Financial report of ABLV Bank, AS in liquidation for H1

Riga, Latvia, August 30, 2019, 15:55 / Banking

During the first six months of 2019, the Liquidation Committee of ABLV Bank, AS in liquidation (hereinafter – the Company) continued the liquidation process and cooperation with all stakeholders, including state institutions and public officials, ensuring ongoing transparency and openness of the solvent liquidation process.

Our objective remains unchanged – to satisfy the claims of all creditors of the Company fully, unless there are legal obstacles precluding a payout to a specific creditor, as assets of the Company exceed its liabilities. At the end of the reporting period, the recovered assets held as cash with the Latvijas Banka (Central Bank of Latvia) cover 78% of all creditor claims.

The Liquidation Committee has made a substantial progress with asset recovery in the first twelve months of its operations, and by 30 June 2019 the total amount of recovered assets reached EUR 610 million.

The amount of Company’s assets is sufficient to satisfy all creditor claims in full. The key financial indicators as of 30 June 2019 are the following:

  • total amount of assets: EUR 2.3 billion;
  • creditor claims lodged: EUR 2.0 billion;
  • available cash: EUR 1.6 billion;
  • capital and reserves: EUR 290.0 million;
  • total assets recovered: EUR 610 million.

The major event during the reporting period was the approval of the Methodology for AML/CFT/IS Compliance Monitoring Process for the independent compliance review of all Company’s creditors and related clients. The Methodology developed by international team of Ernst&Young consultants was agreed with Financial Intelligence Unit of Latvia and approved by the Council of the Financial and Capital Market Commission on 6 March 2019. Creditor compliance review requirements set forth in the Methodology correspond to the best international practices and Latvian legislation.

It is planned to commence pay-outs to creditors in the third quarter of 2019 by first satisfying claims ranked in the group comprised of depositors that are individuals, as well as micro, small and medium-sized enterprises, whose deposits were not covered by guaranteed compensation (i.e., the deposits exceeded EUR 100,000.00).

Guaranteed compensation payments are made by Citadele banka, AS since 3 March 2018. By the end of June 2019, guaranteed compensations were paid to 13,511 clients in the amount of EUR 434 million, i.e., 90% of the total amount transferred by the Company to the Deposit Guarantee Fund.

See the H1 financial report here.