Aizkraukles Banka increases own capital

September 6, 2004 / Banking

Profits: Ls 3.86 million

On Friday, September 3, the shareholders of the stock company "Aizkraukles Banka" held a general meeting and decided to increase the bank’s own capital significantly, dedicating profits from the first half of 2004 to this purpose. According to audited results, Aizkraukles Banka had profits of Ls 3.86 million in the first six months of this year, which means that the bank’s own capital now amounts to Ls 22.78 million.

Deposits have increased particularly quickly

In accordance with reporting data from the first half-year which the bank’s shareholders approved at the aforementioned meeting, the period has been successful for Aizkraukles Banka. In the first half-year, the bank attracted more than Ls 84 million in deposits — six times more than during the same period in 2003. The bank’s assets increased by 38% over the first half-year to a level of Ls 348.9 million.

The bank’s strategy has been implemented successfully

Also during the first half of this year, Aizkraukles Banka successfully continued to implement its strategy — to become the leading commercial bank in the area of private lending. At the end of June 2004, the bank had issued mortgage loans at a total of Ls 54.8 million. According to the Latvian Association of Commercial Banks, Aizkraukles Banka’s loan portfolio has expanded more rapidly than any other bank’s. Aizkraukles Banka currently holds 5.1% of the mortgage loans that have been issued in Latvia.

Aizkraukles Banka has made significant investments in the development of its client services infrastructure. During the first half of 2004, Aizkraukles Banka opened a new central office at Elizabetes Street 23 in Riga, as well as several new client service centres in Riga and Jurmala.

The bank is expanding Benefits for the public

"We believe that the role of the entrepreneur today is not just to earn money. We are responsible for ensuring the emergence of an active and healthy society in Latvia, one that will serve as a foundation for stable development of the state," says Olegs Fils, co-owner of Aizkraukles Banka and the deputy chairman of its board.

That is why the bank has dedicated some of its earnings to various projects that are of importance to society. The bank has donated funds for the renovation of the Paediatric Clinical University Hospital, for the production of a children’s opera, «Noah’s Ark», at the Latvian National Opera, and for a programme called "Educating Loan Recipients" that has been organised by the Latvian Association for Consumer Interest Protection. Aizkraukles Banka also supports sports — it is the leading sponsor of the Latvian Handball Federation.

Aizkraukles Banka belongs to Latvian shareholders and is the 5th largest bank in Latvia at this time.

Olegs Fils,
deputy board chairman.