Baltic International Bank continues its purposeful development

News - August 31, 2009

During the covered period - the six-month period of 2009, the external environment continued to be affected by the aftermath of the global financial crisis. Strategy and tactics that we have opted to pursue has greatly boosted the bank’s chances to retain its positions and to reduce its exposure to certain types of risks encountered by most market participants.

The bank’s profit generated in the first six months of 2009 stood at 244 471 lats. As compared to unaudited figures of the respective period in 2008, the bank’s operating income grew by 34 percent to 4.01 million lats.

Our customer confidence still remains the key performance indicator for the bank. The total amount of deposits and the concluded trust agreements accounted for 212.4 million lats, which is 2.6 percent higher than the total customer funds held with the bank at the end of 2008. The deposits totalled 131.1 million lats. It is worth mentioning that the bank has demonstrated good growth numbers while developing its discretionary management activities. Over the first six months of 2009, the bank’s portfolio of trust agreements surged 31 percent to reach 81.4 million lats.

The Bank’s assets totalled 147.8 million lats as at 30 June 2009. Due to instability in the global economy, in Q1 2009 the bank pursued a vigilant approach towards the pace of lending. As at the reporting date the Bank’s loan portfolio accounted for 39.8 million lats and represented 26.9 percent of total assets, 2.8 percent down compared with the analogous figure at the end of 2008. The Bank continues to analyse economic sectors moving towards long-term development and considers the opportunities to further increase its loan portfolio through financing projects in promising economic sectors.

Also, the bank continues maintaining a high-level liquidity ratio. As of 30 June 2009, the liquidity ratio stood at 74.92 percent - well above the regulatory threshold of 30 percent set forth by the Financial and Capital Market Commission (Latvia’s public financial services regulator). The Bank’s capital adequacy ratio is brought into compliance with the requirements of the respective national and EU laws. The Bank reported a capital adequacy ratio of 10.79 percent at the end of the reporting period.

Having assessed the prospects for further development, the bank is planning to raise its equity up to 15.5 million lats by issuing new shares until the end of the next reporting period.

To strategically develop the IT structure, maintain and enhance its functionality and the quality of operational infrastructure, the bank has fully completed the implementation of banking software Temenos Т24 in May 2009.

The bank proactively develops innovative banking products and services. As a result, the bank has offered its clients new types of deposits, has expanded its Gold Investment Program, has issued a prestige credit card World Signia of MasterCard Worldwide, a leading global payment solutions company.

The bank’s work on the elaboration of its strategy for the next five-year period moves toward completion. The strategy will take into account the entire results that we have attained over the past years in the industry niche, as well as the global changes taking place in worldwide financial community.

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