Baltic International Bank Announces 2010 Results
Baltic International Bank has published its 2010 financial results. Bank has succeeded in achieving the targets -- set at the beginning of 2010 -- across most positions: has increased its operating income and profit, enlarged the loan portfolio, and grown the brokerage portfolio.
In 2010, Bank posted a net profit of 381 thousand lats after paying taxes and creating provisions, showing an almost seven-fold increase over the previous reporting period’s figure. Bank’s income items mainly comprise net interest income (up 52.6 percent YOY) and net fee and commission income (up 49.6 percent YOY). The factors behind the increase in the net fee and commission income are the economic rebound, which fostered business activities of our customers in their respective sectors, and the growth of Bank’s brokerage services and asset management. Bank’s total operating income reached 7.9 million lats, 10.3 percent higher as compared to 2009.
”Today, many people share the opinion that the past year signalled the end of the crisis. However, most sectors of the economy continued to feel the aftermath of the global recession. That’s why all of us faced the task of making vigilant and well-weighted decisions in 2010”, said the Chairperson of the Board Ilona Gulchak. “Our conservative risk management approach complemented by a wise strategy for enhancing our overall operating efficiency, both in qualitative and quantitative aspects, enabled us to achieve positive results”.
In 2010, Bank continued growing its loan portfolio (up 47 percent). The rise was largely fostered by issuing zero-risk loans. On a percentage basis, a risk-free component within the portfolio attained 25.6 percent.
The liquidity ratio has not changed much since 2009 and was 83.62 percent as at 2010-end. Bank’s liquidity ratio still remains sufficiently above the average liquidity ratio in the Latvian banking sector (↑15 percentage points).
Throughout the entire year, Bank took advantage of the opportunities offered by the bond market and the stock market to boost return on assets (ROA). A share of financial instruments, expressed as a percentage of Bank’s assets, hiked by 3.5 percent, primarily due to fixed-income securities. In 2010, Bank’s assets totalled 168.27 million lats.
Bank’s capital adequacy reached 14.9 percent as at 2010-end, largely due to a significant increase of deposits invested in the subordinated capital as well as the capital-raising decision (to increase the share capital by 5.25 million lats within the one-year time frame) made by the new shareholders. As at 31 December 2010, the share capital was increased by 1.31 million lats.
During the past year, Bank offered a variety of new products tailored specifically to provide comfort to our customers in their respective fields of interest. Bank widened the range of payment cards by adding an exclusive card MasterCard Platinum. In its commitment to expand brokerage services, Bank launched two electronic platforms: BIBtrader designed to conduct equity and futures trades, and Forex Marginal Trade designed to conduct trades in FOREX market. Beyond that, Bank offered its customers qualified advice and legal support in response to the amended Immigration Act of the Republic of Latvia that provides greater opportunities to foreign investors.
Among our most notable 2010 achievements was a prestigious award received at SPEAR’S Russia Wealth Management Awards 2010 ceremony. Bank was named as the “Best Bank in the Baltic States and CIS To Provide Russia’s Customers With Private Banking and Wealth Management Service”.