Audited results for the first half-year better than those announced earlier

September 29, 2006 / Banking

Excellent financial results for the first half-year

Today, on 20 September, the general meeting of shareholders of the JSC Aizkraukles Banka (AB.LV) approved the consolidated financial statements, and the board announced the Bank’s excellent financial results for the first half-year of 2006. The results audited by the international audit company Ernst&Young Baltic indicate that over the first six months AB.LV profit reached LVL 13.4 million, which exceeds the earlier announced operative data by LVL 1.05 million.

Profit added to equity

The Bank’s general meeting decided to include its profit in AB.LV first-level equity as retained earnings and therefore to pay out no dividends. As a result, the Bank’s first- and second-level equity reached LVL 61.970 million at the end of the first half-year.

Well chosen lines of business have justified

«The first half-year was important for AB.LV due to its dramatic financial growth and improvement of the range of offered services, which was achieved by means of thorough assessment of risks and competitive services offered in the market,» says Ernests Bernis, AB.LV co-owner and chairman of the board, stating that «the Bank’s excellent performance proves that all lines of our business — mortgage lending, servicing of local corporate and non-resident customers, as well as investment activities — are very lucrative.»

AB.LV subsidiaries starting up their business

In late March of this year, two subsidiaries of AB.LV — the Investment Management Company AB.LV Asset Management and the Investment Broker Company AB.LV Capital Markets — received licences for investment management and investment services issued by the Financial and Capital Market Commission. The Investment Broker Company has already commenced its activities, and the other subsidiary will start offering its services in the near future.

AB.LV is a local bank

AB.LV 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.