The strategy selected by the Bank allowed it to increase its financial performance and strengthen its positions at a steady pace. Overall, the business environment remained complicated for the entire year, although we were able to make the market work to our advantage: to the advantage of the Bank, its clients and partners. Therefore, the excellent financial performance achieved by the Bank is good cause for celebration. Clients and counterparties appreciated the image of Latvia as a stable European financial centre and the Bank’s efforts in shaping a favourable commercial climate. Many of them have already made use of the Bank’s mediation in making major investments and establishing holding companies in Latvia. With a net profit of 9 million Latvian lats (12.8 million Euros) (after tax) in 2013, Baltikums Bank is among Latvia’s best in terms of profitability, return on equity and return on assets (26.08% and 2.25%), liquidity and capital adequacy (78.90% and 22%). Operating income in 2013 reached a record of 20.7 million Latvian lats (29.45 million Euros). Continuing with its strategy of expanding an international network and providing flawless private Banking service, the Bank acquired a financial company in Luxemburg, opened a representative office in Kyrgyzstan, and founded BB Broker Systems, SIA, a brokerage company. We justify the trust of our clients by understanding their ongoing priorities and long-term goals, diversifying risks in a smart way and working to get results, by acting as their trusted advisor and reliable strategic partner. In 2013, more than 30 new qualified professionals joined our team, including client relationship directors, private bankers, investment managers and consultants. This is a practical testament of our Bank’s strategic aim of creating the industry’s best environment for expressing one’s potential and achieving professional growth for banking specialists. During the year, we implemented a number of initiatives having strategic importance for the Bank, shaping a competitive investment environment for professional private investors and institutional clients. We opened a structural division devoted to trading stocks that circulate on international financial markets. We introduced trading platforms that meet exacting global standards. We made support of our securities operations more robust and developed new strategies for servicing financial and non-financial assets. The Bank’s successful work and the business of its clients have allowed a 37% increase in assets under management during the year, with an average return on managed assets of 6.2%, or nearly twice the industry average on the investment portfolio management market. Fiduciary deposits placed by clients increased by 78%; this type of savings is unusual for Latvia but did yield our clients high returns – in excess of 8% per annum. The Bank also organised and executed several issues of corporate bonds totalling more than 12 million Latvian lats (10 million Euros and 10 million U.S. dollars). Furthermore, in cooperation with leading international financial organisations, Baltikums Bank took active part in organising syndicated loans for Eastern European and CIS Banks. The Bank continued to expand its correspondent banking network: it now works with over 40 financial institutions in more than 20 countries. There are more options for making transfers in U.S. dollars, the Bank’s clients are able to execute international payments in Turkish liras. An important event in December 2013 was the establishment of the Baltikums Foundation charity in Latvia. This foundation will continue implementing initiatives to support socially important projects in a systemic, planned manner. All this gives us great momentum moving forward. We are certain that, in 2014, the Bank will maintain its dynamic development pace and offer our clients interesting new solutions for their businesses and personal fortunes. We thank our clients and partners for their trust and their support. We hope to continue developing relations that work in 2014. On behalf of Bank management, Aleksandrs Peškovs, Chairman of the Council Dmitrijs Latiševs, Chairman of the Board
Uldis Zandars Baltikums Bank AS Deputy of Head of the Product Development and Marketing Department Phone: +371 67 031 408, +371 29 206 536 E-mail: uldis.zandars@baltikums.eu
