Aizkraukles Banka continues expansion

October 3, 2005 / Banking

The profit being allocated for expansion of bank’s activity

On September 21, 2005, at a meeting of shareholders, Aizkraukles Banka (AB.LV) decided to include profits from the first half-year in the bank’s capital, the aim being to expand operations. Aizkraukles Banka earned Ls 6.8 million in the first half of the year — 1.7 times more than during the first half of 2004.

Loan portfolio amounted to Ls 209.7 million

The shareholders also approved a consolidated report on operations in the first half of 2005. This report indicates that the bank’s gross loan portfolio amounted to Ls 209.7 million on 30 June 2005, or two times more than on the same date in 2004.

Deposits increased for 48%

The amount of deposits attracted during the first half-year was Ls 452 million, which is 48% more than at the end of June in 2004. The bank’s no-term investment portfolio posted profitability of 11.69%. Income from the trade portfolio in the first half of 2005 was 11.71% on the year.

Aizkraukles Banka is the leader of mortgage lending system

At the beginning of 2005, Aizkraukles Banka continued to strengthen its positions in the mortgage loans market in Latvia. The amount of mortgage lending at the end of the first six months of the year was Ls 108 million, up 52% over the figure at the beginning of the year. The bank handles approximately 18% of the private mortgage lending system in Riga and the Riga District. Aizkraukles Banka, by July, had issued mortgage loans equal to Ls 133 million, or 58% more than in the first six months of the previous year.

Aizkraukles Banka has opened new client service centre and modern Internet banking system

The bank also optimised its client service facilities in the first half-year, opening the new client service centre «Krasts». This represented the merger of two older client service facilities — the «Motors» billing centre and the «Imanta» client service centre. The «AB.LV» Internet banking system was modernised during the first half-year, and 10,000 bank clients use it at this time. Another innovation is that the director of the bank’s International Operations Board, who oversees the bank’s international business, joined the bank’s board of directors.

Specialises in mortgage lending sphere since 1997

Aizkraukles Banka was established in 1993 and belongs to Latvian shareholders. It is the fifth largest bank in Latvia at this time and has specialised in mortgage lending since 1997.