Unaudited Half-year Profit of Aizkraukles Banka (AB) — 2.486 Mill. Lats.

July 28, 2003 / Banking

A/S Aizkraukles Banka has concluded the first half of this year with the profit of 2 486 922 Ls, thus having improved this indicator by 594 924 Ls or 31.44% in comparison with the respective period of the previous year. This indicator meets the targets set by the Bank. The amount of profit forecasted for the year 2003 equals 4.3 mill. lats, which is 14.7% more than the past year. The average return of assets (ROA) of the Bank for the first half of this year was 2.9%.

The value of assets of A/S Aizkraukles Banka as of the end of June 2003 was 192.06 mill. Ls, having increased by 8.65% in comparison with the end of 2002. Whereas, the volume of non-bank deposits of AB has increased by 19.7 mill. Ls and reached 165.2 mill. Ls, having increased by 5.56% since the end of 2002.

When compared with the end of 2002, the loan portfolio of AB has increased by 18.07%, reaching 49.5 mill. Ls and demonstrating a continuous activation of AB’s crediting activities in the Latvian market.

Half-year Results Audited

For the time being, the bank’s performance during this half-year period is being audited by the international audit firm Ernst & Young. The allocation of the half-year profits shall be decided after receipt of the results of the audit. Last year, the bank’s shareholders resolved to include the half-yearly profit into the equity capital of the bank. The half-yearly profit is planned to be included into the equity capital also this year subject to receipt of the permission from the FCMC. The shareholders meeting aimed at discussing this and also other issues shall be held on 05 September 2003.