In 2016, Baltic International Bank continued sustainable development and began implementing a new operational strategy
In 2016, Baltic International Bank continued sustainable development with a special focus on enhancing the Bank’s business model, elaborating a strategy, developing an internal control system and promoting performance efficiency, as well as creating and providing new financial products and services for customers.
New business strategy
2016 brought many challenges to the banking sector in Latvia in general, and I am gratified to say that, over the year, Baltic International Bank has become significantly stronger and more competitive. After more than a year of work, in autumn 2016 we finished elaborating the Bank’s new operational strategy aimed at sustainable, environmentally friendly investments, and we have already begun its active implementation. Our goal is to invest, together with our customers, in environmentally friendly technologies and projects aimed at producing and using renewable energy in Latvia and Western Europe. I am certain that our customers will highly appreciate the new opportunities.Chairperson of the Baltic International Bank Management Board Ilona Guļčaka
Successful financial performance in 2016
At the end of December 2016, Baltic International Bank revenue from core operations reached EUR 26.7 million, which is a 36% increase over the same period a year ago. The positive dynamics of core operations’ revenue were mostly facilitated by trade transactions, where revenue increased by EUR 7.7 million, as well as the unique income of EUR 2.8 million from sale of Visa Europe Ltd shares. During 2016, the Bank’s revenues from brokerage transactions also grew significantly – by 23% as compared to the beginning of the year.
The amount of assets held by Baltic International Bank at the end of December 2016 reached EUR 306 million, managed assets totalled EUR 82 million, and the total value of financial instruments serviced through brokerage was EUR 105.67 million.
The unaudited profit of the Bank in 2016 reached EUR 1.21 million, while the profit of the whole Group was EUR 2 million.
The Bank’s liquidity indicators surpass the minimum requirements – at the end of December 2016, the Bank’s liquidity ratio was 70.02% (minimum internal requirement: 60%). The liquidity coverage ratio was 404.06%, which significantly exceeds the 2016 requirement of 70%. Net stable funding ratio (NFSR), which demonstrates a sustainable funding structure, has reached 143.51% exceeding the regulating requirement, which has been set at 100% and will come into force in 2018.
At the end of December 2016, the equity of Baltic International Bank was EUR 31.6 million. The tier 1 capital ratio was 11.7%. The total capital ratio reached 15.9%. At the end of 2016, the Bank’s leverage ratio was 7.6%.
Support for projects of social significance
In 2016, the Bank continued to actively support various publicly important projects and events. Special focus was placed on promoting the development of Latvian literature by supporting the publishing of historical novel series “Mēs. Latvija, XX gadsimts” (Us. Latvia, XX century), as well as various other culture and art projects. We are proud that Baltic International Bank could support the Latvian National Museum of Art in developing its mobile application, which has been recognised as one of the most sophisticated mobile apps of art museums across Europe. We are also glad that with the Bank’s support the “Baltic International Bank Latvian Barometer” monthly surveys were carried out, studying various publicly topical issues.