Eight-month profits of Aizkraukles Banka – 2.622 million Ls

September 18, 2002 / Banking

The first eight months of this year, Aizkraukles Banka (AB) had generated a profit of 2.622 million Ls. The Return on Assets (ROA) of the bank as reported for this eight-month period was 3.05% 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 August this year, AB earned more than 447 thousand lats.

The assets of Aizkraukles Banka as of the end of August 2002 were equal to 156.9 million lats. The assets of AB increased by 32,7 million Ls during this year. Whereas, the volume of non-bank deposits of AB has increased by 28 million lats since the end of the last year, and reached 134.6 million Ls by the end of August.

When compared with the beginning of the year, the investment into treasury bills and other fixed-income securities of AB has increased by 17.3 million lats, reaching 52.2 million Ls by the end of August. As of the end of the month, the volume of loans granted by AB has reached 30.76 million Ls, whereas the equity and provisions – 15.69 million Ls.

Increased Demand for Banking Services Expected

“When planning an annual budget, we take into account the traditional increase in the demand for banking services appearing in the second half-year,” explains Mr. Olegs Fils – Deputy Chairman of the Board of AB, also noting that “the trade activity reaches its peak during the second half-year. It begins at the end of the summer and autumn along with the change of season. There are many merchants among our clients, and we feel a particular activity when the festivities are approaching, since as early as in November, the stores shall have racks full with merchandise.”

A sharper increase in the volume of assets and deposits of the bank is anticipated in the second half-year. “People are returning from summer holidays, thus also activating the financial transactions,” – elaborates, Mr. Aivars Rauska, Deputy Head of the Customer Service Division.

This is one of the reasons why AB is planning a more active lending activities during the second half-year and during the last quarter in particular.

More Active Crediting Planned

“The income level within the society is rising, the people are not afraid of the borrowing from banks, and it is becoming increasingly more popular to use the bank’s loan for acquisition of a new home or for the repairs of the existing one,” Mr. A. Rauska admits: “A similar situation can be observed when the lending to the businesses is considered. The corporate customers are planning the next year’s investment projects, as well as quite often require for additional working capital during the second half of the year.

I would like to emphasize that AB is allocates its services and attracts funds both in Latvian as well as in foreign financial markets, at the same time having confined the granting of loans only to the local market with a view of increasing its market share, attracting new clients as well as promoting the development of the Latvian economy.”

Aivars Rauska,
Deputy Head of the Customer Service Division

Aizkraukles Banka