In 3Q 2018 Baltic International Bank continues to grow in key business areas
In 3Q 2018, Baltic International Bank succeeded to attain the highest level of performance compared to the figures posted for the first two quarters, regardless of that the 2018 continues to be a challenging year for the Bank and for the entire banking sector in Latvia. The total amount of client funds held with Bank rose by 12% to reach EUR 507 million (Annex 1).
The fact increases the senior management’s confidence that the Bank has set the right strategic direction as the strategy centres around delivering personalised client service with a strong focus on socially responsible, sustainable investing. The strategy also provides for boosting the volumes associated with custody services for securities and brokerage services. Those volumes have been growing dynamically since the beginning of the year.Chairperson of the Management Board of Baltic International Bank Viktors Bolbats
The Chairperson of the Bank’s Management Board Viktor Bolbat took up the post of a Co-chair of the Strategic Development Committee of the Finance Latvia Association. As the newly appointed Co-chair, Viktor Bolbat intends to make his own contribution. He is strongly determined to search for and find effective mechanisms of repairing the reputation of Latvia’s financial sector internationally and of creating a new economic value added for the country.
The operating income totalled EUR 9.36 million (EUR 9.40 million) at the end of 3Q 2018. The Bank’s fee and commission income skyrocketed more than 150% compared to 1Q 2018. The percentage of the net fee and commission income surged up to 52.5% (52.3%) on a year-over-year basis; the then-current income totalled 22.4% (22.4%). The net interest income totalled 20% (19.9%). Administrative expenses reached EUR 11.08 million (EUR 11.11 million). Bank has achieved its target to end 3Q 2018 without incurring operating loss and hence absorb the loss suffered during the first half-year.
As far as the balance sheet is concerned, the Bank still applies the conservatism principle and maintains a high liquidity ratio. The liquidity coverage ratio (LCR) was 194%. The net stable funding ratio (NSFR), which characterizes the availability of a stable funding profile in relation to the composition of assets and off-balance sheet activities, reached 139.07% (138.95%). The Bank’s high-quality liquid assets (assets carrying investment-grade credit rating and balances due from the Bank of Latvia) made up EUR 147.43 million (EUR 147.43 million) or 54% (54%) of the total assets. Investments in government bonds accounted for EUR 17.4 million (EUR 17.4 million) or 6.4% (6.4%) of the total assets. The Bank maintains a well-diversified structure of liquid assets represented by bonds (13%), due from credit institutions (7%), due from the Bank of Latvia (79%), and cash (1%).
The Bank issued new exclusive contactless-enabled payment cards. Baltic International Bank also has become the first Latvian bank whose uniquely designed credit cards carry fragments of artworks of the outstanding Latvian artist and scenic designer Ilmārs Blumbergs.
The Bank launched an ambitious refurbishment and regeneration of the Old Riga quarter situated between Kalēju Street and Vecpilsētas Square. The Bank allocated nearly EUR 12 million towards the project. The architectural ensemble comprising five intra-quarter buildings will include covered shopping arcades, known as passages or galleries, the Money Museum, and the Bank’s office premises wherein the employees will enjoy modern workplace environment.
As the Bank continues to support Latvian literature and its development, it has initiated a project titled “Bibliotēka” (Library) in 3Q 2018. The project aims to educate the public regarding the importance of literature in people’s lives and to tell people about private libraries and collections held in private libraries, as well as emotional and educational attributes of the collections.
In cooperation with the Ministry of Culture of the Republic of Latvia, Bank started the preparatory work undertaken to publish a unique book “Coats of Arms in Modern Latvia”.
Main financial results:
- Assets: EUR 272.34 million
- Assets under management: EUR 77.92 million
- The value of financial instruments in brokerage service: EUR 199 million
- Loss: EUR 2.35 million
- Liquidity ratio: 72.96%