During the first half of 2014, the Bank recorded growth across all KPIs
During the first half of 2014, the Bank posted a profit of EUR 273.000, a five-fold increase year-over-year. The Bank's assets grew to reach EUR 412.4 million, up 22 percent as compared to December 2013.
“We are pleased with the Bank’s positive performance which is the logical outcome of our long-term strategic operation. The strong financial results have been achieved through diversification of products and services and largely due to customer acquisition efforts and new market penetration. Therefore we were able to operate at profitable levels even in a changing environment,” the Chairperson of the Board Ilona Gulchak emphasised. “During the first six months of 2014, the situation on financial markets was tense because of escalating political conflicts and hence induced investors to stay vigilant and stick to conservative investments. However, developed markets looked much better as they are less affected by global political problems. Yet amidst Russia-West sanctions war, investments in securities of companies domiciled in developed countries should be evaluated very carefully.”
In the first half of 2014, Baltic International Bank continued to maintain capital adequacy ratio (14.47%), liquidity coverage ratio (173.43%), and leverage ratio (6.85%) at a high level, thus fully complying with the standards set forth in the Regulation (EU) No 575/2013 of the European Parliament and of the Council.
The acquisition of new Western Europe clients -- clientele that the Bank is targeting to significantly boost its business -- was a major contributing factor to the Bank’s growing operations. The volume of deposits increased by 27% or EUR 74.63 million in the first half of the year compared to December 2013. By the end of June 2014, the amount of the deposits reached EUR 349.92 million (92.38% of the total liabilities). Customer deposits are the Bank’s primary source of funding. The total customer assets, which comprise deposits, assets under management and brokerage portfolio, have increased by 17% to reach EUR 555.91 million. The building of relationships based on trust has always been the main focus for the Bank and enables the Bank to reinforce its long-term resource base. Since the beginning of 2014, the Bank has accepted subordinated deposits totalling EUR 3.26 million. As a results, the volume of subordinated deposits totalled EUR 14.36 million by the end of the half-year.
The Bank launched several new bond issues during the first half of the year. As at 30 June 2014, the volume of newly issued debt securities totalled EUR 10.68 million. When investing their own funds in the bonds, the Bank’s customers preferred two-year bonds that made up 66% of the total issue.
Largely due to the development of new products and services, effective risk management and a cohesive team of professionals, the Bank has been able to demonstrate a 6% growth of operating income which totalled EUR 6.54 million by the end of the half-year. The results of forex transactions have also showed an upward trend. Income from forex trading grew by 88%. A further increase in the percentage of a stable income proved to be a significant factor in determining the Bank's profit and enabled the Bank to record an 11% increase in the net fee and commission income as compared to December 2013.
In the Latvian banking sector, Baltic International Bank is one of the most experienced providers of private banking services to high net worth individuals and businesses. The advantages we offer include a bespoke approach, solid partnership and top-level service intended to preserve and grow wealth for our customers. The Bank has representative offices in London, Moscow and Kyiv.