Aizkraukles Banka consolidating its market positions

July 19, 2006 / Banking

Aizkraukles Banka’s successful financial period

Aizkraukles Banka’s (AB.LV) operating (non-audited) financial results for the first six month of 2005 indicate that AB.LV continues to consolidate its market positions among commercial banks of Latvia.

The Bank’s six-month profit has doubled against the first six months of 2005 and reached LVL 12.35 million.

Better performance of Aizkraukles Banka

The Bank’s well-thought strategy has resulted in growth of other financial indications as well. The Bank’s assets increased by 13.3% up to LVL 590.39 million, and the amount of deposits was LVL 487.95 million as of 30 June 2006. Deposits have grown by 8.3% against the respective period last year.

AB.LV has raised its loan portfolio volume substantially. The total amount of advanced loans has grown up to LVL 349.81 million, which is by 66.8% more than a year ago. Such growth is due to the Bank’s successful lending activities, in particular in the area of mortgage lending, which accounts for a considerable part of its total loan portfolio.

Over the first six month, the Bank also achieved good equity and asset return ratios against the same period last year. The Bank’s ROE amounted to 49.80% (49.34% last year), and ROA was 4.46% (3.59% last year).

Bank’s specialization has justified

«The Bank’s specialization has justified in full, and all lines of our business — mortgage lending, servicing of local corporate and non-resident customers, as well as investment activities are very lucrative, which explains our excellent performance. We have started consumer lending and customer investment management, and will continue to improve the range of our services in order to meet the demands of our customers», says Ernests Bernis, AB.LV co-owner and chairman of the board.

Important events for Aizkraukles Banka over the first half-year

In the first months of the year, following the Bank’s development strategy and for implementation of its intention to extend the range of customer services, AB.LV decided to establish two new joint stock subsidiaries — Investment Broker Joint Stock Company AB.LV Capital Markets and Investment Management Joint Stock Company AB.LV Asset Management.

Another important event in the Bank’s operation over the first six months was raising a syndicated loan. In late June, AB.LV signed an agreement for receiving a syndicated loan to the amount of EUR 50 million for one year with possible extension for another period. This is the largest loan in the Baltics raised by a private bank without foreign capital for the first time. 19 banks from 10 countries across the world confirmed their participation in the first syndicated loan to Aizkraukles Banka.

Aizkraukles Banka is a local bank

Aizkraukles Banka is 100% owned by Latvian shareholders and carries on its activities both in Latvia and abroad, offering a wide range of financial services to its customers. The Bank’s majority shareholders are Ernests Bernis and Nika Berne — 46.45% shares, and Olegs Fils — 46.45% shares.