ABLV Bank Profit in Q1 2017 – EUR 14.8 million

Riga, Latvia, May 29, 2017, 10:02 / Banking

ABLV Bank, AS performance in Q1 2017 enables it to predict that the aims set forth for this year will be reached. All significant indicators of the bank’s operation remain high, including capital adequacy and liquidity indicators.

In order to ensure stable growth for upcoming years we are gradually shifting emphasis to various business lines of the bank. We are decreasing the share of settlement business due to its higher risk profile, while focusing on quality servicing of capital with high value added, such as arranging issue of securities, lending to companies, supporting complex trade transactions, investment services. Our employees do have the necessary expertise and broad experience, which is a significant advantage upon rendering such services.

Continuing our bond issue programme, earlier in 2017 we performed two new coupon bond issues, their total size amounting to USD 75 million and EUR 20 million at face value. During initial placement, the bonds were acquired by 119 investors. The issues were performed under the Sixth Bond Offer Programme, and the bonds are included in the regulated market — Baltic bond list of Nasdaq Riga.

Bank continues active operation in commercial lending. In Q1 there were new loan agreements signed amounting in total to EUR 45.9 million, mainly lending to companies in Latvia. By the end of the reporting period, the amount of commercial loans portfolio reached EUR 659.6 million.

Within the reporting period, ABLV Group grew bigger per one new company ABLV Corporate Finance, SIA, which is going to offer professional help to existing and potential clients upon preparing and performing capital raise and company sale-purchase transactions. ABLV Group is highly experienced in servicing corporate clients, including consultations on business structuring, preparing and performing bond issues, as well as on other similar services that require highly professional experts of the field.

Financial results

Financial results of the Bank for Q1 2017 prove its stability and development:

  • The bank’s profit for Q1 2017 amounted to EUR 14.8 million.
  • The bank’s operating income totalled EUR 28.2 million.
  • The amount of the clients’ deposits equalled EUR 2.89 billion as at the end of the reporting period.
  • The amount of issued debt securities reached EUR 520.2 million.
  • As at 31 March 2017, the amount of the bank’s assets was EUR 3.90 billion.
  • The bank’s loan portfolio equalled EUR 1.03 billion, as at the end of March.
  • The bank’s capital and reserves amounted to EUR 337.7 million.
  • As at 31 March 2017, Bank’s capital adequacy ratio was equal to 19.24%, while liquidity – 79.12%.
  • ROE reached 17.75%, and ROA – 1.52%, as at 31 March 2017.

As at 31 March 2017, the amount of Bank’s securities portfolio was equal to EUR 1.86 billion. The bank’s securities portfolio is mostly composed of fixed-income debt securities, and 66.8% of the portfolio is constituted by securities having investment level AA- and higher. In terms of major countries, the securities are allocated as follows: USA – 18.4%, Germany – 15.9%, Latvia – 12.4%, Russia – 11.4%, Canada – 10.9%, Sweden – 5.8%, Netherlands – 3.6%. Whereas 5.0% is constituted by securities issued by international institutions. In the reporting period, average annual yield of the securities portfolio amounted to 2.60%.

Bank’s public quarter report as at 31 March 2017, as well as reports of the council and the board are available at the bank’s webpage www.ablv.com.

This announcement contains inside information.

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 87.03 % 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; Pillar Development, 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.