Audited Report of ABLV Bank, AS in Liquidation for Year 2020

Riga, Latvia, March 9, 2021, 13:33 / Banking

Liquidation Committee of ABLV Bank, AS in liquidation (hereinafter – the Company) has approved the audited financial report of the Company for the year 2020. The audit of the 2020 Financial Report was carried out by Nexia Audit Advice, SIA, a firm of sworn auditors.

Since 12 June 2018, the voluntary liquidation (hereinafter – liquidation) of ABLV Bank, AS is managed by the Liquidation Committee. In 2020, the Liquidation Committee of the Company continued the liquidation process in close cooperation with the stakeholders, including state institutions, thus 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 claims of all recognized creditors of the Company to full extent, unless there are legal obstacles precluding the payout.

By the end of 2020, there were 14 268 disbursements under liabilities and creditors’ claims performed, having disbursed almost a half a billion euros, namely, 497.7 million euros, including 449.2 million euros disbursed from the amounts transferred by the Company to the Deposit Guarantee Fund, and 48.5 million euros disbursed to creditors in the course of satisfaction of their claims.

The disbursements from the Deposit Guarantee Fund were received by more than 3100 former clients, who also have claims ranked in other groups. By the end of 2020, there were approximately 276 million euros disbursed to these creditors from the Deposit Guarantee Fund.

The Company is obligated to carry out creditor review in accordance with the applicable regulatory enactments in the field of prevention of money laundering, and terrorism and proliferation financing. The reviews are carried out by a team of Ernst&Young consultants (hereinafter – EY) that by the end of 2020 has started reviews of 2119 creditors with total amount of claim being EUR 1.35 billion.

In the reporting period, namely, July 2020, all bonds issued by the Company were excluded from the regulated market – Nasdaq Riga Bond List. Thus the accounting of bonds at Nasdaq CSD SE depository was terminated, as a result of which the Company has transferred the bonds into monetary claims and accounted them as monetary claims of the creditors. Excluding the bonds from the regulated market and transferring them into monetary claims shall not affect the lodged and admitted creditors’ claims, the amounts of these claims and the rank of satisfying these claims.

In 2020, the Company continued recovery of assets, and in that year there were EUR 109.8 million recovered. Since the beginning of its operation, the Liquidation Committee has in total recovered EUR 859.0 million. The amount of Company’s assets is sufficient to cover all creditor claims in full, which was the most significant prerequisite for the regulators (the European Central Bank and the FCMC) to approve the liquidation.

The key financial indicators as of 31 December 2020 are the following:

  • total amount of assets: EUR 2.27 billion;
  • creditor claims lodged: EUR 1.96 billion;
  • capital and reserves: EUR 235.2 million;
  • total recovered assets: EUR 859.0 million;
  • amount of taxes paid to the state budget in 2020: EUR 6.6 million;
  • number of employees: 202.

In the year to come, sale of assets, namely, the loan portfolio part of it, as well as continuous professional management of investments in subsidiaries shall have a crucial role in recovery of the remaining funds for satisfying the creditors’ claims in full.

See the audited financial report for the year 2020 here (in Latvian).