Aizkraukles banka accounts for 2.175 million Ls profit in the first seven months of this year

August 20, 2002 / Banking

Aizkraukles Banka (AB) accounts for 2.175 million Ls profit in the first seven months of this year. The Average Return on Assets (ROA) of the bank as reported for this seven-month period was 2.99% per annum. The average value of this indicator in Latvian banking sector according to the data of the Financial and Capital Market Commission last year was 1.5%. In July this year, AB earned 283 thousand lats.

The assets of Aizkraukles Banka as of the end of July 2002 were equal to 133.6 million lats. The assets of AB increased by 27,4 million Ls in comparison with July of the last year. Whereas, the volume of non-bank deposits of AB has increased by 29 million lats compared with the respective period of the previous year, and reached 112.1 million Ls by the end of July.

Compared with the seven-month performance in 2001, the investment in bonds and fixed-income securities of AB has increased by almost 50%, reaching 50.8 million Ls by the end of July.

As of the end of the month, the volume of loans granted by AB has reached 30.1 million Ls, which is 4.4 million Ls more than at the end of July of the last year.

Operations Valued as Well-Balanced

"Shareholders highly appreciate the performance of the bank, for the client confidence is of primary importance in the banking business," thinks Mr. Olegs Fils — Deputy Chairman of the Board of AB, noting also that "under the circumstances of ever intensifying competition, the prudence by implementing a balanced credit policy becomes very important".

The profit of AB generated during the half-year was adjusted in the course of the bank’s half-year performance audit. According to the audited data it was equal to 1.892 million Ls. The bank’s performance for the first half-year was audited by international auditing company Ernst&Young. The auditors’ opinion is still to be approved by the shareholders of AB, who are also planning to resolve on the inclusion of the semi-annual profit into the shareholders equity of the bank. The shareholders equity and the provisions of AB as of the end of the last year were 13.6 million Ls. Share capital of the bank is, for the time being, equal to 10 million Ls.

"Internetbank AB.LV" with Multi-user Option Launched

In July, the bank launched a new Internet banking under the brand-name "Internetbank AB.LV". The main advantages of it are the enhanced security, functionality, convenience and wide personalization possibilities to meet the personal needs of each user. The new "Internetbank AB.LV" is also offering to its clients a possibility to afford different level of account access by several users, which is particularly important to companies. So-called multi-user option enables clients to fully control their cash flow and to delegate certain functions without changing the security level.

Aivars Rauska,
Deputy Head of Customer Service Division

Aizkraukles banka