Aizkraukles Banka sells small part of its mortgage loan portfolio to Nordea Banka

November 15, 2010, 16:33 / Banking

AS Aizkraukles Banka has entered into agreement with Latvian branch of Nordea Bank Finland Plc on assigning rights of claim under 55 mortgage loans. The total deal amount is about LVL 4.2 million, i.e. approximately 1% of the bank’s current mortgage loan portfolio. Compare: during 2009, the bank’s mortgage loan portfolio has been decreased by LVL 22.88 million, i.e. 5%.

Deputy Head of Aizkraukles Banka Board Oļegs Fiļs explained the reasons for entering into the agreement: “This deal represents another step in implementing Aizkraukles Banka strategy of focusing on development of tailored financial solutions and investment management. It should be noted that Aizkraukles Banka has been persistently decreasing its mortgage loan portfolio, promoting early repayment of mortgage loans in part or in full. Whereas Nordea Banka aims at increasing its share in Latvian mortgage market. Specialization in particular lines of business allows more purposeful and efficient use of all types of resources, focusing on achievement of specific objectives, improving quality of offered services and raising customer satisfaction.”

All customers whose loan liabilities have been assigned to Nordea Banka are informed of it, as well as further payment procedures have been clarified for them. The conditions of loan agreements with those customers will remain unchanged. Nordea Banka has wider network of customer service centres, thus for most customers it will become even easier to make loan payments.

Jana Strogonova, Nordea Head of Retail, Member of the Board: “From a customer’s point of view, almost everything will remain unchanged — before, loan payments were made in Aizkraukles Banka, further on, those will be made to Nordea Banka account. Customers will benefit from this, due to being able to enjoy full range of services offered by Nordea Banka — their reliable and trustworthy business partner. Moreover, our Gold customers are offered significant discounts for various services, advantageous interest rates and, of course, personal banking advisor.”

The deal is a good example of interbank cooperation achieved in mutual trust environment, where both parties benefit from the deal. According to the strategy, Aizkraukles Banka will quit from mortgage lending business in 5 years, improving and developing set of private banking products and services.

AS Aizkraukles Banka is the largest independent private bank in Latvia with controlling interest owned by Latvian shareholders. The bank’s majority shareholders — Oleg Fil, Ernest Bernis and Nika Berne — hold 85.90% of the bank’s share capital. Aizkraukles Banka Group includes brokerage joint stock company AB.LV Capital Markets, investment management joint stock company AB.LV Asset Management, KS AB.LV Transform Partnership, SIA AB.LV Transform 1, AS AB Konsultācijas, SIA AB.LV Corporate Services, SIA New Hanza City, SIA Elizabetes 21a, and other companies.

Ilmars Jargans
Head of Public Relations Department
+ 371 6700 2296
ilmars.jargans@ab.lv