Audited Half-year Profit of Aizkraukles Banka (AB) — 2,586 Mill. Lats

September 8, 2003 / Banking

On Friday, September 5, 2003 Aizkraukles Banka Shareholders’ Meeting approved the Bank’s performance audited results for the first half year of 2003, and resolved not to pay out the Bank’s half-year profit as dividends but include it into AB equity capital, thus contributing to a further growth of the Bank.

According to the Bank’s performance audited results, AB profit for the first six moths of the year totaled 2 585 941 LVL which is a considerable increase in comparison to the planned level. The bank’s half-year audited profit is by LVL 694 thousand or 36,7% higher than for the corresponding period of the previous year. In total, the profit volume planned by AB for the year 2003 amounts to LVL 4,3 million which is by 14,7% higher than in the previous year.

Return on average assets (ROA) of the Bank is still high — 3%. According to the audited results AB assets volume for the period ending June, 2003 amounted to LVL 194,3 million having grown from the end of the year 2002 by LVL 19 million or 11%. Total funds (non-banking) attracted by the Bank for the six month period increased by LVL 13,8 million or 18%, and reached LVL 170,3 million.

For the reporting period the volume of loans issued by AB has reached LVL 48 million which is by LVL 7,5 million or 18,6% higher compared to the end of the previous year. The audit of Aizkraukles Banka performance results for the six month period of 2003 has been conducted by the international audit firm Ernst & Young.

Securities Portfolio Revaluation

For the period ending June, 2003 the volume of AB shareholders’ equity totaled more than LVL 22 million, but at the end of 2002 it was LVL 16,8 million. «We have reevaluated the bank’s securities portfolio in accordance to the market value», Aizkraukles Banka Chairman of the Board, Ernests Bernis, explained the increase of AB shareholders’ equity. "Despite the yield decrease in the international securities markets, AB managing of its securities portfolio has been efficient, that is the reason for its volume considerable growth".

The volume of investments held into debt securities and other fixed income securities has reached by the end of the first half of the year 2003 LVL 76 million with increase by LVL 26,9 million or 50,7% for the reporting period.

Paid-in share capital of Aizkraukles Banka amounts to LVL 10 million, number of shares is 100 thousand. The Bank has 154 shareholders, including 119 private individuals and 32 businesses. The major shareholders of the Bank are Olegs Fils (45,81%), Ernests Bernis and Nika Berne (45,81%) as well as Aleksandrs Bergmanis (3,87%).

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