Profit of Aizkraukles Bank in the first four month — 1,632 million lats

May 9, 2002 / Banking

During the first four moths this year Aizkraukles banka (AB) has been working with the profit of 1,632 million lats. In April AB has earned 286 thousand lats. At the end of the month the Bank's average return on assets (ROA) was 4% per annum. According to the statistics of the Financial and Capital Market Commission last year in Latvian banking serctor this indicator amounted on average 1,5%.

At the end of April of 2002 assets of Aizkraukles banka were 125,4 million lats. In March AB assets rose by 2,9 million lats. On its turn, the funds deposited within AB increased by 3.2 million lats during last month reaching 107.5 million lats at the end of April. Since the end of last year the amount of investments in securities has also been increased by 22% reaching 42.7 million lats at the end of April.

"One must note that the bank grows faster than planned," states the Chairman of the AB Council admitting, "it is quite common to a dynamic bank".

In order to extend the Bank's customer service in Riga, a new customer service centre of Aizkraukles Banka was opened in April. The center is situated in Purvciems at 51a Dzelzavas Street, opposite to «Mebelu nams». Account opening for corporates in "Purvciems" will be free of charge up to May 15. Up to the middle of this month corporate customers will be able to make transactions in US dollars and Euro for a symbolic fee — one lat.

Continues the reduction of mortgage loans rates

Since the beginning of May AB has reduced the interest rates for mortgage loans to individuals by 0.5% on average. AB has reduced both the floating and fixed rates and they will be applied to all new mortgage loan agreements in any currency. Herewith one can receive this type of loan from Aizkraukles banka in US dollars with floating rate beginning from 5.63% per annum and in Euromoney or lats beginning from 7,03%. The decrease was driven by the investigation of the local market situation and the decrease of AB money resources price index.

This can be considered as another step to bringing into effect the strategic objective set by the bank's shareholders to increase the bank's market share in Latvia. AB is also working actively to strengthen the bank's identity and recognition of its name, creating a stable brand.

AB's authorised share capital is 10 million lats.

Aivars Rauska,
Deputy Head of Customer Service Division of Aizkraukles banka