ABLV Bank profit in Q3 2016 reached EUR 61.4 million

Riga, Latvia, November 28, 2016, 09:29 / Banking

Q3 2016 was favourable for ABLV Bank, AS and the group. All major business and efficiency indicators remained high.

In the long term, our business and that of the companies of the Latvian financial sector are positively affected by Riga gradually gaining the recognition as a notable financial centre. In the Global Financial Centres Index, published by the City of London's leading commercial think-tank “Z/Yen”, Riga is now ranked 19 places higher, taking the 3rd place among the cities of Eastern Europe. Luxembourg, where our subsidiary bank ABLV Bank Luxembourg, S. A. is located, also demonstrates improving results – it is now ranked 2 places higher in the index, being the 3rd best among the cities of Western Europe, and has the potential of becoming an even more significant player on the global financial stage.

In Q3, ABLV Bank continued issuing bonds. Under the Sixth Bond Offer Programme, from July to October there were four new coupon bond issues performed, their total amount being USD 150 million and EUR 40 million at face value, as well as one subordinated bond issue performed, the size of which amounted to EUR 20 million. Including the redeemed bonds, we have performed 39 public bond issues so far, their amount exceeding EUR 1 billion.

Major financial indicators of the bank in Q3 2016

ABLV Bank, AS profit for the nine months period of 2016 reached EUR 61.4 million.

  • The bank’s operating income for the nine months period of 2016 amounted to EUR 115.0 million.
  • As at 30 September 2016, the amount of deposits with the bank was equal to EUR 3.04 billion, and the amount of the bank’s assets – to EUR 4.01 billion.
  • The bank’s loan portfolio amounts to EUR 1.01 billion, and the amount of commercial loans has increased to reach EUR 635.9 million.
  • The bank’s capital and reserves amounted to EUR 307.7 million.
  • As at 30 September 2016, the bank’s capital adequacy ratio was 18.72%, whereas liquidity equalled 78.04%.
  • ROE reached 28.94%, and ROA –1.86%.

The total amount of the securities portfolio was equal to EUR 2.04 billion, as at 30 September 2016. The bank’s securities portfolio is mostly composed of fixed-income debt securities. Securities having credit rating AA- and higher constitute 68.2% of the total securities portfolio. In terms of the countries, the investments are allocated as follows: USA – 18.9%, Germany – 16.1%, Latvia – 12.2%, Russia – 11.0%, Canada – 10.3%, Sweden – 7.4%, Netherlands – 3.4%, Finland – 2.4%, Norway – 2.0%, and Austria – 2.0%. Whereas 4.4% is constituted of securities issued by international institutions. In the reporting period, annual yield of the securities portfolio amounted to 2.9%.

Other companies of ABLV Group

As at the end of September 2016, total assets under ABLV Asset Management, IPAS management amounted to EUR 121.6 million, of which EUR 120.1 million were the clients’ investments in mutual funds managed by the company, and EUR 1.5 million were the clients’ funds invested in individual investment programmes.

Over nine months of 2016, profit of ABLV Capital Markets, IBAS, which executes clients’ instructions for purchasing and selling all types of financial instruments, amounted to EUR 2.3 million.

Pillar group continued decreasing its property portfolio. This year, 150 properties have been sold for EUR 9.3 million. Thus, Pillar allocates increasingly more resources to the development of the large-scale New Hanza City (NHC) project. On 4 July this year, Pillar started the construction of NHC infrastructure, which includes the first stage of laying the streets and necessary engineering systems, incl. water supply, sewage, heating, and electricity supply systems. These works are planned to be completed by spring 2017. The functions of the general contractor of this project are carried out by Pillar Contractor, SIA. Following the installation of engineering systems – in Q2 2017 – the construction of ABLV central office and additional office building is planned to be started.

The report for Q3 2016 and reports of the Council and the Board are available at the bank’s website 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 86.55% 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, Vladivostok, Kiev, Odessa, Minsk, Almaty, Baku, Tashkent, Hong Kong, Limassol, and New York.