Aizkraukles Banka — Latvia’s most rapidly growing bank in terms of loan portfolio

July 7, 2004 / Banking

Loan volumes increase most rapidly

During the first five months of 2004, Aizkraukles Banka enjoyed the most rapid growth in its loan portfolio among all Latvian banks, according to the Latvian Association of Commercial Banks.

An increase in the loan portfolio of 145.9%

The volume of housing loans issued by Aizkraukles Banka increased by 173.2% in the first five months of 2004 — the leading growth rate among Latvia’s commercial banks. The volume of loans increased by Ls 16.162 million, to a total of Ls 38.233 million in June this year. The total volume of mortgage loans has increased by 217.9% or Ls 27.23 million. In the first five months of the year, the overall loan portfolio of Aizkraukles Banka has increased by 145.9% to Ls 96.703 million.

Lending — the bank’s priority

"The priority for Aizkraukles Banka is lending to private individuals. These data demonstrate that our strategy was the correct one and our co-operation with clients is mutually advantageous," said Olegs Fils, co-owner and deputy board chairman of Aizkraukles Banka.

Several new loan products

Aizkraukles Banka is also offering several new lending products. "A loan to purchase or repair a summer home" allow people to buy or improve their summer or garden home. This programme offers a loan which is equal to up to 80% of the value of the building. Loans are issued more quickly when the summer home itself serves as collateral for the loan.

The "Loan for your first home" programme allows clients to receive a loan of up to 95% of the value of the home, and this is particularly advantageous for those clients who have not saved up money for their share of the investment. The "105% loan" offers clients two different loans — the sum for purchasing or building the home, as well as money for the repair and furnishing of the home — up to 20% of the value of the insurance value, with the total loan obligation reaching as much as 105% of the value. People who take out this loan can also receive a 15% discount on installed kitchen appliances from Electrolux.

Aizkraukles Banka — the 5th largest bank in Latvia

Aizkraukles Banka belongs to Latvian shareholders and is the 5th largest bank in Latvia right now. It specialises in loans and is active in the domestic and the international market.