 months of 2014, the amount of deposits with the bank has grown by 11.0%, reaching EUR 3.08 billion.
  • As at 30 September 2014, the amount of the bank’s assets totalled EUR 3.80 billion.
  • The bank’s loan portfolio amounts to EUR 827.3 million, and the amount of commercial loans has increased to reach EUR 462.2 million.
  • The bank’s capital and reserves amounted to EUR 219.9 million.
  • As at 30 September 2014, the bank’s capital adequacy ratio was 16.71%, whereas liquidity equalled 85.22%.
  • ROE reached 34.14%, and ROA –1.86%.

The bank continued investing available funds in securities. The total amount of the securities portfolio equalled to EUR 1.99 billion, as at 30 September 2014. The bank’s securities portfolio is mostly composed of fixed-income debt securities. Securities having credit rating AA- and higher constitute 71.4% of the total securities portfolio. In terms of the countries, investments are allocated as follows: USA – 24.4%, Germany – 13.3%, Russia – 10.3%, Latvia – 10.2%, Canada – 9.4%, Sweden – 9.3%, Netherlands – 3.2%, and Norway – 2.1%. Whereas 5.8% is constituted by securities issued by international institutions – the European Commission, EBRD, etc. In the reporting period, annual yield of the securities portfolio amounted to 1.6%.

Significant deals were concluded in the sector of business financing. At the end of August, with the participation of ABLV Bank,AS, the deal of selling capital shares of Ventamonjaks terminal, dealing with transhipment of liquid ammonia at Ventspils Free Port, was successfully completed. The mentioned deal was one of the most significant deals in the transit and cargo transportation area recently – the deal amount equalled EUR 55 million, with the financing of ABLV Bank constituting EUR 33 million.

Whereas in September LNK Group used ABLV Bank financing of EUR 8.1 million to acquire office building at 15 J.Daliņa Street for more than EUR 10.5 million.


Despite complex geopolitical and macroeconomic situation leading to strong price fluctuations periodically occurring in financial markets, open-end mutual funds managed by ABLV Asset Management, IPAS, demonstrated good results. Consequently, the investors’ interest in investing in our funds was growing, and more than 180 our customers have acquired shares of our funds.

Since the beginning of 2014, the asset value of our mutual funds has grown approximately by EUR 13 million, and as at the end of September total value of their assets reached EUR 100 million. This is mainly due to even more our customers wishing to diversify their investment portfolios by acquiring shares of ABLV mutual funds, given low interest rates in the USA and Europe. Such investments enable substantial increase of the portfolio overall yield, compared with deposits.

Taking into account growing demand for our products, we plan to expand the range of offered funds in future by adding at least one new fund each year, so that customers have wider opportunities of investing in financial instruments.

Alongside overall growth of real estate market during nine months of 2014, great results were shown by real estate development and trading group Pillar: the group sold properties to the amount of EUR 26.9 million over nine months. Whereas during nine months of 2013 the amount of Pillar transactions equalled EUR 24.8 million.

Due to making investments in property renovation and improvement, as well as active selling of the properties, the number of those supervised by Pillar has decreased considerably: now they are about 750, while in 2012 there were approximately 1400 properties. This evidences that Pillar strategy of offering qualitative, fully completed, comfortable housing to customers proved to be the right one.

Over nine months this year, both the amount and number of transactions made by Pillar has increased. There are 475 transactions made in this year so far, which is by 28% more than during nine months in 2013.

The complete report for Q3 2014 and reports of the Council and the Board are available at the bank’s home page www.ablv.com.

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