Financial Report of ABLV Bank, AS in Liquidation for Nine Months

Riga, Latvia, November 22, 2019, 16:06 / Banking

In the third quarter of 2019, the Liquidation Committee of ABLV Bank, AS in liquidation (hereinafter – the Company) continued the liquidation and work in close cooperation with all the involved parties, including various state institutions, ensuring professional management, transparency and openness of the liquidation process under the supervision of the Financial and Capital Market Commission (hereinafter – the FCMC).

The objective of liquidation process remains unchanged – to satisfy the recognised claims of all Company’s creditors to full extent, unless there are legal obstacles precluding the disbursements.

By 30 September 2019, the Liquidation Committee has recovered assets in the amount of EUR 686 million, including EUR 391 million from the issued loans, and EUR 269 million from the securities, thus reducing the size of securities portfolio to EUR 35 million. At the end of September, 81% of all creditor claims are ensured by the recovered assets held with Latvijas Banka (incl. assets in fiduciary accounts).

As a result of a successful management of assets and professional work under the leadership of the Liquidation Committee, during 15 months since the commencement of voluntary liquidation the capital of Company's shareholders has decreased only by 6%: from EUR 310 million to EUR 291 million mainly by making accruals which reflect the decrease in the value of Company’s assets in accordance with the IFRS requirements.

The key financial indicators as of 30 September 2019 are the following:

  • total amount of assets: EUR 2.4 billion;
  • creditor claims lodged: EUR 2.0 billion;
  • total assets recovered: EUR 686 million
  • available cash: EUR 1.66 billion
  • capital and reserves: EUR 290.8 million.

In the reporting period creditor review process was commenced in accordance with the Methodology for AML/CFT/IS Compliance Monitoring Process approved by the FCMC on 6 March 2019. The reviews are carried out by a team of EY consultants comprised of experts from five countries.

On the grounds of the first results of the review, payout to creditors began in October in the order set forth by the Credit Institution Law starting with the groups of creditors consisting of 866 creditors with a total amount of recognised claims EUR 347 million. This groups are comprised of depositors that are natural persons, as well as small and medium-sized enterprises, state institutions.

Meanwhile, until the end of September 2019 the guaranteed compensations were paid to more than 13,700 clients. So far, EUR 440 million have been disbursed to clients in the form of guaranteed compensations, which is 91% of the total amount transferred by the Company to the Deposit Guarantee Fund.

See the financial report for the nine-month period here.