Performance indicators for the first three quarters show the Bank’s purposeful growth
„We are pleased about the fact that we’ve been able to retain positive growth indicators and improve the Bank’s operational results despite unstable financial market conditions and amidst social and political turmoil. In the very beginning of the year, we’ve set a goal to increase our operating income as a percentage of the total income structure. We’ve succeeded in achieving the goal. Over the first nine months, the Bank’s operating income attained the level of EUR 9.88 million,” the Chairperson of the Board Ilona Gulchak emphasised.
The Bank’s fee-income generating products developed particularly sharply resulting in that the net fee and commission income increased by 15.3%, and its percentage in the operating income grew up to 42.34%. The numbers correspond to the targets set n the beginning of the year. Factors such as payment & and cash services and payment-card transactions contributed primarily to the growth.
„In 3Q 2014, we continued to pursue the Bank-adopted strategy aimed at diversifying the portfolio and hence mitigating risks. Also, we sought for new channels to accelerate customer acquisition. The efforts have brought results since the customer base has expanded sharply. Since the beginning of the year, the volume of customer funds has increased by 30% to reach EUR 641.67 million,” commented I. Gulchak.
The Bank continued to actively develop its asset management services. The customers were equally interested in traditional AUM, investment project financing (project-tied lending) and fiduciary operations. During the year, the Bank has been managing its internal capital adequacy effectively, through boosting the volume of subordinated deposits by 47.04% or EUR 5.22 as compared to 2013-end.
Also, the Bank increased the volumes of its investments in bonds of more reliable issuers. Thus, the volume of securities totalled EUR 54.70 million at the end of 3Q 2014, which exceeds four times (EUR 42.93 million) the figure recorded at 2013-end.
As compared to December 2013, the volume of the loan portfolio remained almost unchanged and was EUR 102.65 million. The loan portfolio as a percentage of the total assets does not exceed 25%. „During the year, the Bank-funded projects have shifted considerably towards Western Europe,” I.Gulchak said.
In September 2014, the Bank successfully closed its Bond Offering Programme No 1 for the issue of bonds totalling EUR 20 million. Under the Programme, the Bank organised 13 issues of bonds denominated in EUR and USD, maturing in one to two years. Medium-term USD-denominated bonds enjoyed the strongest demand.
Bank’s term structure of assets and liabilities fully meets the requirements of the Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (the Basel III framework). The Bank’s liquidity ratio was 133.41%; the capital adequacy ratio met both the regulatory threshold and the minimum individual level and was 13.78%; the financial leverage ratio was 5.58%.