Q3 Financial Report Approved

Riga, Latvia, November 23, 2020, 14:06 / Banking

Ensuring professional management, transparency and openness of the liquidation process, the consolidated and separate financial report of ABLV Bank, AS in liquidation (the Company) for the third quarter 2020 is approved.

By the end of September 2020, already more than 14 000 former clients of the Company have recovered their deposits. Mostly, those are clients with an account balance up to EUR 100 000, to whom there were in total EUR 447 million disbursed from the funds transferred by the Company to the Deposit Guarantee Fund.

In the reporting period, work with more than 3000 largest account balance owners continued, the total of these balances amounting to EUR 2 billion. The Company has an obligation to carry out creditor reviews in accordance with the requirements of the applicable regulatory enactments in the field of prevention of money laundering and terrorism and proliferation financing. An international team of Ernst&Young (EY) specialists was hired by the Company carries out the reviews. By the end of September 2020, it initiated 1505 creditor reviews with a total sum of claims amounting to EUR 705.3 million. It is expected to complete the reviews by the end of 2021. By the end of the reporting period, there were creditors’ claims in total amount of EUR 26.7 million disbursed.

In July 2020, all the bonds issued by the Company were excluded from the regulated market – Nasdaq Riga Debt Securities List. With that the accounting of bonds at Nasdaq CSD, SE was suspended, and the bonds claimed in the monetary claims shall be accounted in the registers of the Company only as claims of disbursement of the creditors of the Company. Excluding the bonds from the regulated market and expressing them in monetary values does not affect the lodged and recognized claims of the creditors who are bond-holders, the amounts of the claims, the order of satisfying them, and the terms of disbursement of the claims.

In the reporting period, asset recovery continued and, during the nine months of 2020, there were EUR 75.0 million recovered. Since the beginning of its operation, the Liquidation Committee has recovered assets in the amount of EUR 824.3 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. 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.

Key financial indicators as at 30 September 2020:

  • total amount of assets: EUR 2.3 billion;
  • creditor claims lodged: EUR 1.99 billion;
  • capital and reserves: EUR 238.0 million;
  • total assets recovered: EUR 824.3 million.

See the financial report here.