Profit of Aizkraukles banka in the first quarter of this year — 1.346 millions LVL

April 11, 2002 / Banking

During this year’s first quarter Aizkraukles Banka (AB) has been working with the profit of 1.346 millions LVL. This is by 17% or 195 thousands LVL more than during the first three months of the last year. AB’s profit in the first quarter of last year was 1.15 millions LVL.

In March of this year AB has earned 392.2 thousands LVL. The average level of the Bank’s return on assets at the end of the month (ROA) was 4.5%. Last year this essential indicator showing the efficacy of AB activities amounted 4.3 % and was the highest in the banking sector.

At the end of March 2002 assets of Aizkraukles Banka were 12.5 millions LVL. During March, AB’s assets rose by 1.6 millions LVL. On its turn, the funds deposited within AB’ s increased by 6.7 millions LVL during the last month reaching 104.3 millions LVL at the end of the quarter.

Since the end of the last year the amount of investments in securities of AB has also increased by 4%, amounting 29.3 millions LVL at the end of March.

Increases its share authorized capital

At the end of March AB received the permission from the Council of Finance and Capital Market Commission to increase the Bank’s authorized share capital up to 10 millions LVL. The Bank increased the authorized share capital by 5 millions LVL, using 2.1 million LVL from last year’s profit, and 2.9 millions LVL — from previous years’ retained earnings. "It will ensure higher stability of Bank’ s activities and investments’ security, " considers the Chairman of the AB Council Ernest Bernis.

Strives for extension of its market share

Now the Bank is going onward with an intensive work to improve technological products. It is planned to introduce a new Internet bank, which will significantly facilitate financial operations for Internet user.

To extend the Bank’s customer service in Riga, on its turn, a new Client Service Center of Aizkraukles Banka is going to be opened in Purvciems this week, on April 16.

AB is also working actively to strengthen the Bank’s identity and recognition of it’ s name, creating a stable brand, aiming the strategic purpose of Bank’ s investors to increase it’ s market share in Latvia.

Aivars Rauska,
Deputy Head of the Customer Service Division of Aizkraukles Banka