Riga, Latvia, 2015-02-28 20:01 CET (GLOBE NEWSWIRE) -- The Bank operates in the EU and CIS countries and the current turbulent geopolitical environment made it more complicated to operate in. However, maintaining a close contact to our clients through our extensive network of representative offices, we have continued to cooperate with our customer successfully. All customers have access to the Bank remotely through internet banking, phone banking, private bankers and regional managers and 24 h customer support service.
The Bank is a leader in the Baltic States in e-Commerce and revenue from e-commerce has continued to its impressive growth. The Bank continued to improve its internet and mobile banking applications and in 2014 we launched an updated mobile banking application. As a result of the uncertain regional environment the Bank has slowed down its commercial lending significantly in 2014. However, in 2014 the Bank placed significant efforts to grow its trade finance and transport finance businesses. Trade finance as well as developing new lending markets will be the areas the Bank will focus on in developing its lending business.
The economical and geopolitical environment during 2014 presented many new opportunities to the Bank and we believe that using our customer oriented approach we were very successful in maximising these opportunities. We achieved our results while maintaining a conservative asset allocation which we believe is the basis to continue our stable development. We are looking forward to continue developing the Bank in 2015 successfully together with our customers.
After tax profit attributable to the Bank’s shareholders for the year ended 2014 was EUR 72 m which represents an increase of 35% compared to 2013. The Bank generated an after tax return on equity of 22,75 % (2013: 21,57%) and an after tax return on assets of 2.29% (2013: 2,04%).
Operating income reached EUR 146 m which represents an increase of 17% from 2013. Net interest income was EUR 65,3 m (2013:EUR 60 m) and net fee and commission EUR 54m (2013: EUR 36 m) with a cost to income ratio of 28,29% (2013: 30%). The Bank’s goal is to continue to maintain a cost income ratio of less than 40%. The result of the above is that the Bank reached a profit margin of 58.16% compared to 48.35% in 2013.
As at 31 December 2014 the Bank’s total assets were EUR 3,487 m. This represents an increase of 19% compared to 2013. The Bank’s follows a conservative approach to asset allocation and about 57% of the Bank’s assets invested in liquidity management portfolios.
Loans and receivables due from customers represent about 31% of total assets. Since 2010 this ratio has not exceeded 45% and the Bank does not plan that this ratio exceeds 45% in the nearest future. Loans and receivable to customers were EUR 1,091 m compared to the balance of 2013 of EUR 1,176 m. This stagnation of lending growth occurred due to a reduction of Russian landing exposure.
Current accounts and deposits due to customers reached EUR 3,070 m up 19% compared to 2013. Banks total shareholders’ equity reached EUR 324 m as of 31 December 2014 representing a 19% increase from 2013.
Eleonora Gailisha Mass Media and Public Relations Phone: +371-67020506 Fax: +371-67020563 E-mail: egailisha@rietumu.lv
