Financial Report of ABLV Bank, AS in Liquidation for the 2nd Quarter of 2020

Riga, Latvia, August 19, 2020, 18:25 / Banking

In the 2nd quarter of 2020, the Liquidation Committee of ABLV Bank, AS in liquidation (hereinafter – the Company) proceeded with the liquidation process and 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 the liquidation process remains unchanged – to satisfy the recognised claims of all the Company’s creditors in full, unless there are legal obstacles precluding the disbursements, taking into account that both at the start of liquidation and at present the Company’s assets exceed the amount of liabilities.

By the end of June 2020, already more than 14 000 ex-clients of the Company had recovered their deposits. Mostly, those are clients with an account balance up to EUR 100 000, to whom pay-outs amounting to EUR 447 million in total have been made from the funds transferred by the Company to the Deposit Guarantee Fund.

Additionally, in the reporting period, work with more than 3000 largest account balance owners continued, the total of these balances reaching a little over EUR 2 billion. The Company has an obligation to carry out creditor reviews in accordance with the requirements of the applicable normative acts in the sphere of anti-money laundering and terrorism financing and proliferation. An international team of Ernst&Young (EY) specialists hired by the Company carries out the reviews. By the end of June 2020, it had initiated 992 creditor reviews, the total sum of claims amounting to EUR 494 million. It is expected to complete the reviews by the end of 2021.

In the reporting period, asset recovery continued and, during the first half of the year, EUR 49.3 million have been recovered. Since the beginning of its operation, the Liquidation Committee has recovered assets worth EUR 798.5 million in total. The amount of the Company’s assets is sufficient to cover all the creditor claims in full, which was the most important prerequisite set forth by regulatory institutions (Europe’s Central Bank and FCMC) in order for the liquidation process to be approved.

Key financial indicators as at 30 June 2020:

  •  total amount of assets: EUR 2.32 billion;
  • creditor claims lodged: EUR 2.01 billion;
  • capital and reserves: EUR 241.8 million;
  • total assets recovered: EUR 798.5 million.

In 2020, within the framework of the liquidation process the Company continues to introduce changes in its organizational structure and to terminate employment with employees whose assistance is no longer required in the liquidation process. At the end of June 2020, the Company employed 240 employees.

See the financial report here.