The 2014 performance indicators point to stable growth
Baltic International Bank ensured the healthy growth of its key performance indicators (KPIs) in 4Q 2014. Compared with the same period in 2013, total customer funds held with Baltic International Bank grew by 40.9 percent to reach EUR 683.06 million by the end of 2014.
Baltic International Bank provides private banking and wealth management services, In 4Q 2014, Baltic International Bank’s assets increased by 58.3 percent to reach EUR 533.03 million compared with the same period in 2013. The volume of customer deposits grew by 62.8 percent or EUR 172.96 million and totalled EUR 448.25 by the end of 2014. The volume of the loan portfolio was EUR 99.62 million as at 31 December 2014. The loan portfolio as a percentage of the total assets does not exceed 20 percent.
„Baltic International Bank’s customers especially appreciate individually tailored solutions geared towards managing wealth in both domestic and international markets. This is one our Baltic International Bank’s prime advantages. In addition to traditional investments, customers showed greater interest in alternative investments such as investments in business projects and fiduciary transactions. Through Baltic International Bank’s intermediation, the customers co-financed business projects related to the food industry and real estate industry in Latvia and the UK,” the Chairperson of the Board Ilona Gulchak said while commenting the 2014 performance results.
In 4Q 2014, Baltic International Bank’s operating income grew at a moderate pace (up 9.3 percent) to reach EUR 14.69 million. As the customers were increasingly prone to using payment & cash services, brokerage services, trust services and card products, the net fee and commission income grew by 13.05 percent. Changes observed in the foreign exchange market enabled the Bank to report an increase in foreign currency transaction gains. Baltic International Bank recorded profit of EUR 353 000 (unaudited provisional figure).
The significant volume of external funds raised enabled Baltic International Bank to diversify its assets and carry out a substantial volume of investment operations to buy AAA – rated securities. Hence, the structure of the securities portfolio (in terms of quality) changed tangibly. Currently, Sovereign bonds, bonds of multilateral development banks (MDB) and government bonds carrying investment grade credit ratings make up 86.90 percent of the total securities portfolio. The volume of the securities portfolio was EUR 96.57 million or 18.11 percent of the total assets as at 31 December 2014.
The acquisition of new subordinated deposits fostered growth of BIB’s balance-sheet variables. According to 4Q 2014 financial results, the volume of subordinated deposits totalled EUR 16.70 million and showed the increase at an annualised rate of 50.44 percent.
Currently, BIB’s asset-liability structure is fully compliant with the new regulatory ratios. The Bank’s liquidity coverage ratio exceeded 100 percent as at 31 December 2014 and was 253.1 percent; the total capital ratio met both the regulatory threshold and the minimum individual level and was 14.43 percent; the leverage ratio was 5.30 percent.
Baltic International Bank is one of Latvia’s most experienced providers of private banking services to affluent individuals and businesses. We offer advantages such as individual solutions specifically geared towards wealth management, a solid partner relationship, and top-level service. Baltic International Bank operates its representative offices in London, Moscow and Kyiv.