Bank Reports a 47-percent Growth of Customer Deposits in 2011
In 2011, Baltic International Bank saw a 47-percent increase in customer deposits – one of the best results in Latvia’s banking sector. On an aggregate basis, deposits held by private and corporate clients totalled 195.9 million lats at 2011-end. Driven by deposit growth, the total assets surged by 38 percent to reach 232.5 million lats as at 31 December 2011.
“Looking back over 2011, we can see growth across most of key financials -- a significant increase in customer deposits and considerable improvement of its key performance indicators (KPIs). As a rule, wealth preservation becomes an issue of heightened concern for banking customers facing extremely volatile market conditions. The results we’ve achieved are indicative of the high level of confidence from our clients,” Deputy Chairperson of the Board Natalja Tkachenko emphasises.
In 2011, Bank posted a net profit of 1.2 million lats, substantially higher than the prior-year figure. It was due to a 26-percent growth of operating income. The operating-income growth was essentially the result of the rise in the net fee and commission income - up 53 percent.
Bank’s loan portfolio grew modest 6 percent. Bank’s loan-to-asset ratio (the total loans outstanding as a percentage of total assets) was nearly 26 percent, in full compliance with Bank’s conservative lending policy.
Bank’s share capital increased by 23 percent to reach 20.8 million lats by 2011-end. In 2011, Bank completed its share-capital increase that started in 2010. Bank’s capital adequacy ratio (CAR) stood at 17.9 percent in 2011.
Throughout the year, Bank has placed a special focus on services such as asset structuring and protection, tax planning and legal advice. To develop its advisory and consulting segment, Bank established BIB Consulting, a new subsidiary undertaking.
In 2011, Bank received a professional expert appraisal. Bank was announced as a second-time winner in the Best Private Bank in the CIS and Baltic States category for SPEARS’S Russia Wealth Management Awards. The high-profile award is given to-best-in-class banks in recognition of their service excellence for high net worth customers.