On the audited financial results of Baltic International Bank in 2016
The audited results of Baltic International Bank demonstrate that the Bank has continued its sustainable development in 2016. The operating income increased to reach EUR 28.25 million (Figure for Group - EUR 28.26 million) having demonstrated a 42.8 percent (42.6 percent) growth over the same period last year. The positive dynamics of the income growth was primarily fostered by trade transactions whose income increased by EUR 8.57 million (EUR 8.59 million). The operating income saw a positive significant impact attributed largely to a one-time gain on sale of Visa Europe Ltd share (the sale proceeds totalled EUR 2.79 million). Income gained from brokerage operations surged by 23.4 percent (23.4 percent).
The structure of the Bank’s operating income was heavily dominated by income from trade transactions totalling 60.8 percent (60.8 percent). Income from transactions and administration of current accounts and investment accounts grew by 2.36 percent (2.37 percent) in comparison to the previous reporting period.
The assets of the Bank reached EUR 308.4 million (EUR 308.1 million) at the end of 2016. Assets under management amounted to EUR 81.98, and the value of financial instruments in brokerage service – EUR 105.67 million (EUR 105.67 million). The audited profit of the Bank after taxes and provisions in the amount of EUR 7.65 million (EUR 7.32 million) reached EUR 135.4 thousand (EUR 325.5 thousand).
The liquidity ratios exceed the regulatory thresholds. As of 31 December 2016, the liquidity ratio was 70.01 percent (the minimum internal threshold is 60 percent). The liquidity coverage ratio (LCR) was 403.02 percent (400.21 percent) which is significantly better result in comparison to the minimum threshold for 2016 of 70%. The Bank’s net stable funding ratio (NSFR) which requires banks to maintain a stable funding profile in relation to the composition of their assets and off-balance sheet activities reached 143.40 percent (142.80 percent), far higher than the regulatory threshold. Banks will have to meet an NSFR of at least 100 percent in early 2018.
As of 31 December 2016, the Bank’s own funds totalled EUR 33.7 million (EUR 33.3 million). The Bank’s Tier 1 capital ratio (CET1) totalled 12.62 percent (12.39 percent). Having reached 16.48 percent (16.20 percent), the total capital ratio exceeds the individual ratio, as set by the Financial and Capital Market Commission, by 6.28 percentage points. By the end of 4Q 2016, the leverage ratio was 8.35 percent (8.30 percent).