In 2Q 2018, Baltic International Bank heightens its FPIs across the key areas of operation
In 2Q 2018, Baltic International Bank has increased its financial performance indicators (FPIs) across the priority business directions, such as management of assets and private funds, brokerage services, customer service, and administration of payment cards. Total amount of customers’ funds held with the Bank grew by 5% to reach EUR 452 million. During 2Q 2018, the Bank placed a stronger focus on diversification of its customer portfolio, new customer acquisition (NCA) in the Bank’s all target markets, and further development of wealth management and investment services.
By the end of June, the total customer funds reached EUR 452 million, or up 5% compared to the end of 1Q 2018. The assets under management increased by 15% and reached EUR 72.7 million. In 2Q 2018, the volume of financial instruments in brokerage service has also shown a positive dynamics: by the end of June, it reached EUR 145 million, a 10-percent increase from the end of 1Q 2018 and a 20-percent increase from the beginning of 2018.
“During the first six months, the financial sector overall and Baltic International Bank in particular focused on boosting the quality of the customer portfolio. As part of our strategy, we therefore increasingly implemented de-risking measures. At the same time, the Bank was able to raise it FPIs across the key business areas which is indicative of successfully set objective, namely, to manage wealth while being guided by the business strategy underpinned by sustainable investments. The Bank also resumed providing custodian-bank services for the licensed investment firms and embarked on providing bond-issue services in an effort to build up a more robust income structure”, the Chairperson of the Management Board of Baltic International Bank Viktor Bolbat says.
By the end of 2Q 2018, the Bank’s operating income totalled EUR 5.59 million. But due to the rapid switch-over to the new business model and de-risking activities, the Bank ended 2Q 2018 with losses totalling EUR 2.33 million. The structure of the Bank’s operating income was heavily dominated by the net fee and commission income totalling EUR 19.3 million. The percentage of the net fee income in 2Q 2018 increased by 54.8% compared to the respective period of the previous year. The net interest income totalled 22.1%. Administrative expenses reached EUR 7.78.
The Bank’s high-quality liquid assets (assets carrying investment-grade credit rating and balances due from the Bank of Latvia) totalled EUR 153.63 million or 56% of the total assets. Investments in government bonds totalled EUR 17.4 million or 6.3% of the total assets.
The Bank maintains a well-diversified structure of liquid assets represented by bonds (17 percent), due from credit institutions (4 percent), due from the Bank of Latvia (78 percent) and cash (1 percent). The liquidity coverage ratio (LCR) totalled 208 percent. The net stable funding ratio (NSFR), characterizing the availability of a stable funding profile in relation to the composition of assets and off-balance sheet activities, reached 144.63 percent.
As of June 30, 2018, the Bank’s own funds totalled EUR 23.59 million. The Bank’s Tier I capital ratio was 9.67 percent. The total SREP ratio (TSCR ratio) reached 13.02 percent.
In spring 2018, the Bank's shareholders increased the Bank's capital by EUR 2.1 million. To further reinforce the Bank’s position in Latvia and to expand its activities in other target markets, a number of decisions were made to continue injecting capital.
In 2018, for the second consecutive year, Baltic International Bank has received the Gold Award from the annual Sustainability Index in recognition of the Bank’s progress in the sustainable approach towards business, employees and processes. The Bank received also the Family-Friendly Company Status awarded by the Ministry of Welfare of the Republic of Latvia.
Key financial indicators:
Total amount of the customers’ funds: EUR 452 million
Assets: EUR 274.42 million
Assets under management: EUR 72.7 million
Volume of financial instruments in brokerage service: EUR 145 million
Losses: EUR 2.33 million
Tier 1 capital ratio: 13.02%
Liquidity coverage ratio (at the end of June 2018): 208%
Liquidity ratio (in 2Q 2018): 76.80%
Full financial report for the period ended 30 June 2018